First Internet Bancorp (NASDAQ: INBK), parent company of First Internet Bank (
), a premier nationwide provider of online retail banking services and commercial banking services, today announced unaudited financial results for the three months and nine months ended September 30, 2013.
“We are pleased with the significant progress we have made on loan, deposit and asset growth, particularly on the commercial side of our business,” said David Becker, Chairman and CEO. “Our goal is to continue to grow commercial loans and deposits while also growing our national retail business. As expected, our mortgage banking unit was not immune to the increase in interest rates which caused a reduction in our mortgage originations and spreads over the last three months. We have made significant progress in shifting our focus to purchase loans versus refinancings.”
Highlights for the quarter ended September 30, 2013:
Highlights for the nine months ended September 30, 2013:
- Total assets were a record $738.52 million at September 30, 2013 compared with $627.68 million at September 30, 2012, up 18%.
- Total loans excluding those held for sale were $434.17 million at September 30, 2013 compared with $348.84 million at September 30, 2012, an increase of 24%. Commercial loans totaled $168.40 million at September 30, 2013 compared with $89.08 million at September 30, 2012, an 89% increase. Commercial Real Estate loans increased 55% and Commercial and Industrial loans increased 338%.
- Total deposits were $636.65 million at September 30, 2013 compared with $522.66 million at September 30, 2012, up 22%.
- Net interest income increased 13% in the quarter ending September 30, 2013 to $4.36 million compared with $3.86 million for the quarter ending September 30, 2012.
- Net income was $727,000 or $0.25 per diluted share in third quarter 2013 compared with $1.63 million or $0.57 per diluted share in third quarter 2012. The decrease in net income for the quarter was primarily attributed to the decline in revenue from the company’s mortgage banking operations.
- Net interest income was $12.48 million compared with $11.75 million for the prior year period, an increase of 6%.
- Total non-interest income rose to $8.35 million compared with $7.61 million for the prior year period, an increase of 10%.
- For the first nine months of 2013, net income was $3.93 million or $1.36 per diluted share compared with $4.05 million or $1.41 per diluted share for the first nine months of 2012.
“Interest rate fluctuations affected all national mortgage lenders this quarter, and we too experienced the slowdown in mortgage refinancing activity that was triggered by increased interest rates,” Becker said. “To reduce our sensitivity to rate adjustments, our mortgage banking unit has made significant progress during the quarter on transitioning from a refinance-based national mortgage origination platform to becoming a preferred home purchase lender. During this quarter, 51% of the mortgages we closed were for home purchases, compared to 12% in third quarter 2012.”