First Internet Bancorp (INBK) Tops Q3 EPS by 2c, Revenues Beat

First Internet Bancorp (NASDAQ: INBK) reported Q3 EPS of $0.63, $0.02 better than the analyst estimate of $0.61. Revenue for the quarter came in at $20.8 million versus the consensus estimate of $16.78 million.

Highlights for the third quarter include:

• Diluted earnings per share of $0.63, an increase of 5.0% from the second quarter
• Record quarterly net income of $6.3 million, an increase of 3.3% from the second quarter
• Total revenue of $20.8 million, a 6.4% increase from the second quarter driven by increased mortgage banking activity
• Completed the stock repurchase program purchasing 274,658 shares during the quarter at an average price of $20.57 per share

David Becker, Chairman, President and Chief Executive Officer, commented, “We are very pleased with our results in the third quarter, driven by continued revenue growth, well-managed expenses and strong balance sheet management. These balance sheet strategies, which included the sale of lower-yielding loans, reflect our disciplined approach to capital deployment. The loan sales enabled us to enhance our profitability through additional fee revenue, and support our loan origination teams as they redeployed capital into higher-yielding new production. Additionally, our direct-to-consumer mortgage business had a stellar quarter, posting a 62% increase in revenue compared to the second quarter.

“We continue to make progress with our expansion into small business banking with attractive opportunities on both sides of our balance sheet. During the third quarter, the pipeline of new lending opportunities grew again and our efforts on the deposit side continued to produce results as business money market and checking accounts increased over $41 million. We recently appointed new leadership to run our expanding national SBA program and we are also excited that our previously announced acquisition of the small business lending division of First Colorado National Bank is expected to close next month.

“While certain factors weighed on our net interest margin during the quarter, we expect to benefit from lower deposit costs in future quarters, particularly as higher cost CDs continue to mature and we work to build on our success in generating small business deposits.”

Mr. Becker concluded, “Our continued ability to win new business and grow existing relationships is the direct result of our employees’ dedication to the success of our customers and our Company. Our high level of employee engagement has contributed to our unique culture, which was recognized again by American Banker, naming us one of the “Best Banks to Work For” for the seventh consecutive year. As always, I would like to thank the entire First Internet team who have worked very hard to deliver our strong results and whose commitment and efforts remain the keys to our continued success.”

For earnings history and earnings-related data on First Internet Bancorp (INBK) click here.

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