Attached files
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| 8-K - FORM 8-K - First Internet Bancorp | v408084_8k.htm |
Exhibit 99.1
First Internet Bancorp Reports Record Quarterly Net Income
Quarterly earnings per share of $0.46, up 43.8% from fourth quarter 2014
and up 253.8% from first quarter 2014
Indianapolis, Indiana, April 23, 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 first quarter 2015.
First quarter net income was a record $2.1 million and diluted earnings per share were $0.46. This compares with fourth quarter 2014 net income of $1.5 million and diluted earnings per share of $0.32 and first quarter 2014 net income of $0.6 million and diluted earnings per share of $0.13.
David Becker, Chairman, President and Chief Executive Officer, commented, “Thanks to the hard work and dedication of our talented teams, we produced earnings growth for the fourth consecutive quarter. With focus and shared vision, we reached two significant milestones during the quarter.
“First, we surpassed $1.0 billion in total assets. As our organization grows, we expect to realize economies of scale that should allow us to generate higher returns. We continued our trend of strong loan growth as our commercial lending teams had another excellent quarter of production. Our investment in commercial lending is paying strong dividends, as commercial balances have increased $152.1 million, or 62.6%, over the past year and now represent more than 50% of our total loans. The commercial pipeline at the end of the first quarter is higher than it was at the end of the fourth quarter and looks extremely strong, leaving us optimistic about our ability to continue generating high quality assets. Furthermore, we generated strong deposit growth as balances increased $62.6 million, or 8.2%, and drove balance sheet expansion during the quarter.
“Second, we achieved a record level of quarterly net income, with quarterly earnings per share growth of 43.8% and significantly improved profitability compared to the fourth quarter 2014. Loan growth drove net interest income higher while operating expenses, excluding seasonal and equity-related compensation costs, were essentially flat quarter-over-quarter.”
Highlights for the first quarter 2015 included:
| § | Diluted earnings per share increased $0.14, or 43.8%, compared to the linked quarter and $0.33, or 253.8%, compared to the first quarter 2014 |
| § | Improved quarterly performance |
| · | Return on average assets of 0.84% compared to 0.62% in the linked quarter and 0.30% in the first quarter 2014 |
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| · | Return on average shareholders’ equity of 8.55% compared to 6.07% in the linked quarter and 2.64% in the first quarter 2014 |
| · | Return on average tangible common equity of 8.98% compared to 6.38% in the linked quarter and 2.79% in the first quarter 2014 |
| § | Continued strong revenue growth |
| · | Net interest income increased $0.4 million, or 6.3%, compared to the linked quarter and $1.9 million, or 39.2%, compared to the first quarter 2014 |
| · | Mortgage banking revenue increased $1.0 million, or 56.7%, compared to the linked quarter and $2.0 million, or 220.7%, compared to the first quarter 2014 |
| § | Total loan growth of $35.3 million, or 4.8%, compared to December 31, 2014 and $235.4 million, or 44.2%, compared to March 31, 2014 |
| · | Continued strong performance in single tenant lease financing with balances increasing $34.6 million, or 18.0%, compared to the linked quarter and $121.4 million, or 114.7%, compared to March 31, 2014 |
| · | C&I and owner-occupied CRE balances increased $10.9 million on a combined basis, or 9.7%, compared to the linked quarter and $34.0 million, or 38.5%, compared to March 31, 2014 |
| § | Net interest margin (“NIM”) increased to 2.84%, or 6 bps compared to the linked quarter and 33 bps compared to the first quarter 2014 |
| · | NIM benefited from the recapture of $0.1 million of interest related to a loan recovery during the quarter |
| · | NIM was negatively impacted by the conversion of $40.0 million of variable rate short term borrowings to long term fixed rate funding |
| § | Capital levels remain solid and continue to support loan growth |
| · | Tangible common equity to tangible assets of 9.18% |
| · | Common equity tier 1 capital ratio of 11.99% |
| · | Tier 1 capital ratio of 11.99% |
| · | Total risk-based capital ratio of 13.18% |
| § | Asset quality remains strong |
| · | Nonperforming loans to total loans receivable declined to 0.03% from 0.04% and nonperforming assets to total assets declined to 0.47% from 0.50% compared to the linked quarter. |
| · | The allowance for loan losses (“ALLL”) increased $0.6 million, or 10%, compared to the linked quarter with the ratio of ALLL to total loans increasing to 0.83% compared to 0.79% as of December 31, 2014. |
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Net Interest Income and Net Interest Margin
Net interest income for the first quarter was $6.8 million compared to $6.4 million for the fourth quarter 2014 and $4.9 million for the first quarter 2014. Compared to the linked quarter, total interest income increased $0.6 million, or 6.5%, and total interest expense increased $0.2 million, or 7.3%. The increase in total interest income was driven by a $37.4 million, or 5.3%, increase in average loans receivable and an increase in the yield earned on the loan portfolio as well as a $15.5 million, or 12.0%, increase in the average balance of securities available for sale and an increase in the yield earned on the securities portfolio. Total interest income also benefited from the recapture of $0.1 million of interest related to a loan recovery during the quarter.
