INBK
$34.23
First Internet Bcp
($.59)
(1.69%)
Earnings Details
2nd Quarter June 2022
Wednesday, July 20, 2022 4:57:00 PM
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Summary

First Internet Bcp (INBK) Recent Earnings

First Internet Bcp (INBK) reported 2nd Quarter June 2022 earnings of $1.06 per share on revenue of $40.4 million. The consensus earnings estimate was $1.10 per share on revenue of $25.6 million. Revenue fell 4.5% compared to the same quarter a year ago.

Results
Reported Earnings
$1.06
Earnings Whisper
-
Consensus Estimate
$1.10
Reported Revenue
$40.4 Mil
Revenue Estimate
$25.6 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

First Internet Bancorp Reports Second Quarter 2022 Results

Highlights for the second quarter include:

  • Quarterly net income of $9.5 million, compared to $11.2 million for the first quarter of 2022 and $13.1 million for the second quarter of 2021
  • Quarterly diluted earnings per share of $0.99, compared to $1.14 for the first quarter of 2022 and $1.31 for the second quarter of 2021
  • Quarterly adjusted net income of $10.3 million, or $1.06 per diluted share, when excluding nonrecurring expenses
  • Loan growth of $201.3 million, a 7.0% increase from the first quarter of 2022 and a 4.2% increase from the second quarter of 2021
  • Net interest margin and fully-taxable equivalent net interest margin increased 4 basis points (“bps”) and 5 bps, respectively, from the first quarter of 2022 to 2.60% and 2.74%, respectively
  • Repurchased 294,464 shares at an average price of $37.77

FISHERS, Ind.--(BUSINESS WIRE)--First Internet Bancorp (the “Company”) (Nasdaq: INBK), the parent company of First Internet Bank (the “Bank”), announced today financial and operational results for the second quarter ended June 30, 2022. Net income for the second quarter of 2022 was $9.5 million, or $0.99 diluted earnings per share. This compares to net income of $11.2 million, or $1.14 diluted earnings per share, for the first quarter of 2022, and net income of $13.1 million, or $1.31 diluted earnings per share, for the second quarter of 2021.

“Strong production in both our commercial and consumer lending businesses has driven our loan balances to an all-time high, fueling second quarter results and creating a revenue stream for future periods,” said David Becker, Chairman and Chief Executive Officer. “During the first half of 2022, portfolio loan origination yields were up 100 bps over the same time last year, allowing us to deploy existing liquidity and drive growth in net interest margin. Furthermore, loan pipelines remain healthy and we have maintained exceptional asset quality. We are well-positioned to capitalize on growth opportunities for the remainder of the year.”

Mr. Becker concluded, “To be ready to meet our current and future customers’ needs, it is imperative that we continue to attract and retain top talent. At First Internet Bank, we have long fostered a workplace culture that promotes innovation, collaboration and customer focus while supporting work-life balance. It was gratifying to be named one of the “Top Workplaces in Central Indiana” for the ninth consecutive year as a result of these efforts. As an employer of choice, we felt a responsibility to address the rapid rise in transportation, housing and food costs so our employees could devote their best mental energy to serving our customers. In the second quarter, we implemented a $20.00 minimum hourly wage for full-time employees across the company. Additionally, we paid a bonus to those employees most impacted by the current inflationary environment. These initiatives demonstrate we intend to stand behind our professionals, who stand up for our customers on a daily basis. I would like to thank the entire First Internet Bank team for their commitment and focus on executing our strategies and consistently delivering solid financial performance while providing an exceptional experience for our customers.”

Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2022 was $25.7 million, compared to $25.8 million for the first quarter of 2022, and $21.6 million for the second quarter of 2021. On a fully-taxable equivalent basis, net interest income for the second quarter of 2022 was $27.1 million, stable with the first quarter of 2022, and up compared to $23.0 million for the second quarter of 2021.

Total interest income for the second quarter of 2022 was $36.1 million, up slightly from the first quarter of 2022, and an increase of 8.2% compared to the second quarter of 2021. On a fully-taxable equivalent basis, total interest income for the second quarter of 2022 was $37.5 million, a slight increase from the first quarter of 2022, and an increase of 7.8% compared to the second quarter of 2021. Growth in interest income earned on the commercial and consumer loan portfolios, the securities portfolio and other earning assets essentially offset the decline in income earned on tax refund advance loans, which was primarily earned in the first quarter. The yield on average interest-earning assets for the second quarter of 2022 increased to 3.65% from 3.58% in the linked quarter due primarily to a 33 bp increase in the yield earned on securities and a 66 bp increase in the yield earned on other earning assets. Additionally, excluding the effect of tax refund advance loans, the yield on the loan portfolio increased 7 bps to 4.29%. Compared to the linked quarter, average loan balances increased $43.9 million, or 1.5%, while the average balance of securities decreased $28.3 million, or 4.4%, and the average balance of other earning assets decreased $133.7 million, or 29.3%. Excluding the effect of tax refund advance loans, average loan balances increased $101.2 million, or 3.5%.

Total interest expense for the second quarter of 2022 was $10.4 million, a slight increase compared to the first quarter of 2022, and a decrease of 11.4% compared to the second quarter of 2021. The increase in total interest expense compared to the linked quarter was due primarily to an increase in expense related to interest-bearing deposits, partially offset by lower expense paid on other borrowed funds.

During the second quarter of 2022, the average balance of interest-bearing deposits decreased $53.0 million, or 1.7%, compared to the first quarter of 2022 and the cost of these deposits increased 4 bps. The decrease in average interest-bearing deposit balances was due to the continued decline in average certificates and brokered deposit balances, which decreased $121.4 million, or 9.9%, during the quarter while the cost of these deposits increased 2 bps. Additionally, the average balance of money market accounts decreased $26.8 million, or 1.8%, compared to the first quarter of 2022 while the cost of these deposits increased 12 bps. This activity was partially offset by growth in average Banking-as-a-Service (“BaaS”) deposit balances, which increased $59.1 million during the quarter, and in average interest-bearing demand balances, which increased $30.0 million.

Beginning in March and through June 30, 2022, the Federal Reserve increased the Fed Funds rate 150 bps. Through this same period, the Company did not increase the rate paid on consumer, small business and commercial interest-bearing demand deposits. With regard to money market products during this period, the rate paid on consumer money market balances increased 50 bps, resulting in a cycle-to-date deposit beta of 33%, and the rate paid on small business and commercial money market balances increased 30 bps, resulting in a cycle-to-date deposit beta of 20%. As small business and commercial balances represent 62% of total money market balances and consumer balances represent 38%, the all-in cycle-to-date deposit beta on money market products is 25%.

Net interest margin (“NIM”) improved to 2.60% for the second quarter of 2022, up from 2.56% for the first quarter of 2022 and 2.11% for the second quarter of 2021. Fully-taxable equivalent NIM (“FTE NIM”) increased by 5 bps to 2.74% for the second quarter of 2022, up from 2.69% for the first quarter of 2022 and 2.25% for the second quarter of 2021. Excluding the impact of income from tax refund advance loans, adjusted FTE NIM was 2.72%, up 31 bps from the prior quarter. The increase in adjusted FTE NIM compared to the linked quarter was driven primarily by the increase in average loan balances and yields, as well as higher yields on securities and other earning assets, partially offset by the effect of higher interest-bearing deposit costs.

