EVANSVILLE, IN — (Marketwire) — 10/19/12 — First Bancorp of Indiana, Inc. (OTCBB: FBPI), the holding company for First Federal Savings Bank, reported earnings of $432,000 for the first fiscal quarter ended September 30, 2012, compared to $308,000 for the same quarter a year ago. Strong loan production and favorable deposit growth during the intervening 12 months were largely responsible for the improved earnings.
Net interest income for quarter ended September 30, 2012, improved 2.1% from the same period last fiscal year as a decrease in the cost of deposits more then offset lower loan and investment yields. Noninterest income improved 42.6% between the comparative quarters due largely to increased gains from the sale of loans. In addition, fees generated from personal and commercial deposit accounts increased 17.1% over the same span thanks to 21.0% growth in the number of checking accounts. Finally, the increase in noninterest expenses for the comparative quarters is largely associated with an expansion of the business lending function. This investment is reflected in the $32.8 million, or 20.2%, net loan growth over the past 12 months.
At approximately 8.6%, 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 18th 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.
CONTACT:
Michael H. Head
President and CEO
First Bancorp of Indiana
812-492-8100