----

| Indiana                                                                                                     |   | 35-2061832                                                              |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------|
| (State                or other jurisdiction of incorporation                or                organization) |   | (I.R.S.                Employer Identification                No.) |

| 5001                Davis Lant Drive, Evansville, Indiana |   | 47715                     |
|-----------------------------------------------------------|--------|---------------------------|
| (Address                of principal executive offices)   |   | (Zip                Code) |

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** **

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|                                                                                              |   | Page   |   |
|---------------------------------------------------------------------------------------------------|--------|--------|--------|
| Part                I Financial Information                                                       |   |   |   |
| Item                1. Financial Statements                                                       |   |   | 3      |   |
| Item                2. Management's Discussion and Analysis or Plan of                Operation   |   |   | 9      |   |
| Item                3. Controls and Procedures                                                    |   |   | 14     |   |
|                                                                                              |   |   |   |   |
| Part                II Other Information                                                          |   |   |   |   |
| Item                1. Legal Proceedings                                                          |   |   | 15     |   |
| Item                2. Unregistered Sales of Equity Securities and Use of                Proceeds |   |   | 15     |   |
| Item                3. Defaults Upon Senior Securities                                            |   |   | 15     |   |
| Item                4. Submission of Matters to a Vote of Security Holders                        |   |   | 15     |   |
| Item                5. Other Information                                                          |   |   | 15     |   |
| Item                6. Exhibits                                                                   |   |   | 15     |   |
|                                                                                              |   |   |   |   |
| Signatures                                                                                        |   |   | 16     |   |

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**FIRST        BANCORP OF INDIANA, INC.**

