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 $243,000 for the for the quarter ended June 30, 2012, compared to net income of $265,000 in the same quarter last year. Tax adjustments for prior periods reduced the most recent quarter's earnings by $64,000. For the fiscal year ended June 30, 2012, the Company recognized net income of $1.1 million versus $903,000 the preceding fiscal year. Fiscal 2012 earnings represented $0.63 per average outstanding share, an increase of $0.11. Net interest income improved 7.4% in fiscal 2012 as lower deposit rates and the repayment of higher-cost borrowed funds compensated for lower yields on loans and investments.

Noninterest income for quarter and fiscal year ended June 30, 2012, improved 38.2% and 35.9%, respectively, over the same periods last year due largely to increased gains from loan sales and reduced impairment charges recorded on certain investment securities. The impairment charges, which reduced net income approximately $121,000 and $443,000 the past two fiscal years, 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 quarters and fiscal years are largely associated with an expansion of the business lending function. This investment is reflected in the $32.4 million, or 21.6%, net loan growth over the past twelve months.

At approximately 8.6%, First Federal's tier one capital ratio at June 30, 2012, 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 has paid a cash dividend of 15.5 cents per outstanding share for seventeen consecutive quarters.

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)


                              6/30/2012   6/30/2011
                             =========== ===========
Selected Balance Sheet Data: (unaudited)
Total assets                     382,709     356,121
Investment securities            115,680     126,647
Loans receivable, net            182,381     150,019
Deposit accounts                 267,566     234,949
Borrowings                        73,155      83,155
Stockholders' equity              34,778      33,077


                                   Three months                Year
                                  ended June 30,          ended June 30,
                                 2012        2011        2012        2011
                             =========== =========== =========== ===========
Operating Results:           (unaudited) (unaudited) (unaudited) (unaudited)
Interest income                    3,392       3,493      13,697      14,471
Interest expense                   1,106       1,387       4,699       6,092
                             ----------- ----------- ----------- -----------
Net interest income                2,286       2,106       8,998       8,379
Provision for loan losses             25         150         345         550
                             ----------- ----------- ----------- -----------
Net interest income after
 provision                         2,261       1,956       8,653       7,829
Noninterest income                   903         654       3,229       2,375
Noninterest expense                2,859       2,317      10,694       9,318
                             ----------- ----------- ----------- -----------


Income before income taxes
 and cumulative effect of a
 change in accounting
 principle                           305         293       1,188         886
Income taxes                          62          28          81         -17
                             ----------- ----------- ----------- -----------

Net income                           243         265       1,107         903
                             =========== =========== =========== ===========

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