First Bancorp of Indiana, Inc. Announces Financial Results

EVANSVILLE, IN -- (Marketwired) -- 04/18/13 -- First Bancorp of Indiana, Inc. (OTCBB: FBPI), the holding company for First Federal Savings Bank, reported earnings of $471,000 for the quarter ended March 31, 2013, compared to net income of $196,000 in the same quarter last year. The Company recognized earnings of $1,252,000 through the first nine months of fiscal 2013, up from $864,000 for the same period in fiscal 2012. The higher comparative quarterly and year-to-date earnings were due partly to increased net interest income as lower funding costs and strong loan growth, 23.7% over the past 12 months alone, mitigated lower loan and investment yields. Gains from sales of newly originated mortgage loans and income generated from a consistently growing retail deposit base were major factors behind the 25.6% year-to-date increase in noninterest income. In addition, impairment charges recorded on certain investment securities for the current quarter and year-to-date approximated $19,000 and $50,000, respectively, compared to $148,000 and $187,000 for the same periods last fiscal year. These charges, which are presented as a reduction of noninterest income, do not represent realized losses and the eventual recovery of a portion of the charges is possible. A new operations center, a new branch facility in Petersburg, Indiana, and additional staffing needs were the factors primarily responsible for the higher noninterest expenses.

At approximately 8.8%, 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 20th 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)


                              3/31/2013   6/30/2012
                             =========== ===========
Selected Balance Sheet Data: (unaudited)
Total assets                     382,431     381,186
Investment securities             87,650     115,680
Loans receivable, net            213,287     182,381
Deposit accounts                 267,652     269,197
Borrowings                        73,155      73,155
Stockholders' equity              35,600      34,778


                                   Three months            Nine months
                                 ended March 31,         ended March 31,
                                 2013        2012        2013        2012
                             =========== =========== =========== ===========
Operating Results:           (unaudited) (unaudited) (unaudited) (unaudited)
Interest income                    3,186       3,323       9,867      10,304
Interest expense                     876       1,169       2,864       3,593
                             ----------- ----------- ----------- -----------
Net interest income                2,310       2,154       7,003       6,711
Provision for loan losses             55          70         280         320
                             ----------- ----------- ----------- -----------
Net interest income after
 provision                         2,255       2,084       6,723       6,391
Noninterest income                 1,010         704       2,920       2,325
Noninterest expense                2,783       2,652       8,361       7,833
                             ----------- ----------- ----------- -----------
Income before income taxes
 and cumulative effect of a
 change in accounting
 principle                           482         136       1,282         883
Income taxes                          11         -60          30          19
                             ----------- ----------- ----------- -----------
Net income                           471         196       1,252         864
                             =========== =========== =========== ===========