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, 2000

                                       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:  2,122,856 shares of common
stock, par value $0.01 per share, were outstanding as of February 7, 2001.

<PAGE>

                  FIRST BANCORP OF INDIANA, INC. AND SUBSIDIARY

                                    FORM 10-Q

                     FOR THE QUARTER ENDED DECEMBER 31, 2000

                                      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                              5
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                                               12
Item 6.   Exhibits and Reports on Form 8-K                                12


<PAGE>

                       FIRST BANCORP OF INDIANA, INC.
                                AND SUBSIDIARY
                          Consolidated Balance Sheet

<TABLE>
<CAPTION>
                                                              December 31, 2000     June 30, 2000
--------------------------------------------------------------------------------------------------
               (Unaudited)
Assets
<S>                                                               <C>                <C>
    Cash and due from banks                                       $ 3,915,543        $ 1,448,002
    Interest-bearing demand deposits                               10,938,339          3,590,492
    Federal funds sold                                              1,127,000          1,355,000
                                                               ---------------    ---------------
        Total cash and cash equivalents                            15,980,882          6,393,494
    Interest-bearing deposits                                         891,000          1,188,000
    Investment securities
      Available for sale                                            8,195,025          8,541,057
      Held to maturity                                             45,837,863         38,492,081
                                                               ---------------    ---------------
        Total investment securities                                54,032,888         47,033,138
    Loans                                                          92,482,852         66,773,042
    Allowance for loan losses                                        (587,654)          (395,638)
                                                               ---------------    ---------------
        Net loans                                                  91,895,198         66,377,404
    Premises and equipment                                          3,218,184          1,647,253
    Goodwill and core deposit intangibles                           2,445,664                  0
    Federal Home Loan Bank stock                                      727,400            727,400
    Other assets                                                    4,388,829          4,115,537
                                                               ---------------    ---------------
        Total assets                                            $ 173,580,045      $ 127,482,226
                                                               ===============    ===============

Liabilities
    Deposits
     Non-interest bearing                                         $ 3,678,969          $ 673,479
     Interest bearing                                             127,869,268         85,300,789
                                                               ---------------    ---------------
        Total deposits                                            131,548,237         85,974,268
    Borrowings                                                      5,000,000          5,000,000
    Advances by borrowers for
      taxes and insurance                                             401,787            339,217
    Other liabilities                                               1,493,237          1,257,094
                                                               ---------------    ---------------
        Total liabilities                                         138,443,261         92,570,579
                                                               ---------------    ---------------

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                                     21,846,628         21,841,913
    Retained earnings                                              16,911,890         16,472,853
    Accumulated other comprehensive income                            120,980             30,699
                                                               ---------------    ---------------
                                                                   38,902,222         38,368,189

    Less:
    Unallocated employee stock ownership plan
    shares -- 151,492 and 166,642 shares                           (1,546,514)        (1,623,809)
    Treasury stock, at cost -- 149,544 and 107,344 shares          (1,478,177)        (1,006,511)
    Unallocated MRP shares -- 78,773 and 90,896 shares               (740,747)          (826,222)
                                                               ---------------    ---------------
    Total stockholders' equity                                     35,136,784         34,911,647
                                                               ---------------    ---------------
        Total liabilities and stockholders' equity              $ 173,580,045      $ 127,482,226
                                                               ===============    ===============
</TABLE>

See notes to unaudited consolidated financial statements

                                       1
<PAGE>

                 FIRST BANCORP OF INDIANA, INC.
                        AND SUBSIDIARY

               Consolidated Statement of Income

<TABLE>
<CAPTION>
                                                                              For the                            For the
                                                                        Three Months Ended                   Six Months Ended
                                                                            December 31,                        December 31,
                                                                --------------------------------  ----------------------------------
                                                                      2000           1999              2000              1999
------------------------------------------------------------------------------------------------  --------------------------------
                                                                  (Unaudited)                       (Unaudited)

Interest Income

<S>                                                                  <C>            <C>               <C>             <C>
    Loans receivable                                                 $ 1,660,077    $ 1,231,682       $ 3,030,267     $ 2,387,633
    Investment securities                                                855,740        708,650         1,651,223       1,416,974
    Deposits with financial institutions                                 202,621         92,934           346,878         245,415
    Federal funds sold                                                    10,562          8,587            22,697          17,664
    Other interest and dividend income                                    15,576         14,667            31,151          29,335
                                                                ----------------- --------------  ----------------  --------------
        Total interest income                                          2,744,576      2,056,520         5,082,216       4,097,021
                                                                ----------------- --------------  ----------------  --------------

