First Internet Bancorp (the “Company”) (Nasdaq: INBK), the
parent company of First Internet Bank (the “Bank”), announced today
financial and operational results for the fourth quarter and full
year ended December 31, 2024.
Fourth Quarter 2024 Financial
Highlights
- Net income of $7.3 million, an increase of 4.9% from the
third quarter of 2024
- Diluted earnings per share of $0.83, an increase of 3.8%
from the third quarter of 2024
- Net interest income of $23.6 million and fully taxable
equivalent net interest income of $24.7 million1, increases of 8.2%
and 7.9%, respectively, from the third quarter of 2024
- Net interest margin of 1.67% and fully taxable equivalent
net interest margin of 1.75%1, both increasing 5 basis points
(“bps”) from the third quarter of 2024
- Loan growth of $134.8 million, a 3.3% increase from the
third quarter of 2024; deposit growth of $135.5 million, a 2.8%
increase from the third quarter of 2024; loans to deposits ratio of
84.5%
- Closed $63.1 million in SBA loans in December; guaranteed
portion to be sold to the secondary market in the first quarter of
2025
- Nonperforming loans to total loans of 0.68%; net charge-offs
to average loans of 0.91%; allowance for credit losses to total
loans of 1.07%
- Tangible common equity to tangible assets of 6.62%1, and
7.40% ex-AOCI and adjusted for normalized cash balances1; CET1
ratio of 9.30%; tangible book value per share of $43.771
Full Year 2024 Financial
Highlights
- Net income of $25.3 million, an increase of 200.3% from
2023
- Diluted earnings per share of $2.88, an increase of 203.2%
from 2023
- Net interest income of $87.4 million and fully taxable
equivalent net interest income of $92.0 million1, increases of
16.7% and 14.8%, respectively, from 2023
- Net interest margin of 1.65% and fully taxable equivalent
net interest margin of 1.74%1, increases of 9 bps and 7 bps,
respectively, from 2023
- Loan growth of $330.4 million, an 8.6% increase from 2023
and deposit growth of $866.2 million, a 21.3% increase from
2023
- Annual tangible book value per share growth of
5.7%1
1 This information represents a non-GAAP financial measure. For
a discussion of non-GAAP financial measures, see the section below
entitled "Non-GAAP Financial Measures."
“Our performance throughout 2024 reflects a year of remarkable
growth and significantly improved performance,” said David Becker,
Chairman and Chief Executive Officer. “Full year net income and
earnings per share increased substantially from 2023, driven by
growth in net interest income and greater gain on sale revenue from
our small business lending business. Strong commercial loan growth,
particularly in construction, investor commercial real estate and
small business lending, enhanced our interest rate risk profile and
drove loan yields higher. As a result, total revenue growth for the
year far outpaced expense growth, driving significant operating
leverage.
“Several of these key operating trends continued through the
fourth quarter, providing a high level of momentum as we enter the
new year. Our liquidity and capital positions are solid, and
measures of asset quality remain sound. We anticipate continued net
interest margin expansion. We are excited about the outlook for
2025 as the combination of our core businesses, a more favorable
interest rate environment, and emerging opportunities leave us
well-positioned to deliver continued earnings growth and increased
profitability.”
Net Interest Income and Net Interest Margin
Net interest income for the fourth quarter of 2024 was $23.6
million, compared to $21.8 million for the third quarter of 2024,
and $19.8 million for the fourth quarter of 2023. On a fully
taxable equivalent basis, net interest income for the fourth
quarter of 2024 was $24.7 million, compared to $22.9 million for
the third quarter of 2024, and $21.0 million for the fourth quarter
of 2023.
Total interest income for the fourth quarter of 2024 was $77.8
million, an increase of 3.7% compared to the third quarter of 2024,
and an increase of 17.4% compared to the fourth quarter of 2023. On
a fully taxable equivalent basis, total interest income for the
fourth quarter of 2024 was $78.9 million, an increase of 3.7%
compared to the third quarter of 2024, and an increase of 16.9%
compared to the fourth quarter of 2023. The yield on average
interest-earning assets for the fourth quarter of 2024 decreased to
5.52% from 5.58% for the third quarter of 2024 due to a 54 basis
point (“bp”) decrease in the yield earned on other earning assets
and a 3 bp decrease in the yield earned on securities, partially
offset by a 3 bp increase in the yield earned on loans. Compared to
the linked quarter, average loan balances, including loans
held-for-sale, increased $99.8 million, or 2.5%, the average
balance of securities increased $49.3 million, or 6.2%, and the
average balance of other earning assets increased $110.0 million,
or 20.9%.
Interest income earned on commercial loans was higher due
primarily to increased average balances within the investor
commercial real estate, construction and small business lending
portfolios. This was partially offset by lower average balances in
the healthcare and franchise finance portfolios. The continued
shift in the loan mix reflects the Company’s focus on
higher-yielding variable rate and shorter-duration products, in
part, to help improve the interest rate risk profile of the balance
sheet.
In the consumer loan portfolio, interest income was up due to
the combination of higher average balances and continued strong new
origination yields in the trailers and RV portfolios, partially
offset by lower average balances in the residential mortgage and
home equity portfolios.
The yield on funded portfolio loan originations was 7.26% in the
fourth quarter of 2024, down from 8.85% in the third quarter of
2024, reflecting 100 bps of Fed rate cuts since late in the third
quarter of 2024, as well as the larger volume of originations in
fixed-rate portfolios which are priced at lower spreads over US
treasuries, but are still significantly higher than historical
yields in these portfolios.
Interest income earned on securities during the fourth quarter
of 2024 increased $0.4 million, or 5.2%, compared to the third
quarter of 2024 due to the increase in average balances, partially
offset by a slight decrease in the yield earned on the portfolio.
The yield on the securities portfolio decreased 3 bps to 3.98%,
driven primarily by variable rate securities repricing lower
following the Fed rate cuts and the maturity of an interest rate
swap tied to the securities portfolio. Interest earned on other
earning asset balances increased $0.6 million, or 8.8%, in the
fourth quarter of 2024 compared to the linked quarter, due
primarily to higher average cash balances, partially offset by the
decrease in yields earned on those balances due to the Fed rate
cuts.