The increase in interest expense during the quarter was due primarily to an increase in the cost of funds related to advances from the Federal Home Loan Bank. Early in the first quarter, $40.0 million of variable rate short term advances were converted to longer term funding with a six year maturity and a cost of funds of 1.67%. Additionally, interest expense related to deposits increased modestly due to a $36.2 million, or 5.0%, increase in the average balance of interest-bearing deposits.
Net interest margin was 2.84% for the first quarter compared to 2.78% for the fourth quarter 2014 and 2.51% for the first quarter 2014. Compared to the prior quarter, the yield on interest-earning assets increased 9 bps to 3.85%. Excluding the impact of the interest income associated with the loan recovery, the yield on interest-earning assets increased 3 bps to 3.79% compared to the prior quarter, driven by higher yields earned on commercial loans and investment securities, partially offset by lower yields on consumer loans and mortgage loans held for sale. The cost of interest-bearing liabilities during the quarter increased 3 bps to 1.12% driven primarily by the increase in the cost of funds related to Federal Home Loan Bank advances, offset by a slight decline in deposit funding costs.
Noninterest Income
Noninterest income for the first quarter was $3.1 million compared to $2.1 million for the fourth quarter 2014 and $1.5 million for the first quarter 2014. The increase of $1.0 million, or 50.0%, compared to the linked quarter was driven by an increase of $1.0 million, or 56.7%, in mortgage banking revenue resulting from an improvement in gain on sale margin and higher origination volumes.
Noninterest Expense
Noninterest expense for the first quarter was $6.3 million compared to $5.9 million for the fourth quarter 2014 and $5.4 million for the first quarter 2014. The increase of $0.4 million, or 6.4%, compared to the linked quarter was due to higher salaries and employee benefits and marketing expenses. The increase in salaries and employee benefits was driven primarily by equity compensation expense and seasonal resets on payroll taxes and other employee benefits. The increase in marketing expense was due primarily to higher online channel origination costs resulting from increased mortgage activity.
Income Taxes
Income tax expense was $1.2 million for the first quarter, resulting in an effective tax rate of 36.0%, compared to $0.7 million and an effective tax rate of 33.6% for the linked quarter and $0.2 million and an effective tax rate of 24.2% for the first quarter 2014. The increase in the effective tax rate compared to the linked quarter was due primarily to additional income tax expense associated with the vesting of certain equity compensation awards.
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Loans and Credit Quality
Total loans as of March 31, 2015 were $767.7 million, increasing $35.3 million, or 4.8%, compared to December 31, 2014 and $235.4 million, or 44.2%, compared to March 31, 2014. Total commercial loans increased $43.9 million, or 12.5%, compared to the linked quarter driven by continued strong production in single tenant lease financing as well as solid growth in the commercial and industrial and owner-occupied commercial real estate portfolios.
