| Indiana                                                                                                                      | 35-2061832                                                        |
|------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------|
| (State                or other jurisdiction of                incorporation or                organization)   | (I.R.S.                EmployerIdentification                No.) |
|                                                                                                                         |                                                              |
| P.O.                Box 1111, Evansville,                Indiana                                                        | 47706                                                             |
| (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                                                    | 17     |
|                                                                                              |   |
| Part                II Other Information                                                          |   |
| Item                1. Legal Proceedings                                                          | 18     |
| Item                2. Unregistered Sales of Equity Securities and Use of                Proceeds | 18     |
| Item                3. Defaults Upon Senior Securities                                            | 18     |
| Item                4. Submission of Matters to a Vote of Security Holders                        | 18     |
| Item                5. Other Information                                                          | 18     |
| Item                6. Exhibits                                                                   | 18     |

----

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

|                                                               |   | **March                    31,****2007** |        | **June                    30,****2006** |   |
|--------------------------------------------------------------------|--------|------------------------------------------|-------------|-----------------------------------------|--------|
|                                                               |   | (Unaudited)                              |        |                                    |   |
| **Assets**                                                         |   |                                     |        |                                    |   |
| Cash                    and due from banks                         |   | $                                        | 8,766,888   |                                    | $      | 6,656,560 |   |
| Interest-bearing                    demand deposits                |   |                                     | 3,557,172   |                                    |   | 3,056,142 |   |
| Federal                    funds sold                              |   |                                     | 0           |                                    |   | 25,000 |   |
| Total                    cash and cash equivalents                 |   |                                     | 12,324,060  |                                    |   | 9,737,702 |   |
| Interest-bearing                    deposits                       |   |                                     | 2,704,187   |                                    |   | 229,000 |   |
| Investment                    securities                           |   |                                     |        |                                    |   |   |   |
| Available                    for sale                              |   |                                     | 69,090,599  |                                    |   | 56,128,031 |   |
| Held                    to maturity                                |   |                                     | 15,183,559  |                                    |   | 14,593,296 |   |
| Total                    investment securities                     |   |                                     | 84,274,158  |                                    |   | 70,721,327 |   |
| Loans                                                              |   |                                     | 232,163,602 |                                    |   | 187,587,271 |   |
| Allowance                    for loan losses                       |   |                                     | (1,153,017  | )                                       |   | (835,736 | ) |
| Net                    loans                                       |   |                                     | 231,010,585 |                                    |   | 186,751,535 |   |
| Premises                    and equipment                          |   |                                     | 9,446,216   |                                    |   | 8,543,424 |   |
| Goodwill                                                           |   |                                     | 5,959,039   |                                    |   | 1,786,297 |   |
| Core                    deposit intangibles                        |   |                                     | 931,736     |                                    |   | 86,690 |   |
| Federal                    Home Loan Bank stock                    |   |                                     | 4,564,700   |                                    |   | 4,013,800 |   |
| Other                    assets                                    |   |                                     | 12,827,278  |                                    |   | 12,681,440 |   |
|                                                               |   |                                     |        |                                    |   |   |   |
| Total                    assets                                    |   | $                                        | 364,041,959 |                                    | $      | 294,551,215 |   |
|                                                               |   |                                     |        |                                    |   |   |   |
| **Liabilities**                                                    |   |                                     |        |                                    |   |   |   |
| Deposits                                                           |   |                                     |        |                                    |   |   |   |
| Non-interest                    bearing                            |   | $                                        | 10,929,528  |                                    | $      | 15,698,051 |   |
| Interest                    bearing                                |   |                                     | 238,053,491 |                                    |   | 173,643,103 |   |
| Total                    deposits                                  |   |                                     | 248,983,019 |                                    |   | 189,341,154 |   |
| Borrowings                                                         |   |                                     | 74,994,857  |                                    |   | 73,000,000 |   |
| Advances                    by borrowers for                       |   |                                     |        |                                    |   |   |   |
| taxes                    and insurance                             |   |                                     | 953,299     |                                    |   | 570,357 |   |
| Other                    liabilities                               |   |                                     | 5,079,052   |                                    |   | 3,433,356 |   |
| Total                    liabilities                               |   |                                     | 330,010,227 |                                    |   | 266,344,867 |   |
|                                                               |   |                                     |        |                                    |   |   |   |
| **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      |                                    |   | 22,724 |   |
| Additional                    paid-in capital                      |   |                                     | 27,741,496  |                                    |   | 22,360,757 |   |
| Retained                    earnings                               |   |                                     | 18,874,880  |                                    |   | 19,305,925 |   |
| Accumulated                    other comprehensive income / (loss) |   |                                     | (622,336    | )                                       |   | (1,659,119 | ) |
|                                                               |   |                                     | 46,019,703  |                                    |   | 40,030,287 |   |
|                                                               |   |                                     |        |                                    |   |   |   |
| Less:                                                              |   |                                     |        |                                    |   |   |   |
| Unreleased                    employee stock ownership plan        |   |                                     |        |                                    |   |   |   |
| shares                    - 56,806 and 68,170 shares               |   |                                     | (579,889    | )                                       |   | (695,893 | ) |
| Treasury                    stock - 729,483 and 717,632 shares     |   |                                     | (11,408,082 | )                                       |   | (11,128,046 | ) |
| Total                    stockholders' equity                      |   |                                     | 34,031,732  |                                    |   | 28,206,348 |   |
|                                                               |   |                                     |        |                                    |   |   |   |
| Total                    liabilities and stockholders' equity      |   | $                                        | 364,041,959 |                                    | $      | 294,551,215 |   |
|                                                               |   |                                     |        |                                    |   |   |   |

