----

| Indiana                                                      | 35-2061832                         |
|--------------------------------------------------------------|------------------------------------|
| (State                or other jurisdiction of incorporation | (I.R.S.                Employer    |
| or                organization)                              | Identification                No.) |
|                                                         |                               |
| P.O.                Box 1111, Evansville, Indiana            | 47706                              |
| (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                                                    | 13     |
|                                                                                              |   |
| Part                II Other Information                                                          |   |
| Item                1. Legal Proceedings                                                          | 14     |
| Item                2. Unregistered Sales of Equity Securities and Use of                Proceeds | 14     |
| Item                3. Defaults Upon Senior Securities                                            | 14     |
| Item                4. Submission of Matters to a Vote of Security Holders                        | 14     |
| Item                5. Other Information                                                          | 14     |
| Item                6. Exhibits                                                                   | 14     |

----

| **FIRST                BANCORP OF INDIANA, INC.**                       |
|-------------------------------------------------------------------------|
| **AND****S****UBSIDIARY**                                               |
| **Condensed                Consolidated Balance                Sheets** |

|                                                                              |   | **September                30, 2006** |         | **June                30, 2006** |   |
|-----------------------------------------------------------------------------------|--------|---------------------------------------|--------------|----------------------------------|--------|
|                                                                              |   | (Unaudited)                           |         |                             |   |
| **Assets**                                                                        |   |                                  |         |                             |   |
| Cash                and due from banks                                            |   | $                                     | 1,337,825    |                             | $      | 6,656,560 |   |
| Interest-bearing                demand deposits                                   |   |                                  | 15,955,918   |                             |   | 3,056,142 |   |
| Federal                funds sold                                                 |   |                                  | 0            |                             |   | 25,000 |   |
|     Total                cash and cash equivalents            |   |                                  | 17,293,743   |                             |   | 9,737,702 |   |
| Interest-bearing                deposits                                          |   |                                  | 229,000      |                             |   | 229,000 |   |
| Investment                securities                                              |   |                                  |         |                             |   |   |   |
|   Available                for sale                                     |   |                                  | 55,438,994   |                             |   | 56,128,031 |   |
|   Held                to maturity                                       |   |                                  | 14,241,523   |                             |   | 14,593,296 |   |
|     Total                investment securities                |   |                                  | 69,680,517   |                             |   | 70,721,327 |   |
| Loans                                                                             |   |                                  | 191,970,117  |                             |   | 187,587,271 |   |
| Allowance                for loan losses                                          |   |                                  | (910,861     | )                                |   | (835,736 | ) |
|     Net                loans                                  |   |                                  | 191,059,256  |                             |   | 186,751,535 |   |
| Premises                and equipment                                             |   |                                  | 8,601,180    |                             |   | 8,543,424 |   |
| Goodwill                                                                          |   |                                  | 1,786,297    |                             |   | 1,786,297 |   |
| Core                deposit intangibles                                           |   |                                  | 67,677       |                             |   | 86,690 |   |
| Federal                Home Loan Bank stock                                       |   |                                  | 4,013,800    |                             |   | 4,013,800 |   |
| Other                assets                                                       |   |                                  | 12,162,659   |                             |   | 12,681,440 |   |
|                                                                              |   |                                  |         |                             |   |   |   |
|     Total                assets                               |   | $                                     | 304,894,129  |                             | $      | 294,551,215 |   |
|                                                                              |   |                                  |         |                             |   |   |   |
| **Liabilities**                                                                   |   |                                  |         |                             |   |   |   |
| Deposits                                                                          |   |                                  |         |                             |   |   |   |
| Non-interest                bearing                                               |   | $                                     | 14,050,126   |                             | $      | 15,698,051 |   |
| Interest                bearing                                                   |   |                                  | 186,496,537  |                             |   | 173,643,103 |   |
|     Total                deposits                             |   |                                  | 200,546,663  |                             |   | 189,341,154 |   |
| Long-term                borrowings                                               |   |                                  | 71,000,000   |                             |   | 73,000,000 |   |
| Advances                by borrowers for                                          |   |                                  |         |                             |   |   |   |
|   taxes                and insurance                                    |   |                                  | 831,707      |                             |   | 570,357 |   |
| Other                liabilities                                                  |   |                                  | 3,921,780    |                             |   | 3,433,356 |   |
|     Total                liabilities                          |   |                                  | 276,300,150  |                             |   | 266,344,867 |   |
|                                                                              |   |                                  |         |                             |   |   |   |
| **Stockholders'                Equity**                                           |   |                                  |         |                             |   |   |   |
| Preferred                stock, $.01 par value                                    |   |                                  |         |                             |   |   |   |
|                   Authorized and unissued - 1,000,000 shares            |   |                                  |         |                             |   |   |   |
| Common                stock, $.01 par value                                       |   |                                  |         |                             |   |   |   |
|                   Authorized - 9,000,000 shares                         |   |                                  |         |                             |   |   |   |
|                   Issued - 2,272,400 shares                             |   |                                  | 22,724       |                             |   | 22,724 |   |
| Additional                paid-in capital                                         |   |                                  | 22,387,768   |                             |   | 22,360,757 |   |
| Retained                earnings                                                  |   |                                  | 19,013,217   |                             |   | 19,305,925 |   |
| Accumulated                other comprehensive income / (loss)                    |   |                                  | (994,958     | )                                |   | (1,659,119 | ) |
|                                                                              |   |                                  | 40,428,751   |                             |   | 40,030,287 |   |
|                                                                              |   |                                  |         |                             |   |   |   |
| Less:                                                                             |   |                                  |         |                             |   |   |   |
| Unreleased                employee stock ownership plan                           |   |                                  |         |                             |   |   |   |
| shares                - 64,384 and 68,170 shares                                  |   |                                  | (657,246     | )                                |   | (695,893 | ) |
| Treasury                stock -  719,757 and 717,632 shares             |   |                                  | (11,177,526  | )                                |   | (11,128,046 | ) |
| Total                stockholders' equity                                         |   |                                  | 28,593,979   |                             |   | 28,206,348 |   |
|                                                                              |   |                                  |    |                             |   |    |   |
|     Total                liabilities and stockholders' equity |   | $                                     | 304,894,129  |                             | $      | 294,551,215 |   |

