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First Internet Bancorp Reports Fourth Quarter and Full Year 2022 Results

Business Wire 25-Jan-2023 4:54 PM

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.

Fourth Quarter and Full Year 2022 Financial Highlights

Highlights for the fourth quarter and full year include:

  • Annual net income and diluted earnings per share of $35.5 million and $3.70, compared to $48.1 million and $4.82, respectively, for the full year of 2021
  • Quarterly net income of $6.4 million and $0.68 diluted earnings per share, compared to $8.4 million and $0.89 diluted earnings per share for the third quarter of 2022, and $12.5 million and $1.25 diluted earnings per share for the fourth quarter of 2021
  • Loan growth of $243.5 million in the fourth quarter, a 7.5% increase from the third quarter of 2022 and an increase of $611.7 million, or 21.2%, from the fourth quarter of 2021
  • Quarterly net interest margin of 2.09% and fully-taxable equivalent net interest margin of 2.22%

"We satisfied strong, high quality loan demand in our commercial and consumer lending businesses in the fourth quarter, capping off a year of robust loan growth and annual growth in net interest income," said David Becker, Chairman and Chief Executive Officer. "While higher deposit costs impacted earnings in the fourth quarter, we were pleased with the increase in income generated by our loan portfolio and the strong finish to the year by our small business lending team. As a result of investments we made during 2021 and 2022 in government guaranteed lending talent, we continue to move up the rankings, placing in the top 30 of 7(a) program lenders for the SBA's 2022 fiscal year, and are in the top 15 for the 2023 fiscal year-to-date.

"We are also beginning to realize the rewards from important investments in our Banking-as-a-Service efforts. We made significant progress in the fourth quarter, going live with our platform partner, Increase, and providing payments services to power the small business bill pay product from Ramp, a leading corporate card and spend management platform. We have two additional fintech partners in the pilot phase, another four approaching the pilot phase and one in due diligence. We also expect our partnership with the platform Treasury Prime to be fully implemented during the first quarter of 2023 with the first associated fintech program to be on-boarded in the second quarter.

"As we enter 2023, we believe our increasing mix of variable rate loans, combined with new loan production coming on at higher rates, will help to offset the pressure of higher deposit costs. If interest rates follow the market's expectations, deposit costs should stabilize later this year and decline thereafter, setting the stage to achieve higher earnings and profitability in 2024. Furthermore, our balance sheet and capital levels are strong and asset quality remains high, leaving us well-positioned for any changes in the broader economic environment."

Mr. Becker concluded, "I want to thank the entire First Internet team for their hard work and unwavering commitment to client service throughout 2022, which are the keys to our ongoing success and the reason we are confident in our future."

Net Interest Income and Net Interest Margin

Net interest income for the fourth quarter of 2022 was $21.7 million, compared to $24.0 million for the third quarter of 2022, and $23.5 million for the fourth quarter of 2021. On a fully-taxable equivalent basis, net interest income for the fourth quarter of 2022 was $23.1 million, compared to $25.3 million for the third quarter of 2022, and $24.9 million for the fourth quarter of 2021.

Total interest income for the fourth quarter of 2022 was $45.7 million, an increase of 16.8% compared to the third quarter of 2022, and an increase of 33.6% compared to the fourth quarter of 2021. On a fully-taxable equivalent basis, total interest income for the fourth quarter of 2022 was $47.1 million, an increase of 16.5% compared to the third quarter of 2022, and an increase of 32.4% compared to the fourth quarter of 2021. The sequential increase was due primarily to growth in interest income earned on the commercial and consumer loan portfolios as well as from the securities portfolio and other earning assets. The yield on average interest-earning assets for the fourth quarter of 2022 increased to 4.40% from 3.91% in the linked quarter due primarily to a 39 basis point ("bp") increase in the average loan yield, a 60 bp increase in the yield earned on securities and a 103 bp increase in the yield earned on other earning assets. Compared to the linked quarter, average loan balances increased $215.5 million, or 6.8%, while the average balance of securities decreased $27.7 million, or 4.6%, and the average balance of other earning assets decreased $38.6 million, or 20.5%.

Interest income earned on commercial loans was positively impacted by higher rates and average balances in the variable rate small business lending, construction and commercial and industrial portfolios as well as strong growth and higher new origination yields in the franchise finance portfolio. Other portfolios also benefitted from higher average balances and increases in new origination yields as well as higher prepayment fees. In the consumer portfolio, interest income was up due to the combination of higher new origination yields and growth in the residential mortgage, trailers and recreational vehicles portfolios.

