First Internet Bancorp (NASDAQ: INBK), the parent company of First Internet Bank ( www.firstib.com), a premier nationwide provider of online retail banking services and commercial banking services, announced today financial and operational results for the third quarter 2014.

Third quarter net income was $1.3 million and diluted earnings per share were $0.28. This compares with second quarter net income of $1.0 million and diluted earnings per share of $0.22 and third quarter 2013 net income of $0.7 million and diluted earnings per share of $0.25.
  • Diluted earnings per share increased $0.06, or 27.3%, compared to the linked quarter
    • Excluding items discussed in the paragraph below, diluted earnings per share increased $0.03, or 14.0%, compared to the linked quarter
    • Net interest income increased $0.3 million, or 5.6%, quarter-over-quarter and $1.3 million, or 30.3%, compared to the third quarter 2013
    • Mortgage banking revenue increased $0.4 million, or 33.3%, compared to the prior quarter
  • Total loan growth of $64.3 million, or 10.2%, compared to the linked quarter and $256.3 million, or 58.3%, compared to September 30, 2013
    • Strong performance in credit tenant lease financing with balances increasing 15.5% compared to the prior quarter and 149.3% year-over-year
    • Continued growth in C&I / owner-occupied CRE, increasing on a combined basis 5.2% compared to June 30, 2014 and 65.7% compared to September 30, 2013
    • Excess balance sheet capacity used to acquire high quality mortgage assets
  • Net interest margin improved 7 bps to 2.68% compared to the linked quarter
    • Yield on interest-earning assets improved 6 bps driven by strong loan growth
    • Enhanced by redeployment of proceeds from investment portfolio restructuring to support loan growth
  • Capital levels continue to support strong loan growth
    • Tangible common equity to tangible assets of 9.77%
    • Tier 1 capital ratio of 13.22%
    • Total risk-based capital ratio of 14.45%
  • Improved asset quality as nonperforming loans declined significantly during the quarter
    • Nonperforming loans declined $0.8 million, or 66.0%, with nonperforming loans to total loans declining to 0.06% from 0.19% for the prior quarter
    • The allowance for loan losses to total nonperforming loans increased to 1,366.0% from 436.7% for the linked quarter

During the quarter, the Company recognized a pre-tax recovery of $0.5 million related to the resolution of a nonaccrual commercial real estate credit that experienced significant charge-offs in prior periods. The Company also recognized pre-tax salaries and benefits expenses of $0.1 million associated with staffing-related changes as well as pre-tax gains of $0.1 million resulting from the sales of investment securities. In the aggregate, these items had a positive impact on pre-tax earnings of $0.4 million or $0.05 per diluted share after taxes. During the second quarter, the Company recognized pre-tax gains of $0.1 million resulting from the sales of investment securities, which had a positive impact of $0.02 per diluted share after taxes.

David Becker, Chairman and Chief Executive Officer, commented, “We were very pleased with our performance for the quarter as net interest income continued to grow and our mortgage banking group posted its best results over the last 12 months. Strong revenue growth combined with disciplined expense control drove positive operating leverage and solid growth in earnings.

“Our commercial lending teams had another strong quarter led by outstanding performance in credit tenant lease financing. A significant portion of the production did not close until late in the quarter, so the impact on average loan balances for the quarter was minimal but does leave us well positioned to continue our trend of strong net interest income growth entering the fourth quarter. Furthermore, the pipeline of commercial originations at the end of the third quarter was up substantially over levels as of June 30, 2014.

“We remain committed to driving continued strong and diversified loan growth while focusing on improved profitability and enhanced earnings. Active balance sheet management is expected to result in an improving net interest margin as legacy higher cost funding sources are replaced with more efficient alternatives. Additionally, our strategies to diversify sources of mortgage banking revenue should provide stability, with upside potential, in noninterest income to complement our balance sheet and spread income growth. As we continue to further deploy capital and leverage our operating platform, we feel confident heading into the fourth quarter and are focused on ending the year on a positive note.”

