Market Overview

First Internet Bancorp Reports 2015 Net Income Up 106%

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FISHERS, Ind.--(BUSINESS WIRE)--

First Internet Bancorp (the "Company") (NASDAQ: INBK), the parent company of First Internet Bank (www.firstib.com), today announced record annual net income for the twelve month period ended December 31, 2015.

David Becker, Chairman, President and Chief Executive Officer, commented, "We had a tremendous 2015. Executing our growth strategy, we increased loans by 30% and deposits by 26%. This drove net interest income up 38% for the year. On the bottom line, 2015 net income was up 106% and EPS was up 104% over 2014.

"Commercial loans grew by $232 million, or 66%, for the year and now make up more than 60% of our loan portfolio. Net interest income and our efficiency ratio improved each quarter. As we enter 2016, credit quality is solid and our pipeline is strong.

"Across the organization, we have talented people, focused on building and expanding relationships with our customers. We have a strategy and the team to continue our efforts to deliver positive returns to our shareholders," Becker concluded.

For the twelve month period ended December 31, 2015, net income was a record $8.9 million and diluted earnings per share were a record $1.96, compared to net income of $4.3 million and diluted earnings per share of $0.96 for the twelve month period ended December 31, 2014. Fourth quarter net income was $2.3 million and diluted earnings per share were $0.50. This compares with third quarter net income of $2.3 million and diluted earnings per share of $0.51 and fourth quarter 2014 net income of $1.5 million and diluted earnings per share of $0.32.

Highlights for the fourth quarter 2015 included:

  • Diluted earnings per share of $0.50, decreasing $0.01, or 2.0%, compared to the linked quarter and increasing $0.18, or 56.3%, compared to the fourth quarter 2014
    • During the fourth quarter, the Company recognized $0.12 million of pre-tax compensation expenses associated with a discretionary bonus award and staffing-related changes which negatively impacted diluted earnings per share by $0.02
  • Solid quarterly performance
    • Return on average assets of 0.74%
    • Return on average shareholders' equity of 8.73%
    • Return on average tangible common equity of 9.14%
  • Total loan growth of $77.3 million, or 8.8%, compared to September 30, 2015 and $221.4 million, or 30.2%, compared to December 31, 2014
  • Continued strong growth in net interest income, increasing $0.7 million, or 9.3%, compared to the linked quarter and $2.2 million, or 34.4%, compared to the fourth quarter 2014
  • Net interest margin of 2.85% compared to 2.84% for the linked quarter and 2.78% for the fourth quarter 2014
  • Capital levels continue to support loan and balance sheet growth
    • Tangible common equity to tangible assets of 7.88%
    • Tier 1 leverage ratio of 8.28%
    • Common equity tier 1 capital ratio of 10.11%
    • Tier 1 capital ratio of 10.11%
    • Total risk-based capital ratio of 12.25 %
  • Strong asset quality
    • Nonperforming loans to total loans receivable totaled 0.02% as of December 31, 2015
    • The allowance for loan losses as a percentage of nonperforming loans was 5,000.6% as of December 31, 2015

Net Interest Income and Net Interest Margin

Net interest income for the fourth quarter was $8.6 million compared to $7.8 million for the third quarter and $6.4 million for the fourth quarter 2014. Total interest income for the fourth quarter was $11.6 million, increasing $1.1 million, or 10.0%, compared to the third quarter and $3.0 million, or 34.5%, compared to the fourth quarter 2014. The increase in total interest income compared to the linked quarter was driven by a $76.3 million, or 9.1%, increase in average loans receivable and a $16.2 million, or 8.5%, increase in average investment balances. Additionally, the yield earned on the loan portfolio increased 5 bps during the fourth quarter to 4.36% from 4.31% for the third quarter. The yield earned on the investment portfolio during the fourth quarter was 2.30%, consistent with the linked quarter's yield.

