INBK 8-K

First Internet Bancorp (INBK)

8-K 2021-07-21 For: 2021-07-21

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Added on April 06, 2026

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	As of June 30, 2021
	Company	Bank

Total shareholders’ equity to assets	8.53%	9.45%
Tangible common equity to tangible assets 1	8.43%	9.35%
Tier 1 leverage ratio 2	8.70%	9.61%
Common equity tier 1 capital ratio 2	12.23%	13.54%
Tier 1 capital ratio 2	12.23%	13.54%
Total risk-based capital ratio 2	15.51%	14.48%

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.


Contact Information:
Investors/Analysts						Media
Paula Deemer						Nicole Lorch
Director of Corporate Administration						President & Chief Operating Officer
(317) 428-4628						(317) 532-7906
[email protected]						[email protected]


First Internet Bancorp
Summary Financial Information (unaudited)
Dollar amounts in thousands, except per share data
	Three Months Ended									Six Months Ended
	June 30, 2021			March 31, 2021			June 30, 2020			June 30, 2021			June 30, 2020
Net income	$	13,096		$	10,450		$	3,932		$	23,546		$	9,951

Per share and share information
Earnings per share - basic	$	1.32		$	1.06		$	0.40		$	2.37		$	1.02
Earnings per share - diluted	1.31			1.05			0.40			2.36			1.02
Dividends declared per share	0.06			0.06			0.06			0.12			0.12
Book value per common share	36.39			35.07			31.40			36.39			31.40
Tangible book value per common share 1	35.92			34.60			30.92			35.92			30.92
Common shares outstanding	9,854,153			9,823,831			9,799,047			9,854,153			9,799,047
Average common shares outstanding:
Basic	9,932,761			9,899,230			9,768,227			9,916,087			9,798,528
Diluted	9,981,422			9,963,036			9,768,227			9,970,147			9,802,427
Performance ratios
Return on average assets	1.25		%	1.02		%	0.37		%	1.13		%	0.47		%
Return on average shareholders' equity	14.88		%	12.61		%	5.15		%	13.78		%	6.48		%
Return on average tangible common equity 1	15.09		%	12.79		%	5.23		%	13.97		%	6.58		%
Net interest margin	2.11		%	2.04		%	1.37		%	2.08		%	1.43		%
Net interest margin - FTE 1,2	2.25		%	2.18		%	1.50		%	2.21		%	1.58		%
Capital ratios 3
Total shareholders' equity to assets	8.53		%	8.23		%	7.12		%	8.53		%	7.12		%
Tangible common equity to tangible assets 1	8.43		%	8.12		%	7.01		%	8.43		%	7.01		%
Tier 1 leverage ratio	8.70		%	8.46		%	7.49		%	8.70		%	7.49		%
Common equity tier 1 capital ratio	12.23		%	11.81		%	10.94		%	12.23		%	10.94		%
Tier 1 capital ratio	12.23		%	11.81		%	10.94		%	12.23		%	10.94		%
Total risk-based capital ratio	15.51		%	15.18		%	14.13		%	15.51		%	14.13		%
Asset quality
Nonperforming loans	$	9,264		$	14,649		$	8,195		$	9,264		$	8,195
Nonperforming assets	10,564			14,678			10,304			10,564			10,304
Nonperforming loans to loans	0.31		%	0.48		%	0.28		%	0.31		%	0.28		%
Nonperforming assets to total assets	0.25		%	0.35		%	0.24		%	0.25		%	0.24		%
Allowance for loan losses to:
Loans	0.95		%	1.00		%	0.82		%	0.95		%	0.82		%
Loans, excluding PPP loans 1	0.96		%	1.02		%	0.84		%	0.96		%	0.84		%
Nonperforming loans	303.0		%	209.2		%	298.5		%	303.0		%	298.5		%
Net charge-offs to average loans	0.35		%	0.02		%	0.12		%	0.18		%	0.09		%
Average balance sheet information
Loans	$	2,994,356		$	3,047,915		$	2,943,165		$	3,020,987		$	2,937,136
Total securities	574,684			548,429			657,622			561,630			644,251
Other earning assets	509,735			446,045			594,296			478,065			505,111
Total interest-earning assets	4,100,749			4,073,604			4,241,690			4,087,255			4,133,245
Total assets	4,206,966			4,173,273			4,330,174			4,190,212			4,215,053
Noninterest-bearing deposits	98,207			90,764			73,758			94,506			67,107
Interest-bearing deposits	3,109,165			3,115,987			3,270,720			3,112,557			3,179,882
Total deposits	3,207,372			3,206,751			3,344,478			3,207,063			3,246,989
Shareholders' equity	352,894			335,968			306,868			344,478			308,937


