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First Internet Bancorp
Investor Presentation
Fourth Quarter 2017
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,
commercial and industrial, healthcare finance, and public finance 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 and tangible common equity to tangible assets, net interest income – FTE and net interest
margin – FTE, adjusted net income, adjusted diluted earnings per share, adjusted return on average assets,
adjusted return on average shareholders’ equity, adjusted return on average tangible common equity,
adjusted income tax expense and adjusted effective income tax rate are used by the Company’s
management to measure the strength of its capital and analyze profitability, including its ability to generate
earnings on tangible capital invested by its shareholders. Although management believes these non-GAAP
measures are useful to investors by providing 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.”
Performance Summary
4
Strong balance sheet growth has driven increased earnings and overall growth in tangible
book value per share
1 1Q17, 2Q17 and 3Q17 amount reflects full impact of offering of 945,000
shares of common stock in December 2016. 4Q17 amount reflects full
impact of offering of 1,897,500 shares of common stock in September 2017.
2 4Q17 reported diluted EPS of $0.41 included the revaluation of the
Company’s net deferred tax asset which reduced diluted EPS by $0.22.
3 See Reconciliation of Non-GAAP Financial Measures.
Diluted Earnings Per Share1,2 Pre-Tax, Pre-Provision Earnings3 Tangible Book Value Per Share2
Total Assets Total Loans Total Deposits
$0.53
$0.57 $0.55
$0.64
$0.43
$0.61
$0.71
$0.41
$0.63
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
$4,676
$5,179
$6,823
$5,637
$4,890
$6,787
$7,925 $8,198
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Dollars in thousands
$1,528
$1,702
$1,824 $1,854
$2,053
$2,381
$2,633
$2,768
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Dollars in millions
$1,041
$1,112
$1,199 $1,251
$1,433
$1,698
$1,868
$2,091
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Dollars in millions
$22.93
$23.67 $23.94
$23.04
$23.52
$24.43
$25.70
$26.09
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
$1,243
$1,389
$1,494 $1,463
$1,557
$1,732
$1,997
$2,085
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Dollars in millions
Fourth Quarter 2017 Highlights
Quarterly net income of $3.5 million, down 29% from 3Q17 and 6% from 4Q16
Adjusted quarterly net income2 of $5.3 million, up 9% from 3Q17 and 44% from 4Q16
Quarterly diluted EPS1 of $0.41, down 42% from 3Q17 and 36% from 4Q16
Adjusted quarterly diluted EPS1,2 of $0.63, down 11% from 3Q17 and 2% from 4Q16
Quarterly net interest income of $15.4 million, up 8% over 3Q17 and 41% over 4Q16
Total quarterly loan growth of $222.7 million, or 12%
Total year-over-year loan growth of $840.4 million, or 67.2%
Total quarterly asset growth of $134.3 million, or 5%
Total year-over-year asset growth of $913.4 million, or 49%
1 4Q17 reported diluted EPS reflects the full impact of offering of 1,897,500 shares of common stock in September 2017.
