UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB
(Mark One)

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

                  For the quarterly period ended March 31, 2005

                                       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 small business issuer as specified in its charter)

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

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

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

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

      Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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: 1,604,306 of common stock,
par value $0.01 per share, were outstanding as of May 6, 2005.

      Transitional Small Business Disclosure Format (Check one): Yes |_| No |X|

<PAGE>

                  FIRST BANCORP OF INDIANA, INC. AND SUBSIDIARY

                                   FORM 10-QSB

                      FOR THE QUARTER ENDED MARCH 31, 2005

                                      INDEX

                                                                            Page
                                                                            ----
Part I    Financial Information
Item 1.   Financial Statements                                                 3
Item 2.   Management's Discussion and Analysis or Plan of Operation           11
Item 3.   Controls and Procedures                                             18

Part II   Other Information
Item 1.   Legal Proceedings                                                   19
Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds         19
Item 3.   Defaults Upon Senior Securities                                     19
Item 4.   Submission of Matters to a Vote of Security Holders                 19
Item 5.   Other Information                                                   19
Item 6.   Exhibits                                                            19


                                       2
<PAGE>

                         FIRST BANCORP OF INDIANA, INC.
                                 AND SUBSIDIARY
                      Condensed Consolidated Balance Sheets

<TABLE>
<CAPTION>
                                                         March 31, 2005      June 30, 2004
-------------------------------------------------------------------------------------------
                                                           (Unaudited)
<S>                                                       <C>                 <C>
Assets
     Cash and due from banks                              $   3,865,713       $   2,886,086
     Interest-bearing demand deposits                         2,612,263           3,918,784
     Federal funds sold                                       1,785,000           1,290,000
                                                          -------------       -------------
         Total cash and cash equivalents                      8,262,976           8,094,870
     Interest-bearing deposits                                  842,745             943,789
     Investment securities
       Available for sale                                    60,144,407          66,113,319
       Held to maturity                                       6,864,561           9,396,072
                                                          -------------       -------------
         Total investment securities                         67,008,968          75,509,391
     Loans                                                  190,261,226         163,765,254
     Allowance for loan losses                               (1,057,719)         (1,077,954)
                                                          -------------       -------------
         Net loans                                          189,203,507         162,687,300
     Premises and equipment                                   3,475,691           2,720,106
     Goodwill                                                 1,786,297           1,786,297
     Core deposit intangibles                                   181,752             238,790
     Federal Home Loan Bank stock                             2,764,500           2,677,200
     Other assets                                             9,547,562           9,407,415
                                                          -------------       -------------
         Total assets                                     $ 283,073,998       $ 264,065,158
                                                          =============       =============

Liabilities
     Deposits
      Non-interest bearing                                $  12,101,601       $   6,206,246
      Interest bearing                                      189,457,994         176,533,610
                                                          -------------       -------------
         Total deposits                                     201,559,595         182,739,856
     Short-term borrowings                                    4,000,000          12,500,000
     Long-term debt                                          43,666,667          35,666,667
     Advances by borrowers for
       taxes and insurance                                      841,353             518,099
     Other liabilities                                        3,810,820           3,672,771
                                                          -------------       -------------
         Total liabilities                                  253,878,435         235,097,393
                                                          -------------       -------------

Stockholders' Equity
     Preferred stock, $.01 par value
        Authorized and unissued - 1,000,000 shares
     Common stock, $.01 par value
        Authorized - 9,000,000 shares
        Issued - 2,272,400 shares                                22,724              22,724
     Additional paid-in capital                              22,053,744          21,828,080
     Retained earnings                                       18,541,779          18,344,146
     Accumulated other comprehensive income                    (704,060)           (908,658)
                                                          -------------       -------------
                                                             39,914,187          39,286,292

     Less:
     Unreleased employee stock ownership plan
     shares - 87,106 and 98,470 shares                         (889,194)         (1,005,199)
     Treasury stock -  667,769 and 646,086 shares            (9,815,946)         (9,178,401)
     Unreleased MRP shares - 1,434 and 14,349 shares            (13,484)           (134,927)

                                                          -------------       -------------
     Total stockholders' equity                              29,195,563          28,967,765

                                                          -------------       -------------
         Total liabilities and stockholders' equity       $ 283,073,998       $ 264,065,158
                                                          =============       =============
</TABLE>

       See notes to unaudited condensed consolidated financial statements


                                       3
<PAGE>

FIRST BANCORP OF INDIANA, INC.
AND SUBSIDIARY

Condensed Consolidated Statement of Changes in Stockholders' Equity

<TABLE>
<CAPTION>
                                                                                                            Accumulated
                                                                             Additional                        Other
                                               Comprehensive    Common         Paid-in        Retained     Comprehensive
                                                   Income        Stock         Capital        Earnings         Income
                                               -------------------------------------------------------------------------
<S>                                             <C>             <C>          <C>            <C>             <C>
                                                                ------------------------    ----------------------------
Balances, June 30, 2004                                         $22,724      $21,828,080    $18,344,146     ($908,658)
                                                                ========================    ============================

   Net income                                   $  395,393                                      395,393
     Other comprehensive income,
     net of tax--Unrealized gains (losses)
     on securities (unaudited)                     760,015                                                    760,015

   Cash dividends paid ($0.29 per share)                                                       (472,502)
   Employee Stock Ownership Plan
    shares allocated                                                              37,476
   MRP shares allocated                                                           (1,198)
   Options exercised                                                             (21,582)
   Treasury shares purchased
   Tax benefit of employee
     benefit plans                              ----------                       226,600
   Comprehensive income (unaudited)             $1,155,408
                                                ==========
                                                                ------------------------    ----------------------------
Balances, Sept 30, 2004 (unaudited)                             $22,724      $22,069,376    $18,267,037     ($148,643)
                                                                ========================    ============================

   Net income                                   $  390,195                                      390,195
     Other comprehensive income,
     net of tax--Unrealized gains (losses)
     on securities (unaudited)                    (101,514)                                                  (101,514)

   Employee Stock Ownership Plan
    shares allocated                                                              36,445
   MRP shares allocated                                                           (1,198)
   Options exercised                                                             (22,385)
   Treasury shares purchased                    ----------
   Comprehensive income (unaudited)             $  288,681
                                                ==========
                                                                ------------------------    ----------------------------
Balances, Dec 31, 2004 (unaudited)                              $22,724      $22,082,238    $18,657,232     ($250,157)
                                                                ========================    ============================

   Net income                                   $  370,391                                      370,391
     Other comprehensive income,
     net of tax--Unrealized gains (losses)
     on securities (unaudited)                    (453,903)                                                  (453,903)

