UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
     SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended December 31, 1999

                                       or

[_]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

For the transition period from __________________ to _________________

                         Commission File Number 0-29814

                         FIRST BANCORP OF INDIANA, INC.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

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

2200 West Franklin Street, Evansville, Indiana                     47712
--------------------------------------------------------------------------------
(Address of principal executive offices)                         (Zip Code)

                                 (812) 423-3196
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

                                 Not Applicable
--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changes since last report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

Yes  [X]   No [_]

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

     Indicate the number of shares  outstanding of each of the issuer's  classes
of common stock, as of the latest  practicable date:  2,272,400 shares of common
stock, par value $0.01 per share, were outstanding as of February 1, 2000.
<PAGE>
                  FIRST BANCORP OF INDIANA, INC. AND SUBSIDIARY

                                    FORM 10-Q

                     FOR THE QUARTER ENDED DECEMBER 31, 1999

                                      INDEX

                                                                            Page
                                                                            ----

Part I    Financial Information
Item 1.   Consolidated Financial Statements                                   1
Item 2.   Management's Discussion and Analysis of Financial Condition and
          Results of Operations                                               6
Item 3.   Quantitative and Qualitative Disclosures about Market Risk         11

Part II   Other Information
Item 1.   Legal Proceedings                                                  12
Item 2.   Changes in Securities and Use of Proceeds                          12
Item 3.   Defaults Upon Senior Securities                                    12
Item 4.   Submission of Matters to a Vote of Security Holders                12
Item 5.   Other Information                                                  13
Item 6.   Exhibits and Reports on Form 8-K                                   13




<PAGE>
<TABLE>
<CAPTION>
                                FIRST BANCORP OF INDIANA, INC.
                                        AND SUBSIDIARY

                                  Consolidated Balance Sheet

                                                             December 31, 1999  June 30, 1999
---------------------------------------------------------------------------------------------
                                                                (Unaudited)
<S>                                                            <C>              <C>
Assets
    Cash and due from banks                                    $   2,142,137    $   1,105,134
    Interest-bearing demand deposits                               4,701,140       15,567,989
    Federal funds sold                                             1,005,000           25,000
                                                               -------------    -------------
        Total cash and cash equivalents                            7,848,277       16,698,123
    Interest-bearing deposits                                      1,683,000        2,079,000
    Investment securities
      Available for sale                                           1,671,628        2,972,581
      Held to maturity                                            40,866,003       40,003,256
                                                               -------------    -------------
        Total investment securities                               42,537,631       42,975,837
    Loans                                                         62,645,489       56,582,900
    Allowance for loan losses                                       (333,759)        (274,000)
                                                               -------------    -------------
        Net loans                                                 62,311,730       56,308,900
    Premises and equipment                                         1,521,625        1,508,570
    Federal Home Loan Bank stock                                     727,400          727,400
    Other assets                                                   4,044,811        4,502,175
                                                               -------------    -------------
        Total assets                                           $ 120,674,474    $ 124,800,005
                                                               =============    =============

Liabilities
    Deposits
     Non-interest bearing                                      $     381,700    $     419,865
     Interest bearing                                             82,699,670       86,302,246
                                                               -------------    -------------
        Total deposits                                            83,081,370       86,722,111
    Advances by borrowers for
      taxes and insurance                                            434,187          381,226
    Other liabilities                                              1,007,103        1,168,668
                                                               -------------    -------------
        Total liabilities                                         84,522,660       88,272,005
                                                               -------------    -------------

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 and outstanding - 2,272,400 shares                      22,724           22,724
    Additional paid-in capital                                    21,848,244       21,831,518
    Retained earnings                                             15,974,363       15,473,935
    Accumulated other comprehensive income                             7,588           25,263
                                                               -------------    -------------
                                                                  37,852,919       37,353,440

    Less:
    Unallocated employee stock ownership plan shares-166,642      (1,701,105)        (825,440)
                                                               -------------    -------------
    Total stockholders' equity                                    36,151,814       36,528,000
                                                               -------------    -------------

        Total liabilities and stockholders' equity             $ 120,674,474    $ 124,800,005
                                                               =============    =============

</TABLE>

See notes to unaudited consolidated financial statements
<PAGE>
<TABLE>
<CAPTION>
                                           FIRST BANCORP OF INDIANA, INC.
                                                   AND SUBSIDIARY

                                          Consolidated Statement of Income

                                                                   For the                         For the
                                                              Three Months Ended               Six Months Ended
                                                                  December 31,                    December 31,
                                                          --------------------------      --------------------------
                                                             1999            1998            1999              1998
--------------------------------------------------------------------------------------------------------------------
                                                                  (Unaudited)                     (Unaudited)
<S>                                                       <C>             <C>             <C>             <C>
Interest Income
    Loans receivable                                      $1,231,682      $  798,301      $2,387,633      $1,542,958
    Investment securities                                    708,650         804,380       1,416,974       1,634,053
    Deposits with financial institutions                      92,934         209,640         245,415         441,449
    Federal funds sold                                         8,587           7,636          17,664          17,938
    Other interest and dividend income                        14,667          14,668          29,335          29,390
                                                          ----------      ----------      ----------      ----------
        Total interest income                              2,056,520       1,834,625       4,097,021       3,665,788
                                                          ----------      ----------      ----------      ----------

