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

| 5001                  Davis Lant Drive, Evansville, Indiana |   | 47715                       |
|-------------------------------------------------------------|--------|-----------------------------|
| (Address                  of principal executive offices)   |   | (Zip                  Code) |

** **

----

|                                                                                              |   | Page   |
|---------------------------------------------------------------------------------------------------|--------|--------|
| Part                I Financial Information                                                       |   |   |
|                                                                                              |   |   |
| Item                1. Financial Statements                                                       |   | 3      |
|                                                                                              |   |   |
| Item                2. Management's Discussion and Analysis or Plan of                Operation   |   | 10     |
|                                                                                              |   |   |
| Item                3. Controls and Procedures                                                    |   | 15     |
|                                                                                              |   |   |
| Part                II Other Information                                                          |   |   |
|                                                                                              |   |   |
| Item                1. Legal Proceedings                                                          |   | 16     |
|                                                                                              |   |   |
| Item                2. Unregistered Sales of Equity Securities and Use of                Proceeds |   | 16     |
|                                                                                              |   |   |
| Item                3. Defaults Upon Senior Securities                                            |   | 16     |
|                                                                                              |   |   |
| Item                4. Submission of Matters to a Vote of Security Holders                        |   | 16     |
|                                                                                              |   |   |
| Item                5. Other Information                                                          |   | 16     |
|                                                                                              |   |   |
| Item                6. Exhibits                                                                   |   | 16     |
|                                                                                              |   |   |
| Signatures                                                                                        |   | 17     |

----

| **FIRST                    BANCORP OF INDIANA, INC.**                           |
|---------------------------------------------------------------------------------|
| **AND****S****UBSIDIARY**                                                       |
| **Condensed                    Consolidated Balance                    Sheets** |

|                                                                |   | **December                    31, 2007** |        | **June                    30, 2007** |   |
|----------------------------------------------------------------|--------|------------------------------------------|-------------|--------------------------------------|--------|
|                                                           |   |  (Unaudited)                        |        |                                 |   |
| **Assets**                                                     |   |                                     |        |                                 |   |
| Cash                    and due from banks                     |   | $                                        | 7,293,396   |                                 | $      | 7,455,076 |   |
| Interest-bearing                    demand deposits            |   |                                     | 5,618,337   |                                 |   | 7,395,910 |   |
| Federal                    funds sold                          |   |                                     | 0           |                                 |   | 0 |   |
| Total                    cash and cash equivalents             |   |                                     | 12,911,733  |                                 |   | 14,850,986 |   |
| Interest-bearing                    deposits                   |   |                                     | 722,168     |                                 |   | 1,616,000 |   |
| Investment                    securities                       |   |                                     |        |                                 |   |   |   |
| Available                    for sale                          |   |                                     | 75,191,472  |                                 |   | 65,120,545 |   |
| Held                    to maturity                            |   |                                     | 14,284,689  |                                 |   | 14,976,789 |   |
| Total                    investment securities                 |   |                                     | 89,476,161  |                                 |   | 80,097,334 |   |
| Loans                                                          |   |                                     | 233,047,979 |                                 |   | 234,301,694 |   |
| Allowance                    for loan losses                   |   |                                     | (1,002,890  | )                                    |   | (1,064,713 | ) |
| Net                    loans                                   |   |                                     | 232,045,089 |                                 |   | 233,236,981 |   |
| Premises                    and equipment                      |   |                                     | 9,163,067   |                                 |   | 9,322,801 |   |
| Goodwill                                                       |   |                                     | 6,229,152   |                                 |   | 6,229,152 |   |
| Core                    deposit intangibles                    |   |                                     | 824,404     |                                 |   | 894,431 |   |
| Federal                    Home Loan Bank stock                |   |                                     | 4,564,700   |                                 |   | 4,564,700 |   |
| Other                    assets                                |   |                                     | 12,359,413  |                                 |   | 12,179,690 |   |
| Total                    assets                                |   | $                                        | 368,295,887 |                                 | $      | 362,992,075 |   |
|                                                           |   |                                     |        |                                 |   |   |   |
| **Liabilities**                                                |   |                                     |        |                                 |   |   |   |
| Deposits                                                       |   |                                     |        |                                 |   |   |   |
| Non-interest                    bearing                        |   | $                                        | 10,728,320  |                                 | $      | 11,503,688 |   |
| Interest                    bearing                            |   |                                     | 217,625,866 |                                 |   | 239,730,019 |   |
| Total                    deposits                              |   |                                     | 228,354,186 |                                 |   | 251,233,707 |   |
| Borrowings                                                     |   |                                     | 99,652,909  |                                 |   | 72,495,874 |   |
| Advances                    by borrowers for                   |   |                                     |        |                                 |   |   |   |
| taxes                    and insurance                         |   |                                     | 608,023     |                                 |   | 695,051 |   |
| Other                    liabilities                           |   |                                     | 5,273,313   |                                 |   | 4,349,605 |   |
| Total                    liabilities                           |   |                                     | 333,888,431 |                                 |   | 328,774,237 |   |
|                                                           |   |                                     |        |                                 |   |   |   |
| **Commitments                    and Contingent Liabilities**  |   |                                     |        |                                 |   |   |   |
|                                                           |   |                                     |        |                                 |   |   |   |
| **Stockholders'                    Equity**                    |   |                                     |        |                                 |   |   |   |
| Preferred                    stock, $.01 par value             |   |                                     |        |                                 |   |   |   |
| Authorized                    and unissued - 1,000,000 shares  |   |                                     |        |                                 |   |   |   |
| Common                    stock, $.01 par value                |   |                                     |        |                                 |   |   |   |
| Authorized                    - 9,000,000 shares               |   |                                     |        |                                 |   |   |   |
| Issued                    - 2,566,346 shares                   |   |                                     | 25,663      |                                 |   | 25,663 |   |
| Additional                    paid-in capital                  |   |                                     | 27,949,977  |                                 |   | 27,959,954 |   |
| Retained                    earnings                           |   |                                     | 18,685,251  |                                 |   | 18,801,944 |   |
| Accumulated                    other comprehensive loss        |   |                                     | (228,457    | )                                    |   | (683,548 | ) |
|                                                           |   |                                     | 46,432,434  |                                 |   | 46,104,013 |   |
| Less:                                                          |   |                                     |        |                                 |   |   |   |
| Unreleased                    employee stock ownership plan    |   |                                     |        |                                 |   |   |   |
| shares                    - 45,442 and 53,020 shares           |   |                                     | (463,884    | )                                    |   | (541,241 | ) |
| Treasury                    stock - 740,031 and 725,445 shares |   |                                     | (11,561,094 | )                                    |   | (11,344,934 | ) |
| Total                    stockholders' equity                  |   |                                     | 34,407,456  |                                 |   | 34,217,838 |   |
|                                                           |   |                                     |        |                                 |   |   |   |
| Total                    liabilities and stockholders' equity  |   | $                                        | 368,295,887 |                                 | $      | 362,992,075 |   |

