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First Internet Bancorp Reports Fourth Quarter and Full Year 2021 Results

Highlights for the fourth quarter and full year 2021 include:

  • Record annual net income and diluted earnings per share of $48.1 million and $4.82, respectively
  • Quarterly net income of $12.5 million, compared to $12.1 million for the third quarter of 2021 and $11.1 million for the fourth quarter of 2020
  • Quarterly diluted earnings per share of $1.25, up 3.3% over the third quarter of 2021 and 11.6% over the fourth quarter of 2020
  • Quarterly adjusted net income of $13.0 million, or $1.30 per diluted share, when excluding an IT contract termination fee and acquisition-related expenses
  • Total quarterly revenue of $31.2 million, an 8.6% increase from the third quarter of 2021 and a 1.0% decrease from the fourth quarter of 2020
  • Net interest margin and fully-taxable equivalent net interest margin both increased 30 basis points (“bps”) from the third quarter of 2021
  • Repurchased 100,000 shares at an average price of $44.36 during the quarter

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, 2021. Net income for the fourth quarter of 2021 was $12.5 million, or $1.25 diluted earnings per share. This compares to net income of $12.1 million, or $1.21 diluted earnings per share, for the third quarter of 2021, and net income of $11.1 million, or $1.12 diluted earnings per share, for the fourth quarter of 2020.

For the full year ended December 31, 2021, net income was a record $48.1 million and diluted earnings per share were a record $4.82, compared to net income of $29.5 million and diluted earnings per share of $2.99 for the year ended December 31, 2020.

“We generated record annual net income for 2021, closing out our 22nd year on a high note and paving the path for a bright future ahead,” said David Becker, Chairman and Chief Executive Officer. “Over the course of the year, we built momentum on several fronts. Our expanding national SBA platform steadily gained traction and contributed to our year-over-year revenue growth, while our recently formed franchise finance business funded over $80 million in loans in conjunction with our partner ApplePie Capital. Solid pipelines in SBA, franchise finance, construction and other key business lines position us well for the year ahead.

“With respect to our strategies designed to build sustainable fee revenue, our transformational acquisition of First Century Bancorp, announced in November, will add several attractive and scalable business lines, providing us multiple growth opportunities, a further diversified revenue profile and access to a stable, low-cost deposit base,” Mr. Becker added. “This is a compelling, strategic acquisition that we believe will bolster the combined company’s long-term earnings power.

“Looking forward, we plan to further build out our national small business platform, integrate First Century Bancorp and expand our banking-as-a-service capabilities, as evidenced by our recently announced partnership with Synctera. We will also continue to look for Fintech partners that will help to further position us as a premier technology-forward digital financial services provider.”

Mr. Becker concluded, “I want to thank the entire First Internet team for their exceptional work this year. We foster a workplace culture that promotes innovation and collaboration, and we all aspire to have a more meaningful and lasting positive impact on our customers and the communities we call home. We were named one of the “Best Banks to Work For” by American Banker for the ninth consecutive year, a recognition that amplifies our success attracting, developing and retaining a talented, diverse and dedicated workforce.”

Net Interest Income and Net Interest Margin

Net interest income for the fourth quarter of 2021 was $23.5 million, compared to $20.9 million for the third quarter of 2021, and $18.9 million for the fourth quarter of 2020. On a fully-taxable equivalent basis, net interest income for the fourth quarter of 2021 was $24.9 million, compared to $22.3 million for the third quarter of 2021, and $20.3 million for the fourth quarter of 2020.

Total interest income for the fourth quarter of 2021 was $34.2 million, an increase of 3.5% compared to the third quarter of 2021, and an increase of 1.6% compared to the fourth quarter of 2020. On a fully-taxable equivalent basis, total interest income for the fourth quarter of 2021 was $35.5 million, an increase of 3.3% compared to the third quarter of 2021, and an increase of 1.4% compared to the fourth quarter of 2020. The increase in total interest income compared to the third quarter of 2021 was driven primarily by an 18 bp increase in the yield on average interest-earning assets, partially offset by a 2.2% decrease in the average balance of those assets. The yield on interest-earning assets for the fourth quarter of 2021 increased to 3.34% from 3.16% in the linked quarter due primarily to an increase in loan fee income as well as higher yields on new loan production. Average loan balances decreased $9.3 million, or 0.3%, while the average balance of securities and other earning assets decreased $35.8 million and $47.4 million, respectively.

Total interest expense for the fourth quarter of 2021 was $10.7 million, a decrease of 11.8% compared to the third quarter of 2021, and a decrease of 27.7% compared to the fourth quarter of 2020. The decrease in total interest expense compared to the linked quarter was due primarily to a 51 bp decline in the cost of other borrowed funds and a 6 bp decline in the cost of interest-bearing deposits. The decrease in the cost of other borrowed funds reflects the recognition of $0.8 million of pre-tax costs associated with the redemption of subordinated notes in the third quarter of 2021.

During the fourth quarter of 2021, the cost of non-maturity deposits remained stable compared to the linked quarter while the average balance of these deposits decreased $31.7 million, or 1.8%. Furthermore, the cost of certificates and brokered deposits decreased by 12 bps and average balances decreased by $73.5 million, or 5.3%. During the fourth quarter of 2021, new certificates of deposit were originated at a weighted average cost of 40 bps while maturing certificates of deposit had a weighted average cost of 146 bps, a difference of 106 bps.

Net interest margin (“NIM”) improved to 2.30% for the fourth quarter of 2021, up from 2.00% for the third quarter of 2021 and 1.78% in the fourth quarter of 2020. Fully-taxable equivalent NIM (“FTE NIM”) increased by 30 bps to 2.43% for the fourth quarter of 2021, up from 2.13% for the third quarter of 2021 and 1.91% in the fourth quarter of 2020. The increases in NIM and FTE NIM compared to the linked quarter were driven primarily by a combination of higher average loan yields and lower interest-bearing deposit costs, as well as the effect of lower securities and cash balances.

