SOURCE: First Bancorp of Indiana, Inc.

January 19, 2007 18:20 ET

First Bancorp of Indiana, Inc. Announces Earnings

EVANSVILLE, IN -- (MARKET WIRE) -- January 19, 2007 -- First Bancorp of Indiana, Inc. (NASDAQ: FBEI), the holding company for First Federal Savings Bank, reported earnings of $228,000 for the second fiscal quarter ended December 31, 2006, compared to earnings of $657,000 for the same quarter in fiscal 2006. For the first six months of fiscal 2007, net income was $401,000, compared with $903,000 in the like period a year ago. The higher net earnings last year for both the quarter and the fiscal year-to-date largely resulted from an after-tax gain of approximately $414,000 from the sale of a branch banking facility. In addition, rising interest rates and an inversion of the yield curve over the past 18 months has further compressed the net interest margin. Noninterest expenses increased significantly between the comparative periods due to the October 1, 2006 acquisition of Home Building Bancorp, Inc. (HBBI). The greater noninterest expenses also reflect costs associated with the new corporate headquarters and the growth of the commercial lending function.

Second quarter earnings represented 13 cents per average outstanding share (diluted) compared to 42 cents for the quarter ended December 31, 2005. For the first two quarters of the fiscal 2007, diluted earnings per share totaled 24 cents on 1.67 million average shares compared to 58 cents on 1.56 million shares during the same period the preceding year. The greater number of diluted shares was attributed primarily to the 293,946 shares issued in conjunction with the HBBI acquisition.

Certain information in this press release may constitute forward-looking information that involves risks and uncertainties that could cause actual results to differ materially from those estimated. Persons are cautioned that such forward-looking statements are not guarantees of future performance and are subject to various factors that could cause actual results to differ materially from those estimated. Undue reliance should not be placed on such forward-looking statements.

First Bancorp of Indiana, Inc. and First Federal Savings Bank, an FDIC-insured federal stock savings bank, operate from headquarters in Evansville, Indiana.

                     First Bancorp of Indiana, Inc.
                   Consolidated Financial Highlights
                            (in thousands)

                                                  12/31/2006    6/30/2006
                                                ============= =============
Selected Balance Sheet Data:                     (unaudited)
----------------------------
Total assets                                          365,995       294,551
Investment securities                                  45,014        34,076
Mortgage-backed securities                             36,804        36,645
Loans receivable, net                                 233,433       186,752
Deposit accounts                                      247,535       189,341
Short-term borrowings                                       0             0
Long-term debt                                         77,494        73,000
Equity capital                                         34,906        28,206

                              Three months ended       Six months ended
                                 December 31,            December 31,
                               2006        2005        2006        2005
                            =========== =========== =========== ===========
Operating Results:          (unaudited) (unaudited) (unaudited) (unaudited)
------------------
Interest income                   5,058       3,530       9,109       6,817
Interest expense                  3,098       1,869       5,536       3,490
                            ----------- ----------- ----------- -----------
Net interest income               1,960       1,661       3,573       3,327
Provision for loan losses           100          82         195         157
                            ----------- ----------- ----------- -----------
Net interest income after
 provision                        1,860       1,579       3,378       3,170
Noninterest income                  459       1,153         960       1,671
Noninterest expense               2,015       1,744       3,816       3,468
                            ----------- ----------- ----------- -----------
Income before income taxes
 and cumulative effect of
 a change in accounting
 principle                          304         988         522       1,373
Income taxes                         76         331         121         470
Cumulative effect of change
 in accounting principle              0           0           0           0
                            ----------- ----------- ----------- -----------
Net income                          228         657         401         903

                               At or for                 At or for
                            the three months           the six months
Selected Financial         ended December 31,        ended December 31,
 Ratios:                   2006         2005         2006         2005
------------------      ===========  ===========  ===========  ===========
Performance Ratios:     (unaudited)  (unaudited)  (unaudited)  (unaudited)
Return on average
 assets                        0.26%        0.93%        0.25%        0.65%
Return on average
 equity                        3.18%        9.04%        2.82%        6.17%
Basic earnings per
 share                         0.13         0.44         0.25         0.60
Diluted earnings per
 share                         0.13         0.42         0.24         0.58
Interest rate spread           2.33%        2.49%        2.33%        2.53%
Net interest margin            2.44%        2.59%        2.41%        2.63%
Other expenses as a %
 of average total
 assets                        2.33%        2.48%        2.37%        2.51%

Asset Quality Ratios:
Nonperforming loans as
 a % of total loans            0.25%        0.26%        0.25%        0.26%
Nonperforming assets as
 a % of total assets           0.18%        0.16%        0.18%        0.16%
Allowance for loan
 losses as a % of total
 loans                         0.53%        0.46%        0.53%        0.46%
Allowance for loan
 losses as a % of
 nonperforming loans         208.28%      179.18%      208.28%      179.18%

Contact Information

  • CONTACT:

    Michael H. Head
    President and CEO
    First Bancorp of Indiana
    812-492-8100