Evansville-based First Bancorp of Indiana saw a slowdown in mortgage refinancing activity but strong growth in loans overall during its recently completed fiscal year.
First Bancorp, which is the holding company for First Federal Savings Bank, has reported net income of $1.4 million for the fiscal year that ended June 30. This represents a drop of 11.6 percent from the previous year, when it earned $1.6 million.
During the fiscal year, the bank saw a $830,000 reduction in the amount it earned from loan sales. That reduction was partially offset, though, by growth in new loans and the interest they generated.
As of June 30, First Bancorp had $234.3 million in net loans receivable, which represents a 9.5 percent increase as compared to a year earlier. At the same time, the bank said, the quality of its loan portfolio also improved, meaning that the bank didn't have to put aside as much to protect against possible loan losses.
During the fiscal year First Bancorp set aside a $240,000 provision for loan losses, as compared to $380,000 a year earlier. Loan loss provisions count as an expense which comes out of net interest income.
After accounting for loan loss provisions, First Bancorp's net interest income for the year was $9.7 million, up 7.3 percent from the previous year.
Noninterest income dropped 12.7 percent for the year, to $3.3 million.
Noninterest expenses rose 2.3 percent, to $11.4 million. The company said the rise was because of costs associated with its new operations center, a new branch office in Petersburg and additional staffing needs.
The company has nine banking offices, with locations in Evansville, Newburgh, Petersburg and Washington.
Shares of First Bancorp are traded over the counter. As of midday Tuesday shares were trading at $14.50, unchanged since July 22.