Total interest expense for the fourth quarter was $3.0 million, increasing $0.3 million, or 12.2%, compared to the third quarter and $0.8 million, or 34.6%, compared to the fourth quarter 2014. Average interest-bearing deposit balances increased $61.1 million, or 7.1%, compared to the linked quarter with the related cost of funds decreasing 1 bp from 1.05% in the third quarter to 1.04% in the fourth quarter. Average Federal Home Loan Bank advances increased $23.1 million, or 16.9%, during the fourth quarter compared to the third quarter while the cost of funds associated with these borrowings declined 5 bps to 0.98%. Additionally, during the fourth quarter, the Company issued $10.0 million of subordinated notes bearing an annual fixed rate of interest of 6.4375% which contributed $0.1 million to the quarterly increase in interest expense.

Net interest margin was 2.85% for the fourth quarter compared to 2.84% for the third quarter and 2.78% for the fourth quarter 2014.

Noninterest Income

Noninterest income for the fourth quarter was $2.1 million compared to $2.4 million for the third quarter and $2.1 million for the fourth quarter 2014. The decrease of $0.2 million, or 9.7%, compared to the linked quarter was driven by a decline of $0.3 million, or 13.8%, in mortgage banking revenue resulting primarily from seasonally lower origination volumes.

Noninterest Expense

Noninterest expense for the fourth quarter was $6.5 million compared to $6.2 million for the third quarter and $5.9 million for the fourth quarter 2014. The increase of $0.3 million, or 4.6%, compared to the linked quarter was due to higher consulting and professional fees, premises and equipment costs, loan expenses and other expenses, partially offset by lower marketing expenses. Excluding the expense impact of the discretionary bonus award and staffing-related changes noted above, salaries and employee benefits decreased $0.1 million, or 3.2%, and total noninterest expense increased $0.2 million, or 2.6%, compared to the linked quarter.

Income Taxes

Income tax expense was $1.2 million for the fourth quarter, resulting in an effective tax rate of 34.4%, compared to $1.2 million and an effective tax rate of 34.6% for the linked quarter and $0.7 million and an effective tax rate of 33.6% for the fourth quarter 2014.

Loans and Credit Quality

Total loans as of December 31, 2015 were $953.9 million, increasing $77.3 million, or 8.8%, compared to September 30, 2015 and $221.4 million, or 30.2%, compared to December 31, 2014. Total commercial loan balances were $582.9 million as of December 31, 2015, increasing $74.2 million, or 14.6%, compared to September 30, 2015 and $231.8 million, or 66.0%, compared to December 31, 2014. Continued strong production in single tenant lease financing balances contributed significantly to the growth as balances increased $45.2 million, or 13.7%, compared to September 30, 2015 and $181.7 million, or 94.4%, compared to December 31, 2014. Construction loan originations also continued to grow during the fourth quarter as balances increased $15.7 million, or 52.0%, compared to September 30, 2015 and $21.0 million, or 84.5%, compared to December 31, 2014. Commercial and industrial and owner-occupied commercial real estate production was strong as well as balances increased $14.6 million on a combined basis, or 11.1%, compared to September 30, 2015 and $34.9 million, or 31.3%, compared to December 31, 2014.

Total consumer loan balances were $366.2 million as of December 31, 2015, increasing $3.1 million, or 0.9%, compared to September 30, 2015 and declining $10.0 million, or 2.7%, compared to December 31, 2014. Compared to the linked quarter, growth during the fourth quarter was driven by increases of $5.1 million, or 2.4%, in residential mortgages, $1.8 million, or 4.9%, in recreational vehicles and $0.6 million, or 0.9%, in trailers, partially offset by a decline in home equity loans of $4.0 million, or 8.5%.

Credit quality continued to remain strong as nonperforming loans to total loans receivable were 0.02% as of December 31, 2015, consistent with the prior quarter and down 2 bps from 0.04% as of December 31, 2014. Additionally, nonperforming assets to total assets declined to 0.37% as of December 31, 2015 from 0.41% as of September 30, 2015 and 0.50% as of December 31, 2014. The allowance for loan losses was $8.4 million as of December 31, 2015 compared to $7.7 million as of September 30, 2015 and $5.8 million as of December 31, 2014. The allowance as a percentage of total nonperforming loans was 5,000.6% as of December 31, 2015 compared to 3,723.8% as of September 30, 2015 and 1,959.5% as of December 31, 2014. The allowance as a percentage of total loans receivable was 0.88% as of December 31, 2015 compared to 0.88% as of September 30, 2015 and 0.79% as of December 31, 2014.

