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10.29.01

First Internet Bank Of Indiana Reports Third Consecutive Profitable Quarter

First Internet Bank of Indiana today announced its third consecutive quarter of profitability. First IB's earnings reflect aggressive initiatives to increase core deposits and maintain the quality and liquidity of the balance sheet.

First IB's net income for the first nine months of 2001 was $1,290,585, compared to a net loss of $3,744,929 in the comparable period in 2000. Net interest income rose by 48 percent to $4,169,280, while non-interest expense fell 46 percent to $3,361,872.

Net income for the quarter ended September 30, 2001, was $990,685, an improvement of $839,425 over the previous quarter. Net interest income rose by 6 percent during the quarter while non-interest expense fell 5 percent, demonstrating the bank's continued efforts to manage expenses. The bank's profit for the quarter included a tax benefit of $640,962.

Total assets on September 30, 2001, were $246,629,039, a 26 percent increase over the previous year.

"Our strong performance is a product of our efforts to continue our strong customer focus, control expenses, and strengthen the quality of our balance sheet by bringing in core deposits and re-investing in high quality assets," said David B. Becker, Chairman and CEO of First IB. "The fact that we are profitable in the face of a faltering economy and ongoing interest rate reductions clearly demonstrates the soundness of our business strategy."

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.