----

| **FIRST                      BANCORP OF INDIANA, INC.**                                   |
|-------------------------------------------------------------------------------------------|
| **AND****S****UBSIDIARY**                                                                 |
|                                                                                      |
| **Condensed                      Consolidated Statements of                      Income** |

|                                                            |   |  **For                      the******Three                      months Ended **December                      31,****** |      |  **For                      the******Six                      Months  Ended **December                      31,****** |   |
|-----------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------|-----------|---------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                            |   |  **2007**                                                                                                              |      | **2006**                                                                                                                        |   |  **2007** |   |  **2006** |   |
|                                                            |   |  *(Unaudited)*                                                                                                         |      | *(Unaudited)*                                                                                                                   |   |
| **Interest                      Income**                        |   |                                                                                                                        |      |                                                                                                                            |   |   |   |   |   |
| Loans                      receivable                           |   | $                                                                                                                           | 4,051,535 |                                                                                                                            | $      | 3,912,807 |   | $ | 8,091,833 |   | $ | 7,037,448 |   |
| Investment                      securities                      |   |                                                                                                                        | 1,075,078 |                                                                                                                            |   | 967,200 |   |   | 2,071,459 |   |   | 1,797,808 |   |
| Deposits                      with financial institutions       |   |                                                                                                                        | 91,274    |                                                                                                                            |   | 122,430 |   |   | 237,405 |   |   | 162,291 |   |
| Federal                      funds sold                         |   |                                                                                                                        | 0         |                                                                                                                            |   | 0 |   |   | 0 |   |   | 12,311 |   |
| Other                      interest and dividend income         |   |                                                                                                                        | 49,756    |                                                                                                                            |   | 55,489 |   |   | 102,336 |   |   | 99,337 |   |
| Total                      interest income                      |   |                                                                                                                        | 5,267,643 |                                                                                                                            |   | 5,057,926 |   |   | 10,503,033 |   |   | 9,109,195 |   |
|                                                            |   |                                                                                                                        |      |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| **Interest                      Expense**                       |   |                                                                                                                        |      |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| Deposits                                                        |   |                                                                                                                        | 2,309,147 |                                                                                                                            |   | 2,207,574 |   |   | 4,753,049 |   |   | 3,835,707 |   |
| Borrowings                                                      |   |                                                                                                                        | 1,032,629 |                                                                                                                            |   | 868,215 |   |   | 1,971,414 |   |   | 1,657,158 |   |
| Other                                                           |   |                                                                                                                        | 0         |                                                                                                                            |   | 0 |   |   | 0 |   |   | 0 |   |
| Total                      interest expense                     |   |                                                                                                                        | 3,341,776 |                                                                                                                            |   | 3,075,789 |   |   | 6,724,463 |   |   | 5,492,865 |   |
|                                                            |   |                                                                                                                        |      |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| **Net                      Interest Income**                    |   |                                                                                                                        | 1,925,867 |                                                                                                                            |   | 1,982,137 |   |   | 3,778,570 |   |   | 3,616,330 |   |
| Provision                      for loan losses                  |   |                                                                                                                        | 115,000   |                                                                                                                            |   | 100,000 |   |   | 195,000 |   |   | 195,000 |   |
| **Net                      Interest Income after Provision**    |   |                                                                                                                        | 1,810,867 |                                                                                                                            |   | 1,882,137 |   |   | 3,583,570 |   |   | 3,421,330 |   |
| **Noninterest                      Income**                     |   |                                                                                                                        |      |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| Increase                      in cash surrender values          |   |                                                                                                                        |      |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| of                      life insurance                          |   |                                                                                                                        | 50,613    |                                                                                                                            |   | 49,500 |   |   | 100,113 |   |   | 99,000 |   |
| Net                      gains on loan sales                    |   |                                                                                                                        | 48,146    |                                                                                                                            |   | 24,340 |   |   | 75,309 |   |   | 91,840 |   |