   Cash dividends paid ($0.30 per share)                                                       (485,844)
   Employee Stock Ownership Plan
    shares allocated                                                              37,123
   MRP shares allocated                                                           (1,198)
   Options exercised                                                             (64,419)
   Treasury shares purchased                    ----------
   Comprehensive income (unaudited)               ($83,512)
                                                ==========
                                                                ------------------------    ----------------------------
Balances, Mar 31, 2005 (unaudited)                              $22,724      $22,053,744    $18,541,779     ($704,060)
                                                                ========================    ============================

<CAPTION>

                                               Unallocated        Unallocated
                                                   ESOP                MRP          Treasury
                                                  Shares             Shares           Shares             Total
                                               -----------------------------------------------------------------
<S>                                            <C>                 <C>             <C>               <C>
                                               -----------------------------------------------------------------
Balances, June 30, 2004                        ($1,005,199)        ($134,927)      ($9,178,401)      $28,967,765
                                               =================================================================

   Net income                                                                                            395,393
     Other comprehensive income,
     net of tax--Unrealized gains (losses)
     on securities (unaudited)                                                                           760,015

   Cash dividends paid ($0.29 per share)                                                                (472,502)
   Employee Stock Ownership Plan
    shares allocated                                38,648                                                76,124
   MRP shares allocated                                               40,481                              39,283
   Options exercised                                                                    59,907            38,325
   Treasury shares purchased                                                          (437,554)         (437,554)
   Tax benefit of employee
     benefit plans                                                                                       226,600
   Comprehensive income (unaudited)

                                               -----------------------------------------------------------------
Balances, Sept 30, 2004 (unaudited)              ($966,551)         ($94,446)      ($9,556,048)      $29,593,449
                                               =================================================================

   Net income                                                                                            390,195
     Other comprehensive income,
     net of tax--Unrealized gains (losses)
     on securities (unaudited)                                                                          (101,514)

   Employee Stock Ownership Plan
    shares allocated                                38,709                                                75,154
   MRP shares allocated                                               40,481                              39,283
   Options exercised                                                                   192,768           170,383
   Treasury shares purchased                                                          (280,481)         (280,481)
   Comprehensive income (unaudited)

                                               -----------------------------------------------------------------
Balances, Dec 31, 2004 (unaudited)               ($927,842)         ($53,965)      ($9,643,761)      $29,886,469
                                               =================================================================

   Net income                                                                                            370,391
     Other comprehensive income,
     net of tax--Unrealized gains (losses)
     on securities (unaudited)                                                                          (453,903)

   Cash dividends paid ($0.30 per share)                                                                (485,844)
   Employee Stock Ownership Plan
    shares allocated                                38,648                                                75,771
   MRP shares allocated                                               40,481                              39,283
   Options exercised                                                                   218,314           153,895
   Treasury shares purchased                                                          (390,499)         (390,499)
   Comprehensive income (unaudited)

                                               -----------------------------------------------------------------
Balances, Mar 31, 2005 (unaudited)               ($889,194)         ($13,484)      ($9,815,946)      $29,195,563
                                               =================================================================
</TABLE>

See notes to unaudited condensed consolidated financial statements.


                                       4
<PAGE>

                FIRST BANCORP OF INDIANA, INC.
                        AND SUBSIDIARY

         Condensed Consolidated Statements of Income

<TABLE>
<CAPTION>
                                                                   For the                          For the
                                                            Three Months Ended                    Year to Date
                                                                  March 31,                         March 31,
                                                         ----------------------------      ----------------------------
                                                             2005             2004             2005            2004
-------------------------------------------------------------------------------------      ----------------------------
                                                                 (Unaudited)                       (Unaudited)
<S>                                                      <C>              <C>              <C>              <C>
Interest Income
      Loans receivable                                   $ 2,667,673      $ 2,085,189      $ 7,683,518      $ 6,531,625
      Investment securities                                  701,045          547,881        2,212,277        1,158,973
      Deposits with financial institutions                    21,387           14,035           63,345           37,547
      Federal funds sold                                      11,956            1,867           40,283            6,950
      Other interest and dividend income                      29,180           32,252           88,792           87,704
                                                         -----------      -----------      -----------      -----------
          Total interest income                            3,431,241        2,681,224       10,088,215        7,822,799
                                                         -----------      -----------      -----------      -----------

Interest Expense
      Deposits                                             1,048,304          694,667        3,089,326        1,953,272
      Borrowings                                             421,443          459,302        1,212,198        1,371,318
      Other                                                   26,814           25,876           80,442           76,425
                                                         -----------      -----------      -----------      -----------
          Total interest expense                           1,496,561        1,179,845        4,381,966        3,401,015
                                                         -----------      -----------      -----------      -----------

Net Interest Income                                        1,934,680        1,501,379        5,706,249        4,421,784

      Provision for Loan Losses                               60,000           90,000          270,000          136,845
                                                         -----------      -----------      -----------      -----------

Net Interest Income after Provision                        1,874,680        1,411,379        5,436,249        4,284,939

Noninterest Income
      Increase in cash surrender values
         of life insurance                                    54,000           56,477          157,170          175,157
      Net gains on loan sales                                 26,606          147,517          166,864          604,575
      ATM transaction & POS interchange fees                  64,758           44,640          166,569          139,565
      Service charges on deposit accounts                     83,812           82,056          276,315          262,612
      Other Income                                           128,781          192,543          409,214          362,296
                                                         -----------      -----------      -----------      -----------
          Total noninterest income                           357,957          523,233        1,176,132        1,544,205
                                                         -----------      -----------      -----------      -----------

Noninterest Expense
      Salaries and employee benefits                         940,092          952,768        2,699,524        2,823,205
      Net occupancy expense                                   54,708           78,851          204,585          216,050
      Equipment expense                                      128,728          100,715          339,883          270,473
      Amortization of intangible assets                       19,013           19,013           57,038           57,038
      Professional fees                                       41,220           40,505          116,656          128,964
      Advertising                                             56,219           42,138          183,725           91,460
      Data processing fees                                    92,638           89,025          276,465          230,623
      Other expense                                          314,829          248,261          900,844          745,128
                                                         -----------      -----------      -----------      -----------
          Total noninterest expense                        1,647,447        1,571,276        4,778,720        4,562,941
                                                         -----------      -----------      -----------      -----------

Income Before Income Tax                                     585,190          363,336        1,833,661        1,266,203
      Income tax expense                                     214,799           92,466          677,682          383,488
                                                         -----------      -----------      -----------      -----------

Net Income                                               $   370,391      $   270,870      $ 1,155,979      $   882,715
                                                         ===========      ===========      ===========      ===========