Noninterest Income

Noninterest income for the second quarter of 2022 was $4.3 million, compared to $6.8 million for the first quarter of 2022 and $9.0 million for the second quarter of 2021. The decrease compared to the prior quarter was driven primarily by a decrease in gain on sale of loans, lower other income and lower revenue from mortgage banking activities. Gain on sale of loans totaled $2.0 million for the second quarter of 2022, down $1.9 million, or 49.2%. The Company sold single tenant lease financing loans in the first quarter of 2022, which provided $0.4 million in gain on sale revenue, whereas revenue in the second quarter of 2022 consisted entirely of gain on the sales of U.S. Small Business Administration (“SBA”) 7(a) guaranteed loans. The decrease in revenue related to SBA loan sales was due to a lower volume of sales as well as lower net gain on sale premiums. Other income declined $0.3 million, or 55.6%, due primarily to a decline in the value of fund investments carried at fair market value. Lastly, mortgage banking revenue totaled $1.7 million for the second quarter of 2022, down $0.2 million, or 8.7%, from the linked quarter due to a decrease in interest rate locks and sold loan volume.

Noninterest Expense

Noninterest expense for the second quarter of 2022 was $18.0 million, compared to $18.8 million for the first quarter of 2022 and $15.1 million for the second quarter of 2021. The decrease of $0.8 million, or 4.2%, compared to the linked quarter was due primarily to lower loan expenses, consulting and professional fees and other expense, partially offset by increases in salaries and employee benefits and marketing costs. The decrease in loan expenses was driven primarily by lower servicing fees as $0.9 million of fees related to tax refund advance loans were incurred in the first quarter of 2022 as opposed to a nominal amount of such fees in the second quarter of 2022. The decrease in consulting and professional fees was due primarily to $0.9 million of nonrecurring consulting fees that were incurred in the linked quarter. Additionally, the Company incurred $0.1 million of acquisition-related costs in the second quarter of 2022 versus $0.2 million of such costs in the first quarter of 2022. The decrease in other expense was due to administrative and moving costs incurred in the linked quarter. The higher salaries and employee benefits expense was due mainly to $0.5 million in a discretionary inflation bonus paid to certain employees and $0.3 million of accelerated equity compensation related to employees who retired during the quarter, partially offset by lower incentive compensation in the Company’s small business lending and mortgage banking divisions. The increase in marketing costs was due to higher media costs, mortgage lead generation costs and sponsorships.

Income Taxes

The Company reported an income tax expense of $1.3 million for the second quarter of 2022 and an effective tax rate of 11.8%, compared to an income tax expense of $1.8 million and an effective tax rate of 13.8% for the first quarter of 2022 and an income tax expense of $2.4 million and an effective tax rate of 15.4% for the second quarter of 2021. The lower effective tax rate reflects the decline in noninterest income, resulting in a higher proportion of tax exempt income to total pre-tax income.

Loans and Credit Quality

Total loans as of June 30, 2022 were $3.1 billion, an increase of $201.3 million, or 7.0%, compared to March 31, 2022, and an increase of $124.5 million, or 4.2%, compared to June 30, 2021. Total commercial loan balances were $2.4 billion as of June 30, 2022, an increase of $97.7 million, or 4.2%, compared to March 31, 2022 and an increase of $3.1 million, or 0.1%, compared to June 30, 2021. Compared to the linked quarter, the increase in commercial loan balances was driven primarily by growth in franchise finance, public finance, investor commercial real estate, single tenant lease financing and commercial and industrial loan balances. These items were partially offset by net payoffs in healthcare finance.

Total consumer loan balances were $594.0 million as of June 30, 2022, an increase of $105.2 million, or 21.5%, compared to March 31, 2022 and an increase of $127.6 million, or 27.3%, compared to June 30, 2021. The increase compared to the linked quarter was due to higher balances in the residential mortgage, recreational vehicles and trailers loan portfolios.

Total delinquencies 30 days or more past due were 0.06% of total loans as of June 30, 2022 compared to 0.03% as of March 31, 2022 and 0.07% as of June 30, 2021. Overall credit quality improved during the quarter as nonperforming loans to total loans was 0.15% as of June 30, 2022, compared to 0.25% at March 31, 2022 and 0.31% as of June 30, 2021. Nonperforming loans totaled $4.5 million at quarter end, declining $2.6 million, or 36.1%, from March 31, 2022.

The allowance for loan losses as a percentage of total loans was 0.95% as of June 30, 2022, both in total and when excluding PPP loans, compared to 0.98% in both categories as of March 31, 2022 and 0.95% and 0.96%, respectively, as of June 30, 2021.

Net charge-offs of $0.3 million were recognized during the second quarter of 2022, resulting in net charge-offs to average loans of 0.04%, compared to net charge-offs to average loans of 0.05% for the first quarter of 2022 and net charge-offs to average loans of 0.35% for the second quarter of 2021. Excluding net charge-off activity related to tax refund advance loans, the Company recognized net recoveries of $0.1 million, resulting in net recoveries to average loans of 0.01%, during the second quarter of 2022. This compares to net recoveries of $1.1 million and net recoveries to average loans of 0.16% during the first quarter of 2022.

The provision for loan losses in the second quarter of 2022 was $1.2 million, compared to a provision of $0.8 million for the first quarter of 2022 and a provision of $21,000 for the second quarter of 2021. The provision for the second quarter of 2022 was driven primarily by the growth in the loan portfolio.

Capital

As of June 30, 2022, total shareholders’ equity was $365.3 million, a decrease of $9.3 million, or 2.5%, compared to March 31, 2022 and an increase of $6.7 million, or 1.9%, compared to June 30, 2021. The decline in shareholders’ equity during the second quarter of 2022 was due primarily to stock repurchase activity and an increase in accumulated other comprehensive loss resulting from a decline in the value of the available-for-sale securities portfolio caused by the continued rise in interest rates during the quarter. This was partially offset by the net income earned during the quarter and an increase in the value of interest rate swaps classified as cash flow hedges. Book value per common share increased to $38.85 as of June 30, 2022, up from $38.69 as of March 31, 2022 and up from $36.39 as of June 30, 2021. Tangible book value per share increased to $38.35, up from $38.21 and up from $35.92, each as of the same reference dates.

In connection with its previously announced stock repurchase program, the Company repurchased 294,464 shares of its common stock during the second quarter of 2022 at an average price of $37.77 per share. Including shares repurchased during the first quarter of 2022 and fourth quarter of 2021, the Company has repurchased a total of 498,167 shares at an average price of $41.50 per share under the program through June 30, 2022.

The following table presents the Company’s and the Bank’s regulatory and other capital ratios as of June 30, 2022.

As of June 30, 2022

Company

Bank

 

Total shareholders' equity to assets

8.91%

10.50%

Tangible common equity to tangible assets 1

8.81%

10.40%

Tier 1 leverage ratio 2

9.45%

11.03%

Common equity tier 1 capital ratio 2

12.55%

14.67%

Tier 1 capital ratio 2

12.55%

14.67%

Total risk-based capital ratio 2

16.85%

15.61%

 

1 This information represents a non-GAAP financial measure. For a discussion of non-GAAP financial measures, see the section below entitled "Non-GAAP Financial Measures."

2 Regulatory capital ratios are preliminary pending filing of the Company's and the Bank's regulatory reports.

Conference Call and Webcast

The Company will host a conference call and webcast at 12:00 p.m. Eastern Time on Thursday, July 21, 2022 to discuss its quarterly financial results. The call can be accessed via telephone at (844) 200-6205; access code: 984774. A recorded replay can be accessed through August 20, 2022 by dialing (866) 813-9403; access code: 314161.

Additionally, interested parties can listen to a live webcast of the call on the Company's website at www.firstinternetbancorp.com. An archived version of the webcast will be available in the same location shortly after the live call has ended.

