FIRST INTERNET BANCORP ANNOUNCES FIRST QUARTER EARNINGS
INDIANAPOLIS, IN (May 5, 2008) - First Internet Bancorp (“Bancorp”) today announced net income of $369,939 for the quarter ended March 31, 2008, a decrease of $318,306, or 46%, from the same quarter in the previous year.
Numerous factors contributed to the net decrease. Declining interest rates compressed net interest margins, leading to an $114,121 (4%) reduction over last year’s first quarter results. Provision for loan and lease losses increased $264,834 (42%) due to charge-offs for consumer loans. Non-interest expenses increased $203,784 (10%) primarily caused by an increase in the company’s FDIC premium assessments ($76,001) and an increase in the losses related to repossession liquidations and debit/credit card losses ($65,317).
“We continue to remain concerned about the financial health of the consumer given nationwide decreases in housing values, related credit concerns surrounding the mortgage market, rising unemployment levels and higher fuel and food prices” said David Becker, Chairman and CEO of First Internet Bancorp. “These economic factors have impacted both the borrower’s ability to repay their consumer loans as well as the liquidation prices we receive when disposing of repossessed assets. Considering the concentration of consumer loans on our balance sheet, we believe our continued efforts to actively manage this portfolio has resulted in stable delinquency levels in this difficult time.”
The Bancorp’s net loan portfolio decreased by $10 million, or 3%, as compared to the same quarter in the previous year. “Given current economic conditions, the Bancorp is making a concerted effort to further diversify the balance sheet with a continued emphasis on high quality assets. One way we’ll do that is by purchasing investment securities,” Becker noted.
He went on to comment, “There is also a tremendous opportunity in the market for high quality residential mortgage loans right now. The number of mortgage brokers is down 40%, but demand for home loans -- while off the record volumes of three and four years ago -- has not declined proportionately. To respond to this need, we have added experienced personnel and launched an online mortgage offering in February 2008.”
As of March 31, 2008, First IB held $470.9 million in deposits, a 9% increase from deposits held as of March 31, 2007.
Selected Balance Sheet Information |
|
|
March 31 (Unaudited1) |
|
2007 |
|
2008 |
|
Cash Equivalents |
47,221,906 |
|
24,376,478 |
Investment Securities |
114,489,639 |
|
179,706,456 |
Loans, net of Reserve |
353,112,200 |
|
343,126,320 |
Bank owned life insurance |
6,756,340 |
|
7,041,990 |
Goodwill |
4,696,250 |
|
4,687,349 |
Other Assets |
5,975,168 |
|
6,843,835 |
|
Total Assets |
532,251,503 |
|
565,782,428 |
|
|
Deposits |
431,585,834 |
|
470,916,805 |
FHLB Advances |
54,700,000 |
|
46,000,000 |
Other Liabilities |
2,394,074 |
|
2,904,167 |
Shareholder's Equity |
43,571,595 |
|
45,961,456 |
|
Total Liabilities & Equity |
532,251,503 |
|
565,782,428 |
Selected Income Statement Information |
|
March 31 (Unaudited1) |
|
2007 |
|
2008 |
|
Net Interest Income |
2,883,757 |
|
2,769,636 |
Non-Interest Income |
699,432 |
|
700,784 |
Provision for Loan and Lease Losses |
(633,456) |
|
(898,290) |
Non-Interest Expense |
(2,031,894) |
|
(2,235,678) |
|
Net Income Before Taxes |
917,839 |
|
336,452 |
|
Tax Benefit (Expense) |
(229,594) |
|
33,487 |
|
Net Income |
688,245 |
|
369,939 |
|
|
|
|
Income per share: |
|
|
|
Basic |
0.37 |
|
0.20 |
|
|
|
|
Weighted average of shares outstanding: |
|
|
|
Basic |
1,862,300 |
|
1,872,739 |
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 $560 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 credit cards, personal lines of credit, installment loans, and mortgages. First IB is a wholly owned subsidiary of First Internet Bancorp.
About Landmark Mortgage Company
Landmark Mortgage Company operates from two locations in the metropolitan Indianapolis area providing 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.
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