----

| **FIRST                BANCORP OF INDIANA, INC.**                             |
|-------------------------------------------------------------------------------|
| **AND****S****UBSIDIARY**                                                     |
|                                                                          |   |   |   |   |   |
| **Condensed                Consolidated Statements of                Income** |

|                                                             |   | **For                the**            |      |
|------------------------------------------------------------------|--------|---------------------------------------|-----------|
|                                                             |   | **Three                Months Ended** |      |
|                                                             |   | **September                30,**      |      |
|                                                             |   | **2006**                              |      | **2005** |   |
|                                                             |   | *(Unaudited)*                         |      |
|                                                             |   |                                  |      |   |   |
| **Interest                Income**                               |   |                                  |      |   |   |
| Loans                receivable                                  |   | $                                     | 3,124,641 |   | $ | 2,385,741 |   |
| Investment                securities                             |   |                                  | 830,607   |   |   | 746,322 |   |
| Deposits                with financial institutions              |   |                                  | 39,862    |   |   | 72,919 |   |
| Federal                funds sold                                |   |                                  | 12,311    |   |   | 45,053 |   |
| Other                interest and dividend income                |   |                                  | 43,848    |   |   | 37,496 |   |
|     Total                interest income     |   |                                  | 4,051,269 |   |   | 3,287,531 |   |
|                                                             |   |                                  |      |   |   |   |   |
| **Interest                Expense**                              |   |                                  |      |   |   |   |   |
| Deposits                                                         |   |                                  | 1,628,133 |   |   | 1,074,886 |   |
| Borrowings                                                       |   |                                  | 788,943   |   |   | 518,741 |   |
| Other                                                            |   |                                  | 21,758    |   |   | 28,026 |   |
|     Total                interest expense    |   |                                  | 2,438,834 |   |   | 1,621,653 |   |
|                                                             |   |                                  |      |   |   |   |   |
| **Net                Interest Income**                           |   |                                  | 1,612,435 |   |   | 1,665,878 |   |
|                                                             |   |                                  |      |   |   |   |   |
| Provision                for loan losses                         |   |                                  | 95,000    |   |   | 75,000 |   |
| **Net                Interest Income after Provision**           |   |                                  | 1,517,435 |   |   | 1,590,878 |   |
|                                                             |   |                                  |      |   |   |   |   |
| **Noninterest                Income**                            |   |                                  |      |   |   |   |   |
| Increase                in cash surrender values                 |   |                                  |      |   |   |   |   |
|                   of life insurance                    |   |                                  | 49,500    |   |   | 54,000 |   |
| Net                gains on loan sales                           |   |                                  | 67,500    |   |   | 39,410 |   |
| ATM                transaction & POS interchange fees        |   |                                  | 60,211    |   |   | 62,120 |   |
| Service                charges on deposit accounts               |   |                                  | 103,990   |   |   | 112,078 |   |
| Other                income                                      |   |                                  | 219,402   |   |   | 249,406 |   |
|     Total                noninterest income  |   |                                  | 500,603   |   |   | 517,014 |   |
|                                                             |   |                                  |      |   |   |   |   |
| **Noninterest                Expense**                           |   |                                  |      |   |   |   |   |
| Salaries                and employee benefits                    |   |                                  | 926,840   |   |   | 975,668 |   |
| Net                occupancy expense                             |   |                                  | 145,833   |   |   | 79,284 |   |
| Equipment                expense                                 |   |                                  | 113,429   |   |   | 89,413 |   |
| Amortization                of intangible assets                 |   |                                  | 19,012    |   |   | 19,013 |   |
| Professional                fees                                 |   |                                  | 67,902    |   |   | 49,387 |   |
| Advertising                                                      |   |                                  | 67,744    |   |   | 82,399 |   |
| Data                processing fees                              |   |                                  | 98,406    |   |   | 87,086 |   |
| Other                expense                                     |   |                                  | 361,215   |   |   | 340,824 |   |
|     Total                noninterest expense |   |                                  | 1,800,381 |   |   | 1,723,074 |   |
|                                                             |   |                                  |      |   |   |   |   |
| **Income                Before Income Tax**                      |   |                                  | 217,657   |   |   | 384,818 |   |
| Income                tax expense                                |   |                                  | 43,987    |   |   | 138,446 |   |
| **Net                Income**                                    |   | $                                     | 173,670   |   | $ | 246,372 |   |
|                                                             |   |                                  |      |   |   |   |   |
| Basic                earnings per share                          |   | $                                     | 0.12      |   | $ | 0.16 |   |
| Diluted                earnings per share                        |   | $                                     | 0.11      |   | $ | 0.16 |   |
| Dividends                declared per share                      |   | $                                     | 0.30      |   | $ | 0.30 |   |

