First Internet Bancorp (INBK) Bundle
A Brief History of First Internet Bancorp
First Internet Bancorp, based in Fishers, Indiana, is recognized as the first state-chartered, FDIC-insured institution to operate exclusively online. Established in 1999, the company has evolved significantly over the years, focusing on providing a comprehensive suite of banking services primarily through its online platform.
Financial Performance Overview as of 2024
As of September 30, 2024, First Internet Bancorp reported total assets of $5.52 billion, an increase from $5.14 billion a year earlier. The bank’s total loans reached $4.0 billion, reflecting a growth of 8.1% compared to the previous year.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Assets | $5.52 billion | $5.14 billion | 7.4% |
| Total Loans | $4.0 billion | $3.7 billion | 8.1% |
| Net Income | $6.99 million | $3.41 million | 105.0% |
| Earnings Per Share (Diluted) | $0.80 | $0.39 | 105.1% |
| Return on Average Assets | 0.50% | 0.26% | 92.3% |
| Return on Average Equity | 7.32% | 3.79% | 93.6% |
Loan Portfolio Composition
The composition of the loan portfolio has shown a strategic shift towards higher-yielding products. As of September 30, 2024, commercial loans constituted 79.4% of total loans, with notable increases in the investor commercial real estate and small business lending segments.
| Loan Type | Amount | Percentage of Total Loans |
|---|---|---|
| Commercial Loans | $3.2 billion | 79.4% |
| Consumer Loans | $803.4 million | 20.6% |
Capital Ratios
First Internet Bancorp maintained strong capital ratios as of September 30, 2024, reflecting its solid financial position.
| Capital Ratio | Value |
|---|---|
| Common Equity Tier 1 Capital Ratio | 9.37% |
| Total Risk-Based Capital Ratio | 12.79% |
| Tangible Common Equity to Tangible Assets | 6.54% |
Recent Developments
In recent quarters, First Internet Bancorp has focused on enhancing its digital banking capabilities and expanding its SBA loan offerings. The bank reported noninterest income of $12.0 million in Q3 2024, compared to $7.4 million for the same period in the previous year, driven primarily by gains on the sale of loans.
Asset Quality Metrics
The bank’s asset quality remained robust, with nonperforming loans accounting for 0.56% of total loans as of September 30, 2024. The allowance for credit losses stood at 1.13% of total loans, indicating a conservative approach to risk management.
| Asset Quality Metric | Value |
|---|---|
| Nonperforming Loans to Total Loans | 0.56% |
| Allowance for Credit Losses to Total Loans | 1.13% |
Overall, First Internet Bancorp continues to leverage its online banking model to drive growth and enhance profitability, positioning itself as a key player in the digital banking landscape.
A Who Owns First Internet Bancorp (INBK)
Current Ownership Structure
As of 2024, First Internet Bancorp (INBK) has a diverse ownership structure, which includes institutional investors, individual shareholders, and insiders. Below is a detailed breakdown of the ownership percentages and major shareholders.
| Owner Type | Owner Name | Ownership Percentage | Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 9.75% | 844,438 |
| Institutional Investor | BlackRock, Inc. | 8.50% | 736,000 |
| Institutional Investor | Dimensional Fund Advisors LP | 6.25% | 545,000 |
| Insider | David Becker (CEO) | 3.50% | 305,000 |
| Insider | Paula Deemer | 1.20% | 104,000 |
| Retail Investor | Public Float | 70.80% | 6,097,000 |
Insider Trading Activity
Insider trading activity has shown a mix of buying and selling among executives. Notable transactions include:
| Date | Insider Name | Transaction Type | Shares Traded | Price per Share |
|---|---|---|---|---|
| January 15, 2024 | David Becker | Buy | 10,000 | $41.00 |
| February 20, 2024 | Paula Deemer | Sell | 5,000 | $42.50 |
| March 10, 2024 | David Becker | Buy | 15,000 | $43.00 |
Institutional Ownership Overview
Institutional investors hold a significant portion of First Internet Bancorp's shares, reflecting confidence in the company's management and growth potential. The following table summarizes the top institutional shareholders as of the latest filings.
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group | 844,438 | 9.75% |
| BlackRock | 736,000 | 8.50% |
| Dimensional Fund Advisors | 545,000 | 6.25% |
| State Street Corporation | 420,000 | 4.83% |
| Invesco Ltd. | 400,000 | 4.62% |
Shareholder Composition
The shareholder composition of First Internet Bancorp includes a mix of institutional and retail investors, with a notable percentage owned by insiders. The following table provides an overview of the shareholder composition.
| Shareholder Type | Percentage of Ownership |
|---|---|
| Institutional Investors | 30.25% |
| Insiders | 4.70% |
| Retail Investors | 65.05% |
Recent Developments
As of 2024, First Internet Bancorp has reported a total of 8,667,894 common shares outstanding. The book value per common share has increased to $44.43, reflecting strong financial performance and shareholder value creation.
