First Bancorp of Indiana Stock

First Bancorp of Indiana, Inc. operates as the bank holding company for First Federal Savings Bank that provides a variety of banking services to individuals and business customers.

The company operates through full-service locations in Southwestern Indiana and full-service location in Henderson, Kentucky. The bank operates some of its branches under Home Building Savings Bank, a division of the bank.

The bank has one wholly owned service corporation subsidiary, White River Service Corporation (WRSC). FBEI Investments, Inc. (FBEII), a wholly owned subsidiary of the bank, manages an investment securities portfolio. In August 2007, the company completed the placement of fixed/floating rate subordinated debentures through First Bancorp of Indiana Statutory Trust I (Trust), a trust formed by the company.

A majority of the bank's loan portfolio consists of single-family residential and commercial real estate loans in the bank's market area.

Investment Securities

The bank and FBEII hold mortgage-backed securities issued by the Government National Mortgage Association ('GNMA'), a U.S. government agency, and the Federal National Mortgage Association ('FNMA') and the Federal Home Loan Mortgage Corporation ('FHLMC'), government-sponsored enterprises (collectively referred to as agency mortgage-backed securities), as well as privately-issued collateralized mortgage obligations ('CMOs') and other asset-backed securities. Asset-backed securities include securities backed by government-sponsored student loan programs and mortgage-backed securities issued by the U.S. Small Business Administration ('SBA'). The bank and FBEII also hold debt securities issued by FNMA, FHLMC, Federal Farm Credit Bank ('FFCB') and Federal Home Loan Bank ('FHLB') (referred to as agency securities), pooled corporate trust preferred obligations and privately placed structured debt (referred to as corporate obligations), the U.S. Treasury notes, and municipal bonds.

Loans

The bank grants real estate mortgage, commercial business and consumer loans.

The following portfolio segments are considered in the allowance for loan loss analysis: commercial one-to-four family mortgage, commercial and multi-family mortgage, secured commercial business, unsecured commercial business, residential one-to-four family mortgage, residential second mortgage and home equity lines of credit, and consumer.

Commercial one-to-four family mortgage loans primarily consist of loans secured by non-owner occupied investment properties.

Commercial and multi-family mortgage loans are consisted of loans secured by various types of collateral, including office buildings, warehouses, retail space, mixed use buildings, apartment buildings and other multi-family properties located in the bank's primary lending area.

The bank generally obtains loan guarantees from financially capable parties for commercial and multi-family mortgage loans.

Commercial business loans include lines of credit to businesses, term loans and letters of credit secured by business assets, such as equipment, accounts receivable, inventory, or other assets excluding real estate and are generally made to finance capital expenditures or fund operations. As with commercial real estate loans, the bank generally obtains loan guarantees from financially capable parties for commercial business loans.

Residential mortgage loans primarily consist of loans to individuals for the purchase or refinance of their primary residence. The bank also grants second mortgage and home equity line of credit ('HELOC') loans to qualifying borrowers that are generally secured by junior liens on the borrower's personal residence.

Consumer loans consist primarily of automobile and truck loans, boat loans, loans secured by savings deposits, and other personal loans.

The bank also originates loans to customers under the SBA 7(a) and other programs. Periodically, the bank sells the guaranteed portion of the SBA loans on the secondary market with servicing retained.

Transfers of Financial Assets

The bank sells financial assets in the normal course of business, the majority of which are related to residential mortgage loan sales through established programs and commercial loan sales through participation agreements.

Regulatory Matters

As a state chartered commercial bank, the bank is subject to regulation by the Indiana Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC).

The bank is a member of the Federal Home Loan Bank of Indianapolis ('FHLB').

History

First Bancorp of Indiana, Inc. was founded in 1904. The company was incorporated in 1999.