Noninterest Income

Noninterest income for the fourth quarter of 2021 was $7.7 million, compared to $7.8 million for the third quarter of 2021 and $12.7 million for the fourth quarter of 2020. The slight decrease compared to the linked quarter was driven primarily by lower revenues from mortgage banking activities, partially offset by an increase in gain on sale of loans. Gain on sale of loans totaled $4.1 million for the quarter, increasing $1.4 million compared to the third quarter of 2021, driven by a $0.9 million gain on the sale of $20.1 million of single tenant lease financing loans as well as a higher amount of U.S. Small Business Administration (“SBA”) 7(a) guaranteed loan sales in the quarter. Mortgage banking revenue totaled $2.8 million for the fourth quarter of 2021, down $1.1 million from the linked quarter due to a decrease in interest rate locks, sold loan volume and margins.

Noninterest Expense

Noninterest expense for the fourth quarter of 2021 was $17.0 million, compared to $14.5 million for both the third quarter of 2021 and the fourth quarter of 2020. The increase of $2.5 million, or 17.3%, compared to the linked quarter was due primarily to higher salaries and employee benefits, consulting and professional fees and premises and equipment. The higher salaries and employee benefits expense was due mainly to higher incentive compensation in the Company’s small business lending division, higher medical claims expense and increased headcount. The increase in consulting and professional fees was primarily due to $0.2 million of acquisition-related expenses as well as the timing of third party external loan reviews. The increase in premises and equipment was driven primarily by a $0.5 million termination fee related to an information technology contract.

Income Taxes

The Company reported an income tax expense of $2.0 million for the fourth quarter of 2021 and an effective tax rate of 13.8%, compared to an income tax expense of $2.2 million and an effective tax rate of 15.5% for the third quarter of 2021 and an income tax expense of $3.1 million and an effective tax rate of 21.6% for the fourth quarter of 2020.

Loans and Credit Quality

Total loans as of December 31, 2021 were $2.9 billion, a decrease of $48.5 million, or 1.7%, compared to September 30, 2021, and a decrease of $171.6 million, or 5.6%, compared to December 31, 2020. Total commercial loan balances were $2.4 billion as of December 31, 2021, a decrease of $41.6 million, or 1.7%, compared to September 30, 2021 and a decrease of $151.8 million, or 6.0%, compared to December 31, 2020. Compared to the linked quarter, the decline in commercial loan balances was driven primarily by net payoffs in single tenant lease financing, healthcare finance, owner-occupied commercial real estate, commercial and industrial and public finance loans as well as the sale of single tenant lease financing loans discussed above. These items were partially offset by growth in franchise finance, construction and small business lending.

Total consumer loan balances were $469.9 million as of December 31, 2021, a decrease of $5.2 million, or 1.1%, compared to September 30, 2021 and a decrease of $12.4 million, or 2.6%, compared to December 31, 2020. The decrease compared to the linked quarter was due to prepayment activity in the residential mortgage, trailers and other consumer loan portfolios.

Total delinquencies 30 days or more past due decreased to 0.04% of total loans as of December 31, 2021, down from 0.06% as of September 30, 2021 and down from 0.17% as of December 31, 2020. Overall credit quality improved as nonperforming loans to total loans was 0.26% as of December 31, 2021, compared to 0.27% at September 30, 2021 and 0.33% as of December 31, 2020.

The allowance for loan losses as a percentage of total loans was 0.96% as of December 31, 2021, or 0.97% when excluding PPP loans, compared to 0.95% and 0.96%, respectively, as of September 30, 2021 and 0.96% and 0.98%, respectively, as of December 31, 2020.

Net recoveries of $0.1 million were recognized during the fourth quarter of 2021, resulting in net recoveries to average loans of 0.01%, compared to net charge-offs to average loans of 0.01% for the third quarter of 2021 and 0.04% for the fourth quarter of 2020. The provision for loan losses in the fourth quarter of 2021 was a benefit of $0.2 million, compared to a benefit of $29,000 for the third quarter of 2021 and a provision of $2.9 million for the fourth quarter of 2020. The benefit recognized in the fourth quarter of 2021 primarily reflects the decrease in loan balances, partially offset by adjustments to qualitative factors that increased the overall allowance as a percentage of loans.

Capital

As of December 31, 2021, total shareholders’ equity was $380.3 million, an increase of $9.9 million, or 2.7%, compared to September 30, 2021, due primarily to the net income earned during the quarter and a decrease in accumulated other comprehensive loss, partially offset by stock repurchase activity during the quarter. Book value per common share increased to $38.99 as of December 30, 2021, up from $37.59 as of September 30, 2021 and $33.77 as of December 31, 2020. Tangible book value per share increased to $38.51, up from $37.12 and $33.29, each as of the same reference dates.

In connection with its recently announced stock repurchase program, the Company repurchased 100,000 shares of its common stock during the fourth quarter of 2021 at an average price of $44.36 per share.

The following table presents the Company’s and the Bank’s regulatory and other capital ratios as of December 31, 2021.

As of December 31, 2021

Company

Bank

 

Total shareholders' equity to assets

9.03%

10.17%

Tangible common equity to tangible assets 1

8.93%

10.07%

Tier 1 leverage ratio 2

9.22%

10.37%

Common equity tier 1 capital ratio 2

12.92%

14.55%

Tier 1 capital ratio 2

12.92%

14.55%

Total risk-based capital ratio 2

17.36%

15.48%

 

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 12:00 p.m. Eastern Time on Thursday, January 20, 2022 to discuss its quarterly and full year financial results. The call can be accessed via telephone at (888) 348-3664. A recorded replay can be accessed through February 21, 2022 by dialing (877) 344-7529; passcode: 6205278.

Additionally, interested parties can listen to a live webcast of the call on 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 $4.2 billion as of December 31, 2021. The Company’s subsidiary, First Internet Bank, opened for business in 1999 as an industry pioneer in the branchless delivery of banking services. The Bank provides consumer and small business deposit, SBA financing, residential mortgage loans, 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 the Bank, including its products and services, is available at www.firstib.com.

