First Internet Bancorp (INBK) 10-Q Quarterly Report November 2020

•Record quarterly net income of $8.4 million, and adjusted net income of $10.0 million when excluding a $2.1 million pre-tax write-down of legacy other real estate owned (“OREO”)

•Record quarterly diluted earnings per share of $0.86 and $1.03 adjusted diluted earnings per share, excluding the OREO write-down

•Total revenue of $28.7 million, a 48.1% increase from the second quarter, driven by record mortgage banking revenue, higher net interest income and increased SBA loan sales

•Net interest margin and fully-taxable equivalent net interest margin increased 16 and 17 basis points (“bps”), respectively, from the second quarter, driven by a 43 bp decrease in the cost of interest-bearing deposits

•As of October 16, 2020, loan balances of $20.8 million, or 0.7% of total loans, remained on deferral programs, down significantly from $365.8 million on July 17, 2020

Fishers, Indiana, October 21, 2020 – First Internet Bancorp (the “Company”) (Nasdaq: INBK), the parent company of First Internet Bank (the “Bank”), announced today financial and operational results for the third quarter of 2020. Net income for the third quarter of 2020 was a record $8.4 million, or $0.86 diluted earnings per share. This compares to net income of $3.9 million, or $0.40 diluted earnings per share, for the second quarter of 2020, and net income of $6.3 million, or $0.63 diluted earnings per share, for the third quarter of 2019.

“We generated record net income in the quarter, driven by very strong revenue growth, an improvement in net interest margin, and moderate loan growth. We are very pleased with our ability to navigate the challenges imposed by the pandemic and deliver for our customers and shareholders,” said David Becker, Chairman, President and Chief Executive Officer. “Additionally, we continued to experience a significant reduction in loan deferrals, and by quarter-end, over 99% of our borrowers who needed payment relief early in the pandemic had resumed making payments. We are proud to support our customers in their time of need and are glad that nearly all have been able to return to their normal payment schedules in such short order.

“Our direct-to-consumer mortgage business had a record quarter, almost tripling revenue compared to the second quarter. We capitalized on the ongoing market strength created by historically low mortgage rates, and our mortgage pipeline remains strong heading into the fourth quarter. Furthermore, our SBA business gained additional traction during the quarter, as our accelerated national expansion contributed to increased loan production and higher gain-on-sale revenue. Our SBA pipeline is robust, and we anticipate driving increased fee income in the quarters to come as this government-guaranteed lending business continues to ramp-up.

Mr. Becker concluded, “As always, I would like to thank the entire First Internet team for their very hard work in delivering record revenue and earnings performance during these challenging times. Our employees are the key to our success, and we are proud of the strong culture and workplace

The following information was filed by First Internet Bancorp (INBK) on Wednesday, October 21, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside First Internet Bancorp's 10-Q Quarterly Report:

Financial - Shares Highlight
Non-GAAP financial measures, specifically tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets ratio, average tangible common equity, return on average tangible common equity, total interest income - FTE, net interest income - FTE, net interest margin - FTE, allowance for loan losses to loans, excluding PPP loans, 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 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.

Financial - Earnings Highlight
The increase in other earning assets was due to higher cash balances driven by growth in the average balance of deposits.
Financial - Earnings Highlight
The increase in other earning assets was due to higher cash balances driven by growth in the average balance of deposits.
Financial - Expense Highlight
The decrease in expense related to certificates and brokered deposits of $6.2 million, or 15.1%, was due to a decline of 19 bps in the cost of these deposits as well as a $175.3 million, or 8.2%, decrease in the average balance of these deposits.
Revenue - Product Highlight
The increase in gain on sale of loans was due to sales of portfolio loans with book values totaling $216.7 million that resulted in a gain of $1.3 million, as well as a gain of $3.3 million on the sale of SBA 7(a) guaranteed loans during the nine months ended September 30, 2020, compared to the Company selling portfolio loans with book values of $201.8 million that resulted in a net gain of $0.4 million during the nine months ended September 30, 2019.
Revenue - Product
The increase in gain (loss)...Read more
Financial - Income
The increase in income tax...Read more
Financial - Earnings
However, as the pace of...Read more
Other - Other
The deposit growth drove an...Read more
Financial - Expense
Interest expense on certificates and...Read more
Financial - Expense
Additionally, the cost of total...Read more
Financial - Shares
The Basel III Capital Rules...Read more
Financial - Expense
The increase in loan expenses...Read more
Financial - Expense
Overall, the cost of total...Read more
Financial - Income
The decrease in total interest...Read more
Financial - Income
The decrease in total interest...Read more
Financial - Earnings
44 During the third quarter...Read more
Financial - Earnings
During the nine months ended...Read more
Other - Other
Money market balances have increased...Read more
Other - Other
Money market balances have increased...Read more
Other - Other
As a result of continued...Read more
Revenue - Product
The increase in gain on...Read more
Financial - Earnings
The declines in the yields...Read more
Financial - Income
The decrease in net interest...Read more
Other - Other
The Company experienced strong growth...Read more
Financial - Income
The decrease in other noninterest...Read more
Financial - Expense
The increase in expense related...Read more
Financial - Income
However, the low interest rate...Read more
Revenue - Product
The increase of $5.2 million,...Read more
Other - Other
However, if the pandemic extends...Read more
Other - Other
Our commercial deposits and treasury...Read more
Financial - Expense
The increase of $9.1 million,...Read more
Other - Other
Reconciliations of these non-GAAP financial...Read more
Financial - Expense
The declines in certificates of...Read more
Revenue - Product
In 2018, we identified small...Read more
Financial - Expense
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Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

First Internet Bancorp provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Ticker: INBK
CIK: 1562463
Form Type: 10-Q Quarterly Report
Accession Number: 0001562463-20-000096
Submitted to the SEC: Thu Nov 05 2020 4:58:15 PM EST
Accepted by the SEC: Thu Nov 05 2020
Period: Wednesday, September 30, 2020
Industry: State Commercial Banks

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First Internet Bancorp (INBK) SEC Filing 10-Q Quarterly report for the period ending Wednesday, September 30, 2020

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