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First Internet Bancorp Reports Record Quarterly Net Income

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October 22, 2015 4:22 PM EDT

Quarterly earnings per share of $0.51, up 2.0% from second quarter 2015 and up 82.1% from third quarter 2014

INDIANAPOLIS--(BUSINESS WIRE)-- First Internet Bancorp (the “Company”) (NASDAQ: INBK), the parent company of First Internet Bank (the “Bank”) (www.firstib.com), announced today financial and operational results for the third quarter 2015. Third quarter net income was a record $2.32 million and diluted earnings per share were $0.51. This compares with second quarter net income of $2.27 million and diluted earnings per share of $0.50 and third quarter 2014 net income of $1.28 million and diluted earnings per share of $0.28.

David Becker, Chairman, President and Chief Executive Officer, commented, “To produce six consecutive quarters of earnings growth requires a commitment throughout the organization to execute our growth strategy. Our diverse platform of loan origination capabilities and revenue sources has allowed us to produce this consistent earnings growth and mitigate risk. Nationwide platforms, such as single tenant lease financing and consumer lending, provide geographic diversity in asset classes with historically strong credit performance. Our mortgage unit, a direct-to-consumer model, also originates loans in all 50 states, with the vast majority consisting of conforming loans sold into the secondary market. ‘High touch’ lending areas involving greater complexity, such as commercial and industrial as well as commercial real estate, are conducted locally with our lenders in close contact with the customers they serve.

“As a result, we have been able to generate significant organic growth as we prudently manage risk and asset quality. Net interest income continues to grow as we attract more customers to the Bank. What’s more, nearly half of the commercial loan balances we added during the quarter funded in September. We expect these loans to have an even greater impact on interest income in future periods.”

Highlights for the third quarter 2015 included:

  • Diluted earnings per share of $0.51, increasing $0.01, or 2.0%, compared to the linked quarter and $0.23, or 82.1%, compared to the third quarter 2014
  • Solid quarterly performance
    • Return on average assets of 0.82%
    • Return on average shareholders’ equity of 9.14%
    • Return on average tangible common equity of 9.58%
  • Total loan growth of $62.3 million, or 7.7%, compared to June 30, 2015 and $180.6 million, or 26.0%, compared to September 30, 2014
  • Continued growth in net interest income, increasing $0.3 million, or 3.5%, compared to the linked quarter and $2.2 million, or 38.2%, compared to the third quarter 2014
  • Net interest margin (“NIM”) of 2.84% compared to 2.87% for the linked quarter and 2.68% for the third quarter 2014
  • Solid capital levels supporting continued loan growth
    • Tangible common equity to tangible assets of 8.46%
    • Common equity tier 1 capital ratio of 10.60%
    • Tier 1 capital ratio of 10.60%
    • Total risk-based capital ratio of 11.75%
  • Strong asset quality
    • Nonperforming loans to total loans receivable totaled 0.02% as of September 30, 2015
    • Net recoveries to average loans receivable of 0.07% were recognized during the third quarter

Net Interest Income and Net Interest Margin

Net interest income for the third quarter was $7.8 million compared to $7.6 million for the second quarter and $5.7 million for the third quarter 2014. Total interest income for the third quarter was $10.5 million, increasing $0.4 million, or 4.0%, compared to the second quarter and $2.6 million, or 32.6%, compared to the third quarter 2014. The increase in total interest income compared to the linked quarter was driven by a $48.6 million, or 6.2%, increase in average loans receivable and a $9.8 million, or 5.4%, increase in average investment balances, partially offset by a decline in average loans held-for-sale balances of $8.9 million, or 23.2%. A decline of 13 bps in the yield earned on the loan portfolio from 4.44% in the second quarter to 4.31% in the third quarter was due primarily to lower prepayment fees related to commercial real estate loans as well as accelerated premium and deferred fee amortization in the residential mortgage and consumer loan portfolios. The yield earned on the investment portfolio during the third quarter rose 9 bps to 2.30% from 2.21% for the linked quarter.

