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| 8-K - 8-K - First Internet Bancorp | inbk-4q2016xer8k.htm |
First Internet Bancorp Reports Annual Net Income Up 35%
Full year 2016 EPS a record at $2.30;
Fourth quarter net income and EPS up 63% and 28% year-over-year
Fishers, Indiana, January 19, 2017 - First Internet Bancorp (the “Company”) (NASDAQ: INBK), the parent company of First Internet Bank (www.firstib.com), announced today record quarterly net income and diluted earnings per share for the fourth quarter and record annual net income and diluted earnings per share for the twelve month period ended December 31, 2016.
“Growing our loans by 31% in one year is evidence our teams deliver high caliber performances and work in concert with one another. Our loan growth fueled a continued increase in interest income, and we had a strong finish to 2016: fourth quarter results represent our best period of the year - and in our seventeen-year history. Our consistent execution gives us confidence in our asset-generating capabilities as we move into 2017,” said David Becker, Chairman, President and Chief Executive Officer.
“Throughout the year, we’ve worked to communicate our differentiated model and value proposition to the market. In 2016, we strengthened our capital base and our balance sheet is well-positioned to support continued growth. We are very pleased to post these results to the investors who have cheered for our sustained success,” Becker concluded.
Fourth quarter net income was a record $3.7 million and diluted earnings per share were a record $0.64. This compares with third quarter net income of $3.1 million and diluted earnings per share of $0.55 and fourth quarter 2015 net income of $2.3 million and diluted earnings per share of $0.50. For the twelve month period ended December 31, 2016, net income was a record $12.1 million and diluted earnings per share were a record $2.30 compared to net income of $8.9 million and diluted earnings per share of $1.96 for the twelve month period ended December 31, 2015.
Highlights for the fourth quarter 2016 include:
▪ | Diluted earnings per share of $0.64, increasing $0.09, or 16.4%, compared to the linked quarter and increasing $0.14, or 28.0%, compared to the fourth quarter 2015 |
▪ | Improved quarterly performance |
• | Return on average assets of 0.81% |
• | Return on average shareholders’ equity of 10.85% |
• | Return on average tangible common equity of 11.24% |
▪ | Total loan growth of $51.9 million, or 4.3%, compared to September 30, 2016 and $296.9 million, or 31.1%, compared to December 31, 2015 |
▪ | Net interest income of $10.9 million, increasing $0.6 million, or 5.5%, compared to the linked quarter and $2.3 million, or 27.3%, compared to the fourth quarter 2015 |
▪ | Enhanced capital levels following an equity offering |
• | Tangible common equity to tangible assets of 8.07% |
• | Tier 1 leverage ratio of 8.65% |
• | Common equity tier 1 capital ratio of 11.54% |
• | Tier 1 capital ratio of 11.54% |
• | Total risk-based capital ratio of 15.01% |
▪ | Strong asset quality |
• | Nonperforming loans to total loans of 0.09% as of December 31, 2016 |
• | Net recoveries to average loans of 0.05% |
Net Interest Income and Net Interest Margin
Net interest income for the fourth quarter was $10.9 million compared to $10.3 million for the third quarter and $8.6 million for the fourth quarter 2015. Total interest income for the fourth quarter was $16.8 million, increasing $1.3 million, or 8.4%, compared to the third quarter and $5.2 million, or 44.6%, compared to the fourth quarter 2015. The increase in total interest income compared to the linked quarter was driven by a $64.2 million, or 5.6%, increase in average loan balances and a $21.9 million, or 4.8%, increase in average investment balances. The growth in average loan balances was supplemented by an increase of 15 bps in the yield earned on the loan portfolio to 4.36% for the fourth quarter from 4.21% for the third quarter. Additionally, the yield earned on the investment portfolio increased 3 bps to 2.45% for the fourth quarter from 2.42% for the third quarter. In total, the Company’s yield on interest-earning assets increased 11 bps during the fourth quarter to 3.73% from 3.62% for the third quarter.
Total interest expense for the fourth quarter was $5.9 million, increasing $0.7 million, or 14.2%, compared to the third quarter and $2.8 million, or 93.7%, compared to the fourth quarter 2015. The increase in interest expense compared to the linked quarter was due primarily to the cost of the subordinated debt issued late in the third quarter. Additionally, average interest-bearing deposit balances increased $60.3 million, or 4.3%, compared to the linked quarter with the related cost of funds increasing 3 bps from 1.25% in the third quarter to 1.28% in the fourth quarter. The average interest-bearing deposit balance growth was driven by an increase in average certificates of deposit balances of $72.3 million, or 8.1%, compared to the linked quarter, partially offset by a decline in average money market account balances of $8.9 million, or 2.4%, due primarily to seasonal factors. Overall, the total cost of interest-bearing liabilities increased 10 bps during the fourth quarter to 1.41% from 1.31% for the third quarter.
