FBEI First Bancorp Ind New (MM)

EVANSVILLE, Ind., Jan. 24 /PRNewswire-FirstCall/ -- First Bancorp of Indiana, Inc., (NASDAQ:FBEI), the holding company for First Federal Savings Bank, reported second quarter earnings of $657,000 for the quarter ended December 31, 2005, a 68.5 percent increase from the $390,000 reported for the same period in fiscal 2005. The $903,000 of net income for the first six months of fiscal 2006 was 14.9 percent above the $786,000 recognized over the like period a year ago. The greater net earnings for both the quarter and the fiscal year-to-date were the result of a gain from the sale of a branch banking facility that more than offset a lower net interest margin and increased noninterest expenses. Second quarter earnings represented 42 cents per average outstanding share (diluted) compared to 25 cents for the quarter ended December 31, 2004. For the first two quarters of the fiscal 2006, diluted earnings per share totaled 58 cents on 1.56 million average shares compared to 50 cents on 1.57 million shares during the same period the preceding year. The lesser number of diluted shares was attributed primarily to the Company's repurchase of 77,141 shares of common stock over the twelve months ended December 31, 2005. The new corporate headquarters, which is currently under construction at the intersection of Green River and Lynch Roads on the city's northeast side, is scheduled to be open for retail operations on or about March 1, 2006. The existing First Federal banking facility on Green River Road will cease operations at that time. 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. and First Federal Savings Bank, an FDIC- insured federal stock savings bank, operate from headquarters in Evansville, Indiana. First Bancorp of Indiana, Inc. Consolidated Financial Highlights (in thousands) 12/31/2005 6/30/2005 Selected Balance Sheet Data: (unaudited) Total assets 285,875 277,368 Investment securities 29,726 13,821 Mortgage-backed securities 42,633 51,498 Loans receivable, net 178,031 154,546 Deposit accounts 184,053 195,733 Short-term borrowings 3,000 0 Long-term debt 65,000 45,000 Equity capital 29,152 29,921 Three months Six months ended December 31, ended December 31, 2005 2004 2005 2004 (unaudited) (unaudited)(unaudited) (unaudited) Operating Results: Interest income 3,530 3,367 6,817 6,657 Interest expense 1,869 1,465 3,490 2,885 Net interest income 1,661 1,902 3,327 3,772 Provision for loan losses 82 90 157 210 Net interest income after provision 1,579 1,812 3,170 3,562 Noninterest income 1,153 375 1,671 818 Noninterest expense 1,744 1,569 3,468 3,131 Income before income taxes and cumulative effect of a change in accounting principle 988 618 1,373 1,249 Income taxes 331 228 470 463 Cumulative effect of change in accounting principle 0 0 0 0 Net income 657 390 903 786 At or for At or for the three months the six months ended December 31, ended December 31, 2005 2004 2005 2004 Selected Financial Ratios: Performance Ratios: (unaudited) (unaudited) (unaudited)(unaudited) Return on average assets 0.93% 0.56% 0.65% 0.57% Return on average equity 9.04% 5.24% 6.17% 5.35% Basic earnings per share 0.44 0.26 0.60 0.52 Diluted earnings per share 0.42 0.25 0.58 0.50 Interest rate spread 2.49% 2.81% 2.53% 2.82% Net interest margin 2.59% 2.95% 2.63% 2.96% Other expenses as a % of average total assets 2.48% 2.27% 2.51% 2.29% Asset Quality Ratios: Nonperforming loans as a % of total loans 0.26% 0.08% 0.26% 0.08% Nonperforming assets as a % of total assets 0.16% 0.08% 0.16% 0.08% Allowance for loan losses as a % of total loans 0.46% 0.59% 0.46% 0.59% Allowance for loan losses as a % of nonperforming loans 179.18% 759.29% 179.18% 759.29% First Call Analyst: FCMN Contact: DATASOURCE: First Bancorp of Indiana, Inc. CONTACT: Michael H. Head, President & CEO of First Bancorp of Indiana, Inc., +1-812-492-8100

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