SOURCE: First Bancorp of Indiana, Inc.

First Bancorp of Indiana, Inc.

July 31, 2012 16:30 ET

First Bancorp of Indiana, Inc. Announces Financial Results

EVANSVILLE, IN--(Marketwire - Jul 31, 2012) - First Bancorp of Indiana, Inc. (OTCBB: FBPI), the holding company for First Federal Savings Bank, reported earnings of $243,000 for the for the quarter ended June 30, 2012, compared to net income of $265,000 in the same quarter last year. Tax adjustments for prior periods reduced the most recent quarter's earnings by $64,000. For the fiscal year ended June 30, 2012, the Company recognized net income of $1.1 million versus $903,000 the preceding fiscal year. Fiscal 2012 earnings represented $0.63 per average outstanding share, an increase of $0.11. Net interest income improved 7.4% in fiscal 2012 as lower deposit rates and the repayment of higher-cost borrowed funds compensated for lower yields on loans and investments. 

Noninterest income for quarter and fiscal year ended June 30, 2012, improved 38.2% and 35.9%, respectively, over the same periods last year due largely to increased gains from loan sales and reduced impairment charges recorded on certain investment securities. The impairment charges, which reduced net income approximately $121,000 and $443,000 the past two fiscal years, do not represent realized losses and the eventual recovery of a significant portion of the charges is possible. Finally, increases in noninterest expenses for the comparative quarters and fiscal years are largely associated with an expansion of the business lending function. This investment is reflected in the $32.4 million, or 21.6%, net loan growth over the past twelve months.

At approximately 8.6%, First Federal's tier one capital ratio at June 30, 2012, was well in excess of the five percent regulatory standard for "well-capitalized" financial institutions. The bank's other capital measurements also continue to comfortably exceed "well-capitalized" standards. In addition, First Bancorp has paid a cash dividend of 15.5 cents per outstanding share for seventeen consecutive quarters.

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)
    6/30/2012   6/30/2011        
Selected Balance Sheet Data:   (unaudited)            
Total assets   382,709   356,121        
Investment securities   115,680   126,647        
Loans receivable, net   182,381   150,019        
Deposit accounts   267,566   234,949        
Borrowings   73,155   83,155        
Stockholders' equity   34,778   33,077        
Three months
ended June 30,
ended June 30,
    2012   2011   2012   2011
Operating Results:   (unaudited)   (unaudited)   (unaudited)   (unaudited)
Interest income   3,392   3,493   13,697   14,471
Interest expense   1,106   1,387   4,699   6,092
Net interest income   2,286   2,106   8,998   8,379
Provision for loan losses   25   150   345   550
Net interest income after provision   2,261   1,956   8,653   7,829
Noninterest income   903   654   3,229   2,375
Noninterest expense   2,859   2,317   10,694   9,318
Income before income taxes and cumulative effect of a change in accounting principle   305   293   1,188   886
Income taxes   62   28   81   -17
Net income   243   265   1,107   903

Contact Information

    Michael H. Head
    President and CEO
    First Bancorp of Indiana