**AND        **
**S**
**UBSIDIARY**

**Condensed        Consolidated Balance Sheets**

|                                                                                                                     |   | **September 30, 2007** |         | **June 30, 2007** |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------------|-----------------------------|--------|
|                                                                                                                     |   | (Unaudited)                      |         |                        |   |
| **Assets**                                                                                                               |   |                             |         |                        |   |
| Cash                    and due from banks                                                                               |   | $                                | 6,092,082    |                        | $      | 7,455,076 |   |
| Interest-bearing                    demand deposits                                                                      |   |                             | 9,009,389    |                        |   | 7,395,910 |   |
| Total                    cash and cash equivalents                                                                       |   |                             | 15,101,471   |                        |   | 14,850,986 |   |
| Interest-bearing                    deposits                                                                             |   |                             | 1,318,000    |                        |   | 1,616,000 |   |
| Investment                    securities                                                                                 |   |                             |         |                        |   |   |   |
| Available                    for sale                                                                                    |   |                             | 64,885,324   |                        |   | 65,120,545 |   |
| Held                    to maturity                                                                                      |   |                             | 14,487,315   |                        |   | 14,976,789 |   |
| Total                    investment securities                                                                           |   |                             | 79,372,639   |                        |   | 80,097,334 |   |
| Loans                                                                                                                    |   |                             | 236,231,192  |                        |   | 234,301,694 |   |
| Allowance                    for loan losses                                                                             |   |                             | (1,074,053   | )                           |   | (1,064,713 | ) |
| Net                    loans                                                                                             |   |                             | 235,157,139  |                        |   | 233,236,981 |   |
| Premises                    and equipment                                                                                |   |                             | 9,253,703    |                        |   | 9,322,801 |   |
| Goodwill                                                                                                                 |   |                             | 6,229,152    |                        |   | 6,229,152 |   |
| Core                    deposit intangibles                                                                              |   |                             | 857,126      |                        |   | 894,431 |   |
| Federal                    Home Loan Bank stock                                                                          |   |                             | 4,564,700    |                        |   | 4,564,700 |   |
| Other                    assets                                                                                          |   |                             | 12,095,053   |                        |   | 12,179,690 |   |
|                                                                                                                     |   |                             |         |                        |   |   |   |
| Total                    assets                                                                                          |   | $                                | 363,948,983  |                        | $      | 362,992,075 |   |
|                                                                                                                     |   |                             |         |                        |   |   |   |
| **Liabilities**                                                                                                          |   |                             |         |                        |   |   |   |
| Deposits                                                                                                                 |   |                             |         |                        |   |   |   |
| Non-interest                    bearing                                                                                  |   | $                                | 11,584,417   |                        | $      | 11,503,688 |   |
| Interest                    bearing                                                                                      |   |                             | 227,857,680  |                        |   | 239,730,019 |   |
| Total                    deposits                                                                                        |   |                             | 239,442,097  |                        |   | 251,233,707 |   |
| Borrowings                                                                                                               |   |                             | 84,651,892   |                        |   | 72,495,874 |   |
| Advances                    by borrowers for                                                                             |   |                             |         |                        |   |   |   |
| taxes                    and insurance                                                                                   |   |                             | 865,925      |                        |   | 695,051 |   |
| Other                    liabilities                                                                                     |   |                             | 4,937,907    |                        |   | 4,349,605 |   |
| Total                    liabilities                                                                                     |   |                             | 329,897,821  |                        |   | 328,774,237 |   |
|                                                                                                                     |   |                             |         |                        |   |   |   |
| **Commitments                    and Contingent Liabilities**                                                            |   |                             | 0            |                        |   | 0 |   |
|                                                                                                                     |   |                             |         |                        |   |   |   |
| **Stockholders'                    Equity**                                                                              |   |                             |         |                        |   |   |   |
| Preferred                      stock, $.01 par valueAuthorized and unissued - 1,000,000                      shares      |   |                             |         |                        |   |   |   |
| Common                    stock, $.01 par valueAuthorized - 9,000,000 sharesIssued -                    2,566,346 shares |   |                             | 25,663       |                        |   | 25,663 |   |
| Additional                    paid-in capital                                                                            |   |                             | 27,951,337   |                        |   | 27,959,954 |   |
| Retained                    earnings                                                                                     |   |                             | 18,437,438   |                        |   | 18,801,944 |   |
| Accumulated                    other comprehensive income / (loss)                                                       |   |                             | (384,252     | )                           |   | (683,548 | ) |
|                                                                                                                     |   |                             | 46,030,186   |                        |   | 46,104,013 |   |
|                                                                                                                     |   |                             |         |                        |   |   |   |
| Less:                                                                                                                    |   |                             |         |                        |   |   |   |
| Unreleased                      employee stock ownership plan shares - 49,234 and 53,020                      shares     |   |                             | (502,593     | )                           |   | (541,241 | ) |
| Treasury                    stock - 733,831 and 725,445 shares                                                           |   |                             | (11,476,431  | )                           |   | (11,344,934 | ) |
|                                                                                                                     |   |                             |         |                        |   |   |   |
| Total                    stockholders' equity                                                                            |   |                             | 34,051,162   |                        |   | 34,217,838 |   |
|                                                                                                                     |   |                             |    |                        |   |    |   |
| Total                    liabilities and stockholders' equity                                                            |   | $                                | 363,948,983  |                        | $      | 362,992,075 |   |

