FISHERS, Ind.--(BUSINESS WIRE)--First Internet Bancorp (the “Company”) (NASDAQ: INBK), the parent company of First Internet Bank (www.firstib.com), announced today financial and operational results for the second quarter 2016.
David Becker, Chairman, President and Chief Executive Officer, commented, “First Internet Bancorp continues to grow at an exceptional rate, with assets up more than 54% from one year ago. Our growth is meaningful because it produced outstanding interest and noninterest income results, fueling another quarter of record net income.
“We are reporting continued strong loan growth in both commercial and consumer loans, funded by deposit generation. To support our expanding balance sheet, we raised $22.8 million of equity capital during the quarter in an underwritten offering combined with sales through an ‘at-the-market’ equity offering program.
“Importantly, the growth of our net income outweighed the effect of the newly issued shares. Diluted earnings per share of $0.57 were up $0.04 per share over the linked quarter and $0.07 over second quarter 2015. Our results reflect our ability to execute our strategy and perform at a high level for a sustained period.”
Second quarter net income was a record $2.8 million and diluted earnings per share were $0.57. This compares with first quarter net income of $2.4 million and diluted earnings per share of $0.53 and second quarter 2015 net income of $2.3 million and diluted earnings per share of $0.50.
Highlights for the second quarter 2016 included:
- Diluted earnings per share of $0.57, increasing $0.04, or 7.5%, compared to the linked quarter and increasing $0.07, or 14.0%, compared to the second quarter 2015
-
Solid quarterly performance
- Return on average assets of 0.71%
- Return on average shareholders’ equity of 9.67%
- Return on average tangible common equity of 10.07%
- Total loan growth of $70.9 million, or 6.8%, compared to March 31, 2016 and $297.4 million, or 36.5%, compared to June 30, 2015
- Total deposit growth of $145.8 million, or 11.7%, compared to March 31, 2016 and $532.4 million, or 62.2%, compared to June 30, 2015
- Net interest income of $9.3 million, increasing $1.7 million, or 22.9%, compared to the second quarter 2015
- Noninterest income, excluding the gain on sale of securities and the loss on fixed assets discussed below, of $3.6 million, increasing $1.1 million, or 46.0%, compared to the second quarter 2015
-
Strengthened capital levels following the equity offerings
- Tangible common equity to tangible assets of 7.72%
- Tier 1 leverage ratio of 8.08%
- Common equity tier 1 capital ratio of 10.66%
- Tier 1 capital ratio of 10.66%
- Total risk-based capital ratio of 12.54%
During the second quarter, the Company recognized certain expenses associated with exiting its former headquarters location. Specifically, a lease impairment of $130,000 was recorded in noninterest expense and a loss on fixed assets of $45,000 related to the location was recorded as a reduction to noninterest income. In the aggregate, these items had a negative impact on diluted earnings per share of $0.02. Also during the second quarter, the provision for loan losses included a specific allowance of $0.5 million related to a commercial and industrial loan that was placed on nonaccrual status. Net of the impact of transferring the loan from the general reserve, this item negatively impacted pre-tax income by $0.4 million, or $0.05 per diluted share. Additionally, the Company recognized a gain on sale of investment securities of $177,000, or $0.02 per diluted share.
Net Interest Income and Net Interest Margin
Net interest income for the second quarter was $9.3 million compared to $9.1 million for the first quarter and $7.6 million for the second quarter 2015. Total interest income for the second quarter was $14.0 million, increasing $1.3 million, or 10.1%, compared to the first quarter and $3.8 million, or 37.9%, compared to the second quarter 2015. The increase in total interest income compared to the linked quarter was driven by a $133.4 million, or 59.3%, increase in average investment balances and an $81.3 million, or 8.2%, increase in average loans receivable. The growth in average investment and loan balances was partially offset by a decline of 18 bps in the yield earned on the loan portfolio from 4.43% for the first quarter to 4.25% for the second quarter. The decrease was driven primarily by a decline in prepayment fees related to commercial real estate loans and accelerated premium amortization related to early payoffs of purchased residential mortgages.
Total interest expense for the second quarter was $4.7 million, increasing $1.1 million, or 31.3%, compared to the first quarter and $2.1 million, or 82.4%, compared to the second quarter 2015. Average interest-bearing deposit balances increased $251.8 million, or 24.4%, compared to the linked quarter with the related cost of funds increasing 11 bps from 1.12% in the first quarter to 1.23% in the second quarter. The average interest-bearing deposit balance growth was driven primarily by an increase in average certificates of deposit balances of $233.5 million, or 41.5%, compared to the linked quarter. During the second quarter, the Company produced $168.1 million of new CD balances, which continued to enhance liquidity and asset/liability management. Most of the new CDs were in medium and long duration products as the weighted average term of the new production was approximately 28 months. As a result, the cost of funds related to CDs increased 9 bps during the quarter to 1.52% from 1.43% for the first quarter. Additionally, the cost of funds related to Advances from the Federal Home Loan Bank increased 36 bps as one $50.0 million borrowing converted from its first year floating rate of 0.00% (3 Month LIBOR less 75 bps) to a fixed rate of 1.05% for its remaining four year term. Overall, the total cost of interest-bearing liabilities increased 13 bps during the quarter to 1.30% from 1.17% for the first quarter.
