FIRST INTERNET BANCORP ANNOUNCES THIRD QUARTER EARNINGS

INDIANAPOLIS, IN October 31, 2006 - First Internet Bancorp (“Bancorp”) today announced net income of $406,440 for the quarter ended September 30, 2006, bringing its total net income year-to-date to approximately $1.7 million. Net income for the quarter decreased $87,147 (18%) from the same quarter in the previous year¹.

The Bancorp increased its levels of net interest income and non-interest income by $114,292 (5%) and $28,999 (9%), respectively, as compared to the same quarter in the previous year.  Net interest income increased due to balance sheet growth, but pressure on net interest margins kept the 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 $226,591 (47%) and $81,820 (6%), respectively.  The provision for loan and lease losses is impacted by loan growth as well as an assessment of credit quality.   Although overall loan portfolio credit quality remains good, management determined that increases in the provision were needed to maintain the overall allowance for loan and lease losses at an appropriate level. Non-interest expenses were impacted by legal expenses involved in due diligence of and preparation of the merger agreement with Landmark Financial Corporation. 

“The Bancorp announced some very positive developments during the quarter,” said Mr. David B. Becker, Chairman and CEO of the Bancorp. “On August 28, 2006, we announced the signing of a definitive agreement to acquire Landmark Financial Corporation, including its subsidiaries, Landmark Savings Bank, FSB and Landmark Mortgage.  The attractive customer base and veteran staff of Landmark make this acquisition a natural complement to the Bank’s current loan operations. The addition of Landmark’s residential real estate-related asset generation capabilities and high quality loan portfolio will further strengthen the Bank’s overall balance sheet.”

As of September 30, 2006, the Bancorp held $355.8 million in deposits, an 11% increase over deposits as of September 30, 2005.  At September 30, 2006 total loans of $309.5 million increased by 3% and total assets of $458.4 million increased by 9% over September 30, 2005.  The increases in cash equivalents and investment securities was larger at 27% and is viewed as a temporary increase until loan funding and other cash uses return cash and securities to targeted levels.

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 $450 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.