Interest Expense
    Deposits                                                 962,692       1,116,894       1,964,193       2,236,746
    Borrowings                                                     0          51,055               0         103,921
    Other                                                     14,417          11,892          28,834          23,784
                                                          ----------      ----------      ----------      ----------
        Total interest expense                               977,109       1,179,841       1,993,027       2,364,451
                                                          ----------      ----------      ----------      ----------
Net Interest Income                                        1,079,411         654,784       2,103,994       1,301,337
                                                          ----------      ----------      ----------      ----------
    Provision for Loan Losses                                 49,342               0          94,342               0
                                                          ----------      ----------      ----------      ----------
Net Interest Income after Provision                        1,030,069         654,784       2,009,652       1,301,337

Noninterest Income
    Increase in cash surrrender values
       of life insurance                                      24,048          23,334          48,096          46,668
    Other Income                                             201,573          57,920         397,286         109,317
                                                          ----------      ----------      ----------      ----------
        Total noninterest income                             225,621          81,254         445,382         155,985
                                                          ----------      ----------      ----------      ----------
Noninterest Expense
    Salaries and employee benefits                           525,178         360,469         936,093         641,338
    Net occupancy expense                                     49,346          42,983          94,069          86,610
    Equipment expense                                         52,693          28,834          97,306          57,066
    Deposit insurance expense                                 12,807          12,938          29,060          27,636
    Data processing fees                                      21,434          27,130          52,134          52,802
    Other expense                                            290,355         117,765         505,483         230,608
                                                          ----------      ----------      ----------      ----------
        Total noninterest expense                            951,813         590,119       1,714,145       1,096,060
                                                          ----------      ----------      ----------      ----------

Income Before Income Tax                                     303,877         145,919         740,889         361,262
    Income tax expense                                        93,173          34,435         240,461          95,211
                                                          ----------      ----------      ----------      ----------
Net Income                                                $  210,704      $  111,484      $  500,428      $  266,051
                                                          ==========      ==========      ==========      ==========

    Basic earnings per share                              $     0.10             N/A      $     0.24             N/A
    Diluted earnings per share                            $     0.10             N/A      $     0.24             N/A
    Weighted avg number shares outstanding - Basic         2,103,994               0       2,117,126               0
    Weighted avg number shares outstanding - Diluted       2,103,994               0       2,117,126               0


</TABLE>

See notes to unaudited consolidated financial statements
<PAGE>
<TABLE>
<CAPTION>
                         FIRST BANCORP OF INDIANA, INC.
                                 AND SUBSIDIARY

               Consolidated Statement of Changes in Equity Capital


                                        Common Stock
                                    --------------------   Additional
                                      Shares                Paid-in      Comprehensive
                                    Outstanding  Amount     Capital       Income
                                    ----------------------------------------------------
<S>                                   <C>        <C>       <C>             <C>
Balances, June 30, 1999               2,272,400  $22,724   $21,831,518

   Net income                                                              $289,724
     Other comprehensive income,
     net of tax--Unrealized losses
     on securities (unaudited)                                              (10,707)
                                                                           --------
   Comprehensive income (unaudited)                                        $279,017
                                                                           ========
Employee Stock Ownership Plan
    shares allocated                                              (483)
Purchase ESOP Shares
Refunded Conversion Expenses                                    20,816
                                      --------------------------------
Balances, Sept 30, 1999 (unaudited)   2,272,400  $22,724   $21,851,851
                                      ================================

   Net income                                                              $210,704
     Other comprehensive income,
     net of tax--Unrealized losses
     on securities (unaudited)                                               (6,968)
                                                                           --------
   Comprehensive income (unaudited)                                        $203,736
                                                                           ========
Employee Stock Ownership Plan
    shares allocated                                            (3,607)
                                      --------------------------------
Balances, Dec 31, 1999 (unaudited)    2,272,400  $22,724   $21,848,244
                                      ================================

<PAGE>
<CAPTION>
                         FIRST BANCORP OF INDIANA, INC.
                                 AND SUBSIDIARY

               Consolidated Statement of Changes in Equity Capital


                                                 Accumulated
                                                   Other       Unallocated
                                    Retained     Comprehensive     ESOP
                                    Earnings       Income         Shares       Total
                                    ----------------------------------------------------
<S>                                 <C>              <C>          <C>        <C>
Balances, June 30, 1999             $15,473,935      $25,263      ($825,440) $36,528,000

   Net income                           289,724                                  289,724
     Other comprehensive income,
     net of tax--Unrealized losses
     on securities (unaudited)                       (10,707)                    (10,707)

   Comprehensive income (unaudited)

