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First Internet Bancorp
Investor Presentation
Third Quarter 2016
Exhibit 99.1
Forward Looking Statement
This presentation 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 presentation, 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.
2
Non-GAAP Financial Measures
3
This presentation 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, tangible common equity to tangible assets, adjusted net income, adjusted net charge-offs
(recoveries), adjusted diluted earnings per share, adjusted net charge-offs (recoveries) to average loans,
adjusted return on average assets, adjusted return on average shareholders’ equity and adjusted return on
average tangible common equity 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 presentation under the caption “Reconciliation
of Non-GAAP Financial Measures.”
Performance Summary
4
Strong balance sheet growth has driven increased earnings and consistent growth in tangible
book value per share
Diluted Earnings Per Share Pre-Tax, Pre-Provision Earnings Tangible Book Value Per Share1
Total Assets Total Loans Total Deposits
$0.32
$0.46
$0.50 $0.51 $0.50
$0.53
$0.57
$0.55
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
$2,594
$3,665 $3,721
$4,006 $4,219
$4,676
$5,179
$6,823
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
Dollars in thousands
$971
$1,036
$1,105
$1,166
$1,270
$1,528
$1,702
$1,824
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
Dollars in millions
$732
$768
$814
$877
$954
$1,041
$1,112
$1,199
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
Dollars in millions
$20.74
$21.11 $21.23
$21.90
$22.24
$22.93
$23.67
$23.94
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
$759
$821 $857
$900
$956
$1,243
$1,389
$1,494
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
Dollars in millions
1 See Reconciliation of Non-GAAP Financial Measures
Third Quarter 2016 Financial Highlights
Record quarterly net income of $3.1 million, increasing 33.4% compared to
3Q15
Quarterly diluted EPS of $0.55, increasing 7.8% compared to 3Q15
Results include the charge-off of a commercial loan, impacting pre-tax earnings
by $1.1 million and diluted EPS by $0.131
Adjusted for this item, net income was $3.8 million and diluted EPS was
$0.681
Quarterly ROAA of 0.71%; 0.88% excluding the charge-off above1
Quarterly ROATCE of 9.41%; 11.60% excluding the charge-off above1
Total year-over-year loan growth of $322.4 million, or 36.8%
Quarterly net interest income of $10.3 million, increasing 31.9% compared to
3Q15
5 1 See Reconciliation of Non-GAAP Financial Measures
Corporate Overview
Corporate Summary
First Internet Bank launched in 1999
First state-chartered FDIC-insured
Internet bank
Headquartered in Fishers, IN with an
office in Phoenix, AZ
Industry pioneer in branchless
delivery of consumer and commercial
banking services
Nationwide deposit and lending
footprint
Experienced management team
Strong balance sheet and earnings
growth
6
3Q16 Financial Information
Total assets $1.8 billion
Total loans $1.2 billion
Total deposits $1.5 billion
TCE / tangible assets 1 7.28%
NPLs / total loans 0.09%
ROAA 1 0.71%
ROATCE 1 9.41%
Market capitalization 2 $161.0 million
Dividend yield 2 0.8%
NASDAQ Global Select Market INBK
1 See Reconciliation of Non-GAAP Financial Measures
2 Market valuation data as of November 14, 2016
Differentiated Business Model
Nationwide consumer banking provider
Proven online / mobile retail deposit platform using scalable technology backed by
exceptional customer service
Low cost delivery channel creates customer value through competitive rates and low
fees
Commercial banking franchise focused on select local and national markets
7
National, award-winning online direct-to-consumer mortgage banking platform
National, niche consumer lending segments with strong yields and asset quality
