First Internet Bank Of Indiana Announces Third Quarter Earnings

Released on October 29, 2002

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First Internet Bank of Indiana today announced net income of $936,579 for the quarter ended September 30, 2002, representing its seventh consecutive quarter of profitability.

Net income before taxes for the quarter was $223,420, down 36% from $349,723 for the same quarter in the prior year. Net income before taxes for the quarter ended September 30, 2002 includes charges of $516,595 to the provision for loan and lease losses in recognition of the overall increased level of loan balances held by the Bank and some increased risk of loss from a relatively limited number of commercial credits. The expense for the provision for loan and lease losses in the comparable quarter in 2001 was $80,020.

“The general weakness in the economy has taken a toll on many commercial credits,” said David B. Becker, Chairman and CEO of First IB. “While First IB does not have significant exposure in this area, we do want to ensure that the Bank is adequately reserved for potential losses. Ultimately, as we grow the Bank, these actions strengthen the balance sheet.”

Although the Bank has not actively increased its commercial loan portfolio since early 2001, the Bank’s total loan portfolio has grown significantly. The net loans to deposit ratio was 63.92% as of September 30, 2002 as compared to 44.58% as of September 30, 2001.

Selected Balance Sheet Information
September 30,
September 30,
Cash Equivalents 10,716,930 4,179,471
Investment Securities 140,820,375 121,433,179
Loans, net of Reserve 92,612,669 149,635,392
Other Assets 2,479,065 3,755,371
Total Assets 246,629,039 279,003,413
Deposits 207,746,084 234,094,842
FHLB Advances 3,000,000
Other Liabilities 1,259,205 804,491
Shareholder’s Equity 37,623,750 41,104,080
Total Liabilities & Equity 246,629,039 279,003,413


Selected Income Statement Information
Quarter Ended
September 30
Net Interest Income 1,518,395 1,710,388
Non-Interest Income 224,635 227,523
Provision for Loan and Lease Losses (80,020) (516,595)
Non-Interest Expense (1,128,602) (1,206,558)
Gain/(Loss) on Sale of Investments



Net Income/(Loss) Before Taxes 349,723 223,420
Tax Benefit 640,962 713,159
Net Income 990,685 936,579
Income per share:
Basic 0.50 0.47
Weighted average of shares outstanding:
Basic 1,991,010 2,006,148

With $279 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.


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