First Internet Bancorp · NASDAQ:INBK
First Internet Bancorp — IPO Roadshow (September 2017)
31 slides from First Internet Bancorp's IPO roadshow presentation, Sep 14, 2017
Slide 1: Offering Disclosure
Offering Disclosure 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 assist interested
Slide 2: Forward-Looking Statements
Forward-Looking Statements To the extent that statements in this presentation relate to future plans, objectives, financial results or performance of First Internet, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 199
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures 4 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 tangible common equity (TCE), tangible assets (TA), tangible book value
Slide 4: Offering Summary
Offering Summary 5 Issuer: Exchange / Ticker: Offering Format: Security: Base Deal Value: Use of Proceeds: Lead Bookrunner: Co-Managers: Lock-Up: First Internet Bancorp NASDAQ: INBK Follow-On Common Stock $40 million (100% Primary) General corporate purposes, which may include providing capital to s
Slide 5: Corporate Overview
Corporate Overview Corporate Summary First Internet Bank launched in 1999 First state-chartered FDIC-insured Internet bank Headquartered in Fishers, IN with an office in Tempe, AZ Industry pioneer in branchless delivery of consumer and commercial banking services Nationwide deposit and lending footp
Slide 6: Performance Summary
Performance Summary 7 Strong balance sheet growth has driven increased earnings and overall growth in tangible book value per share 1 1Q17 and 2Q17 amount reflects full impact of offering of 945,000 shares of common stock in December 2016 2 See Reconciliation of Non-GAAP Financial Measures Diluted E
Slide 7: Differentiated Business Model
Differentiated Business Model Nationwide consumer banking provider Proven online / mobile retail deposit platform using scalable technology backed by exceptional customer service Low cost delivery channel creates customer value through competitive rates and low fees Commercial banking franchise focu
Slide 8: Components of a Diversified Growth Engine
Components of a Diversified Growth Engine 9 Contribution to Total 2Q16 Loan Growth of $71 Million Contribution to Total 2Q17 Loan Growth of $265 Million 2017: Balanced Growth – Reduced CRE Concentration – High Credit Quality 77% 28% 5% - 10% Single Tenant Lease Consumer Other Commercial Mortgage/Hom
Slide 9: Strategic Objectives
Strategic Objectives Drive revenue growth and positive operating leverage Achieve consistent strong profitability Deploy capital in an accretive manner focused on building shareholder value Capitalize on consumer trends by capturing greater deposit market share among digital banking adopters Maintai
Slide 10: Corporate Recognition
11 Corporate Recognition 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-level talent TechPoint 2016 Mira Award “Tech-enabled Company of the Year” Top 10 finalist – 2016 Indiana Pu
Slide 11: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth 12 Execution of the business strategy has driven consistent and sustainable balance sheet growth CAGR: 34.1% CAGR: 41.3% CAGR: 30.0% CAGR: 24.6% Total Assets Total Loans Total Deposits Shareholders' Equity $636 $802 $971 $1,270 $1,854 $2,381 2012 2013 2014 2015 2016 2
Slide 12: Five Year Balance Sheet Growth
Five Year Balance Sheet Growth Five year balance sheet growth rates far exceed the median rates for similar institutions INBK growth over this period has been primarily organic as opposed to through acquisitions 13 Source: Company data and SNL Financial; financial data as of June 30, 2017; peer data
Slide 13: Earnings and Profitability
Earnings and Profitability 14 The Company remains focused on driving earnings growth and improving profitability 1 See Reconciliation of Non-GAAP Financial Measures Net Income Net Interest Margin - FTE 1 Return on Average Assets Return on Average Tangible Common Equity 1 $2,323 $2,278 $2,432 $2,834
Slide 14: Increasing Economies of Scale
Increasing Economies of Scale 15 Scalable, technology-driven model delivers increasing efficiency and is a key component driving improved operating leverage Net Interest Income Noninterest Expense / Average Assets Efficiency Ratio Total Assets Per FTE 2.19% 2.11% 2.08% 1.98% 1.93% 1.77% 1.85% 1.63%
Slide 15: Loan Portfolio Overview
Loan Portfolio Overview 16 1 1 Includes commercial and industrial and owner-occupied commercial real estate balances 14% 12% 13% 13% 14% 13% 12% 38% 27% 22% 20% 19% 20% 19% 5% 11% 26% 39% 45% 48% 49% 47% 44% 7% 7% 6% 6% 5% 4% 3% 15% 15% 14% 13% 13% 11% 11% 2014 2015 2Q16 3Q16 4Q16 1Q17 2Q17 Commerci
Slide 16: Commercial Real Estate