| ATM                      transaction & POS interchange fees |   |                                                                                                                        | 81,022    |                                                                                                                            |   | 66,566 |   |   | 155,558 |   |   | 126,777 |   |
| Service                      charges on deposit accounts        |   |                                                                                                                        | 226,659   |                                                                                                                            |   | 108,788 |   |   | 401,881 |   |   | 212,778 |   |
| Other                      income                               |   |                                                                                                                        | 199,510   |                                                                                                                            |   | 209,769 |   |   | 363,313 |   |   | 429,171 |   |
| Total                      noninterest income                   |   |                                                                                                                        | 605,950   |                                                                                                                            |   | 458,963 |   |   | 1,096,174 |   |   | 959,566 |   |
|                                                            |   |                                                                                                                        |      |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| **Noninterest                      Expense**                    |   |                                                                                                                        |      |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| Salaries                      and employee benefits             |   |                                                                                                                        | 1,051,006 |                                                                                                                            |   | 1,059,114 |   |   | 2,079,484 |   |   | 1,985,954 |   |
| Net                      occupancy expense                      |   |                                                                                                                        | 185,092   |                                                                                                                            |   | 170,487 |   |   | 362,592 |   |   | 316,320 |   |
| Equipment                      expense                          |   |                                                                                                                        | 122,172   |                                                                                                                            |   | 100,584 |   |   | 241,980 |   |   | 214,013 |   |
| Amortization                      of intangible assets          |   |                                                                                                                        | 32,722    |                                                                                                                            |   | 40,813 |   |   | 70,027 |   |   | 59,825 |   |
| Professional                      fees                          |   |                                                                                                                        | 71,124    |                                                                                                                            |   | 41,352 |   |   | 107,111 |   |   | 109,254 |   |
| Advertising                                                     |   |                                                                                                                        | 66,183    |                                                                                                                            |   | 53,914 |   |   | 125,619 |   |   | 121,658 |   |
| Data                      processing fees                       |   |                                                                                                                        | 130,194   |                                                                                                                            |   | 111,841 |   |   | 258,213 |   |   | 210,247 |   |
| Other                      expense                              |   |                                                                                                                        | 448,617   |                                                                                                                            |   | 459,153 |   |   | 894,651 |   |   | 842,126 |   |
| Total                      noninterest expense                  |   |                                                                                                                        | 2,107,110 |                                                                                                                            |   | 2,037,258 |   |   | 4,139,677 |   |   | 3,859,397 |   |
|                                                            |   |                                                                                                                        |      |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| **Income                      Before Income Tax**               |   |                                                                                                                        | 309,707   |                                                                                                                            |   | 303,842 |   |   | 540,067 |   |   | 521,499 |   |
| Income                      tax expense                         |   |                                                                                                                        | 61,894    |                                                                                                                            |   | 76,289 |   |   | 103,645 |   |   | 120,275 |   |
| **Net                      Income**                             |   | $                                                                                                                           | 247,813   |                                                                                                                            | $      | 227,553 |   | $ | 436,422 |   | $ | 401,224 |   |
| Basic                      earnings per share                   |   | $                                                                                                                           | 0.14      |                                                                                                                            | $      | 0.13 |   | $ | 0.24 |   | $ | 0.25 |   |
| Diluted                      earnings per share                 |   | $                                                                                                                           | 0.14      |                                                                                                                            | $      | 0.13 |   | $ | 0.24 |   | $ | 0.24 |   |
| Dividends                      declared per share               |   | $                                                                                                                           | -         |                                                                                                                            | $      | - |   | $ | 0.30 |   | $ | 0.30 |   |

----

| **FIRST                      BANCORP OF INDIANA, INC.**                                                           |
|-------------------------------------------------------------------------------------------------------------------|
| **AND                      SUBSIDIARY**                                                                           |
|                                                                                                              |
| **Condensed                      Consolidated Statement of Changes in Stockholders'                      Equity** |

