First Internet Bancorp Reports Second Quarter 2020 Results

Highlights for the second quarter include:

  • Total revenue of $19.4 million, net income of $3.9 million and diluted earnings per share of $0.40
  • Cost of interest-bearing deposits decreased 30 bps from the first quarter
  • Accelerated SBA platform build-out through further sales and operations hires
  • As of July 17, 2020, loan balances of $365.8 million, or 12.6% of total loans, remained on deferral programs, down from a peak of $647.2 million, or 22.4%, in late May

FISHERS, Ind.–(BUSINESS WIRE)–First Internet Bancorp (the “Company”) (Nasdaq: INBK), the parent company of First Internet Bank (the “Bank”), announced today financial and operational results for the second quarter of 2020. Net income for the second quarter of 2020 was $3.9 million, or $0.40 diluted earnings per share. This compares to net income of $6.0 million, or $0.62 diluted earnings per share, for the first quarter of 2020, and net income of $6.1 million, or $0.60 diluted earnings per share, for the second quarter of 2019.

“Throughout the COVID-19 pandemic, we have focused on our customers whose families and businesses have been impacted by the virus,” said David Becker, Chairman, President and Chief Executive Officer. “For many borrowers, we were able to provide peace of mind in uncertain times by deferring loan payments for 60-90 days. And, because we have always served our nationwide customer base remotely, we were able to assist our customers when they needed us most, without missing a beat, even as we worked to transition our associates to telework. We have already seen a significant reduction in deferrals, and all of our borrowers coming off deferrals have resumed normal payment schedules.

“In the second quarter, our overall credit quality remained solid. Our direct-to-consumer mortgage business produced another quarter of strong results and has a healthy pipeline as we begin the third quarter. We continue to expand our national SBA platform, adding to our already strong and talented team of professionals, and we are excited about the near-term outlook for this government-guaranteed lending business.

“In addition, our efforts on the deposit side of our balance sheet continued to produce results as we shifted the mix of our deposits while reducing interest expense. We believe that we still have significant opportunities to reprice our deposits lower while maintaining relatively stable asset yields, and these bode well for our net interest income and net interest margin in future periods.

“We are well-capitalized and have the financial strength to serve our clients during this public health crisis. I would like to thank the entire First Internet team for their resilience and hard work during this challenging time,” Becker concluded.

Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2020 was $14.4 million, compared to $15.0 million for the first quarter of 2020 and $16.1 million for the second quarter of 2019. On a fully-taxable equivalent basis, net interest income for the second quarter was $15.9 million, compared to $16.6 million for the first quarter of 2020 and $17.7 million for the second quarter of 2019.

Total interest income for the second quarter of 2020 was $34.2 million, a decrease of 5.6%, compared to the first quarter of 2020, and a decrease of 7.1% compared to the second quarter of 2019. On a fully-taxable equivalent basis, total interest income for the second quarter was $35.7 million, a decrease of 5.6% compared to the first quarter of 2020, and a decrease of 7.3% compared to the second quarter of 2019.

Pandemic Impact: Interest income declined during the second quarter following the Federal Reserve rate cuts in the first quarter of 2020, which negatively impacted the yields earned on variable rate loans and securities as well as cash balances. Furthermore, market uncertainty encouraged a continued flight to safety for consumers and small businesses. Rapid growth in deposit balances led to an increase in average cash balances of $152.8 million quarter-over-quarter.

The decline in short term interest rates reduced the yield earned on the loan portfolio by 11 bps to 4.00% as compared to the prior quarter. In total, the yield on interest-earning assets for the second quarter of 2020 declined to 3.24% from 3.62% in the prior quarter.

Total interest expense for the second quarter of 2020 was $19.8 million, a decrease of 6.7% compared to the first quarter of 2020 and a decrease of 4.5% compared to the second quarter of 2019. The decrease compared to the linked quarter was due mainly to a decline of 30 bps in the cost of interest-bearing deposits, partially offset by an increase in the average balance of these deposits. The decrease in deposit costs reflects a continued decline in the rates paid on deposits as well as a shift in the deposit mix.

