Attached files
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| 8-K - 8-K - First Internet Bancorp | v399294_8k.htm |
Exhibit 99.1
First Internet Bancorp Reports Fourth Quarter and
Full Year 2014 Financial Results
Quarterly earnings per share of $0.32, up over 68% from fourth quarter 2013;
loan growth of over 46% for the full year 2014
Indianapolis, Indiana, January 22, 2015 – First Internet Bancorp (NASDAQ: INBK), the parent company of First Internet Bank (www.firstib.com), a premier nationwide provider of online retail banking services and commercial banking services, announced today financial and operational results for the fourth quarter 2014 and for the twelve month period ended December 31, 2014.
Fourth quarter net income was $1.5 million and diluted earnings per share were $0.32. This compares with third quarter net income of $1.3 million and diluted earnings per share of $0.28 and fourth quarter 2013 net income of $0.7 million and diluted earnings per share of $0.19. For the twelve month period ended December 31, 2014, net income was $4.3 million and diluted earnings per share were $0.96 compared to net income of $4.6 million and diluted earnings per share of $1.51 for the twelve month period ended December 31, 2013. The comparability of diluted earnings per share between fourth quarter and twelve month periods in 2014 and 2013 is impacted by the effect on average diluted shares outstanding resulting from the Company’s offering of 1,587,000 shares of common stock occurring in the fourth quarter 2013.
| § | Diluted earnings per share increased $0.04, or 14.3%, compared to the linked quarter and $0.13, or 68.4%, compared to the fourth quarter 2013 |
| § | Continued strong revenue growth |
| · | Net interest income increased $0.7 million, or 12.4%, quarter-over-quarter and $1.4 million, or 28.4%, compared to the fourth quarter 2013 |
| · | Mortgage banking revenue increased $0.2 million, or 12.5%, compared to the linked quarter and $0.9 million, or 101.3%, compared to the fourth quarter 2013 |
| § | Total loan growth of $36.5 million, or 5.2%, compared to the linked quarter and $231.3 million, or 46.1%, compared to December 31, 2013 |
| · | Strong performance in credit tenant lease financing with balances increasing 16.2% compared to the linked quarter and 128.8% year-over-year |
| · | Continued growth in C&I / owner-occupied CRE, increasing on a combined basis 7.5% compared to the linked quarter and 52.1% compared to December 31, 2013 |
| · | Increased activity in construction real estate lending also contributed to the growth with balances increasing 38.7% compared to the linked quarter |
| § | Net interest margin improved 10 bps to 2.78% compared to the linked quarter driven by a 12 bps decline in the cost of interest-bearing liabilities |
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| § | Capital levels remain solid while continuing to support loan growth |
| · | Tangible common equity to tangible assets of 9.54% |
| · | Tier 1 capital ratio of 12.55% |
| · | Total risk-based capital ratio of 13.75% |
| § | Strong asset quality continues to improve |
| · | Nonperforming loans declined $0.1 million, or 26.0%, with nonperforming loans to total loans declining 2 bps to 0.04% from 0.06% for the linked quarter |
| · | Nonperforming assets declined $0.2 million, or 4.0%, compared to the linked quarter and $2.3 million, or 32.3%, compared to December 31, 2013 |
David Becker, Chairman, President and Chief Executive Officer, commented, “We ended 2014 on an extremely positive note as the fourth quarter’s results represent our strongest performance of the year. Continued growth in net interest income and solid performance in mortgage banking drove an 11.3% increase in total revenue, net of interest expense, compared to the third quarter. When combined with our ability to effectively manage our operating costs, the revenue growth translated into quarterly earnings growth exceeding 14% and continued improvement in profitability metrics.
“We posted another excellent quarter of loan growth. Our elevated commercial pipeline at the end of September resulted in total commercial loan balances increasing $43.1 million, or 14.0%, during the quarter even though we experienced the early payoff of some larger credits. Our commercial real estate team continued to produce in credit tenant lease financing and capitalized on its relationships in construction originations. Additionally, our commercial and industrial team wrapped up the year with a solid quarter of new C&I and owner-occupied CRE originations and strong year-over-year growth. The level of new business opportunities continues to grow and we remain confident in our asset generating capabilities moving forward.
“Our mortgage banking team had another solid quarter. Our re-focused business model emphasizing purchase mortgage business produced consistent results, despite seasonal headwinds, while allowing us the flexibility to capitalize on increased refinance activity. Origination activity constantly improved throughout the year and our improved sales and marketing capabilities combined with the low interest rate environment provide significant momentum heading into 2015.
