First International Bancorp, Inc. Reports 1999 Results, 41% Annual Increase in Loan Originations and Portfolio Topping $1 Billion, Continued National Leadership in Government Program Lending and Additional Strategic Initiatives

For Immediate Release

HARTFORD, Conn., January 25, 2000 – First International Bancorp, Inc. (NASDAQ:FNCE), the parent of First International Bank, today reported that as of December 31, 1999 total loans under management were $1.076 billion, representing a 38% increase over the $779.1 million managed at December 31, 1998 and marking the first time its managed loan portfolio has exceeded one billion dollars. During 1999 loan originations totaled $551 million, representing an annual increase of 41% or $159 million, the majority of which were made to borrowers within the Company’s niche of small industrial companies and 35% of which were made in support of international trade transactions. The portfolio of loans serviced for investors totaled $926.8 million at December 31, 1999, a 41% increase over last year. Of the $149.3 million in on-balance sheet loans at December 31, 1999, 30% were reported as held for sale. Loan servicing income in 1999 totaled $5.5 million, an 82% increase over the $3.0 million figure for 1998 and commensurate with the significant increase in loans serviced for investors.

For the federal fiscal year ending September 30, 1999, the Company was again the largest combined user in the U.S. of federal commercial and international loan guarantee programs, finishing 1^st nationally (for the third year in a row) in number of U.S. Ex-Im Bank loan transactions, 1^st nationally in U.S. Department of Agriculture Business and Industry dollar loan volume, and 10^th nationally in U.S. Small Business Administration dollar loan volume. The Company’s customer base grew by 30% during 1999 to 1,238 companies at December 31^st. 78% of these borrowing relationships were with U.S.-based companies, with the number of international customers rising by 43% during 1999 compared with 26% growth in domestic customer relationships. At December 31, 1999, 72% of total customers had one or more government guaranteed loans.

The Company reported that revenue from interest income plus non-interest income rose 11.1% to $44.7 million in 1999 from $40.2 million in 1998. This 1999 revenue figure does not include the $8.9 million one-time gain from the sale of the Company’s last retail branch and related checking and savings accounts in the first quarter of the year. Net income for 1999 was reported at $6.0 million or $.72 per diluted share compared with $7.0 million of $.86 per diluted share in 1998. Fourth quarter earnings in 1999 were $1.6 million or $.19 per diluted share versus $2.3 million or $.28 per diluted share in the same period last year, as loan production was below budget in certain markets, margins on loan sales were compressed due to year-end capital markets conditions, and legal expenses were greater than budgeted.

Explaining the Company’s continued growth and federal loan program leadership together with the annual decrease in earnings, Chairman and Chief Executive Officer Brett N. Silvers said, "1999 was the pivotal year in First International’s transition from a traditional bricks-and-mortar branch bank, which was our heritage dating back to 1955, to a global finance company serving small manufacturers, distributors and wholesalers on five continents. We sold our last retail branch during the year and incurred significant expenses in connection with geographical expansion, the development of innovative credit products in the areas of trade, barter and energy financing, and legal costs associated with the Company’s mid-year bank charter conversion and regulatory matters. Market-wide Y2K liquidity concerns throughout the year contributed to compressed margins on our loan sales and securitizations."

"Our Company also began investing in Internet-based technology during 1999 in order to supplement our existing business development channels with the capability to finance business-to-business electronic commerce ("e-business") involving small industrial companies," added Silvers.

Diversification of Funding Sources

Consistent with its evolution from traditional banking toward becoming a global finance company, the Company significantly expanded its capabilities in the asset-backed market during 1999 by obtaining an increase in its commercial paper conduit facility with First Union Securities from $65 million to $95 million and establishing a new $60 million commercial paper conduit facility with First Union Securities to facilitate the sale of the unguaranteed portion of SBA loans. In addition, the Company’s existing $75 million warehouse facility with Prudential Securities for commercial term loans was broadened to permit use as either a sale or borrowing facility. Management believes these positive changes will allow for income recognition via the sale of loans on a flow basis, as well as more efficient economies of scale and improved execution of the Company’s loan securitizations.

Leslie A Galbraith, the Company’s president and chief operating officer, stated that, "The continued growth and development of our capital markets activities are a significant achievement and a major contributor to our revenue. While 1999 gains on loans sales of $19.2 million were below budget, they still represented a 13% increase over 1998 performance." Sales and borrowing facilities with major institutions now supplement wholesale and customer-derived FDIC-insured time deposits as the Company’s primary sources of funding.