2 See Reconciliation of Non-GAAP Financial Measures.
5
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 Tempe, 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
4Q17 Financial Information
Total assets $2.8 billion
Total loans $2.1 billion
Total deposits $2.1 billion
TCE / tangible assets 1 7.94%
NPLs / total loans 0.04%
ROAA 0.52%
ROATCE 1 6.37%
Market capitalization 2 $336.1 million
Dividend yield 2 0.6%
NASDAQ Global Select Market INBK
1 See Reconciliation of Non-GAAP Financial Measures
2 Market valuation data as of January 22, 2018
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 solid 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
Public finance
Healthcare finance (via
relationship with Lendeavor)
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
Top Rated Online Business Bank in 2017 – Advisory HQ
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
Magnify Money ranked #1 amongst 2016 Best Banking Apps
(Banker’s “Online Direct Banks”)
American Banker’s “Best Banks to Work For”
2017
2016
2015
2014
2013
“Top Workplaces in Indianapolis” The Indianapolis Star
2017 (#2 on the list)
2016
2015
2014
“Best Places to Work in Indiana”
2017
2016
2013
Mortgage Technology 2013 awarded top honors in the Online
Mortgage Originator category
Consistent Balance Sheet Growth
10
Execution of the business strategy has driven consistent and sustainable balance sheet
growth
CAGR: 34.2% CAGR: 42.3%
CAGR: 31.5% CAGR: 29.7%
Total Assets Total Loans
Total Deposits Shareholders' Equity
$636
$802
$971
$1,270
$1,854
$2,768
2012 2013 2014 2015 2016 2017
Dollars in millions
$358
$501
$732
$954
$1,251
$2,091
2012 2013 2014 2015 2016 2017
Dollars in millions
$531
$673 $759
$956
$1,463
$2,085
2012 2013 2014 2015 2016 2017
Dollars in millions
$61
$91 $97
$104
$154
$224
2012 2013 2014 2015 2016 2017
Dollars in millions
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 December 31, 2017;
peer data represents median value of component companies. SNL Small Cap US
Banks represent publicly traded small cap banks with a market capitalization of between
$250 million and $1 billion; peer data based on index components as of December 31,
2017.
Five Year Total Asset Growth
Five Year Total Loan Growth Five Year Total Deposit Growth
484%
106%
INBK SNL Small Cap US Banks
293%
85%
INBK SNL Small Cap US Banks
335%
86%
INBK SNL Small Cap US Banks
Earnings and Profitability
12
The Company remains focused on driving earnings growth and improving profitability
1 See Reconciliation of Non-GAAP Financial Measures.
2 4Q17 reported net income of $3.5 million included the revaluation of the
Company’s net deferred tax asset which reduced net income by $1.8
million and negatively impacted ROAA and ROATCE.
Net Income1,2 Net Interest Margin - FTE1
Return on Average Assets1,2 Return on Average Tangible Common Equity1,2
$2,432
$2,834 $3,098
$3,710
$2,832
$4,001
$4,895
$3,498
$5,344
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Dollars in thousands 2.80%
2.43% 2.47% 2.48% 2.57% 2.53% 2.52%
2.59%
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
0.72% 0.71% 0.71%
0.81%
0.60%
0.73% 0.78%
0.52%
0.80%
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
9.63% 10.07% 9.41%
11.24%
7.65%
10.25%
11.51%
6.37%
9.73%
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Increasing Economies of Scale
13
Scalable, technology-driven model delivers increasing efficiency and is a key component driving
improved operating leverage
Net Interest Income Noninterest Expense / Average Assets
Efficiency Ratio Total Assets Per FTE
2.08%
1.98% 1.93%
1.77%
1.85%
1.63%
1.50% 1.45%
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
60.0% 60.3%
55.9%
59.1%
64.0%
56.8%
54.2% 54.2%
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
$9.4 $9.6 $9.5 $9.7
$10.3
$12.1
$12.9 $13.4
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Dollars in millions