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

----

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

|                                                          |   | **For                    the**            |      | **For                    the**           |   |
|---------------------------------------------------------------|--------|-------------------------------------------|-----------|------------------------------------------|--------|
|                                                          |   | **Three                    Months Ended** |      | **Nine                    Months Ended** |   |
|                                                          |   | **March                    31,**          |      | **March                    31,**         |   |
|                                                          |   | **2007**                                  |      | **2006**                                 |   | **2007** |   | **2006** |   |
|                                                          |   | *(Unaudited)*                             |      | *(Unaudited)*                            |   |
| **Interest                    Income**                        |   |                                      |      |                                     |   |   |   |   |   |
| Loans                    receivable                           |   | $                                         | 3,882,760 |                                     | $      | 2,716,551 |   | $ | 10,920,208 |   | $ | 7,746,795 |   |
| Investment                    securities                      |   |                                      | 1,025,141 |                                     |   | 788,708 |   |   | 2,822,948 |   |   | 2,342,011 |   |
| Deposits                    with financial institutions       |   |                                      | 119,110   |                                     |   | 25,918 |   |   | 281,401 |   |   | 130,083 |   |
| Federal                    funds sold                         |   |                                      | 0         |                                     |   | 22,259 |   |   | 12,311 |   |   | 82,313 |   |
| Other                    interest and dividend income         |   |                                      | 58,375    |                                     |   | 52,514 |   |   | 157,713 |   |   | 121,883 |   |
| Total                    interest income                      |   |                                      | 5,085,386 |                                     |   | 3,605,950 |   |   | 14,194,581 |   |   | 10,423,085 |   |
|                                                          |   |                                      |      |                                     |   |   |   |   |   |   |   |   |   |
| **Interest                    Expense**                       |   |                                      |      |                                     |   |   |   |   |   |   |   |   |   |
| Deposits                                                      |   |                                      | 2,365,032 |                                     |   | 1,300,450 |   |   | 6,200,739 |   |   | 3,505,589 |   |
| Borrowings                                                    |   |                                      | 850,704   |                                     |   | 690,426 |   |   | 2,507,863 |   |   | 1,919,542 |   |
| Other                                                         |   |                                      | 22,056    |                                     |   | 21,758 |   |   | 65,571 |   |   | 77,808 |   |
| Total                    interest expense                     |   |                                      | 3,237,792 |                                     |   | 2,012,634 |   |   | 8,774,173 |   |   | 5,502,939 |   |
|                                                          |   |                                      |      |                                     |   |   |   |   |   |   |   |   |   |
| **Net                    Interest Income**                    |   |                                      | 1,847,594 |                                     |   | 1,593,316 |   |   | 5,420,408 |   |   | 4,920,146 |   |
|                                                          |   |                                      |      |                                     |   |   |   |   |   |   |   |   |   |
| Provision                    for loan losses                  |   |                                      | 105,000   |                                     |   | 65,000 |   |   | 300,000 |   |   | 222,000 |   |
|                                                          |   |                                      |      |                                     |   |   |   |   |   |   |   |   |   |
| **Net                    Interest Income after Provision**    |   |                                      | 1,742,594 |                                     |   | 1,528,316 |   |   | 5,120,408 |   |   | 4,698,146 |   |
|                                                          |   |                                      |      |                                     |   |   |   |   |   |   |   |   |   |
| **Noninterest                    Income**                     |   |                                      |      |                                     |   |   |   |   |   |   |   |   |   |
| Increase                    in cash surrender values          |   |                                      |      |                                     |   |   |   |   |   |   |   |   |   |