During the second quarter of 2020, the cost of money market deposits decreased by 43 bps while the average balance of these deposits grew $222.5 million, or 25.7%. The Company lowered money market rates 60-70 bps throughout the quarter.

Furthermore, the cost of certificates and brokered deposits decreased 18 bps while balances decreased by $62.2 million, or 3.0%. During the second quarter, new certificates and brokered deposits were originated at a weighted average cost of 1.08% while maturing deposits had a weighted average cost of 2.64%.

Net interest margin (“NIM”) was 1.37% for the second quarter of 2020, compared to 1.50% for the first quarter of 2020 and 1.73% for the second quarter of 2019. On a fully-taxable equivalent basis, NIM decreased 15 bps to 1.50% for the second quarter of 2020, from 1.65% for the first quarter of 2020, and was down 41 bps from 1.91% for the second quarter of 2019. The decrease in fully-taxable equivalent NIM compared to the linked quarter was due mainly to the decline in loan yields, which had a negative impact of 24 bps, as well as lower yields earned on securities and cash balances, which each had a negative impact of 7 bps. These were partially offset by deposit costs, which had a positive impact of 23 bps.

Noninterest Income

Noninterest income for the second quarter of 2020 was $5.0 million, down from $6.2 million for the first quarter of 2020, and up from $3.5 million for the second quarter of 2019. The decrease compared to the first quarter of 2020 was driven primarily by lower gain on sale of loans sold during the quarter and a modest decrease in revenue from mortgage banking activities.

Pandemic Impact: Due to market conditions, the Company did not sell any public finance, single tenant lease financing or portfolio residential mortgage loans in the second quarter. Secondary market volatility early in the quarter led to a modest decrease in mortgage banking revenue; however, the secondary market has stabilized and origination activity is strong going into the third quarter.

The Company sold $11.5 million of U.S. Small Business Administration (“SBA”) 7(a) guaranteed loans at a net gain of $0.8 million in the second quarter of 2020, representing continued growth in this line of business with a robust pipeline heading into the third quarter.

Noninterest Expense

Noninterest expense for the second quarter of 2020 was $13.2 million, compared to $13.5 million for the first quarter of 2020 and $11.7 million for the second quarter of 2019. The decrease from the first quarter of 2020 was due primarily to lower consulting and professional fees, loan expenses and deposit insurance premium, partially offset by an increase in other expense.

Pandemic Impact: In an effort to prevent the spread of COVID-19 in its facilities, the Company incurred costs in the second quarter to enable its employees to work remotely and to promote social distancing and enhanced disinfection for those employees who continued to work from the Company’s offices. The majority of these costs will be amortized over future periods. The Company also made a $250,000 charitable contribution to assist small businesses and nonprofits address the economic challenges of the COVID-19 pandemic.

Income Taxes

The Company reported an income tax benefit of $0.3 million for the second quarter of 2020 compared to income tax expense of $0.3 million and an effective tax rate of 4.2% for the first quarter of 2020 and income tax expense of $0.3 million and an effective tax rate of 5.3% for the second quarter of 2019. The income tax benefit was primarily due to the decrease in pre-tax earnings compared to the linked quarter.

Loans and Credit Quality

Total loans as of June 30, 2020 were $3.0 billion, an increase of $81.6 million, or 2.8%, compared to March 31, 2020, and an increase of $112.5 million, or 3.9%, compared to June 30, 2019. Total commercial loan balances were $2.4 billion as of June 30, 2020, an increase of $98.8 million, or 4.3%, compared to March 31, 2020, and an increase of $203.5 million, or 9.3%, compared to June 30, 2019.

Pandemic Impact: The Company originated 449 SBA Paycheck Protection Plan (“PPP”) loans totaling $58.9 million in the second quarter, accounting for a significant portion of the quarterly growth. Pursuant to terms in the CARES Act and the PPP Flexibility Act, payments on these loans are currently deferred. PPP loans are fully guaranteed by the SBA.

Total consumer loan balances were $523.0 million as of June 30, 2020, a decrease of $16.2 million, or 3.0%, compared to March 31, 2020, and a decrease of $116.8 million, or 18.3%, compared to June 30, 2019. The decline in consumer loan balances from March 31, 2020 was due primarily to increased prepayment activity in the residential mortgage loan portfolio.