Interest Expense

    Deposits                                                           1,424,815        962,692         2,534,091       1,964,193
    Borrowings                                                            82,609              0           165,217               0
    Other                                                                 17,264         14,417            34,528          28,834
                                                                ----------------- --------------  ----------------  --------------
        Total interest expense                                         1,524,688        977,109         2,733,836       1,993,027
                                                                ----------------- --------------  ----------------  --------------

Net Interest Income                                                    1,219,888      1,079,411         2,348,380       2,103,994
                                                                ----------------- --------------  ----------------  --------------

    Provision for Loan Losses                                            234,000         49,342           279,000          94,342
                                                                ----------------- --------------  ----------------  --------------

Net Interest Income after Provision                                      985,888      1,030,069         2,069,380       2,009,652

Noninterest Income
    Increase in cash surrrender values
       of life insurance                                                  22,974         24,048            45,948          48,096
    Net gains (losses) on loan sales                                     137,070        150,346           268,005         304,997
    Gain on sale of land                                                 388,924              0           388,924               0
    Other Income                                                         116,628         51,227           195,845          92,289
                                                                ----------------- --------------  ----------------  --------------
        Total noninterest income                                         665,596        225,621           898,722         445,382
                                                                ----------------- --------------  ----------------  --------------

Noninterest Expense

    Salaries and employee benefits                                       680,086        525,178         1,244,844         936,093
    Net occupancy expense                                                 50,805         49,346            93,306          94,069
    Equipment expense                                                     80,876         52,693           144,547          97,306
    Deposit insurance expense                                              5,379         12,807             9,775          29,060
    Data processing fees                                                  50,138         21,434            85,109          52,134
    Other expense                                                        273,108        290,355           513,459         505,483
                                                                ----------------- --------------  ----------------  --------------
        Total noninterest expense                                      1,140,392        951,813         2,091,040       1,714,145
                                                                ----------------- --------------  ----------------  --------------

Income Before Income Tax                                                 511,092        303,877           877,062         740,889
    Income tax expense                                                   169,201         93,173           283,976         240,461
                                                                ----------------- --------------  ----------------  --------------

Net Income                                                             $ 341,891      $ 210,704         $ 593,086       $ 500,428
                                                                ================= ==============  ================  ==============

    Basic earnings per share                                              $ 0.18         $ 0.10            $ 0.31          $ 0.24
    Diluted earnings per share                                            $ 0.18         $ 0.10            $ 0.31          $ 0.24
    Weighted average number shares outstanding - Basic                 1,892,428      2,103,994         1,899,384       2,117,126
    Weighted average number shares outstanding - Diluted               1,933,019      2,103,994         1,936,649       2,117,126
</TABLE>

See notes to unaudited consolidated financial statements

                                       2
<PAGE>

                         FIRST BANCORP OF INDIANA, INC.
                                 AND SUBSIDIARY

               Consolidated Statement of Changes in Equity Capital

<TABLE>
<CAPTION>
                                            Common Stock
                                        ----------------------  Additional
                                          Shares                 Paid-in        Comprehensive    Retained
                                        Outstanding  Amount      Capital           Income        Earnings
                                        ---------------------------------------------------------------------
<S>                                       <C>         <C>        <C>            <C>              <C>
Balances, June 30, 2000                   2,272,400   $22,724    $21,841,913                     $16,472,853

   Net income                                                                       $251,195         251,195
     Other comprehensive income,
     net of tax--Unrealized losses on
     securities (unaudited)                                                           38,241
                                                                                -------------
   Comprehensive income (unaudited)                                                 $289,436
                                                                                =============
   Cash dividends paid ($0.08 per share)                                                            (154,049)
   Employee Stock Ownership Plan
    shares allocated                                                   2,784
   MRP shares allocated                                               (1,264)
   Treasury shares purchased
                                        -------------------------------------                  --------------
Balances, Sept. 30, 2000 (unaudited)      2,272,400   $22,724    $21,843,433                     $16,569,999
                                        =====================================                  ==============