Employee Stock Ownership Plan
    shares allocated                                                 50,724       50,241
Purchase ESOP Shares                                               (980,411)    (980,411)
Refunded Conversion Expenses                                                      20,816
                                    ----------------------------------------------------
Balances, Sept 30, 1999 (unaudited) $15,763,659      $14,556    ($1,755,127) $35,897,663
                                    ====================================================

   Net income                           210,704                                  210,704
     Other comprehensive income,
     net of tax--Unrealized losses
     on securities (unaudited)                        (6,968)                     (6,968)

   Comprehensive income (unaudited)

Employee Stock Ownership Plan
    shares allocated                                                 54,022       50,415
                                    ----------------------------------------------------
Balances, Dec 31, 1999 (unaudited)  $15,974,363       $7,588    ($1,701,105) $36,151,814
                                    ====================================================
</TABLE>


See notes to unaudited consolidated financial statements
<PAGE>
<TABLE>
<CAPTION>
                                                      FIRST BANCORP OF INDIANA
                                                           AND SUBSIDIARY

                                                Consolidated Statement of Cash Flows


                                                                              Quarter Ended                   Six Months Ended
                                                                               December 31,                     December 31,
                                                                       ----------------------------    ----------------------------
                                                                          1999             1998            1999            1998
                                                                       ------------    ------------    ------------    ------------
                                                                               (Unaudited)                      (Unaudited)
<S>                                                                    <C>             <C>              <C>             <C>
Net Cash Provided (Used) by Operating Activities                       ($   54,685)    ($  738,037)     $   985,490     ($   12,174)

Investing Activities
   Net change in interest-bearing deposits                                                                  396,000         397,000
   Proceeds from maturities of securities available for sale                530,672         354,002       1,272,861         737,707
   Purchases of securities held to maturity                              (3,246,613)    (14,440,479)    (13,520,594)    (22,440,479)
   Proceeds from maturities of securities held to maturity                7,420,387      12,571,307      12,618,912      21,946,393
   Net change in loans                                                   (3,228,035)       (851,494)     (6,097,172)     (3,364,817)
   Net (Purchases) or Dispositions of premises and equipment                 53,892         (10,419)         42,032         (30,637)
                                                                       ------------    ------------    ------------    ------------
     Net cash used by investing activities                                1,530,303      (2,377,083)     (5,287,961)     (2,754,833)
                                                                       ------------    ------------    ------------    ------------

Financing Activities
   Net change in
     Non-interest bearing, interest-bearing demand
       and savings deposits                                                (942,861)        707,121        (682,026)      1,902,403
     Certificates of deposit                                             (1,102,170)        641,942      (2,958,715)      1,178,522
     Advances by borrows for taxes and insurance                           (106,270)       (153,373)         52,961          51,446
   Refunded conversion expenses                                                                              20,816
   Purchase of ESOP Shares                                                                                 (980,411)
                                                                       ------------    ------------    ------------    ------------
       Net cash provided (used) by financing activities                  (2,151,301)      1,195,690      (4,547,375)      3,132,371
                                                                       ------------    ------------    ------------    ------------

Net Change in Cash and Cash Equivalents                                    (675,683)     (1,919,430)     (8,849,846)        365,364

Cash and Cash Equivalents, Beginning of Period                            8,523,960      13,973,863      16,698,123      11,689,069
                                                                       ------------    ------------    ------------    ------------
Cash and Cash Equivalents, End of Period                                $ 7,848,277     $12,054,433     $ 7,848,277     $12,054,433
                                                                       ============    ============     ============    ============

Additional Cash Flow Information
   Interest paid                                                          1,352,193       1,585,410       1,942,313       2,290,019
   Income tax paid                                                          305,461          72,404         441,319          88,702
</TABLE>


See notes to unaudited consolidated financial statements
<PAGE>
                  FIRST BANCORP OF INDIANA, INC. AND SUBSIDIARY
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.     BASIS OF PRESENTATION

     The  accompanying  consolidated  financial  statements  of First Bancorp of
Indiana, Inc. (the "Company") have been prepared in accordance with instructions
to Form  10-Q.  Accordingly,  they do not  include  all of the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial  statements.   However,  such  information  reflects  all  adjustments
(consisting solely of normal recurring adjustments) which are, in the opinion of
management,  necessary for a fair  statement of results for the interim  period.
The results of operations  for the three and six months ended  December 31, 1999
are not necessarily indicative of the results to be expected for the year ending
June 30, 2000. The consolidated financial statements and notes thereto should be
read in conjunction with the audited consolidated financial statements and notes
thereto for the year ended June 30,  1999,  contained  in the  Company's  annual
report to shareholders.

2.       CONVERSION TO STOCK FORM OF OWNERSHIP

     On September 16, 1998, the Board of Directors of First Federal Savings Bank
(the "Bank") adopted a Plan of Conversion to convert from a federally  chartered
mutual  savings bank to a federally  chartered  capital stock savings bank.  The
conversion  was  accomplished  through the  formation of the Company in November
1998,  the adoption of a federal  stock  charter,  the sale of all of the Bank's
stock to the Company on April 7, 1999 and the sale of the Company's stock to the
public on April 7, 1999.

