----

| Indiana                                                      |   | 35-2061832                         |
|--------------------------------------------------------------|--------|------------------------------------|
| (State                or other jurisdiction of incorporation |   | (I.R.S.                Employer    |
| or                organization)                              |   | 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   | 10     |
| Item                3. Controls and Procedures                                                    | 16     |
|                                                                                              |   |
| Part                II Other Information                                                          |   |
| Item                1. Legal Proceedings                                                          | 17     |
| Item                2. Unregistered Sales of Equity Securities and Use of                Proceeds | 17     |
| Item                3. Defaults Upon Senior Securities                                            | 17     |
| Item                4. Submission of Matters to a Vote of Security Holders                        | 17     |
| Item                5. Other Information                                                          | 17     |
| Item                6. Exhibits                                                                   | 17     |
|                                                                                              |   |
| Signatures                                                                                        | 18     |

----

**FIRST      BANCORP OF INDIANA, INC.**

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

**Condensed      Consolidated Balance Sheets**

|                                                                                                               |   | **March 31, 2008** |         | **June 30, 2007** |   |
|--------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------------|-----------------------------|--------|
|                                                                                                               |   | (Unaudited)                  |         |                        |   |
| **Assets**                                                                                                         |   |                         |         |                        |   |   |   |
| Cash                and due from banks                                                                             |   | $                            | 5,590,796    |                        | $      | 7,455,076 |   |
| Interest-bearing                demand deposits                                                                    |   |                         | 2,948,175    |                        |   | 7,395,910 |   |
| Federal                funds sold                                                                                  |   |                         | 1,179,365    |                        |   | 0 |   |
| Total                cash and cash equivalents                                                                     |   |                         | 9,718,336    |                        |   | 14,850,986 |   |
| Interest-bearing                deposits                                                                           |   |                         | 494,347      |                        |   | 1,616,000 |   |
| Investment                securities                                                                               |   |                         |         |                        |   |   |   |
| Available                for sale                                                                                  |   |                         | 82,340,018   |                        |   | 65,120,545 |   |
| Held                to maturity                                                                                    |   |                         | 14,026,444   |                        |   | 14,976,789 |   |
| Total                investment securities                                                                         |   |                         | 96,366,462   |                        |   | 80,097,334 |   |
| Loans                                                                                                              |   |                         | 232,296,997  |                        |   | 234,301,694 |   |
| Allowance                for loan losses                                                                           |   |                         | (1,037,657   | )                           |   | (1,064,713 | ) |
| Net                loans                                                                                           |   |                         | 231,259,340  |                        |   | 233,236,981 |   |
| Premises                and equipment                                                                              |   |                         | 9,108,170    |                        |   | 9,322,801 |   |
| Goodwill                                                                                                           |   |                         | 6,229,152    |                        |   | 6,229,152 |   |
| Core                deposit intangibles                                                                            |   |                         | 800,850      |                        |   | 894,431 |   |
| Federal                Home Loan Bank stock                                                                        |   |                         | 4,564,700    |                        |   | 4,564,700 |   |
| Other                assets                                                                                        |   |                         | 12,126,194   |                        |   | 12,179,690 |   |
|                                                                                                               |   |                         |         |                        |   |   |   |
| Total                assets                                                                                        |   | $                            | 370,667,551  |                        | $      | 362,992,075 |   |
|                                                                                                               |   |                         |         |                        |   |   |   |
| **Liabilities**                                                                                                    |   |                         |         |                        |   |   |   |
| Deposits                                                                                                           |   |                         |         |                        |   |   |   |
| Non-interest                bearing                                                                                |   | $                            | 9,633,505    |                        | $      | 11,503,688 |   |
| Interest                bearing                                                                                    |   |                         | 218,501,400  |                        |   | 239,730,019 |   |
| Total                deposits                                                                                      |   |                         | 228,134,905  |                        |   | 251,233,707 |   |
| Borrowings                                                                                                         |   |                         | 101,498,539  |                        |   | 72,495,874 |   |
| Advances                by borrowers for taxes and insurance                                                       |   |                         | 935,049      |                        |   | 695,051 |   |
| Other                liabilities                                                                                   |   |                         | 5,923,820    |                        |   | 4,349,605 |   |
| Total                liabilities                                                                                   |   |                         | 336,492,313  |                        |   | 328,774,237 |   |
|                                                                                                               |   |                         |         |                        |   |   |   |
| **Commitments                and Contingent Liabilities**                                                          |   |                         | -            |                        |   | - |   |
|                                                                                                               |   |                         |         |                        |   |   |   |
| **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 - 2,566,346                shares |   |                         | 25,663       |                        |   | 25,663 |   |
| Additional                paid-in capital                                                                          |   |                         | 27,956,557   |                        |   | 27,959,954 |   |
| Retained                earnings                                                                                   |   |                         | 18,492,235   |                        |   | 18,801,944 |   |
| Accumulated                other comprehensive loss                                                                |   |                         | (282,317     | )                           |   | (683,548 | ) |
|                                                                                                               |   |                         | 46,192,138   |                        |   | 46,104,013 |   |
| Less:                                                                                                              |   |                         |         |                        |   |   |   |
| Unreleased                employee stock ownership plan shares - 41,656 and 53,020                shares           |   |                         | (425,236     | )                           |   | (541,241 | ) |
| Treasury                stock - 742,518 and 725,445 shares                                                         |   |                         | (11,591,664  | )                           |   | (11,344,934 | ) |
|                                                                                                               |   |                         |         |                        |   |   |   |
| Total                stockholders' equity                                                                          |   |                         | 34,175,238   |                        |   | 34,217,838 |   |
|                                                                                                               |   |                         |    |                        |   |    |   |
| Total                liabilities and stockholders' equity                                                          |   | $                            | 370,667,551  |                        | $      | 362,992,075 |   |

