First Federal Bank suspends dividend payments

HENDERSON, Ky. (WEHT) – An Evansville-based bank is suspending the payment of quarterly cash dividends on its common stock.

First Bancorp of Indiana, the holding company of First Federal Savings Bank, announced the decision to suspend payments on Monday. The bank’s president and CEO, Michael Head, said the decision was disappointing but was part of an effort to improve capital levels, liquidity and earnings and to better position the bank to reduce higher funding costs.

In a press release, the bank states that its board believes in a strong dividend policy and intends to reassess the matter regularly.