1ST BANCORP reports increased second quarter earnings.

VINCENNES, Ind.--(BUSINESS WIRE)--Jan. 17, 1995--1ST BANCORP today announced an increase in earnings for the three and six month periods ended December 31, 1994 as compared to the same periods in 1993. Net income increased by 67.0% to $922,000 during the three months ended December 31, 1994 as compared with $552,000 for the three months ended December 31, 1993. 1ST BANCORP's six month earnings increased by 23.5%, to $1,115,000 during the six months ended December 31, 1994 as compared with $903,000 for the same period of 1993.

``We are very pleased to report this earnings increase and an annualized return on equity of 15.99%,'' stated C. James McCormick, Chairman of 1ST BANCORP. ``On a per share basis, earnings were $1.50 for the three months and $1.81 for the six months ended December 31, 1994, compared with $.85 and $1.39 respectively for the 1993 periods.''

Factors contributing to the earnings growth include an increase in net interest income, increase in non-interest income through the sale of servicing, and stabilization in the level of general and administrative expense.

Net interest income increased to $1,770,000 during the quarter ended December 31, 1994 from $1,592,000 during the same quarter last year. Similarly, net interest income increased to $3,431,000 during the first six months of fiscal 1995 as compared to $3,248,000 during the same time period of fiscal 1994. Increased net interest income was realized because of the higher levels of interest-earning assets.

As announced earlier in the year, a $100.9 million servicing sale was completed during the quarter resulting in a net pre-tax gain of $1.0 million. This corresponds to the sale of $58.1 million servicing in the previous year which resulted in a net pre-tax gain of $.3 million. At December 31, 1994, $461.4 million of mortgage loans continue to be serviced for other owners, providing the Corporation with a stable source of fee income.

``We continue to evaluate new market opportunities,'' stated Chairman McCormick. ``Our loan origination office network has undergone significant change during the fiscal year with various offices closed for economic reasons. We remain committed to retail loan origination, however, only the origination offices providing net earnings or with the greatest earnings potential will remain open.''

Asset quality continues to be superior. At December 31, 1994, nonperforming assets aggregated $1.3 million or .4% of assets. This reflects a decrease from $1.6 million of nonperforming assets at June 30, 1994.

At December 31, 1994 assets were $299.2 million as compared to $253.6 million at June 30, 1994. Stockholders' equity rose to $14.6 million at December 31, 1994 as compared to $13.5 million at fiscal 1994 year end. At December 31, 1994, 1ST BANCORP had a $25.65 book value per share.

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 and New Albany, Indiana and Fairfield and Dayton, Ohio.

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1ST BANCORP
Consolidated Financial Highlights

(Dollars in Thousands, Except Per Share Data)

FOR THE THREE MONTHS ENDED DECEMBER 31:       1994         1993
                                             ------       ------

Total Interest Income                        $4,992       $3,815
Total Interest Expense                        3,222        2,223
Provision for Loan Losses                        35           15
Other Income                                  1,684        1,312
Other Expenses                                1,970        1,989
Income Tax                                      527          348
Net Earnings                                    922          552

Earnings Per Share                            $1.50        $0.85

Interest Rate Margin                          2.59%        2.89%

FOR THE SIX MONTHS ENDED DECEMBER 31:

Total Interest Income                        $9,420       $7,712
Total Interest Expense                        5,989        4,464
Provision for Loan Losses                        50           40
Other Income                                  2,280        2,138
Other Expenses                                3,914        3,889
Income Tax                                      632          554
Net Earnings                                  1,115          903

Earnings Per Share                            $1.81        $1.39

Interest Rate Margin                          2.61%        2.90%

Annualized Return on Average Equity          15.99%       13.60%
Annualized Return on Average Assets           0.81%        0.78%

AT DECEMBER 31:

Total Assets                              $299,214     $234,700
Investment Securities                       72,841       38,684
Loans Receivable and
 Mortgage-Backed Securities                196,123      171,141
Savings Deposits                           184,916      181,712
Borrowings                                  91,617       31,125
Common Stock                                   571          590
Additional Paid-In Capital                   2,494        3,081
Retained Earnings                           11,582       10,067
Stockholders' Equity                        14,647       13,714

Stockholders' Equity Per Share              $25.65       $23.25

CONTACT: 1ST BANCORP, Vincennes

Frank Baracani, 812/882-4528