Asset class and geographic diversity provides ability to generate top tier balance sheet
and revenue growth funded by a loyal, efficient and growing deposit base
Local National
C&I – Central Indiana
C&I – Arizona
Investor CRE – Central Indiana
Construction – Central Indiana
Single tenant lease financing
Strategic Objectives
Drive revenue growth and positive operating leverage
Achieve consistent strong profitability
Deploy capital in an accretive manner focused on building shareholder value
Capitalize on consumer trends by capturing greater deposit market share among
digital banking adopters
Maintain strong asset quality and focus on disciplined risk management
Expand asset generation channels to supplement growth and increase
profitability
Continue investing in technology to remain a digital banking leader and increase
efficiency
8
9
Corporate Recognition
First Internet Bank has been recognized for its innovation and is consistently ranked among
the best banks to work for, enhancing its ability to attract and retain top-level talent
TechPoint 2016 Mira Award “Tech-enabled
Company of the Year”
Top 10 finalist – 2016 Indiana Public Company of
the year presented by the CFA Society and FEI
American Banker’s “Best Banks to Work For”
2016
2015
2014
2013
Workplace Dynamics’ “Indianapolis Star Top
Workplaces”
2016
2015
2014
“Best Places to Work in Indiana”
2016
2013
Mortgage Technology 2013 awarded top honors
in the Online Mortgage Originator category
Total Assets Total Loans
Total Deposits Shareholders' Equity
$636
$802
$971
$1,270
$1,824
2012 2013 2014 2015 3Q16
Dollars in millions
$358
$501
$732
$954
$1,199
2012 2013 2014 2015 3Q16
Dollars in millions
$531
$673
$759
$956
$1,494
2012 2013 2014 2015 3Q16
Dollars in millions
$61
$91
$97
$104
$137
2012 2013 2014 2015 3Q16
Dollars in millions
Consistent Balance Sheet Growth
10
Execution of the business strategy is driving consistent and sustainable balance sheet growth
CAGR: 32.4% CAGR: 38.0%
CAGR: 31.8% CAGR: 24.1%
Five Year Balance Sheet Growth
Five year balance sheet growth rates far
exceed the median rates for similar
institutions
INBK growth over this period has been
primarily organic as opposed to through
acquisitions
11
Source: Company data and SNL Financial; financial data as of September 30, 2016;
peer data represents median value of component companies. SNL Micro Cap US
Banks represent publicly traded micro cap banks with a market capitalization of less
than $250 million; peer data based on index components as of September 30, 2016.
Five Year Total Asset Growth
Five Year Total Loan Growth Five Year Total Deposit Growth
256%
46%
INBK SNL Micro Cap US Banks
222%
35%
INBK SNL Micro Cap US Banks
225%
32%
INBK SNL Micro Cap US Banks
Earnings and Profitability
12
The Company remains focused on driving earnings growth and improving profitability
Net Income Net Interest Margin
Return on Average Assets Return on Average Tangible Common Equity1
$1,465
$2,063
$2,265 $2,323 $2,278
$2,432
$2,834
$3,098
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
Dollars in thousands 2.78% 2.84% 2.87% 2.84% 2.85% 2.78%
2.39% 2.42%
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
0.62%
0.84% 0.84% 0.82%
0.74% 0.72% 0.71% 0.71%
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
6.38%
8.98%
9.60% 9.58% 9.14% 9.63%
10.07%
9.41%
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
1 See Reconciliation of Non-GAAP Financial Measures
$8,473
$15,236
$5,879
$8,413
4Q14 3Q16
Net Interest Income + Noninterest Income Noninterest Expense
Dollars in thousands
$6,375
$10,338
$2,098
$4,898
4Q14 3Q16
Net Interest Income Noninterest Income
Dollars in thousands
Strong Revenue and Earnings Growth
13
Strong asset generation and re-focused mortgage banking activities combined with disciplined
expense management are driving revenue growth and positive operating leverage