Total interest expense for the fourth quarter of 2024 was $54.2
million, an increase of $1.0 million, or 1.9%, compared to the
linked quarter, due to a 7.8% increase in average interest-bearing
deposit balances throughout the quarter, partially offset by lower
costs on those deposits and a decline in the average balance of
FHLB advances. Interest expense related to interest-bearing
deposits increased $1.7 million, or 3.6%, driven primarily by
higher average balances, partially offset by a decline of 17 bps in
the cost of funds to 4.13%.
The increase in interest expense was driven primarily by CDs as
average balances increased $185.9 million, or 9.7%, compared to the
linked quarter, driven by strong consumer demand, partially offset
by a 4 bp decrease in the cost of funds. The decrease in the cost
of funds for CDs is the second consecutive quarter of declining
costs, reflecting the favorable repricing gap between new
production and maturities. The weighted-average cost of new CDs
during the fourth quarter of 2024 was 4.23%, or 78 bps lower than
the cost of maturing CDs. Although medium-to-longer term treasury
rates increased during the fourth quarter of 2024, the Company held
CD pricing constant through most of the quarter and further lowered
CD rates in December following the Fed’s rate cut that month.
Additionally, the average balance of fintech – brokered deposits
increased $55.5 million, or 36.3%, due to higher payments volume,
partially offset by a 34 bp decrease in the cost of funds.
Furthermore, the average balance of interest-bearing demand
deposits increased $63.1 million, or 12.3%, which was almost
completely offset by a decline of 23 bps in the cost of funds.
During the fourth quarter of 2024, the Bank submitted a notice of
reliance on the primary purpose exemption with the Federal Deposit
Insurance Corporation related to fintech deposits that had been
classified as brokered, and as of December 31, 2024, reclassified
these deposits to interest-bearing demand deposits.
These increases were partially offset by a decline in interest
expense related to money market accounts and brokered deposits.
While the average balance of money market accounts increased
slightly, the cost of funds decreased 26 bps. Similarly, the
average balance of brokered deposits increased during the fourth
quarter, which was more than offset by a decline of 30 bps in the
cost of funds. The decline in the cost of money market accounts and
brokered deposits was driven primarily by the Fed rate cuts in the
third and fourth quarters of 2024. Additionally, the Company paid
down higher- cost brokered CD issuances during the fourth quarter
of 2024.
Interest expense also benefitted from a lower average balance of
FHLB advances as the Company deployed liquidity to pay down $220.0
million of advances during the fourth quarter of 2024.
Net interest margin (“NIM”) was 1.67% for the fourth quarter of
2024, up from 1.62% for the third quarter of 2024, and up from
1.58% for the fourth quarter of 2023. Fully taxable equivalent NIM
(“FTE NIM”) was 1.75% for the fourth quarter of 2024, up from 1.70%
for the third quarter of 2024, and up from 1.68% for the fourth
quarter of 2023. The increases in NIM and FTE NIM compared to the
linked quarter were due to the decline in the cost of
interest-bearing liabilities outpacing the decrease in the yield on
interest-earning assets following the Fed rate cuts that began in
late September of 2024.
Noninterest Income
Noninterest income for the fourth quarter of 2024 was $15.9
million, up from $12.0 million in the third quarter of 2024, and up
from $7.4 million in the fourth quarter of 2023. During the fourth
quarter of 2024, the Company recognized $4.7 million of prepayment
and terminated interest rate swap gains related to the paydown of
FHLB advances. Excluding these gains, adjusted noninterest income
for the quarter was $11.2 million, down 6.9% from the third quarter
of 2024. Gain on sale of loans totaled $8.6 million for the fourth
quarter of 2024, down $1.4 million, or 13.7%, from the linked
quarter. Gain on sale revenue consisted almost entirely of sales of
U.S. Small Business Administration (“SBA”) 7(a) guaranteed loans
during the fourth quarter of 2024. SBA loan sale volume during the
fourth quarter of 2024 was down 18.5% compared to the third quarter
of 2024, while net premiums increased 30 bps. The decline in loan
sale volume was due mainly to a timing issue as a significant
portion of originations during the quarter closed late in December
and will not be sold in the secondary market until January of 2025.
The decline in gain-on-sale revenue was partially offset by higher
net loan servicing revenue, which increased $0.7 million, due
primarily to growth in the servicing portfolio and a lower fair
value adjustment to the loan servicing asset.
Noninterest Expense
Noninterest expense totaled $24.0 million for the fourth quarter
of 2024, compared to $22.8 million for the third quarter of 2024,
and $20.1 million for the fourth quarter of 2023, representing
increases of 5.1% and 19.5%, respectively. The increase of $1.2
million compared to the linked quarter was due primarily to higher
salaries and employee benefits, other noninterest expense and
deposit insurance premium. The increase in salaries and employee
benefits was driven by staff additions in small business lending,
risk management and information technology as the Company continues
to invest in key areas. The increase in other noninterest expense
was due to seasonal expenses while the increase in deposit
insurance premium was due mainly to year-over-year asset
growth.
Income Taxes
The Company recorded income tax expense of $1.0 million and an
effective tax rate of 12.0% for the fourth quarter of 2024,
compared to income tax expense of $0.6 million and an effective tax
rate of 8.1% for the third quarter of 2024, and an income tax
benefit of $0.6 million for the fourth quarter of 2023. The
increase in the effective tax rate for the fourth quarter of 2024
reflects higher pre-tax income compared to prior quarters.
Loans and Credit Quality
Total loans as of December 31, 2024, were $4.2 billion, an
increase of $134.8 million, or 3.3%, compared to September 30,
2024, and an increase of $330.4 million, or 8.6%, compared to
December 31, 2023. Total commercial loan balances were $3.3 billion
as of December 31, 2024, an increase of $139.1 million, or 4.3%,
compared to September 30, 2024, and an increase of $336.7 million,
or 11.2%, compared to December 31, 2023. During the fourth quarter
of 2024, the Company experienced strong growth across most of its
commercial lines of business with notable contributions from
construction, small business lending, public finance and single
tenant lease financing.
