ABOUT THE BANK

10.29.02

First Internet Bank Of Indiana Announces Third Quarter Earnings

First Internet Bank of Indiana today announced net income of $936,579 for the quarter ended September 30, 2002, representing its seventh consecutive quarter of profitability.

Net income before taxes for the quarter was $223,420, down 36% from $349,723 for the same quarter in the prior year. Net income before taxes for the quarter ended September 30, 2002 includes charges of $516,595 to the provision for loan and lease losses in recognition of the overall increased level of loan balances held by the Bank and some increased risk of loss from a relatively limited number of commercial credits. The expense for the provision for loan and lease losses in the comparable quarter in 2001 was $80,020.

"The general weakness in the economy has taken a toll on many commercial credits," said David B. Becker, Chairman and CEO of First IB. "While First IB does not have significant exposure in this area, we do want to ensure that the Bank is adequately reserved for potential losses. Ultimately, as we grow the Bank, these actions strengthen the balance sheet."

Although the Bank has not actively increased its commercial loan portfolio since early 2001, the Bank's total loan portfolio has grown significantly. The net loans to deposit ratio was 63.92% as of September 30, 2002 as compared to 44.58% as of September 30, 2001.

Selected Balance Sheet Information

 
 

September 30,
2001
(Unaudited)

   

September 30,
2002
(Unaudited)

 

Cash Equivalents

10,716,930

 

4,179,471

Investment Securities

140,820,375

 

121,433,179

Loans, net of Reserve

92,612,669

 

149,635,392

Other Assets

2,479,065

 

3,755,371

 

Total Assets

246,629,039

 

279,003,413

 
 

Deposits

207,746,084

 

234,094,842

FHLB Advances

-

 

3,000,000

Other Liabilities

1,259,205

 

804,491

Shareholder's Equity

37,623,750

 

41,104,080

 

Total Liabilities & Equity

246,629,039

 

279,003,413



Selected Income Statement Information

 
 

Quarter Ended
September 30

 

2001
(Unaudited)

   

2002
(Unaudited)

 

Net Interest Income

1,518,395

   

1,710,388

Non-Interest Income

224,635

   

227,523

Provision for Loan and Lease Losses

(80,020)

   

(516,595)

Non-Interest Expense

(1,128,602)

   

(1,206,558)

Gain/(Loss) on Sale of Investments

(184,685)

 

8,662

 

Net Income/(Loss) Before Taxes

349,723

   

223,420

 

Tax Benefit

640,962

   

713,159

 

Net Income

990,685

   

936,579

       

Income per share:

 

 

 

Basic

0.50

 

0.47

 

 

 

 

Weighted average of shares outstanding:

 

 

 

Basic

1,991,010

 

2,006,148

With $279 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.