      Basic earnings per share                           $      0.25      $      0.18      $      0.77      $      0.60
      Diluted earnings per share                         $      0.24      $      0.17      $      0.74      $      0.57
      Weighted average shares outstanding - Basic          1,502,879        1,478,617        1,503,922        1,471,559
      Weighted average shares outstanding - Diluted        1,560,547        1,561,754        1,567,751        1,556,336
</TABLE>

See notes to unaudited condensed consolidated financial statements


                                       5
<PAGE>

                         FIRST BANCORP OF INDIANA, INC.
                                 AND SUBSIDIARY

                 Condensed Consolidated Statements of Cash Flows

<TABLE>
<CAPTION>
                                                                           Year to Date
                                                                             March 31,
                                                                  -------------------------------
                                                                      2005                2004
                                                                  ------------       ------------
                                                                           (Unaudited)
<S>                                                               <C>                <C>
Net Cash Provided by Operating Activities                         $  2,141,709       $  2,817,614

Investing Activities
   Net change in interest-bearing deposits                             101,044            356,129
   Proceeds from maturities of securities available for sale        12,152,601          7,367,634
   Proceeds from maturities of securities held to maturity           2,523,113          6,986,465
   Purchases of securities available for sale                       (6,055,958)       (52,455,064)
   Net change in loans                                             (26,696,114)        (8,737,622)
   Purchases of premises and equipment                                (937,006)          (123,472)
   Purchase FHLB stock                                                       0           (282,800)
                                                                  ------------       ------------
      Net cash provided (used) by investing activities             (18,912,320)       (46,888,730)
                                                                  ------------       ------------

Financing Activities
   Net change in
      Non-interest bearing, interest-bearing demand
         and savings deposits                                       11,576,139          1,318,032
      Certificates of deposit                                        7,243,600         41,856,497
   Proceeds from issuance of borrowed funds                         20,000,000         18,000,000
   Repayments of long-term debt                                     (2,000,000)                 0
   Repayments of short-term advances                               (18,500,000)       (15,000,000)
   Advances by borrowers for taxes and insurance                       323,254            149,887
   Dividends paid                                                     (958,346)          (899,930)
   Purchase treasury shares                                         (1,108,534)          (421,450)
   Options exercised                                                   362,603            368,394
                                                                  ------------       ------------
      Net cash provided by financing activities                     16,938,716         45,371,430
                                                                  ------------       ------------

Net Change in Cash and Cash Equivalents                                168,106          1,300,314

Cash and Cash Equivalents, Beginning of Period                       8,094,870          4,589,165
                                                                  ------------       ------------

Cash and Cash Equivalents, End of Period                          $  8,262,976       $  5,889,479
                                                                  ============       ============

Additional Cash Flow Information
   Interest paid                                                  $  3,966,458       $  2,988,620
   Income tax paid                                                     520,000            344,000
</TABLE>

See notes to unaudited condensed consolidated financial statements


                                       6
<PAGE>

                  FIRST BANCORP OF INDIANA, INC. AND SUBSIDIARY
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION

      The accompanying condensed consolidated financial statements of First
Bancorp of Indiana, Inc. (the "Company") have been prepared in accordance with
instructions to Form 10-QSB. Accordingly, they do not include all of the
information and footnotes required by accounting principles generally accepted
in the United States of America for complete financial statements. However, such
information reflects all adjustments (consisting solely of normal recurring
adjustments) which are, in the opinion of management, necessary to fairly
present the financial position, results of operations, and cash flows of the
Company. The condensed consolidated balance sheet of the Company as of June 30,
2004, has been derived from the audited consolidated balance sheet of the
Company as of that date. The results of operations for the three and nine months
ended March 31, 2005, are not necessarily indicative of the results to be
expected for the year ending June 30, 2005. The condensed 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,
2004, contained in the Company's annual report to shareholders.

NOTE 2 - EFFECTS OF STOCK OPTIONS

      At March 31, 2005, the Company has a stock-based incentive plan under
which stock options have been granted to selected executives and directors. The
Company accounts for this plan under the recognition and measurement principles
of APB Opinion No. 25, Accounting for Stock Issued to Employees, and related
interpretations. No compensation cost related to this stock-based incentive plan
is reflected in net income, as all options granted under this plan had an
exercise price equal to the market value of the underlying common stock on the
grant date. The following tables illustrate the effects on net income and
earnings per share if the Company had applied the fair value provisions of FASB
Statement No. 123, Accounting for Stock-Based Compensation, to the option
grants.

<TABLE>
<CAPTION>
                                                              Three Months Ended March 31,
                                                                  2005           2004
                                                                --------       --------
<S>                                                             <C>            <C>
Net Income, as reported                                         $370,391       $270,870

Less: Total stock-based employee compensation cost
      determined under the fair value based method, net of
      income taxes                                               (12,438)       (24,488)
                                                                --------       --------

Pro forma net income                                            $357,953       $246,382
                                                                ========       ========

Earnings per share:
Basic - as reported                                             $   0.25       $   0.18
Basic - pro forma                                                   0.24           0.17

Diluted - as reported                                           $   0.24       $   0.17
Diluted - pro forma                                                 0.23           0.16
</TABLE>


                                       7
<PAGE>

<TABLE>
<CAPTION>
                                                                Nine Months Ended March 31,
                                                                   2005             2004
                                                                ----------       ----------
<S>                                                             <C>             <C>
Net Income, as reported                                         $1,155,979       $  882,715

Less: Total stock-based employee compensation cost
      determined under the fair value based method, net of
      income taxes                                                 (37,320)         (73,464)
                                                                ----------       ----------

Pro forma net income                                            $1,118,659       $  809,251
                                                                ==========       ==========

Earnings per share:
Basic - as reported                                             $     0.77       $     0.60
Basic - pro forma                                                     0.74             0.55

Diluted - as reported                                           $     0.74       $     0.57
Diluted - pro forma                                                   0.71             0.52
</TABLE>

NOTE 3 - LONG-TERM DEBT

      The following summarizes the Company's borrowings at March 31, 2005, and
June 30, 2004. Each putable advance is convertible from a fixed-rate to a
variable-rate instrument at the discretion of the Federal Home Loan Bank
contingent upon meeting prescribed strike rates and/or initial lockout periods.
Not reflected in the table below are short-term, variable-rate Federal Home Loan
Bank advances of $4.0 million at March 31, 2005, and $12.5 million at June 30,
2004.

