(MENAFNEditorial) First Bancorp of Indiana, Inc. (OTCBB:FBPI), the holding company for First Federal Savings Bank, reported earnings of $1,936,000 for the fiscal year ended June 30, 2016, up 27.6% from the preceding fiscal year. For the just-completed quarter, the company recognized income of $441,000 compared to $436,000 in the year-ago quarter. Although net loans contracted $6.6 million, or 2.7%, during fiscal 2016, net interest income for the twelve months improved 5.3% thanks to greater investment revenues and lower funding costs. Noninterest income was up 9.1% in fiscal 2016 as gains from sales of investment securities more than offset weaker loan sale revenue. The effect of reduced loan sales was particularly noticeable in the quarter-over-quarter change in noninterest income. Costs associated with the transition to an outsourced IT management solution were largely responsible for the quarterly and annual increases in noninterest expenses.
At approximately 8.8%, First Federal's tier one capital ratio at June 30, 2016, 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 33 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.
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Michael H Head, President & CEO
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