FIBP.. $12.45 DD 07/29/10 Earnings..
First Internet Bancorp Announces Record Second Quarter Earnings
Business Wire - Jul 29 at 08:24
Company Symbols: NASDAQ-OTCBB:FIBP
INDIANAPOLIS--(BUSINESS WIRE)-- First Internet Bancorp ("Bancorp") today reported net income of $944,750 for the quarter ended June 30, 2010, compared to net income of $263,747 for the same quarter in the previous year.
"To put the earnings results in perspective, this is the most profitable quarter we have ever had that did not include a significant one-time event," remarked David Becker, Chairman and CEO of First Internet Bancorp. Higher earnings were reported for first quarter 2010 and third quarter 2001 but included favorable one-time adjustments.
Mr. Becker noted the Bancorp has had strong success year-to-date. The adjusted first quarter 2010 net income of $771,645 ($2,299,967 prior to the reversal of loan loss expense related to a large commercial credit) also represented significant improvement over first quarter 2009.
Earnings improvement was the result of increased net interest margin, continued generation of non-interest income and a reduction in loan loss provision. Net interest margins widened due to increased loan yields and lower cost of funds. Second quarter net interest margin equaled 3.18% compared to 3.17% as of March 31, 2010, and 2.53% as of June 30, 2009. Non-interest income, derived primarily from online mortgage originations, continued to have a positive impact on earnings, adding $738,674 in the second quarter. Non-interest expenses remained below peer levels as a result of the Bancorp's efficient Internet banking platform.
Second quarter provision for loan loss was $773,861, a reduction of $706,327 over the same period in 2009; however, the Bancorp continued to maintain a robust allowance for loan and lease loss. As of June 30, 2010, the Bancorp held reserves equal to 2.37% of outstanding loan balances not held for sale compared to 2.34% as of March 31, 2010 and 1.71% as of June 30, 2009.
"By remaining focused on areas we can control, such as loan and deposit pricing and selected non-interest expense items, we have continued to improve profitability," Mr. Becker said. "Loan losses are still elevated when compared to historic levels; however, they are trending lower in our portfolio, which is consistent with national consumer credit trends."
The Bancorp remained well capitalized under risk-based capital guidelines issued by the Board of Governors of the Federal Reserve System (FRB).
Selected Balance Sheet Information
June 30
2009 2010
(Unaudited1) (Unaudited1)
Cash Equivalents 38,858,690 25,004,068
Investment Securities 153,846,696 130,713,349
Loans, net of Reserve 327,743,929 301,151,163
Bank owned life insurance 7,419,684 7,720,357
Goodwill 4,687,349 4,687,349
Other Assets 11,945,545 13,870,019
Total Assets 544,501,893 483,146,305
Deposits 453,150,960 400,201,852
FHLB Advances 44,000,000 32,393,440
Other Liabilities 1,849,777 1,623,083
Shareholder's Equity 45,501,156 48,927,930
Total Liabilities & Equity 544,501,893 483,146,305
Selected Income Statement Information
Quarter Ended June 30
2009 2010
(Unaudited1) (Unaudited1)
Net Interest Income 3,272,565 3,659,921
Non-Interest Income 1,051,454 738,674
Provision for Loan Losses (1,480,188 ) (773,861 )
FDIC Special Assessment (251,250 ) -
Non-Interest Expense (2,435,366 ) (2,407,216 )
Net Income Before Taxes 157,215 1,217,518
Tax (Expense)/Benefit 106,532 (272,768 )
Net Income 263,747 944,750
Income per share:
Basic 0.14 0.50
Weighted average of shares outstanding:
Basic 1,890,838 1,896,650
Six Months Ended June 30
2009 2010
(Unaudited1) (Unaudited1)
Net Interest Income 6,343,795 7,397,809
Non-Interest Income 1,658,728 1,020,994
Provision for Loan Losses (3,508,512 ) 996,558
FDIC Special Assessment (251,250 ) -
Non-Interest Expense (4,651,836 ) (4,885,041 )
Net Income/(Loss) Before Taxes (409,075 ) 4,530,320
Tax (Expense)/Benefit 463,377 (1,285,603 )
Net Income 54,302 3,244,717
Income per share:
Basic 0.03 1.71
Weighted average of shares outstanding:
Basic 1,890,838 1,896,650
About First Internet Bancorp
First Internet Bancorp (OTC Bulletin Board: FIBP), the parent company of First Internet Bank of Indiana, is privately capitalized with over 250 private and corporate investors. The Bancorp became effective March 21, 2006.
About First Internet Bank
With over $480 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. Deposit services include checking accounts, regular and money market savings accounts with industry-leading interest rates, CDs and IRAs. First IB also offers consumer loans, conforming mortgages, jumbo mortgages, and home equity loans and lines of credit. First IB 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.
Source: First Internet Bancorp
Copyright Business Wire 2010
News 
Market Data 
Discover 
