SOURCE: First Bancorp of Indiana, Inc.

April 20, 2007 17:58 ET

First Bancorp of Indiana, Inc. Announces Earnings

EVANSVILLE, IN -- (MARKET WIRE) -- April 20, 2007 -- First Bancorp of Indiana, Inc. (NASDAQ: FBEI), the holding company for First Federal Savings Bank, reported earnings of $190,000 for the third fiscal quarter ended March 31, 2007, compared to earnings of $254,000 for the same quarter in fiscal 2006. For the first nine months of fiscal 2007, net income was $591,000, compared with $1.2 million in the like period a year ago. Last year's higher year-to-date net earnings resulted largely from an after-tax gain of approximately $414,000 from the sale of a branch banking facility. In addition, higher average market interest rates between the comparative quarterly and year-to-date periods have put upward pressure on deposit and borrowing costs thus further compressing the net interest margin. Noninterest expenses increased significantly between the comparative periods due to the acquisition of Home Building Bancorp, Inc. (HBBI) that was effective October 1, 2006. The greater noninterest expenses also reflect costs associated with the new corporate headquarters and the growth of the commercial lending function.

Third quarter earnings represented 10 cents per average outstanding share (diluted) compared to 17 cents for the quarter ended March 31, 2006. For the first three quarters of the fiscal 2007, diluted earnings per share totaled 34 cents on 1.72 million average shares compared to 75 cents on 1.55 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)

                            3/31/2007   6/30/2006
                            =========== ===========
Selected Balance Sheet Data: (unaudited)
Total assets                    364,042     294,551
Investment securities            46,804      34,076
Mortgage-backed securities       37,470      36,645
Loans receivable, net           231,011     186,752
Deposit accounts                248,983     189,341
Short-term borrowings                 0           0
Long-term debt                   74,995      73,000
Equity capital                   34,032      28,206


                                 Three months            Nine months
                                ended March 31,         ended March 31,
                               2007        2006        2007        2006
                            =========== =========== =========== ===========
Operating Results:          (unaudited) (unaudited) (unaudited) (unaudited)
Interest income                   5,085       3,606      14,194      10,423
Interest expense                  3,237       2,013       8,774       5,503
                            ----------- ----------- ----------- -----------
Net interest income               1,848       1,593       5,420       4,920
Provision for loan losses           105          65         300         222
                            ----------- ----------- ----------- -----------
Net interest income after
 provision                        1,743       1,528       5,120       4,698
Noninterest income                  492         501       1,451       2,171
Noninterest expense               1,996       1,677       5,811       5,145
                            ----------- ----------- ----------- -----------
Income before income taxes
 and cumulative effect of a         239         352         760       1,724
 change in accounting
 principle
Income taxes                         49          98         169         567
Cumulative effect of change
 In accounting principle              0           0           0           0
                            ----------- ----------- ----------- -----------
Net income                          190         254         591       1,157



                                   At or for              At or for
                                the three months       the nine months
                                 ended March 31,        ended March 31,
Selected Financial Ratios:     2007        2006        2007        2006
                            =========== =========== =========== ===========
Performance Ratios:         (unaudited) (unaudited) (unaudited) (unaudited)
Return on average assets          0.21%       0.36%       0.23%       0.55%
Return on average equity          2.22%       3.52%       2.45%       5.29%
Basic earnings per share          0.11        0.17        0.35        0.77
Diluted earnings per share        0.10        0.17        0.34        0.75
Interest rate spread              2.18%       2.40%       2.28%       2.48%
Net interest margin               2.23%       2.47%       2.35%       2.58%
Other expenses as a % of
 average total assets             2.17%       2.35%       2.29%       2.46%

Asset Quality Ratios:
Nonperforming loans as a %
 of total loans                   0.22%       0.25%       0.22%       0.25%
Nonperforming assets as a %
 of total assets                  0.20%       0.16%       0.20%       0.16%
Allowance for loan losses
 as a % of total loans            0.50%       0.48%       0.50%       0.48%
Allowance for loan losses
 as a % of nonperforming
 loans                          226.97%     192.00%     226.97%     192.00%

Contact Information

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