Total delinquencies 30 days or more past due decreased to 0.25% of total loans as of June 30, 2020, down from 0.32% as of March 31, 2020 and up slightly from 0.24% as of June 30, 2019. The decrease in delinquencies compared to the linked quarter was due primarily to a decline in delinquent residential mortgage loans. Overall credit quality remained relatively stable as nonperforming loans to total loans was 0.28% as of June 30, 2020, compared to 0.26% at March 31, 2020 and 0.19% as of June 30, 2019.

The allowance for loan losses as a percentage of total loans was 0.82% as of June 30, 2020, or 0.84% when excluding SBA PPP loans, compared to 0.79% as of March 31, 2020 and 0.70% as of June 30, 2019.

Pandemic Impact: During the quarter, the Company made additional adjustments to qualitative factors in its allowance model to reflect the continued economic uncertainty resulting from the COVID-19 pandemic. As a result, both the amount of the allowance for loan losses and the allowance as a percentage of total loans increased compared to March 31, 2020.

Net charge-offs of $0.9 million were recognized during the second quarter of 2020, resulting in net charge-offs to average loans of 0.12%, compared to 0.06% for the first quarter of 2020 and 0.04% for the second quarter of 2019. Compared to the prior quarter, the increase in net charge-offs was due primarily to a $0.7 million charge-off in the healthcare finance portfolio, partially offset by an increase in recoveries.

The provision for loan losses in the second quarter of 2020 was $2.5 million, compared to $1.5 million for the first quarter of 2020 and $1.4 million for the second quarter of 2019. The increase of $1.0 million, or 70.5%, compared to the linked quarter was due primarily to the adjustments to the qualitative factors in the allowance model discussed above and, to a lesser extent, the charge-off in the healthcare finance portfolio.

Capital

As of June 30, 2020, total shareholders’ equity was $307.7 million, an increase of $2.6 million, or 0.8%, compared to March 31, 2020, primarily due to the net income earned during the quarter, partially offset by an increase in accumulated other comprehensive loss. Book value per common share increased to $31.40 as of June 30, 2020, up from $31.13 as of March 31, 2020, and up from $29.56 as of June 30, 2019. Tangible book value per share at June 30, 2020 was $30.92, up from $30.65 and up from $29.10, each as of the same reference dates.

The following table presents the Company’s and the Bank’s regulatory and other capital ratios as of June 30, 2020.

As of June 30, 2020

Company

Bank

 

Total shareholders’ equity to assets

7.12%

7.85%

Tangible common equity to tangible assets 1

7.01%

7.75%

Tier 1 leverage ratio 2

7.50%

8.22%

Common equity tier 1 capital ratio 2

10.97%

12.05%

Tier 1 capital ratio 2

10.97%

12.05%

Total risk-based capital ratio 2

14.16%

12.88%

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, July 23, 2020 to discuss its quarterly financial results. The call can be accessed via telephone at (888) 348-3664. A recorded replay can be accessed through August 23, 2020 by dialing (877) 344-7529; passcode: 10145915.

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 $4.3 billion as of June 30, 2020. 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, consumer loan, residential mortgage, and specialty finance services nationally as well as commercial real estate loans, commercial and industrial loans, SBA financing and treasury management services in select geographies. 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 with respect to the financial condition, results of operations, trends in lending policies, plans, objectives, future performance or business of the Company. Forward-looking statements are generally identifiable by the use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “outlook,” “pending,” “plan,” “position,” “preliminary,” “remain,” “should,” “will,” “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. The COVID-19 pandemic crisis is adversely affecting us, our customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects remains uncertain. Continued deterioration in general business and economic conditions, including further increases in unemployment rates, or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, lead to a tightening of credit, and further increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to COVID-19, could affect us in substantial and unpredictable ways. 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 and healthcare finance loan portfolios; competition with national, regional and community financial institutions; the loss of any key members of senior management; fluctuations in interest rates; general economic conditions; risks relating to the regulation of financial institutions; and other factors identified in reports we file with the U.S. Securities and Exchange Commission. All statements in this press release, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, average tangible common equity and return on average tangible common equity, total interest income – FTE, net interest income – FTE, net interest margin – FTE and allowance for loan losses to loans, excluding PPP loans, 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