First Internet Bancorp
Condensed Consolidated Balance Sheets (unaudited)
Dollar amounts in thousands
	June 30, 2021		March 31, 2021		June 30, 2020
Assets
Cash and due from banks	$	4,347	$	4,440	$	7,016
Interest-bearing deposits	324,450		411,765		491,603
Securities available-for-sale, at fair value	663,519		462,376		589,017
Securities held-to-maturity, at amortized cost	65,659		68,190		68,295
Loans held-for-sale	27,587		30,235		38,813
Loans	2,957,608		3,058,694		2,973,674
Allowance for loan losses	(28,066)		(30,642)		(24,465)
Net loans	2,929,542		3,028,052		2,949,209
Accrued interest receivable	16,345		16,433		21,093
Federal Home Loan Bank of Indianapolis stock	25,650		25,650		25,650
Cash surrender value of bank-owned life insurance	38,421		38,185		37,474
Premises and equipment, net	44,249		42,381		23,939
Goodwill	4,687		4,687		4,687
Servicing asset	4,120		3,817		2,522
Other real estate owned	1,300		—		2,065
Accrued income and other assets	54,766		52,359		63,217
Total assets	$	4,204,642	$	4,188,570	$	4,324,600

Liabilities
Noninterest-bearing deposits	$	113,996	$	100,700	$	82,864
Interest-bearing deposits	3,092,151		3,116,903		3,297,925
Total deposits	3,206,147		3,217,603		3,380,789
Advances from Federal Home Loan Bank	514,919		514,917		514,913
Subordinated debt	69,871		69,794		69,681
Accrued interest payable	1,132		1,418		1,073
Accrued expenses and other liabilities	53,932		40,272		50,433
Total liabilities	3,846,001		3,844,004		4,016,889
Shareholders' equity
Voting common stock	222,486		221,911		220,418
Retained earnings	149,066		136,575		108,431
Accumulated other comprehensive loss	(12,911)		(13,920)		(21,138)
Total shareholders' equity	358,641		344,566		307,711
Total liabilities and shareholders' equity	$	4,204,642	$	4,188,570	$	4,324,600


First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited)
Dollar amounts in thousands, except per share data
	Three Months Ended						Six Months Ended
	June 30, 2021		March 31, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Interest income
Loans	$	30,835	$	30,885	$	29,730	$	61,720	$	60,138
Securities - taxable	1,921		1,779		3,276		3,700		6,895
Securities - non-taxable	259		281		457		540		1,029
Other earning assets	362		335		759		697		2,404
Total interest income	33,377		33,280		34,222		66,657		70,466
Interest expense
Deposits	7,705		8,628		15,763		16,333		32,971
Other borrowed funds	4,065		4,127		4,033		8,192		8,051
Total interest expense	11,770		12,755		19,796		24,525		41,022
Net interest income	21,607		20,525		14,426		42,132		29,444
Provision for loan losses	21		1,276		2,491		1,297		3,952
Net interest income after provision for loan losses	21,586		19,249		11,935		40,835		25,492
Noninterest income
Service charges and fees	280		266		182		546		394
Loan servicing revenue	457		422		255		879		506
Loan servicing asset revaluation	(240)		(155)		(90)		(395)		(269)
Mortgage banking activities	2,674		5,750		3,408		8,424		7,076
Gain on sale of loans	3,019		1,723		762		4,742		2,563
Gain on sale of securities	—		—		—		—		41
Gain on sale of premises and equipment	2,523		—		—		2,523		—
Other	249		369		456		618		873
Total noninterest income	8,962		8,375		4,973		17,337		11,184
Noninterest expense
Salaries and employee benefits	9,232		9,492		7,789		18,724		15,563
Marketing, advertising and promotion	872		680		411		1,552		786
Consulting and professional fees	1,078		986		932		2,064		2,109
Data processing	382		462		339		844		714
Loan expenses	541		534		399		1,075		998
Premises and equipment	1,587		1,601		1,602		3,188		3,227
Deposit insurance premium	275		425		435		700		920

Other	1,108		1,137		1,337		2,245		2,413
Total noninterest expense	15,075		15,317		13,244		30,392		26,730
Income before income taxes	15,473		12,307		3,664		27,780		9,946
Income tax provision (benefit)	2,377		1,857		(268)		4,234		(5)
Net income	$	13,096	$	10,450	$	3,932	$	23,546	$	9,951

Per common share data
Earnings per share - basic	$	1.32	$	1.06	$	0.40	$	2.37	$	1.02
Earnings per share - diluted	$	1.31	$	1.05	$	0.40	$	2.36	$	1.02
Dividends declared per share	$	0.06	$	0.06	$	0.06	$	0.12	$	0.12