Commercial Real Estate Single tenant lease financing overview: Long term lease financing of single tenant properties occupied by financially strong lessees Originations / commitments over the past twelve months exceeded $279 million Nationwide platform provides ability to capitalize on national corr
Slide 17: Commercial and Industrial
Commercial and Industrial Commercial and industrial overview: Originations / commitments over the past twelve months exceeded $82 million Primarily serves the borrowing and treasury management needs of small and middle-market businesses Seasoned banking team leverages market knowledge and experience
Slide 18: Public Finance
Public Finance Public finance overview: Launched in January 2017 Provides a range of credit solutions for government and not-for-profit entities Borrowers’ needs include short-term financing, debt refinancing, infrastructure improvements, economic development and equipment financing Initial efforts
Slide 19: Residential Mortgage
Residential Mortgage 20 Last 12 Months of Mortgage Originations – Regional Distribution Award-winning national online origination platform Highly efficient application and underwriting process Sales and marketing efforts re-focused on purchase mortgage business Full range of residential mortgage and
Slide 20: Residential Mortgage Origination Volumes
Residential Mortgage Origination Volumes 21 Refinance vs. Purchase Loans Held-for-Sale vs. Portfolio Loans Dollars in thousands Amounts represent closed originations 70% 71% 75% 78% 57% 42% 30% 29% 25% 22% 43% 58% $0 $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 1Q16 2Q16 3Q16
Slide 21: Nationwide Branchless Deposit Franchise
Nationwide Branchless Deposit Franchise 22 Total Deposits – $1.7 Billion – Regional Distribution As of June 30, 2017 Nationwide consumer, small business and commercial deposit base Scalable technology and customer convenience supported by exceptional service Deposit relationships in all 50 states, i
Slide 22: Deposit Composition
Deposit Composition Total deposits increased $343.2 million, or 24.7%, since 2Q16 Treasury management, small business deposits and municipal deposits provide significant opportunities for increasing lower-cost deposits 23 Total Deposits - $1,732.1 Million As of June 30, 2017 Total Non-Time Deposits
Slide 23: Asset Quality
Asset Quality 24 Asset quality has improved significantly while balance sheet growth has continued on a strong upward trend NPAs / Total Assets NPLs / Total Loans Allowance for Loan Losses / NPLs Net Charge-Offs (Recoveries) / Average Loans 1.62% 0.90% 0.50% 0.37% 0.31% 0.33% 2012 2013 2014 2015 201
Slide 24: Capital
Capital 25 Following the initial public offering in late 2013, the Company deployed capital to fund commercial loan growth, driving revenue growth and improved profitability 2016 capital offerings: 2Q16: raised $22.8 million of common equity 3Q16: issued $25.0 million in publicly traded subordinated
Slide 25: Pro Forma Capital Ratios
Pro Forma Capital Ratios 26 The following illustrates the pro forma impact of a $40 million common equity raise on the Company’s June 30, 2017 capital ratios 1 See Reconciliation of Non-GAAP Financial Measures 1 6.7% 7.5% 9.7% 9.7% 12.7% 8.2% 9.1% 11.9% 11.9% 14.8% TCE / TA Tier 1 Leverage Common Eq
Slide 26: Execution
Efficiency Ratio < 50% Noninterest Expense / Average Assets < 1.40% ROATCE 1 12.00% ROAA 0.90% + Expected Quarterly Results at $3.8-$4.0B Enhancing franchise value 1 Operating seamlessly 2 Remaining agile 3 Remain opportunistic Constant evolution and refinement of our business model Add asset genera
Slide 27: Investment Summary
Investment Summary Strong earnings growth improving profitability Demonstrated track record of deploying capital to fuel loan growth while maintaining strong asset quality Investments in commercial lending platforms are producing results Geographic and credit product diversity provide ability to gen
Slide 28: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 29 Dollars in thousands 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Total equity - GAAP $102,912 $104,330 $107,830 $135,679 $137,154 $153,942 $157,491 $163,830 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) Tangible com
Slide 29: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 30 1 Assuming a 35% tax rate Dollars in thousands 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Net Income 2,323 $ 2,278 $ 2,432 $ 2,834 $ 3,098 $ 3,710 $ 2,832 $ 4,001 $ Adjustments: Income tax provision 1,229 1,195 1,298 1,421 1,521 1,671 1,023 1,464 Provisi
Slide 30: First Internet Bancorp Common Equity Offering
First Internet Bancorp NASDAQ: INBK Common Equity Offering September 14, 2017
Slide 31: First Internet Bancorp Common Equity Offering
First INTERNET First Internet Bancorp NASDAQ: INBK Common Equity Offering September 14, 2017
First Internet Bancorp — IPO Roadshow (September 2017) on 6ix