First Bancorp of Indiana (FBPI) AI Stock Analysis

• Market Cap: $23.93M
• Dividend Yield: 0.96%
• Average Volume (3M): 770.00
• Price to Earnings (P/E): 11.0
• Beta (1Y): -0.04
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 91
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.14
• Shares Outstanding: 1,742,000
• 10 Day Avg. Volume: 767
• 30 Day Avg. Volume: 770
• PEG Ratio: -0.58
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 7.25
• Enterprise Value/Market Cap: 4.17
• Enterprise Value/Revenue: 5.43
• Enterprise Value/Gross Profit: 5.43
• Enterprise Value/Ebitda: 211.77
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $14.00 ▲(15.42% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by mixed financial performance—improving leverage and better cash conversion, but a sharp 2025 revenue decline, margin compression, and weaker ROE. Technical indicators are modestly supportive with price above key moving averages and positive momentum, while valuation appears fair with a modest dividend yield.

Positive Factors

Improving leverage

A sharp reduction in debt-to-equity materially lowers near-term refinancing and solvency risk. Improved leverage enhances capital flexibility to support lending, absorb losses, or fund targeted investments over the next several quarters, making the balance sheet more resilient.

Stronger free cash flow conversion

Rising free cash flow conversion indicates better internal funding of operations and obligations. Sustained positive FCF improves the company's ability to service debt, fund growth, or support payouts without needing external capital, aiding medium-term financial durability.

Community banking franchise and local market focus

A focused community bank model fosters stable deposit relationships and localized credit insight. This regional footprint and relationship lending tend to produce stickier funding and predictable commercial/residential loan pipelines, supporting steady core revenue over time.

Negative Factors

Sharp revenue decline

An 18% revenue drop materially reduces scale economics and weakens the bank's ability to cover fixed costs and absorb credit stress. If this trend persists, it constrains reinvestment in branches, technology, and lending initiatives across the 2–6 month horizon.

Margin compression and weak returns

Lower net margins and sub-4% ROE signal diminished profitability per dollar of assets and equity. Persistently weak returns make it harder to organically rebuild capital or justify growth initiatives, pressuring strategic options and shareholder returns over coming quarters.

Low operating cash flow versus debt

Very low operating cash flow coverage versus debt leaves limited buffer for shocks or higher funding costs. This structural cash-flow constraint increases reliance on deposit stability or external funding and could force asset reductions or costly financing if conditions tighten.

First Bancorp of Indiana Business Overview & Revenue Model

Company Description

First Bancorp of Indiana, Inc. operates as the bank holding company for First Federal Savings Bank that provides various banking products and services to individuals and business customers. The company accepts various deposits; and offers loans that include commercial one-to-four family mortgage, commercial and multi-family mortgage, secured commercial business, unsecured commercial business, residential one-to-four family mortgage, residential second mortgage, and consumer loans, as well as home equity lines of credit. It is also involved in the management of investment securities portfolios; and provides safe deposit box, check cashing and cashier's check, wire transfer, and brokerage services. The company operates 9 full-service offices in Southwestern Indiana; and 1 loan production office in Henderson, Kentucky. First Bancorp of Indiana, Inc. was founded in 1904 and is based in Evansville, Indiana.

How the Company Makes Money

FBPI makes money primarily through its bank subsidiary by (1) generating net interest income and (2) earning noninterest income from banking services, while incurring operating costs and provision expenses that affect profitability. 1) Net interest income (core earnings driver) - Interest on loans: The bank earns interest and fees on loans it originates and holds (commonly including residential real estate loans and other consumer and commercial credits). Loan yields depend on market rates, loan mix, pricing, and credit performance. - Interest on investment securities and interest-earning cash: The bank also earns interest from its securities portfolio (e.g., government or agency-related securities, if held) and other interest-earning balances. - Funding costs: The bank pays interest on interest-bearing deposits (such as savings, money market accounts, and certificates of deposit) and any other borrowings. The spread between interest earned on assets and interest paid on liabilities is the net interest margin, a key determinant of earnings. 2) Noninterest income (supplemental revenues) - Service charges and fees: The bank earns fee income from deposit account-related charges (e.g., certain account maintenance or transaction-related fees) and other service fees associated with providing banking services. - Other banking-related fees: Depending on the bank’s offerings, additional fee sources can include payments processing-related fees and other customary community bank fee categories. Specific noninterest income line items beyond general banking fees are null. 3) Key factors that contribute to earnings - Loan growth and credit quality: Expanding the loan portfolio can increase interest income, while higher delinquencies, charge-offs, or expected losses can reduce earnings through a higher provision for credit losses. - Interest-rate environment and deposit competition: Changes in short- and long-term rates affect loan yields and deposit costs; competitive pressure for deposits can raise funding costs and compress margins. - Operating efficiency: Profitability is influenced by personnel, branch and occupancy costs, technology, regulatory compliance, and other overhead. 4) Significant partnerships - null