----

| **FIRST                BANCORP OF INDIANA, INC.**                                             |
|-----------------------------------------------------------------------------------------------|
| **AND****S****UBSIDIARY**                                                                     |
| Condensed              Consolidated Statement of Changes in Stockholders'              Equity |

|                                                         |   |              |         |         |   |           |   | **Accumulated** |         |              |   |            |   |          |         |         |   |
|--------------------------------------------------------------|--------|-------------------|--------------|--------------|--------|----------------|--------|-----------------|--------------|-------------------|--------|-----------------|--------|---------------|--------------|--------------|--------|
|                                                         |   |              |         |         |   | **Additional** |   | **Other**       |         |              |   | **Unallocated** |   |          |         |         |   |
|                                                         |   | **Comprehensive** |         | **Common**   |   | **Paid-in**    |   | **Retained**    |         | **Comprehensive** |   | **ESOP**        |   | **Treasury**  |         |         |   |
|                                                         |   | **Income**        |         | **Stock**    |   | **Capital**    |   | **Earnings**    |         | **Income**        |   | **Shares**      |   | **Shares**    |         | **Total**    |   |
|                                                         |   |              |         |    |   |      |   |       |         |         |   |       |   |     |         |    |   |
| **Balances,                      June 30, 2006**             |   |              |         | $22,724      |   | $22,360,757    |   | $19,305,925     |         | $(1,659,119)      |   | $(695,893)      |   | $(11,128,046) |         | $28,206,348  |   |
|                                                         |   |              |         |         |   |           |   |            |         |              |   |            |   |          |         |         |   |
| Net                      income                              |   | $                 | 173,670      |         |   |           |   |            |         |              |   | 173,670         |   |          |         |         |   |   |   |   |   |   |   | 173,670 |   |
| Other                      comprehensive income,             |   |              |         |         |   |           |   |            |         |              |   |            |   |          |         |         |   |   |   |   |   |   |   |   |   |
| net                      of tax--Unrealized gains            |   |              |         |         |   |           |   |            |         |              |   |            |   |          |         |         |   |   |   |   |   |   |   |   |   |
| on                      securities (unaudited)               |   |              | 664,161      |         |   |           |   |            |         |              |   |            |   |          | 664,161      |         |   |   |   |   |   |   |   | 664,161 |   |
|                                                         |   |              |         |         |   |           |   |            |         |              |   |            |   |          |         |         |   |   |   |   |   |   |   |   |   |
| Cash                      dividends paid $(0.30 per share)   |   |              |         |         |   |           |   |            |         |              |   | (466,378        | )      |          |         |         |   |   |   |   |   |   |   | (466,378 | ) |
| Employee                      Stock Ownership Plan           |   |              |         |         |   |           |   |            |         |              |   |            |   |          |         |         |   |   |   |   |   |   |   |   |   |
|  shares                      allocated                  |   |              |         |         |   |           |   |            | 31,504       |              |   |            |   |          |         |         |   | 38,647 |   |   |   |   |   | 70,152 |   |
| Treasury                      shares purchased               |   |              |         |         |   |           |   |            |         |              |   |            |   |          |         |         |   |   |   |   | (82,073 | ) |   | (82,073 | ) |
| Options                      exercised                       |   |              |    |         |   |           |   |            | (4,493       | )                 |   |            |   |          |         |         |   |   |   |   | 32,593 |   |   | 28,099 |   |
| Comprehensive                      income (unaudited)        |   | $                 | 837,831      |         |   |           |   |            |         |              |   |            |   |          |         |         |   |   |   |   |   |   |   |   |   |
|                                                         |   |              |         |         |   |      |   |            |    |              |   |       |   |          |    |         |   |    |   |   |    |   |   |    |   |
| **Balances,                      Sept 30, 2006 (unaudited)** |   |              |         |         | $      | 22,724         |   | $               | 22,387,768   |              | $      | 19,013,217      |   | $             | (994,958     | )            | $      | (657,246 | ) | $ | (11,177,526 | ) | $ | 28,593,979 |   |