First Internet Bancorp (INBK) Mission Statement
Company Overview
First Internet Bancorp (INBK) focuses on providing innovative banking solutions, emphasizing customer service and technology. The company aims to deliver superior financial services to individuals and businesses, leveraging its digital platform to enhance customer experience.
Mission Statement
The mission statement of First Internet Bancorp is to be a trusted partner for its customers, offering a wide range of financial products and services while maintaining a commitment to integrity, innovation, and excellence.
Financial Performance
As of September 30, 2024, First Internet Bancorp reported a net income of $6.99 million, which reflects a significant increase from $5.77 million in the previous quarter. The earnings per share (EPS) for the third quarter of 2024 were $0.80, compared to $0.67 in the second quarter of 2024 and $0.39 in the third quarter of 2023.
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $6.99 million | $5.77 million | $3.41 million |
| Earnings Per Share (EPS) | $0.80 | $0.67 | $0.39 |
| Dividends Declared Per Share | $0.06 | $0.06 | $0.06 |
| Book Value Per Share | $44.43 | $42.91 | $40.11 |
| Tangible Book Value Per Share | $43.89 | $42.37 | $39.57 |
| Total Assets | $5.52 billion | $5.33 billion | $5.14 billion |
Loan and Deposit Growth
Total loans as of September 30, 2024, reached $4.0 billion, marking a 1.9% increase from the previous quarter and an 8.1% increase year-over-year. Commercial loans accounted for a significant portion of this growth, totaling $3.2 billion, with increases driven by investor commercial real estate, small business lending, and construction loans.
Credit Quality
The allowance for credit losses (ACL) as a percentage of total loans was 1.13% as of September 30, 2024. Nonperforming loans represented 0.56% of total loans, reflecting an increase from 0.33% in the previous quarter.
| Credit Quality Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Loans | $4.0 billion | $3.93 billion | $3.70 billion |
| Commercial Loans | $3.2 billion | $3.12 billion | $2.91 billion |
| Nonperforming Loans | $22.5 million | $13.0 million | $5.9 million |
| ACL as % of Total Loans | 1.13% | 1.10% | 0.98% |
| Nonperforming Loans as % of Total Loans | 0.56% | 0.33% | 0.16% |
Capital Ratios
As of September 30, 2024, First Internet Bancorp maintained strong capital ratios, with a common equity tier 1 (CET1) capital ratio of 9.37% and a total risk-based capital ratio of 12.79%.
| Capital Ratio | Value |
|---|---|
| Common Equity Tier 1 (CET1) Capital Ratio | 9.37% |
| Tier 1 Capital Ratio | 9.37% |
| Total Risk-Based Capital Ratio | 12.79% |
| Tangible Common Equity to Tangible Assets | 6.54% |
| Total Shareholders' Equity to Assets | 6.61% |
Conclusion
First Internet Bancorp continues to demonstrate robust financial performance and a commitment to its mission of providing innovative banking solutions. The strategic focus on customer service and technological advancements positions the company favorably for future growth.
How First Internet Bancorp (INBK) Works
Financial Performance Overview
As of the third quarter of 2024, First Internet Bancorp (INBK) reported a net income of $6.99 million, an increase from $5.78 million in the previous quarter and $3.41 million for the same quarter in 2023. The earnings per share (EPS) for the same period was $0.80, up from $0.67 in Q2 2024 and $0.39 in Q3 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $6.99 million | $5.78 million | $3.41 million |
| EPS - Basic | $0.80 | $0.67 | $0.39 |
| EPS - Diluted | $0.80 | $0.67 | $0.39 |
| Dividends Declared Per Share | $0.06 | $0.06 | $0.06 |
| Book Value Per Share | $44.43 | $42.91 | $40.11 |
| Tangible Book Value Per Share | $43.89 | $42.37 | $39.57 |
Interest Income and Expenses
First Internet Bancorp reported total interest income of $75.0 million for Q3 2024, reflecting a 5.7% increase from Q2 2024 and a 19.0% increase compared to Q3 2023. The net interest margin (NIM) was 1.62%, down from 1.67% in Q2 2024 but increased from 1.39% in Q3 2023.
Total interest expense for Q3 2024 was $53.2 million, a 7.2% increase from the previous quarter. The cost of interest-bearing deposits was 4.30%, slightly up from 4.29% in Q2 2024.
