First Internet Bancorp Reports Another Quarterly Net Income Record

INDIANAPOLIS--()--First Internet Bancorp (NASDAQ:INBK), the parent company of First Internet Bank (www.firstib.com), announced today financial and operational results for the second quarter 2015. Second quarter net income was a record $2.3 million and diluted earnings per share were $0.50. This compares with first quarter net income of $2.1 million and diluted earnings per share of $0.46 and second quarter 2014 net income of $1.0 million and diluted earnings per share of $0.22.

David Becker, Chairman, President and Chief Executive Officer, commented, “We have now produced five consecutive quarters of earnings growth. What’s more, our second quarter results exceeded the record net income we reported in the prior quarter.

“We continued to achieve our objective of expanding our balance sheet to realize economies of scale, and – once again – net interest income was the fundamental driver of our results. We successfully bolstered our diversified loan portfolio. In spite of an elevated level of early paydowns and a competitive market, our commercial lending teams delivered another solid performance in the second quarter. Going into the third quarter, our commercial pipelines remain strong. Consumer loan activity picked up in the second quarter as well. Credit quality was exceptional across all facets of our lending units.

“Through strategic growth and disciplined expense management, we demonstrated our commitment to improved profitability. Our lines of business are performing well and providing exemplary service to our geographically disperse customer base. I am particularly proud of our second quarter results.”

Highlights for the second quarter 2015 included:

  • Diluted earnings per share increased $0.04, or 8.7%, compared to the linked quarter and $0.28, or 127.3%, compared to the second quarter 2014. During the second quarter, the Company recognized $0.2 million of pre-tax expenses and asset writedowns associated with staffing-related changes which negatively impacted diluted earnings per share by $0.02.
  • Improved quarterly performance
    • Return on average assets of 0.84%; 0.87% as adjusted for the items noted above
    • Return on average shareholders’ equity of 9.15%; 9.56% as adjusted for the items noted above
    • Return on average tangible common equity of 9.60%; 10.03% as adjusted for the items noted above
  • Continued strong growth in net interest income, increasing $0.8 million, or 11.8%, compared to the linked quarter and $2.2 million, or 40.9%, compared to the second quarter 2014
  • Total loan growth of $46.6 million, or 6.1%, compared to March 31, 2015 and $182.6 million, or 28.9%, compared to June 30, 2014
    • Strong performance in single tenant lease financing with balances increasing 23.2% compared to the linked quarter and 95.0% year-over-year
    • Continued growth in C&I / owner-occupied CRE loans, increasing 5.2% on a combined basis compared to the linked quarter and 30.5% compared to June 30, 2014
    • Quarterly loan growth was enhanced by performance in consumer lending as trailer and recreational vehicle balances increased 6.1%, on a combined basis
  • Net interest margin (“NIM”) increased to 2.87%, or 3 bps, compared to the linked quarter and 26 bps compared to the second quarter 2014
  • Capital levels remain solid and continue to support loan growth
    • Tangible common equity to tangible assets of 8.66%
    • Common equity tier 1 capital ratio of 11.12%
    • Tier 1 capital ratio of 11.12%
    • Total risk-based capital ratio of 12.28%
  • Asset quality remains strong
    • Nonperforming loans to total loans receivable declined to 0.02% from 0.03% as of March 31, 2015 and 0.19% as of June 30, 2014
    • Recognized net recoveries to average loans receivable of 0.20% during the second quarter

Net Interest Income and Net Interest Margin

Net interest income for the second quarter was $7.6 million compared to $6.8 million for the first quarter and $5.4 million for the second quarter 2014. Compared to the linked quarter, total interest income increased $0.9 million, or 10.3%, and total interest expense increased $0.1 million, or 6.0%. The increase in total interest income was driven by a $41.9 million, or 5.6%, increase in average loans receivable and a $36.6 million, or 25.2%, increase in average investment balances. Additionally, compared to the linked quarter the yield earned on the loan portfolio, including mortgage loans held for sale, increased 3 bps and the yield earned on the investment portfolio increased 19 bps.

