Letter to Bancorp Shareholders

March 21, 2008

Dear Shareholder,

It is time again for the Annual Meeting of Shareholders!  I hope you will be able to join us on Friday, May 16, in Indianapolis. Here is just a brief overview of what we plan to address at the meeting:

First Internet Bancorp (“First IB”) increased its profitability, reporting net income for the 2007 calendar year of $2.8 million, a 33% increase over the prior year.  Results for the quarter ended March 31, 2008 will be posted on the website no later than May 15, 2008.

In December 2007, First Internet Bank of Indiana (“Bank”) and Landmark Mortgage Company expanded the loan origination capacity through the hiring of a local team of mortgage professionals.  On February 1, 2008, the Bank launched its mortgage origination website, allowing customers anywhere in the country to apply for a mortgage and potentially receive approval within minutes of completing the application.  These mortgage origination efforts utilize our existing back office infrastructure and therefore result in a dual channel for future loan growth.

During the last several months, we completed the conversion all of the Bank’s loan and deposit accounts to a new core processing platform, including those accounts acquired in the Landmark Financial Corporation transaction in January 2007.  This investment in technology and staff not only addressed current needs but also prepares First IB for further expansion.

We expect to address these topics as well as others in more detail at the shareholder meeting in May.  You are welcome to attend in person or by proxy.  For those of you attending the annual meeting by proxy, we must receive your proxy no later than May 15, 2008.  Please return the enclosed proxy in the enclosed postage-paid envelope at your earliest convenience.  

Following the meeting, we will post the meeting presentation on the website for those of you who are unable to attend.  The presentation will be available through a link on the home page of the Bancorp website.

Even if you plan to attend the meeting, we request that you mail in your proxy vote in case you are ultimately unable to attend.  Ballots will also be available at the meeting for voting if you have not already done so by proxy or wish to change your previously recorded vote. 
 
The meeting begins at 9:00 AM Eastern Time. For your convenience, you will find directions to the meeting location.

We hope to see you at the shareholder meeting, and, as always, we thank you for your continued support.

Sincerely,

David B. Becker
Chairman and CEO