1ST BANCORP announces first quarter earnings.

VINCENNES, Indiana--(BUSINESS WIRE)--Oct. 18, 1995--1ST BANCORP today announced net earnings of $488,000 or 76 cents per share for the quarter ended September 30, 1995. This compares to $193,000 or 31 cents per share for the same quarter in the prior fiscal year.

"We are pleased to report this healthy increase in earnings," stated C. James McCormick, Chairman of 1ST BANCORP. "Increased non-interest income from the sale of mortgage loans and the sale of servicing combined with a reduction in administrative expenses resulted in the enhanced earnings during the quarter."

Net interest income remained stable during the first quarter of fiscal 1996 as compared to the same quarter in the previous year at $1.7 million. The lower interest rate margin of 2.24% during the quarter ended September 30, 1995 as compared to the interest rate margin of 2.63% during the quarter ended September 30, 1994 was offset by the increased level of interest-earning assets.

Loan production aggregated $41.5 million during the first quarter of fiscal 1996, as compared to $34.1 million during the same quarter a year earlier. The gain on sale of loans increased to $312,000 for the quarter ended September 30, 1995, compared to $52,000 for the quarter ended September 30, 1994. The significant increase in the gain on sale resulted from the Bank's continuing emphasis on the nonconforming loan market.

"We remain committed to developing new mortgage loan programs and to offering a variety of products to our customers," stated Chairman McCormick. "In this regard, we have recently implemented a nonconforming retail loan program in our origination offices which should appeal to a niche customer base. We are excited about the earnings potential and success of this program."

To mitigate prepayment risk, $161.1 million of servicing rights were sold during the first quarter of fiscal 1996, resulting in a pre-tax profit of $237,000. Because of the sale of servicing rights, servicing fee income decreased during the quarter and will continue at a lower level than was experienced in the prior fiscal year.

Asset quality continues to be excellent. Nonperforming assets totalled $.4 million or .1% of assets at September 30, 1995. This is a significant improvement over nonperforming assets of $1.6 million or .6% of assets at September 30, 1994. The level of nonconforming assets continues to be lower than industry average.

Assets at September 30, 1995 were $310.5 million as compared to $275.8 million at September 30, 1994. Stockholders' equity rose to $16.9 million from $13.7 million during the twelve month period. Book value per share was $26.37 at September 30, 1995, an increase from $24.18 at September 30, 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 and Centerville, Ohio. -0-

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

FOR THE QUARTER ENDED SEPTEMBER 30:           1995        1994
                                           _________   _________

Total Interest Income                        $5,627      $4,428
Total Interest Expense                        3,959       2,767
Net Interest Income                           1,668       1,661
Provision for Loan Losses                        25          15
Other Income                                  1,030         596
Other Expenses                                1,890       1,944
Income Tax                                      295         105
Net Earnings                                    488         193

Earnings Per Share                            $0.76       $0.31

Interest Rate Margin                          2.24%       2.63%

Return on Average Equity                     11.76%       5.67%
Return on Average Assets                      0.63%       0.29%

AT SEPTEMBER 30:

Total Assets                               $310,460    $275,794
Investment Securities                        72,723      66,605
Loans Receivable                            208,919     184,503
Savings Deposits                            207,426     190,625
Borrowings                                   79,338      63,623
Common Stock                                    640         567
Additional Paid-In Capital                    2,914       2,471
Retained Earnings                            13,310      10,678
Stockholders' Equity                         16,864      13,716

Stockholders' Equity Per Share               $26.37      $24.18

CONTACT: 1ST BANCORP, Vincennes

Frank Baracani, 812/882-4528