Bank of Internet's Second Offering Raises Almost $5.7m

San Diego, CA. In one of the harshest business environments ever, Bank of Internet, USA announced it has raised approximately $5.7m in its second offering of common stock.

Following a resolution by the Board of Directors, which was adopted at the annual shareholders meeting, the September 10th offering couldn't have been more inopportune.

"In an economy and stock market that was pessimistic even prior to September 11th, raising approximately $5.7m was a testament to the strength of the business plan and the total unanimity of the Board of Directors to carry on doing business as usual." said bank president, Gary Evans. "Everyone was reeling from the shock of the terrorist attacks, and the emotional overload made it impossible for investors to look beyond the next few days."

"Being able to raise $5.7m from a community of high net worth individuals in the weeks following September 11th is due to the extraordinary effort made by the officers and Board of Directors, especially its Chairman. The attacks made a difficult environment almost impossible, and the events that unfolded would have stopped most people from even trying."

The bank has also made one change in the board of directors. It has appointed Ted Allrich vice-chairman of the board. He is the founder of the site The Online Investor. Jerry Englert, Bank of Internet's Chairman, said that Allrich's 25 years in the capital markets was a fundamental reason in asking him to take on the position. "We are looking very closely at where we want the bank to be this time next year and Ted is the right person to take us to the next level." said Englert.

Since opening in July, 2000 Bank of Internet has funded more than $200m in real estate loans, including $50m in affordable housing and has achieved profitability in just over 14 months of operation. The bank has also met its goals of reaching out to the local community.

Headquartered in San Diego, California, FDIC insured Bank of Internet is one of the first financial institutions organized from inception as an Internet bank.