   Net income                                                                       $341,891         341,891
     Other comprehensive income,
     net of tax--Unrealized losses on
     securities (unaudited)                                                           52,040
                                                                                -------------
   Comprehensive income (unaudited)                                                 $393,931
                                                                                =============
   Employee Stock Ownership Plan
    shares allocated                                                   4,459
   MRP shares allocated                                               (1,264)
   Treasury shares purchased
                                        -------------------------------------                  --------------
Balances, Dec. 31, 2000 (unaudited)       2,272,400   $22,724    $21,846,628                     $16,911,890
                                        =====================================                  ==============

<CAPTION>

                                                  Accumulated
                                                    Other         Unallocated   Unallocated
                                                 Comprehensive      ESOP           MRP         Treasury
                                                    Income         Shares         Shares        Shares         Total
                                             ---------------------------------------------------------------------------
<S>                                                 <C>         <C>              <C>         <C>            <C>
Balances, June 30, 2000                             $30,699     ($1,623,809)     ($826,222)  ($1,006,511)   $34,911,647

   Net income                                                                                                   251,195
     Other comprehensive income,
     net of tax--Unrealized losses on
     securities (unaudited)                          38,241                                                      38,241

   Comprehensive income (unaudited)

   Cash dividends paid ($0.08 per share)                                                                       (154,049)
   Employee Stock Ownership Plan
    shares allocated                                                 38,647                                      41,431
   MRP shares allocated                                                             42,738                       41,474
   Treasury shares purchased                                                                    (285,125)      (285,125)
                                             ---------------------------------------------------------------------------
Balances, Sept. 30, 2000 (unaudited)                $68,940     ($1,585,162)     ($783,484)  ($1,291,636)   $34,844,814
                                             ===========================================================================


   Net income                                                                                                   341,891
     Other comprehensive income,
     net of tax--Unrealized losses on
     securities (unaudited)                          52,040                                                      52,040

   Comprehensive income (unaudited)

   Employee Stock Ownership Plan
    shares allocated                                                 38,648                                      43,107
   MRP shares allocated                                                             42,737                       41,473
   Treasury shares purchased                                                                    (186,541)      (186,541)
                                             ---------------------------------------------------------------------------
Balances, Dec. 31, 2000 (unaudited)                $120,980     ($1,546,514)     ($740,747)  ($1,478,177)   $35,136,784
                                             ===========================================================================
</TABLE>

                                       3
<PAGE>

                            FIRST BANCORP OF INDIANA
                                 AND SUBSIDIARY

                      Consolidated Statement of Cash Flows

<TABLE>
<CAPTION>
                                                                             Year to Date
                                                                             December 31,
                                                                 ------------------------------------
                                                                       2000               1999
                                                                 ------------------ -----------------
                                                                    (Unaudited)
<S>                                                                     <C>                 <C>
Net Cash Provided by Operating Activities                               $1,067,566          $985,490

Investing Activities
   Net change in interest-bearing deposits                                 297,000           396,000
   Proceeds from maturities of securities available for sale               518,610         1,272,861
   Purchases of securities held to maturity                            (15,456,621)      (13,520,594)
   Proceeds from maturities of securities held to maturity               8,101,884        12,618,912
   Net change in loans                                                 (25,796,794)       (6,097,172)
   Purchases of premises and equipment                                  (1,695,070)           42,032
   Acquisition of deposits (net of cash acquired)                       (2,460,011)                0
                                                                 ------------------ -----------------
     Net cash used by investing activities                             (36,491,002)       (5,287,961)
                                                                 ------------------ -----------------

Financing Activities
   Net change in
     Non-interest bearing, interest-bearing demand
       and savings deposits                                             15,657,692          (682,026)
     Certificates of deposit                                            29,916,277        (2,958,715)
     Advances by borrows for taxes and insurance                            62,570            52,961
   Refunded conversion expenses                                                  0            20,816
   Purchase of ESOP shares                                                       0          (980,411)
   Purchase treasury shares                                               (471,666)                0
   Dividends paid                                                         (154,049)                0
                                                                 ------------------ -----------------
       Net cash provided (used) by financing activities                 45,010,824        (4,547,375)
                                                                 ------------------ -----------------

Net Change in Cash and Cash Equivalents                                  9,587,388        (8,849,846)

Cash and Cash Equivalents, Beginning of Period                           6,393,494        16,698,123
                                                                 ------------------ -----------------

Cash and Cash Equivalents, End of Period                               $15,980,882        $7,848,277
                                                                 ================== =================

Additional Cash Flow Information
   Interest paid                                                        $2,489,521        $1,942,313
   Income tax paid                                                         233,100           441,319
</TABLE>

   See notes to unaudited consolidated financial statements

                                       4
<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, 2000
are not necessarily indicative of the results to be expected for the year ending
June 30, 2001. 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,  2000,  contained  in the  Company's  annual
report to shareholders.