Forward-Looking Statements

This press release may contain forward-looking statements, including statements with respect to the pending acquisition of First Century Bancorp and its effects on the future performance of the Company and the Bank, the expected timing of completion of the transaction and other statements concerning 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,” “confidence in,” “continue,” “could,” “designed,” “effort,” “estimate,” “expect,” “help,” “intend,” “looking forward,” “may,” “opportunities,” “optimistic,” “pending,” “plan,” “position,” “preliminary,” “remain,” “should,” “will,” “working on,” “would” 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: the effects of the COVID-19 global pandemic and other adverse public health developments on the economy, 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 we own or 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 real estate, commercial and industrial, public finance, SBA, healthcare finance and franchise finance loan portfolios; competition with national, regional and community financial institutions; the loss of any key members of senior management; execution of pending and future acquisition, reorganization or disposition transactions, including without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings and other anticipated benefits from such transactions; the failure of any of the closing conditions in the definitive merger agreement with First Century Bancorp to be satisfied on a timely basis or at all; fluctuations in interest rates; 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, adjusted net interest income, adjusted net interest income – FTE, net interest margin – FTE, adjusted net interest margin, adjusted net interest margin – FTE, allowance for loan losses to loans, excluding PPP loans, adjusted total revenue, adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax provision, adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average shareholders’ equity, adjusted return on average tangible common equity and adjusted effective income tax rate 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,

 

2021

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

 
Net income

$

12,478

 

$

12,090

 

$

11,090

 

$

48,114

 

$

29,453

 

 
Per share and share information
Earnings per share - basic

$

1.26

 

$

1.22

 

$

1.12

 

$

4.85

 

$

2.99

 

Earnings per share - diluted

 

1.25

 

 

1.21

 

 

1.12

 

 

4.82

 

 

2.99

 

Dividends declared per share

 

0.06

 

 

0.06

 

 

0.06

 

 

0.24

 

 

0.24

 

Book value per common share

 

38.99

 

 

37.59

 

 

33.77

 

 

38.99

 

 

33.77

 

Tangible book value per common share 1

 

38.51

 

 

37.12

 

 

33.29

 

 

38.51

 

 

33.29

 

Common shares outstanding

 

9,754,455

 

 

9,854,153

 

 

9,800,569

 

 

9,754,455

 

 

9,800,569

 

Average common shares outstanding:
Basic

 

9,903,856

 

 

9,936,237

 

 

9,883,609

 

 

9,918,083

 

 

9,840,205

 

Diluted

 

9,989,951

 

 

9,988,102

 

 

9,914,022

 

 

9,976,261

 

 

9,842,425

 

Performance ratios
Return on average assets

 

1.19

%

 

1.12

%

 

1.02

%

 

1.14

%

 

0.69

%

Return on average shareholders' equity

 

13.14

%

 

13.10

%

 

13.64

%

 

13.44

%

 

9.39

%

Return on average tangible common equity 1

 

13.30

%

 

13.27

%

 

13.84

%

 

13.61

%

 

9.53

%

Net interest margin

 

2.30

%

 

2.00

%

 

1.78

%

 

2.11

%

 

1.55

%

Net interest margin - FTE 1,2

 

2.43

%

 

2.13

%

 

1.91

%

 

2.25

%

 

1.68

%

Capital ratios 3
Total shareholders' equity to assets

 

9.03

%

 

8.71

%

 

7.79

%

 

9.03

%

 

7.79

%

Tangible common equity to tangible assets 1

 

8.93

%

 

8.61

%

 

7.69

%

 

8.93

%

 

7.69

%

Tier 1 leverage ratio

 

9.22

%

 

8.86

%

 

7.95

%

 

9.22

%

 

7.95

%

Common equity tier 1 capital ratio

 

12.92

%

 

12.62

%

 

11.31

%

 

12.92

%

 

11.31

%

Tier 1 capital ratio

 

12.92

%

 

12.62

%

 

11.31

%

 

12.92

%

 

11.31

%

Total risk-based capital ratio

 

17.36

%

 

17.04

%

 

14.91

%

 

17.36

%

 

14.91

%

Asset quality
Nonperforming loans

$

7,401

 

$

7,851

 

$

10,183

 

$

7,401

 

$

10,183

 

Nonperforming assets

 

8,618

 

 

9,039

 

 

10,218

 

 

8,618

 

 

10,218

 

Nonperforming loans to loans

 

0.26

%

 

0.27

%

 

0.33

%

 

0.26

%

 

0.33

%

Nonperforming assets to total assets

 

0.20

%

 

0.21

%

 

0.24

%

 

0.20

%

 

0.24

%

Allowance for loan losses to:
Loans

 

0.96

%

 

0.95

%

 

0.96

%

 

0.96

%

 

0.96

%

Loans, excluding PPP loans 1

 

0.97

%

 

0.96

%

 

0.98

%

 

0.97

%

 

0.98

%

Nonperforming loans

 

376.2

%

 

356.6

%

 

289.5

%

 

376.2

%

 

289.5

%

Net (recoveries) charge-offs to average loans

 

(0.01

%)

 

0.01

%

 

0.04

%

 

0.09

%

 

0.06

%

Average balance sheet information
Loans

$

2,914,858

 

$

2,933,654

 

$

3,070,476

 

$

2,972,224

 

$

2,985,611

 

Total securities

 

677,580

 

 

713,342

 

 

582,425

 

 

629,095

 

 

626,022

 

Other earning assets

 

431,621

 

 

479,051

 

 

532,466

 

 

466,608

 

 

523,788

 

Total interest-earning assets

 

4,056,254

 

 

4,148,726

 

 

4,219,142

 

 

4,094,935

 

 

4,175,799

 

Total assets

 

4,177,578

 

 

4,265,189

 

 

4,316,207

 

 

4,205,926

 

 

4,263,798

 

Noninterest-bearing deposits

 

113,887

 

 

104,161

 

 

86,836

 

 

101,825

 

 

74,277

 

Interest-bearing deposits

 

3,032,435

 

 

3,137,728

 

 

3,258,269

 

 

3,098,706

 

 

3,224,657

 

Total deposits

 

3,146,322

 

 

3,241,889

 

 

3,345,105

 

 

3,200,531

 

 

3,298,934

 

Shareholders' equity

 

376,832

 

 

366,187

 

 

323,464

 

 

358,105

 

 

313,763

 

 
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, 2020)
Dollar amounts in thousands
 
 

December 31,

 

September 30,

 

December 31,

 

2021

 

 

 

2021

 

 

 

2020

 

 
Assets
Cash and due from banks

$

7,492

 

