First Internet Bancorp, parent of Indianapolis-based First Internet Bank, said Thursday that profit rose 55 percent in the second quarter compared with the year-ago period.
The company earned $1.3 million for the quarter ended June 30, or 67 cents per share, compared with $828,000, or 43 cents per share, during the same period last year.
First Internet attributed the increase to gains on loans sold and growth in deposits.
Loans held for sale totaled $35 million as of June 30, compared with $9.5 million at the same time in 2011.
“We are generating tremendous growth while maintaining a very acceptable net interest margin in an environment with significant margin pressure,” Chairman and CEO David Becker said in a prepared statement. “Because we don’t have to support a bricks-and-mortar network, we can accept lower margins than community banks and still generate strong profits.”
Total deposits in the second quarter grew 18 percent, to $522 million.
Assets increased 16 percent, to a record $624 million.
Through the first six months the bank reported profit of $2.4 million, or $1.27 per share, compared with $1.4 million, or 72 cents per share, in the first six months of 2011.