ABOUT THE BANK

07.29.02

First Internet Bank Of Indiana Announces Second Quarter Earnings

First Internet Bank of Indiana (http://www.firstib.com) today announced net income of $470,529 for the quarter ended June 30, 2002, representing its sixth consecutive quarter of profitability. Operating income - interest and non-interest income less non-interest expense and a provision for loan and lease losses - for the quarter was $722,999, up 36% from $530,285 for the quarter ended March 31, 2002.

Net income for the quarter ended June 30, 2002 includes a tax benefit of $545,591 and a specific charge against earnings of $871,777 ($566,655 net of tax) taken due to the significant decline in the market value of a $1 million par value investment in WorldCom, Inc.. WorldCom, Inc. represents less than one percent of the total par value in the Bank's security investment portfolio.

Selected Balance Sheet Information

 
 

June 30
2001
(Unaudited)

   

June 30,
2002
(Unaudited)

 

Cash Equivalents

16,050,344

 

14,937,510

Investment Securities

117,052,221

 

119,396,848

Loans, net of Reserve

100,053,252

 

122,565,161

Other Assets

2,390,716

 

3,363,604

 

Total Assets

235,546,533

 

260,263,123

 
 

Deposits

198,342,917

 

213,623,912

FHLB Advances

-

 

4,500,000

Other Liabilities

1,111,853

 

2,529,304

Shareholder's Equity

36,091,763

 

39,609,906

 

Total Liabilities & Equity

235,546,533

 

260,263,122



Selected Income Statement Information

 
 

Quarter Ended
June 30

 

2001
(Unaudited)

   

2002
(Unaudited)

 

Net Interest Income

1,427,352

   

1,782,306

Non-Interest Income

161,357

   

218,794

Provision for Loan and Lease Losses

(305,209)

   

(99,534)

Non-Interest Expense

(1,143,020)

   

(1,178,567)

Gain/(Loss) on Sale of Investments

10,780

 

(798,061)

 

Net Income/(Loss) Before Taxes

151,260

   

(75,062)

 

Tax Benefit

-

   

545,591

 

Net Income

151,260

   

470,529

       

Income per share:

 

 

 

Basic

0.08

 

0.23

 

 

 

 

Weighted average of shares outstanding:

 

 

 

Basic

1,984,888

 

2,005,608

With $260 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.