$

4,932

 

$

7,367

 

Interest-bearing deposits

 

435,468

 

 

402,583

 

 

412,439

 

Securities available-for-sale, at fair value

 

603,044

 

 

634,007

 

 

497,628

 

Securities held-to-maturity, at amortized cost

 

59,565

 

 

62,129

 

 

68,223

 

Loans held-for-sale

 

47,745

 

 

43,970

 

 

39,584

 

Loans

 

2,887,662

 

 

2,936,148

 

 

3,059,231

 

Allowance for loan losses

 

(27,841

)

 

(28,000

)

 

(29,484

)

Net loans

 

2,859,821

 

 

2,908,148

 

 

3,029,747

 

Accrued interest receivable

 

16,037

 

 

14,866

 

 

17,416

 

Federal Home Loan Bank of Indianapolis stock

 

25,650

 

 

25,650

 

 

25,650

 

Cash surrender value of bank-owned life insurance

 

38,900

 

 

38,660

 

 

37,952

 

Premises and equipment, net

 

59,842

 

 

52,700

 

 

37,590

 

Goodwill

 

4,687

 

 

4,687

 

 

4,687

 

Servicing asset

 

4,702

 

 

4,412

 

 

3,569

 

Other real estate owned

 

1,188

 

 

1,188

 

 

-

 

Accrued income and other assets

 

46,853

 

 

54,360

 

 

64,304

 

Total assets

$

4,210,994

 

$

4,252,292

 

$

4,246,156

 

 
Liabilities
Noninterest-bearing deposits

$

117,531

 

$

110,117

 

$

96,753

 

Interest-bearing deposits

 

3,061,428

 

 

3,114,478

 

 

3,174,132

 

Total deposits

 

3,178,959

 

 

3,224,595

 

 

3,270,885

 

Advances from Federal Home Loan Bank

 

514,922

 

 

514,920

 

 

514,916

 

Subordinated debt

 

104,231

 

 

104,156

 

 

79,603

 

Accrued interest payable

 

2,018

 

 

1,568

 

 

1,439

 

Accrued expenses and other liabilities

 

30,526

 

 

36,611

 

 

48,369

 

Total liabilities

 

3,830,656

 

 

3,881,850

 

 

3,915,212

 

Shareholders' equity
Voting common stock

 

218,946

 

 

223,059

 

 

221,408

 

Retained earnings

 

172,431

 

 

160,551

 

 

126,732

 

Accumulated other comprehensive loss

 

(11,039

)

 

(13,168

)

 

(17,196

)

Total shareholders' equity

 

380,338

 

 

370,442

 

 

330,944

 

Total liabilities and shareholders' equity

$

4,210,994

 

$

4,252,292

 

$

4,246,156

 

First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited, except for the twelve months ended December 31, 2020)
Dollar amounts in thousands, except per share data
 
 
Three Months Ended Twelve Months Ended
 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

 

2021

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

 
Interest income
Loans

$

31,621

 

$

30,126

 

$

30,930

 

$

123,467

 

$

120,628

 

Securities - taxable

 

1,973

 

 

2,297

 

 

1,988

 

 

7,970

 

 

11,123

 

Securities - non-taxable

 

236

 

 

241

 

 

318

 

 

1,017

 

 

1,728

 

Other earning assets

 

362

 

 

370

 

 

407

 

 

1,429

 

 

3,380

 

Total interest income

 

34,192

 

 

33,034

 

 

33,643

 

 

133,883

 

 

136,859

 

Interest expense
Deposits

 

6,399

 

 

7,090

 

 

10,577

 

 

29,822

 

 

55,976

 

Other borrowed funds

 

4,288

 

 

5,025

 

 

4,201

 

 

17,505

 

 

16,342

 

Total interest expense

 

10,687

 

 

12,115

 

 

14,778

 

 

47,327

 

 

72,318

 

Net interest income

 

23,505

 

 

20,919

 

 

18,865

 

 

86,556

 

 

64,541

 

(Benefit) provision for loan losses

 

(238

)

 

(29

)

 

2,864

 

 

1,030

 

 

9,325

 

Net interest income after (benefit) provision
for loan losses

 

23,743

 

 

20,948

 

 

16,001

 

 

85,526

 

 

55,216

 

Noninterest income
Service charges and fees

 

292

 

 

276

 

 

206

 

 

1,114

 

 

824

 

Loan servicing revenue

 

544

 

 

511

 

 

379

 

 

1,934

 

 

1,159

 

Loan servicing asset revaluation

 

(400

)

 

(274

)

 

(60

)

 

(1,069

)

 

(432

)

Mortgage banking activities

 

2,776

 

 

3,850

 

 

7,987

 

 

15,050

 

 

24,693

 

Gain on sale of loans

 

4,137

 

 

2,719

 

 

3,702

 

 

11,598

 

 

8,298

 

Gain on sale of securities

 

-

 

 

-

 

 

-

 

 

-

 

 

139

 

Gain on sale of premises and equipment

 

-

 

 

-

 

 

-

 

 

2,523

 

 

-

 

Other

 

345

 

 

731

 

 

443

 

 

1,694

 

 

1,655

 

Total noninterest income

 

7,694

 

 

7,813

 

 

12,657

 

 

32,844

 

 

36,336

 

Noninterest expense
Salaries and employee benefits

 

10,183

 

 

9,316

 

 

9,135

 

 

38,223

 

 

34,231

 

Marketing, advertising and promotion

 

896

 

 

813

 

 

443

 

 

3,261

 

 

1,654

 

Consulting and professional fees

 

1,262

 

 

728

 

 

788

 

 

4,054

 

 

3,511

 

Data processing

 

425

 

 

380

 

 

426

 

 

1,649

 

 

1,528

 

Loan expenses

 

654

 

 

383

 

 

630

 

 

2,112

 

 

2,036

 

Premises and equipment

 

2,188

 

 

1,687

 

 

1,601

 

 

7,063

 

 

6,396

 

Deposit insurance premium

 

283

 

 

230

 

 

450

 

 

1,213

 

 

1,810

 

Write-down of other real estate owned

 

-

 

 

-

 

 

-

 

 

-

 

 

2,065

 

Other

 

1,064

 

 

914

 