Net interest margin (“NIM”) was 2.39% for the second quarter compared to 2.78% for the first quarter and 2.87% for the second quarter 2015. The effect of the decline in prepayment fees related to commercial real estate loans and accelerated premium amortization related to early payoffs of purchased residential mortgages combined with higher deposit costs contributed significantly to the quarterly decline in NIM, partially offset by the growth in the investment portfolio. Additionally, the Company carried excess liquidity during the quarter as cash inflows generated from year-to-date deposit activity and proceeds from the equity offerings outpaced loan growth and investment purchases, which also negatively impacted NIM.
Noninterest Income
Noninterest income for the second quarter was $3.7 million compared to $2.5 million for the first quarter and $2.5 million for the second quarter 2015. Excluding the gain on sale of securities of $177,000 and the loss on fixed assets of $45,000 related to the former headquarters location, the increase of $1.1 million, or 42.4%, compared to the linked quarter was driven by an increase of $1.0 million, or 46.2%, in mortgage banking revenue resulting from higher origination volumes and an improvement in gain on sale margin.
Noninterest Expense
Noninterest expense for the second quarter was $7.9 million compared to $7.0 million for the first quarter and $6.3 million for the second quarter 2015. Excluding the lease impairment related to the former headquarters location, the increase of $0.7 million, or 10.6%, compared to the linked quarter was due primarily to higher salaries and employee benefits and consulting and professional fees. The increase in salaries and employee benefits resulted from higher incentive compensation related to increased mortgage production and personnel growth. The increase in consulting and professional fees was due to higher legal expenses and consulting engagements that occurred during the quarter.
Income Taxes
Income tax expense was $1.4 million for the second quarter, resulting in an effective tax rate of 33.4%, compared to $1.3 million and an effective tax rate of 34.8% for the linked quarter and $1.2 million and an effective tax rate of 33.7% for the second quarter 2015.
Loans and Credit Quality
Total loans as of June 30, 2016 were $1.1 billion, increasing $70.9 million, or 6.8%, compared to March 31, 2016 and $297.4 million, or 36.5%, compared to June 30, 2015. Total commercial loan balances were $725.0 million as of June 30, 2016, increasing $58.6 million, or 8.8%, compared to March 31, 2016 and $276.0 million, or 61.5%, compared to June 30, 2015. Continued strong production in single tenant lease financing balances contributed significantly to the growth as balances increased $55.4 million, or 12.4%, compared to March 31, 2016 and $221.0 million, or 79.0%, compared to June 30, 2015. Commercial and industrial and owner-occupied commercial real estate production was solid as balances increased $4.2 million on a combined basis, or 2.8%, compared to March 31, 2016 and $29.0 million, or 22.5%, compared to June 30, 2015. Construction loan originations also continued to grow during the second quarter as balances increased $0.8 million, or 1.5%, compared to March 31, 2016 and $33.2 million, or 164.8%, compared to June 30, 2015.
Total consumer loan balances were $382.8 million as of June 30, 2016, increasing $12.9 million, or 3.5%, compared to March 31, 2016 and $22.3 million, or 6.2%, compared to June 30, 2015. Due to the Company’s recent initiative in financing home improvement loans, other consumer loans continued to grow as balances increased $12.3 million, or 120.4%, compared to March 31, 2016 and $19.9 million, or 733.3%, compared to June 30, 2015. The trailer portfolio also had a solid quarter as balances increased $4.9 million, or 7.1%, compared to March 31, 2016 and $8.7 million, or 13.2%, compared to June 30, 2015. Recreational vehicle lending contributed to the growth as well as balances increased $3.2 million, or 7.7%, compared to March 31, 2016 and $10.0 million, or 29.2%, compared to June 30, 2015.
Overall credit quality continued to remain strong as total delinquencies 30 days or more past due as a percentage of total loans receivable dropped to 0.09% as of June 30, 2016 from 0.12% as of March 31, 2016. During the quarter, a commercial and industrial loan with an outstanding balance of $4.7 million was placed on nonaccrual status and a specific allowance of $0.5 million was added to the allowance for loan losses. As a result, nonperforming loans to loans receivable increased to 0.51% as of June 30, 2016 from 0.04% as of March 31, 2016 and 0.02% as of June 30, 2015. Additionally, nonperforming assets to total assets increased to 0.60% as of June 30, 2016 from 0.32% as of March 31, 2016 and 0.43% as of June 30, 2015.