Net interest margin was 2.42% for the fourth quarter, consistent with the third quarter and compared to 2.85% for the fourth quarter 2015.
Noninterest Income
Noninterest income for the fourth quarter was $2.9 million compared to $4.9 million for the third quarter and $2.1 million for the fourth quarter 2015. The decrease of $2.0 million, or 41.0%, compared to the linked quarter was driven by a decrease of $2.0 million, or 45.8%, in mortgage banking revenue due to declines in mortgage originations and sales as well as lower gain on sale margins.
Noninterest Expense
Noninterest expense for the fourth quarter was $8.2 million compared to $8.4 million for the third quarter and $6.5 million for the fourth quarter 2015. The decrease of $0.3 million, or 3.0%, compared to the linked quarter was due primarily to lower consulting and professional fees.
Income Taxes
Income tax expense was $1.7 million for the fourth quarter, resulting in an effective tax rate of 31.1%, compared to $1.5 million and an effective tax rate of 32.9% for the linked quarter and $1.2 million and an effective tax rate of 34.4% for the fourth quarter 2015.
Loans and Credit Quality
Total loans as of December 31, 2016 were $1.3 billion, increasing $51.9 million, or 4.3%, compared to September 30, 2016 and $296.9 million, or 31.1%, compared to December 31, 2015. Total commercial loan balances were $833.1 million as of December 31, 2016, increasing $39.2 million, or 4.9%, compared to September 30, 2016 and $250.3 million, or 42.9%, compared to December 31, 2015. The growth in commercial loan balances was due primarily to production in single tenant lease financing as balances increased $34.6 million, or 6.0%, compared to September 30, 2016 and $232.2 million, or 62.0%, compared to December 31, 2015. Commercial and industrial and owner-occupied commercial real estate balances increased $7.3 million on a combined basis, or 4.8%, compared to September 30, 2016 and $13.6 million, or 9.3%, compared to December 31, 2015. Construction balances decreased $3.1 million, or 5.5%, compared to September 30, 2016 but increased $7.4 million, or 16.1%, compared to December 31, 2015.
Total consumer loan balances were $414.0 million as of December 31, 2016, increasing $12.1 million, or 3.0%, compared to September 30, 2016 and $47.9 million, or 13.1%, compared to December 31, 2015. Residential mortgage balances increased $4.7 million, or 2.3%, compared to September 30, 2016, due primarily to adjustable rate originations, but decreased $9.0 million, or 4.2%, compared to December 31, 2015. Other consumer loan balances increased $4.4 million, or 12.5%, compared to September 30, 2016 and $37.5 million, or 1,570.7%, compared to December 31, 2015, due mainly to the Company’s recent initiative in financing home improvement loans. Recreational vehicle balances increased $3.1 million, or 6.2%, compared to September 30, 2016 and $13.8 million, or 35.6%, compared to December 31, 2015. Additionally, trailer portfolio balances increased $2.8 million, or 3.5%, compared to September 30, 2016 and $13.9 million, or 20.6%, compared to December 31, 2015.
Credit quality continued to remain strong as total delinquencies 30 days or more past due were 0.13% of total loans as of December 31, 2016, consistent with September 30, 2016 and up from 0.06% as of December 31, 2015. Nonperforming loans to total loans was 0.09% as of December 31, 2016, consistent with September 30, 2016 and up from 0.02% as of December 31, 2015. Nonperforming assets to total assets was 0.31% as of December 31, 2016, consistent with September 30, 2016 and down from 0.37% as of December 31, 2015.
The allowance for loan losses was $11.0 million as of December 31, 2016 compared to $10.6 million as of September 30, 2016 and $8.4 million as of December 31, 2015. The allowance as a percentage of total nonperforming loans increased to 1,013.9% as of December 31, 2016 from 932.1% as of September 30, 2016 but decreased from 5,000.6% as of December 31, 2015. The allowance as a percentage of total loans was 0.88% as of December 31, 2016, which was consistent with both September 30, 2016 and December 31, 2015.
Net recoveries of $0.2 million were recognized during the fourth quarter, resulting in net recoveries to average loans of 0.05% compared to net charge-offs to average loans of 0.57% for the third quarter and 0.03% for the fourth quarter 2015. During the third quarter, the Company charged-off the full balance of a commercial and industrial loan it placed on nonaccrual status during the second quarter. Prior to the charge-off, the outstanding balance of the loan was $1.6 million and an associated specific allowance was $0.5 million. Net recoveries in the fourth quarter were due primarily to approximately $0.2 million of recoveries related to this credit. The provision for loan losses in the fourth quarter was $0.3 million compared to $2.2 million for the third quarter and $0.7 million for the fourth quarter 2015. The provision in the third quarter includes $1.1 million related to the charged-off loan discussed above.