Net Interest Income and Net Interest MarginNet interest income for the third quarter was $5.7 million compared to $5.4 million for the second quarter and $4.4 million for the third quarter 2013. Compared to the linked quarter, total interest income increased $0.3 million, or 4.4%, and total interest expense increased less than $0.1 million, or 1.6%. The increase in total interest income was driven by a $69.8 million increase, or 12.4%, in average loan balances, partially offset by a decline in the yield earned on the loan portfolio. Additionally, the impact of the loan growth was offset by a decline of $55.1 million, or 28.3%, in the average balance of the investment portfolio. The decline in investment balances was the result of continued efforts to increase the liquidity profile and reduce the interest rate risk and duration of the portfolio. The increase in expense during the quarter was due primarily to an increase of 1.3% in average interest-bearing deposits.

Net interest margin was 2.68% for the third quarter compared to 2.61% for the second quarter and 2.59% for the third quarter 2013. Compared to the prior quarter, the yield on interest-earning assets increased 6 bps to 3.76% due to the migration of interest-earning assets from lower-yielding investment securities to higher-yielding commercial and residential mortgage loans. The cost of interest-bearing liabilities during the quarter remained consistent with the prior quarter at 1.21%.

Noninterest IncomeNoninterest income for the third quarter was $1.9 million compared to $1.6 million for the second quarter and $1.6 million for the third quarter 2013. The increase of $0.3 million, or 19.8%, compared to the linked quarter was driven by an increase of $0.4 million, or 33.3%, in mortgage banking revenue. Over the last 12 months, the Company has increased its sales and marketing efforts related to purchase mortgage business and has added sales personnel since the second quarter following a restructuring of its mortgage operations earlier in the year. Furthermore, it recently launched an Indianapolis-based origination effort to complement its nationwide online origination platform. As a result, origination activity has increased throughout the year with third quarter originations increasing 23.2% compared to the second quarter.

Noninterest ExpenseNoninterest expense for the third quarter was $5.8 million compared to $5.6 million for the second quarter and $5.1 million for the third quarter 2013. The increase of $0.2 million, or 4.0%, was due to higher salaries and employee benefits and loan expenses, offset by lower premises and equipment costs and consulting and professional fees. Excluding the salaries and benefits expenses associated with staffing-related changes discussed above, total noninterest expenses increased $0.1 million, or 1.4%.

Income TaxesIncome tax expense was $0.7 million for the third quarter, resulting in an effective tax rate of 34.0%, compared to $0.5 million and an effective tax rate of 35.2% for the second quarter and $0.2 million and an effective tax rate of 20.4% for the third quarter 2013. The increase in the effective tax rate compared to the third quarter 2013 was due primarily to the restructuring of the investment portfolio earlier in 2014 during which the Company liquidated its entire portfolio of odd lot and long duration municipal securities.

Loans and Credit QualityTotal loans as of September 30, 2014 were $695.9 million, increasing $64.3 million, or 10.2%, compared to the second quarter and $256.3 million, or 58.3%, compared to September 30, 2013. Total commercial loans increased $23.0 million, or 8.1%, compared to the linked quarter driven by continued strong production in credit tenant lease financing as well as solid growth in the owner-occupied and investor commercial real estate portfolios. In connection with the repositioning of the investment portfolio to provide increased liquidity, the Company deployed excess balance sheet capacity to acquire approximately $48.3 million of high quality adjustable rate residential mortgage assets during the quarter to complement its organic loan growth capabilities.

Credit quality continues to remain strong as nonperforming loans to total loans receivable declined to 0.06% from 0.19% as of June 30, 2014 and 0.61% as of September 30, 2013. Additionally, nonperforming assets to total assets declined to 0.55% from 0.69% as of June 30, 2014 and 1.23% as of September 30, 2013. Compared to the linked quarter, total nonperforming loans declined $0.8 million, or 66.0%, due primarily to the resolution of a nonaccrual commercial real estate credit with a recorded value of $1.0 million. The Company recovered 100% of the unpaid principal balance, resulting in a recovery of $0.5 million which drove the negative provision of $0.1 million for the quarter.

