EX-99.1 2 inbk-1q2022xex991.htm EX-99.1 Document




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First Internet Bancorp Reports First Quarter 2022 Results

Highlights for the first quarter include:

•Quarterly net income of $11.2 million, compared to $12.5 million for the fourth quarter of 2021 and $10.5 million for the first quarter of 2021

•Quarterly diluted earnings per share of $1.14, compared to $1.25 for the fourth quarter of 2021 and $1.05 for the first quarter of 2021

•Quarterly adjusted net income of $12.0 million, or $1.22 per diluted share, when excluding nonrecurring consulting fees and acquisition-related expenses

•Total quarterly revenue of $32.6 million, a 4.4% increase from the fourth quarter of 2021 and a 12.7% increase from the first quarter of 2021

•Net interest margin and fully-taxable equivalent net interest margin increased 26 basis points (“bps”) from the fourth quarter of 2021 to 2.56% and 2.69%, respectively

•Repurchased 103,703 shares at an average price of $49.35

Fishers, Indiana, April 20, 2022 – First Internet Bancorp (the “Company”) (Nasdaq: INBK), the parent company of First Internet Bank (the “Bank”), announced today financial and operational results for the first quarter ended March 31, 2022. Net income for the first quarter of 2022 was $11.2 million, or $1.14 diluted earnings per share. This compares to net income of $12.5 million, or $1.25 diluted earnings per share, for the fourth quarter of 2021, and net income of $10.5 million, or $1.05 diluted earnings per share, for the first quarter of 2021.

“We produced solid earnings and positive momentum to start 2022, driven by production in our franchise finance business, further success in driving lower cost deposits and continued excellent credit quality,” said David Becker, Chairman and Chief Executive Officer. “Pipelines in SBA and other key lines of business grew during the quarter, leaving us well-positioned to capitalize on loan growth opportunities for the year ahead.

“We also made significant progress with our Fintech initiatives, establishing our first Banking-as-a-Service deposit relationship during the quarter. We are engaged in a number of discussions with Fintechs to provide deposit and payments services as well as supplement our small business lending






and consumer lending platforms, all of which we believe will drive stronger earnings and profitability while advancing our position as a premier technology-forward digital financial services provider.

“We are still waiting on certain regulatory approvals required to complete our acquisition of First Century and, as a result, are in discussions with First Century to extend our outside date to close the transaction. We hope that closing can occur next month,” Mr. Becker added.

Net Interest Income and Net Interest Margin
Net interest income for the first quarter of 2022 was $25.8 million, compared to $23.5 million for the fourth quarter of 2021, and $20.5 million for the first quarter of 2021. On a fully-taxable equivalent basis, net interest income for the first quarter of 2022 was $27.1 million, compared to $24.9 million for the fourth quarter of 2021, and $21.9 million for the first quarter of 2021. Excluding the impact of tax refund advance loan fees, adjusted net interest income on a fully-taxable equivalent basis for the first quarter of 2022 was $24.2 million.

Total interest income for the first quarter of 2022 was $36.0 million, an increase of 5.4% compared to the fourth quarter of 2021, and an increase of 8.3% compared to the first quarter of 2021. On a fully-taxable equivalent basis, total interest income for the first quarter of 2022 was $37.3 million, an increase of 5.1% compared to the fourth quarter of 2021, and an increase of 7.8% compared to the first quarter of 2021. The increase in total interest income compared to the fourth quarter of 2021 was driven primarily by the recognition of $2.9 million of income from tax refund advance loans, partially offset by lower loan fees. The yield on average interest-earning assets for the first quarter of 2022 increased to 3.58% from 3.34% in the linked quarter due primarily to the increase in loan yields and, to a lesser extent, a 25 bp increase in the average yield on securities. Compared to the linked quarter, average loan balances increased $29.0 million, or 1.0%, and the average balance of other earning assets increased $24.3 million, or 5.6%, while the average balance of securities decreased $28.9 million, or 4.3%.

Total interest expense for the first quarter of 2022 was $10.3 million, a decrease of 3.8% compared to the fourth quarter of 2021, and a decrease of 19.4% compared to the first quarter of 2021. The decrease in total interest expense compared to the linked quarter was due primarily to a 3 bp decline in the cost of interest-bearing deposits.