About First Internet Bancorp

First Internet Bancorp is a bank holding company with assets of $4.1 billion as of June 30, 2022. The Company’s subsidiary, First Internet Bank, opened for business in 1999 as an industry pioneer in the branchless delivery of banking services. The Bank provides consumer and small business deposit, SBA financing, franchise finance, residential mortgage loans, consumer loans, and specialty finance services nationally as well as commercial real estate loans, construction loans, commercial and industrial loans, and treasury management services on a regional basis. First Internet Bancorp’s common stock trades on the Nasdaq Global Select Market under the symbol “INBK” and is a component of the Russell 2000® Index. 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, including statements with respect to the financial condition, results of operations, trends in lending policies and loan programs, plans and prospective business partnerships, objectives, future performance and business of the Company. Forward-looking statements are generally identifiable by the use of words such as “ahead,” “anticipate,” “believe,” “capitalize,” “confidence in,” “continue,” “could,” “designed,” “effort,” “estimate,” “expect,” “growth,” “help,” “hope,” “intend,” “looking forward,” “may,” “opportunities,” “optimistic,” “pending,” “plan,” “position,” “preliminary,” “remain,” “should,” “waiting on,” “well-positioned,” “will,” “working on,” “would” 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. Such statements are subject to certain risks and uncertainties including: the effects of the COVID-19 global pandemic and other adverse public health developments on the economy, our business and operations and the business and operations of our vendors and customers: general economic conditions, whether national or regional, and conditions in the lending markets in which we participate that may have an adverse effect on the demand for our loans and other products; our credit quality and related levels of nonperforming assets and loan losses, and the value and salability of the real estate that we own or that is the collateral for our loans. Other factors that may cause such differences include: failures or breaches 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, commercial and industrial, public finance, SBA, healthcare finance and franchise finance loan portfolios; competition with national, regional and community financial institutions; the loss of any key members of senior management; execution of pending and future acquisition, reorganization or disposition transactions, including without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings and other anticipated benefits from such transactions; fluctuations in interest rates; 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, tangible common equity to tangible assets, average tangible common equity, return on average tangible common equity, total interest income – FTE, adjusted total interest income – FTE, net interest income – FTE, adjusted net interest income, adjusted net interest income – FTE, net interest margin – FTE, adjusted net interest margin, adjusted net interest margin – FTE, provision (benefit) for loan losses, excluding tax refund advance loans, average loans, excluding tax refund advance loans, net (recoveries) charge-offs to average loans, excluding tax refund advance loans, allowance for loan losses to loans, excluding PPP loans, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax provision, adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average shareholders’ equity, adjusted return on average tangible common equity, adjusted effective income tax rate, income before income taxes, excluding tax refund advance loans, income tax provision, excluding tax refund advance loans and net income, excluding tax refund advance loans are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the table at the end of this release under the caption “Reconciliation of Non-GAAP Financial Measures.”

 
First Internet Bancorp
Summary Financial Information (unaudited)
Dollar amounts in thousands, except per share data
 
 
Three Months EndedSix Months Ended
 

June 30,

March 31,

June 30,

June 30,

June 30,

 

2022

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 
Net income

$

9,545

 

$

11,209

 

$

13,096

 

$

20,754

 

$

23,546

 

 
Per share and share information
Earnings per share - basic

$

0.99

 

$

1.14

 

$

1.32

 

$

2.14

 

$

2.37

 

Earnings per share - diluted

 

0.99

 

 

1.14

 

 

1.31

 

 

2.13

 

 

2.36

 

Dividends declared per share

 

0.06

 

 

0.06

 

 

0.06

 

 

0.12

 

 

0.12

 

Book value per common share

 

38.85

 

 

38.69

 

 

36.39

 

 

38.85

 

 

36.39

 

Tangible book value per common share 1

 

38.35

 

 

38.21

 

 

35.92

 

 

38.35

 

 

35.92

 

Common shares outstanding

 

9,404,000

 

 

9,683,727

 

 

9,854,153

 

 

9,404,000

 

 

9,854,153

 

Average common shares outstanding:
Basic

 

9,600,383

 

 

9,790,122

 

 

9,932,761

 

 

9,694,729

 

 

9,916,087

 

Diluted

 

9,658,689

 

 

9,870,394

 

 

9,981,422

 

 

9,764,232

 

 

9,970,147

 

Performance ratios
Return on average assets

 

0.93

%

 

1.08

%

 

1.25

%

 

1.01

%

 

1.13

%

Return on average shareholders' equity

 

10.23

%

 

11.94

%

 

14.88

%

 

11.09

%

 

13.78

%

Return on average tangible common equity 1

 

10.36

%

 

12.09

%

 

15.09

%

 

11.23

%

 

13.97

%

Net interest margin

 

2.60

%

 

2.56

%

 

2.11

%

 

2.58

%

 

2.08

%

Net interest margin - FTE 1,2

 

2.74

%

 

2.69

%

 

2.25

%

 

2.71

%

 

2.21

%

Capital ratios 3
Total shareholders' equity to assets

 

8.91

%

 

8.87

%

 

8.53

%

 

8.91

%

 

8.53

%

Tangible common equity to tangible assets 1

 

8.81

%

 

8.77

%

 

8.43

%

 

8.81

%

 

8.43

%

Tier 1 leverage ratio

9.45

%

 

9.26

%

 

8.70

%

9.45

%

 

8.70

%

Common equity tier 1 capital ratio

12.55

%

 

13.16

%

 

12.23

%

12.55

%

 

12.55

%

Tier 1 capital ratio

12.55

%

 

13.16

%

 

12.23

%

12.55

%

 

12.55

%

Total risk-based capital ratio

16.85

%

 

17.62

%

 

15.51

%

16.85

%

 

16.85

%

Asset quality
Nonperforming loans

$

4,527

 

$

7,084

 

$

9,038

 

$

4,527

 

$

9,038

 

Nonperforming assets

 

4,550

 

 

7,085

 

 

10,338

 

 

4,550

 

 

10,338

 

Nonperforming loans to loans

 

0.15

%

 

0.25

%

 

0.31

%

 

0.15

%

 

0.31

%

Nonperforming assets to total assets

 

0.11

%

 

0.17

%

 

0.25

%

 

0.11

%

 

0.25

%

Allowance for loan losses to:
Loans

 

0.95

%

 

0.98

%

 

0.95

%

 

0.95

%

 

0.95

%

Loans, excluding PPP loans 1

 

0.95

%

 

0.98

%

 

0.96

%

 

0.95

%

 

0.96

%

Nonperforming loans

 

644.0

%

 

398.8

%

 

310.5

%

 

644.0

%

 

310.5

%

Net charge-offs to average loans

 

0.04

%

 

0.05

%

 

0.35

%

 

0.05

%

 

0.18

%

Average balance sheet information
Loans

$

2,998,144

 

$

2,947,924

 

$

2,994,356

 

$

2,973,173

 

$

3,020,987

 

Total securities

 

620,396

 

 

648,728

 

 

574,684

 

 

634,485

 

 

561,630

 

Other earning assets

 

322,302

 

 

455,960

 

 

509,735

 

 

388,760

 

 

478,065

 

Total interest-earning assets

 

3,962,589

 

 

4,080,725

 

 

4,100,749

 

 

4,021,330

 

 

4,087,255

 

Total assets

 

4,097,865

 

 

4,214,918

 

 

4,206,966

 

 

4,156,068

 

 

4,190,212

 

Noninterest-bearing deposits

 

