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 September 30, 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)


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

                                 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:  2,139,056 shares of common
stock, par value $0.01 per share, were outstanding as of November 1, 2000.


<PAGE>



                  FIRST BANCORP OF INDIANA, INC. AND SUBSIDIARY

                                    FORM 10-Q

                    FOR THE QUARTER ENDED SEPTEMBER 30, 2000

                                      INDEX

                                                                          Page
Part I    Financial Information
Item 1.   Consolidated Financial Statements                                 2
Item 2.   Management's Discussion and Analysis of Financial Condition
          and Results of Operations                                         6
Item 3.   Quantitative and Qualitative Disclosures about Market Risk       10

Part II   Other Information
Item 1.   Legal Proceedings                                                11
Item 2.   Changes in Securities and Use of Proceeds                        11
Item 3.   Defaults Upon Senior Securities                                  11
Item 4.   Submission of Matters to a Vote of Security Holders              11
Item 5.   Other Information                                                11
Item 6.   Exhibits and Reports on Form 8-K                                 11



                                       1
<PAGE>
                         FIRST BANCORP OF INDIANA, INC.
                                AND SUBSIDIARY
                          Consolidated Balance Sheet

<TABLE>
<CAPTION>
                                                                                September 30, 2000     June 30, 2000
---------------------------------------------------------------------------------------------------------------------
                                                                                      (Unaudited)
<S>                                                                                   <C>                <C>
Assets
    Cash and due from banks                                                           $ 1,606,416        $ 1,448,002
    Interest-bearing demand deposits                                                    8,813,313          3,590,492
    Federal funds sold                                                                  1,070,000          1,355,000
                                                                               -------------------  -----------------
        Total cash and cash equivalents                                                11,489,729          6,393,494
    Interest-bearing deposits                                                           1,089,000          1,188,000
    Investment securities
      Available for sale                                                                8,414,300          8,541,057
      Held to maturity                                                                 37,383,257         38,492,081
                                                                               -------------------  -----------------
        Total investment securities                                                    45,797,557         47,033,138
    Loans                                                                              67,432,859         66,773,042
    Allowance for loan losses                                                            (401,560)          (395,638)
                                                                               -------------------  -----------------
        Net loans                                                                      67,031,299         66,377,404
    Premises and equipment                                                              2,092,436          1,647,253
    Federal Home Loan Bank stock                                                          727,400            727,400
    Other assets                                                                        4,431,259          4,115,537

                                                                               -------------------  -----------------
        Total assets                                                                $ 132,658,680      $ 127,482,226
                                                                               ===================  =================

Liabilities
    Deposits
     Non-interest bearing                                                               $ 862,230          $ 673,479
     Interest bearing                                                                  89,697,415         85,300,789
                                                                               -------------------  -----------------
        Total deposits                                                                 90,559,645         85,974,268
    Borrowings                                                                          5,000,000          5,000,000
    Advances by borrowers for
      taxes and insurance                                                                 532,414            339,217
    Other liabilities                                                                   1,721,807          1,257,094
                                                                               -------------------  -----------------
        Total liabilities                                                              97,813,866         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                                                         21,843,433         21,841,913
    Retained earnings                                                                  16,569,999         16,472,853
    Accumulated other comprehensive income                                                 68,940             30,699
                                                                               -------------------  -----------------
                                                                                       38,505,096         38,368,189

    Less:
    Unallocated employee stock ownership plan shares                                   (1,585,162)        (1,623,809)
    Treasury stock                                                                     (1,291,636)        (1,006,511)
    Unallocated MRP shares                                                               (783,484)          (826,222)

                                                                               -------------------  -----------------
    Total stockholders' equity                                                         34,844,814         34,911,647

                                                                               -------------------  -----------------
        Total liabilities and stockholders' equity                                  $ 132,658,680      $ 127,482,226
                                                                               ===================  =================
</TABLE>