----

**FIRST      BANCORP OF INDIANA, INC.**

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

**Condensed      Consolidated Statements of Income**

|                                                               |   | **For the**                 |      | **For the**                |   |
|--------------------------------------------------------------------|--------|----------------------------------|-----------|---------------------------------|--------|
|                                                               |   | **Three Months Ended** |      | **Nine Months Ended** |   |
|                                                               |   | **March 31,**               |      | **March 31,**              |   |
|                                                               |   | **2008**                         |      | **2007**                        |   | **2008** |   | **2007** |   |
|                                                               |   | *(Unaudited)*                    |      | *(Unaudited)*                   |   |
|                                                               |   |                             |      |                            |   |   |   |   |   |
| **Interest                Income**                                 |   |                             |      |                            |   |   |   |   |   |   |   |   |   |
| Loans                receivable                                    |   | $                                | 3,927,379 |                            | $      | 3,882,760 |   | $ | 12,019,213 |   | $ | 10,920,208 |   |
| Investment                securities                               |   |                             | 1,210,520 |                            |   | 1,025,141 |   |   | 3,281,979 |   |   | 2,822,948 |   |
| Deposits                with financial institutions                |   |                             | 78,453    |                            |   | 119,110 |   |   | 315,857 |   |   | 281,401 |   |
| Federal                funds sold                                  |   |                             | 1,019     |                            |   | 0 |   |   | 1,019 |   |   | 12,311 |   |
| Other                interest and dividend income                  |   |                             | 58,698    |                            |   | 58,375 |   |   | 161,034 |   |   | 157,713 |   |
| Total                interest income                               |   |                             | 5,276,069 |                            |   | 5,085,386 |   |   | 15,779,102 |   |   | 14,194,581 |   |
|                                                               |   |                             |      |                            |   |   |   |   |   |   |   |   |   |
| **Interest                Expense**                                |   |                             |      |                            |   |   |   |   |   |   |   |   |   |
| Deposits                                                           |   |                             | 2,095,920 |                            |   | 2,365,032 |   |   | 6,848,969 |   |   | 6,200,739 |   |
| Borrowings                                                         |   |                             | 1,130,935 |                            |   | 850,704 |   |   | 3,102,349 |   |   | 2,507,863 |   |
| Total                interest expense                              |   |                             | 3,226,855 |                            |   | 3,215,736 |   |   | 9,951,318 |   |   | 8,708,602 |   |
|                                                               |   |                             |      |                            |   |   |   |   |   |   |   |   |   |
| **Net                Interest Income**                             |   |                             | 2,049,214 |                            |   | 1,869,650 |   |   | 5,827,784 |   |   | 5,485,979 |   |
|                                                               |   |                             |      |                            |   |   |   |   |   |   |   |   |   |
| Provision                for loan losses                           |   |                             | 135,000   |                            |   | 105,000 |   |   | 330,000 |   |   | 300,000 |   |
| **Net                Interest Income after Provision**             |   |                             | 1,914,214 |                            |   | 1,764,650 |   |   | 5,497,784 |   |   | 5,185,979 |   |
| **Noninterest                Income**                              |   |                             |      |                            |   |   |   |   |   |   |   |   |   |