New funded portfolio origination yields increased 84 bps compared to the third quarter, and for the full year 2022 were approximately 118 bps higher than for 2021. Because of the fixed rate nature of certain larger portfolios, there is a lagging impact of the higher origination yields on the portfolio.

The Federal Reserve increased the federal funds ("Fed Funds") target rate 425 bps in 2022. During the course of the year, the Company increased the rates paid on consumer, small business and commercial interest-bearing demand deposits. While money market deposit pricing was relatively rational during the first half of the year, competition in both the digital banking space and local markets intensified in the third quarter and continued into the fourth quarter, and deposit betas increased as a result.

Total interest expense for the fourth quarter of 2022 was $24.0 million, an increase of 58.9% compared to the third quarter of 2022, and an increase of 124.6% compared to the fourth quarter of 2021. During the fourth quarter of 2022, the average balance of interest-bearing deposits increased $79.7 million, or 2.7%, compared to the third quarter of 2022 and the cost of these deposits increased 104 bps. The increase in average interest-bearing deposit balances was due to an increase in average certificates and brokered deposit balances, which increased $183.2 million, or 17.7%, during the quarter while the cost of these deposits increased 76 bps. Additionally, the average balance of money market accounts increased $71.8 million, or 5.2%, compared to the third quarter of 2022 while the cost of these deposits increased 156 bps.

The average balance of noninterest-bearing deposits increased $11.6 million, or 9.4%, during the fourth quarter compared to the linked quarter, driven by deposits related to growth in construction lending. The average balance of BaaS – brokered deposits declined significantly as a large relationship was exited early in the quarter. However, deposits related to the program with Ramp on-boarded during the quarter began to see deposit inflows in December, which totaled $13.6 million at year end and are priced significantly lower than the exited relationship.

Additionally, with the inverted yield curve, the Company used medium- and longer-term brokered deposits, as well as longer-term FHLB advances, to supplement funding needs, manage long term interest rate risk and offset the impact of further increases in Fed Funds and other short term interest rates.

Net interest margin ("NIM") was 2.09% for the fourth quarter of 2022, down from 2.40% for the third quarter of 2022 and 2.30% for the fourth quarter of 2021. Fully-taxable equivalent NIM ("FTE NIM") was 2.22% for the fourth quarter of 2022, down from 2.53% for the third quarter of 2022 and 2.43% for the fourth quarter of 2021. The decreases in NIM and FTE NIM compared to the linked quarter were driven primarily by the effect of higher interest-bearing deposit costs, partially offset by higher yields on loans, securities and other earning assets and higher average loan balances.

Noninterest Income

Noninterest income for the fourth quarter of 2022 was $5.8 million, up $1.5 million, or 34.5%, from the third quarter of 2022, and down $1.9 million, or 24.5%, from the fourth quarter of 2021. Gain on sale of loans totaled $2.9 million for the fourth quarter of 2022, up $0.1 million, or 5.5%, from the linked quarter. Gain on sale revenue in the quarter consisted entirely of gain on the sales of U.S. Small Business Administration ("SBA") 7(a) guaranteed loans. The increase in revenue related to SBA loan sales was due to a higher volume of sales, partially offset by lower net gain on sale premiums. Other income totaled $1.5 million for the fourth quarter of 2022, increasing $1.4 million compared to the linked quarter due to distributions received on certain Small Business Investment Company and venture capital fund investments. Mortgage banking revenue totaled $1.0 million for the fourth quarter of 2022 as the higher interest rate environment and other economic factors continued to impact interest rate lock and sold loan volume as well as gain on sale margins.

Noninterest Expense

Noninterest expense for the fourth quarter of 2022 was $18.5 million, up $0.5 million, or 2.9%, from the third quarter of 2022 and up $1.6 million, or 9.2%, from the fourth quarter of 2021. Other expense, consulting and professional fees, deposit insurance premium and premises and equipment costs increased from the linked quarter, while marketing, advertising and promotion costs and loan expenses were lower. The increases in other expense and premises and equipment were due to several items, none of which were individually significant. The increase in consulting and professional fees was due primarily to the timing of third party loan review. The increase in deposit insurance premium was due primarily to year-over-year asset growth as well as the composition of loans and deposits. The decreases in marketing costs and loan expenses were due primarily to lower mortgage origination activity.

