EVANSVILLE, Ind. - April 29, 2017 - PRLog -- First Bancorp of Indiana, Inc. (OTCBB:FBPI), the holding company for First Federal Savings Bank, reported earnings of $261,000 for the quarter ended March 31, 2017, compared to net income of $548,000 in the same quarter last year. The quarter-over-quarter change was largely attributed to a $289,000 gain from the sale of investment securities reflected in last year's noninterest income. In addition, net interest income for the most recent quarter decreased 2.9% from the year-ago quarter due primarily to greater borrowing costs and reduced investment income.
The Company recognized earnings of $1,015,000 through the first nine months of fiscal 2017, down from $1,494,000 for the same period in fiscal 2016. Although changes in loan mix contributed to a modest decrease in year-to-date interest income, total loans have grown 3.5% since the beginning of the fiscal year. Noninterest income decreased 11.7% between the comparative nine-month periods mainly due to the aforementioned gain on the sale of investment securities that occurred last fiscal year. Costs associated with the transition to an outsourced IT management solution and greater compensation expenses were largely responsible for the 3.2% increase in year-to-date noninterest expenses.
At approximately 8.9%, First Federal's tier one capital ratio at March 31, 2017, 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 36 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
April 29, 2017 at 01:15 AM EDT