| Increase                in cash surrender values of life insurance |   |                             | 50,250    |                            |   | 53,372 |   |   | 150,363 |   |   | 152,372 |   |
| Net                gains on loan sales                             |   |                             | 54,156    |                            |   | 22,588 |   |   | 129,466 |   |   | 114,428 |   |
| ATM                transaction & POS interchange fees          |   |                             | 83,355    |                            |   | 62,437 |   |   | 238,913 |   |   | 189,214 |   |
| Service                charges on deposit accounts                 |   |                             | 193,530   |                            |   | 106,261 |   |   | 595,411 |   |   | 319,039 |   |
| Other                income                                        |   |                             | 145,320   |                            |   | 246,946 |   |   | 508,633 |   |   | 676,117 |   |
| Total                noninterest income                            |   |                             | 526,611   |                            |   | 491,604 |   |   | 1,622,786 |   |   | 1,451,170 |   |
|                                                               |   |                             |      |                            |   |   |   |   |   |   |   |   |   |
| **Noninterest                Expense**                             |   |                             |      |                            |   |   |   |   |   |   |   |   |   |
| Salaries                and employee benefits                      |   |                             | 1,055,808 |                            |   | 1,091,242 |   |   | 3,135,293 |   |   | 3,077,196 |   |
| Net                occupancy expense                               |   |                             | 180,004   |                            |   | 177,160 |   |   | 542,596 |   |   | 493,480 |   |
| Equipment                expense                                   |   |                             | 117,606   |                            |   | 105,714 |   |   | 359,586 |   |   | 319,727 |   |
| Amortization                of intangible assets                   |   |                             | 23,554    |                            |   | 37,305 |   |   | 93,581 |   |   | 97,130 |   |
| Professional                fees                                   |   |                             | 44,347    |                            |   | 52,169 |   |   | 151,459 |   |   | 161,423 |   |
| Advertising                                                        |   |                             | 52,585    |                            |   | 60,954 |   |   | 178,203 |   |   | 182,612 |   |
| Data                processing fees                                |   |                             | 127,909   |                            |   | 118,203 |   |   | 386,122 |   |   | 328,450 |   |
| Other                expense                                       |   |                             | 371,052   |                            |   | 374,884 |   |   | 1,265,703 |   |   | 1,217,009 |   |
| Total                noninterest expense                           |   |                             | 1,972,865 |                            |   | 2,017,631 |   |   | 6,112,543 |   |   | 5,877,027 |   |
|                                                               |   |                             |      |                            |   |   |   |   |   |   |   |   |   |
| **Income                Before Income Tax**                        |   |                             | 467,960   |                            |   | 238,623 |   |   | 1,008,027 |   |   | 760,122 |   |
| Income                tax expense                                  |   |                             | 113,081   |                            |   | 48,633 |   |   | 216,726 |   |   | 168,908 |   |
| **Net                Income**                                      |   | $                                | 354,879   |                            | $      | 189,990 |   | $ | 791,301 |   | $ | 591,214 |   |
|                                                               |   |                             |      |                            |   |   |   |   |   |   |   |   |   |
| Basic                earnings per share                            |   | $                                | 0.20      |                            | $      | 0.11 |   | $ | 0.44 |   | $ | 0.35 |   |
| Diluted                earnings per share                          |   | $                                | 0.20      |                            | $      | 0.10 |   | $ | 0.44 |   | $ | 0.34 |   |
| Dividends                declared per share                        |   | $                                | 0.30      |                            | $      | 0.30 |   | $ | 0.60 |   | $ | 0.60 |   |