 

1,040

 

 

4,223

 

 

4,423

 

Total noninterest expense

 

16,955

 

 

14,451

 

 

14,513

 

 

61,798

 

 

57,654

 

Income before income taxes

 

14,482

 

 

14,310

 

 

14,145

 

 

56,572

 

 

33,898

 

Income tax provision

 

2,004

 

 

2,220

 

 

3,055

 

 

8,458

 

 

4,445

 

Net income

$

12,478

 

$

12,090

 

$

11,090

 

$

48,114

 

$

29,453

 

 
Per common share data
Earnings per share - basic

$

1.26

 

$

1.22

 

$

1.12

 

$

4.85

 

$

2.99

 

Earnings per share - diluted

$

1.25

 

$

1.21

 

$

1.12

 

$

4.82

 

$

2.99

 

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, 2021

 

September 30, 2021

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

2,947,053

 

$

31,621

4.26

%

$

2,956,333

 

$

30,126

4.04

%

$

3,104,251

 

$

30,930

3.96

%

Securities - taxable

 

595,024

 

 

1,973

1.32

%

 

629,101

 

 

2,297

1.45

%

 

492,573

 

$

1,988

1.61

%

Securities - non-taxable

 

82,556

 

 

236

1.13

%

 

84,241

 

 

241

1.14

%

 

89,852

 

$

318

1.41

%

Other earning assets

 

431,621

 

 

362

0.33

%

 

479,051

 

 

370

0.31

%

 

532,466

 

$

407

0.30

%

Total interest-earning assets

 

4,056,254

 

 

34,192

3.34

%

 

4,148,726

 

 

33,034

3.16

%

 

4,219,142

 

 

33,643

3.17

%

 
Allowance for loan losses

 

(27,946

)

 

(28,127

)

 

(27,805

)

Noninterest-earning assets

 

149,270

 

 

144,590

 

 

124,870

 

Total assets

$

4,177,578

 

$

4,265,189

 

$

4,316,207

 

 
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits

$

210,283

 

$

158

0.30

%

$

198,637

 

$

150

0.30

%

$

165,815

 

$

156

0.37

%

Savings accounts

 

63,575

 

 

58

0.36

%

 

62,195

 

 

56

0.36

%

 

49,209

 

 

54

0.44

%

Money market accounts

 

1,453,447

 

 

1,507

0.41

%

 

1,498,218

 

 

1,532

0.41

%

 

1,369,543

 

 

1,655

0.48

%

Certificates and brokered deposits

 

1,305,130

 

 

4,676

1.42

%

 

1,378,678

 

 

5,352

1.54

%

 

1,673,702

 

 

8,712

2.07

%

Total interest-bearing deposits

 

3,032,435

 

 

6,399

0.84

%

 

3,137,728

 

 

7,090

0.90

%

 

3,258,269

 

 

10,577

1.29

%

Other borrowed funds

 

619,115

 

 

4,288

2.75

%

 

611,975

 

 

5,025

3.26

%

 

591,806

 

 

4,201

2.82

%

Total interest-bearing liabilities

 

3,651,550

 

 

10,687

1.16

%

 

3,749,703

 

 

12,115

1.28

%

 

3,850,075

 

 

14,778

1.53

%

 
Noninterest-bearing deposits

 

113,887

 

 

104,161

 

 

86,836

 

Other noninterest-bearing liabilities

 

35,309

 

 

45,138

 

 

55,832

 

Total liabilities

 

3,800,746

 

 

3,899,002

 

 

3,992,743

 

 
Shareholders' equity

 

376,832

 

 

366,187

 

 

323,464

 

Total liabilities and shareholders' equity

$

4,177,578

 

$

4,265,189

 

$

4,316,207

 

 
Net interest income

$

23,505

$

20,919

$

18,865

 
Interest rate spread

2.18

%

1.88

%

1.64

%

 
Net interest margin

2.30

%

2.00

%

1.78

%

 
Net interest margin - FTE 2,3

2.43

%

2.13

%

1.91

%

 
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, 2021 December 31, 2020
 
Average Interest / Yield / Average Interest / Yield /
Balance Dividends Cost Balance Dividends Cost
 
Assets
Interest-earning assets
Loans, including loans held-for-sale 1

$

2,999,232

 

$

123,467

4.12

%

$

3,025,989

 

$

120,628

3.99

%

Securities - taxable

 

544,613

 

 

7,970

1.46

%

 

530,849

 

 

11,123

2.10

%

Securities - non-taxable

 

84,482

 

 

1,017

1.20

%

 

95,173

 

 

1,728

1.82

%

Other earning assets

 

466,608

 

 

1,429

0.31

%

 

523,788

 

 

3,380

0.65

%

Total interest-earning assets

 

4,094,935

 

 

133,883

3.27

%

 

4,175,799

 

 

136,859

3.28

%

 
Allowance for loan losses

 

(29,068

)

 

(24,660

)

Noninterest-earning assets

 

140,059

 

 

112,659

 

Total assets

$

4,205,926

 

$

4,263,798

 

 
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits

$

195,699

 

$

583

0.30

%

$

145,207

 

$

840

0.58

%

Savings accounts

 

56,967

 

 

203

0.36

%

 

40,593

 

 

303

0.75

%

Money market accounts

 

1,434,829

 

 

5,892

0.41

%

 

1,156,084

 

 

11,381

0.98

%

Certificates and brokered deposits

 

1,411,211

 

 

23,144

1.64

%

 

1,882,773

 

 

43,452

2.31

%

Total interest-bearing deposits

 

3,098,706

 

 

29,822

0.96

%

 

3,224,657

 

 

55,976

1.74

%

Other borrowed funds

 

600,035

 

 

17,505

2.92

%

 

586,372

 

 

16,342

2.79

%

Total interest-bearing liabilities

 

3,698,741

 

 

47,327

1.28

%

 

3,811,029

 

 

72,318

1.90

%

 
Noninterest-bearing deposits

 

101,825

 

 

74,277

 

Other noninterest-bearing liabilities

 

47,255

 

 

64,729

 

Total liabilities

 

3,847,821

 

 

3,950,035

 

 
Shareholders' equity

 

358,105

 

 

313,763

 