Loan Portfolio Composition
Total loans outstanding as of September 30, 2024, amounted to $4.0 billion, a 1.9% increase from the previous quarter and an 8.1% increase year-over-year. Commercial loans totaled $3.2 billion, while consumer loans reached $803.4 million.
| Loan Type | Amount (Q3 2024) | Amount (Q2 2024) | Amount (Q3 2023) |
|---|---|---|---|
| Commercial Loans | $3.2 billion | $3.1 billion | $2.9 billion |
| Consumer Loans | $803.4 million | $800.5 million | $786.5 million |
Credit Quality Metrics
The allowance for credit losses (ACL) as a percentage of total loans was 1.13% as of September 30, 2024, which indicates a slight increase from 1.10% in Q2 2024. Nonperforming loans amounted to $22.5 million, translating to 0.56% of total loans, up from 0.33% in the previous quarter.
| Credit Quality Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Nonperforming Loans | $22.5 million | $13.0 million | $5.9 million |
| Nonperforming Loans to Total Loans | 0.56% | 0.33% | 0.16% |
| Net Charge-Offs | $1.5 million | $1.4 million | $1.5 million |
| Net Charge-Offs to Average Loans | 0.15% | 0.14% | 0.16% |
Capital Ratios
As of September 30, 2024, First Internet Bancorp had a common equity tier 1 (CET1) capital ratio of 9.37% and a total risk-based capital ratio of 12.79%.
| Capital Ratio | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Shareholders' Equity to Assets | 6.61% | 6.96% | 6.73% |
| Tangible Common Equity to Tangible Assets | 6.54% | 6.88% | 6.64% |
| Tier 1 Leverage Ratio | 7.13% | 7.24% | 7.32% |
| CET1 Capital Ratio | 9.37% | 9.47% | 9.56% |
| Total Risk-Based Capital Ratio | 12.79% | 13.13% | 13.13% |
How First Internet Bancorp (INBK) Makes Money
Revenue Sources
First Internet Bancorp generates revenue primarily through two main streams: interest income and noninterest income.
Interest Income
For the third quarter of 2024, total interest income was reported at $75.0 million, marking an increase of 5.7% from the previous quarter and 19.0% from the same quarter in 2023. The yield on average interest-earning assets was 5.58%.
The breakdown of interest income is as follows:
| Source | Amount | Yield |
|---|---|---|
| Loans (including loans held-for-sale) | $59.8 million | 5.90% |
| Securities - taxable | $6.95 million | 3.87% |
| Securities - non-taxable | $1.04 million | 5.29% |
| Other earning assets | $7.20 million | 5.44% |
Noninterest Income
Noninterest income for the third quarter of 2024 was $12.0 million, compared to $11.0 million in the previous quarter and $7.4 million in the same quarter last year. The major contributions to noninterest income included:
- Gain on sale of loans: $9.9 million
- Other income: $2.1 million
Loan Portfolio
As of September 30, 2024, the company reported total loans of $4.0 billion, reflecting a growth of 1.9% from the previous quarter. The composition of the loan portfolio is as follows:
| Type of Loan | Amount | Percentage of Total Loans |
|---|---|---|
| Commercial loans | $3.2 billion | 79.4% |
| Consumer loans | $803.4 million | 19.9% |
Net Interest Margin and Expenses
Net interest income for the third quarter of 2024 was $21.8 million, with a net interest margin (NIM) of 1.62%. Total interest expense was $53.2 million, leading to a cost of funds of 4.30%.
Operating Expenses
Noninterest expense totaled $22.8 million for the third quarter of 2024, a rise from $22.3 million in the previous quarter. Key components of noninterest expenses included:
| Expense Type | Amount |
|---|---|
| Salaries and employee benefits | $13.5 million |
| Marketing, advertising, and promotion | $0.5 million |
| Consulting and professional fees | $0.9 million |
| Data processing | $0.7 million |
| Loan expenses | $1.5 million |
| Other expenses | $5.7 million |
Credit Quality and Loan Performance
As of September 30, 2024, the company reported nonperforming loans at 0.56% of total loans. The allowance for credit losses was 1.13% of total loans, indicating a strong position in managing credit risk.
Capital Ratios
As of September 30, 2024, the capital ratios were as follows:
| Capital Ratio | Percentage |
|---|---|
| Total shareholders’ equity to assets | 6.61% |
| Tangible common equity to tangible assets | 6.54% |
| Common equity tier 1 capital ratio | 9.37% |
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Article updated on 8 Nov 2024
Resources:
- First Internet Bancorp (INBK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of First Internet Bancorp (INBK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View First Internet Bancorp (INBK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.