First Internet Bancorp
Average Balances and Rates (unaudited)
Dollar amounts in thousands
	Three Months Ended
	June 30, 2021						March 31, 2021						June 30, 2020
	Average Balance		Interest / Dividends		Yield / Cost		Average Balance		Interest / Dividends		Yield / Cost		Average Balance		Interest / Dividends		Yield / Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale 1	$	3,016,330	$	30,835	4.10	%	$	3,079,130	$	30,885	4.07	%	$	2,989,772	$	29,730	4.00	%
Securities - taxable	490,634		1,921		1.57	%	461,300		1,779		1.56	%	560,947		3,276		2.35	%
Securities - non-taxable	84,050		259		1.24	%	87,129		281		1.31	%	96,675		457		1.90	%
Other earning assets	509,735		362		0.28	%	446,045		335		0.30	%	594,296		759		0.51	%
Total interest-earning assets	4,100,749		33,377		3.26	%	4,073,604		33,280		3.31	%	4,241,690		34,222		3.24	%
Allowance for loan losses	(30,348)						(29,884)						(23,388)
Noninterest-earning assets	136,565						129,553						111,872
Total assets	$	4,206,966					$	4,173,273					$	4,330,174

Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits	$	192,777	$	143	0.30	%	$	180,746	$	133	0.30	%	$	137,487	$	237	0.69	%
Savings accounts	55,811		49		0.35	%	46,035		40		0.35	%	37,204		92		0.99	%
Money market accounts	1,416,406		1,462		0.41	%	1,369,626		1,391		0.41	%	1,089,063		3,541		1.31	%
Certificates and brokered deposits	1,444,171		6,051		1.68	%	1,519,580		7,064		1.89	%	2,006,966		11,893		2.38	%
Total interest-bearing deposits	3,109,165		7,705		0.99	%	3,115,987		8,628		1.12	%	3,270,720		15,763		1.94	%
Other borrowed funds	584,751		4,065		2.79	%	583,780		4,127		2.87	%	584,543		4,033		2.77	%
Total interest-bearing liabilities	3,693,916		11,770		1.28	%	3,699,767		12,755		1.40	%	3,855,263		19,796		2.07	%
Noninterest-bearing deposits	98,207						90,764						73,758
Other noninterest-bearing liabilities	61,949						46,774						94,285
Total liabilities	3,854,072						3,837,305						4,023,306
Shareholders' equity	352,894						335,968						306,868
Total liabilities and shareholders' equity	$	4,206,966					$	4,173,273					$	4,330,174

Net interest income			$	21,607					$	20,525					$	14,426

Interest rate spread					1.98	%					1.91	%					1.17	%
Net interest margin					2.11	%					2.04	%					1.37	%
Net interest margin - FTE 2,3					2.25	%					2.18	%					1.50	%


First Internet Bancorp
Loans and Deposits (unaudited)
Dollar amounts in thousands
	June 30, 2021				March 31, 2021				June 30, 2020
	Amount		Percent		Amount		Percent		Amount		Percent
Commercial loans
Commercial and industrial	$	96,203	3.3	%	$	71,835	2.3	%	$	81,687	2.7	%
Owner-occupied commercial real estate	87,136		2.9	%	87,930		2.9	%	86,897		2.9	%
Investor commercial real estate	28,871		1.0	%	14,832		0.5	%	13,286		0.4	%
Construction	117,970		4.0	%	123,483		4.0	%	77,591		2.6	%
Single tenant lease financing	913,115		30.9	%	941,322		30.8	%	980,292		33.0	%
Public finance	612,138		20.7	%	637,600		20.8	%	647,107		21.8	%
Healthcare finance	455,890		15.3	%	510,237		16.8	%	380,956		12.8	%
Small business lending	123,293		4.2	%	132,490		4.3	%	118,526		4.0	%

Total commercial loans	2,434,616		82.3	%	2,519,729		82.4	%	2,386,342		80.2	%

Consumer loans
Residential mortgage	177,148		6.0	%	190,148		6.2	%	208,728		7.0	%
Home equity	17,510		0.6	%	17,949		0.6	%	22,640		0.8	%
Trailers	148,795		5.0	%	143,454		4.7	%	147,326		5.0	%
Recreational vehicles	91,030		3.1	%	92,221		3.0	%	102,088		3.4	%
Other consumer loans	31,971		1.1	%	34,534		1.1	%	42,218		1.4	%
Total consumer loans	466,454		15.8	%	478,306		15.6	%	523,000		17.6	%

Net deferred loan fees, premiums, discounts and other 1	56,538		1.9	%	60,659		2.0	%	64,332		2.2	%