Net charge-offs of $0.1 million were recognized during the fourth quarter, resulting in net charge-offs to average loans of 0.03% compared to net recoveries of 0.07% for the third quarter and net charge-offs of 0.03% for the fourth quarter 2014. The provision for loan losses in the fourth quarter was $0.7 million compared to $0.5 million for the third quarter and $0.4 million for the fourth quarter 2014. The increase of $0.3 million, or 64.3%, compared to the linked quarter was primarily due to the strong commercial loan growth experienced in the fourth quarter.

Capital

During the fourth quarter, total shareholders' equity increased $1.4 million, due primarily to net income earned during the quarter, partially offset by the change in the unrealized gain/loss related to the investment portfolio and declared dividends. As of December 31, 2015, the Company's tier 1 leverage, common equity tier 1, tier 1 and total risk-based capital ratios were 8.28%, 10.11%, 10.11% and 12.25% compared to 8.81%, 10.74%, 10.74% and 11.90% as of September 30, 2015, respectively. The decline in the tier 1 leverage ratio was due to an increase in average assets driven primarily by commercial loan growth during the quarter. The declines in the common equity tier 1 and tier 1 capital ratios were due to an increase in risk-weighted assets resulting primarily from commercial loan growth for the quarter. The total risk-based capital ratio increased compared to the linked quarter as the impact of the increase in risk-weighted assets was more than offset by the issuance of the subordinated notes which qualify as tier 2 capital, a component of total capital. Tangible common equity to tangible assets declined 58 bps during the fourth quarter to 7.88% due primarily to strong balance sheet growth. Tangible book value per share increased to $22.24 as of December 31, 2015 from $21.90 as of September 30, 2015 and $20.74 as of December 31, 2014.

About First Internet Bancorp

First Internet Bancorp is the parent company of First Internet Bank, which opened for business in 1999 as the nation's first state-chartered, FDIC-insured institution to operate solely via the Internet. With customers in all 50 states, First Internet Bank offers consumers services including checking, savings, money market, certificates of deposit and IRA accounts as well as consumer loans, residential mortgages, residential construction loans and home equity products. For commercial clients, it provides commercial real estate loans, commercial and industrial loans and treasury management services. First Internet Bank has been recognized as one of the "Best Banks to Work For" by American Banker Magazine as well as a "Top Workplace" by The Indianapolis Star. Additional information about the Company is available at www.firstinternetbancorp.com and additional information about the Bank, including its products and services, is available at www.firstib.com.

Safe Harbor Statement

This press release 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," "expect," "anticipate," "plan," "intend," "estimate," "may," "will," "would," "could," "should" or other similar expressions. Forward-looking statements are not a guarantee of future performance or results, are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the information in the forward-looking statements. Factors that may cause such differences include: failures of or interruptions in the communications and information systems on which we rely to conduct our business; failure of our plans to grow our commercial real estate and commercial and industrial loan portfolios; competition with national, regional and community financial institutions; the loss of any key members of senior management; fluctuations in interest rates; general economic conditions; risks relating to the regulation of financial institutions; and other factors identified in reports we file with the U.S. Securities and Exchange Commission. All statements in this press release, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

Non-GAAP Financial Measures

This press release 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 share, return on average tangible common equity and tangible common equity to tangible assets are used by the Company's management to measure the strength of its capital and its ability to generate earnings on tangible capital invested by its shareholders. Although management believes these non-GAAP measures provide a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the table at the end of this release under the caption "Reconciliation of Non-GAAP Financial Measures."

 
First Internet Bancorp
Summary Financial Information (unaudited)

Amounts in thousands, except per share data

             
 
Three Months Ended Twelve Months Ended
 
December 31, September 30, December 31, December 31, December 31,
2015 2015 2014 2015 2014

Net income

$ 2,278 $ 2,323 $ 1,465 $ 8,929 $ 4,324

Per share and share information

Earnings per share - basic $ 0.50 $ 0.51 $ 0.33 $ 1.97 $ 0.96
Earnings per share - diluted 0.50 0.51 0.32 1.96 0.96
Dividends declared per share 0.06 0.06 0.06 0.24 0.24
Book value per common share 23.28 22.95 21.80 23.28 21.80
Tangible book value per common share 22.24 21.90 20.74 22.24 20.74
Common shares outstanding 4,481,347 4,484,513 4,439,575 4,481,347 4,439,575
Average common shares outstanding:

Basic

4,534,910 4,532,360 4,499,316 4,528,528 4,497,007
Diluted 4,580,353 4,574,455 4,514,505 4,554,219 4,507,995

Performance ratios

Return on average assets 0.74% 0.82% 0.62% 0.81% 0.50%
Return on average shareholders' equity 8.73% 9.14% 6.07% 8.89% 4.61%
Return on average tangible common equity 9.14% 9.58% 6.38% 9.33% 4.85%
Net interest margin 2.85% 2.84% 2.78% 2.85% 2.65%

Capital ratios1

Tangible common equity to tangible assets 7.88% 8.46% 9.54% 7.88% 9.54%
Tier 1 leverage ratio 8.28% 8.81% 9.87% 8.28% 9.87%
Common equity tier 1 capital ratio

10.11%

10.74% 12.55%

10.11%

12.55%
Tier 1 capital ratio

10.11%

10.74% 12.55%

10.11%

12.55%
Total risk-based capital ratio

12.25%

11.90% 13.75%

12.25%

13.75%

Asset quality

Nonperforming loans $ 167 $ 206 $ 296 $ 167 $ 296
Nonperforming assets 4,740 4,724 4,866 4,740 4,866
Nonperforming loans to loans receivable 0.02% 0.02% 0.04% 0.02% 0.04%
Nonperforming assets to total assets 0.37% 0.41% 0.50% 0.37% 0.50%
Allowance for loan losses to:
Loans receivable 0.88% 0.88% 0.79% 0.88% 0.79%
Nonperforming loans 5,000.6% 3,723.8% 1,959.5% 5,000.6% 1,959.5%
Net charge-offs (recoveries) to average
loans receivable 0.03% (0.07%) 0.03% (0.07%) 0.00%

Average balance sheet information

Loans receivable $ 912,233 $ 835,938 $ 708,053 $ 820,741 $ 605,358
Securities available-for-sale 207,848 191,634 129,692 181,845 153,752
Other earning assets 41,274 37,638 34,242 42,375 56,094
Total interest-earning assets 1,191,923 1,094,622 909,495 1,078,216 841,589
Total assets 1,221,517 1,123,741 938,685 1,107,222 872,303
Noninterest-bearing deposits 25,198 23,267 21,118 22,866 20,028
Interest-bearing deposits 916,006 854,889 725,740 839,353 708,271
Total deposits 941,204 878,156 746,858 862,219 728,299
Shareholders' equity 103,583 100,885 95,832 100,428 93,796
1 Regulatory capital ratios are preliminary pending filing of the Company's regulatory reports
 
   
First Internet Bancorp
Condensed Consolidated Balance Sheets (unaudited, except for December 31, 2014)
Amounts in thousands            
   
 
December 31, September 30, December 31,
2015 2015 2014
 

Assets

Cash and due from banks $ 1,063 $ 1,460 $ 1,940
Interest-bearing demand deposits 24,089 19,185 26,349
Interest-bearing time deposits 1,000 1,250 2,000
Securities available-for-sale, at fair value 213,698 202,565 137,518
Loans held-for-sale 36,518 27,773 34,671
Loans receivable 953,859 876,578 732,426
Allowance for loan losses (8,351) (7,671) (5,800)
Net loans receivable 945,508 868,907 726,626
Accrued interest receivable 4,105 3,581 2,833
Federal Home Loan Bank of Indianapolis stock 8,595 6,946 5,350
Cash surrender value of bank-owned life insurance 12,727 12,625 12,325
Premises and equipment, net 8,521 8,508 7,061
Goodwill 4,687 4,687 4,687
Other real estate owned 4,488 4,488 4,488
Accrued income and other assets 4,871 4,195 4,655
Total assets $ 1,269,870 $ 1,166,170 $ 970,503
 
