First Internet Bank of Indiana today announced record net income of $798,735 for the quarter ended March 31, 2002. This is the fifth consecutive quarter of profitability First IB has reported
Net income has increased fourfold over the same quarter in the previous year and includes a tax benefit of $268,450. Net income for the quarter ended December 31, 2001 was $782,760, which included a tax benefit of $212,735.
“We have maintained the efficiencies and economies of scale we have achieved in our operations over the past year,” said David B. Becker, Chairman and CEO of First IB. “We continue to control costs and focus on the type of relationships we have formed with customers, rather than the sheer number of relationships. Ultimately, this strategy allows us to provide better service to our customers and greater value to our shareholders.”
As of March 31, 2002, First IB held $209.5 million in deposits, a 7% increase over deposits as of March 31, 2001. Bank management attributed the modest deposit growth to a deliberate decision to grow core transaction – online banking customers with checking and savings accounts – rather than CD-only relationships.
| Selected Balance Sheet Information | |||
| March 31, 2001 (Unaudited) |
March 31, 2002 (Unaudited) |
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| Cash Equivalents | 50,033,011 | 7,365,523 | |
| Investment Securities | 107,955,564 | 132,711,523 | |
| Loans, net of Reserve | 73,363,325 | 108,960,299 | |
| Other Assets | 1,972,627 | 3,542,984 | |
| Total Assets | 233,324,527 | 252,580,329 | |
| Deposits | 196,060,909 | 209,490,804 | |
| FHLB Advances | – | 3,500,000 | |
| Other Liabilities | 933,221 | 1,150,779 | |
| Shareholder’s Equity | 36,330,397 | 38,438,746 | |
| Total Liabilities & Equity | 233,324,527 | 252,580,329 | |
| Selected Income Statement Information | |||
| Quarter Ended March 31 2001 (Unaudited) |
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| Quarter Ended March 31 2002 (Unaudited) |
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| Net Interest Income | 1,223,535 | 1,747,197 | |
| Non-Interest Incomes | 132,421 | 174,794 | |
| Provision for Loan and Lease Losses | (309,831) | (144,496) | |
| Non-Interest Expense | (1,140,188) | (1,247,210) | |
| Gain/(Loss) on Sale of Investments | 242,702 | – | |
| Net Income Before Taxes | 148,639 | 530,285 | |
| Tax Benefit | – | 268,450 | |
| Net Income | 148,639 | 798,735 | |
| Income Per Share: | |||
| Basic | 0.08 | 0.40 | |
| Weighted average number of shares outstanding: | |||
| Basic | 1,967,494 | 2,005,079 | |
With $253 million in assets, First Internet Bank of Indiana is the first state-chartered, FDIC-insured institution to operate solely via the Internet and has customers in all 50 states. Services include interest-bearing checking accounts, regular and money market savings accounts with industry-leading interest rates, CDs, IRAs, credit cards, and check cards that can be used instead of cash or checks. First IB also offers personal lines of credit, installment loans, unique real-time transfers between accounts, and the ability to display checking, savings and loan information on a single screen. First IB is a privately capitalized institution with over 400 private and corporate investors.