First Internet Bancorp Reports Fourth Quarter and Full Year 2014 Financial Results

Quarterly earnings per share of $0.32, up over 68% from fourth quarter 2013;
loan growth of over 46% for the full year 2014

INDIANAPOLIS--()--First Internet Bancorp (NASDAQ: INBK), the parent company of First Internet Bank (www.firstib.com), a premier nationwide provider of online retail banking services and commercial banking services, announced today financial and operational results for the fourth quarter 2014 and for the twelve month period ended December 31, 2014.

Fourth quarter net income was $1.5 million and diluted earnings per share were $0.32. This compares with third quarter net income of $1.3 million and diluted earnings per share of $0.28 and fourth quarter 2013 net income of $0.7 million and diluted earnings per share of $0.19. For the twelve month period ended December 31, 2014, net income was $4.3 million and diluted earnings per share were $0.96 compared to net income of $4.6 million and diluted earnings per share of $1.51 for the twelve month period ended December 31, 2013. The comparability of diluted earnings per share between fourth quarter and twelve month periods in 2014 and 2013 is impacted by the effect on average diluted shares outstanding resulting from the Company’s offering of 1,587,000 shares of common stock occurring in the fourth quarter 2013.

  • Diluted earnings per share increased $0.04, or 14.3%, compared to the linked quarter and $0.13, or 68.4%, compared to the fourth quarter 2013
  • Continued strong revenue growth
    • Net interest income increased $0.7 million, or 12.4%, quarter-over-quarter and $1.4 million, or 28.4%, compared to the fourth quarter 2013
    • Mortgage banking revenue increased $0.2 million, or 12.5%, compared to the linked quarter and $0.9 million, or 101.3%, compared to the fourth quarter 2013
  • Total loan growth of $36.5 million, or 5.2%, compared to the linked quarter and $231.3 million, or 46.1%, compared to December 31, 2013
    • Strong performance in credit tenant lease financing with balances increasing 16.2% compared to the linked quarter and 128.8% year-over-year
    • Continued growth in C&I / owner-occupied CRE, increasing on a combined basis 7.5% compared to the linked quarter and 52.1% compared to December 31, 2013
    • Increased activity in construction real estate lending also contributed to the growth with balances increasing 38.7% compared to the linked quarter
  • Net interest margin improved 10 bps to 2.78% compared to the linked quarter driven by a 12 bps decline in the cost of interest-bearing liabilities
  • Capital levels remain solid while continuing to support loan growth
    • Tangible common equity to tangible assets of 9.54%
    • Tier 1 capital ratio of 12.55%
    • Total risk-based capital ratio of 13.75%
  • Strong asset quality continues to improve
    • Nonperforming loans declined $0.1 million, or 26.0%, with nonperforming loans to total loans declining 2 bps to 0.04% from 0.06% for the linked quarter
    • Nonperforming assets declined $0.2 million, or 4.0%, compared to the linked quarter and $2.3 million, or 32.3%, compared to December 31, 2013

David Becker, Chairman, President and Chief Executive Officer, commented, “We ended 2014 on an extremely positive note as the fourth quarter’s results represent our strongest performance of the year. Continued growth in net interest income and solid performance in mortgage banking drove an 11.3% increase in total revenue, net of interest expense, compared to the third quarter. When combined with our ability to effectively manage our operating costs, the revenue growth translated into quarterly earnings growth exceeding 14% and continued improvement in profitability metrics.

“We posted another excellent quarter of loan growth. Our elevated commercial pipeline at the end of September resulted in total commercial loan balances increasing $43.1 million, or 14.0%, during the quarter even though we experienced the early payoff of some larger credits. Our commercial real estate team continued to produce in credit tenant lease financing and capitalized on its relationships in construction originations. Additionally, our commercial and industrial team wrapped up the year with a solid quarter of new C&I and owner-occupied CRE originations and strong year-over-year growth. The level of new business opportunities continues to grow and we remain confident in our asset generating capabilities moving forward.

“Our mortgage banking team had another solid quarter. Our re-focused business model emphasizing purchase mortgage business produced consistent results, despite seasonal headwinds, while allowing us the flexibility to capitalize on increased refinance activity. Origination activity constantly improved throughout the year and our improved sales and marketing capabilities combined with the low interest rate environment provide significant momentum heading into 2015.

