NetB@nk, Inc. Triples Assets to $1.3 Billion in 1999
Quarterly Deposit Growth Rate Doubles in the Fourth Quarter
January 24, 2000 08:26
ATLANTA, Jan. 24 /PRNewswire/ -- Net.B@nk, Inc. (Nasdaq: NTBK), the holding company for Net.B@nk(TM), (www.netbank.com ), member FDIC, announced today that it tripled its asset size during the year 1999 to $1.3 billion, making it the fourth largest bank based in Georgia. The Company, which is the first profitable Internet-only bank, announced its seventh consecutive profitable quarter and continued account growth when it released its operating results for the year and for the quarter ended December 31, 1999. For the year, the Company recorded $3,048,000 in net income or $.11 per share compared to $1,412,000 in net income (before recording a one-time tax benefit of $3.1 million in June 1998) or $.07 per share a year ago. For the quarter ended December 31, 1999, the company recorded $465,000, or $.02 per share in net income as compared to $733,000 or $.04 per share a year ago. All per share amounts reflect the effects of the Company's three-for-one stock split effective May 14, 1999.
D.R. Grimes, CEO of Net.B@nk, indicated the operating results in the latter part of the year reflect the aggressive growth strategy that the Company has recently undertaken. Grimes said, "We have proven that the Internet banking model is a profitable business model that rewards the customer with convenience, the highest interest rates possible and the lowest fees. While we remain committed to continuing our profitable operations, we are determined to enhance our position as the leader in Internet banking and financial services. We are investing funds that would otherwise be short-term profits in strategic alliances and other marketing programs that will enable us to reach more customers and expand services that will increase income per customer."
Grimes indicated that the number of customer deposit accounts grew by more than threefold during the 1999, from 17,400 to 66,000 accounts. "After raising over $300 million in stock and convertible note offerings early in the year, we accelerated our investment in marketing," he said. "The fourth quarter reflects this marketing investment. The December quarter recorded the most rapid account growth to date. We more than doubled any previous quarter's deposit growth with a $167.7 million increase in customer deposits," he stated. Grimes further noted that in the last ninety days the bank had established strategic alliances with two major web portals, Yahoo! (www.yahoo.com ) and MSN Money Central (www.moneycentral.com ), Microsoft's leading personal finance portal.
"At the same time we experienced this unprecedented growth," Grimes continued, "we also invested in our infrastructure and implemented system upgrades to provide our customers with quicker response times, whether they access the bank via the Internet or through our call centers."
Grimes also emphasized the importance of the type of account growth the bank is experiencing. Seventy-three percent of the bank's total accounts are transactional checking and money market accounts; accounts which traditionally represent long-term customer relationships. "I am particularly pleased that our checking accounts alone grew by 475% in 1999," Grimes said. "Each day, over 10% of our customers are online with us; paying bills, applying for loans, transferring funds, and performing other banking activities. We will continue to expand the products and services that we offer these frequent customers."
During the last 12 months, the Company reported that the bank had funded over $400 million in first mortgage loans. It had also expanded the bank's lending products to include home equity lines and second mortgages. In December, the bank began offering a new innovative e.card-enabled VISA(R) credit card. The credit card refunds cardholders 5% on purchases at some of the most popular e-vendors, including Amazon.com(R), CDNOW.com, eToy.com, reel.com, and SharperImage.com.
Net.B@nk, Inc. 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 seven successive quarters. With over $1.3 billion in assets 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) credit cards, online brokerage services, mortgage lending, home equity lines and loans, and business equipment leasing services. Net.B@nk is a 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 www.netbank.com , or call 1-888-256-6932.
"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 Years Ended December 31, 1999 and 1998 (In thousands except per share data)
For the Quarter Ended For the Year Ended
December 31, December 31,
1999 1998 1999 1998
Interest income $20,471 $6,343 $54,773 $18,088
Interest expense 12,246 4,186 31,401 11,424
Net interest income 8,225 2,157 23,372 6,664
Noninterest income 870 266 1,659 683
Noninterest expense 8,644 1,327 20,560 5,188
Provision for loan loss 0 4 107 20
Income before
income taxes 451 1,092 4,364 2,139
Income tax (expense)
benefit
Income tax - statutory
rate 14 (359) (1,316) (727)
Tax benefit of loss
carryforward 3,052
Net Income $465 $ 733 $ 3,048 $4,464
Net Income per share -
- basic $ 0.02 $0.04 $0.11 $0.24
- diluted $ 0.02 $0.04 $0.11 $0.23
Weighted average shares
outstanding
- basic 29,401 18,471 27,052 18,447
- diluted 30,248 19,221 28,045 19,152
Book value per share $ 8.11 $2.10
Shares outstanding end
of period 29,413 18,471
Securities and
investments 429,014 61,465
Loans, net of
allowance 779,738 276,955
Total assets 1,257,885 388,437
Deposits 653,901 283,589
Shareholder equity 238,422 38,755
CONTACT: D. R. Grimes, CEO, or Robert E. Bowers, CFO of NetB@nk, Inc., 770-343-6006 or fax, 770-343-9344
SOURCE NetB@nk, Inc.
/CONTACT: D. R. Grimes, CEO, or Robert E. Bowers, CFO of NetB@nk, Inc.,
770-343-6006 or fax, 770-343-9344/
/Web site: netbank.com /
(NTBK) |