2.   BRANCH OPENINGS

     First Federal Savings Bank ("First Federal"),  a wholly owned subsidiary of
the Company,  opened a new office  located in  Newburgh,  Indiana on November 6,
2000. As of December 31, 2000, the Newburgh location accounted for approximately
$4.1 million in customer deposits.  On November 18, 2000, First Federal acquired
two existing  offices in Evansville,  Indiana from Old National Bank. The assets
included $22.7 million in loans,  $9.3 million of cash, $1.0 million of real and
personal  property,  $1.9 million of goodwill and $0.5 million of  deposit-based
intangibles.  Goodwill is being amortized using the straight-line method over 25
years and the  deposit-based  intangibles are being amortized over 7 years using
an accelerated  method.  The liabilities  consisted of $35.1 million of customer
deposits and $0.3 million of miscellaneous liabilities,  consisting primarily of
accrued interest on deposits and escrows.

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.

                                        5

<PAGE>

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, 2000 AND JUNE 30, 2000

     Total  consolidated  assets of the Company  increased  $46.1  million  from
$127.5  million at June 30, 2000 to $173.6  million at December 31, 2000.  First
Federal opened a new office location in Newburgh,  Indiana during November 2000.
Also,  in  November  2000,  First  Federal  acquired  two  existing  offices  in
Evansville, Indiana from Old National Bank. First Federal acquired approximately
$35.1 million in deposits and $22.7 million in loans as part of the transaction.
In  conjunction  with the  opening  of the  three  new  offices,  First  Federal
developed  a  commercial  lending  department  that  began  processing  loans in
November 2000.

     Cash and cash equivalents, which are primarily comprised of demand deposits
at the Federal Home Loan Bank of Indianapolis (FHLB),  increased by $9.6 million
from $6.4 million at June 30, 2000 to $16.0 million at December 31, 2000.  First
Federal  received  approximately  $9.3 million in cash from Old National Bank as
part of the acquisition of the two existing offices in Evansville,  Indiana.  In
addition to the deposits  acquired from Old National Bank,  First Federal had an
inflow of deposits of approximately $10.4 million. The increase in cash and cash
equivalents is the result of higher  liquidity needs associated with having both
a larger loan and deposit base and the additional liquidity  requirements needed
to meet the demands of commercial loan and commercial checking customers.

     Investment securities increased $7.0 million from $47.0 million at June 30,
2000 to $54.0  million at December 31, 2000.  This  increase was  primarily  the
result of management's  effort to increase  interest income by investing  excess
cash into higher yielding investment securities.

     Net loans grew $25.5  million from $66.4  million at June 30, 2000 to $91.9
million at December 31, 2000.  This increase was primarily  attributable  to the
$14.3 million in mortgage loans, $3.6 million in consumer loans, $3.2 million in
credit line equity loans and $1.6 million in commercial  loans acquired with the
acquisition of two existing  offices from Old National  Bank.  First Federal has
always  been a strong  mortgage  lender and  continues  to expand  its  consumer
lending  operation.  In addition,  First  Federal has formed a  commercial  loan
department,  which began operations in November 2000.  During the period,  First
Federal  originated  $21.3  million  of  indirect  automobile  loans of which it
retained $5.1 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.

     The allowance for loan losses  increased  from $396,000 at June 30, 2000 to
$588,000 at December 31, 2000.  The ratios of the  Company's  allowance for loan
losses to total  loans were 0.64% and 0.59% at  December  31,  2000 and June 30,
2000, respectively. During that same period, the Company's non-performing assets
increased from $112,000 to $139,000.  The ratios of the Company's  allowance for
loan losses to total  nonperforming  loans were  593.94% and 465.88% at December
31, 2000 and June 30, 2000, respectively.

