/C O R R E C T I O N -- Indiana Community Bancorp/

In the news release, Indiana Community Bancorp Announces First Quarter
Earnings, issued April 28, 2009, by Indiana Community Bancorp over PR
Newswire, we are advised by the company that changes have been made to the
release. In the first paragraph and the table titled CONSOLIDATED STATEMENTS
OF INCOME, basic and diluted earnings per common share for the Three Months
Ended, March 31, 2009 should read "$0.05" rather than "$0.09". Also, the word
"million" was added to the sixth paragraph, third sentence to read, "Net
charge offs were $1.8 million for the first quarter and included a $1.4
million write down of a $3.0 million loan which had previously been classified
as non-performing to a manufacturing business in southeast Indiana which
discontinued operations during the quarter," rather than "$3.0 loan" as
originally issued inadvertently. The complete, corrected release follows:
Indiana Community Bancorp Announces First Quarter Earnings

COLUMBUS, Ind., April 28 /PRNewswire-FirstCall/ -- Indiana Community Bancorp
(the "Company") (Nasdaq: INCB), the holding company of Indiana Bank and Trust
Company of Columbus, Indiana (the "Bank"), today announced quarterly earnings
of $440,000 or $0.05 diluted earnings per common share compared to $1,419,000
or $0.42 diluted earnings per common share a year earlier. The decrease in
net income compared to the prior year was primarily due to an increase in
provision for loan losses of $1.7 million to $2.1 million for the quarter
compared to $360,000 for the prior year. The Company increased the provision
for loan losses to cover net charge offs for the quarter of $1.8 million and
to increase the overall allowance for loan losses in light of the challenging
economic cycle. Chairman and CEO John Keach, Jr. stated, "The economic
climate certainly remains challenging. However, we continue to be profitable
and we remain focused on the steps necessary to strengthen our Company. Our
core principles have served us well and position us to weather this economic
storm." Executive Vice President and CFO Mark Gorski added, "Growth in core
deposits is one of the most important components to enhancing our core
franchise and we are very pleased with the $41.6 million increase in retail
deposits during the first quarter."

Balance Sheet

Total assets reached $1.0 billion as of March 31, 2009, an increase of $32.6
million from December 31, 2008. Total loans were flat for the quarter.
Commercial and commercial mortgage loans increased $11.7 million for the
quarter while residential mortgage loans and consumer loans decreased $12.0
million for the quarter. Residential mortgage loan origination volume was up
substantially due to significant refinance activity resulting from low
interest rates. As substantially all new mortgage loans are being sold in the
secondary market, residential mortgage balances continue to decline. In
addition, the refinance activity resulted in reductions to home equity and
second mortgage loans as these balances were combined with the first mortgage
when the refinancing occurred.

Total retail deposits increased $41.6 million for the quarter. This
substantial growth in retail deposits occurred in all categories as demand
deposits increased $4.4 million, interest bearing transaction accounts
increased $26.8 million and certificates of deposit increased $10.4 million.
The Bank has seen deposit growth from individual accounts, business accounts
and public entity accounts across the entire market footprint. Management
believes that deposit growth reflects customer preference for insured bank
deposits which provide safety of principal balance plus interest.

Total FHLB advances and short term borrowings decreased $12.3 million for the
quarter. The increase in retail deposits provided a source for the repayment
of FHLB advances and short term borrowings during the quarter.

As of March 31, 2009, shareholders' equity was $92.2 million. The Company's
total risk based capital ratio was 13.5% which exceeded the threshold of 10.0%
defined by the regulators as well capitalized.

Asset Quality

Provision for loan losses totaled $2.1 million for the quarter representing a
significant increase over the first quarter of 2008. The increase in
provision for loan losses was primarily due to high levels of net charge offs
during the first quarter. Net charge offs were $1.8 million for the first
quarter and included a $1.4 million write down of a $3.0 million loan which
had previously been classified as non-performing to a manufacturing business
in southeast Indiana which discontinued operations during the quarter. This
compares to net charge offs of $289,000 for the first quarter of 2008. Total
non-performing assets decreased $934,000 to $26.8 million at March 31, 2009
compared to $27.7 million at December 31, 2008. Non-performing assets to
total assets decreased to 2.67% at March 31, 2009 compared to 2.86% at
December 31, 2008. The ratio of the allowance for loan losses to total loans
was 1.12% at March 31, 2009 compared to 1.07% at December 31, 2008.

