First Internet Bancorp · NASDAQ:INBK
First Internet Bancorp — Merger or Acquisition (November 2021)
17 slides from First Internet Bancorp's merger presentation, Nov 2, 2021
Slide 1: Acquisition of First Century Bancorp
Acquisition of First Century Bancorp November 2, 2021 Solidifying our Position as a Technology - Forward, Growth - Oriented Digital Financial Services Provider
Slide 2: Forward-Looking Statements & Non-GAAP Financial Measures
Forward - Looking Statements & Non - GAAP Financial Measures This investor presentation includes “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans and future performance o
Slide 3: Transaction Highlights: Accelerates Strategic Goals
3 Accelerates Strategic Goals ▪ Adds a technology - forward , growth - oriented financial solutions provider to the INBK platform ▪ Diversifies revenue stream with the addition of attractive scalable business lines (FCB is ~ 80 % fee income) 1 ‒ Tax Product Lending ‒ Payments (ACH, Virtual Lockbox,
Slide 4: Who First Internet Bancorp is Today
Who First Internet Bancorp is Today ▪ Digital bank with unique business model and over 20 years of operations ▪ History of strong growth and clear pathway to greater profitability ▪ Highly scalable technology - driven business ▪ Nationwide deposit gathering and asset generation platforms ▪ Attractiv
Slide 5: First Century Bancorp: A Technology-Driven Financial Solutions Company
First Century Bancorp: A Technology - Driven Financial Solutions Company 5 ▪ Technology - driven financial solutions company operating under a bank charter ▪ Experienced management team, including Bill Blanton, Chairman and CEO, with 45 years of banking experience and the owner of 2 software compani
Slide 6: Significant Growth Potential in Lines of Business
Significant Growth Potential in Lines of Business ▪ Existing partners are experiencing robust growth based on strong e - commerce industry dynamics ▪ Ability to provide additional capabilities and handle higher volumes from existing partners ▪ Significant opportunities to partner with additional tec
Slide 7: Diversified Fee-Based Services & Noninterest Income Sources
Diversified Fee - Based Services & Noninterest Income Sources ▪ SBA and consumer mortgages sold to secondary market ▪ Tax refund anticipation lending ▪ ACH processing ▪ Sponsored card programs ▪ Virtual lockbox and check c learing ▪ Innovative technology supported by exceptional service ▪ Digital de
Slide 8: Diversification of Fee-Based Revenue
$12.3 $7.5 $1.4 $0.8 $0.6 First Internet Bancorp 1 Diversification of Fee - Based Revenue 8 The acquisition enables accelerated revenue growth through the expansion and diversification of noninterest income Mortgage Banking Loan Servicing Service Charges and Fees Gain on Sale of Loans $ 22.6 Other $
Slide 9: Scalable Fintech and HOA Platforms Provide Low-Cost Deposit Growth Opportunity
▪ Technology - based platform and low - cost deposit base – FCB total cost of funds at 6 bps – Scalable technology enables growth ▪ Nationwide HOA deposit platform – Utilizes industry leading digital cash management & accounting solution – Sales team with deep experience in community management indu
Slide 10: Key Transaction Terms and Assumptions
Key Transaction Terms and Assumptions Consideration ▪ $ 80.0 million of cash consideration at closing (100% cash) ▪ Aggregate purchase price represents ~ 1.35x of 3/31/22E TBV (or a premium of $21 million over 3/31/22E tangible book) ▪ Cash consideration to be funded from available on - balance shee
Slide 11: Attractive Financial Returns and Shareholder Value Creation
Attractive Financial Returns and Shareholder Value Creation 11 1 Based on 2023 mean consensus net income for INBK, excluding share repurchases, and First Century 2023 projected earnings. Excludes restructuring charges for illustrative purposes. 2 Calculated on when pro forma tangible book value per
Slide 12: First INTERNET
First INTERNET \ SS
Slide 13: Pro Forma Earnings Contribution From First Century
$5.4 $8.9 $10.9 $2.7 $2.1 $1.4 $2.0 $2.7 2021E Holding Company Net Income After-tax Net Earnings Growth 2022E Holding Company Net Income Balance Sheet Restructuring - $150mm Deployed into Securities / $150mm to Retire High-cost CDs Fully-phased After- tax Cost Savings 2022E Pro Forma After-tax Earni
Slide 14: Estimated Earnings Per Share Impact
Estimated Earnings Per Share Impact 14 Note: Illustrative earnings per share impact, excluding the impact of any restructuring charges. 1 $ 1.8 million in pre - tax cost savings on a fully synergized basis. “Run Rate” case assumes fully - phased cost savings for illustrative purposes only. Partial y
Slide 15: Pro Forma Tangible Book Value Per Share
Pro Forma Tangible Book Value Per Share 15 Note: Pro forma metrics projected to closing based on financial data as of September 30, 2021. 1 First Internet tangible book value equal to common shareholders equity less goodwill and other intangible assets. 2 Based on assumptions as of announcement date
Slide 16: Leadership and Cultural Alignment
Leadership and Cultural Alignment David Becker, Chairman and CEO 40 years of experience as a successful entrepreneur in numerous technology businesses, 22 years in banking Bill Blanton, Chairman and CEO 45 years of banking experience and the owner of two software companies involved in fintech bankin
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non - GAAP Measures 17 Nine Months Ended September 30, $mm 2021 Total equity - GAAP 370$ Adjustments: Goodwill (5) Tangible common equity 366$ Total assets - GAAP 4,252$ Adjustments: Goodwill (5) Tangible assets 4,248$ Total shareholders' equity to assets 8.71% Effect of goodwill (
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