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. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

ADVERTISEMENT