Wearing dark glasses and a wide smile, Gary Lewis Evans, President and CEO of Bank of Internet USA (BofI), opened the first annual shareholders meeting with his "State of the Bank Address." Before giving his report he explained the need for dark glasses was because "the future of the bank is so bright its positively dazzling..."

In one year Bank of Internet has grown its assets from an original $14 million investment to more than $160 million. According to the Federal Reserve, the annual growth rate of bank assets between 1995 and 2000 ranged between 6.1% for large banks and 13.1% for small banks. Bank of Internet USA has far exceeded these figures, and is positioned for even greater success.

Included in Evan's' report was the bank's current loan portfolio and deposit growth. With loans totaling over $158 million and no outstanding delinquencies, BofI plans to increase its portfolio with the same meticulousness it has applied to its current portfolio.

"The first-year accomplishments have been significant," said Evan's, "not since the original "BofI" started "branching” in 1904 has there been an opportunity to be part of such a historic wave of change. When A. P. Giannini, founder of Bank of Italy, now known worldwide of America, decided to "branch" the Bank of Internet is riding a wave of change that also revolutionizes the way a bank characterizes community, the way banks operate, and the way people think of and use banks. By the year 2007 every bank will be able to compete for each customer and relationship worldwide,"

Re-affirming the bank's mission to become the industry's premier low-cost provider by passing along savings in operating costs to customers in the form of attractive interest rates, and low fees, Board Chairman, Jerry Englert concluded the meeting by announcing the bank's plan to increase its capital to facilitate additional growth. "I'm confident," said Englert, " that the full $20 million will be purchased by qualified investors before our private, nonpublic offering closes on October 31, 2001. This new round of private financing will enable the bank to grow and approach its next target of $1/2 billion dollars in assets."