FIRST INTERNET BANCORP ANNOUNCES RECORD SECOND QUARTER EARNINGS
INDIANAPOLIS, IN (July 29, 2010) - First Internet Bancorp (“Bancorp”) today reported net income of $944,750 for the quarter ended June 30, 2010, compared to net income of $263,747 for the same quarter in the previous year.
“To put the earnings results in perspective, this is the most profitable quarter we have ever had that did not include a significant one-time event,” remarked David Becker, Chairman and CEO of First Internet Bancorp. Higher earnings were reported for first quarter 2010 and third quarter 2001 but included favorable one-time adjustments.
Mr. Becker noted the Bancorp has had strong success year-to-date. The adjusted first quarter 2010 net income of $771,645 ($2,299,967 prior to the reversal of loan loss expense related to a large commercial credit) also represented significant improvement over first quarter 2009.
Earnings improvement was the result of increased net interest margin, continued generation of non-interest income and a reduction in loan loss provision. Net interest margins widened due to increased loan yields and lower cost of funds. Second quarter net interest margin equaled 3.18% compared to 3.17% as of March 31, 2010, and 2.53% as of June 30, 2009. Non-interest income, derived primarily from online mortgage originations, continued to have a positive impact on earnings, adding $738,674 in the second quarter. Non-interest expenses remained below peer levels as a result of the Bancorp’s efficient Internet banking platform.
Second quarter provision for loan loss was $773,861, a reduction of $706,327 over the same period in 2009; however, the Bancorp continued to maintain a robust allowance for loan and lease loss. As of June 30, 2010, the Bancorp held reserves equal to 2.37% of outstanding loan balances not held for sale compared to 2.34% as of March 31, 2010 and 1.71% as of June 30, 2009.
“By remaining focused on areas we can control, such as loan and deposit pricing and selected non-interest expense items, we have continued to improve profitability,” Mr. Becker said. “Loan losses are still elevated when compared to historic levels; however, they are trending lower in our portfolio, which is consistent with national consumer credit trends.”
The Bancorp remained well capitalized under risk-based capital guidelines issued by the Board of Governors of the Federal Reserve System (FRB).
Selected Balance Sheet Information |
|
|
June 30 |
|
2009
(Unaudited1) |
|
2010
(Unaudited1) |
|
Cash Equivalents |
38,858,690 |
|
25,004,068 |
Investment Securities |
153,846,696 |
|
130,713,349 |
Loans, net of Reserve |
327,743,929 |
|
301,151,163 |
Bank owned life insurance |
7,419,684 |
|
7,720,357 |
Goodwill |
4,687,349 |
|
4,687,349 |
Other Assets |
11,945,545 |
|
13,870,019 |
|
Total Assets |
544,501,893 |
|
483,146,305 |
|
|
Deposits |
453,150,960 |
|
400,201,852 |
FHLB Advances |
44,000,000 |
|
32,393,440 |
Other Liabilities |
1,849,777 |
|
1,623,083 |
Shareholder's Equity |
45,501,156 |
|
48,927,930 |
|
Total Liabilities & Equity |
544,501,893 |
|
483,146,305 |
Selected Income Statement Information |
|
Quarter Ended June 30 |
|
2009
(Unaudited1) |
|
2010
(Unaudited1) |
|
Net Interest Income |
3,272,565 |
|
3,659,921 |
Non-Interest Income |
1,051,454 |
|
738,674 |
Provision for Loan Losses |
(1,480,188) |
|
(773,861) |
FDIC Special Assessment |
(251,250) |
|
- |
Non-Interest Expense |
(2,435,366) |
|
(2,407,216) |
|
Net Income Before Taxes |
157,215 |
|
1,217,518 |
|
Tax (Expense)/Benefit |
106,532 |
|
(272,768) |
|
Net Income |
263,747 |
|
944,750 |
|
|
|
|
Income per share: |
|
|
|
Basic |
0.14 |
|
0.50 |
|
|
|
|
Weighted average of shares outstanding: |
|
|
|
Basic |
1,890,838 |
|
1,896,650 |
|
Six Months Ended June 30 |
|
2009
(Unaudited1) |
|
2010
(Unaudited1) |
|
Net Interest Income |
6,343,795 |
|
7,397,809 |
Non-Interest Income |
1,658,728 |
|
1,020,994 |
Provision for Loan Losses |
(3,508,512) |
|
996,558 |
FDIC Special Assessment |
(251,250) |
|
- |
Non-Interest Expense |
(4,651,836) |
|
(4,885,041) |
|
Net Income/(Loss) Before Taxes |
(409,075) |
|
4,530,320 |
|
Tax (Expense)/Benefit |
463,377 |
|
(1,285,603) |
|
Net Income |
54,302 |
|
3,244,717 |
|
|
|
|
Income per share: |
|
|
|
Basic |
0.03 |
|
1.71 |
|
|
|
|
Weighted average of shares outstanding: |
|
|
|
Basic |
1,890,838 |
|
1,896,650 |
|
|
|
|
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 $480 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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