Total consumer loan balances were $801.4 million as of December
31, 2024, a decrease of $2.0 million, or 0.2%, compared to
September 30, 2024, and an increase of $4.5 million, or 0.6%,
compared to December 31, 2023. The decrease compared to the linked
quarter was due primarily to lower balances in the residential
mortgage and home equity portfolios, partially offset by a higher
balance in the trailers portfolio.
Total delinquencies 30 days or more past due, excluding
nonperforming loans, were 0.63% of total performing loans as of
December 31, 2024, compared to 0.36% at September 30, 2024 and
0.11% as of December 31, 2023. The increase compared to the linked
quarter was due primarily to an increase in delinquencies in the
small business lending and franchise finance portfolios, some of
which was due to the timing of principal and interest payments.
Subsequent to quarter end, payments were received from certain
borrowers and as of the date of this release, delinquencies 30 days
or more past due declined to 0.44% of total performing loans.
Nonperforming loans were 0.68% of total loans as of December 31,
2024, compared to 0.56% as of September 30, 2024, and 0.26% as of
December 31, 2023. Nonperforming loans totaled $28.4 million at
December 31, 2024, up from $22.5 million at September 30, 2024, and
up from $10.0 million at December 31, 2023. The increase in
nonperforming loans during the fourth quarter of 2024 was due
primarily to franchise finance and small business lending loans
that were placed on nonaccrual during the quarter. At quarter end,
there were $8.2 million of specific reserves held against the
balance of nonperforming loans.
The allowance for credit losses (“ACL”) as a percentage of total
loans was 1.07% as of December 31, 2024, compared to 1.13% as of
September 30, 2024, and 1.01% as of December 31, 2023. The decrease
in the ACL compared to the linked quarter reflects the decline in
specific reserves and the elevated net charge-off activity
discussed below, partially offset by qualitative adjustments to the
small business lending ACL and overall loan growth.
Net charge-offs of $9.4 million were recognized during the
fourth quarter of 2024, resulting in net charge-offs to average
loans of 0.91%, compared to $1.5 million, or 0.15%, for the third
quarter of 2024 and $1.2 million, or 0.12%, for the fourth quarter
of 2023. Net charge-offs in the fourth quarter of 2024 were
elevated as the Company took action to resolve problem small
business lending loans and de-risk the portfolio. Approximately
$3.4 million of net charge-offs recognized during the quarter were
related to small business lending loans with existing specific
reserves.
The provision for credit losses in the fourth quarter of 2024
was $7.2 million, compared to $3.4 million for the third quarter of
2024, and $3.6 million for the fourth quarter of 2023. The
provision for the fourth quarter of 2024 was driven primarily by
the elevated net charge-offs, qualitative adjustments to the small
business lending ACL and overall loan growth, partially offset by
the decline in specific reserves and adjustments to qualitative
factors on other portfolios.
Capital
As of December 31, 2024, total shareholders’ equity was $384.1
million, a decrease of $1.1 million, or 0.3%, compared to September
30, 2024, and an increase of $21.3 million, or 5.9%, compared to
December 31, 2023. The modest decrease in shareholders’ equity
during the fourth quarter of 2024 compared to the linked quarter
was due primarily to an increase in accumulated other comprehensive
loss driven by higher intermediate and long-term interest rates at
quarter end, partially offset by the net income earned during the
quarter. Book value per common share was $44.31 as of December 31,
2024, down from $44.43 as of September 30, 2024, and up from $41.97
as of December 31, 2023. Tangible book value per share was $43.77,
down from $43.89 as of September 30, 2024, and up from $41.43 as of
December 31, 2023.
The following table presents the Company’s and the Bank’s
regulatory and other capital ratios as of December 31, 2024.
As of December 31, 2024
Company
Bank
Total shareholders' equity to assets
6.69%
8.01%
Tangible common equity to tangible assets
1
6.62%
7.93%
Tier 1 leverage ratio 2
6.91%
8.22%
Common equity tier 1 capital ratio 2
9.30%
11.06%
Tier 1 capital ratio 2
9.30%
11.06%
Total risk-based capital ratio 2
12.61%
12.11%
1 This information represents a non-GAAP
financial measure. For a discussion of non-GAAP financial measures,
see the section below entitled "Non-GAAP Financial Measures."
2 Regulatory capital ratios are
preliminary pending filing of the Company's and the Bank's
regulatory reports.
Conference Call and Webcast
The Company will host a conference call and webcast at 2:00 p.m.
Eastern Time on Thursday, January 23, 2025 to discuss its quarterly
financial results. The call can be accessed via telephone at (800)
549-8228; access code: 28199. A recorded replay can be accessed
through January 30, 2025 by dialing (888) 660-6264; access code:
28199 #.
Additionally, interested parties can listen to a live webcast of
the call on the Company's website at www.firstinternetbancorp.com.
An archived version of the webcast will be available in the same
location shortly after the live call has ended.
About First Internet Bancorp
First Internet Bancorp is a bank holding company with assets of
$5.7 billion as of December 31, 2024. The Company’s subsidiary,
First Internet Bank, opened for business in 1999 as an industry
pioneer in the branchless delivery of banking services. First
Internet Bank provides consumer and small business deposit, SBA
financing, franchise finance, consumer loans, and specialty finance
services nationally as well as commercial real estate loans,
construction loans, commercial and industrial loans, and treasury
management services on a regional basis. First Internet Bancorp’s
common stock trades on the Nasdaq Global Select Market under the
symbol “INBK” and is a component of the Russell 2000® Index.