 

Six Months Ended

 

 

 

 

 

 

 

 

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

June 30,

 

2020

 

 

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

 
Net income

$

3,932

 

$

6,019

 

$

6,121

 

$

9,951

 

$

11,817

 

 
Per share and share information
Earnings per share – basic

$

0.40

 

$

0.62

 

$

0.60

 

$

1.02

 

$

1.16

 

Earnings per share – diluted

 

0.40

 

 

0.62

 

 

0.60

 

 

1.02

 

 

1.16

 

Dividends declared per share

 

0.06

 

 

0.06

 

 

0.06

 

 

0.12

 

 

0.12

 

Book value per common share

 

31.40

 

 

31.13

 

 

29.56

 

 

31.40

 

 

29.56

 

Tangible book value per common share 1

 

30.92

 

 

30.65

 

 

29.10

 

 

30.92

 

 

29.10

 

Common shares outstanding

 

9,799,047

 

 

9,801,825

 

 

10,016,458

 

 

9,799,047

 

 

10,016,458

 

Average common shares outstanding:
Basic

 

9,768,227

 

 

9,721,485

 

 

10,148,285

 

 

9,798,528

 

 

10,182,770

 

Diluted

 

9,768,227

 

 

9,750,528

 

 

10,148,285

 

 

9,802,427

 

 

10,186,833

 

Performance ratios
Return on average assets

 

0.37

%

 

0.59

%

 

0.65

%

 

0.47

%

 

0.64

%

Return on average shareholders’ equity

 

5.15

%

 

7.78

%

 

8.26

%

 

6.48

%

 

8.09

%

Return on average tangible common equity 1

 

5.23

%

 

7.90

%

 

8.39

%

 

6.58

%

 

8.22

%

Net interest margin

 

1.37

%

 

1.50

%

 

1.73

%

 

1.43

%

 

1.79

%

Net interest margin – FTE 1,2

 

1.50

%

 

1.65

%

 

1.91

%

 

1.58

%

 

1.97

%

Capital ratios 3
Total shareholders’ equity to assets

 

7.12

%

 

7.32

%

 

7.48

%

 

7.12

%

 

7.48

%

Tangible common equity to tangible assets 1

 

7.01

%

 

7.22

%

 

7.37

%

 

7.01

%

 

7.37

%

Tier 1 leverage ratio

 

7.50

%

 

7.82

%

 

8.06

%

 

7.50

%

 

8.06

%

Common equity tier 1 capital ratio

 

10.97

%

 

10.78

%

 

11.08

%

 

10.97

%

 

11.08

%

Tier 1 capital ratio

 

10.97

%

 

10.78

%

 

11.08

%

 

10.97

%

 

11.08

%

Total risk-based capital ratio

 

14.16

%

 

13.90

%

 

14.31

%

 

14.16

%

 

14.31

%

Asset quality
Nonperforming loans

$

8,195

 

$

7,443

 

$

5,386

 

$

8,195

 

$

5,386

 

Nonperforming assets

 

10,304

 

 

9,622

 

 

8,041

 

 

10,304

 

 

8,041

 

Nonperforming loans to loans

 

0.28

%

 

0.26

%

 

0.19

%

 

0.28

%

 

0.19

%

Nonperforming assets to total assets

 

0.24

%

 

0.23

%

 

0.20

%

 

0.24

%

 

0.20

%

Allowance for loan losses to:
Loans

 

0.82

%

 

0.79

%

 

0.70

%

 

0.82

%

 

0.70

%

Loans, excluding PPP loans

 

0.84

%

 

0.79

%

 

0.70

%

 

0.84

%

 

0.70

%

Nonperforming loans

 

298.5

%

 

307.1

%

 

370.9

%

 

298.5

%

 

370.9

%

Net charge-offs to average loans

 

0.12

%

 

0.06

%

 

0.04

%

 

0.09

%

 

0.04

%

Average balance sheet information
Loans

$

2,943,165

 

$

2,931,108

 

$

2,889,478

 

$

2,937,136

 

$

2,825,178

 

Total securities

 

657,622

 

 

630,879

 

 

558,352

 