----

**FIRST          BANCORP OF INDIANA, INC.**

**AND          **
**S**
**UBSIDIARY**

**Condensed          Consolidated Statements of Income**

|                                                                              |   | **For                    the**            |            |
|-----------------------------------------------------------------------------------|--------|-------------------------------------------|-----------------|
|                                                                              |   | **Three                    Months Ended** |            |
|                                                                              |   | **September                    30,**      |            |
|                                                                              |   | **2007**                                  |            | **2006** |   |
|                                                                              |   | *(Unaudited)*                             |            |
|                                                                              |   |                                      |            |   |   |
| **Interest                    Income**                                            |   |                                      |            |   |   |
| Loans                    receivable                                               |   | $                                         | 4,040,298       |   | $ | 3,124,641 |   |
| Investment                    securities                                          |   |                                      | 996,380         |   |   | 830,607 |   |
| Deposits                    with financial institutions                           |   |                                      | 146,131         |   |   | 39,862 |   |
| Federal                    funds sold                                             |   |                                      | 0               |   |   | 12,311 |   |
| Other                    interest and dividend income                             |   |                                      | 52,580          |   |   | 43,848 |   |
| Total                    interest income                                          |   |                                      | 5,235,389       |   |   | 4,051,269 |   |
|                                                                              |   |                                      |            |   |   |   |   |
| **Interest                    Expense**                                           |   |                                      |            |   |   |   |   |
| Deposits                                                                          |   |                                      | 2,443,902       |   |   | 1,628,133 |   |
| Borrowings                                                                        |   |                                      | 938,784         |   |   | 788,943 |   |
| Total                    interest expense                                         |   |                                      | 3,382,686       |   |   | 2,417,076 |   |
|                                                                              |   |                                      |            |   |   |   |   |
| **Net                    Interest Income**                                        |   |                                      | 1,852,703       |   |   | 1,634,193 |   |
|                                                                              |   |                                      |            |   |   |   |   |
| Provision                    for loan losses                                      |   |                                      | 80,000          |   |   | 95,000 |   |
|                                                                              |   |                                      |            |   |   |   |   |
| **Net                    Interest Income after Provision**                        |   |                                      | 1,772,703       |   |   | 1,539,193 |   |
|                                                                              |   |                                      |            |   |   |   |   |
| **Noninterest                    Income**                                         |   |                                      |            |   |   |   |   |
|                                                                                   |   |                                      |            |   |   |   |   |
| Increase                      in cash surrender values of life insurance          |   |                                      | 49,500          |   |   | 49,500 |   |
| Net                    gains on loan sales                                        |   |                                      | 27,163          |   |   | 67,500 |   |
| ATM                    transaction & POS interchange fees                     |   |                                      | 74,537          |   |   | 60,211 |   |
| Service                    charges on deposit accounts                            |   |                                      | 175,222         |   |   | 103,990 |   |
| Other                    income                                                   |   |                                      | 163,803         |   |   | 219,402 |   |
| Total                    noninterest income                                       |   |                                      | 490,225         |   |   | 500,603 |   |
|                                                                              |   |                                      |            |   |   |   |   |
| **Noninterest                    Expense**                                        |   |                                      |            |   |   |   |   |
| Salaries                    and employee benefits                                 |   |                                      | 1,028,478       |   |   | 934,633 |   |
| Net                    occupancy expense                                          |   |                                      | 177,500         |   |   | 145,833 |   |
| Equipment                    expense                                              |   |                                      | 119,809         |   |   | 113,429 |   |
| Amortization                    of intangible assets                              |   |                                      | 37,305          |   |   | 19,012 |   |
| Professional                    fees                                              |   |                                      | 35,986          |   |   | 67,902 |   |
| Advertising                                                                       |   |                                      | 59,436          |   |   | 67,744 |   |
| Data                    processing fees                                           |   |                                      | 128,019         |   |   | 98,406 |   |
| Other                    expense                                                  |   |                                      | 446,035         |   |   | 375,180 |   |
| Total                    noninterest expense                                      |   |                                      | 2,032,568       |   |   | 1,822,139 |   |
|                                                                              |   |                                      |            |   |   |   |   |
| **Income                    Before Income Tax**                                   |   |                                      | 230,360         |   |   | 217,657 |   |
| Income                    tax expense                                             |   |                                      | 41,750          |   |   | 43,987 |   |
|                                                                              |   |                                      |            |   |   |   |   |
| **Net                    Income**                                                 |   | $                                         | 188,610         |   | $ | 173,670 |   |
|                                                                              |   |                                      |            |   |   |   |   |
| Basic                    earnings per share                                       |   | $                                         | 0.11            |   | $ | 0.12 |   |
| Diluted                    earnings per share                                     |   | $                                         | 0.10            |   | $ | 0.11 |   |
| Dividends                    declared per share                                   |   | $                                         | 0.30            |   | $ | 0.30 |   |
|                                                                              |   |                                      |            |   |   |   |   |
| Weighted                    average shares outstanding – Basic         |   |                                      | 1,785,092  |   |   | 1,485,565  |   |
| Weighted                    average shares outstanding – Diluted  |   |                                      | 1,801,897       |   |   | 1,520,293  |   |
| Dilutive                    effect of options                                |   |                                      | 16,805          |   |   | 34,728  |   |