“We were especially pleased with the continued growth in net interest margin which expanded 10 bps during the quarter. We significantly reduced our cost of funds by actively managing the liability side of our balance sheet. While we remain focused on continuing to improve net interest margin, we took advantage of low interest rates and converted $40 million of short term borrowings to longer term funding in early 2015. This may negatively impact net interest margin growth in the near term but will leave us well positioned to benefit when rates begin to rise.”
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Net Interest Income and Net Interest Margin
Net interest income for the fourth quarter was $6.4 million compared to $5.7 million for the third quarter and $5.0 million for the fourth quarter 2013. Compared to the linked quarter, total interest income increased $0.7 million, or 8.5%, and total interest expense declined less than $0.1 million, or 1.1%. The increase in total interest income was driven by a $75.7 million increase, or 12.0%, in average loans receivable balances, partially offset by a decline in the yield earned on the loan portfolio. Additionally, the impact of the loan growth was offset by a decline of $9.9 million, or 7.1%, in the average balance of the investment portfolio as well as a decline of 6 bps in the yield earned on investments. The decline in average investment balances was the result of portfolio restructuring efforts made in 2014, which concluded in the third quarter, to increase the liquidity profile and reduce the interest rate risk and duration of the portfolio.
The slight decrease in interest expense during the quarter was due primarily to a 3 bp decline in the cost of interest-bearing deposits driven by a lower cost of funds related to certificates of deposit. The decrease in interest expense related to deposits was partially offset by a small increase in expense related to borrowed funds resulting from an increase in advances from the Federal Home Loan Bank.
Net interest margin was 2.78% for the fourth quarter compared to 2.68% for the third quarter and 2.70% for the fourth quarter 2013. Compared to the prior quarter, the yield on interest-earning assets remained consistent at 3.76% as the growth in average loan balances and the migration of interest-earning assets from lower-yielding investment securities to higher-yielding commercial loans offset declines in the yields earned on the loan and investment portfolios. The cost of interest-bearing liabilities during the quarter declined 12 bps to 1.09% driven primarily by lower deposit costs and significantly lower funding costs related to borrowings.
Noninterest Income
Noninterest income for the fourth quarter was $2.1 million compared to $1.9 million for the third quarter and $1.2 million for the fourth quarter 2013. The increase of $0.2 million, or 8.0%, compared to the linked quarter was driven by an increase of $0.2 million, or 12.5%, in mortgage banking revenue. The increase in mortgage banking revenue was primarily a result of higher origination volumes as purchase originations were supplemented by increased refinance activity when interest rates dropped early in the fourth quarter.
Noninterest Expense
Noninterest expense for the fourth quarter was $5.9 million compared to $5.8 million for the third quarter and $5.3 million for the fourth quarter 2013. The increase of $0.1 million, or 1.6%, compared to the linked quarter was due to higher consulting and professional fees and other noninterest expenses, offset by lower salaries and employee benefits, marketing costs and loan expenses.
Income Taxes
Income tax expense was $0.7 million for the fourth quarter, resulting in an effective tax rate of 33.6%, compared to $0.7 million and an effective tax rate of 34.0% for the third quarter.
Loans and Credit Quality
Total loans as of December 31, 2014 were $732.4 million, increasing $36.5 million, or 5.2%, compared to the third quarter and $231.3 million, or 46.1%, compared to December 31, 2013. Total commercial loans increased $43.1 million, or 14.0%, compared to the linked quarter driven by continued strong production in credit tenant lease financing as well as solid growth in the commercial and industrial, construction real estate and owner-occupied commercial real estate portfolios.
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Credit quality continues to remain strong as nonperforming loans to total loans receivable declined to 0.04% from 0.06% as of September 30, 2014 and 0.37% as of December 31, 2013. Additionally, nonperforming assets to total assets declined to 0.50% from 0.55% as of September 30, 2014 and 0.90% as of December 31, 2013. Compared to the linked quarter, total nonperforming loans declined $0.1 million, or 26.0%, and total nonperforming assets declined $0.2 million, or 4.0%, due primarily to lower levels of nonaccrual and delinquent loans and a modest decline in other real estate owned.
The allowance for loan losses was $5.8 million as of December 31, 2014 compared to $5.5 million as of September 30, 2014 and $5.4 million as of December 31, 2013. The allowance as a percentage of total nonperforming loans increased to 1,959.5% as of December 31, 2014 from 1,366.0% as of September 30, 2014 and 293.0% as of December 31, 2013.
