First Internet Bancorp · NASDAQ:INBK
First Internet Bancorp — IPO Roadshow (November 2013)
26 slides from First Internet Bancorp's IPO roadshow presentation, Nov 18, 2013
Slide 1: Follow-On Offering of Common Stock, Fall 2013
FIB Bancorp Logo Final copyNASDAQ: INBK Follow-On Offering of Common Stock Fall 2013 Issuer Free Writing Prospectus Filed Pursuant to Rule 433 Registration No. 333-191475 November 18, 2013
Slide 2: Important Statements
This presentation contains forward-looking statements with respect to the financial condition, results of operations, plans, objectives, future performance or business of First Internet Bancorp. Forward-looking -looking statements are not a guarantee of future performance or results, are based on in
Slide 3: Offering Summary
Issuer First Internet Bancorp Exchange / Ticker NASDAQ: INBK Offering Follow-on Offering Type of Security Common Stock Shares Offered 1,150,000 shares Over-Allotment Option 15.0% Use of Proceeds Organic growth and general corporate purposes; possible pursuit of strategic acquisitions Book Running Ma
Slide 4: Management Team
Management Team Prior experience in both community banking and financial technology Management team and Board of Directors collectively own 13.7% and intend to participate in this offering Founded the Bank in 1999 and CEO since inception Over three decades of experience in financial services and tec
Slide 5: Summary Statistics
Summary Statistics Assets $738.5 million Net Loans¹ $434.2 million Deposits $636.7 million Tangible Common Equity² $57.2 million Tangible Book Value Per Share² $19.99 LTM Net Income $5.5 million Shares Outstanding 2,861,326 Headquarters Indianapolis, IN Stock Price (as of 11/15/13) $23.18 Market Cap
Slide 6: History of First Internet Bancorp
History of First Internet Bancorp 1999 2013 1999: Based in Indianapolis, First Internet Bank of Indiana commences online operations with David Becker as Founder & CEO January 2007: Acquire Indianapolisbased Landmark Financial Corporation, enabling expansion into residential mortgage lending 2007 201
Slide 7: Investment highlights
National Focus on Deposit and Consumer and Commercial Banking Growth o Over 40% asset, loan and deposit growth since December 31, 2010 o Consumer loans include high-end horse trailer and RV lending o Credit Tenant with brand name customers Regional Footprint for Commercial Banking Growth o Increasin
Slide 8: Experienced Lending Team
Experienced Lending Team INBK lending efforts are led by a team of highly experienced bankers with roots at some of the largest regional and super-regional institutions in the country Each division manager has 20+ years of experience in banking with long standing customer relationships Ed Roebuck Se
Slide 9: Loan Product Offering
Loan Product Offering Product Offering / Expertise Avg. Loan Balance Business Line 9/30/13 Balance Overview CRE Niche Consumer Lending Residential Mortgage/ HELOCs Specialized lending niche in RV & horsetrailers Direct and Indirect Year to date net charge offs of 0.37% as a percentage of total consu
Slide 10: A Steadily Growing Balance Sheet
A Steadily Growing Balance Sheet Assets Loans Deposits Equity $503,915 $585,440 $636,367 $738,518 2010 2011 2012 Q3 '13 $302,333 $331,805 $354,490 $434,963 2010 2011 2012 Q3 '13 $48,897 $55,423 $61,350 $61,874 2010 2011 2012 Q3 '13 $422,703 $486,665 $530,691 $636,653 2010 2011 2012 Q3 '13 Note: Loan
Slide 11: Loan Portfolio Overview
INBK is increasingly focused on growing commercial loan balances while maintaining a select niche in consumer and residential lending Loan Portfolio Overview Portfolio Overview Loan Portfolio by Type Loan Portfolio Evolution Year to date average yield on loan portfolio of 4.84% INBK has made signifi
Slide 12: Loan Portfolio by Geography
IN, $69.0 TX, $7.6 TN, $4.5 PA, $2.9 SC, $2.2 OH, $2.0 NY, $2.0 MA, $1.7 FL, $1.5 NJ, $1.4 CA, $1.2 NH, $0.6 UT, $0.5 MD, $0.5 NC, $0.5 Other, $4.0 IN, $114.0 CA, $109.9 TX, $28.0 FL, $18.8 IL, $15.2 CO, $12.3 NY, $11.7 TN, $10.1 OH, $9.8 PA, $7.8 VA, $7.3 WA, $6.8 NC, $5.2 OK, $4.6 NJ, $4.3 AZ, $4.
