First Internet Bancorp · NASDAQ:INBK
First Internet Bancorp — Investor Presentation (March 2015)
22 slides from First Internet Bancorp's investor presentation, Mar 10, 2015
Slide 1: First Internet Bancorp Investor Presentation Fourth Quarter 2014
First Internet Bancorp Investor Presentation Fourth Quarter 2014 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 “
Slide 3: Corporate Overview
Corporate Overview Corporate Summary ▪ First Internet Bank launched in 1999 ▪ First state - chartered FDIC - insured Internet bank ▪ Headquartered in Indianapolis with offices in Phoenix, AZ and Portland, OR ▪ Industry pioneer in branchless delivery of consumer and commercial banking services ▪ Nati
Slide 4: 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 5: 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 6: Improving Performance
Improving Performance 6 The Company’s focus on enhancing profitability resulted in continual performance improvement throughout 2014 Diluted Earnings Per Share Net Interest Margin Return on Average Assets Return on Average Tangible Common Equity $0.13 $0.22 $0.28 $0.32 1Q14 2Q14 3Q14 4Q14 2.51% 2.61
Slide 7: Strong Revenue and Earnings Growth
Strong Revenue and Earnings Growth 7 Strong asset generation and re - focused mortgage banking activities combined with disciplined expense management are driving revenue growth and positive operating leverage Net Income Net Interest Income Noninterest Income Noninterest Expense $600 $977 $1,282 $1,
Slide 8: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth 8 Execution of the business strategy is driving consistent and sustainable balance sheet growth Balances as of December 31 Total Assets Total Loans Total Deposits Loan Composition $503.9 $585.4 $636.4 $802.3 $970.5 2010 2011 2012 2013 2014 Dollars in millions $306.4 $
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 December 31, 2014; pe
Slide 10: Commercial Real Estate
Commercial Real Estate Single tenant lease financing overview: ▪ Long term lease financing of single tenant properties occupied by financially strong lessees ▪ 2014 originations / commitments exceeded $125 million ▪ Nationwide platform provides ability to capitalize on national correspondent network
Slide 11: Commercial and Industrial
Commercial and Industrial Commercial and industrial overview: ▪ 2014 originations / commitments exceeded $68 million ▪ Primarily serves the borrowing and treasury management needs of small and middle - market businesses ▪ Seasoned banking team leverages market knowledge and experience to serve clien
Slide 12: Residential Mortgage
Residential Mortgage 12 2014 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 mortgage and
Slide 13: Nationwide Branchless Deposit Franchise
Nationwide Branchless Deposit Franchise 13 Total Deposits – $758.6 Million – Regional Distribution As of December 31, 2014 ▪ Nationwide consumer, small business and commercial deposit base ▪ Scalable technology and customer convenience supported by exceptional service ▪ Deposit relationships in all
Slide 14: Deposit Composition
Deposit Composition ▪ Total deposits increased 12.7% during 2014 while the cost of funds declined 13 bps year - over - year ▪ Treasury management and small business deposits provide a significant opportunity for increasing lower - cost core deposits 14 $21.8 3% $74.2 10% $20.8 3% $267.0 35% $374.8 4
Slide 15: Asset Quality
Asset Quality 15 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 / Average Loans 3.36% 2.29% 1.62% 0.90% 0.50% 2010 2011 2012 2013 2014 3.17% 2.64% 1.23%
Slide 16: Capital
Capital 16 Tangible Common Equity Regulatory Capital Ratios $20.13 $19.38 $19.54 $20.19 $20.29 $20.74 9.0% 10.8% 10.3% 10.4% 9.8% 9.5% 2012 2013 1Q14 2Q14 3Q14 4Q14 TBV Per Share TCE / TA 8.9% 11.7% 10.9% 10.5% 10.5% 9.9% 12.2% 15.6% 15.1% 14.0% 13.2% 12.6% 13.5% 17.1% 16.6% 15.3% 14.5% 13.8% 2012 2
Slide 17: Compelling Valuation
Compelling Valuation ▪ INBK trades at a significant discount to other micro - cap institutions despite its superior growth profile ▪ The asset - generation capabilities combined with the focus on continued profitability improvement is expected to drive 2015 earnings per share growth at rates exceedi
Slide 18: First Internet Banking Experience
18 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 / mobi
Slide 19: 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 19 Sources: Accenture – The Digital Disrup
Slide 20: Demographics of Digital Banking
20 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 21: 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 22: First Internet Bancorp Fourth Quarter 2014
First Internet Bancorp Investor Presentation Fourth Quarter 2014
First Internet Bancorp — Investor Presentation (March 2015) on 6ix