First Internet Bancorp · NASDAQ:INBK
First Internet Bancorp — Shareholder Meeting (May 2013)
32 slides from First Internet Bancorp's shareholder meeting presentation, May 20, 2013
Slide 1: First Internet Bancorp Annual Meeting of Shareholders May 20, 2013
First Internet Bancorp Annual Meeting of Shareholders May 20, 2013
Slide 2: Proposals
Proposals IFirst INTERNET
Slide 3: Proposal 1: Election of Directors
Proposal 1: Election of Directors
Slide 4: Proposal 2: Advisory Vote to Approve Executive Compensation
Proposal 2: Advisory Vote to Approve Executive Compensation
Slide 5: Proposal 3: Advisory Vote on Frequency of Advisory Votes to Approve Executive Compensation
Proposal 3: Advisory Vote on Frequency of Advisory Votes to Approve Executive Compensation
Slide 6: Proposal 4: Approval of 2013 Equity Incentive Plan
Proposal 4: Approval of 2013 Equity Incentive Plan
Slide 7: Proposal 5: Ratification of Appointment of Independent Registered Public Accounting Firm
Proposal 5: Ratification of Appointment of Independent Registered Public Accounting Firm
Slide 8: Voting
Voting IFirst INTERNET
Slide 9: Safe Harbor Statement
Safe Harbor Statement The following 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
Slide 10: Better Banking
Better Banking • Single - bank holding company – First Internet Bank launched 1999 – The first state - chartered, FDIC - insured Internet bank • National consumer market served from a single location – Proven online retail banking and lending platform using best - of - breed technology backed by exc
Slide 11: Progress: Full Year 2012 and First Quarter 2013 in Review
Progress Full Year 2012 and First Quarter 2013 in Review
Slide 12: Highlights from 2012 and 1Q 2013
Highlights from 2012 and 1Q 2013 • Achieved record assets, deposits and profitability • Asset quality continued to be strong • Residential mortgage volume increased 109% over prior year • Increased overall lending portfolio with focus on CRE and C&I • Added key management: – Ed Roebuck as Chief Cred
Slide 13: Building Growth
Building Growth • Bolstered C&I lending and mortgage origination and support teams portfolios • Continued to build nationwide credit - tenant leasing portfolio • Partnered with BancAlliance for well - qualified, national C&I loan participation opportunities • Relocated corporate headquarters for gre
Slide 14: How We Compare
How We Compare • Non - traditional model • Key results snapshot for last five years – Return on Average Assets (ROAA) – Return on Average Equity (ROAE) – Net Interest Margin (NIM) – Texas Ratio Focused on Shareholders, Exceeding Peers Performance
Slide 15: Growing Shareholder Value
Growing Shareholder Value Source: First Internet Bancorp Q1 2011 Q1 2012 Q1 2013 Net Income $532,000 or $0.28 per diluted share $1.15 million or $0.60 per diluted share $1.49 million or $0.77 per diluted share Non - interest Income $320,000 $2.04 million $3.15 million Total Assets $535.69 million $6
Slide 16: Improving Key Metrics
Improving Key Metrics Source: FFIEC Uniform Bank Performance Reports Peer Group data in this presentation represents FFIEC Peer Group 3: Insured commercial banks having assets between $300 million and $1 billion 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 2009 2010 2011 2012 Q1 2013 NIM -0.50% 0.00% 0.50% 1
Slide 17: Declining Cost of Funds
Declining Cost of Funds • Continued reduction of cost of funds is expected to improve net interest margin • Lower cost structure means First Internet Bank can offer competitive deposit rates, which builds customer loyalty 0 0.5 1 1.5 2 2.5 3 3.5 2009 2010 2011 2012 Q1 2013 Cost of Funds Source: Firs
Slide 18: High Efficiency, Low Overhead
