FIRST INTERNET BANCORP ANNOUNCES YEAR-END EARNINGS

INDIANAPOLIS, IN (February 22, 2007) - First Internet Bancorp (“Bancorp”) today announced net income of $2,129,878 for the year ended December 31, 2006. Net income for the year decreased $49,211 (2%) from the previous year¹.  Earnings per share increased from $1.08 per share as of December 31, 2005 to $1.11 per share as of December 31, 2006 based on the Company’s profitability coupled with a reduction in outstanding shares.

The Bancorp increased its levels of net interest income and non-interest income by $485,966 (5%) and $195,705 (16%), respectively, as compared to the previous year.  Net interest income increased due to balance sheet growth; at December 31, 2006, the Bancorp held total assets of $483.5 million, a 12% increase over the prior year.  However, pressure on net interest margins kept the net interest income increase from being proportionate with the growth of earning assets.  Non-interest income continues to increase as a result of customers’ increased usage of fee-based services. 

Increases in income were more than offset by increases in the provision for loan and lease losses and non interest expense, which increased $301,842 (15%) and $655,432 (12%), respectively.  The provision for loan and lease losses was impacted by loan growth as well as an assessment of credit quality.   Although management believes the overall loan portfolio remains of good credit quality, recent default patterns called for increases in the provision in order to maintain the overall allowance for loan and lease losses at an appropriate level. Non-interest expenses were impacted by legal costs related to the repurchase of a dissenting shareholder’s shares in a transaction completed in June 2006 as well as additional operating expenses driven by the Bancorp’s increase in total deposits.

“The Bancorp was incorporated in March 2006 to improve flexibility and allow us to seek out opportunities for enhancement and expansion of our operations,” said Mr. David B. Becker, Chairman and CEO of the Bancorp. “On January 1, 2007, we closed the acquisition of Landmark Financial Corporation, including its subsidiaries, Landmark Savings Bank, FSB and Landmark Mortgage.  Another of what we plan to be many steps we take to enhance shareholder value.”

As of December 31, 2006, the Bancorp held $383.5 million in deposits, an 18% increase over deposits as of December 31, 2005, while total loans increased by 4% to $309.8 million. The increase in cash equivalents and investment securities was larger at 28% and is viewed as a temporary situation until loan funding and other opportunities return cash and securities to targeted levels.

About First Internet Bancorp
First Internet Bancorp, the parent company of First Internet Bank of Indiana and Landmark Mortgage Company, is privately capitalized with over 250 private and corporate investors.  The Bancorp became effective March 21, 2006, and is listed on the OTC Bulletin Board (www.otcbb.com) under the symbol of "FIBP".

About First Internet Bank
With $480 million in assets, First Internet Bank of Indiana (First IB) is the first state-chartered, FDIC-insured institution to operate solely via the Internet and has customers in all 50 states. Services include interest-bearing checking accounts, regular and money market savings accounts with industry-leading interest rates, CDs, IRAs, credit cards, and check cards that can be used instead of cash or checks. First IB also offers personal lines of credit, installment loans, unique real-time transfers between accounts, and the ability to display checking, savings and loan information on a single screen. First IB is a wholly owned subsidiary of First Internet Bancorp.

¹The Bancorp became effective in March 2006.  Prior year’s financials are for First Internet Bank of Indiana, now a wholly owned subsidiary of the Bancorp.