|                                                       |   |   | **Comprehensive****Income** |   |   | **Common****Stock** |   |   | **Additional****Paid-in****Capital** |   |   | **Retained****Earnings** |   |   | **Accumulated****Other****Comprehensive****Income                      / (Loss)** |   |   | **Unallocated****ESOP****Shares** |   |   | **Treasury****Shares** |   |   | **Total**  |   |
|------------------------------------------------------------|--------|--------|-----------------------------|--------|--------|---------------------|--------|--------|--------------------------------------|--------|--------|--------------------------|--------|--------|-----------------------------------------------------------------------------------|--------|--------|-----------------------------------|--------|--------|------------------------|--------|--------|------------|--------|
| **Balances,                      June 30, 2007**           |   |   |                        |   | $      | 25,663              |   | $      | 27,959,954                           |   | $      | 18,801,944               |   |   | ($683,548                                                                         | )      |   | ($541,241                         | )      |   | ($11,344,934           | )      | $      | 34,217,838 |   |
|                                                       |   |   |                        |   |   |                |   |   |                                 |   |   |                     |   |   |                                                                              |   |   |                              |   |   |                   |   |   |       |   |
| Net                      income                            |   | $      | 188,610                     |   |   |                |   |   |                                 |   |   | 188,610                  |   |   |                                                                              |   |   |                              |   |   |                   |   |   | 188,610    |   |
| Other                      comprehensive income,           |   |   |                        |   |   |                |   |   |                                 |   |   |                     |   |   |                                                                              |   |   |                              |   |   |                   |   |   |       |   |
| net                      of tax--Unrealized gains          |   |   |                        |   |   |                |   |   |                                 |   |   |                     |   |   |                                                                              |   |   |                              |   |   |                   |   |   |       |   |
| on                      securities (unaudited)             |   |   | 299,296                     |   |   |                |   |   |                                 |   |   |                     |   |   | 299,296                                                                           |   |   |                              |   |   |                   |   |   | 299,296    |   |
|                                                       |   |   |                        |   |   |                |   |   |                                 |   |   |                     |   |   |                                                                              |   |   |                              |   |   |                   |   |   |       |   |
| Cash                      dividends paid ($0.30 per share) |   |   |                        |   |   |                |   |   |                                 |   |   | (553,116                 | )      |   |                                                                              |   |   |                              |   |   |                   |   |   | (553,116   | )      |
| Employee                      Stock Ownership Plan         |   |   |                        |   |   |                |   |   |                                 |   |   |                     |   |   |                                                                              |   |   |                              |   |   |                   |   |   |       |   |
| shares                      allocated                      |   |   |                        |   |   |                |   |   | 19,733                               |   |   |                     |   |   |                                                                              |   |   | 38,648                            |   |   |                   |   |   | 58,381     |   |
| Treasury                      shares purchased             |   |   |                        |   |   |                |   |   |                                 |   |   |                     |   |   |                                                                              |   |   |                              |   |   | (199,558               | )      |   | (199,558   | )      |
| Options                      exercised                     |   |   |                        |   |   |                |   |   | (28,350                              | )      |   |                     |   |   |                                                                              |   |   |                              |   |   | 68,061                 |   |   | 39,711     |   |
| Comprehensive                      income (unaudited)      |   | $      | 487,906                     |   |   |                |   |   |                                 |   |   |                     |   |   |                                                                              |   |   |                              |   |   |                   |   |   |       |   |
| **Balances,                      September 30, 2007**      |   |   |                        |   | $      | 25,663              |   | $      | 27,951,337                           |   | $      | 18,437,438               |   |   | ($384,252                                                                         | )      |   | ($502,593                         | )      |   | ($11,476,431           | )      | $      | 34,051,162 |   |
|                                                       |   |   |                        |   |   |                |   |   |                                 |   |   |                     |   |   |                                                                              |   |   |                              |   |   |                   |   |   |       |   |
| Net                      income                            |   | $      | 247,813                     |   |   |                |   |   |                                 |   | $      | 247,813                  |   |   |                                                                              |   |   |                              |   |   |                   |   | $      | 247,813    |   |
| Other                      comprehensive income,           |   |   |                        |   |   |                |   |   |                                 |   |   |                     |   |   |                                                                              |   |   |                              |   |   |                   |   |   |       |   |
| net                      of tax--Unrealized gains          |   |   |                        |   |   |                |   |   |                                 |   |   |                     |   |   |                                                                              |   |   |                              |   |   |                   |   |   |       |   |
| on                      securities (unaudited)             |   |   | 155,795                     |   |   |                |   |   |                                 |   |   |                     |   | $      | 155,795                                                                           |   |   |                              |   |   |                   |   |   | 155,795    |   |
|                                                       |   |   |                        |   |   |                |   |   |                                 |   |   |                     |   |   |                                                                              |   |   |                              |   |   |                   |   |   |       |   |
| Employee                      Stock Ownership Plan         |   |   |                        |   |   |                |   |   |                                 |   |   |                     |   |   |                                                                              |   |   |                              |   |   |                   |   |   |       |   |
| shares                      allocated                      |   |   |                        |   |   |                |   | $      | 14,912                               |   |   |                     |   |   |                                                                              |   | $      | 38,709                            |   |   |                   |   |   | 53,621     |   |
| Treasury                      shares purchased             |   |   |                        |   |   |                |   |   |                                 |   |   |                     |   |   |                                                                              |   |   |                              |   |   | ($123,748              | )      |   | (123,748   | )      |
| Options                      exercised                     |   |   |                        |   |   |                |   |   | (16,272                              | )      |   |                     |   |   |                                                                              |   |   |                              |   |   | 39,085                 |   |   | 22,813     |   |
| Comprehensive                      income (unaudited)      |   | $      | 403,608                     |   |   |                |   |   |                                 |   |   |                     |   |   |                                                                              |   |   |                              |   |   |                   |   |   |       |   |
| **Balances,                      December 31, 2007**       |   |   |                        |   | $      | 25,663              |   | $      | 27,949,977                           |   | $      | 18,685,251               |   |   | ($228,457                                                                         | )      |   | ($463,884                         | )      |   | ($11,561,094           | )      | $      | 34,407,456 |   |

| See                      notes to unaudited condensed consolidated financial                      statements. |
|---------------------------------------------------------------------------------------------------------------|