The allowance for loan losses was $10.0 million as of June 30, 2016 compared to $9.2 million as of March 31, 2016 and $7.1 million as of June 30, 2015. Due to the increase in nonperforming loans, the allowance as a percentage of total nonperforming loans declined to 177.6% as of June 30, 2016 from 2,512.3% as of March 31, 2016 and 3,762.2% as of June 30, 2015. The allowance as a percentage of total loans receivable was 0.90% as of June 30, 2016 compared to 0.89% as of March 31, 2016 and 0.87% as of June 30, 2015.
Net charge-offs of $0.1 million were recognized during the second quarter, resulting in net charge-offs to average loans receivable of 0.05% as compared to 0.03% for the first quarter and net recoveries of 0.20% for the second quarter 2015. The provision for loan losses in the second quarter was $0.9 million compared to $0.9 million for the first quarter and $0.3 million for the second quarter 2015.
Capital
During the second quarter, total shareholders’ equity increased $27.8 million, due primarily to capital raising activities that included an underwritten offering of 895,955 shares of common stock and sales of an additional 139,811 shares in an “at-the-market” equity offering program. In the aggregate, the offerings resulted in $22.8 million of net proceeds for the Company. Additionally, net income earned during the quarter and the change in the unrealized gain/loss related to the investment portfolio contributed to the increase in total shareholders’ equity, partially offset by declared dividends. As of June 30, 2016, the Company’s tier 1 leverage, common equity tier 1, tier 1 and total risk-based capital ratios were 8.08%, 10.66%, 10.66% and 12.54% compared to 7.65%, 9.38%, 9.38% and 11.38% as of March 31, 2016, respectively. The increases in regulatory capital ratios were due to the equity offerings, partially offset by continued average asset and risk-weighted asset growth. Tangible common equity to tangible assets increased 95 bps during the second quarter to 7.72% as a result of the equity offerings, partially offset by strong balance sheet growth. Tangible book value per share increased to $23.67 as of June 30, 2016 from $22.93 as of March 31, 2016 and $21.23 as of June 30, 2015.
About First Internet Bancorp
First Internet Bancorp is the parent company of First Internet Bank of Indiana, 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, a “Best Place to Work in Indiana” by a consortium of statewide resources, and 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; 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.”
| 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, | |||||||||||||||||||
| 2016 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
| Net income | $ | 2,834 | $ | 2,432 | $ | 2,265 | $ | 5,266 | $ | 4,328 | |||||||||||||
| Per share and share information | |||||||||||||||||||||||
| Earnings per share - basic | $ | 0.57 | $ | 0.54 | $ | 0.50 | $ | 1.11 | $ | 0.96 | |||||||||||||
| Earnings per share - diluted | 0.57 | 0.53 | 0.50 | 1.10 | 0.95 | ||||||||||||||||||
| Dividends declared per share | 0.06 | 0.06 | 0.06 | 0.12 | 0.12 | ||||||||||||||||||
| Book value per common share | 24.52 | 23.98 | 22.28 | 24.52 | 22.28 | ||||||||||||||||||
| Tangible book value per common share | 23.67 | 22.93 | 21.23 | 23.67 | 21.23 | ||||||||||||||||||
| Common shares outstanding | 5,533,050 | 4,497,284 | 4,484,513 | 5,533,050 | 4,484,513 | ||||||||||||||||||
| Average common shares outstanding: | |||||||||||||||||||||||
| Basic | 4,972,759 | 4,541,728 | 4,529,823 | 4,757,243 | 4,523,336 | ||||||||||||||||||
| Diluted | 4,992,025 | 4,575,555 | 4,550,034 | 4,782,700 | 4,536,736 | ||||||||||||||||||