     Total deposits  increased $45.5 million from $86.0 million at June 30, 2000
to $131.5  million at December  31,  2000.  The  increase in total  deposits was
primarily  attributable  to the $35.1  million  in  deposits  acquired  with the
acquisition  of two existing  offices in  Evansville,  Indiana from Old National
Bank.  The new branch office  opened in Newburgh,  Indiana added $4.1 million to
total deposits  while  interest  added to accounts  totaled $2.4 million for the
period.  The balance of the  increase  was  primarily  the result of  aggressive
pricing for deposits.

     Other liabilities  increased $236,000 from $1.3 million at June 30, 2000 to
$1.5 million at December 31, 2000.  This increase was primarily  attributable to
an increase in accrued  interest  payable on deposits  resulting from the larger
deposit base compared to June 30, 2000.

                                        6

<PAGE>

     Total  stockholders'  equity increased  $225,000 from $34.9 million at June
30, 2000 to $35.1  million at December 31,  2000.  This  increase was  primarily
attributable to net income of $593,000. Also increasing stockholders' equity was
an increase of $90,000 in net unrealized gains on securities  available for sale
and a  $168,000  allocation  of ESOP and MRP  shares.  Decreasing  stockholders'
equity were a $154,000  dividend to  shareholders  and, in  accordance  with its
stock repurchase program, the purchase of First Bancorp stock totaling $472,000.

COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2000 AND
1999

     GENERAL.  Net income for the quarter  ended  December  31,  2000  increased
$131,000 or 62.1% from  $211,000  for the  quarter  ended  December  31, 1999 to
$342,000  for  the  quarter  ended   December  31,  2000.   This  was  primarily
attributable to increases in noninterest  income and net interest income,  which
were partially  offset by an increase in noninterest  expense and an increase in
the provision for loan losses. As a result of its acquisition and branch growth,
the Company also had a larger amount of interest-earning assets compared to last
year. The Company's net interest rate spread  decreased  slightly from 2.56% for
the quarter ended  December 31, 1999 to 2.52% for the quarter ended December 31,
2000.  The return on average  assets  increased  to 0.89% for the quarter  ended
December  31, 2000  compared to 0.70% for the same  quarter  during 1999 and the
return on average  equity was 3.92% for the  quarter  ended  December  31,  2000
compared to 2.35% for the same quarter during 1999.

     NET INTEREST INCOME. Net interest income for the quarter ended December 31,
2000 increased  $140,000 from $1.1 million during the quarter ended December 31,
1999 to $1.2 million for the quarter ended December 31, 2000.

     The increase in net interest income was attributable to a $688,000 increase
in total  interest  income from $2.1 million for the quarter ended  December 31,
1999 to $2.7  million  for the same  quarter  during  2000.  This  increase  was
primarily  the result of a $428,000  increase in interest  income from loans,  a
$147,000 increase in interest income from investment securities,  and a $110,000
increase in interest income from deposits with financial  institutions.  Average
loans outstanding  increased to $78.3 million with an average yield of 8.48% for
the quarter  ended  December 31, 2000 from $60.6 with an average  yield of 8.13%
for the same period in the prior year.  For the quarter ended December 31, 2000,
the average  balance of  investment  securities  outstanding  increased to $49.1
million  and  the  average  balance  of  deposits  with  financial  institutions
increased  to  $12.1  million  compared  to  $45.1  million  and  $6.8  million,
respectfully,  for the same  period in 1999.  The  average  yield on  investment
securities  increased from 6.29% to 6.97% and the average yield on deposits with
financial  institutions  increased  from  5.44% to 6.71% for the  quarter  ended
December 31, 2000 as compared to the same period in 1999.

     The increase in interest income was partially offset by a $548,000 increase
in interest expense from $1.0 million during the quarter ended December 31, 1999
to $1.5 million for the quarter ended December 31, 2000.  This was primarily the
result of average  deposits  increasing from $83.2 million for the quarter ended
December 31, 1999 to $110.0 million for the quarter ended December 31, 2000, and
the average cost of those deposits  increasing  from 4.63% to 5.18% for the same
respective  periods.  In addition,  interest expense on borrowings from the FHLB
was $83,000 compared to none for the same period one year ago.

     PROVISION  FOR LOAN LOSSES.  The  provision for loan losses for the quarter
ended December 31, 2000 was $234,000 compared to $49,000 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, 2000 were
$48,000 compared to $25,000 for the same period last year.