----

| **FIRST                      BANCORP OF INDIANA, INC.**                                       |
|-----------------------------------------------------------------------------------------------|
| **AND****S****UBSIDIARY**                                                                     |
|                                                                                          |
| **Condensed                      Consolidated Statements of Cash                      Flows** |

|                                                                           |   |   | **Year                      to Date****December                      31,** |   |
|--------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------|--------|
|                                                                           |   |   | **2007**                                                                   |   |   | **2006** |   |
|                                                                           |   |   | *(Unaudited)*                                                              |   |
| **Net                      Cash Provided by Operating Activities**             |   | $      | 1,315,754                                                                  |   | $ | 566,659 |   |
|                                                                           |   |   |                                                                       |   |   |   |   |
| **Investing                      Activities**                                  |   |   |                                                                       |   |   |   |   |
| Net                      change in interest-bearing deposits                   |   |   | 893,832                                                                    |   |   | 1,282,186 |   |
| Proceeds                      from maturities of securities available for sale |   |   | 8,465,909                                                                  |   |   | 4,189,550 |   |
| Proceeds                      from maturities of securities held to maturity   |   |   | 679,985                                                                    |   |   | 628,917 |   |
| Purchases                      of securities available for sale                |   |   | (17,753,197                                                                | )      |   | (4,492,686 | ) |
| Net                      change in loans                                       |   |   | 1,161,000                                                                  |   |   | (7,157,199 | ) |
| Purchases                      of premises and equipment                       |   |   | (83,519                                                                    | )      |   | (450,347 | ) |
| Proceeds                      from sales of premises and equipment             |   |   | 6,430                                                                      |   |   | 0 |   |
| Redemption                      of FHLB stock                                  |   |   | 0                                                                          |   |   | 61,600 |   |
| Acquisition                      of bank, net of cash received                 |   |   | 0                                                                          |   |   | (2,024,394 | ) |
| Net                      cash used by investing activities                     |   |   | (6,629,560                                                                 | )      |   | (7,962,373 | ) |
|                                                                           |   |   |                                                                       |   |   |   |   |
| **Financing                      Activities**                                  |   |   |                                                                       |   |   |   |   |
| Net                      change in                                             |   |   |                                                                       |   |   |   |   |
| Non-interest                      bearing, interest-bearing demand             |   |   |                                                                       |   |   |   |   |
| and                      savings deposits                                      |   |   | 4,525,379                                                                  |   |   | (3,771,012 | ) |
| Certificates                      of deposit                                   |   |   | (27,404,900                                                                | )      |   | 17,424,767 |   |
| Proceeds                      from issuance of borrowings                      |   |   | 38,155,000                                                                 |   |   | 0 |   |
| Repayments                      of borrowings                                  |   |   | (11,000,000                                                                | )      |   | (4,500,000 | ) |
| Advances                      by borrowers for taxes and insurance             |   |   | (87,028                                                                    | )      |   | 10,068 |   |
| Dividends                      paid                                            |   |   | (553,116                                                                   | )      |   | (466,378 | ) |
| Purchase                      of treasury shares                               |   |   | (323,306                                                                   | )      |   | (294,356 | ) |
| Options                      exercised                                         |   |   | 62,524                                                                     |   |   | 39,049 |   |
| Net                      cash provided by financing activities                 |   |   | 3,374,553                                                                  |   |   | 8,442,138 |   |
|                                                                           |   |   |                                                                       |   |   |   |   |
| **Net                      Change in Cash and Cash Equivalents**               |   |   | (1,939,253                                                                 | )      |   | 1,046,424 |   |
|                                                                           |   |   |                                                                       |   |   |   |   |
| **Cash                      and Cash Equivalents, Beginning of Period**        |   |   | 14,850,986                                                                 |   |   | 9,737,702 |   |
|                                                                           |   |   |                                                                       |   |   |   |   |
| **Cash                      and Cash Equivalents, End of Period**              |   | $      | 12,911,733                                                                 |   | $ | 10,784,126 |   |
|                                                                           |   |   |                                                                       |   |   |   |   |
| **Additional                      Cash Flow Information**                      |   |   |                                                                       |   |   |   |   |
| Interest                      paid                                             |   | $      | 6,297,770                                                                  |   | $ | 5,040,929 |   |
| Income                      tax paid                                           |   |   | 20,000                                                                     |   |   | 0 |   |

| See                      notes to unaudited condensed consolidated financial                      statements |
|--------------------------------------------------------------------------------------------------------------|