Credit quality continues to remain strong as nonperforming loans to total loans receivable declined to 0.03% from 0.04% as of December 31, 2014 and 0.25% as of March 31, 2014. Additionally, nonperforming assets to total assets declined to 0.47% from 0.50% as of December 31, 2014 and 0.81% as of March 31, 2014. The allowance for loan losses was $6.4 million as of March 31, 2015 compared to $5.8 million as of December 31, 2014 and $5.4 million as of March 31, 2014. The allowance as a percentage of total nonperforming loans increased to 2,592.7% as of March 31, 2015 from 1,959.5% as of December 31, 2014 and 398.5% as of March 31, 2014.
Net recoveries of $0.1 million were recognized during the first quarter, resulting in net recoveries to average loans of 0.07% compared to net charge-offs to average loans of 0.03% for the fourth quarter 2014 and 0.15% for the first quarter 2014. The net recoveries during the first quarter were driven by a $0.4 million recovery of a residential mortgage loan, of which $0.3 million related to the recapture of principal previously charged off.
Capital
During the first quarter, total shareholders’ equity increased $2.6 million due primarily 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 March 31, 2015, the Company’s common equity tier 1, tier 1 and total risk-based capital ratios declined to 11.99%, 11.99% and 13.18% from 12.55%, 12.55% and 13.75% as of December 31, 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 36 bps during the first quarter to 9.18% due to strong asset growth while tangible book value per share increased to $21.11 from $20.74 as of December 31, 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 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.
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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 | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2015 | 2014 | 2014 | ||||||||||
| Net income | $ | 2,063 | $ | 1,465 | $ | 600 | ||||||
| Per share and share information | ||||||||||||
| Earnings per share - basic | $ | 0.46 | $ | 0.33 | $ | 0.13 | ||||||
| Earnings per share - diluted | 0.46 | 0.32 | 0.13 | |||||||||
| Dividends declared per share | 0.06 | 0.06 | 0.06 | |||||||||
| Book value per common share | 22.16 | 21.80 | 20.60 | |||||||||
| Tangible book value per common share | 21.11 | 20.74 | 19.54 | |||||||||
| Common shares outstanding | 4,484,513 | 4,439,575 | 4,449,619 | |||||||||
| Average common shares outstanding: | ||||||||||||
| Basic | 4,516,776 | 4,499,316 | 4,494,670 | |||||||||
| Diluted | 4,523,246 | 4,514,505 | 4,501,705 | |||||||||
| Performance ratios | ||||||||||||
| Return on average assets | 0.84 | % | 0.62 | % | 0.30 | % | ||||||
| Return on average shareholders' equity | 8.55 | % | 6.07 | % | 2.64 | % | ||||||
| Return on average tangible common equity | 8.98 | % | 6.38 | % | 2.79 | % | ||||||
| Net interest margin | 2.84 | % | 2.78 | % | 2.51 | % | ||||||
| Capital ratios 1 | ||||||||||||
| Tangible common equity to tangible assets | 9.18 | % | 9.54 | % | 10.31 | % | ||||||
| Tier 1 leverage ratio | 9.52 | % | 9.87 | % | 10.88 | % | ||||||
| Common equity tier 1 capital ratio | 11.99 | % | 12.55 | % | 15.14 | % | ||||||
| Tier 1 capital ratio | 11.99 | % | 12.55 | % | 15.14 | % | ||||||