The increase in interest expense during the quarter was due to a $60.8 million, or 8.0%, increase in average interest-bearing deposit balances. Partially offsetting the impact of higher interest expense associated with increased deposit balances was a decline in expense related to other borrowings, due primarily to a lower cost of funds related to Federal Home Loan Bank advances.

Net interest margin was 2.87% for the second quarter compared to 2.84% for the first quarter and 2.61% for the second quarter 2014. The yield on interest-earning assets for the second quarter was 3.85%, which was consistent with the linked quarter. However, excluding the impact of interest income associated with a loan recovery in the first quarter, the yield on interest-earning assets increased 6 bps during the second quarter, driven by higher yields earned on commercial loans and investment securities. The cost of interest-bearing liabilities for the second quarter declined 5 bps compared to the linked quarter due to the lower cost of funds related to Federal Home Loan Bank advances.

Noninterest Income

Noninterest income for the second quarter was $2.5 million compared to $3.1 million for the first quarter and $1.6 million for the second quarter 2014. The decrease of $0.7 million, or 21.3%, compared to the linked quarter was driven by a decline of $0.7 million, or 23.3%, in mortgage banking revenue resulting primarily from lower origination volumes.

Noninterest Expense

Noninterest expense for the second quarter was $6.3 million compared to $6.2 million for the first quarter and $5.6 million for the second quarter 2014. The increase of $0.1 million, or 1.1%, compared to the linked quarter was due to higher salaries and employee benefits and premises and equipment expenses, partially offset by lower marketing expenses, consulting and professional fees and other expenses. Excluding the expense impact of the staffing-related changes noted above, salaries and employee benefits increased $0.1 million, or 2.0%, and total noninterest expense declined $0.1 million, or 1.2%, compared to the linked quarter.

Income Taxes

Income tax expense was $1.2 million for the second quarter, resulting in an effective tax rate of 33.7%, compared to $1.2 million and an effective tax rate of 36.0% for the linked quarter and $0.5 million and an effective tax rate of 35.2% for the second quarter 2014. The decrease in the effective tax rate compared to the linked quarter was due primarily to additional income tax expense associated with the vesting of certain equity compensation awards recognized in the first quarter.

Loans and Credit Quality

Total loans as of June 30, 2015 were $814.2 million, increasing $46.6 million, or 6.1%, compared to March 31, 2015 and $182.6 million, or 28.9%, compared to June 30, 2014. Total commercial loan balances were $448.9 million, increasing $54.0 million, or 13.7%, compared to the linked quarter and $163.9 million, or 57.5%, compared to June 30, 2014. Continued strong production in single tenant lease financing balances contributed significantly to the growth as balances increased $52.7 million, or 23.2%, compared to the first quarter and $136.3 million, or 95.0%, compared to the second quarter 2014. Commercial and industrial and owner-occupied commercial real estate production was solid as balances increased $6.3 million on a combined basis, or 5.2%, compared to the linked quarter and $30.1 million, or 30.5%, compared to June 30, 2014. Also contributing to quarterly growth was increased production in consumer lending as balances for trailers and recreational vehicles increased $5.8 million, or 6.1%, on a combined basis.

Credit quality continues to remain strong as nonperforming loans to total loans receivable declined to 0.02% as of June 30, 2015 from 0.03% as of March 31, 2015 and 0.19% as of June 30, 2014. Additionally, nonperforming assets to total assets declined to 0.43% as of June 30, 2015 from 0.47% as of March 31, 2015 and 0.69% as of June 30, 2014. The allowance for loan losses was $7.1 million as of June 30, 2015 compared to $6.4 million as of March 31, 2015 and $5.1 million as of June 30, 2014. The allowance as a percentage of total nonperforming loans increased to 3,762.2% as of June 30, 2015 from 2,592.7% as of March 31, 2015 and 436.7% as of June 30, 2014. The allowance as a percentage of total loans receivable increased to 0.87% as of June 30, 2015 compared to 0.83% as of March 31, 2015 and 0.81% as of June 30, 2014.