| Performance ratios | |||||||||||||||||||||||
| Return on average assets | 0.71 | % | 0.72 | % | 0.84 | % | 0.72 | % | 0.84 | % | |||||||||||||
| Return on average shareholders' equity | 9.67 | % | 9.20 | % | 9.15 | % | 9.45 | % | 8.85 | % | |||||||||||||
| Return on average tangible common equity | 10.07 | % | 9.63 | % | 9.60 | % | 9.86 | % | 9.29 | % | |||||||||||||
| Net interest margin | 2.39 | % | 2.78 | % | 2.87 | % | 2.57 | % | 2.86 | % | |||||||||||||
| Capital ratios 1 | |||||||||||||||||||||||
| Tangible common equity to tangible assets | 7.72 | % | 6.77 | % | 8.66 | % | 7.72 | % | 8.66 | % | |||||||||||||
| Tier 1 leverage ratio | 8.08 | % | 7.65 | % | 8.93 | % | 8.08 | % | 8.93 | % | |||||||||||||
| Common equity tier 1 capital ratio | 10.66 | % | 9.38 | % | 11.12 | % | 10.66 | % | 11.12 | % | |||||||||||||
| Tier 1 capital ratio | 10.66 | % | 9.38 | % | 11.12 | % | 10.66 | % | 11.12 | % | |||||||||||||
| Total risk-based capital ratio | 12.54 | % | 11.38 | % | 12.28 | % | 12.54 | % | 12.28 | % | |||||||||||||
| Asset quality | |||||||||||||||||||||||
| Nonperforming loans | $ | 5,639 | $ | 367 | $ | 188 | $ | 5,639 | $ | 188 | |||||||||||||
| Nonperforming assets | 10,173 | 4,930 | 4,765 | 10,173 | 4,765 | ||||||||||||||||||
| Nonperforming loans to loans receivable | 0.51 | % | 0.04 | % | 0.02 | % | 0.51 | % | 0.02 | % | |||||||||||||
| Nonperforming assets to total assets | 0.60 | % | 0.32 | % | 0.43 | % | 0.60 | % | 0.43 | % | |||||||||||||
| Allowance for loan losses to: | |||||||||||||||||||||||
| Loans receivable | 0.90 | % | 0.89 | % | 0.87 | % | 0.90 | % | 0.87 | % | |||||||||||||
| Nonperforming loans | 177.6 | % | 2,512.3 | % | 3,762.2 | % | 177.6 | % | 3,762.2 | % | |||||||||||||
|
Net charge-offs (recoveries) to average loans receivable |
0.05 | % | 0.03 | % | (0.20 |
%) |
0.04 | % | (0.14 | %) | |||||||||||||
| Average balance sheet information | |||||||||||||||||||||||
| Loans receivable | $ | 1,072,901 | $ | 991,614 | $ | 787,339 | $ | 1,032,257 | $ | 766,512 | |||||||||||||
| Securities available-for-sale | 358,498 | 225,077 | 181,864 | 291,787 | 163,654 | ||||||||||||||||||
| Other earning assets | 97,774 | 78,291 | 49,001 | 88,033 | 45,342 | ||||||||||||||||||
| Total interest-earning assets | 1,566,554 | 1,323,536 | 1,056,485 | 1,445,045 | 1,012,082 | ||||||||||||||||||
| Total assets | 1,596,504 | 1,352,832 | 1,085,118 | 1,474,668 | 1,040,731 | ||||||||||||||||||
| Noninterest-bearing deposits | 27,687 | 22,899 | 20,697 | 25,293 | 21,477 | ||||||||||||||||||
| Interest-bearing deposits | 1,284,952 | 1,033,144 | 822,735 | 1,159,048 | 792,494 | ||||||||||||||||||
| Total deposits | 1,312,639 | 1,056,043 | 843,432 | 1,184,341 | 813,971 | ||||||||||||||||||
| Shareholders' equity | 117,913 | 106,278 | 99,333 | 112,096 | 98,592 | ||||||||||||||||||
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, | ||||||||||||
| 2016 | 2016 | 2015 | ||||||||||||
| Assets | ||||||||||||||
| Cash and due from banks | $ | 1,868 | $ | 2,411 | $ | 1,713 | ||||||||
| Interest-bearing demand deposits | 68,140 | 98,533 | 28,889 | |||||||||||
| Interest-bearing time deposits | 250 | 1,000 | 1,250 | |||||||||||
| Securities available-for-sale, at fair value | 433,806 | 315,311 | 190,767 | |||||||||||
| Loans held-for-sale | 44,503 | 29,491 | 29,872 | |||||||||||
| Loans receivable | 1,111,622 | 1,040,683 | 814,243 | |||||||||||
| Allowance for loan losses | (10,016 | ) | (9,220 | ) | (7,073 | ) | ||||||||
| Net loans receivable | 1,101,606 | 1,031,463 | 807,170 | |||||||||||
| Accrued interest receivable | 5,508 | 4,528 | 3,550 | |||||||||||
| Federal Home Loan Bank of Indianapolis stock | 8,595 | 8,595 | 6,946 | |||||||||||