“We were especially pleased with the continued growth in net interest margin which expanded 10 bps during the quarter. We significantly reduced our cost of funds by actively managing the liability side of our balance sheet. While we remain focused on continuing to improve net interest margin, we took advantage of low interest rates and converted $40 million of short term borrowings to longer term funding in early 2015. This may negatively impact net interest margin growth in the near term but will leave us well positioned to benefit when rates begin to rise.”

Net Interest Income and Net Interest Margin
Net interest income for the fourth quarter was $6.4 million compared to $5.7 million for the third quarter and $5.0 million for the fourth quarter 2013. Compared to the linked quarter, total interest income increased $0.7 million, or 8.5%, and total interest expense declined less than $0.1 million, or 1.1%. The increase in total interest income was driven by a $75.7 million increase, or 12.0%, in average loans receivable balances, partially offset by a decline in the yield earned on the loan portfolio. Additionally, the impact of the loan growth was offset by a decline of $9.9 million, or 7.1%, in the average balance of the investment portfolio as well as a decline of 6 bps in the yield earned on investments. The decline in average investment balances was the result of portfolio restructuring efforts made in 2014, which concluded in the third quarter, to increase the liquidity profile and reduce the interest rate risk and duration of the portfolio.

The slight decrease in interest expense during the quarter was due primarily to a 3 bp decline in the cost of interest-bearing deposits driven by a lower cost of funds related to certificates of deposit. The decrease in interest expense related to deposits was partially offset by a small increase in expense related to borrowed funds resulting from an increase in advances from the Federal Home Loan Bank.

Net interest margin was 2.78% for the fourth quarter compared to 2.68% for the third quarter and 2.70% for the fourth quarter 2013. Compared to the prior quarter, the yield on interest-earning assets remained consistent at 3.76% as the growth in average loan balances and the migration of interest-earning assets from lower-yielding investment securities to higher-yielding commercial loans offset declines in the yields earned on the loan and investment portfolios. The cost of interest-bearing liabilities during the quarter declined 12 bps to 1.09% driven primarily by lower deposit costs and significantly lower funding costs related to borrowings.

Noninterest Income
Noninterest income for the fourth quarter was $2.1 million compared to $1.9 million for the third quarter and $1.2 million for the fourth quarter 2013. The increase of $0.2 million, or 8.0%, compared to the linked quarter was driven by an increase of $0.2 million, or 12.5%, in mortgage banking revenue. The increase in mortgage banking revenue was primarily a result of higher origination volumes as purchase originations were supplemented by increased refinance activity when interest rates dropped early in the fourth quarter.

Noninterest Expense
Noninterest expense for the fourth quarter was $5.9 million compared to $5.8 million for the third quarter and $5.3 million for the fourth quarter 2013. The increase of $0.1 million, or 1.6%, compared to the linked quarter was due to higher consulting and professional fees and other noninterest expenses, offset by lower salaries and employee benefits, marketing costs and loan expenses.

Income Taxes
Income tax expense was $0.7 million for the fourth quarter, resulting in an effective tax rate of 33.6%, compared to $0.7 million and an effective tax rate of 34.0% for the third quarter.

Loans and Credit Quality
Total loans as of December 31, 2014 were $732.4 million, increasing $36.5 million, or 5.2%, compared to the third quarter and $231.3 million, or 46.1%, compared to December 31, 2013. Total commercial loans increased $43.1 million, or 14.0%, compared to the linked quarter driven by continued strong production in credit tenant lease financing as well as solid growth in the commercial and industrial, construction real estate and owner-occupied commercial real estate portfolios.

Credit quality continues to remain strong as nonperforming loans to total loans receivable declined to 0.04% from 0.06% as of September 30, 2014 and 0.37% as of December 31, 2013. Additionally, nonperforming assets to total assets declined to 0.50% from 0.55% as of September 30, 2014 and 0.90% as of December 31, 2013. Compared to the linked quarter, total nonperforming loans declined $0.1 million, or 26.0%, and total nonperforming assets declined $0.2 million, or 4.0%, due primarily to lower levels of nonaccrual and delinquent loans and a modest decline in other real estate owned.