The allowance for loan losses was $5.5 million as of September 30, 2014 compared to $5.1 million as of June 30, 2014 and $5.5 million as of September 30, 2013. The allowance as a percentage of total nonperforming loans increased to 1,366.0% as of September 30, 2014 from 436.7% as of June 30, 2014 and 204.9% as of September 30, 2013.

CapitalDuring the third quarter, total shareholders’ equity increased $0.2 million due to net income earned for the quarter, partially offset by the change in the unrealized gain/loss related to the investment portfolio and declared dividends. During the quarter, the Company’s tier 1 and total capital ratios declined to 13.22% and 14.45% from 14.03% and 15.30% as of June 30, 2014, respectively, due to an increase in risk-weighted assets resulting from the strong loan growth for the quarter and the migration of assets from investment securities to loans. Tangible common equity to tangible assets declined 64 bps during the quarter to 9.77% due to strong asset growth while tangible book value per share increased to $20.29 from $20.19 as of June 30, 2014.

About First Internet BancorpFirst Internet Bancorp is the parent company of First Internet Bank, which opened for business in 1999 as the nation’s first state-chartered, FDIC-insured institution to operate solely via the Internet. With customers in all 50 states, First Internet Bank offers consumers services including checking, savings, money market, certificates of deposit and IRA accounts as well as consumer loans, residential mortgages, residential construction loans and home equity products. For commercial clients, it provides commercial real estate loans, commercial and industrial loans, asset-based lending and treasury management services. First Internet Bank has been recognized as one of the “Best Banks to Work For” by American Banker Magazine as well as a “Top Workplace” by The Indianapolis Star. Additional information about the Company, including its products and services, is available at www.firstib.com.

Safe Harbor StatementThis press release may contain forward-looking statements with respect to the financial condition, results of operations, plans, objectives, future performance or business of the Company. Forward-looking statements are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” 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. Factors that may cause such differences include: failures of or interruptions in the communications and information systems on which we rely to conduct our business; our plans to grow our commercial real estate and commercial and industrial 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 SEC. 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 MeasuresThis 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, return on average tangible common equity and tangible common equity to tangible assets are used by the Company’s management to measure the strength of its capital and its ability to generate earnings on tangible capital invested by its shareholders. Although management believes these non-GAAP measures provide 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)

Amounts in thousands, except per share data
     
 
Three Months Ended Nine Months Ended
 
September 30, June 30, September 30, September 30, September 30,
2014 2014 2013 2014

2013
 
Net income $ 1,282 $ 977 $ 727 $ 2,859 $ 3,927
 
Per share and share information
Earnings per share - basic $ 0.29 $ 0.22 $ 0.25 $ 0.64 $ 1.36
Earnings per share - diluted 0.28 0.22 0.25 0.63 1.36
Dividends declared per share 0.06 0.06 0.06 0.18 0.16
Tangible book value per common share 20.29 20.19 19.99 20.29 19.99
Common shares outstanding 4,439,575 4,449,619 2,861,326 4,439,575 2,861,326
Average common shares outstanding:
Basic 4,497,762 4,496,219 2,890,369 4,496,228 2,888,274
Diluted 4,511,291 4,504,302 2,903,816 4,505,801 2,889,039
 
Performance ratios
Return on average assets 0.59 % 0.45 % 0.41 % 0.45 % 0.80 %
Return on average shareholders' equity 5.36 % 4.23 % 4.80 % 4.11 % 8.51 %
Return on average tangible common equity 5.64 % 4.46 % 5.20 % 4.32 % 9.21 %
Net interest margin 2.68 % 2.61 % 2.59 % 2.60 % 2.65 %
 

Capital ratios 1
Tangible common equity to tangible assets 9.77 % 10.41 % 7.79 % 9.77 % 7.79 %
Tier 1 leverage ratio 10.52 % 10.45 % 8.42 % 10.52 % 8.42 %
Tier 1 capital ratio 13.22 % 14.03 % 10.77 % 13.22 % 10.77 %
Total capital ratio 14.45 % 15.30 % 12.32 % 14.45 % 12.32 %
 
