First Internet Bancorp Reports Earnings Up 18% Year-over-Year,
7% over Prior Quarter
Record net income of $2.4 million, quarterly earnings per share of $0.53
Fishers, Indiana, April 21, 2016 - First Internet Bancorp (the “Company”) (NASDAQ: INBK), the parent company of First Internet Bank (www.firstib.com), announced today financial and operational results for the first quarter 2016.
David Becker, Chairman, President and Chief Executive Officer, commented, “Our teams continued to execute our growth strategy, with both loans and deposits surpassing the billion dollar mark. With strong contributions from our lending groups, we increased our loan portfolio 9.1% during the first quarter.
“As a result of our growth initiative, net interest income rose 34.9% over the first quarter 2015 and 6.7% over the linked quarter. I am proud of the effort our teams put forth to deliver another quarter of record net income.”
First quarter net income was a record $2.4 million and diluted earnings per share were $0.53. This compares with fourth quarter 2015 net income of $2.3 million and diluted earnings per share of $0.50 and first quarter 2015 net income of $2.1 million and diluted earnings per share of $0.46.
Highlights for the first quarter 2016 included:
| |
| ▪ | Diluted earnings per share of $0.53, increasing $0.03, or 6.0%, compared to the linked quarter and increasing $0.07, or 15.2%, compared to the first quarter 2015 |
| |
| ▪ | Solid quarterly performance |
| |
| • | Return on average assets of 0.72% |
| |
| • | Return on average shareholders’ equity of 9.20% |
| |
| • | Return on average tangible common equity of 9.63% |
| |
| ▪ | Total loan growth of $86.8 million, or 9.1%, compared to December 31, 2015 and $273.0 million, or 35.6%, compared to March 31, 2015 |
| |
| ▪ | Continued growth in net interest income, increasing $0.6 million, or 6.7%, compared to the linked quarter and $2.4 million, or 34.9%, compared to the first quarter 2015 |
| |
| ▪ | Net interest margin of 2.78% compared to 2.85% for the linked quarter and 2.84% for the first quarter 2015 |
| |
| ▪ | Capital levels continue to support loan and balance sheet growth |
| |
| • | Tangible common equity to tangible assets of 6.77% |
| |
| • | Tier 1 leverage ratio of 7.65% |
| |
| • | Common equity tier 1 capital ratio of 9.38% |
| |
| • | Tier 1 capital ratio of 9.38% |
| |
| • | Total risk-based capital ratio of 11.38% |
| |
| • | Nonperforming loans to total loans receivable totaled 0.04% as of March 31, 2016 |
| |
| • | Nonperforming assets to total assets totaled 0.32% as of March 31, 2016 |
Net Interest Income and Net Interest Margin
Net interest income for the first quarter was $9.1 million compared to $8.6 million for the fourth quarter 2015 and $6.8 million for the first quarter 2015. Total interest income for the first quarter was $12.7 million, increasing $1.1 million, or 9.5%, compared to the fourth quarter 2015 and $3.5 million, or 38.2%, compared to the first quarter 2015. The increase in total interest income compared to the linked quarter was driven by a $79.4 million, or 8.7%, increase in average loans receivable and a $17.2 million, or 8.3%, increase in average investment balances. Additionally, during the first quarter, the yield earned on the loan portfolio increased 7 bps to 4.43% from 4.36% for the fourth quarter 2015 and the yield earned on the investment portfolio increased 8 bps to 2.38% from 2.30% for the fourth quarter 2015.
Total interest expense for the first quarter was $3.6 million, increasing $0.5 million, or 17.4%, compared to the fourth quarter 2015 and $1.1 million, or 47.2%, compared to the first quarter 2015. Average interest-bearing deposit balances increased $117.1 million, or 12.8%, compared to the linked quarter with the related cost of funds increasing 8 bps from 1.04% in the fourth quarter 2015 to 1.12% in the first quarter. The average interest-bearing deposit balance growth was driven primarily by an increase in average certificates of deposit balances of $109.0 million, or 24.0%, compared to the linked quarter. During the first quarter, the Company produced over $255 million of new CD balances, which significantly enhanced liquidity and asset/liability management. Most of the new CDs were in longer duration products as the weighted average term of the new production was approximately 38 months. As a result, the cost of funds related to CDs increased 10 bps during the quarter to 1.43% from 1.33% for the fourth quarter 2015.
