First Internet Bancorp · NASDAQ:INBK
First Internet Bancorp — Q4 2019 Earnings Presentation
14 slides from First Internet Bancorp's earnings presentation, Jan 22, 2020
Slide 1: Financial Results Fourth Quarter 2019
Financial Results Fourth Quarter 2019 Exhibit 99.2
Slide 2: Forward-Looking Statements & Non-GAAP Financial Measures
Forward-Looking Statements & Non-GAAP Financial Measures 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 a
Slide 3: Fourth Quarter 2019 Highlights
Fourth Quarter 2019 Highlights . Record net income of $7.1 million and record diluted EPS of $0.72 . Earnings Record annual net income of $25.2 million and record annual diluted EPS of $2.51 . Improved return on average assets and average tangible common equity . Total revenue of $20.8 million, up 1
Slide 4: Loan Portfolio Overview
Loan Portfolio Overview . Total loans increased $82.3 million, or 2.9%, compared to 3Q19 and $247.3 million, or 9.1%, year-over- year . Quarterly commercial loan growth of $93.5 million driven by healthcare finance and the SBA loan portfolio acquisition . Sold $53.7 million of single tenant lease fi
Slide 5: Deposit Composition
Deposit Composition . Total deposits increased $5.7 million, or 0.2%, compared to 3Q19 and $482.6 million, or 18.1%, year- over-year . Strong quarterly money market growth of $88.3 million, including $73.4 million in small business . CD and brokered deposit balances decreased $90.3 million compared
Slide 6: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin . Net interest income stabilized, following recent Net Interest Income – GAAP and FTE1 declines Dollars in millions GAAP FTE $17.8 $17.7 . Stable loan yields and declining deposit costs $16.9 $16.8 $16.9 . NIM contracted 3 bps sequentially due mainly to lo
Slide 7: Net Interest Margin Drivers
Net Interest Margin Drivers . Linked quarter NIM decline was primarily attributable to the impact of elevated cash balances combined with falling short-term interest rates – 7 bp negative impact . Lower deposit costs and improved deposit mix had a positive impact of 4 bps . Higher loan yields added
Slide 8: Noninterest Income
Noninterest Income . Noninterest income of $5.4 million compared to $5.6 million in 3Q19 and $2.0 million in 4Q18 . Seasonally strong mortgage banking revenue of $3.0 million . Gain on sale of loans of $1.7 million, up significantly over 3Q19 . Sales of single tenant lease financing and public finan
Slide 9: Noninterest Expense
Noninterest Expense . Noninterest expense of $12.6 million compared to $11.2 million in 3Q19 and $12.7 million in 4Q18 . Deposit insurance premium resumed vs. a credit in 3Q19 (no expense recognized) . Increased consulting and professional fees related to recruiting and third party loan review fees
Slide 10: Asset Quality
Asset Quality . Asset quality metrics remain among the industry’s best, driven by a strong credit culture and lower-risk asset classes . Nonperforming loans up $0.9 million compared to 3Q19 driven by a portfolio residential mortgage loan and accruing loans 90+ days past due offset by a decline in no
Slide 11: 2020 Strategy and Outlook
2020 Strategy and Outlook . Manage balance sheet growth and deploy excess liquidity to fund loan growth and/or higher-cost deposit runoff . Continued loan production combined with loan sales to enhance noninterest income and improve mix of earning assets . Build capital through improved profitabilit
Slide 12: Appendix
Appendix 12 BANCORP
Slide 13: Loan Portfolio Composition
Loan Portfolio Composition Dollars in thousands 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 Commercial loans Commercial and industrial $ 101,326 $ 121,966 $ 112,900 $ 110,560 $ 106,517 $ 88,874 $ 96,420 Owner-occupied commercial real estate 55,637 71,872 75,701 75,317 71,908 74,384 73,392 Investor commercial
Slide 14: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Dollars in thousands 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Total equity - GAAP $224,824 $282,087 $287,740 $288,735 $294,013 $296,120 $295,140 $304,913 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) Tangible common
First Internet Bancorp — Q4 2019 Earnings Presentation on 6ix