Income Taxes

The Company reported an income tax expense of $0.5 million for the fourth quarter of 2022 and an effective tax rate of 7.3%, compared to an income tax expense of $1.0 million and an effective tax rate of 10.5% for the third quarter of 2022 and an income tax expense of $2.0 million and an effective tax rate of 13.8% for the fourth quarter of 2021. The lower effective tax rate for the fourth quarter of 2022 reflects the impact of the decline in taxable income during the second half of the year compared to estimates earlier in the year.

Loans and Credit Quality

Total loans as of December 31, 2022 were $3.5 billion, an increase of $243.5 million, or 7.5%, compared to September 30, 2022, and an increase of $611.7 million, or 21.2%, compared to December 31, 2021. Total commercial loan balances were $2.7 billion as of December 31, 2022, an increase of $184.3 million, or 7.3%, compared to September 30, 2022, and an increase of $355.5 million, or 15.0%, compared to December 31, 2021. Compared to the linked quarter, the increase in commercial loan balances was driven primarily by growth in franchise finance, single tenant lease financing, construction, commercial and industrial and small business lending balances. These items were partially offset by continued runoff in the healthcare finance portfolio.

Total consumer loan balances were $733.3 million as of December 31, 2022, an increase of $61.1 million, or 9.1%, compared to September 30, 2022, and an increase of $263.3 million, or 56.0%, compared to December 31, 2021. The increase compared to the linked quarter was due to higher balances in the residential mortgage, recreational vehicles and trailers loan portfolios.

Total delinquencies 30 days or more past due were 0.17% of total loans as of December 31, 2022, compared to 0.06% at September 30, 2022 and 0.04% as of December 31, 2022. The increase in delinquencies during the fourth quarter of 2022 was due to one construction loan that was brought current subsequent to year end. Overall credit quality remained strong during the quarter as nonperforming loans to total loans was 0.22% as of December 31, 2022, compared to 0.18% at September 30, 2022 and 0.26% as of December 31, 2021. Nonperforming loans totaled $7.5 million at December 31, 2022, up from $6.0 million at September 30, 2022.

The allowance for loan losses as a percentage of total loans was 0.91% as of December 31, 2022, compared to 0.92% as of September 30, 2022 and 0.96% as of December 31, 2021. While growth in the allowance for loan losses was generally in-line with overall loan portfolio growth, the slight decline in the allowance coverage ratio compared to the linked quarter reflects the removal of a specific reserve due to positive developments on a certain monitored loan, growth in certain portfolios with lower coverage ratios and the continued decline in healthcare finance balances that have a higher coverage ratio.

Net charge-offs of $0.2 million were recognized during the fourth quarter of 2022, resulting in net charge-offs to average loans of 0.03%, compared to net charge-offs to average loans of 0.02% for the third quarter of 2022 and net recoveries to average loans of 0.01% for the fourth quarter of 2021.

The provision for loan losses in the fourth quarter of 2022 was $2.1 million, compared to a provision of $0.9 million for the third quarter of 2022 and a benefit of $0.2 million for the fourth quarter of 2021. The provision for the quarter was driven by the overall growth in the loan portfolio, partially offset by the reduction in specific reserves mentioned above.

During the first quarter of 2023, the Company will be replacing its incurred loss model for recognizing credit losses with an expected loss model referred to as the current expected credit losses ("CECL") model. As a result, the Company expects its initial adjustment to the allowance for credit losses to be in the range of $2.5 million to $3.0 million.

Capital

As of December 31, 2022, total shareholders' equity was $365.0 million, an increase of $4.1 million, or 1.1%, compared to September 30, 2022, and a decrease of $15.4 million, or 4.0%, compared to December 31, 2021. The increase in shareholders' equity during the fourth quarter of 2022 was due primarily to the net income earned during the quarter and a decrease in accumulated other comprehensive loss resulting from an increase in the value of the available-for-sale securities portfolio caused by the decline in long-term interest rates during the quarter. This was partially offset by a decrease in the fair value of interest rate swaps classified as cash flow hedges and stock repurchase activity. Book value per common share increased to $40.26 as of December 31, 2022, up from $38.84 as of September 30, 2022 and $38.99 as of December 31, 2021. Tangible book value per share was $39.74, up from $38.34 as of September 30, 2022 and $38.51 as of December 31, 2021.

In connection with its previously announced stock repurchase program, the Company repurchased 284,286 shares of its common stock during the fourth quarter of 2022 at an average price of $25.16 per share. Including shares repurchased during the fourth quarter of 2021, the Company has repurchased $32.2 million of stock under its authorized programs.