     In connection with the conversion,  the Company issued  2,272,400 shares of
common stock for gross proceeds of $22.7 million.  The aggregate  purchase price
was determined by an independent appraisal.  The Bank issued all its outstanding
capital stock to the Company in exchange for one-half of the net proceeds of the
offering.  The  Company  accounted  for the  purchase  in a manner  similar to a
pooling of interests  whereby assets and  liabilities of the Bank maintain their
historical cost basis in the consolidated company.

3.     EMPLOYEE STOCK OWNERSHIP PLAN

     In connection  with the conversion,  the Bank also  established an Employee
Stock  Ownership  Plan  ("ESOP") for the benefit of its  employees.  The Company
issued  87,400 shares of common stock to the ESOP in exchange for a 12 year note
in the amount of approximately $874,000. The Bank will make contributions in the
amount  necessary,  when  combined  with  any  dividends  earned  by the ESOP on
unallocated  shares, to make quarterly payments of principal and interest on the
note.  As payments are made,  the Company will release  shares from  collateral.
Released shares will be allocated to participants over the term of the note.

     During  the  quarter  ended  September  30,  1999,  the  ESOP  acquired  an
additional 94,392 shares of the Company's common stock in the open market.  When
combined  with the  shares  previously  purchased  by the ESOP in the  Company's
initial public offering,  the ESOP owns 8% of the Company's  outstanding shares.
The  $980,411 for the ESOP  purchase was borrowed  from the Company and added to
the existing 12 year note.

                                        5
<PAGE>
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

FORWARD-LOOKING STATEMENTS

     This report contains  forward-looking  statements within the meaning of the
federal securities laws. These statements are not historical facts,  rather they
are  statements  based  on the  Company's  current  expectations  regarding  its
business  strategies  and their  intended  results  and its future  performance.
Forward-looking  statements are preceded by terms such as "expects," "believes,"
"anticipates,"  "intends," and similar expressions.  Forward-looking  statements
are not guarantees of future performance. Numerous risks and uncertainties could
cause  or  contribute  to  the  Company's  actual  results,   performance,   and
achievements  to be materially  different from those expressed or implied by the
forward-looking  statements.  Factors  that  may  cause or  contribute  to these
differences include, without limitation, general economic conditions,  including
changes in market  interest rates and changes in monetary and fiscal policies of
the federal  government;  legislative  and  regulatory  changes;  the  Company's
ability to remedy any computer  malfunctions  that may result from the advent of
year 2000; and other factors  disclosed  periodically  in the Company's  filings
with  the  Securities  and  Exchange  Commission.   Because  of  the  risks  and
uncertainties inherent in forward-looking statements,  readers are cautioned not
to place  undue  reliance  on them,  whether  included  in this  report  or made
elsewhere from time to time by the Company or on its behalf. The Company assumes
no obligation to update any forward-looking statements.

GENERAL

     Management's  discussion and analysis of financial condition and results of
operations is intended to assist in  understanding  the financial  condition and
results of operations of the Company. The information  contained in this section
should  be  read  in  conjunction  with  the  unaudited  consolidated  financial
statements and accompanying notes thereto.

COMPARISON OF FINANCIAL CONDITION AT DECEMBER 31, 1999 AND JUNE 30, 1999

     Total consolidated assets of the Company decreased $4.1 million from $124.8
million  at June 30,  1999 to $120.7  million at  December  31,  1999.  This was
primarily the result of using cash to fund deposit withdrawals.

     Cash and cash equivalents, which are primarily comprised of demand deposits
at the Federal Home Loan Bank of Indianapolis (FHLB),  decreased by $8.9 million
from $16.7  million at June 30, 1999 to $7.8 million at December 31, 1999.  This
decline was the result of  management  shifting  funds to the loan  portfolio as
well as using a portion of its most liquid assets to fund the slight  decline in
customer deposits.

     Investment  securities  decreased  $500,000  from $43.0 million at June 30,
1999 to $42.5  million at December 31, 1999.  This decline was the result of the
Bank reinvesting a portion of the proceeds from investment  security  maturities
and principal repayments into its mortgage and consumer loan portfolios.

     Net loans grew $6.0  million  from $56.3  million at June 30, 1999 to $62.3
million at December 31, 1999. This increase is primarily  attributable to a $3.6
million  increase in consumer loans.  The Bank has always been a strong mortgage
lender  and  continues  to expand its  consumer  lending  operation.  During the
period, the Bank originated $25.0 million of indirect  automobile loans of which
it retained $6.1 million for its own  portfolio.  It is  management's  intent to
sell 60%-80% of indirect  automobile loan production and retain the remainder in
the Company's own portfolio.

                                        6
<PAGE>
   The  allowance  for loan losses  increased  from $274,000 at June 30, 1999 to
$334,000 at December 31, 1999.  The ratios of the  Company's  allowance for loan
losses to total  loans were 0.53% and 0.48% at  December  31,  1999 and June 30,
1999, respectively. During that same period, the Company's non-performing assets
increased  from $6,000 to $106,000.  The ratios of the  Company's  allowance for
loan losses to total  nonperforming  loans were 477.14% and 4566.67% at December
31, 1999 and June 30, 1999, respectively.