| Total risk-based capital ratio | 13.18 | % | 13.75 | % | 16.57 | % | ||||||
| Asset quality | ||||||||||||
| Nonperforming loans | $ | 246 | $ | 296 | $ | 1,352 | ||||||
| Nonperforming assets | 4,818 | 4,866 | 6,912 | |||||||||
| Nonperforming loans to loans receivable | 0.03 | % | 0.04 | % | 0.25 | % | ||||||
| Nonperforming assets to total assets | 0.47 | % | 0.50 | % | 0.81 | % | ||||||
| Allowance for loan losses to: | ||||||||||||
| Loans receivable | 0.83 | % | 0.79 | % | 1.01 | % | ||||||
| Nonperforming loans | 2,592.7 | % | 1,959.5 | % | 398.5 | % | ||||||
| Net charge-offs (recoveries) to average | ||||||||||||
| loans receivable | (0.07 | %) | 0.03 | % | 0.15 | % | ||||||
| Average balance sheet information | ||||||||||||
| Loans receivable | $ | 745,454 | $ | 708,053 | $ | 515,946 | ||||||
| Securities available for sale | 145,241 | 129,692 | 151,454 | |||||||||
| Other earning assets | 41,643 | 34,242 | 97,432 | |||||||||
| Total interest-earning assets | 967,186 | 909,495 | 786,506 | |||||||||
| Total assets | 995,851 | 938,685 | 819,010 | |||||||||
| Noninterest-bearing deposits | 22,265 | 21,118 | 18,159 | |||||||||
| Interest-bearing deposits | 761,917 | 725,740 | 679,962 | |||||||||
| Total deposits | 784,182 | 746,858 | 698,121 | |||||||||
| Shareholders' equity | 97,844 | 95,832 | 92,054 | |||||||||
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, 2014)
Amounts in thousands
| March 31, | December 31, | March 31, | ||||||||||
| 2015 | 2014 | 2014 | ||||||||||
| Assets | ||||||||||||
| Cash and due from banks | $ | 1,472 | $ | 1,940 | $ | 2,762 | ||||||
| Interest-bearing demand deposits | 38,100 | 26,349 | 54,698 | |||||||||
| Interest-bearing time deposits | 2,000 | 2,000 | 2,500 | |||||||||
| Securities available for sale, at fair value | 163,676 | 137,518 | 204,869 | |||||||||
| Loans held-for-sale | 27,584 | 34,671 | 17,273 | |||||||||
| Loans receivable | 767,682 | 732,426 | 532,249 | |||||||||
| Allowance for loan losses | (6,378 | ) | (5,800 | ) | (5,388 | ) | ||||||
| Net loans receivable | 761,304 | 726,626 | 526,861 | |||||||||
| Accrued interest receivable | 3,040 | 2,833 | 2,662 | |||||||||
| Federal Home Loan Bank of Indianapolis stock | 5,350 | 5,350 | 2,943 | |||||||||
| Cash surrender value of bank-owned life insurance | 12,423 | 12,325 | 12,031 | |||||||||
| Premises and equipment, net | 7,040 | 7,061 | 6,836 | |||||||||
| Goodwill | 4,687 | 4,687 | 4,687 | |||||||||
| Other real estate owned | 4,488 | 4,488 | 4,651 | |||||||||
| Accrued income and other assets | 4,513 | 4,655 | 5,346 | |||||||||
| Total assets | $ | 1,035,677 | $ | 970,503 | $ | 848,119 | ||||||
| Liabilities | ||||||||||||
| Non-interest bearing deposits | $ | 19,178 | $ | 21,790 | $ | 17,047 | ||||||
| Interest-bearing deposits | 801,991 | 736,808 | 710,605 | |||||||||
| Total deposits | 821,169 | 758,598 | 727,652 | |||||||||
| Advances from Federal Home Loan Bank | 106,921 | 106,897 | 21,819 | |||||||||
| Subordinated debt | 2,894 | 2,873 | 2,809 | |||||||||
| Accrued interest payable | 104 | 97 | 83 | |||||||||
| Accrued expenses and other liabilities | 5,227 | 5,253 | 4,112 | |||||||||
| Total liabilities | 936,315 | 873,718 | 756,475 | |||||||||
| Shareholders' equity | ||||||||||||