Increase in quarterly noninterest expense: 43%
Increase in quarterly revenue: 80%
Increase in quarterly net interest income: 62%
LTM mortgage banking
revenue up 30% over prior
LTM period
Increasing Economies of Scale
14
Scalable, technology-driven model delivers increasing efficiency and is a key component driving
improved operating leverage
Noninterest Expense / Average Assets Efficiency Ratio
Total Revenue Per FTE Total Assets Per FTE
69.4%
63.1% 63.0%
60.8% 60.6% 60.0% 61.2%
55.2%
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
$59.3
$66.1 $64.8 $66.3
$70.5 $71.7 $72.8
$79.8
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
Dollars in thousands
$6.8 $6.9 $7.1
$7.6
$8.4
$9.4 $9.6 $9.5
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
Dollars in millions
2.48% 2.55%
2.34%
2.19% 2.11% 2.08%
1.98% 1.93%
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
Loan Portfolio Overview
15
Dollars in thousands 2013 2014 3Q15 4Q15 1Q16 2Q16 3Q16
Commercial loans
Commercial and industrial 55,168$ 77,232$ 89,762$ 102,000$ 106,431$ 111,130$ 107,250$
Owner-occupied commercial real estate 18,165 34,295 42,117 44,462 47,010 46,543 45,540
Investor commercial real estate 26,574 22,069 17,483 16,184 14,756 12,976 12,752
Construction 28,200 24,883 30,196 45,898 52,591 53,368 56,391
Single tenant lease financing 84,173 192,608 329,149 374,344 445,534 500,937 571,972
Total commercial loans 212,280 351,087 508,707 582,888 666,322 724,954 793,905
Consumer loans
Residential mortgage 138,418 220,612 209,507 214,559 208,636 202,107 200,889
Home equity 37,906 58,434 47,319 43,279 40,000 38,981 37,849
Trailers 68,991 63,288 66,749 67,326 69,845 74,777 78,419
Recreational vehicles 34,738 30,605 36,800 38,597 41,227 44,387 49,275
Other consumer loans 3,833 3,201 2,638 2,389 10,251 22,592 35,464
Total consumer loans 283,886 376,140 363,013 366,150 369,959 382,844 401,896
Net def. loan fees, prem. and disc. 4,987 5,199 4,858 4,821 4,402 3,824 3,131
Total loans 501,153$ 732,426$ 876,578$ 953,859$ 1,040,683$ 1,111,622$ 1,198,932$
22%
14% 13% 12% 12% 13% 13%
36%
38%
29% 27% 24% 22% 20%
17% 26%
38% 39% 43% 45% 48%
11% 7% 5% 7% 6% 6% 6%
14% 15% 15% 15% 15% 14% 13
2013 2014 3Q15 4Q15 1Q1 2Q16 3Q16
Commercial and industrial
Commercial real estate
Single Tenant lease financing
Residential
mortgage/HELOCs
Consumer
Commercial Real Estate
Single tenant lease financing overview:
Long term lease financing of single tenant
properties occupied by financially strong lessees
Originations / commitments over the past twelve
months exceeded $283 million
Nationwide platform provides ability to capitalize on
national correspondent network
Expertise in asset class with streamlined execution
and credit process
Strong historic credit performance
Average LTV of approximately 53%
16
Commercial real estate balances increased
$264.3 million, or 70.1%, since 3Q15
Single Tenant Lease Financing
Portfolio Diversity
10.2%
6.9%
6.2%
5.5%
4.4%
66.8%
Red
Lobster
CVS
Walgreen's
Rite Aid
Wendy's
All others
18.4%
9.2%
6.7%
5.5%
5.2%
55.0%
Texas
Florida
Georgia
North
Carolina
Indiana
All others
As of % of
Dollars in millions September 30, 2016 total
Single tenant lease financing $572.0 89.2%
Construction 56.4 8.8%
Investor commercial real estate 12.7 2.0%
Total commercial real estate $641.1 100.0%
Commercial and Industrial
Commercial and industrial overview:
Originations / commitments exceeded $67
million over the past twelve months
Primarily serves the borrowing and treasury
management needs of small and middle-
market businesses
Seasoned banking team leverages market
knowledge and experience to serve clients in
a relationship-based approach
Business line built organically, adding select
personnel with specialized product or market
expertise
Indiana team focuses on central Indiana
and ancillary Midwestern markets
