First Internet Bank of Indiana today announced net income of $936,579 for the quarter ended September 30, 2002, representing its seventh consecutive quarter of profitability.
Net income before taxes for the quarter was $223,420, down 36% from $349,723 for the same quarter in the prior year. Net income before taxes for the quarter ended September 30, 2002 includes charges of $516,595 to the provision for loan and lease losses in recognition of the overall increased level of loan balances held by the Bank and some increased risk of loss from a relatively limited number of commercial credits. The expense for the provision for loan and lease losses in the comparable quarter in 2001 was $80,020.
“The general weakness in the economy has taken a toll on many commercial credits,” said David B. Becker, Chairman and CEO of First IB. “While First IB does not have significant exposure in this area, we do want to ensure that the Bank is adequately reserved for potential losses. Ultimately, as we grow the Bank, these actions strengthen the balance sheet.”
Although the Bank has not actively increased its commercial loan portfolio since early 2001, the Bank’s total loan portfolio has grown significantly. The net loans to deposit ratio was 63.92% as of September 30, 2002 as compared to 44.58% as of September 30, 2001.
| Selected Balance Sheet Information | |||
| September 30, 2001 (Unaudited) |
September 30, 2002 (Unaudited) |
||
| Cash Equivalents | 10,716,930 | 4,179,471 | |
| Investment Securities | 140,820,375 | 121,433,179 | |
| Loans, net of Reserve | 92,612,669 | 149,635,392 | |
| Other Assets | 2,479,065 | 3,755,371 | |
| Total Assets | 246,629,039 | 279,003,413 | |
| Deposits | 207,746,084 | 234,094,842 | |
| FHLB Advances | – | 3,000,000 | |
| Other Liabilities | 1,259,205 | 804,491 | |
| Shareholder’s Equity | 37,623,750 | 41,104,080 | |
| Total Liabilities & Equity | 246,629,039 | 279,003,413 | |
| Selected Income Statement Information | |||
| Quarter Ended September 30 |
|||
| 2001 (Unaudited) |
2002 (Unaudited) |
||
| Net Interest Income | 1,518,395 | 1,710,388 | |
| Non-Interest Income | 224,635 | 227,523 | |
| Provision for Loan and Lease Losses | (80,020) | (516,595) | |
| Non-Interest Expense | (1,128,602) | (1,206,558) | |
| Gain/(Loss) on Sale of Investments |
(184,685) |
8,662 |
|
| Net Income/(Loss) Before Taxes | 349,723 | 223,420 | |
| Tax Benefit | 640,962 | 713,159 | |
| Net Income | 990,685 | 936,579 | |
| Income per share: | |||
| Basic | 0.50 | 0.47 | |
| Weighted average of shares outstanding: | |||
| Basic | 1,991,010 | 2,006,148 | |
With $279 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.