Additional information about the Company is available at
www.firstinternetbancorp.com and additional information about First
Internet Bank, including its products and services, is available at
www.firstib.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, including statements with respect to
the financial condition, results of operations, trends in lending
policies and loan programs, plans and prospective business
partnerships, objectives, future performance and business of the
Company. Forward-looking statements are generally identifiable by
the use of words such as “anticipate,” “believe,” “continue,”
“could,” “estimate,” “expect,” “growth,” “help,” :improve,” “may,”
“ongoing,” “opportunities,” “pending,” “plan,” “position,”
“preliminary,” “remain,” “should,” “thereafter,” “well-positioned,”
“will,” 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. Such statements are
subject to certain risks and uncertainties including: our business
and operations and the business and operations of our vendors and
customers: general economic conditions, whether national or
regional, and conditions in the lending markets in which we
participate that may have an adverse effect on the demand for our
loans and other products; our credit quality and related levels of
nonperforming assets and loan losses, and the value and salability
of the real estate that is the collateral for our loans. Other
factors that may cause such differences include: failures or
breaches 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 and industrial, construction and SBA
loan portfolios; competition with national, regional and community
financial institutions; the loss of any key members of senior
management; the anticipated impacts of inflation and rising
interest rates on the general economy; 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, tangible common equity to tangible assets,
average tangible common equity, return on average tangible common
equity, total interest income – FTE, net interest income – FTE, net
interest margin – FTE, adjusted total revenue, adjusted noninterest
income, adjusted noninterest expense, adjusted income before income
taxes, adjusted income tax provision (benefit), adjusted net
income, adjusted diluted earnings per share, adjusted return on
average assets, adjusted return on average shareholders’ equity and
adjusted return on average tangible common equity are used by the
Company’s management to measure the strength of its capital and
analyze profitability, including its ability to generate earnings
on tangible capital invested by its shareholders. Although
management believes these non-GAAP measures are useful to investors
by providing 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) Dollar amounts in thousands, except per share data
Three Months Ended
Twelve Months Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2024
2024
2023
2024
2023
Net income
$
7,330
$
6,990
$
4,143
$
25,276
$
8,417
Per share and share information Earnings per share -
basic
$
0.84
$
0.80
$
0.48
$
2.91
$
0.95
Earnings per share - diluted
0.83
0.80
0.48
2.88
0.95
Dividends declared per share
0.06
0.06
0.06
0.24
0.24
Book value per common share
44.31
44.43
41.97
44.31
41.97
Tangible book value per common share 1
43.77
43.89
41.43
43.77
41.43
Common shares outstanding
8,667,894
8,667,894
8,644,451
8,667,894
8,644,451
Average common shares outstanding: Basic
8,696,704
8,696,634
8,683,331
8,690,416
8,837,558
Diluted
8,788,793
8,768,731
8,720,078
8,765,725
8,858,890
Performance ratios Return on average assets
0.50
%
0.50
%
0.32
%
0.46
%
0.17
%
Return on average shareholders' equity
7.49
%
7.32
%
4.66
%
6.70
%
2.35
%
Return on average tangible common equity 1
7.58
%
7.41
%
4.72
%
6.78
%
2.38
%
Net interest margin
1.67
%
1.62
%
1.58
%
1.65
%
1.56
%
Net interest margin - FTE 1,2
1.75
%
1.70
%
1.68
%
1.74
%
1.67
%
Capital ratios 3 Total shareholders' equity to assets
6.69
%
6.61
%
7.02
%
6.69
%
7.02
%
Tangible common equity to tangible assets 1
6.62
%
6.54
%
6.94
%
6.62
%
6.94
%
Tier 1 leverage ratio
6.91
%
7.13
%
7.33
%
6.91
%
7.33
%
Common equity tier 1 capital ratio
9.30
%
9.37
%
9.60
%
9.30
%
9.60
%
Tier 1 capital ratio
9.30
%
9.37
%
9.60
%
9.30
%
9.60
%
Total risk-based capital ratio
12.61
%
12.79
%
13.23
%
12.61
%
13.23
%
Asset quality Nonperforming loans
$
28,421
$
22,478
$
9,962
$
28,421
$
9,962
Nonperforming assets
28,905
22,944
10,354
28,905
10,354
Nonperforming loans to loans
0.68
%
0.56
%
0.26
%
0.68
%
0.26
%
Nonperforming assets to total assets
0.50
%
0.39
%
0.20
%
0.50
%
0.20
%
Allowance for credit losses - loans to: Loans
1.07
%
1.13
%
1.01
%
1.07
%
1.01
%
Nonperforming loans
157.5
%
203.4
%
389.2
%
157.5
%
389.2
%
Net charge-offs to average loans
0.91
%
0.15
%
0.12
%
0.32
%
0.31
%
Average balance sheet information Loans
$
4,123,510
$
4,022,196
$
3,799,211
$
3,992,031
$
3,682,490
Total securities
841,700
792,409
683,468
770,793
624,050
Other earning assets
636,377
526,384
500,733
516,836
500,061
Total interest-earning assets
5,607,195
5,348,153
4,984,133
5,285,026
4,809,840
Total assets
5,782,116
5,523,910
5,154,285
5,462,730
4,968,514
Noninterest-bearing deposits
114,311
113,009
123,351
114,396
125,816
Interest-bearing deposits
4,726,449
4,384,078
3,935,519
4,318,926
3,744,964
Total deposits
4,840,760
4,497,087
4,058,870
4,433,322
3,870,780
Shareholders' equity
389,435
380,061
353,037
377,215