    See notes to unaudited consolidated financial statements

                                       2


<PAGE>

                         FIRST BANCORP OF INDIANA, INC.
                                 AND SUBSIDIARY

                        Consolidated Statement of Income
<TABLE>
<CAPTION>
                                                                                For the
                                                                           Three Months Ended
                                                                              September 30,
                                                                  --------------------------------------
                                                                        2000                1999
--------------------------------------------------------------------------------------------------------
                                                                     (Unaudited)
<S>                                                                     <C>                 <C>
Interest Income
    Loans receivable                                                    $ 1,370,190         $ 1,150,982
    Investment securities                                                   795,483             708,325
    Deposits with financial institutions                                    144,257             152,481
    Federal funds sold                                                       12,135               9,077
    Other interest and dividend income                                       15,575              19,581
                                                                  ------------------  ------------------
        Total interest income                                             2,337,640           2,040,446
                                                                  ------------------  ------------------

Interest Expense
    Deposits                                                              1,109,275           1,001,501
    Borrowings                                                               82,608                   0
    Other                                                                    17,264              14,417
                                                                  ------------------  ------------------
        Total interest expense                                            1,209,147           1,015,918
                                                                  ------------------  ------------------

Net Interest Income                                                       1,128,493           1,024,528
                                                                  ------------------  ------------------

    Provision for Loan Losses                                                45,000              45,000
                                                                  ------------------  ------------------

Net Interest Income after Provision                                       1,083,493             979,528

Noninterest Income
    Increase in cash surrrender values
       of life insurance                                                     22,974              24,048
    Net gains on loan sales                                                 130,935             154,652
    Other Income                                                             79,217              41,116
                                                                  ------------------  ------------------
        Total noninterest income                                            233,126             219,816
                                                                  ------------------  ------------------

Noninterest Expense
    Salaries and employee benefits                                          564,758             410,916
    Net occupancy expense                                                    42,501              44,723
    Equipment expense                                                        63,671              44,612
    Deposit insurance expense                                                 4,397              16,253
    Data processing fees                                                     34,971              30,700
    Other expense                                                           240,350             215,129
                                                                  ------------------  ------------------
        Total noninterest expense                                           950,648             762,333
                                                                  ------------------  ------------------

Income Before Income Tax                                                    365,971             437,011
    Income tax expense                                                      114,776             147,287
                                                                  ------------------  ------------------

Net Income                                                                $ 251,195           $ 289,724
                                                                  ==================  ==================

    Basic earnings per share                                                 $ 0.13              $ 0.14
    Diluted earnings per share                                               $ 0.13              $ 0.14
    Weighted average number shares outstanding - Basic                    1,906,341           2,130,257
    Weighted average number shares outstanding - Diluted                  1,940,279           2,130,257

</TABLE>


See notes to unaudited consolidated financial statements


                                       3


<PAGE>


                         FIRST BANCORP OF INDIANA, INC.
                                 AND SUBSIDIARY

               Consolidated Statement of Changes in Equity Capital

<TABLE>
<CAPTION>

                                              Common Stock                                                             Accumulated
                                         ------------------------    Additional                                           Other
                                            Shares                    Paid-in       Comprehensive     Retained        Comprehensive
                                          Outstanding     Amount      Capital          Income         Earnings            Income
                                         -------------------------------------------------------------------------------------------

<S>                                         <C>          <C>        <C>               <C>             <C>                <C>
Balances, June 30, 2000                     2,272,400    $22,724    $21,841,913                       $16,472,853        $30,699

   Net income                                                                          $251,195           251,195
     Other comprehensive income,
     net of tax--Unrealized losses on
     securities (unaudited)                                                              38,241                           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        $68,940
                                         =======================================                  ==================================
</TABLE>



<TABLE>
<CAPTION>

                                          Unallocated     Unallocated
                                             ESOP             MRP          Treasury
                                            Shares           Shares         Shares         Total
                                        -----------------------------------------------------------

<S>                                       <C>              <C>          <C>            <C>
Balances, June 30, 2000                   ($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