| of                    life insurance                          |   |                                      | 53,372    |                                     |   | 52,500 |   |   | 152,372 |   |   | 158,571 |   |
| Net                    gains on loan sales                    |   |                                      | 22,588    |                                     |   | 53,640 |   |   | 114,428 |   |   | 129,454 |   |
| ATM                    transaction & POS interchange fees |   |                                      | 62,437    |                                     |   | 58,423 |   |   | 189,214 |   |   | 180,947 |   |
| Service                    charges on deposit accounts        |   |                                      | 106,261   |                                     |   | 95,450 |   |   | 319,039 |   |   | 311,594 |   |
| Net                    gain on sale of branch office          |   |                                      | 0         |                                     |   | 0 |   |   | 0 |   |   | 685,647 |   |
| Other                    income                               |   |                                      | 246,946   |                                     |   | 240,796 |   |   | 676,117 |   |   | 705,029 |   |
| Total                    noninterest income                   |   |                                      | 491,604   |                                     |   | 500,809 |   |   | 1,451,170 |   |   | 2,171,242 |   |
|                                                          |   |                                      |      |                                     |   |   |   |   |   |   |   |   |   |
| **Noninterest                    Expense**                    |   |                                      |      |                                     |   |   |   |   |   |   |   |   |   |
| Salaries                    and employee benefits             |   |                                      | 1,091,242 |                                     |   | 940,430 |   |   | 3,077,196 |   |   | 2,873,214 |   |
| Net                    occupancy expense                      |   |                                      | 177,160   |                                     |   | 103,274 |   |   | 493,480 |   |   | 262,785 |   |
| Equipment                    expense                          |   |                                      | 105,714   |                                     |   | 92,734 |   |   | 319,727 |   |   | 276,944 |   |
| Amortization                    of intangible assets          |   |                                      | 37,305    |                                     |   | 19,013 |   |   | 97,130 |   |   | 57,038 |   |
| Professional                    fees                          |   |                                      | 52,169    |                                     |   | 48,413 |   |   | 161,423 |   |   | 149,540 |   |
| Advertising                                                   |   |                                      | 60,954    |                                     |   | 59,367 |   |   | 182,612 |   |   | 221,238 |   |
| Data                    processing fees                       |   |                                      | 118,203   |                                     |   | 94,372 |   |   | 328,450 |   |   | 269,107 |   |
| Other                    expense                              |   |                                      | 352,828   |                                     |   | 319,753 |   |   | 1,151,438 |   |   | 1,035,058 |   |
| Total                    noninterest expense                  |   |                                      | 1,995,575 |                                     |   | 1,677,356 |   |   | 5,811,456 |   |   | 5,144,924 |   |
|                                                          |   |                                      |      |                                     |   |   |   |   |   |   |   |   |   |
| **Income                    Before Income Tax**               |   |                                      | 238,623   |                                     |   | 351,769 |   |   | 760,122 |   |   | 1,724,464 |   |
| Income                    tax expense                         |   |                                      | 48,633    |                                     |   | 97,644 |   |   | 168,908 |   |   | 567,173 |   |
|                                                          |   |                                      |      |                                     |   |   |   |   |   |   |   |   |   |
| **Net                    Income**                             |   | $                                         | 189,990   |                                     | $      | 254,125 |   | $ | 591,214 |   | $ | 1,157,291 |   |
|                                                          |   |                                      |      |                                     |   |   |   |   |   |   |   |   |   |
| Basic                    earnings per share                   |   | $                                         | 0.11      |                                     | $      | 0.17 |   | $ | 0.35 |   | $ | 0.77 |   |
| Diluted                    earnings per share                 |   | $                                         | 0.10      |                                     | $      | 0.17 |   | $ | 0.34 |   | $ | 0.75 |   |
| Dividends                    declared per share               |   | $                                         | 0.30      |                                     | $      | 0.30 |   | $ | 0.60 |   | $ | 0.60 |   |