| See                notes to unaudited condensed consolidated financial                statements. |   |   |   |   |   |   |   |   |
|---------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **FIRST                BANCORP OF INDIANA, INC.**                                 |
|-----------------------------------------------------------------------------------|
| **AND****S****UBSIDIARY**                                                         |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |
| **Condensed                Consolidated Statements of Cash                Flows** |

|                                                                       |   |  **Year                  to Date**  |       |
|----------------------------------------------------------------------------|--------|------------------------------------------|------------|
|                                                                       |   |  **September                  30,** |       |
|                                                                       |   |  **2006**                           |       | **2005** |   |
|                                                                       |   |                                |       |   |   |
|                                                                       |   |  *(Unaudited)*                      |       |
|                                                                       |   |                                |       |   |   |
| **Net                  Cash Provided by Operating Activities**             |   | $                                        | 1,021,240  |   | $ | 1,367,051 |   |
|                                                                       |   |                                     |       |   |   |   |   |
| **Investing                  Activities**                                  |   |                                     |       |   |   |   |   |
| Net                  change in interest-bearing deposits                   |   |                                     | 0          |   |   | (597,968 | ) |
| Proceeds                  from maturities of securities available for sale |   |                                     | 2,162,198  |   |   | 5,066,370 |   |
| Proceeds                  from maturities of securities held to maturity   |   |                                     | 345,212    |   |   | 883,317 |   |
| Purchases                  of securities available for sale                |   |                                     | (425,718   | ) |   | (8,319,555 | ) |
| Purchases                  of securities held to maturity                  |   |                                     | 0          |   |   | (6,963,133 | ) |
| Net                  change in loans                                       |   |                                     | (4,331,587 | ) |   | (16,004,331 | ) |
| Purchases                  of premises and equipment                       |   |                                     | (161,811   | ) |   | (587,985 | ) |
| Purchase                  FHLB stock                                       |   |                                     | 0          |   |   | (50,000 | ) |
| Net                  cash provided (used) by investing activities          |   |                                     | (2,411,706 | ) |   | (26,573,285 | ) |
|                                                                       |   |                                     |       |   |   |   |   |
| **Financing                  Activities**                                  |   |                                     |       |   |   |   |   |
| Net                  change in                                             |   |                                     |       |   |   |   |   |
| Non-interest                  bearing, interest-bearing demand             |   |                                     |       |   |   |   |   |
|  and                  savings deposits                                |   |                                     | (1,533,885 | ) |   | (1,519,839 | ) |
| Certificates                  of deposit                                   |   |                                     | 12,739,394 |   |   | (13,053,484 | ) |
| Proceeds                  from issuance of long-term borrowings            |   |                                     | 0          |   |   | 20,000,000 |   |
| Repayments                  of long-term borrowings                        |   |                                     | (2,000,000 | ) |   | 0 |   |
| Net                  issuance of short-term borrowings                     |   |                                     | 0          |   |   | 927,501 |   |
| Advances                  by borrowers for taxes and insurance             |   |                                     | 261,350    |   |   | 296,442 |   |
| Dividends                  paid                                            |   |                                     | (466,378   | ) |   | (479,918 | ) |
| Purchase                  treasury shares                                  |   |                                     | (82,073    | ) |   | (534,994 | ) |
| Options                  exercised                                         |   |                                     | 28,099     |   |   | 180,496 |   |
| Net                  cash provided by financing activities                 |   |                                     | 8,946,507  |   |   | 5,816,204 |   |
|                                                                       |   |                                     |       |   |   |   |   |
| **Net                  Change in Cash and Cash Equivalents**               |   |                                     | 7,556,041  |   |   | (19,390,030 | ) |
|                                                                       |   |                                     |       |   |   |   |   |
| **Cash                  and Cash Equivalents, Beginning of Period**        |   |                                     | 9,737,702  |   |   | 35,335,864 |   |
|                                                                       |   |                                     |       |   |   |   |   |
| **Cash                  and Cash Equivalents, End of Period**              |   | $                                        | 17,293,743 |   | $ | 15,945,834 |   |
|                                                                       |   |                                     |       |   |   |   |   |
| **Additional                  Cash Flow Information**                      |   |                                     |       |   |   |   |   |
| Interest                  paid                                             |   | $                                        | 1,966,372  |   | $ | 1,324,707 |   |
| Income                  tax paid                                           |   |                                     | 0          |   |   | 0 |   |

