First Internet Bancorp today reported a 30-percent drop in third-quarter profit, to $461,867, as borrowers struggled to pay back their loans.
The $461,867 returns the parent of First Internet Bank to 2006 levels after it enjoyed a strong 2007.
The bank also said today that it nearly doubled its provision for loan losses in the quarter from a year earlier, to $633,675.
“Economic conditions have caused consumers who have never been delinquent in the past to suddenly cease making their loan payments and turn over the collateral or file for bankruptcy,” said CEO Dave Becker.
Still, Becker said in an interview with IBJ that the bank has managed to steer clear of mortgage problems that have afflicted other segments of the lending industry.
The economy will remain soft for 12 to 18 months, he predicted.