First Internet Bank of Indiana (First IB) today announced net income of $165,484 for the quarter ended September 30, 2003.
As in past quarters, net interest income represented the majority of the Bank’s revenue. Net interest margins for the Bank have declined throughout the year, prompting Bank management to look to new ways to offset the Bank’s reliance on interest rate spreads. According to David B. Becker, Chairman and CEO, “First IB is researching value-added services for the customer to grow non-interest income sources.”
Additionally, Becker noted the Bank has continued to expand its consumer loan origination abilities. Said Becker, “The Bank’s assets have grown by nearly 14% since year-end 2002, but our loan portfolio has grown 27%. We are pleased with the growth, certainly, but we will not deviate from our commitment to asset quality. We remain focused on sound loan originations and building a strong portfolio of assets.”
Becker continued, “First IB will continue to develop its lending efforts, primarily to consumers, in the months to come. Doing so will take some time and carry with it associated expenses to ensure we maintain a quality portfolio. We expect modest earnings during this process, but we believe this approach is in the long term best interest of the Bank and its stakeholders.”
As of September 30, 2003, First IB held $272.7 million in deposits, a 16% increase over deposits as of September 30, 2002. Despite the increase in deposits, overhead expenses remained consistent with prior quarters.
| Selected Balance Sheet Information | |||
| September 30 | |||
| 2002 (Unaudited) |
2003 (Unaudited) |
||
| Cash Equivalents | 4,179,471 | 30,921,490 | |
| Investment Securities | 121,433,179 | 122,824,706 | |
| Loans, net of Reserve | 149,635,392 | 180,861,915 | |
| Other Assets | 3,755,371 | 4,459,543 | |
| Total Assets | 279,003,413 | 339,067,654 | |
| Deposits | 234,094,842 | 272,678,279 | |
| FHLB Advances | 3,000,000 | 25,000,000 | |
| Other Liabilities | 804,491 | 959,933 | |
| Shareholder’s Equity | 41,104,080 | 40,429,442 | |
| Total Liabilities & Equity | 279,003,413 | 339,067,654 | |
| Selected Income Statement Information | |||
| September 30 | |||
| 2002 (Unaudited) |
2003 (Unaudited) |
||
| Net Interest Income | 1,710,388 | 1,224,961 | |
| Non-Interest Income | 227,523 | 225,884 | |
| Provision for Loan and Lease Losses | (516,595) | (101,399) | |
| Non-Interest Expense | (1,206,558) | (1,162,755) | |
| Gain on Sale of Investments | 8,662 | 22,658 | |
| Net Income Before Taxes | 223,420 | 209,349 | |
| Tax Benefit (Expense) | 713,159 | (43,865) | |
| Net Income | 936,579 | 165,484 | |
| Income per share: | |||
| Basic | 0.47 | 0.08 | |
| Weighted average of shares outstanding: | |||
| Basic | 2,006,148 | 2,010,156 | |
With $339 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.