Up again today... likely following NTBK good earnings report.
ATLANTA, July 20 /PRNewswire/ -- Net.B@nk, Inc. (Nasdaq: NTBK), the holding company for Atlanta Internet Bank, announced today its results for the second quarter and first six months of 1998. For the quarter ended June 30, 1998, the Company recorded a $240,000 pretax profit or $0.04 per share compared to a $1,420,000 pretax loss or ($1.11) loss per share for the same quarter a year ago. Pretax profits for the six months ended June 30, 1998 were $88,000 or $0.01 per share compared to a $3,220,000 loss or a ($2.55) loss per share for the six months ended June 30, 1997.
As a result of achieving profitability, the Company recorded a $3.0 million tax benefit in the second quarter related to prior period tax loss carryforwards. Net income for the June 1998 quarter after recording the tax benefit was $0.51 per share and for the six months ended June 30, 1998 was $0.49 per share.
At the Company's July board meeting, D. R. Grimes, CEO of Net.B@nk, stated, "We are extremely pleased with our second quarter results. Net.B@nk is the only Internet bank to achieve profitability. This financial milestone is significant not only for banking, but also for electronic commerce in general. When we began less than two years ago, there were not any proven business models for Internet companies. Our success has come through the devoted efforts of the bank's employees, the loyalty from the bank's growing customer base that has experienced the cost benefits and the ease of online banking, and the strength of the banks strategic partnerships with BISYS, CheckFree, AT&T, Edify and Uvest."
The Company, which went public in July last year, recorded a 45% growth in deposits in the second quarter of 1998. Grimes noted that the bank's customer services were not sacrificed to achieve financial success. "The bank consistently offers among the highest FDIC-insured interest rates in the country, including a 4% checking account, a 5.5% money market account and a 6% one-year CD," said Grimes. Also during the quarter, the bank expanded its financials services by offering online brokerage services and online mortgage loan application services. The bank closed 100 first mortgage loans in the month of June. With total assets of $247 million at June 30, 1998, the bank has customers through out all 50 U.S. states and over 20 foreign countries.
For Quarters and Six Month Periods Ended June 30, 1998 and 1997
(In thousands except per share data)
For the Quarter For the Six Months
June 30 June 30
1998 1997 1998 1997
Interest income $4,253 $--- $6,459 $6
Interest expense (2,714) (37) (4,017) (140)
Net interest income
(loss) 1,539 (37) 2,442 (134)
Noninterest income 104 --- 226 ---
Noninterest expense (1,397) (1,383) (2,570) (3,086)
Provision for loan loss (6) --- (10) ---
Income (loss) before
income taxes 240 (1,420) 88 (3,220)
Income tax benefit 3,029 --- 3,029 ---
Net Income (loss) $3,269 $(1,420) $3,117 $(3,220)
Net Income (loss)
per share $0.51 $ (1.11) $0.49 $ (2.55)
Weighted average shares
outstanding -diluted 6,446 1,279 6,423 1,264
Book value per share $6.07 $ (1.60)
Shares outstanding end
of period 6,146 1,279
Securities and
investments $45,625 $ ---
Loans, net of allowance $189,612 $ ---
Total assets $246,714 $ 965
Deposits $186,846 $ ---
Shareholder equity
(deficit) $ 37,319 $(2,049)
SOURCE Net.B@nk, Inc.
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