The following table presents the Company's and the Bank's regulatory and other capital ratios as of December 31, 2022.

As of December 31, 2022

Company

Bank

 

Total shareholders' equity to assets

8.03

%

9.72

%

Tangible common equity to tangible assets 1

7.94

%

9.62

%

Tier 1 leverage ratio 2

9.06

%

10.84

%

Common equity tier 1 capital ratio 2

10.93

%

13.10

%

Tier 1 capital ratio 2

10.93

%

13.10

%

Total risk-based capital ratio 2

14.75

%

13.99

%

 

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 2:00 p.m. Eastern Time on Thursday, January 26, 2023 to discuss its quarterly financial results. The call can be accessed via telephone at (844) 200-6205; access code: 960605. A recorded replay can be accessed through February 25, 2023 by dialing (866) 813-9403; access code: 361353.

Additionally, interested parties can listen to a live webcast of the call on the 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 financial holding company with assets of $4.5 billion as of December 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. First Internet Bank provides consumer and small business deposit, SBA financing, franchise finance, 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 First Internet Bank, including its products and services, is available at www.firstib.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements with respect to 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 "anticipate," "believe," "continue," "could," "estimate," "expect," "growth," "help," "may," "opportunities," "pending," "plan," "position," "preliminary," "remain," "should," "thereafter," "well-positioned," "will," 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: 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 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 and industrial, construction, SBA, and franchise finance loan portfolios; competition with national, regional and community financial institutions; the loss of any key members of senior management; the anticipated impacts of inflation and rising interest rates on the general economy; 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 - FTE, 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, provision (benefit) for loan losses, excluding tax refund advance loans, average loans, excluding tax refund advance loans, net charge-offs (recoveries) to average loans, excluding tax refund advance loans, allowance for loan losses to loans, excluding PPP loans, adjusted total revenue, adjusted noninterest income, 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."

First Internet Bancorp
Summary Financial Information (unaudited)
Dollar amounts in thousands, except per share data
 
 

Three Months Ended

 

Twelve Months Ended

 

 

 

 

 

 

 

 

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 
Net income

$

6,351

 

$

8,436

 

$

12,478

 

$

35,541

 

$

48,114

 

 
Per share and share information
Earnings per share - basic

$

0.68

 

$

0.89

 

$

1.26

 

$

3.73

 

$

4.85

 

Earnings per share - diluted

 

0.68

 

 

0.89

 

 

1.25

 

 

3.70

 

 

4.82

 

Dividends declared per share

 

0.06

 

 

0.06

 

 

0.06

 

 

0.24

 

 

0.24

 

Book value per common share

 

40.26

 

 

38.84

 

 

38.99

 

 

40.26

 

 

38.99

 

Tangible book value per common share 1

 

39.74

 

 

38.34

 

 

38.51

 

 

39.74

 

 

38.51

 

Common shares outstanding

 

9,065,883

 

 

9,290,885

 

 

9,754,455

 

 

9,065,883

 

 

9,754,455

 

Average common shares outstanding:
Basic

 

9,281,309

 

 

9,458,259

 

 

9,903,856

 

 

9,530,921

 

 

9,918,083

 

Diluted

 

9,343,533

 

 

9,525,855

 

 

9,989,951

 

 

9,595,115

 

 

9,976,261

 

Performance ratios
Return on average assets

 

0.59

%

 

0.82

%

 

1.19

%

 

0.85

%

 

1.14

%

Return on average shareholders' equity

 

6.91

%

 

9.01

%

 

13.14

%

 

9.53

%

 

13.44

%

Return on average tangible common equity 1

 

7.00

%

 

9.13

%

 

13.30

%

 

9.65

%

 

13.61

%

Net interest margin

 

2.09

%

 

2.40

%

 

2.30

%

 

2.41

%

 

2.11

%

Net interest margin - FTE 1,2

 

2.22

%

 

2.53

%

 

2.43

%

 

2.54

%

 

2.25

%

Capital ratios 3
Total shareholders' equity to assets

 

8.03

%

 

8.46

%

 

9.03

%

 

8.03

%

 

9.03

%

Tangible common equity to tangible assets 1

 

7.94

%

 

8.36

%

 

8.93

%

 

7.94

%

 

8.93

%

Tier 1 leverage ratio

 

9.06

%

 

 

9.49

%

 

 

9.22

%

 

