Press release-5-15-2001

First International Bancorp Reports First Quarter 2001 Results

HARTFORD, Conn., May 15, 2001—First International Bancorp, Inc. (NASDAQ: FNCE), parent of First International Bank, today reported net income of $303,000 ($.04 per diluted share) for the quarter ended March 31, 2001, compared with $2.1 million ($.26 per diluted share) in the same period last year.

Total gains on loan sales in first quarter 2001 were $5.0 million, approximately the same as first quarter 2000, as increased gains from the sale of federally guaranteed loans were offset by a decline in gains from the sale of loan-backed securitizations following the company’s exit from new securitization activities after 2000. Costs impacting first quarter 2001 net income included $625,000 ($.08 per diluted share) related to the company’s pending merger with United Parcel Service, Inc. (NYSE:UPS) and $497,000 ($.06 per diluted share) for an impairment charge on an interest-only strip held for one of the company’s seven securitizations.

Loan originations during the first quarter of 2001 were $114.1 million, representing an 11% increase over the $102.5 million in loans originated during first quarter 2000. The company increased the percentage of federally guaranteed loans to 82% of total originations in first quarter 2001 from 65% of total originations in first quarter 2000 in response to market demand from its core client base of small industrial businesses, the slowing economy, and the heightened risk environment. Total loans managed by the company were $1.3 billion at March 31, 2001, an 18% increase from $1.1 billion at March 31, 2000.

First International Bank reported balance sheet non-performing loans at March 31, 2001 of $5.3 million, representing 3.27% of balance sheet loans, compared with 2.75% ($4.2 million) at December 31, 2000 and 3.20% ($4.6 million) at March 31, 2000. Net charge-offs for first quarter 2001 were $773,000, commensurate with fourth quarter 2000 net charge-offs of $754,000. The company made a provision for loan losses of $1.0 million during the first quarter, bringing the Allowance for Loan and Lease Losses to $5.8 million at March 31, 2001.

Brett N. Silvers, Chairman and CEO, commented, "The quarterly results reflect solid performance in our small business lending niche, especially in light of the time and attention our staff has dedicated to pre-integration activities related to our pending merger with UPS."

In January 2001, First International entered into a definitive merger agreement with UPS. "We have made good progress toward achieving the conditions for closing with UPS early in the third quarter," stated Silvers. As required by the UPS merger agreement, the company announced a definitive agreement on May 2, 2001 to sell its FDIC-insured deposits to Hudson United Bank. A special meeting of shareholders to formally consider the UPS transaction will be held on June 1, 2001.

About First International Bank and First International Bancorp Inc.

First International Bank (www.upscapital.com), a world leader in the use of SBA, USDA and Export-Import Bank loans, provides innovative credit, trade and financial solutions for small and medium-sized industrial businesses. The company has more than 100 experienced lending officers located in 15 U.S. offices, and 14 international representatives. In 2000, the company originated more than $500 million in loans primarily within its industrial niche, and closed the year with a managed loan portfolio of $1.3 billion. Established in 1955, the bank is a subsidiary of publicly traded First International Bancorp Inc. (NASDAQ: FNCE), with headquarters in Hartford, Connecticut.

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 other risks identified in the company’s Securities and Exchange Commission filings. In addition, with respect to the proposed merger of the company and UPS, investors should be aware of the following factors, among others: the possibility that the proposed merger will not be consummated as a result of failure to satisfy certain conditions; the possibility that the proposed merger will be delayed substantially; the inability to obtain, or meet conditions imposed for, governmental approvals of the proposed merger and other transactions described in the merger agreement; the possibility that the announcement of the proposed merger will have an adverse impact on the company’s business; and the significance of costs relating to the proposed merger.

Additional Information

In connection with the proposed acquisition of the company by UPS, UPS has filed a Registration Statement on Form S-4 with the SEC, which contains the company’s proxy statement for the company’s upcoming special stockholder meeting, at which the proposed merger will be considered. Stockholders of the company are urged to read the proxy statement because it contains important information. Stockholders may obtain a free copy of the proxy statement and other documents filed by the company and UPS with the SEC at the SEC’s web site at http://www.sec.gov. Free copies of the proxy statement and other filings by the company with the SEC may also be obtained by directing a request to Leslie A. Galbraith, Telephone: 860-241-2529.

FIRST INTERNATIONAL BANCORP, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
Unaudited

ASSETS

	March 31,	December 31,
	2001	2000

Cash and cash equivalents...................................................	$10,106	$29,365
Investment securities...........................................................	58,533	59,201
Loans, net..........................................................................	150,623	142,225
Receivable from loans sold...................................................	46,496	56,097
Investment in unconsolidated subsidiaries.............................	18,189	19,758
Premises and equipment, net...............................................	4,352	4,548
Servicing asset...................................................................	40,145	35,962
Prepaid expenses and other assets.....................................	16,205	15,072

Total assets...................................................................	$344,649	$362,228


LIABILITIES AND STOCKHOLDERS' EQUITY

	March 31,	December 31,
	2001	2000

Deposits.............................................................................	$262,373	$297,187
Loan facilities......................................................................	13,505	-
Other liabilities....................................................................	6,853	5,484
Total liabilities.................................................................	282,731	302,671

