FBPI First Bancorp of Indiana Inc (PK)

First Bancorp of Indiana, Inc. (OTCBB: FBPI), the holding company for First Federal Savings Bank, reported earnings of $308,000 for the first fiscal quarter ended September 30, 2011. The company earned $82,000 during the same quarter a year ago as impairment charges recorded on certain investment securities reduced net income approximately $320,000. Such charges, which were nominal in the most recent quarter, do not represent realized losses and the eventual recovery of the total investment is possible. Strong loan growth for the first quarter of fiscal 2012 contributed to the improvement in net interest income compared to the same quarter in fiscal 2011. At approximately 9.26%, First Federal's tier one capital ratio 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 paid a dividend of 15.5 cents per outstanding share for the fourteenth consecutive quarter.

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 Information
                               (in thousands)


                                                  9/30/2011      6/30/2011
                                                =============  =============
Selected Balance Sheet Data:                     (unaudited)
Total assets                                          354,452        356,121
Investment securities                                 121,146        126,647
Loans receivable, net                                 162,649        150,019
Deposit accounts                                      240,523        234,949
Borrowings                                             73,155         83,155
Stockholders' equity                                   33,896         33,077

                                                        Three months
                                                     ended September 30,
                                                     2011           2010
                                                =============  =============
Selected Operating Data:                         (unaudited)
Interest income                                         3,530          3,889
Interest expense                                        1,237          1,665
                                                -------------  -------------
Net interest income                                     2,293          2,224
Provision for loan losses                                 150            150
                                                -------------  -------------
Net interest income after provision                     2,143          2,074
Noninterest income                                        719            266
Noninterest expense                                     2,527          2,375
                                                -------------  -------------
Income before income taxes and cumulative
 effect of a change in accounting principle               335            -35
Income taxes                                               27           -117
                                                -------------  -------------
Net income                                                308             82
                                                =============  =============

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