Asset quality
Nonperforming loans $ 400 $ 1,177 $ 2,664 $ 400 $ 2,664
Nonperforming assets 5,067 5,961 9,059 5,067 9,059
Nonperforming loans to loans receivable 0.06 % 0.19 % 0.61 % 0.06 % 0.61 %
Nonperforming assets to total assets 0.55 % 0.69 % 1.23 % 0.55 % 1.23 %
Allowance for loan losses to:
Loans receivable 0.79 % 0.82 % 1.26 % 0.79 % 1.26 %
Nonperforming loans 1,366.0 % 436.7 % 204.9 % 1,366.0 % 204.9 %

Net charge-offs (recoveries) to average loans receivable
(0.27 %) 0.12 % 0.01 % (0.02 %) 0.17 %
 
Average balance sheet information
Loans receivable $ 632,403 $ 562,624 $ 389,792 $ 570,751 $ 367,712
Securities available for sale 139,569 194,689 194,735 161,861 173,174
Other earning assets 38,964 49,524 48,150 63,403 40,041
Total earning assets 839,183 824,752 667,383 818,651 629,211
Total assets 868,361 862,110 700,075 849,932 658,429
Noninterest-bearing deposits 21,960 18,821 13,594 19,661 13,085
Interest-bearing deposits 718,100 708,668 584,565 702,383 545,357
Total deposits 740,060 727,489 598,159 722,044 558,442
Shareholders' equity 94,840 92,641 60,109 93,110 61,681
 

1 Regulatory capital ratios are preliminary pending filing of the Company's regulatory reports
 
       
First Internet Bancorp

Condensed Consolidated Balance Sheets (unaudited)

Amounts in thousands
   
 
September 30, June 30, September 30,
2014 2014 2013
 

Assets
Cash and due from banks $ 1,137 $ 1,926 $ 2,048
Interest-bearing demand deposits 38,470 18,718 24,281
Interest-bearing time deposits 2,000 2,000 2,500
Securities available for sale, at fair value 128,203 159,528 216,662
Loans held-for-sale 27,547 21,466 18,309
Loans receivable 695,929 631,678 439,626
Allowance for loan losses   (5,464 )   (5,140 )   (5,459 )
Net loans receivable 690,465 626,538 434,167
Accrued interest receivable 2,803 2,694 2,810
Federal Home Loan Bank of Indianapolis stock 2,943 2,943 2,943
Cash surrender value of bank-owned life insurance 12,226 12,128 11,835
Premises and equipment, net 7,075 7,133 6,742
Goodwill 4,687 4,687 4,687
Other real estate owned 4,545 4,664 5,381
Accrued income and other assets   4,782     3,682     6,153  
Total assets $ 926,883   $ 868,107   $ 738,518  
 
Liabilities
Non-interest bearing deposits $ 20,359 $ 19,065 $ 14,541
Interest-bearing deposits   717,611     725,108     622,112  
Total deposits 737,970 744,173 636,653
Advances from Federal Home Loan Bank 86,871 21,845 31,767
Subordinated debt 2,852 2,831 2,767
Accrued interest payable 82 96 81
Accrued expenses and other liabilities   4,334     4,628     5,376  
Total liabilities   832,109     773,573     676,644  
Shareholders' equity
Voting common stock 71,705 71,509 42,037
Retained earnings 23,951 22,938 21,500
Accumulated other comprehensive income (loss)   (882 )   87     (1,663 )
Total shareholders' equity   94,774     94,534     61,874  
Total liabilities and shareholders' equity $ 926,883   $ 868,107   $ 738,518  
 
           
First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited)
Amounts in thousands, except per share data
     
 
Three Months Ended Nine Months Ended
 
September 30, June 30, September 30, September 30, September 30,
2014 2014 2013 2014 2013
 
Interest income
Loans $ 7,218 $ 6,571 $ 5,170 $ 19,918 $ 15,073
Securities - taxable 684 987 771 2,421 2,063
Securities - non-taxable - - 447 58 1,146