Added to Arizona team to further enhance
origination efforts
Strong credit performance to date
17
Commercial and industrial balances increased
$20.9 million, or 15.9%, since 3Q15
As of % of
Dollars in millions September 30, 2016 total
Commercial and industrial $107.3 70.2%
Owner-occupied CRE 45.5 29.8%
Total commercial and ind. $152.8 100.0%
Commercial & Industrial Balances
$55.2
$77.2
$102.0 $107.3
$18.1
$34.3
$44.5 $45.5
2013 2014 2015 3Q16
Commercial and industrial Owner-occupied CRE
Dollars in millions
$73.3
$111.5
$146.5
$152.8
Residential Mortgage
18
Last 12 Months of Mortgage Originations – Regional Distribution
Award-winning national
online origination
platform
Highly efficient
application and
underwriting process
Sales and marketing
efforts re-focused on
purchase mortgage
business
Full range of residential
mortgage and home
equity products
Launched central-
Indiana based
construction loan
program
21.3%
13.2%
26.3%
20.7%
18.5%
Nationwide Branchless Deposit Franchise
19
Total Deposits – $1.5 Billion – Regional Distribution
As of September 30, 2016
Nationwide consumer,
small business and
commercial deposit
base
Scalable technology
and customer
convenience supported
by exceptional service
Deposit relationships in
all 50 states, including
desirable metropolitan
markets
Average consumer
interest checking
account balance of
$15,300 far exceeds
the national average
$283.7 million
19.0%
$134.2 million
9.0%
$617.3 million
41.3%
$226.5 million
15.2%
$231.9 million
15.5%
$1.7 million of balances in US territories/Armed Forces
included in headquarters/Midwest balance
Deposit Composition
Total deposits increased $593.8 million, or 66.0%, since 3Q15
Treasury management and small business deposits provide a significant opportunity for
increasing lower-cost core deposits
20
Total Deposits - $1,493.6 Million
As of September 30, 2016
Total Non-Time Deposits - $510.0 Million
As of September 30, 2016
$32.9
2%
$84.9
6%
$27.7
2%
$364.5
24%
$983.6
66%
Noninterest-bearing deposits Interest-bearing demand deposits
Savings accounts Money market accounts
Time deposits
$96.2
19%
$98.9
19%$314.9
62%
Treasury management Small business Consumer
Asset Quality
21
Asset quality has improved significantly while balance sheet growth has continued on a strong
upward trend
1 3Q16 includes 0.54% related to the charge-off of one C&I loan with an outstanding
balance of $1.6 million
NPAs / Total Assets NPLs / Total Loans
Allowance for Loan Losses / NPLs Net Charge-Offs (Recoveries) / Average Loans1
1.62%
0.90%
0.50%
0.37% 0.31%
2012 2013 2014 2015 3Q16
1.23%
0.37%
0.04% 0.02%
0.09%
2012 2013 2014 2015 3Q16
133.3% 293.0%
1,959.5%
5,000.6%
932.1%
2012 2013 2014 2015 3Q16
0.69%
0.17%
0.00% (0.07%)
0.57%
2012 2013 2014 2015 3Q16
Capital
22
Following the initial public offering in late 2013, the Company deployed capital to fund commercial loan
growth, driving revenue growth and improved profitability
During 4Q15, the Company issued $10 million in subordinated notes (tier 2 capital) to supplement
regulatory capital
In 2Q16, the Company raised $22.8 million of common equity to further support its growth
During 3Q16, the Company issued $25 million in publicly traded subordinated notes (tier 2 capital) to
supplement regulatory capital
Strong insider ownership ensures board, management and shareholder interests are aligned
$19.38
$20.74 $21.11
$21.23
$21.90 $22.24
$22.93
$23.67 $23.94
10.8%
9.5% 9.2% 8.7% 8.5%
7.9%
6.8%
7.7% 7.3%
2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
TBV Per Share TCE / TA
11.7%
9.9% 9.5%
8.9% 8.8%
8.3%
7.7% 8.1% 7.6%
15.6%
12.6%
12.0%
11.1%
10.7% 10.1%
9.4%
10.7%
10.1%
17.1%
13.8%
13.2%
12.3%
11.9%
12.3%
11.4%
12.5%
13.7%
2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
Tier 1 Leverage Tier 1 Capital Total Capital
Tangible Common Equity1 Regulatory Capital Ratios
