FIRST INTERNET BANCORP ANNOUNCES YEAR-END EARNINGS
INDIANAPOLIS, IN (February 26, 2010) - First Internet Bancorp (“Bancorp”) today announced a net loss of $2,118,028, or $1.12 per share, for the year ended December 31, 2009. This compares to net income of $1,576,045, or $0.84 per share, for the year ended December 31, 2008.
While both net interest income and non-interest income for the Bancorp showed impressive growth over the prior year (12% each), these gains were more than offset by an increase in provision for loan and lease losses of $6,744,817 (140%) from prior year results. Included in the loan and lease loss reserve was a $3 million charge to provision expense during December 2009 to address a single commercial credit. Management continues to work with the borrower and believes the Bancorp will be successful in recovering approximately $2 million of the charge to the reserve.
“Unemployment and the real estate market continue to plague a portion of our customers – commercial and consumer alike,” noted Mr. David B. Becker, Chairman and CEO of First Internet Bancorp.
Management attributed the increase in net interest income to a combination of modestly higher asset yields, lower cost of funds and an increase in non-interest income derived from First Internet Bank’s growing online mortgage origination operation. Mortgage rates spent much of 2009 near historic lows, sparking a flurry of refinance opportunities. These loans were then sold into the secondary market and did not remain on the Bank’s balance sheet.
As of December 31, 2009, the Bancorp held $411.6 million in deposits, a 6% decrease from deposits as of December 31, 2008, while total loans decreased by 4% to $312.6 million.
Selected Balance Sheet Information |
|
|
December 31 |
|
2008 |
|
2009 |
|
Cash Equivalents |
25,779,837 |
|
30,016,044 |
Investment Securities |
168,806,509 |
|
133,583,840 |
Loans, net of Reserve |
324,370,456 |
|
312,607,696 |
Bank owned life insurance |
7,267,261 |
|
7,574,415 |
Goodwill |
4,687,349 |
|
4,687,349 |
Other Assets |
12,132,315 |
|
16,145,978 |
|
Total Assets |
543,043,727 |
|
504,615,322 |
|
|
Deposits |
439,241,806 |
|
411,627,338 |
FHLB Advances |
57,000,000 |
|
47,000,000 |
Other Liabilities |
1,390,594 |
|
1,224,136 |
Shareholder's Equity |
45,411,327 |
|
44,763,848 |
|
Total Liabilities & Equity |
543,043,727 |
|
504,615,322 |
Selected Income Statement Information |
|
Year Ended December 31 |
|
2008 |
|
2009 |
|
Net Interest Income |
12,282,221 |
|
13,748,059 |
Non-Interest Income |
2,585,074 |
|
2,903,331 |
Provision for Loan and Lease Losses |
(4,818,969) |
|
(11,563,786) |
Non-Interest Expense |
(8,481,377) |
|
(9,341,343) |
|
Net Income (Loss) Before Taxes |
1,566,949 |
|
(4,253,739) |
|
Tax Benefit |
9,096 |
|
2,135,711 |
|
Net Income (Loss) |
1,576,045 |
|
(2,118,028) |
|
|
|
|
Income per share: |
|
|
|
Basic |
0.84 |
|
(1.12) |
Diluted |
0.84 |
|
(1.12) |
Weighted average of shares outstanding: |
|
|
|
Basic |
1,878,466 |
|
1,892,082 |
Diluted |
1,886,466 |
|
1,892,082 |
About First Internet Bancorp
First Internet Bancorp (OTC Bulletin Board: FIBP), the parent company of First Internet Bank of Indiana, is privately capitalized with over 250 private and corporate investors. The Bancorp became effective March 21, 2006.
About First Internet Bank
With over $500 million in assets, First Internet Bank of Indiana (First IB) is the first state-chartered, FDIC-insured institution to operate solely via the Internet and has customers in all 50 states. Deposit services include checking accounts, regular and money market savings accounts with industry-leading interest rates, CDs and IRAs. First IB also offers consumer loans, conforming mortgages, jumbo mortgages, and home equity loans and lines of credit. First IB is a wholly owned subsidiary of First Internet Bancorp.
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