The allowance for loan losses was $5.8 million as of December 31, 2014 compared to $5.5 million as of September 30, 2014 and $5.4 million as of December 31, 2013. The allowance as a percentage of total nonperforming loans increased to 1,959.5% as of December 31, 2014 from 1,366.0% as of September 30, 2014 and 293.0% as of December 31, 2013.

Capital
During the fourth quarter, total shareholders’ equity increased $2.0 million due to net income earned for the quarter and the change in the unrealized gain/loss related to the investment portfolio, partially offset by declared dividends. As of December 31, 2014, the Company’s tier 1 and total capital ratios declined to 12.55% and 13.75% from 13.22% and 14.45% as of September 30, 2014, respectively, due to an increase in risk-weighted assets resulting from the strong commercial loan growth for the quarter. Tangible common equity to tangible assets declined 23 bps during the fourth quarter to 9.54% due to strong asset growth while tangible book value per share increased to $20.74 from $20.29 as of September 30, 2014.

About First Internet Bancorp
First Internet Bancorp is the parent company of First Internet Bank, which opened for business in 1999 as the nation’s first state-chartered, FDIC-insured institution to operate solely via the Internet. With customers in all 50 states, First Internet Bank offers consumers services including checking, savings, money market, certificates of deposit and IRA accounts as well as consumer loans, residential mortgages, residential construction loans and home equity products. For commercial clients, it provides commercial real estate loans, commercial and industrial loans, asset-based lending and treasury management services. First Internet Bank has been recognized as one of the “Best Banks to Work For” by American Banker Magazine as well as a “Top Workplace” by The Indianapolis Star. Additional information about the Company, including its products and services, is available at www.firstib.com.

Safe Harbor Statement
This press release may contain forward-looking statements with respect to the financial condition, results of operations, plans, objectives, future performance or business of the Company. Forward-looking statements are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. Forward-looking statements are not a guarantee of future performance or results, are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the information in the forward-looking statements. Factors that may cause such differences include: failures of or interruptions in the communications and information systems on which we rely to conduct our business; our plans to grow our commercial real estate and commercial and industrial loan portfolios; competition with national, regional and community financial institutions; the loss of any key members of senior management; fluctuations in interest rates; general economic conditions; risks relating to the regulation of financial institutions; and other factors identified in reports we file with the SEC. All statements in this press release, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

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.”

           

First Internet Bancorp

Summary Financial Information (unaudited)

Amounts in thousands, except per share data

     
 
Three Months Ended Twelve Months Ended
 
December 31, September 30, December 31, December 31, December 31,
2014 2014 2013 2014 2013
 
Net income $ 1,465 $ 1,282 $ 666 $ 4,324 $ 4,593
 
Per share and share information
Earnings per share - basic $ 0.33 $ 0.29 $ 0.19 $ 0.96 $ 1.51
Earnings per share - diluted 0.32 0.28 0.19 0.96 1.51
Dividends declared per share 0.06 0.06 0.06 0.24 0.22
Tangible book value per common share 20.74 20.29 19.38 20.74 19.38
Common shares outstanding 4,439,575 4,439,575 4,448,326 4,439,575 4,448,326
Average common shares outstanding:
Basic 4,499,316 4,497,762 3,496,841 4,497,007 3,041,666
Diluted 4,514,505 4,511,291 3,516,462 4,507,995 3,050,001
 
Performance ratios
Return on average assets 0.62 % 0.59 % 0.35 % 0.50 % 0.67 %
Return on average shareholders' equity 6.07 % 5.36 % 3.59 % 4.61 % 7.10 %
Return on average tangible common equity 6.38 % 5.64 % 3.83 % 4.85 % 7.65 %
Net interest margin 2.78 % 2.68 % 2.70 % 2.65 % 2.67 %
 
Capital ratios 1
Tangible common equity to tangible assets 9.54 % 9.77 % 10.81 % 9.54 % 10.81 %
Tier 1 leverage ratio 9.87 % 10.52 % 11.66 % 9.87 % 11.66 %
Tier 1 capital ratio 12.55 % 13.22 % 15.61 % 12.55 % 15.61 %
Total capital ratio 13.75 % 14.45 % 17.09 % 13.75 % 17.09 %
 