Net interest margin was 2.78% for the first quarter compared to 2.85% for the fourth quarter 2015 and 2.84% for the first quarter 2015. As deposit inflows outpaced loan growth and investment purchases during the quarter, the Company carried excess cash balances which were estimated to negatively impact net interest margin by 7 bps.
Noninterest Income
Noninterest income for the first quarter was $2.5 million compared to $2.1 million for the fourth quarter 2015 and $3.1 million for the first quarter 2015. The increase of $0.4 million, or 18.5%, compared to the linked quarter was driven by an increase of $0.4 million, or 24.9%, in mortgage banking revenue resulting from higher origination volumes.
Noninterest Expense
Noninterest expense for the first quarter was $7.0 million compared to $6.5 million for the fourth quarter 2015 and $6.3 million for the first quarter 2015. The increase of $0.5 million, or 7.9%, compared to the linked quarter was due primarily to higher salaries and employee benefits expenses resulting from increased staffing, including seasoned operations, credit and lending personnel to assist in managing the Company’s strong balance sheet growth, and seasonal resets on payroll taxes, employee benefits and other compensation plans.
Income Taxes
Income tax expense was $1.3 million for the first quarter, resulting in an effective tax rate of 34.8%, compared to $1.2 million and an effective tax rate of 34.4% for the linked quarter and $1.2 million and an effective tax rate of 36.0% for the first quarter 2015.
Loans and Credit Quality
Total loans as of March 31, 2016 were $1.0 billion, increasing $86.8 million, or 9.1%, compared to December 31, 2015 and $273.0 million, or 35.6%, compared to March 31, 2015. Total commercial loan balances were $666.3 million as of March 31, 2016, increasing $83.4 million, or 14.3%, compared to December 31, 2015 and $271.4 million, or 68.7%, compared to March 31, 2015. Continued strong production in single tenant lease financing balances contributed significantly to the growth as balances increased $71.2 million, or 19.0%, compared to December 31, 2015 and $218.3 million, or 96.1%, compared to March 31, 2015. Commercial and industrial and owner-occupied commercial real estate production was solid as balances increased $7.0 million on a combined basis, or 4.8%, compared to December 31, 2015 and $31.1 million, or 25.4%, compared to March 31, 2015. Construction loan originations also continued to grow during the first quarter as balances increased $6.7 million, or 14.6%, compared to December 31, 2015 and $25.7 million, or 95.9%, compared to March 31, 2015.
Total consumer loan balances were $370.0 million as of March 31, 2016, increasing $3.8 million, or 1.0%, compared to December 31, 2015 and $2.0 million, or 0.5%, compared to March 31, 2015. During the first quarter, the Company began financing home improvement loans which drove the $7.9 million increase in other consumer loans. The borrower characteristics in the home improvement channel are similar to the high-FICO borrowers in the Company’s recreation vehicle and trailer portfolios. Additionally, recreational vehicle balances increased $2.6 million, or 6.8%, and trailer balances increased $2.5 million, or 3.7%, during the first quarter. Partially offsetting this growth were declines of $5.9 million, or 2.8%, in residential mortgages and $3.3 million, or 7.6%, in home equity loans.
Credit quality continued to remain strong as nonperforming loans to total loans receivable were 0.04% as of March 31, 2016, increasing 2 bps from the prior quarter and 1 bp from March 31, 2015. Nonperforming assets to total assets declined to 0.32% as of March 31, 2016 from 0.37% as of December 31, 2015 and 0.47% as of March 31, 2015. The allowance for loan losses was $9.2 million as of March 31, 2016 compared to $8.4 million as of December 31, 2015 and $6.4 million as of March 31, 2015. The allowance as a percentage of total nonperforming loans was 2,512.3% as of March 31, 2016 compared to 5,000.6% as of December 31, 2015 and 2,592.7% as of March 31, 2015. The allowance as a percentage of total loans receivable was 0.89% as of March 31, 2016 compared to 0.88% as of December 31, 2015 and 0.83% as of March 31, 2015.