Other earning assets
  45     54     54     195     148  
Total interest income   7,947     7,612     6,442     22,592     18,430  
Interest expense
Deposits 1,958 1,922 1,758 5,740 5,042
Other borrowed funds   316     317     329     940     904  
Total interest expense   2,274     2,239     2,087     6,680     5,946  
Net interest income 5,673 5,373 4,355 15,912 12,484
Provision (credit) for loan losses (112 ) (73 ) (57 ) (38 ) 101
Net interest income after provision          
(credit) for loan losses   5,785     5,446     4,412     15,950     12,383  
Noninterest income
Service charges and fees 179 187 177 533 515
Mortgage banking activities 1,638 1,229 1,299 3,767 7,767
Other-than-temporary impairment loss
recognized in net income - - - - (49 )
Gain (loss) on sale of securities 54 125 97 538 (69 )
Loss on asset disposals (28 ) (18 ) (34 ) (59 ) (121 )
Other   100     99     102     297     304  
Total noninterest income   1,943     1,622     1,641     5,076     8,347  
Noninterest expense
Salaries and employee benefits 3,346 3,021 2,512 9,422 7,737
Marketing, advertising and promotion 403 394 562 1,179 1,389
Consulting and professional fees 431 494 577 1,383 1,791
Data processing 246 239 247 722 693
Loan expenses 208 136 209 458 574
Premises and equipment 548 666 534 1,816 1,468
Deposit insurance premium 155 138 85 437 313
Other   448     472     414     1,366     1,263  
Total noninterest expense   5,785     5,560     5,140     16,783     15,228  
Income before income taxes 1,943 1,508 913 4,243 5,502
Income tax provision   661     531     186     1,384     1,575  
Net income $ 1,282   $ 977   $ 727   $ 2,859   $ 3,927  
 

Per common share data
Earnings per share - basic $ 0.29 $ 0.22 $ 0.25 $ 0.64 $ 1.36
Earnings per share - diluted $ 0.28 $ 0.22 $ 0.25 $ 0.63 $ 1.36
Dividends declared per share $ 0.06 $ 0.06 $ 0.06 $ 0.18 $ 0.16
 
                   
First Internet Bancorp
Average Balances and Rates (unaudited)
Amounts in thousands
     
 
Three Months Ended
 
September 30, 2014 June 30, 2014 September 30, 2013
 
Average Interest / Yield / Average Interest / Yield / Average Interest / Yield /
Balance Dividends Cost Balance Dividends Cost Balance Dividends Cost
 
Assets
Interest-earning assets
Loans, including loans held for sale $ 660,650 $ 7,218 4.33 % $ 580,539 $ 6,571 4.54 % $ 424,498 $ 5,170 4.83 %
Securities - taxable 139,569 684 1.94 % 194,689 987 2.03 % 149,287 771 2.05 %
Securities - non-taxable - - 0.00 % - - 0.00 % 45,448 447 3.90 %
Other earning assets   38,964     45 0.46 %   49,524     54 0.44 %   48,150     54 0.44 %
Total interest-earning assets 839,183 7,947 3.76 % 824,752 7,612 3.70 % 667,383 6,442 3.83 %
 
Allowance for loan losses (5,248 ) (5,423 ) (5,444 )
Noninterest earning-assets   34,426     42,781     38,136  
Total assets $ 868,361   $ 862,110   $ 700,075  
 
Liabilities
Interest-bearing liabilities
Regular savings accounts $ 16,932 $ 25 0.59 % $ 19,023 $ 29 0.61 % $ 13,548 $ 20 0.59 %
Interest-bearing demand deposits 69,635 96 0.55 % 72,519 99 0.55 % 67,605 94 0.55 %
Money market accounts 272,697 501 0.73 % 267,232 486 0.73 % 229,588 428 0.74 %
Certificates and brokered deposits   358,836     1,336 1.48 %   349,894     1,308 1.50 %   273,824     1,216 1.76 %
Total interest-bearing deposits 718,100 1,958 1.08 % 708,668 1,922 1.09 % 584,565 1,758 1.19 %
Other borrowed funds   29,748     316 4.21 %   34,538     317 3.68 %   34,078     329 3.83 %
Total interest-bearing liabilities 747,848 2,274 1.21 % 743,206 2,239 1.21 % 618,643 2,087 1.34 %
 