Net recoveries of $0.4 million were recognized during the second quarter, resulting in net recoveries to average loans of 0.20% compared to net recoveries to average loans of 0.07% for the first quarter and net charge-offs to average loans of 0.12% for the second quarter 2014. The net recoveries during the second quarter were driven primarily by a $0.5 million recovery of a commercial real estate loan that had been previously charged-off.

Capital

During the second quarter, total shareholders’ equity increased $0.5 million due primarily to net income earned during the quarter, partially offset by the change in the unrealized gain/loss related to the investment portfolio and declared dividends. As of June 30, 2015, the Company’s common equity tier 1, tier 1 and total risk-based capital ratios declined to 11.12%, 11.12% and 12.28% from 11.99%, 11.99% and 13.18% as of March 31, 2015, respectively, due to an increase in risk-weighted assets resulting primarily from the commercial and consumer loan growth for the quarter. Tangible common equity to tangible assets declined 52 bps during the second quarter to 8.66% due primarily to strong asset growth while tangible book value per share increased to $21.23 as of June 30, 2015 from $21.11 as of March 31, 2015.

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 and treasury management services. First Internet Bank has been recognized as one of the “Best Banks to Work For” by American Banker Magazine as well as a “Top Workplace” by The Indianapolis Star. Additional information about the Company is available at www.firstinternetbancorp.com and additional information about the Bank, including its products and services, is available at www.firstib.com.

Safe Harbor Statement

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

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, average tangible common equity, return on average tangible common equity, tangible common equity to tangible assets, 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 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 Six Months Ended
 
June 30, March 31, June 30, June 30, June 30,
2015 2015 2014 2015 2014
 
Net income $ 2,265 $ 2,063 $ 977 $ 4,328 $ 1,577
 
Per share and share information
Earnings per share - basic $ 0.50 $ 0.46 $ 0.22 $ 0.96 $ 0.35
Earnings per share - diluted 0.50 0.46 0.22 0.95 0.35
Dividends declared per share 0.06 0.06 0.06 0.12 0.12
Book value per common share 22.28 22.16 21.25 22.28 21.25
Tangible book value per common share 21.23 21.11 20.19 21.23 20.19
Common shares outstanding 4,484,513 4,484,513 4,449,619 4,484,513 4,449,619
Average common shares outstanding:
Basic 4,529,823 4,516,776 4,496,219 4,523,336 4,495,449
Diluted 4,550,034 4,523,246 4,504,302 4,536,736 4,503,010
Performance ratios
Return on average assets 0.84 % 0.84 % 0.45 % 0.84 % 0.38 %
Return on average shareholders' equity 9.15 % 8.55 % 4.23 % 8.85 % 3.45 %
Return on average tangible common equity 9.60 % 8.98 % 4.46 % 9.29 % 3.63 %
Net interest margin 2.87 % 2.84 % 2.61 % 2.86 % 2.56 %
Capital ratios 1
Tangible common equity to tangible assets 8.66 % 9.18 % 10.41 % 8.66 % 10.41 %
Tier 1 leverage ratio 8.93 % 9.52 % 10.45 % 8.93 % 10.45 %
Common equity tier 1 capital ratio 11.12 % 11.99 % 14.03 % 11.12 % 14.03 %
Tier 1 capital ratio 11.12 % 11.99 % 14.03 % 11.12 % 14.03 %
Total risk-based capital ratio 12.28 % 13.18 % 15.30 % 12.28 % 15.30 %
Asset quality
Nonperforming loans $ 188 $ 246 $ 1,177 $ 188 $ 1,177
Nonperforming assets 4,765 4,818 5,961 4,765 5,961
Nonperforming loans to loans receivable 0.02 % 0.03 % 0.19 % 0.02 % 0.19 %
Nonperforming assets to total assets 0.43 % 0.47 % 0.69 % 0.43 % 0.69 %
Allowance for loan losses to:
Loans receivable 0.87 % 0.83 % 0.81 % 0.87 % 0.81 %
Nonperforming loans 3,762.2 % 2,592.7 % 436.7 % 3,762.2 % 436.7 %
Net charge-offs (recoveries) to average
loans receivable (0.20 %) (0.07 %) 0.12 % (0.14 %) 0.13 %
Average balance sheet information
Loans receivable $ 787,339 $ 745,454 $ 562,624 $ 766,512 $ 539,414
Securities available for sale 181,864 145,241 194,689 163,654 173,191
Other earning assets 49,001 41,643 49,524 45,342 73,345
Total interest-earning assets 1,056,485 967,186 824,752 1,012,082 805,734
Total assets 1,085,118 995,851 862,110 1,040,731 840,560
Noninterest-bearing deposits 20,697 22,265 18,821 21,477 18,492
Interest-bearing deposits 822,735 761,917 708,668 792,494 694,395
Total deposits 843,432 784,182 727,489 813,971 712,887
Shareholders' equity 99,333 97,844 92,641 98,592 92,230
 