Total interest expense for the third quarter was $2.7 million, increasing $0.1 million, or 5.4%, compared to the second quarter and $0.4 million, or 18.6%, compared to the third quarter 2014. Average interest-bearing deposit balances increased $32.2 million, or 3.9%, compared to the linked quarter with the related cost of funds increasing 1 bp from 1.04% in the second quarter to 1.05% in the third quarter. During the third quarter, $15.0 million of short-term Federal Home Loan Bank advances were converted to long-term funding as the Company took advantage of attractive long-term fixed interest rates, which negatively impacted interest expense during the quarter but are expected to provide a longer term benefit in a rising interest rate environment. The cost of funds related to Federal Home Loan Bank advances increased 1 bp from 1.02% in the second quarter to 1.03% in the third quarter.

Net interest margin was 2.84% for the third quarter compared to 2.87% for the second quarter and 2.68% for the third quarter 2014.

Noninterest Income

Noninterest income for the third quarter was $2.4 million compared to $2.5 million for the second quarter and $1.9 million for the third quarter 2014. The decrease of $0.1 million, or 4.1%, compared to the linked quarter was driven by a decline of $0.1 million, or 5.4%, in mortgage banking revenue resulting primarily from lower origination volumes, partially offset by higher gain on sale margins.

Noninterest Expense

Noninterest expense for the third quarter was $6.2 million compared to $6.3 million for the second quarter and $5.8 million for the third quarter 2014. The decrease of $0.1 million, or 1.9%, compared to the linked quarter was due to lower salaries and employee benefits and loan expenses, partially offset by higher marketing expenses and other expenses. The decline of $0.3 million in salaries and employee benefits compared to the linked quarter was due to costs associated with staffing-related changes recognized in the second quarter and the expense savings related to these changes.

Income Taxes

Income tax expense was $1.2 million for the third quarter, resulting in an effective tax rate of 34.6%, compared to $1.2 million and an effective tax rate of 33.7% for the linked quarter and $0.7 million and an effective tax rate of 34.0% for the third quarter 2014.

Loans and Credit Quality

Total loans as of September 30, 2015 were $876.6 million, increasing $62.3 million, or 7.7%, compared to June 30, 2015 and $180.6 million, or 26.0%, compared to September 30, 2014. Total commercial loan balances were $508.7 million as of September 30, 2015, increasing $59.8 million, or 13.3%, compared to June 30, 2015 and $200.7 million, or 65.2%, compared to September 30, 2014. Continued strong production in single tenant lease financing balances contributed significantly to the growth as balances increased $49.3 million, or 17.6%, compared to the second quarter and $163.4 million, or 98.6%, compared to the third quarter 2014. Construction loan originations were also strong during the third quarter as balances increased $10.0 million, or 49.8%, compared to the second quarter and $12.3 million, or 68.4%, compared to the third quarter 2014. Commercial and industrial and owner-occupied commercial real estate production remained solid as balances increased $3.2 million on a combined basis, or 2.5%, compared to June 30, 2015 and $28.1 million, or 27.1%, compared to September 30, 2014. Also contributing to growth during the third quarter was continued production in consumer lending as balances for trailers and recreational vehicles increased $3.1 million on a combined basis, or 3.1%, compared to June 30, 2015 and $6.9 million, or 7.1%, compared to September 30, 2014.

Credit quality continued to remain strong as nonperforming loans to total loans receivable were 0.02% as of September 30, 2015, consistent with the prior quarter and down 4 bps from 0.06% as of September 30, 2014. Additionally, nonperforming assets to total assets declined to 0.41% as of September 30, 2015 from 0.43% as of June 30, 2015 and 0.55% as of September 30, 2014. The allowance for loan losses was $7.7 million as of September 30, 2015 compared to $7.1 million as of June 30, 2015 and $5.5 million as of September 30, 2014. The allowance as a percentage of total nonperforming loans was 3,723.8% as of September 30, 2015 compared to 3,762.2% as of June 30, 2015 and 1,366.0% as of September 30, 2014. The allowance as a percentage of total loans receivable increased to 0.88% as of September 30, 2015 compared to 0.87% as of June 30, 2015 and 0.79% as of September 30, 2014.

Net recoveries of $0.1 million were recognized during the third quarter, resulting in net recoveries to average loans of 0.07% compared to 0.20% for the second quarter and 0.27% for the third quarter 2014.