Capital
During the fourth quarter, total shareholders’ equity increased $16.8 million, due primarily to an underwritten offering of 945,000 shares of common stock that resulted in approximately $23.5 million of net proceeds to the Company. Net income earned during the quarter also contributed to the total increase in shareholders’ equity. These were partially offset by the change in the unrealized gain/loss related to the investment portfolio classified as available-for-sale and reported at fair value, which reduced shareholders’ equity by $10.2 million as the rapid increase in interest rates during the quarter negatively impacted the market value of that portfolio.
As of December 31, 2016, the Company’s tier 1 leverage, common equity tier 1, tier 1 and total risk-based capital ratios were 8.65%, 11.54%, 11.54% and 15.01% compared to 7.62%, 10.07%, 10.07% and 13.67% as of September 30, 2016, respectively. The increases in regulatory capital ratios were primarily due to the common stock offering, partially offset by continued average asset and risk-weighted asset growth. Tangible common equity to tangible assets increased 79 bps during the fourth quarter to 8.07%, primarily due to the common stock offering but partially offset by the change in the unrealized gain/loss related to securities available-for-sale and continued balance sheet growth. Tangible book value per share decreased to $23.04 as of December 31, 2016 from $23.94 as of September 30, 2016 but increased from $22.24 as of December 31, 2015.
About First Internet Bancorp
First Internet Bancorp is a bank holding company with assets of $1.9 billion as of December 31, 2016. The Company’s subsidiary, First Internet Bank, opened for business in 1999 as an industry pioneer in the branchless delivery of banking services. The Bank now provides consumer and small business deposit, consumer loan, residential mortgage, and specialty finance services nationally as well as commercial real estate loans, commercial and industrial loans and treasury management services in select geographies. First Internet Bancorp’s common stock trades on the NASDAQ Global Select Market under the symbol “INBK” and is a component of the Russell 2000® Index. 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.”
Contact Information: | |||
Investors/Analysts | Media | ||
Paula Deemer | Nicole Lorch | ||
Investor Relations | Senior Vice President, Retail Banking | ||
(317) 428-4628 | (317) 532-7906 | ||
investors@firstib.com | nlorch@firstib.com | ||
First Internet Bancorp | ||||||||||||||||||||
Summary Financial Information (unaudited) | ||||||||||||||||||||
Amounts in thousands, except per share data | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||||||
Net income | $ | 3,710 | $ | 3,098 | $ | 2,278 | $ | 12,074 | $ | 8,929 | ||||||||||
Per share and share information | ||||||||||||||||||||
Earnings per share - basic | $ | 0.65 | $ | 0.55 | $ | 0.50 | $ | 2.32 | $ | 1.97 | ||||||||||
Earnings per share - diluted | 0.64 | 0.55 | 0.50 | 2.30 | 1.96 | |||||||||||||||
Dividends declared per share | 0.06 | 0.06 | 0.06 | 0.24 | 0.24 | |||||||||||||||
Book value per common share | 23.76 | 24.79 | 23.28 | 23.76 | 23.28 | |||||||||||||||
Tangible book value per common share | 23.04 | 23.94 | 22.24 | 23.04 | 22.24 | |||||||||||||||
Common shares outstanding | 6,478,050 | 5,533,050 | 4,481,347 | 6,478,050 | 4,481,347 | |||||||||||||||
Average common shares outstanding: | ||||||||||||||||||||
Basic | 5,722,615 | 5,597,867 | 4,534,910 | 5,211,209 | 4,528,528 | |||||||||||||||