   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)       ($1,585,162)     ($783,484)   ($1,291,636)   $34,844,814
                                        ===========================================================
</TABLE>


                                       4



<PAGE>


                            FIRST BANCORP OF INDIANA
                                 AND SUBSIDIARY

                      Consolidated Statement of Cash Flows

<TABLE>
<CAPTION>
                                                                          Three Months Ended
                                                                             September 30,
                                                                 ------------------------------------
                                                                       2000               1999
                                                                 ------------------ -----------------
                                                                               (Unaudited)
<S>                                                                    <C>                <C>
Net Cash Provided by Operating Activities                                 $530,555        $1,040,175

Investing Activities
   Net change in interest-bearing deposits                                  99,000           396,000
   Proceeds from maturities of securities available for sale               201,047           742,189
   Purchases of securities held to maturity                             (4,057,420)      (10,273,981)
   Proceeds from maturities of securities held to maturity               5,168,884         5,198,525
   Net change in loans                                                    (698,895)       (2,869,137)
   Purchases of premises and equipment                                    (486,336)          (11,860)

                                                                 ------------------ -----------------
     Net cash provided (used) by investing activities                      226,280        (6,818,264)
                                                                 ------------------ -----------------

Financing Activities
   Net change in
     Non-interest bearing, interest-bearing demand
       and savings deposits                                                 32,577           260,835
     Certificates of deposit                                             4,552,800        (1,856,545)
     Advances by borrows for taxes and insurance                           193,197           159,231
   Refunded conversion expenses                                                  0            20,816
   Purchase of ESOP shares                                                       0          (980,411)
   Purchase treasury shares                                               (285,125)                0
   Dividends paid                                                         (154,049)                0

                                                                 ------------------ -----------------
       Net cash provided (used) by financing activities                  4,339,400        (2,396,074)
                                                                 ------------------ -----------------

Net Change in Cash and Cash Equivalents                                  5,096,235        (8,174,163)

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

Cash and Cash Equivalents, End of Period                               $11,489,729        $8,523,960
                                                                 ================== =================

Additional Cash Flow Information
   Interest paid                                                          $748,769          $590,120
   Income tax paid                                                          40,500           135,858

</TABLE>


   See notes to unaudited consolidated financial statements


                                       5

<PAGE>

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

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 months ended  September 30, 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.


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  consolidated  financial
statements and accompanying notes thereto.

                                        6

<PAGE>


COMPARISON OF FINANCIAL CONDITION AT SEPTEMBER 30, 2000 AND JUNE 30, 2000

     Total consolidated assets of the Company increased $5.2 million from $127.5
million at June 30, 2000 to $132.7 million at September 30, 2000. This growth in
assets  occurred  primarily in cash and cash  equivalents  and loans offset by a
decline  in  investment  securities.  The growth in total  assets was  primarily
funded  by  growth  in  total  deposits.  First  Federal  Savings  Bank  ("First
Federal"),  a wholly owned  subsidiary  of the  Company,  will open a new office
location in Newburgh,  Indiana during November 2000.  Also, in July 2000,  First
Federal entered into an agreement to acquire two existing offices in Evansville,
Indiana from Old National  Bank.  First Federal will acquire  approximately  $42
million in deposits and $22 million in loans as part of the transaction.

     Cash and cash equivalents, which are primarily comprised of demand deposits
at the Federal Home Loan Bank of Indianapolis (FHLB),  increased by $5.1 million
from $6.4 million at June 30, 2000 to $11.5 million at September 30, 2000.  This
increase was the result of higher liquidity needs as First Federal increased its
emphasis on both mortgage and consumer lending.

     Investment securities decreased $1.2 million from $47.0 million at June 30,
2000 to $45.8 million at September 30, 2000.  This decline was the result of the
Bank reinvesting a portion of the proceeds from investment  security  maturities
and principal repayments into its mortgage and consumer loan portfolios.