Capital
During the fourth quarter, total shareholders’ equity increased $2.0 million due to net income earned for the quarter and the change in the unrealized gain/loss related to the investment portfolio, partially offset by declared dividends. As of December 31, 2014, the Company’s tier 1 and total capital ratios declined to 12.55% and 13.75% from 13.22% and 14.45% as of September 30, 2014, respectively, due to an increase in risk-weighted assets resulting from the strong commercial loan growth for the quarter. Tangible common equity to tangible assets declined 23 bps during the fourth quarter to 9.54% due to strong asset growth while tangible book value per share increased to $20.74 from $20.29 as of September 30, 2014.
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, asset-based lending 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, 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.
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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.”
| 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 |
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First Internet Bancorp
Summary Financial Information (unaudited)
Amounts in thousands, except per share data
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
| Net income | $ | 1,465 | $ | 1,282 | $ | 666 | $ | 4,324 | $ | 4,593 | ||||||||||
| Per share and share information | ||||||||||||||||||||
| Earnings per share - basic | $ | 0.33 | $ | 0.29 | $ | 0.19 | $ | 0.96 | $ | 1.51 | ||||||||||
| Earnings per share - diluted | 0.32 | 0.28 | 0.19 | 0.96 | 1.51 | |||||||||||||||
| Dividends declared per share | 0.06 | 0.06 | 0.06 | 0.24 | 0.22 | |||||||||||||||
| Tangible book value per common share | 20.74 | 20.29 | 19.38 | 20.74 | 19.38 | |||||||||||||||
| Common shares outstanding | 4,439,575 | 4,439,575 | 4,448,326 | 4,439,575 | 4,448,326 | |||||||||||||||
| Average common shares outstanding: | ||||||||||||||||||||
| Basic | 4,499,316 | 4,497,762 | 3,496,841 | 4,497,007 | 3,041,666 | |||||||||||||||
| Diluted | 4,514,505 | 4,511,291 | 3,516,462 | 4,507,995 | 3,050,001 | |||||||||||||||
| Performance ratios | ||||||||||||||||||||
| Return on average assets | 0.62 | % | 0.59 | % | 0.35 | % | 0.50 | % | 0.67 | % | ||||||||||
| Return on average shareholders' equity | 6.07 | % | 5.36 | % | 3.59 | % | 4.61 | % | 7.10 | % | ||||||||||
| Return on average tangible common equity | 6.38 | % | 5.64 | % | 3.83 | % | 4.85 | % | 7.65 | % | ||||||||||
| Net interest margin | 2.78 | % | 2.68 | % | 2.70 | % | 2.65 | % | 2.67 | % | ||||||||||
| Capital ratios 1 | ||||||||||||||||||||
| Tangible common equity to tangible assets | 9.54 | % | 9.77 | % | 10.81 | % | 9.54 | % | 10.81 | % | ||||||||||
| Tier 1 leverage ratio | 9.87 | % | 10.52 | % | 11.66 | % | 9.87 | % | 11.66 | % | ||||||||||
| Tier 1 capital ratio | 12.55 | % | 13.22 | % | 15.61 | % | 12.55 | % | 15.61 | % | ||||||||||
| Total capital ratio | 13.75 | % | 14.45 | % | 17.09 | % | 13.75 | % | 17.09 | % | ||||||||||
| Asset quality | ||||||||||||||||||||
| Nonperforming loans | $ | 296 | $ | 400 | $ | 1,852 | $ | 296 | $ | 1,852 | ||||||||||
| Nonperforming assets | 4,866 | 5,067 | 7,189 | 4,866 | 7,189 | |||||||||||||||
| Nonperforming loans to loans receivable | 0.04 | % | 0.06 | % | 0.37 | % | 0.04 | % | 0.37 | % | ||||||||||
| Nonperforming assets to total assets | 0.50 | % | 0.55 | % | 0.90 | % | 0.50 | % | 0.90 | % | ||||||||||
