ABOUT THE BANK

10.22.04

First Internet Bank Of Indiana Announces Third Quarter Earnings

First Internet Bank of Indiana (First IB) today announced net income of $495,998 for the quarter ended September 30, 2004, up 200% from the same quarter in the previous year.

"First IB has experienced profitable growth throughout 2004, Net Interest Income has increased each quarter and Non-Interest Expenses have been held to modest increases," said David B. Becker, Chairman and CEO of First IB. "The result is significant improvement in Net Income over 2003 levels. We remain focused on improving performance and increasing shareholder value."

As of September 30, 2004, First IB held $313.1 million in deposits, a 15% increase over deposits as of September 30, 2003. The Bank's loan portfolio grew by $84.1 million, or 47%, as compared to the same quarter in the previous year 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 $543,019 over the same quarter in the prior year but remained in line with management expectations.

Selected Balance Sheet Information

 
 

September 30, 2003
(Unaudited)

   

September 30, 2004 (Unaudited)

Cash Equivalents

30,921,490

 

22,403,799

Investment Securities

122,824,706

 

100,380,823

Loans, net of Reserve

180,861,915

 

264,975,687

Other Assets

4,459,543

 

4,174,147

 

Total Assets

339,067,654

 

391,934,456

 
 

Deposits

272,678,279

 

313,128,104

FHLB Advances

25,000,000

 

36,200,000

Other Liabilities

959,933

 

1,020,477

Shareholder's Equity

40,429,442

 

41,585,875

 

Total Liabilities & Equity

339,067,654

 

391,934,456



Selected Income Statement Information

 

Quarter Ended Sept 30, 2003
(Unaudited)

 

Quarter Ended Sept 30, 2004 (Unaudited)

   

Nine Months Ended Sept 30, 2004 (Unaudited)

 

Net Interest Income

1,224,961

 

2,393,030

   

6,400,334

Non-Interest Income

225,884

 

181,661

 

567,319

Provision for Loan and Lease Losses

(101,399)

 

(644,418)

   

(1,392,167)

Non-Interest Expense

(1,140,097)

 

(1,215,221)

   

(3,527,769)

 

Net Income Before Taxes

209,349

 

715,052

   

2,047,717

 

Tax Expense

(43,865)

 

(219,054)

   

(637,506)

 

Net Income

165,484

 

495,998

   

1,410,211

 

Income per share:

 

 

 

Basic

0.08

 

0.25

 

0.70

 

 

 

 

Weighted average of shares outstanding:

Basic

2,010,156

 

2,015,018

 

2,015,018

With $392 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.