Asset quality
Nonperforming loans $ 296 $ 400 $ 1,852 $ 296 $ 1,852
Nonperforming assets 4,866 5,067 7,189 4,866 7,189
Nonperforming loans to loans receivable 0.04 % 0.06 % 0.37 % 0.04 % 0.37 %
Nonperforming assets to total assets 0.50 % 0.55 % 0.90 % 0.50 % 0.90 %
Allowance for loan losses to:
Loans receivable 0.79 % 0.79 % 1.08 % 0.79 % 1.08 %
Nonperforming loans 1,959.5 % 1,366.0 % 293.0 % 1,959.5 % 293.0 %

Net charge-offs (recoveries) to average loans receivable

0.03 % (0.27 %) 0.22 % 0.00 % 0.19 %
 
Average balance sheet information
Loans receivable $ 708,053 $ 632,403 $ 464,729 $ 605,358 $ 392,166
Securities available for sale 129,692 139,569 203,565 153,752 180,850
Other earning assets 34,242 38,964 31,154 56,094 37,785
Total earning assets 909,495 839,183 729,280 841,589 654,434
Total assets 938,685 868,361 762,152 872,303 684,580
Noninterest-bearing deposits 21,118 21,960 15,145 20,028 13,605
Interest-bearing deposits 725,740 718,100 631,637 708,271 567,104
Total deposits 746,858 740,060 646,782 728,299 580,709
Shareholders' equity 95,832 94,840 73,674 93,796 64,704
 

1 Regulatory capital ratios are preliminary pending filing of the Company's regulatory reports

 

       

First Internet Bancorp

Condensed Consolidated Balance Sheets (unaudited, except for December 31, 2013)

Amounts in thousands

   
 
December 31, September 30, December 31,
2014 2014 2013
 
Assets
Cash and due from banks $ 1,940 $ 1,137 $ 2,578
Interest-bearing demand deposits 26,349 38,470 51,112
Interest-bearing time deposits 2,000 2,000 2,500
Securities available for sale, at fair value 137,518 128,203 181,409
Loans held-for-sale 34,671 27,547 28,610
Loans receivable 732,426 695,929 501,153
Allowance for loan losses   (5,800 )   (5,464 )   (5,426 )
Net loans receivable 726,626 690,465 495,727
Accrued interest receivable 2,833 2,803 2,904
Federal Home Loan Bank of Indianapolis stock 5,350 2,943 2,943
Cash surrender value of bank-owned life insurance 12,325 12,226 11,935
Premises and equipment, net 7,061 7,075 7,134
Goodwill 4,687 4,687 4,687
Other real estate owned 4,488 4,545 4,381
Accrued income and other assets   4,655     4,782     6,422  
Total assets $ 970,503   $ 926,883   $ 802,342  
 
Liabilities
Non-interest bearing deposits $ 21,790 $ 20,359 $ 19,386
Interest-bearing deposits   736,808     717,611     653,709  
Total deposits 758,598 737,970 673,095
Advances from Federal Home Loan Bank 106,897 86,871 31,793
Subordinated debt 2,873 2,852 2,789
Accrued interest payable 97 82 102
Accrued expenses and other liabilities   5,253     4,334     3,655  
Total liabilities   873,718     832,109     711,434  
Shareholders' equity
Voting common stock 71,774 71,705 71,378
Retained earnings 25,146 23,951 21,902
Accumulated other comprehensive loss   (135 )   (882 )   (2,372 )
Total shareholders' equity   96,785     94,774     90,908  
Total liabilities and shareholders' equity $ 970,503   $ 926,883   $ 802,342  
 
           
First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited, except for the twelve months ended December 31, 2013)
Amounts in thousands, except per share data
     