----

|                                                                           |   | December                31, 2007 |       | June                30, 2007 |   |
|--------------------------------------------------------------------------------|--------|----------------------------------|------------|------------------------------|--------|
|                                                                           |   | (unaudited)                      |       |                         |   |
| Federal                Home Loan Bank putable advances                         |   |                             |       |                         |   |
| Fixed                rate of 5.360%, due in March 2008                         |   |                             |       |                         | $      | 2,500,000 |   |
| Fixed                rate of 4.980%, due in December 2010                      |   | $                                | 2,000,000  |                         |   | 2,000,000 |   |
| Fixed                rate of 5.370%, due in February 2011                      |   |                             | 10,000,000 |                         |   | 10,000,000 |   |
| Fixed                rate of 4.830%, due in July 2011                          |   |                             | 10,000,000 |                         |   | 10,000,000 |   |
| Fixed                rate of 4.350%, due in September 2015                     |   |                             | 10,000,000 |                         |   | 10,000,000 |   |
| Fixed                rate of 3.700%, due in September 2015                     |   |                             | 10,000,000 |                         |   | 10,000,000 |   |
| Fixed                rate of 4.610%, due in June 2017                          |   |                             | 15,000,000 |                         |   | 15,000,000 |   |
| Fixed                rate of 4.140%, due in August 2017                        |   |                             | 5,000,000  |                         |   |   |   |
| Fixed                rate of 3.910%, due in September 2017                     |   |                             | 5,000,000  |                         |   |   |   |
| Fixed                rate of 3.320%, due in December 2017                      |   |                             | 5,000,000  |                         |   |   |   |
| Fixed                rate of 3.490%, due in December 2017                      |   |                             | 5,000,000  |                         |   |   |   |
| Fixed                rate of 3.430%, due in December 2017                      |   |                             | 5,000,000  |                         |   |   |   |
|                                                                           |   |                             |       |                         |   |   |   |
| Federal                Home Loan Bank bullet advances                          |   |                             |       |                         |   |   |   |
| Fixed                rate of 3.290%, due in August 2007                        |   |                             |       |                         |   | 500,000 |   |
| Fixed                rate of 5.310%, due in June 2008                          |   |                             | 4,000,000  |                         |   | 4,000,000 |   |
| Fixed                rate of 4.300%, due in June 2010                          |   |                             | 500,000    |                         |   | 500,000 |   |
|                                                                           |   |                             |       |                         |   |   |   |
| Total                Federal Home Loan Bank advances                           |   |                             | 86,500,000 |                         |   | 64,500,000 |   |
|                                                                           |   |                             |       |                         |   |   |   |
| Reverse                repurchase agreements                                   |   |                             |       |                         |   |   |   |
| Fixed                rate of 4.2850%, due in January 2017                      |   |                             |       |                         |   | 8,000,000 |   |
| Fixed                rate of 4.410%, due in July 2017                          |   |                             | 8,000,000  |                         |   |   |   |
|                                                                           |   |                             |       |                         |   |   |   |
| Junior                subordinated debentures, 6.905% rate, due September 2037 |   |                             | 5,155,000  |                         |   |   |   |
|                                                                           |   |                             |       |                         |   |   |   |
| Discount                on purchased borrowings                                |   |                             | (2,091     | )                            |   | (4,126 | ) |
|                                                                           |   |                             |       |                         |   |   |   |
| Total                borrowings                                                |   | $                                | 99,652,909 |                         | $      | 72,495,874 |   |
|                                                                           |   |                             |       |                         |   |   |   |
| Weighted                average rate                                           |   |                             | 4.352      | %                            |   | 4.611 | % |

----

|                                                                           |   | Quarter                Ended December 31, 2007 |    |
|--------------------------------------------------------------------------------|--------|------------------------------------------------|---------|
|                                                                           |   | Income                                         |    | Weighted-Average                Shares |   | Per                Share Amount |   |
|                                                                           |   |                                           |    |   |   |   |   |
| Net                income                                                      |   | $                                              | 247,813 |   |   |   |   |   |   |   |
|                                                                           |   |                                           |    |   |   |   |   |   |   |   |
| Basic                earnings per share                                        |   |                                           |    |   |   |   |   |   |   |   |
| Income                available to common stockholders                         |   | $                                              | 247,813 |   |   | 1,781,976 |   | $ | 0.14 |   |
|                                                                           |   |                                           |    |   |   |   |   |   |   |   |
| Effect                of dilutive securities                                   |   |                                           |    |   |   |   |   |   |   |   |
| Stock                options                                                   |   |                                           | — |   |   | 12,517 |   |   |   |   |
|                                                                           |   |                                           |    |   |   |   |   |   |   |   |
| Diluted                earnings per share                                      |   |                                           |    |   |   |   |   |   |   |   |
| Income                available to common stockholders and assumed conversions |   | $                                              | 247,813 |   |   | 1,794,493 |   | $ | 0.14 |   |

|                                                                           |   | Quarter                Ended December 31, 2006 |    |
|--------------------------------------------------------------------------------|--------|------------------------------------------------|---------|
|                                                                           |   | Income                                         |    | Weighted-Average                Shares |   | Per                Share Amount |   |
|                                                                           |   |                                           |    |   |   |   |   |
| Net                income                                                      |   | $                                              | 227,553 |   |   |   |   |   |   |   |
|                                                                           |   |                                           |    |   |   |   |   |   |   |   |
| Basic                earnings per share                                        |   |                                           |    |   |   |   |   |   |   |   |
| Income                available to common stockholders                         |   | $                                              | 227,553 |   |   | 1,779,459 |   | $ | 0.13 |   |
|                                                                           |   |                                           |    |   |   |   |   |   |   |   |
| Effect                of dilutive securities                                   |   |                                           |    |   |   |   |   |   |   |   |
| Stock                options                                                   |   |                                           | — |   |   | 35,442 |   |   |   |   |
|                                                                           |   |                                           |    |   |   |   |   |   |   |   |
| Diluted                earnings per share                                      |   |                                           |    |   |   |   |   |   |   |   |
| Income                available to common stockholders and assumed conversions |   | $                                              | 227,553 |   |   | 1,814,901 |   | $ | 0.13 |   |

