First Internet Bank of Indiana (“First IB”), a growing, Internet-only financial institution, today announced that it has completed a $12 million equity private placement with Newcourt Financial (“Newcourt”), the commercial finance business of Newcourt Credit Group. As a result, Newcourt now owns just under 10% of the Bank’s capital stock. In addition, Mr. Robert J. Hicks, Executive Vice President of Strategic Development at Newcourt, will be appointed to the Bank’s Board of Directors at the next Board meeting.
“This investment represents an outstanding strategic opportunity and fit for Newcourt and First IB,” said Mr. David B. Becker, Chairman and CEO of First Internet Bank. “When First IB was evaluating potential investors, we were looking for an institution with outstanding name recognition, financial strength, and strategic opportunities for sources of deposits and loan originations.”
“Newcourt clearly satisfied these requirements and was a perfect match for the Bank. We believe there are unparalleled opportunities for cross-marketing our electronic solutions and products into the Newcourt client base,” Mr. Becker continued. “In addition, given Mr. Hicks’ diverse business experience and leadership of a technology company, we are very excited to have him join our Board of Directors.”
“Newcourt intends to develop strategic relationships with First IB in order to leverage its real-time Internet banking capabilities into the Newcourt loan origination base,” said Mr. Hicks. “Our investment represents a major step toward achieving Newcourt’s corporate goal of utilizing technology to create efficiencies and solutions for our customers.”
Mr. Bradley D. Nullmeyer, President of Newcourt, added, “Newcourt’s investment demonstrates our significant belief in the Bank’s technology, management team, and market opportunity. First IB’s real-time, comprehensive system and cutting edge technology enables the Bank to virtually eliminate the need for bricks and mortar. This provides the Bank with a competitive advantage not shared by other Internet banks,” he noted.
About First Internet Bank of Indiana
Based in Indianapolis, Indiana, First Internet Bank of Indiana (https://www.firstib.com) offers a full suite of banking services that includes checking, money market savings, certificates of deposit, IRAs, personal loans, bill payment services, credit cards, and ATM and check cards. The Bank offers significant customer benefits over traditional retail banks, including real-time processing of all transactions and services available 24X7 via the Internet, ATMs, and touch-tone phone. Customers also enjoy industry leading interest rates on checking, savings and money market accounts, IRAs, and certificates of deposit.
The first state-chartered, FDIC-insured bank to operate solely over the Internet, First IB launched its services in February of 1999. Since its launch, First IB has consistently rated among the top Internet banks according to Gomez Advisors, an independent Internet research firm. First IB has amassed over $88 million in deposits with 4,200 customers hailing from all 50 states as well as United States territories and military bases. The Bank is privately held.
About Newcourt Financial
Newcourt Credit Group Inc. (NYSE: NCT; http://www.newcourt.com) is one of the world’s leading sources of commercial and corporate financing with over $25 billion in owned and managed assets and global capability in 26 countries. Newcourt Financial, its largest division that provides asset-based lending and financing in the commercial finance market, has developed relationships with leading equipment manufacturers, such as Dell Computer, Lucent Technologies, and Snap-on. Newcourt Financial also provides financing solutions for resellers, dealers, and distributors of a broad range of equipment – from information technology hardware and software to telecommunications equipment, office products, and transportation and construction equipment. Newcourt recently announced that it is joining forces with The CIT Group, Inc. (NYSE: CIT) to create the world’s largest publicly owned commercial finance company with over $50 billion in managed assets. The transaction has received regulatory and shareholder approval and is expected to close November 15, 1999.
About Mr. Robert J. Hicks
Mr. Hicks, Executive Vice President, Strategic Development at Newcourt Financial, also serves as Chairman and CEO of RealMed Corporation, an Indianapolis-based company which has pioneered, owns and operates the nation’s first real-time universal healthcare claims resolution company.
Mr. Hicks began his career with Newcourt as its U.S. General Counsel and then held several positions, including Senior Vice President and General Manager of the Specialty Finance Division, and Senior Vice President and General Manager of the U.S. Commercial, Technology and Healthcare Division. Mr. Hicks has managed more than 700 employees and an annual budget of $1.7 billion.
Prior to joining Newcourt, Mr. Hicks was a partner at the law firm of Sommer & Barnard, a prominent Indianapolis, Ind. law firm. In addition to being an attorney, Mr. Hicks is a Certified Public Accountant and previously worked at Arthur Andersen and Coopers & Lybrand. Mr. Hicks is a graduate of Butler University of Indianapolis, Ind., where he received his Accounting and Business Administration degree, and where he later served as an Adjunct Professor of Tax and Business Law. Mr. Hicks received his law degree from the Marshall-Wythe School of Law at the College of William and Mary, in Williamsburg, Virginia, where he was a member of the Law Review and was Order of the Coif.