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 $432,000 for the first fiscal quarter ended September 30, 2012, compared to $308,000 for the same quarter a year ago. Strong loan production and favorable deposit growth during the intervening 12 months were largely responsible for the improved earnings.

Net interest income for quarter ended September 30, 2012, improved 2.1% from the same period last fiscal year as a decrease in the cost of deposits more then offset lower loan and investment yields. Noninterest income improved 42.6% between the comparative quarters due largely to increased gains from the sale of loans. In addition, fees generated from personal and commercial deposit accounts increased 17.1% over the same span thanks to 21.0% growth in the number of checking accounts. Finally, the increase in noninterest expenses for the comparative quarters is largely associated with an expansion of the business lending function. This investment is reflected in the $32.8 million, or 20.2%, net loan growth over the past 12 months.

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 18th 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)


                                                   9/30/2012     6/30/2012
                                                 ------------  ------------
Selected Balance Sheet Data:                      (unaudited)
Total assets                                          386,099       381,186
Investment securities                                 111,349       115,680
Loans receivable, net                                 195,247       182,381
Deposit accounts                                      270,280       269,197
Borrowings                                             73,155        73,155
Stockholders' equity                                   35,673        34,778



                                                     Three months ended
                                                        September 30,
                                                     2012          2011
                                                 ------------  ------------
Selected Operating Data:                          (unaudited)
Interest income                                         3,373         3,530
Interest expense                                        1,033         1,237
                                                 ------------  ------------
Net interest income                                     2,340         2,293
Provision for loan losses                                 105           150
                                                 ------------  ------------
Net interest income after provision                     2,235         2,143
Noninterest income                                      1,025           719
Noninterest expense                                     2,806         2,527
                                                 ------------  ------------
Income before income taxes and cumulative
 effect of a change in accounting principle               454           335
Income taxes                                               22            27
                                                 ------------  ------------
Net income                                                432           308
                                                 ============  ============

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