     Total deposits declined $3.6 million from $86.7 million at June 30, 1999 to
$83.1 million at December 31, 1999. This slight decline was primarily the result
of unusually competitive pricing for deposits.

     Other liabilities  decreased $162,000 from $1.2 million at June 30, 1999 to
$1.0 million at December 31, 1999. This decrease was primarily attributable to a
decrease in accounts payable.

     Total  stockholders'  equity decreased  $376,000 from $36.5 million at June
30, 1999 to $36.2 million at December 31, 1999. This decline was attributable to
the purchase of additional shares of stock for the employee stock ownership plan
(ESOP)  totaling  $980,000,  less a $101,000  allocation  of ESOP shares,  and a
decrease of $18,000 in net  unrealized  gains on securities  available for sale.
Increasing  stockholders'  equity were net income of $500,000 and an increase of
$21,000 to additional paid-in capital for a refund and a reduction of conversion
related expenses.

COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED DECEMBER 31,
1999 AND 1998

     GENERAL.  Net income for the quarter  ended  December  31,  1999  increased
$100,000 or 90.1% from  $111,000  for the  quarter  ended  December  31, 1998 to
$211,000  for  the  quarter  ended   December  31,  1999.   This  was  primarily
attributable  to an  increase  in  the  Company's  net  interest  income  as the
Company's  net interest rate spread  increased  from 1.96% for the quarter ended
December 31, 1998 to 2.56% for the quarter ended  December 31, 1999. As a result
of its stock offering,  the Company also had a larger amount of interest-earning
assets  compared  to last year.  The return on average  assets was 0.70% for the
quarter ended  December 31, 1999  compared to 0.40% for the same quarter  during
1998 and the return on average  equity was 2.35% for the quarter ended  December
31, 1999 compared to 2.93% for the same quarter during 1998.

     NET INTEREST INCOME. Net interest income for the quarter ended December 31,
1999 increased $425,000 from $655,000 during the quarter ended December 31, 1998
to $1.1 million for the quarter ended December 31, 1999.

     The increase in net interest income was  attributable in part to a $222,000
increase  in total  interest  income from $1.8  million  for the  quarter  ended
December  31,  1998 to $2.1  million  for the same  quarter  during 1999 and was
primarily  the result of a $433,000  increase  in  interest  income  from loans.
Average  loans  outstanding  increased to $60.6 million with an average yield of
8.13% for the quarter  ended  December 31, 1999 from $38.8 with an average yield
of 8.24% for the same period in the prior year. This increase in interest income
was partially  offset by a $96,000 decline in interest  income from  investments
and a $117,000  decline in interest  income from deposits  with other  financial
institutions.

     The increase in net  interest  income was also  attributable  to a $203,000
decline in interest  expense from $1.2 million during the quarter ended December
31, 1998 to $1.0 million for the quarter ended  December 31, 1999.  This was the
result of average  deposits  declining  from $91.2 million for the quarter ended
December 31, 1998 to $83.2 million for the quarter ended  December 31, 1999, and
the average cost of those  deposits  declining  from 4.90% to 4.63% for the same
respective periods. In addition, interest expense on borrowings declined $51,000
as the Company used a portion of the proceeds from its conversion to pay-off its
borrowings.

                                        7
<PAGE>
     PROVISION  FOR LOAN LOSSES.  The  provision for loan losses for the quarter
ended December 31, 1999 was $49,000 compared to none for the same quarter in the
prior year. The provision reflects  management's  analysis of the Company's loan
portfolio based on information which is currently  available to it at such time.
In particular,  management  considers the level of non-performing loans (if any)
and potential  problem  loans.  The higher  provision  for the quarter  reflects
overall  growth  in the  Company's  loan  portfolio.  While  Company  management
believes that the allowance for loan losses is sufficient  based on  information
currently  available  to it,  no  assurances  can be made  that  future  events,
conditions, or regulatory directives will not result in increased provisions for
loan losses or additions to the  allowance  for loan losses which may  adversely
affect net income.  Net charge-offs for the quarter ended December 31, 1999 were
$25,000 compared to zero for the same period last year.

     NONINTEREST  INCOME.  Noninterest  income totaled  $226,000 for the quarter
ended  December  31,  1999  compared to $81,000 for the same period in the prior
year,  an increase of  $145,000.  The  increase was  primarily  attributable  to
$153,000 in fee income  generated  through  the sale of consumer  loans into the
secondary market.

