First Internet Bancorp · NASDAQ:INBK
First Internet Bancorp — Q1 2018 Earnings Presentation
28 slides from First Internet Bancorp's earnings presentation, May 17, 2018
Slide 1: First Internet Bancorp Investor Presentation First Quarter 2018
First Internet Bancorp Investor Presentation First Quarter 2018 Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 “bel
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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 (“TCE”), tangible assets (“TA”), tangible book val
Slide 4: Performance Summary
Performance Summary Strong balance sheet growth has driven increased earnings and overall growth in tangible book value per share Diluted Earnings Per Share1,2,3 Pre-Tax, Pre-Provision Earnings3 Tangible Book Value Per Share3 $0.71 $0.71 Dollars in thousands $8,198 $26.09 $26.05 $7,925 $7,740 $25.70
Slide 5: First Quarter 2018 Highlights
First Quarter 2018 Highlights . Record quarterly net income of $6.0 million, up 72% from 4Q17 and 113% from 1Q17 . Quarterly diluted EPS of $0.71, up 73% from 4Q17 and 65% from 1Q17 . Quarterly diluted EPS was up $0.08, or 13%, and net income was up $0.7 million, or 13%, compared to 4Q17 results adj
Slide 6: Corporate Overview
Corporate Overview Corporate Summary 1Q18 Financial Information . First Internet Bank launched in 1999 . Total assets $2.9 billion . First state-chartered FDIC-insured . Total loans $2.2 billion Internet bank . Total deposits $2.2 billion . Headquartered in Fishers, IN with an . 1 office in Tempe, A
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
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 . Top Rated Online Business Bank in 2017 – Advisory HQ . TechPoint 2016 Mira Award “Tech-enabled
Slide 10: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth Execution of the business strategy has driven consistent and sustainable balance sheet growth Total Assets Total Loans Dollars in millions $2,768 $2,863 Dollars in millions $2,091 $2,209 CAGR: 34.5% CAGR: 43.9% $1,854 $1,251 $1,270 $954 $971 $732 $802 $501 2013 2014 2
Slide 11: Five Year Balance Sheet Growth
Five Year Balance Sheet Growth . Five year balance sheet growth rates far Five Year Total Asset Growth exceed the median rates for similar 340% institutions . INBK growth over this period has been primarily organic as opposed to through 73% acquisitions INBK SNL Small Cap US Banks Five Year Total Lo
Slide 12: Earnings and Profitability
Earnings and Profitability The Company remains focused on driving earnings growth and improving profitability Net Income1,2 Net Interest Margin - FTE1 $6,028 Dollars in thousands $5,344 2.57% 2.59% $4,895 2.43% 2.47% 2.48% 2.53% 2.52% 2.41% $4,001 $3,710 $3,098 $2,834 $2,832 $3,498 2Q16 3Q16 4Q16 1Q
Slide 13: Increasing Economies of Scale
Increasing Economies of Scale Scalable, technology-driven model delivers increasing efficiency and is a key component driving improved operating leverage Net Interest Income Noninterest Expense / Average Assets Dollars in thousands $15,360 $15,415 $14,191 1.98% 1.93% $12,974 1.85% 1.77% $11,457 $10,
Slide 14: Interest Rate Risk Management
Interest Rate Risk Management . 1Q18 FTE net interest margin of 2.41%1 declined 18 bps compared to 4Q17 . 15 bps of decline due to change in federal corporate tax rate . 3 bps of decline due to interest rate compression / flat yield curve . Company continued the hedging strategy initiated in 4Q17 .
Slide 15: Loan Portfolio Overview
Loan Portfolio Overview 11% 11% 11% 9% 9% 1 15% 13% 3% 3% 3% 2% Commercial and industrial 5% 4% 7% Commercial real estate 38% 38% 44% 42% Single tenant lease financing 47% 39% 49% Public finance 21% 22% Healthcare finance 5% 11% 14% 1% 2% 2% 27% 19% 20% Residential mortgage/HE/HELOCs 19% 17% 16% 16%
Slide 16: Commercial Real Estate
Commercial Real Estate Commercial real estate balances increased Single Tenant Lease Financing $164.1 million, or 22.7%, since 1Q17 Portfolio Diversity As of % of Dollars in millions March 31, 2018 total 7.7% Red Lobster Single tenant lease financing $834.3 94.0% 7.4% Walgreen's Construction 47.0 5.