<TABLE>
<CAPTION>
                                                               March 31,         June 30,
                                                                 2005              2004
                                                              -----------      -----------
                                                              (unaudited)
<S>                                                           <C>              <C>
Federal Home Loan Bank putable advances
   Fixed rate of 5.370%, due in February 2011                 $10,000,000      $10,000,000
   Fixed rate of 4.830%, due in July 2011                      10,000,000       10,000,000
   Fixed rate of 2.650%, due in March 2008                      5,000,000        5,000,000
   Fixed rate of 2.100%, due in March 2008                                       5,000,000
   Fixed rate of 3.268%, due in January 2015                    8,000,000

Federal Home Loan Bank converted advance
   Variable rate of 3.140%, due in March 2008                   5,000,000

Federal Home Loan Bank bullet advances
   Fixed rate of 3.05%, due in July 2006                        2,000,000
   Fixed rate of 1.88%, due in May 2005                         2,000,000        2,000,000
   Fixed rate of 1.43%, due in July 2004                                         2,000,000

Federal Home Loan Bank mortgage advance
   Fixed rate of 3.90%, due in May 2005                         1,666,667        1,666,667
                                                              -----------      -----------

     Total Federal Home Loan Bank advances                    $43,666,667      $35,666,667
                                                              ===========      ===========

     Weighted average rate                                          3.972%           3.894%
                                                              ===========      ===========
</TABLE>


                                       8
<PAGE>

NOTE 5 - EARNINGS PER SHARE

      Earnings per share for the quarters ended March 31, 2005, and March 31,
2004, were computed as follows:

<TABLE>
<CAPTION>
                                                           Quarter Ended March 31, 2005
                                                 ----------------------------------------------
                                                                 Weighted-
                                                    Income    Average Shares   Per Share Amount
                                                 ----------------------------------------------
<S>                                              <C>              <C>            <C>
Net income                                       $   370,391
                                                 -----------

Basic earnings per share
Income available to common stockholders          $   370,391      1,502,879      $      0.25
                                                                                 ===========

Effect of dilutive securities
Stock options                                             --         52,015
Unvested MRP shares                                       --          5,653
                                                 -----------    -----------

Diluted earnings per share
Income available to common stockholders and
assumed conversions                              $   370,391      1,560,547      $      0.24
                                                 ===========    ===========      ===========

<CAPTION>
                                                          Quarter Ended March 31, 2004
                                                 ----------------------------------------------
                                                                 Weighted-
                                                    Income    Average Shares   Per Share Amount
                                                 ----------------------------------------------
<S>                                              <C>              <C>            <C>
Net income                                       $   270,870
                                                 -----------

Basic earnings per share
Income available to common stockholders          $   270,870      1,478,617    $      0.18
                                                                               ===========

Effect of dilutive securities
Stock options                                             --         71,275
Unvested MRP shares                                       --         11,862
                                                 -----------    -----------

Diluted earnings per share
Income available to common stockholders and
assumed conversions                              $   270,870      1,561,754    $      0.17
                                                 ===========    ===========    ===========
</TABLE>


                                       9
<PAGE>

      Year-to-date earnings per share were computed as follows:

<TABLE>
<CAPTION>
                                                           Nine Months Ended March 31, 2005
                                                 ------------------------------------------------
                                                                   Weighted-
                                                    Income      Average Shares   Per Share Amount
                                                 ------------------------------------------------
<S>                                              <C>                <C>            <C>
Net income                                       $ 1,155,979
                                                 -----------

Basic earnings per share
Income available to common stockholders          $ 1,155,979        1,503,922      $      0.77
                                                                                   ===========

Effect of dilutive securities
Stock options                                             --           58,183
Unvested MRP shares                                       --            5,646
                                                 -----------      -----------

Diluted earnings per share
Income available to common stockholders and
assumed conversions                              $ 1,155,979        1,567,751      $      0.74
                                                 ===========      ===========      ===========

<CAPTION>
                                                           Nine months Ended March 31, 2004
                                                 ------------------------------------------------
                                                                   Weighted-
                                                    Income      Average Shares   Per Share Amount
                                                 ------------------------------------------------
<S>                                              <C>                <C>            <C>
Net income                                       $   882,715
                                                 -----------

Basic earnings per share
Income available to common stockholders          $   882,715        1,471,559      $      0.60
                                                                                   ===========

Effect of dilutive securities
Stock options                                             --           73,255
Unvested MRP shares                                       --           11,522
                                                 -----------      -----------

Diluted earnings per share
Income available to common stockholders and
assumed conversions                              $   882,715        1,556,336      $      0.57
                                                 ===========      ===========      ===========
</TABLE>

NOTE 5 - RECLASSIFICATIONS

      Certain reclassifications have been made to the condensed consolidated
income statement for the three- and nine-month periods ended March 31, 2004, to
conform to the presentation of the condensed consolidated income statement for
the three- and nine-month periods ended March 31, 2005. These reclassifications
had no effect on earnings.


                                       10
<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; 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 condensed consolidated
financial statements and accompanying notes thereto.

      In order to better serve its customers and community, the Company's
wholly-owned subsidiary, First Federal Savings Bank ("First Federal" or the
"Bank") has acquired property on which it plans to build a new administrative
office and banking center. The new facility will have approximately 22,000
square feet, two drive-through lanes expandable to four, and a 1,350 square foot
multi-purpose room. The total cost of the new facility, including land
acquisition costs, is expected to range between $5.0 million and $5.5 million.
The Bank is in the process of receiving construction bids and has not set a
construction schedule. It is presently expected that the new facility will open
in the first calendar quarter of 2006. The Bank plans to consolidate the
deposits and operations of its current Green River Road branch with the new
banking center. A before-tax gain of between $650,000 and $700,000 is
anticipated upon the disposition of the current Green River Road real property.

COMPARISON OF FINANCIAL CONDITION AT MARCH 31, 2005, AND JUNE 30, 2004

      Total consolidated assets of the Company grew $19.0 million, or 7.2%, to
$283.1 million at March 31, 2005, from $264.1 million at June 30, 2004. This
growth in total assets primarily occurred as proceeds from deposit growth were
used to fund loan growth.

      Cash and cash equivalents, which consist mainly of demand deposits at the
Federal Home Loan Bank of Indianapolis (FHLB), increased $168,000 to $8.3
million during the nine months ended March 31, 2005. During the same period,
certificates of deposit (CDs) with other financial institutions, which are all
fully insured by the FDIC, decreased $101,000 to $843,000.

      Investment securities, excluding investment CDs, decreased 11.3% to $67.0
million at March 31, 2005, from $75.5 million at June 30, 2004. This portfolio
is composed almost entirely of mortgage-related securities and federal agency
notes with the former constituting the vast majority.