 

9.06

%

 

 

9.22

%

Common equity tier 1 capital ratio

 

10.93

%

 

 

11.72

%

 

 

12.93

%

 

 

10.93

%

 

 

12.93

%

Tier 1 capital ratio

 

10.93

%

 

 

11.72

%

 

 

12.93

%

 

 

10.93

%

 

 

12.93

%

Total risk-based capital ratio

 

14.75

%

 

 

15.73

%

 

 

17.37

%

 

 

14.75

%

 

 

17.37

%

Asset quality
Nonperforming loans

$

7,529

 

$

6,006

 

$

7,401

 

$

7,529

 

$

7,401

 

Nonperforming assets

 

7,571

 

 

6,006

 

 

8,618

 

 

7,571

 

 

8,618

 

Nonperforming loans to loans

 

0.22

%

 

0.18

%

 

0.26

%

 

0.22

%

 

0.26

%

Nonperforming assets to total assets

 

0.17

%

 

0.14

%

 

0.20

%

 

0.17

%

 

0.20

%

Allowance for loan losses to:
Loans

 

0.91

%

 

0.92

%

 

0.96

%

 

0.91

%

 

0.96

%

Loans, excluding PPP loans 1

 

0.91

%

 

0.92

%

 

0.97

%

 

0.91

%

 

0.97

%

Nonperforming loans

 

421.5

%

 

497.3

%

 

376.2

%

 

421.5

%

 

376.2

%

Net charge-offs (recoveries) to average loans

 

0.03

%

 

0.02

%

 

(0.01

%)

 

0.03

%

 

0.09

%

Average balance sheet information
Loans

$

3,382,212

 

$

3,161,850

 

$

2,914,858

 

$

3,123,972

 

$

2,972,224

 

Total securities

 

578,608

 

 

606,329

 

 

677,580

 

 

613,303

 

 

629,095

 

Other earning assets

 

149,910

 

 

188,467

 

 

431,621

 

 

278,073

 

 

466,608

 

Total interest-earning assets

 

4,119,897

 

 

3,970,650

 

 

4,056,254

 

 

4,033,542

 

 

4,094,935

 

Total assets

 

4,263,246

 

 

4,105,688

 

 

4,177,578

 

 

4,170,526

 

 

4,205,926

 

Noninterest-bearing deposits

 

135,702

 

 

124,067

 

 

113,887

 

 

120,325

 

 

101,825

 

Interest-bearing deposits

 

3,041,022

 

 

2,961,327

 

 

3,032,435

 

 

3,022,794

 

 

3,098,706

 

Total deposits

 

3,176,724

 

 

3,085,394

 

 

3,146,322

 

 

3,143,119

 

 

3,200,531

 

Shareholders' equity

 

364,657

 

 

371,303

 

 

376,832

 

 

372,844

 

 

358,105

 

 
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
 
 
December 31, September 30, December 31,

2022

2022

2021

 
Assets
Cash and due from banks

$

17,426

 

$

14,743

 

$

7,492

 

Interest-bearing deposits

 

239,126

 

 

206,309

 

 

435,468

 

Securities available-for-sale, at fair value

 

390,384

 

 

393,565

 

 

603,044

 

Securities held-to-maturity, at amortized cost

 

189,168

 

 

191,057

 

 

59,565

 

Loans held-for-sale

 

21,511

 

 

23,103

 

 

47,745

 

Loans

 

3,499,401

 

 

3,255,906

 

 

2,887,662

 

Allowance for loan losses

 

(31,737

)

 

(29,866

)

 

(27,841

)

Net loans

 

3,467,664

 

 

3,226,040

 

 

2,859,821

 

Accrued interest receivable

 

21,069

 

 

16,918

 

 

16,037

 

Federal Home Loan Bank of Indianapolis stock

 

28,350

 

 

28,350

 

 

25,650

 

Cash surrender value of bank-owned life insurance

 

39,859

 

 

39,612

 

 

38,900

 

Premises and equipment, net

 

72,711

 

 

70,747

 

 

59,842

 

Goodwill

 

4,687

 

 

4,687

 

 

4,687

 

Servicing asset

 

6,255

 

 

5,795

 

 

4,702

 

Other real estate owned

 

-

 

 

-

 

 

1,188

 

Accrued income and other assets

 

44,894

 

 

43,498

 

 

46,853

 

Total assets

$

4,543,104

 

$

4,264,424

 

$

4,210,994

 