 
Three Months Ended Twelve Months Ended
 

December 31,

September 30, December 31, December 31, December 31,
2014 2014 2013 2014 2013
 
Interest income
Loans $ 7,957 $ 7,218 $ 5,770 $ 27,875 $ 20,843
Securities - taxable 615 684 829 3,036 2,891
Securities - non-taxable - - 465 58 1,611
Other earning assets   51     45     42     246     191  
Total interest income   8,623     7,947     7,106     31,215     25,536  
Interest expense
Deposits 1,913 1,958 1,819 7,653 6,861
Other borrowed funds   335     316     323     1,275     1,227  
Total interest expense   2,248     2,274     2,142     8,928     8,088  
Net interest income 6,375 5,673 4,964 22,287 17,448
Provision (credit) for loan losses   387     (112 )   223     349     324  

Net interest income after provision (credit) for loan losses

  5,988     5,785     4,741     21,938     17,124  
Noninterest income
Service charges and fees 174 179 172 707 687
Mortgage banking activities 1,842 1,638 915 5,609 8,682

Other-than-temporary impairment loss recognized in net income

- - - - (49 )
Gain (loss) on sale of securities - 54 6 538 (63 )
Loss on asset disposals (19 ) (28 ) (25 ) (78 ) (146 )
Other   101     100     103     398     406  
Total noninterest income   2,098     1,943     1,171     7,174     9,517  
Noninterest expense
Salaries and employee benefits 3,129 3,265 2,696 12,348 10,250
Marketing, advertising and promotion 307 381 477 1,455 1,858
Consulting and professional fees 595 409 452 1,902 2,152
Data processing 277 244 223 995 911
Loan expenses 168 208 226 626 799
Premises and equipment 733 741 548 2,937 2,196
Deposit insurance premium 154 155 138 591 451
Other   516     382     495     1,808     1,865  
Total noninterest expense   5,879     5,785     5,255     22,662     20,482  
Income before income taxes 2,207 1,943 657 6,450 6,159
Income tax provision (benefit)   742     661     (9 )   2,126     1,566  
Net income $ 1,465   $ 1,282   $ 666   $ 4,324   $ 4,593  
 
Per common share data
Earnings per share - basic $ 0.33 $ 0.29 $ 0.19 $ 0.96 $ 1.51
Earnings per share - diluted $ 0.32 $ 0.28 $ 0.19 $ 0.96 $ 1.51
Dividends declared per share $ 0.06 $ 0.06 $ 0.06 $ 0.24 $ 0.22
 

All periods presented have been reclassified to conform to the current period classification.

 
                   

First Internet Bancorp

Average Balances and Rates (unaudited)

Amounts in thousands

   
 
Three Months Ended
 
December 31, 2014 September 30, 2014 December 31, 2013
 
Average Interest / Yield / Average Interest / Yield / Average Interest / Yield /
Balance Dividends Cost Balance Dividends Cost Balance Dividends Cost
 
Assets
Interest-earning assets
Loans, including loans held for sale $ 745,561 $ 7,957 4.23 % $ 660,650 $ 7,218 4.33 % $ 494,561 $ 5,770 4.63 %
Securities - taxable 129,692 615 1.88 % 139,569 684 1.94 % 156,226 829 2.11 %
Securities - non-taxable - - 0.00 % - - 0.00 % 47,339 465 3.90 %
Other earning assets   34,242     51 0.59 %   38,964     45 0.46 %   31,154     42 0.53 %
Total interest-earning assets 909,495 8,623 3.76 % 839,183 7,947 3.76 % 729,280 7,106 3.87 %
 
Allowance for loan losses (5,535 ) (5,248 ) (5,473 )
Noninterest earning-assets   34,725     34,426     38,345  
Total assets $ 938,685   $ 868,361   $ 762,152  
 
Liabilities
Interest-bearing liabilities
Regular savings accounts $ 19,545 $ 29 0.59 % $ 16,932 $ 25 0.59 % $ 14,036 $ 21 0.59 %
Interest-bearing demand deposits 68,968 95 0.55 % 69,635 96 0.55 % 66,294 92 0.55 %
Money market accounts 274,015 502 0.73 % 272,697 501 0.73 % 248,938 460 0.73 %
Certificates and brokered deposits   363,212     1,287 1.41 %   358,836     1,336 1.48 %   302,369     1,246 1.63 %
Total interest-bearing deposits 725,740 1,913 1.05 % 718,100 1,958 1.08 % 631,637 1,819 1.14 %
Other borrowed funds   91,700     335 1.45 %   29,748     316 4.21 %   34,551     323 3.71 %
Total interest-bearing liabilities 817,440 2,248 1.09 % 747,848 2,274 1.21 % 666,188 2,142 1.28 %
 