During the first quarter of 2022, the average balance of interest-bearing demand deposits increased $108.0 million, or 51.4%, compared to the fourth quarter of 2021 and the cost of these deposits increased 22 bps. The increase in the average balance and the cost of these deposits was due primarily to approximately $100 million in deposits with a contractual term of five years and a fixed rate of 1.15% pursuant to a new customer relationship. Additionally, the Company generated $50.0 million of new Banking-as-a-Service (“BaaS”) deposits during the quarter at a cost of 0.20%. Aside from these two new deposit relationships, the balance and cost of non-maturity deposits remained relatively stable compared to the linked quarter while the average balance and cost of certificates and brokered deposits decreased by $79.2 million and 6 bps, respectively.

Net interest margin (“NIM”) improved to 2.56% for the first quarter of 2022, up from 2.30% for the fourth quarter of 2021 and 2.04% for the first quarter of 2021. Fully-taxable equivalent NIM (“FTE NIM”) increased by 26 bps to 2.69% for the first quarter of 2022, up from 2.43% for the fourth quarter of 2021 and 2.18% for the first quarter of 2021. Excluding the impact of income from tax refund advance loans, adjusted FTE NIM was 2.41%, down 2 bps from the prior quarter. The slight decrease






in adjusted FTE NIM compared to the linked quarter was driven primarily by a decrease in loan fees, partially offset by the effect of higher yields on securities and lower interest-bearing deposit costs.

Noninterest Income
Noninterest income for the first quarter of 2022 was $6.8 million, compared to $7.7 million for the fourth quarter of 2021 and $8.4 million for the first quarter of 2021. The decrease compared to the fourth quarter of 2021 was driven primarily by lower revenues from mortgage banking activities and a decrease in gain on sale of loans. Mortgage banking revenue totaled $1.9 million for the first quarter of 2022, down $0.9 million from the linked quarter due to a decrease in interest rate locks, sold loan volume and margins. Gain on sale of loans totaled $3.8 million for the quarter and included $3.5 million of gains on the sale of U.S. Small Business Administration (“SBA”) 7(a) guaranteed loans, which increased compared to the linked quarter, and a $0.4 million gain on the sale of $14.4 million of single tenant lease financing loans.

Noninterest Expense
Noninterest expense for the first quarter of 2022 was $18.8 million, compared to $17.0 million for the fourth quarter of 2021 and $15.3 million for the first quarter of 2021. The increase of $1.8 million, or 10.8%, compared to the fourth quarter of 2021 was due primarily to higher loan expenses, consulting and professional fees, premises and equipment and other expense, partially offset by a decrease in salaries and employee benefits. The increase in loan expenses was driven primarily by servicing fees related to tax refund advance loans. The increase in consulting and professional fees was due primarily to $0.9 million of nonrecurring consulting fees and $0.2 million of acquisition-related expenses, partially offset by lower third party loan review fees than what were incurred in the linked quarter. The increase in premises and equipment was primarily related to costs associated with the Company’s new corporate headquarters, partially offset by a $0.5 million IT termination fee incurred in the fourth quarter of 2021. The lower salaries and employee benefits expense was due mainly to lower incentive compensation in the Company’s small business lending and mortgage banking divisions and lower medical claims expense, partially offset by higher employee benefits costs due to annual resets.

Income Taxes
The Company reported an income tax expense of $1.8 million for the first quarter of 2022 and an effective tax rate of 13.8%, compared to an income tax expense of $2.0 million and an effective tax rate of 13.8% for the fourth quarter of 2021 and an income tax expense of $1.9 million and an effective tax rate of 15.1% for the first quarter of 2021.

Loans and Credit Quality
Total loans as of March 31, 2022 were $2.9 billion, a decrease of $6.9 million, or 0.2%, compared to December 31, 2021, and a decrease of $177.9 million, or 5.8%, compared to March 31, 2021. Total commercial loan balances were $2.3 billion as of March 31, 2022, a decrease of $23.8 million, or 1.0%, compared to December 31, 2021 and a decrease of $179.7 million, or 7.1%, compared to March 31, 2021. Compared to the linked quarter, the decline in commercial loan balances was driven primarily by net payoffs in healthcare finance, small business lending, owner-occupied commercial real estate 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, investor commercial real estate and commercial and industrial loan balances.







