First Internet Bancorp · NASDAQ:INBK
First Internet Bancorp — IPO Roadshow (June 2019)
29 slides from First Internet Bancorp's IPO roadshow presentation, Jun 5, 2019
Slide 1: Disclaimer; Important Information
Disclaimer; Important Information This presentation has been prepared by First Internet Bancorp (“First Internet” or the “Company”) solely for informational purposes based on information regarding its operations, as well as information from public sources. This presentation has been prepared to assi
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain forward-looking statements with respect to the financial condition, results of operations, trends in lending policies, plans, objectives, future performance or business of the Company. Forward-looking statements are generally identifiable by t
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically adjusted net income, adjusted diluted earnings per share, average tangibl
Slide 4: A Pioneer in Branchless Banking
A Pioneer in Branchless Banking • • • • • Digital bank with unique business model and over 20 years of Highly scalable technology driven business Nationwide deposit gathering and asset generation platforms Attractive lending niches with growth opportunities operations History of strong growth and a
Slide 5: Nationwide Branchless Deposit Franchise
Nationwide Branchless Deposit Franchise $2.8 Billion Total Deposits* 30% 5-year CAGR* Nationwide consumer, small business and commercial deposit base Innovative technology and convenience supported by exceptional service * As of March 31, 2019; $271 million of brokered deposits and $1.8 million of b
Slide 6: Multiple Opportunities to Grow Deposits
Multiple Opportunities to Grow Deposits Capitalize on the enduring trend toward branchless banking – consumers and small business are increasingly moving their banking business online Generate an increased level of lower-cost deposits as expansion of small-business, municipal and commercial relation
Slide 7: Attractive Loan Growth Opportunities
Attractive Loan Growth Opportunities Entrance into new verticals – complement existing lines and add diversity SBA lending – pending acquisition of small business lending division of First Colorado National Bank accelerates recent hiring initiatives to build this line of business Further market pene
Slide 8: Small Business, Big Opportunity
Small Business, Big Opportunity Complementary to existing business lines Diversifies revenue in a capital efficient manner Opportunities on both sides of the balance sheet Enhanced Treasury Management Capabilities Upgraded Digital Account Access SBA Lending 10
Slide 9: Entrepreneurial Culture Key to Success
Entrepreneurial Culture Key to Success First Internet Bank has been recognized for its innovation and is consistently ranked among the best banks to work for, enhancing its ability to attract and retain top talent American Banker’s “Best Banks to Work For” Six years in a row “Top Workplaces in India
Slide 10: History of Strong Organic Growth
History of Strong Organic Growth Execution of the business strategy has driven consistent and sustained balance sheet growth Dollars in millions Dollars in millions $2,840 $2,716 $3,670 $3,542 vs. Peers1 at 13.1% $971 $732 2014 2015 2016 2017 2018 1Q19 2014 2015 2016 2017 2018 1Q19 Dollars in millio
Slide 11: Profitability Driven by Capital Deployment
Profitability Driven by Capital Deployment Capital has been deployed into new loan verticals, driving earnings growth Dollars in thousands $23,814 $23,482 $2.30 $2.50 $2.39 $2.37 00 $21,568 $15,226 $8,929 2014 2015 2016 2017 2018 TTM 1Q19 2014 2015 2016 2017 2018 TTM 1Q19 0.81% 0.78% 0.74% 0.74% 10.