Diluted | 5,761,931 | 5,622,181 | 4,580,353 | 5,239,082 | 4,554,219 | |||||||||||||||
Performance ratios | ||||||||||||||||||||
Return on average assets | 0.81 | % | 0.71 | % | 0.74 | % | 0.74 | % | 0.81 | % | ||||||||||
Return on average shareholders' equity | 10.85 | % | 9.08 | % | 8.73 | % | 9.74 | % | 8.89 | % | ||||||||||
Return on average tangible common equity | 11.24 | % | 9.41 | % | 9.14 | % | 10.12 | % | 9.33 | % | ||||||||||
Net interest margin | 2.42 | % | 2.42 | % | 2.85 | % | 2.49 | % | 2.85 | % | ||||||||||
Capital ratios 1 | ||||||||||||||||||||
Tangible common equity to tangible assets | 8.07 | % | 7.28 | % | 7.88 | % | 8.07 | % | 7.88 | % | ||||||||||
Tier 1 leverage ratio | 8.65 | % | 7.62 | % | 8.28 | % | 8.65 | % | 8.28 | % | ||||||||||
Common equity tier 1 capital ratio | 11.54 | % | 10.07 | % | 10.11 | % | 11.54 | % | 10.11 | % | ||||||||||
Tier 1 capital ratio | 11.54 | % | 10.07 | % | 10.11 | % | 11.54 | % | 10.11 | % | ||||||||||
Total risk-based capital ratio | 15.01 | % | 13.67 | % | 12.25 | % | 15.01 | % | 12.25 | % | ||||||||||
Asset quality | ||||||||||||||||||||
Nonperforming loans | $ | 1,083 | $ | 1,133 | $ | 167 | $ | 1,083 | $ | 167 | ||||||||||
Nonperforming assets | 5,701 | 5,735 | 4,740 | 5,701 | 4,740 | |||||||||||||||
Nonperforming loans to loans | 0.09 | % | 0.09 | % | 0.02 | % | 0.09 | % | 0.02 | % | ||||||||||
Nonperforming assets to total assets | 0.31 | % | 0.31 | % | 0.37 | % | 0.31 | % | 0.37 | % | ||||||||||
Allowance for loan losses to: | ||||||||||||||||||||
Loans | 0.88 | % | 0.88 | % | 0.88 | % | 0.88 | % | 0.88 | % | ||||||||||
Nonperforming loans | 1,013.9 | % | 932.1 | % | 5,000.6 | % | 1,013.9 | % | 5,000.6 | % | ||||||||||
Net charge-offs (recoveries) to average loans | (0.05 | )% | 0.57 | % | 0.03 | % | 0.15 | % | (0.07 | )% | ||||||||||
Average balance sheet information | ||||||||||||||||||||
Loans | $ | 1,219,966 | $ | 1,155,749 | $ | 912,233 | $ | 1,110,483 | $ | 820,741 | ||||||||||
Total securities | 479,330 | 457,407 | 207,848 | 380,560 | 181,845 | |||||||||||||||
Other earning assets | 57,081 | 51,779 | 41,274 | 71,140 | 42,375 | |||||||||||||||
Total interest-earning assets | 1,790,167 | 1,702,002 | 1,191,923 | 1,596,387 | 1,078,216 | |||||||||||||||
Total assets | 1,831,549 | 1,734,943 | 1,221,517 | 1,629,800 | 1,107,222 | |||||||||||||||
Noninterest-bearing deposits | 30,336 | 32,897 | 25,198 | 28,472 | 22,866 | |||||||||||||||
Interest-bearing deposits | 1,445,737 | 1,385,487 | 916,006 | 1,288,031 | 839,353 | |||||||||||||||
Total deposits | 1,476,073 | 1,418,384 | 941,204 | 1,316,503 | 862,219 | |||||||||||||||
Shareholders' equity | 135,974 | 135,666 | 103,583 | 124,023 | 100,428 | |||||||||||||||
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 | ||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | ||||||||||
Assets | ||||||||||||
Cash and due from banks | $ | 2,282 | $ | 2,314 | $ | 1,063 | ||||||
Interest-bearing demand deposits | 37,170 | 65,511 | 24,089 | |||||||||
Interest-bearing time deposits | 250 | 250 | 1,000 | |||||||||
Securities available-for-sale, at fair value | 456,700 | 470,978 | 213,698 | |||||||||
Securities held-to-maturity, at amortized cost | 16,671 | 5,500 | — | |||||||||
Loans held-for-sale | 27,101 | 32,471 | 36,518 | |||||||||
Loans | 1,250,789 | 1,198,932 | 953,859 | |||||||||
Allowance for loan losses | (10,981 | ) | (10,561 | ) | (8,351 | ) | ||||||
Net loans | 1,239,808 | 1,188,371 | 945,508 | |||||||||
Accrued interest receivable | 6,708 | 5,848 | 4,105 | |||||||||
Federal Home Loan Bank of Indianapolis stock | 8,910 | 8,595 | 8,595 | |||||||||