Total consumer loan balances were $488.8 million as of March 31, 2022, an increase of $18.8 million, or 4.0%, compared to December 31, 2021 and an increase of $10.5 million, or 2.2%, compared to March 31, 2021. The increase compared to the linked quarter was due to higher balances in the residential mortgage, recreational vehicles and trailers loan portfolios as well as the remaining outstanding balance of tax refund advance loans originated during the first quarter of 2022.

Total delinquencies 30 days or more past due decreased to 0.03% of total loans as of March 31, 2022, down from 0.04% as of December 31, 2021 and down from 0.24% as of March 31, 2021. Overall credit quality remained strong as nonperforming loans to total loans was 0.25% as of March 31, 2022, compared to 0.26% at December 31, 2021 and 0.48% as of March 31, 2021.

The allowance for loan losses as a percentage of total loans was 0.98% as of March 31, 2022, both in total and when excluding PPP loans, compared to 0.96% and 0.97%, respectively, as of December 31, 2021 and 1.00% and 1.02%, respectively, as of March 31, 2021.

Net charge-offs of $0.4 million were recognized during the first quarter of 2022, resulting in net charge-offs to average loans of 0.05%, compared to net recoveries to average loans of 0.01% for the fourth quarter of 2021 and net charge-offs to average loans of 0.02% for the first quarter of 2021. Excluding $1.5 million of net charge-offs related to tax refund advance loans, net recoveries of $1.1 million were recognized during the first quarter of 2022, resulting in net recoveries to average loans of 0.16%.

The provision for loan losses in the first quarter of 2022 was $0.8 million, compared to a benefit of $0.2 million for the fourth quarter of 2021 and a provision of $1.3 million for the first quarter of 2021. The provision for the first quarter of 2022 was driven by the provision related to tax refund advance loans, which totaled $1.8 million, and, to a lesser extent, adjustments to qualitative factors that increased the overall allowance as a percentage of loans. This was partially offset by a $1.2 million recovery on a single tenant lease financing relationship that previously had been partially charged-off with the remaining balance transferred to other real estate owned. Excluding the provision related to tax refund advance loans, the Company recognized a benefit of $1.1 million for the first quarter of 2022.

Capital
As of March 31, 2022, total shareholders’ equity was $374.7 million, a decrease of $5.7 million, or 1.5%, compared to December 31, 2021, due primarily to an increase in accumulated other comprehensive loss resulting from a decline in the value of the available-for-sale securities portfolio resulting from the rapid rise in interest rates, as well as stock repurchase activity, during the quarter. This was partially offset by the net income earned during the quarter as well as an increase in the value of interest rate swaps classified as cash flow hedges. Book value per common share decreased to $38.69 as of March 31, 2022, down from $38.99 as of December 31, 2021 and up from $35.07 as of March 31, 2021. Tangible book value per share decreased to $38.21, down from $38.51 and up from $34.60, each as of the same reference dates.

In connection with its previously announced stock repurchase program, the Company repurchased 103,703 shares of its common stock during the first quarter of 2022 at an average price of $49.35 per share. Including shares repurchased during the fourth quarter of 2021, the Company has repurchased a total of 203,703 shares at an average price of $46.90 per share under the program through March 31, 2022.







The following table presents the Company’s and the Bank’s regulatory and other capital ratios as of March 31, 2022.
As of March 31, 2022
CompanyBank
Total shareholders’ equity to assets 8.87%10.18%
Tangible common equity to tangible assets 1
8.77%10.08%
Tier 1 leverage ratio 2
9.26%10.57%
Common equity tier 1 capital ratio 2
13.16%15.03%
Tier 1 capital ratio 2
13.16%15.03%
Total risk-based capital ratio 2
17.62%15.99%
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, April 21, 2022 to discuss its quarterly financial results. The call can be accessed via telephone at (844) 200-6205; access code: 139463. A recorded replay can be accessed through May 21, 2022 by dialing (866) 813-9403; access code: 231818.