357,800
1 Refer to "Non-GAAP Financial Measures" section above and
"Reconciliation of Non-GAAP Financial Measures" below 2 On a
fully-taxable equivalent ("FTE") basis assuming a 21% tax rate 3
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, 2023) Dollar amounts in thousands
December 31, September 30, December 31,
2024
2024
2023
Assets Cash and due from banks
$
9,249
$
6,539
$
8,269
Interest-bearing deposits
457,161
705,940
397,629
Securities available-for-sale, at fair value
587,355
575,257
474,855
Securities held-to-maturity, at amortized cost, net of allowance
for credit losses
249,796
263,320
227,153
Loans held-for-sale
54,695
32,996
22,052
Loans
4,170,646
4,035,880
3,840,220
Allowance for credit losses - loans
(44,769
)
(45,721
)
(38,774
)
Net loans
4,125,877
3,990,159
3,801,446
Accrued interest receivable
28,180
27,750
26,746
Federal Home Loan Bank of Indianapolis stock
28,350
28,350
28,350
Cash surrender value of bank-owned life insurance
41,394
41,111
40,882
Premises and equipment, net
71,453
72,150
73,463
Goodwill
4,687
4,687
4,687
Servicing asset
16,389
14,662
10,567
Other real estate owned
272
251
375
Accrued income and other assets
63,001
60,087
51,098
Total assets
$
5,737,859
$
5,823,259
$
5,167,572
Liabilities Noninterest-bearing deposits
$
136,451
$
111,591
$
123,464
Interest-bearing deposits
4,796,755
4,686,119
3,943,509
Total deposits
4,933,206
4,797,710
4,066,973
Advances from Federal Home Loan Bank
295,000
515,000
614,934
Subordinated debt
105,150
105,071
104,838
Accrued interest payable
2,495
2,808
3,848
Accrued expenses and other liabilities
17,945
17,541
14,184
Total liabilities
5,353,796
5,438,130
4,804,777
Shareholders' equity Voting common stock
186,094
185,631
184,700
Retained earnings
230,622
223,824
207,470
Accumulated other comprehensive loss
(32,653
)
(24,326
)
(29,375
)
Total shareholders' equity
384,063
385,129
362,795
Total liabilities and shareholders' equity
$
5,737,859
$
5,823,259
$
5,167,572
First Internet Bancorp Condensed Consolidated Statements
of Income (unaudited, except for the twelve months ended December
31, 2023) Dollar amounts in thousands, except per share data
Three Months Ended Twelve Months Ended
December 31, September 30, December 31,
December 31, December 31,
2024
2024
2023
2024
2023
Interest income Loans
$
61,523
$
59,792
$
52,690
$
233,844
$
192,337
Securities - taxable
7,619
6,953
5,447
26,742
17,189
Securities - non-taxable
794
1,042
962
3,775
3,532
Other earning assets
7,835
7,203
7,173
27,526
26,384
Total interest income
77,771
74,990
66,272
291,887
239,442
Interest expense Deposits
49,111
47,415
41,078
183,150
143,363
Other borrowed funds
5,109
5,810
5,387
21,360
21,175
Total interest expense
54,220
53,225
46,465
204,510
164,538
Net interest income
23,551
21,765
19,807
87,377
74,904
Provision for credit losses
7,201
3,390
3,594
17,070
16,653
Net interest income after provision for credit losses
16,350
18,375
16,213
70,307
58,251
Noninterest income Service charges and fees
248
245
216
959
851
Loan servicing revenue
1,825
1,570
1,134
6,188
3,833
Loan servicing asset revaluation
(428
)
(846
)
(793
)
(2,537
)
(1,463
)
Mortgage banking activities
-
-
-
-
76
Gain on sale of loans
8,568
9,933
6,028
33,329
20,526
Other
5,723
1,127
816
9,406
2,302
Total noninterest income
15,936
12,029
7,401
47,345
26,125
Noninterest expense Salaries and employee benefits
14,042
13,456
11,055
51,756
45,322
Marketing, advertising and promotion
696
548
518
2,589
2,567
Consulting and professional fees
967
902
893
3,744
3,082
Data processing
603
675
493
2,448
2,373
Loan expenses
1,381
1,524
1,371
5,947
5,756
Premises and equipment
3,004
2,918
2,846
11,902
10,599
Deposit insurance premium
1,464
1,219
1,334
5,000
3,880
Other
1,800
1,552
1,546
6,724
5,857
Total noninterest expense
23,957
22,794
20,056
90,110
79,436
Income before income taxes
8,329
7,610
3,558
27,542
4,940
Income tax provision (benefit)
999
620
(585
)
2,266
(3,477
)
Net income
$
7,330
$
6,990
$
4,143
$
25,276
$
8,417
Per common share data Earnings per share - basic
$
0.84
$
0.80
$
0.48
$
2.91
$
0.95
Earnings per share - diluted
$
0.83
$
0.80
$
0.48
$
2.88
$
0.95
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) Dollar amounts in
thousands
Three Months Ended
December 31, 2024 September 30, 2024 December 31,
2023 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 1
$
4,129,118
$
61,523
5.93
%
$
4,029,360
$
59,792
5.90
%
$
3,799,932
$
52,690
5.50
%
Securities - taxable
758,560
7,619
4.00
%
713,992
6,953
3.87
%
611,664
5,447
3.53
%
Securities - non-taxable
83,140
794
3.80
%
78,417
1,042
5.29
%
71,804
962
5.32
%
Other earning assets
636,377
7,835
4.90
%
526,384
7,203
5.44
%
500,733
7,173
5.68
%
Total interest-earning assets
5,607,195
77,771
5.52
%
5,348,153
74,990
5.58
%
4,984,133
66,272
5.28
%
Allowance for credit losses - loans
(46,427
)
(44,572
)
(36,792
)
Noninterest-earning assets
221,348
220,329
206,944
Total assets
$
5,782,116
$
5,523,910
$
5,154,285
Liabilities Interest-bearing liabilities
Interest-bearing demand deposits
$
574,577
$
2,910
2.01
%
$
511,446
$
2,880
2.24
%
$
382,427
$
1,646
1.71
%
Savings accounts
21,072
45
0.85
%
22,774
48
0.84
%
22,394
48
0.85
%
Money market accounts
1,236,116
12,309
3.96
%
1,224,680
12,980
4.22
%
1,225,781
12,739
4.12
%
Fintech - brokered deposits
208,545
2,111
4.03
%
153,012
1,682
4.37
%
62,098
685
4.38
%
Certificates and brokered deposits