$9,141 $9,306
$10,338
$10,904
$11,457
$12,974
$14,191
$15,360
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Dollars in thousands
Loan Portfolio Overview
14
1
1 Includes commercial and industrial and owner-occupied commercial real
estate balances
14% 12% 14% 13% 12% 12% 11%
38%
27% 19% 20% 19% 17% 16%
5% 11% 14% 21%
1%
2%
26%
39% 49%
47% 44%
42%
38%
7% 7%
5% 4%
3% 3% 3%
15% 15% 13% 11% 11% 11%
9
2014 2015 4Q16 1Q17 2Q17 3Q17 4Q17
Commercial and industrial
Commercial real estate
Single tenant lease financing
Healthcare finance
Public finance
Residential mortgage/HE/HELOCs
Consumer
Dollars in thousands 2014 2015 4Q16 1Q17 2Q17 3Q17 4Q17
Commercial loans
Commercial and industrial 77,232$ 102,000$ 102,437$ 97,487$ 107,569$ 122,587$ 122,940$
Owner-occupied commercial real estate 34,295 44,462 57,668 62,887 66,952 75,986 75,768
Investor commercial real estate 22,069 16,184 13,181 8,510 10,062 7,430 7,273
Construction 24,883 45,898 53,291 49,618 45,931 50,367 49,213
Single tenant lease financing 192,608 374,344 606,568 665,382 747,790 783,918 803,299
Public finance - - - 77,995 179,873 269,347 438,341
Healthcare finance - - - - 2,810 12,363 31,573
Total commercial loans 351,087 582,888 833,145 961,879 1,160,987 1,321,998 1,528,407
Consumer loans
Residential mortgage 220,612 214,559 205,554 246,014 292,997 291,382 299,935
Home equity 58,434 43,279 35,036 34,925 33,312 31,236 30,554
Trailers 63,288 67,326 81,186 86,692 94,036 97,811 101,369
Recreational vehicles 30,605 38,597 52,350 57,234 63,514 66,619 69,196
Other consumer loans 3,201 2,389 39,913 44,265 51,052 56,490 56,968
Total consumer loans 376,140 366,150 414,039 469,130 534,911 543,538 558,022
Net def. loan fees, prem. and disc. 5,199 4,821 3,605 2,181 2,523 2,951 4,764
Total loans 732,426$ 953,859$ 1,250,789$ 1,433,190$ 1,698,421$ 1,868,487$ 2,091,193$
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 $286 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 portfolio LTV of approximately 52%
15
Commercial real estate balances increased
$186.7 million, or 27.7%, since 4Q16
Single Tenant Lease Financing
Portfolio Diversity
As of % of
Dollars in millions December 31, 2017 total
Single tenant lease financing $803.3 93.5%
Construction 49.2 5.7%
Investor commercial real estate 7.3 0.8%
Total commercial real estate $859.8 100.0%
8.0%
7.9%
5.2%
4.5%
4.1%
70.3%
Walgreen's
Red Lobster
CVS
Burger King
Rite Aid
All others
16.4%
6.3%
6.1%
6.1%
5.7%
59.4%
Texas
Florida
Georgia
California
North
Carolina
All others
Commercial and Industrial
Commercial and industrial overview:
Originations / commitments over the past
twelve months exceeded $110 million
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
16
Commercial and industrial balances increased
$38.6 million, or 24.1%, since 4Q16
As of % of
Dollars in millions December 31, 2017 total
Commercial and industrial $122.9 61.9%
Owner-occupied CRE 75.8 38.1%
Total commercial and ind. $198.7 100.0%
Commercial & Industrial Balances
$55.2
$77.2
$102.0 $102.4
$122.9 $18.1
$34.3
$44.5 $57.7
$75.8
2013 2014 2015 2016 2017
Commercial and industrial Owner-occupied CRE
Dollars in millions
$73.3
$111.5
$146.5
$198.7
$160.1
Public Finance
Public finance overview:
Launched in January 2017
Provides a range of credit solutions for government and
not-for-profit entities
Borrowers’ needs include short-term financing, debt
refinancing, infrastructure improvements, economic
development and equipment financing
Initial efforts have focused on borrowers in Indiana and
contiguous states
Recent team additions will strengthen efforts in
equipment and energy finance and build out nationwide
platform
17
Public finance originations during 2017
have totaled $449.8 million
Portfolio Composition
Borrower Credit Rating
37.5%
19.6%
15.2%
10.6%
6.5%
4.0%
3.9%
2.1%
0.6% General Obligation/G.O.
