1ST BANCORP reports record annual earnings.

VINCENNES, Ind.--(BUSINESS WIRE)--July 24, 1996--1ST BANCORP today announced record net earnings of $5,762,000 or $8.63 per share for the fiscal year ended June 30, 1996. This represents a 137 percent increase over net earnings of $2,430,000 or $3.71 per share during fiscal 1995 which had previously been the record earnings year. Return on average equity was 29.45% during the year as compared to 16.62% last year and return on average assets was 2.05% during the year as compared to .84% last year.

"We are very pleased to report record earnings for the second consecutive year," stated C. James McCormick, Chairman of 1ST BANCORP. "The major component in the increased earnings was the gain on sale of two branch offices during the year. With the disposition of the branch offices, we were able to concentrate on increased involvement in the Vincennes community and increased emphasis on the nonconforming mortgage loan origination office network."

Other than the gain on sale of the branch offices, the major components of income included net interest income and income from the mortgage banking operation. Net interest income stayed relatively stable at $6,355,000 in fiscal 1996 as compared to $6,484,000 in fiscal 1995. The net interest margin also remained stable at 2.36% in 1996 as compared to 2.35% during fiscal 1995.

The focus and components of mortgage banking have changed throughout the years. During fiscal 1996, gain on sale of loans and mortgage-backed securities aggregated $2,632,000 as compared to $580,000 during the previous fiscal year. Because of the sale of mortgage servicing during fiscal 1995, fees and service charges were reduced to $296,000 at June 30, 1996 from $981,000 at June 30, 1995. Such mortgage banking income remains an important ongoing profit center for the bank.

"We have been very pleased with our nonconforming mortgage origination office system and look to increased activity in the future," stated Chairman McCormick. "Even though fiscal 1996 represented the start-up year for this operation, loan volume exceeded $65 million." The loan production at the origination offices has exceeded that which was being generated from the branch offices prior to sale. "We believe the focus on nonconforming lending will be beneficial to the future success of 1ST BANCORP."

"We continue to take pride in our high asset quality," stated Chairman McCormick. "At June 30, 1996, substandard assets aggregated only $861,000 or .3% of total assets. This represented a slight increase from $545,000 or .2% of total assets at June 30, 1995, however the increase is not believed to be material."

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 a retail banking office in Vincennes, Indiana and operates mortgage origination offices in Indianapolis and Evansville, Indiana, Louisville, Kentucky, and suburbs of Cincinnati, Dayton, and Cleveland, Ohio. -0-

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

FOR THE TWELVE MONTHS ENDED JUNE 30:        1996          1995
                                         __________    __________

Total Interest Income                     $20,875       $19,903
Total Interest Expense                     14,520        13,419
Net Interest Income                         6,355         6,484
Provision for Loan Losses                      83           100
Other Income                               10,576         5,384
Other Expenses                              7,713         7,898
Income Tax                                  3,373         1,440
Net Earnings                                5,762         2,430

Earnings Per Share                          $8.63         $3.71

Interest Rate Margin                         2.36%         2.35%

Return on Average Equity                    29.45%        16.62%
Return on Average Assets                     2.05%         0.84%

AT JUNE 30:                                 1996          1995
                                         __________    __________

Total Assets                              $263,483     $312,759
Investment Securities                       54,123       72,005
Loans Receivable                           169,339      206,923
Savings Deposits                           137,148      209,805
Borrowings                                 100,885       79,387
Common Stock                                   667          634
Additional Paid-In Capital                   2,747        2,825
Retained Earnings                           18,315       12,874
Stockholders' Equity                        21,729       16,333

Stockholders' Equity Per Share              $32.60       $24.52

CONTACT: 1ST BANCORP, Vincennes

Frank Baracani, 812/882-4528