First Internet Bancorp (“Bancorp”)
today announced net income of $369,939 for the quarter ended March 31,
2008, a decrease of $318,306, or 46%, from the same quarter in the
previous year.
Numerous factors contributed to the net decrease. Declining interest
rates compressed net interest margins, leading to an $114,121 (4%)
reduction over last year’s first quarter
results. Provision for loan and lease losses increased $264,834 (42%)
due to charge-offs for consumer loans. Non-interest expenses increased
$203,784 (10%) primarily caused by an increase in the company’s
FDIC premium assessments ($76,001) and an increase in the losses related
to repossession liquidations and debit/credit card losses ($65,317).
“We continue to remain concerned about the
financial health of the consumer given nationwide decreases in housing
values, related credit concerns surrounding the mortgage market, rising
unemployment levels and higher fuel and food prices,”
said David Becker, Chairman and CEO of First Internet Bancorp. “These
economic factors have impacted both the borrower’s
ability to repay their consumer loans as well as the liquidation prices
we receive when disposing of repossessed assets. Considering the
concentration of consumer loans on our balance sheet, we believe our
continued efforts to actively manage this portfolio has resulted in
stable delinquency levels in this difficult time.”
The Bancorp’s net loan portfolio decreased by
$10 million, or 3%, as compared to the same quarter in the previous
year. “Given current economic conditions, the
Bancorp is making a concerted effort to further diversify the balance
sheet with a continued emphasis on high quality assets. One way we’ll
do that is by purchasing investment securities,”
Becker noted.
He went on to comment, “There is also a
tremendous opportunity in the market for high quality residential
mortgage loans right now. The number of mortgage brokers is down 40%,
but demand for home loans -- while off the record volumes of three and
four years ago -- has not declined proportionately. To respond to this
need, we have added experienced personnel and launched an online
mortgage offering in February 2008.”
As of March 31, 2008, First IB held $470.9 million in deposits, a 9%
increase from deposits held as of March 31, 2007.
Selected Balance Sheet Information
March 31 (Unaudited1)
2007
2008
Cash Equivalents
47,221,906
24,376,478
Investment Securities
114,489,639
179,706,456
Loans, net of Reserve
353,112,200
343,126,320
Bank owned life insurance
6,756,340
7,041,990
Goodwill
4,696,250
4,687,349
Other Assets
5,975,168
6,843,835
Total Assets
532,251,503
565,782,428
Deposits
431,585,834
470,916,805
FHLB Advances
54,700,000
46,000,000
Other Liabilities
2,394,074
2,904,167
Shareholder's Equity
43,571,595
45,961,456
Total Liabilities & Equity
532,251,503
565,782,428
Selected Income Statement Information
March 31 (Unaudited1)
2007
2008
Net Interest Income
2,883,757
2,769,636
Non-Interest Income
699,432
700,784
Provision for Loan and Lease Losses
(633,456)
(898,290)
Non-Interest Expense
(2,031,894)
(2,235,678)
Net Income Before Taxes
917,839
336,452
Tax Benefit (Expense)
(229,594)
33,487
Net Income
688,245
369,939
Income per share:
Basic
0.37
0.20
Weighted average of shares outstanding:
Basic
1,862,300
1,872,739
About First Internet Bancorp
First Internet Bancorp, the parent company of First Internet Bank of
Indiana and Landmark Mortgage Company, is privately capitalized with
over 250 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 $560 million in assets, First Internet Bank of Indiana (First IB)
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.
About Landmark Mortgage Company
Landmark Mortgage Company operates from two locations in the
metropolitan Indianapolis area providing various mortgage products and
services to clients in central Indiana and beyond. Landmark Mortgage
Company is a wholly owned subsidiary of First Internet Bancorp.
1 Financial results for the Bancorp are audited
by external accountants on an annual basis; however, external auditors
are not engaged to review quarterly information.
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