Net Interest Income

Net interest income was flat at $6.9 million for the quarter. Net interest
margin for the quarter was 3.19%, which represented a decrease of 6 basis
points compared to the first quarter of 2008 and a 9 basis point decrease
compared to the fourth quarter of 2008. The decrease in net interest margin
for the quarter was primarily the result of a significant reduction in
interest rates late in 2008. The Federal Reserve cut the Federal Funds rate
to an historic low of 0.25% in December 2008. As the Federal Funds rate and
interest rates overall remained low during the first quarter, the rates on the
Bank's interest earning assets decreased. However, due to historic low rates,
the pricing of many of the Bank's deposit products could not be reduced at the
same pace as reductions in the rates on interest earning assets. Management
anticipates the net interest margin to decrease in the second quarter due
partially to the increase in retail deposits. While the increase in deposits
enhances the franchise value of the Company, the influx of deposits is
outpacing loan demand and in the short term, the yield on alternative
investments will negatively impact net interest margin.

Non Interest Income

Non interest income decreased $41,000 for the quarter. Gain on sale of loans
increased $659,000 for the quarter and service fees on deposit accounts
decreased $41,000 for the quarter. The increase in the gain on sale of loans
resulted primarily from a significant increase in origination volumes due to
refinance activity that began late in 2008. The Bank discontinued offering
brokerage services in September 2008. Brokerage fee income totaled $471,000
in the first quarter of 2008.

Non Interest Expenses

Non interest expenses decreased $182,000 to $7.2 million for the quarter.
Compensation and employee benefits expense decreased $591,000 or 13.8% for the
quarter. Three primary factors contributed to the decrease in compensation
and benefits: 1) the Company froze its defined benefit pension plan effective
April 1, 2008 resulting is an expense reduction of $239,000 for the quarter,
2) the Company reduced its workforce by approximately 10% in the third quarter
of 2008 resulting in an expense reduction of approximately $200,000 for the
quarter and 3) the Company discontinued offering brokerage services effective
September 2008 resulting in an expense reduction of $267,000 for the quarter.
These decreases to compensation and employee benefits were partially offset by
an increase in mortgage commissions of $218,000 as a result of increased
mortgage volumes discussed above. Marketing expense decreased $139,000 for
the quarter due to the timing of advertising associated with the name change
which occurred in the first quarter of 2008. The Company anticipates total
marketing cost for 2009 to be approximately 20% less than the average
marketing expense over the previous 2 years. Miscellaneous expense increased
$549,000 for the quarter due primarily to an increase in problem loan workout
related costs which increased $336,000 and an increase in the FDIC insurance
expense of $280,000. The increase in problem loan workout related costs for
the quarter included approximately $217,000 in costs associated with the large
charge off referenced above.

Indiana Community Bancorp is a bank holding company registered with the Board
of Governors of the Federal Reserve System (the "Federal Reserve"), which has
been authorized by the Federal Reserve to engage in activities permissible for
a financial holding company. Indiana Bank and Trust Company, its principal
subsidiary, is an FDIC insured state chartered commercial bank. Indiana Bank
and Trust Company was founded in 1908 and offers a wide range of consumer and
commercial financial services through 20 branch offices in central and
southeastern Indiana.

Forward-Looking Statement

This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include expressions such as "expects," "intends,"
"believes," and "should," which are necessarily statements of belief as to the
expected outcomes of future events. Actual results could materially differ
from those presented. Indiana Community Bancorp undertakes no obligation to
release revisions to these forward-looking statements or reflect events or
circumstances after the date of this release. The Company's ability to predict
future results involves a number of risks and uncertainties, some of which
have been set forth in the Company's most recent annual report on Form 10-K,
which disclosures are incorporated by reference herein.

INDIANA COMMUNITY BANCORP
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited) March 31, December 31,
2009 2008
---------- -----------
Assets:
Cash and due from banks $66,154 $22,352
Interest bearing demand deposits 2,027 234
---------- -----------
Cash and cash equivalents 68,181 22,586
Securities available for sale at fair
value (amortized cost $75,542 and $90,957) 76,116 91,096
Securities held to maturity at amortized
cost (fair value $3,741 and $3,884) 4,375 4,467
Loans held for sale (fair value $5,843 and
$2,907) 5,743 2,856
Portfolio loans:
Commercial loans 228,690 221,766
Commercial mortgage loans 339,105 334,367
Residential mortgage loans 113,719 120,227
Second and home equity loans 100,519 104,084
Other consumer loans 18,628 20,532
Unearned income (161) (241)
---------- -----------
Total portfolio loans 800,500 800,735
Allowance for loan losses (8,927) (8,589)
---------- -----------
Portfolio loans, net 791,573 792,146

Premises and equipment 15,151 15,323
Accrued interest receivable 3,541 3,777
Goodwill 1,394 1,394
Other assets 35,851 35,728
---------- -----------
TOTAL ASSETS $1,001,925 $969,373
========== ===========

Liabilities and Shareholders' Equity:
Liabilities:
Deposits:
Demand $76,109 $71,726
Interest checking 119,676 110,944
Savings 42,834 40,862
Money market 172,600 156,500
Certificates of deposits 324,869 314,425
---------- -----------
Retail deposits 736,088 694,457
---------- -----------
Brokered deposits 4,523 5,420
Public fund certificates 14,519 10,762
---------- -----------
Wholesale deposits 19,042 16,182
---------- -----------
Total deposits 755,130 710,639
---------- -----------