Slide 12: Growth Drives Economies of Scale
Growth Drives Economies of Scale Scalable, technology-driven model has delivered increasing efficiency and is a key component driving improved operating leverage $17.8 Dol l ars i n mi llions $17.3 $16.9 $16.9 1.63% $16.6 $16.4 1.50% 1.52% 1.45% 1.47% 1.40% 1.27% 1.24% % 2Q17 3Q17 4Q17 1Q18 2Q18 3Q1
Slide 13: Capital Markets History
Capital Markets History Following the IPO in late 2013, the Company deployed capital to fund commercial loan growth which resulted in strong revenue growth and improved profitability Capital offerings: 2Q18: raised $57.5 million of common equity 3Q17: raised $55.0 million of common equity 2016: rais
Slide 14: Capital and Balance Sheet Management
Capital and Balance Sheet Management Combination of lower risk asset profile and top quartile asset quality performance provides ability to maximize capital leverage Announced a stock repurchase program in 4Q18 to repurchase up to $10.0 million in common stock Through the date of the Company’s 1Q19
Slide 15: Deposit Composition
Deposit Composition Total deposits increased $634.0 million, or 29.1%, since 1Q18 Total Deposits - $2.8 Billion As of March 31, 2019 Total Non-Time Deposits - $773.4 Million As of March 31, 2019 1 $45.9 2% $42.0 2% $111.6 4% $203.8 26% $573.9 20% $407.7 53% $2,037.7 72% $83.5 11% Noninterest-bearing
Slide 16: Loan Portfolio Overview
Loan Portfolio Overview Strategic loan growth has led to a more diversified portfolio $2,839.9 $2,716.2 Dollars in millions $2,493.6 1 Commercial and Industrial Commercial Real Estate Single Tenant Lease Financing Public Finance Healthcare Finance Residential Mortgage/HE/HELOCs Consumer 2016 2017 1Q
Slide 17: Commercial Real Estate
Commercial Real Estate Commercial real estate balances increased $141.7 million, or 16.0%, since 1Q18 Single Tenant Lease Financing Portfolio Diversity Red Lobster 7.0% 6.5% 5.4% 4.4% 4.4% Walgreen's Dollars in millions Single tenant lease financing Construction Investor commercial real estate Total
Slide 18: Commercial & Industrial
Commercial & Industrial Commercial & industrial overview: Originations / commitments over the past twelve months exceeded $95 million Dollars in millions Commercial & industrial Owner-occupied CRE Total commercial & industrial $112.1 87.5 56.2% 43.8% Primarily serves the borrowing and treasury manag
Slide 19: Healthcare Finance
Healthcare Finance Healthcare finance originations/commitments over the past twelve months exceeded $126 million Portfolio Composition 0.2% 0.9% 4.6% Practice Refinance or Acquisition Owner Occupied CRE Projects 14.6% Dollars in millions $$1658.6.8 Dollars in millions $89.5 $65.6$31.6 79.7% Equipmen
Slide 20: Residential Mortgage
Residential Mortgage Award-winning national online origination platform Well Diversified Mortgage Originations* Direct-to-consumer originations managed by sales and underwriting personnel located in Indiana-based corporate HQ Geographic diversity provides opportunity to benefit from strengths in cer
Slide 21: Excellent Asset Quality
Excellent Asset Quality Asset quality remains among the best in the industry driven by a strong credit culture and lower-risk asset classes 0.12% 0.50% 0.31% 0.10% 2014 2015 2016 2017 2018 1Q19 2014 2015 2016 2017 2018 1Q19 5,000.6% 0.15% 0.05% 0.04% 0.05% 0.00% (0.07%) 2014 2015 2016 2017 2018 1Q19
Slide 22: Interest Rate Risk Management
Interest Rate Risk Management 1Q19 FTE net interest margin of 2.04%1 declined 3 bps compared to 4Q18 Decline driven by CD replacement costs, partially offset by improved asset yields Hedging strategy in place to enhance interest rate sensitivity of longer term fixed rate assets and extend the durati
Slide 23: Drivers of Value Creation
Drivers of Value Creation Management has aligned interests and is committed to building shareholder value Further extend the scope and market penetration in specialty lending lines Diversify the revenue stream with additional sources of noninterest income Expand deposit channels and drive mix toward
Slide 24: Drivers of Value Creation
Drivers of Value Creation SN Management has aligned interests and is committed to building shareholder value = Further extend the scope and market penetration in specialty lending lines = Diversify the revenue stream with additional sources of noninterest income = Expand deposit channels and drive m
Slide 25: First Quarter 2019 Highlights
First Quarter 2019 Highlights Quarterly net income of $5.7 million and diluted EPS of $0.56 Quarterly net interest income of $16.2 million, up 5.4% from 1Q18 Quarterly net interest income – FTE1 of $17.8 million, up 8.3% from 1Q18 Total quarterly loan growth of $124 million, or 5% Total year-over-ye
Slide 26: Loan Portfolio Composition
Loan Portfolio Composition 1 Includes carrying value adjustments of $11.5 million, $5.0 million, ($5.2) million, ($2.5) million, ($0.7) million, $0.3 million, and $0.0 million as of March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and December 3
Slide 27: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Net income - GAAP $4,324 $8,929 $12,074 $15,226 $21,900 $21,568 Adjustments: Write-down of other real estate owned Net deferred tax asset revaluation Adjusted net income - - - - 1,914 1,914 - - - - 1,846 - $4,324 $8,929 $12,074 $17,072 $23,814 $23,482 Di
Slide 28: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Total equity - GAAP Adjustments: Goodw ill Tangible common equity $163,830 $220,867 $224,127 $224,824 $282,087 $287,740 $288,735 $294,013 (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) $159,143 $216,180 $219,440 $220,137 $277,400 $283,05
Slide 29: Reconciliation of Non-GAAP Financial Measures
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