     Net loans  grew  $654,000  from  $66.4  million  at June 30,  2000 to $67.0
million at September  30, 2000.  This  increase is primarily  attributable  to a
$954,000  increase in mortgage  loans,  which grew to $46.6 million at September
30, 2000.  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 will begin  operations by December  2000.
During the quarter, First Federal originated $9.0 million of indirect automobile
loans  of  which  it  retained  $1.0  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
$402,000 at September 30, 2000.  The ratios of the Company's  allowance for loan
losses to total  loans were 0.60% and 0.59% at  September  30, 2000 and June 30,
2000, respectively. During that same period, the Company's non-performing assets
increased from $112,000 to $163,000.  The ratios of the Company's  allowance for
loan losses to total  nonperforming  loans were 355.75% and 465.88% at September
30, 2000 and June 30, 2000, respectively.

     Total  deposits  increased $4.6 million from $86.0 million at June 30, 2000
to $90.6 million at September 30, 2000.  This increase  occurred in certificates
of deposit and was primarily the result of aggressive pricing for deposits.

     Total stockholders' equity decreased $67,000 from $34.9 million at June 30,
2000 to $34.8 million at September 30, 2000. This decline was  attributable to a
$154,000  dividend to shareholders  and, in accordance with its stock repurchase
program,  the purchase of First  Bancorp  stock  totaling  $285,000.  Increasing
stockholders' equity were net income of $251,000,  an increase of $38,000 in net
unrealized gains on securities  available for sale and an $83,000  allocation of
ESOP and MRP shares.

                                        7

<PAGE>


COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000
AND 1999

     GENERAL.  Net income for the quarter  ended  September  30, 2000  decreased
$39,000,  or 13%,  from  $290,000 for the quarter  ended  September  30, 1999 to
$251,000 for the quarter ended September 30, 2000.  This was  attributable to an
increase in  noninterest  expense and was partially  offset by increases in both
net interest and  noninterest  income.  The  Company's  net interest rate spread
increased  from 2.28% for the quarter ended  September 30, 1999 to 2.48% for the
quarter ended September 30, 2000. The return on average assets was 0.77% for the
quarter ended  September 30, 2000 compared to 0.93% for the same quarter  during
1999 and the return on average equity was 2.88% for the quarter ended  September
30, 2000 compared to 3.22% for the same quarter during 1999.

     NET INTEREST  INCOME.  Net interest  income for the quarter ended September
30, 2000 increased $104,000,  or 10%, from $1.0 million during the quarter ended
September 30, 1999 to $1.1 million for the quarter ended September 30, 2000.

     The increase in net interest income was attributable to a $297,000 increase
in total interest  income from $2.0 million for the quarter ended  September 30,
1999 to $2.3  million  for the same  quarter  during  2000.  This  increase  was
primarily the result of a $219,000 increase in interest income from loans and an
$87,000  increase in interest income from investment  securities.  Average loans
outstanding  increased to $66.5  million with an average  yield of 8.24% for the
quarter  ended  September 30, 2000 from $57.9 with an average yield of 7.96% for
the same  period in the  prior  year.  The  increase  in  interest  income  from
investment securities was due to a higher average yield of 6.94% for the quarter
ended  September 30, 2000 as compared to 6.12% for the same period in 1999.  The
higher average yields were a result of a higher rate environment for the quarter
ended September 30, 2000 as compared to the same period in 1999.

     The increase in interest income was partially offset by a $193,000 increase
in interest  expense from $1.0 million  during the quarter  ended  September 30,
1999 to $1.2 million for the quarter  ended  September  30,  2000.  This was the
result of average  deposits  increasing from $86.1 million for the quarter ended
September 30, 1999 to $88.1  million for the quarter  ended  September 30, 2000,
and the average cost of those  deposits  increasing  from 4.66% to 5.03% for the
same respective  periods.  In addition,  interest expense on borrowings from the
FHLB was $83,000 as compared to none for the same period one year ago.