Net charge-offs of $0.1 million were recognized during the first quarter, resulting in net charge-offs to average loans of 0.03%, which was consistent with the prior quarter and compared to net recoveries of 0.07% for the first quarter 2015. The provision for loan losses in the first quarter was $0.9 million compared to $0.7 million for the fourth quarter 2015 and $0.4 million for the first quarter 2015. The increase of $0.2 million, or 26.8%, compared to the linked quarter was primarily due to the continued strong commercial loan growth experienced in the first quarter.
Capital
During the first quarter, total shareholders’ equity increased $3.5 million, due primarily to net income earned during the quarter and by the change in the unrealized gain/loss related to the investment portfolio, partially offset by declared dividends. As of March 31, 2016, the Company’s tier 1 leverage, common equity tier 1, tier 1 and total risk-based capital ratios were 7.65%, 9.38%, 9.38% and 11.38% compared to 8.28%, 10.11%, 10.11% and 12.25% as of December 31, 2015, respectively. The decline in the tier 1 leverage ratio was due to an increase in average assets driven primarily by deposit growth during the quarter. The declines in the common equity tier 1, tier 1 and total risk-based capital ratios were due to an increase in risk-weighted assets resulting primarily from commercial loan growth for the quarter. Tangible common equity to tangible assets declined 111 bps during the first quarter to 6.77% due primarily to strong balance sheet growth. Tangible book value per share increased to $22.93 as of March 31, 2016 from $22.24 as of December 31, 2015 and $21.11 as of March, 2015.
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, a “Best Place to Work in Indiana” by a consortium of statewide resources, and 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; failure of 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 U.S. Securities and Exchange Commission. 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.”
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| | | |
| Contact Information: | | | |
| Investors/Analysts | | Media | |
| Paula Deemer | | Nicole Lorch | |
| (317) 428-4628 | | Senior Vice President, Retail Banking |
| investors@firstib.com | | (317) 532-7906 | |
| | | nlorch@firstib.com | |
|
| | | | | | | | | | | | |
| First Internet Bancorp | | | |
| Summary Financial Information (unaudited) | | |
| Amounts in thousands, except per share data | | | |
| | | Three Months Ended |
| | | March 31,
2016 | | December 31,
2015 | | March 31,
2015 |
| | | | | | | |
| Net income | | $ | 2,432 |
| | $ | 2,278 |
| | $ | 2,063 |
|
| | | | | | | |
| Per share and share information | | | | | | |
| Earnings per share - basic | | $ | 0.54 |
| | $ | 0.50 |
| | $ | 0.46 |
|
| Earnings per share - diluted | | 0.53 |
| | 0.50 |
| | 0.46 |
|
| Dividends declared per share | | 0.06 |
| | 0.06 |
| | 0.06 |
|
| Book value per common share | | 23.98 |
| | 23.28 |
| | 22.16 |
|
| Tangible book value per common share | | 22.93 |
| | 22.24 |
| | 21.11 |
|
| Common shares outstanding | | 4,497,284 |
| | 4,481,347 |
| | 4,484,513 |
|
| Average common shares outstanding: | | | | | | |
| Basic | | 4,541,728 |
| | 4,534,910 |
| | 4,516,776 |
|
| Diluted | | 4,575,555 |
| | 4,580,353 |
| | 4,523,246 |
|
| Performance ratios | | | | | | |
| Return on average assets | | 0.72 | % | | 0.74 | % | | 0.84 | % |
