Net banks have been pretty hot of late. Net Bank NTBK has been as high as 83. Just got an upgrade yesterday & worth a look .. closed up yesterday to $32 7/8 on 2.1 million shares.
Wednesday June 9, 11:05 am Eastern Time
Company Press Release
SOURCE: BancBoston Robertson Stephens
BancBoston Robertson Stephens Initiates Coverage of NTBK with a Buy
Rating
SAN FRANCISCO, June 9 /PRNewswire/ -- The following is being issued by BancBoston Robertson Stephens, a member of the National Association of
Securities Dealers, CRD number 41271:
BancBoston Robertson Stephens eFinance analyst Bryan C. Keane today initiated coverage of Net.B@nk (Nasdaq: NTBK - news) with a Buy rating. The FDIC
insured Internet bank, headquartered in Atlanta, Ga., provides convenient, cost-effective and secure banking services to the exploding number of consumers
utilizing the Internet for financial services.
''We are initiating coverage of Net.B@nk with a Buy rating and expect the shares to trade to at least $50 per share, based on a 6 times price-to-book multiple.
We estimate the bank's assets, deposits and accounts will grow more than 100 percent year-over-year, way above traditional bank's 3 percent to 5 percent
growth rate.'' said Keane. ''Net.B@nk's deposit and account growth continues to blow past all estimates to date, while still maintaining an eFinance industry low
$53.56 account acquisition cost in the first quarter of 1999. We expect the Internet bank to reach over 200,000 accounts by year-end 2000.
''With the recent acquisition of Telebanc, only Net.B@nk remains as a branchless, pure Internet bank that can scale to over $7 billion in assets without raising any
additional capital. We think as Internet powers or traditional financial institutions, late in developing their Internet strategy, look to further expand their product
offering, Net.B@nk could be an excellent investment,'' said Keane.
Clients interested in receiving more information should contact their salesperson at 415-781-9700.
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Wednesday June 9, 8:31 am Eastern Time
Note: there is a subsequent correction for this article.
Company Press Release
SOURCE: Net.B@nk, Inc.
Net.B@nk.com(TM) Doubles Accounts in Five Months; 35,000 Netbanking
with #1 Internet Bank for Customer Relationship Services
ATLANTA, June 9 /PRNewswire/ -- Net.B@nk(TM), Member FDIC (Nasdaq: NTEK - news; netbank.com), the largest FDIC-insured bank
operating solely on the Internet, has more than doubled its account base since January 1, 1999 from more than 17,000 to over 35,000, CEO D.R. Grimes
announced today. Grimes attributed the growth to the success of the bank's new marketing and branding strategy, its high-yielding, low-fee deposit products and its
superior customer service.
Net.B@nk launched a new advertising campaign in February, which highlights the cost savings Net.B@nk achieves as an Internet bank and how those savings are
translated into high-yielding, low-fee deposit products for its customers. The bank's customer service was recently highlighted in a survey of online bank customers
conducted by Gomez Advisors -- Net.B@nk ranked #1 for customer relationship services.
''Net.B@nk has clearly demonstrated that the Internet is a viable and widely accepted delivery channel for banking as we continue to experience unprecedented
growth compared to traditional banks,'' said Grimes. ''We set the standard for Internet banking by providing customers with a complete line of web-based
products and services, giving customers the ultimate one-stop banking and financial services site.''
Net.B@nk's unmatched NetValue Checking account, which bears 3.05% APY with no service charge and requires only $100 to open the account, is attracting a
sizable number of new customers. As a pure Internet bank with no branches, Net.B@nk has dramatically lower costs and fewer employees than traditional banks.
Net.B@nk has maintained its commitment to pass along those savings to its customers. Net.B@nk offers customers a compelling value with a well-rounded
product line currently featuring FDIC-insured, interest-bearing deposit products, online bill payment, online mortgage services, and non-bank financial services,
including online brokerage services and business equipment leasing. Later this year, Net.B@nk will offer home equity loans and automobile loans with real-time
approvals, call center support, and fast closings. Net.B@nk also plans to roll out insurance products, online bill presentment and virtual safe deposit boxes.
''We are providing free, high-interest checking with unlimited online bill payment services, no monthly minimums and no monthly service charges -- not to mention
unlimited account access 24 hours a day, 7 days a week,'' added Grimes. ''Two-career families today have an increased need for convenience and cost savings
and we are accommodating that as online banking grows.''
Some industry analysts report that total U.S. online banking households almost doubled to 8 million during 1998 and project that number to nearly triple to 25
million by year-end 2001. As of March 31, 1999, Net.B@nk, Inc. reported $526 million in assets with $333 million in deposits. The company has been profitable
for the past four successive quarters.
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