1 1
1 See Reconciliation of Non-GAAP Financial Measures
Investment Summary
Strong earnings growth and rapidly improving profitability
Demonstrated track record of deploying capital to fuel loan growth while
maintaining strong asset quality
Investments in commercial lending platform are producing results
Geographic and credit product diversity provide ability to generate sustained
balance sheet growth
Consumer banking platform well-positioned to capitalize on changing consumer
preferences
Full service, technology-driven model will deliver increasing efficiency
Experienced management team committed to building shareholder value
23
Reconciliation of Non-GAAP Financial Measures
24
Dollars in thousands 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
Total equity - GAAP $96,785 $99,362 $99,908 $102,912 $104,330 $107,830 $135,679 $137,154
Adjustments:
Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687)
Tangible common equity $92,098 $94,675 $95,221 $98,225 $99,643 $103,143 $130,992 $132,467
Total assets - GAAP 970,503$ 1,035,677$ 1,104,645$ 1,166,170$ 1,269,870$ 1,527,719$ 1,702,468$ 1,824,196$
Adjustments:
Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687)
Tangible assets 965,816$ 1,030,990$ 1,099,958$ 1,161,483$ 1,265,183$ 1,523,032$ 1,697,781$ 1,819,509$
Common shares outstanding 4,439,575 4,484,513 4,484,513 4,484,513 4,481,347 4,497,284 5,533,050 5,533,050
Book value per common share $21.80 $22.16 $22.28 $22.95 $23.28 $23.98 $24.52 $24.79
Effect of goodwill (1.06) (1.05) (1.05) (1.05) (1.04) (1.05) (0.85) (0.85)
Tangible book value per common share $20.74 $21.11 $21.23 $21.90 $22.24 $22.93 $23.67 $23.94
Total shareholders' equity to assets ratio 9.97% 9.59% 9.04% 8.82% 8.22% 7.06% 7.97% 7.52%
Effect of goodwill (0.43%) (0.41%) (0.38%) (0.36%) (0.34%) (0.29%) (0.25%) (0.24%)
Tangible common equity to tangible assets ratio 9.54% 9.18% 8.66% 8.46% 7.88% 6.77% 7.72% 7.28%
Total average equity - GAAP $95,832 $97,844 $99,333 $100,885 $103,583 $106,278 $117,913 $135,666
Adjustment :
Average goodwill (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687)
Average tangible common equity $91,145 $93,157 $94,646 $96,198 $98,896 $101,591 $113,226 $130,979
Return on average shareholders' equity 6.07% 8.55% 9.15% 9.14% 8.73% 9.20% 9.67% 9.08%
Effect of goodwill 0.31% 0.43% 0.45% 0.44% 0.41% 0.43% 0.40% 0.33%
Return on average tangible common equity 6.38% 8.98% 9.60% 9.58% 9.14% 9.63% 10.07% 9.41%
Reconciliation of Non-GAAP Financial Measures
25
Dollars in thousands 3Q16
Net income - GAAP 3,098$
Adjustments:
Commercial and industrial loan charge-off
1
722
Net income - adjusted 3,820$
Net charge-offs (recoveries) - GAAP 1,659$
Adjustments:
Commercial and industrial loan charge-off 1,582
Net charge-offs (recoveries) - adjusted 77$
Diluted earnings per share - GAAP 0.55$
Effect of commercial and industrial loan charge-off
2
0.13
Diluted earnings per share - adjusted 0.68$
Net charge-offs (recoveries) to average loans - GAAP 0.57%
Effect of commercial and industrial loan charge-off (0.54%)
Net charge-offs (recoveries) to average loans - adjusted 0.03%
Return on average assets - GAAP 0.71%
Effect of commercial and industrial loan charge-off
2
0.17%
Return on average assets - adjusted 0.88%
Return on average shareholders' equity - GAAP 9.08%
Effect of commercial and industrial loan charge-off
2
2.12%
Return on average shareholders' equity - adjusted 11.20%
Return on average tangible common equity 9.41%
Effect of commercial and industrial loan charge-off
2
2.19%
Return on average tangible common equity - adjusted 11.60%
1 Represents the full commercial and industrial loan charge-off of $1,582 less the
associated specific allowance of $472 and assuming a tax rate of 35% applied
2 Assuming a tax rate of 35% applied
First Internet Bancorp
Investor Presentation
Third Quarter 2016