This article reviews banker experience with Internet banking based on responses to the 2001 Survey of Commercial Banks in the Tenth Federal Reserve District. The performance of bank Web sites (measured by customer enrollment, usage rate, fee revenues, and generation of new customers) has been modest but is similar to experience of most U.S. banks. Developing policies, working with vendors, regulatory requirements, security, and marketing and promotion head the list of activities that challenge banks when installing and operating Web sites. Long-term strategic factors, such as remaining competitive, retaining customers, and updating technology motivate banks to establish Web sites. Banks with Web sites have less immediate concern with reducing costs and adding revenue. In sharp contrast, high cost and lack of customer demand are most important for banks that have decided not to install a Web site. Despite their skepticism, most banks without a Web site plan to install one within the next few years. The concluding section discusses implications of these findings for bankers, bank supervisors, and policy makers.