Total liabilities and shareholders' equity

$

4,205,926

 

$

4,263,798

 

 
Net interest income

$

86,556

$

64,541

 
Interest rate spread

1.99

%

1.38

%

 
Net interest margin

2.11

%

1.55

%

 
Net interest margin - FTE 2,3

2.25

%

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
Loans and Deposits (unaudited)
Dollar amounts in thousands
 
 
December 31, 2021 September 30, 2021 December 31, 2020
 
Amount Percent Amount Percent Amount Percent
 
Commercial loans
Commercial and industrial

$

96,008

3.3

%

$

107,142

3.6

%

$

75,387

2.5

%

Owner-occupied commercial real estate

 

66,732

2.3

%

 

84,819

2.9

%

 

89,785

2.9

%

Investor commercial real estate

 

28,019

1.0

%

 

28,505

1.0

%

 

13,902

0.5

%

Construction

 

136,619

4.7

%

 

115,414

3.9

%

 

110,385

3.6

%

Single tenant lease financing

 

865,854

30.0

%

 

921,998

31.5

%

 

950,172

31.1

%

Public finance

 

592,665

20.5

%

 

601,738

20.5

%

 

622,257

20.3

%

Healthcare finance

 

387,852

13.4

%

 

417,388

14.2

%

 

528,154

17.3

%

Small business lending

 

108,666

3.8

%

 

102,889

3.5

%

 

125,589

4.1

%

Franchise finance

 

81,448

2.8

%

 

25,598

0.9

%

 

-

-

 

Total commercial loans

 

2,363,863

81.8

%

 

2,405,491

82.0

%

 

2,515,631

82.3

%

 
Consumer loans
Residential mortgage

 

186,770

6.5

%

 

188,750

6.4

%

 

186,787

6.1

%

Home equity

 

17,665

0.6

%

 

17,960

0.6

%

 

19,857

0.6

%

Trailers

 

146,267

5.1

%

 

147,806

5.0

%

 

144,493

4.7

%

Recreational vehicles

 

90,654

3.1

%

 

90,192

3.1

%

 

94,405

3.1

%

Other consumer loans

 

28,557

1.0

%

 

30,398

1.0

%

 

36,794

1.2

%

Total consumer loans

 

469,913

16.3

%

 

475,106

16.1

%

 

482,336

15.7

%

 
Net deferred loan fees, premiums, discounts and other 1

 

53,886

1.9

%

 

55,551

1.9

%

 

61,264

2.0

%

 
Total loans

$

2,887,662

100.0

%

$

2,936,148

100.0

%

$

3,059,231

100.0

%

 
 
December 31, 2021 September 30, 2021 December 31, 2020
 
Amount Percent Amount Percent Amount Percent
 
Deposits
Noninterest-bearing deposits

$

117,532

3.7

%

$

110,117

3.4

%

$

96,753

3.0

%

Interest-bearing demand deposits

 

247,966

7.8

%

 

201,557

6.3

%

 

188,645

5.8

%

Savings accounts

 

59,998

1.9

%

 

66,762

2.1

%

 

43,200

1.3

%

Money market accounts

 

1,483,936

46.7

%

 

1,479,358

45.8

%

 

1,350,566

41.3

%

Certificates of deposits

 

970,107

30.5

%

 

1,043,898

32.4

%

 

1,289,319

39.4

%

Brokered deposits

 

299,420

9.4

%

 

322,903

10.0

%

 

302,402

9.2

%

 

Total deposits

$

3,178,959

100.0

%

$

3,224,595

100.0

%

$

3,270,885

100.0

%

 
1 Includes carrying value adjustments of $37.5 million, $38.9 million and $42.7 million related to terminated interest rate swaps associated with public finance loans as of December 31, 2021, September 30, 2021 and December 31, 2020, 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,

 

2021

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

 
Total equity - GAAP

$

380,338

 

$

370,442

 

$

330,944

 

$

380,338

 

$

330,944

 

Adjustments:
Goodwill

 

(4,687

)

 

(4,687

)

 

(4,687

)

 

(4,687

)

 

(4,687

)

Tangible common equity

$

375,651

 

$

365,755

 

$

326,257

 

$

375,651

 

$

326,257

 

 
Total assets - GAAP

$

4,210,994

 

$

4,252,292

 

$

4,246,156

 

$

4,210,994

 

$

4,246,156

 

Adjustments:
Goodwill

 

(4,687

)

 

(4,687

)

 

(4,687

)

 

(4,687

)

 

(4,687

)

Tangible assets

$

4,206,307

 

$

4,247,605

 

$

4,241,469

 

$

4,206,307

 

$

4,241,469

 

 
Common shares outstanding

 

9,754,455

 

 

9,854,153

 

 

9,800,569

 

 

9,754,455

 

 

9,800,569

 

 
Book value per common share

$

38.99

 

$

37.59

 

$

33.77

 

$

38.99

 

$

33.77

 

Effect of goodwill

 

(0.48

)

 

(0.47

)

 

(0.48

)

 

(0.48

)

 

(0.48

)

Tangible book value per common share

$

38.51

 

$

37.12

 

$

33.29

 

$

38.51

 

$

33.29

 

 
Total shareholders' equity to assets

 

9.03

%

 

8.71

%

 

7.79

%

 

9.03

%

 

7.79

%

Effect of goodwill

 

(0.10

%)

 

(0.10

%)

 

(0.10

%)

 

(0.10

%)

 

(0.10

%)

Tangible common equity to tangible assets

 

8.93

%

 

8.61

%

 

7.69

%

 

8.93

%

 

7.69

%

 
Total average equity - GAAP

$

376,832

 

$

366,187

 

$

323,464

 

$

358,105

 

$

313,763

 

Adjustments:
Average goodwill

 

(4,687

)

 

(4,687

)

 

(4,687

)

 

(4,687

)

 

(4,687

)

Average tangible common equity

$

372,145

 

$

361,500

 

$

318,777

 

$

353,418

 

$

309,076

 

 
Return on average shareholders' equity

 

13.14

%

 

13.10

%

 

13.64

%

 

13.44

%

 

9.39

%

Effect of goodwill

 

0.16

%

 

0.17

%

 

0.20

%

 

0.17

%

 