Total loans	$	2,957,608	100.0	%	$	3,058,694	100.0	%	$	2,973,674	100.0	%

	June 30, 2021				March 31, 2021				June 30, 2020
	Amount		Percent		Amount		Percent		Amount		Percent
Deposits
Noninterest-bearing deposits	$	113,996	3.6	%	$	100,700	3.1	%	$	82,864	2.5	%
Interest-bearing demand deposits	196,841		6.1	%	186,015		5.8	%	152,391		4.5	%
Savings accounts	56,298		1.8	%	51,251		1.6	%	43,366		1.3	%
Money market accounts	1,432,355		44.6	%	1,397,449		43.4	%	1,241,874		36.7	%
Certificates of deposits	1,087,350		33.9	%	1,174,764		36.5	%	1,470,905		43.5	%
Brokered deposits	319,307		10.0	%	307,424		9.6	%	389,389		11.5	%
Total deposits	$	3,206,147	100.0	%	$	3,217,603	100.0	%	$	3,380,789	100.0	%


First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
	Three Months Ended									Six Months Ended
	June 30, 2021			March 31, 2021			June 30, 2020			June 30, 2021			June 30, 2020
Total equity - GAAP	$	358,641		$	344,566		$	307,711		$	358,641		$	307,711
Adjustments:
Goodwill	(4,687)			(4,687)			(4,687)			(4,687)			(4,687)
Tangible common equity	$	353,954		$	339,879		$	303,024		$	353,954		$	303,024

Total assets - GAAP	$	4,204,642		$	4,188,570		$	4,324,600		$	4,204,642		$	4,324,600
Adjustments:
Goodwill	(4,687)			(4,687)			(4,687)			(4,687)			(4,687)
Tangible assets	$	4,199,955		$	4,183,883		$	4,319,913		$	4,199,955		$	4,319,913

Common shares outstanding	9,854,153			9,823,831			9,799,047			9,854,153			9,799,047

Book value per common share	$	36.39		$	35.07		$	31.40		$	36.39		$	31.40
Effect of goodwill	(0.47)			(0.47)			(0.48)			(0.47)			(0.48)
Tangible book value per common share	$	35.92		$	34.60		$	30.92		$	35.92		$	30.92

Total shareholders' equity to assets	8.53		%	8.23		%	7.12		%	8.53		%	7.12		%
Effect of goodwill	(0.10		%)	(0.11		%)	(0.11		%)	(0.10		%)	(0.11		%)
Tangible common equity to tangible assets	8.43		%	8.12		%	7.01		%	8.43		%	7.01		%

Total average equity - GAAP	$	352,894		$	335,968		$	306,868		$	344,478		$	308,937
Adjustments:
Average goodwill	(4,687)			(4,687)			(4,687)			(4,687)			(4,687)
Average tangible common equity	$	348,207		$	331,281		$	302,181		$	339,791		$	304,250

Return on average shareholders' equity	14.88		%	12.61		%	5.15		%	13.78		%	6.48		%
Effect of goodwill	0.21		%	0.18		%	0.08		%	0.19		%	0.10		%
Return on average tangible common equity	15.09		%	12.79		%	5.23		%	13.97		%	6.58		%

Total interest income	$	33,377		$	33,280		$	34,222		$	66,657		$	70,466
Adjustments:
Fully-taxable equivalent adjustments 1	1,394			1,356			1,437			2,750			2,972
Total interest income - FTE	$	34,771		$	34,636		$	35,659		$	69,407		$	73,438

Net interest income	$	21,607		$	20,525		$	14,426		$	42,132		$	29,444
Adjustments:
Fully-taxable equivalent adjustments 1	1,394			1,356			1,437			2,750			2,972
Net interest income - FTE	$	23,001		$	21,881		$	15,863		$	44,882		$	32,416

Net interest margin	2.11		%	2.04		%	1.37		%	2.08		%	1.43		%
Effect of fully-taxable equivalent adjustments 1	0.14		%	0.14		%	0.13		%	0.13		%	0.15		%
Net interest margin - FTE	2.25		%	2.18		%	1.50		%	2.21		%	1.58		%

Allowance for loan losses	$	28,066		$	30,642		$	24,465		$	28,066		$	24,465

Loans	$	2,957,608		$	3,058,694		$	2,973,674		$	2,957,608		$	2,973,674
Adjustments:
PPP loans	(39,682)			(53,365)			(58,948)			(39,682)			(58,948)
Loans, excluding PPP loans	$	2,917,926		$	3,005,329		$	2,914,726		$	2,917,926		$	2,914,726

Allowance for loan losses to loans	0.95		%	1.00		%	0.82		%	0.95		%	0.82		%
Effect of PPP loans	0.01		%	0.02		%	0.02		%	0.01		%	0.02		%
Allowance for loan losses to loans, excluding PPP loans	0.96		%	1.02		%	0.84		%	0.96		%	0.84		%