                                        7

<PAGE>

     NONINTEREST  INCOME.  Noninterest  income totaled  $666,000 for the quarter
ended  December  31, 2000  compared to $226,000 for the same period in the prior
year,  an increase of $440,000.  The increase was  primarily  attributable  to a
pretax gain of $389,000  on the sale of  property  First  Federal had held for a
possible future branch location. The property being held by First Federal was in
close  proximity to one of the offices  acquired  from Old National Bank and was
therefore  no  longer  needed.  The  increase  in  noninterest  income  was also
attributable  to a $66,000  increase in other income to $117,000 for the quarter
ended  December 31, 2000 as compared to $51,000 for the quarter  ended  December
31,  1999.  The  increase  in other  income  occurred  primarily  in service and
overdraft fees on deposit accounts,  delinquency fees, and insurance sales fees.
These  increases  were  partially  offset by a decline in fee  income  generated
through the sale of consumer loans into the secondary  market as compared to the
same quarter ended December 31, 1999.

     NONINTEREST  EXPENSE.  Total noninterest  expense increased to $1.1 million
for the quarter  ended  December  31, 2000 as compared to $952,000  for the same
period in 1999, an increase of $188,000.  Salaries and employee benefits totaled
$680,000  during the quarter ended December 31, 2000,  which was $155,000 higher
than the $525,000 recorded during the same period in 1999. Approximately $41,000
of the increase in salaries and employee  benefits expense is a result of awards
made under the First Bancorp of Indiana,  Inc. 1999  Stock-Based  Incentive Plan
that was  approved  by  shareholders  at the annual  meeting in  November  1999.
Compensation  expense is also approximately  $78,000 higher for the three months
ended December 31, 2000 due to increased  staffing levels as First Federal began
commercial  lending  operations  and the operation of three new branches  during
November 2000.  Retirement and medical  expenses were also higher by $29,000 and
$4,000,  respectively,  for the quarter ended  December 31, 2000. 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.

     Equipment  expense increased  $28,000,  to $81,000 during the quarter ended
December 31, 2000 as compared to $53,000 during the same period last year.  This
increase was  primarily  the result of increased  depreciation.  During the past
year,  First  Federal  added three  branches,  upgraded  three ATM  machines and
continued  to invest in and upgrade  equipment  to enhance  data  communications
within and  between  offices.  First  Federal  also  invested in  equipment  and
software to automate the loan approval and underwriting process.

     Data processing  expenses increased $29,000,  to $50,000 during the quarter
ended  December 31, 2000 as compared to $21,000 for the same period in 1999.  At
December 31, 2000, First Federal was operating seven full service offices,  with
over 13,300  deposit  accounts  and over 4,400 loan  accounts,  compared to four
offices,  7,700  deposit  accounts and 2,600 loan accounts at December 31, 1999.
During that same period,  First Federal also added a commercial  loan department
and  expanded  its  deposit   servicing  area.  The  combination  of  additional
locations,  increased  customer base, and additional  expenses incurred by First
Federal  in  converting  data for the two  branches  it  acquired  in  November,
accounted for the increase in data processing expense.

     The above  increases were partially  offset by a $17,000  decrease in other
noninterest  expense and a $7,000 decrease in deposit  insurance  expense during
the quarter ended  December 31, 2000 as compared to the same period in 1999. The
decrease in other noninterest  expense was primarily due to lower legal fees for
the quarter ending December 31, 2000 as compared to the same period in 1999. For
the quarter ended December 31, 1999, First Federal incurred legal and other fees
in settlement of a lawsuit in connection  with the  acquisition  of the indirect
lending  department.  The  reduction in legal fees was  partially  offset by the
amortization  of  intangibles of $14,000 for the quarter ended December 31, 2000
as compared to none for the same period last year.

     INCOME  TAXES.  Total income tax expense was $169,000 for the quarter ended
December 31, 2000, compared to $93,000 for the same period in 1999. The increase
is  attributable to increased  taxable  income.  The effective tax rates for the
quarters ended December 31, 2000 and 1999 were 33.1% and 30.6%.

                                        8

<PAGE>

COMPARISON OF OPERATING  RESULTS FOR THE SIX MONTHS ENDED  DECEMBER 31, 2000 AND
1999

     GENERAL.  Net income for the six months ended  December 31, 2000  increased
$93,000 or 18.6% from  $500,000  for the six months  ended  December 31, 1999 to
$593,000  for the six  months  ended  December  31,  2000.  This  was  primarily
attributable  to increases in noninterest  income and net interest  income.  The
Company's net interest rate spread increased from 2.42% for the six months ended
December  31, 1999 to 2.49% for the six months ended  December  31,  2000.  As a
result of its  acquisition  and branch  growth,  the  Company  also had a larger
amount of  interest-earning  assets compared to last year. The return on average
assets was 0.84% for the six months ended  December  31, 2000  compared to 0.81%
for the same period  during 1999 and the return on average  equity was 3.40% for
the six months  ended  December  31, 2000  compared to 2.78% for the same period
during 1999.