Cash surrender value of bank-owned life insurance | 24,195 | 18,044 | 12,727 | |||||||||
Premises and equipment, net | 10,044 | 10,116 | 8,521 | |||||||||
Goodwill | 4,687 | 4,687 | 4,687 | |||||||||
Other real estate owned | 4,533 | 4,533 | 4,488 | |||||||||
Accrued income and other assets | 15,276 | 6,978 | 4,871 | |||||||||
Total assets | $ | 1,854,335 | $ | 1,824,196 | $ | 1,269,870 | ||||||
Liabilities | ||||||||||||
Noninterest-bearing deposits | $ | 31,166 | $ | 32,938 | $ | 23,700 | ||||||
Interest-bearing deposits | 1,431,701 | 1,460,663 | 932,354 | |||||||||
Total deposits | 1,462,867 | 1,493,601 | 956,054 | |||||||||
Advances from Federal Home Loan Bank | 189,981 | 147,978 | 190,957 | |||||||||
Subordinated debt | 36,578 | 36,541 | 12,724 | |||||||||
Accrued interest payable | 112 | 125 | 117 | |||||||||
Accrued expenses and other liabilities | 10,855 | 8,797 | 5,688 | |||||||||
Total liabilities | 1,700,393 | 1,687,042 | 1,165,540 | |||||||||
Shareholders' equity | ||||||||||||
Voting common stock | 119,506 | 95,839 | 72,559 | |||||||||
Retained earnings | 43,704 | 40,389 | 32,980 | |||||||||
Accumulated other comprehensive income (loss) | (9,268 | ) | 926 | (1,209 | ) | |||||||
Total shareholders' equity | 153,942 | 137,154 | 104,330 | |||||||||
Total liabilities and shareholders' equity | $ | 1,854,335 | $ | 1,824,196 | $ | 1,269,870 | ||||||
First Internet Bancorp | |||||||||||||||||||
Condensed Consolidated Statements of Income (unaudited, except for the twelve months ended December 31, 2015) | |||||||||||||||||||
Amounts in thousands, except per share data | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | |||||||||||||||
Interest income | |||||||||||||||||||
Loans | 13,660 | 12,544 | 10,290 | 49,054 | 37,049 | ||||||||||||||
Securities - taxable | 2,262 | 2,148 | 1,067 | 7,326 | 3,728 | ||||||||||||||
Securities - non-taxable | 686 | 637 | 137 | 1,856 | 312 | ||||||||||||||
Other earning assets | 156 | 142 | 100 | 663 | 358 | ||||||||||||||
Total interest income | 16,764 | 15,471 | 11,594 | 58,899 | 41,447 | ||||||||||||||
Interest expense | |||||||||||||||||||
Deposits | 4,667 | 4,368 | 2,405 | 15,853 | 8,755 | ||||||||||||||
Other borrowed funds | 1,193 | 765 | 621 | 3,357 | 1,939 | ||||||||||||||
Total interest expense | 5,860 | 5,133 | 3,026 | 19,210 | 10,694 | ||||||||||||||
Net interest income | 10,904 | 10,338 | 8,568 | 39,689 | 30,753 | ||||||||||||||
Provision for loan losses | 256 | 2,204 | 746 | 4,330 | 1,946 | ||||||||||||||
Net interest income after provision for loan losses | 10,648 | 8,134 | 7,822 | 35,359 | 28,807 | ||||||||||||||
Noninterest income | |||||||||||||||||||
Service charges and fees | 196 | 207 | 193 | 818 | 764 | ||||||||||||||
Mortgage banking activities | 2,407 | 4,442 | 1,805 | 12,398 | 9,000 | ||||||||||||||
Gain on sale of securities | — | — | — | 177 | — | ||||||||||||||
Gain (loss) on asset disposals | (4 | ) | 5 | 40 | (63 | ) | (34 | ) | |||||||||||
Other | 292 | 244 | 105 | 747 | 411 | ||||||||||||||
Total noninterest income | 2,891 | 4,898 | 2,143 | 14,077 | 10,141 | ||||||||||||||
Noninterest expense | |||||||||||||||||||
Salaries and employee benefits | 4,610 | 4,550 | 3,460 | 17,387 | 14,271 | ||||||||||||||
Marketing, advertising and promotion | 471 | 454 | 426 | 1,823 | 1,756 | ||||||||||||||
Consulting and professional fees | 709 | 901 | 674 | 3,143 | 2,374 | ||||||||||||||
Data processing | 292 | 286 | 287 | 1,127 | 1,016 | ||||||||||||||
Loan expenses | 267 | 240 | 172 | 891 | 631 | ||||||||||||||
Premises and equipment | 955 | 983 | 759 | 3,699 | 2,768 | ||||||||||||||