| Return on average shareholders' equity | | 9.20 | % | | 8.73 | % | | 8.55 | % |
| Return on average tangible common equity | | 9.63 | % | | 9.14 | % | | 8.98 | % |
| Net interest margin | | 2.78 | % | | 2.85 | % | | 2.84 | % |
Capital ratios 1 | | | | | | |
| Tangible common equity to tangible assets | | 6.77 | % | | 7.88 | % | | 9.18 | % |
| Tier 1 leverage ratio | | 7.65 | % | | 8.28 | % | | 9.52 | % |
| Common equity tier 1 capital ratio | | 9.38 | % | | 10.11 | % | | 11.99 | % |
| Tier 1 capital ratio | | 9.38 | % | | 10.11 | % | | 11.99 | % |
| Total risk-based capital ratio | | 11.38 | % | | 12.25 | % | | 13.18 | % |
| Asset quality | | | | | | |
| Nonperforming loans | | $ | 367 |
| | $ | 167 |
| | $ | 246 |
|
| Nonperforming assets | | 4,930 |
| | 4,740 |
| | 4,818 |
|
| Nonperforming loans to loans receivable | | 0.04 | % | | 0.02 | % | | 0.03 | % |
| Nonperforming assets to total assets | | 0.32 | % | | 0.37 | % | | 0.47 | % |
| Allowance for loan losses to: | | | | | | |
| Loans receivable | | 0.89 | % | | 0.88 | % | | 0.83 | % |
| Nonperforming loans | | 2,512.3 | % | | 5,000.6 | % | | 2,592.7 | % |
Net charge-offs (recoveries) to average loans receivable | | 0.03 | % | | 0.03 | % | | (0.07 | %) |
| Average balance sheet information | | | | | | |
| Loans receivable | | $ | 991,614 |
| | $ | 912,233 |
| | $ | 745,454 |
|
| Securities available-for-sale | | 225,077 |
| | 207,848 |
| | 145,241 |
|
| Other earning assets | | 78,291 |
| | 41,274 |
| | 41,643 |
|
| Total interest-earning assets | | 1,323,536 |
| | 1,191,923 |
| | 967,186 |
|
| Total assets | | 1,352,832 |
| | 1,221,517 |
| | 995,851 |
|
| Noninterest-bearing deposits | | 22,899 |
| | 25,198 |
| | 22,265 |
|
| Interest-bearing deposits | | 1,033,144 |
| | 916,006 |
| | 761,917 |
|
| Total deposits | | 1,056,043 |
| | 941,204 |
| | 784,182 |
|
| Shareholders' equity | | 106,278 |
| | 103,583 |
| | 97,844 |
|
1 Regulatory capital ratios are preliminary pending filing of the Company's regulatory reports
|
| | | | | | | | | | | | |
| First Internet Bancorp | | | | | | |
| Condensed Consolidated Balance Sheets (unaudited, except for December 31, 2015) |
| Amounts in thousands | | | | | | |
| | | March 31,
2016 | | December 31,
2015 | | March 31,
2015 |
| Assets | | | | | | |
| Cash and due from banks | | $ | 2,411 |
| | $ | 1,063 |
| | $ | 1,472 |
|
| Interest-bearing demand deposits | | 98,533 |
| | 24,089 |
| | 38,100 |
|
| Interest-bearing time deposits | | 1,000 |
| | 1,000 |
| | 2,000 |
|
| Securities available-for-sale, at fair value | | 315,311 |
| | 213,698 |
| | 163,676 |
|
| Loans held-for-sale | | 29,491 |
| | 36,518 |
| | 27,584 |
|
| Loans receivable | | 1,040,683 |
| | 953,859 |
| | 767,682 |
|
| Allowance for loan losses | | (9,220 | ) | | (8,351 | ) | | (6,378 | ) |
| Net loans receivable | | 1,031,463 |
| | 945,508 |
| | 761,304 |
|
| Accrued interest receivable | | 4,528 |
| | 4,105 |
| | 3,040 |
|
| Federal Home Loan Bank of Indianapolis stock | | 8,595 |
| | 8,595 |
| | 5,350 |
|
| Cash surrender value of bank-owned life insurance | | 12,826 |
| | 12,727 |
| | 12,423 |
|
| Premises and equipment, net | | 8,485 |
| | 8,521 |
| | 7,040 |
|
| Goodwill | | 4,687 |
| | 4,687 |
| | 4,687 |
|
| Other real estate owned | | 4,488 |
| | 4,488 |
| | 4,488 |
|
| Accrued income and other assets | | 5,901 |
| | 4,871 |
| | 4,513 |
|
| Total assets | | $ | 1,527,719 |
| | $ | 1,269,870 |
| | $ | 1,035,677 |
|
