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First Internet earnings jump on lending gains

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First Internet Bancorp on Wednesday said second quarter profit rose 34 percent on growth in mortgage originations and commercial loans.

The Indianapolis-based parent of First Internet Bank earned a record $1.7 million, or 59 cents a share, compared with $1.3 million, or 45 cents per share, in the second quarter of 2012.

Mortgage originations rose 25 percent, to $232.5 million.

Commercial real estate lending jumped 64 percent, to $112.7 million. And commercial and industrial lending nearly doubled, to $15.3 million from $8.1 million at the same time last year.

During the first half of the year, the bank added cash-management services and a business credit card.

“We have a robust pipeline for commercial loans," said First Internet CEO David Becker in a prepared statement. "Somewhat improved economic conditions seem to be having a positive impact on commercial real estate lending opportunities.”

Like many financial institutions in recent years, First Internet has been cleaning up its loan portfolio after the economic collapse of 2009. Non-performing loans as of June 30 fell to $2.9 million, down from $8.4 million a year ago.

Meanwhile, First Internet said on it plans on Thursday to formally open a previously announced mortgage processing center at 11201 USA Parkway, in Fishers.

The $4.3 million expansion is at a 49,700-square-foot facility that once housed a St. Vincent Health medical center.

Last February, First Internet said its new center would employ about 48 people, but on Tuesday, the bank said that number is now likely to be about 65 people.

Early this year, First Internet officials said they expected the center would bring about $3.3 million in new payroll to Fishers.

Becker founded the bank 14 years ago as one of the first in a new genre of Internet-based banks that don’t use traditional brick-and-mortar branches. Based at 9200 Keystone Crossing, the bank has just over 100 employees.

Its common stock recently was added to the Russell Microcap Index, the ABA NASDAQ Community Bank Index and the MSCI USA Microcap Index. Shares slipped 1 percent in early trading Wednesday, to $24.25 each.

 

 


 

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