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 March 31, 2022. 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, franchise finance, 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 contains 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 “ahead,” “anticipate,” “believe,” “capitalize,” “confidence in,” “continue,” “could,” “designed,” “effort,” “estimate,” “expect,” “growth,” “help,” “hope,” “intend,” “looking forward,” “may,” “opportunities,” “optimistic,” “pending,” “plan,” “position,” “preliminary,” “remain,” “should,” “waiting on,” “well-positioned,” “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, adjusted total interest income, 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, (benefit) provision for loan losses, excluding tax refund advance loans, average loans, excluding tax refund advance loans, net (recoveries) charge-offs to average loans, excluding tax refund advance loans, allowance for loan losses to loans, excluding PPP loans, 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, adjusted effective income tax rate, income before income taxes, excluding tax refund advance loans, income tax provision, excluding tax refund advance loans and net income, excluding tax refund advance 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.”







Contact Information:
Investors/AnalystsMedia
Paula DeemerNicole Lorch
Director of Corporate AdministrationPresident & Chief Operating Officer
(317) 428-4628(317) 532-7906
investors@firstib.comnlorch@firstib.com






First Internet Bancorp
Summary Financial Information (unaudited)
Dollar amounts in thousands, except per share data
Three Months Ended
March 31,
2022		December 31, 2021March 31,
2021
Net income$11,209 12,478 $10,450 
Per share and share information
Earnings per share - basic$1.14 $1.26 $1.06 
Earnings per share - diluted1.14 1.25 1.05 
Dividends declared per share0.06 0.06 0.06 
Book value per common share38.69 38.99 35.07 
Tangible book value per common share 1
38.21 38.51 34.60 
Common shares outstanding9,683,727 9,754,455 9,823,831 
Average common shares outstanding:
Basic9,790,122 9,903,856 9,899,230 
Diluted9,870,394 9,989,951 9,963,036 
Performance ratios
Return on average assets1.08 %1.19 %1.02 %
Return on average shareholders' equity11.94 %13.14 %12.61 %
Return on average tangible common equity 1
12.09 %13.30 %12.79 %
Net interest margin2.56 %2.30 %2.04 %
Net interest margin - FTE 1,2
2.69 %2.43 %2.18 %
Capital ratios 3
Total shareholders' equity to assets8.87 %9.03 %8.23 %
Tangible common equity to tangible assets 1
8.77 %8.93 %8.12 %
Tier 1 leverage ratio9.26 %9.22 %8.46 %
Common equity tier 1 capital ratio13.16 %12.92 %11.81 %
Tier 1 capital ratio13.16 %12.92 %11.81 %
Total risk-based capital ratio17.62 %17.36 %15.18 %
Asset quality
Nonperforming loans$7,084 $7,401 $14,649 
Nonperforming assets7,085 8,618 14,678 
Nonperforming loans to loans0.25 %0.26 %0.48 %
Nonperforming assets to total assets0.17 %0.20 %0.35 %
Allowance for loan losses to:
Loans0.98 %0.96 %1.00 %
Loans, excluding PPP loans 1
0.98 %0.97 %1.02 %
Nonperforming loans398.8 %376.2 %209.2 %
Net charge-offs (recoveries) to average loans0.05 %(0.01 %)0.02 %
Average balance sheet information
Loans$2,947,924 $2,914,858 $3,047,915 
Total securities648,728 677,580 548,429 
Other earning assets455,960 431,621 446,045 
Total interest-earning assets4,080,725 4,056,254 4,073,604 
Total assets4,214,918 4,177,578 4,173,273 
Noninterest-bearing deposits112,248 113,887 90,764 
Interest-bearing deposits3,071,420 3,032,435 3,115,987 
Total deposits3,183,668 3,146,322 3,206,751 
Shareholders' equity380,767 376,832 335,968 