----

**FIRST          BANCORP OF INDIANA, INC.**
**AND          SUBSIDIARY**

**Condensed          Consolidated Statement of Changes in Stockholders' Equity**

|                                                                                                                                              |   | **Comprehensive                          Income** |         | **Common                          Stock** |   | **Additional                          Paid-in Capital** |   | **Retained                          Earnings** |       | **Accumulated                          Other Comprehensive Income / (Loss)** |   | **Unallocated                          ESOP Shares** |   | **Treasury                          Shares** |     | **Total** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|--------------|-------------------------------------------|--------|---------------------------------------------------------|--------|------------------------------------------------|------------|------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|----------------------------------------------|----------|-----------|--------|
|                                                                                                                                              |   |                                              |         |                                      |   |                                                    |   |                                           |       |                                                                         |   |                                                 |   |                                         |     |      |   |
| **Balances,                          June 30, 2007**                                                                                              |   |                                              |         |                                      | $      | 25,663                                                  |   | $                                              | 27,959,954 |                                                                         | $      | 18,801,944                                           |   | $                                            | (683,548 | )         | $      | (541,241 | ) | $ | (11,344,934 | ) | $ | 34,217,838 |   |
|                                                                                                                                              |   |                                              |         |                                      |   |                                                    |   |                                           |       |                                                                         |   |                                                 |   |                                         |     |      |   |   |   |   |   |   |   |   |   |
| Net                          income                                                                                                               |   | $                                                 | 188,610      |                                      |   |                                                    |   |                                           |       |                                                                         |   | 188,610                                              |   |                                         |     |      |   |   |   |   |   |   |   | 188,610 |   |
| Other                              comprehensive income, net of tax–Unrealized                              gains on securities (unaudited) |   |                                              | 299,296      |                                      |   |                                                    |   |                                           |       |                                                                         |   |                                                 |   |                                         | 299,296  |      |   |   |   |   |   |   |   | 299,296 |   |
|                                                                                                                                              |   |                                              |         |                                      |   |                                                    |   |                                           |       |                                                                         |   |                                                 |   |                                         |     |      |   |   |   |   |   |   |   |   |   |
| Cash                          dividends paid $(0.30 per share)                                                                                    |   |                                              |         |                                      |   |                                                    |   | (553,116                                       | )          |                                                                         |   |                                                 |   |                                         |     |      |   |   |   | (553,116 | ) |
| Employee                              Stock Ownership Plan shares allocated                                                                       |   |                                              |         |                                      |   |                                                    |   |                                           | 19,733     |                                                                         |   |                                                 |   |                                         |     |      |   | 38,648 |   |   |   |   |   | 58,381 |   |
| Treasury                          shares purchased                                                                                                |   |                                              |         |                                      |   |                                                    |   |                                           |       |                                                                         |   |                                                 |   |                                         |     |      |   |   |   |   | (199,558 | ) |   | (199,558 | ) |
| Options                          exercised                                                                                                        |   |                                              |    |                                      |   |                                                    |   |                                           | (28,350    | )                                                                            |   |                                                 |   |                                         |     |      |   |   |   |   | 68,061 |   |   | 39,711 |   |
| Comprehensive                          income (unaudited)                                                                                         |   | $                                                 | 487,906      |                                      |   |                                                    |   |                                           |       |                                                                         |   |                                                 |   |                                         |     |      |   |   |   |   |   |   |   |   |   |
|                                                                                                                                              |   |                                              |         |                                      |   |                                                    |   |                                           |       |                                                                         |   |                                                 |   |                                         |     |      |   |   |   |   |   |   |   |   |   |
| **Balances,                          September 30, 2007**                                                                                         |   |                                              |         |                                      | $      | 25,663                                                  |   | $                                              | 27,951,337 |                                                                         | $      | 18,437,438                                           |   | $                                            | (384,252 | )         | $      | (502,593 | ) | $ | (11,476,431 | ) | $ | 34,051,162 |   |

