NET.B@NK REACHES OVER $1 BILLION IN ASSETS
ATLANTA, Oct 20, 1999 /PRNewswire via COMTEX/ -- Net.B@nk, Inc.
(Nasdaq: NTBK), the holding company for the first profitable
Internet-only bank, Net.B@nk (http://www.netbank.com), Member FDIC,
announced today earnings for the third quarter of 1999 and that the
bank had grown to over one billion dollars in assets. The bank reported
total assets of $1.03 billion as of September 30, 1999. The Company
also reported an 83% increase in net income for the third quarter of
1999 to $1.124 million (or $.04 per share), compared to $613 thousand
(or $.03 per share) for the same quarter a year ago. For the
nine-months ended September 30, 1999, the company recorded $2.583
million of net income (or $.09 per share) compared to $691 thousand for
the same period last year (or $.04 per share before recording a $3
million tax benefit in June 1998).
Commenting at an institutional investors' conference held today, D.R.
Grimes, CEO and Vice-chairman of Net.B@nk, Inc., said, "As of today,
the bank has tripled the number of accounts since the first of the year
to over 54,000 accounts. This increase represents the growing
acceptance by consumers of online banking." Grimes added that the bank
is anticipating additional growth this year. The bank has relied
primarily upon a targeted Internet advertising campaign for the past
two years. However, Grimes noted that the bank has recently begun a
nationwide advertising campaign. "In mid-September, we expanded our
advertising program to include additional national publications and
drive-time radio slots in major cities across the country," he stated.
The third quarter results reflected this expansion of the Net.B@nk
marketing program with 42 percent of the quarter's non-interest
expenses related to marketing and advertising.
The growth in accounts was primarily in checking and money market
accounts. Grimes noted that checking account customers realize the full
benefits of online banking with the easy transfer of funds between
accounts, the ability to pay bills electronically free of charge and
the capability to track items clearing their bank accounts daily.
Grimes followed up by noting, "Ten percent of our customers are
visiting our website every day."
"Net.B@nk is committed to expanding the services that we provide our
customers to include an even broader array of lending, banking,
brokerage and other financial services," Grimes commented. In
September, the bank announced its own home equity product that provides
online home equity applicants with approvals within 30 seconds. The
bank's consumer lending products already include lines of credit,
overdraft protection, credit cards, leasing, and home mortgages. Grimes
further noted that the bank had funded over $300 million in first
mortgages during the past 12 months.
Summarizing, Grimes stated that the goal of being a comprehensive,
full-service bank operating on the Internet would be attained not only
by the expansion of internal infrastructure but on the continued focus
on additional strategic partnerships, which have enabled the bank to
experience unprecedented growth. These partnerships have allowed, and
will continue to allow, the bank to offer broad services to its
customers at the lowest possible cost. This cost structure has enabled
the bank to offer attractive interest rates and a low fee structure
including its popular free 3% interest checking account.
Net.B@nk, Inc. (Nasdaq: NTBK), is a financial services company whose
sole subsidiary, Net.B@nk, Member FDIC, is the first profitable pure
Internet bank in the country, having achieved profitability in the past
six successive quarters. With more than 54,000 accounts and customers
in all 50 United States and 20 foreign countries, Net.B@nk is the
largest FDIC-insured bank operating solely on the Internet. In addition
to free checking and money market accounts and certificates of deposits
with exceptional interest rates, Net.B@nk offers its customers the
ultimate convenience in banking. Products and services include free
online account access, free unlimited online bill payment, free checks,
free unlimited ATM use, VISA(R) Check Card, VISA(R) and MasterCard(R)
credit cards, online brokerage services, mortgage lending, home equity
lines and loans, and business equipment leasing services. Net.B@nk is
member of the Cirrus, Honor/Star, and AFFN ATM networks. For more
information on Net.B@nk, its products and services, visit the web site
at netbank.com, or call 888-256-6932.
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: Statements in this press release regarding Net.B@nk's
business which are not historical facts are "forward-looking
statements" that involve risks and uncertainties. For a discussion of
such risks and uncertainties, which could cause actual results to
differ from those contained in the forward- looking statements, see
"Risk Factors" in the Company's Annual Report or Form 10-K for the most
recently ended fiscal year.
Net.B@nk, Inc.
For Quarters and Nine Months Ended September 30, 1999 and 1998
(In thousands except per share data)
For the Quarter Ended For the Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
Interest income $16,323 $5,284 $34,302 $11,743
Interest expense 8,865 3,220 19,156 7,237
Net interest income 7,458 2,064 15,146 4,506
Noninterest income 311 190 789 417
Noninterest expense 6,064 1,290 11,915 3,860
Provision for loan loss 2 6 107 16
Income before
income taxes 1,703 958 3,913 1,047
Income tax (expense)
benefit
Income tax -
statutory rate (579) (345) (1,330) (356)
Tax benefit of
loss carryforward -- -- -- 3,040
Net Income $1,124 $613 $2,583 $3,731
Net Income
per share - basic $0.04 $0.03 $0.10 $0.20
- diluted $0.04 $0.03 $0.09 $0.19
Weighted average shares
outstanding - basic 29,346 18,442 26,229 18,439
- diluted 30,353 19,330 27,260 19,300
Book value per share $8.12 $2.06
Shares outstanding end
of period 29,394 18,443
Securities and
investments 333,844 41,601
Loans, net of
allowance 642,269 200,138
Total assets 1,030,287 283,429
Deposits 486,167 241,325
Shareholder equity 238,626 38,007
SOURCE Net.B@nk, Inc.
(C) 1999 PR Newswire. All rights reserved.
prnewswire.com
-0-
CONTACT: D.R. Grimes, CEO, 770-343-6006, or Robert E. Bowers, CFO,
770-343-6006, both of Net.B@nk
WEB PAGE: netbank.com
GEOGRAPHY: Georgia
INDUSTRY CODE: FIN
MLM
SUBJECT CODE: ERN
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