FIRST INTERNET BANCORP ANNOUNCES FIRST QUARTER EARNINGS
INDIANAPOLIS, IN (April 28, 2009) - First Internet Bancorp (“Bancorp”) today announced financial results for the first quarter. Success in new residential mortgage lending programs fueled an increase in non-interest income to $755,719, as gains from the origination and sale of these loans were realized. Net interest income increased to $3,082,224, as the Bancorp improved yields on consumer and commercial loans. In spite of these gains, the Bancorp reported a net loss of $209,445, compared to net income of $369,939 for the same quarter in the previous year.
Provision for loan and lease losses increased $1.1 million from the same quarter in the prior year. Increased charge-offs of consumer loans prompted management to recognize additional provision expense and increase the balance held in loan loss reserves for potential future losses. As of March 31, 2009, the Bancorp holds reserves equal to 1.65% of outstanding loan balances, compared to 1.00% as of March 31, 2008.
“Clearly, consumer loan losses are higher than we would like to see and are, we believe, the direct result of the economic reality we are weathering as a nation,” said David Becker, Chairman and CEO of First Internet Bancorp. “We regard the number of bankruptcy filings in the United States as one indicator of the financial hardship Americans face. During the first quarter of 2009, bankruptcy filings increased by 46% over the previous year.”
“While the financial health of our borrowers is outside our immediate control, we put an emphasis on the factors we are able to influence,” Becker continued. “We continue to work with our borrowers in every way possible to meet their credit obligations. At the same time, we continue to move forward with innovation and new lending programs to improve our financial performance. We believe that we have an opportunity and responsibility to continue lending and have identified profitable ways to carry out this mission.”
In January 2009, the Bancorp affirmed its commitment to remain a lending source to the market and demonstrated this commitment in April 2009, when it announced its offering of a jumbo mortgage loan program at a time when many institutions had abandoned these borrowers by withdrawing from the market.
Selected Balance Sheet Information |
|
|
March 31 (Unaudited1) |
|
2008 |
|
2009 |
|
Cash Equivalents |
24,376,478 |
|
40,191,464 |
Investment Securities |
179,706,456 |
|
172,928,261 |
Loans, net of Reserve |
343,126,320 |
|
317,416,326 |
Bank owned life insurance |
7,041,990 |
|
7,343,222 |
Goodwill |
4,687,349 |
|
4,687,349 |
Other Assets |
6,843,835 |
|
8,135,472 |
|
Total Assets |
565,782,428 |
|
550,702,094 |
|
|
Deposits |
470,916,805 |
|
447,392,163 |
FHLB Advances |
46,000,000 |
|
55,000,000 |
Other Liabilities |
2,904,167 |
|
3,450,332 |
Shareholder's Equity |
45,961,456 |
|
44,859,599 |
|
Total Liabilities & Equity |
565,782,428 |
|
550,702,094 |
Selected Income Statement Information |
|
March 31 (Unaudited1) |
|
2008 |
|
2009 |
|
Net Interest Income |
2,769,636 |
|
3,082,224 |
Non-Interest Income |
700,784 |
|
755,719 |
Provision for Loan and Lease Losses |
(898,290) |
|
(2,028,324) |
Non-Interest Expense |
(2,235,678) |
|
(2,375,909) |
|
Net Income (Loss) Before Taxes |
336,452 |
|
(566,290) |
|
Tax Benefit |
33,487 |
|
356,845 |
|
Net Income (Loss) |
369,939 |
|
(209,445) |
|
|
|
|
Income (Loss) per share: |
|
|
|
Basic |
0.20 |
|
(0.11) |
|
|
|
|
Weighted average of shares outstanding: |
|
|
|
Basic |
1,872,739 |
|
1,890,217 |
About First Internet Bancorp
First Internet Bancorp, the parent company of First Internet Bank of Indiana and Landmark Mortgage Company, is privately capitalized with over 250 private and corporate investors. The Bancorp became effective March 21, 2006, and is listed on the OTC Bulletin Board (www.otcbb.com) under the symbol of "FIBP".
About First Internet Bank
With over $545 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.
About Landmark Mortgage Company
Landmark Mortgage Company provides various mortgage products and services to clients in Central Indiana and beyond. Landmark Mortgage Company 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.
|