| | |
| | | | |
| Liabilities | |
| | | | |
| Noninterest-bearing deposits | | $ | 28,945 |
| | $ | 23,700 |
| | $ | 19,178 |
|
| Interest-bearing deposits | | 1,214,233 |
| | 932,354 |
| | 801,991 |
|
| Total deposits | | 1,243,178 |
| | 956,054 |
| | 821,169 |
|
| Advances from Federal Home Loan Bank | | 150,969 |
| | 190,957 |
| | 106,921 |
|
| Subordinated debt | | 12,751 |
| | 12,724 |
| | 2,894 |
|
| Accrued interest payable | | 108 |
| | 117 |
| | 104 |
|
| Accrued expenses and other liabilities | | 12,883 |
| | 5,688 |
| | 5,227 |
|
| Total liabilities | | 1,419,889 |
| | 1,165,540 |
| | 936,315 |
|
| Shareholders' equity | |
| | | | |
| Voting common stock | | 72,697 |
| | 72,559 |
| | 72,032 |
|
| Retained earnings | | 35,135 |
| | 32,980 |
| | 26,938 |
|
| Accumulated other comprehensive income (loss) | | (2 | ) | | (1,209 | ) | | 392 |
|
| Total shareholders' equity | | 107,830 |
| | 104,330 |
| | 99,362 |
|
| Total liabilities and shareholders' equity | | $ | 1,527,719 |
| | $ | 1,269,870 |
| | $ | 1,035,677 |
|
|
| | | | | | | | | | | |
| First Internet Bancorp | | | | | |
| Condensed Consolidated Statements of Income (unaudited) |
| Amounts in thousands, except per share data | | | | |
| | Three Months Ended |
| | March 31,
2016 | | December 31,
2015 | | March 31,
2015 |
| Interest income | | | | | |
| Loans | $ | 11,189 |
| | $ | 10,290 |
| | $ | 8,390 |
|
| Securities - taxable | 1,169 |
| | 1,067 |
| | 722 |
|
| Securities - non-taxable | 165 |
| | 137 |
| | — |
|
| Other earning assets | 170 |
| | 100 |
| | 75 |
|
| Total interest income | 12,693 |
| | 11,594 |
| | 9,187 |
|
| Interest expense | | | | | |
| Deposits | 2,888 |
| | 2,405 |
| | 1,953 |
|
| Other borrowed funds | 664 |
| | 621 |
| | 460 |
|
| Total interest expense | 3,552 |
| | 3,026 |
| | 2,413 |
|
| Net interest income | 9,141 |
| | 8,568 |
| | 6,774 |
|
| Provision for loan losses | 946 |
| | 746 |
| | 442 |
|
| Net interest income after provision for loan losses | 8,195 |
| | 7,822 |
| | 6,332 |
|
| Noninterest income | | | | | |
| Service charges and fees | 200 |
| | 193 |
| | 176 |
|
| Mortgage banking activities | 2,254 |
| | 1,805 |
| | 2,886 |
|
| Gain (loss) on asset disposals | (16 | ) | | 40 |
| | (14 | ) |
| Other | 102 |
| | 105 |
| | 100 |
|
| Total noninterest income | 2,540 |
| | 2,143 |
| | 3,148 |
|
| Noninterest expense | | | | | |
| Salaries and employee benefits | 3,898 |
| | 3,460 |
| | 3,578 |
|
| Marketing, advertising and promotion | 464 |
| | 426 |
| | 452 |
|
| Consulting and professional fees | 638 |
| | 674 |
| | 592 |
|
| Data processing | 274 |
| | 287 |
| | 248 |
|
| Loan expenses | 184 |
| | 172 |
| | 181 |
|
| Premises and equipment | 798 |
| | 759 |
| | 642 |
|
| Deposit insurance premium | 180 |
| | 170 |
| | 150 |
|
| Other | 569 |
| | 544 |
| | 414 |
|
| Total noninterest expense | 7,005 |
| | 6,492 |
| | 6,257 |
|
| Income before income taxes | 3,730 |
| | 3,473 |
| | 3,223 |
|
| Income tax provision | 1,298 |
| | 1,195 |
| | 1,160 |
|
| Net income | $ | 2,432 |
| | $ | 2,278 |
| | $ | 2,063 |
|
| | | | | | |
| Per common share data | | | | | |
| Earnings per share - basic | $ | 0.54 |
| | $ | 0.50 |
| | $ | 0.46 |
|
| Earnings per share - diluted | $ | 0.53 |
| | $ | 0.50 |
| | $ | 0.46 |
|
| Dividends declared per share | $ | 0.06 |
| | $ | 0.06 |
| | $ | 0.06 |
|
All periods presented have been reclassified to conform to the current period classification.
