Headlines:
InteliData Reports a Smaller 2Q Loss
InteliData Technologies Corp., a Reston, Va., provider of banking and bill payment software and services, said its second-quarter revenue dropped 36% from a year earlier, to $2.4 million, but its net loss narrowed 14%, to $1.4 million, or 3 cents a share.
The second-quarter results for last year included a large noncash impairment charge that swelled the net loss to $27.4 million, or 53 cents a share, InteliData said Tuesday.
In March, InteliData agreed to sell itself to Corillian Corp., of Portland, Ore., for $20 million in cash and stock.
InteliData has been plagued in the past year by slumping sales and weak accounting. Last month it said its controls for preparing financial reports were inadequate, though Corillian has said it is still moving forward with the acquisition.
In its second-quarter earnings report, InteliData reiterated it may not be able to remain in business if the deal fell through. Its stockholders are scheduled to meet Aug. 18 to vote on the deal.
"We are continuing to work with Corillian on a seamless transition," Alfred S. Dominick Jr., InteliData's chairman and chief executive, said in the earnings report. "We continue to believe that this transaction is in the best interests of our shareholders, our customers, and our employees."
FirstBank Offers Service via BancSource
FirstBank NW Corp., an $801 million-asset banking company in Clarkston, Wash., has begun offering an online payroll service from PayCycle Inc. of Palo Alto, Calif., to its small-business customers.
FirstBank is one of the first banks to offer the service through an arrangement sponsored by the Oregon Bankers Association's BancSource unit, which acts as a buyer for community banks in Oregon, Idaho, Utah, and Washington.
"As a small bank, we don't have the staffing internally to offer competitive products," Terence A. Otte, an executive vice president and the chief operations officer at FirstBank Northwest, said in an interview Friday.
PayCycle announced the agreement with BancSource on July 25, and FirstBank started offering its service shortly after.
Mr. Otte said FirstBank, which serves southeastern Washington, Oregon, and Idaho, competes against some of the industry's giants, including Bank of America Corp., U.S. Bancorp, Wells Fargo & Co., and Washington Mutual Inc., which offer similar payroll services.
The new service "fits really well with what we're trying to do" for small businesses, he said.
"Some business owners tell me they like the looks of the program, and the price of the program," Mr. Otte said, but he did not know whether any of them had enrolled.
Thomas Perrick, the president of BancSource, said it plans to offer the service to other community banks that belong to the trade group.
His unit can negotiate better deals with vendors by pooling the purchasing power of the group's hundreds of members, he said.
Community banks had been asking for an online payroll service to offer their small-business customers, even though it is not a traditional banking service, he said.
"Some business customers often look to their banks for all kinds of services," since banks have long handled customers' confidential information, Mr. Perrick said.