| Voting common stock | 72,032 | 71,774 | 71,378 | |||||||||
| Retained earnings | 26,938 | 25,146 | 22,233 | |||||||||
| Accumulated other comprehensive income (loss) | 392 | (135 | ) | (1,967 | ) | |||||||
| Total shareholders' equity | 99,362 | 96,785 | 91,644 | |||||||||
| Total liabilities and shareholders' equity | $ | 1,035,677 | $ | 970,503 | $ | 848,119 | ||||||
First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited)
Amounts in thousands, except per share data
| Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2015 | 2014 | 2014 | ||||||||||
| Interest income | ||||||||||||
| Loans | $ | 8,390 | $ | 7,957 | $ | 6,129 | ||||||
| Securities - taxable | 722 | 615 | 750 | |||||||||
| Securities - non-taxable | - | - | 58 | |||||||||
| Other earning assets | 75 | 51 | 96 | |||||||||
| Total interest income | 9,187 | 8,623 | 7,033 | |||||||||
| Interest expense | ||||||||||||
| Deposits | 1,953 | 1,913 | 1,860 | |||||||||
| Other borrowed funds | 460 | 335 | 307 | |||||||||
| Total interest expense | 2,413 | 2,248 | 2,167 | |||||||||
| Net interest income | 6,774 | 6,375 | 4,866 | |||||||||
| Provision for loan losses | 442 | 387 | 147 | |||||||||
| Net interest income after provision | ||||||||||||
| for loan losses | 6,332 | 5,988 | 4,719 | |||||||||
| Noninterest income | ||||||||||||
| Service charges and fees | 176 | 174 | 167 | |||||||||
| Mortgage banking activities | 2,886 | 1,842 | 900 | |||||||||
| Gain on sale of securities | - | - | 359 | |||||||||
| Loss on asset disposals | (14 | ) | (19 | ) | (13 | ) | ||||||
| Other | 100 | 101 | 98 | |||||||||
| Total noninterest income | 3,148 | 2,098 | 1,511 | |||||||||
| Noninterest expense | ||||||||||||
| Salaries and employee benefits | 3,578 | 3,129 | 3,007 | |||||||||
| Marketing, advertising and promotion | 452 | 307 | 380 | |||||||||
| Consulting and professional fees | 592 | 595 | 433 | |||||||||
| Data processing | 248 | 277 | 234 | |||||||||
| Loan expenses | 181 | 168 | 114 | |||||||||
| Premises and equipment | 642 | 733 | 701 | |||||||||
| Deposit insurance premium | 150 | 154 | 144 | |||||||||
| Other | 414 | 516 | 425 | |||||||||
| Total noninterest expense | 6,257 | 5,879 | 5,438 | |||||||||
| Income before income taxes | 3,223 | 2,207 | 792 | |||||||||
| Income tax provision | 1,160 | 742 | 192 | |||||||||
| Net income | $ | 2,063 | $ | 1,465 | $ | 600 | ||||||
| Per common share data | ||||||||||||
| Earnings per share - basic | $ | 0.46 | $ | 0.33 | $ | 0.13 | ||||||
| Earnings per share - diluted | $ | 0.46 | $ | 0.32 | $ | 0.13 | ||||||
| Dividends declared per share | $ | 0.06 | $ | 0.06 | $ | 0.06 | ||||||
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 | ||||||||||||||||||||||||||||||||||||
| March 31, 2015 | December 31, 2014 | March 31, 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 | $ | 780,302 | $ | 8,390 | 4.36 | % | $ | 745,561 | $ | 7,957 | 4.23 | % | $ | 537,620 | $ | 6,129 | 4.62 | % | ||||||||||||||||||
| Securities - taxable | 145,241 | 722 | 2.02 | % | 129,692 | 615 | 1.88 | % | 144,213 | 750 | 2.11 | % | ||||||||||||||||||||||||
| Securities - non-taxable | - | - | 0.00 | % | - | - | 0.00 | % | 7,241 | 58 | 3.25 | % | ||||||||||||||||||||||||
| Other earning assets | 41,643 | 75 | 0.73 | % | 34,242 | 51 | 0.59 | % | 97,432 | 96 | 0.40 | % | ||||||||||||||||||||||||