     NONINTEREST  EXPENSE.  Total noninterest  expense increased to $952,000 for
the quarter ended  December 31, 1999 as compared to $590,000 for the same period
in 1998,  an  increase of  $362,000.  Salaries  and  employee  benefits  totaled
$525,000  during the quarter ended December 31, 1999,  which was $165,000 higher
than the  $360,000  recorded  during  the  same  period  in 1998.  Approximately
$103,000  of  the  increase  in  salaries  and  employee   benefits  expense  is
attributable  to the addition of a new indirect  lending  department  in January
1999.  Compensation expense is also approximately $50,000 higher for the quarter
ended December  31,1999 as a result of the Company's ESOP,  which was adopted in
conjunction  with its initial public  offering in April 1999. The balance of the
increase  in  salaries  and  employee   benefits  is  mainly  due  to  incentive
compensation  bonuses and normal salary increases for employees other than those
previously noted.

     Other  noninterest  expense  increased  $172,000,  to  $290,000  during the
quarter ended  December 31, 1999 as compared to $118,000  during the same period
in 1998.  Approximately  $79,000 of the increase was due to legal and other fees
incurred in settlement of a lawsuit in connection  with the  acquisition  of the
indirect  lending  department.  The increased  expense is also  attributable  to
professional  fees and other expenses  associated  with being a public  company,
which increased $44,000, a $28,000 increase in expenses  associated with the new
indirect lending department, a $6,000 increase in advertising, and various other
small increases in several noninterest expense categories.

     INCOME  TAXES.  Total income tax expense was $93,000 for the quarter  ended
December 31, 1999, compared to $34,000 for the same period in 1998. The increase
is  attributable to increased  taxable  income.  The effective tax rates for the
quarters ended December 31, 1999 and 1998 were 30.6% and 23.4%.

COMPARISON OF OPERATING RESULTS FOR THE SIX MONTHS ENDED DECEMBER 31, 1999
AND 1998

 GENERAL.  Net income for the six  months  ended  December  31,  1999  increased
$234,000 or 88.0% from  $266,000 for the six months  ended  December 31, 1998 to
$500,000  for the six  months  ended  December  31,  1999.  This  was  primarily
attributable  to an  increase  in  the  Company's  net  interest  income  as the
Company's net interest rate spread increased from 1.97% for the six months ended
December  31, 1998 to 2.42% for the six months ended  December  31,  1999.  As a
result  of  its  stock  offering,  the  Company  also  had a  larger  amount  of
interest-earning  assets compared to last year. The return on average assets was
0.81% for the six months ended  December 31, 1999 compared to 0.48% for the same
period during 1998 and the return on average equity was 2.78% for the six months
ended December 31, 1999 compared to 3.52% for the same period during 1998.

     NET INTEREST INCOME.  Net interest income for the six months ended December
31,  1999  increased  $803,000  from $1.3  million  during the six months  ended
December 31, 1998 to $2.1 million for the same period ended December 31, 1999.

                                        8
<PAGE>
     The increase in net interest income was  attributable in part to a $431,000
increase in total  interest  income from $3.7  million for the six months  ended
December  31,  1998 to $4.1  million  for the same  period  during  1999 and was
primarily the result of a $845,000  increase in interest income from loans.  The
average  loans  outstanding  increased to $59.2 million with an average yield of
8.07% for the six  months  ended  December  31,  1999 from $37.5 with an average
yield of 8.24% for the same period in the prior year.  This increase in interest
income was  partially  offset by a  $217,000  decline in  interest  income  from
investments  and a $196,000  decline in interest income from deposits with other
financial institutions.

     The increase in net  interest  income was also  attributable  to a $371,000
decline in  interest  expense  from $2.4  million  during  the six months  ended
December 31, 1998 to $2.0  million for the six months  ended  December 31, 1999.
This was the result of average deposits declining from $90.7 million for the six
months  ended  December  31,  1998 to $84.6  million  for the six  months  ended
December 31, 1999, and the average cost of those  deposits  declining from 4.93%
to 4.64% for the same  respective  periods.  In  addition,  interest  expense on
borrowings  declined $104,000 as the Company used a portion of the proceeds from
its conversion to pay-off its borrowings.

     PROVISION FOR LOAN LOSSES. The provision for loan losses for the six months
ended December 31, 1999 was $94,000  compared to none for the same period in the
prior year. The provision reflects  management's  analysis of the Company's loan
portfolio based on information which is currently  available to it at such time.
In particular,  management  considers the level of non-performing loans (if any)
and potential  problem  loans.  The higher  provision  for the quarter  reflects
overall  growth  in the  Company's  loan  portfolio.  While  Company  management
believes that the allowance for loan losses is sufficient  based on  information
currently  available  to it,  no  assurances  can be made  that  future  events,
conditions, or regulatory directives will not result in increased provisions for
loan losses or additions to the  allowance  for loan losses which may  adversely
affect net income.  Net  charge-offs  for the six months ended December 31, 1999
were $35,000 compared to zero for the same period last year.

     NONINTEREST INCOME.  Noninterest income totaled $445,000 for the six months
ended  December  31, 1999  compared to $156,000 for the same period in the prior
year,  an increase of  $289,000.  The  increase was  primarily  attributable  to
$305,000 in fee income  generated  through  the sale of consumer  loans into the
secondary market.