| Cash surrender value of bank-owned life insurance | 12,932 | 12,826 | 12,524 | |||||||||||
| Premises and equipment, net | 9,267 | 8,485 | 8,120 | |||||||||||
| Goodwill | 4,687 | 4,687 | 4,687 | |||||||||||
| Other real estate owned | 4,488 | 4,488 | 4,488 | |||||||||||
| Accrued income and other assets | 6,818 | 5,901 | 4,669 | |||||||||||
| Total assets | $ | 1,702,468 | $ | 1,527,719 | $ | 1,104,645 | ||||||||
| Liabilities | ||||||||||||||
| Noninterest-bearing deposits | $ | 28,066 | $ | 28,945 | $ | 20,994 | ||||||||
| Interest-bearing deposits | 1,360,867 | 1,214,233 | 835,509 | |||||||||||
| Total deposits | 1,388,933 | 1,243,178 | 856,503 | |||||||||||
| Advances from Federal Home Loan Bank | 147,974 | 150,969 | 140,935 | |||||||||||
| Subordinated debt | 12,778 | 12,751 | 2,915 | |||||||||||
| Accrued interest payable | 138 | 108 | 108 | |||||||||||
| Accrued expenses and other liabilities | 16,966 | 12,883 | 4,276 | |||||||||||
| Total liabilities | 1,566,789 | 1,419,889 | 1,004,737 | |||||||||||
| Shareholders' equity | ||||||||||||||
| Voting common stock | 95,642 | 72,697 | 72,218 | |||||||||||
| Retained earnings | 37,630 | 35,135 | 28,928 | |||||||||||
| Accumulated other comprehensive income (loss) | 2,407 | (2 | ) | (1,238 | ) | |||||||||
| Total shareholders' equity | 135,679 | 107,830 | 99,908 | |||||||||||
| Total liabilities and shareholders' equity | $ | 1,702,468 | $ | 1,527,719 | $ | 1,104,645 | ||||||||
| 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, | |||||||||||||||||||
| 2016 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
| Interest income | |||||||||||||||||||||||
| Loans | $ | 11,661 | $ | 11,189 | $ | 9,043 | $ | 22,850 | $ | 17,433 | |||||||||||||
| Securities - taxable | 1,747 | 1,169 | 945 | 2,916 | 1,667 | ||||||||||||||||||
| Securities - non-taxable | 368 | 165 | 59 | 533 | 59 | ||||||||||||||||||
| Other earning assets | 195 | 170 | 83 | 365 | 158 | ||||||||||||||||||
| Total interest income | 13,971 | 12,693 | 10,130 | 26,664 | 19,317 | ||||||||||||||||||
| Interest expense | |||||||||||||||||||||||
| Deposits | 3,930 | 2,888 | 2,137 | 6,818 | 4,090 | ||||||||||||||||||
| Other borrowed funds | 735 | 664 | 421 | 1,399 | 881 | ||||||||||||||||||
| Total interest expense | 4,665 | 3,552 | 2,558 | 8,217 | 4,971 | ||||||||||||||||||
| Net interest income | 9,306 | 9,141 | 7,572 | 18,447 | 14,346 | ||||||||||||||||||
| Provision for loan losses | 924 | 946 | 304 | 1,870 | 746 | ||||||||||||||||||
|
Net interest income after provision for loan losses |
8,382 | 8,195 | 7,268 | 16,577 | 13,600 | ||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||
| Service charges and fees | 215 | 200 | 193 | 415 | 369 | ||||||||||||||||||
| Mortgage banking activities | 3,295 | 2,254 | 2,214 | 5,549 | 5,100 | ||||||||||||||||||
| Gain on sale of securities | 177 | - | - | 177 | - | ||||||||||||||||||
| Loss on asset disposals | (48 | ) | (16 | ) | (33 | ) | (64 | ) | (47 | ) | |||||||||||||
| Other | 109 | 102 | 102 | 211 | 202 | ||||||||||||||||||
| Total noninterest income | 3,748 | 2,540 | 2,476 | 6,288 | 5,624 | ||||||||||||||||||
| Noninterest expense | |||||||||||||||||||||||
| Salaries and employee benefits | 4,329 | 3,898 | 3,787 | 8,227 | 7,365 | ||||||||||||||||||
| Marketing, advertising and promotion | 434 | 464 | 334 | 898 | 786 | ||||||||||||||||||
| Consulting and professional fees | 895 | 638 | 564 | 1,533 | 1,156 | ||||||||||||||||||
| Data processing | 275 | 274 | 233 | 549 | 481 | ||||||||||||||||||
| Loan expenses | 200 | 184 | 181 | 384 | 362 | ||||||||||||||||||
| Premises and equipment | 963 | 798 | 691 | 1,761 | 1,333 | ||||||||||||||||||
