ABOUT THE BANK

02.25.05

First Internet Bank Of Indiana Announces Year-End Financial Results

First Internet Bank of Indiana (First IB) today announced net income of $1,829,359 for the year ended December 31, 2004, an increase of $1.4 million over the prior year. The 2004 results mark the Bank's fourth consecutive year of profitability in its six years of operations.

Total assets increased by $104.4 million (31%) over 2003 levels. Net interest income increased by $3.2 million (59%) for the year, while non-interest expenses increased by approximately $96,000 (2%) over 2003 levels.

First IB increased net loans outstanding by $82.7 million (42%) during the period. "In 2004, the Bank was successful in increasing consumer installment loan originations, providing the Bank with a higher yield and significantly improving its net interest income levels," said David B. Becker, Chairman and CEO of First IB.

Considering this growth, First IB increased its provision expense for loan and lease losses by $556 thousand (39%) over 2003 levels in order to maintain the strength of the balance sheet. The expense is considered appropriate and commensurate with the growth in net loans outstanding.

Also during 2004, First IB introduced an enhanced bill payment interface as well as mortgage loans and two new deposit products for consumers. According to Bank management, key initiatives for the Bank in 2005 will include further process automation and non-interest income growth, while maintaining the Bank's heritage of customer-focused service.

Selected Balance Sheet Information

 
 

December 31

 

2003
(Audited)

   

2004
(Audited)

 

Cash Equivalents

862,908

 

54,414,247

Investment Securities

134,021,538

 

96,240,146

Loans, net of Reserve

196,694,182

 

279,368,514

FHLB of Indianapolis Stock

1,535,000

 

2,200,900

Bank Owned Life Insurance

0

 

6,188,474

Other Assets

4,847,384

 

3,975,842

 

Total Assets

337,961,012

 

442,388,123

 
 

Deposits

266,032,166

 

362,244,713

FHLB Advances

30,700,000

 

37,200,000

Other Liabilities

790,521

 

1,058,269

Shareholder's Equity

40,438,325

 

41,885,141

 

Total Liabilities & Equity

337,961,012

 

442,388,123



Selected Income Statement Information

 

December 31

 

2003
(Audited)

   

2004
(Audited)

 

Net Interest Income

5,387,491

   

8,545,275

Non-Interest Income

1,188,295

   

736,430

Provision for Loan and Lease Losses

(1,418,531)

   

(1,974,052)

Non-Interest Expense

(4,565,379)

   

(4,661,331)

 

Net Income Before Taxes

591,876

   

2,646,322

 

Tax Provision

(124,619)

   

(816,963)

 

Net Income

467,257

   

1,829,359

       

Income per share:

 

 

 

Basic

0.23

 

0.91

Diluted

0.23

 

0.90

 

 

 

 

Weighted average of shares outstanding:

 

 

 

Basic

2,010,654

 

2,015,442

Diluted

2,021,359

 

2,025,674

With $442 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.