First Internet Bancorp (INBK) Tops Q2 EPS by 7c, Revenues Beat

First Internet Bancorp (NASDAQ: INBK) reported Q2 EPS of $0.40, $0.07 better than the analyst estimate of $0.33. Revenue for the quarter came in at $19.4 million versus the consensus estimate of $15.89 million.

Highlights for the second quarter include:

• Total revenue of $19.4 million, net income of $3.9 million and diluted earnings per share of $0.40
• Cost of interest-bearing deposits decreased 30 bps from the first quarter
• Accelerated SBA platform build-out through further sales and operations hires
• As of July 17, 2020, loan balances of $365.8 million, or 12.6% of total loans, remained on deferral programs, down from a peak of $647.2 million, or 22.4%, in late May

“Throughout the COVID-19 pandemic, we have focused on our customers whose families and businesses have been impacted by the virus,” said David Becker, Chairman, President and Chief Executive Officer. “For many borrowers, we were able to provide peace of mind in uncertain times by deferring loan payments for 60-90 days. And, because we have always served our nationwide customer base remotely, we were able to assist our customers when they needed us most, without missing a beat, even as we worked to transition our associates to telework. We have already seen a significant reduction in deferrals, and all of our borrowers coming off deferrals have resumed normal payment schedules.

“In the second quarter, our overall credit quality remained solid. Our direct-to-consumer mortgage business produced another quarter of strong results and has a healthy pipeline as we begin the third quarter. We continue to expand our national SBA platform, adding to our already strong and talented team of professionals, and we are excited about the near-term outlook for this government-guaranteed lending business.

“In addition, our efforts on the deposit side of our balance sheet continued to produce results as we shifted the mix of our deposits while reducing interest expense. We believe that we still have significant opportunities to reprice our deposits lower while maintaining relatively stable asset yields, and these bode well for our net interest income and net interest margin in future periods.

“We are well-capitalized and have the financial strength to serve our clients during this public health crisis. I would like to thank the entire First Internet team for their resilience and hard work during this challenging time,” Becker concluded.

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

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