FHLB advances 122,363 129,926
Short term borrowings - 4,713
Junior subordinated debt 15,464 15,464
Other liabilities 16,794 16,619
---------- -----------
Total liabilities 909,751 877,361
---------- -----------

Commitments and Contingencies

Shareholders' equity:
No par preferred stock; Authorized:
2,000,000 shares Issued and outstanding:
21,500 and 21,500 20,981 20,962
No par common stock; Authorized:
15,000,000 shares Issued and outstanding:
3,358,079 and 3,358,079 21,012 20,985
Retained earnings, restricted 50,500 50,670
Accumulated other comprehensive loss, net (319) (605)
---------- -----------
Total shareholders' equity 92,174 92,012
---------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $1,001,925 $969,373
========== ===========

INDIANA COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share data)
(unaudited) Three Months Ended
March 31,
------------------
2009 2008
------ ------
Interest Income:
Short term investments $7 $301
Securities 821 684
Commercial loans 2,754 3,421
Commercial mortgage loans 4,828 4,501
Residential mortgage loans 1,798 2,350
Second and home equity loans 1,278 1,681
Other consumer loans 390 507
--------- ---------
Total interest income 11,876 13,445
--------- ---------

Interest Expense:
Checking and savings accounts 273 362
Money market accounts 474 1,077
Certificates of deposit 2,768 3,475
--------- ---------
Total interest on retail deposits 3,515 4,914
--------- ---------

Brokered deposits 56 111
Public funds 52 23
--------- ---------
Total interest on wholesale deposits 108 134
--------- ---------
Total interest on deposits 3,623 5,048
--------- ---------

FHLB advances 1,188 1,262
Junior subordinated debt 136 245
--------- ---------
Total interest expense 4,947 6,555
--------- ---------

Net interest income 6,929 6,890
Provision for loan losses 2,098 360
--------- ---------
Net interest income after provision for loan
losses 4,831 6,530
--------- ---------

Non Interest Income:
Gain on sale of loans 1,062 403
Investment advisory services - 471
Service fees on deposit accounts 1,454 1,495
Loan servicing income, net of impairment 133 125
Miscellaneous 394 590
--------- ---------
Total non interest income 3,043 3,084
--------- ---------

Non Interest Expenses:
Compensation and employee benefits 3,678 4,269
Occupancy and equipment 1,032 1,056
Service bureau expense 479 456
Marketing 216 355
Miscellaneous 1,828 1,279
--------- ---------
Total non interest expenses 7,233 7,415
--------- ---------

Income before income taxes 641 2,199
Income tax provision 201 780
--------- ---------
Net Income $440 $1,419
========= =========
Basic earnings per common share $0.05 $0.42
Diluted earnings per common share $0.05 $0.42

Basic weighted average number of shares 3,358,079 3,364,463
Dilutive weighted average number of shares 3,358,079 3,375,275
Dividends per share $0.120 $0.200

Supplemental Data: Three Months Ended
(unaudited) March 31,
------------------
2009 2008
---- ----
Weighted average interest
rate earned on total
interest-earning assets 5.47% 6.35%
Weighted average cost of
total interest-bearing
liabilities 2.32% 3.16%
Interest rate spread during
period 3.15% 3.19%

Net interest margin (net interest
income divided by average
interest-earning assets on annualized
basis) 3.19% 3.25%
Total interest income divided by
average total assets (on annualized
basis) 4.91% 5.87%
Total interest expense divided by
average total assets (on annualized
basis) 2.05% 2.86%
Net interest income divided by average
total assets (on annualized basis) 2.86% 3.01%

Return on assets (net income divided by
average total assets on
annualized basis) 0.18% 0.62%

Return on equity (net income divided by
average total equity on annualized basis) 1.93% 8.37%

March 31, December 31,
2009 2008
---- ----

Book value per share outstanding $21.00 $20.98

Nonperforming Assets:
Loans: Non-accrual $22,265 $22,534
Past due 90 days or more - 518
Restructured 1,049 1,282
---------------------
Total nonperforming loans 23,314 24,334
Real estate owned, net 3,432 3,335
Other repossessed assets,
net 33 44
---------------------
Total Nonperforming Assets $26,779 $27,713

Nonperforming assets divided
by total assets 2.67% 2.86%
Nonperforming loans divided
by total loans 2.91% 3.04%

Balance in Allowance for Loan Losses $8,927 $8,589

SOURCE Indiana Community Bancorp

John K. Keach, Jr., Chairman, Chief Executive Officer, +1-812-373-7816, or
Mark T. Gorski, Executive Vice President, Chief Financial Officer,
+1-812-373-7379