First Bancorp of Indiana, Inc. Announces Financial Results

First Bancorp of Indiana, Inc. Announces Financial Results 


EVANSVILLE, Ind., July 19  /PRNewswire-FirstCall/ -- First Bancorp of Indiana,
Inc., (NASDAQ:FBEI), the holding company for First Federal Savings Bank (the
"Bank"), reported a net loss of $578,000 for the quarter ended June 30, 2004,
after recognizing expenses associated with the withdrawal from the company's
defined benefit pension plan.  The decision to withdraw from pension plan was
based on the size and volatility of prospective required contributions.  The
company also recorded a prepayment penalty for the early extinguishment of
borrowed funds.  Together these one-time charges totaled $1.2 million.  During
the same quarter in 2003 the company recognized net income of $535,000 which
included significant mortgage banking income.  For the fiscal year ended June
30, 2004, net income was $305,000 compared to last year's record $1.6 million.

Fiscal 2004 earnings represented $0.20 per average outstanding share (diluted),
a decrease of 80.8 percent from the $1.04 for the preceding fiscal year.  The
company repurchased 21,000 shares of common stock during the twelve months
ended June 30, 2004, and 42,722 option shares were exercised.  These
transactions resulted in 1,626,314 shares outstanding at June 30, 2004.  The
company's board of directors paid dividends totaling 55.5 cents per share
during the year ended June 30, 2004, a 38.8 percent increase from fiscal 2003.

Net interest income for the year ended June 30, 2004, decreased just 2.1
percent despite the sustained low interest rate environment during the past
twelve months that has narrowed the spread between the yield on earning assets
and the cost of funds.  Noninterest income declined 15.9 percent between the
comparative years as gains on mortgage loan sales fell sharply in fiscal 2004
following the heavy refinancing activity in fiscal year 2003.

Noninterest expenses for the year ended June 30, 2004, increased 35.0 percent
from the preceding year's level.  However, nearly two-thirds of the increase
was attributed to the aforementioned withdrawal from the defined benefit
pension plan and the early extinguishment of debt.  The balance of the change
consisted primarily of advertising expenses, compensation expenses, and the
fiscal 2004 required contributions to the pension plan.

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)

                                                     6/30/2004    6/30/2003
  Selected Balance Sheet Data:                      (unaudited)
  Total assets                                         264,065      188,506
  Investment securities                                  9,663            0
  Mortgage-backed securities                            65,846       31,957
  Loans receivable, net                                162,687      135,022
  Deposit accounts                                     182,740      115,891
  Short-term borrowings                                 10,000            0
  Long-term debt                                        38,167       40,333
  Equity capital                                        28,968       29,906

                                                           Twelve months
                                                           ended June 30,
                                                          2004         2003
  Selected Operating Data:                            (unaudited)
  Interest income                                       10,775       10,903
  Interest expense                                       4,727        4,728
  Net interest income                                    6,048        6,175
  Provision for loan losses                                226          563
  Net interest income after provision                    5,822        5,612
  Noninterest income                                     1,888        2,244
  Noninterest expense                                    7,431        5,504
  Income before income taxes and cumulative effect
   of a change in accounting principle                     279        2,352
  Income taxes                                             (26)         711
  Net income                                               305        1,641

                                                         At or for the year
                                                           ended June 30,
  Selected Financial Ratios:                              2004         2003
  Performance Ratios:                                 (unaudited)
  Return on average assets                                0.14%        0.89%
  Return on average equity                                1.01%        5.41%
  Basic earnings per share                                0.21         1.10
  Diluted earnings per share                              0.20         1.04
  Interest rate spread                                    2.83%        3.35%
  Net interest margin                                     3.02%        3.66%
  Other expenses as a % of average total assets           3.42%        2.89%

  Asset Quality Ratios:
  Nonperforming loans as a % of total loans               0.19%        0.28%
  Nonperforming assets as a % of total assets             0.13%        0.22%
  Allowance for loan losses as a % of total loans         0.66%        0.70%
  Allowance for loan losses as a % of nonperforming
   loans                                                353.44%      284.50%


DATASOURCE: First Bancorp of Indiana, Inc.



CONTACT:  Michael H. Head, President and CEO of First Bancorp of Indiana,

[phone]

Copyright