1ST BANCORP reports third quarter earnings.

VINCENNES, Ind.--(BUSINESS WIRE)--April 18, 1997--1ST BANCORP today announced earnings of $540,000 for the quarter ended March 31, 1997, a 56% increase over the earnings of $345,000 for the quarter ended March 31, 1996. Earnings for the nine months ended March 31, 1997 aggregate $285,000, a decrease over earnings of $5,415,000 during the same period a year ago.

The 56% earnings increase in the third quarter of fiscal 1997 over earnings in the same quarter of the previous year resulted from increased net interest income, offset by increased net non-interest expense, and also substantially reduced income tax expense. These earnings can readily be compared. It is more difficult to compare the nine month earnings from fiscal 1997 to fiscal 1996. The $285,000 nine month earnings in fiscal 1997 include the special one time $1.3 million SAIF assessment; the $5,415,000 nine month earnings during fiscal 1996 include the gain on the sale of two branch offices.

"Earnings per share were $.78 for the three month period ended March 31, 1997 as compared to $.50 per share for the three month period ended March 31, 1996," stated C. James McCormick, Chairman of 1ST BANCORP. "Earnings per share for the nine month period ended March 31, 1997 were $.41 as compared to $7.70 for the nine month period ended March 31, 1996."

"We have seen an 11.8% increase in net interest income during the quarter to $1,694,000 as compared to $1,515,000 during the same quarter of the preceding fiscal year," said Chairman McCormick. "This improvement is the result of the increased net interest margin from 2.42% during the third quarter of fiscal 1996 compared to 2.64% during the third quarter of fiscal 1997."

The major component of the earnings increase during the quarter resulted from the reduced income tax expense. This relates to tax credits generated from an affordable housing project located in Terre Haute, Indiana. "Our limited partnership interest in the affordable housing project has been very beneficial, as reflected in the net earnings figures during fiscal 1997," stated Chairman McCormick. "It is a win-win situation by providing affordable housing for senior citizens as well as reducing our income tax expense."

At March 31, 1997, assets were $273.0 million as compared to $263.5 million at June 30, 1996. Stockholders' equity increased to $21.8 million at March 31, 1997 as compared to $21.7 million at fiscal 1996 year end.

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 loan origination offices in Indianapolis and Evansville, Indiana and suburbs of Cincinnati and Dayton, Ohio. Information about 1ST BANCORP may be accessed at http://www.businesswire.com/cnn/fbcv.htm and information about First Federal can be accessed at www.firstfedafsb.com -0-

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

FOR THE NINE MONTHS ENDED MARCH 31:       1997          1996
                                        ________      ________

Total Interest Income                    $14,547      $15,834
Total Interest Expense                     9,887       11,050
Net Interest Income                        4,660        4,784
Provision for Loan Losses                    170           60
Other Income                               2,312        9,591
Other Expenses                             6,705        5,652
Income Tax                                  (188)       3,248
Net Earnings                                 285        5,415

Earnings Per Share                         $0.41        $7.70

Interest Rate Margin                        2.45%        2.33%

Return on Average Equity                    1.77%       37.95%
Return on Average Assets                    0.14%        2.52%

FOR THE THREE MONTHS ENDED MARCH 31:      1997          1996
                                        ________      ________

Total Interest Income                     $5,030       $4,763
Total Interest Expense                     3,336        3,248
Net Interest Income                        1,694        1,515
Provision for Loan Losses                     84           15
Other Income                                 631          706
Other Expenses                             1,707        1,643
Income Tax                                    (6)         218
Net Earnings                                 540          345

Earnings Per Share                         $0.78        $0.50

Interest Rate Margin                        2.64%        2.42%

Return on Average Equity                   10.06%        6.43%
Return on Average Assets                    0.81%        0.53%


AT MARCH 31:                              1997          1996
                                        ________      ________

Total Assets                            $273,090      $273,122
Investment Securities                     58,554        55,414
Loans Receivable                         180,535       192,639
Savings Deposits                         146,641       139,237
Borrowings                               101,325       107,841
Common Stock                                 698           666
Additional Paid-In Capital                 2,631         2,734
Retained Earnings                         18,430        18,135
Stockholders' Equity                      21,759        21,535

Stockholders' Equity Per Share            $31.19        $30.79

CONTACT: 1ST BANCORP, Vincennes

Lynn Stenftenagel, 812/885-2255