                                       11
<PAGE>

      Net loans grew to $189.2 million at March 31, 2005, a $26.5 million
increase from $162.7 million at June 30, 2004, with the consumer loan portfolio
contributing nearly two-thirds of the growth. The consumer loan portfolio
increased 25.2% as a greater than normal share of indirect automobile loan
production was retained due to its favorable yield and interest rate risk
characteristics. During the nine months ended March 31, 2005, indirect loan
production totaled $49.1 million, of which $8.4 million was sold. Consumer loan
retention, which is subject to First Federal's liquidity needs, as well as
internal and regulatory asset diversification limitations, is expected to range
from 30% to 60% of production in the near-term. During the same period, 31.0% of
the $12.0 million in newly originated permanent single family residential
mortgage loans were sold. For the foreseeable future, management intends to
continue building the mortgage loan servicing portfolio through the origination
and sale of loans.

      The allowance for loan losses totaled $1.1 million at March 31, 2005, a
$20,000 reduction from the level at June 30, 2004. The change was composed of
$270,000 in provisions for losses and $290,000 in net charge-offs. The Company's
allowance for loan losses represented 0.56% of total loans at March 31, 2005,
compared to 0.66% at June 30, 2004. Relative to nonperforming loans, the
allowance for loan losses increased to 766.7% at March 31, 2005, from 353.4% at
June 30, 2004. These ratio changes were attributed chiefly to the charge-off of
approximately $153,000 of severely delinquent automobile loans to borrowers that
are under Chapter 13 bankruptcy protection. The entire balance of these loans
had previously been included in the total amount of nonperforming loans and a
specific reserve had been established for the portion of the loans that had been
classified as a loss.

      The table below highlights changes, including the effects of the Chapter
13 loans discussed above, in the Company's nonperforming assets since the most
recent fiscal year end.

<TABLE>
<CAPTION>
                                                        March 31, 2005     June 30,
                                                          (unaudited)        2004
                                                        ==============     ========
<S>                                                         <C>            <C>
Loans accounted for on a nonaccrual basis                   $138,000       $305,000
Accruing loans past due 90 days or more                           --             --
                                                            --------       --------
Nonperforming loans                                         $138,000       $305,000
Real estate owned (net)                                     $      0             --
Other repossessed assets                                    $ 22,000       $ 43,000
                                                            --------       --------
     Total nonperforming assets                             $160,000       $348,000
                                                            ========       ========

Restructured loans                                                --             --

Total loans delinquent 90 days or more to net loans             0.07%          0.19%
Total loans delinquent 90 days or more to total assets          0.05%          0.12%
Total nonperforming assets to total assets                      0.06%          0.13%
</TABLE>

      Total deposits increased $18.9 million to $201.6 million at March 31,
2005, from $182.7 million at June 30, 2004. Deposit growth was the product of a
$7.2 million increase in time deposits, including brokered funds, and an $11.7
million net inflow from non-maturity deposit instruments. Brokered deposits
obtained during the current fiscal year ranged in maturity from 12 to 24 months,
and carry "all-in" rates comparable or favorable to other wholesale funding
sources. Borrowings, which were reduced $500,000 to $47.7 million at March 31,
2005, consisted entirely of FHLB advances. First Federal believes that it has a
substantial amount of excess borrowing capacity under its blanket collateral
agreement with the FHLB.

      At $841,000, escrow balances at March 31, 2005, were 62.4% above the
levels nine months earlier due to a greater volume of loans serviced, together
with seasonal variances. Other liabilities increased $138,000, or 3.8%, during
the most recent nine-month period as numerous accrued expenses and miscellaneous
short-term payables combined to offset the settlement of a liability associated
with the Company's withdrawal from its defined benefit pension plan.


                                       12
<PAGE>

      Total stockholders' equity increased $228,000 to $29.2 million at March
31, 2005, from $29.0 million at June 30, 2004. The most significant components
of the change included $1.2 million of net income, 54,257 shares of First
Bancorp common stock repurchased at a total cost of $1.1 million, semiannual
cash dividends totaling $958,000, and $363,000 received from the exercise of
stock options. Also affecting stockholders' equity were $345,000 in allocations
of ESOP and MRP shares, a $205,000 increase in the net unrealized gain on
securities available for sale, and a $227,000 tax benefit from employee benefit
plans.

COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2005, AND
2004

      GENERAL. Net income for the quarter ended March 31, 2005, increased
$99,000, or 36.5%, to $370,000 from $271,000 for the quarter ended March 31,
2004. Greater net interest income was principally responsible for the improved
earnings. In addition, noninterest revenues declined sharply while noninterest
expenses increased moderately. The annualized return on average assets increased
to 0.53% for the quarter ended March 31, 2005, from 0.48% for the same quarter
last year while the annualized return on average equity improved to 4.99% from
3.61% for the comparative quarters.

      The Company's net spread widened to 2.84% for the quarter ended March 31,
2005, from 2.73% for the quarter ended March 31, 2004. Loan growth during the
interim 12 months had the most significant influence on the spread.

      NET INTEREST INCOME. The Company recognized $1.9 million of net interest
income for the quarter ended March 31, 2005, an increase of $433,000, or 28.9%,
from $1.5 million for the same period in 2004.

      Total interest income increased $750,000 to $3.4 million for the quarter
ended March 31, 2005, from $2.7 million for the same quarter in 2004. Interest
income from loans increased $582,000 between the comparative periods while
interest income from investment securities and other interest-earning assets
increased $168,000. Average loans outstanding increased to $183.8 million with
an average yield of 5.81% for the quarter ended March 31, 2005, from $142.3
million with an average yield of 5.86% for the same period last year. The lower
average yields were a result of the sustained low interest rate environment over
the past twelve months. The average balance of all other interest-earning
assets, predominately mortgage-backed securities and federal agency debentures,
was $77.1 million with an average yield of 3.96% for the quarter ended March 31,
2005, compared to an average balance of $64.0 million and an average yield of
3.73% for the same period in 2004.

      During the quarter ended March 31, 2005, interest expenses totaled $1.5
million, or $317,000 above the $1.2 million recorded during the quarter ended
March 31, 2004. The higher interest expenses were primarily the product of
average deposits increasing to $202.0 million for the quarter ended March 31,
2005, from $144.6 million for the quarter ended March 31, 2004, and the average
cost of those deposits rising to 2.08% from 1.92% for the respective periods.
Also, interest expense on FHLB advances was $421,000 on an average balance of
$43.9 million in the most recent quarter, down from the $459,000 expense on an
average balance of $45.4 million for the like quarter a year ago.

