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 $360,000 for the quarter ended December 31, 2011, compared to net income of $380,000 in the same quarter last year. The quarter-over-quarter change was attributed in part to personnel expenses associated with an expansion of the business lending department. This investment partly offset an increase in net interest income associated with strong loan growth and lower funding costs. The Company recognized earnings of $667,000 through the first six months of fiscal 2012, up from $462,000 for the same period last year. The improved comparative year-to-date earnings were due largely to impairment charges on certain investment securities that reduced net income $330,000 in the first half of fiscal 2011 compared to just $21,000 so far this fiscal year. Such charges, which are presented as a reduction of noninterest income, do not represent realized losses and the eventual recovery of the total investment is possible.

At approximately 8.6%, 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 fifteenth 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 Highlights
                               (in thousands)


                              12/31/2011  6/30/2011
                             =========== ===========
Selected Balance Sheet Data: (unaudited)
Total assets                     378,560     356,121
Investment securities            129,817     126,647
Loans receivable, net            165,044     150,019
Deposit accounts                 264,120     234,949
Borrowings                        73,155      83,155
Stockholders' equity              34,202      33,077


                                   Three months             Six months
                                ended December 31,      ended December 31,

                                 2011        2010        2011        2010
                             =========== =========== =========== ===========
Operating Results:           (unaudited) (unaudited) (unaudited) (unaudited)
Interest income                    3,452       3,606       6,981       7,495
Interest expense                   1,187       1,579       2,423       3,244
                             ----------- ----------- ----------- -----------
Net interest income                2,265       2,027       4,558       4,251
Provision for loan losses            100         100         250         250
                             ----------- ----------- ----------- -----------
Net interest income after
 provision                         2,165       1,927       4,308       4,001
Noninterest income                   896         843       1,621       1,109
Noninterest expense                2,648       2,289       5,181       4,663
                             ----------- ----------- ----------- -----------

Income before income taxes
 and cumulative effect of a
 change in accounting
 principle                           413         481         748         447
Income taxes                          53         101          81         -15
                             ----------- ----------- ----------- -----------

Net income                           360         380         667         462
                             =========== =========== =========== ===========

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