First Bancorp of Indiana, Inc. Announces Financial Results
EVANSVILLE, Ind., July 31, 2020. First Bancorp of Indiana, Inc., (OTCBB:FBPI), the holding company for First Federal Savings Bank, reported earnings of $605,000 for the quarter ended June 30, 2020, compared to net income of $355,000 in the same quarter last year. Net interest income was modestly higher quarter-over-quarter as loan interest and fees, particularly from $40.8 million of loans originated under the SBA Payroll Protection Program (PPP), offset sharply lower earnings from investment securities. Despite a $451,000 increase in gains on sales of loans, total noninterest income was lower as the fourth quarter of fiscal 2019 included a $447,000 gain from the sale of investment securities and greater deposit service charges. In addition, the company recorded a $50,000 provision for loan losses in the most recent quarter compared to $490,000 in the same period last year.
The company reported earnings of $1.8 million for the fiscal year ended June 30, 2020, down from $2.1 million the preceding year. The results reflect margin compression traced to the 225 basis points of cuts to the fed fund and prime rates in fiscal 2020. Also, strong competition for deposits, particularly in the first half of fiscal 2020, was responsible for the 4.6% increase in interest expense. Although loan sale income was strong in fiscal 2020, noninterest income decreased 12.8% due to $674,000 of nonrecurring revenues in fiscal 2019. Compensation, data processing costs, and branch office renovations were the greatest contributors to the 2.5% increase in noninterest expenses between the comparative years.
At approximately 7.9%, First Federal's tier one capital ratio at June 30, 2020, was well in excess of the five percent regulatory standard for "well-capitalized" financial institutions. Excluding the PPP loans, which are fully guaranteed by the U.S. government, tier one capital would have been 8.7%, marginally improved from 12 months earlier. The bank's other capital measurements also continue to comfortably exceed "well-capitalized" standards.
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.
First Bancorp of Indiana, Inc.
Consolidated Financial Highlights
(in thousands)
6/30/2020
6/30/2019
Selected Balance Sheet Data:
(unaudited)
Total assets
473,766
431,120
Investment securities
57,015
84,347
Loans receivable, net
348,281
296,137
Deposit accounts
334,205
293,107
Borrowings
95,155
95,209
Stockholders' equity
38,979
37,914
Three months
Year
ended June 30,
ended June 30,
2020
2019
2020
2019
Operating Results:
(unaudited)
(unaudited)
Interest income
4,205
4,301
16,942
16,826
Interest expense
1,035
1,155
4,592
4,389
Net interest income
3,170
3,146
12,350
12,437
Provision for loan losses
50
490
130
590
Net interest income after provision
3,120
2,656
12,220
11,847
Noninterest income
931
1,149
3,089
3,542
Noninterest expense
3,318
3,428
13,342
13,013
Income before income taxes and cumulative
effect of a change in accounting principle
733
377
1,967
2,376
Income taxes
128
22
210
275
Net income
605
355
1,757
2,101
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First Bancorp of Indiana Inc. published this content on 31 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2020 12:41:01 UTC
First Bancorp of Indiana, Inc. is a bank holding company. The Companyâs principal activity is the ownership and management of its wholly owned subsidiary, First Federal Savings Bank (the bank). The Bank provides a variety of banking services to individuals and business customers through nine full-service locations in southwestern Indiana and one loan production office in Henderson, Kentucky. The Bank operates some of its branches under Home Building Savings Bank, a division of the Bank. The Bankâs deposit products include certificates of deposit, checking accounts, health savings accounts, individual retirement account, money market accounts and savings accounts. Its loan products include consumer loans, mortgage loans and home equity loans, among others. The Bankâs e-banking services include First Direct Online Banking, First BillPay, Zelle, Mobile Banking, Digital Wallet, Mobile Check Deposit and eStatements. It is also engaged in treasury management and business lending services.