108,980

 

 

112,248

 

 

98,207

 

 

110,605

 

 

94,506

 

Interest-bearing deposits

 

3,018,422

 

 

3,071,420

 

 

3,109,165

 

 

3,044,775

 

 

3,112,557

 

Total deposits

 

3,127,402

 

 

3,183,668

 

 

3,207,372

 

 

3,155,380

 

 

3,207,063

 

Shareholders' equity

 

374,274

 

 

380,767

 

 

352,894

 

 

377,504

 

 

344,478

 

1 Refer to "Non-GAAP Financial Measures" section above and "Reconciliation of Non-GAAP Financial Measures" below
2 On a fully-taxable equivalent ("FTE") basis assuming a 21% tax rate
3 Regulatory capital ratios are preliminary pending filing of the Company's regulatory reports
First Internet Bancorp
Condensed Consolidated Balance Sheets (unaudited)
Dollar amounts in thousands
 
 

June 30,

March 31,

June 30,

 

2022

 

 

2022

 

 

2021

 

 
Assets
Cash and due from banks

$

6,155

 

$

20,976

 

$

4,347

 

Interest-bearing deposits

 

201,798

 

 

496,573

 

 

324,450

 

Securities available-for-sale, at fair value

 

425,489

 

 

465,288

 

 

663,519

 

Securities held-to-maturity, at amortized cost

 

185,113

 

 

163,370

 

 

65,659

 

Loans held-for-sale

 

31,580

 

 

33,991

 

 

27,587

 

Loans

 

3,082,127

 

 

2,880,780

 

 

2,957,608

 

Allowance for loan losses

 

(29,153

)

 

(28,251

)

 

(28,066

)

Net loans

 

3,052,974

 

 

2,852,529

 

 

2,929,542

 

Accrued interest receivable

 

17,466

 

 

15,263

 

 

16,345

 

Federal Home Loan Bank of Indianapolis stock

 

25,219

 

 

25,219

 

 

25,650

 

Cash surrender value of bank-owned life insurance

 

39,369

 

 

39,133

 

 

38,421

 

Premises and equipment, net

 

70,288

 

 

68,632

 

 

44,249

 

Goodwill

 

4,687

 

 

4,687

 

 

4,687

 

Servicing asset

 

5,345

 

 

5,249

 

 

4,120

 

Other real estate owned

 

-

 

 

-

 

 

1,300

 

Accrued income and other assets

 

34,323

 

 

34,487

 

 

54,766

 

Total assets

$

4,099,806

 

$

4,225,397

 

$

4,204,642

 

 
Liabilities
Noninterest-bearing deposits

$

126,153

 

$

119,196

 

$

113,996

 

Interest-bearing deposits

 

3,025,948

 

 

3,098,783

 

 

3,092,151

 

Total deposits

 

3,152,101

 

 

3,217,979

 

 

3,206,147

 

Advances from Federal Home Loan Bank

 

464,925

 

 

514,923

 

 

514,919

 

Subordinated debt

 

104,381

 

 

104,306

 

 

69,871

 

Accrued interest payable

 

2,005

 

 

1,532

 

 

1,132

 

Accrued expenses and other liabilities

 

11,062

 

 

12,002

 

 

53,932

 

Total liabilities

 

3,734,474

 

 

3,850,742

 

 

3,846,001

 

Shareholders' equity
Voting common stock

 

204,071

 

 

214,473

 

 

222,486

 

Retained earnings

 

192,011

 

 

183,043

 

 

149,066

 

Accumulated other comprehensive loss

 

(30,750

)

 

(22,861

)

 

(12,911

)

Total shareholders' equity

 

365,332

 

 

374,655

 

 

358,641

 

Total liabilities and shareholders' equity

$

4,099,806

 

$

4,225,397

 

$

4,204,642

 

First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited)
Dollar amounts in thousands, except per share data
 
 
Three Months EndedSix Months Ended
 

June 30,

March 31,

June 30,

June 30,

June 30,

 

2022

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 
Interest income
Loans

$

32,415

 

$

33,188

 

$

30,835

 

$

65,603

 

$

61,720

 

Securities - taxable

 

2,567

 

 

2,221

 

 

1,921

 

 

4,788

 

 

3,700

 

Securities - non-taxable

 

328

 

 

249

 

 

259

 

 

577

 

 

540

 

Other earning assets

 

796

 

 

376

 

 

362

 

 

1,172

 

 

697

 

Total interest income

 

36,106

 

 

36,034

 

 

33,377

 

 

72,140

 

 

66,657

 

Interest expense
Deposits

 

6,408

 

 

6,097

 

 

7,705

 

 

12,505

 

 

16,333

 

Other borrowed funds

 

4,018

 

 

4,187

 

 

4,065

 

 

8,205

 

 

8,192

 

Total interest expense

 

10,426

 

 

10,284

 

 

11,770

 

 

20,710

 

 

24,525

 

Net interest income

 

25,680

 

 

25,750

 

 

21,607

 

 

51,430

 

 

42,132

 

Provision for loan losses

 

1,185

 

 

791

 

 

21

 

 

1,976

 

 

1,297

 

Net interest income after provision
for loan losses

 

24,495

 

 

24,959

 

 

21,586

 

 

49,454

 

 

40,835

 

Noninterest income
Service charges and fees

 

281

 

 

316

 

 

280

 

 

597

 

 

546

 

Loan servicing revenue

 

620

 

 

585

 

 

457

 

 

1,205

 

 

879

 

Loan servicing asset revaluation

 

(470

)

 

(297

)

 

(240

)

 

(767

)

 

(395

)

Mortgage banking activities

 

1,710

 

 

1,873

 

 

2,674

 

 

3,583

 

 

8,424

 

Gain on sale of loans

 

1,952

 

 

3,845

 

 

3,019

 

 

5,797

 

 

4,742

 

Gain on sale of premises and equipment

 

-

 

 

-

 

 

2,523

 

 

-

 

 

2,523

 

Other

 

221

 

 

498

 

 

249

 

 

719

 

 

618

 

Total noninterest income

 

4,314

 

 

6,820

 

 

8,962

 

 

11,134

 

 

17,337

 

Noninterest expense
Salaries and employee benefits

 

10,832

 

 

9,878

 

 

9,232

 

 

20,710

 

 

18,724

 

Marketing, advertising and promotion

 

920

 

 

756

 

 

872

 

 

1,676

 

 

1,552

 

Consulting and professional fees

 

1,197

 

 

1,925

 

 

1,078

 

 

3,122

 

 

2,064

 

Data processing

 

490

 

 

449

 

 

382

 

 

939

 

 

844

 

Loan expenses

 

693

 

 

1,582

 

 

541

 

 

2,275

 

 

1,075

 

Premises and equipment

 

2,419

 

 

2,540

 

 

1,587

 

 

4,959

 

 

3,188

 

Deposit insurance premium

 

287

 

 

281

 

 

275

 

 

568

 

 

700

 

Other

 

1,147

 

 

1,369

 

 

1,108

 

 

2,516

 

 

2,245

 

Total noninterest expense

 

17,985

 

 

18,780

 

 

15,075

 

 

36,765

 

 

30,392

 

Income before income taxes

 

10,824

 

 

12,999

 

 

15,473

 

 

23,823

 

 

27,780

 

Income tax provision

 

1,279

 

 

1,790

 

 

2,377

 

 

3,069

 

 

4,234

 

Net income

$

9,545

 

$

11,209

 

$

13,096

 

$

20,754

 

$

23,546

 