----

**FIRST      BANCORP OF INDIANA, INC.**

**AND      SUBSIDIARY**

**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 / (Loss)** |   | **Shares**      |   | **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 / (loss)                                                                                               |   | $                 | 188,610 |       |   |           |   |         |         |                          |   | 188,610         |   |         |         |      |   |   |   |   |   |   |   | 188,610 |   |
| Other                  comprehensive income, net of tax—Unrealized gains (losses) 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 |   |
|                                                                                                                               |   |              |    |       |   |           |   |         |         |                          |   |            |   |         |         |      |   |   |   |   |   |   |   |   |   |
| Net                  income / (loss)                                                                                               |   | $                 | 247,813 |       |   |           |   |         |         |                          | $      | 247,813         |   |         |         |      |   |   |   |   |   |   | $ | 247,813 |   |
| Other                  comprehensive income, net of tax—Unrealized gains (losses) on securities                  (unaudited) |   |              | 155,795 |       |   |           |   |         |         |                          |   |            |   | $            | 155,795      |      |   |   |   |   |   |   |   | 155,795 |   |
|                                                                                                                               |   |              |    |       |   |           |   |         |         |                          |   |            |   |         |         |      |   |   |   |   |   |   |   |   |   |
| Employee                  Stock Ownership Plan shares allocated                                                                    |   |              |    |       |   |           |   | $            | 14,912       |                          |   |            |   |         |         |      | $      | 38,709 |   |   |   |   |   | 53,621 |   |
| Treasury                  shares purchased                                                                                         |   |              |    |       |   |           |   |         |         |                          |   |            |   |         |         |      |   |   |   | $ | (123,748 | ) |   | (123,748 | ) |
| Options                  exercised                                                                                                 |   |              |    |       |   |           |   |         | (16,272      | )                             |   |            |   |         |         |      |   |   |   |   | 39,085 |   |   | 22,813 |   |
| Comprehensive                  income (unaudited)                                                                                  |   | $                 | 403,608 |       |   |           |   |         |         |                          |   |            |   |         |         |      |   |   |   |   |   |   |   |   |   |
|                                                                                                                               |   |              |    |       |   |      |   |         |    |                          |   |       |   |         |    |      |   |    |   |   |    |   |   |    |   |
| **Balances,                  December 31, 2007**                                                                                   |   |              |    |       | $      | 25,663         |   | $            | 27,949,977   |                          | $      | 18,685,251      |   | $            | (228,457     | )         | $      | (463,884 | ) | $ | (11,561,094 | ) | $ | 34,407,456 |   |
|                                                                                                                               |   |              |    |       |   |           |   |         |         |                          |   |            |   |         |         |      |   |   |   |   |   |   |   |   |   |
| Net                  income / (loss)                                                                                               |   | $                 | 354,879 |       |   |           |   |         |         |                          | $      | 354,879         |   |         |         |      |   |   |   |   |   |   | $ | 354,879 |   |
| Other                  comprehensive income, net of tax—Unrealized gains (losses) on securities                  (unaudited) |   |              | (53,860 | )          |   |           |   |         |         |                          |   |            |   | $            | (53,860      | )         |   |   |   |   |   |   |   | (53,860 | ) |
|                                                                                                                               |   |              |    |       |   |           |   |         |         |                          |   |            |   |         |         |      |   |   |   |   |   |   |   |   |   |
| Cash                  dividends paid ($0.30 per share)                                                                             |   |              |    |       |   |           |   |         |         |                          |   | (547,895        | )      |         |         |      |   |   |   |   |   |   |   | (547,895 | ) |
| Employee                  Stock Ownership Plan shares allocated                                                                    |   |              |    |       |   |           |   | $            | 6,580        |                          |   |            |   |         |         |      | $      | 38,648 |   |   |   |   |   | 45,228 |   |
| Treasury                  shares purchased                                                                                         |   |              |    |       |   |           |   |         |         |                          |   |            |   |         |         |      |   |   |   | $ | (30,570 | ) |   | (30,570 | ) |
| Comprehensive                  income (unaudited)                                                                                  |   | $                 | 301,019 |       |   |           |   |         |         |                          |   |            |   |         |         |      |   |   |   |   |   |   |   |   |   |
|                                                                                                                               |   |              |    |       |   |      |   |         |    |                          |   |       |   |         |    |      |   |    |   |   |    |   |   |      |   |
| **Balances,                  March 31, 2008**                                                                                      |   |              |    |       | $      | 25,663         |   | $            | 27,956,557   |                          | $      | 18,492,235      |   | $            | (282,317     | )         | $      | (425,236 | ) | $ | (11,591,664 | ) | $ | 34,175,238 |   |