Equivalent
Water & sewer revenue
Lease rental revenue
Essential use equipment
loans
Tax Incremental
Financing (TIF) districts
Public higher education
facilities
Gaming revenues
Income tax supported
loans
Short term financing
(BAN)
45.9%
19.4%
15.3%
13.6%
5.8% AA+/Aa1
A/A2
NR
A+/A1
BBB+/Baa1
Public Finance Balances
$78.0
$179.9
$269.3
$438.3
1Q17 2Q17 3Q17 4Q17
Dollars in millions
Healthcare Finance
Healthcare finance overview:
Launched in second quarter 2017
Strategic partnership with San Francisco – based
Lendeavor
Currently focused on dental and veterinary practices
Borrowers’ needs include practice finance or acquisition,
acquiring or refinancing owner-occupied commercial real
estate and equipment purchases
Initial efforts have primarily focused on west coast with
plans to expand nationwide
18
Healthcare finance originations during 2017
have totaled $32.2 million
Portfolio Composition
54.2%
10.3%
10.2%
25.3%
California
Texas
Nevada
Other
79.0%
17.2%
3.8%
Practice Refinance
or Acquisition
Owner Occupied
CRE
Equipment
Healthcare Finance Balances
$2.8
$12.4
$31.6
2Q17 3Q17 4Q17
Dollars in millions
Residential Mortgage
19
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
Central-Indiana based
construction loan
program
21.8%
10.1%
29.4%
19.0%
19.7%
Nationwide Branchless Deposit Franchise
20
Total Deposits – $2.1 Billion – Regional Distribution
As of December 31, 2017
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
$16,673 far exceeds
the national average
$339.5 million
16.3%
$171.9 million
8.2%
$827.4 million
39.7%
$395.3 million
19.0%
$350.9 million
16.8%
$1.5 million of balances in US territories/Armed Forces
included in headquarters/Midwest balance
Deposit Composition
Total deposits increased $622.0 million, or 42.5%, since 4Q16
Treasury management, small business deposits and municipal deposits provide significant
opportunities for increasing lower-cost deposits
21
Total Deposits - $2,084.9 Million
As of December 31, 2017
Total Non-Time Deposits - $688.8 Million
As of December 31, 2017
$44.7
2%
$94.7
5%
$49.9
2%
$499.5
24%
$1,396.1
67%
Noninterest-bearing deposits Interest-bearing demand deposits
Savings accounts Money market accounts
Time deposits
$91.5
13%
$168.7
25%
$61.9
9%
$366.7
53%
Treasury management Small business Public funds Consumer
Asset Quality
22
Asset quality has improved significantly while balance sheet growth has continued on a strong
upward trend
NPAs / Total Assets NPLs / Total Loans
Allowance for Loan Losses / NPLs Net Charge-Offs (Recoveries) / Average Loans
1.62%
0.90%
0.50%
0.37% 0.31%
0.21%
2012 2013 2014 2015 2016 2017
1.23%
0.37%
0.04% 0.02% 0.09% 0.04%
2012 2013 2014 2015 2016 2017
133.3% 293.0%
1,959.5%
5,000.6%
1,013.9%
1,784.3%
2012 2013 2014 2015 2016 2017
0.69%
0.17% 0.00% (0.07%) 0.15% 0.15%
2012 2013 2014 2015 2016 2017
Capital
23
Following the initial public offering in late 2013, the Company deployed capital to fund commercial loan growth,
driving revenue growth and improved profitability
2016/2017 capital offerings:
2Q16: raised $22.8 million of common equity
3Q16: issued $25.0 million in publicly traded subordinated debt
4Q16: raised $23.5 million of common equity
3Q17: raised $55.0 million of common equity
Strong insider ownership ensures board, management and shareholder interests are aligned
Tangible Common Equity1 Regulatory Capital Ratios
1 1
1 See Reconciliation of Non-GAAP Financial Measures
$22.24
$22.93
$23.67 $23.94
$23.04
$23.52
$24.43
$25.70 $26.09
7.9%
6.8%
7.7% 7.3%
8.1%
7.5%
6.7%
8.2% 7.9%
2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
TBV Per Share TCE / TA
8.3%
7.7% 8.1% 7.6%
8.7% 8.4%
7.5%
8.9% 8.5%
10.1%
9.4%
10.7%
10.1%
11.5% 10.9%
9.7%
11.9%
11.4%
12.3%
11.4%
12.5%
13.7%
15.0%
14.2%
12.7%
14.7%
14.1%
2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Tier 1 Leverage Tier 1 Capital Total Capital