      PROVISION FOR LOAN LOSSES. The provision for loan losses is intended to
establish an allowance adequate to cover losses inherent in the loan portfolio
as of the balance sheet date based upon management's periodic analysis of
information available at that time. The Company recorded $60,000 of provisions
for loan losses in the quarter ended March 31, 2005, compared to $90,000 during
the same quarter last year. Although delinquency and loss trends have stabilized
over the past year, management believes that additional provisions were
warranted given the growing proportion of nonmortgage loans, particularly
consumer loans, added to the Company's portfolio. As discussed earlier, the
Company revised its treatment of seriously delinquent loans to borrowers who
have filed for Chapter 13 bankruptcy protection. Consequently, nonperforming
loans represented just 0.07% of total loans at March 31, 2005, compared to 0.62%
a year earlier. While management believes the allowance for loan losses to be
sufficient given current information, future events, conditions, or regulatory
directives could necessitate additions to the allowance for loan losses that may
adversely affect net income.


                                       13
<PAGE>

      NONINTEREST INCOME. Noninterest income totaled $358,000 for the quarter
ended March 31, 2005, compared to $523,000 for the same period the preceding
year, a decrease of 31.5%. Net gains on loan sales declined $121,000 to $27,000
for the quarter ended March 31, 2005, due to the absence of consumer loan sales.
During the same quarter last year, the Company recorded $123,000 of gains on
$9.9 million of indirect automobile loans sold. ATM and POS fee income rose
45.1% between the comparative quarters due the imposition of an access fee for
non-customer ATM usage. At $129,000, other noninterest income for the quarter
ended March 31, 2005, was 33.1% below the level recorded for the same quarter in
fiscal 2004. Equity in the earnings of the bank's wholly-owned service
corporation along with gains on the sale of assets acquired through repossession
and/or foreclosure were the main contributors to the change.

      NONINTEREST EXPENSE. At $1.6 million for the quarter ended March 31, 2005,
total noninterest expense increased $76,000 from the same quarter a year ago.
Relative to average assets, such expenses decreased to 2.35% from 2.81% on an
annualized basis.

      Salaries and employee benefits totaled $940,000 during the quarter ended
March 31, 2005, compared to $953,000 for the same period in 2004. The reduction
was attributed to the Company's withdrawal from the defined benefit pension plan
effective June 30, 2004. This cost savings was partially offset by the changes
to the Company's 401K employer matching formula together with higher medical
insurance premiums.

      The amortization of intangible assets, which is associated with the two
branches purchased in November 2000, remained unchanged between the comparative
quarters. The $19,000 quarterly expense represents the amortization of the core
deposit component. The core deposit intangible will be fully amortized by
November 2008.

      At $56,000, advertising expenses for the most recent quarter increased
$14,000 over the same period last year. The increase was due to placing greater
emphasis on promoting brand awareness.

      Data processing expenses rose to $93,000 for the most recent quarter, a
4.1% increase from the same quarter a year ago. Greater activity, higher
maintenance fees, and expenses associated with the growth of online banking were
responsible for the increase. Net occupancy and equipment expenses totaled
$183,000 for the quarter ended March 31, 2005, compared to $180,000 for the same
quarter in fiscal 2004 as higher software leasing and licensing fees offset
reduced property tax accrual.

      Other noninterest expenses increased $67,000 to $315,000 for the quarter
ended March 31, 2005, compared to $248,000 during the same period in 2004. The
increase was distributed among numerous expense categories.

      INCOME TAXES. Total income tax expense was $215,000 for the quarter ended
March 31, 2005, compared to $92,000 for the same period last fiscal year.
Effective tax rates for the quarters ended March 31, 2005 and 2004 approximated
36.7% and 25.4%, respectively. The expiration of low income housing tax credits
was partially responsible for the higher effective rate.

COMPARISON OF OPERATING RESULTS FOR THE NINE MONTHS ENDED MARCH 31, 2005, AND
2004

      GENERAL. At $1.2 million, net income for the nine months ended March 31,
2005, was $273,000 or 30.9% above the $883,000 for the nine months ended March
31, 2004. Higher net interest income more than offset reduced noninterest income
and increased noninterest expenses.

      The Company's interest rate spread narrowed to 2.83% for the nine months
ended March 31, 2005, from 2.91% for the nine months ended March 31, 2004.
However, improved leverage of the Company's strong capital position resulted in
substantially greater net interest income as evidenced by the return on average
equity which improved to an annualized 5.23% for the nine months ended March 31,
2005, from 3.93% for the same period in fiscal 2004. The return on average
assets decreased slightly to 0.56% from 0.57% for the respective nine months
periods.

      NET INTEREST INCOME. Net interest income for the nine months ended March
31, 2005, increased $1.3 million to $5.7 million from $4.4 million for the same
timeframe in fiscal 2004.


                                       14
<PAGE>

      Total interest income increased $2.3 million during the nine months ended
March 31, 2005, to $10.1 million from $7.8 million. Interest income on loans
grew $1.2 million while interest income from investment securities and deposits
from other financial institutions, including Fed funds sold, added a combined
$1.1 million. In addition, dividends on FHLB and FNMA stock improved $1,000.
Average loans outstanding increased to $176.1 million with an average yield of
5.82% for the nine months ended March 31, 2005, from $142.6 million with an
average yield of 6.11% for the same period the preceding fiscal year. The
average yield on investment securities rose to 4.10% for the nine months ended
March 31, 2005, from 3.87% for the same period in fiscal 2004. Similarly, the
combined yield on deposits with financial institutions and Fed funds sold
increased to 2.31% from 1.51%. The average aggregate balance of investment
securities and deposits with financial institutions, including fed funds sold,
grew to $78.0 million from $43.9 million for the respective periods. This growth
was attributed to a strategy initiated last fiscal year to better leverage the
Company's strong capital position.

      The higher interest revenue was partly offset by a $981,000 increase in
interest expenses. For the nine months ended March 31, 2005, total interest
expense increased to $4.4 million compared to $3.4 million for the nine months
ended March 31, 2004. Average deposits grew significantly to $198.5 million for
the nine months ended March 31, 2005, from $128.6 million for the same period in
fiscal 2004. The average cost of deposits rose slightly to 2.08% from 2.03%.
Interest expense on borrowings from the Federal Home Loan Bank was $1.2 million
during the first three quarters of fiscal 2005 compared to $1.4 for the same
period one year ago on average borrowings of $42.9 million and $43.7 million,
respectively.

      PROVISION FOR LOAN LOSSES. The provision for loan losses is intended to
establish an allowance adequate to cover losses inherent in the loan portfolio
as of the balance sheet date based upon management's periodic analysis of
information available at that time. The Company recorded $270,000 of provisions
for loan losses in the nine months ended March 31, 2005, compared to $137,000
during the same period last year. The prior year's provision was net of a
recapture related to the sale of loans for which allowances had been provided
previously. Although delinquency and loss trends have stabilized over the past
year, management believes that additional provisions were warranted given the
growing proportion of nonmortgage loans, particularly consumer loans, added to
the Company's portfolio.