2,686,139
31,736
4.70
%
2,472,166
29,825
4.80
%
2,242,819
25,960
4.59
%
Total interest-bearing deposits
4,726,449
49,111
4.13
%
4,384,078
47,415
4.30
%
3,935,519
41,078
4.14
%
Other borrowed funds
528,806
5,109
3.84
%
620,032
5,810
3.73
%
719,733
5,387
2.97
%
Total interest-bearing liabilities
5,255,255
54,220
4.10
%
5,004,110
53,225
4.23
%
4,655,252
46,465
3.96
%
Noninterest-bearing deposits
114,311
113,009
123,351
Other noninterest-bearing liabilities
23,115
26,730
22,645
Total liabilities
5,392,681
5,143,849
4,801,248
Shareholders' equity
389,435
380,061
353,037
Total liabilities and shareholders' equity
$
5,782,116
$
5,523,910
$
5,154,285
Net interest income
$
23,551
$
21,765
$
19,807
Interest rate spread
1.42
%
1.35
%
1.32
%
Net interest margin
1.67
%
1.62
%
1.58
%
Net interest margin - FTE 2,3
1.75
%
1.70
%
1.68
%
1 Includes nonaccrual loans 2 On a fully-taxable equivalent
("FTE") basis assuming a 21% tax rate 3 Refer to "Non-GAAP
Financial Measures" section above and "Reconciliation of Non-GAAP
Financial Measures" below
First Internet Bancorp Average
Balances and Rates (unaudited) Dollar amounts in thousands
Twelve Months Ended December 31,
2024 December 31, 2023 Average Interest
/ Yield / Average Interest / Yield
/ Balance Dividends Cost Balance
Dividends Cost Assets Interest-earning
assets Loans, including loans held-for-sale 1
$
3,997,397
$
233,844
5.85
%
$
3,685,729
$
192,337
5.22
%
Securities - taxable
692,806
26,742
3.86
%
551,479
17,189
3.12
%
Securities - non-taxable
77,987
3,775
4.84
%
72,571
3,532
4.87
%
Other earning assets
516,836
27,526
5.33
%
500,061
26,384
5.28
%
Total interest-earning assets
5,285,026
291,887
5.52
%
4,809,840
239,442
4.98
%
Allowance for credit losses - loans
(42,758
)
(36,038
)
Noninterest-earning assets
220,462
194,712
Total assets
$
5,462,730
$
4,968,514
Liabilities Interest-bearing liabilities
Interest-bearing demand deposits
$
494,082
$
10,448
2.11
%
$
366,082
$
6,186
1.69
%
Savings accounts
22,336
189
0.85
%
29,200
249
0.85
%
Money market accounts
1,230,443
51,036
4.15
%
1,276,602
49,890
3.91
%
Fintech - brokered deposits
141,860
6,023
4.25
%
33,039
1,402
4.24
%
Certificates and brokered deposits
2,430,205
115,454
4.75
%
2,040,041
85,636
4.20
%
Total interest-bearing deposits
4,318,926
183,150
4.24
%
3,744,964
143,363
3.83
%
Other borrowed funds
629,137
21,360
3.40
%
719,617
21,175
2.94
%
Total interest-bearing liabilities
4,948,063
204,510
4.13
%
4,464,581
164,538
3.69
%
Noninterest-bearing deposits
114,396
125,816
Other noninterest-bearing liabilities
23,056
20,317
Total liabilities
5,085,515
4,610,714
Shareholders' equity
377,215
357,800
Total liabilities and shareholders' equity
$
5,462,730
$
4,968,514
Net interest income
$
87,377
$
74,904
Interest rate spread
1.39
%
1.29
%
Net interest margin
1.65
%
1.56
%
Net interest margin - FTE 2,3
1.74
%
1.67
%
1 Includes nonaccrual loans 2 On a fully-taxable equivalent
("FTE") basis assuming a 21% tax rate 3 Refer to "Non-GAAP
Financial Measures" section above and "Reconciliation of Non-GAAP
Financial Measures" below
First Internet Bancorp Loans
and Deposits (unaudited) Dollar amounts in thousands
December 31, 2024 September 30, 2024
December 31, 2023 Amount Percent
Amount Percent Amount Percent
Commercial loans Commercial and industrial
$
120,175
2.9
%
$
111,199
2.8
%
$
129,349
3.4
%
Owner-occupied commercial real estate
53,591
1.3
%
56,461
1.4
%
57,286
1.5
%
Investor commercial real estate
269,431
6.5
%
260,614
6.5
%
132,077
3.4
%
Construction
413,523
9.9
%
340,954
8.4
%
261,750
6.8
%
Single tenant lease financing
949,748
22.7
%
932,148
23.1
%
936,616
24.4
%
Public finance
485,867
11.6
%
462,730
11.5
%
521,764
13.6
%
Healthcare finance
181,427
4.4
%
190,287
4.7
%
222,793
5.8
%
Small business lending
331,914
8.0
%
298,645
7.4
%
218,506
5.7
%
Franchise finance
536,909
12.9
%
550,442
13.6
%
525,783
13.7
%
Total commercial loans
3,342,585
80.2
%
3,203,480
79.4
%
3,005,924
78.3
%
Consumer loans Residential mortgage
375,160
9.0
%
378,701
9.4
%
395,648
10.3
%
Home equity
18,274
0.4
%
20,264
0.5
%
23,669
0.6
%
Trailers
210,575
5.0
%
205,230
5.1
%
188,763
4.9
%
Recreational vehicles
149,342
3.6
%
150,378
3.7
%
145,558
3.8
%
Other consumer loans
48,030
1.2
%
48,780
1.2
%
43,293
1.1
%
Total consumer loans
801,381
19.2
%
803,353
19.9
%
796,931
20.7
%
Net deferred loan fees, premiums, discounts and other 1
26,680
0.6
%
29,047
0.7
%
37,365
1.0
%
Total loans
$
4,170,646
100.0
%
$
4,035,880
100.0
%
$
3,840,220
100.0
%
December 31, 2024 September 30, 2024
December 31, 2023 Amount Percent
Amount Percent Amount Percent
Deposits Noninterest-bearing deposits
$
136,451
2.8
%
$
111,591
2.3
%
$
123,464
3.0
%
Interest-bearing demand deposits
896,661
18.2
%
538,484
11.2
%
402,976
9.9
%
Savings accounts
19,823
0.4
%
21,712
0.5
%
21,364
0.5
%
Money market accounts
1,183,789
24.0
%
1,230,707
25.7
%
1,248,319
30.8
%
Fintech - brokered deposits
-
0.0
%
211,814
4.4
%
74,401
1.8
%
Certificates of deposits
2,133,455
43.2
%
2,110,618
44.0
%
1,605,156
39.5
%
Brokered deposits
563,027
11.4
%
572,784
11.9
%
591,293
14.5
%
Total deposits
$
4,933,206
100.0
%
$
4,797,710
100.0
%
$
4,066,973
100.0
%
1 Includes carrying value adjustments of $22.9 million,
$24.1 million and $27.8 million related to terminated interest rate
swaps associated with public finance loans as of December 31, 2024,
September 30, 2024 and December 31, 2023, respectively.
