First Internet Bank reports strong second quarter

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Fewer loan losses and an increase in net-interest income helped First Internet Bancorp post one of the largest quarterly
profits in the company’s history.

The Indianapolis-based parent of First Internet Bank of Indiana said on Thursday that it earned $944,750 in the second quarter
compared to a profit of $263,747 during the same period a year ago.

The quarterly profit of 50 cents per share compared to 14 cents per share in 2009.

“To put the earnings results in perspective, this is the most profitable quarter we have ever had that did not include
a significant one-time event,” First Internet Chairman and CEO David Becker said in a prepared statement.

The bank reported higher earnings in the first quarter of 2010 and the third quarter of 2001, but those included favorable
one-time adjustments, Becker said.

Net-interest income on loans increased 12 percent in the second quarter, to $3.7 million, while the bank’s provision
for loan losses fell from $1.5 million in the second quarter of 2009 to $773,861 as of June 30.

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

As of June 30, the bank’s deposits stood at $400.2 million, a 13-percent decrease from the $453.2 million in the second
quarter of last year. Loans dipped 9 percent, from $327.7 million to $301.1 million. And assets fell 12.6 percent, from $544.5
million to $483.1 million.

Shares of First Internet were up 14 percent Thursday morning, trading at $9.75 each.
 

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