FIRST INTERNET BANCORP ANNOUNCES FIRST QUARTER EARNINGS
INDIANAPOLIS, IN (April 26, 2010) - First Internet Bancorp (“Bancorp”) today reported net income of $2,299,967 for the quarter ended March 31, 2010, compared to a net loss of $209,445 for the same quarter in the previous year.
Net interest income increased $666,659 (22%) from the same quarter in the prior year as a result of improved net interest margins.
Also during the first quarter, management was able to obtain new collateral from a single commercial borrower for which management had charged $3 million to provision expense in the prior quarter. The Bancorp consequently made a first quarter reversal of $2,365,573 of the original charge. Without this reversal, provision expense and net income for the quarter ended March 31, 2010, would have equaled $595,155 and $771,645, respectively – improvements of $1,433,168 and $981,090 over the first quarter in the prior year.
Further, changes in the mix of loans and improvements in the level of loan defaults allowed for a decrease in expense recognition without jeopardizing the adequacy of the reserve balance. As of March 31, 2010, the Bancorp held reserves equal to 2.34% of outstanding loan balances not held for sale, compared to 1.63% as of March 31, 2009. David Becker, Chairman and CEO of First Internet Bancorp, expressed cautious optimism for the Bancorp’s credit portfolio. “Loan losses remain higher than we would like, but it appears that our challenged credits may be stabilizing,” he stated.
The increase in net income, coupled with balance sheet management, improved the Bancorp’s capital ratios. The Bancorp remains well capitalized under risk-based capital guidelines issued by the Board of Governors of the Federal Reserve System (FRB).
Selected Balance Sheet Information |
|
|
March 31 (Unaudited1) |
|
2009 |
|
2010 |
|
Cash Equivalents |
40,191,464 |
|
37,208,411 |
Investment Securities |
168,868,849 |
|
130,055,001 |
Loans, net of Reserve |
317,416,326 |
|
313,076,236 |
Bank owned life insurance |
7,343,222 |
|
7,646,886 |
Goodwill |
4,687,349 |
|
4,687,349 |
Other Assets |
12,194,884 |
|
15,769,933 |
|
Total Assets |
550,702,094 |
|
508,443,816 |
|
|
Deposits |
449,508,658 |
|
412,771,841 |
FHLB Advances |
55,000,000 |
|
47,000,000 |
Other Liabilities |
1,333,837 |
|
1,467,845 |
Shareholder's Equity |
44,859,599 |
|
47,204,130 |
|
Total Liabilities & Equity |
550,702,094 |
|
508,443,816 |
Selected Income Statement Information |
|
March 31 (Unaudited1) |
|
2009 |
|
2010 |
|
Net Interest Income |
3,071,230 |
|
3,737,889 |
Non-Interest Income |
607,273 |
|
542,074 |
Other Than Temporary Impairment Loss |
- |
|
(259,754) |
Provision for Loan and Lease Losses |
(2,028,323) |
|
1,770,418 |
Non-Interest Expense |
(2,216,470) |
|
(2,477,825) |
|
Net Income (Loss) Before Taxes |
(566,290) |
|
3,312,802 |
|
Tax Benefit (Expense) |
356,845 |
|
(1,012,835) |
|
Net Income (Loss) |
(209,445) |
|
2,299,967 |
|
|
|
|
Income (Loss) per share: |
|
|
|
Basic |
(0.11) |
|
1.21 |
|
|
|
|
Weighted average of shares outstanding: |
|
|
|
Basic |
1,890,217 |
|
1,895,516 |
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.
1Financial results for the Bancorp are audited by external accountants on an annual basis; however, external auditors are not engaged to review quarterly information.
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