| Total interest-earning assets | 967,186 | 9,187 | 3.85 | % | 909,495 | 8,623 | 3.76 | % | 786,506 | 7,033 | 3.63 | % | ||||||||||||||||||||||||
| Allowance for loan losses | (5,883 | ) | (5,535 | ) | (5,450 | ) | ||||||||||||||||||||||||||||||
| Noninterest earning-assets | 34,548 | 34,725 | 37,954 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 995,851 | $ | 938,685 | $ | 819,010 | ||||||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||
| Regular savings accounts | $ | 22,099 | $ | 32 | 0.59 | % | $ | 19,545 | $ | 29 | 0.59 | % | $ | 18,541 | $ | 28 | 0.61 | % | ||||||||||||||||||
| Interest-bearing demand deposits | 75,405 | 102 | 0.55 | % | 68,968 | 95 | 0.55 | % | 70,347 | 95 | 0.55 | % | ||||||||||||||||||||||||
| Money market accounts | 274,312 | 492 | 0.73 | % | 274,015 | 502 | 0.73 | % | 262,982 | 474 | 0.73 | % | ||||||||||||||||||||||||
| Certificates and brokered deposits | 390,101 | 1,327 | 1.38 | % | 363,212 | 1,287 | 1.41 | % | 328,092 | 1,263 | 1.56 | % | ||||||||||||||||||||||||
| Total interest-bearing deposits | 761,917 | 1,953 | 1.04 | % | 725,740 | 1,913 | 1.05 | % | 679,962 | 1,860 | 1.11 | % | ||||||||||||||||||||||||
| Other borrowed funds | 109,787 | 460 | 1.70 | % | 91,700 | 335 | 1.45 | % | 25,156 | 307 | 4.95 | % | ||||||||||||||||||||||||
| Total interest-bearing liabilities | 871,704 | 2,413 | 1.12 | % | 817,440 | 2,248 | 1.09 | % | 705,118 | 2,167 | 1.25 | % | ||||||||||||||||||||||||
| Noninterest-bearing deposits | 22,265 | 21,118 | 18,159 | |||||||||||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 4,038 | 4,295 | 3,679 | |||||||||||||||||||||||||||||||||
| Total liabilities | 898,007 | 842,853 | 726,956 | |||||||||||||||||||||||||||||||||
| Shareholders' equity | 97,844 | 95,832 | 92,054 | |||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 995,851 | $ | 938,685 | $ | 819,010 | ||||||||||||||||||||||||||||||
| Net interest income | $ | 6,774 | $ | 6,375 | $ | 4,866 | ||||||||||||||||||||||||||||||
| Interest rate spread | 2.73 | % | 2.67 | % | 2.38 | % | ||||||||||||||||||||||||||||||
| Net interest margin | 2.84 | % | 2.78 | % | 2.51 | % | ||||||||||||||||||||||||||||||
First Internet Bancorp
Loans and Deposits (unaudited)
Amounts in thousands
| March 31, 2015 | December 31, 2014 | March 31, 2014 | ||||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||
| Commercial loans | ||||||||||||||||||||||||
| Commercial and industrial | $ | 83,849 | 11.0 | % | $ | 77,232 | 10.5 | % | $ | 63,373 | 11.9 | % | ||||||||||||
| Owner-occupied commercial real estate | 38,536 | 5.0 | % | 34,295 | 4.7 | % | 24,976 | 4.7 | % | |||||||||||||||
| Investor commercial real estate | 18,491 | 2.4 | % | 22,069 | 3.0 | % | 26,219 | 4.9 | % | |||||||||||||||
| Construction | 26,847 | 3.5 | % | 24,883 | 3.4 | % | 22,460 | 4.2 | % | |||||||||||||||
| Single tenant lease financing | 227,229 | 29.6 | % | 192,608 | 26.3 | % | 105,847 | 19.9 | % | |||||||||||||||
| Total commercial loans | 394,952 | 51.5 | % | 351,087 | 47.9 | % | 242,875 | 45.6 | % | |||||||||||||||
| Consumer loans | ||||||||||||||||||||||||
| Residential mortgage | 215,910 | 28.1 | % | 220,612 | 30.1 | % | 143,355 | 26.9 | % | |||||||||||||||
