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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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  1. PJ - Mall operators like Simon, and most developers/ land owners, establish individual legal entities for each property to avoid having a problem location sink the ship, or simply structure the note to exclude anything but the property acting as collateral. Usually both. The big banks that lend are big boys that know the risks and aren't mad at Simon for forking over the deed and walking away.

  2. Do any of the East side residence think that Macy, JC Penny's and the other national tenants would have letft the mall if they were making money?? I have read several post about how Simon neglected the property but it sounds like the Eastsiders stopped shopping at the mall even when it was full with all of the national retailers that you want to come back to the mall. I used to work at the Dick's at Washington Square and I know for a fact it's the worst performing Dick's in the Indianapolis market. You better start shopping there before it closes also.

  3. How can any company that has the cash and other assets be allowed to simply foreclose and not pay the debt? Simon, pay the debt and sell the property yourself. Don't just stiff the bank with the loan and require them to find a buyer.

  4. If you only knew....

  5. The proposal is structured in such a way that a private company (who has competitors in the marketplace) has struck a deal to get "financing" through utility ratepayers via IPL. Competitors to BlueIndy are at disadvantage now. The story isn't "how green can we be" but how creative "financing" through captive ratepayers benefits a company whose proposal should sink or float in the competitive marketplace without customer funding. If it was a great idea there would be financing available. IBJ needs to be doing a story on the utility ratemaking piece of this (which is pretty complicated) but instead it suggests that folks are whining about paying for being green.

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