Capital

During the third quarter, total shareholders’ equity increased $3.0 million, due primarily to net income earned during the quarter and the change in the unrealized gain/loss related to the investment portfolio, partially offset by declared dividends. As of September 30, 2015, the Company’s common equity tier 1, tier 1 and total risk-based capital ratios declined to 10.60%, 10.60% and 11.75% from 11.12%, 11.12% and 12.28% as of June 30, 2015, respectively, due to an increase in risk-weighted assets resulting primarily from commercial loan growth for the quarter. Tangible common equity to tangible assets declined 20 bps during the third quarter to 8.46% due primarily to strong balance sheet growth. Tangible book value per share increased to $21.90 as of September 30, 2015 from $21.23 as of June 30, 2015.

Subsequent to September 30, 2015, the Company issued $10.0 million in subordinated notes (the “Notes”) with an institutional accredited investor through a private placement offering. The Notes were issued on October 15, 2015 and bear a fixed rate of interest of 6.4375% per year, payable quarterly, and mature on October 1, 2025. The Notes include a right of prepayment, without penalty, on any interest payment date on or after the fifth anniversary of the closing date. The Notes have been structured to qualify as Tier 2 capital under regulatory guidelines. The Company intends to use the proceeds from the placement for general corporate purposes, including the contribution of capital to the Bank to support continued organic growth.

About First Internet Bancorp

First Internet Bancorp is the parent company of First Internet Bank, which opened for business in 1999 as the nation’s first state-chartered, FDIC-insured institution to operate solely via the Internet. With customers in all 50 states, First Internet Bank offers consumers services including checking, savings, money market, certificates of deposit and IRA accounts as well as consumer loans, residential mortgages, residential construction loans and home equity products. For commercial clients, it provides commercial real estate loans, commercial and industrial loans and treasury management services. First Internet Bank has been recognized as one of the “Best Banks to Work For” by American Banker Magazine as well as a “Top Workplace” by The Indianapolis Star. Additional information about the Company is available at www.firstinternetbancorp.com and additional information about the Bank, including its products and services, is available at www.firstib.com.

Safe Harbor Statement

This press release may contain forward-looking statements with respect to the financial condition, results of operations, plans, objectives, future performance or business of the Company. Forward-looking statements are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. Forward-looking statements are not a guarantee of future performance or results, are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the information in the forward-looking statements. Factors that may cause such differences include: failures of or interruptions in the communications and information systems on which we rely to conduct our business; our plans to grow our commercial real estate and commercial and industrial loan portfolios; competition with national, regional and community financial institutions; the loss of any key members of senior management; fluctuations in interest rates; general economic conditions; risks relating to the regulation of financial institutions; and other factors identified in reports we file with the SEC. All statements in this press release, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically tangible common equity, tangible assets, tangible book value per common share, return on average tangible common equity and tangible common equity to tangible assets are used by the Company’s management to measure the strength of its capital and its ability to generate earnings on tangible capital invested by its shareholders. Although management believes these non-GAAP measures provide a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the table at the end of this release under the caption “Reconciliation of Non-GAAP Financial Measures.”

         

First Internet Bancorp

Summary Financial Information (unaudited)

Amounts in thousands, except per share data

     
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30, September 30,
2015 2015 2014 2015 2014
 