Slide 13: Exceptional Asset Quality
Exceptional Asset Quality NPAs / Assets Reserves/ NPLs Reserves / Gross Loans NCOs / Avg. Loans *Year-to-date September 30, 2013, annualized Note: NPAs and NPLs exclude performing troubled debt restructurings Conservative underwriting culture and strong attention to risk management has produced soli
Slide 14: Capitalizing on Industry Trends
Capitalizing on Industry Trends Internet, 39% Branch, 18% ATM, 11% Unknown, 11% Mobile, 8% Telephone, 7% Mail, 7% The popularity of internet and mobile banking continues to accelerate o According to the Pew Research Center, 61% of internet users now do their banking online (and 51% of all adults sur
Slide 15: Diversified, National Deposit Base
Diversified, National Deposit Base Unlike most community banks, INBK is not limited by a particular geographic or customer focus, and therefore is less susceptible to concentration risks INBK has deposit relationships in every state, including some of the most desirable MSAs in the U.S. The average
Slide 16: Deposit Composition & Product Offering
$422,703 $636,653 Deposit Composition & Product Offering Deposit Composition at 9/30/13 Since December 31, 2010, INBK has grown deposits by 51% while reducing the overall cost of deposits by 113bps At September 30, 2013 Non-CDs represented 53% of the portfolio The growing commercial lending pipeline
Slide 17: Driving Shareholder Value
Driving Shareholder Value superior financial returns when compared to traditional community banks in the Midwest 18 Overhead ratio defined as net operating expense, excluding one-time items, as a percent of net interest income (on an FTE basis) Profit margin defined as pre-tax income, excluding one-
Slide 18: Positive Returns to Shareholders
Positive Returns to Shareholders Net Income ROAA ROATCE¹ Efficiency Ratio 57.8% 64.2% 61.0% 69.9% 2010 2011 2012 09/13 LTM 11.17% 6.69% 10.33% 9.61% 2010 2011 2012 09/13 LTM 1.01% 0.59% 0.91% 0.84% 2010 2011 2012 09/13 LTM $4,955 $3,186 $5,606 $5,481 2010 2011 2012 09/13 LTM Note: Dollar values in t
Slide 19: Internet Banking Franchise Value Comparison
Internet Banking Franchise Value Comparison Total Assets ($M) $738.5 $3,284.1 Price/ Tangible Book 1.16x 3.72x Price/ LTM Core EPS 11.8x 23.4x Market Capitalization ($M) $66.3 $1,036.9 Stock Price Performance Year to Date Source: SNL Financial; Financial data as of September 30, 2013.; Market data a
Slide 20: Looking Forward
Looking Forward FOCUS: Organic growth Additional revenue channels, i.e. Asset-Based Lending, SBA Lending Management lift-outs Remain opportunistic on acquisitions LEVERAGE: Infrastructure already in place Technology Management depth 21
Slide 21: Appendix
First INTERNET BANCORP Appendix
Slide 22: Historical Balance Sheet
Historical Balance Sheet Note: Dollar values in thousands, except per share amounts ¹ Tangible book value per share is a non-GAAP financial measure; reconciliation for tangible book value is set forth in the Appendix Period Ending: 12/31/2010 12/31/2011 12/31/2012 9/30/2013 Assets Cash due from bank
Slide 23: Historical Income Statement
Historical Income Statement For the Nine Months For the Year Ended December 31, Ended September 30, 2010 2011 2012 2013 Interest income $25,296 $23,944 $24,117 $18,430 Interest expense 10,785 9,621 8,532 5,946 Net interest income 14,511 14,323 15,585 12,484 Provision for loan losses 927 2,440 2,852
Slide 24: Securities Portfolio Overview
Securities Portfolio Overview Note: Dollar values in thousands 25 Average yield of 2.11% for Q3 2013, reflecting the conservative nature of the portfolio Weighted average life of 5.2 years (average effective duration of 3.73 years) No held-to-maturity securities Minimal high risk or volatile investm
Slide 25: Balanced Retail Mortgage Operations
Balanced Retail Mortgage Operations 26 In 2007, INBK acquired Landmark Financial Corporation as an entry point into retail mortgage lending The Bank has expanded this operation into a nationwide business Since 2012, the Bank has originated and sold over $1.3 billion of residential mortgage loans Ori
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures Tangible common equity, tangible assets and tangible book value per common share are financial measures not recognized in generally accepted accounting principles ("GAAP"). Our management, banking regulators, many financial analysts and other investors use these non-GAAP
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