Noninterest-bearing deposits 21,118 21,960 15,145
Other noninterest-bearing liabilities   4,295     3,713     7,145  
Total liabilities 842,853 773,521 688,478
 
Shareholders' equity   95,832     94,840     73,674  
Total liabilities and shareholders' equity $ 938,685   $ 868,361   $ 762,152  
     
Net interest income $ 6,375 $ 5,673 $ 4,964
 
Interest rate spread 2.67 % 2.55 % 2.59 %
 
Net interest margin 2.78 % 2.68 % 2.70 %
 
             
First Internet Bancorp
Average Balances and Rates (unaudited)
Amounts in thousands
     
 
Twelve Months Ended
 
December 31, 2014 December 31, 2013
 
Average Interest / Yield / Average Interest / Yield /
Balance Dividends Cost Balance Dividends Cost
 
Assets
Interest-earning assets
Loans, including loans held for sale $ 631,743 $ 27,875 4.41 % $ 435,799 $ 20,843 4.78 %
Securities - taxable 151,967 3,036 2.00 % 137,230 2,891 2.11 %
Securities - non-taxable 1,785 58 3.25 % 43,620 1,611 3.69 %
Other earning assets   56,094     246 0.44 %   37,785     191 0.51 %
Total interest-earning assets 841,589 31,215 3.71 % 654,434 25,536 3.90 %
 
Allowance for loan losses (5,414 ) (5,573 )
Noninterest earning-assets   36,128     35,719  
Total assets $ 872,303   $ 684,580  
 
Liabilities
Interest-bearing liabilities
Regular savings accounts $ 18,509 $ 109 0.59 % $ 13,806 $ 81 0.59 %
Interest-bearing demand deposits 70,362 386 0.55 % 68,366 376 0.55 %
Money market accounts 269,271 1,965 0.73 % 224,383 1,666 0.74 %
Certificates and brokered deposits   350,129     5,193 1.48 %   260,549     4,738 1.82 %
Total interest-bearing deposits 708,271 7,653 1.08 % 567,104 6,861 1.21 %
Other borrowed funds   45,425     1,275 2.81 %   31,471     1,227 3.90 %
Total interest-bearing liabilities 753,696 8,928 1.18 % 598,575 8,088 1.35 %
 
Noninterest-bearing deposits 20,028 13,605
Other noninterest-bearing liabilities   4,783     7,696  
Total liabilities 778,507 619,876
 
Shareholders' equity   93,796     64,704  
Total liabilities and shareholders' equity $ 872,303   $ 684,580  
   
Net interest income $ 22,287 $ 17,448
 
Interest rate spread 2.53 % 2.55 %
 
Net interest margin 2.65 % 2.67 %
 
             
First Internet Bancorp
Loans and Deposits (unaudited)
Amounts in thousands
   
 
December 31, 2014 September 30, 2014 December 31, 2013
 
Amount Percent Amount Percent Amount Percent
 
Commercial loans
Commercial and industrial $ 77,232 10.5 % $ 72,099 10.4 % $ 55,168 11.0 %
Owner-occupied commercial real estate 34,295 4.7 % 31,637 4.5 % 18,165 3.6 %
Investor commercial real estate 22,069 3.0 % 20,567 3.0 % 26,574 5.3 %
Construction 24,883 3.4 % 17,936 2.6 % 28,200 5.6 %
Credit tenant lease financing   192,608 26.3 %   165,738 23.8 %   84,173 16.8 %
Total commercial loans 351,087 47.9 % 307,977 44.3 % 212,280 42.3 %
 
Consumer loans
Residential mortgage 220,612 30.1 % 220,499 31.7 % 138,418 27.6 %
Home equity 58,434 8.0 % 61,799 8.9 % 37,906 7.6 %
Trailers 63,288 8.7 % 65,085 9.3 % 68,991 13.8 %
Recreational vehicles 30,605 4.2 % 31,591 4.5 % 34,738 6.9 %
Other consumer loans   3,201 0.4 %   3,398 0.5 %   3,833 0.8 %
Total consumer loans 376,140 51.4 % 382,372 54.9 % 283,886 56.7 %
 
