EVANSVILLE, Ind. - Jan. 27, 2017 - PRLog -- First Bancorp of Indiana, Inc. (OTCBB:FBPI), the holding company for First Federal Savings Bank, reported earnings of $360,000 for the quarter ended December 31, 2016, compared to net income of $483,000 in the same quarter last year. The quarter-over-quarter change was attributed largely to a 7.0% decrease in net interest income coupled with a 2.9% increase in noninterest expenses.
The Company recognized earnings of $754,000 in the first half of fiscal 2017, 20.4% below the same period last fiscal year. Although net loans and investments are little changed from a year ago, rates steadily declined during the first ten months of calendar 2016 resulting in reduced interest income. Noninterest income declined 2.6% between the comparative six-month periods due to a reduction in fees and charges on deposit accounts. Costs associated with the transition to an outsourced IT management solution and greater compensation expenses were largely responsible for the 4.2% increase in year-to-date noninterest expenses.
At approximately 8.8%, 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 has paid a dividend of 15.5 cents per outstanding share for 35 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.
Michael H Head
President & CEO
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First Bancorp of Indiana, Inc. Announces Financial Results
January 27, 2017 at 21:39 PM EST