“Our staff is pleased that       2012 results improved upon a strong 2011 performance. Although most in       our industry are fighting shrinking net interest margins, our ability to       maintain yield and decrease our cost of funds, allows us to maintain a       margin that was better than most of our peers.”

The company recorded a profit of $340,724 or $.23 per share and $862,085       or $.57 per share for the quarter and year ended December 31, 2012. Net       income includes recognition of a tax benefit in the amount of $100,000       for the quarter and $250,000 for the year from the carryover of net       operating losses. Pre-tax profit was $240,724 and $612,085 for the       quarter and year ended December 31, 2012. Pre-tax performance for the       2012 periods reflects improvements of 18.5% and 11.5% over the year       earlier periods, respectively.

The improvement in profits for the year is due primarily to lower credit       costs and increased net interest income. The net interest margin       improved from 4.04% in 2011 to 4.65% in 2012, despite a lower level of       earning assets, due to a 40 basis point reduction in the cost of funds       and a 20 basis point improvement in the yield on earning assets.

Non-interest income for the year was $408,964, compared to $555,177 in       2011. The difference is almost completely attributed to the variance in       gains recorded from the sale of Small Business Administration (SBA)       loans. In 2011, the company reported substantial gains from the sale of       two large loans from a single borrower. Gains on sale of SBA loans       totaled $293,718 in 2012 and $440,876 in 2011.

Non-interest expense (generally salaries and other operating expenses)       increased by 3% compared to the previous year. The increase is due to       higher salary levels reflecting annual merit increases and the higher       cost of employee benefits. The majority of remaining expense categories       were flat or below 2011 levels.

The provision for loan loss declined from $515,000 during 2011 to       $278,000 during 2012. The reduced provision expense for the year       reflects the improved credit profile of the loan portfolio and lower       loan balances. At December 31, 2012, the allowance for loan losses was       $1,210,763, which represented 2.35% of total loans.

Non-accrual loans, Other Real Estate Owned (OREO) and renegotiated loans       totaled $4,851,280 at December 31, 2012, which reflected a 17% reduction       from December 31, 2011. Non-performing assets, which consist of       non-accrual loans, OREO, and loans past due more than 90 days were       $2,018,135 at year end, which reflected a 46% reduction from the prior       year.

All of the Bank’s capital ratios substantially exceeded the amounts       needed to be considered “well capitalized” at December 31, 2012.

President and CEO, James S. Young stated, “Our staff is pleased that       2012 results improved upon a strong 2011 performance. Although most in       our industry are fighting shrinking net interest margins, our ability to       maintain yield and decrease our cost of funds, allows us to maintain a       margin that was better than most of our peers.” Young added, “We will       continue to work toward achieving improvements in the credit risk aspect       of our business by working with borrowers. We believe 2013 will be       challenging but expect, and have planned for, quality growth throughout       the year.”

About Indiana Business Bancorp and Indiana       Business Bank

Indiana Business Bancorp is a bank holding company whose operations are       conducted through its subsidiary, Indiana Business Bank, a       state-chartered, locally-owned and managed commercial bank formed for       the purpose of providing highly-personalized banking services for small       to medium-sized businesses, their owners and professional services firms       in the Indianapolis, Indiana metropolitan area. The Bank provides a full       line of commercial banking loan, deposit, and cash management services       that are delivered in a highly personalized manner by experienced       banking professionals. The Bank specializes in serving the commercial       and consumer banking needs of small to medium sized businesses and their       owners, and professionals located primarily throughout Central Indiana.

We routinely post important information for investors on our website, http://www.indianabb.com,       in the “About” section under “Investor Relations”. We intend to use this       website as a means of providing financial and other information to       investors and other interested parties. Accordingly, investors should       monitor our website, in addition to following our press releases and       other presentations. The information contained on, or that may be       accessed through, our website is not incorporated by reference into, and       is not a part of, this document.

“Safe Harbor” Statement under the Private Securities Litigation       Reform Act of 1995: Statements in this press release regarding Indiana       Business Bank and Indiana Business Bancorp’s business which are not       historical facts are “forward-looking statements” that involve risks and       uncertainties which may cause actual results to differ materially from       expected results, including: the impact of a slowdown or recession on       our borrowing customers; volatility in the financial markets; general,       regional and local economic conditions and their effect on interest       rates; competition among banks and other financial intermediaries within       the Indianapolis metropolitan market; risks that borrowers may default       on their loans; and changes in regulations and accounting policies       affecting financial institutions.

