First Internet Bancorp · NASDAQ:INBK
First Internet Bancorp — Q3 2016 Earnings Presentation
26 slides from First Internet Bancorp's earnings presentation, Nov 15, 2016
Slide 1: First Internet Bancorp Investor Presentation Third Quarter 2016
First Internet Bancorp Investor Presentation Third 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: Non-GAAP Financial Measures
Non-GAAP Financial Measures 3 This presentation contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically tangible common equity, tangible assets, tangible book value per common
Slide 4: Performance Summary
Performance Summary 4 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 Share1 Total Assets Total Loans Total Deposits $0.32 $0.46 $0.50 $0.51 $0.50 $0.53
Slide 5: Third Quarter 2016 Financial Highlights
Third Quarter 2016 Financial Highlights Record quarterly net income of $3.1 million, increasing 33.4% compared to 3Q15 Quarterly diluted EPS of $0.55, increasing 7.8% compared to 3Q15 Results include the charge-off of a commercial loan, impacting pre-tax earnings by $1.1 million and diluted EP
Slide 6: 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 7: 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 8: 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 9: Corporate Recognition
9 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” Top 10 finalist – 2016 Indiana
Slide 10: Consistent Balance Sheet Growth
Total Assets Total Loans Total Deposits Shareholders' Equity $636 $802 $971 $1,270 $1,824 2012 2013 2014 2015 3Q16 Dollars in millions $358 $501 $732 $954 $1,199 2012 2013 2014 2015 3Q16 Dollars in millions $531 $673 $759 $956 $1,494 2012 2013 2014 2015 3Q16 Dollars in millions $61 $91 $97 $104 $137
Slide 11: 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 11 Source: Company data and SNL Financial; financial data as of September 30, 2016;
Slide 12: Earnings and Profitability
Earnings and Profitability 12 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 Equity1 $1,465 $2,063 $2,265 $2,323 $2,278 $2,432 $2,834 $3,098 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q1
Slide 13: Strong Revenue and Earnings Growth
$8,473 $15,236 $5,879 $8,413 4Q14 3Q16 Net Interest Income + Noninterest Income Noninterest Expense Dollars in thousands $6,375 $10,338 $2,098 $4,898 4Q14 3Q16 Net Interest Income Noninterest Income Dollars in thousands Strong Revenue and Earnings Growth 13 Strong asset generation and re-focused mor
Slide 14: Increasing Economies of Scale
Increasing Economies of Scale 14 Scalable, technology-driven model delivers increasing efficiency and is a key component driving improved operating leverage Noninterest Expense / Average Assets Efficiency Ratio Total Revenue Per FTE Total Assets Per FTE 69.4% 63.1% 63.0% 60.8% 60.6% 60.0% 61.2% 55.2
Slide 15: Loan Portfolio Overview
Loan Portfolio Overview 15 Dollars in thousands 2013 2014 3Q15 4Q15 1Q16 2Q16 3Q16 Commercial loans Commercial and industrial 55,168$ 77,232$ 89,762$ 102,000$ 106,431$ 111,130$ 107,250$ Owner-occupied commercial real estate 18,165 34,295 42,117 44,462 47,010 46,543 45,540 Investor commercial real es
Slide 16: 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 $283 million Nationwide platform provides ability to capitalize on nationa
Slide 17: Commercial and Industrial
Commercial and Industrial Commercial and industrial overview: Originations / commitments exceeded $67 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 18: Residential Mortgage
Residential Mortgage 18 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 19: Nationwide Branchless Deposit Franchise
Nationwide Branchless Deposit Franchise 19 Total Deposits – $1.5 Billion – Regional Distribution As of September 30, 2016 Nationwide consumer, small business and commercial deposit base Scalable technology and customer convenience supported by exceptional service Deposit relationships in all 5
Slide 20: Deposit Composition
Deposit Composition Total deposits increased $593.8 million, or 66.0%, since 3Q15 Treasury management and small business deposits provide a significant opportunity for increasing lower-cost core deposits 20 Total Deposits - $1,493.6 Million As of September 30, 2016 Total Non-Time Deposits - $510
Slide 21: Asset Quality
Asset Quality 21 Asset quality has improved significantly while balance sheet growth has continued on a strong upward trend 1 3Q16 includes 0.54% related to the charge-off of one C&I loan with an outstanding balance of $1.6 million NPAs / Total Assets NPLs / Total Loans Allowance for Loan Losses / N
Slide 22: Capital
Capital 22 Following the initial public offering in late 2013, the Company deployed capital to fund commercial loan growth, driving revenue growth and improved profitability During 4Q15, the Company issued $10 million in subordinated notes (tier 2 capital) to supplement regulatory capital In 2
Slide 23: 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 24: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 24 Dollars in thousands 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Total equity - GAAP $96,785 $99,362 $99,908 $102,912 $104,330 $107,830 $135,679 $137,154 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) Tangible common
Slide 25: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 25 Dollars in thousands 3Q16 Net income - GAAP 3,098$ Adjustments: Commercial and industrial loan charge-off 1 722 Net income - adjusted 3,820$ Net charge-offs (recoveries) - GAAP 1,659$ Adjustments: Commercial and industrial loan charge-off 1,582 Net ch
Slide 26: First Internet Bancorp Third Quarter 2016
First Internet Bancorp Investor Presentation Third Quarter 2016
First Internet Bancorp — Q3 2016 Earnings Presentation on 6ix