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

----

| **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** |       | **Other****Accumulated****Comprehensive****Income** |   | **Unallocated****ESOP****Shares** |   | **Treasury****Shares** |        | **Total** |   |
|----------------------------------------------------------------|--------|-----------------------------|--------------------------------------------|---------------------|--------|--------------------------------------|--------|--------------------------------------------------|------------|-----------------------------------------------------|--------|-----------------------------------|--------|------------------------|-------------|-----------|--------|
| **Balances,                    June 30, 2006**                 |   |                        |                                       |                | $      | 22,724                               |   | $                                                | 22,360,757 |                                                | $      | 19,305,925                        |   |                   | ($1,659,119 | )         |   | ($695,893 | ) |   | ($11,128,046 | ) | $ | 28,206,348 |   |
|                                                           |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   |   |   |
| Net                    income                             |   | $                           | 173,670                                    |                |   |                                 |   |                                             |       |                                                |   | 173,670                           |   |                   |        |      |   |   |   |   |   |   |   | 173,670 |   |
|  Other                    comprehensive income,           |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   |   |   |
|  net                    of tax--Unrealized gains (losses) |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   |   |   |
|  on                    securities (unaudited)             |   |                        | 664,161                                    |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   | 664,161     |      |   |   |   |   |   |   |   | 664,161 |   |
|                                                           |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   |   |   |
| Cash                    dividends paid ($0.30 per share)  |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   | (466,378                          | )      |                   |        |      |   |   |   |   |   |   |   | (466,378 | ) |
| Employee                    Stock Ownership Plan          |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   |   |   |
| shares                    allocated                       |   |                        |                                       |                |   |                                 |   |                                             | 31,504     |                                                |   |                              |   |                   |        |      |   | 38,647 |   |   |   |   |   | 70,152 |   |
| Treasury                    shares purchased              |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   | (82,073 | ) |   | (82,073 | ) |
| Options                    exercised                      |   |                   |                        |                |   |                                 |   |                                             | (4,493     | )                                                   |   |                              |   |                   |        |      |   |   |   |   | 32,593 |   |   | 28,099 |   |
| Comprehensive                    income (unaudited)       |   | $                           | 837,831                                    |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   |   |   |
|                                                           |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   |   |   |
| **Balances,                    Sept 30, 2006 (unaudited)**     |   |                        |                                       |                | $      | 22,724                               |   | $                                                | 22,387,768 |                                                | $      | 19,013,217                        |   |                   | ($994,958   | )         |   | ($657,246 | ) |   | ($11,177,526 | ) | $ | 28,593,979 |   |
|                                                           |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   |   |   |
| Net                    income                             |   | $                           | 227,553                                    |                |   |                                 |   |                                             |       |                                                |   | 227,553                           |   |                   |        |      |   |   |   |   |   |   |   | 227,553 |   |
|  Other                    comprehensive income,           |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   |   |   |
|  net                    of tax--Unrealized gains (losses) |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   |   |   |
|  on                    securities (unaudited)             |   |                        | 219,669                                    |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   | 219,669     |      |   |   |   |   |   |   |   | 219,669 |   |
|                                                           |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   |   |   |
| Employee                    Stock Ownership Plan          |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   |   |   |
| shares                    allocated                       |   |                        |                                       |                |   |                                 |   |                                             | 33,969     |                                                |   |                              |   |                   |        |      |   | 38,710 |   |   |   |   |   | 72,679 |   |
| Treasury                    shares purchased              |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   | (212,283 | ) |   | (212,283 | ) |
| Options                    exercised                      |   |                        |                                       |                |   |                                 |   |                                             | (7,686     | )                                                   |   |                              |   |                   |        |      |   |   |   |   | 18,636 |   |   | 10,950 |   |
| Bank                    acquisition                       |   |              |                        |                |   | 2,939                                |   |                                             | 5,402,728  |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   | 5,405,667 |   |
| Comprehensive                    income (unaudited)       |   | $                           | 447,222                                    |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   |   |   |
|                                                           |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   |   |   |
| **Balances,                    Dec 31, 2006 (unaudited)**      |   |                        |                                       |                | $      | 25,663                               |   | $                                                | 27,816,779 |                                                | $      | 19,240,770                        |   |                   | ($775,289   | )         |   | ($618,536 | ) |   | ($11,371,173 | ) | $ | 34,318,214 |   |
|                                                           |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   |   |   |
| Net                    income                             |   | $                           | 189,990                                    |                |   |                                 |   |                                             |       |                                                |   | 189,990                           |   |                   |        |      |   |   |   |   |   |   |   | 189,990 |   |
|  Other                    comprehensive income,           |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   |   |   |
|  net                    of tax--Unrealized gains (losses) |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   |   |   |
|  on                    securities (unaudited)             |   |                        | 152,953                                    |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   | 152,953     |      |   |   |   |   |   |   |   | 152,953 |   |
|                                                           |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   |   |   |
| Cash                    dividends paid ($0.30 per share)  |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   | (555,880                          | )      |                   |        |      |   |   |   |   |   |   |   | (555,880 | ) |
| Employee                    Stock Ownership Plan          |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   |   |   |
| shares                    allocated                       |   |                        |                                       |                |   |                                 |   |                                             | 29,666     |                                                |   |                              |   |                   |        |      |   | 38,647 |   |   |   |   |   | 68,313 |   |
| Treasury                    shares purchased              |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   | (290,122 | ) |   | (290,122 | ) |
| Options                    exercised                      |   |                   |                        |                |   |                                 |   |                                             | (104,949   | )                                                   |   |                              |   |                   |        |      |   |   |   |   | 253,213 |   |   | 148,264 |   |
| Comprehensive                    income (unaudited)       |   | $                           | 342,943                                    |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   |   |   |
|                                                           |   |                        |                                       |                |   |                                 |   |                                             |       |                                                |   |                              |   |                   |        |      |   |   |   |   |   |   |   |   |   |
| **Balances,                    Mar 31, 2007 (unaudited)**      |   |                        |                                       |                | $      | 25,663                               |   | $                                                | 27,741,496 |                                                | $      | 18,874,880                        |   |                   | ($622,336   | )         |   | ($579,889 | ) |   | ($11,408,082 | ) | $ | 34,031,732 |   |