FINANCIAL SUMMARY FOR INDIANA BUSINESS BANCORPUNAUDITED
					As of and for the Three Months Ended December 31					As of and for the Twelve Months Ended December 31
Operating Data					2012		2011			2012		2011
Net Interest Income					736,865		734,356			2,899,383		2,827,927
Provision for Loan Losses					40,000		55,000			278,000		515,000
Noninterest Income					177,303		76,975			408,964		555,177
Noninterest Expense					633,444		553,138			2,418,262		2,343,914
Pre Tax Net Income					240,724		203,193			612,085		549,190
Def Tax Benefit					100,000		250,000			250,000		250,000
After Tax Net Income					340,724		453,193			862,085		799,190
Per Share Data
Net Earnings per share					.23		.30			.57		.53
Weighted Average Shares Outstanding					1,510,093		1,507,341			1,510,093		1,507,341

					As of
Balance Sheet Data					December 31, 2012			December 31, 2011
Total Assets					64,833,104			65,567,929
Net Loans					50,187,588			52,818,804
Allowance for Loan Losses					1,210,763			1,468,949
Investment Securities					5,477,028			3,474,450
Total Deposits					50,262,609			52,501,674
Total Shareholders’ Equity					9,804,269			8,926,659

WESTERLY, R.I.–(BUSINESS WIRE)–Washington Trust announced today that it has opened The       Washington Trust Home Loan Center, a mortgage loan production office       located at 171 Service Avenue, just off Route 95 in Warwick, Rhode       Island. The office is managed by longtime Rhode Island mortgage       professional Al Grant and his team of experienced mortgage specialists.       Mortgage loan processing and underwriting is done on-site allowing for       fast, efficient mortgage processing.

“Rhode Island is our home and Washington Trust is committed to       helping Rhode Islanders with their mortgage needs”

Washington Trust, one of the top mortgage lenders in Rhode Island       and southeastern New England, also announced that the Bank is committed       to substantially increasing its lending to Rhode Island homeowners by       originating more than $300 million in mortgage loans in the Ocean State.The Bank is also committed to hiring a dozen mortgage lending       professionals to work in its expanding mortgage area.

“Rhode Island is our home and Washington Trust is committed to       helping Rhode Islanders with their mortgage needs,” said Joseph J.       MarcAurele, Washington Trust Chairman, President and Chief Executive       Officer. “Our new Warwick mortgage office is centrally       located within the State, so it is convenient for homeowners seeking       mortgage advice, competitive loan products, and outstanding personal       service.”

Washington Trust offers mortgages through its eighteen branch       offices and through Home Loan Centers in Warwick, RI; Sharon &       Burlington, MA; and Glastonbury, CT.

Homeowners or mortgage professionals interested in Washington       Trust’s Home Loan Center should call Al Grant at 401-681-4224, or       401-654-4831.

“We are excited about the addition of John to the Salin Bank team”

Christy comes to Salin Bank with nearly 30 years of banking experience       and expertise. Most recently, he served as Senior Vice President of PNC       Financial Services. He previously held senior-level positions with       financial institutions in Indiana, Georgia and Florida, and has an       impressive background in business development, bank policy, compliance,       and operational leadership.

“We are excited about the addition of John to the Salin Bank team,” said       Salin Bank CEO Bill Salin. “John brings outstanding qualifications to       this position, and his extensive experience in business banking       relationships will be invaluable to us as Salin Bank moves forward into       the future. He will ensure Salin Bank continues to make the kind of       forward-thinking decisions that benefit our business and retail clients.       We are extremely pleased to have John on board.”

As Salin Bank’s Executive Vice President, Christy will utilize his vast       knowledge of commercial banking and business development to oversee       Salin Bank’s community presidents and commercial bankers in a network of       23 branches across Indiana. He will be the primary contact for Salin       Bank’s commercial and business deposits, loans and customer experience.

WELLESLEY, Mass.–(BUSINESS WIRE)–Wellesley Bank and its subsidiary Wellesley Investment Partners,       announced the appointment of William J. Cadigan as President of       Wellesley Investment Partners, LLC (WIP). Cadigan brings thirty-five       years of experience in investment management to WIP. Earlier in his       career he was a Senior Vice President at Smith Barney in the Dallas,       Chicago and New York City offices. He was later appointed the Global       Head of the Private Client Services group for Credit Suisse First Boston       headquartered in New York City and Boston. He subsequently founded       Cadigan Capital Management, LLC, managing investment portfolios for high       net worth individuals. WIP Chairman Thomas J. Fontaine noted that “Bill       is an accomplished investment management professional who has the ideal       background to lead our growing team of investment professionals. We look       forward to his efforts to expand our client base, strengthen the firm’s       offerings and further our extraordinary client service experience.”       Cadigan is a graduate of Amherst College and resides with his family in       Wellesley.

