First Internet Bancorp · NASDAQ:INBK
First Internet Bancorp — Q2 2017 Earnings Presentation
28 slides from First Internet Bancorp's earnings presentation, Jul 31, 2017
Slide 1: First Internet Bancorp Investor Presentation Second Quarter 2017
First Internet Bancorp Investor Presentation Second Quarter 2017 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 overall growth in tangible book value per share 1 1Q17 and 2Q17 amount reflects full impact of offering of 945,000 shares of common stock in December 2016 2 See Reconciliation of Non-GAAP Financial Measures Diluted E
Slide 5: Second Quarter 2017 Highlights
Second Quarter 2017 Highlights Record quarterly net income of $4.0 million, up 41% over 1Q17 Quarterly diluted EPS of $0.61, up 42% over 1Q17 Quarterly net interest income of $13.0 million, up 13% over 1Q17 Total quarterly loan growth of $265.2 million, or 19% Total year-over-year loan gro
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 Tempe, AZ Industry pioneer in branchless delivery of consumer and commercial banking services Nationwide deposit and len
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: Components of a Diversified Growth Engine
Components of a Diversified Growth Engine 8 Contribution to Total 2Q16 Loan Growth of $71 Million Contribution to Total 2Q17 Loan Growth of $265 Million 2017: Balanced Growth – Reduced CRE Concentration – High Credit Quality 77% 28% 5% -10% Single Tenant Lease Consumer Other Commercial Mortgage/Home
Slide 9: 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 10: Corporate Recognition
10 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 Indian
Slide 11: Consistent Balance Sheet Growth
Total Assets Total Loans Total Deposits Shareholders' Equity $636 $802 $971 $1,270 $1,854 $2,381 2012 2013 2014 2015 2016 2Q17 Dollars in millions $358 $501 $732 $954 $1,251 $1,698 2012 2013 2014 2015 2016 2Q17 Dollars in millions $531 $673 $759 $956 $1,463 $1,732 2012 2013 2014 2015 2016 2Q17 Dolla
Slide 12: 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 12 Source: Company data and SNL Financial; financial data as of June 30, 2017; peer
Slide 13: Earnings and Profitability
Earnings and Profitability 13 The Company remains focused on driving earnings growth and improving profitability 1 See Reconciliation of Non-GAAP Financial Measures Net Income Net Interest Margin - FTE 1 Return on Average Assets Return on Average Tangible Common Equity1 $2,323 $2,278 $2,432 $2,834 $
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 Net Interest Income Noninterest Expense / Average Assets Efficiency Ratio Total Assets Per FTE 2.19% 2.11% 2.08% 1.98% 1.93% 1.77% 1.85% 1.63%
Slide 15: Loan Portfolio Overview
14% 12% 13% 13% 14% 13% 12% 38% 27% 22% 20% 19% 20% 19% 5% 11% 26% 39% 45% 48% 49% 47% 44% 7% 7% 6% 6% 5% 4% 3% 15% 15% 14% 13% 13% 11 11 2014 2015 2Q16 3Q16 4Q16 1Q17 2Q17 Commercial and industrial Commercial real estate Single tenant lease financing Public finance Residential mortgage/HE/HELOCs Co
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 $279 million Nationwide platform provides ability to capitalize on nationa
Slide 17: Commercial and Industrial
Commercial and Industrial Commercial and industrial overview: Originations / commitments over the past twelve months exceeded $82 million Primarily serves the borrowing and treasury management needs of small and middle- market businesses Seasoned banking team leverages market knowledge and exp
Slide 18: Public Finance
Public Finance Public finance overview: Launched in January 2017 Provides a range of credit solutions for government and not-for-profit entities Borrowers’ needs include short-term financing, debt refinancing, infrastructure improvements, economic development and equipment financing Initial
Slide 19: Residential Mortgage
Residential Mortgage 19 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 20: Nationwide Branchless Deposit Franchise
Nationwide Branchless Deposit Franchise 20 Total Deposits – $1.7 Billion – Regional Distribution As of June 30, 2017 Nationwide consumer, small business and commercial deposit base Scalable technology and customer convenience supported by exceptional service Deposit relationships in all 50 sta
Slide 21: Deposit Composition
Deposit Composition Total deposits increased $343.2 million, or 24.7%, since 2Q16 Treasury management, small business deposits and municipal deposits provide significant opportunities for increasing lower-cost deposits 21 Total Deposits - $1,732.1 Million As of June 30, 2017 Total Non-Time Depos
Slide 22: Asset Quality
Asset Quality 22 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% 0.31% 0.33% 2012 2013 2014 2015 201
Slide 23: Capital
$19.38 $20.74 $22.24 $22.93 $23.67 $23.94 $23.04 $23.52 $24.43 10.8% 9.5% 7.9% 6.8% 7.7% 7.3% 8.1% 7.5% 6.7% 2013 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 TBV Per Share TCE / TA 11.7% 9.9% 8.3% 7.7% 8.1% 7.6% 8.7% 8.4% 7.5% 15.6% 12.6% 10.1% 9.4% 10.7% 10.1% 11.5% 10.9% 9.7% 17.1% 13.8% 12.3% 11.4% 1
Slide 24: Expected Quarterly Results at $3B+ / Execution
Efficiency Ratio Low 50s% Noninterest Expense / Average Assets 1.40-1.45% ROATCE 1 12.50% ROAA 0.90% + Expected Quarterly Results at $3B+ Enhancing franchise value 1 Operating seamlessly 2 Remaining agile 3 Remain opportunistic Constant evolution and refinement of our business model Add asset
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 26 Dollars in thousands 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Total equity - GAAP $102,912 $104,330 $107,830 $135,679 $137,154 $153,942 $157,491 $163,830 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) Tangible com
Slide 27: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 27 1 Assuming a 35% tax rate Dollars in thousands 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Net Income 2,323$ 2,278$ 2,432$ 2,834$ 3,098$ 3,710$ 2,832$ 4,001$ Adjustments: Income tax provision 1,229 1,195 1,298 1,421 1,521 1,671 1,023 1,464 Provision for l
Slide 28: First Internet Bancorp Second Quarter 2017
First Internet Bancorp Investor Presentation Second Quarter 2017
First Internet Bancorp — Q2 2017 Earnings Presentation on 6ix