Noninterest-bearing deposits 21,960 18,821 13,594
Other noninterest-bearing liabilities   3,713     7,442     7,729  
Total liabilities 773,521 769,469 639,966
 
Shareholders' equity   94,840     92,641     60,109  
Total liabilities and shareholders' equity $ 868,361   $ 862,110   $ 700,075  
     
Net interest income $ 5,673 $ 5,373 $ 4,355
 
Interest rate spread 2.55 % 2.49 % 2.49 %
 
Net interest margin 2.68 % 2.61 % 2.59 %
 
             
First Internet Bancorp
Average Balances and Rates (unaudited)
Amounts in thousands
     
 
Nine Months Ended
 
September 30, 2014 September 30, 2013
 
Average Interest / Yield / Average Interest / Yield /
Balance Dividends Cost Balance Dividends Cost
 

Assets
Interest-earning assets
Loans, including loans held for sale $ 593,387 $ 19,918 4.49 % $ 415,996 $ 15,073 4.84 %
Securities - taxable 159,474 2,421 2.03 % 130,807 2,063 2.11 %
Securities - non-taxable 2,387 58 3.25 % 42,367 1,146 3.62 %
Other earning assets   63,403     195 0.41 %   40,041     148 0.49 %
Total interest-earning assets 818,651 22,592 3.69 % 629,211 18,430 3.92 %
 
Allowance for loan losses (5,373 ) (5,607 )
Noninterest earning-assets   36,654     34,825  
Total assets $ 849,932   $ 658,429  
 
Liabilities
Interest-bearing liabilities
Regular savings accounts $ 18,160 $ 81 0.60 % $ 13,729 $ 60 0.58 %
Interest-bearing demand deposits 70,831 290 0.55 % 69,065 284 0.55 %
Money market accounts 267,672 1,462 0.73 % 216,108 1,205 0.75 %
Certificates and brokered deposits   345,720     3,907 1.51 %   246,455     3,493 1.89 %
Total interest-bearing deposits 702,383 5,740 1.09 % 545,357 5,042 1.24 %
Other borrowed funds   29,831     940 4.21 %   30,433     904 3.97 %
Total interest-bearing liabilities 732,214 6,680 1.22 % 575,790 5,946 1.38 %
 
Noninterest-bearing deposits 19,661 13,085
Other noninterest-bearing liabilities   4,947     7,873  
Total liabilities 756,822 596,748
 

Shareholders' equity
  93,110     61,681  

Total liabilities and shareholders' equity
$ 849,932   $ 658,429  
   
Net interest income $ 15,912 $ 12,484
 
Interest rate spread 2.47 % 2.54 %
 
Net interest margin 2.60 % 2.65 %
 
             
First Internet Bancorp
Loans and Deposits (unaudited)
Amounts in thousands
     
 
September 30, 2014 June 30, 2014 September 30, 2013
 
Amount Percent Amount Percent Amount Percent
 

Commercial loans
Commercial and industrial $ 72,099 10.4 % $ 71,997 11.4 % $ 47,371 10.8 %
Owner-occupied commercial real estate 31,637 4.5 % 26,629 4.2 % 15,229 3.4 %
Investor commercial real estate 20,567 3.0 % 18,467 2.9 % 26,665 6.1 %
Construction 17,936 2.6 % 24,371 3.9 % 24,342 5.5 %
Credit tenant lease financing   165,738 23.8 %   143,547 22.7 %   66,492 15.1 %
Total commercial loans 307,977 44.3 % 285,011 45.1 % 180,099 40.9 %
 