----

|                                                                          |   | September                30,2006 |       | June                30,2006 |   |
|-------------------------------------------------------------------------------|--------|----------------------------------|------------|-----------------------------|--------|
|                                                                          |   | (unaudited)                      |       |                        |   |
| Federal                Home Loan Bank putable advances                        |   |                             |       |                        |   |
|                   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 2.650%, due in March 2008           |   |                             |       |                        |   |   |   |
|                   Fixed rate of 3.268%, due in January 2015         |   |                             | 8,000,000  |                        |   | 8,000,000 |   |
|                   Fixed rate of 3.520%, due in May 2015             |   |                             | 5,000,000  |                        |   | 5,000,000 |   |
|                   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 4.180%, due in March 2016           |   |                             | 15,000,000 |                        |   | 15,000,000 |   |
|                                                                          |   |                             |       |                        |   |   |   |
| Federal                Home Loan Bank bullet advances                         |   |                             |       |                        |   |   |   |
|                   Fixed rate of 3.050%, due in July 2006            |   |                             |       |                        |   | 2,000,000 |   |
|                   Fixed rate of 5.040%, due in March 2007           |   |                             | 2,000,000  |                        |   | 2,000,000 |   |
|                   Fixed rate of 5.240%, due in May 2007             |   |                             | 1,000,000  |                        |   | 1,000,000 |   |
|                                                                          |   |                             |       |                        |   |   |   |
|                     Total Federal Home Loan Bank advances |   | $                                | 71,000,000 |                        | $      | 73,000,000 |   |
|                                                                          |   |                             |       |                        |   |   |   |
|                     Weighted average rate                 |   |                             | 4.285      | %                           |   | 4.238 | % |

----

|                                                                           |   | 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 |   |

|                                                                           |   | Quarter                Ended September 30, 2005 |    |
|--------------------------------------------------------------------------------|--------|-------------------------------------------------|---------|
|                                                                           |   | Income                                          |    | Weighted-Average                Shares |   | Per                Share Amount |   |
|                                                                           |   |                                            |    |   |   |   |   |
| Net                income                                                      |   | $                                               | 246,372 |   |   |   |   |   |   |   |
|                                                                           |   |                                            |    |   |   |   |   |   |   |   |
| Basic                earnings per share                                        |   |                                            |    |   |   |   |   |   |   |   |
| Income                available to common stockholders                         |   | $                                               | 246,372 |   |   | 1,511,742 |   | $ | 0.16 |   |
|                                                                           |   |                                            |    |   |   |   |   |   |   |   |
| Effect                of dilutive securities                                   |   |                                            |    |   |   |   |   |   |   |   |
| Stock                options                                                   |   |                                            | — |   |   | 52,677 |   |   |   |   |
|                                                                           |   |                                            |    |   |   |   |   |   |   |   |
| Diluted                earnings per share                                      |   |                                            |    |   |   |   |   |   |   |   |
| Income                available to common stockholders and assumed conversions |   | $                                               | 246,372 |   |   | 1,564,419 |   | $ | 0.16 |   |