“Bill       is an accomplished investment management professional who has the ideal       background to lead our growing team of investment professionals. We look       forward to his efforts to expand our client base, strengthen the firm’s       offerings and further our extraordinary client service experience.”

Wellesley Investment Partners is an independent Registered Investment       Advisor and is a wholly owned subsidiary of Wellesley Bank. WIP provides       discretionary investment management services to individuals, not for       profit organizations, institutions, endowments and other Registered       Investment Advisors.

Established in 1911, Wellesley Bank is a Massachusetts chartered stock       cooperative bank, with total assets of $303.1 million, total deposits of       $245.2 million and total equity of $22.7 million at December 31, 2011.       Wellesley Bank is a community-oriented financial institution offering       traditional financial services, including competitive banking products       and investment management services, within its local communities through       its executive office and two full service offices located in Wellesley,       Massachusetts. Wellesley Bank is a wholly owned subsidiary of Wellesley       Bancorp, Inc. (Nasdaq Capital Market: WEBK).

OMAHA, Neb.–(BUSINESS WIRE)–McCarthy Capital Corporation, a leading middle-market private equity       investment firm based in Omaha, NE, is pleased to announce that Michael       McGovern has joined the firm as a Principal. He will be based in       McCarthy’s Boston office. His primary responsibilities will include       sourcing, evaluating and structuring investments, and managing portfolio       companies.

Before joining McCarthy, Michael was a Partner at Wincove Capital, a       lower middle market private equity firm, which he co-founded in 2008.       Previously, he was a Partner at Hampshire Equity Partners, a NY-based       private equity firm where he spent 10 years, and which had approximately       $900 million under management. Michael has served in a Board capacity       for numerous privately held companies, and began his career in the       investment banking group at Alex. Brown.

Bob Emmert, co-Managing Partner of McCarthy, commented, “Mike is a       valuable addition to our team. He has led numerous successful       investments for both of his prior firms, sourced transactions in the       Midwest, and has extensive experience in building value through strong       partnerships with middle market management teams. We are thrilled to       welcome Mike to our team of investment professionals”.

Industry Veteran Brings 30+ Years Experience to Investment Banking

NEW YORK–(BUSINESS WIRE)–Wells Fargo Securities, part of Wells Fargo & Company (NYSE: WFC), today       announced that Eric Fornell has joined the company as Vice Chairman in       the energy and power sector of its Investment Banking and Capital       Markets division. Fornell will provide advice and expertise to clients       in the power industry as well as the broader energy space with emphasis       on mid-stream companies. He is based in New York and reports jointly to       Rob Engel and Jonathan Weiss, co-heads of Investment Banking and Capital       Markets.

“He brings strong industry knowledge and       long-standing customer relationships to our platform. Eric’s addition is       part of our steady, consistent focus on providing our clients with deep       industry content and trusted advice.”

“Eric is a great addition to our energy and power investment banking       team,” said Weiss. “He brings strong industry knowledge and       long-standing customer relationships to our platform. Eric’s addition is       part of our steady, consistent focus on providing our clients with deep       industry content and trusted advice.”

“We are excited to have Eric join our team,” added Engel. “He brings       more than 30 years of well-rounded experience in banking, M&A and       equities, with a direct focus on the energy and power sector. Eric is       also a great cultural fit for our team, and his leadership will be       invaluable as we continue to provide expert advice and execution for our       clients.”

Fornell’s career spans more than three decades in the energy and power       sectors. Prior to joining Wells Fargo, he held several leadership       positions at JPMorgan Chase, most recently Vice Chairman in investment       banking with responsibility for senior client coverage of companies and       private equity firms in the energy, utility and pipeline sectors. He       also initiated and led the firm’s MLP practice. Prior to JPMorgan Chase,       Fornell worked as a managing director in investment banking at Goldman       Sachs & Co., where he managed power and pipeline clients, and president       of CMS Enterprises Company, where he managed oil and gas exploration and       production, gas gathering and marketing, and renewable energy efforts.       He received his B.A. from Amherst College and studied philosophy,       politics and economics at Oxford University as a Rhodes Scholar.