 
Per common share data
Earnings per share - basic

$

0.99

 

$

1.14

 

$

1.32

 

$

2.14

 

$

2.37

 

Earnings per share - diluted

$

0.99

 

$

1.14

 

$

1.31

 

$

2.13

 

$

2.36

 

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)
Dollar amounts in thousands
 
 
Three Months Ended
 
June 30, 2022March 31, 2022June 30, 2021
 
AverageInterest /Yield /AverageInterest /Yield /AverageInterest /Yield /
BalanceDividendsCostBalanceDividendsCostBalanceDividendsCost
 
Assets
Interest-earning assets
Loans, including loans held-for-sale 1

$

3,019,891

 

$

32,415

4.31

%

$

2,976,037

 

$

33,188

4.52

%

$

3,016,330

 

$

30,835

4.10

%

Securities - taxable

 

543,422

 

 

2,567

1.89

%

 

567,776

 

 

2,221

1.59

%

 

490,634

 

 

1,921

1.57

%

Securities - non-taxable

 

76,974

 

 

328

1.71

%

 

80,952

 

 

249

1.25

%

 

84,050

 

 

259

1.24

%

Other earning assets

 

322,302

 

 

796

0.99

%

 

455,960

 

 

376

0.33

%

 

509,735

 

 

362

0.28

%

Total interest-earning assets

 

3,962,589

 

 

36,106

3.65

%

 

4,080,725

 

 

36,034

3.58

%

 

4,100,749

 

 

33,377

3.26

%

 
Allowance for loan losses

 

(28,599

)

 

(27,974

)

 

(30,348

)

Noninterest-earning assets

 

163,875

 

 

162,167

 

 

136,565

 

Total assets

$

4,097,865

 

$

4,214,918

 

$

4,206,966

 

 
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits

$

348,274

 

$

466

0.54

%

$

318,281

 

$

412

0.52

%

$

192,777

 

$

143

0.30

%

Savings accounts

 

66,657

 

 

68

0.41

%

 

60,616

 

 

53

0.35

%

 

55,811

 

 

49

0.35

%

Money market accounts

 

1,427,665

 

 

1,921

0.54

%

 

1,454,436

 

 

1,503

0.42

%

 

1,416,406

 

 

1,462

0.41

%

BaaS - brokered deposits

 

71,234

 

 

154

0.87

%

 

12,111

 

 

6

0.20

%

 

-

 

 

-

0.00

%

Certificates and brokered deposits

 

1,104,592

 

 

3,799

1.38

%

 

1,225,976

 

 

4,123

1.36

%

 

1,444,171

 

 

6,051

1.68

%

Total interest-bearing deposits

 

3,018,422

 

 

6,408

0.85

%

 

3,071,420

 

 

6,097

0.81

%

 

3,109,165

 

 

7,705

0.99

%

Other borrowed funds

 

583,553

 

 

4,018

2.76

%

 

619,191

 

 

4,187

2.74

%

 

584,751

 

 

4,065

2.79

%

Total interest-bearing liabilities

 

3,601,975

 

 

10,426

1.16

%

 

3,690,611

 

 

10,284

1.13

%

 

3,693,916

 

 

11,770

1.28

%

 
Noninterest-bearing deposits

 

108,980

 

 

112,248

 

 

98,207

 

Other noninterest-bearing liabilities

 

12,636

 

 

31,292

 

 

61,949

 

Total liabilities

 

3,723,591

 

 

3,834,151

 

 

3,854,072

 

 
Shareholders' equity

 

374,274

 

 

380,767

 

 

352,894

 

Total liabilities and shareholders' equity

$

4,097,865

 

$

4,214,918

 

$

4,206,966

 

 
Net interest income

$

25,680

$

25,750

$

21,607

 
Interest rate spread

2.49

%

2.45

%

1.98

%

 
Net interest margin

2.60

%

2.56

%

2.11

%

 
Net interest margin - FTE 2,3

2.74

%

2.69

%

2.25

%

1 Includes nonaccrual loans
2 On a fully-taxable equivalent ("FTE") basis assuming a 21% tax rate
3 Refer to "Non-GAAP Financial Measures" section above and "Reconciliation of Non-GAAP Financial Measures" below
First Internet Bancorp
Average Balances and Rates (unaudited)
Dollar amounts in thousands
 
 
Six Months Ended
 
June 30, 2022June 30, 2021
 
AverageInterest /Yield /AverageInterest /Yield /
BalanceDividendsCostBalanceDividendsCost
 
Assets
Interest-earning assets
Loans, including loans held-for-sale 1

$

2,998,085

 

$

65,603

4.41

%

$

3,047,560

 

$

61,720

4.08

%

Securities - taxable

 

555,533

 

 

4,788

1.74

%

 

476,049

 

 

3,700

1.57

%

Securities - non-taxable

 

78,952

 

 

577

1.47

%

 

85,581

 

 

540

1.27

%

Other earning assets

 

388,760

 

 

1,172

0.61

%

 

478,065

 

 

697

0.29

%

Total interest-earning assets

 

4,021,330

 

 

72,140

3.62

%

 

4,087,255

 

 

66,657

3.29

%

Allowance for loan losses

 

(28,288

)

 

(30,117

)

Noninterest-earning assets

 

163,026

 

 

133,074

 

Total assets

$

4,156,068

 

$

4,190,212

 

 
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits

$

333,361

 

$

878

0.53

%

$

186,795

 

$

276

0.30

%

Savings accounts

 

63,653

 

 

121

0.38

%

 

50,950

 

 

89

0.35

%

Money market accounts

 

1,440,976

 

 

3,425

0.48

%

 

1,393,145

 

 

2,853

0.41

%

BaaS - brokered deposits

 

41,836

 

 

160

0.77

%

 

-

 

 

-

0.00

%

Certificates and brokered deposits

 

1,164,949

 

 

7,921

1.37

%

 

1,481,667

 

 

13,115

1.78

%

Total interest-bearing deposits

 

3,044,775

 

 

12,505

0.83

%

 

3,112,557

 

 

16,333

1.06

%

Other borrowed funds

 

601,274

 

 

8,205

2.75

%

 

584,268

 

 

8,192

2.83

%

Total interest-bearing liabilities

 

3,646,049

 

 

20,710

1.15

%

 

3,696,825

 

 

24,525

1.34

%

 
Noninterest-bearing deposits

 

110,605

 

 

94,506

 

Other noninterest-bearing liabilities

 

21,910

 

 

54,403

 

Total liabilities

 

3,778,564

 

 

3,845,734

 

 
Shareholders' equity

 

377,504

 

 

344,478

 

Total liabilities and shareholders' equity

$

4,156,068

 

$

4,190,212

 

 
Net interest income

$

51,430

$

42,132

 
Interest rate spread

2.47

%

1.95

%

 
Net interest margin

2.58

%

2.08

%

 
Net interest margin - FTE 2,3

2.71

%

2.21

%

1 Includes nonaccrual loans
2 On a fully-taxable equivalent ("FTE") basis assuming a 21% tax rate
3 Refer to "Non-GAAP Financial Measures" section above and "Reconciliation of Non-GAAP Financial Measures" below
First Internet Bancorp
Loans and Deposits (unaudited)
Dollar amounts in thousands
 
 
June 30, 2022March 31, 2022June 30, 2021
 
AmountPercentAmountPercentAmountPercent
 
Commercial loans
Commercial and industrial

$

110,540

3.6

%

$

99,808

3.5

%

$

96,203

3.3

%

Owner-occupied commercial real estate

 

61,277

2.0

%

 

56,752

2.0

%

 

