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08.14.01

First Internet Bank of Indiana Reaches Profitability

Internet-Only Institution Reports Two Consecutive Quarters of Earnings

First Internet Bank of Indiana today announced that it has recorded two consecutive quarters of profitability. First IB's financial results reflect a growth in loan volume, reductions in overhead expenses, and the success of the institution's brand development and customer acquisition initiatives.

First IB's earnings for the first six months of 2001 were $299,901, an improvement of $2,644,469 over the comparable period in 2000. Net interest income rose by 45 percent to $2,650,887, while non-interest expense fell nearly 43 percent to $2,283,208. Total assets grew from $188,610,272 to $235,546,533 between June 30, 2000, and June 30, 2001.

"In spite of the fact that several Internet banks have been sold or absorbed into a parent company's operations, First IB demonstrates that Internet-only banking remains a solid business proposition," said David B. Becker, Chairman and CEO of First IB.

Becker noted that First IB has successfully reduced expenses without sacrificing customer service quality. He pointed to First IB's continued investment in customer care initiatives, including recent licensing of web-based CRM software from RightNow® Technologies. "Internet-based banks have long held the promise of lower costs and greater convenience for customers," Becker affirmed. "First IB does that and more, by providing our customers with extraordinary customer service."

First Internet Bank of Indiana is the first state-chartered, FDIC-insured institution to operate solely via the Internet and has customers around the country. 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.