ABOUT THE BANK

07.30.04

First Internet Bank Of Indiana Announces Second Quarter Earnings

First Internet Bank of Indiana (First IB) today announced net income of $373,051 for the quarter ended June 30, 2004, down from the preceding quarter, but up over 350% from the same quarter in the previous year.

The Bank's loan portfolio grew by $71.4 million, or 40%, as compared to the same quarter in the previous year and $34.2 million, or 16%, as compared to the prior quarter, as First IB continued to build its consumer installment portfolio.

Changes in the Bank's asset mix and continued loan growth required a corresponding increase in the Provision for Loan and Lease Losses, which increased expenses by $350,235 over the prior quarter and resulted in the decrease in net income. Consumer installment loans are typically higher yielding assets than mortgages or securities and with the appropriate addition of loan loss reserves do not pose unnecessary credit risks, due to the Bank's established underwriting policies and procedures.

"First IB has steadily expanded its lending capabilities, reducing the Bank's dependence on purchased loan pools," said David B. Becker, Chairman and CEO of First IB. "We consider the Bank's overall credit quality to be very good and plan to continue with a disciplined approach to building the balance sheet."

Despite net income of $373,051 in the quarter ended June 30, 2004, equity was reduced from the prior quarter due to a $1.6 million equity reduction from a "mark to market" adjustment on securities available for sale.

As of June 30, 2004, First IB held $290.4 million in deposits, a 9% increase over deposits as of June 30, 2003. Even though there has been significant growth within both assets and deposits, the Bank has been able to control overhead expenses, keeping them consistent with prior quarters.

Selected Balance Sheet Information

 
 

June 30, 2003
(Unaudited)

 

March 31, 2004 (Unaudited)

   

June 30, 2004 (Unaudited)

 

Cash Equivalents

12,132,566

 

3,801,195

 

10,983,342

Investment Securities

137,115,878

 

127,001,864

 

103,672,245

Loans, net of Reserve

180,160,740

 

217,375,412

 

251,527,149

Other Assets

4,267,704

 

4,005,250

 

4,508,057

 

Total Assets

333,676,888

 

352,183,721

 

370,690,793

 
 

Deposits

267,162,215

 

283,365,535

 

290,380,208

FHLB Advances

25,000,000

 

26,200,000

 

38,565,000

Other Liabilities

866,083

 

1,127,038

 

1,420,339

Shareholder's Equity

40,648,590

 

41,491,148

 

40,325,246

 

Total Liabilities & Equity

333,676,888

 

352,183,721

 

370,690,793



Selected Income Statement Information

 

June 30, 2003
(Unaudited)

 

March 31, 2004 (Unaudited)

   

June 30, 2004 (Unaudited)

 

Net Interest Income

1,270,437

 

1,964,340

   

2,033,930

Non-Interest Income

223,925

 

226,738

 

171,953

Provision for Loan and Lease Losses

(252,276)

 

(198,757)

   

(548,992)

Non-Interest Expense

(1,148,021)

 

(1,186,001)

   

(1,126,547)

 

Net Income Before Taxes

94,065

 

802,320

   

530,344

 

Tax Expense

(13,707)

 

(261,159)

   

(157,293)

 

Net Income

80,358

 

541,161

   

373,051

 

 

   

Income per share:

 

 

 

Basic

0.04

 

0.27

 

0.19

 

 

 

 

Weighted average of shares outstanding:

Basic

2,009,658

 

2,013,116

 

2,013,603

With $371 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.