High Efficiency, Low Overhead • First Internet Bank continues to operate more efficiently than peers • Anticipated growth should produce future improvement Source: FFIEC Uniform Bank Performance Reports 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 2009 2010 2011 2012 Q1 2013 Efficie
Slide 19: Driving Non-Interest Income
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 2009 2010 2011 2012 Q1 2013 INBK Peer Group • Growing national mortgage origination business • 93 rd percentile within the bank’s peer group for fee income • Commercial treasury management s ervices r amping up Driving Non - Interest Income 0.00% 0.50% 1.00% 1.50% 2.0
Slide 20: Prudent Growth, Diversification, Asset Quality Strengths
Prudent Growth, Diversification, Asset Quality Strengths
Slide 21: Growth Rate Exceeds Peers
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 2009 2010 2011 2012 Q1 2013 INBK Peer Group • First Internet Bank is growing assets faster than peers • No concentration in any single asset class Growth Rate Exceeds Peers Source: FFIEC Uniform Bank Performance Reports -4.00% 0.00% 4.00% 8.00% 12.00% 16.00% 20.00% 20
Slide 22: CRE and C&I Loan Growth
CRE and C&I Loan Growth $6.16 $6.98 $18.86 $64.43 $89.35 $0 $20 $40 $60 $80 $100 2009 2010 2011 2012 Q1 2013 Millions CRE $3.81 $4.83 $2.05 $13.19 $19.74 $0 $5 $10 $15 $20 $25 2009 2010 2011 2012 Q1 2013 C&I Source: First Internet Bancorp
Slide 23: Diversified Loan Portfolio
Sales Residential RE Commercial RE Consumer Commercial Diversified Loan Portfolio • Commercial Real Estate represented 25% of the portfolio compared to 18% in 1Q 2012 • Commercial represented 6% of the portfolio compared to 2% in 1Q 2012 2013 Residential RE, $124,289,932 Commercial RE, $89,347,265 C
Slide 24: Diversified Deposit Base
Diversified Deposit Base >50m 10m - 50m 5 - 10m 2 - 5m 1 - 2m <1m • First Internet Bank has a national presence, with deposit customers in every state Source: First Internet Bancorp
Slide 25: Strong Asset Quality, Declining Credit Costs
Strong Asset Quality, Declining Credit Costs $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 2009 2010 2011 2012 Q1 2013 (thousands) Non-performing Loans Other Real Estate Owned 0 0.5 1 1.5 2 2.5 3 3.5 2009 2010 2011 2012 Q1 2013 % of total loans NCO/Loans Loan Loss reserve/Loans • Asset quality resu
Slide 26: Enhancing Shareholder Value Our Mission
Enhancing Shareholder Value Our Mission
Slide 27: Our focus in 2013 and beyond: Growth, Earnings, Diversification
Our focus in 2013 and beyond: Growth, Earnings, Diversification • Generating more high quality assets, particularly in Commercial Real Estate and Commercial • Expanding national mortgage market share • Growing commercial deposits • Building and maintaining strong capital position • Exploring acquisi
Slide 28: Share Price and Trading Volume
Share Price and Trading Volume Source: Yahoo! Finance 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 $0 $5 $10 $15 $20 $25 $30 $35 Price INBK Price (Adjusted Close) FIBP Price (Adjusted Close) INBK Volume FIBP Volume OTC NASDAQ
Slide 29: Share Price Compared to Market
Share Price Compared to Market Source: Yahoo! Finance
Slide 30: INBK Share Price Upside Potential
INBK Share Price Upside Potential • Management believes stock valuation should appreciate as market recognizes financial performance, capital levels, credit quality and management capability • Increased trading volume on NASDAQ should provide greater liquidity for shareholders • Cash dividend initia
Slide 31: Shareholder Communication
Shareholder Communication • Please sign up for alerts to receive an email when First Internet Bancorp posts news: http://www.firstinternetbancorp.com/register/
Slide 32: Thank you for your continued support!
Thank you for your continued support!
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