First Internet Bank of Indiana (First IB) today announced net income of $493,588 for the quarter ended September 30, 2005, comparable to the results reported from the same quarter in the previous year.
As of September 30, 2005, First IB held $319.5 million in deposits, a 2% increase over deposits as of September 30, 2004. The Bank’s total assets grew by $27 million, or 7%, as compared to the same quarter in the previous year.
“Modest balance sheet growth in recent quarters is a deliberate action on the part of the Bank,” noted David B. Becker, Chairman and CEO of First IB. “A flat yield curve creates serious margin pressures. Our short-term cost of funds has climbed through interest rate increases on our checking and savings accounts, yet these increases are not proportionately offset by income yields on our asset portfolios. As economic conditions improve, the Bank will be able to utilize its balance sheet capacity for more profitable growth through continued loan originations.”
To assist in efficiently originating and servicing these loans, the Bank has implemented a new loan origination system, streamlining several of the Bank’s existing processes.
“First IB is working to improve its overall return on assets through profitable asset growth and increasing non-interest income sources,” stated Mr. Becker. “We’re not looking to grow the size of the balance sheet just for the sake of saying we’re a larger institution.”
| Selected Balance Sheet Information | |||
| September 30, 2004 (Unaudited) |
September 30, 2005 (Unaudited) |
||
| Cash Equivalents | 22,403,799 | 11,730,258 | |
| Investment Securities | 100,380,823 | 95,473,454 | |
| Loans, net of Reserve | 264,975,687 | 301,011,276 | |
| Other Assets | 4,174,147 | 10,483,553 | |
| Total Assets | 391,934,456 | 418,698,541 | |
| Deposits | 313,128,104 | 319,488,000 | |
| FHLB Advances | 36,200,000 | 54,700,000 | |
| Other Liabilities | 1,020,477 | 1,312,216 | |
| Shareholder’s Equity | 41,585,875 | 43,198,325 | |
| Total Liabilities & Equity | 391,934,456 | 418,698,541 | |
|
Selected Income Statement Information
|
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| Quarter Ended Sept 30, 2004 (Unaudited) |
Quarter Ended Sept 30, 2005 (Unaudited) | Nine Months Ended Sept 30, 2005 (Unaudited) | |||
| Net Interest Income | 2,393,030 | 2,262,691 | 6,909,342 | ||
| Non-Interest Income | 181,661 | 312,732 | 891,725 | ||
| Provision for Loan and Lease Losses | (644,418) | (478,987) | (1,364,956) | ||
| Non-Interest Expense | (1,215,221) | (1,419,098) | (4,059,199) | ||
| Net Income Before Taxes | 715,052 | 677,338 | 2,376,912 | ||
| Tax Expense | (219,054) | (183,750) | (688,923) | ||
| Net Income | 495,998 | 493,588 | 1,687,989 | ||
| Income per share: | |||||
| Basic | 0.25 | 0.24 | 0.84 | ||
| Weighted average of shares outstanding: | |||||
| Basic | 2,015,018 | 2,019,946 | 2,019,946 | ||
With $419 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 350 private and corporate investors.