FBEI First Bancorp Ind New (MM)

First Bancorp of Indiana, Inc. Announces Earnings EVANSVILLE, Ind., Jan. 14 /PRNewswire-FirstCall/ -- First Bancorp of Indiana, Inc. (NASDAQ:FBEI), the holding company for First Federal Savings Bank (the "Bank"), reported earnings of $390,000 for the quarter ended December 31, 2004, compared to $360,000 for the same quarter in 2003, an increase of 8.3 percent. For the six months ended December 31, 2004, net income was $786,000 or 28.4 percent ahead of the $612,000 recognized over the like period a year ago. Second quarter earnings represented 25 cents per average outstanding share (diluted) compared to 22 cents for the quarter ended December 31, 2003. For the first two quarters of the fiscal 2005, diluted earnings per share totaled 50 cents on 1.57 million average shares compared to 38 cents on 1.60 million shares during the same period the preceding year. The improved net earnings for both the quarter and the year-to-date were derived from growth in the loan and investment securities portfolios. Total interest income for the quarter ended December 31, 2004, grew $799,000, or 31.1 percent, from the same period a year ago. Total interest expenses increased $358,000, or 32.3 percent between the relative quarters. These changes produced a 30.2 percent improvement in net interest income. Fiscal year-to-date changes were similar. During the most recent quarter, the Company provided $90,000 for additional allowances for loan losses compared to a $43,000 net recovery of allowances during the same quarter in fiscal 2004. Last year's net recovery was attributed to sales of loans for which allowances for loss had been provided previously. Noninterest income declined $158,000, or 29.7 percent, between the comparative second quarters. This variance was attributed primarily to lesser gains on the loan sales. At the same time, noninterest expenses for the quarter ended December 31, 2004, were 4.0 percent above the same period in fiscal 2004. Increased advertising, data processing expenditures, and software licensing fees were major contributors to the higher noninterest expenses. 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) 12/31/2004 6/30/2004 Selected Balance Sheet Data: (unaudited) Total assets 277,928 264,065 Investment securities 10,651 9,663 Mortgage-backed securities 60,526 65,846 Loans receivable, net 179,694 162,687 Deposit accounts 202,268 182,740 Short-term borrowings 6,500 12,500 Long-term debt 35,667 35,667 Equity capital 29,886 28,968 Three months Six months ended December 31, ended December 31, 2004 2003 2004 2003 Operating Results: (unaudited) (unaudited) (unaudited) (unaudited) Interest income 3,367 2,568 6,657 5,142 Interest expense 1,465 1,107 2,885 2,221 Net interest income 1,902 1,461 3,772 2,921 Provision for loan losses 90 (43) 210 47 Net interest income after provision 1,812 1,504 3,562 2,874 Noninterest income 375 533 818 1,021 Noninterest expense 1,569 1,508 3,131 2,992 Income before income taxes and cumulative effect of a change in accounting principle 618 529 1,249 903 Income taxes 228 169 463 291 Cumulative effect of change in accounting principle 0 0 0 0 Net income 390 360 786 612 At or for At or for the three months the six months ended December 31, ended December 31, Selected Financial Ratios: 2004 2003 2004 2003 Performance Ratios: (unaudited) (unaudited) (unaudited) (unaudited) Return on average assets 0.56% 0.71% 0.57% 0.62% Return on average equity 5.24% 4.83% 5.35% 4.10% Basic earnings per share 0.26 0.23 0.52 0.40 Diluted earnings per share 0.25 0.22 0.50 0.38 Interest rate spread 2.81% 2.94% 2.82% 3.01% Net interest margin 2.95% 3.16% 2.96% 3.24% Other expenses as a % of average total assets 2.27% 2.99% 2.29% 3.04% Asset Quality Ratios: Nonperforming loans as a % of total loans 0.08% 0.31% 0.08% 0.31% Nonperforming assets as a % of total assets 0.08% 0.22% 0.08% 0.22% Allowance for loan losses as a % of total loans 0.59% 0.74% 0.59% 0.74% Allowance for loan losses as a % of nonperforming loans 759.29% 238.89% 759.29% 238.89% DATASOURCE: First Bancorp of Indiana, Inc. CONTACT: Michael H. Head, President and CEO, First Bancorp of Indiana, +1-812-423-3196

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