----

|                                                                           |   | Six                Months Ended December 31, 2007 |    |
|--------------------------------------------------------------------------------|--------|---------------------------------------------------|---------|
|                                                                           |   | Income                                            |    | Weighted-Average                Shares |   | Per                Share Amount |   |
|                                                                           |   |                                              |    |   |   |   |   |
| Net                income                                                      |   | $                                                 | 436,422 |   |   |   |   |   |   |   |
|                                                                           |   |                                              |    |   |   |   |   |   |   |   |
| Basic                earnings per share                                        |   |                                              |    |   |   |   |   |   |   |   |
| Income                available to common stockholders                         |   | $                                                 | 436,422 |   |   | 1,783,534 |   | $ | 0.24 |   |
|                                                                           |   |                                              |    |   |   |   |   |   |   |   |
| Effect                of dilutive securities                                   |   |                                              |    |   |   |   |   |   |   |   |
| Stock                options                                                   |   |                                              | — |   |   | 14,661 |   |   |   |   |
|                                                                           |   |                                              |    |   |   |   |   |   |   |   |
| Diluted                earnings per share                                      |   |                                              |    |   |   |   |   |   |   |   |
| Income                available to common stockholders and assumed conversions |   | $                                                 | 436,422 |   |   | 1,798,195 |   | $ | 0.24 |   |

|                                                                           |   | Six                Months Ended December 31, 2006 |    |
|--------------------------------------------------------------------------------|--------|---------------------------------------------------|---------|
|                                                                           |   | Income                                            |    | Weighted-Average                Shares |   | Per                Share Amount |   |
|                                                                           |   |                                              |    |   |   |   |   |
| Net                income                                                      |   | $                                                 | 401,224 |   |   |   |   |   |   |   |
|                                                                           |   |                                              |    |   |   |   |   |   |   |   |
| Basic                earnings per share                                        |   |                                              |    |   |   |   |   |   |   |   |
| Income                available to common stockholders                         |   | $                                                 | 401,224 |   |   | 1,632,512 |   | $ | 0.25 |   |
|                                                                           |   |                                              |    |   |   |   |   |   |   |   |
| Effect                of dilutive securities                                   |   |                                              |    |   |   |   |   |   |   |   |
| Stock                options                                                   |   |                                              | — |   |   | 35,085 |   |   |   |   |
|                                                                           |   |                                              |    |   |   |   |   |   |   |   |
| Diluted                earnings per share                                      |   |                                              |    |   |   |   |   |   |   |   |
| Income                available to common stockholders and assumed conversions |   | $                                                 | 401,224 |   |   | 1,667,597 |   | $ | 0.24 |   |

*Accounting      for Uncertainty in Income Taxes*

----

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

----

|                                                                  |   | December                31, 2007 |    | June                30, 2007 |   |
|-----------------------------------------------------------------------|--------|----------------------------------|---------|------------------------------|--------|
|                                                                  |   |                             |    |                         |   |
| Loans                accounted for on a nonaccrual basis              |   | $                                | 127,000 |                         | $      | 311,000 |   |
| Accruing                loans past due 90 days or more                |   |                             | -       |                         |   | 14,000 |   |
| Nonperforming                loans                                    |   |                             | 127,000 |                         |   | 325,000 |   |
| Real                estate owned (net)                                |   |                             | 92,000  |                         |   | 10,000 |   |
| Other                repossessed assets                               |   |                             | 24,000  |                         |   | 33,000 |   |
| Total                nonperforming assets                             |   | $                                | 243,000 |                         | $      | 368,000 |   |
|                                                                  |   |                             |    |                         |   |   |   |
| Total                loans delinquent 90 days or more to total loans  |   |                             | 0.05    | %                            |   | 0.14 | % |
| Total                loans delinquent 90 days or more to total assets |   |                             | 0.03    | %                            |   | 0.09 | % |
| Total                nonperforming assets to total assets             |   |                             | 0.07    | %                            |   | 0.10 | % |