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

----

| **FIRST                    BANCORP OF INDIANA, INC.** |
|-------------------------------------------------------|
| **AND****S****UBSIDIARY**                             |

**Condensed          Consolidated Statements of Cash Flows**

|                                                                           |   | **For                      the Nine Months Ended** |        |
|--------------------------------------------------------------------------------|--------|----------------------------------------------------|-------------|
|                                                                           |   | **March                      31,**                 |        |
|                                                                           |   | **2007**                                           |        | **2006** |   |
|                                                                           |   | *(Unaudited)*                                      |        |
|                                                                           |   |                                               |        |   |   |
| **Net                      Cash Provided (Used) by Operating Activities**      |   | $                                                  | 1,562,727   |   |   | ($1,008,577 | ) |
|                                                                           |   |                                               |        |   |   |   |   |
| **Investing                      Activities**                                  |   |                                               |        |   |   |   |   |
| Net                      change in interest-bearing deposits                   |   |                                               | 3,162,783   |   |   | 674,931 |   |
| Proceeds                      from maturities of securities available for sale |   |                                               | 6,066,513   |   |   | 11,276,982 |   |
| Proceeds                      from maturities of securities held to maturity   |   |                                               | 1,102,385   |   |   | 2,210,901 |   |
| Purchases                      of securities available for sale                |   |                                               | (9,036,951  | ) |   | (8,319,555 | ) |
| Purchases                      of securities held to maturity                  |   |                                               | 0           |   |   | (10,123,250 | ) |
| Net                      change in loans                                       |   |                                               | (4,757,364  | ) |   | (24,413,298 | ) |
| Purchases                      of premises and equipment                       |   |                                               | (580,031    | ) |   | (4,154,936 | ) |
| Proceeds                      from sales of premises and equipment             |   |                                               | 1,676       |   |   | 1,131,920 |   |
| (Purchase)/sale                      of FHLB stock                             |   |                                               | 61,600      |   |   | (499,900 | ) |
| Acquisition                      of bank, net of cash received                 |   |                                               | (2,024,394  | ) |   | 0 |   |
|                                                                           |   |                                               |        |   |   |   |   |
| Net                      cash used by investing activities                |   |                                               | (6,003,783  | ) |   | (32,216,205 | ) |
|                                                                           |   |                                               |        |   |   |   |   |
| **Financing                      Activities**                                  |   |                                               |        |   |   |   |   |
| Net                      change in                                             |   |                                               |        |   |   |   |   |
| Non-interest                      bearing, interest-bearing demand        |   |                                               |        |   |   |   |   |
|  and                      savings deposits                                |   |                                               | 1,717,810   |   |   | 81,198 |   |
| Certificates                      of deposit                              |   |                                               | 13,383,729  |   |   | (12,233,648 | ) |
| Proceeds                      from issuance of long-term borrowings            |   |                                               | 8,000,000   |   |   | 40,000,000 |   |
| Repayments                      of long-term borrowings                        |   |                                               | (15,000,000 | ) |   | (13,000,000 | ) |
| Advances                      by borrowers for taxes and insurance             |   |                                               | 345,298     |   |   | 348,778 |   |
| Dividends                      paid                                            |   |                                               | (1,022,258  | ) |   | (951,899 | ) |
| Purchase                      of treasury shares                               |   |                                               | (584,478    | ) |   | (1,581,640 | ) |
| Options                      exercised                                         |   |                                               | 187,313     |   |   | 388,784 |   |
|                                                                           |   |                                               |        |   |   |   |   |
| Net                      cash provided by financing activities            |   |                                               | 7,027,414   |   |   | 13,051,573 |   |
|                                                                           |   |                                               |        |   |   |   |   |
| **Net                      Change in Cash and Cash Equivalents**               |   |                                               | 2,586,358   |   |   | (20,173,208 | ) |
|                                                                           |   |                                               |        |   |   |   |   |
| **Cash                      and Cash Equivalents, Beginning of Period**        |   |                                               | 9,737,702   |   |   | 35,335,864 |   |
|                                                                           |   |                                               |        |   |   |   |   |
| **Cash                      and Cash Equivalents, End of Period**              |   | $                                                  | 12,324,060  |   | $ | 15,162,656 |   |
|                                                                           |   |                                               |        |   |   |   |   |
| **Additional                      Cash Flow Information**                      |   |                                               |        |   |   |   |   |
| Interest                      paid                                             |   | $                                                  | 7,782,614   |   | $ | 5,076,407 |   |
| Income                      tax paid                                           |   |                                               | 175,000     |   |   | 615,000 |   |

