First Internet Bancorp Announces Pricing of $25 Million of Subordinated Notes

FISHERS, Ind.--()--First Internet Bancorp (the “Company”) (NASDAQ:INBK), the parent company of First Internet Bank (the “Bank”) (www.firstib.com), today announced the pricing of a public offering of $25 million aggregate principal amount of its 6.00% Fixed-to-Floating Rate Subordinated Notes due 2026 (the “Notes”). The Notes will bear interest at a fixed rate of 6.00% per year to, but excluding September 30, 2021. From and including September 30, 2021 and through maturity or earlier redemption, the interest rate on the Notes will reset quarterly to an annual interest rate equal to the then-current three-month LIBOR rate plus 485 basis points. Interest will be payable quarterly in arrears on December 30, March 30, June 30 and September 30 of each year beginning on December 30, 2016. The Company has granted the underwriters the right to purchase an additional $3.75 million aggregate principal amount of Notes at the public offering price, less the underwriting discounts, within 30 days from the date of the final prospectus supplement. Sandler O’Neill + Partners is serving as sole book-running manager for the offering.

The Notes will be issued in denominations of $25 and integral multiples of $25 in excess thereof. The Company has applied to list the Notes on the NASDAQ Global Market. If the application is approved, trading in the Notes on NASDAQ is expected to begin within 30 days of the original issue date of the Notes.

The Company intends to use the net proceeds from the offering to support the Bank’s organic growth, pursuing strategic acquisition opportunities and other general corporate purposes which may include contributing capital to the Bank and reducing or redeeming existing debt. The Company does not have any immediate plans, arrangements or understandings related to any material acquisition.

The Notes will be issued pursuant to an effective shelf registration statement (File No. 333-208748) (including a base prospectus), a preliminary prospectus supplement filed with the Securities and Exchange Commission (the “SEC”) and a final prospectus supplement to be filed with the SEC. Before you invest, you should read the prospectus in the registration statement, the prospectus supplement and other documents the Company has filed with the SEC for more complete information about the Company and this offering. You may get these documents for free by visiting the SEC’s website at www.sec.gov or by contacting Sandler O’Neill + Partners, L.P., 1251 Avenue of the Americas, 6th Floor, New York, New York 10020, Attn: Syndicate Operations (1-866-805-4128).

This press release is for informational purposes only and is not an offer to sell or the solicitation of an offer to sell the Notes, which is made only by means of a prospectus supplement and related prospectus, nor will there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Securities and Exchange Act of 1934, as amended, including statements regarding the timing and nature of future sales of Company securities, uses of proceeds from the same, and plans relating to future acquisitions. 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; risks related to the satisfaction of the closing conditions of the underwritten offering; 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 communication, 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.

Contacts

Investors/Analysts
Paula Deemer, (317) 428-4628
Investor Relations
investors@firstib.com
or
Media
Nicole Lorch, (317) 532-7906
Senior Vice President, Retail Banking
nlorch@firstib.com

Release Summary

First Internet Bancorp Announces Pricing of $25 Million of Subordinated Notes

Contacts

Investors/Analysts
Paula Deemer, (317) 428-4628
Investor Relations
investors@firstib.com
or
Media
Nicole Lorch, (317) 532-7906
Senior Vice President, Retail Banking
nlorch@firstib.com