First Internet Bancorp · NASDAQ:INBK
First Internet Bancorp — Investor Presentation (August 2016)
25 slides from First Internet Bancorp's investor presentation, Aug 16, 2016
Slide 1: First Internet Bancorp Investor Presentation Second Quarter 2016
First Internet Bancorp Investor Presentation Second Quarter 2016 Exhibit 99.1
Slide 2: Forward Looking Statement
Forward Looking Statement 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 “beli
Slide 3: Performance Summary
Performance Summary 3 Strong balance sheet growth has driven increased earnings and consistent growth in tangible book value per share Diluted Earnings Per Share Pre-Tax, Pre-Provision Earnings Tangible Book Value Per Share Total Assets Total Loans Total Deposits $0.28 $0.32 $0.46 $0.50 $0.51 $0.50
Slide 4: 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 Phoenix, AZ Industry pioneer in branchless delivery of consumer and commercial banking services Nationwide deposit and l
Slide 5: 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 franch
Slide 6: 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
Slide 7: Corporate Recognition
7 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” American Banker’s “Best Banks
Slide 8: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth 8 Execution of the business strategy is driving consistent and sustainable balance sheet growth Total Assets Total Loans Total Deposits Loan Composition $636 $802 $971 $1,270 $1,702 2012 2013 2014 2015 2Q16 Dollars in millions $358 $501 $732 $954 $1,112 2012 2013 2014
Slide 9: 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 9 Source: Company data and SNL Financial; financial data as of June 30, 2016; peer d
Slide 10: Earnings and Profitability
Earnings and Profitability 10 The Company remains focused on driving earnings growth and improving profitability Net Income Net Interest Margin Return on Average Assets Return on Average Tangible Common Equity $1,282 $1,465 $2,063 $2,265 $2,323 $2,278 $2,432 $2,834 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
Slide 11: Strong Revenue and Earnings Growth
Strong Revenue and Earnings Growth 11 Strong asset generation and re-focused mortgage banking activities combined with disciplined expense management are driving revenue growth and positive operating leverage $7,616 $13,054 $5,785 $7,875 3Q14 2Q16 Net Interest Income + Noninterest Income Noninterest
Slide 12: Compelling Valuation
Compelling Valuation INBK trades at a significant discount to other micro-cap institutions despite its superior growth profile The asset generation and revenue growth capabilities are expected to drive earnings per share growth at rates exceeding expectations for the community / regional bank se
Slide 13: 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 $258 million Nationwide platform provides ability to capitalize on nationa
Slide 14: Commercial and Industrial
Commercial and Industrial Commercial and industrial overview: Originations / commitments exceeded $77 million over the past twelve months Primarily serves the borrowing and treasury management needs of small and middle- market businesses Seasoned banking team leverages market knowledge and exp
Slide 15: Residential Mortgage
Residential Mortgage 15 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 mort
Slide 16: Nationwide Branchless Deposit Franchise
Nationwide Branchless Deposit Franchise 16 Total Deposits – $1.4 Billion – Regional Distribution As of June 30, 2016 Nationwide consumer, small business and commercial deposit base Scalable technology and customer convenience supported by exceptional service Deposit relationships in all 50 sta
Slide 17: Deposit Composition
Deposit Composition Total deposits increased $532.4 million, or 62.2%, since 2Q15 Treasury management and small business deposits provide a significant opportunity for increasing lower-cost core deposits 17 Total Deposits - $1,388.9 Million As of June 30, 2016 Total Non-Time Deposits - $513.9 Mi
Slide 18: Asset Quality
Asset Quality 18 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% 0.60% 2012 2013 2014 2015 2Q16 1.23
Slide 19: Capital
Capital 19 Following the initial public offering in late 2013, the Company deployed capital to fund commercial loan growth, driving revenue growth and improved profitability In 2Q16, the Company raised $22.8 million of common equity to further support its growth During 4Q15, the Company issued
Slide 20: First Internet Banking Experience
20 First Internet Banking Experience Full suite of online capabilities and mobile apps for consumers and businesses Technology supports security, productivity, fast response and high- touch service One click “get started” call to action Supports growing customer preference for online / mobil
Slide 21: Customer Behavior – Shift to Digital
Customer Behavior – Shift to Digital Consumers continue to increasingly embrace digital channels to serve their banking needs According to a recent study, over 25% of North American consumers would consider switching to a bank with no physical locations 21 Sources: Accenture – The Digital Disrup
Slide 22: Customer Behavior – Shift to Digital
Customer Behavior – Shift to Digital According to an annual consumer banking preference survey, in 2009, 26% of consumers preferred banking online or with a mobile device, compared to 21% who preferred branch banking By 2015, a combined 44% of consumers preferred online or mobile banking, compar
Slide 23: Demographics of Digital Banking
23 Demographics of Digital Banking According to Pew Research Center, 61% of Internet users bank online and 35% of cell phone users bank using their mobile device Online and mobile banking users represent attractive demographic segments Additional research shows that digitally oriented consumer
Slide 24: Investment Summary
Investment Summary Strong earnings growth and rapidly improving profitability Demonstrated track record of deploying capital to fuel loan growth while maintaining strong asset quality Investments in commercial lending platform are producing results Geographic and credit product diversity pro
Slide 25: First Internet Bancorp Second Quarter 2016
First Internet Bancorp Investor Presentation Second Quarter 2016
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