IBJNews

First Internet profit slides in first quarter

Back to TopCommentsE-mailPrintBookmark and Share

First Internet Bancorp on Thursday reported a 60-percent drop in first-quarter profit, blaming a big decrease in mortgage banking income.

The Indianapolis-based parent of First Internet Bank earned $600,000, or 13 cents a share, versus a profit of $1.49 million, or 52 cents a share, in the first quarter of last year.

At midday Thursday, First Internet shares had slid 0.6 percent, to $22.20.

Total assets rose 30 percent, to $848 million, compared with $651 million a year earlier. Total deposits increased 33 percent to $727.6 million, from $546.7 million in the first quarter last year.

The bank attributed its drop in profit to a 70-percent decrease in mortgage banking income. That reflected the national slowdown in residential refinancing that began in the second half of 2013, according to First Internet. Rising interest rates put a damper on mortgage refinancing.

Income from mortgage banking fell from $3 million in the first quarter of 2013 to $900,000 in the first quarter this year.

In addition, tthe bank's decrease in net income per share reflected a 1.6 million increase in the number of outstanding common shares, following a December public offering.

Chairman and CEO David Becker said First Internet saw strong gains in commercial loans, which soared 111 percent to $230.2 million, compared with $109.1 million in the first quarter of last year.

The bank best known for its focus on consumers has in recent years stepped up its commercial business. Commercial real estate loans rose 87 percent in the quarter, while commercial and industrial loans jumped by 221 percent.

“Continued growth and diversification of our loan and deposit portfolios will be the fundamental drivers of our long-term success," Becker said in a prepared statement. “Our loan portfolio is diversified by both lending category and by geography. We have expanded our commercial lending capabilities in the Midwest and Southwest."

Becker founded the bank 15 years ago as one of the first in a new genre of Internet-based banks that don’t use traditional brick-and-mortar branches.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. I never thought I'd see the day when a Republican Mayor would lead the charge in attempting to raise every tax we have to pay. Now it's income taxes and property taxes that Ballard wants to increase. And to pay for a pre-K program? Many studies have shown that pre-K offer no long-term educational benefits whatsoever. And Ballard is pitching it as a way of fighting crime? Who is he kidding? It's about government provided day care. It's a shame that we elected a Republican who has turned out to be a huge big spending, big taxing, big borrowing liberal Democrat.

  2. Why do we blame the unions? They did not create the 11 different school districts that are the root of the problem.

  3. I was just watching an AOW race from cleveland in 1997...in addition to the 65K for the race, there were more people in boats watching that race from the lake than were IndyCar fans watching the 2014 IndyCar season finale in the Fontana grandstands. Just sayin...That's some resurgence modern IndyCar has going. Almost profitable, nobody in the grandstands and TV ratings dropping 61% at some tracks in the series. Business model..."CRAZY" as said by a NASCAR track general manager. Yup, this thing is purring like a cat! Sponsors...send them your cash, pronto!!! LOL, not a chance.

  4. I'm sure Indiana is paradise for the wealthy and affluent, but what about the rest of us? Over the last 40 years, conservatives and the business elite have run this country (and state)into the ground. The pendulum will swing back as more moderate voters get tired of Reaganomics and regressive social policies. Add to that the wave of minority voters coming up in the next 10 to 15 years and things will get better. unfortunately we have to suffer through 10 more years of gerrymandered districts and dispropionate representation.

  5. Funny thing....rich people telling poor people how bad the other rich people are wanting to cut benefits/school etc and that they should vote for those rich people that just did it. Just saying..............

ADVERTISEMENT