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|                                                                  |   | September                30, 2006(unaudited) |      | June                30,2006 |   |
|-----------------------------------------------------------------------|--------|----------------------------------------------|-----------|-----------------------------|--------|
|                                                                  |   |                                         |      |                        |   |
| Loans                accounted for on a nonaccrual basis              |   | $                                            | 1,015,000 |                        | $      | 757,000 |   |
| Accruing                loans past due 90 days or more                |   |                                         | --        |                        |   | -- |   |
| Nonperforming                loans                                    |   |                                         | 1,015,000 |                        |   | 757,000 |   |
| Real                estate owned (net)                                |   |                                         | --        |                        |   | 63,000 |   |
| Other                repossessed assets                               |   |                                         | 6,000     |                        |   | 5,000 |   |
| Total                nonperforming assets                             |   | $                                            | 1,021,000 |                        | $      | 825,000 |   |
|                                                                  |   |                                         |      |                        |   |   |   |
| Total                loans delinquent 90 days or more to total loans  |   |                                         | 0.53      | %                           |   | 0.40 | % |
| Total                loans delinquent 90 days or more to total assets |   |                                         | 0.33      | %                           |   | 0.26 | % |
| Total                nonperforming assets to total assets             |   |                                         | 0.33      | %                           |   | 0.28 | % |

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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, 2006 (unaudited)                  |   |                                  |   |                              |   |                                |   |   |   |   |   |   |   |
|   Total                capital (to risk weighted assets)   |   | $                                     | 25,917 |                              |   | 12.14                               | %      | $ | 17,076 |   |   | 8.00 | % | $ | 21,345 |   |   | 10.00 | % |
|   Tier                I capital (to risk weighted assets)  |   |                                  | 26,203 |                              |   | 11.75                               |   |   | 8,538 |   |   | 4.00 |   |   | 12,807 |   |   | 6.00 |   |
|   Tier                I capital (to adjusted total assets) |   |                                  | 26,203 |                              |   | 8.64                                |   |   | 12,132 |   |   | 4.00 |   |   | 15,165 |   |   | 5.00 |   |
|                                                                 |   |                                  |   |                              |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As                of June 30, 2006                                   |   |                                  |   |                              |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Total                capital (to risk weighted assets)   |   | $                                     | 25,930 |                              |   | 12.66                               | %      | $ | 16,387 |   |   | 8.00 | % |   | 20,483 |   |   | 10.00 | % |
|   Tier                I capital (to risk weighted assets)  |   |                                  | 26,407 |                              |   | 12.28                               |   |   | 8,193 |   |   | 4.00 |   |   | 12,290 |   |   | 6.00 |   |
|   Tier                I capital (to adjusted total assets) |   |                                  | 26,407 |                              |   | 8.99                                |   |   | 11,743 |   |   | 4.00 |   |   | 14,679 |   |   | 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, 2006 through July 31, 2006           | 1,225                                           | $19.65                                      | 1,225                                                                                                          | 12,533                                                                                                       |
|  August                1, 2006 through August 31, 2006       | 3,000                                           | $19.25                                      | 3,000                                                                                                          | 86,533                                                                                                       |
|  September                1, 2006 through September 30, 2006 | 0                                               | N/A                                         | N/A                                                                                                            | 86,533                                                                                                       |
|  Total                                                       | 4,225                                           | $19.37                                      | 4,225                                                                                                          |                                                                                                         |

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| 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. |
|------|---------------------------------------------|

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| Dated:                November 14, 2006 | By:                /s/ Michael H. Head                      |
|-----------------------------------------|-------------------------------------------------------------|
|                                    | Michael                H. Head                              |
|                                    | President                and Chief Executive Officer        |
|                                    | (principal                executive officer)                |
|                                    |                                                        |
|                                    |                                                        |
|                                    |                                                        |
| Dated:                November 14, 2006 | By:                /s/ George J. Smith                      |
|                                    | George                J. Smith                              |
|                                    | Treasurer                and Chief Financial Officer        |
|                                    | (principal                financial and accounting officer) |

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