Deposit insurance premium | 344 | 420 | 170 | 1,159 | 643 | ||||||||||||||
Other | 510 | 579 | 544 | 2,222 | 1,824 | ||||||||||||||
Total noninterest expense | 8,158 | 8,413 | 6,492 | 31,451 | 25,283 | ||||||||||||||
Income before income taxes | 5,381 | 4,619 | 3,473 | 17,985 | 13,665 | ||||||||||||||
Income tax provision | 1,671 | 1,521 | 1,195 | 5,911 | 4,736 | ||||||||||||||
Net income | 3,710 | 3,098 | 2,278 | 12,074 | 8,929 | ||||||||||||||
Per common share data | |||||||||||||||||||
Earnings per share - basic | $ | 0.65 | $ | 0.55 | $ | 0.50 | $ | 2.32 | $ | 1.97 | |||||||||
Earnings per share - diluted | $ | 0.64 | $ | 0.55 | $ | 0.50 | $ | 2.30 | $ | 1.96 | |||||||||
Dividends declared per share | $ | 0.06 | $ | 0.06 | $ | 0.06 | $ | 0.24 | $ | 0.24 | |||||||||
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, 2016 | September 30, 2016 | December 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 | $ | 1,253,756 | $ | 13,660 | 4.33 | % | $ | 1,192,816 | $ | 12,544 | 4.18 | % | $ | 942,801 | $ | 10,290 | 4.33 | % | ||||||||||||||
Securities - taxable | 384,286 | 2,262 | 2.34 | % | 366,810 | 2,148 | 2.33 | % | 189,447 | 1,067 | 2.23 | % | ||||||||||||||||||||
Securities - non-taxable | 95,044 | 686 | 2.87 | % | 90,597 | 637 | 2.80 | % | 18,401 | 137 | 2.95 | % | ||||||||||||||||||||
Other earning assets | 57,081 | 156 | 1.09 | % | 51,779 | 142 | 1.09 | % | 41,274 | 100 | 0.96 | % | ||||||||||||||||||||
Total interest-earning assets | 1,790,167 | 16,764 | 3.73 | % | 1,702,002 | 15,471 | 3.62 | % | 1,191,923 | 11,594 | 3.86 | % | ||||||||||||||||||||
Allowance for loan losses | (10,711 | ) | (10,378 | ) | (7,947 | ) | ||||||||||||||||||||||||||
Noninterest earning-assets | 52,093 | 43,319 | 37,541 | |||||||||||||||||||||||||||||
Total assets | $ | 1,831,549 | $ | 1,734,943 | $ | 1,221,517 | ||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 83,930 | $ | 116 | 0.55 | % | $ | 81,151 | $ | 112 | 0.55 | % | $ | 77,096 | $ | 107 | 0.55 | % | ||||||||||||||
Regular savings accounts | 28,157 | 41 | 0.58 | % | 27,479 | 40 | 0.58 | % | 26,239 | 38 | 0.57 | % | ||||||||||||||||||||
Money market accounts | 360,166 | 648 | 0.72 | % | 369,082 | 658 | 0.71 | % | 345,337 | 608 | 0.70 | % | ||||||||||||||||||||
Certificates and brokered deposits | 973,484 | 3,862 | 1.58 | % | 907,775 | 3,558 | 1.56 | % | 467,334 | 1,652 | 1.40 | % | ||||||||||||||||||||
Total interest-bearing deposits | 1,445,737 | 4,667 | 1.28 | % | 1,385,487 | 4,368 | 1.25 | % | 916,006 | 2,405 | 1.04 | % | ||||||||||||||||||||
Other borrowed funds | 213,109 | 1,193 | 2.23 | % | 173,568 | 765 | 1.75 | % | 171,169 | 621 | 1.44 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 1,658,846 | 5,860 | 1.41 | % | 1,559,055 | 5,133 | 1.31 | % | 1,087,175 | 3,026 | 1.10 | % | ||||||||||||||||||||
Noninterest-bearing deposits | 30,336 | 32,897 | 25,198 | |||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 6,393 | 7,325 | 5,561 | |||||||||||||||||||||||||||||
Total liabilities | 1,695,575 | 1,599,277 | 1,117,934 | |||||||||||||||||||||||||||||
Shareholders' equity | 135,974 | 135,666 | 103,583 | |||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,831,549 | $ | 1,734,943 | $ | 1,221,517 | ||||||||||||||||||||||||||
Net interest income | $ | 10,904 | $ | 10,338 | $ | 8,568 | ||||||||||||||||||||||||||
Interest rate spread | 2.32 | % | 2.31 | % | 2.76 | % | ||||||||||||||||||||||||||
Net interest margin | 2.42 | % | 2.42 | % | 2.85 | % | ||||||||||||||||||||||||||
First Internet Bancorp | |||||||||||||||||||||
Average Balances and Rates (unaudited) | |||||||||||||||||||||