| Allowance for loan losses to: | ||||||||||||||||||||
| Loans receivable | 0.79 | % | 0.79 | % | 1.08 | % | 0.79 | % | 1.08 | % | ||||||||||
| Nonperforming loans | 1,959.5 | % | 1,366.0 | % | 293.0 | % | 1,959.5 | % | 293.0 | % | ||||||||||
| Net charge-offs (recoveries) to average loans receivable | 0.03 | % | (0.27 | )% | 0.22 | % | 0.00 | % | 0.19 | % | ||||||||||
| Average balance sheet information | ||||||||||||||||||||
| Loans receivable | $ | 708,053 | $ | 632,403 | $ | 464,729 | $ | 605,358 | $ | 392,166 | ||||||||||
| Securities available for sale | 129,692 | 139,569 | 203,565 | 153,752 | 180,850 | |||||||||||||||
| Other earning assets | 34,242 | 38,964 | 31,154 | 56,094 | 37,785 | |||||||||||||||
| Total earning assets | 909,495 | 839,183 | 729,280 | 841,589 | 654,434 | |||||||||||||||
| Total assets | 938,685 | 868,361 | 762,152 | 872,303 | 684,580 | |||||||||||||||
| Noninterest-bearing deposits | 21,118 | 21,960 | 15,145 | 20,028 | 13,605 | |||||||||||||||
| Interest-bearing deposits | 725,740 | 718,100 | 631,637 | 708,271 | 567,104 | |||||||||||||||
| Total deposits | 746,858 | 740,060 | 646,782 | 728,299 | 580,709 | |||||||||||||||
| Shareholders' equity | 95,832 | 94,840 | 73,674 | 93,796 | 64,704 | |||||||||||||||
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, 2013) |
| Amounts in thousands |
| December 31, | September 30, | December 31, | ||||||||||
| 2014 | 2014 | 2013 | ||||||||||
| Assets | ||||||||||||
| Cash and due from banks | $ | 1,940 | $ | 1,137 | $ | 2,578 | ||||||
| Interest-bearing demand deposits | 26,349 | 38,470 | 51,112 | |||||||||
| Interest-bearing time deposits | 2,000 | 2,000 | 2,500 | |||||||||
| Securities available for sale, at fair value | 137,518 | 128,203 | 181,409 | |||||||||
| Loans held-for-sale | 34,671 | 27,547 | 28,610 | |||||||||
| Loans receivable | 732,426 | 695,929 | 501,153 | |||||||||
| Allowance for loan losses | (5,800 | ) | (5,464 | ) | (5,426 | ) | ||||||
| Net loans receivable | 726,626 | 690,465 | 495,727 | |||||||||
| Accrued interest receivable | 2,833 | 2,803 | 2,904 | |||||||||
| Federal Home Loan Bank of Indianapolis stock | 5,350 | 2,943 | 2,943 | |||||||||
| Cash surrender value of bank-owned life insurance | 12,325 | 12,226 | 11,935 | |||||||||
| Premises and equipment, net | 7,061 | 7,075 | 7,134 | |||||||||
| Goodwill | 4,687 | 4,687 | 4,687 | |||||||||
| Other real estate owned | 4,488 | 4,545 | 4,381 | |||||||||
| Accrued income and other assets | 4,655 | 4,782 | 6,422 | |||||||||
| Total assets | $ | 970,503 | $ | 926,883 | $ | 802,342 | ||||||
| Liabilities | ||||||||||||
| Non-interest bearing deposits | $ | 21,790 | $ | 20,359 | $ | 19,386 | ||||||
| Interest-bearing deposits | 736,808 | 717,611 | 653,709 | |||||||||
| Total deposits | 758,598 | 737,970 | 673,095 | |||||||||
| Advances from Federal Home Loan Bank | 106,897 | 86,871 | 31,793 | |||||||||
| Subordinated debt | 2,873 | 2,852 | 2,789 | |||||||||
| Accrued interest payable | 97 | 82 | 102 | |||||||||
| Accrued expenses and other liabilities | 5,253 | 4,334 | 3,655 | |||||||||
| Total liabilities | 873,718 | 832,109 | 711,434 | |||||||||
| Shareholders' equity | ||||||||||||
| Voting common stock | 71,774 | 71,705 | 71,378 | |||||||||
| Retained earnings | 25,146 | 23,951 | 21,902 | |||||||||
| Accumulated other comprehensive loss | (135 | ) | (882 | ) | (2,372 | ) | ||||||