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, 2021)
Dollar amounts in thousands
March 31,
2022		December 31, 2021March 31,
2021
Assets
Cash and due from banks$20,976 $7,492 $4,440 
Interest-bearing deposits496,573 435,468 411,765 
Securities available-for-sale, at fair value465,288 603,044 462,376 
Securities held-to-maturity, at amortized cost163,370 59,565 68,190 
Loans held-for-sale33,991 47,745 30,235 
Loans2,880,780 2,887,662 3,058,694 
Allowance for loan losses(28,251)(27,841)(30,642)
Net loans2,852,529 2,859,821 3,028,052 
Accrued interest receivable15,263 16,037 16,433 
Federal Home Loan Bank of Indianapolis stock25,219 25,650 25,650 
Cash surrender value of bank-owned life insurance39,133 38,900 38,185 
Premises and equipment, net68,632 59,842 42,381 
Goodwill4,687 4,687 4,687 
Servicing asset5,249 4,702 3,817 
Other real estate owned— 1,188 — 
Accrued income and other assets34,487 46,853 52,359 
Total assets$4,225,397 $4,210,994 $4,188,570 
Liabilities
Noninterest-bearing deposits$119,196 $117,531 $100,700 
Interest-bearing deposits3,098,783 3,061,428 3,116,903 
Total deposits3,217,979 3,178,959 3,217,603 
Advances from Federal Home Loan Bank514,923 514,922 514,917 
Subordinated debt104,306 104,231 69,794 
Accrued interest payable1,532 2,018 1,418 
Accrued expenses and other liabilities12,002 30,526 40,272 
Total liabilities3,850,742 3,830,656 3,844,004 
Shareholders' equity
Voting common stock214,473 218,946 221,911 
Retained earnings183,043 172,431 136,575 
Accumulated other comprehensive loss(22,861)(11,039)(13,920)
Total shareholders' equity374,655 380,338 344,566 
Total liabilities and shareholders' equity$4,225,397 $4,210,994 $4,188,570 






First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited)
Dollar amounts in thousands, except per share data
Three Months Ended
March 31,
2022		December 31, 2021March 31,
2021
Interest income
Loans$33,188 $31,621 $30,885 
Securities - taxable2,221 1,973 1,779 
Securities - non-taxable249 236 281 
Other earning assets376 362 335 
Total interest income36,034 34,192 33,280 
Interest expense
Deposits6,097 6,399 8,628 
Other borrowed funds4,187 4,288 4,127 
Total interest expense10,284 10,687 12,755 
Net interest income25,750 23,505 20,525 
Provision (benefit) for loan losses791 (238)1,276 
Net interest income after provision (benefit)
for loan losses		24,959 23,743 19,249 
Noninterest income
Service charges and fees316 292 266 
Loan servicing revenue585 544 422 
Loan servicing asset revaluation(297)(400)(155)
Mortgage banking activities1,873 2,776 5,750 
Gain on sale of loans3,845 4,137 1,723 
Other498 345 369 
Total noninterest income6,820 7,694 8,375 
Noninterest expense
Salaries and employee benefits9,878 10,183 9,492 
Marketing, advertising and promotion756 896 680 
Consulting and professional fees1,925 1,262 986 
Data processing449 425 462 
Loan expenses1,582 654 534 
Premises and equipment2,540 2,188 1,601 
Deposit insurance premium281 283 425 
Other1,369 1,064 1,137 
Total noninterest expense18,780 16,955 15,317 
Income before income taxes12,999 14,482 12,307 
Income tax provision1,790 2,004 1,857 
Net income$11,209 $12,478 $10,450 
Per common share data
Earnings per share - basic$1.14 $1.26 $1.06 
Earnings per share - diluted$1.14 $1.25 $1.05 
Dividends declared per share$0.06 $0.06 $0.06 

