First Internet Bank profitable in first quarter

April 26, 2010

Fewer loan losses and an increase in net-interest income helped First Internet Bancorp report a profit in the first quarter.

The Indianapolis-based parent company of First Internet Bank of Indiana said on Monday that it earned $2.2 million in the quarter ended March 31, compared with a loss of $209,445 during the same time frame last year.

The profit translated to $1.21 per share compared with a loss of 11 cents in the same quarter in 2009.

Net-interest income on loans increased 22 percent, to $3.7 million, and new collateral from a commercial borrower helped to push profit higher.

“Loan losses remain higher than we would like, but it appears that our challenged credits may be stabilizing,” First Internet Chairman and CEO David Becker said in a prepared statement.

Still, First Internet reported lower deposit, loan and asset amounts.

As of March 31, First Internet deposits stood at $412.7 million, an 8.9-percent decrease from the $449.5 million in the first quarter of last year. Loans dipped 1 percent, from $317.4 million to $313 million. And assets fell 7.6 percent, from $550.7 million to $508.4 million.

Shares of First Internet were up 26 percent Monday afternoon, trading at $8.95 each.


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