1ST BANCORP Announces Fiscal Year 1998 Earnings.

VINCENNES, Ind.--(BUSINESS WIRE)--July 27, 1998--1ST BANCORP today announced net earnings of $1,911,000, representing $1.73 per share, for the fiscal year ended June 30, 1998, as compared to earnings of $821,000, or $.75 per share, for the fiscal year ended June 30, 1997. The lower earnings during the previous year resulted from the industry-wide special SAIF assessment and a higher level of noninterest expense due to the operation of a network of loan origination offices during the year.

Net interest income remained constant at $6.4 million during both fiscal years 1998 and 1997 despite a decrease in asset level. This was accomplished through an increased interest rate margin of 2.63 percent during 1998 as compared to 2.52 percent during 1997 during a period of decreasing interest rates.

The provision for loan losses increased to $755,000 during fiscal year 1998 as compared to $373,000 in fiscal year 1997. Nonperforming assets increased to 1.5 percent of total assets at June 30, 1998 compared to .9 percent of total assets at June 30, 1997. "We increased our total allowance for loan losses to $1.5 million at June 30, 1998 from $1.2 million at June 30, 1997, which relates to .8 percent of net loans receivable," stated C. James McCormick, Chairman of 1ST BANCORP.

"First Financial Insurance Agency, Inc. continues to expand in insurance volume and in the number of companies represented," stated Chairman McCormick. At June 30, 1998, the Agency represented 20 property and casualty companies, including Indiana Insurance Company, Pekin Insurance Company, Safeco Insurance Company, and Standard Mutual Insurance Company, and also markets health and life insurance products through its affiliation with 8 additional companies.

"We also are pleased with the operation of First Title Insurance Company," stated Chairman McCormick. "Business volume and earnings are strong in the Company's first four months of operation." First Title Insurance Company underwrites for Chicago Title Insurance Company, Ticor Title Insurance Company, and Stewart Title Guaranty Company.

At June 30, 1998 assets were $260.1 million as compared to $270.5 million at June 30, 1997. Stockholders' equity increased to $23.9 million at June 30, 1998 from $22.3 million at June 30, 1997.

As reported on June 25, 1998, a letter of intent has been signed for the acquisition of 1ST BANCORP by German American Bancorp (NASDAQ:GABC), headquartered in Jasper, Indiana.

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 Insurance Company. First Federal operates two retail banking offices in Vincennes, Indiana and operates a loan origination office in Evansville, Indiana. First Financial Insurance Agency offices are located in Vincennes and Princeton, Indiana. First Title Insurance Company is located in Vincennes, Indiana. Information about 1ST BANCORP may be found at http://www.businesswire.com/cnn/fbcv.htm and information about First Federal Bank may be found at www.firstfedafsb.com on the World Wide Web. -0-

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

FOR THE TWELVE MONTHS ENDED JUNE 30:         1998             1997
                                           _________        _________

Total Interest Income                      $ 19,453         $ 19,694
Total Interest Expense                       13,004           13,292
Net Interest Income                           6,449            6,402
Provision for Loan Losses                       755              373
Other Income                                  2,142            3,098
Other Expenses                                5,309            8,555
Income Tax                                      616             (249)
Net Earnings                                  1,911              821

Earnings Per Share                            $1.73            $0.75

Interest Rate Margin                          2.63%            2.52%

Return on Average Equity                      8.28%            3.79%
Return on Average Assets                      0.73%            0.31%


AT JUNE 30:                                  1998             1997
                                           _________        _________

Total Assets                               $260,149         $270,490
Investment Securities                        35,057           55,653
Loans Receivable                            187,739          174,609
Savings Deposits                            117,763          144,316
Borrowings                                  115,381          100,296
Common Stock                                  1,092              698
Additional Paid-In Capital                    2,084            2,642
Retained Earnings                            20,679           18,993
Stockholders' Equity                         23,855           22,333

Stockholders' Equity Per Share               $21.85           $20.32


    CONTACT:  1ST BANCORP, Vincennes
               Frank Baracani, 812/885-2255