1ST BANCORP ANNOUNCES THIRD QUARTER EARNINGS AND ANTICIPATED PROFIT ON SALE OF $291 MILLION SERVICING RIGHTS DURING FOURTH QUARTER OF FISCAL YEAR 1995.

VINCENNES, Ind.--(BUSINESS WIRE)--April 21, 1995--1ST BANCORP today announced net earnings for the three and nine month periods ended March 31, 1995. Net income was $195,000 or 31 cents per share for the quarter ended March 31, 1995. This compares to $267,000 or 44 cents per share for the same quarter in the prior fiscal year. 1ST BANCORP earned $1,310,000 or $2.12 per share for the nine months ended March 31, 1995. This compares to $1,170,000 or $1.83 per share for the same period of the prior fiscal year.

Also announced was a sale of $291 million of mortgage servicing rights to be completed in the fourth quarter of fiscal 1995 that is anticipated to result in an after-tax gain of approximately $1.3 million. ``We continue to focus on maximizing shareholder value,'' 1ST BANCORP Chairman C. James McCormick stated. ``The profit from the servicing sale will add in excess of $2.00 in earnings per share of stock.''

``Due to our on-going mortgage servicing operation, earnings for the first three quarters of the fiscal year have exceeded fiscal 1994,'' continued Chairman McCormick. ``We expect that the impending servicing sale will allow 1ST BANCORP to have its finest earnings year in history.''

1ST BANCORP remains committed to its mortgage banking operation including the active origination, purchase, and sale of servicing rights. The corporation continues to expand its loan origination network and loan products in an effort to increase loan volume.

The interest rate environment over the past year has caused a tightening of the interest rate margin. The net interest margin declined to 2.13% for the quarter ended March 31, 1995 and 2.45% for the nine months ended March 31, 1995. The net interest margins for the same periods in the previous fiscal year were 2.84% and 2.91%, respectively. Therefore, to maintain net interest income at relatively stable levels, significant growth in interest-earning assets and interest-bearing liabilities has occurred. Net interest income for the quarter and nine months ended March 31, 1995, were $1,520,000 and $4,901,000, respectively. Net interest income totalled $1,578,000 and $4,786,000, respectively during the same time periods of the previous fiscal year.

Asset quality continues to be strong. Nonperforming assets totalled only $.6 million or .19% of assets at March 31, 1995. This ratio compares very favorably to industry averages and represents a significant decrease in the Corporation's nonperforming assets from $1.6 million or .63% of assets at June 30, 1994.

Assets at March 31, 1995 were $308.1 million as compared to $236.3 million one year earlier. Stockholders' equity rose from $13.6 million to $14.9 million during the twelve month period. Book value per share was $25.88 at March 31, 1995, an increase from $23.41 per share at March 31, 1994.

1ST BANCORP (NASDAQ - FBCV) is a holding company whose subsidiaries include First Federal Bank, A Federal Savings Bank, First Financial Insurance Agency, Inc., and First Title Company. First Federal operates retail banking offices in Vincennes, Tipton, and Kokomo, Indiana and operates loan origination offices in Indianapolis, New Albany, and Evansville, Indiana; and Loveland (suburb of Cincinnati) and Dayton, Ohio. -0-

                              1ST BANCORP
                   Consolidated Financial Highlights
             (Dollars in Thousands, Except Per Share Data)

FOR THE THREE MONTHS ENDED MARCH 31:         1995           1994
                                           ________       ________

Total Interest Income                      $  5,113       $  3,731
Total Interest Expense                        3,583          2,138
Net Interest Income                           1,530          1,593
Provision for Loan Losses                        10             15
Other Income                                    768            745
Other Expenses                                1,998          1,918
Income Tax                                       95            138
Net Earnings                                    195            267

Earnings Per Share                            $0.31          $0.44

Interest Rate Margin                           2.13%          2.84%

FOR THE NINE MONTHS ENDED MARCH 31:

Total Interest Income                      $ 14,533       $ 11,443
Total Interest Expense                        9,572          6,602
Net Interest Income                           4,961          4,841
Provision for Loan Losses                        60             55
Other Income                                  3,048          2,883
Other Expenses                                5,912          5,807
Income Tax                                      727            692
Net Earnings                                  1,310          1,170

Earnings Per Share                            $2.12          $1.83

Interest Rate Margin                           2.45%          2.91%

Annualized Return on Average Equity           12.31%         11.64%
Annualized Return on Average Assets            0.61%          0.67%

AT MARCH 31:

Total Assets                               $308,076       $236,327
Investment Securities                        70,979         50,878
Loans Receivable and
  Mortgage-Backed Securities                203,126        158,747
Savings Deposits                            198,612        179,322
Borrowings                                   85,008         33,978
Common Stock                                    574            580
Additional Paid-In Capital                    2,522          2,833
Retained Earnings                            11,972         10,304
Stockholders' Equity                         14,867         13,586

Stockholders' Equity Per Share               $25.88         $23.41

CONTACT: 1ST BANCORP, Vincennes

Frank Baracani, 812/882-4528