First Internet Bank of Indiana (First IB) today announced net income of $1,829,359 for the year ended December 31, 2004, an increase of $1.4 million over the prior year. The 2004 results mark the Bank’s fourth consecutive year of profitability in its six years of operations.
Total assets increased by $104.4 million (31%) over 2003 levels. Net interest income increased by $3.2 million (59%) for the year, while non-interest expenses increased by approximately $96,000 (2%) over 2003 levels.
First IB increased net loans outstanding by $82.7 million (42%) during the period. “In 2004, the Bank was successful in increasing consumer installment loan originations, providing the Bank with a higher yield and significantly improving its net interest income levels,” said David B. Becker, Chairman and CEO of First IB.
Considering this growth, First IB increased its provision expense for loan and lease losses by $556 thousand (39%) over 2003 levels in order to maintain the strength of the balance sheet. The expense is considered appropriate and commensurate with the growth in net loans outstanding.
Also during 2004, First IB introduced an enhanced bill payment interface as well as mortgage loans and two new deposit products for consumers. According to Bank management, key initiatives for the Bank in 2005 will include further process automation and non-interest income growth, while maintaining the Bank’s heritage of customer-focused service.
| Selected Balance Sheet Information | |||
| December 31 | |||
| 2003 (Audited) |
2004 (Audited) |
||
| Cash Equivalents | 862,908 | 54,414,247 | |
| Investment Securities | 134,021,538 | 96,240,146 | |
| Loans, net of Reserve | 196,694,182 | 279,368,514 | |
| FHLB of Indianapolis Stock | 1,535,000 | 2,200,900 | |
| Bank Owned Life Insurance | 0 | 6,188,474 | |
| Other Assets | 4,847,384 | 3,975,842 | |
| Total Assets | 337,961,012 | 442,388,123 | |
| Deposits | 266,032,166 | 362,244,713 | |
| FHLB Advances | 30,700,000 | 37,200,000 | |
| Other Liabilities | 790,521 | 1,058,269 | |
| Shareholder’s Equity | 40,438,325 | 41,885,141 | |
| Total Liabilities & Equity | 337,961,012 | 442,388,123 | |
| Selected Income Statement Information | |||
| December 31 | |||
| 2003 (Audited) |
2004 (Audited) |
||
| Net Interest Income | 5,387,491 | 8,545,275 | |
| Non-Interest Income | 1,188,295 | 736,430 | |
| Provision for Loan and Lease Losses | (1,418,531) | (1,974,052) | |
| Non-Interest Expense | (4,565,379) | (4,661,331) | |
| Net Income Before Taxes | 591,876 | 2,646,322 | |
| Tax Provision | (124,619) | (816,963) | |
| Net Income | 467,257 | 1,829,359 | |
| Income per share: | |||
| Basic | 0.23 | 0.91 | |
| Diluted | 0.23 | 0.90 | |
| Weighted average of shares outstanding: | |||
| Basic | 2,010,654 | 2,015,442 | |
| Diluted | 2,021,359 | 2,025,674 | |
With $442 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.