| Total shareholders' equity | 96,785 | 94,774 | 90,908 | |||||||||
| Total liabilities and shareholders' equity | $ | 970,503 | $ | 926,883 | $ | 802,342 | ||||||
| First Internet Bancorp |
| Condensed Consolidated Statements of Income (unaudited, except for the twelve months ended December 31, 2013) |
| Amounts in thousands, except per share data |
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
| Interest income | ||||||||||||||||||||
| Loans | $ | 7,957 | $ | 7,218 | $ | 5,770 | $ | 27,875 | $ | 20,843 | ||||||||||
| Securities - taxable | 615 | 684 | 829 | 3,036 | 2,891 | |||||||||||||||
| Securities - non-taxable | - | - | 465 | 58 | 1,611 | |||||||||||||||
| Other earning assets | 51 | 45 | 42 | 246 | 191 | |||||||||||||||
| Total interest income | 8,623 | 7,947 | 7,106 | 31,215 | 25,536 | |||||||||||||||
| Interest expense | ||||||||||||||||||||
| Deposits | 1,913 | 1,958 | 1,819 | 7,653 | 6,861 | |||||||||||||||
| Other borrowed funds | 335 | 316 | 323 | 1,275 | 1,227 | |||||||||||||||
| Total interest expense | 2,248 | 2,274 | 2,142 | 8,928 | 8,088 | |||||||||||||||
| Net interest income | 6,375 | 5,673 | 4,964 | 22,287 | 17,448 | |||||||||||||||
| Provision (credit) for loan losses | 387 | (112 | ) | 223 | 349 | 324 | ||||||||||||||
| Net interest income after provision (credit) for loan losses | 5,988 | 5,785 | 4,741 | 21,938 | 17,124 | |||||||||||||||
| Noninterest income | ||||||||||||||||||||
| Service charges and fees | 174 | 179 | 172 | 707 | 687 | |||||||||||||||
| Mortgage banking activities | 1,842 | 1,638 | 915 | 5,609 | 8,682 | |||||||||||||||
| Other-than-temporary impairment loss recognized in net income | - | - | - | - | (49 | ) | ||||||||||||||
| Gain (loss) on sale of securities | - | 54 | 6 | 538 | (63 | ) | ||||||||||||||
| Loss on asset disposals | (19 | ) | (28 | ) | (25 | ) | (78 | ) | (146 | ) | ||||||||||
| Other | 101 | 100 | 103 | 398 | 406 | |||||||||||||||
| Total noninterest income | 2,098 | 1,943 | 1,171 | 7,174 | 9,517 | |||||||||||||||
| Noninterest expense | ||||||||||||||||||||
| Salaries and employee benefits | 3,129 | 3,265 | 2,696 | 12,348 | 10,250 | |||||||||||||||
| Marketing, advertising and promotion | 307 | 381 | 477 | 1,455 | 1,858 | |||||||||||||||
| Consulting and professional fees | 595 | 409 | 452 | 1,902 | 2,152 | |||||||||||||||
| Data processing | 277 | 244 | 223 | 995 | 911 | |||||||||||||||
| Loan expenses | 168 | 208 | 226 | 626 | 799 | |||||||||||||||
| Premises and equipment | 733 | 741 | 548 | 2,937 | 2,196 | |||||||||||||||
| Deposit insurance premium | 154 | 155 | 138 | 591 | 451 | |||||||||||||||
| Other | 516 | 382 | 495 | 1,808 | 1,865 | |||||||||||||||
| Total noninterest expense | 5,879 | 5,785 | 5,255 | 22,662 | 20,482 | |||||||||||||||
| Income before income taxes | 2,207 | 1,943 | 657 | 6,450 | 6,159 | |||||||||||||||
| Income tax provision (benefit) | 742 | 661 | (9 | ) | 2,126 | 1,566 | ||||||||||||||
| Net income | $ | 1,465 | $ | 1,282 | $ | 666 | $ | 4,324 | $ | 4,593 | ||||||||||
| Per common share data | ||||||||||||||||||||
| Earnings per share - basic | $ | 0.33 | $ | 0.29 | $ | 0.19 | $ | 0.96 | $ | 1.51 | ||||||||||
| Earnings per share - diluted | $ | 0.32 | $ | 0.28 | $ | 0.19 | $ | 0.96 | $ | 1.51 | ||||||||||
| Dividends declared per share | $ | 0.06 | $ | 0.06 | $ | 0.06 | $ | 0.24 | $ | 0.22 | ||||||||||
