First Bancorp of Indiana, Inc. Announces Financial Results

EVANSVILLE, IN--(Marketwired - Jan 24, 2014) - First Bancorp of Indiana, Inc., (OTCBB: FBPI), the holding company for First Federal Savings Bank, reported earnings of $321,000 for the quarter ended December 31, 2013, compared to net income of $349,000 in the same quarter last year. The quarter-over-quarter change was attributed largely to higher overhead expenses and reduced noninterest income, particularly gains from the sale of loans. These items were partially offset by a small increase in net interest income. Additionally, improving asset quality reduced the need for additional provisions for loan losses. 

Net interest income for the six months ended December 31, 2013, improved 2.5% from the same period last fiscal year as a decrease in the cost of funds more than offset lower interest revenue. During the past year net loans grew 7.0% to help mitigate margin compression related to the low interest rate environment. Noninterest income declined 10.2% between the six-month periods due to reduced gains from the sale of loans as far fewer borrowers sought to refinance their mortgage loans. Finally, costs associated with a new operations center, a new branch facility in Petersburg, Indiana, and additional staffing needs were largely responsible for the 3.7% increase in noninterest expenses.

At approximately 8.7%, 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 23rd 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)  
                       
                       
  12/31/2013     6/30/2013              
Selected Balance Sheet Data: (unaudited)                    
Total assets 378,597     376,940              
Investment securities 98,181     87,376              
Loans receivable, net 225,453     213,994              
Deposit accounts 264,024     264,948              
Borrowings 73,155     73,155              
Stockholders' equity 34,143     34,454              
                       
                       
  Three months ended December 31,     Six months ended December 31,  
 
  2013     2012     2013     2012  
Operating Results: (unaudited)     (unaudited)     (unaudited)     (unaudited)  
Interest income 3,232     3,307     6,493     6,681  
Interest expense 839     954     1,681     1,987  
Net interest income 2,393     2,353     4,812     4,694  
Provision for loan losses 10     120     130     225  
Net interest income after provision 2,383     2,233     4,682     4,469  
Noninterest income 823     885     1,715     1,909  
Noninterest expense 2,884     2,772     5,787     5,578  
                       
Income before income taxes and cumulative effect of a change in accounting principle 322     346     610     800  
Income taxes 1     (3 )   (11 )   19  
                       
Net income 321     349     621     781  
                       

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

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