Amounts in thousands | |||||||||||||||||||||
Twelve Months Ended | |||||||||||||||||||||
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||
Average Balance | Interest/Dividends | Yield/Cost | Average Balance | Interest/Dividends | Yield/Cost | ||||||||||||||||
Assets | |||||||||||||||||||||
Interest-earning assets | |||||||||||||||||||||
Loans, including loans held-for-sale | $ | 1,144,687 | $ | 49,054 | 4.29 | % | $ | 853,996 | $ | 37,049 | 4.34 | % | |||||||||
Securities - taxable | 315,661 | 7,326 | 2.32 | % | 171,502 | 3,728 | 2.17 | % | |||||||||||||
Securities - non-taxable | 64,899 | 1,856 | 2.86 | % | 10,343 | 312 | 3.02 | % | |||||||||||||
Other earning assets | 71,140 | 663 | 0.93 | % | 42,375 | 358 | 0.84 | % | |||||||||||||
Total interest-earning assets | 1,596,387 | 58,899 | 3.69 | % | 1,078,216 | 41,447 | 3.84 | % | |||||||||||||
Allowance for loan losses | (9,808 | ) | (6,906 | ) | |||||||||||||||||
Noninterest earning-assets | 43,221 | 35,912 | |||||||||||||||||||
Total assets | $ | 1,629,800 | $ | 1,107,222 | |||||||||||||||||
Liabilities | |||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||
Interest-bearing demand deposits | $ | 82,533 | $ | 452 | 0.55 | % | $ | 76,145 | $ | 418 | 0.55 | % | |||||||||
Regular savings accounts | 27,174 | 158 | 0.58 | % | 24,442 | 142 | 0.58 | % | |||||||||||||
Money market accounts | 360,976 | 2,563 | 0.71 | % | 299,990 | 2,136 | 0.71 | % | |||||||||||||
Certificates and brokered deposits | 817,348 | 12,680 | 1.55 | % | 438,776 | 6,059 | 1.38 | % | |||||||||||||
Total interest-bearing deposits | 1,288,031 | 15,853 | 1.23 | % | 839,353 | 8,755 | 1.04 | % | |||||||||||||
Other borrowed funds | 183,410 | 3,357 | 1.83 | % | 139,695 | 1,939 | 1.39 | % | |||||||||||||
Total interest-bearing liabilities | 1,471,441 | 19,210 | 1.31 | % | 979,048 | 10,694 | 1.09 | % | |||||||||||||
Noninterest-bearing deposits | 28,472 | 22,866 | |||||||||||||||||||
Other noninterest-bearing liabilities | 5,864 | 4,880 | |||||||||||||||||||
Total liabilities | 1,505,777 | 1,006,794 | |||||||||||||||||||
Shareholders' equity | 124,023 | 100,428 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,629,800 | $ | 1,107,222 | |||||||||||||||||
Net interest income | $ | 39,689 | $ | 30,753 | |||||||||||||||||
Interest rate spread | 2.38 | % | 2.75 | % | |||||||||||||||||
Net interest margin | 2.49 | % | 2.85 | % | |||||||||||||||||
First Internet Bancorp | |||||||||||||||||||||
Loans and Deposits (unaudited) | |||||||||||||||||||||
Amounts in thousands | |||||||||||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | |||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||
Commercial loans | |||||||||||||||||||||
Commercial and industrial | $ | 102,437 | 8.2 | % | $ | 107,250 | 8.9 | % | $ | 102,000 | 10.7 | % | |||||||||
Owner-occupied commercial real estate | 57,668 | 4.6 | % | 45,540 | 3.8 | % | 44,462 | 4.7 | % | ||||||||||||
Investor commercial real estate | 13,181 | 1.0 | % | 12,752 | 1.1 | % | 16,184 | 1.7 | % | ||||||||||||
Construction | 53,291 | 4.3 | % | 56,391 | 4.7 | % | 45,898 | 4.8 | % | ||||||||||||
Single tenant lease financing | 606,568 | 48.5 | % | 571,972 | 47.7 | % | 374,344 | 39.2 | % | ||||||||||||
Total commercial loans | 833,145 | 66.6 | % | 793,905 | 66.2 | % | 582,888 | 61.1 | % | ||||||||||||
Consumer loans | |||||||||||||||||||||
Residential mortgage | 205,554 | 16.4 | % | 200,889 | 16.7 | % | 214,559 | 22.5 | % | ||||||||||||
Home equity | 35,036 | 2.8 | % | 37,849 | 3.2 | % | 43,279 | 4.5 | % | ||||||||||||
