Slide 1: First Internet Bancorp
First INTERNET BAN CORP NASDAQ: INBK
Slide 2: Forward-looking statements and safe harbor
This presentation may contain forward - looking statements with respect to the financial condition, results of operations, plans, objectives, future performance or business of the company. Forward - looking statements are generally identifiable by the use of words such as “believe,” “expect,” “antic
Slide 3: INBK Summary Statistics
INBK Summary Statistics Assets $802.3 million Net Loans¹ $495.7 million Deposits $673.1 million Tangible Common Equity² $86.2 million Tangible Book Value Per Share² $19.38 2013 Net Income $4.6 million Shares Outstanding 4,448,326 Headquarters Indianapolis, IN Stock Price (as of 02/10/14) $23.00 Mark
Slide 4: A Steadily Growing Balance Sheet
48,897 55,423 61,350 90,908 2010 2011 2012 2013 503,915 585,440 636,367 802,342 2010 2011 2012 2013 422,703 486,665 530,691 673,095 2010 2011 2012 2013 302,333 331,805 354,490 496,166 2010 2011 2012 2013 A Steadily Growing Balance Sheet Assets Loans Deposits Equity Note: L oans exclude HFS Dollar va
Slide 5: Management Team
Management Team ; Integral to INBK’s success are the Management team and Board of Directors ; Prior experience in both community banking and financial technology ; Founded First Internet Bank in 1999 and CEO since inception ; Over three decades of experience in financial services and technology ; 20
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 Indianapolis - based Landmark Financial Corporation, enabling expansion into residential mortgage lending 2007
Slide 7: Recent Company Awards / Accolades
; October 2013: Awarded top honors in the Online Mortgage Originator category, which recognizes lenders that use Web - based technologies to generate borrower leads and close loans ; August 2013: SNL highlights INBK as one of the Top 10 performing U.S. Bank stocks in 2013 Recent Company Awards / Acc
Slide 8: Investment highlights
; National Focus on Deposit and Consumer and Commercial Banking Growth o Over 55% asset, loan and deposit growth since December 31, 2010 o Consumer loans include high - end horse trailer and RV lending o Credit Tenant Leasing (“CTL”) with brand name customers ; Regional Footprint for Commercial Bank
Slide 9: 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 Connie Shepherd, SVP (26 years of experience) M&I
Slide 10: Loan Product Offering
Loan Product Offering Product Offering / Expertise Avg. Loan Balance Business Line 12/31/13 Balance Overview CRE Niche Consumer Lending Residential Mortgage/ HELOCs • Specialized lending niche in RV & horse - trailers • Direct and Indirect • 2013 net charge offs of 0.43% as a percentage of total con
Slide 11: Loan Portfolio Overview
Residential Mortgage 31% HELOC 8% CRE - CTL 17% CRE - Other 12% C&I 11% Horse Trailers 14% RV 7% Other Consumer <1 % 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 P
Slide 12: Loan Portfolio by Geography
Loan Portfolio by Geography Note: Excludes loans HFS D ollar values in millions National Footprint: Loans by State CRE & C&I Loans by State 12/31/2013 $496.2M Gross Loans CTL Loans by State 12/31/2013 $84.2M CTL Loans 12/31/2013 $113.4M Commercial Loans IN, 126.8 CA, 117.5 TX, 30.5 FL, 19.8 NY, 18.7
Slide 13: Exceptional Asset Quality
Exceptional Asset Quality NPAs / Assets Reserves / NPLs Reserves / Gross Loans NCOs / Avg. Loans Note: NPAs and NPLs exclude performing troubled debt restructurings ; Conservative underwriting culture and strong attention to risk management has produced solid asset quality 3.36% 2.29% 1.62% 0.90% 20
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 (and 51% of all adults surveyed) now do their bankin
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 av
Slide 16: Deposit Composition & Product Offering
$422,703 $673,095 Deposit Composition & Product Offering Deposit Composition at 12/31/13 ; Since December 31, 2010, INBK has grown deposits by 59% while reducing the overall cost of deposits by 112bps — At December 31, 2013 Non - CDs represented 54% of the portfolio ; The growing commercial lending
Slide 17: Positive Returns to Shareholders
Positive Returns to Shareholders Net Income ROAA ROATCE¹ Efficiency Ratio Note: Dollar values in thousands ¹ Return on average tangible common equity is a non - GAAP financial measure; reconciliation for tangible common equity set forth in the Appendix $4,955 $3,186 $5,606 $4,593 2010 2011 2012 2013
Slide 18: 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 17
Slide 19: Appendix
First INTERNET BAN CORP Appendix
Slide 20: 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 - G
Slide 21: Contact Information
David B. Becker First Internet Bancorp Chairman and CEO 317 - 633 - 0910 dbecker@firstib.com Investor Relations www.firstinternetbancorp.com investors@firstib.com Contact Information 19