First
Internet Bancorp Reconciliation of Non-GAAP Financial
Measures Dollar amounts in thousands, except per share data
Three Months Ended Twelve Months Ended
December 31, September 30, December 31,
December 31, December 31,
2024
2024
2023
2024
2023
Total equity - GAAP
$
384,063
$
385,129
$
362,795
$
384,063
$
362,795
Adjustments: Goodwill
(4,687
)
(4,687
)
(4,687
)
(4,687
)
(4,687
)
Tangible common equity
$
379,376
$
380,442
$
358,108
$
379,376
$
358,108
Total assets - GAAP
$
5,737,859
$
5,823,259
$
5,167,572
$
5,737,859
$
5,167,572
Adjustments: Goodwill
(4,687
)
(4,687
)
(4,687
)
(4,687
)
(4,687
)
Tangible assets
$
5,733,172
$
5,818,572
$
5,162,885
$
5,733,172
$
5,162,885
Common shares outstanding
8,667,894
8,667,894
8,644,451
8,667,894
8,644,451
Book value per common share
$
44.31
$
44.43
$
41.97
$
44.31
$
41.97
Effect of goodwill
(0.54
)
(0.54
)
(0.54
)
(0.54
)
(0.54
)
Tangible book value per common share
$
43.77
$
43.89
$
41.43
$
43.77
$
41.43
Total shareholders' equity to assets
6.69
%
6.61
%
7.02
%
6.69
%
7.02
%
Effect of goodwill
(0.07
%)
(0.07
%)
(0.08
%)
(0.07
%)
(0.08
%)
Tangible common equity to tangible assets
6.62
%
6.54
%
6.94
%
6.62
%
6.94
%
Total average equity - GAAP
$
389,435
$
380,061
$
353,037
$
377,215
$
357,800
Adjustments: Average goodwill
(4,687
)
(4,687
)
(4,687
)
(4,687
)
(4,687
)
Average tangible common equity
$
384,748
$
375,374
$
348,350
$
372,528
$
353,113
Return on average shareholders' equity
7.49
%
7.32
%
4.66
%
6.70
%
2.35
%
Effect of goodwill
0.09
%
0.09
%
0.06
%
0.08
%
0.03
%
Return on average tangible common equity
7.58
%
7.41
%
4.72
%
6.78
%
2.38
%
Total interest income
$
77,771
$
74,990
$
66,272
$
291,887
$
239,442
Adjustments: Fully-taxable equivalent adjustments 1
1,152
1,133
1,238
4,650
5,233
Total interest income - FTE
$
78,923
$
76,123
$
67,510
$
296,537
$
244,675
Net interest income
$
23,551
$
21,765
$
19,807
$
87,377
$
74,904
Adjustments: Fully-taxable equivalent adjustments 1
1,152
1,133
1,238
4,650
5,233
Net interest income - FTE
$
24,703
$
22,898
$
21,045
$
92,027
$
80,137
Net interest margin
1.67
%
1.62
%
1.58
%
1.65
%
1.56
%
Effect of fully-taxable equivalent adjustments 1
0.08
%
0.08
%
0.10
%
0.09
%
0.11
%
Net interest margin - FTE
1.75
%
1.70
%
1.68
%
1.74
%
1.67
%
1 Assuming a 21% tax rate
First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures Dollar amounts
in thousands, except per share data
Three Months Ended
Twelve Months Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2024
2024
2023
2024
2023
Total revenue - GAAP
$
39,487
$
33,794
$
27,208
$
134,722
$
101,029
Adjustments: Mortgage-related revenue
-
-
-
-
(65
)
Gain on prepayment of FHLB advances
(1,829
)
-
-
(1,829
)
-
Gain on termination of swaps
(2,904
)
-
-
(2,904
)
-
Adjusted total revenue
$
34,754
$
33,794
$
27,208
$
129,989
$
100,964
Noninterest income - GAAP
$
15,936
$
12,029
$
7,401
$
47,345
$
26,125
Adjustments: Mortgage-related revenue
-
-
-
-
(65
)
Gain on prepayment of FHLB advances
(1,829
)
-
-
(1,829
)
-
Gain on termination of swaps
(2,904
)
-
-
(2,904
)
-
Adjusted noninterest income
$
11,203
$
12,029
$
7,401
$
42,612
$
26,060
Noninterest expense - GAAP
$
23,957
$
22,794
$
20,056
$
90,110
$
79,436
Adjustments: Mortgage-related costs
-
-
-
-
(3,052
)
IT termination fees
-
-
-
(452
)
-
Anniversary expenses
-
-
-
(120
)
-
Adjusted noninterest expense
$
23,957
$
22,794
$
20,056
$
89,538
$
76,384
Income before income taxes - GAAP
$
8,329
$
7,610
$
3,558
$
27,542
$
4,940
Adjustments:1 Mortgage-related revenue
-
-
-
-
(65
)
Mortgage-related costs
-
-
-
-
3,052
Partial charge-off of C&I participation loan
-
-
-
-
6,914
IT termination fees
-
-
-
452
-
Anniversary expenses
-
-
-
120
-
Gain on prepayment of FHLB advances
(1,829
)
-
-
(1,829
)
-
Gain on termination of swaps
(2,904
)
-
-
(2,904
)
-
Adjusted income before income taxes
$
3,596
$
7,610
$
3,558
$
23,381
$
14,841
Income tax provision (benefit) - GAAP
$
999
$
620
$
(585
)
$
2,266
$
(3,477
)
Adjustments:1 Mortgage-related revenue
-
-
-
-
(14
)
Mortgage-related costs
-
-
-
-
641