Further U.S. and International Expansion

As part of its continuing geographical expansion to reach small industrial borrowers, the Company plans to open U.S. representative offices in Miami, Florida, Los Angeles, California, and Richmond, Virginia during the first half of 2000. In 1999, the Company received SBA preferred lender status in both Los Angeles and Orange Counties in California. New offices in these locations represent a strategic opportunity to leverage the Company’s existing relationships, especially in the area of international trade finance. According to Chairman and Chief Executive Officer Silvers, "Our Master Agent for Korea, Global Management and Business Resources, Inc., already has an active presence in California as a facilitator of trade with Asia. Likewise, there are significant opportunities for us in Miami, where our Brazilian Master Agent, NetPlan Corporate Finance, Ltd., and our international freight logistics strategic ally, Panalpina, already have an established base." The Company is continuing to analyze other U.S. markets in the West and South and other international markets in Asia, Latin America and Africa for expansion.

Business-to-Business Electronic Commerce Strategy

Chairman and Chief Executive Officer Silvers announced that the Company is currently pursuing discussions with companies that facilitate e-business about making available its financing capabilities to settle online transactions involving small industrial companies. According to Silvers, "First International already has multiple commercial and international credit products, a combination of offices, representatives and alliances that establish our presence in many countries, and standard, globally applicable underwriting criteria that make us a logical partner for e-business transactional marketplaces. We are pursuing alliances with online marketplaces that link buyers and sellers of products and services related to our worldwide industrial niche. First International’s goal is to be the provider of choice for global credit products delivered to our target niche through these marketplaces, which are expected to generate significant opportunities for loan growth as online transactions gain acceptance. Our e-business strategy does not represent a fundamental shift in our business model, but rather the delivery of what is already our core competence and greatest strength—financing small industrial companies worldwide—through a new medium." Silvers also reported that the Company is developing its own technical means of integrating global financing with e-business transactional marketplaces so that it can provide a turnkey solution of technology and credit to e-business strategic allies.

Dividend

Separately, the Board of Directors of First International Bancorp, Inc. declared a dividend of $.03 per share, payable on February 11, 2000 to shareholders of record as of the close of business on February 4, 2000.

First International Bancorp, Inc. specializes in providing innovative credit, trade and financial solutions to small and medium size industrial companies located in the United States and international emerging markets and is the nation’s largest combined user of loan guarantee programs made available by the U.S. Small Business Administration, U.S. Department of Agriculture and U.S. Ex-Im Bank. The Company has SBA preferred lender status in 21 districts, USDA certified lender status in several states, and Ex-Im Bank AA delegated authority for export working lines of credit on a national basis. The Company operates domestic representative offices in Boston, MA, Cleveland, OH, Detroit, MI, Hartford, CT, Morristown, NJ, Philadelphia, PA, Pittsburgh, PA, Providence, RI, Rochester, NY, Springfield, MA, St. Louis, MO, and Washington, DC. The Company also has international representatives in Argentina, Brazil, Central America, Egypt, India, Indonesia, Korea, Mexico, the Philippines, Poland, South Africa, Turkey and West Africa. Additional information on the Company can be obtained through its web site at http://www.upscapital.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Any statements contained in this press release, which are not historical facts, are forward-looking statements; and, therefore, many important factors could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, changes (legislative, regulatory and otherwise) in the banking and commercial finance industries and those specifically relating to the continuation in their present form of the government guaranteed loan programs utilized by the Company; the ability of the Company to continue its recent growth in an increasingly competitive market for loan originations; disruption in the capital markets which may delay or prevent the Company from receiving funding under warehouse lines of credit or completing loan sales and securitizations; and other risks identified in the Company’s Securities and Exchange Commission filings.

Financing Manufacturers Worldwide^® is a registered trademark of First International Bank.

MEDIA
CONTACT:

Frank P. La Monaca
Executive Vice President & CAO
First International Bank
(860) 241-4704
lamonacaf@firstinterbank.com

INVESTOR
CONTACT:

Brett N. Silvers                              
Chairman & CEO                          
First International Bank
(860) 241-2517
silversb@firstinterbank.com

Leslie A. Galbraith
President & COO
First International Bank
(860) 241-2529
galbraithl@firstinterbank.com