First Internet Bancorp · NASDAQ:INBK
First Internet Bancorp — Shareholder Meeting (May 2014)
32 slides from First Internet Bancorp's shareholder meeting presentation, May 19, 2014
Slide 1: Annual Meeting of Shareholders May 19, 2014
Annual Meeting of Shareholders May 19, 2014
Slide 2: Proposals
PROPOSALS First INTERNET BANC OR P
Slide 3: Election of Directors Proposal 1
Election of Directors Proposal 1
Slide 4: Advisory Vote to Approve Executive Compensation Proposal
Advisory Vote to Approve Executive Compensation Proposal 2
Slide 5: Ratification of Appointment of Independent Registered Public Accounting Firm Proposal 3
Ratification of Appointment of Independent Registered Public Accounting Firm Proposal 3
Slide 6: Voting
oS VOTING BANC OR P
Slide 7: Safe Harbor
Safe Harbor 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 “believe,” “exp
Slide 8: First Internet Bank = Better Banking
First Internet Bank = Better Banking • Single - bank holding company – First Internet Bank launched 1999 – The first state - chartered, FDIC - insured Internet bank • National consumer market – Proven online retail banking and lending platform using best - of - breed technology backed by exceptional
Slide 9: Expanding our Presence
Expanding our Presence • Opened commercial loan production offices in Tempe, AZ and Portland, OR • Continued to build nationwide credit - tenant leasing portfolio • Transitioned mortgage origination to focus on home purchase, awarded Top Online Originator • Featured speakers at BAI Retail Delivery a
Slide 10: Recent Company Recognition
October 2013: Awarded top honors in the Online Mortgage Originator category, which recognizes lenders that use Web - based technologies to generate borrower leads and close loans August 2013: SNL highlights INBK as one of the Top 10 performing U.S. Bank stocks in 2013 Recent Company Recognition June
Slide 11: Income Statement Highlights
Income Statement Highlights 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 2010 2011 2012 2013 Net Interest Income Non Interest Income Net Income 0 1,000 2,000 3,000 4,000 5,000 6,000 Q1 2013 Q1 2014 Dollar values in thousands
Slide 12: Enhanced Company Value
Enhanced Company Value 2,807,385 2,807,385 2,815,094 4,448,326 4,449,619 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 2010 2011 2012 2013 Q1 2014 Shareholders' Equity CAGR 23.0% Common Shares
Slide 13: Share Price and Trading Volume
Share Price and Trading Volume 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 FIBP Adjusted Close INBK Adjusted Close Volume (OTC) Volume (NASDAQ) Source: Yahoo! Finance
Slide 14: Share Price Appreciation Compared to Market
Share Price Appreciation Compared to Market First Inter net Bancorp NASDAQ iShares Russell Microcap ETF KBW Bank Index Source: Yahoo! Finance
Slide 15: The Growing Balance Sheet
$503,915 $585,440 $636,367 $802,342 2010 2011 2012 2013 Assets CAGR 16.8% $422,703 $486,665 $530,691 $673,095 2010 2011 2012 2013 Deposits CAGR 16.8% $302,333 $331,805 $354,490 $496,166 2010 2011 2012 2013 Loans CAGR 18.0% Loans exclude Held For Sale, all dollar values in thousands The Growing Balan
Slide 16: Growth Continues
Growth Continues Q1 2014 Q1 2014 vs. Q1 2013 Improvement ( $ MM) Increase (%) Assets $197.28 30% Net Loans Receivable $174.25 49% Commercial Loans $121.08 111% Deposits $180.99 33% Shareholders’ Equity $29.00 46% Net Interest Income $0.97 25% Nonperforming Loans to Total Loans - 80 bps
Slide 17: Growth Impacts Dynamics
Dollar values in thousands 1.01% 0.59% 0.91% 0.67% 0.30% 2010 2011 2012 2013 Q1 2014 ROAA 10.10% 6.09% 9.51% 7.10% 2.64% 2010 2011 2012 2013 Q1 2014 ROAE 57.8% 64.2% 61.0% 76.0% 85.3% 2010 2011 2012 2013 Q1 2014 Efficiency Ratio Growth Impacts Dynamics
Slide 18: Growth Rate Exceeds Peers' while Overhead Remains Lower
Growth Rate Exceeds Peers’ while Overhead Remains Lower 16.2% 8.7% 26.1% 30.6% -4% 0% 4% 8% 12% 16% 20% 24% 28% 32% 36% 2010 2011 2012 2013 Q1 2014 Asset Growth 2.1% 2.1% 2.7% 3.1% 2.7% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 2010 2011 2012 2013 Q1 2014 Overhead Expense as a % of Avg. Assets Da
Slide 19: Experienced lending team