Partial charge-off of C&I participation loan
-
-
-
-
1,452
IT termination fees
-
-
-
95
-
Anniversary expenses
-
-
-
25
-
Gain on prepayment of FHLB advances
(384
)
-
-
(384
)
-
Gain on termination of swaps
(610
)
-
-
(610
)
-
Adjusted income tax provision (benefit)
$
5
$
620
$
(585
)
$
1,392
$
(1,398
)
Net income - GAAP
$
7,330
$
6,990
$
4,143
$
25,276
$
8,417
Adjustments: Mortgage-related revenue
-
-
-
-
(51
)
Mortgage-related costs
-
-
-
-
2,411
Partial charge-off of C&I participation loan
-
-
-
-
5,462
IT termination fees
-
-
-
357
-
Anniversary expenses
-
-
-
95
-
Gain on prepayment of FHLB advances
(1,445
)
-
-
(1,445
)
-
Gain on termination of swaps
(2,294
)
-
-
(2,294
)
-
Adjusted net income
$
3,591
$
6,990
$
4,143
$
21,989
$
16,239
1 Assuming a 21% tax rate
First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures Dollar amounts
in thousands, except per share data
Three Months
Ended Twelve Months Ended December 31,
September 30, December 31, December 31,
December 31,
2024
2024
2023
2024
2023
Diluted average common shares outstanding
8,788,793
8,768,731
8,720,078
8,765,725
8,858,890
Diluted earnings per share - GAAP
$
0.83
$
0.80
$
0.48
$
2.88
$
0.95
Adjustments: Effect of mortgage-related revenue
-
-
-
-
(0.01
)
Effect of mortgage-related costs
-
-
-
-
0.27
Effect of partial charge-off of C&I participation loan
-
-
-
-
0.62
Effect of IT termination fees
-
-
-
0.04
-
Effect of anniversary expenses
-
-
-
0.01
-
Effect of gain on prepayment of FHLB advances
(0.16
)
-
-
(0.16
)
-
Effect of gain on termination of swaps
(0.26
)
-
-
(0.26
)
-
Adjusted diluted earnings per share
$
0.41
$
0.80
$
0.48
$
2.51
$
1.83
Return on average assets
0.50
%
0.50
%
0.32
%
0.46
%
0.17
%
Effect of mortgage-related revenue
0.00
%
0.00
%
0.00
%
0.00
%
0.00
%
Effect of mortgage-related costs
0.00
%
0.00
%
0.00
%
0.00
%
0.05
%
Effect of partial charge-off of C&I participation loan
0.00
%
0.00
%
0.00
%
0.00
%
0.11
%
Effect of IT termination fees
0.00
%
0.00
%
0.00
%
0.01
%
0.00
%
Effect of anniversary expenses
0.00
%
0.00
%
0.00
%
0.00
%
0.00
%
Effect of gain on prepayment of FHLB advances
(0.10
%)
0.00
%
0.00
%
(0.03
%)
0.00
%
Effect of gain on termination of swaps
(0.16
%)
0.00
%
0.00
%
(0.04
%)
0.00
%
Adjusted return on average assets
0.24
%
0.50
%
0.32
%
0.40
%
0.33
%
Return on average shareholders' equity
7.49
%
7.32
%
4.66
%
6.70
%
2.35
%
Effect of mortgage-related revenue
0.00
%
0.00
%
0.00
%
0.00
%
(0.01
%)
Effect of mortgage-related costs
0.00
%
0.00
%
0.00
%
0.00
%
0.67
%
Effect of partial charge-off of C&I participation loan
0.00
%
0.00
%
0.00
%
0.00
%
1.53
%
Effect of IT termination fees
0.00
%
0.00
%
0.00
%
0.09
%
0.00
%
Effect of anniversary expenses
0.00
%
0.00
%
0.00
%
0.03
%
0.00
%
Effect of gain on prepayment of FHLB advances
(1.48
%)
0.00
%
0.00
%
(0.38
%)
0.00
%
Effect of gain on termination of swaps
(2.34
%)
0.00
%
0.00
%
(0.61
%)
0.00
%
Adjusted return on average shareholders' equity
3.67
%
7.32
%
4.66
%
5.83
%
4.54
%
Return on average tangible common equity
7.58
%
7.41
%
4.72
%
6.78
%
2.38
%
Effect of mortgage-related revenue
0.00
%
0.00
%
0.00
%
0.00
%
(0.01
%)
Effect of mortgage-related costs
0.00
%
0.00
%
0.00
%
0.00
%
0.68
%
Effect of partial charge-off of C&I participation loan
0.00
%
0.00
%
0.00
%
0.00
%
1.55
%
Effect of IT termination fees
0.00
%
0.00
%
0.00
%
0.10
%
0.00
%
Effect of anniversary expenses
0.00
%
0.00
%
0.00
%
0.03
%
0.00
%
Effect of gain on prepayment of FHLB advances
(1.49
%)
0.00
%
0.00
%
(0.39
%)
0.00
%
Effect of gain on termination of swaps
(2.37
%)
0.00
%
0.00
%
(0.62
%)
0.00
%
Adjusted return on average tangible common equity
3.72
%
7.41
%
4.72
%
5.90
%
4.60
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250120819618/en/
Investors/Analysts Paula Deemer
Director of Corporate Administration (317) 428-4628
investors@firstib.com
Media PANBlast for First Internet
Bank Zach Weismiller firstib@panblastpr.com
First Internet Bancorp (NASDAQ:INBK)
과거 데이터 주식 차트
부터 1월(1) 2025 으로 2월(2) 2025
First Internet Bancorp (NASDAQ:INBK)
과거 데이터 주식 차트
부터 2월(2) 2024 으로 2월(2) 2025