     NET INTEREST INCOME.  Net interest income for the six months ended December
31,  2000  increased  $244,000  from $2.1  million  during the six months  ended
December 31, 1999 to $2.3 million for the same period ended December 31, 2000.

     The increase in net interest income was attributable to a $985,000 increase
in total interest income from $4.1 million for the six months ended December 31,
1999 to $5.1  million  for the  same  period  during  2000.  This  increase  was
primarily the result of a $643,000  increase in interest income from loans and a
$234,000 increase in interest income from investment  securities.  Average loans
outstanding  increased to $72.4  million with an average  yield of 8.37% for the
six months ended December 31, 2000 from $59.2 with an average yield of 8.07% for
the same  period in the  prior  year.  The  increase  in  interest  income  from
investment  securities  was primarily due to a higher average yield of 6.95% for
the six months ended  December 31, 2000 as compared to 6.20% for the same period
in 1999. The higher  average  yields were a result of a higher rate  environment
for the six months  ended  December  31,  2000 as compared to the same period in
1999.

     The  increase in net  interest  income was  partially  offset by a $741,000
increase in  interest  expense  from $2.0  million  during the six months  ended
December 31, 1999 to $2.7  million for the six months  ended  December 31, 2000.
This was the result of average  deposits  increasing  from $84.6 million for the
six months  ended  December  31, 1999 to $99.1  million for the six months ended
December 31, 2000, and the average cost of those deposits  increasing from 4.64%
to 5.12% for the same  respective  periods.  In  addition,  interest  expense on
borrowings  from the FHLB was  $165,000  as compared to none for the same period
one year ago.

     PROVISION FOR LOAN LOSSES. The provision for loan losses for the six months
ended December 31, 2000 was $279,000  compared to $94,000 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 period 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, 2000
were $87,000 compared to $35,000 for the same period last year.

     NONINTEREST INCOME.  Noninterest income totaled $899,000 for the six months
ended  December  31, 2000  compared to $445,000 for the same period in the prior
year,  an increase of $454,000.  The increase was  primarily  attributable  to a
pretax gain of $389,000  on the sale of  property  First  Federal had held for a
possible future branch location. The property being held by First Federal was in
close  proximity to one of the offices  acquired  from Old National Bank and was
therefore  no  longer  needed.  The  increase  in  noninterest  income  was also
attributable  to a $104,000  increase in other  income to  $196,000  for the six
months  ended  December 31, 2000 as compared to $92,000 for the six months ended
December 31, 1999. The increase in other income occurred

                                        9

<PAGE>

primarily in service and overdraft fees on deposit  accounts,  delinquency fees,
and insurance sales fees.  These increases were partially offset by a decline in
fee income  generated  through  the sale of  consumer  loans into the  secondary
market as compared to the same period ended December 31, 1999.

     NONINTEREST  EXPENSE.  Total noninterest  expense increased to $2.1 million
for the six months  ended  December 31, 2000 as compared to $1.7 million for the
same period in 1999,  an increase of $377,000.  Salaries  and employee  benefits
totaled $1.2 million  during the six months ended  December 31, 2000,  which was
$309,000  higher  than the  $936,000  recorded  during the same  period in 1999.
Approximately  $83,000 of the increase in salaries and employee benefits expense
is a result of  awards  made  under the First  Bancorp  of  Indiana,  Inc.  1999
Stock-Based  Incentive  Plan that was  approved  by  shareholders  at the annual
meeting in November 1999.  Compensation  expense is also approximately  $129,000
higher for the six months  ended  December  31, 2000 due to  increased  staffing
levels as First Federal began commercial lending operations and the operation of
three new branches during the period.  Retirement and medical expenses were also
higher by $51,000 and $14,000,  respectively,  for the six months ended December
31, 2000 as compared to the same period last year.  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.