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| First Internet Bancorp | | | | | | | | | | | | | | | | | |
| Average Balances and Rates (unaudited) | | | | | | | | | | | | | | | | |
| Amounts in thousands | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| March 31, 2016 | | December 31, 2015 | | March 31, 2015 |
| | Average Balance | | Interest/Dividends | | Yield/ Cost | | Average Balance | | Interest/Dividends | | Yield/ Cost | | Average Balance | | Interest/Dividends | | Yield/ Cost |
| Assets | | | | | | | | | | | | | | | | | |
| Interest-earning assets | | | | | | | | | | | | | | | | | |
| Loans, including loans held-for-sale | $ | 1,020,168 |
| | $ | 11,189 |
| | 4.41 | % | | $ | 942,801 |
| | $ | 10,290 |
| | 4.33 | % | | $ | 780,302 |
| | $ | 8,390 |
| | 4.36 | % |
| Securities - taxable | 202,898 |
| | 1,169 |
| | 2.32 | % | | 189,447 |
| | 1,067 |
| | 2.23 | % | | 145,241 |
| | 722 |
| | 2.02 | % |
| Securities - non-taxable | 22,179 |
| | 165 |
| | 2.99 | % | | 18,401 |
| | 137 |
| | 2.95 | % | | — |
| | — |
| | 0.00 | % |
| Other earning assets | 78,291 |
| | 170 |
| | 0.87 | % | | 41,274 |
| | 100 |
| | 0.96 | % | | 41,643 |
| | 75 |
| | 0.73 | % |
| Total interest-earning assets | 1,323,536 |
| | 12,693 |
| | 3.86 | % | | 1,191,923 |
| | 11,594 |
| | 3.86 | % | | 967,186 |
| | 9,187 |
| | 3.85 | % |
| Allowance for loan losses | (8,655 | ) | | | | | | (7,947 | ) | | | | | | (5,883 | ) | | | | |
| Noninterest-earning assets | 37,951 |
| | | | | | 37,541 |
| | | | | | 34,548 |
| | | | |
| Total assets | $ | 1,352,832 |
| | | | | | $ | 1,221,517 |
| | | | | | $ | 995,851 |
| | | | |
| | | | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | $ | 81,338 |
| | $ | 111 |
| | 0.55 | % | | $ | 77,096 |
| | $ | 107 |
| | 0.55 | % | | $ | 75,405 |
| | $ | 102 |
| | 0.55 | % |
| Regular savings accounts | 25,021 |
| | 36 |
| | 0.58 | % | | 26,239 |
| | 38 |
| | 0.57 | % | | 22,099 |
| | 32 |
| | 0.59 | % |
| Money market accounts | 350,809 |
| | 616 |
| | 0.71 | % | | 345,337 |
| | 608 |
| | 0.70 | % | | 274,312 |
| | 492 |
| | 0.73 | % |
| Certificates and brokered deposits | 575,976 |
| | 2,125 |
| | 1.48 | % | | 467,334 |
| | 1,652 |
| | 1.40 | % | | 390,101 |
| | 1,327 |
| | 1.38 | % |
| Total interest-bearing deposits | 1,033,144 |
| | 2,888 |
| | 1.12 | % | | 916,006 |
| | 2,405 |
| | 1.04 | % | | 761,917 |
| | 1,953 |
| | 1.04 | % |
| Other borrowed funds | 185,618 |
| | 664 |
| | 1.44 | % | | 171,169 |
| | 621 |
| | 1.44 | % | | 109,787 |
| | 460 |
| | 1.70 | % |
| Total interest-bearing liabilities | 1,218,762 |
| | 3,552 |
| | 1.17 | % | | 1,087,175 |
| | 3,026 |
| | 1.10 | % | | 871,704 |
| | 2,413 |
| | 1.12 | % |
| Noninterest-bearing deposits | 22,899 |
| | | | | | 25,198 |
| | | | | | 22,265 |
| | | | |
| Other noninterest-bearing liabilities | 4,893 |