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
March 31, 2022December 31, 2021March 31, 2021
Average BalanceInterest / DividendsYield / CostAverage BalanceInterest / DividendsYield / CostAverage BalanceInterest / DividendsYield / Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale 1
$2,976,037 $33,188 4.52 %$2,947,053 $31,621 4.26 %$3,079,130 $30,885 4.07 %
Securities - taxable567,776 2,221 1.59 %595,024 1,973 1.32 %461,300 1,779 1.56 %
Securities - non-taxable80,952 249 1.25 %82,556 236 1.13 %87,129 281 1.31 %
Other earning assets455,960 376 0.33 %431,621 362 0.33 %446,045 335 0.30 %
Total interest-earning assets4,080,725 36,034 3.58 %4,056,254 34,192 3.34 %4,073,604 33,280 3.31 %
Allowance for loan losses(27,974)(27,946)(29,884)
Noninterest-earning assets162,167 149,270 129,553 
Total assets$4,214,918 $4,177,578 $4,173,273 
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits$318,281 $412 0.52 %$210,283 $158 0.30 %$180,746 $133 0.30 %
Savings accounts60,616 53 0.35 %63,575 58 0.36 %46,035 40 0.35 %
Money market accounts1,454,436 1,503 0.42 %1,453,447 1,507 0.41 %1,369,626 1,391 0.41 %
BaaS - brokered deposits12,111 6 0.20 %— — 0.00 %— — 0.00 %
Certificates and brokered deposits1,225,976 4,123 1.36 %1,305,130 4,676 1.42 %1,519,580 7,064 1.89 %
Total interest-bearing deposits3,071,420 6,097 0.81 %3,032,435 6,399 0.84 %3,115,987 8,628 1.12 %
Other borrowed funds619,191 4,187 2.74 %619,115 4,288 2.75 %583,780 4,127 2.87 %
Total interest-bearing liabilities3,690,611 10,284 1.13 %3,651,550 10,687 1.16 %3,699,767 12,755 1.40 %
Noninterest-bearing deposits112,248 113,887 90,764 
Other noninterest-bearing liabilities31,292 35,309 46,774 
Total liabilities3,834,151 3,800,746 3,837,305 
Shareholders' equity380,767 376,832 335,968 
Total liabilities and shareholders' equity$4,214,918 $4,177,578 $4,173,273 
Net interest income$25,750 $23,505 $20,525 
Interest rate spread2.45 %2.18 %1.91 %
Net interest margin2.56 %2.30 %2.04 %
Net interest margin - FTE 2,3
2.69 %2.43 %2.18 %
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
March 31, 2022December 31, 2021March 31, 2021
AmountPercentAmountPercentAmountPercent
Commercial loans
Commercial and industrial$99,808 3.5 %$96,008 3.3 %$71,835 2.3 %
Owner-occupied commercial real estate56,752 2.0 %66,732 2.3 %87,930 2.9 %
Investor commercial real estate34,627 1.2 %28,019 1.0 %14,832 0.5 %
Construction149,662 5.2 %136,619 4.7 %123,483 4.0 %
Single tenant lease financing852,519 29.6 %865,854 30.0 %941,322 30.8 %
Public finance587,817 20.4 %592,665 20.5 %637,600 20.8 %
Healthcare finance354,574 12.3 %387,852 13.4 %510,237 16.8 %
Small business lending 97,040 3.4 %108,666 3.8 %132,490 4.3 %
Franchise finance107,246 3.7 %81,448 2.8 %— — %
Total commercial loans2,340,045 81.3 %2,363,863 81.8 %2,519,729 82.4 %
Consumer loans
Residential mortgage191,153 6.6 %186,770 6.5 %190,148 6.2 %
Home equity18,100 0.6 %17,665 0.6 %17,949 0.6 %
Trailers148,870 5.2 %146,267 5.1 %143,454 4.7 %
Recreational vehicles93,458 3.2 %90,654 3.1 %92,221 3.0 %
Other consumer loans28,002 1.0 %28,557 1.0 %34,534 1.1 %
Tax refund advance loans9,177 0.3 %— 0.0 %— 0.0 %
Total consumer loans488,760 16.9 %469,913 16.3 %478,306 15.6 %
Net deferred loan fees, premiums, discounts and other 1
51,975 1.8 %53,886 1.9 %60,659 2.0 %
Total loans$2,880,780 100.0 %$2,887,662 100.0 %$3,058,694 100.0 %
March 31, 2022December 31, 2021March 31, 2021
AmountPercentAmountPercentAmountPercent
Deposits
Noninterest-bearing deposits$119,197 3.7 %$117,532 3.7 %$100,700 3.1 %
Interest-bearing demand deposits334,723 10.4 %247,966 7.8 %186,015 5.8 %
Savings accounts66,320 2.1 %59,998 1.9 %51,251 1.6 %
Money market accounts1,475,857 45.8 %1,483,936 46.7 %1,397,449 43.4 %
BaaS - brokered deposits50,006 1.6 %— 0.0 %— 0.0 %
Certificates of deposits889,789 27.6 %970,107 30.5 %1,174,764 36.5 %
Brokered deposits 282,087 8.8 %299,420 9.4 %307,424 9.6 %
Total deposits$3,217,979 100.0 %$3,178,959 100.0 %$3,217,603 100.0 %

1 Includes carrying value adjustments of $36.4 million, $37.5 million and $41.6 million related to terminated interest rate swaps associated with public finance loans as of March 31, 2022, December 31, 2021 and March 31, 2021, respectively.