----

**FIRST          BANCORP OF INDIANA, INC.**

**AND          **
**S**
**UBSIDIARY**

**Condensed          Consolidated Statements of Cash Flows**

|                                                                                                         |   | **Year                    to Date**  |         |
|--------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|--------------|
|                                                                                                         |   | **September                    30,** |         |
|                                                                                                         |   | **2007**                             |         | **2006** |   |
|                                                                                                         |   | *(Unaudited)*                        |         |
|                                                                                                         |   |                                 |         |   |   |
| **Net                    Cash Provided by Operating Activities**                                             |   | $                                    | 870,853      |   | $ | 1,021,240 |   |
|                                                                                                         |   |                                 |         |   |   |   |   |
| **Investing                    Activities**                                                                  |   |                                 |         |   |   |   |   |
| Net                    change in interest-bearing deposits                                                   |   |                                 | 298,000      |   |   | 0 |   |
| Proceeds                    from maturities of securities available for sale                                 |   |                                 | 2,479,412    |   |   | 2,162,198 |   |
| Proceeds                    from maturities of securities held to maturity                                   |   |                                 | 483,587      |   |   | 345,212 |   |
| Purchases                    of securities available for sale                                                |   |                                 | (1,743,787   | ) |   | (425,718 | ) |
| Net                    change in loans                                                                       |   |                                 | (1,911,521   | ) |   | (4,331,587 | ) |
| Purchases                    of premises and equipment                                                       |   |                                 | (53,790      | ) |   | (161,811 | ) |
| Proceeds                    from sales of premises and equipment                                             |   |                                 | 6,430        |   |   | 0 |   |
|                                                                                                         |   |                                 |    |   |   |    |   |
| Net                    cash used in investing activities                                                     |   |                                 | (441,669     | ) |   | (2,411,706 | ) |
|                                                                                                         |   |                                 |         |   |   |   |   |
| **Financing                    Activities**                                                                  |   |                                 |         |   |   |   |   |
| Net                    change in                                                                             |   |                                 |         |   |   |   |   |
| Non-interest                      bearing, interest-bearing demand and savings                      deposits |   |                                 | 4,272,996    |   |   | (1,533,885 | ) |
| Certificates                    of deposit                                                                   |   |                                 | (16,064,606  | ) |   | 12,739,394 |   |
| Proceeds                    from issuance of long-term borrowings                                            |   |                                 | 15,155,000   |   |   | 0 |   |
| Repayments                    of long-term borrowings                                                        |   |                                 | (3,000,000   | ) |   | (2,000,000 | ) |
| Advances                    by borrowers for taxes and insurance                                             |   |                                 | 170,874      |   |   | 261,350 |   |
| Dividends                    paid                                                                            |   |                                 | (553,116     | ) |   | (466,378 | ) |
| Purchase                    of treasury shares                                                               |   |                                 | (199,558     | ) |   | (82,073 | ) |
| Options                    exercised                                                                         |   |                                 | 39,711       |   |   | 28,099 |   |
| Net                    cash provided (used) by financing activities                                          |   |                                 | (178,699     | ) |   | 8,946,507 |   |
|                                                                                                         |   |                                 |         |   |   |   |   |
| **Net                    Change in Cash and Cash Equivalents**                                               |   |                                 | 250,485      |   |   | 7,556,041 |   |
|                                                                                                         |   |                                 |         |   |   |   |   |
| **Cash                    and Cash Equivalents, Beginning of Period**                                        |   |                                 | 14,850,986   |   |   | 9,737,702 |   |
|                                                                                                         |   |                                 |         |   |   |   |   |
| **Cash                    and Cash Equivalents, End of Period**                                              |   | $                                    | 15,101,471   |   | $ | 17,293,743 |   |
|                                                                                                         |   |                                 |         |   |   |   |   |
| **Additional                    Cash Flow Information**                                                      |   |                                 |         |   |   |   |   |
| Interest                    paid                                                                             |   | $                                    | 2,822,766    |   | $ | 1,966,372 |   |
| Income                    tax paid                                                                           |   |                                 | 0            |   |   | 0 |   |