Net deferred loan fees, premiums and discounts 5,199 0.7 % 5,580 0.8 % 4,987 1.0 %
           
Total loans receivable $ 732,426 100.0 % $ 695,929 100.0 % $ 501,153 100.0 %
 
 
December 31, 2014 September 30, 2014 December 31, 2013
 
Amount Percent Amount Percent Amount Percent
 
Deposits
Regular savings accounts $ 20,776 2.7 % $ 17,503 2.4 % $ 14,330 2.1 %
Noninterest-bearing deposits 21,790 2.9 % 20,359 2.8 % 19,386 2.9 %
Interest-bearing demand deposits 74,238 9.8 % 71,762 9.7 % 73,748 11.0 %
Money market accounts 267,046 35.2 % 275,901 37.4 % 255,169 37.9 %
Certificates of deposits 361,202 47.6 % 334,636 45.3 % 292,685 43.5 %
Brokered deposits 13,546 1.8 % 17,809 2.4 % 17,777 2.6 %
           
Total deposits $ 758,598 100.0 % $ 737,970 100.0 % $ 673,095 100.0 %
 
           
First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures

Amounts in thousands, except per share data

   
 
Three Months Ended Twelve Months Ended
 
December 31, September 30, December 31, December 31, December 31,
2014 2014 2013 2014 2013
 
Total equity - GAAP $ 96,785 $ 94,774 $ 90,908 $ 96,785 $ 90,908
Adjustments:
Goodwill   (4,687 )   (4,687 )   (4,687 )   (4,687 )   (4,687 )
Tangible common equity $ 92,098   $ 90,087   $ 86,221   $ 92,098   $ 86,221  
 
Total assets - GAAP $ 970,503 $ 926,883 $ 802,342 $ 970,503 $ 802,342
Adjustments:
Goodwill   (4,687 )   (4,687 )   (4,687 )   (4,687 )   (4,687 )
Tangible assets $ 965,816   $ 922,196   $ 797,655   $ 965,816   $ 797,655  
 
Common shares outstanding 4,439,575 4,439,575 4,448,326 4,439,575 4,448,326
 
Book value per common share $ 21.80 $ 21.35 $ 20.44 $ 21.80 $ 20.44
Effect of adjustment   (1.06 )   (1.06 )   (1.06 )   (1.06 )   (1.06 )
Tangible book value per common share $ 20.74   $ 20.29   $ 19.38   $ 20.74   $ 19.38  
 
Total shareholders' equity to assets ratio 9.97 % 10.23 % 11.33 % 9.97 % 11.33 %
Effect of adjustment   (0.43 %)   (0.46 %)   (0.52 %)   (0.43 %)   (0.52 %)
Tangible common equity to tangible assets ratio   9.54 %   9.77 %   10.81 %   9.54 %   10.81 %
 
Total average equity - GAAP $ 95,832 $ 94,840 $ 73,674 $ 93,796 $ 64,704
Adjustments:
Average goodwill   (4,687 )   (4,687 )   (4,687 )   (4,687 )   (4,687 )
Average tangible common equity $ 91,145   $ 90,153   $ 68,987   $ 89,109   $ 60,017  
 
Return on average shareholders' equity 6.07 % 5.36 % 3.59 % 4.61 % 7.10 %
Effect of adjustment   0.31 %   0.28 %   0.24 %   0.24 %   0.55 %
Return on average tangible common equity   6.38 %   5.64 %   3.83 %   4.85 %   7.65 %
 

Contacts

First Internet Bancorp
Investors/Analysts
Paula Deemer, 317-428-4628
investors@firstib.com
or
Media
Nicole Lorch, Senior Vice President, Retail Banking, 317-532-7906
nlorch@firstib.com

Release Summary

First Internet Bancorp Reports Fourth Quarter and Full Year 2014 Financial Results

Contacts

First Internet Bancorp
Investors/Analysts
Paula Deemer, 317-428-4628
investors@firstib.com
or
Media
Nicole Lorch, Senior Vice President, Retail Banking, 317-532-7906
nlorch@firstib.com