FIRST INTERNET BANCORP ANNOUNCES THIRD QUARTER EARNINGS
INDIANAPOLIS, IN (October 28, 2008) - First Internet Bancorp (“Bancorp”) today announced net income of $461,867 for the quarter ended September 30, 2008, a 30% decrease from the same quarter in the previous year. Year to date earnings of $1.3 million are down from prior year levels by $930,045, or 42%.
Throughout 2008, the Bancorp has experienced elevated levels of loan charge-offs, primarily in its consumer loan portfolio. To maintain a responsible level of loan loss reserves, the Bancorp reported an increase in the provision for loan losses of $633,675 (97%) over prior year and an increase of $175,566 (16%) over the prior quarter.
“Economic conditions have caused consumers who have never been delinquent in the past to suddenly cease making their loan payments and turn over the collateral or file for bankruptcy,” said Mr. David B. Becker, Chairman and CEO of the Bancorp. Becker went on to say, “In recognition of this trend, the allowance for loan losses as a percentage of total loans has been increased to 1.27% from the year prior level of 1.01%.”
As of September 30, 2008, the Bancorp held $422.3 million in deposits, a 5% decrease from deposits as of September 30, 2007. Total loans of $327.4 million decreased by 10%, and total assets of $523.5 million decreased by 3% over September 30, 2007 balances.
Management noted that changes in the Bancorp’s balance sheet created opportunities in the third quarter. Despite the decrease in the overall balance of loans and other earning assets, net interest income for the quarter increased $270,765 (9%) as compared to the same quarter in the previous year, while non-interest income increased approximately 17%.
Selected Balance Sheet Information |
|
|
September 30 |
|
2007
(Unaudited1) |
|
2008
(Unaudited1) |
|
Cash Equivalents |
44,487,308 |
|
6,848,579 |
Investment Securities |
113,626,251 |
|
168,207,017 |
Loans, net of Reserve |
365,480,773 |
|
327,444,015 |
Bank owned life insurance |
6,896,497 |
|
7,193,655 |
Goodwill |
4,687,349 |
|
4,687,349 |
Other Assets |
6,377,304 |
|
9,127,075 |
|
Total Assets |
541,555,482 |
|
523,507,690 |
|
|
Deposits |
442,611,820 |
|
422,332,707 |
FHLB Advances |
51,700,000 |
|
57,000,000 |
Other Liabilities |
2,227,816 |
|
1,283,846 |
Shareholder's Equity |
45,015,846 |
|
42,891,137 |
|
Total Liabilities & Equity |
541,555,482 |
|
523,507,690 |
|
Total shares issued and outstanding |
1,850,584 |
|
1,859,477 |
Selected Income Statement Information |
|
Quarter Ended September 30 |
|
2007
(Unaudited1) |
|
2008
(Unaudited1) |
|
Net Interest Income |
2,943,750 |
|
3,214,515 |
Non-Interest Income |
612,961 |
|
715,821 |
Provision for Loan Losses |
(652,673) |
|
(1,286,348) |
Non-Interest Expense |
(2,018,572) |
|
(2,142,122) |
|
Net Income Before Taxes |
885,466 |
|
501,866 |
|
Tax Expense |
(221,141) |
|
(39,999) |
|
Net Income |
664,325 |
|
461,867 |
|
|
|
|
Income per share: |
|
|
|
Basic |
0.36 |
|
0.25 |
|
|
|
|
Weighted average of shares outstanding: |
|
|
|
Basic |
1,866,122 |
|
1,877,531 |
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 $520 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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