----

|                                                                           |   | September 30,2007 |       | June 30,2007 |   |
|--------------------------------------------------------------------------------|--------|------------------------|------------|-------------------|--------|
|                                                                           |   | (unaudited)            |       |              |   |
| Federal                Home Loan Bank putable advances                         |   |                   |       |              |   |
| Fixed                rate of 5.360%, due in March 2008                         |   |                   |       |              | $      | 2,500,000 |   |
| Fixed                rate of 4.980%, due in December 2010                      |   | $                      | 2,000,000  |              |   | 2,000,000 |   |
| Fixed                rate of 5.370%, due in February 2011                      |   |                   | 10,000,000 |              |   | 10,000,000 |   |
| Fixed                rate of 4.830%, due in July 2011                          |   |                   | 10,000,000 |              |   | 10,000,000 |   |
| Fixed                rate of 4.350%, due in September 2015                     |   |                   | 10,000,000 |              |   | 10,000,000 |   |
| Fixed                rate of 3.700%, due in September 2015                     |   |                   | 10,000,000 |              |   | 10,000,000 |   |
| Fixed                rate of 4.610%, due in June 2017                          |   |                   | 15,000,000 |              |   | 15,000,000 |   |
| Fixed                rate of 4.140%, due in August 2017                        |   |                   | 5,000,000  |              |   |   |   |
| Fixed                rate of 3.910%, due in September 2017                     |   |                   | 5,000,000  |              |   |   |   |
|                                                                           |   |                   |       |              |   |   |   |
| Federal                Home Loan Bank bullet advances                          |   |                   |       |              |   |   |   |
| Fixed                rate of 3.290%, due in August 2007                        |   |                   |       |              |   | 500,000 |   |
| Fixed                rate of 5.310%, due in June 2008                          |   |                   | 4,000,000  |              |   | 4,000,000 |   |
| Fixed                rate of 4.300%, due in June 2010                          |   |                   | 500,000    |              |   | 500,000 |   |
|                                                                           |   |                   |       |              |   |   |   |
| Total                Federal Home Loan Bank advances                           |   |                   | 71,500,000 |              |   | 64,500,000 |   |
|                                                                           |   |                   |       |              |   |   |   |
| Reverse                repurchase agreements                                   |   |                   |       |              |   |   |   |
| Fixed                rate of 4.2850%, due in January 2017                      |   |                   |       |              |   | 8,000,000 |   |
| Fixed                rate of 4.410%, due in July 2017                          |   |                   | 8,000,000  |              |   |   |   |
|                                                                           |   |                   |       |              |   |   |   |
| Junior                Subordinated Debentures, 6.905% rate, due September 2037 |   |                   | 5,155,000  |              |   |   |   |
|                                                                           |   |                   |       |              |   |   |   |
| Discount                on purchased borrowings                                |   |                   | (3,108     | )                 |   | (4,126 | ) |
|                                                                           |   |                   |       |              |   |   |   |
| Total                long-term debt                                            |   | $                      | 84,651,892 |              | $      | 72,495,874 |   |
|                                                                           |   |                   |       |              |   |   |   |
| Weighted                average rate                                           |   |                   | 4.679      | %                 |   | 4.611 | % |