Liabilities
Noninterest-bearing deposits $ 23,700 $ 22,338 $ 21,790
Interest-bearing deposits 932,354 877,412 736,808
Total deposits 956,054 899,750 758,598
Advances from Federal Home Loan Bank 190,957 150,946 106,897
Subordinated debt 12,724 2,937 2,873
Accrued interest payable 117 112 97
Accrued expenses and other liabilities 5,688 9,513 5,253
Total liabilities 1,165,540 1,063,258 873,718
Shareholders' equity
Voting common stock 72,559 72,409 71,774
Retained earnings 32,980 30,977 25,146
Accumulated other comprehensive loss (1,209) (474) (135)
Total shareholders' equity 104,330 102,912 96,785
Total liabilities and shareholders' equity $ 1,269,870 $ 1,166,170 $ 970,503
 
 
First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited, except for the twelve months ended December 31, 2014)
Amounts in thousands, except per share data
             
 
Three Months Ended Twelve Months Ended
 
December 31, September 30, December 31, December 31, December 31,
2015 2015 2014 2015 2014
 

Interest income

Loans $ 10,290 $ 9,326 $ 7,957 $ 37,049 $ 27,875
Securities - taxable 1,067 994 615 3,728 3,036
Securities - non-taxable 137 116 - 312 58
Other earning assets 100 100 51 358 246
Total interest income 11,594 10,536 8,623 41,447 31,215

Interest expense

Deposits 2,405 2,260 1,913 8,755 7,653
Other borrowed funds 621 437 335 1,939 1,275
Total interest expense 3,026 2,697 2,248 10,694 8,928
Net interest income 8,568 7,839 6,375 30,753 22,287

Provision for loan losses

746 454 387 1,946 349
Net interest income after provision          
for loan losses 7,822 7,385 5,988 28,807 21,938

Noninterest income

Service charges and fees 193 202 174 764 707
Mortgage banking activities 1,805 2,095 1,842 9,000 5,609
Gain on sale of securities - - - - 538
Gain (loss) on asset disposals 40 (27) (19) (34) (78)
Other 105 104 101 411 398
Total noninterest income 2,143 2,374 2,098 10,141 7,174

Noninterest expense

Salaries and employee benefits 3,460 3,446 3,129 14,271 12,348
Marketing, advertising and promotion 426 544 307 1,756 1,455
Consulting and professional fees 674 544 595 2,374 1,902
Data processing 287 248 277 1,016 995
Loan expenses 172 97 168 631 626
Premises and equipment 759 676 733 2,768 2,937
Deposit insurance premium 170 163 154 643 591
Other 544 489 516 1,824 1,808
Total noninterest expense 6,492 6,207 5,879 25,283 22,662

Income before income taxes

3,473 3,552 2,207 13,665 6,450

Income tax provision

1,195 1,229 742 4,736 2,126

Net income

$ 2,278 $ 2,323 $ 1,465 $ 8,929 $ 4,324
 

Per common share data

Earnings per share - basic

$ 0.50 $ 0.51 $ 0.33 $ 1.97 $ 0.96

Earnings per share - diluted

$ 0.50 $ 0.51 $ 0.32 $ 1.96 $ 0.96

Dividends declared per share

$ 0.06 $ 0.06 $ 0.06 $ 0.24 $ 0.24
 

All periods presented have been reclassified to conform to the current period classification

 
               
First Internet Bancorp
Average Balances and Rates (unaudited)
Amounts in thousands                                    
     
 
Three Months Ended
 
December 31, 2015 September 30, 2015 December 31, 2014
 
Average Interest / Yield / Average Interest / Yield / Average Interest / Yield /
Balance Dividends Cost Balance Dividends Cost Balance Dividends Cost
 
Assets
Interest-earning assets
Loans, including loans held-for-sale $ 942,801 $ 10,290 4.33% $ 865,350 $ 9,326 4.28% $ 745,561 $ 7,957 4.23%
Securities - taxable 189,447 1,067 2.23% 176,722 994 2.23% 129,692 615 1.88%
Securities - non-taxable 18,401 137 2.95% 14,912 116 3.09% - - 0.00%
Other earning assets 41,274 100 0.96% 37,638 100 1.05% 34,242 51 0.59%
Total interest-earning assets 1,191,923 11,594 3.86% 1,094,622 10,536 3.82% 909,495 8,623 3.76%
 