First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
Three Months Ended
March 31,
2022		December 31,
2021		March 31,
2021
Total equity - GAAP$374,655 $380,338 $344,566 
Adjustments:
           Goodwill(4,687)(4,687)(4,687)
Tangible common equity$369,968 369968000$375,651 $339,879 
Total assets - GAAP$4,225,397 $4,210,994 $4,188,570 
Adjustments:
           Goodwill(4,687)(4,687)(4,687)
Tangible assets$4,220,710 $4,206,307 $4,183,883 
Common shares outstanding9,683,727 9,754,455 9,823,831 
Book value per common share$38.69 $38.99 $35.07 
Effect of goodwill(0.48)(0.48)(0.47)
Tangible book value per common share$38.21 $38.51 $34.60 
Total shareholders' equity to assets8.87 %9.03 %8.23 %
Effect of goodwill(0.10 %)(0.10 %)(0.11 %)
Tangible common equity to tangible assets8.77 %8.93 %8.12 %
Total average equity - GAAP$380,767 $376,832 $335,968 
Adjustments:
           Average goodwill(4,687)(4,687)(4,687)
Average tangible common equity$376,080 $372,145 $331,281 
Return on average shareholders' equity11.94 %13.14 %12.61 %
Effect of goodwill0.15 %0.16 %0.18 %
Return on average tangible common equity12.09 %13.30 %12.79 %
Total interest income$36,034 $34,192 $33,280 
Adjustments:
Fully-taxable equivalent adjustments 1
1,314 1,348 1,356 
Total interest income - FTE$37,348 $35,540 $34,636 
Total interest income - FTE$37,348 $35,540 $34,636 
Adjustments:
          Income from tax refund advance loans(2,864)— — 
Total interest income - FTE$34,484 $35,540 $34,636 
Net interest income$25,750 $23,505 $20,525 
Adjustments:
Fully-taxable equivalent adjustments 1
1,314 1,348 1,356 
Net interest income - FTE$27,064 $24,853 $21,881 
Net interest income$25,750 $23,505 $20,525 
Adjustments:
Income from tax refund advance loans(2,864)— — 
Adjusted net interest income$22,886 $23,505 $20,525 
Net interest income$25,750 $23,505 $20,525 
Adjustments:
Fully-taxable equivalent adjustments 1
1,314 1,348 1,356 
Income from tax refund advance loans(2,864)— — 
Adjusted net interest income - FTE$24,200 $24,853 $21,881 
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
March 31,
2022		December 31,
2021		March 31,
2021
Net interest margin2.56 %2.30 %2.04 %
Effect of fully-taxable equivalent adjustments 1
0.13 %0.13 %0.14 %
Net interest margin - FTE2.69 %2.43 %2.18 %
Net interest margin2.56 %2.30 %2.04 %
Effect of income from tax refund advance loans(0.28 %)0.00 %0.00 %
Adjusted net interest margin2.28 %2.30 %2.04 %
Net interest margin2.56 %2.30 %2.04 %
Effect of fully-taxable equivalent adjustments 1
0.13 %0.13 %0.14 %
Effect of income from tax refund advance loans(0.28 %)0.00 %0.00 %
Adjusted net interest margin - FTE2.41 %2.43 %2.18 %
Provision (benefit) for loan losses$791 $(238)$1,276 
Adjustments:
    Provision for tax refund advance loans losses(1,842)— — 
(Benefit) provision for loan losses, excluding tax refund advance loans$(1,051)$(238)$1,276 
Average loans$2,947,924 $2,914,858 $3,047,915 
Adjustments:
    Average tax refund advance loans(60,499)— — 
Average loans, excluding tax refund advance loans$2,887,425 $2,914,858 $3,047,915 
Net charge-offs (recoveries) to average loans0.05 %(0.01 %)0.02 %
Adjustments:
    Effect of tax refund advance lending net charge-offs to average loans(0.21 %)0.00 %0.00 %
Net (recoveries) charge-offs to average loans, excluding tax refund advance loans(0.16 %)(0.01 %)0.02 %
Allowance for loan losses$28,251 $27,841 $30,642 
Loans$2,880,780 $2,887,662 $3,058,694 
Adjustments:
     PPP loans(1,003)(3,152)(53,365)
Loans, excluding PPP loans$2,879,777 $2,884,510 $3,005,329 
Allowance for loan losses to loans0.98 %0.96 %1.00 %
Effect of PPP loans0.00 %0.01 %0.02 %
Allowance for loan losses to loans, excluding PPP loans0.98 %0.97 %1.02 %
1Assuming a 21% tax rate






