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 $196,000 for the quarter ended March 31, 2012, compared to net income of $177,000 in the same quarter last year. The Company recognized earnings of $864,000 through the first nine months of fiscal 2012, up from $639,000 for the same period in fiscal 2011. The higher comparative quarterly and year-to-date earnings were due partly to a decrease in costs of funds that more than offset lower loan and investment yields. In addition, impairment charges recorded on certain investment securities reduced current quarter and year-to-date net income approximately $89,000 and $112,000, respectively, compared to $103,000 and $429,000 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 significant portion of the charges is possible. Finally, increases in noninterest expenses for the comparative periods reflect personnel expenses associated with an expansion of the business lending department.

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 sixteenth 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)


                              3/31/2012   6/30/2011
                             =========== ===========
Selected Balance Sheet Data: (unaudited)
Total assets                     376,491     356,121
Investment securities            125,992     126,647
Loans receivable, net            172,449     150,019
Deposit accounts                 261,573     234,949
Borrowings                        73,155      83,155
Stockholders' equity              34,370      33,077



                                Three months ended      Nine months ended
                                    March 31,               March 31,
                                 2012        2011        2012        2011
                             =========== =========== =========== ===========
Operating Results:           (unaudited) (unaudited) (unaudited) (unaudited)
Interest income                    3,323       3,483      10,304      10,978
Interest expense                   1,169       1,461       3,593       4,705
                             ----------- ----------- ----------- -----------
Net interest income                2,154       2,022       6,711       6,273
Provision for loan losses             70         150         320         400
                             ----------- ----------- ----------- -----------
Net interest income after
 provision                         2,084       1,872       6,391       5,873
Noninterest income                   704         613       2,325       1,722
Noninterest expense                2,652       2,338       7,833       7,002
                             ----------- ----------- ----------- -----------


Income before income taxes
 and cumulative effect of a
 change in accounting
 principle                           136         147         883         593
Income taxes                         -60         -30          19         -46
                             ----------- ----------- ----------- -----------

Net income                           196         177         864         639
                             =========== =========== =========== ===========

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