Allowance for loan losses (7,947) (7,223) (5,535)
Noninterest earning-assets 37,541 36,342 34,725
Total assets $ 1,221,517 $ 1,123,741 $ 938,685
 
Liabilities
Interest-bearing liabilities
Regular savings accounts $ 26,239 $ 38 0.57% $ 25,500 $ 38 0.59% $ 19,545 $ 29 0.59%
Interest-bearing demand deposits 77,096 107 0.55% 75,965 105 0.55% 68,968 95 0.55%
Money market accounts 345,337 608 0.70% 297,545 533 0.71% 274,015 502 0.73%
Certificates and brokered deposits 467,334 1,652 1.40% 455,879 1,584 1.38% 363,212 1,287 1.41%
Total interest-bearing deposits 916,006 2,405 1.04% 854,889 2,260 1.05% 725,740 1,913 1.05%
Other borrowed funds 171,169 621 1.44% 139,731 437 1.24% 91,700 335 1.45%
Total interest-bearing liabilities 1,087,175 3,026 1.10% 994,620 2,697 1.08% 817,440 2,248 1.09%
 
Noninterest-bearing deposits 25,198 23,267 21,118
Other noninterest-bearing liabilities 5,561 4,969 4,295
Total liabilities 1,117,934 1,022,856 842,853
 
Shareholders' equity 103,583 100,885 95,832
Total liabilities and shareholders' equity $ 1,221,517 $ 1,123,741 $ 938,685
     
Net interest income $ 8,568 $ 7,839 $ 6,375
 
Interest rate spread 2.76% 2.74% 2.67%
 
Net interest margin 2.85% 2.84% 2.78%
 
           
First Internet Bancorp
Average Balances and Rates (unaudited)
Amounts in thousands                        
     
 
Twelve Months Ended
 
December 31, 2015 December 31, 2014
 
Average Interest / Yield / Average Interest / Yield /
Balance Dividends Cost Balance Dividends Cost
 
Assets
Interest-earning assets
Loans, including loans held-for-sale $ 853,996 $ 37,049 4.34% $ 631,743 $ 27,875 4.41%
Securities - taxable 171,502 3,728 2.17% 151,967 3,036 2.00%
Securities - non-taxable 10,343 312 3.02% 1,785 58 3.25%
Other earning assets 42,375 358 0.84% 56,094 246 0.44%
Total interest-earning assets 1,078,216 41,447 3.84% 841,589 31,215 3.71%
 
Allowance for loan losses (6,906) (5,414)
Noninterest earning-assets 35,912 36,128
Total assets $ 1,107,222 $ 872,303
 
Liabilities
Interest-bearing liabilities
Regular savings accounts $ 24,442 $ 142 0.58% $ 18,509 $ 109 0.59%
Interest-bearing demand deposits 76,145 418 0.55% 70,362 386 0.55%
Money market accounts 299,990 2,136 0.71% 269,271 1,965 0.73%
Certificates and brokered deposits 438,776 6,059 1.38% 350,129 5,193 1.48%
Total interest-bearing deposits 839,353 8,755 1.04% 708,271 7,653 1.08%
Other borrowed funds 139,695 1,939 1.39% 45,425 1,275 2.81%
Total interest-bearing liabilities 979,048 10,694 1.09% 753,696 8,928 1.18%
 
Noninterest-bearing deposits 22,866 20,028
Other noninterest-bearing liabilities 4,880 4,783
Total liabilities 1,006,794 778,507
 
Shareholders' equity 100,428 93,796
Total liabilities and shareholders' equity $ 1,107,222 $ 872,303
   
Net interest income $ 30,753 $ 22,287
 
Interest rate spread 2.75% 2.53%
 
Net interest margin 2.85% 2.65%
 
 
First Internet Bancorp
Loans and Deposits (unaudited)
Amounts in thousands
               
 
December 31, 2015 September 30, 2015 December 31, 2014
 
Amount Percent Amount Percent Amount Percent
 

Commercial loans

Commercial and industrial $ 102,000 10.7% $ 89,762 10.2% $ 77,232 10.5%
Owner-occupied commercial real estate 44,462 4.7% 42,117 4.8% 34,295 4.7%
Investor commercial real estate 16,184 1.7% 17,483 2.0% 22,069 3.0%
Construction 45,898 4.8% 30,196 3.4% 24,883 3.4%
Single tenant lease financing 374,344 39.2% 329,149 37.6% 192,608 26.3%
Total commercial loans 582,888 61.1% 508,707 58.0% 351,087 47.9%
 