----

----

----

|                                                     |   |                                  |   | Regulatory                Minimum |   | Well                Capitalized per |   |
|----------------------------------------------------------|--------|---------------------------------------|--------|-----------------------------------|--------|-------------------------------------|--------|
|                                                     |   | Actual                                |   | Required                Capital   |   | 12                CFR Part 565      |   |
|                                                     |   | Amount                                |   | Ratio                             |   | Amount                              |   | Ratio |   | Amount |   | Ratio |   |
|                                                     |   | (Dollars                in Thousands) |
| As                of December 31, 2007 (unaudited)       |   |                                  |   |                              |   |                                |   |   |   |   |   |   |   |
| Total                capital (to risk weighted assets)   |   | $                                     | 27,422 |                              |   | 11.58                               | %      | $ | 18,938 |   |   | 8.00 | % | $ | 23,672 |   |   | 10.00 | % |
| Tier                I capital (to risk weighted assets)  |   |                                  | 27,399 |                              |   | 11.22                               |   |   | 9,469 |   |   | 4.00 |   |   | 14,203 |   |   | 6.00 |   |
| Tier                I capital (to adjusted total assets) |   |                                  | 27,399 |                              |   | 7.68                                |   |   | 14,088 |   |   | 4.00 |   |   | 17,835 |   |   | 5.00 |   |
|                                                     |   |                                  |   |                              |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As                of June 30, 2007                       |   |                                  |   |                              |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                capital (to risk weighted assets)   |   | $                                     | 25,680 |                              |   | 10.81                               | %      | $ | 19,010 |   |   | 8.00 | % | $ | 23,763 |   |   | 10.00 | % |
| Tier                I capital (to risk weighted assets)  |   |                                  | 25,675 |                              |   | 10.40                               |   |   | 9,505 |   |   | 4.00 |   |   | 14,258 |   |   | 6.00 |   |
| Tier                I capital (to adjusted total assets) |   |                                  | 25,675 |                              |   | 7.23                                |   |   | 14,200 |   |   | 4.00 |   |   | 17,750 |   |   | 5.00 |   |

| Period                                                    |   | Total                Number of Shares Purchased |   | Average                Price Paid per Share |   | Total                Number of Shares Purchased as Part of Publicly Announced Plans or                Programs |   | Maximum                Number of Shares that May Yet Be Purchased Under the Plans or                Programs |   |
|-----------------------------------------------------------|--------|-------------------------------------------------|--------|---------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|--------|
| October                1, 2007 through October 31, 2007   |   |                                            | 1,000  |                                        | $      | 15.05                                                                                                          |   |                                                                                                         | 1,000  |   |   | 45,621 |   |
|                                                      |   |                                            |   |                                        |   |                                                                                                           |   |                                                                                                         |   |   |   |   |   |
| November                1, 2007 through November 30, 2007 |   |                                            | 2,700  |                                        | $      | 14.39                                                                                                          |   |                                                                                                         | 2,700  |   |   | 42,921 |   |
|                                                      |   |                                            |   |                                        |   |                                                                                                           |   |                                                                                                         |        |   |   |   |   |
| December                1, 2007 through December 31, 2007 |   |                                            | 5,000  |                                        | $      | 13.88                                                                                                          |   |                                                                                                         | 5,000  |   |   | 37,921 |   |
|                                                      |   |                                            |   |                                        |   |                                                                                                           |   |                                                                                                         |   |   |   |   |   |
| Total                                                     |   |                                            | 8,700  |                                        | $      | 14.17                                                                                                          |   |                                                                                                         | 8,700  |   |   |   |   |

----

*Fair      Value Measurements*

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

----

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

|                              |   | Vote                  For |      | Vote                  Withheld |   |
|-----------------------------------|--------|---------------------------|-----------|--------------------------------|--------|
|                              |   |                      |      |                           |   |
| David                  E. Gunn    |   |                      | 1,434,220 |                           |   | 20,059 |   |
|                              |   |                      |      |                           |   |   |   |
| Jerome                  A. Ziemer |   |                      | 1,434,270 |                           |   | 20,009 |   |

| 2.   | The                appointment of BKD LLP as auditors for the Company for the fiscal                year                ending June 30, 2008, was ratified by stockholders by the following                vote: |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| For |   | 1,421,902 | Against |   | 30,490 | Abstain |   | 1,887 |
|-----|--------|-----------|---------|--------|--------|---------|--------|-------|

| 31.1 | Rule                  13a-14(a)/15d-14(a) Chief Executive Officer                  Certification. |
|------|---------------------------------------------------------------------------------------------------|

| 31.2 | Rule                  13a-14(a)/15d-14(a) Chief Financial Officer                  Certification. |
|------|---------------------------------------------------------------------------------------------------|

| 32.0 | Section                  1350 Certifications. |
|------|-----------------------------------------------|

----

----

|                                  |                                                                                 |                                  |
|---------------------------------------|--------------------------------------------------------------------------------------|---------------------------------------|
|                                  | FIRST                BANCORP OF INDIANA, INC.                                        |
|                             |                                                                            |                             |
| Dated:              February 13, 2008 | By:                                                                        | /s/ Michael              H. Head |
|                                  | Michael                H. HeadPresident                  and Chief Executive Officer |
|                                  | (principal                executive officer)                                         |

|                                  |                                                                                 |                                               |
|---------------------------------------|--------------------------------------------------------------------------------------|----------------------------------------------------|
| Dated:              February 13, 2008 | By:                                                                        | /s/ George              J.              Smith |
|                                  | George                J. SmithTreasurer                  and Chief Financial Officer |
|                                  | (principal                financial and accounting officer)                          |

----