| Deposit insurance premium | 215 | 180 | 160 | 395 | 310 | ||||||||||||||||||
| Other | 564 | 569 | 377 | 1,133 | 791 | ||||||||||||||||||
| Total noninterest expense | 7,875 | 7,005 | 6,327 | 14,880 | 12,584 | ||||||||||||||||||
| Income before income taxes | 4,255 | 3,730 | 3,417 | 7,985 | 6,640 | ||||||||||||||||||
| Income tax provision | 1,421 | 1,298 | 1,152 | 2,719 | 2,312 | ||||||||||||||||||
| Net income | $ | 2,834 | $ | 2,432 | $ | 2,265 | $ | 5,266 | $ | 4,328 | |||||||||||||
| Per common share data | |||||||||||||||||||||||
| Earnings per share - basic | $ | 0.57 | $ | 0.54 | $ | 0.50 | $ | 1.11 | $ | 0.96 | |||||||||||||
| Earnings per share - diluted | $ | 0.57 | $ | 0.53 | $ | 0.50 | $ | 1.10 | $ | 0.95 | |||||||||||||
| 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, 2016 | March 31, 2016 | June 30, 2015 | |||||||||||||||||||||||||||||||
| 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 | $ | 1,110,282 | $ | 11,661 | 4.22 | % | $ | 1,020,168 | $ | 11,189 | 4.41 | % | $ | 825,620 | $ | 9,043 | 4.39 | % | |||||||||||||||
| Securities - taxable | 307,336 | 1,747 | 2.29 | % | 202,898 | 1,169 | 2.32 | % | 174,057 | 945 | 2.18 | % | |||||||||||||||||||||
| Securities - non-taxable | 51,162 | 368 | 2.89 | % | 22,179 | 165 | 2.99 | % | 7,807 | 59 | 3.03 | % | |||||||||||||||||||||
| Other earning assets | 97,774 | 195 | 0.80 | % | 78,291 | 170 | 0.87 | % | 49,001 | 83 | 0.68 | % | |||||||||||||||||||||
| Total interest-earning assets | 1,566,554 | 13,971 | 3.59 | % | 1,323,536 | 12,693 | 3.86 | % | 1,056,485 | 10,130 | 3.85 | % | |||||||||||||||||||||
| Allowance for loan losses | (9,472 | ) | (8,655 | ) | (6,545 | ) | |||||||||||||||||||||||||||
| Noninterest-earning assets | 39,422 | 37,951 | 35,178 | ||||||||||||||||||||||||||||||
| Total assets | $ | 1,596,504 | $ | 1,352,832 | $ | 1,085,118 | |||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 83,712 | $ | 114 | 0.55 | % | $ | 81,338 | $ | 111 | 0.55 | % | $ | 76,095 | $ | 104 | 0.55 | % | |||||||||||||||
| Regular savings accounts | 28,023 | 40 | 0.57 | % | 25,021 | 36 | 0.58 | % | 23,873 | 34 | 0.57 | % | |||||||||||||||||||||
| Money market accounts | 363,767 | 641 | 0.71 | % | 350,809 | 616 | 0.71 | % | 282,015 | 503 | 0.72 | % | |||||||||||||||||||||
| Certificates and brokered deposits | 809,450 | 3,135 | 1.56 | % | 575,976 | 2,125 | 1.48 | % | 440,752 | 1,496 | 1.36 | % | |||||||||||||||||||||
| Total interest-bearing deposits | 1,284,952 | 3,930 | 1.23 | % | 1,033,144 | 2,888 | 1.12 | % | 822,735 | 2,137 | 1.04 | % | |||||||||||||||||||||
| Other borrowed funds | 161,127 | 735 | 1.83 | % | 185,618 | 664 | 1.44 | % | 137,421 | 421 | 1.23 | % | |||||||||||||||||||||
| Total interest-bearing liabilities | 1,446,079 | 4,665 | 1.30 | % | 1,218,762 | 3,552 | 1.17 | % | 960,156 | 2,558 | 1.07 | % | |||||||||||||||||||||
| Noninterest-bearing deposits | 27,687 | 22,899 | 20,697 | ||||||||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 4,825 | 4,893 | 4,932 | ||||||||||||||||||||||||||||||
| Total liabilities | 1,478,591 | 1,246,554 | 985,785 | ||||||||||||||||||||||||||||||
| Shareholders' equity | 117,913 | 106,278 | 99,333 | ||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,596,504 | $ | 1,352,832 | $ | 1,085,118 | |||||||||||||||||||||||||||
| Net interest income | $ | 9,306 | $ | 9,141 | $ | 7,572 | |||||||||||||||||||||||||||
| Interest rate spread | 2.29 | % | 2.69 | % | 2.78 | % | |||||||||||||||||||||||||||
| Net interest margin | 2.39 | % | 2.78 | % | 2.87 | % | |||||||||||||||||||||||||||
| First Internet Bancorp | |||||||||||||||||||||||
| Average Balances and Rates (unaudited) | |||||||||||||||||||||||
