FIRST INTERNET BANCORP ANNOUNCES SECOND QUARTER EARNINGS

INDIANAPOLIS, IN July 31, 2006 - First Internet Bancorp (“Bancorp”) today announced net income of $782,091 for the quarter ended June 30, 2006, bringing its total net income year-to-date to approximately $1.3 million. Net income for the quarter increased $264,402 (51%) from the same quarter in the previous year¹.

A significant decrease in the provision for loan loss expense, a key determinant in the earnings improvement, was attributable to two factors.   Recoveries in the current year of $322,580 from loans previously written off as uncollectible exceeded those in the same period of the prior year by $247,440.  The Bancorp was able to further reduce provision expense by approximately $200,000 through its ongoing collections efforts.

Also a component of earnings improvement, the Bancorp increased its levels of net interest income and non-interest income by $161,329 (7%) and $36,112 (12%), respectively, as compared to the same quarter in the previous year.  Net interest income increased due to modest balance sheet growth and non interest income as a result of customers’ increased usage of fee-based services.

As of June 30, 2006, the Bancorp held $345.5 million in deposits, a 9% increase over deposits as of June 30, 2005. Non-interest expenses have increased by $339,346 (28%) over 2005 levels, primarily due to legal expenses involved in the execution and finalization of the Plan of Exchange effective on March 21, 2006.  With the June 2006 completion of all matters related to the Plan of Exchange, the Bancorp expects that its expense levels will decrease and remain significantly below those of traditional “brick and mortar” financial institution holding companies of similar size.

“The Bancorp experienced several significant one time events in the current quarter, both on the positive and negative side that were largely offsetting,” said Mr. David B. Becker, Chairman and CEO of the Bancorp. “The end result is a solid quarter and marked progress in our efforts to improve financial performance and increase shareholder value.”

About First Internet Bancorp
First Internet Bancorp is a single-bank holding company, 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 $445 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.

¹ The 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.