      During the first three quarters of fiscal 2005, the Company revised its
treatment of seriously delinquent loans to borrowers who have filed for Chapter
13 bankruptcy protection. Consequently, net charge-offs increased to $290,000
through the first nine months of fiscal 2005 versus $195,000 for the first three
quarters of fiscal 2004. The current year charge-off total includes $153,000
related to the revised treatment. Nonperforming loans, which are net of any
principal charged-off, represented just 0.07% of total loans at March 31, 2005,
compared to 0.62% a year earlier. While management believes the allowance for
loan losses to be sufficient given current information, future events,
conditions, or regulatory directives could necessitate additions to the
allowance for loan losses that may adversely affect net income.

      NONINTEREST INCOME. Noninterest income declined to $1.2 million for the
nine months ended March 31, 2005, from $1.5 million for the same period the
prior year. Gains on loan sales, which decreased to $167,000 from $605,000 for
the respective nine-month periods, were primarily responsible for the decline.
The cash surrender value of bank-owned life insurance added $157,000 over the
first nine months of fiscal 2005, a $18,000 decrease from the same period in
fiscal 2004. These reductions were partially offset by greater service charges
on deposit accounts, ATM/POS fees, and miscellaneous lending-related service
fees.

      NONINTEREST EXPENSE. At $4.8 million, total noninterest expense for the
nine months ended March 31, 2005, increased $216,000 from the same period the
preceding year. Due to balance sheet growth, noninterest expenses decreased to
an annualized 2.31% of average assets over the past three quarters from 2.96%
during the same span last fiscal year.

      Salaries and employee benefits totaled $2.7 million during the first three
quarters of fiscal 2005 compared to $2.8 million for the same period in fiscal
2004. The reduction was attributed to the Company's withdrawal from the defined
benefit pension plan effective June 30, 2004. In addition to the ongoing cost
savings associated with the withdrawal, the Company reduced by $61,000 the
corresponding liability established in fiscal 2004 and settled in the current
fiscal year. The cost savings was partially offset by the changes to the
Company's 401K employer matching formula.


                                       15
<PAGE>

      The amortization of intangible assets, which is associated with the two
branches purchased in November 2000, remained unchanged between the comparative
nine-month periods. The $57,000 expense for both periods represents the
amortization of the core deposit component. The core deposit intangible will be
fully amortized by November 2008.

      Data processing expenses climbed to $276,000 for the most recent
nine-month period, a 19.9% increase from the same period a year ago. Greater
activity, higher maintenance fees, and expenses associated with the growth of
online banking were responsible for the increase.

      Equipment expenses increased 25.9% to $340,000 through the first three
quarters of fiscal 2005 from $270,000 over the same period last fiscal year. The
higher level of expenses was due mainly to software leasing and licensing fees.

      At $184,000, advertising expenses over the past three quarters were
$92,000 higher than the same period last year. The increase was due to greater
emphasis placed on promoting brand awareness.

      Other noninterest expenses increased $156,000 to $901,000 for the nine
months ended March 31, 2005, compared to $745,000 during the same period in
fiscal 2004. The increase was distributed among numerous expense categories.

      INCOME TAXES. Total income tax expense was $678,000 for the nine months
ended March 31, 2005, compared to $383,000 for the same period the preceding
fiscal year. The effective tax rates for the nine-month periods ended March 31,
2005 and 2004, respectively, were 37.0% and 30.3%. The expiration of low income
housing tax credits was partially responsible for the higher effective rate.

LIQUIDITY AND CAPITAL RESOURCES

      Federal regulations require First Federal to maintain liquidity
commensurate with safe and sound operations. Such liquidity may include both
existing assets and access to reliable funding sources. To this end, First
Federal maintains 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 March 31,
2005, bank-only cash and cash equivalents totaled $7.6 million, or 2.7% of total
assets. First Federal also had marketable securities, including investment CDs,
totaling $67.9 million, of which, 88.6% were classified "available for sale." At
the same time, First Federal had net commitments to fund loans, including loans
in process, of $5.0 million.

      Retail certificates of deposit scheduled to mature in one year or less
totaled $44.8 million. Based upon historical experience, management believes the
majority of maturing certificates of deposit will remain with First Federal.
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 FHLB advances to fund
deposit withdrawals. This could result in an increase in interest expense to the
extent that the average rate paid on such advances generally exceeds the average
rate paid on retail deposits of similar duration.

      Management believes its ability to generate funds internally will satisfy
its liquidity needs. However, should First Federal require funds beyond its
ability to generate them internally, it has the ability to borrow funds from the
Federal Home Loan Bank. Based on eligible collateral, First Federal had
approximately $29.6 million remaining available to borrow under its credit
arrangement with the FHLB as of March 31, 2005.


                                       16
<PAGE>

      Office of Thrift Supervision regulations require First Federal to maintain
specific amounts of capital. As of March 31, 2005, First Federal exceeded its
minimum capital requirements as the following table illustrates.

<TABLE>
<CAPTION>
                                                                      Regulatory Minimum      Well Capitalized per
                                                    Actual             Required Capital          12 CFR Part 565
                                              --------------------------------------------------------------------
                                               Amount     Ratio      Amount        Ratio       Amount        Ratio
                                              --------------------------------------------------------------------
                                                                   (Dollars in Thousands)
<S>                                            <C>        <C>        <C>           <C>         <C>          <C>
As of March 31, 2005 (unaudited)
--------------------------------
   Total capital (to risk weighted assets)     $26,957    13.01%     $16,582       8.00%       $20,737      10.00%
   Tier I capital (to risk weighted assets)     26,025    12.56        8,291       4.00         12,437       6.00
   Tier I capital (to adjusted total assets)    26,025     9.25       11,250       4.00         14,063       5.00

As of June 30, 2004
-------------------
   Total capital (to risk weighted assets)     $26,787    15.09%     $14,200       8.00%       $17,750      10.00%
   Tier I capital (to risk weighted assets)     25,869    14.57        7,100       4.00         10,650       6.00
   Tier I capital (to adjusted total assets)    25,869     9.85       10,504       4.00         13,130       5.00
</TABLE>

      The Company's second stock repurchase program was announced on February
19, 2004, to acquire up to 166,175 or 10% of the outstanding shares. This
repurchase program, as with the previous program, has been undertaken to enhance
shareholder value and to provide liquidity for the otherwise thinly traded
shares. The repurchase programs generally have been conducted through open
market purchases, although unsolicited negotiated transactions or other types of
repurchases have been considered. As of March 31, 2005, 149,526 shares had been
repurchased under the current program leaving 16,649 to be purchased.