| | | | | | 5,561 |
| | | | | | 4,038 |
| | | | |
| Total liabilities | 1,246,554 |
| | | | | | 1,117,934 |
| | | | | | 898,007 |
| | | | |
| Shareholders' equity | 106,278 |
| | | | | | 103,583 |
| | | | | | 97,844 |
| | | | |
| Total liabilities and shareholders' equity | $ | 1,352,832 |
| | | | | | $ | 1,221,517 |
| | | | | | $ | 995,851 |
| | | | |
| | | | | | | | | | | | | | | | | | |
| Net interest income | | | $ | 9,141 |
| | | | | | $ | 8,568 |
| | | | | | $ | 6,774 |
| | |
| | | | | | | | | | | | | | | | | | |
| Interest rate spread | | | | | 2.69 | % | | | | | | 2.76 | % | | | | | | 2.73 | % |
| Net interest margin | | | | | 2.78 | % | | | | | | 2.85 | % | | | | | | 2.84 | % |
|
| | | | | | | | | | | | | | | | | | | | | |
| First Internet Bancorp | | | | | | | | | | | | |
| Loans and Deposits (unaudited) | | | | | | | | | | | |
| Amounts in thousands | | | | | | | | | | | | |
| | | March 31, 2016 | | December 31, 2015 | | March 31, 2015 |
| | | Amount | | Percent | | Amount | | Percent | | Amount | | Percent |
| Commercial loans | | | | | | | | | | | | |
| Commercial and industrial | | $ | 106,431 |
| | 10.2 | % | | $ | 102,000 |
| | 10.7 | % | | $ | 83,849 |
| | 11.0 | % |
| Owner-occupied commercial real estate | | 47,010 |
| | 4.5 | % | | 44,462 |
| | 4.7 | % | | 38,536 |
| | 5.0 | % |
| Investor commercial real estate | | 14,756 |
| | 1.4 | % | | 16,184 |
| | 1.7 | % | | 18,491 |
| | 2.4 | % |
| Construction | | 52,591 |
| | 5.1 | % | | 45,898 |
| | 4.8 | % | | 26,847 |
| | 3.5 | % |
| Single tenant lease financing | | 445,534 |
| | 42.8 | % | | 374,344 |
| | 39.2 | % | | 227,229 |
| | 29.6 | % |
| Total commercial loans | | 666,322 |
| | 64.0 | % | | 582,888 |
| | 61.1 | % | | 394,952 |
| | 51.5 | % |
| | | | | | | | | | | | | |
| Consumer loans | | | | | | | | | | | | |
| Residential mortgage | | 208,636 |
| | 20.1 | % | | 214,559 |
| | 22.5 | % | | 215,910 |
| | 28.1 | % |
| Home equity | | 40,000 |
| | 3.8 | % | | 43,279 |
| | 4.5 | % | | 54,838 |
| | 7.2 | % |
| Trailers | | 69,845 |
| | 6.7 | % | | 67,326 |
| | 7.1 | % | | 63,638 |
| | 8.3 | % |
| Recreational vehicles | | 41,227 |
| | 4.0 | % | | 38,597 |
| | 4.0 | % | | 31,023 |
| | 4.0 | % |
| Other consumer loans | | 10,251 |
| | 1.0 | % | | 2,389 |
| | 0.3 | % | | 2,531 |
| | 0.3 | % |
| Total consumer loans | | 369,959 |
| | 35.6 | % | | 366,150 |
| | 38.4 | % | | 367,940 |
| | 47.9 | % |
| | | | | | | | | | | | | |
| Net deferred loan fees, premiums and discounts | | 4,402 |
| | 0.4 | % | | 4,821 |
| | 0.5 | % | | 4,790 |
| | 0.6 | % |
| | | | | | | | | | | | | |
| Total loans receivable | | $ | 1,040,683 |
| | 100.0 | % | | $ | 953,859 |
| | 100.0 | % | | $ | 767,682 |
| | 100.0 | % |
| | | | | | | | | | | | | |
| | | March 31, 2016 | | December 31, 2015 | | March 31, 2015 |