     NONINTEREST  EXPENSE.  Total noninterest  expense increased to $1.7 million
for the six months  ended  December 31, 1999 as compared to $1.1 million for the
same period in 1998,  an increase of $618,000.  Salaries  and employee  benefits
totaled  $936,000  during the six months  ended  December  31,  1999,  which was
$295,000  higher  than the  $641,000  recorded  during the same  period in 1998.
Approximately $174,000 of the increase in salaries and employee benefits expense
is attributable to the addition of a new indirect lending  department in January
1999.  Compensation  expense is also  approximately  $100,000 higher for the six
months  ended  December  31,1999 as a result of the  Company's  ESOP,  which was
adopted in  conjunction  with its initial  public  offering  in April 1999.  The
balance of the  increase  in  salaries  and  employee  benefits is mainly due to
incentive  compensation  bonuses and normal salary increases for employees other
than those previously noted.

     Other noninterest  expense increased  $274,000,  to $505,000 during the six
months ended December 31, 1999 as compared to $231,000 during the same period in
1998.  Approximately  $89,000  of the  increase  was due to legal and other fees
incurred in settlement of a lawsuit in connection  with the  acquisition  of the
indirect  lending  department.  The increased  expense is also  attributable  to
professional  fees and other expenses  associated  with being a public  company,
which increased $110,000, a $51,000 increase in expenses associated with the new
indirect lending department, a $6,000 increase in advertising, and various other
small increases in several noninterest expense categories.

     INCOME  TAXES.  Total  income tax expense was  $240,000  for the six months
ended  December 31, 1999,  compared to $95,000 for the same period in 1998.  The
increase is  attributable to increased  taxable income.  The effective tax rates
for the six months ended December 31, 1999 and 1998 were 32.4% and 26.3%.

                                        9
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES

     Federal  regulations  require  First  Federal to maintain  levels of liquid
assets,  such as cash and  eligible  investments.  The required  percentage  has
varied from time to time based upon economic conditions and savings flows and is
currently  4% of the  average  daily  balance  of its net  withdrawable  savings
deposits  and  short-term  borrowings.  At December 31,  1999,  First  Federal's
liquidity  ratio,  defined as liquid assets as a percentage of net  withdrawable
savings deposits and short-term borrowings, was 14.9%.

     First  Federal must  maintain an adequate  level of liquidity to ensure the
availability  of  sufficient  funds  to  fund  loan   originations  and  deposit
withdrawals,  to satisfy other  financial  commitments  and to take advantage of
investment  opportunities.  First  Federal  invests  excess  funds in  overnight
deposits and other short-term  interest-bearing  assets to provide  liquidity to
meet these needs. At December 31, 1999, cash and cash  equivalents  totaled $7.8
million,  or 6.5% of total  assets.  At December  31,  1999,  First  Federal had
commitments  to fund loans of $2.7 million.  At the same time,  certificates  of
deposit which are scheduled to mature in one year or less totaled $39.0 million.
Based upon historical  experience,  management believes the majority of maturing
certificates of deposit will remain with First Federal. In addition,  management
of First Federal  believes it can adjust the offering rates of  certificates  of
deposit  to  retain  deposits  in  changing  interest  rate  environments.  If a
significant  portion of these deposits are not retained by First Federal,  First
Federal would be able to utilize Federal Home Loan Bank advances to fund deposit
withdrawals, which would result in an increase in interest expense to the extent
that the average  rate paid on such  advances  exceeds the average  rate paid on
deposits of similar duration.

    Management  believes its ability to generate funds  internally  will satisfy
its liquidity  requirements.  If First Federal requires funds beyond its ability
to generate them internally, it has the ability to borrow funds from the Federal
Home Loan Bank.  At December 31, 1999,  First  Federal had  approximately  $15.0
million  available to it under its borrowing  arrangement  with the Federal Home
Loan Bank.  At December  31,  1999,  First  Federal had no  borrowings  from the
Federal Home Loan Bank.

     Office of Thrift Supervision  ("OTS")  regulations require First Federal to
maintain  specific  amounts of capital.  As of December 31, 1999,  First Federal
exceeded its minimum capital requirements.

YEAR 2000 ISSUES

     The year 2000 issue exists because many computer  systems and  applications
use  two-digit  date  fields to  designate a year.  As the  century  date change
occurs,  date-sensitive  systems may  recognize the year 2000 as 1900, or not at
all.  This  inability  to  recognize  or properly  treat the year 2000 may cause
erroneous results,  ranging from system  malfunctions to incorrect or incomplete
processing.  As a user of computers,  computer software and equipment  utilizing
embedded  microprocessors,  failure  to resolve  year 2000  issues  could  cause
substantial  disruption  of First  Federal's  business and could have a material
adverse effect on First Federal's  business,  financial  condition or results of
operations.

     First Federal  established a year 2000 committee in 1997 which is headed by
the Chief  Operating  Officer and includes all department  heads.  The committee
developed  and  implemented a  comprehensive  plan to make all  information  and
non-information  technology assets year 2000 compliant.  The committee  provides
periodic  reports to the Board of Directors in order to assist the  directors in
their year 2000 readiness oversight role.