1 Regulatory capital ratios are preliminary pending filing of the Company's regulatory reports
 
 
First Internet Bancorp
Condensed Consolidated Balance Sheets (unaudited)
Amounts in thousands
             
 
June 30, March 31, June 30,
2015 2015 2014
 
Assets
Cash and due from banks $ 1,713 $ 1,472 $ 1,926
Interest-bearing demand deposits 28,889 38,100 18,718
Interest-bearing time deposits 1,250 2,000 2,000
Securities available for sale, at fair value 190,767 163,676 159,528
Loans held-for-sale 29,872 27,584 21,466
Loans receivable 814,243 767,682 631,678
Allowance for loan losses   (7,073 )   (6,378 )   (5,140 )
Net loans receivable 807,170 761,304 626,538
Accrued interest receivable 3,550 3,040 2,694
Federal Home Loan Bank of Indianapolis stock 6,946 5,350 2,943
Cash surrender value of bank-owned life insurance 12,524 12,423 12,128
Premises and equipment, net 8,120 7,040 7,133
Goodwill 4,687 4,687 4,687
Other real estate owned 4,488 4,488 4,664
Accrued income and other assets   4,669     4,513     3,682  
Total assets $ 1,104,645   $ 1,035,677   $ 868,107  
 
Liabilities
Noninterest-bearing deposits $ 20,994 $ 19,178 $ 19,065
Interest-bearing deposits   835,509     801,991     725,108  
Total deposits 856,503 821,169 744,173
Advances from Federal Home Loan Bank 140,935 106,921 21,845
Subordinated debt 2,915 2,894 2,831
Accrued interest payable 108 104 96
Accrued expenses and other liabilities   4,276     5,227     4,628  
Total liabilities   1,004,737     936,315     773,573  
Shareholders' equity
Voting common stock 72,218 72,032 71,509
Retained earnings 28,928 26,938 22,938
Accumulated other comprehensive income (loss)   (1,238 )   392     87  
Total shareholders' equity   99,908     99,362     94,534  
Total liabilities and shareholders' equity $ 1,104,645   $ 1,035,677   $ 868,107  
 
 
First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited)
Amounts in thousands, except per share data
                     
 
Three Months Ended Six Months Ended
 
June 30, March 31, June 30, June 30, June 30,
2015 2015 2014 2015 2014
 
Interest income
Loans $ 9,043 $ 8,390 $ 6,571 $ 17,433 $ 12,700
Securities - taxable 945 722 987 1,667 1,736
Securities - non-taxable 59 - - 59 58
Other earning assets   83     75     54     158     151  
Total interest income   10,130     9,187     7,612     19,317     14,645  
Interest expense
Deposits 2,137 1,953 1,922 4,090 3,782
Other borrowed funds   421     460     317     881     624  
Total interest expense   2,558     2,413     2,239     4,971     4,406  
Net interest income 7,572 6,774 5,373 14,346 10,239
Provision (credit) for loan losses 304 442 (73 ) 746 74