----

**FIRST      BANCORP OF INDIANA, INC.**

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

**Condensed      Consolidated Statements of Cash Flows**

|                                                                              |   |  **Year                to Date** |                     |
|-----------------------------------------------------------------------------------|--------|---------------------------------------|--------------------------|
|                                                                              |   |  **March                31,**    |                     |
|                                                                              |   |  **2008**                        |                     | **2007** |   |
|                                                                              |   |  *(Unaudited)*                   |                     |
| **Net                Cash Provided by Operating Activities**                      |   | $                                     | 2,790,747                |   | $ | 1,562,727 |   |
|                                                                              |   |                                  |                     |   |   |   |   |
| **Investing                Activities**                                           |   |                                  |                     |   |   |   |   |
| Net                change in interest-bearing deposits                            |   |                                  | 1,121,653                |   |   | 3,162,783 |   |
| Proceeds                from maturities of securities available for sale          |   |                                  | 30,858,340               |   |   | 6,066,513 |   |
| Proceeds                from maturities of securities held to maturity            |   |                                  | 932,148                  |   |   | 1,102,385 |   |
| Purchases                of securities available for sale                         |   |                                  | (47,331,041              | ) |   | (9,036,951 | ) |
| Net                change in loans                                                |   |                                  | 1,887,494                |   |   | (4,757,364 | ) |
| Purchases                of premises and equipment                                |   |                                  | (160,967                 | ) |   | (580,031 | ) |
| Proceeds                from sales of premises and equipment                      |   |                                  | 20,530                   |   |   | 1,676 |   |
| Redemption                of FHLB stock                                           |   |                                  | 0                        |   |   | 61,600 |   |
| Acquisition                of bank, net of cash received                          |   |                                  | 0                        |   |   | (2,024,394 | ) |
|                                                                              |   |                                  |      |   |   |      |   |
| Net                cash used by investing activities                              |   |                                  | (12,671,843              | ) |   | (6,003,783 | ) |
|                                                                              |   |                                  |                     |   |   |   |   |
| **Financing                Activities**                                           |   |                                  |                     |   |   |   |   |
| Net                change in                                                      |   |                                  |                     |   |   |   |   |
| Non-interest                bearing, interest-bearing demand and savings deposits |   |                                  | 4,754,617                |   |   | 1,717,810 |   |
| Certificates                of deposit                                            |   |                                  | (27,853,419              | ) |   | 13,383,729 |   |
| Proceeds                from issuance of long-term borrowings                     |   |                                  | 38,155,000               |   |   | 8,000,000 |   |
| Repayments                of long-term borrowings                                 |   |                                  | (11,000,000              | ) |   | (15,000,000 | ) |
| Net                issuance of short-term borrowings                              |   |                                  | 1,844,613                |   |   | 0 |   |
| Advances                by borrowers for taxes and insurance                      |   |                                  | 239,998                  |   |   | 345,298 |   |
| Dividends                paid                                                     |   |                                  | (1,101,011               | ) |   | (1,022,258 | ) |
| Purchase                of treasury shares                                        |   |                                  | (353,876                 | ) |   | (584,478 | ) |
| Options                exercised                                                  |   |                                  | 62,524                   |   |   | 187,313 |   |
|                                                                              |   |                                  |           |   |   |        |   |
| Net                cash provided by financing activities                          |   |                                  | 4,748,446                |   |   | 7,027,414 |   |
|                                                                              |   |                                  |                     |   |   |   |   |
| **Net                Change in Cash and Cash Equivalents**                        |   |                                  | (5,132,650               | ) |   | 2,586,358 |   |
|                                                                              |   |                                  |                     |   |   |   |   |
| **Cash                and Cash Equivalents, Beginning of Period**                 |   |                                  | 14,850,986               |   |   | 9,737,702 |   |
|                                                                              |   |                                  |                     |   |   |   |   |
| **Cash                and Cash Equivalents, End of Period**                       |   | $                                     | 9,718,336                |   | $ | 12,324,060 |   |
|                                                                              |   |                                  |                     |   |   |   |   |
| **Additional                Cash Flow Information**                               |   |                                  |                     |   |   |   |   |
| Interest                paid                                                      |   | $                                     | 9,134,888                |   | $ | 7,782,614 |   |
| Income                tax paid                                                    |   |                                  | 30,000                   |   |   | 175,000 |   |

