First Internet Bank Of Indiana Announces 2004 First Quarter Earnings

First Internet Bank of Indiana (First IB) today announced net income of $541,161 for the quarter ended March 31, 2004. Net income increased $424,735 or 365%, from the same quarter in the previous year and $436,172, or 415%, over the prior quarter. A slowdown in mortgage prepayments in the Bank’s loan and securities portfolio, combined with a relatively stable interest rate environment throughout the first quarter of 2004, boosted net interest margins and contributed to the earnings improvement.

First IB’s loan portfolio grew by $47.6 million, or 28%, as compared to the same quarter in the previous year. This is the result of the Bank’s increased emphasis on consumer installment lending, particularly for recreational vehicles and autos. . Consumer installment loans are typically higher yielding assets than mortgages or securities and do not pose unnecessary credit risks, due to the Bank’s established underwriting policies and procedures.

As of March 31, 2004, First IB held $283.4 million in deposits, a 13% increase over deposits as of March 31, 2003. Despite the increase in loans, deposits, and customers, overhead expenses remained consistent with prior quarters.

Selected Balance Sheet Information
March 31
Cash Equivalents 3,111,696 3,801,195
Investment Securities 145,896,656 127,001,864
Loans, net of Reserve 169,794,215 217,375,412
Other Assets 4,960,569 4,005,250
Total Assets 323,763,136 352,183,721
Deposits 250,573,749 283,365,535
FHLB Advances 31,750,000 26,200,000
Other Liabilities 921,168 1,127,038
Shareholder’s Equity 40,518,219 41,491,148
Total Liabilities & Equity 323,763,136 352,183,721


Selected Income Statement Information
March 31
Net Interest Income 1,358,084 1,964,854
Non-Interest Income 227,630 222,223
Provision for Loan and Lease Losses (469,034) (198,757)
Non-Interest Expense (1,211,092) (1,209,409)
Gain on Sale of Investments 267,654 23,409
Net Income Before Taxes 173,242 803,320
Tax Expense (56,816) (261,159)
Net Income 116,426 541,161
Income per share:
Basic 0.06 0.27
Weighted average of shares outstanding:
Basic 2,009,160 2,013,116

With $352 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.