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

----

|                                                           |   | March                31,2007 |       | June                30,2006 |   |
|----------------------------------------------------------------|--------|------------------------------|------------|-----------------------------|--------|
|                                                           |   | (unaudited)                  |       |                        |   |
| Federal                Home Loan Bank putable advances         |   |                         |       |                        |   |
| Fixed                rate of 5.330%, due in March 2008         |   | $                            | 2,500,000  |                        |   |   |   |
| Fixed                rate of 4.980%, due in December 2010 |   |                         | 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 3.268%, due in January 2015       |   |                         |       |                        |   | 8,000,000 |   |
| Fixed                rate of 3.520%, due in May 2015           |   |                         | 5,000,000  |                        |   | 5,000,000 |   |
| 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 4.180%, due in March 2016         |   |                         | 15,000,000 |                        |   | 15,000,000 |   |
|                                                           |   |                         |       |                        |   |   |   |
| Federal                Home Loan Bank bullet advances          |   |                         |       |                        |   |   |   |
| Fixed                rate of 3.050%, due in July 2006          |   |                         |       |                        |   | 2,000,000 |   |
| Fixed                rate of 5.040%, due in March 2007         |   |                         |       |                        |   | 2,000,000 |   |
| Fixed                rate of 4.100%, due in April 2007         |   |                         | 500,000    |                        |   |   |   |
| Fixed                rate of 5.240%, due in May 2007           |   |                         | 1,000,000  |                        |   | 1,000,000 |   |
| Fixed                rate of 3.290%, due in August 2007        |   |                         | 500,000    |                        |   |   |   |
| Fixed                rate of 4.300%, due in June 2010          |   |                         | 500,000    |                        |   |   |   |
|                                                           |   |                         |       |                        |   |   |   |
| Total                Federal Home Loan Bank advances           |   | $                            | 67,000,000 |                        | $      | 73,000,000 |   |
|                                                           |   |                         |       |                        |   |   |   |
| Reverse                repurchase agreements                   |   |                         |       |                        |   |   |   |
| Fixed                rate of 4.2850%, due in January 2017      |   | $                            | 8,000,000  |                        |   |   |   |
|                                                           |   |                         |       |                        |   |   |   |
| Total                long-term debt                            |   | $                            | 75,000,000 |                        | $      | 73,000,000 |   |
|                                                           |   |                         |       |                        |   |   |   |
| Weighted                average rate                           |   |                         | 4.419      | %                           |   | 4.238 | % |

----

|                                                                           |   | Quarter                Ended March 31, 2007 |    |
|--------------------------------------------------------------------------------|--------|---------------------------------------------|---------|
|                                                                           |   | Income                                      |    | Weighted-Average                Shares |   | Per                Share Amount |   |
| Net                income                                                      |   | $                                           | 189,990 |   |   |   |   |   |   |   |
|                                                                           |   |                                        |    |   |   |   |   |   |   |   |
| Basic                earnings per share                                        |   |                                        |    |   |   |   |   |   |   |   |
| Income                available to common stockholders                         |   | $                                           | 189,990 |   | $ | 1,784,571 |   | $ | 0.11 |   |
|                                                                           |   |                                        |    |   |   |   |   |   |   |   |
| Effect                of dilutive securities                                   |   |                                        |    |   |   |   |   |   |   |   |
| Stock                options                                                   |   |                                        | — |   |   | 26,089 |   |   |   |   |
|                                                                           |   |                                        |    |   |   |   |   |   |   |   |
| Diluted                earnings per share                                      |   |                                        |    |   |   |   |   |   |   |   |
| Income                available to common stockholders and assumed conversions |   | $                                           | 189,990 |   | $ | 1,810,660 |   | $ | 0.10 |   |

|                                                                           |   | Quarter                Ended March 31, 2006 |    |
|--------------------------------------------------------------------------------|--------|---------------------------------------------|---------|
|                                                                           |   | Income                                      |    | Weighted-Average                Shares |   | Per                Share Amount |   |
| Net                income                                                      |   | $                                           | 254,125 |   |   |   |   |   |   |   |
|                                                                           |   |                                        |    |   |   |   |   |   |   |   |
| Basic                earnings per share                                        |   |                                        |    |   |   |   |   |   |   |   |
| Income                available to common stockholders                         |   | $                                           | 254,125 |   |   | 1,486,813 |   | $ | 0.17 |   |
|                                                                           |   |                                        |    |   |   |   |   |   |   |   |
| Effect                of dilutive securities                                   |   |                                        |    |   |   |   |   |   |   |   |
| Stock                options                                                   |   |                                        | — |   |   | 47,028 |   |   |   |   |
|                                                                           |   |                                        |    |   |   |   |   |   |   |   |
| Diluted                earnings per share                                      |   |                                        |    |   |   |   |   |   |   |   |
| Income                available to common stockholders and assumed conversions |   | $                                           | 254,125 |   |   | 1,533,841 |   | $ | 0.17 |   |