Net income $ 2,323 $ 2,265 $ 1,282 $ 6,651 $ 2,859
 
Per share and share information
Earnings per share - basic $ 0.51 $ 0.50 $ 0.29 $ 1.47 $ 0.64
Earnings per share - diluted 0.51 0.50 0.28 1.46 0.63
Dividends declared per share 0.06 0.06 0.06 0.18 0.18
Book value per common share 22.95 22.28 21.35 22.95 21.35
Tangible book value per common share 21.90 21.23 20.29 21.90 20.29
Common shares outstanding 4,484,513 4,484,513 4,439,575 4,484,513 4,439,575
Average common shares outstanding:
Basic 4,532,360 4,529,823 4,497,762 4,526,377 4,496,228
Diluted 4,574,455 4,550,034 4,511,291 4,549,447 4,505,801
Performance ratios
Return on average assets 0.82 % 0.84 % 0.59 % 0.83 % 0.45 %
Return on average shareholders' equity 9.14 % 9.15 % 5.36 % 8.95 % 4.11 %
Return on average tangible common equity 9.58 % 9.60 % 5.64 % 9.39 % 4.32 %
Net interest margin 2.84 % 2.87 % 2.68 % 2.85 % 2.60 %
Capital ratios 1
Tangible common equity to tangible assets 8.46 % 8.66 % 9.77 % 8.46 % 9.77 %
Tier 1 leverage ratio 8.81 % 8.93 % 10.52 % 8.81 % 10.52 %
Common equity tier 1 capital ratio 10.60 % 11.12 % 13.22 % 10.60 % 13.22 %
Tier 1 capital ratio 10.60 % 11.12 % 13.22 % 10.60 % 13.22 %
Total risk-based capital ratio 11.75 % 12.28 % 14.45 % 11.75 % 14.45 %
Asset quality
Nonperforming loans $ 206 $ 188 $ 400 $ 206 $ 400
Nonperforming assets 4,724 4,765 5,067 4,724 5,067
Nonperforming loans to loans receivable 0.02 % 0.02 % 0.06 % 0.02 % 0.06 %
Nonperforming assets to total assets 0.41 % 0.43 % 0.55 % 0.41 % 0.55 %
Allowance for loan losses to:
Loans receivable 0.88 % 0.87 % 0.79 % 0.88 % 0.79 %
Nonperforming loans 3,723.8 % 3,762.2 % 1,366.0 % 3,723.8 % 1,366.0 %
Net recoveries to average
loans receivable (0.07 %) (0.20 %) (0.27 %) (0.11 %) (0.02 %)
Average balance sheet information
Loans receivable $ 835,938 $ 787,339 $ 632,403 $ 789,908 $ 570,751
Securities available-for-sale 191,634 181,864 139,569 173,083 161,861
Other earning assets 37,638 49,001 38,964 42,746 63,403
Total interest-earning assets 1,094,622 1,056,485 839,183 1,039,898 818,651
Total assets 1,123,741 1,085,118 868,361 1,068,705 849,932
Noninterest-bearing deposits 23,267 20,697 21,960 22,080 19,661
Interest-bearing deposits 854,889 822,735 718,100 813,521 702,383
Total deposits 878,156 843,432 740,060 835,601 722,044
Shareholders' equity 100,885 99,333 94,840 99,365 93,110
 
1 Regulatory capital ratios are preliminary pending filing of the Company's regulatory reports
 
     
First Internet Bancorp
Condensed Consolidated Balance Sheets (unaudited)
Amounts in thousands            
   
September 30, June 30, September 30,
2015 2015 2014
 
Assets
Cash and due from banks $ 1,460 $ 1,713 $ 1,137
Interest-bearing demand deposits 19,185 28,889 38,470
Interest-bearing time deposits 1,250 1,250 2,000
Securities available-for-sale, at fair value 202,565 190,767 128,203
Loans held-for-sale 27,773 29,872 27,547
Loans receivable 876,578 814,243 695,929
Allowance for loan losses   (7,671 )   (7,073 )   (5,464 )
Net loans receivable 868,907 807,170 690,465
Accrued interest receivable 3,581 3,550 2,803
Federal Home Loan Bank of Indianapolis stock 6,946 6,946 2,943
Cash surrender value of bank-owned life insurance 12,625 12,524 12,226
Premises and equipment, net 8,508 8,120 7,075
Goodwill 4,687 4,687 4,687
Other real estate owned 4,488 4,488 4,545
Accrued income and other assets   4,195     4,669     4,782  
Total assets $ 1,166,170   $ 1,104,645   $ 926,883  
 
Liabilities
Noninterest-bearing deposits $ 22,338 $ 20,994 $ 20,359
Interest-bearing deposits   877,412     835,509     717,611  
Total deposits 899,750 856,503 737,970
Advances from Federal Home Loan Bank 150,946 140,935 86,871
Subordinated debt 2,937 2,915 2,852
Accrued interest payable 112 108 82
Accrued expenses and other liabilities   9,513     4,276     4,334  
Total liabilities   1,063,258     1,004,737     832,109  
Shareholders' equity
Voting common stock 72,409 72,218 71,705
Retained earnings 30,977 28,928 23,951
Accumulated other comprehensive loss   (474 )   (1,238 )   (882 )
Total shareholders' equity   102,912     99,908     94,774  
Total liabilities and shareholders' equity $ 1,166,170   $ 1,104,645   $ 926,883  
 