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 | ||||||||||||||||||||||||||||||||||||
| December 31, 2014 | September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||
| 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 | $ | 745,561 | $ | 7,957 | 4.23 | % | $ | 660,650 | $ | 7,218 | 4.33 | % | $ | 494,561 | $ | 5,770 | 4.63 | % | ||||||||||||||||||
| Securities - taxable | 129,692 | 615 | 1.88 | % | 139,569 | 684 | 1.94 | % | 156,226 | 829 | 2.11 | % | ||||||||||||||||||||||||
| Securities - non-taxable | - | - | 0.00 | % | - | - | 0.00 | % | 47,339 | 465 | 3.90 | % | ||||||||||||||||||||||||
| Other earning assets | 34,242 | 51 | 0.59 | % | 38,964 | 45 | 0.46 | % | 31,154 | 42 | 0.53 | % | ||||||||||||||||||||||||
| Total interest-earning assets | 909,495 | 8,623 | 3.76 | % | 839,183 | 7,947 | 3.76 | % | 729,280 | 7,106 | 3.87 | % | ||||||||||||||||||||||||
| Allowance for loan losses | (5,535 | ) | (5,248 | ) | (5,473 | ) | ||||||||||||||||||||||||||||||
| Noninterest earning-assets | 34,725 | 34,426 | 38,345 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 938,685 | $ | 868,361 | $ | 762,152 | ||||||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||
| Regular savings accounts | $ | 19,545 | $ | 29 | 0.59 | % | $ | 16,932 | $ | 25 | 0.59 | % | $ | 14,036 | $ | 21 | 0.59 | % | ||||||||||||||||||
| Interest-bearing demand deposits | 68,968 | 95 | 0.55 | % | 69,635 | 96 | 0.55 | % | 66,294 | 92 | 0.55 | % | ||||||||||||||||||||||||
| Money market accounts | 274,015 | 502 | 0.73 | % | 272,697 | 501 | 0.73 | % | 248,938 | 460 | 0.73 | % | ||||||||||||||||||||||||
| Certificates and brokered deposits | 363,212 | 1,287 | 1.41 | % | 358,836 | 1,336 | 1.48 | % | 302,369 | 1,246 | 1.63 | % | ||||||||||||||||||||||||
| Total interest-bearing deposits | 725,740 | 1,913 | 1.05 | % | 718,100 | 1,958 | 1.08 | % | 631,637 | 1,819 | 1.14 | % | ||||||||||||||||||||||||
| Other borrowed funds | 91,700 | 335 | 1.45 | % | 29,748 | 316 | 4.21 | % | 34,551 | 323 | 3.71 | % | ||||||||||||||||||||||||
| Total interest-bearing liabilities | 817,440 | 2,248 | 1.09 | % | 747,848 | 2,274 | 1.21 | % | 666,188 | 2,142 | 1.28 | % | ||||||||||||||||||||||||
| Noninterest-bearing deposits | 21,118 | 21,960 | 15,145 | |||||||||||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 4,295 | 3,713 | 7,145 | |||||||||||||||||||||||||||||||||
| Total liabilities | 842,853 | 773,521 | 688,478 | |||||||||||||||||||||||||||||||||
| Shareholders' equity | 95,832 | 94,840 | 73,674 | |||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 938,685 | $ | 868,361 | $ | 762,152 | ||||||||||||||||||||||||||||||
| Net interest income | $ | 6,375 | $ | 5,673 | $ | 4,964 | ||||||||||||||||||||||||||||||
| Interest rate spread | 2.67 | % | 2.55 | % | 2.59 | % | ||||||||||||||||||||||||||||||
| Net interest margin | 2.78 | % | 2.68 | % | 2.70 | % | ||||||||||||||||||||||||||||||
| First Internet Bancorp |
| Average Balances and Rates (unaudited) |
| Amounts in thousands |
| Twelve Months Ended | ||||||||||||||||||||||||
| December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
| Average | Interest / | Yield / | Average | Interest / | Yield / | |||||||||||||||||||
| Balance | Dividends | Cost | Balance | Dividends | Cost | |||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||||||
| Loans, including loans held for sale | $ | 631,743 | $ | 27,875 | 4.41 | % | $ | 435,799 | $ | 20,843 | 4.78 | % | ||||||||||||
