Bank of Internet USA Reports Record Profits
San Diego, CA - Bank of Internet USA today announced financial results for the quarter ended March 31, 2002. The Bank reported record earnings of $550,000 versus a loss of ($220,000) for the same period ending March 2001 and income of $170,000 for the quarter ending December 2001. March was the 2nd quarter and 7th consecutive month of profitability for this less than 2-year-old bank.
The record earnings for this quarter represents a 223% increase over last quarter's earnings-the first full quarter of profitability after opening the Bank on July 4, 2000.
In addition to growing earnings the Company ended the quarter with assets of $216 million, and the bank continues to maintain superior credit quality. The bank is on target to substantially improve upon the results of fiscal 2001.
"The earnings momentum we experienced in the last quarter has carried into the first quarter of 2002. The demand for Internet banking is exceptionally strong, and the results we are experiencing speak to our focus on credit quality and classic banking principles, as well as to the dedication and enthusiasm of our people," said Gary Lewis Evans, President and Chief Executive Officer of Bank of Internet.
Evans went on to say that the bank's Board of Directors is currently exploring a third private placement. "Growth will be limited until we raise additional capital due to regulatory capital ratios all banks have," said Evans. "We've had serious interest in another placement, and in the year ahead we will continue to grow the bank, foster financial stability and contain costs. I am confident that these efforts will enhance the bank's reputation as one of the preeminent centers for Internet Banking."
For more information contact Gary Evans at gary@bankofinternet.com, Tel: 858.350.6213 or Anne Bernstein at annebernsetin@cox.net, Tel: 619.298.4390
About Bank of Internet USA
The bank offers a comprehensive line of consumer banking and mortgage lending products delivered through the Internet at www.BankofInternet.com. Customers enjoy free interest-bearing checking accounts with online paid check copies, bill payment, account statements, ATM or Visa(R) Check Card and ATM Fee reimbursement anywhere in the world.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Information in this press release about the bank's ongoing effort to increase its overall profitability; its ability to continue attracting new account applications consistent with the current volume; its operational expenses remaining low; are "forward-looking statements" involving risks and uncertainties that could cause actual results to differ materially. Risks include the bank's consumers not responding to the bank's products; a change in strategy at the bank for business or financial reasons; and an unforeseen change in the Internet. The bank has no obligation to update any forward-looking statements.