         
First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited)
Amounts in thousands, except per share data
     
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30, September 30,
2015 2015 2014 2015 2014
Interest income
Loans $ 9,326 $ 9,043 $ 7,218 $ 26,759 $ 19,918
Securities - taxable 994 945 684 2,661 2,421
Securities - non-taxable 116 59 - 175 58
Other earning assets   100     83     45     258     195  
Total interest income   10,536     10,130     7,947     29,853     22,592  
Interest expense
Deposits 2,260 2,137 1,958 6,350 5,740
Other borrowed funds   437     421     316     1,318     940  
Total interest expense   2,697     2,558     2,274     7,668     6,680  
Net interest income 7,839 7,572 5,673 22,185 15,912
Provision (credit) for loan losses 454 304 (112 ) 1,200 (38 )
Net interest income after provision          
(credit) for loan losses   7,385     7,268     5,785     20,985     15,950  
Noninterest income
Service charges and fees 202 193 179 571 533
Mortgage banking activities 2,095 2,214 1,638 7,195 3,767
Gain on sale of securities - - 54 - 538
Loss on asset disposals (27 ) (33 ) (28 ) (74 ) (59 )
Other   104     102     100     306     297  
Total noninterest income   2,374     2,476     1,943     7,998     5,076  
Noninterest expense
Salaries and employee benefits 3,446 3,787 3,264 10,811 9,219
Marketing, advertising and promotion 544 334 381 1,330 1,148
Consulting and professional fees 544 564 409 1,700 1,307
Data processing 248 233 245 729 718
Loan expenses 97 181 208 459 458
Premises and equipment 676 691 742 2,009 2,204
Deposit insurance premium 163 160 155 473 437
Other   489     377     381     1,280     1,292  
Total noninterest expense   6,207     6,327     5,785     18,791     16,783  
Income before income taxes 3,552 3,417 1,943 10,192 4,243
Income tax provision   1,229     1,152     661     3,541     1,384  
Net income $ 2,323   $ 2,265   $ 1,282   $ 6,651   $ 2,859  
 
Per common share data
Earnings per share - basic $ 0.51 $ 0.50 $ 0.29 $ 1.47 $ 0.64
Earnings per share - diluted $ 0.51 $ 0.50 $ 0.28 $ 1.46 $ 0.63
Dividends declared per share $ 0.06 $ 0.06 $ 0.06 $ 0.18 $ 0.18
 
All periods presented have been reclassified to conform to the current period classification.
 
                 
First Internet Bancorp
Average Balances and Rates (unaudited)
Amounts in thousands
     
Three Months Ended
September 30, 2015 June 30, 2015 September 30, 2014
Average Interest / Yield / Average Interest / Yield / Average Interest / Yield /
Balance Dividends Cost Balance Dividends Cost Balance Dividends Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale $ 865,350 $ 9,326 4.28 % $ 825,620 $ 9,043 4.39 % $ 660,650 $ 7,218 4.33 %
Securities - taxable 176,722 994 2.23 % 174,057 945 2.18 % 139,569 684 1.94 %
Securities - non-taxable 14,912 116 3.09 % 7,807 59 3.03 % - - 0.00 %
Other earning assets   37,638     100 1.05 %   49,001     83 0.68 %   38,964     45 0.46 %
Total interest-earning assets 1,094,622 10,536 3.82 % 1,056,485 10,130 3.85 % 839,183 7,947 3.76 %
 
Allowance for loan losses (7,223 ) (6,545 ) (5,248 )
Noninterest earning-assets   36,342     35,178     34,426  
Total assets $ 1,123,741   $ 1,085,118   $ 868,361  
 
