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First Internet Bank Of Indiana Purchases Shares Of Indiana Community Business Credit Corporation
First Internet Bank of Indiana (First IB) has become the latest financial institution to join the Indiana Community Business Credit Corporation.
First IB is the first state-chartered FDIC insured institution to operate solely via the Internet. It has customers in all 50 states and reported holding $362 million in deposits as of December 31, an increase of $92 million over the previous year.
The Credit Corp. manages a pool of capital provided by member banking institutions. The addition of First IB brings to 30 the number of banks in the Credit Corp. The member banks share the risk of making loans to promising companies with limited credit history or other characteristics that may prevent them from qualifying for conventional financing.
Jean Wojtowicz, executive director of the Credit Corporation, says: "The loans are called "mezzanine" funding, because they allow companies to strengthen their financial structure. The Credit Corporation looks for companies that have great potential but need a lender to share the risk of their transaction."
"This investment was a natural for us," said David Becker, chairman and CEO of First IB. "First Internet Bank is one of Indiana's most innovative banking ideas. The Credit Corp. helps to promote innovation throughout the state by financing promising companies, and we are pleased to be associated with such an initiative," added Becker.
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.