Net interest income after provision

         
(credit) for loan losses   7,268     6,332     5,446     13,600     10,165  
Noninterest income
Service charges and fees 193 176 187 369 354
Mortgage banking activities 2,214 2,886 1,229 5,100 2,129
Gain on sale of securities - - 125 - 484
Loss on asset disposals (33 ) (14 ) (18 ) (47 ) (31 )
Other   102     100     99     202     197  
Total noninterest income   2,476     3,148     1,622     5,624     3,133  
Noninterest expense
Salaries and employee benefits 3,787 3,578 2,948 7,365 5,955
Marketing, advertising and promotion 334 452 387 786 767
Consulting and professional fees 564 592 465 1,156 898
Data processing 233 248 239 481 473
Loan expenses 181 181 136 362 250
Premises and equipment 691 642 761 1,333 1,462
Deposit insurance premium 160 150 138 310 282
Other   377     414     486     791     911  
Total noninterest expense   6,327     6,257     5,560     12,584     10,998  
Income before income taxes 3,417 3,223 1,508 6,640 2,300
Income tax provision   1,152     1,160     531     2,312     723  
Net income $ 2,265   $ 2,063   $ 977   $ 4,328   $ 1,577  
 
Per common share data
Earnings per share - basic $ 0.50 $ 0.46 $ 0.22 $ 0.96 $ 0.35
Earnings per share - diluted $ 0.50 $ 0.46 $ 0.22 $ 0.95 $ 0.35
Dividends declared per share $ 0.06 $ 0.06 $ 0.06 $ 0.12 $ 0.12
 
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
 
June 30, 2015 March 31, 2015 June 30, 2014
 
Average Interest / Yield / Average Interest / Yield / Average Interest / Yield /
Balance Dividends Cost Balance Dividends Cost Balance Dividends Cost
 
Assets
Interest-earning assets
Loans, including loans held-for-sale $ 825,620 $ 9,043 4.39 % $ 780,302 $ 8,390 4.36 % $ 580,539 $ 6,571 4.54 %
Securities - taxable 174,057 945 2.18 % 145,241 722 2.02 % 194,689 987 2.03 %
Securities - non-taxable 7,807 59 3.03 % - - 0.00 % - - 0.00 %
Other earning assets   49,001     83 0.68 %   41,643     75 0.73 %   49,524     54 0.44 %
Total interest-earning assets 1,056,485 10,130 3.85 % 967,186 9,187 3.85 % 824,752 7,612 3.70 %
 
Allowance for loan losses (6,545 ) (5,883 ) (5,450 )
Noninterest earning-assets   35,178     34,548     42,808  
Total assets $ 1,085,118   $ 995,851   $ 862,110  
 
Liabilities
Interest-bearing liabilities
Regular savings accounts $ 23,873 $ 34 0.57 % $ 22,099 $ 32 0.59 % $ 19,023 $ 29 0.61 %
Interest-bearing demand deposits 76,095 104 0.55 % 75,405 102 0.55 % 72,519 99 0.55 %
Money market accounts 282,015 503 0.72 % 274,312 492 0.73 % 267,232 486 0.73 %
Certificates and brokered deposits   440,752     1,496 1.36 %   390,101     1,327 1.38 %   349,894     1,308 1.50 %
Total interest-bearing deposits 822,735 2,137 1.04 % 761,917 1,953 1.04 % 708,668 1,922 1.09 %
Other borrowed funds   137,421     421 1.23 %   109,787     460 1.70 %   34,538     317 3.68 %
Total interest-bearing liabilities 960,156 2,558 1.07 % 871,704 2,413 1.12 % 743,206 2,239 1.21 %
 
Noninterest-bearing deposits 20,697 22,265 18,821
Other noninterest-bearing liabilities   4,932     4,038     7,442  
Total liabilities 985,785 898,007 769,469
 

Shareholders' equity

  99,333     97,844     92,641  

Total liabilities and shareholders' equity

$ 1,085,118   $ 995,851   $ 862,110  
     

Net interest income

$ 7,572 $ 6,774 $ 5,373
 

Interest rate spread

2.78 % 2.73 % 2.49 %
 

Net interest margin

2.87 % 2.84 % 2.61 %
 
 

First Internet Bancorp

Average Balances and Rates (unaudited)