      The following chart summarizes stock repurchase activity during the most
recent quarter.

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                                                            Total Number of       Maximum Number of
                                                                          Shares Purchased as    Shares that May Yet
                                  Total Number of       Average Price      Part of Publicly      Be Purchased Under
            Period                Shares Purchased     Paid per Share       Announced Plan            the Plan
----------------------------------------------------------------------------------------------------------------------
<S>                                      <C>                 <C>                   <C>                    <C>
January 1, 2005 through                       0                  0                      0                 35,699
January 31, 2005
----------------------------------------------------------------------------------------------------------------------

February 1, 2005 through                 10,240              20.45                 10,240                 25,459
February 28, 2005
----------------------------------------------------------------------------------------------------------------------

March 1, 2005 through                     8,810              20.53                  8,810                 16,649
March 31, 2005
----------------------------------------------------------------------------------------------------------------------

Total                                    19,050              20.49                 19,050
----------------------------------------------------------------------------------------------------------------------
</TABLE>

CRITICAL ACCOUNTING POLICIES

      ALLOWANCE FOR LOAN LOSSES. The allowance for loan losses is established
through a provision for loan losses charged to earnings at the time losses are
estimated to have occurred. Loan losses are charged against the allowance when
management believes the uncollectibility of a loan balance is confirmed.
Subsequent recoveries, if any, are credited to the allowance.

      The allowance for loan losses is evaluated on a regular basis by
management and is based upon management's periodic review of the collectibility
of the loans in light of historical experience, the nature and volume of the
loan portfolio, adverse situations that may affect the borrower's ability to
repay, estimated value of any underlying collateral and prevailing economic
conditions. This evaluation is inherently subjective as it requires estimates
that are susceptible to significant revision as more information becomes
available.


                                       17
<PAGE>

      A loan is considered impaired when, based on current information and
events, it is probable that the Bank will be unable to collect the scheduled
payments of principal or interest when due according to the contractual terms of
the loan agreement. Factors considered by management in determining impairment
include payment status, collateral value and the probability of collecting
scheduled principal and interest payments when due. Loans that experience
insignificant payment delays and payment shortfalls generally are not classified
as impaired.

      Management determines the significance of payment delays and payment
shortfalls on a case-by-case basis, taking into consideration all of the
circumstances surrounding the loan and the borrower, including the length of the
delay, the reasons for the delay, the borrower's prior payment record and the
amount of the shortfall in relation to the principal and interest owed.
Impairment is measured on a loan-by-loan basis for commercial and construction
loans by either the present value of expected future cash flows discounted at
the loan's effective interest rate, the loan's obtainable market price or the
fair value of the collateral if the loan is collateral dependent.

      Large groups of smaller balance homogenous loans are collectively
evaluated for impairment. Accordingly, the Bank does not separately identify
individual consumer and residential loans for impairment disclosures.

RECENT ACCOUNTING PRONOUNCEMENTS

      In December, 2004, the Financial Accounting Standards Board (FASB) issued
an amendment to SFAS 123 Accounting for Stock-Based Compensation (SFAS 123R)
which eliminates the ability to account for share-based compensation
transactions using Accounting Principles Board Opinion No. 25, Accounting for
Stock Issued to Employees, and generally requires that such transactions be
accounted for using a fair value-based method. SFAS 123R will be effective for
the Company beginning January 1, 2006. SFAS 123R applies to all awards granted
after the required effective date and to awards modified, repurchased, or
cancelled after that date as well as for the unvested portion of awards existing
as of the effective date. The cumulative effect of initially applying this
Statement, if any, is recognized as of the required effective date.

      As of the required effective date, the Company will apply SFAS 123R using
a modified version of prospective application. Under that transition method,
compensation cost is recognized on or after the required effective date for the
portion of outstanding awards for which the requisite service has not yet been
rendered, based on the grant-date fair value of those awards calculated under
SFAS 123 for either recognition or pro forma disclosures. For periods before the
required effective date, a company may elect to apply a modified version of
retrospective application under which financial statements for prior periods are
adjusted on a basis consistent with the pro forma disclosures required for those
periods by SFAS 123.

      We are currently evaluating the effect of the recognition and measurement
provisions of SFAS 123R but we currently believe the adoption of SFAS 123R will
not result in a material impact on the Company's results of operations or
financial condition.

ITEM 3.
CONTROLS AND PROCEDURES

      The Company's management, including the Company's principal executive
officer and principal financial officer, have evaluated the effectiveness of the
Company's "disclosure controls and procedures," as such term is defined in Rule
13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended,
(the "Exchange Act"). Based upon their evaluation, the principal executive
officer and principal financial officer concluded that, as of the end of the
period covered by this report, the Company's disclosure controls and procedures
were effective for the purpose of ensuring that the information required to be
disclosed in the reports that the Company files or submits under the Exchange
Act with the Securities and Exchange Commission (the "SEC") (1) is recorded,
processed, summarized and reported within the time periods specified in the
SEC's rules and forms, and (2) is accumulated and communicated to the Company's
management, including its principal executive and principal financial officers,
as appropriate to allow timely decisions regarding required disclosure. In
addition, based on that evaluation, no change in the Company's internal control
over financial reporting occurred during the quarter ended March 31, 2005 that
has materially affected, or is reasonably likely to materially affect, the
Company's internal control over financial reporting.


                                       18
<PAGE>

                           PART II. OTHER INFORMATION

ITEM 1.
LEGAL PROCEEDINGS.

      Periodically, there have been various claims and lawsuits involving the
Company and 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 the Company's and First Federal's legal counsel, no
significant loss is expected from any of such pending claims or lawsuits.
Neither the Company nor First Federal is a party to any material pending legal
proceedings.

ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

      See "Liquidity and Capital Resources" in Part I for information regarding
stock repurchase activity during the quarter.

ITEM 3.
DEFAULTS UPON SENIOR SECURITIES.

None.

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

None.

ITEM 5.
OTHER INFORMATION.

None.

ITEM 6.
EXHIBITS.

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.


                                       19
<PAGE>

                                   SIGNATURES

      In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                         FIRST BANCORP OF INDIANA, INC.

Dated: May 13, 2005                 By: /s/ Michael H. Head
                                    --------------------------------------------
                                    Michael H. Head
                                    President and Chief Executive Officer
                                    (principal executive officer)


Dated: May 13, 2005                 By: /s/ George J. Smith
                                    --------------------------------------------
                                    George J. Smith
                                    Treasurer and Chief Financial Officer
                                    (principal financial and accounting officer)