Slide 17: Commercial & Industrial
Commercial & Industrial Commercial & industrial overview: Commercial & industrial balances increased . Originations / commitments over the past $41.5 million, or 25.9%, since 1Q17 twelve months exceeded $121 million As of % of . Primarily serves the borrowing and treasury Dollars in millions March 3
Slide 18: Public Finance
Public Finance Public finance originations/commitments during Portfolio Composition the past twelve months exceeded $418 million 1.3% General Obligation/G.O. Equivalent 1.9%0.5% Public Finance Balances Water & sewer revenue 3.4% 3.7% Essential use equipment Dollars in millions $481.9 loans $438.3 7.
Slide 19: Healthcare Finance
Healthcare Finance Healthcare finance originations since Portfolio Composition launching in 2017 have totaled $50.3 million Healthcare Finance Balances Dollars in millions $48.9 California 36.1% $31.6 46.2% Texas Nevada $12.4 Other $2.8 7.8% 9.9% 2Q17 3Q17 4Q17 1Q18 Healthcare finance overview: 1.4%
Slide 20: Residential Mortgage
Residential Mortgage . Award-winning national Last 12 Months of Mortgage Originations – Regional Distribution online origination platform . Highly efficient application and underwriting process 19.8% 20.2% . Sales and marketing 29.8% efforts re-focused on purchase mortgage business 19.5% . Full rang
Slide 21: Nationwide Branchless Deposit Franchise
Nationwide Branchless Deposit Franchise . Nationwide consumer, Total Deposits – $2.2 Billion – Regional Distribution small business and As of March 31, 2018 commercial deposit base . Scalable technology $328.7 million and customer 15.1% convenience supported $398.2 million by exceptional service 18.
Slide 22: Deposit Composition
Deposit Composition . Total deposits increased $620.0 million, or 39.8%, since 1Q17 . Treasury management, small business deposits and municipal deposits provide significant opportunities for increasing lower-cost deposits Total Deposits - $2.2 Billion Total Non-Time Deposits - $799.0 Million As of
Slide 23: Asset Quality
Asset Quality Asset quality has improved significantly while balance sheet growth has continued on a strong upward trend NPAs / Total Assets NPLs / Total Loans 0.37% 0.90% 0.50% 0.09% 0.37% 0.31% 0.21% 0.20% 0.04% 0.02% 0.04% 0.03% 2013 2014 2015 2016 2017 1Q18 2013 2014 2015 2016 2017 1Q18 Allowanc
Slide 24: Capital
Capital . Following the initial public offering in late 2013, the Company deployed capital to fund commercial loan growth, driving revenue growth and improved profitability . 2016/2017 capital offerings: . 2Q16: raised $22.8 million of common equity . 3Q16: issued $25.0 million in publicly traded su
Slide 25: Investment Summary
Investment Summary . Strong earnings growth improving profitability . Demonstrated track record of deploying capital to fuel loan growth while maintaining strong asset quality . Investments in commercial lending platforms are producing results . Geographic and credit product diversity provide abilit
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Dollars in thousands 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Total equity - GAAP $135,679 $137,154 $153,942 $157,491 $163,830 $220,867 $224,127 $224,824 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) Tangible common
Slide 27: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Dollars in thousands 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Net Income $ 2,834 $ 3,098 $ 3,710 $ 2,832 $ 4,001 $ 4,895 $ 3,498 $ 6,028 Adjustments: Income tax provision 1,421 1,521 1,671 1,023 1,464 1,694 3,521 862 Provision for loan losses 924 2,204 25
Slide 28: First Internet Bancorp First Quarter 2018
First Internet Bancorp Investor Presentation First Quarter 2018
First Internet Bancorp — Q1 2018 Earnings Presentation on 6ix