     PROVISION  FOR LOAN LOSSES.  The  provision for loan losses for the quarter
ended  September 30, 2000 was $45,000,  consistent  with 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.  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.

     NONINTEREST  INCOME.  Noninterest  income totaled  $233,000 for the quarter
ended  September  30, 2000 compared to $220,000 for the same period in the prior
year,  an  increase of  $13,000.  The  increase  was  attributable  to a $38,000
increase in other income, which consisted of delinquency fees, ATM fees, service
and overdraft fees, and insurance sales fees. This increase was partially offset
by a decline in fee income generated through the sale of consumer loans into the
secondary market.

                                        8
<PAGE>


     NONINTEREST  EXPENSE.  Total noninterest  expense increased to $951,000 for
the quarter ended September 30, 2000 as compared to $762,000 for the same period
in 1999,  an  increase of  $189,000.  Salaries  and  employee  benefits  totaled
$565,000 during the quarter ended  September 30, 2000,  $154,000 higher than the
$411,000 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  $51,000 higher for the three months
ended  September  30, 2000 due to  increased  staffing  levels as First  Federal
prepared to begin  commercial  lending  operations  and the opening of three new
branches during November 2000.  Retirement and medical expenses were also higher
by $26,000 and $10,000,  respectively, for the quarter ended September 30, 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  $19,000,  to $64,000 during the quarter ended
September 30, 2000 as compared to $45,000 during the same period last year. This
increase was  primarily  the result of increased  depreciation.  During the past
year,  First Federal  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.

     Other noninterest expense increased $25,000, to $240,000 during the quarter
ended September 30, 2000 as compared to $215,000 during the same period in 1999.
This was primarily attributable to a $19,000 increase in advertising expenses as
First Federal took a more aggressive role in marketing its products. The balance
of the  increase  was due to small  increases  in  several  noninterest  expense
categories.

     INCOME  TAXES.  Total income tax expense was $115,000 for the quarter ended
September  30,  2000,  compared  to $147,000  for the same  period in 1999.  The
decrease  is  attributable  to a  lower  taxable  income  for the  quarter.  The
effective  tax rates for the  quarters  ended  September  30, 2000 and 1999 were
31.4% and 33.6%.

LIQUIDITY AND CAPITAL RESOURCES

     Federal  regulations  require  First  Federal to maintain  levels of liquid
assets,  such as cash and  eligible  investments.  The required  percentage  has
varied from time to time based upon economic conditions and savings flows and is
currently  4% of the  average  daily  balance  of its net  withdrawable  savings
deposits and  short-term  borrowings.  At September  30, 2000,  First  Federal's
liquidity  ratio,  defined as liquid assets as a percentage of net  withdrawable
savings deposits and short-term borrowings, was 18.4%.

     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 September 30, 2000, cash and cash equivalents totaled $11.5
million,  or 8.7% of total  assets.  At September  30, 2000,  First  Federal had
commitments  to fund loans of $3.7 million.  At the same time,  certificates  of
deposit which are scheduled to mature in one year or less totaled $38.5 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.

                                        9

<PAGE>


   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 September 30, 2000,  First  Federal had  approximately  $10.0
million  remaining  available  to it under its  borrowing  arrangement  with the
Federal Home Loan Bank. At September 30, 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 September 30, 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  September  30,  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.

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<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.

None.

ITEM 5.
OTHER INFORMATION.

None.

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

a.       Exhibits
     27 - Financial Data Schedule

b.  Forms 8-K
     No Forms 8-K were filed during the quarter ended September 30, 2000.


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<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: November 9, 2000         By:  /s/ Harold Duncan
                                     ----------------------------------------
                                     Harold Duncan
                                     President, Chief Executive Officer
                                     and Chairman of the Board
                                     (principal executive officer)

Dated: November 9, 2000         By:  /s/ Christopher A. Bengert
                                     -----------------------------------------
                                     Christopher A. Bengert
                                     Treasurer
                                    (principal financial and accounting officer)


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