First Internet Bancorp Announces Second Quarter Earnings

INDIANAPOLIS--(Business Wire)--
First Internet Bancorp ("Bancorp") (OTCBB:FIBP) today announced
net income of $437,382 for the quarter ended June 30, 2008, a decrease
of $409,280, or 48%, from the same quarter in the previous year.
However, the results reflect an increase of 18% over net income of
$369,939 for the first quarter in 2008.

Second quarter operating results include a $1.1 million provision
for credit losses. The provision exceeded net charge-offs by $343
thousand and resulted in an increase in the allowance for loan and
lease losses. "Quite simply, this is a challenging credit
environment," said Chairman and Chief Executive Officer David B.
Becker. "We remain focused on working through this difficult economic
environment and believe our credit issues are manageable.
Nonperforming assets and net charge-offs from consumer installment
loans increased during the quarter, as did the provision for credit
losses. The additional allowance is prudent given the current economic
conditions and its resulting effects on the consumer. We find it
encouraging that our mortgage operations are producing solid results
and experiencing minimal delinquency."

Continuing a trend from the first quarter, second quarter mortgage
loan originations were up 9% over the second quarter of 2007, with
year-to-date originations exceeding 2007 by 30%. First Internet Bank
("First IB," the "Bank") continues to enhance its direct-to-consumer,
Internet-based lending platforms, which allow the Bancorp to
reposition First IB and Landmark Mortgage Company ("LMC") staff and
facilities. These portable technology enhancements improve efficiency
and reduce the companies' overall costs of operations by allowing LMC
to eliminate loan production offices while supporting loan officers'
efforts to serve customers from virtually anywhere. Further, the Bank
is working with a number of quality builder and real estate companies
to expand its origination channels.

The Bank also anticipates expanding its mortgage offerings during
the third quarter to include second mortgages, home equity loans, and
lines of credit, leveraging the Internet-based platform the Bank
rolled out in February of this year to offer first mortgages.

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Selected Balance Sheet Information

June 30 (Unaudited(1))
2007 2008

Cash Equivalents 21,543,536 3,857,694
Investment Securities 116,825,557 181,350,657
Loans, net of Reserve 352,101,875 331,810,395
Bank owned life insurance 6,825,896 7,117,259
Goodwill 4,687,349 4,687,349
Other Assets 6,261,935 8,443,177

Total Assets 508,246,148 537,266,531

Deposits 410,571,158 442,941,359
FHLB Advances 51,700,000 48,000,000
Other Liabilities 2,344,678 1,407,261
Shareholder's Equity 43,630,312 44,917,911

Total Liabilities & Equity 508,246,148 537,266,531
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Selected Income Statement Information

Quarter Ended June 30
(Unaudited(1))
2007 2008

Net Interest Income 3,005,804 3,025,452
Non-Interest Income 373,038 757,179
Provision for Loan and Lease Losses (129,127) (1,110,782)
Non-Interest Expense (2,100,519) (2,222,809)

Net Income Before Taxes 1,149,196 449,040

Tax Expense (302,534) (11,658)

Net Income 846,662 437,382

Income per share:
Basic 0.45 0.23

Weighted average of shares outstanding:
Basic 1,865,035 1,876,123
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About First Internet Bancorp

First Internet Bancorp, the parent company of First Internet Bank
of Indiana and Landmark Mortgage Company, is 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 over $530 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.
Deposit services include checking accounts, regular and money market
savings accounts with industry-leading interest rates, CDs and IRAs.
First IB also offers credit cards, personal lines of credit,
installment loans, and mortgages. First IB is a wholly owned
subsidiary of First Internet Bancorp.

About Landmark Mortgage Company

Landmark Mortgage Company operates in the metropolitan
Indianapolis area providing various mortgage products and services to
clients in central Indiana and beyond. Landmark Mortgage Company is a
wholly owned subsidiary of First Internet Bancorp.

(1) Financial results for the Bancorp are audited by external
accountants on an annual basis; however, external auditors are not
engaged to review quarterly information.

First Internet Bancorp
Nicole Lorch, 317-532-7906

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