Trailers | 81,186 | 6.5 | % | 78,419 | 6.5 | % | 67,326 | 7.1 | % | ||||||||||||
Recreational vehicles | 52,350 | 4.2 | % | 49,275 | 4.1 | % | 38,597 | 4.0 | % | ||||||||||||
Other consumer loans | 39,913 | 3.2 | % | 35,464 | 3.0 | % | 2,389 | 0.3 | % | ||||||||||||
Total consumer loans | 414,039 | 33.1 | % | 401,896 | 33.5 | % | 366,150 | 38.4 | % | ||||||||||||
Net deferred loan fees, premiums and discounts | 3,605 | 0.3 | % | 3,131 | 0.3 | % | 4,821 | 0.5 | % | ||||||||||||
Total loans | $ | 1,250,789 | 100.0 | % | $ | 1,198,932 | 100.0 | % | $ | 953,859 | 100.0 | % | |||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | |||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||
Deposits | |||||||||||||||||||||
Noninterest-bearing deposits | $ | 31,166 | 2.1 | % | $ | 32,938 | 2.2 | % | $ | 23,700 | 2.5 | % | |||||||||
Interest-bearing demand deposits | 93,074 | 6.4 | % | 84,939 | 5.7 | % | 84,241 | 8.8 | % | ||||||||||||
Regular savings accounts | 27,955 | 1.9 | % | 27,661 | 1.8 | % | 22,808 | 2.4 | % | ||||||||||||
Money market accounts | 340,240 | 23.3 | % | 364,517 | 24.4 | % | 341,732 | 35.7 | % | ||||||||||||
Certificates of deposits | 964,819 | 65.9 | % | 970,684 | 65.0 | % | 470,736 | 49.2 | % | ||||||||||||
Brokered deposits | 5,613 | 0.4 | % | 12,862 | 0.9 | % | 12,837 | 1.4 | % | ||||||||||||
Total deposits | $ | 1,462,867 | 100.0 | % | $ | 1,493,601 | 100.0 | % | $ | 956,054 | 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, 2016 | September 30, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||||||
Total equity - GAAP | $ | 153,942 | $ | 137,154 | $ | 104,330 | $ | 153,942 | $ | 104,330 | ||||||||||
Adjustments: | ||||||||||||||||||||
Goodwill | (4,687 | ) | (4,687 | ) | (4,687 | ) | (4,687 | ) | (4,687 | ) | ||||||||||
Tangible common equity | $ | 149,255 | $ | 132,467 | $ | 99,643 | $ | 149,255 | $ | 99,643 | ||||||||||
Total assets - GAAP | $ | 1,854,335 | $ | 1,824,196 | $ | 1,269,870 | $ | 1,854,335 | $ | 1,269,870 | ||||||||||
Adjustments: | ||||||||||||||||||||
Goodwill | (4,687 | ) | (4,687 | ) | (4,687 | ) | (4,687 | ) | (4,687 | ) | ||||||||||
Tangible assets | $ | 1,849,648 | $ | 1,819,509 | $ | 1,265,183 | $ | 1,849,648 | $ | 1,265,183 | ||||||||||
Common shares outstanding | 6,478,050 | 5,533,050 | 4,481,347 | 6,478,050 | 4,481,347 | |||||||||||||||
Book value per common share | $ | 23.76 | $ | 24.79 | $ | 23.28 | $ | 23.76 | $ | 23.28 | ||||||||||
Effect of goodwill | (0.72 | ) | (0.85 | ) | (1.04 | ) | (0.72 | ) | (1.04 | ) | ||||||||||
Tangible book value per common share | $ | 23.04 | $ | 23.94 | $ | 22.24 | $ | 23.04 | $ | 22.24 | ||||||||||
Total shareholders' equity to assets ratio | 8.3 | % | 7.52 | % | 8.22 | % | 8.3 | % | 8.22 | % | ||||||||||
Effect of goodwill | (0.23 | )% | (0.24 | )% | (0.34 | )% | (0.23 | )% | (0.34 | )% | ||||||||||
Tangible common equity to tangible assets ratio | 8.07 | % | 7.28 | % | 7.88 | % | 8.07 | % | 7.88 | % | ||||||||||
Total average equity - GAAP | $ | 135,974 | $ | 135,666 | $ | 103,583 | $ | 124,023 | $ | 100,428 | ||||||||||
Adjustments: | ||||||||||||||||||||
Average goodwill | (4,687 | ) | (4,687 | ) | (4,687 | ) | (4,687 | ) | (4,687 | ) | ||||||||||
Average tangible common equity | $ | 131,287 | $ | 130,979 | $ | 98,896 | $ | 119,336 | $ | 95,741 | ||||||||||
Return on average shareholders' equity | 10.85 | % | 9.08 | % | 8.73 | % | 9.74 | % | 8.89 | % | ||||||||||
Effect of goodwill | 0.39 | % | 0.33 | % | 0.41 | % | 0.38 | % | 0.44 | % | ||||||||||
Return on average tangible common equity | 11.24 | % | 9.41 | % | 9.14 | % | 10.12 | % | 9.33 | % | ||||||||||