ABOUT THE BANK

04.26.04

First Internet Bank Of Indiana Announces First Quarter Earnings

First Internet Bank of Indiana (First IB) today announced net income of $541,161 for the quarter ended March 31, 2004. Net income increased $424,735 or 365%, from the same quarter in the previous year and $436,172, or 415%, over the prior quarter. A slowdown in mortgage prepayments in the Bank's loan and securities portfolio, combined with a relatively stable interest rate environment throughout the first quarter of 2004, boosted net interest margins and contributed to the earnings improvement.

First IB's loan portfolio grew by $47.6 million, or 28%, as compared to the same quarter in the previous year. This is the result of the Bank's increased emphasis on consumer installment lending, particularly for recreational vehicles and autos. . Consumer installment loans are typically higher yielding assets than mortgages or securities and do not pose unnecessary credit risks, due to the Bank's established underwriting policies and procedures.

As of March 31, 2004, First IB held $283.4 million in deposits, a 13% increase over deposits as of March 31, 2003. Despite the increase in loans, deposits, and customers, overhead expenses remained consistent with prior quarters.

Selected Balance Sheet Information

 
 

March 31

 

2003
(Unaudited)

   

2004
(Unaudited)

 

Cash Equivalents

3,111,696

 

3,801,195

Investment Securities

145,896,656

 

127,001,864

Loans, net of Reserve

169,794,215

 

217,375,412

Other Assets

4,960,569

 

4,005,250

 

Total Assets

323,763,136

 

352,183,721

 
 

Deposits

250,573,749

 

283,365,535

FHLB Advances

31,750,000

 

26,200,000

Other Liabilities

921,168

 

1,127,038

Shareholder's Equity

40,518,219

 

41,491,148

 

Total Liabilities & Equity

323,763,136

 

352,183,721



Selected Income Statement Information

 

March 31

 

2003
(Unaudited)

   

2004
(Unaudited)

 

Net Interest Income

1,358,084

   

1,964,854

Non-Interest Income

227,630

 

222,223

Provision for Loan and Lease Losses

(469,034)

   

(198,757)

Non-Interest Expense

(1,211,092)

   

(1,209,409)

Gain on Sale of Investments

267,654

 

23,409

 

Net Income Before Taxes

173,242

   

803,320

 

Tax Expense

(56,816)

   

(261,159)

 

Net Income

116,426

   

541,161

     

 

Income per share:

 

 

 

Basic

0.06

 

0.27

 

 

 

 

Weighted average of shares outstanding:

 

 

 

Basic

2,009,160

 

2,013,116

With $352 million in assets, First Internet Bank of Indiana is the first state-chartered, FDIC-insured institution to operate solely via the Internet and has customers in all 50 states. Services include interest-bearing checking accounts, regular and money market savings accounts with industry-leading interest rates, CDs, IRAs, credit cards, and check cards that can be used instead of cash or checks. First IB also offers personal lines of credit, installment loans, unique real-time transfers between accounts, and the ability to display checking, savings and loan information on a single screen. First IB is a privately capitalized institution with over 400 private and corporate investors.