First Internet Bancorp · NASDAQ:INBK
First Internet Bancorp — Q4 2016 Earnings Presentation
25 slides from First Internet Bancorp's earnings presentation, Feb 28, 2017
Slide 1: First Internet Bancorp Investor Presentation Fourth Quarter 2016
First Internet Bancorp Investor Presentation Fourth Quarter 2016 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 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 1 Tangible Book Value Per Share1 Total Assets Total Lo
Slide 5: Fourth Quarter & Full Year 2016 Highlights
Fourth Quarter & Full Year 2016 Highlights Record quarterly net income of $3.7 million, up 63% over 4Q15 Record annual net income of $12.1 million, up 35% over FY2015 Record quarterly diluted EPS of $0.64, up 28% over 4Q15 Record annual diluted EPS of $2.30, up 17% over FY2015 Quarterly RO
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 Phoenix, AZ Industry pioneer in branchless delivery of consumer and commercial banking services Nationwide deposit and l
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
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
Slide 10: Consistent Balance Sheet Growth
Total Assets Total Loans Total Deposits Shareholders' Equity $636 $802 $971 $1,270 $1,854 2012 2013 2014 2015 2016 Dollars in millions $358 $501 $732 $954 $1,251 2012 2013 2014 2015 2016 Dollars in millions $531 $673 $759 $956 $1,463 2012 2013 2014 2015 2016 Dollars in millions $61 $91 $97 $104 $154
Slide 11: 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 December 31, 2016; p
Slide 12: 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 Equity1 $2,063 $2,265 $2,323 $2,278 $2,432 $2
Slide 13: Increasing Economies of Scale
Increasing Economies of Scale 13 Scalable, technology-driven model delivers increasing efficiency and is a key component driving improved operating leverage Net Interest Income Noninterest Expense / Average Assets Efficiency Ratio Total Assets Per FTE 2.55% 2.34% 2.19% 2.11% 2.08% 1.98% 1.93% 1.77%
Slide 14: Loan Portfolio Overview
Loan Portfolio Overview 14 Dollars in thousands 2013 2014 4Q15 1Q16 2Q16 3Q16 4Q16 Commercial loans Commercial and industrial 55,168$ 77,232$ 102,000$ 106,431$ 111,130$ 107,250$ 102,437$ Owner-occupied commercial real estate 18,165 34,295 44,462 47,010 46,543 45,540 57,668 Investor commercial real e
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 $260 million Nationwide platform provides ability to capitalize on nationa
Slide 16: Commercial and Industrial
Commercial and Industrial Commercial and industrial overview: Originations / commitments over the past twelve months exceeded $50 million Primarily serves the borrowing and treasury management needs of small and middle- market businesses Seasoned banking team leverages market knowledge and exp
Slide 17: Residential Mortgage
Residential Mortgage 17 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 18: Nationwide Branchless Deposit Franchise
Nationwide Branchless Deposit Franchise 18 Total Deposits – $1.5 Billion – Regional Distribution As of December 31, 2016 Nationwide consumer, small business and commercial deposit base Scalable technology and customer convenience supported by exceptional service Deposit relationships in all 50
Slide 19: Deposit Composition
Deposit Composition Total deposits increased $506.8 million, or 53.0%, since 4Q15 Treasury management, small business deposits and municipal deposits provide significant opportunities for increasing lower-cost deposits 19 Total Deposits - $1,462.9 Million As of December 31, 2016 Total Non-Time D
Slide 20: Asset Quality
Asset Quality 20 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% 2012 2013 2014 2015 2016 1.23
Slide 21: Capital
Capital 21 Following the initial public offering in late 2013, the Company deployed capital to fund commercial loan growth, driving revenue growth and improved profitability 2016 capital offerings: 2Q16: raised $22.8 million of common equity 3Q16: issued $25 million in publicly traded subord
Slide 22: 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 23: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 23 Dollars in thousands 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Total equity - GAAP $99,362 $99,908 $102,912 $104,330 $107,830 $135,679 $137,154 $153,942 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) Tangible commo
Slide 24: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 24 Dollars in thousands 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Net Income 2,063$ 2,265$ 2,323$ 2,278$ 2,432$ 2,834$ 3,098$ 3,710$ Adjustments: Inco tax provision 442 1,152 1,229 1,195 1,298 1,421 1,521 1,671 Provision for l an losses 1,160 304 454 746 9
Slide 25: First Internet Bancorp Fourth Quarter 2016
First Internet Bancorp Investor Presentation Fourth Quarter 2016
First Internet Bancorp — Q4 2016 Earnings Presentation on 6ix