87,136

2.9

%

Investor commercial real estate

 

52,648

1.7

%

 

34,627

1.2

%

 

28,871

1.0

%

Construction

 

143,475

4.7

%

 

149,662

5.2

%

 

117,970

4.0

%

Single tenant lease financing

 

867,181

28.1

%

 

852,519

29.6

%

 

913,115

30.9

%

Public finance

 

613,759

19.9

%

 

587,817

20.4

%

 

612,138

20.7

%

Healthcare finance

 

317,180

10.3

%

 

354,574

12.3

%

 

455,890

15.3

%

Small business lending

 

102,724

3.3

%

 

97,040

3.4

%

 

123,293

4.2

%

Franchise finance

 

168,942

5.5

%

 

107,246

3.7

%

 

-

0.0

%

Total commercial loans

 

2,437,726

79.1

%

 

2,340,045

81.3

%

 

2,434,616

82.3

%

 
Consumer loans
Residential mortgage

 

281,124

9.1

%

 

191,153

6.6

%

 

177,148

6.0

%

Home equity

 

19,928

0.6

%

 

18,100

0.6

%

 

17,510

0.6

%

Trailers

 

154,555

5.0

%

 

148,870

5.2

%

 

148,795

5.0

%

Recreational vehicles

 

105,876

3.4

%

 

93,458

3.2

%

 

91,030

3.1

%

Other consumer loans

 

32,524

1.2

%

 

28,002

1.0

%

 

31,971

1.1

%

Tax refund advance loans

 

-

0.0

%

 

9,177

0.3

%

 

-

0.0

%

Total consumer loans

 

594,007

19.3

%

 

488,760

16.9

%

 

466,454

15.8

%

 
Net deferred loan fees, premiums, discounts and other 1

 

50,394

1.6

%

 

51,975

1.8

%

 

56,538

1.9

%

 
Total loans

$

3,082,127

100.0

%

$

2,880,780

100.0

%

$

2,957,608

100.0

%

 
 
June 30, 2022March 31, 2022June 30, 2021
 
AmountPercentAmountPercentAmountPercent
 
Deposits
Noninterest-bearing deposits

$

126,153

4.0

%

$

119,197

3.7

%

$

113,996

3.6

%

Interest-bearing demand deposits

 

350,551

11.1

%

 

334,723

10.4

%

 

196,841

6.1

%

Savings accounts

 

65,365

2.1

%

 

66,320

2.1

%

 

56,298

1.8

%

Money market accounts

 

1,363,424

43.3

%

 

1,475,857

45.8

%

 

1,432,355

44.6

%

BaaS - brokered deposits

 

194,133

6.2

%

 

50,006

1.6

%

 

-

0.0

%

Certificates of deposits

 

800,598

25.3

%

 

889,789

27.6

%

 

1,087,350

33.9

%

Brokered deposits

 

251,877

8.0

%

 

282,087

8.8

%

 

319,307

10.0

%

 
Total deposits

$

3,152,101

100.0

%

$

3,217,979

100.0

%

$

3,206,147

100.0

%

 

1 Includes carrying value adjustments of $35.4 million, $36.4 million and $40.4 million related to terminated interest rate swaps associated with public finance loans as of June 30, 2022, March 31, 2022 and June 30, 2021, respectively.
First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
 
 
Three Months EndedSix Months Ended
 

June 30,

March 31,

June 30,

June 30,

June 30,

 

2022

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 
Total equity - GAAP

$

365,332

 

$

374,655

 

$

358,641

 

$

365,332

 

$

358,641

 

Adjustments:
Goodwill

 

(4,687

)

 

(4,687

)

 

(4,687

)

 

(4,687

)

 

(4,687

)

Tangible common equity

$

360,645

 

$

369,968

 

$

353,954

 

$

360,645

 

$

353,954

 

 
Total assets - GAAP

$

4,099,806

 

$

4,225,397

 

$

4,204,642

 

$

4,099,806

 

$

4,204,642

 

Adjustments:
Goodwill

 

(4,687

)

 

(4,687

)

 

(4,687

)

 

(4,687

)

 

(4,687

)

Tangible assets

$

4,095,119

 

$

4,220,710

 

$

4,199,955

 

$

4,095,119

 

$

4,199,955

 

 
Common shares outstanding

 

9,404,000

 

 

9,683,727

 

 

9,854,153

 

 

9,404,000

 

 

9,854,153

 

 
Book value per common share

$

38.85

 

$

38.69

 

$

36.39

 

$

38.85

 

$

36.39

 

Effect of goodwill

 

(0.50

)

 

(0.48

)

 

(0.47

)

 

(0.50

)

 

(0.47

)

Tangible book value per common share

$

38.35

 

$

38.21

 

$

35.92

 

$

38.35

 

$

35.92

 

 
Total shareholders' equity to assets

 

8.91

%

 

8.87

%

 

8.53

%

 

8.91

%

 

8.53

%

Effect of goodwill

 

(0.10

%)

 

(0.10

%)

 

(0.10

%)

 

(0.10

%)

 

(0.10

%)

Tangible common equity to tangible assets

 

8.81

%

 

8.77

%

 

8.43

%

 

8.81

%

 

8.43

%

 
Total average equity - GAAP

$

374,274

 

$

380,767

 

$

352,894

 

$

377,504

 

$

344,478

 

Adjustments:
Average goodwill

 

(4,687

)

 

(4,687

)

 

(4,687

)

 

(4,687

)

 

(4,687

)

Average tangible common equity

$

369,587

 

$

376,080

 

$

348,207

 

$

372,817

 

$

339,791

 

 
Return on average shareholders' equity

 

10.23

%

 

11.94

%

 

14.88

%

 

11.09

%

 

13.78

%

Effect of goodwill

 

0.13

%

 

0.15

%

 

0.21

%

 

0.14

%

 

0.19

%

Return on average tangible common equity

 

10.36

%

 

12.09

%

 

15.09

%

 

11.23

%

 

13.97

%

 
Total interest income

$

36,106

 

$

36,034

 

$

33,377

 

$

72,140

 

$

66,657

 

Adjustments:
Fully-taxable equivalent adjustments 1

 

1,377

 

 

1,314

 

 

1,394

 

 

2,691

 

 

2,750

 

Total interest income - FTE

$

37,483

 

$

37,348

 

$

34,771

 

$

74,831

 

$

69,407

 

 
Total interest income - FTE

$

37,483

 

$

37,348

 

$

34,771

 

$

74,831

 

$

69,407

 

Adjustments:
Income from tax refund advance loans

 

(149

)

 

(2,864

)

 

-

 

 

(3,013

)

 

-

 

Adjusted total interest income - FTE

$

37,334

 

$

34,484

 

$

34,771

 

$

71,818

 

$

69,407

 

 
Net interest income

$

25,680

 

$

25,750

 

$

21,607

 

$

51,430

 

$

42,132

 

Adjustments:
Fully-taxable equivalent adjustments 1

 

1,377

 

 

1,314

 

 

1,394

 

 

2,691

 

 

2,750

 

Net interest income - FTE

$

27,057

 

$

27,064

 

$

23,001

 

$

54,121

 

$

44,882

 

 
Net interest income

$

25,680

 

$

25,750

 

$

21,607

 

$

51,430

 

$

42,132

 

Adjustments:
Income from tax refund advance loans

 

(149

)

 

(2,864

)

 

-

 

 

(3,013

)

 

-

 

Adjusted net interest income

$

25,531

 

$

22,886

 

$

21,607

 

$

48,417

 

$

42,132

 