Efficiency
Ratio
< 50%
Noninterest
Expense / Average
Assets
< 1.40%
ROATCE 1
12.00%
ROAA
0.90% +
Expected Quarterly
Results at
$3.8-$4.0B
Enhancing
franchise
value
1
Operating
seamlessly
2
Remaining
agile
3 Remain opportunistic
Constant evolution and refinement of our business model
Add asset generation channels and diversified revenue streams
Deliver increased operating leverage, profitability and earnings growth
Maintain strict credit quality standards, enterprise risk management
Invest in people, process and technology; capitalize on our award-
winning culture
1 Assumes average tangible common equity/tangible assets of 7.50%.
Execution
24
Investment Summary
Strong earnings growth improving profitability
Demonstrated track record of deploying capital to fuel loan growth while
maintaining strong asset quality
Investments in commercial lending platforms 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 designated to deliver increasing efficiency
Experienced management team committed to building shareholder value
25
Reconciliation of Non-GAAP Financial Measures
26
Dollars in thousands 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Total equity - GAAP $107,830 $135,679 $137,154 $153,942 $157,491 $163,830 $220,867 $224,127
Adjustments:
Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687)
Tangible common equity $103,143 $130,992 $132,467 $149,255 $152,804 $159,143 $216,180 $219,440
Total assets - GAAP 1,527,719$ 1,702,468$ 1,824,196$ 1,854,335$ 2,052,803$ 2,381,271$ 2,633,422$ 2,767,687$
Adjustments:
Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687)
Tangible assets 1,523,032$ 1,697,781$ 1,819,509$ 1,849,648$ 2,048,116$ 2,376,584$ 2,628,735$ 2,763,000$
Common shares outstanding 4,497,284 5,533,050 5,533,050 6,478,050 6,497,662 6,513,577 8,411,077 8,411,077
Book value per common share $23.98 $24.52 $24.79 $23.76 $24.24 $25.15 $26.26 $26.65
Effect of goodwill (1.05) (0.85) (0.85) (0.72) (0.72) (0.72) (0.56) (0.56)
Tangible book value per common share $22.93 $23.67 $23.94 $23.04 $23.52 $24.43 $25.70 $26.09
Total shareholders' equity to assets ratio 7.06% 7.97% 7.52% 8.30% 7.67% 6.88% 8.39% 8.10%
Effect of goodwill (0.29%) (0.25%) (0.24%) (0.23%) (0.21%) (0.18%) (0.17%) (0.16%)
Tangible common equity to tangible assets ratio 6.77% 7.72% 7.28% 8.07% 7.46% 6.70% 8.22% 7.94%
Total average equity - GAAP $106,278 $117,913 $135,666 $135,974 $154,798 $161,228 $173,459 $222,670
Adjustments:
Average goodwill (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687)
Average tangible common equity $101,591 $113,226 $130,979 $131,287 $150,111 $156,541 $168,772 $217,983
Return on average shareholders' equity 9.20% 9.67% 9.08% 10.85% 7.42% 9.95% 11.20% 6.23%
Effect of goodwill 0.43% 0.40% 0.33% 0.39% 0.23% 0.30% 0.31% 0.14%
Return on average tangible common equity 9.63% 10.07% 9.41% 11.24% 7.65% 10.25% 11.51% 6.37%
Reconciliation of Non-GAAP Financial Measures
27 1 Assuming a 35% tax rate
Dollars in thousands 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Net Income 2,432$ 2,834$ 3,098$ 3,710$ 2,832$ 4,001$ 4,895$ 3,498$