----

|                                                                           |   | March 31, 2008 |                           | 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                      |                    |   |   |   |
| Fixed                rate of 3.320%, due in December 2017                      |   |                     | 5,000,000                      |                    |   |   |   |
| Fixed                rate of 3.490%, due in December 2017                      |   |                     | 5,000,000                      |                    |   |   |   |
| Fixed                rate of 3.430%, due in December 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 |   |
|                                                                           |   |                     |                           |                    |   |   |   |
| Overnight                line of credit advance                                |   |                     | 1,844,613                      |                    |   |   |   |
|                                                                           |   |                     |                           |                    |   |   |   |
| Total                Federal Home Loan Bank advances                           |   |                     | 88,344,613                     |                    |   | 64,500,000 |   |
|                                                                           |   |                     |                           |                    |   |   |   |
| Reverse                repurchase agreements                                   |   |                     |                           |                    |   |   |   |
| Fixed                rate of 4.2850%, due in January 2017                      |   |                     |                           |                    |   | 8,000,000 |   |
| Fixed                rate of 4.460%, due in July 2017                          |   |                     | 8,000,000                      |                    |   |   |   |
|                                                                           |   |                     |                           |                    |   |   |   |
| Junior                subordinated debentures, 6.905% rate, due September 2037 |   |                     | 5,155,000                      |                    |   |   |   |
|                                                                           |   |                     |                           |                    |   |   |   |
| Discount                on purchased borrowings                                |   |                     | (1,074                         | )                       |   | (4,126 | ) |
|                                                                           |   |                     |       |                    |   |       |   |
| Total                borrowings                                                |   | $                        | 101,498,539                    |                    | $      | 72,495,874 |   |
|                                                                           |   |                     |                           |                    |   |   |   |
| Weighted                average rate                                           |   |                     | 4.314                          | %                  |   | 4.611 | % |

----

|                                                                           |   | Quarter Ended March 31, 2008 |    |
|--------------------------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                                           |   | Income                                           |    | Weighted-Average Shares |   | Per Share Amount |   |
|                                                                           |   |                                             |    |   |   |   |   |
| Net                income                                                      |   | $                                                | 354,879 |   |   |   |   |   |   |   |
|                                                                           |   |                                             |    |   |   |   |   |   |   |   |
| Basic                earnings per share                                        |   |                                             |    |   |   |   |   |   |   |   |
| Income                available to common stockholders                         |   | $                                                | 354,879 |   |   | 1,781,050 |   | $ | 0.20 |   |
|                                                                           |   |                                             |    |   |   |   |   |   |   |   |
| Effect                of dilutive securities                                   |   |                                             |    |   |   |   |   |   |   |   |
| Stock                options                                                   |   |                                             | — |   |   | 7,652 |   |   |   |   |
|                                                                           |   |                                             |    |   |   |   |   |   |   |   |
| Diluted                earnings per share                                      |   |                                             |    |   |   |   |   |   |   |   |
| Income                available to common stockholders and assumed conversions |   | $                                                | 354,879 |   |   | 1,788,702 |   | $ | 0.20 |   |