----

|                                                                           |   | Nine                months Ended March 31, 2007 |    |
|--------------------------------------------------------------------------------|--------|-------------------------------------------------|---------|
|                                                                           |   | Income                                          |    | Weighted-Average                Shares |   | Per                Share Amount |   |
| Net                income                                                      |   | $                                               | 591,214 |   |   |   |   |   |   |   |
|                                                                           |   |                                            |    |   |   |   |   |   |   |   |
| Basic                earnings per share                                        |   |                                            |    |   |   |   |   |   |   |   |
| Income                available to common stockholders                         |   | $                                               | 591,214 |   | $ | 1,683,198 |   | $ | 0.35 |   |
|                                                                           |   |                                            |    |   |   |   |   |   |   |   |
| Effect                of dilutive securities                                   |   |                                            |    |   |   |   |   |   |   |   |
| Stock                options                                                   |   |                                            | — |   |   | 32,087 |   |   |   |   |
|                                                                           |   |                                            |    |   |   |   |   |   |   |   |
| Diluted                earnings per share                                      |   |                                            |    |   |   |   |   |   |   |   |
| Income                available to common stockholders and assumed conversions |   | $                                               | 591,214 |   | $ | 1,715,285 |   | $ | 0.34 |   |

|                                                                           |   | Nine                months Ended March 31, 2006 |      |
|--------------------------------------------------------------------------------|--------|-------------------------------------------------|-----------|
|                                                                           |   | Income                                          |      | Weighted-Average                Shares |   | Per                Share Amount |   |
|                                                                           |   |                                            |      |   |   |   |   |
| Net                income                                                      |   | $                                               | 1,157,291 |   |   |   |   |   |   |   |
|                                                                           |   |                                            |      |   |   |   |   |   |   |   |
| Basic                earnings per share                                        |   |                                            |      |   |   |   |   |   |   |   |
| Income                available to common stockholders                         |   | $                                               | 1,157,291 |   |   | 1,498,459 |   | $ | 0.77 |   |
|                                                                           |   |                                            |      |   |   |   |   |   |   |   |
| Effect                of dilutive securities                                   |   |                                            |      |   |   |   |   |   |   |   |
| Stock                options                                                   |   |                                            | —   |   |   | 51,071 |   |   |   |   |
|                                                                           |   |                                            |      |   |   |   |   |   |   |   |
| Diluted                earnings per share                                      |   |                                            |      |   |   |   |   |   |   |   |
| Income                available to common stockholders and assumed conversions |   | $                                               | 1,157,291 |   |   | 1,549,530 |   | $ | 0.75 |   |

----

| Cash                and cash equivalents  |   | $      | 8,994  |   |
|-------------------------------------------|--------|--------|--------|--------|
| Investment                securities      |   |   | 10,032 |   |
| Net                loans                  |   |   | 39,581 |   |
| Premises                and equipment     |   |   | 618    |   |
| Goodwill                                  |   |   | 4,173  |   |
| Core                deposit intangibles   |   |   | 942    |   |
| Other                assets               |   |   | 1,712  |   |
| Total                assets acquired      |   |   | 66,052 |   |
|                                      |   |   |   |   |
| Deposits                                  |   |   | 44,540 |   |
| Long-term                debt             |   |   | 8,993  |   |
| Other                liabilities          |   |   | 748    |   |
| Total                liabilities acquired |   |   | 54,281 |   |
|                                      |   |   |   |   |
| Net                assets acquired        |   | $      | 11,771 |   |

|                                      |   | For                the three monthsEnded                March 31, |   | For                the nine monthsEnded                March 31 |   |
|-------------------------------------------|--------|-------------------------------------------------------------------|--------|-----------------------------------------------------------------|--------|
|                                      |   | 2007                                                              |   | 2006                                                            |   | 2007 |   | 2006 |   |
|                                      |   | (in                  thousands, except per share data)            |   |
| Net                interest income        |   | $                                                                 | 1,848  |                                                            | $      | 1,918 |   | $ | 5,791 |   | $ | 5,995 |   |
| Total                income               |   |                                                              | 2,234  |                                                            |   | 2,409 |   |   | 6,945 |   |   | 8,062 |   |
| Net                income                 |   |                                                              | 190    |                                                            |   | 267 |   |   | 594 |   |   | 1,234 |   |
| Basic                earnings per share   |   |                                                              | 0.11   |                                                            |   | 0.15 |   |   | 0.33 |   |   | 0.69 |   |
| Diluted                earnings per share |   |                                                              | 0.10   |                                                            |   | 0.15 |   |   | 0.33 |   |   | 0.67 |   |

