First Bancorp of Indiana, Inc. Announces Financial Results
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"
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.