 
Net interest income

$

25,680

 

$

25,750

 

$

21,607

 

$

51,430

 

$

42,132

 

Adjustments:
Fully-taxable equivalent adjustments 1

 

1,377

 

 

1,314

 

 

1,394

 

 

2,691

 

 

2,750

 

Income from tax refund advance loans

 

(149

)

 

(2,864

)

 

-

 

 

(3,013

)

 

-

 

Adjusted net interest income - FTE

$

26,908

 

$

24,200

 

$

23,001

 

$

51,108

 

$

44,882

 

1 Assuming a 21% tax rate
First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
 
 
Three Months EndedSix Months Ended
 

June 30,

March 31,

June 30,

June 30,

June 30,

 

2022

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 
Net interest margin

 

2.60

%

 

2.56

%

 

2.11

%

 

2.58

%

 

2.08

%

Effect of fully-taxable equivalent adjustments 1

 

0.14

%

 

0.13

%

 

0.14

%

 

0.13

%

 

0.13

%

Net interest margin - FTE

 

2.74

%

 

2.69

%

 

2.25

%

 

2.71

%

 

2.21

%

 
Net interest margin

 

2.60

%

 

2.56

%

 

2.11

%

 

2.58

%

 

2.08

%

Effect of income from tax refund advance loans

 

(0.02

%)

 

(0.28

%)

 

0.00

%

 

(0.15

%)

 

0.00

%

Adjusted net interest margin

 

2.58

%

 

2.28

%

 

2.11

%

 

2.43

%

 

2.08

%

 
Net interest margin

 

2.60

%

 

2.56

%

 

2.11

%

 

2.58

%

 

2.08

%

Effect of fully-taxable equivalent adjustments 1

 

0.14

%

 

0.13

%

 

0.14

%

 

0.13

%

 

0.13

%

Effect of income from tax refund advance loans

 

(0.02

%)

 

(0.28

%)

 

0.00

%

 

(0.15

%)

 

0.00

%

Adjusted net interest margin - FTE

 

2.72

%

 

2.41

%

 

2.25

%

 

2.56

%

 

2.21

%

 
Provision for loan losses

$

1,185

 

$

791

 

$

21

 

$

1,976

 

$

1,297

 

Adjustments:
Provision for tax refund advance loans losses

 

(18

)

 

(1,842

)

 

-

 

 

(1,860

)

 

-

 

Provision (benefit) for loan losses, excluding tax refund advance loans

$

1,167

 

$

(1,051

)

$

21

 

$

116

 

$

1,297

 

 
Average loans

$

2,998,144

 

$

2,947,924

 

$

2,994,356

 

$

2,973,173

 

$

3,020,987

 

Adjustments:
Average tax refund advance loans

 

(3,185

)

 

(60,499

)

 

-

 

 

(29,096

)

 

-

 

Average loans, excluding tax refund advance loans

$

2,994,959

 

$

2,887,425

 

$

2,994,356

 

$

2,944,077

 

$

3,020,987

 

 
Net charge-offs to average loans

 

0.04

%

 

0.05

%

 

0.35

%

 

0.05

%

 

0.18

%

Adjustments:
Effect of tax refund advance lending net charge-offs to average loans

 

(0.05

%)

 

(0.21

%)

 

0.00

%

 

(0.13

%)

 

0.00

%

Net (recoveries) charge-offs to average loans, excluding tax refund advance loans

 

(0.01

%)

 

(0.16

%)

 

0.35

%

 

(0.08

%)

 

0.18

%

 
Allowance for loan losses

$

29,153

 

$

28,251

 

$

28,066

 

$

29,153

 

$

28,066

 

 
Loans

$

3,082,127

 

$

2,880,780

 

$

2,957,608

 

$

3,082,127

 

$

2,957,608

 

Adjustments:
PPP loans

 

(194

)

 

(1,003

)

 

(39,682

)

 

(194

)

 

(39,682

)

Loans, excluding PPP loans

$

3,081,933

 

$

2,879,777

 

$

2,917,926

 

$

3,081,933

 

$

2,917,926

 

 
Allowance for loan losses to loans

 

0.95

%

 

0.98

%

 

0.95

%

 

0.95

%

 

0.95

%

Effect of PPP loans

 

0.00

%

 

0.00

%

 

0.01

%

 

0.00

%

 

0.01

%

Allowance for loan losses to loans, excluding PPP loans

 

0.95

%

 

0.98

%

 

0.96

%

 

0.95

%

 

0.96

%

1 Assuming a 21% tax rate

First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
 
 
Three Months EndedSix Months Ended
 

June 30,

March 31,

June 30,

June 30,

June 30,

 

2022

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 
Noninterest expense - GAAP

$

17,985

 

$

18,780

 

$

15,075

 

$

36,765

 

$

30,392

 

Adjustments:
Acquisition-related expenses

 

(103

)

 

(170

)

 

-

 

 

(273

)

 

-

 

Nonrecurring consulting fee

 

-

 

 

(875

)

 

-

 

 

(875

)

 

-

 

Discretionary inflation bonus

 

(531

)

 

-

 

 

-

 

 

(531

)

 

-

 

Accelerated equity compensation

 

(289

)

 

-

 

 

-

 

 

(289

)

 

-

 

Adjusted noninterest expense

$

17,062

 

$

17,735

 

$

15,075

 

$

34,797

 

$

30,392

 

 
Income before income taxes - GAAP

$

10,824

 

$

12,999

 

$

15,473

 

$

23,823

 

$

27,780

 

Adjustments:
Gain on sale of premises and equipment

 

-

 

 

-

 

 

(2,523

)

 

-

 

 

(2,523

)

Acquisition-related expenses

 

103

 

 

170

 

 

-

 

 

273

 

 

-

 

Nonrecurring consulting fee

 

-

 

 

875

 

 

-

 

 

875

 

 

-

 

Discretionary inflation bonus

 

531

 

 

-

 

 

-

 

 

531

 

 

-

 

Accelerated equity compensation

 

289

 

 

-

 

 

-

 

 

289

 

 

-

 

Adjusted income before income taxes

$

11,747

 

$

14,044

 

$

12,950

 

$

25,791

 

$

25,257

 

 
Income tax provision - GAAP

$

1,279

 

$

1,790

 

$

2,377

 

$

3,069

 

$

4,234

 

Adjustments:1
Gain on sale of premises and equipment

 

-

 

 

-

 

 

(530

)

 

-

 

 

(530

)

Acquisition-related expenses

 

21

 

 

36

 

 

-

 

 

57

 

 

-

 

Nonrecurring consulting fee

 

-

 

 

184

 

 

-

 

 

184

 

 

-

 

Discretionary inflation bonus

 

112

 

 

-

 

 

-

 

 

112

 

 

-

 

Accelerated equity compensation

 

61

 

 

-

 

 

-

 

 

61

 

 

-

 

Adjusted income tax provision

$

1,473

 

$

2,010

 

$

1,847

 

$

3,483

 

$

3,704

 

 
Net income - GAAP

$

9,545

 

$

11,209

 

$

13,096

 

$

20,754

 

$

23,546

 

Adjustments:
Gain on sale of premises and equipment

 

-

 

 

-

 

 

(1,993

)

 

-

 

 

(1,993

)

Acquisition-related expenses

 

82

 

 

134

 

 

-

 

 

216

 

 

-

 

Nonrecurring consulting fee

 

-

 

 

691

 

 

-

 

 

691

 

 

-

 

Discretionary inflation bonus

 

419

 

 

-

 

 

-

 

 

419

 

 

-

 