| | | Amount | | Percent | | Amount | | Percent | | Amount | | Percent |
| Deposits | | | | | | | | | | | | |
| Noninterest-bearing deposits | | $ | 28,945 |
| | 2.3 | % | | $ | 23,700 |
| | 2.5 | % | | $ | 19,178 |
| | 2.3 | % |
| Interest-bearing demand deposits | | 89,180 |
| | 7.2 | % | | 84,241 |
| | 8.8 | % | | 82,982 |
| | 10.1 | % |
| Regular savings accounts | | 27,279 |
| | 2.2 | % | | 22,808 |
| | 2.4 | % | | 23,367 |
| | 2.8 | % |
| Money market accounts | | 366,195 |
| | 29.5 | % | | 341,732 |
| | 35.7 | % | | 280,740 |
| | 34.2 | % |
| Certificates of deposits | | 718,733 |
| | 57.8 | % | | 470,736 |
| | 49.2 | % | | 401,347 |
| | 48.9 | % |
| Brokered deposits | | 12,846 |
| | 1.0 | % | | 12,837 |
| | 1.4 | % | | 13,555 |
| | 1.7 | % |
| Total deposits | | $ | 1,243,178 |
| | 100.0 | % | | $ | 956,054 |
| | 100.0 | % | | $ | 821,169 |
| | 100.0 | % |
|
| | | | | | | | | | | | |
| First Internet Bancorp | | | | | | |
| Reconciliation of Non-GAAP Financial Measures | | |
| Amounts in thousands, except per share data | | | | |
| | | Three Months Ended |
| | | March 31,
2016 | | December 31,
2015 | | March 31,
2015 |
| | | | | | | |
| Total equity - GAAP | | $ | 107,830 |
| | $ | 104,330 |
| | $ | 99,362 |
|
| Adjustments: | | | | | | |
| Goodwill | | (4,687 | ) | | (4,687 | ) | | (4,687 | ) |
| Tangible common equity | | $ | 103,143 |
| | $ | 99,643 |
| | $ | 94,675 |
|
| | | | | | | |
| Total assets - GAAP | | $ | 1,527,719 |
| | $ | 1,269,870 |
| | $ | 1,035,677 |
|
| Adjustments: | | | | | | |
| Goodwill | | (4,687 | ) | | (4,687 | ) | | (4,687 | ) |
| Tangible assets | | $ | 1,523,032 |
| | $ | 1,265,183 |
| | $ | 1,030,990 |
|
| | | | | | | |
| Common shares outstanding | | 4,497,284 |
| | 4,481,347 |
| | 4,484,513 |
|
| | | | | | | |
| Book value per common share | | $ | 23.98 |
| | $ | 23.28 |
| | $ | 22.16 |
|
| Effect of goodwill | | (1.05 | ) | | (1.04 | ) | | (1.05 | ) |
| Tangible book value per common share | | $ | 22.93 |
| | $ | 22.24 |
| | $ | 21.11 |
|
| | | | | | | |
| Total shareholders' equity to assets ratio | | 7.06 | % | | 8.22 | % | | 9.59 | % |
| Effect of goodwill | | (0.29 | %) | | (0.34 | %) | | (0.41 | %) |
| Tangible common equity to tangible assets ratio | | 6.77 | % | | 7.88 | % | | 9.18 | % |
| | | | | | | |
| Total average equity - GAAP | | $ | 106,278 |
| | $ | 103,583 |
| | $ | 97,844 |
|
| Adjustments: | | | | | | |
| Average goodwill | | (4,687 | ) | | (4,687 | ) | | (4,687 | ) |
| Average tangible common equity | | $ | 101,591 |
| | $ | 98,896 |
| | $ | 93,157 |
|
| | | | | | | |
| Return on average shareholders' equity | | 9.20 | % | | 8.73 | % | | 8.55 | % |
| Effect of goodwill | | 0.43 | % | | 0.41 | % | | 0.43 | % |
| Return on average tangible common equity | | 9.63 | % | | 9.14 | % | | 8.98 | % |
