First Internet Bancorp · NASDAQ:INBK
First Internet Bancorp — IPO Roadshow (December 2016)
26 slides from First Internet Bancorp's IPO roadshow presentation, Dec 14, 2016
Slide 1: Offering Disclosure
Offering Disclosure This presentation has been prepared by First Internet Bancorp (“First Internet” or the “Company”) solely for informational purposes based on information regarding its operations, as well as information from public sources. This presentation has been prepared to assist interested
Slide 2: Offering Summary
Issuer: Exchange / Listing: Offering Format: Security: Deal Value: Use of Proceeds: Lead Bookrunner: Co-Manager: Lock-Up: First Internet Bancorp NASDAQ: INBK Follow-On Common Stock $25 million (100% Primary) General corporate purposes, which may include providing capital to support our growth organi
Slide 3: 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 lending foo
Slide 4: Management Team
David B. Becker Chairman, President and CEO Founded the Bank in 1999 and CEO since inception Serial entrepreneur with 30 years experience in the financial services and technology industries 2001 recipient of the Ernst and Young Entrepreneur of the Year Award Kenneth J. Lovik SVP and Chief Financial
Slide 5: Performance Summary
Performance Summary 6 Strong balance sheet growth has driven increased earnings and consistent growth in tangible book value per share 1 See Reconciliation of Non-GAAP Financial Measures Diluted Earnings Per Share Pre-Tax, Pre-Provision Earnings Tangible Book Value Per Share 1 Total Assets Total Loa
Slide 6: 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 franchise focu
Slide 7: 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 Maintai
Slide 8: 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 Pub
Slide 9: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth 10 Execution of the business strategy is driving consistent and sustainable balance sheet growth CAGR: 32.4% CAGR: 38.0% CAGR: 31.8% CAGR: 24.1% Total Assets Total Loans Total Deposits Shareholders' Equity $636 $802 $971 $1,270 $1,824 2012 2013 2014 2015 3Q16 Dollars
Slide 10: 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; peer
Slide 11: Earnings and Profitability
Earnings and Profitability 12 The Company remains focused on driving earnings growth and improving profitability 1 See Reconciliation of Non-GAAP Financial Measures Net Income Net Interest Margin Return on Average Assets Return on Average Tangible Common Equity 1 $1,465 $2,063 $2,265 $2,323 $2,278 $
Slide 12: Strong Revenue and Earnings Growth
Strong Revenue and Earnings Growth 13 Strong asset generation and re-focused mortgage banking activities combined with disciplined expense management are driving revenue growth and positive operating leverage Increase in quarterly noninterest expense: 43% Increase in quarterly revenue: 80% Increase
Slide 13: 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 14: 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
Slide 15: 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 national corr
Slide 16: 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 experience
Slide 17: 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 mortgage and
Slide 18: 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 50 stat
Slide 19: 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 - $510.0 M
Slide 20: 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 21: 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 2Q16, t
Slide 22: Pro Forma Capital Ratios
23 Pro Forma Capital Ratios The exhibit below illustrates the potential impact of a $25 million common equity raise 1 See Reconciliation of Non-GAAP Financial Measures 2 Assumes 20% risk-weighting on assets and net proceeds of $23.4M after deducting offering expenses 2 1 7.3% 7.6% 10.1% 10.1% 13.7%
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 provide abi
Slide 24: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 25 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: First Internet Bancorp Common Equity Offering December 2016
First Internet Bancorp Common Equity Offering December 2016
Slide 26: First Internet Bancorp Common Equity Offering
First INTERNET First Internet Bancorp Common Equity Offering December 2016
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