First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
Three Months Ended
March 31,
2022		December 31,
2021		March 31,
2021
Noninterest expense - GAAP$18,780 $16,955 $15,317 
Adjustments:
     Acquisition-related expenses(170)(163)— 
     IT termination fee— (475)— 
     Nonrecurring consulting fee(875)— — 
Adjusted noninterest expense$17,735 $16,317 $15,317 
Income before income taxes - GAAP$12,999 $14,482 $12,307 
Adjustments:
     Acquisition-related expenses170 163 — 
     IT termination fee— 475 — 
     Nonrecurring consulting fee875 — — 
Adjusted income before income taxes$14,044 $15,120 $12,307 
Income tax provision - GAAP$1,790 $2,004 $1,857 
Adjustments:
    Acquisition-related expenses36 34 — 
    IT termination fee— 100 — 
    Nonrecurring consulting fee184 — — 
Adjusted income tax provision$2,010 $2,138 $1,857 
Net income - GAAP$11,209 $12,478 $10,450 
Adjustments:
    Acquisition-related expenses134 129 — 
    IT termination fee— 375 — 
    Nonrecurring consulting fee691 — — 
Adjusted net income$12,034 $12,982 $10,450 
Diluted average common shares outstanding9,870,394 9,989,951 9,963,036 
Diluted earnings per share - GAAP$1.14 $1.25 $1.05 
Adjustments:
    Effect of acquisition-related expenses0.01 0.01 — 
    Effect of IT termination fee — 0.04 — 
    Effect of nonrecurring consulting fee0.07 — — 
Adjusted diluted earnings per share$1.22 $1.30 $1.05 
Return on average assets1.08 %1.12 %1.02 %
    Effect of acquisition-related expenses0.01 %0.00 %0.00 %
    Effect of IT termination fee0.00 %0.04 %0.00 %
    Effect of nonrecurring consulting fee0.07 %0.00 %0.00 %
Adjusted return on average assets1.16 %1.16 %1.02 %






First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
Three Months Ended
March 31,
2022		December 31,
2021		March 31,
2021
Return on average shareholders' equity11.94 %13.14 %12.61 %
    Effect of acquisition-related expenses0.14 %0.14 %0.00 %
    Effect of IT termination fee0.00 %0.39 %0.00 %
    Effect of nonrecurring consulting fee0.74 %0.00 %0.00 %
Adjusted return on average shareholders' equity12.82 %13.67 %12.61 %
Return on average tangible common equity12.09 %13.30 %12.79 %
    Effect of acquisition-related expenses0.14 %0.14 %0.00 %
    Effect of IT termination fee0.00 %0.40 %0.00 %
    Effect of nonrecurring consulting fee0.75 %0.00 %0.00 %
Adjusted return on average tangible common equity12.98 %13.84 %12.79 %
Effective income tax rate13.8 %13.8 %15.1 %
    Effect of acquisition-related expenses0.3 %0.1 %0.0 %
    Effect of IT termination fee0.0 %0.2 %0.0 %
    Effect of nonrecurring consulting fee1.3 %0.0 %0.0 %
Adjusted effective income tax rate15.4 %14.1 %15.1 %
Income before income taxes - GAAP$12,999 $14,482 $12,307 
Adjustments:
    Income from tax refund advance lending(2,864)— — 
    Provision for tax refund advance lending losses1,842 — — 
    Tax refund advance lending servicing fee921 — — 
Income, excluding tax refund advance loans$12,898 $14,482 $12,307 
Income tax provision - GAAP$1,790 $2,004 $1,857 
Adjustments:
    Income from tax refund advance lending(601)— — 
    Provision for tax refund advance lending losses387 — — 
    Tax refund advance lending servicing fee193 — — 
Income tax provision, excluding tax refund advance loans$1,769 $2,004 $1,857 
Net Income - GAAP$11,209 $12,478 $10,450 
Adjustments:
    Income from tax refund advance lending(2,263)— — 
    Provision for tax refund advance lending losses1,455 — — 
    Tax refund advance lending servicing fee728 — — 
Net income, excluding tax refund advance loans$11,129 $12,478 $10,450