Consumer loans
Residential mortgage 220,499 31.7 % 175,114 27.7 % 104,573 23.8 %
Home equity 61,799 8.9 % 63,725 10.1 % 38,933 8.9 %
Trailers 65,085 9.3 % 66,456 10.5 % 71,500 16.3 %
Recreational vehicles 31,591 4.5 % 32,882 5.2 % 36,024 8.2 %
Other consumer loans   3,398 0.5 %   3,505 0.6 %   3,834 0.9 %
Total consumer loans 382,372 54.9 % 341,682 54.1 % 254,864 58.1 %
 
Net deferred loan fees, premiums and discounts 5,580 0.8 % 4,985 0.8 % 4,663 1.0 %
           
Total loans receivable $ 695,929 100.0 % $ 631,678 100.0 % $ 439,626 100.0 %
 
 
September 30, 2014 June 30, 2014 September 30, 2013
 
Amount Percent Amount Percent Amount Percent
 
Deposits
Regular savings accounts $ 17,503 2.4 % $ 16,861 2.3 % $ 13,831 2.2 %
Noninterest-bearing deposits 20,359 2.8 % 19,065 2.5 % 14,541 2.3 %
Interest-bearing demand deposits 71,762 9.7 % 73,843 9.9 % 68,643 10.8 %
Money market accounts 275,901 37.4 % 267,854 36.0 % 240,672 37.8 %
Certificates of deposits 334,636 45.3 % 348,752 46.9 % 280,601 44.0 %
Brokered deposits 17,809 2.4 % 17,798 2.4 % 18,365 2.9 %
           
Total deposits $ 737,970 100.0 % $ 744,173 100.0 % $ 636,653 100.0 %
 
           
First Internet Bancorp

Reconciliation of Non-GAAP Financial Measures

Amounts in thousands, except per share data
   
 
Three Months Ended Nine Months Ended
 
September 30, June 30, September 30, September 30, September 30,
2014 2014 2013 2014 2013
 
Total equity - GAAP $ 94,774 $ 94,534 $ 61,874 $ 94,774 $ 61,874
Adjustments:
Goodwill   (4,687 )   (4,687 )   (4,687 )   (4,687 )   (4,687 )
Tangible common equity $ 90,087   $ 89,847   $ 57,187   $ 90,087   $ 57,187  
 
Total assets - GAAP $ 926,883 $ 868,107 $ 738,518 $ 926,883 $ 738,518
Adjustments:
Goodwill   (4,687 )   (4,687 )   (4,687 )   (4,687 )   (4,687 )
Tangible assets $ 922,196   $ 863,420   $ 733,831   $ 922,196   $ 733,831  
 
Common shares outstanding 4,439,575 4,449,619 2,861,326 4,439,575 2,861,326
 
Book value per common share $ 21.35 $ 21.25 $ 21.62 $ 21.35 $ 21.62
Effect of adjustment   (1.06 )   (1.06 )   (1.63 )   (1.06 )   (1.63 )
Tangible book value per common share $ 20.29   $ 20.19   $ 19.99   $ 20.29   $ 19.99  
 
Total shareholders' equity to assets ratio 10.23 % 10.89 % 8.38 % 10.23 % 8.38 %
Effect of adjustment   (0.46 %)   (0.48 %)   (0.59 %)   (0.46 %)   (0.59 %)
Tangible common equity to tangible assets ratio   9.77 %   10.41 %   7.79 %   9.77 %   7.79 %
 
Total average equity - GAAP $ 94,840 $ 92,641 $ 60,109 $ 93,110 $ 61,681
Adjustments:
Average goodwill   (4,687 )   (4,687 )   (4,687 )   (4,687 )   (4,687 )
Average tangible common equity $ 90,153   $ 87,954   $ 55,422   $ 88,423   $ 56,994  
 
Return on average shareholders' equity 5.36 % 4.23 % 4.80 % 4.11 % 8.51 %
Effect of adjustment   0.28 %   0.23 %   0.40 %   0.21 %   0.70 %
Return on average tangible common equity   5.64 %   4.46 %   5.20 %   4.32 %   9.21 %
 

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