----

|                                                                           |   | Quarter Ended September 30, 2007 |    |
|--------------------------------------------------------------------------------|--------|------------------------------------------------------|---------|
|                                                                           |   | Income                                               |    | Weighted-Average Shares |   | Per Share Amount |   |
|                                                                           |   |                                                 |    |   |   |   |   |
| Net                income                                                      |   | $                                                    | 188,610 |   |   |   |   |   |   |   |
|                                                                           |   |                                                 |    |   |   |   |   |   |   |   |
| Basic                earnings per share                                        |   |                                                 |    |   |   |   |   |   |   |   |
| Income                available to common stockholders                         |   | $                                                    | 188,610 |   | $ | 1,785,092 |   | $ | 0.11 |   |
|                                                                           |   |                                                 |    |   |   |   |   |   |   |   |
| Effect                of dilutive securities                                   |   |                                                 |    |   |   |   |   |   |   |   |
| Stock                options                                                   |   |                                                 | — |   |   | 16,805 |   |   |   |   |
|                                                                           |   |                                                 |    |   |   |   |   |   |   |   |
| Diluted                earnings per share                                      |   |                                                 |    |   |   |   |   |   |   |   |
| Income                available to common stockholders and assumed conversions |   | $                                                    | 188,610 |   | $ | 1,801,897 |   | $ | 0.10 |   |

|                                                                           |   | Quarter Ended September 30, 2006 |    |
|--------------------------------------------------------------------------------|--------|------------------------------------------------------|---------|
|                                                                           |   | Income                                               |    | Weighted-Average Shares |   | Per Share Amount |   |
|                                                                           |   |                                                 |    |   |   |   |   |
| Net                income                                                      |   | $                                                    | 173,670 |   |   |   |   |   |   |   |
|                                                                           |   |                                                 |    |   |   |   |   |   |   |   |
| Basic                earnings per share                                        |   |                                                 |    |   |   |   |   |   |   |   |
| Income                available to common stockholders                         |   | $                                                    | 173,670 |   | $ | 1,485,565 |   | $ | 0.12 |   |
|                                                                           |   |                                                 |    |   |   |   |   |   |   |   |
| Effect                of dilutive securities                                   |   |                                                 |    |   |   |   |   |   |   |   |
| Stock                options                                                   |   |                                                 | — |   |   | 34,728 |   |   |   |   |
|                                                                           |   |                                                 |    |   |   |   |   |   |   |   |
| Diluted                earnings per share                                      |   |                                                 |    |   |   |   |   |   |   |   |
| Income                available to common stockholders and assumed conversions |   | $                                                    | 173,670 |   | $  | 1,520,293 |   | $ | 0.11 |   |

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*Accounting      for Uncertainty in Income Taxes*

*Accounting      for Servicing of Financial Assets, an amendment of FASB Statement No. 140.      *

----

|                                                                  |   | September 30,2007 |    | June 30,2007 |   |
|-----------------------------------------------------------------------|--------|------------------------|---------|-------------------|--------|
|                                                                  |   |                   |    |              |   |
| Loans                accounted for on a nonaccrual basis              |   | $                      | 145,000 |              | $      | 311,000 |   |
| Accruing                loans past due 90 days or more                |   |                   | 16,000  |              |   | 14,000 |   |
| Nonperforming                loans                                    |   |                   | 161,000 |              |   | 325,000 |   |
| Real                estate owned (net)                                |   |                   | 97,000  |              |   | 10,000 |   |
| Other                repossessed assets                               |   |                   | 8,000   |              |   | 33,000 |   |
| Total                nonperforming assets                             |   | $                      | 266,000 |              | $      | 368,000 |   |
|                                                                  |   |                   |    |              |   |   |   |
| Total                loans delinquent 90 days or more to total loans  |   |                   | 0.07    | %                 |   | 0.14 | % |
| Total                loans delinquent 90 days or more to total assets |   |                   | 0.04    | %                 |   | 0.09 | % |
| Total                nonperforming assets to total assets             |   |                   | 0.07    | %                 |   | 0.10 | % |

