EVANSVILLE, IN--(Marketwire - Jul 31, 2012) - 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.