Amounts in thousands

               
 
Six Months Ended
 
June 30, 2015 June 30, 2014
 
Average Interest / Yield / Average Interest / Yield /
Balance Dividends Cost Balance Dividends Cost

Assets

Interest-earning assets
Loans, including loans held-for-sale $ 803,086 $ 17,433 4.38 % $ 559,198 $ 12,700 4.58 %
Securities - taxable 159,729 1,667 2.10 % 169,591 1,736 2.06 %
Securities - non-taxable 3,925 59 3.03 % 3,600 58 3.25 %
Other earning assets   45,342     158 0.70 %   73,345     151 0.42 %
Total interest-earning assets 1,012,082 19,317 3.85 % 805,734 14,645 3.67 %
 
Allowance for loan losses (6,215 ) (5,436 )
Noninterest earning-assets   34,864     40,262  
Total assets $ 1,040,731   $ 840,560  
 

Liabilities

Interest-bearing liabilities
Regular savings accounts $ 22,991 $ 66 0.58 % $ 18,784 $ 56 0.60 %
Interest-bearing demand deposits 75,752 206 0.55 % 71,439 194 0.55 %
Money market accounts 278,185 995 0.72 % 265,119 961 0.73 %
Certificates and brokered deposits   415,566     2,823 1.37 %   339,053     2,571 1.53 %
Total interest-bearing deposits 792,494 4,090 1.04 % 694,395 3,782 1.10 %
Other borrowed funds   123,680     881 1.44 %   29,873     624 4.21 %
Total interest-bearing liabilities 916,174 4,971 1.09 % 724,268 4,406 1.23 %
 
Noninterest-bearing deposits 21,477 18,492
Other noninterest-bearing liabilities   4,488     5,570  
Total liabilities 942,139 748,330
 

Shareholders' equity

  98,592     92,230  

Total liabilities and shareholders' equity

$ 1,040,731   $ 840,560  
   

Net interest income

$ 14,346 $ 10,239
 

Interest rate spread

2.76 % 2.44 %
 

Net interest margin

2.86 % 2.56 %
 
 
First Internet Bancorp
Loans and Deposits (unaudited)
Amounts in thousands
               
 
June 30, 2015 March 31, 2015 June 30, 2014
Amount Percent Amount Percent Amount Percent
 
Commercial loans
Commercial and industrial $ 89,316 11.0 % $ 83,849 11.0 % $ 71,997 11.4 %
Owner-occupied commercial real estate 39,405 4.8 % 38,536 5.0 % 26,629 4.2 %
Investor commercial real estate 20,163 2.5 % 18,491 2.4 % 18,467 2.9 %
Construction 20,155 2.5 % 26,847 3.5 % 24,371 3.9 %
Single tenant lease financing   279,891 34.4 %   227,229 29.6 %   143,547 22.7 %
Total commercial loans 448,930 55.2 % 394,952 51.5 % 285,011 45.1 %
 
Consumer loans
Residential mortgage 207,703 25.5 % 215,910 28.1 % 175,114 27.7 %
Home equity 49,662 6.1 % 54,838 7.2 % 63,725 10.1 %
Trailers 66,080 8.1 % 63,638 8.3 % 66,456 10.5 %
Recreational vehicles 34,366 4.2 % 31,023 4.0 % 32,882 5.2 %
Other consumer loans   2,711 0.3 %   2,531 0.3 %   3,505 0.6 %
Total consumer loans 360,522 44.2 % 367,940 47.9 % 341,682 54.1 %
 
Net deferred loan fees, premiums and discounts 4,791 0.6 % 4,790 0.6 % 4,985 0.8 %
           
Total loans receivable $ 814,243 100.0 % $ 767,682 100.0 % $ 631,678 100.0 %
 
 
June 30, 2015 March 31, 2015 June 30, 2014
Amount Percent Amount Percent Amount Percent
 
