First Internet Bancorp (INBK) 10-K Annual Report March 2023

– 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, 2022.

Fourth Quarter and Full Year 2022 Commentary

Market forces and the economic climate, both driven in part by the post-pandemic recovery, had a significant impact on the Company’s 2022 financial results and frame the Company’s strategy for 2023 and beyond.

Loan demand was strong throughout the year. Total loan portfolio balances increased 7.5% from the third quarter of 2022 and 21.2% from the fourth quarter of 2021. However, intense competition for deposits through the most rapid set of Federal Funds rate hikes since the late 1980s drove interest expense higher and pressured net interest margin. Average loan portfolio yields were up 39 bps in the fourth quarter compared to the linked quarter, while the cost of interest-bearing deposits was up 104 bps. The Company recorded a higher provision for loan loss expense in the fourth quarter based primarily upon loan growth while credit quality remained excellent with nonperforming ratios well below industry averages.

The Company has healthy loan pipelines and will focus its 2023 origination efforts on its floating rate loan products, notably commercial construction and small business lending, as well as its higher-yielding fixed rate programs, such as franchise finance.

While other lending lines have strong demand, the combination of housing prices, housing supply, economic uncertainty and interest rates have caused mortgage applications nationally to plunge to their lowest level in 26 years. Due to the steep decline in mortgage volumes and the negative outlook for mortgage lending over the next several years, the Company decided to exit its consumer mortgage business during the first quarter of 2023. This includes its nationwide digital direct-to-consumer mortgage platform that originates residential loans for sale in the secondary market as well as its local traditional consumer mortgage and construction-to-permanent business. (The Company’s commercial construction and land development business will not be affected by this decision and will remain an important part of the Company’s lending strategy, as noted above.)

This action is expected to reduce total annual noninterest expense by approximately $6.8 million and increase annualized pre-tax income by approximately $2.7 million, with 80% of the benefit realized in 2023 and 100% thereafter. The Company estimates that it will incur total pre-tax expense of approximately $3.3 million in the first and second quarters of 2023 associated with exiting this line of business.

While navigating market headwinds, management remains committed to creating shareholder value. The Company repurchased 284,286 shares in the fourth quarter at an average price of $25.16. For the year, the Company repurchased over 800,000 shares at an average price well below tangible book value. Tangible book value reached its highest value to date, at $39.74 as of December 31, 2022.

The following information was filed by First Internet Bancorp (INBK) on Wednesday, January 25, 2023 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

Please wait while we load the requested 10-K report or click the link below:

https://last10k.com/sec-filings/report/1562463/000156246323000022/inbk-20221231.htm

View differences made from one year to another to evaluate First Internet Bancorp's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ) — *Sample 10-K Year-over-Year (YoY) Comparison*

Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were ~~removed~~ , added and changed by First Internet Bancorp.

Continue

Assess how First Internet Bancorp's management team is paid from their Annual Proxy

First Internet Bancorp's Definitive Proxy Statement (Form DEF 14A) filed after their 2023 10-K Annual Report includes:

Voting Procedures
Board Members
Executive Team
Salaries, Bonuses, Perks
Peers / Competitors

Continue

Rating
Learn More

Filter Sentiment:

All

Positive

Negative

Filter Category:

All

Financial

Revenue

Legal

Other

Filter Subcategory:

All

Expense

Income

Earnings

Cash Flow

Geography

Product

Other

Inside First Internet Bancorp's 10-K Annual Report:

Financial - Expense Highlight
The allowance for loan losses is increased by the provision for loan losses charged to expense and reduced by loans charged off, net of recoveries.

Financial - Shares Highlight
The ratio of total shareholders' equity to total assets decreased to 8.03% as of December 31, 2022 from 9.03% as of December 31, 2021 and the ratio of tangible common equity to tangible assets decreased to 7.94% as of December 31, 2022 from 8.93% as of December 31, 2021.
Financial - Income Highlight
The increase in total interest income was due to increases in interest earned on loans, including loans held-for-sale, securities and other earning assets.
Financial - Shares Highlight
The growth in both book value per common share and tangible book value per share reflects net income earned during the year and the effect of stock repurchase activity throughout the year, partially offset by the increase in accumulated other comprehensive loss.
Financial - Expense Highlight
The decrease in accrued expenses and other liabilities was due primarily to a $14.3 million decrease in derivative liabilities due to changes in fair value.
Financial - Expense
The increase in loan expenses...Read more
Financial - Income
Interest income earned on loans,...Read more
Financial - Expense
The increase in interest expense...Read more
Financial - Earnings
The decrease in the average...Read more
Financial - Earnings
This was partially offset by...Read more
Financial - Earnings
These profitability ratios declined during...Read more
Financial - Expense
If it is determined that...Read more
Financial - Earnings
The increase in the yields...Read more
Other - Other
The increase in the allowance...Read more
Financial - Expense
This action is expected to...Read more
Financial - Expense
The higher salaries and employee...Read more
Financial - Earnings
The $12.6 million decrease in...Read more
Other - Other
The decrease in net charge-offs...Read more
Financial - Cash Flow
An estimate of potential losses...Read more
Financial - Shares
Book value per common share...Read more
Financial - Shares
Tangible book value per share...Read more
Financial - Income
We recognized income tax expense...Read more
Other - Other
The determination of the allowance...Read more
Other - Other
Reconciliations of these non-GAAP financial...Read more
Revenue - Geography
Time Deposit Maturities at December...Read more
Other - Other
Notwithstanding these procedures, there still...Read more
Financial - Shares
Various factors determine the amount...Read more
Financial - Shares
Non-GAAP financial measures, specifically tangible...Read more
Revenue - Geography
Additionally, we may enter into...Read more
Other - Other
Although the Company believes these...Read more
Legal - Other
Based on the Bank's legal...Read more
Financial - Earnings
The increase in net income...Read more
Financial - Expense
The increase in the cost...Read more
Financial - Income
Accrued Income and Other Assets...Read more
Financial - Expense
Noninterest Expense The following table...Read more
Other - Other
The ratio of nonperforming loans...Read more
Financial - Income
Interest income earned on securities...Read more
Other - Other
The increase in the balance...Read more
Other - Other
Total assets increased $332.1 million,...Read more
Other - Other
We believe the allowance for...Read more
Revenue - Product
Securities that we intend to...Read more
Other - Other
Asset Quality A loan is...Read more
Other - Other
If quoted market prices are...Read more
Other - Other
(dollars in thousands) Allowance for...Read more
Other - Other
The allowance for loan losses...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Material Contracts, Statements, Certifications & more

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

Exhibit 4.1: Instruments Defining The Rights Of Security Holders, Including Indentures

Exhibit 21.1: Subsidaries Of The Registrant

Exhibit 23.1: Consents Of Experts And Counsel

Exhibit 24.1: Power Of Attorney

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-K Annual Report
Accession Number: 0001562463-23-000022
Submitted to the SEC: Tue Mar 14 2023 4:16:19 PM EST
Accepted by the SEC: Tue Mar 14 2023
Period: Saturday, December 31, 2022
Industry: State Commercial Banks

External Resources:
Stock Quote
Social Media
SEC.gov

Bookmark the Permalink:
https://last10k.com/sec-filings/inbk/0001562463-23-000022.htm

First Internet Bancorp (INBK) SEC Filing 10-K Annual Report for the fiscal year ending Saturday, December 31, 2022

SEC Filings

INBK Valuations

INBK Annual Reports

INBK Quarterly Reports

INBK Corporate News