First Internet Bank of Indiana (First IB) today announced net income of $373,051 for the quarter ended June 30, 2004, down from the preceding quarter, but up over 350% from the same quarter in the previous year.
The Bank’s loan portfolio grew by $71.4 million, or 40%, as compared to the same quarter in the previous year and $34.2 million, or 16%, as compared to the prior quarter, as First IB continued to build its consumer installment portfolio.
Changes in the Bank’s asset mix and continued loan growth required a corresponding increase in the Provision for Loan and Lease Losses, which increased expenses by $350,235 over the prior quarter and resulted in the decrease in net income. Consumer installment loans are typically higher yielding assets than mortgages or securities and with the appropriate addition of loan loss reserves do not pose unnecessary credit risks, due to the Bank’s established underwriting policies and procedures.
“First IB has steadily expanded its lending capabilities, reducing the Bank’s dependence on purchased loan pools,” said David B. Becker, Chairman and CEO of First IB. “We consider the Bank’s overall credit quality to be very good and plan to continue with a disciplined approach to building the balance sheet.”
Despite net income of $373,051 in the quarter ended June 30, 2004, equity was reduced from the prior quarter due to a $1.6 million equity reduction from a “mark to market” adjustment on securities available for sale.
As of June 30, 2004, First IB held $290.4 million in deposits, a 9% increase over deposits as of June 30, 2003. Even though there has been significant growth within both assets and deposits, the Bank has been able to control overhead expenses, keeping them consistent with prior quarters.
| Selected Balance Sheet Information | |||||
| June 30, 2003 (Unaudited) |
March 31, 2004 (Unaudited) | June 30, 2004 (Unaudited) | |||
| Cash Equivalents | 12,132,566 | 3,801,195 | 10,983,342 | ||
| Investment Securities | 137,115,878 | 127,001,864 | 103,672,245 | ||
| Loans, net of Reserve | 180,160,740 | 217,375,412 | 251,527,149 | ||
| Other Assets | 4,267,704 | 4,005,250 | 4,508,057 | ||
| Total Assets | 333,676,888 | 352,183,721 | 370,690,793 | ||
| Deposits | 267,162,215 | 283,365,535 | 290,380,208 | ||
| FHLB Advances | 25,000,000 | 26,200,000 | 38,565,000 | ||
| Other Liabilities | 866,083 | 1,127,038 | 1,420,339 | ||
| Shareholder’s Equity | 40,648,590 | 41,491,148 | 40,325,246 | ||
| Total Liabilities & Equity | 333,676,888 | 352,183,721 | 370,690,793 | ||
| Selected Income Statement Information | |||||
| June 30, 2003 (Unaudited) |
March 31, 2004 (Unaudited) | June 30, 2004 (Unaudited) | |||
| Net Interest Income | 1,270,437 | 1,964,340 | 2,033,930 | ||
| Non-Interest Income | 223,925 | 226,738 | 171,953 | ||
| Provision for Loan and Lease Losses | (252,276) | (198,757) | (548,992) | ||
| Non-Interest Expense | (1,148,021) | (1,186,001) | (1,126,547) | ||
| Net Income Before Taxes | 94,065 | 802,320 | 530,344 | ||
| Tax Expense | (13,707) | (261,159) | (157,293) | ||
| Net Income | 80,358 | 541,161 | 373,051 | ||
| Income per share: | |||||
| Basic | 0.04 | 0.27 | 0.19 | ||
| Weighted average of shares outstanding: | |||||
| Basic | 2,009,658 | 2,013,116 | 2,013,603 | ||
With $371 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.