| Amounts in thousands | |||||||||||||||||||||||
| Six Months Ended | |||||||||||||||||||||||
| June 30, 2016 | June 30, 2015 | ||||||||||||||||||||||
| Average | Interest / | Yield / | Average | Interest / | Yield / | ||||||||||||||||||
| Balance | Dividends | Cost | Balance | Dividends | Cost | ||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Interest-earning assets | |||||||||||||||||||||||
| Loans, including loans held-for-sale | $ | 1,065,225 | $ | 22,850 | 4.31 | % | $ | 803,086 | $ | 17,433 | 4.38 | % | |||||||||||
| Securities - taxable | 255,116 | 2,916 | 2.30 | % | 159,729 | 1,667 | 2.10 | % | |||||||||||||||
| Securities - non-taxable | 36,671 | 533 | 2.92 | % | 3,925 | 59 | 3.03 | % | |||||||||||||||
| Other earning assets | 88,033 | 365 | 0.83 | % | 45,342 | 158 | 0.70 | % | |||||||||||||||
| Total interest-earning assets | 1,445,045 | 26,664 | 3.71 | % | 1,012,082 | 19,317 | 3.85 | % | |||||||||||||||
| Allowance for loan losses | (9,063 | ) | (6,215 | ) | |||||||||||||||||||
| Noninterest-earning assets | 38,686 | 34,864 | |||||||||||||||||||||
| Total assets | $ | 1,474,668 | $ | 1,040,731 | |||||||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 82,525 | $ | 225 | 0.55 | % | $ | 75,752 | $ | 206 | 0.55 | % | |||||||||||
| Regular savings accounts | 26,522 | 76 | 0.58 | % | 22,991 | 66 | 0.58 | % | |||||||||||||||
| Money market accounts | 357,288 | 1,257 | 0.71 | % | 278,185 | 995 | 0.72 | % | |||||||||||||||
| Certificates and brokered deposits | 692,713 | 5,260 | 1.53 | % | 415,566 | 2,823 | 1.37 | % | |||||||||||||||
| Total interest-bearing deposits | 1,159,048 | 6,818 | 1.18 | % | 792,494 | 4,090 | 1.04 | % | |||||||||||||||
| Other borrowed funds | 173,372 | 1,399 | 1.62 | % | 123,680 | 881 | 1.44 | % | |||||||||||||||
| Total interest-bearing liabilities | 1,332,420 | 8,217 | 1.24 | % | 916,174 | 4,971 | 1.09 | % | |||||||||||||||
| Noninterest-bearing deposits | 25,293 | 21,477 | |||||||||||||||||||||
| Other noninterest-bearing liabilities | 4,859 | 4,488 | |||||||||||||||||||||
| Total liabilities | 1,362,572 | 942,139 | |||||||||||||||||||||
| Shareholders' equity | 112,096 | 98,592 | |||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,474,668 | $ | 1,040,731 | |||||||||||||||||||
| Net interest income | $ | 18,447 | $ | 14,346 | |||||||||||||||||||
| Interest rate spread | 2.47 | % | 2.76 | % | |||||||||||||||||||
| Net interest margin | 2.57 | % | 2.86 | % | |||||||||||||||||||
| First Internet Bancorp | |||||||||||||||||||||
| Loans and Deposits (unaudited) | |||||||||||||||||||||
| Amounts in thousands | |||||||||||||||||||||
| June 30, 2016 | March 31, 2016 | June 30, 2015 | |||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||
| Commercial loans | |||||||||||||||||||||
| Commercial and industrial | $ | 111,130 | 10.0 | % | $ | 106,431 | 10.2 | % | $ | 89,316 | 11.0 | % | |||||||||
| Owner-occupied commercial real estate | 46,543 | 4.2 | % | 47,010 | 4.5 | % | 39,405 | 4.8 | % | ||||||||||||
| Investor commercial real estate | 12,976 | 1.2 | % | 14,756 | 1.4 | % | 20,163 | 2.5 | % | ||||||||||||
| Construction | 53,368 | 4.8 | % | 52,591 | 5.1 | % | 20,155 | 2.5 | % | ||||||||||||
| Single tenant lease financing | 500,937 | 45.1 | % | 445,534 | 42.8 | % | 279,891 | 34.4 | % | ||||||||||||
| Total commercial loans | 724,954 | 65.3 | % | 666,322 | 64.0 | % | 448,930 | 55.2 | % | ||||||||||||
| Consumer loans | |||||||||||||||||||||
| Residential mortgage | 202,107 | 18.2 | % | 208,636 | 20.1 | % | 207,703 | 25.5 | % | ||||||||||||
| Home equity | 38,981 | 3.5 | % | 40,000 | 3.8 | % | 49,662 | 6.1 | % | ||||||||||||