----

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|                                                     |   |                                  |   | Regulatory Minimum |   | Well Capitalized per |   |
|----------------------------------------------------------|--------|---------------------------------------|--------|-------------------------|--------|--------------------------------|--------|
|                                                     |   | Actual                                |   | Required Capital   |   | 12 CFR Part 565 |   |
|                                                     |   | Amount                                |   | Ratio                   |   | Amount                         |   | Ratio |   | Amount |   | Ratio |   |
|                                                     |   | (Dollars                in Thousands) |   |
| As                of September 30, 2007 (unaudited)      |   |                                  |   |                    |   |                           |   |   |   |   |   |   |   |
| Total                capital (to risk weighted assets)   |   | $                                     | 27,066 |                    |   | 11.43                          | %      | $ | 18,940 |   |   | 8.00 | % | $ | 23,675 |   |   | 10.00 | % |
| Tier                I capital (to risk weighted assets)  |   |                                  | 27,009 |                    |   | 11.04                          |   |   | 9,470 |   |   | 4.00 |   |   | 14,205 |   |   | 6.00 |   |
| Tier                I capital (to adjusted total assets) |   |                                  | 27,009 |                    |   | 7.67                           |   |   | 14,088 |   |   | 4.00 |   |   | 17,610 |   |   | 5.00 |   |
|                                                     |   |                                  |   |                    |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As                of June 30, 2007                       |   |                                  |   |                    |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                capital (to risk weighted assets)   |   | $                                     | 25,680 |                    |   | 10.81                          | %      | $ | 19,010 |   |   | 8.00 | % | $ | 23,763 |   |   | 10.00 | % |
| Tier                I capital (to risk weighted assets)  |   |                                  | 25,675 |                    |   | 10.40                          |   |   | 9,505 |   |   | 4.00 |   |   | 14,258 |   |   | 6.00 |   |
| Tier                I capital (to adjusted total assets) |   |                                  | 25,675 |                    |   | 7.23                           |   |   | 14,200 |   |   | 4.00 |   |   | 17,750 |   |   | 5.00 |   |

| Period                                                      |   | Total                Number of Shares Purchased |   | Average                Price Paid per Share |   | Total                Number of Shares Purchased as Part of Publicly Announced Plans or                Programs |   | Maximum                Number of Shares that May Yet Be Purchased Under the Plans or                Programs |   |
|-------------------------------------------------------------|--------|-------------------------------------------------|--------|---------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|--------|
| July                1, 2007 through July 31, 2007           |   |                                            | 0      |                                        |   | N/A                                                                                                            |   |                                                                                                         | N/A    |   |   | 59,359 |   |
| August                1, 2007 through August 31, 2007       |   |                                            | 11,238 |                                        | $      | 15.69                                                                                                          |   |                                                                                                         | 11,238 |   |   | 48,121 |   |
| September                1, 2007 through September 30, 2007 |   |                                            | 1,500  |                                        | $      | 15.10                                                                                                          |   |                                                                                                         | 1,500  |   |   | 46,621 |   |
| Total                                                       |   |                                            | 12,738 |                                        | $      | 15.62                                                                                                          |   |                                                                                                         | 12,738 |   |   |   |   |

----

*Fair      Value Measurements*

*The      Fair Value Option for Financial Assets and Financial Liabilities - Including      an      amendment of FASB Statement No. 115.*

----

----

| 10.1 | *                Deferred Compensation Agreement for George J.                Smith |
|------|-------------------------------------------------------------------------------------|

| 31.1 | Rule                13a-14(a)/15d-14(a) Chief Executive Officer                Certification. |
|------|-----------------------------------------------------------------------------------------------|

| 31.2 | Rule                13a-14(a)/15d-14(a) Chief Financial Officer                Certification. |
|------|-----------------------------------------------------------------------------------------------|

| 32.0 | Section                1350 Certifications. |
|------|---------------------------------------------|

----

----

| Dated:                November 13, 2007 | By:                /s/ Michael H. Head                    |
|-----------------------------------------|-----------------------------------------------------------|
|                                    | Michael                H. Head                            |
|                                    | President and Chief Executive Officer |
|                                    | (principal executive officer)                   |

| Dated: November                13, 2007 | By:                /s/ George J. Smith                           |
|----------------------------------------------|------------------------------------------------------------------|
|                                         | George                J. Smith                                   |
|                                         | Treasurer and Chief Financial Officer        |
|                                         | (principal financial and accounting officer) |

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