 

644,251

 

 

540,905

 

Other earning assets

 

594,296

 

 

415,927

 

 

248,996

 

 

505,111

 

 

247,871

 

Total interest-earning assets

 

4,241,690

 

 

4,024,800

 

 

3,723,424

 

 

4,133,245

 

 

3,634,630

 

Total assets

 

4,330,174

 

 

4,099,932

 

 

3,805,021

 

 

4,215,053

 

 

3,716,755

 

Noninterest-bearing deposits

 

73,758

 

 

60,456

 

 

42,566

 

 

67,107

 

 

42,558

 

Interest-bearing deposits

 

3,270,720

 

 

3,089,045

 

 

2,879,007

 

 

3,179,882

 

 

2,804,257

 

Total deposits

 

3,344,478

 

 

3,149,501

 

 

2,921,573

 

 

3,246,989

 

 

2,846,815

 

Shareholders’ equity

 

306,868

 

 

311,005

 

 

297,148

 

 

308,937

 

 

294,530

 

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)
Amounts in thousands
 
 

June 30,

 

March 31,

 

June 30,

 

2020

 

 

 

2020

 

 

 

2019

 

 
Assets
Cash and due from banks

$

7,016

 

$

5,726

 

$

5,638

 

Interest-bearing deposits

 

491,603

 

 

345,542

 

 

342,660

 

Securities available-for-sale, at fair value

 

589,017

 

 

608,682

 

 

522,334

 

Securities held-to-maturity, at amortized cost

 

68,295

 

 

66,331

 

 

35,826

 

Loans held-for-sale

 

38,813

 

 

52,394

 

 

30,642

 

Loans

 

2,973,674

 

 

2,892,093

 

 

2,861,156

 

Allowance for loan losses

 

(24,465

)

 

(22,857

)

 

(19,976

)

Net loans

 

2,949,209

 

 

2,869,236

 

 

2,841,180

 

Accrued interest receivable

 

21,093

 

 

16,960

 

 

18,887

 

Federal Home Loan Bank of Indianapolis stock

 

25,650

 

 

25,650

 

 

25,650

 

Cash surrender value of bank-owned life insurance

 

37,474

 

 

37,238

 

 

36,527

 

Premises and equipment, net

 

23,939

 

 

18,883

 

 

14,405

 

Goodwill

 

4,687

 

 

4,687

 

 

4,687

 

Servicing asset

 

2,522

 

 

2,415

 

 

 

Other real estate owned

 

2,065

 

 

2,065

 

 

2,619

 

Accrued income and other assets

 

63,217

 

 

112,337

 

 

77,774

 

Total assets

$

4,324,600

 

$

4,168,146

 

$

3,958,829

 

 
Liabilities
Noninterest-bearing deposits

$

82,864

 

$

70,562

 

$

44,040

 

Interest-bearing deposits

 

3,297,925

 

 

3,107,944

 

 

2,962,223

 

Total deposits

 

3,380,789

 

 

3,178,506

 

 

3,006,263

 

Advances from Federal Home Loan Bank

 

514,913

 

 

514,911

 

 

514,906

 

Subordinated debt

 

69,681

 

 

69,605

 

 

69,375

 

Accrued interest payable

 

1,073

 

 

3,293

 

 

2,930

 

Accrued expenses and other liabilities

 

50,433

 

 

96,704

 

 

69,235

 

Total liabilities

 

4,016,889

 

 

3,863,019

 

 

3,662,709

 

Shareholders’ equity
Voting common stock

 

220,418

 

 

219,893

 

 

224,244

 

Retained earnings

 

108,431

 

 

105,100

 

 

87,454

 

Accumulated other comprehensive loss

 

(21,138

)

 

(19,866

)

 

(15,578

)

Total shareholders’ equity

 

307,711

 

 

305,127

 

 

296,120

 

Total liabilities and shareholders’ equity

$

4,324,600

 

$

4,168,146

 

$

3,958,829

 

First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited)
Amounts in thousands, except per share data
 
 

Three Months Ended

 

Six Months Ended

 

 

 

 

 

 

 

 

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

June 30,

 

2020

 

 

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

 
Interest income
Loans

$

29,730

 