Accelerated equity compensation

 

228

 

 

-

 

 

-

 

 

228

 

 

-

 

Adjusted net income

$

10,274

 

$

12,034

 

$

11,103

 

$

22,308

 

$

21,553

 

 
Diluted average common shares outstanding

 

9,658,689

 

 

9,870,394

 

 

9,981,422

 

 

9,764,232

 

 

9,970,147

 

 
Diluted earnings per share - GAAP

$

0.99

 

$

1.14

 

$

1.31

 

$

2.13

 

$

2.36

 

Adjustments:
Effect of gain on sale of premises and equipment

 

-

 

 

-

 

 

(0.20

)

 

-

 

 

(0.20

)

Effect of acquisition-related expenses

 

0.01

 

 

0.01

 

 

-

 

 

0.02

 

 

-

 

Effect of nonrecurring consulting fee

 

-

 

 

0.07

 

 

-

 

 

0.07

 

 

-

 

Effect of discretionary inflation bonus

 

0.04

 

 

-

 

 

-

 

 

0.04

 

 

-

 

Effect of accelerated equity compensation

 

0.02

 

 

-

 

 

-

 

 

0.02

 

 

-

 

Adjusted diluted earnings per share

$

1.06

 

$

1.22

 

$

1.11

 

$

2.28

 

$

2.16

 

 
Return on average assets

 

0.93

%

 

1.08

%

 

1.25

%

 

1.01

%

 

1.13

%

Effect of gain on sale of premises and equipment

 

0.00

%

 

0.00

%

 

(0.19

%)

 

0.00

%

 

(0.09

%)

Effect of acquisition-related expenses

 

0.01

%

 

0.01

%

 

0.00

%

 

0.01

%

 

0.00

%

Effect of nonrecurring consulting fee

 

0.00

%

 

0.07

%

 

0.00

%

 

0.03

%

 

0.00

%

Effect of discretionary inflation bonus

 

0.04

%

 

0.00

%

 

0.00

%

 

0.02

%

 

0.00

%

Effect of accelerated equity compensation

 

0.02

%

 

0.00

%

 

0.00

%

 

0.01

%

 

0.00

%

Adjusted return on average assets

 

1.00

%

 

1.16

%

 

1.06

%

 

1.08

%

 

1.04

%

 

1 Assuming a 21% tax rate

 
First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
 
 
Three Months EndedSix Months Ended
 

June 30,

March 31,

June 30,

June 30,

June 30,

 

2022

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 
Return on average shareholders' equity

 

10.23

%

 

11.94

%

 

14.88

%

 

11.09

%

 

13.78

%

Effect of gain on sale of premises and equipment

 

0.00

%

 

0.00

%

 

(2.26

%)

 

0.00

%

 

(1.16

%)

Effect of acquisition-related expenses

 

0.09

%

 

0.14

%

 

0.00

%

 

0.12

%

 

0.00

%

Effect of nonrecurring consulting fee

 

0.00

%

 

0.74

%

 

0.00

%

 

0.37

%

 

0.00

%

Effect of discretionary inflation bonus

 

0.45

%

 

0.00

%

 

0.00

%

 

0.22

%

 

0.00

%

Effect of accelerated equity compensation

 

0.24

%

 

0.00

%

 

0.00

%

 

0.12

%

 

0.00

%

Adjusted return on average shareholders' equity

 

11.01

%

 

12.82

%

 

12.62

%

 

11.92

%

 

12.62

%

 
Return on average tangible common equity

 

10.36

%

 

12.09

%

 

15.09

%

 

11.23

%

 

13.97

%

Effect of gain on sale of premises and equipment

 

0.00

%

 

0.00

%

 

(2.30

%)

 

0.00

%

 

(1.18

%)

Effect of acquisition-related expenses

 

0.09

%

 

0.14

%

 

0.00

%

 

0.12

%

 

0.00

%

Effect of nonrecurring consulting fee

 

0.00

%

 

0.75

%

 

0.00

%

 

0.37

%

 

0.00

%

Effect of discretionary inflation bonus

 

0.45

%

 

0.00

%

 

0.00

%

 

0.23

%

 

0.00

%

Effect of accelerated equity compensation

 

0.25

%

 

0.00

%

 

0.00

%

 

0.12

%

 

0.00

%

Adjusted return on average tangible common equity

 

11.15

%

 

12.98

%

 

12.79

%

 

12.07

%

 

12.79

%

 
Effective income tax rate

 

11.8

%

 

13.8

%

 

15.4

%

 

12.9

%

 

15.2

%

Effect of gain on sale of premises and equipment

 

0.0

%

 

0.0

%

 

(1.1

%)

 

0.0

%

 

(0.5

%)

Effect of acquisition-related expenses

 

0.2

%

 

0.3

%

 

0.0

%

 

0.2

%

 

0.0

%

Effect of nonrecurring consulting fee

 

0.0

%

 

1.3

%

 

0.0

%

 

0.7

%

 

0.0

%

Effect of discretionary inflation bonus

 

1.0

%

 

0.0

%

 

0.0

%

 

0.5

%

 

0.0

%

Effect of accelerated equity compensation

 

0.6

%

 

0.0

%

 

0.0

%

 

0.3

%

 

0.0

%

Adjusted effective income tax rate

 

13.6

%

 

15.4

%

 

14.3

%

 

14.6

%

 

14.7

%

 
Income before income taxes - GAAP

$

10,824

 

$

12,999

 

$

15,473

 

$

23,823

 

$

27,780

 

Adjustments:
Income from tax refund advance lending

 

(149

)

 

(2,864

)

 

-

 

 

(3,013

)

 

-

 

Provision for tax refund advance lending losses

 

18

 

 

1,842

 

 

-

 

 

1,860

 

 

-

 

Tax refund advance lending servicing fee

 

9

 

 

921

 

 

-

 

 

930

 

 

-

 

Income before income taxes, excluding tax refund advance loans

$

10,702

 

$

12,898

 

$

15,473

 

$

23,600

 

$

27,780

 

 
Income tax provision - GAAP

$

1,279

 

$

1,790

 

$

2,377

 

$

3,069

 

$

4,234

 

Adjustments:1
Income from tax refund advance lending

 

(31

)

 

(601

)

 

-

 

 

(633

)

 

-

 

Provision for tax refund advance lending losses

 

4

 

 

387

 

 

-

 

 

391

 

 

-

 

Tax refund advance lending servicing fee

 

2

 

 

193

 

 

-

 

 

195

 

 

-

 

Income tax provision, excluding tax refund advance loans

$

1,254

 

$

1,769

 

$

2,377

 

$

3,022

 

$

4,234

 

 
Net income - GAAP

$

9,545

 

$

11,209

 

$

13,096

 

$

20,754

 

$

23,546

 

Adjustments:
Income from tax refund advance lending

 

(118

)

 

(2,263

)

 

-

 

 

(2,380

)

 

-

 

Provision for tax refund advance lending losses

 

14

 

 

1,455

 

 

-

 

 

1,469

 

 

-

 

Tax refund advance lending servicing fee

 

7

 

 

728

 

 

-

 

 

735

 

 

-

 

Net income, excluding tax refund advance loans

$

9,448

 

$

11,129

 

$

13,096

 

$

20,578

 

$

23,546

 

1Assuming a 21% tax rate

 

Investors/Analysts
Paula Deemer
Director of Corporate Administration
(317) 428-4628
investors@firstib.com

Media
Nicole Lorch
President & Chief Operating Officer
(317) 532-7906
nlorch@firstib.com

Source: First Internet Bancorp