First Bancorp of Indiana Financial Statement Overview

Summary

Mixed fundamentals: profitability remains positive but weakened materially with an 18.1% revenue decline in 2025 and net margin down to ~6.4%. Offsetting this, leverage improved sharply versus 2024 (debt-to-equity ~2.31x vs ~4.12x) and cash conversion improved (FCF ~0.82x of net income), though returns (ROE ~3.5%) and cash flow coverage versus debt remain soft.

Income Statement

Profitability has weakened versus prior years: net margin fell to ~6.4% in 2025 (from ~8.3% in 2024 and ~10–16% in 2021–2023), and revenue declined sharply in 2025 (-18.1%) after a near-flat 2024. Positives include continued profitability and generally solid historical margins, but the recent revenue drop and compressing earnings profile reduce confidence in the near-term trajectory.

Balance Sheet

Leverage has improved meaningfully: debt-to-equity declined to ~2.31x in 2025 from ~4.12x in 2024, indicating a less stressed capital profile than last year. However, leverage is still elevated versus earlier periods (e.g., ~1.57x in 2021), and return on equity has softened to ~3.5% in 2025 (down from ~4.9% in 2024 and ~7–9% in 2021–2023), suggesting profitability is not currently strong enough to fully offset balance-sheet risk.

Cash Flow

Cash generation is a relative bright spot in 2025, with free cash flow covering ~0.82x of net income (up from ~0.43x in 2024), and both operating and free cash flow are positive. The main weakness is the consistently low operating cash flow relative to the company’s debt load (coverage near ~0.3%–1.2% across the period), which limits financial flexibility if conditions tighten.

Breakdown	Jun 2025	Jun 2023	Jun 2022	Jun 2021	Jun 2021
Income Statement
Total Revenue	18.38M	18.48M	27.46M	20.18M	23.27M
Gross Profit	18.38M	18.48M	19.73M	17.65M	20.05M
EBITDA	714.52K	2.24M	3.95M	3.70M	5.30M
Net Income	1.17M	1.53M	2.85M	2.44M	3.79M
Balance Sheet
Total Assets	605.75M	635.32M	631.34M	518.48M	480.87M
Cash, Cash Equivalents and Short-Term Investments	0.00	8.57M	13.37M	14.69M	9.01M
Total Debt	76.95M	129.89M	129.83M	90.77M	65.16M
Total Liabilities	572.42M	603.78M	599.33M	485.89M	439.32M
Stockholders Equity	33.34M	31.54M	32.01M	32.59M	41.55M
Cash Flow
Free Cash Flow	2.25M	669.73K	64.85K	3.32M	4.05M
Operating Cash Flow	2.73M	1.58M	1.66M	5.74M	4.56M
Investing Cash Flow	34.86M	-7.32M	-106.86M	-88.01M	17.44M
Financing Cash Flow	-32.58M	2.36M	110.02M	45.56M	2.84M

First Bancorp of Indiana Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBPI, the sentiment is Positive. The current price of 12.13 is below the 20-day moving average (MA) of 12.84, below the 50-day MA of 12.37, and above the 200-day MA of 10.99, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 80.95 is Negative, neither overbought nor oversold. The STOCH value of 82.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FBPI.

First Bancorp of Indiana Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FBPI	59 Neutral	$23.93M	10.98	4.85%	0.96%	―	―
KFFB	54 Neutral	$36.96M	30.97	1.71%	―	15.56%	―
GLBZ	44 Neutral	$14.06M	26.98	0.09%	―	5.76%	-72.73%
SHFS	43 Neutral	$2.98M	424.54	-229.75%	―	-42.15%	-1001.66%