FBEI First Bancorp Ind New (MM)

First Bancorp of Indiana, Inc. Announces Earnings EVANSVILLE, Ind., April 16 /PRNewswire-FirstCall/ -- First Bancorp of Indiana, Inc., , the holding company for First Federal Savings Bank (the "Bank"), reported earnings of $271,000 for the quarter ended March 31, 2004, compared to $302,000 for the same quarter in 2003, a decrease of 10.3 percent. For the nine months ended March 31, 2004, net income was $883,000 or 20.2 percent below the $1.1 million recognized over the like period a year ago. Third quarter earnings represented 17 cents per average outstanding share (diluted) compared to 19 cents for the quarter ended March 31, 2003. For the first three quarters of the fiscal year, diluted earnings per share totaled 56 cents on 1.58 million average shares compared to 70 cents on 1.59 million shares during the same period the preceding year. The lower third quarter earnings primarily resulted from increased noninterest expenses, most notably personnel expenses. Such expenses, of which more than three-quarters was attributable to the various employee benefit programs, increased 12.0 percent over the same period in fiscal 2003. For the quarter ended March 31, 2004, net interest income increased 1.0 percent despite the sustained low interest rate environment during the past twelve months that has narrowed the spread between the yields on earning assets and the costs of funds. Noninterest income grew 6.7 percent between the comparative quarters. However, much of this increase was attributed to non-routine items. Aside from these items, gains on consumer loan sales, fees for servicing sold loans, and fees for ATM usage offset lower mortgage bank revenue and deposit service charges. 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) 3/31/2004 6/30/2003 Selected Balance Sheet Data: (unaudited) Total assets 236,746 188,506 Investment securities 4,094 0 Mortgage-backed securities 66,257 31,957 Loans receivable, net 143,666 135,022 Deposit accounts 159,065 115,891 Short-term borrowings 1,000 0 Long-term debt 42,333 40,333 Equity capital 30,572 29,906 Three months Nine months ended March 31, ended March 31, 2004 2003 2004 2003 Selected Operating Data: (unaudited)(unaudited) (unaudited)(unaudited) Interest income 2,681 2,595 7,823 8,217 Interest expense 1,180 1,108 3,401 3,594 Net interest income 1,501 1,487 4,422 4,623 Provision for loan losses 90 123 137 423 Net interest income after provision 1,411 1,364 4,285 4,200 Noninterest income 523 490 1,544 1,452 Noninterest expense 1,571 1,439 4,563 4,083 Income before income taxes and cumulative effect of a change in accounting principle 363 415 1,266 1,569 Income taxes 92 113 383 463 Cumulative effect of change in accounting principle 0 0 0 0 Net income 271 302 883 1,106 At or for At or for the three months the nine months ended March 31, ended March 31, Selected Financial Ratios: 2004 2003 2004 2003 Performance Ratios: (unaudited)(unaudited) (unaudited)(unaudited) Return on average assets 0.48% 0.67% 0.57% 0.81% Return on average equity 3.61% 3.95% 3.93% 4.83% Basic earnings per share 0.18 0.20 0.59 0.73 Diluted earnings per share 0.17 0.19 0.56 0.70 Interest rate spread 2.73% 3.27% 2.91% 3.36% Net interest margin 2.91% 3.58% 3.12% 3.69% Other expenses as a % of average total assets 2.81% 3.17% 2.96% 2.98% Asset Quality Ratios: Nonperforming loans as a % of total loans 0.62% 0.32% 0.62% 0.32% Nonperforming assets as a % of total assets 0.39% 0.23% 0.39% 0.23% Allowance for loan losses as a % of total loans 0.72% 0.83% 0.72% 0.83% Allowance for loan losses as a % of nonperforming loans 115.27% 258.50% 115.27% 258.50% DATASOURCE: First Bancorp of Indiana, Inc. CONTACT: Harold Duncan, Chairman & CEO of First Bancorp of Indiana, Inc., +1-812-423-3196

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