|                                                                           |   | Quarter Ended March 31, 2007 |    |
|--------------------------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                                           |   | Income                                           |    | Weighted-Average Shares |   | Per Share Amount |   |
|                                                                           |   |                                             |    |   |   |   |   |
| Net                income                                                      |   | $                                                | 189,990 |   |   |   |   |   |   |   |
|                                                                           |   |                                             |    |   |   |   |   |   |   |   |
| Basic                earnings per share                                        |   |                                             |    |   |   |   |   |   |   |   |
| Income                available to common stockholders                         |   | $                                                | 189,990 |   | $ | 1,784,571 |   | $ | 0.11 |   |
|                                                                           |   |                                             |    |   |   |   |   |   |   |   |
| Effect                of dilutive securities                                   |   |                                             |    |   |   |   |   |   |   |   |
| Stock                options                                                   |   |                                             | — |   |   | 26,089 |   |   |   |   |
|                                                                           |   |                                             |    |   |   |   |   |   |   |   |
| Diluted                earnings per share                                      |   |                                             |    |   |   |   |   |   |   |   |
| Income                available to common stockholders and assumed conversions |   | $                                                | 189,990 |   | $ | 1,810,660 |   | $ | 0.10 |   |

----

|                                                                           |   | Nine months Ended March 31, 2008 |    |
|--------------------------------------------------------------------------------|--------|-----------------------------------------------------------|---------|
|                                                                           |   | Income                                                    |    | Weighted-Average Shares |   | Per Share Amount |   |
|                                                                           |   |                                                      |    |   |   |   |   |
| Net                income                                                      |   | $                                                         | 791,301 |   |   |   |   |   |   |   |
|                                                                           |   |                                                      |    |   |   |   |   |   |   |   |
| Basic                earnings per share                                        |   |                                                      |    |   |   |   |   |   |   |   |
| Income                available to common stockholders                         |   | $                                                         | 791,301 |   |   | 1,782,706 |   | $ | 0.44 |   |
|                                                                           |   |                                                      |    |   |   |   |   |   |   |   |
| Effect                of dilutive securities                                   |   |                                                      |    |   |   |   |   |   |   |   |
| Stock                options                                                   |   |                                                      | — |   |   | 12,325 |   |   |   |   |
|                                                                           |   |                                                      |    |   |   |   |   |   |   |   |
| Diluted                earnings per share                                      |   |                                                      |    |   |   |   |   |   |   |   |
| Income                available to common stockholders and assumed conversions |   | $                                                         | 791,301 |   |   | 1,795,031 |   | $ | 0.44 |   |

|                                                                           |   | Nine months Ended March 31, 2007 |    |
|--------------------------------------------------------------------------------|--------|-----------------------------------------------------------|---------|
|                                                                           |   | Income                                                    |    | Weighted-Average Shares |   | Per Share Amount |   |
|                                                                           |   |                                                      |    |   |   |   |   |
| Net                income                                                      |   | $                                                         | 591,214 |   |   |   |   |   |   |   |
|                                                                           |   |                                                      |    |   |   |   |   |   |   |   |
| Basic                earnings per share                                        |   |                                                      |    |   |   |   |   |   |   |   |
| Income                available to common stockholders                         |   | $                                                         | 591,214 |   | $ | 1,683,198 |   | $ | 0.35 |   |
|                                                                           |   |                                                      |    |   |   |   |   |   |   |   |
| Effect                of dilutive securities                                   |   |                                                      |    |   |   |   |   |   |   |   |
| Stock                options                                                   |   |                                                      | — |   |   | 32,087 |   |   |   |   |
|                                                                           |   |                                                      |    |   |   |   |   |   |   |   |
| Diluted                earnings per share                                      |   |                                                      |    |   |   |   |   |   |   |   |
| Income                available to common stockholders and assumed conversions |   | $                                                         | 591,214 |   | $ | 1,715,285 |   | $ | 0.34 |   |

