First Internet Bank Of Indiana Announces 2003 Third Quarter Earnings

First Internet Bank of Indiana (First IB) today announced net income of $165,484 for the quarter ended September 30, 2003.

As in past quarters, net interest income represented the majority of the Bank’s revenue. Net interest margins for the Bank have declined throughout the year, prompting Bank management to look to new ways to offset the Bank’s reliance on interest rate spreads. According to David B. Becker, Chairman and CEO, “First IB is researching value-added services for the customer to grow non-interest income sources.”

Additionally, Becker noted the Bank has continued to expand its consumer loan origination abilities. Said Becker, “The Bank’s assets have grown by nearly 14% since year-end 2002, but our loan portfolio has grown 27%. We are pleased with the growth, certainly, but we will not deviate from our commitment to asset quality. We remain focused on sound loan originations and building a strong portfolio of assets.”

Becker continued, “First IB will continue to develop its lending efforts, primarily to consumers, in the months to come. Doing so will take some time and carry with it associated expenses to ensure we maintain a quality portfolio. We expect modest earnings during this process, but we believe this approach is in the long term best interest of the Bank and its stakeholders.”

As of September 30, 2003, First IB held $272.7 million in deposits, a 16% increase over deposits as of September 30, 2002. Despite the increase in deposits, overhead expenses remained consistent with prior quarters.

Selected Balance Sheet Information
September 30
Cash Equivalents 4,179,471 30,921,490
Investment Securities 121,433,179 122,824,706
Loans, net of Reserve 149,635,392 180,861,915
Other Assets 3,755,371 4,459,543
Total Assets 279,003,413 339,067,654
Deposits 234,094,842 272,678,279
FHLB Advances 3,000,000 25,000,000
Other Liabilities 804,491 959,933
Shareholder’s Equity 41,104,080 40,429,442
Total Liabilities & Equity 279,003,413 339,067,654


Selected Income Statement Information
September 30
Net Interest Income 1,710,388 1,224,961
Non-Interest Income 227,523 225,884
Provision for Loan and Lease Losses (516,595) (101,399)
Non-Interest Expense (1,206,558) (1,162,755)
Gain on Sale of Investments 8,662 22,658
Net Income Before Taxes 223,420 209,349
Tax Benefit (Expense) 713,159 (43,865)
Net Income 936,579 165,484
Income per share:
Basic 0.47 0.08
Weighted average of shares outstanding:
Basic 2,006,148 2,010,156

With $339 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.