| Securities - taxable | 151,967 | 3,036 | 2.00 | % | 137,230 | 2,891 | 2.11 | % | ||||||||||||||||
| Securities - non-taxable | 1,785 | 58 | 3.25 | % | 43,620 | 1,611 | 3.69 | % | ||||||||||||||||
| Other earning assets | 56,094 | 246 | 0.44 | % | 37,785 | 191 | 0.51 | % | ||||||||||||||||
| Total interest-earning assets | 841,589 | 31,215 | 3.71 | % | 654,434 | 25,536 | 3.90 | % | ||||||||||||||||
| Allowance for loan losses | (5,414 | ) | (5,573 | ) | ||||||||||||||||||||
| Noninterest earning-assets | 36,128 | 35,719 | ||||||||||||||||||||||
| Total assets | $ | 872,303 | $ | 684,580 | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||
| Regular savings accounts | $ | 18,509 | $ | 109 | 0.59 | % | $ | 13,806 | $ | 81 | 0.59 | % | ||||||||||||
| Interest-bearing demand deposits | 70,362 | 386 | 0.55 | % | 68,366 | 376 | 0.55 | % | ||||||||||||||||
| Money market accounts | 269,271 | 1,965 | 0.73 | % | 224,383 | 1,666 | 0.74 | % | ||||||||||||||||
| Certificates and brokered deposits | 350,129 | 5,193 | 1.48 | % | 260,549 | 4,738 | 1.82 | % | ||||||||||||||||
| Total interest-bearing deposits | 708,271 | 7,653 | 1.08 | % | 567,104 | 6,861 | 1.21 | % | ||||||||||||||||
| Other borrowed funds | 45,425 | 1,275 | 2.81 | % | 31,471 | 1,227 | 3.90 | % | ||||||||||||||||
| Total interest-bearing liabilities | 753,696 | 8,928 | 1.18 | % | 598,575 | 8,088 | 1.35 | % | ||||||||||||||||
| Noninterest-bearing deposits | 20,028 | 13,605 | ||||||||||||||||||||||
| Other noninterest-bearing liabilities | 4,783 | 7,696 | ||||||||||||||||||||||
| Total liabilities | 778,507 | 619,876 | ||||||||||||||||||||||
| Shareholders' equity | 93,796 | 64,704 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 872,303 | $ | 684,580 | ||||||||||||||||||||
| Net interest income | $ | 22,287 | $ | 17,448 | ||||||||||||||||||||
| Interest rate spread | 2.53 | % | 2.55 | % | ||||||||||||||||||||
| Net interest margin | 2.65 | % | 2.67 | % | ||||||||||||||||||||
| First Internet Bancorp |
| Loans and Deposits (unaudited) |
| Amounts in thousands |
| December 31, 2014 | September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||
| Commercial loans | ||||||||||||||||||||||||
| Commercial and industrial | $ | 77,232 | 10.5 | % | $ | 72,099 | 10.4 | % | $ | 55,168 | 11.0 | % | ||||||||||||
| Owner-occupied commercial real estate | 34,295 | 4.7 | % | 31,637 | 4.5 | % | 18,165 | 3.6 | % | |||||||||||||||
| Investor commercial real estate | 22,069 | 3.0 | % | 20,567 | 3.0 | % | 26,574 | 5.3 | % | |||||||||||||||
| Construction | 24,883 | 3.4 | % | 17,936 | 2.6 | % | 28,200 | 5.6 | % | |||||||||||||||
| Credit tenant lease financing | 192,608 | 26.3 | % | 165,738 | 23.8 | % | 84,173 | 16.8 | % | |||||||||||||||
| Total commercial loans | 351,087 | 47.9 | % | 307,977 | 44.3 | % | 212,280 | 42.3 | % | |||||||||||||||
| Consumer loans | ||||||||||||||||||||||||
| Residential mortgage | 220,612 | 30.1 | % | 220,499 | 31.7 | % | 138,418 | 27.6 | % | |||||||||||||||
| Home equity | 58,434 | 8.0 | % | 61,799 | 8.9 | % | 37,906 | 7.6 | % | |||||||||||||||
| Trailers | 63,288 | 8.7 | % | 65,085 | 9.3 | % | 68,991 | 13.8 | % | |||||||||||||||
| Recreational vehicles | 30,605 | 4.2 | % | 31,591 | 4.5 | % | 34,738 | 6.9 | % | |||||||||||||||
| Other consumer loans | 3,201 | 0.4 | % | 3,398 | 0.5 | % | 3,833 | 0.8 | % | |||||||||||||||
| Total consumer loans | 376,140 | 51.4 | % | 382,372 | 54.9 | % | 283,886 | 56.7 | % | |||||||||||||||