*Accounting      for Uncertainty in Income Taxes*

----

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

----

|                                                                  |   | March 31, 2008 |    | June 30, 2007 |   |
|-----------------------------------------------------------------------|--------|--------------------------|---------|-------------------------|--------|
|                                                                  |   |                     |    |                    |   |
| Loans                accounted for on a nonaccrual basis              |   | $                        | 140,000 |                    | $      | 311,000 |   |
| Accruing                loans past due 90 days or more                |   |                     | 103,000 |                    |   | 14,000 |   |
| Nonperforming                loans                                    |   |                     | 243,000 |                    |   | 325,000 |   |
| Real                estate owned (net)                                |   |                     | 76,000  |                    |   | 10,000 |   |
| Other                repossessed assets                               |   |                     | 54,000  |                    |   | 33,000 |   |
| Total                nonperforming assets                             |   | $                        | 373,000 |                    | $      | 368,000 |   |
|                                                                  |   |                     |    |                    |   |   |   |
| Total                loans delinquent 90 days or more to total loans  |   |                     | 0.10    | %                  |   | 0.14 | % |
| Total                loans delinquent 90 days or more to total assets |   |                     | 0.07    | %                       |   | 0.09 | % |
| Total                nonperforming assets to total assets             |   |                     | 0.10    | %                       |   | 0.10 | % |

----

----

----

|                                                           |   |                             |   | Regulatory Minimum |   | Well Capitalized per |          |
|----------------------------------------------------------------|--------|----------------------------------|--------|-------------------------|--------|--------------------------------|---------------|
|                                                           |   | Actual                           |   | Required Capital   |   | 12 CFR Part 565 |          |
|                                                           |   | Amount                           |   | Ratio                   |   | Amount                         |          | Ratio |   | Amount |   | Ratio |   |
|                                                           |   | (Dollars in Thousands) |   |
| As of March 31,                2008 (unaudited) |   |                             |   |                    |   |                           |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                capital (to risk weighted assets)         |   | $                                | 27,951 |                    |   | 11.84                          | %   | $ | 18,883 |   |   | 8.00 | %   | $ | 23,603 |   |   | 10.00 | % |
| Tier                I capital (to risk weighted assets)        |   |                             | 27,876 |                    |   | 11.48                          |          |   | 9,441 |   |   | 4.00 |   |   | 14,162 |   |   | 6.00 |   |
| Tier                I capital (to adjusted total assets)       |   |                             | 27,876 |                    |   | 7.75                           |          |   | 14,395 |   |   | 4.00 |   |   | 17,994 |   |   | 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 ofShares Purchased |   | Average PricePaid per Share |    | Total Number ofShares Purchased asPart of PubliclyAnnounced Plans orPrograms |   | Maximum Numberof Shares that MayYet Be PurchasedUnder the Plans orPrograms |   |
|------------------------------------------------------------------------|--------|------------------------------------------------|--------|--------------------------------------------|---------|----------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------|--------|
| January 1, 2008 through                January 31, 2008 |   |                                           | 0      |                                       |    | N/A                                                                                                                  |   |                                                                                                                    | 0      |   |   | 37,921 |   |
|                                                                   |   |                                           |   |                                       |    |                                                                                                                 |   |                                                                                                                    |   |   |   |   |   |
| February                1, 2008 through February 29, 2008              |   |                                           | 0      |                                       |    | N/A                                                                                                                  |   |                                                                                                                    | 0      |   |   | 37,921 |   |
|                                                                   |   |                                           |   |                                       |    |                                                                                                                 |   |                                                                                                                    |   |   |   |   |   |
| March                1, 2008 through March 31, 2008                    |   |                                           | 2,487  |                                       | $  | 12.25                                                                                                                |   |                                                                                                                    | 2,487  |   |   | 35,434 |   |
|                                                                   |   |                                           |   |                                       |    |                                                                                                                 |   |                                                                                                                    |   |   |   |   |   |
| Total                                                                  |   |                                           | 2,487  |                                       | $       | 12.25                                                                                                                |   |                                                                                                                    | 2,487  |   |   |   |   |

----

*Fair      Value Measurements*

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

----

----

| 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:                May 14, 2008 | By:/s/                Michael H. Head                     |
|------------------------------------|-----------------------------------------------------------|
|                               | Michael              H. Head                              |
|                               | President              and Chief Executive Officer        |
|                               | (principal              executive officer)                |
|                               |                                                      |
| Dated:                May 14, 2008 | By:/s/                George J. Smith                     |
|                               | George              J. Smith                              |
|                               | Treasurer              and Chief Financial Officer        |
|                               | (principal              financial and accounting officer) |

----