0.14

%

Return on average tangible common equity

 

13.30

%

 

13.27

%

 

13.84

%

 

13.61

%

 

9.53

%

 
Total interest income

$

34,192

 

$

33,034

 

$

33,643

 

$

133,883

 

$

136,859

 

Adjustments:
Fully-taxable equivalent adjustments 1

 

1,348

 

 

1,356

 

 

1,400

 

 

5,453

 

 

5,796

 

Total interest income - FTE

$

35,540

 

$

34,390

 

$

35,043

 

$

139,336

 

$

142,655

 

 
Net interest income

$

23,505

 

$

20,919

 

$

18,865

 

$

86,556

 

$

64,541

 

Adjustments:
Fully-taxable equivalent adjustments 1

 

1,348

 

 

1,356

 

 

1,400

 

 

5,453

 

 

5,796

 

Net interest income - FTE

$

24,853

 

$

22,275

 

$

20,265

 

$

92,009

 

$

70,337

 

 
Net interest income

$

23,505

 

$

20,919

 

$

18,865

 

$

86,556

 

$

64,541

 

Adjustments:
Subordinated debt redemption cost

 

-

 

 

810

 

 

-

 

 

810

 

 

-

 

Adjusted net interest income

$

23,505

 

$

21,729

 

$

18,865

 

$

87,366

 

$

64,541

 

 
Net interest income

$

23,505

 

$

20,919

 

$

18,865

 

$

86,556

 

$

64,541

 

Adjustments:
Fully-taxable equivalent adjustments 1

 

1,348

 

 

1,356

 

 

1,400

 

 

5,453

 

 

5,796

 

Subordinated debt redemption cost

 

-

 

 

810

 

 

-

 

 

810

 

 

-

 

Adjusted net interest income - FTE

$

24,853

 

$

23,085

 

$

20,265

 

$

92,819

 

$

70,337

 

 
Net interest margin

 

2.30

%

 

2.00

%

 

1.78

%

 

2.11

%

 

1.55

%

Effect of fully-taxable equivalent adjustments 1

 

0.13

%

 

0.13

%

 

0.13

%

 

0.14

%

 

0.13

%

Net interest margin - FTE

 

2.43

%

 

2.13

%

 

1.91

%

 

2.25

%

 

1.68

%

 
Net interest margin

 

2.30

%

 

2.00

%

 

1.78

%

 

2.11

%

 

1.55

%

Effect of subordinated debt redemption cost

 

0.00

%

 

0.08

%

 

0.00

%

 

0.02

%

 

0.00

%

Adjusted net interest margin

 

2.30

%

 

2.08

%

 

1.78

%

 

2.13

%

 

1.55

%

 
Net interest margin

 

2.30

%

 

2.00

%

 

1.78

%

 

2.11

%

 

1.55

%

Effect of fully-taxable equivalent adjustments 1

 

0.13

%

 

0.13

%

 

0.13

%

 

0.14

%

 

0.13

%

Effect of subordinated debt redemption cost

 

0.00

%

 

0.08

%

 

0.00

%

 

0.02

%

 

0.00

%

Adjusted net interest margin - FTE

 

2.43

%

 

2.21

%

 

1.91

%

 

2.27

%

 

1.68

%

 
Allowance for loan losses

$

27,841

 

$

28,000

 

$

29,484

 

$

27,841

 

$

29,484

 

 
Loans

$

2,887,662

 

$

2,936,148

 

$

3,059,231

 

$

2,887,662

 

$

3,059,231

 

Adjustments:
PPP loans

 

(3,152

)

 

(14,981

)

 

(50,554

)

 

(3,152

)

 

(50,554

)

Loans, excluding PPP loans

$

2,884,510

 

$

2,921,167

 

$

3,008,677

 

$

2,884,510

 

$

3,008,677

 

 
Allowance for loan losses to loans

 

0.96

%

 

0.95

%

 

0.96

%

 

0.96

%

 

0.96

%

Effect of PPP loans

 

0.01

%

 

0.01

%

 

0.02

%

 

0.01

%

 

0.02

%

Allowance for loan losses to loans, excluding PPP loans

 

0.97

%

 

0.96

%

 

0.98

%

 

0.97

%

 

0.98

%

 
 
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,

 

2021

 

 

 

2021

 

 

2020

 

 

2021

 

 

 

2020

 
Total revenue - GAAP

$

31,199

 

$

28,732

$

31,522

$

119,400

 

$

100,877

Adjustments:
Gain on sale of premises and equipment

 

-

 

 

-

 

-

 

(2,523

)

 

-

Subordinated debt redemption cost

 

-

 

 

810

 

-

 

810

 

 

-

Adjusted total revenue

$

31,199

 

$

29,542

$

31,522

$

117,687

 

$

100,877

 
Noninterest income - GAAP

$

7,694

 

$

7,813

$

12,657

$

32,844

 

$

36,336

Adjustments:
Gain on sale of premises and equipment

 

-

 

 

-

 

-

 

(2,523

)

 

-

Adjusted noninterest income

$

7,694

 

$

7,813

$

12,657

$

30,321

 

$

36,336

 
Noninterest expense - GAAP

$

16,955

 

$

14,451

$

14,513

$

61,798

 

$

57,654

Adjustments:
Acquisition-related expenses

 

(163

)

 

-

 

-

 

(163

)

 

-

IT termination fee

 

(475

)

 

-

 

-

 

(475

)

 

-

Adjusted noninterest expense

$

16,317

 

$

14,451

$

14,513

$

61,160

 

$

57,654

 
Income before income taxes - GAAP

$

14,482

 

$

14,310

$

14,145

$

56,572

 

$

33,898

Adjustments:
Write-down of other real estate owned

 

-

 

 

-

 

-

 

-

 

 

2,065

Gain on sale of premises and equipment

 

-

 

 

-

 

-

 

(2,523

)

 

-

Subordinated debt redemption cost

 

-

 

 

810

 

-

 

810

 

 

-

Acquisition-related expenses

 

163

 

 

-

 

-

 

163

 

 

-

IT termination fee

 

475

 

 

-

 

-

 

475

 

 

-

Adjusted income before income taxes

$

15,120

 

$

15,120

$

14,145

$

55,497

 

