ABOUT THE BANK

10.27.03

First Internet Bank Of Indiana Announces Third Quarter Earnings

First Internet Bank of Indiana (First IB) today announced net income of $165,484 for the quarter ended September 30, 2003.

As in past quarters, net interest income represented the majority of the Bank's revenue. Net interest margins for the Bank have declined throughout the year, prompting Bank management to look to new ways to offset the Bank's reliance on interest rate spreads. According to David B. Becker, Chairman and CEO, "First IB is researching value-added services for the customer to grow non-interest income sources."

Additionally, Becker noted the Bank has continued to expand its consumer loan origination abilities. Said Becker, "The Bank's assets have grown by nearly 14% since year-end 2002, but our loan portfolio has grown 27%. We are pleased with the growth, certainly, but we will not deviate from our commitment to asset quality. We remain focused on sound loan originations and building a strong portfolio of assets."

Becker continued, "First IB will continue to develop its lending efforts, primarily to consumers, in the months to come. Doing so will take some time and carry with it associated expenses to ensure we maintain a quality portfolio. We expect modest earnings during this process, but we believe this approach is in the long term best interest of the Bank and its stakeholders."

As of September 30, 2003, First IB held $272.7 million in deposits, a 16% increase over deposits as of September 30, 2002. Despite the increase in deposits, overhead expenses remained consistent with prior quarters.

Selected Balance Sheet Information

 
 

September 30

 

2002
(Unaudited)

   

2003
(Unaudited)

 

Cash Equivalents

4,179,471

 

30,921,490

Investment Securities

121,433,179

 

122,824,706

Loans, net of Reserve

149,635,392

 

180,861,915

Other Assets

3,755,371

 

4,459,543

 

Total Assets

279,003,413

 

339,067,654

 
 

Deposits

234,094,842

 

272,678,279

FHLB Advances

3,000,000

 

25,000,000

Other Liabilities

804,491

 

959,933

Shareholder's Equity

41,104,080

 

40,429,442

 

Total Liabilities & Equity

279,003,413

 

339,067,654

 

 

Selected Income Statement Information

 

September 30

 

2002
(Unaudited)

   

2003
(Unaudited)

 

Net Interest Income

1,710,388

   

1,224,961

Non-Interest Income

227,523

 

225,884

Provision for Loan and Lease Losses

(516,595)

   

(101,399)

Non-Interest Expense

(1,206,558)

   

(1,162,755)

Gain on Sale of Investments

8,662

 

22,658

 

Net Income Before Taxes

223,420

   

209,349

 

Tax Benefit (Expense)

713,159

   

(43,865)

 

Net Income

936,579

   

165,484

       

Income per share:

 

 

 

Basic

0.47

 

0.08

 

 

 

 

Weighted average of shares outstanding:

 

 

 

Basic

2,006,148

 

2,010,156

With $339 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.