FIRST INTERNET BANCORP ANNOUNCES SECOND QUARTER EARNINGS
INDIANAPOLIS, IN (July 22, 2008) - First Internet Bancorp (“Bancorp”) today announced net income of $437,382 for the quarter ended June 30, 2008, a decrease of $409,280, or 48%, from the same quarter in the previous year. However, the results reflect an increase of 18% over net income of $369,939 for the first quarter in 2008.
Second quarter operating results include a $1.1 million provision for credit losses. The provision exceeded net charge-offs by $343 thousand and resulted in an increase in the allowance for loan and lease losses. “Quite simply, this is a challenging credit environment,” said Chairman and Chief Executive Officer David B. Becker. “We remain focused on working through this difficult economic environment and believe our credit issues are manageable. Nonperforming assets and net charge-offs from consumer installment loans increased during the quarter, as did the provision for credit losses. The additional allowance is prudent given the current economic conditions and its resulting effects on the consumer. We find it encouraging that our mortgage operations are producing solid results and experiencing minimal delinquency.”
Continuing a trend from the first quarter, second quarter mortgage loan originations were up 9% over the second quarter of 2007, with year-to-date originations exceeding 2007 by 30%. First Internet Bank (“First IB,” the “Bank”) continues to enhance its direct-to-consumer, Internet-based lending platforms, which allow the Bancorp to reposition First IB and Landmark Mortgage Company (“LMC”) staff and facilities. These portable technology enhancements improve efficiency and reduce the companies’ overall costs of operations by allowing LMC to eliminate loan production offices while supporting loan officers’ efforts to serve customers from virtually anywhere. Further, the Bank is working with a number of quality builder and real estate companies to expand its origination channels.
The Bank also anticipates expanding its mortgage offerings during the third quarter to include second mortgages, home equity loans, and lines of credit, leveraging the Internet-based platform the Bank rolled out in February of this year to offer first mortgages.
Selected Balance Sheet Information |
|
|
June 30 (Unaudited1) |
|
2007 |
|
2008 |
|
Cash Equivalents |
21,543,536 |
|
3,857,694 |
Investment Securities |
116,825,557 |
|
181,350,657 |
Loans, net of Reserve |
352,101,875 |
|
331,810,395 |
Bank owned life insurance |
6,825,896 |
|
7,117,259 |
Goodwill |
4,687,349 |
|
4,687,349 |
Other Assets |
6,261,935 |
|
8,443,177 |
|
Total Assets |
508,246,148 |
|
537,266,531 |
|
|
Deposits |
410,571,158 |
|
442,941,359 |
FHLB Advances |
51,700,000 |
|
48,000,000 |
Other Liabilities |
2,344,678 |
|
1,407,261 |
Shareholder's Equity |
43,630,312 |
|
44,917,911 |
|
Total Liabilities & Equity |
508,246,148 |
|
537,266,531 |
Selected Income Statement Information |
|
June 30 (Unaudited1) |
|
2007 |
|
2008 |
|
Net Interest Income |
3,005,804 |
|
3,025,452 |
Non-Interest Income |
373,038 |
|
757,179 |
Provision for Loan and Lease Losses |
(129,127) |
|
(1,110,782) |
Non-Interest Expense |
(2,100,519) |
|
(2,222,809) |
|
Net Income Before Taxes |
1,149,196 |
|
449,040 |
|
Tax Expense |
(302,534) |
|
(11,658) |
|
Net Income |
846,662 |
|
437,382 |
|
|
|
|
Income per share: |
|
|
|
Basic |
0.45 |
|
0.23 |
|
|
|
|
Weighted average of shares outstanding: |
|
|
|
Basic |
1,865,035 |
|
1,876,123 |
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 $530 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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