Adjustments:
Income tax provision 1,298 1,421 1,521 1,671 1,023 1,464 1,694 3,521
Provision for loan losses 946 924 2,204 256 1,035 1,322 1,336 1,179
Pre-tax, pre-provision earnings 4,676$ 5,179$ 6,823$ 5,637$ 4,890$ 6,787$ 7,925$ 8,198$
Net interest income 9,141$ 9,306$ 10,338$ 10,904$ 11,457$ 12,974$ 14,191$ 15,360$
Adjustment :
Fully-taxable equivalent adjustments 1 69 144 239 256 306 543 1,280 1,555
Net interest income - FTE 9,210$ 9,450$ 10,577$ 11,160$ 11,763$ 13,517$ 15,471$ 16,915$
Net interest margin 2.78% 2.39% 2.42% 2.42% 2.50% 2.43% 2.31% 2.35%
Effect of fully-taxable equivalent adjustments 1 0.02% 0.04% 0.05% 0.06% 0.07% 0.10% 0.21% 0.24%
Net interest margin - FTE 2.80% 2.43% 2.47% 2.48% 2.57% 2.53% 2.52% 2.59%
Reconciliation of Non-GAAP Financial Measures
28
Dollars in thousands 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Net income - GAAP 2,432$ 2,834$ 3,098$ 3,710$ 2,832$ 4,001$ 4,895$ 3,498$
Adjustments:
Net deferred tax asset revaluation - - - - - - - 1,846
Adjusted net income $2,432 $2,834 $3,098 $3,710 $2,832 $4,001 $4,895 $5,344
Diluted average common shares outstanding 4,575,555 4,992,025 5,622,181 5,761,931 6,602,200 6,597,991 6,854,614 8,527,599
Diluted earnings per share - GAAP 0.53$ 0.57$ 0.55$ 0.64$ 0.43$ 0.61$ 0.71$ 0.41$
Adjustments:
Effect of net deferred tax asset revaluation - - - - - - - 0.22
Adjusted diluted earnings per share 0.53$ 0.57$ 0.55$ 0.64$ 0.43$ 0.61$ 0.71$ 0.63$
Return on average assets 0.72% 0.71% 0.71% 0.81% 0.60% 0.73% 0.78% 0.52%
Effect of net deferred tax asset revaluation 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.28%
Adjusted return on average assets 0.72% 0.71% 0.71% 0.81% 0.60% 0.73% 0.78% 0.80%
Return on average shareholders' equity 9.20% 9.67% 9.08% 10.85% 7.42% 9.95% 11.20% 6.23%
Effect of net deferred tax asset revaluation 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 3.29%
Adjusted return on average shareholders' equity 9.20% 9.67% 9.08% 10.85% 7.42% 9.95% 11.20% 9.52%
Return on average tangible common equity 9.63% 10.07% 9.41% 11.24% 7.62% 10.25% 11.51% 6.37%
Effect of net deferred tax asset revaluation 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 3.36%
Adjusted return on average tangible common equity 9.63% 10.07% 9.41% 11.24% 7.62% 10.25% 11.51% 9.73%
Reconciliation of Non-GAAP Financial Measures
29
Dollars in thousands 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
In ome tax expense - GAAP 1,298$ 1,521$ 1,421$ 1,671$ 1,023$ 1,464$ 1,694$ 3,521$
Adjustments:
Net deferred tax asset revaluation - - - - - - - (1,846)
Adjusted income tax expense $1,298 $1,521 $1,421 $1,671 $1,023 $1,464 $1,694 $1,675
Effective income tax rate 34.8% 33.4% 32.9% 31.1% 26.5% 26.8% 25.7% 50.2%
Effect of net deferred tax asset revaluation 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -26.3
Adjusted effective income tax rate 34.8% 33.4% 32.9% 31.1% 26.5% 26.8% 25.7% 23.9%
First Internet Bancorp
Investor Presentation
Fourth Quarter 2017