$

35,963

 
Income tax provision - GAAP

$

2,004

 

$

2,220

$

3,055

$

8,458

 

$

4,445

Adjustments:
Write-down of other real estate owned

 

-

 

 

-

 

-

 

-

 

 

434

Gain on sale of premises and equipment

 

-

 

 

-

 

-

 

(530

)

 

-

Subordinated debt redemption cost

 

-

 

 

170

 

-

 

170

 

 

-

Acquisition-related expenses

 

34

 

 

-

 

-

 

34

 

 

-

IT termination fee

 

100

 

 

-

 

-

 

100

 

 

-

Adjusted income tax provision

$

2,138

 

$

2,390

$

3,055

$

8,232

 

$

4,879

 
Net income - GAAP

$

12,478

 

$

12,090

$

11,090

$

48,114

 

$

29,453

Adjustments:
Write-down of other real estate owned

 

-

 

 

-

 

-

 

-

 

 

1,631

Gain on sale of premises and equipment

 

-

 

 

-

 

-

 

(1,993

)

 

-

Subordinated debt redemption cost

 

-

 

 

640

 

-

 

640

 

 

-

Acquisition-related expenses

 

129

 

 

-

 

-

 

129

 

 

-

IT termination fee

 

375

 

 

-

 

-

 

375

 

 

-

Adjusted net income

$

12,982

 

$

12,730

$

11,090

$

47,265

 

$

31,084

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,

 

2021

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

 
Diluted average common shares outstanding

 

9,989,951

 

 

9,988,102

 

 

9,914,022

 

 

9,976,261

 

 

9,842,425

 

 
Diluted earnings per share - GAAP

$

1.25

 

$

1.21

 

$

1.12

 

$

4.82

 

$

2.99

 

Adjustments:
Effect of write-down of other real estate owned

 

-

 

 

-

 

 

-

 

 

-

 

 

0.17

 

Effect of gain on sale of premises and equipment

 

-

 

 

-

 

 

-

 

 

(0.19

)

 

-

 

Effect of subordinated debt redemption cost

 

-

 

 

0.06

 

 

-

 

 

0.06

 

 

-

 

Effect of acquisition-related expenses

 

0.01

 

 

-

 

 

-

 

 

0.01

 

 

-

 

Effect of IT termination fee

 

0.04

 

 

-

 

 

-

 

 

0.04

 

 

-

 

Adjusted diluted earnings per share

$

1.30

 

$

1.27

 

$

1.12

 

$

4.74

 

$

3.16

 

 
Return on average assets

 

1.19

%

 

1.12

%

 

1.02

%

 

1.14

%

 

0.69

%

Effect of write-down of other real estate owned

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

 

0.04

%

Effect of gain on sale of premises and equipment

 

0.00

%

 

0.00

%

 

0.00

%

 

(0.05

%)

 

0.00

%

Effect of subordinated debt redemption cost

 

0.00

%

 

0.06

%

 

0.00

%

 

0.02

%

 

0.00

%

Effect of acquisition-related expenses

 

0.01

%

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

Effect of IT termination fee

 

0.04

%

 

0.00

%

 

0.00

%

 

0.01

%

 

0.00

%

Adjusted return on average assets

 

1.24

%

 

1.18

%

 

1.02

%

 

1.12

%

 

0.73

%

 
Return on average shareholders' equity

 

13.14

%

 

13.10

%

 

13.64

%

 

13.44

%

 

9.39

%

Effect of write-down of other real estate owned

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

 

0.52

%

Effect of gain on sale of premises and equipment

 

0.00

%

 

0.00

%

 

0.00

%

 

(0.56

%)

 

0.00

%

Effect of subordinated debt redemption cost

 

0.00

%

 

0.69

%

 

0.00

%

 

0.18

%

 

0.00

%

Effect of acquisition-related expenses

 

0.14

%

 

0.00

%

 

0.00

%

 

0.04

%

 

0.00

%

Effect of IT termination fee

 

0.39

%

 

0.00

%

 

0.00

%

 

0.10

%

 

0.00

%

Adjusted return on average shareholders' equity

 

13.67

%

 

13.79

%

 

13.64

%

 

13.20

%

 

9.91

%

 
Return on average tangible common equity

 

13.30

%

 

13.27

%

 

13.84

%

 

13.61

%

 

9.53

%

Effect of write-down of other real estate owned

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

 

0.53

%

Effect of gain on sale of premises and equipment

 

0.00

%

 

0.00

%

 

0.00

%

 

(0.56

%)

 

0.00

%

Effect of subordinated debt redemption cost

 

0.00

%

 

0.70

%

 

0.00

%

 

0.18

%

 

0.00

%

Effect of acquisition-related expenses

 

0.14

%

 

0.00

%

 

0.00

%

 

0.04

%

 

0.00

%

Effect of IT termination fee

 

0.40

%

 

0.00

%

 

0.00

%

 

0.10

%

 

0.00

%

Adjusted return on average tangible common equity

 

13.84

%

 

13.97

%

 

13.84

%

 

13.37

%

 

10.06

%

 
Effective income tax rate

 

13.8

%

 

15.5

%

 

21.6

%

 

15.0

%

 

13.1

%

Effect of write-down of other real estate owned

 

0.0

%

 

0.0

%

 

0.0

%

 

0.0

%

 

0.5

%

Effect of gain on sale of premises and equipment

 

0.0

%

 

0.0

%

 

0.0

%

 

(0.4

%)

 

0.0

%

Effect of subordinated debt redemption cost

 

0.0

%

 

0.3

%

 

0.0

%

 

0.1

%

 

0.0

%

Effect of acquisition-related expenses

 

0.1

%

 

0.0

%

 

0.0

%

 

0.0

%

 

0.0

%

Effect of IT termination fee

 

0.2

%

 

0.0

%

 

0.0

%

 

0.1

%

 

0.0

%

Adjusted effective income tax rate

 

14.1

%

 

15.8

%

 

21.6

%

 

14.8

%

 

13.6

%

 

Contacts

Investors/Analysts

Paula Deemer

Director of Corporate Administration

(317) 428-4628

investors@firstib.com

Media

Nicole Lorch

President & Chief Operating Officer

(317) 532-7906

nlorch@firstib.com

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