$

30,408

 

$

30,842

 

$

60,138

 

$

60,060

 

Securities – taxable

 

3,276

 

 

3,619

 

 

3,540

 

 

6,895

 

 

6,864

 

Securities – non-taxable

 

457

 

 

572

 

 

668

 

 

1,029

 

 

1,352

 

Other earning assets

 

759

 

 

1,645

 

 

1,794

 

 

2,404

 

 

3,567

 

Total interest income

 

34,222

 

 

36,244

 

 

36,844

 

 

70,466

 

 

71,843

 

Interest expense
Deposits

 

15,763

 

 

17,208

 

 

17,147

 

 

32,971

 

 

32,533

 

Other borrowed funds

 

4,033

 

 

4,018

 

 

3,592

 

 

8,051

 

 

6,961

 

Total interest expense

 

19,796

 

 

21,226

 

 

20,739

 

 

41,022

 

 

39,494

 

Net interest income

 

14,426

 

 

15,018

 

 

16,105

 

 

29,444

 

 

32,349

 

Provision for loan losses

 

2,491

 

 

1,461

 

 

1,389

 

 

3,952

 

 

2,674

 

Net interest income after provision for loan losses

 

11,935

 

 

13,557

 

 

14,716

 

 

25,492

 

 

29,675

 

Noninterest income
Service charges and fees

 

182

 

 

212

 

 

225

 

 

394

 

 

461

 

Loan servicing revenue

 

255

 

 

251

 

 

 

 

506

 

 

 

Loan servicing asset revaluation

 

(90

)

 

(179

)

 

 

 

(269

)

 

 

Mortgage banking activities

 

3,408

 

 

3,668

 

 

2,664

 

 

7,076

 

 

4,281

 

Gain (loss) on sale of loans

 

762

 

 

1,801

 

 

(66

)

 

2,563

 

 

(170

)

Gain (loss) on sale of securities

 

 

 

41

 

 

(458

)

 

41

 

 

(458

)

Other

 

456

 

 

417

 

 

1,089

 

 

873

 

 

1,712

 

Total noninterest income

 

4,973

 

 

6,211

 

 

3,454

 

 

11,184

 

 

5,826

 

Noninterest expense
Salaries and employee benefits

 

7,789

 

 

7,774

 

 

6,642

 

 

15,563

 

 

12,963

 

Marketing, advertising and promotion

 

411

 

 

375

 

 

466

 

 

786

 

 

935

 

Consulting and professional fees

 

932

 

 

1,177

 

 

835

 

 

2,109

 

 

1,649

 

Data processing

 

339

 

 

375

 

 

328

 

 

714

 

 

645

 

Loan expenses

 

399

 

 

599

 

 

292

 

 

998

 

 

606

 

Premises and equipment

 

1,602

 

 

1,625

 

 

1,497

 

 

3,227

 

 

2,997

 

Deposit insurance premium

 

435

 

 

485

 

 

747

 

 

920

 

 

1,302

 

Other

 

1,337

 

 

1,076

 

 

902

 

 

2,413

 

 

1,721

 

Total noninterest expense

 

13,244

 

 

13,486

 

 

11,709

 

 

26,730

 

 

22,818

 

Income before income taxes

 

3,664

 

 

6,282

 

 

6,461

 

 

9,946

 

 

12,683

 

Income tax (benefit) provision

 

(268

)

 

263

 

 

340

 

 

(5

)

 

866

 

Net income

$

3,932

 

$

6,019

 

$

6,121

 

$

9,951

 

$

11,817

 

 
Per common share data
Earnings per share – basic

$

0.40

 

$

0.62

 

$

0.60

 

$

1.02

 

$

1.16

 

Earnings per share – diluted

$

0.40

 

$

0.62

 

$

0.60

 

$

1.02

 

$

1.16

 

Dividends declared per share

$

0.06

 

$

0.06

 

$

0.06

 

$

0.12

 

$

0.12

 

Contacts

Investors/Analysts
Paula Deemer

Director of Corporate Administration

(317) 428-4628

investors@firstib.com

Media
Nicole Lorch

Executive Vice President & Chief Operating Officer

(317) 532-7906

nlorch@firstib.com

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