----

----

|                                                                  |   | March                31, 2007 |    | June                30,2006 |   |
|-----------------------------------------------------------------------|--------|------------------------------------|---------|-----------------------------|--------|
|                                                                  |   | (unaudited)                        |    |                        |   |
| Loans                accounted for on a nonaccrual basis              |   | $                                  | 158,000 |                        | $      | 757,000 |   |
| Accruing                loans past due 90 days or more                |   |                               | 350,000 |                        |   | -- |   |
| Nonperforming                loans                                    |   |                               | 508,000 |                        |   | 757,000 |   |
| Real                estate owned (net)                                |   |                               | 197,000 |                        |   | 63,000 |   |
| Other                repossessed assets                               |   |                               | 14,000  |                        |   | 5,000 |   |
| Total                nonperforming assets                             |   | $                                  | 719,000 |                        | $      | 825,000 |   |
|                                                                  |   |                               |    |                        |   |   |   |
| Total                loans delinquent 90 days or more to total loans  |   |                               | 0.22    | %                           |   | 0.40 | % |
| Total                loans delinquent 90 days or more to total assets |   |                               | 0.16    | %                           |   | 0.26 | % |
| Total                nonperforming assets to total assets             |   |                               | 0.20    | %                           |   | 0.28 | % |

----

----

----

|                                                     |   |                                  |   | Regulatory                Minimum |   | Well                Capitalized per |   |
|----------------------------------------------------------|--------|---------------------------------------|--------|-----------------------------------|--------|-------------------------------------|--------|
|                                                     |   | Actual                                |   | Required                Capital   |   | 12                CFR Part 565      |   |
|                                                     |   | Amount                                |   | Ratio                             |   | Amount                              |   | Ratio |   | Amount |   | Ratio |   |
|                                                     |   | (Dollars                in Thousands) |   |
| As                of March 31, 2007 (unaudited)          |   |                                  |   |                              |   |                                |   |   |   |   |   |   |   |
| Total                capital (to risk weighted assets)   |   | $                                     | 25,762 |                              |   | 10.59                               | %      | $ | 19,467 |   |   | 8.00 | % | $ | 24,334 |   |   | 10.00 | % |
| Tier                I capital (to risk weighted assets)  |   |                                  | 25,738 |                              |   | 10.16                               |   |   | 9,734 |   |   | 4.00 |   |   | 14,600 |   |   | 6.00 |   |
| Tier                I capital (to adjusted total assets) |   |                                  | 25,738 |                              |   | 7.22                                |   |   | 14,261 |   |   | 4.00 |   |   | 17,826 |   |   | 5.00 |   |
|                                                     |   |                                  |   |                              |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As                of June 30, 2006                       |   |                                  |   |                              |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                capital (to risk weighted assets)   |   | $                                     | 25,930 |                              |   | 12.66                               | %      | $ | 16,387 |   |   | 8.00 | % | $  | 20,483 |   |   | 10.00 | % |
| Tier                I capital (to risk weighted assets)  |   |                                  | 26,407 |                              |   | 12.28                               |   |   | 8,193 |   |   | 4.00 |   |   | 12,290 |   |   | 6.00 |   |
| Tier                I capital (to adjusted total assets) |   |                                  | 26,407 |                              |   | 8.99                                |   |   | 11,743 |   |   | 4.00 |   |   | 14,679 |   |   | 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 |   |
|-----------------------------------------------------------|--------|-------------------------------------------------|--------|---------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|--------|
| January                1, 2007 through January 31, 2007   |   |                                            | 0      |                                        |   | N/A                                                                                                            |   |                                                                                                         | N/A    |   |   | 75,430 |   |
| February                1, 2007 through February 28, 2007 |   |                                            | 15,888 |                                        | $      | 18.05                                                                                                          |   |                                                                                                         | 15,888 |   |   | 59,542 |   |
| March                1, 2007 through March 31, 2007       |   |                                            | 183    |                                        | $      | 18.10                                                                                                          |   |                                                                                                         | 183    |   |   | 59,359 |   |
| Total                                                     |   |                                            | 16,071 |                                        | $      | 18.05                                                                                                          |   |                                                                                                         | 16,071 |   |   |   |   |

----

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

*Accounting      for Uncertainty in Income Taxes*

*Fair      Value Measurements*

*Considering      the Effects of Prior Year Misstatements When Quantifying Misstatements in      Current Year Financial Statements*

----

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

----

| 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:              May 14, 2007 | By:                                                                      | /s/              Michael H. Head |
|                             | Michael                H. HeadPresident                and Chief Executive Officer |
|                             | (principal                executive officer)                                       |
|                             |                                                                                  |                             |
|----------------------------------|---------------------------------------------------------------------------------------|----------------------------------|
|                        |                                                                             |                        |
| Dated:              May 14, 2007 | By:                                                                         | /s/              George J. Smith |
|                             | George                J. Smith Treasurer                  and Chief Financial Officer |
|                             | (principal                financial and accounting                officer)            |

----