SOURCE: First Bancorp of Indiana, Inc.

July 17, 2008 12:44 ET

First Bancorp of Indiana, Inc. Announces Financial Results

EVANSVILLE, IN--(Marketwire - July 17, 2008) - First Bancorp of Indiana, Inc. (OTCBB: FBPI), the holding company for First Federal Savings Bank, reported earnings of $372,000 for the fourth fiscal quarter ended June 30, 2008, compared to net income of $355,000 in the preceding quarter and a $73,000 net loss for the fourth quarter of fiscal 2007. For the fiscal year ended June 30, 2008, net income totaled $1.16 million versus $518,000 for fiscal 2007. The increased earnings in fiscal 2008 were attributed largely to an improved net interest margin and fee income enhancements. President Michael Head stated, "I'm pleased with the Company's improved performance considering the current economic climate in the banking industry. Fortunately, First Federal has never engaged in sub-prime mortgage lending. While we certainly aren't immune to credit losses, we continue to closely monitor the performance of our loan portfolio and believe our overall asset quality to be sound."

Earnings for the year ended June 30, 2008 represented $0.65 per average outstanding share (diluted) compared to $0.30 the preceding fiscal year. The company repurchased 60,065 shares of common stock during the twelve months ended June 30, 2008, through stock repurchase programs, of which, the most recent was announced in June 2008. In addition, 39,800 shares were retired via the reverse stock split completed in May 2008. Also, 6,852 option shares were exercised in fiscal 2008. These transactions resulted in 1,747,888 shares outstanding at June 30, 2008. The Company paid dividends totaling 75.5 cents in fiscal 2008 including a quarterly dividend of 15.5 cents this past June after having paid dividends semi-annually since 2000.

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.
                   Consolidated Financial Highlights
                            (in thousands)

                                                   6/30/2008    6/30/2007
                                                  ===========  ===========
Selected Balance Sheet Data:                      (unaudited)
Total assets                                          377,926      362,992
Investment securities                                  38,730       44,602
Mortgage-backed securities                             53,021       35,496
Loans receivable, net                                 226,975      233,237
Deposit accounts                                      244,053      251,234
Borrowings                                             95,655       72,496
Equity capital                                         31,935       34,218

                                                     Year ended June 30,
                                                      2008         2007
                                                  ===========  ===========
Selected Operating Data:                          (unaudited)
Interest income                                        20,954       19,295
Interest expense                                       12,928       11,948
                                                  -----------  -----------
Net interest income                                     8,026        7,347
Provision for loan losses                                 510          400
                                                  -----------  -----------
Net interest income after provision                     7,516        6,947
Noninterest income                                      2,249        2,008
Noninterest expense                                     8,274        8,377
                                                  -----------  -----------
Income before income taxes and cumulative
 effect of a change in accounting principle             1,491          578
Income taxes                                              328           60
                                                  -----------  -----------
Net income                                              1,163          518
                                                  ===========  ===========

                                                     At or for the year
                                                       ended June 30,
Selected Financial Ratios:                            2008         2007
                                                  ===========  ===========
Performance Ratios:                               (unaudited)
Return on average assets                                 0.31%        0.15%
Return on average equity                                 3.42%        1.59%
Basic earnings per share                                 0.66         0.30
Diluted earnings per share                               0.65         0.30
Interest rate spread                                     2.19%        2.10%
Net interest margin                                      2.39%        2.35%
Other expenses as a % of average total assets            2.23%        2.43%

Asset Quality Ratios:
Nonperforming loans as a % of total loans                0.20%        0.14%
Nonperforming assets as a % of total assets              0.22%        0.10%
Allowance for loan losses as a % of total loans          0.46%        0.45%
Allowance for loan losses as a %
 of nonperforming loans                                228.45%      326.69%

Contact Information

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