| Trailers | 74,777 | 6.7 | % | 69,845 | 6.7 | % | 66,080 | 8.1 | % | ||||||||||||
| Recreational vehicles | 44,387 | 4.0 | % | 41,227 | 4.0 | % | 34,366 | 4.2 | % | ||||||||||||
| Other consumer loans | 22,592 | 2.0 | % | 10,251 | 1.0 | % | 2,711 | 0.3 | % | ||||||||||||
| Total consumer loans | 382,844 | 34.4 | % | 369,959 | 35.6 | % | 360,522 | 44.2 | % | ||||||||||||
| Net deferred loan fees, premiums and discounts | 3,824 | 0.3 | % | 4,402 | 0.4 | % | 4,791 | 0.6 | % | ||||||||||||
| Total loans receivable | $ | 1,111,622 | 100.0 | % | $ | 1,040,683 | 100.0 | % | $ | 814,243 | 100.0 | % | |||||||||
| June 30, 2016 | March 31, 2016 | June 30, 2015 | |||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||
| Deposits | |||||||||||||||||||||
| Noninterest-bearing deposits | $ | 28,066 | 2.0 | % | $ | 28,945 | 2.3 | % | $ | 20,994 | 2.5 | % | |||||||||
| Interest-bearing demand deposits | 83,031 | 6.0 | % | 89,180 | 7.2 | % | 77,822 | 9.1 | % | ||||||||||||
| Regular savings accounts | 28,900 | 2.1 | % | 27,279 | 2.2 | % | 24,405 | 2.8 | % | ||||||||||||
| Money market accounts | 373,932 | 26.9 | % | 366,195 | 29.5 | % | 278,791 | 32.5 | % | ||||||||||||
| Certificates of deposits | 862,150 | 62.1 | % | 718,733 | 57.8 | % | 440,936 | 51.5 | % | ||||||||||||
| Brokered deposits | 12,854 | 0.9 | % | 12,846 | 1.0 | % | 13,555 | 1.6 | % | ||||||||||||
| Total deposits | $ | 1,388,933 | 100.0 | % | $ | 1,243,178 | 100.0 | % | $ | 856,503 | 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, | |||||||||||||||||
| 2016 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
| Total equity - GAAP | $ | 135,679 | $ | 107,830 | $ | 99,908 | $ | 135,679 | $ | 99,908 | |||||||||||
| Adjustments: | |||||||||||||||||||||
| Goodwill | (4,687 | ) | (4,687 | ) | (4,687 | ) | (4,687 | ) | (4,687 | ) | |||||||||||
| Tangible common equity | $ | 130,992 | $ | 103,143 | $ | 95,221 | $ | 130,992 | $ | 95,221 | |||||||||||
| Total assets - GAAP | $ | 1,702,468 | $ | 1,527,719 | $ | 1,104,645 | $ | 1,702,468 | $ | 1,104,645 | |||||||||||
| Adjustments: | |||||||||||||||||||||
| Goodwill | (4,687 | ) | (4,687 | ) | (4,687 | ) | (4,687 | ) | (4,687 | ) | |||||||||||
| Tangible assets | $ | 1,697,781 | $ | 1,523,032 | $ | 1,099,958 | $ | 1,697,781 | $ | 1,099,958 | |||||||||||
| Common shares outstanding | 5,533,050 | 4,497,284 | 4,484,513 | 5,533,050 | 4,484,513 | ||||||||||||||||
| Book value per common share | $ | 24.52 | $ | 23.98 | $ | 22.28 | $ | 24.52 | $ | 22.28 | |||||||||||
| Effect of goodwill | (0.85 | ) | (1.05 | ) | (1.05 | ) | (0.85 | ) | (1.05 | ) | |||||||||||
| Tangible book value per common share | $ | 23.67 | $ | 22.93 | $ | 21.23 | $ | 23.67 | $ | 21.23 | |||||||||||
| Total shareholders' equity to assets ratio | 7.97 | % | 7.06 | % | 9.04 | % | 7.97 | % | 9.04 | % | |||||||||||
| Effect of goodwill | (0.25 | %) | (0.29 | %) | (0.38 | %) | (0.25 | %) | (0.38 | %) | |||||||||||
| Tangible common equity to tangible assets ratio | 7.72 | % | 6.77 | % | 8.66 | % | 7.72 | % | 8.66 | % | |||||||||||
| Total average equity - GAAP | $ | 117,913 | $ | 106,278 | $ | 99,333 | $ | 112,096 | $ | 98,592 | |||||||||||
| Adjustments: | |||||||||||||||||||||
| Average goodwill | (4,687 | ) | (4,687 | ) | (4,687 | ) | (4,687 | ) | (4,687 | ) | |||||||||||
| Average tangible common equity | $ | 113,226 | $ | 101,591 | $ | 94,646 | $ | 107,409 | $ | 93,905 | |||||||||||
| Return on average shareholders' equity | 9.67 | % | 9.20 | % | 9.15 | % | 9.45 | % | 8.85 | % | |||||||||||
| Effect of goodwill | 0.40 | % | 0.43 | % | 0.45 | % | 0.41 | % | 0.44 | % | |||||||||||
| Return on average tangible common equity | 10.07 | % | 9.63 | % | 9.60 | % | 9.86 | % | 9.29 | % | |||||||||||
