Indiana United Bancorp Announces Fourth Quarter Earnings.

Business Editors

GREENSBURG, Ind.--(BUSINESS WIRE)--Jan. 19, 2001

Indiana United Bancorp (Nasdaq:IUBC)

                             Quarter Ended
                              December 31
                              (Unaudited)

                      2000             1999            1999 as
                      ----             ----            -------
                                                  originally reported
                                                  -------------------
Total Assets    $1,216,936,000   $1,110,252,000       $978,893,000
Gross Revenue      $26,738,000      $21,770,000        $19,112,000
Net Income          $2,584,000       $1,953,000         $1,930,000
Earnings Per Share
 (Basic)                  $.42             $.32               $.38
Earnings Per Share
 (Diluted)                $.42             $.32               $.38
Cash Earnings Per Share   $.47             $.37               $.44


                             Year-To-Date
                              December 31
                              (Unaudited)

                      2000             1999            1999 as
                      ----             ----            -------
                                                  originally reported
                                                  -------------------
Gross Revenues     $96,029,000      $81,835,000        $71,431,000
Net Income          $9,854,000       $8,088,000         $7,082,000
Earnings Per Share
 (Basic)                 $1.60            $1.32              $1.40
Earnings Per Share
 (Diluted)               $1.60            $1.32              $1.40
Cash Earnings Per Share  $1.78            $1.50              $1.61

James L. Saner, Sr., President & CEO of Indiana United Bancorp, announced today unaudited results for the fourth quarter ended December 31, 2000. The Company reported earnings per share of $.42, which represents a 10.5% increase over the $.38 per share originally reported in the fourth quarter of 1999. After accounting for the acquisition of First Affiliated Bancorp, earnings per share increased from $.32 in the fourth quarter of 1999 to $.42 in the fourth quarter of 2000, which represents an increase of 31.2%. Total net income for the fourth quarter was $2,584,000 compared to $1,953,000 for the same period in 1999, an increase of 32.3%.

For the year 2000, earnings per share increased 14.2% to $1.60 versus $1.40 originally reported for the year 1999. Accounting for the First Affiliated acquisition, fully diluted earnings per share were $1.60 in 2000 compared to $1.32 for 1999, an increase of 21.2%. Total net income in 2000 was $9,854,000 compared to $8,088,000 for 1999.

Key measures of the financial performance of the Company are cash earnings per share, which is calculated by taking net income plus the after-tax effect of the amortization of intangible assets, and return on average stockholders' equity. After accounting for the acquisition of First Affiliated Bancorp, cash earnings per share were $.47 for the fourth quarter of 2000, a 27.0% increase over the fourth quarter of 1999 of $.37. For the full year 2000, cash earnings per share increased 18.6% to $1.78 compared to $1.50 for the same period last year. Return on average stockholders' equity increased from 11.93% for 1999 to 14.42%, an increase of 20.8%.

Total assets increased $106 million from December 31, 1999 to December 31, 2000 while gross loans outstanding increased $80 million, or 11.2%. Total deposits increased 12% from $940 million at December 31, 1999 to $1,054 million at December 31, 2000. For the year 2000, non-interest income increased 26% to $9.6 million while non-interest expense showed an increase of only 11%.

"The year 2000 was another exciting year for Indiana United Bancorp. The strong earnings we experienced in the first nine months continued into the fourth quarter, allowing us to record another year of strong earnings", stated Saner. "Some critical events took place this year, including the acquisition of First Affiliated Bancorp, the addition of branches to our Union Bank subsidiary and the issuance of a 5% stock dividend. These initiatives are symbolic of our continued quest for growth and play an important role in allowing us to maintain our earnings growth momentum."

Indiana United Bancorp's focus continues to be on becoming the premier financial services provider in its marketplaces. With this objective in mind, the Company recently signed a letter of intent to purchase the insurance agencies of Vollmer & Associates, which specializes in property and casualty insurance for commercial and personal customers. With the acquisition of First Affiliated on May 1, 2000, Indiana United Bancorp established a presence in Illinois where it will continue its philosophy of community banking and personal service. Union Bank's purchase of two branch offices and approximately $43 million in deposits in September 2000 further extended Indiana United Bancorp's presence in central Indiana.

Indiana United Bancorp is listed on the Nasdaq Stock Market (IUBC), and is a community focused financial services holding company with assets of over $1.2 billion. Through its four banking subsidiaries, People's Trust Company, Brookville, Indiana; Regional Federal Savings Bank, New Albany, Indiana; Union Bank and Trust Company, Greensburg, Indiana; and Capstone Bank, NA, Watseka, Illinois, it operates 43 offices in 17 Indiana counties and four offices in two Illinois counties. Through its insurance subsidiary, it operates a total of three agencies in Greensburg and Portland, Indiana as well as Owensboro, Kentucky.