     Equipment  expense  increased  $48,000,  to $145,000  during the six months
ended December 31, 2000 as compared to $97,000 during the same period last year.
This  increase was primarily  the result of increased  depreciation.  During the
past year,  First Federal added three branches,  upgraded three ATM machines and
continued  to invest in and upgrade  equipment  to enhance  data  communications
within and  between  offices.  First  Federal  also  invested in  equipment  and
software to automate the loan approval and underwriting process.

     Data processing  expenses increased $33,000,  to $85,000 for the six months
ended  December 31, 2000 as compared to $52,000 for the same period in 1999.  At
December 31, 2000, First Federal was operating seven full service offices,  with
over 13,300  deposit  accounts  and over 4,400 loan  accounts,  compared to four
offices,  7,700  deposit  accounts and 2,600 loan accounts at December 31, 1999.
During that same period,  First Federal also added a commercial  loan department
and  expanded  its  deposit   servicing  area.  The  combination  of  additional
locations,  increased  customer base, and additional  expenses incurred by First
Federal  in  converting  data for the two  branches  it  acquired  in  November,
accounted for the increase in data processing expense.

     Other  noninterest  expense  increased  $8,000,  to $513,000 during the six
months ended December 31, 2000 as compared to $505,000 during the same period in
1999.  This was  primarily  attributable  to a $25,000  increase in  advertising
expense,  a $17,000  increase in office supply expense,  and various other small
increases  in  several  noninterest  expense   categories.   In  addition,   the
amortization  of  intangibles  was $14,000 for the six months ended December 31,
2000 as compared to none for the same  period last year.  The  increase in other
noninterest  expense was partially offset by lower legal fees for the six months
ending  December  31, 2000 as  compared to the same period in 1999.  For the six
months ended December 31, 1999,  First Federal  incurred legal and other fees in
settlement  of a lawsuit in  connection  with the  acquisition  of the  indirect
lending department.

     INCOME  TAXES.  Total  income tax expense was  $284,000  for the six months
ended  December 31, 2000,  compared to $240,000 for the same period in 1999. The
increase is  attributable to increased  taxable income.  The effective tax rates
for the six months ended December 31, 2000 and 1999 were 32.4% and 32.4%.

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,
during the quarter ended  December 31, 2000, was 4% of the average daily balance
of its net withdrawable savings deposits and short-term borrowings.  At December
31,  2000,  First  Federal's  liquidity  ratio,  defined  as liquid  assets as a
percentage of net withdrawable savings deposits and short-term  borrowings,  was
30.6%.

                                       10

<PAGE>

     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, 2000, cash and cash equivalents  totaled $16.0
million,  or 9.2% of total  assets.  At December  31,  2000,  First  Federal had
commitments  to fund loans of $7.1 million.  At the same time,  certificates  of
deposit which are scheduled to mature in one year or less totaled $61.6 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, 2000,  First  Federal had  approximately  $10.0
million  remaining  available  to it under its  borrowing  arrangement  with the
Federal Home Loan Bank. At December 31, 2000,  First Federal had $5.0 million of
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, 2000,  First Federal
exceeded its minimum capital requirements.

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,  2000,  management  anticipates  there  has been no
material change from the information disclosed in the Company's annual report to
shareholders'  at June 30,  2000.  The most  recent  interest  rate  sensitivity
analysis  measures  First  Bancorp's  interest  rate risk at September 30, 2000.
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, 2000.

                                       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 9,
2000.  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 three-year
     term:

                                            Vote For          Vote Withheld

         Michael H. Head                    1,780,053           101,425
         James L. Will, Jr.                 1,780,453           101,025

2.   The  appointment  of Olive LLP as  auditors  for the Company for the fiscal
     year ending June 30, 2001 was  ratified by  stockholders  by the  following
     vote:

              For 1,821,661         Against 14,817           Abstain 45,000


ITEM 5. OTHER INFORMATION.

None.

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

a.   Exhibits

     None

b.   Forms 8-K

     No Forms 8-K were filed during the quarter ended December 31, 2000.

                                       12

<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 12, 2001        By: /s/ Harold Duncan
                                   ---------------------------------
                                   Harold Duncan
                                   Chief Executive Officer
                                   and Chairman of the Board
                                   (principal executive officer)

Dated: February 12, 2001        By: /s/ Christopher A. Bengert
                                   ---------------------------------
                                   Christopher A. Bengert
                                   Treasurer
                                   (principal financial and accounting officer)


                                       13