First Internet Bank Completes Share PurchaseReleased on June 19, 2006
First Internet Bancorp (“Bancorp”) and First Internet Bank of Indiana (“Bank”) today announced the purchase of shares from a single shareholder.
On March 21, 2006, the Bank consummated a Plan of Exchange by which the Bank became a wholly-owned subsidiary of the Bancorp, a single-bank holding company. In connection with the Plan of Exchange, the shareholders of the Bank were to exchange their shares of the Bank capital stock for shares of the Bancorp capital stock. One shareholder dissented in connection with the Plan of Exchange.
On June 9, 2006, the Bank, the Bancorp and the dissenting shareholder finalized a settlement whereby the Bank and Bancorp paid the dissenting shareholder $3.425 million ($19.86/share) in complete redemption of all of the dissenting shareholder’s shares of capital stock of the Bank and the Bancorp.
David Becker, Chairman and CEO of the Bancorp and Bank said, “There were many considerations in reaching this settlement. The uncertainty of the outcome of the court’s valuation process, as well as the time and related costs – both hard and soft – were given weight in bringing this matter to a prompt and fair conclusion.” He went on to say, “The bottom line is that the transaction was accomplished at less than book value and is therefore accretive to existing shareholders.”
Upon completion of the settlement, the Bancorp now has 1,842,681 shares of voting common stock outstanding and does not have any shares of non-voting common stock outstanding. The Bank remains “well capitalized” under regulatory definitions with capital in excess of $40 million.
About First Internet Bancorp
First Internet Bancorp is a single-bank holding company, privately capitalized with over 300 private and corporate investors. The Bancorp became effective March 21, 2006, and is listed on the OTC Bulletin Board (www.otcbb.com) under the symbol of “FIBP”.
About First Internet Bank
With $430 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 wholly owned subsidiary of First Internet Bancorp.