Stockholders' equity:
Preferred stock ($.10 par value; 2,000,000 shares
authorized; no shares issued and outstanding)...................	-	-
Common stock ($.10 par value; 12,000,000 shares
authorized; shares issued and outstanding:
8,042,019 and 8,279,574)................................................	804	828
Paid-in capital in excess of par value.....................................	32,640	32,846
Retained earnings, net.........................................................	28,474	25,883

Total stockholders' equity.................................................	61,918	59,557

Total liabilities and stockholders' equity.............................	$344,649	$362,228

FIRST INTERNATIONAL BANCORP, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share amounts)
Unaudited

			Three Months Ended
			March 31,
			2001	2000
Interest income:
	Loans, including net fees.............................................................		$4,614	$4,512
	Investment securities..................................................................		1,545	770
	Federal funds sold......................................................................		546	593
		Total interest income.................................................................	6,705	5,875
Interest expense			4,660	3,691
	Net interest income.....................................................................		2,045	2,184
Provision for possible loan losses			1,023	558
	Net interest income after
		provision for possible loan losses................................................	1,022	1,626
Non-interest income:
	Gain on sale of:
		Guaranteed loans......................................................................	4,144	2,584
		Other loans...............................................................................	232	217
		Securitizations and sales to conduits..........................................	602	2,220
	Total gains on loan sales.........................................................		4,978	5,021

	Loan servicing income and fees....................................................		2,504	1,923
	Impairment on retained interests...................................................		(776)	-
	Income from unconsolidated companies........................................		32	352
	Other income..............................................................................		25	36
		Total non-interest income........................................................	6,763	7,332
	Total operating income...........................................................		7,785	8,958
Non-interest expense:
	Salaries and benefits...................................................................		4,235	3,702
	Occupancy.................................................................................		531	486
	Office expenses..........................................................................		225	222
	Marketing....................................................................................		424	391
	Furniture and equipment...............................................................		388	334
	Outside services..........................................................................		997	376
	Other..........................................................................................		178	161
	Total non-interest expense.......................................................		6,978	5,672
		Income before income taxes....................................................	807	3,286
Provision for income taxes ........................................................			504	1,144
		Net income...........................................................................	$303	$2,142

Basic earnings per common share.............................................			$0.04	$0.26
Diluted earnings per common share...........................................			$0.04	$0.26
Weighted average shares for the
periods:
Basic EPS.................................................................................			8,108,094	8,261,203
Diluted EPS...............................................................................			8,218,845	8,384,175

FIRST INTERNATIONAL BANCORP, INC. AND SUBSIDIARY
SELECTED FINANCIAL HIGHLIGHTS
(dollars in thousands)
Unaudited

	For the Three Months Ended		For the Three Months Ended
	March 31, 2001		March 31, 2000
	Principal		Principal
	Balance	Percentage	Balance	Percentage
Lending and Servicing Activity:
Loan Originations:
SBA......................................................	$47,078	41%	$28,386	28%
USDA....................................................	16,952	15%	7,350	7%
Other commercial...........................................	12,526	11%	23,090	23%
Domestic.............................................	76,556	67%	58,826	57%

Exim working capital..............................................	8,075	7%	16,078	16%
Exim term.......................................................	21,848	19%	14,921	16%
Other international...................................	7,574	7%	12,701	12%
International.......................................	37,497	33%	43,700	43%

Total Originations.............................	$114,053	100%	$102,526	100%

Loan Sales:
SBA.......................................................	$33,193	42%	$18,590	18%
USDA...................................................	11,222	14%	5,880	6%
Loan-backed securitizations....................................	5,152	6%	25,847	25%
Loans to commercial paper conduits and other facilities.....................................	0	0%	18,196	18%
Other commercial ..........................................	7,962	10%	5,437	5%
Domestic..............................................	57,529	72%	73,950	72%

Exim working capital..............................................	6,100	8%	13,030	13%
Exim term......................................................	15,888	20%	16,287	16%
International.........................................	21,988	28%	29,317	28%

Total Sales............................................	$79,517	100%	$103,267	100%

Total Loans Serviced for Others...............................	$1,150,165		$967,347
Total Loans Under Management..............................	$1,311,487		$1,110,516

FIRST INTERNATIONAL BANCORP, INC. AND SUBSIDIARY
SELECTED FINANCIAL HIGHLIGHTS
(dollars in thousands)
Unaudited

	Three Months Ended March 31,
	2001	2000
Financial:
Return on average assets (ROAA)..................................	0.34%	2.73%
Return on average equity (ROAE)...................................	2.05%	15.62%

Book value per share.....................................................	$7.70	$7.13

Net interest margin........................................................	2.92%	3.25%

Efficiency ratio..............................................................	79.23%	59.61%


Capital Ratios:
Total capital to risk weighted assets..............................	10.57%	11.32%
Leverage ratio .............................................................	11.88%	17.22%




Asset Quality:
Allowance for loan losses..................................................	$5,800	$4,550

Total non-performing loans.................................................	$5,272	$4,583
Total non-performing loans / loans and loans held for sale.....	3.27%	3.20%
Total non-performing loans / assets....................................	1.53%	1.46%

MEDIA CONTACT:

Michele Zommer
Vice President, Corporate Communications
(860) 241-4705
zommerm@firstinterbank.com

INVESTOR CONTACT:

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

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