| Net deferred loan fees, premiums and discounts | 5,199 | 0.7 | % | 5,580 | 0.8 | % | 4,987 | 1.0 | % | |||||||||||||||
| Total loans receivable | $ | 732,426 | 100.0 | % | $ | 695,929 | 100.0 | % | $ | 501,153 | 100.0 | % | ||||||||||||
| December 31, 2014 | September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||
| Deposits | ||||||||||||||||||||||||
| Regular savings accounts | $ | 20,776 | 2.7 | % | $ | 17,503 | 2.4 | % | $ | 14,330 | 2.1 | % | ||||||||||||
| Noninterest-bearing deposits | 21,790 | 2.9 | % | 20,359 | 2.8 | % | 19,386 | 2.9 | % | |||||||||||||||
| Interest-bearing demand deposits | 74,238 | 9.8 | % | 71,762 | 9.7 | % | 73,748 | 11.0 | % | |||||||||||||||
| Money market accounts | 267,046 | 35.2 | % | 275,901 | 37.4 | % | 255,169 | 37.9 | % | |||||||||||||||
| Certificates of deposits | 361,202 | 47.6 | % | 334,636 | 45.3 | % | 292,685 | 43.5 | % | |||||||||||||||
| Brokered deposits | 13,546 | 1.8 | % | 17,809 | 2.4 | % | 17,777 | 2.6 | % | |||||||||||||||
| Total deposits | $ | 758,598 | 100.0 | % | $ | 737,970 | 100.0 | % | $ | 673,095 | 100.0 | % | ||||||||||||
| First Internet Bancorp |
| Reconciliation of Non-GAAP Financial Measures |
| Amounts in thousands, except per share data |
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
| Total equity - GAAP | $ | 96,785 | $ | 94,774 | $ | 90,908 | $ | 96,785 | $ | 90,908 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Goodwill | (4,687 | ) | (4,687 | ) | (4,687 | ) | (4,687 | ) | (4,687 | ) | ||||||||||
| Tangible common equity | $ | 92,098 | $ | 90,087 | $ | 86,221 | $ | 92,098 | $ | 86,221 | ||||||||||
| Total assets - GAAP | $ | 970,503 | $ | 926,883 | $ | 802,342 | $ | 970,503 | $ | 802,342 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Goodwill | (4,687 | ) | (4,687 | ) | (4,687 | ) | (4,687 | ) | (4,687 | ) | ||||||||||
| Tangible assets | $ | 965,816 | $ | 922,196 | $ | 797,655 | $ | 965,816 | $ | 797,655 | ||||||||||
| Common shares outstanding | 4,439,575 | 4,439,575 | 4,448,326 | 4,439,575 | 4,448,326 | |||||||||||||||
| Book value per common share | $ | 21.80 | $ | 21.35 | $ | 20.44 | $ | 21.80 | $ | 20.44 | ||||||||||
| Effect of adjustment | (1.06 | ) | (1.06 | ) | (1.06 | ) | (1.06 | ) | (1.06 | ) | ||||||||||
| Tangible book value per common share | $ | 20.74 | $ | 20.29 | $ | 19.38 | $ | 20.74 | $ | 19.38 | ||||||||||
| Total shareholders' equity to assets ratio | 9.97 | % | 10.23 | % | 11.33 | % | 9.97 | % | 11.33 | % | ||||||||||
| Effect of adjustment | (0.43 | )% | (0.46 | )% | (0.52 | )% | (0.43 | )% | (0.52 | )% | ||||||||||
| Tangible common equity to tangible assets ratio | 9.54 | % | 9.77 | % | 10.81 | % | 9.54 | % | 10.81 | % | ||||||||||
| Total average equity - GAAP | $ | 95,832 | $ | 94,840 | $ | 73,674 | $ | 93,796 | $ | 64,704 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Average goodwill | (4,687 | ) | (4,687 | ) | (4,687 | ) | (4,687 | ) | (4,687 | ) | ||||||||||
| Average tangible common equity | $ | 91,145 | $ | 90,153 | $ | 68,987 | $ | 89,109 | $ | 60,017 | ||||||||||
| Return on average shareholders' equity | 6.07 | % | 5.36 | % | 3.59 | % | 4.61 | % | 7.10 | % | ||||||||||
| Effect of adjustment | 0.31 | % | 0.28 | % | 0.24 | % | 0.24 | % | 0.55 | % | ||||||||||
| Return on average tangible common equity | 6.38 | % | 5.64 | % | 3.83 | % | 4.85 | % | 7.65 | % | ||||||||||