     While there can be no assurances  that First  Federal's  year 2000 plan has
effectively  addressed the year 2000 issue, First Federal has not been notified,
and is unaware of, any vendor or service provider  problems related to year 2000
and all systems have performed properly since January 1, 2000.  Likewise,  First
Federal is unaware of any year 2000  issues  that have  impaired  the ability of
First Federal's borrowers to repay their debt.

                                       10
<PAGE>
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

     First  Bancorp  does  not  maintain  a  trading  account  for any  class of
financial  instrument  nor does it  engage in  hedging  activities  or  purchase
high-risk derivative instruments.  Furthermore,  First Bancorp is not subject to
foreign currency exchange rate risk or commodity price risk.

     First  Bancorp  uses  interest  rate  sensitivity  analysis  to measure its
interest rate risk by computing changes in net portfolio value of its cash flows
from assets,  liabilities and off-balance sheet items in the event of a range of
assumed  changes in market interest  rates.  Net portfolio value  represents the
market  value of  portfolio  equity and is equal to the  market  value of assets
minus the market value of  liabilities,  with  adjustments  made for off-balance
sheet items.  This analysis  assesses the risk of loss in market risk  sensitive
instruments  in the  event of a sudden  and  sustained  100 to 400  basis  point
increase or decrease in market  interest rates with no effect given to any steps
that management might take to counter the effect of that interest rate movement.
First  Bancorp  measures  interest  rate  risk by  modeling  the  change  in net
portfolio value over a variety of interest rate scenarios.

     Although First Bancorp has not yet completed its interest rate  sensitivity
analysis  for  December  31,  1999,  management  anticipates  there  has been no
material change from the information disclosed in the Company's annual report to
shareholders'  at June 30,  1999.  The most  recent  interest  rate  sensitivity
analysis  measures  First  Bancorp's  interest  rate risk at September 30, 1999.
There  were no  material  changes  in  information  in this  analysis  from  the
information disclosed in the Company's annual report to shareholders'  measuring
the Bank's interest rate risk at June 30, 1999.

                                       11
<PAGE>
                           PART II. OTHER INFORMATION

ITEM 1.
LEGAL PROCEEDINGS.

     Periodically,  there have been various claims and lawsuits  involving First
Federal, such as claims to enforce liens, condemnation proceedings on properties
in which First Federal holds security interests, claims involving the making and
servicing of real property  loans and other issues  incident to First  Federal's
business. In the opinion of management,  after consultation with First Federal's
legal counsel,  no significant  loss is expected from any of such pending claims
or  lawsuits.  First  Federal  is not a  party  to any  material  pending  legal
proceedings.

ITEM 2.
CHANGES IN SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3.
DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4.
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

     The Annual Meeting of  Stockholders of the Company was held on November 10,
1999.  The  results of the vote on the  matters  presented  at the meeting is as
follows:

          1.   The following  individuals were elected as directors,  each for a
               one-year term:

                                              Vote For          Vote Withheld
                                              --------          -------------

                  Robert L. Clayton, Sr.      1,777,494             121,963
                  James L. Will, Jr.          1,777,694             121,763

               The following  individuals were elected as directors,  each for a
               two-year term:

                                              Vote For          Vote Withheld
                                              --------          -------------

                  Herbert V. Dassel           1,777,494            121,963
                  Jerry Ziemer                1,777,544            121,913

               The following  individuals were elected as directors,  each for a
               three-year term:

                                               Vote For          Vote Withheld
                                               --------          -------------

                  Frank E. Kern                1,759,574           139,883
                  Harold Duncan                1,777,494           121,963

          2.   The First  Bancorp of Indiana,  Inc. 1999  Stock-Based  Incentive
               Plan was approved by the stockholders by the following vote:

               For 1,129,087;           Against 255,475;          Abstain 16,375

               Broker non-votes totaled 498,520

                                       12
<PAGE>
          3.   The  appointment of Olive LLP as auditors for the Corporation for
               the fiscal year ending June 30, 2000 was ratified by stockholders
               by the following vote:

               For 1,785,659            Against 106,190            Abstain 7,608


ITEM 5.
OTHER INFORMATION.

None.

ITEM 6.
EXHIBITS AND REPORTS ON FORM 8-K.

a.   Exhibits

     10 - First Bancorp of Indiana, Inc. Stock-Based Incentive Plan
     27 - Financial Data Schedule

b.   Forms 8-K
     No Forms 8-K were filed during the quarter ended December 31, 1999.

                                       13
<PAGE>
                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

                         FIRST BANCORP OF INDIANA, INC.


Dated: February 10, 2000                 By:  /s/ Harold Duncan
                                         --------------------------------
                                         Harold Duncan
                                         President, Chief Executive Officer
                                         and Chairman of the Board
                                         (principal executive officer)

Dated: February 10, 2000                 By:  /s/ Christopher A. Bengert
                                         --------------------------------
                                         Christopher A. Bengert
                                         Treasurer
                                         (principal financial and accounting
                                          officer)



                                       14