Liabilities
Interest-bearing liabilities
Regular savings accounts $ 25,500 $ 38 0.59 % $ 23,873 $ 34 0.57 % $ 16,932 $ 25 0.59 %
Interest-bearing demand deposits 75,965 105 0.55 % 76,095 104 0.55 % 69,635 96 0.55 %
Money market accounts 297,545 533 0.71 % 282,015 503 0.72 % 272,697 501 0.73 %
Certificates and brokered deposits   455,879     1,584 1.38 %   440,752     1,496 1.36 %   358,836     1,336 1.48 %
Total interest-bearing deposits 854,889 2,260 1.05 % 822,735 2,137 1.04 % 718,100 1,958 1.08 %
Other borrowed funds   139,731     437 1.24 %   137,421     421 1.23 %   29,748     316 4.21 %
Total interest-bearing liabilities 994,620 2,697 1.08 % 960,156 2,558 1.07 % 747,848 2,274 1.21 %
 
Noninterest-bearing deposits 23,267 20,697 21,960
Other noninterest-bearing liabilities   4,969     4,932     3,713  
Total liabilities 1,022,856 985,785 773,521
 
Shareholders' equity   100,885     99,333     94,840  
Total liabilities and shareholders' equity $ 1,123,741   $ 1,085,118   $ 868,361  
     
Net interest income $ 7,839 $ 7,572 $ 5,673
 
Interest rate spread 2.74 % 2.78 % 2.55 %
Net interest margin 2.84 % 2.87 % 2.68 %
 
           
First Internet Bancorp
Average Balances and Rates (unaudited)
Amounts in thousands
     
Nine Months Ended
September 30, 2015 September 30, 2014
Average Interest / Yield / Average Interest / Yield /
Balance Dividends Cost Balance Dividends Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale $ 824,069 $ 26,759 4.34 % $ 593,387 $ 19,918 4.49 %
Securities - taxable 165,456 2,661 2.15 % 159,474 2,421 2.03 %
Securities - non-taxable 7,627 175 3.07 % 2,387 58 3.25 %
Other earning assets   42,746     258 0.81 %   63,403     195 0.41 %
Total interest-earning assets 1,039,898 29,853 3.84 % 818,651 22,592 3.69 %
 
Allowance for loan losses (6,555 ) (5,373 )
Noninterest earning-assets   35,362     36,654  
Total assets $ 1,068,705   $ 849,932  
 
Liabilities
Interest-bearing liabilities
Regular savings accounts $ 23,836 $ 104 0.58 % $ 18,160 $ 81 0.60 %
Interest-bearing demand deposits 75,824 311 0.55 % 70,831 290 0.55 %
Money market accounts 284,709 1,528 0.72 % 267,672 1,462 0.73 %
Certificates and brokered deposits   429,152     4,407 1.37 %   345,720     3,907 1.51 %
Total interest-bearing deposits 813,521 6,350 1.04 % 702,383 5,740 1.09 %
Other borrowed funds   129,089     1,318 1.37 %   29,831     940 4.21 %
Total interest-bearing liabilities 942,610 7,668 1.09 % 732,214 6,680 1.22 %
 
Noninterest-bearing deposits 22,080 19,661
Other noninterest-bearing liabilities   4,650     4,947  
Total liabilities 969,340 756,822
 
Shareholders' equity   99,365     93,110  
Total liabilities and shareholders' equity $ 1,068,705   $ 849,932  
   
Net interest income $ 22,185 $ 15,912
 
Interest rate spread 2.75 % 2.47 %
Net interest margin 2.85 % 2.60 %
 
           
First Internet Bancorp
Loans and Deposits (unaudited)
Amounts in thousands
     
September 30, 2015 June 30, 2015 September 30, 2014
Amount Percent Amount Percent Amount Percent
Commercial loans
Commercial and industrial $ 89,762 10.2 % $ 89,316 11.0 % $ 72,099 10.4 %
Owner-occupied commercial real estate 42,117 4.8 % 39,405 4.8 % 31,637 4.5 %
Investor commercial real estate 17,483 2.0 % 20,163 2.5 % 20,567 3.0 %
Construction 30,196 3.4 % 20,155 2.5 % 17,936 2.6 %
Single tenant lease financing   329,149 37.6 %   279,891 34.4 %   165,738 23.8 %
Total commercial loans 508,707 58.0 % 448,930 55.2 % 307,977 44.3 %
 