INBK lending efforts are led by a team of highly experienced bankers with roots at some of the largest regional and super - regional institutions in the country Each division manager has 20+ years of experience in banking Connie Shepherd, SVP (26 years of experience) M&I Bank National City Mellon Ba
Slide 20: Expanding Loan Product Offerings
Expanding Loan Product Offerings Avg. Loan Balance 3/31/2014 Business Line Overview Commercial Real Estate (CRE) Niche Consumer Lending Residential Mortgage/ HELOCs • Specialized lending niche in RV & horse - trailers • Direct and Indirect • 2014 net charge offs of 0.29% as a percentage of total con
Slide 21: Loan Portfolio Composition
Loan Portfolio Composition Loan Type (As of 3/31/2014) Commercial Real Estate 60,953 11.55% Commercial & Industrial 63,373 12.01% Credit Tenant Leasing 105,847 20.06% Residential Mortgage (1 - 4 Family) 156,057 29.58% Home Equity Loans 36,676 6.95% Consumer RV 33,892 6.42% Horse Trailer 67,340 12.76
Slide 22: Loan Portfolio Evolution
Loan Portfolio Evolution Residential Mortgage 30% HELOC 7% CRE - CTL 20% CRE - Other 12% C&I 12% Horse Trailers 13% RV 6% Other Consumer <1 % 12/31/2010 $302.3M Gross Loans 3/31/2014 $527.6M Gross Loans Excludes loans Held For Sale CRE - Other 6% C&I 2% Horse Trailers 33% Residential Mortgage 34% HE
Slide 23: Loan Portfolio by State
Loan Portfolio by State IN, $127.59 CA, $127.00 TX, $32.71 FL, $25.49 NY, $22.55 IL, $19.84 VA, $17.61 CO, $13.17 WA, $11.39 OH, $10.07 TN, $9.72 PA, $8.28 AZ, $6.58 WI, $6.10 NC, $5.56 MN, $5.40 NJ, $5.38 GA, $5.30 Other, $67.90 National Footprint: Loans by State IN, $85.91 TX, $10.16 TN, $4.34 WI,
Slide 24: Commercial Loan Growth
Commercial Loan Growth $19.56 $43.51 $84.92 $142.43 $166.80 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 2010 2011 2012 2013 Q1 2014 Millions Commercial Real Estate $4.92 $2.06 $14.27 $55.17 $63.37 $0 $10 $20 $30 $40 $50 $60 $70 2010 2011 2012 2013 Q1 2014 Commercial & Industrial Dollar values in mil
Slide 25: Exceptional Asset Quality
NPAs and NPLs exclude performing troubled debt restructurings Conservative underwriting culture and strong attention to risk management has produced solid asset quality 3.36% 2.29% 1.62% 0.90% 0.81% 2010 2011 2012 2013 Q1 2014 NPAs/Assets 71.4% 64.6% 133.3% 293.0% 398.5% 2010 2011 2012 2013 Q1 2014
Slide 26: Declining Credit Costs
Declining Credit Costs $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 2010 2011 2012 2013 Q1 2014 (thousands) Other Real Estate Owned Nonperforming Loans 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 2010 2011 2012 2013 Q1 2014 NCO/Average Loans Loan Loss Reserve/Loans Receivable Asset quality results
Slide 27: Declining Cost of Funds
Declining Cost of Funds • Reduction in cost of funds even as deposits climbed • Lower cost structure means First Internet Bank can offer competitive deposit rates, which builds customer loyalty $0 $100 $200 $300 $400 $500 $600 $700 $800 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 2010 2011 2012 2013 Q1 2014
Slide 28: Capitalizing on Industry Trends
¹ Pew Research Center ² American Bankers Association • The popularity of internet and mobile banking continues to accelerate • Internet banking now represents customers’ preferred banking method • Mobile services outranked telephone and traditional mail as a preferred method of banking, representing
Slide 29: Deposit Composition
Deposit Composition Money Market 37% Certificate of Deposits 44% Brokered 3% Non - Interest Bearing 2% Savings 3% Demand 11% 3/31/2014 $727.7M Deposits
Slide 30: Diversified National Deposit Base
Diversified National Deposit Base • Unlike most community banks, INBK is not limited by a particular geographic or customer focus, and therefore is less susceptible to concentration risks • INBK has deposit relationships in every state, including some of the most desirable metro areas in the US > $5
Slide 31: Looking Forward
Looking Forward Focus: Organic growth Additional asset - generating channels Remain opportunistic on acquisitions Leverage: Existing infrastructure Technology Management depth
Slide 32: Investor Relations
Investor Relations www.firstinternetbancorp.com investors@firstib.com NASDAQ: INBK
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