Consumer loans

Residential mortgage 214,559 22.5% 209,507 23.9% 220,612 30.1%
Home equity 43,279 4.5% 47,319 5.4% 58,434 8.0%
Trailers 67,326 7.1% 66,749 7.6% 63,288 8.7%
Recreational vehicles 38,597 4.0% 36,800 4.2% 30,605 4.2%
Other consumer loans 2,389 0.3% 2,638 0.3% 3,201 0.4%
Total consumer loans 366,150 38.4% 363,013 41.4% 376,140 51.4%
 

Net deferred loan fees, premiums and discounts

4,821 0.5% 4,858 0.6% 5,199 0.7%

Total loans receivable

$ 953,859 100.0% $ 876,578 100.0% $ 732,426 100.0%
 
 
December 31, 2015 September 30, 2015 December 31, 2014
 
Amount Percent Amount Percent Amount Percent

Deposits

Noninterest-bearing deposits $ 23,700 2.5% $ 22,338 2.5% $ 21,790 2.9%
Interest-bearing demand deposits 84,241 8.8% 79,031 8.8% 74,238 9.8%
Regular savings accounts 22,808 2.4% 26,316 2.9% 20,776 2.7%
Money market accounts 341,732 35.7% 314,105 34.9% 267,046 35.2%
Certificates of deposits 470,736 49.2% 444,396 49.4% 361,202 47.6%
Brokered deposits 12,837 1.4% 13,564 1.5% 13,546 1.8%
           
$ 956,054 100.0% $ 899,750 100.0% $ 758,598 100.0%
 
 
First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Amounts in thousands, except per share data                
   
 
Three Months Ended Twelve Months Ended
 
December 31, September 30, December 31, December 31, December 31,
2015 2015 2014 2015 2014
 
Total equity - GAAP $ 104,330 $ 102,912 $ 96,785 $ 104,330 $ 96,785
Adjustments:
Goodwill (4,687) (4,687) (4,687) (4,687) (4,687)
Tangible common equity $ 99,643 $ 98,225 $ 92,098 $ 99,643 $ 92,098
 
Total assets - GAAP $1,269,870 $1,166,170 $ 970,503 $1,269,870 $ 970,503
Adjustments:
Goodwill (4,687) (4,687) (4,687) (4,687) (4,687)
Tangible assets $1,265,183 $1,161,483 $ 965,816 $1,265,183 $ 965,816
 
Common shares outstanding 4,481,347 4,484,513 4,439,575 4,481,347 4,439,575
 
Book value per common share $ 23.28 $ 22.95 $ 21.80 $ 23.28 $ 21.80
Effect of goodwill (1.04) (1.05) (1.06) (1.04) (1.06)
Tangible book value per common share $ 22.24 $ 21.90 $ 20.74 $ 22.24 $ 20.74
 
Total shareholders' equity to assets ratio 8.22% 8.82% 9.97% 8.22% 9.97%
Effect of goodwill (0.34%) (0.36%) (0.43%) (0.34%) (0.43%)
Tangible common equity to tangible assets ratio 7.88% 8.46% 9.54% 7.88% 9.54%
 
Total average equity - GAAP $ 103,583 $ 100,885 $ 95,832 $ 100,428 $ 93,796
Adjustments:
Average goodwill (4,687) (4,687) (4,687) (4,687) (4,687)
Average tangible common equity $ 98,896 $ 96,198 $ 91,145 $ 95,741 $ 89,109
 
Return on average shareholders' equity 8.73% 9.14% 6.07% 8.89% 4.61%
Effect of goodwill 0.41% 0.44% 0.31% 0.44% 0.24%
Return on average tangible common equity 9.14% 9.58% 6.38% 9.33% 4.85%
 

First Internet Bancorp
Investors/Analysts
Paula Deemer, 317-428-4628
investors@firstib.com
or
Media
Nicole Lorch, 317-532-7906
Senior Vice President, Retail Banking
nlorch@firstib.com

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