Deposits
Regular savings accounts $ 24,405 2.8 % $ 23,367 2.8 % $ 16,861 2.3 %
Noninterest-bearing deposits 20,994 2.5 % 19,178 2.3 % 19,065 2.5 %
Interest-bearing demand deposits 77,822 9.1 % 82,982 10.1 % 73,843 9.9 %
Money market accounts 278,791 32.5 % 280,740 34.2 % 267,854 36.0 %
Certificates of deposits 440,936 51.5 % 401,347 48.9 % 348,752 46.9 %
Brokered deposits   13,555 1.6 %   13,555 1.7 %   17,798 2.4 %
Total deposits $ 856,503 100.0 % $ 821,169 100.0 % $ 744,173 100.0 %
 
First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Amounts in thousands, except per share data
             
 
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30, June 30,
2015 2015 2014 2015 2014
 
Total equity - GAAP $ 99,908 $ 99,362 $ 94,534 $ 99,908 $ 94,534
Adjustments:
Goodwill   (4,687 )   (4,687 )   (4,687 )   (4,687 )   (4,687 )
Tangible common equity $ 95,221   $ 94,675   $ 89,847   $ 95,221   $ 89,847  
 
Total assets - GAAP $ 1,104,645 $ 1,035,677 $ 868,107 $ 1,104,645 $ 868,107
Adjustments:
Goodwill   (4,687 )   (4,687 )   (4,687 )   (4,687 )   (4,687 )
Tangible assets $ 1,099,958   $ 1,030,990   $ 863,420   $ 1,099,958   $ 863,420  
 
Common shares outstanding 4,484,513 4,484,513 4,449,619 4,484,513 4,449,619
 
Book value per common share $ 22.28 $ 22.16 $ 21.25 $ 22.28 $ 21.25
Effect of goodwill   (1.05 )   (1.05 )   (1.06 )   (1.05 )   (1.06 )
Tangible book value per common share $ 21.23   $ 21.11   $ 20.19   $ 21.23   $ 20.19  
 
Total shareholders' equity to assets ratio 9.04 % 9.59 % 10.89 % 9.04 % 10.89 %
Effect of goodwill   (0.38 %)   (0.41 %)   (0.48 %)   (0.38 %)   (0.48 %)
Tangible common equity to tangible assets ratio   8.66 %   9.18 %   10.41 %   8.66 %   10.41 %
 
Total average equity - GAAP $ 99,333 $ 97,844 $ 92,641 $ 98,592 $ 92,230
Adjustments:
Average goodwill   (4,687 )   (4,687 )   (4,687 )   (4,687 )   (4,687 )
Average tangible common equity $ 94,646   $ 93,157   $ 87,954   $ 93,905   $ 87,543  
 
Return on average shareholders' equity 9.15 % 8.55 % 4.23 % 8.85 % 3.45 %
Effect of goodwill   0.45 %   0.43 %   0.23 %   0.44 %   0.18 %
Return on average tangible common equity   9.60 %   8.98 %   4.46 %   9.29 %   3.63 %
 
     
First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Amounts in thousands
   
 
Three Months Ended
 
June 30, March 31, June 30,
2015 2015 2014
 
Net income - GAAP $ 2,265 $ 2,063 $ 977
Adjustments:
Expenses and asset writedowns associated with staffing-related changes (1)   102     -     -  
Net income - adjusted $ 2,367   $ 2,063   $ 977  
 
Return on average assets - GAAP 0.84 % 0.84 % 0.45 %
Effect of adjustments   0.03 %   -     -  
Return on average assets - adjusted   0.87 %   0.84 %   0.45 %
 
Return on average shareholders' equity - GAAP 9.15 % 8.55 % 4.23 %
Effect of adjustments   0.41 %   -     -  
Return on average shareholders' equity - adjusted   9.56 %   8.55 %   4.23 %
 
Return on average tangible common equity 9.60 % 8.98 % 4.46 %
Effect of adjustments   0.43 %   -     -  
Return on average tangible common equity - adjusted   10.03 %   8.98 %   4.46 %
 
(1) Effective tax rate of 35.6% applied.

Contacts

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

Release Summary

First Internet Bancorp Reports Another Quarterly Net Income Record

Contacts

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