| Home equity | 54,838 | 7.2 | % | 58,434 | 8.0 | % | 36,676 | 6.9 | % | |||||||||||||||
| Trailers | 63,638 | 8.3 | % | 63,288 | 8.7 | % | 67,340 | 12.7 | % | |||||||||||||||
| Recreational vehicles | 31,023 | 4.0 | % | 30,605 | 4.2 | % | 33,892 | 6.4 | % | |||||||||||||||
| Other consumer loans | 2,531 | 0.3 | % | 3,201 | 0.4 | % | 3,462 | 0.6 | % | |||||||||||||||
| Total consumer loans | 367,940 | 47.9 | % | 376,140 | 51.4 | % | 284,725 | 53.5 | % | |||||||||||||||
| Net deferred loan fees, premiums and discounts | 4,790 | 0.6 | % | 5,199 | 0.7 | % | 4,649 | 0.9 | % | |||||||||||||||
| Total loans receivable | $ | 767,682 | 100.0 | % | $ | 732,426 | 100.0 | % | $ | 532,249 | 100.0 | % | ||||||||||||
| March 31, 2015 | December 31, 2014 | March 31, 2014 | ||||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||
| Deposits | ||||||||||||||||||||||||
| Regular savings accounts | $ | 23,367 | 2.8 | % | $ | 20,776 | 2.7 | % | $ | 21,790 | 3.0 | % | ||||||||||||
| Noninterest-bearing deposits | 19,178 | 2.3 | % | 21,790 | 2.9 | % | 17,047 | 2.3 | % | |||||||||||||||
| Interest-bearing demand deposits | 82,982 | 10.1 | % | 74,238 | 9.8 | % | 76,447 | 10.5 | % | |||||||||||||||
| Money market accounts | 280,740 | 34.2 | % | 267,046 | 35.2 | % | 271,698 | 37.3 | % | |||||||||||||||
| Certificates of deposits | 401,347 | 48.9 | % | 361,202 | 47.6 | % | 322,883 | 44.4 | % | |||||||||||||||
| Brokered deposits | 13,555 | 1.7 | % | 13,546 | 1.8 | % | 17,787 | 2.5 | % | |||||||||||||||
| Total deposits | $ | 821,169 | 100.0 | % | $ | 758,598 | 100.0 | % | $ | 727,652 | 100.0 | % | ||||||||||||
First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Amounts in thousands, except per share data
| Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2015 | 2014 | 2014 | ||||||||||
| Total equity - GAAP | $ | 99,362 | $ | 96,785 | $ | 91,644 | ||||||
| Adjustments: | ||||||||||||
| Goodwill | (4,687 | ) | (4,687 | ) | (4,687 | ) | ||||||
| Tangible common equity | $ | 94,675 | $ | 92,098 | $ | 86,957 | ||||||
| Total assets - GAAP | $ | 1,035,677 | $ | 970,503 | $ | 848,119 | ||||||
| Adjustments: | ||||||||||||
| Goodwill | (4,687 | ) | (4,687 | ) | (4,687 | ) | ||||||
| Tangible assets | $ | 1,030,990 | $ | 965,816 | $ | 843,432 | ||||||
| Common shares outstanding | 4,484,513 | 4,439,575 | 4,449,619 | |||||||||
| Book value per common share | $ | 22.16 | $ | 21.80 | $ | 20.60 | ||||||
| Effect of goodwill | (1.05 | ) | (1.06 | ) | (1.06 | ) | ||||||
| Tangible book value per common share | $ | 21.11 | $ | 20.74 | $ | 19.54 | ||||||
| Total shareholders' equity to assets ratio | 9.59 | % | 9.97 | % | 10.81 | % | ||||||
| Effect of goodwill | (0.41 | %) | (0.43 | %) | (0.50 | %) | ||||||
| Tangible common equity to tangible assets ratio | 9.18 | % | 9.54 | % | 10.31 | % | ||||||
| Total average equity - GAAP | $ | 97,844 | $ | 95,832 | $ | 92,054 | ||||||
| Adjustments: | ||||||||||||
| Average goodwill | (4,687 | ) | (4,687 | ) | (4,687 | ) | ||||||
| Average tangible common equity | $ | 93,157 | $ | 91,145 | $ | 87,367 | ||||||
| Return on average shareholders' equity | 8.55 | % | 6.07 | % | 2.64 | % | ||||||
| Effect of goodwill | 0.43 | % | 0.31 | % | 0.15 | % | ||||||
| Return on average tangible common equity | 8.98 | % | 6.38 | % | 2.79 | % | ||||||