First Internet Bank Of Indiana Announces 2004 Third Quarter Earnings

First Internet Bank of Indiana (First IB) today announced net income of $495,998 for the quarter ended September 30, 2004, up 200% from the same quarter in the previous year.

“First IB has experienced profitable growth throughout 2004, Net Interest Income has increased each quarter and Non-Interest Expenses have been held to modest increases,” said David B. Becker, Chairman and CEO of First IB. “The result is significant improvement in Net Income over 2003 levels. We remain focused on improving performance and increasing shareholder value.”

As of September 30, 2004, First IB held $313.1 million in deposits, a 15% increase over deposits as of September 30, 2003. The Bank’s loan portfolio grew by $84.1 million, or 47%, as compared to the same quarter in the previous year as First IB continued to build its consumer installment portfolio. Changes in the Bank’s asset mix and continued loan growth required a corresponding increase in the Provision for Loan and Lease Losses, which increased expenses by $543,019 over the same quarter in the prior year but remained in line with management expectations.

Selected Balance Sheet Information

September 30, 2003
September 30, 2004 (Unaudited)
Cash Equivalents 30,921,490 22,403,799
Investment Securities 122,824,706 100,380,823
Loans, net of Reserve 180,861,915 264,975,687
Other Assets 4,459,543 4,174,147
Total Assets 339,067,654 391,934,456
Deposits 272,678,279 313,128,104
FHLB Advances 25,000,000 36,200,000
Other Liabilities 959,933 1,020,477
Shareholder’s Equity 40,429,442 41,585,875
Total Liabilities & Equity 339,067,654 391,934,456


Selected Income Statement Information
Quarter Ended Sept 30, 2003
Quarter Ended Sept 30, 2004 (Unaudited) Nine Months Ended Sept 30, 2004 (Unaudited)
Net Interest Income 1,224,961 2,393,030 6,400,334
Non-Interest Income 225,884 181,661 567,319
Provision for Loan and Lease Losses (101,399) (644,418) (1,392,167)
Non-Interest Expense (1,140,097) (1,215,221) (3,527,769)
Net Income Before Taxes 209,349 715,052 2,047,717
Tax Expense (43,865) (219,054) (637,506)
Net Income 165,484 495,998 1,410,211
Income per share:
Basic 0.08 0.25 0.70
Weighted average of shares outstanding:
Basic 2,010,156 2,015,018 2,015,018

With $392 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.