Consumer loans
Residential mortgage 209,507 23.9 % 207,703 25.5 % 220,499 31.7 %
Home equity 47,319 5.4 % 49,662 6.1 % 61,799 8.9 %
Trailers 66,749 7.6 % 66,080 8.1 % 65,085 9.3 %
Recreational vehicles 36,800 4.2 % 34,366 4.2 % 31,591 4.5 %
Other consumer loans   2,638 0.3 %   2,711 0.3 %   3,398 0.5 %
Total consumer loans 363,013 41.4 % 360,522 44.2 % 382,372 54.9 %
Net deferred loan fees, premiums and discounts   4,858 0.6 %   4,791 0.6 %   5,580 0.8 %
Total loans receivable $ 876,578 100.0 % $ 814,243 100.0 % $ 695,929 100.0 %
 
 
September 30, 2015 June 30, 2015 September 30, 2014
Amount Percent Amount Percent Amount Percent
Deposits
Noninterest-bearing deposits $ 22,338 2.5 % $ 20,994 2.5 % $ 20,359 2.8 %
Interest-bearing demand deposits 79,031 8.8 % 77,822 9.1 % 71,762 9.7 %
Regular savings accounts 26,316 2.9 % 24,405 2.8 % 17,503 2.4 %
Money market accounts 314,105 34.9 % 278,791 32.5 % 275,901 37.4 %
Certificates of deposits 444,396 49.4 % 440,936 51.5 % 334,636 45.3 %
Brokered deposits   13,564 1.5 %   13,555 1.6 %   17,809 2.4 %
Total deposits $ 899,750 100.0 % $ 856,503 100.0 % $ 737,970 100.0 %
 
         
First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Amounts in thousands, except per share data
 
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30, September 30,
2015 2015 2014 2015 2014
Total equity - GAAP $ 102,912 $ 99,908 $ 94,774 $ 102,912 $ 94,774
Adjustments:
Goodwill   (4,687 )   (4,687 )   (4,687 )   (4,687 )   (4,687 )
Tangible common equity $ 98,225   $ 95,221   $ 90,087   $ 98,225   $ 90,087  
 
Total assets - GAAP $ 1,166,170 $ 1,104,645 $ 926,883 $ 1,166,170 $ 926,883
Adjustments:
Goodwill   (4,687 )   (4,687 )   (4,687 )   (4,687 )   (4,687 )
Tangible assets $ 1,161,483   $ 1,099,958   $ 922,196   $ 1,161,483   $ 922,196  
 
Common shares outstanding 4,484,513 4,484,513 4,439,575 4,484,513 4,439,575
 
Book value per common share $ 22.95 $ 22.28 $ 21.35 $ 22.95 $ 21.35
Effect of goodwill   (1.05 )   (1.05 )   (1.06 )   (1.05 )   (1.06 )
Tangible book value per common share $ 21.90   $ 21.23   $ 20.29   $ 21.90   $ 20.29  
 
Total shareholders' equity to assets ratio 8.82 % 9.04 % 10.23 % 8.82 % 10.23 %
Effect of goodwill   (0.36 %)   (0.38 %)   (0.46 %)   (0.36 %)   (0.46 %)
Tangible common equity to tangible assets ratio   8.46 %   8.66 %   9.77 %   8.46 %   9.77 %
 
Total average equity - GAAP $ 100,885 $ 99,333 $ 94,840 $ 99,365 $ 93,110
Adjustments:
Average goodwill   (4,687 )   (4,687 )   (4,687 )   (4,687 )   (4,687 )
Average tangible common equity $ 96,198   $ 94,646   $ 90,153   $ 94,678   $ 88,423  
 
Return on average shareholders' equity 9.14 % 9.15 % 5.36 % 8.95 % 4.11 %
Effect of goodwill   0.44 %   0.45 %   0.28 %   0.44 %   0.21 %
Return on average tangible common equity   9.58 %   9.60 %   5.64 %   9.39 %   4.32 %

First Internet Bancorp
Investors/Analysts:
Paula Deemer, 317-428-4628
[email protected]
or
Media:
Nicole Lorch, 317-532-7906
Senior Vice President, Retail Banking
[email protected]

Source: First Internet Bancorp


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