 
Liabilities
Noninterest-bearing deposits

$

175,315

 

$

142,875

 

$

117,531

 

Interest-bearing deposits

 

3,265,930

 

 

3,049,769

 

 

3,061,428

 

Total deposits

 

3,441,245

 

 

3,192,644

 

 

3,178,959

 

Advances from Federal Home Loan Bank

 

614,928

 

 

589,926

 

 

514,922

 

Subordinated debt

 

104,532

 

 

104,456

 

 

104,231

 

Accrued interest payable

 

2,913

 

 

1,887

 

 

2,018

 

Accrued expenses and other liabilities

 

14,512

 

 

14,654

 

 

30,526

 

Total liabilities

 

4,178,130

 

 

3,903,567

 

 

3,830,656

 

Shareholders' equity
Voting common stock

 

192,935

 

 

200,123

 

 

218,946

 

Retained earnings

 

205,675

 

 

199,877

 

 

172,431

 

Accumulated other comprehensive loss

 

(33,636

)

 

(39,143

)

 

(11,039

)

Total shareholders' equity

 

364,974

 

 

360,857

 

 

380,338

 

Total liabilities and shareholders' equity

$

4,543,104

 

$

4,264,424

 

$

4,210,994

 

 
First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited, except for the twelve months ended December 31, 2021)
Dollar amounts in thousands, except per share data
 
 
Three Months Ended Twelve Months Ended
 
December 31, September 30, December 31, December 31, December 31,

2022

2022

2021

2022

2021

 
Interest income
Loans

$

40,354

 

$

34,643

 

$

31,621

 

$

140,600

 

$

123,467

 

Securities - taxable

 

3,222

 

 

2,701

 

 

1,973

 

 

10,711

 

 

7,970

 

Securities - non-taxable

 

699

 

 

491

 

 

236

 

 

1,767

 

 

1,017

 

Other earning assets

 

1,394

 

 

1,264

 

 

362

 

 

3,830

 

 

1,429

 

Total interest income

 

45,669

 

 

39,099

 

 

34,192

 

 

156,908

 

 

133,883

 

Interest expense
Deposits

 

18,807

 

 

10,520

 

 

6,399

 

 

41,832

 

 

29,822

 

Other borrowed funds

 

5,193

 

 

4,585

 

 

4,288

 

 

17,983

 

 

17,505

 

Total interest expense

 

24,000

 

 

15,105

 

 

10,687

 

 

59,815

 

 

47,327

 

Net interest income

 

21,669

 

 

23,994

 

 

23,505

 

 

97,093

 

 

86,556

 

Provision (benefit) for loan losses

 

2,109

 

 

892

 

 

(238

)

 

4,977

 

 

1,030

 

Net interest income after provision (benefit)
for loan losses

 

19,560

 

 

23,102

 

 

23,743

 

 

92,116

 

 

85,526

 

Noninterest income
Service charges and fees

 

226

 

 

248

 

 

292

 

 

1,071

 

 

1,114

 

Loan servicing revenue

 

715

 

 

653

 

 

544

 

 

2,573

 

 

1,934

 

Loan servicing asset revaluation

 

(539

)

 

(333

)

 

(400

)

 

(1,639

)

 

(1,069

)

Mortgage banking activities

 

1,010

 

 

871

 

 

2,776

 

 

5,464

 

 

15,050

 

Gain on sale of loans

 

2,862

 

 

2,713

 

 

4,137

 

 

11,372

 

 

11,598

 

Gain on sale of premises and equipment

 

-

 

 

-

 

 

-

 

 

-

 

 

2,523

 

Other

 

1,533

 

 

164

 

 

345

 

 

2,416

 

 

1,694

 

Total noninterest income

 

5,807

 

 

4,316

 

 

7,694

 

 

21,257

 

 

32,844

 

Noninterest expense
Salaries and employee benefits

 

10,404

 

 

10,439

 

 

10,183

 

 

41,553

 

 

38,223

 

Marketing, advertising and promotion

 

837

 

 

1,041

 

 

896

 

 

3,554

 

 

3,261

 

Consulting and professional fees

 

914

 

 

790

 

 

1,262

 

 

4,826

 

 

4,054

 

Data processing

 

567

 

 

483

 

 

425

 

 

1,989

 

 

1,649

 

Loan expenses

 

1,018

 

 

1,142

 

 

654

 

 

4,435

 

 

2,112

 

Premises and equipment

 

2,921

 

 

2,808

 

 

2,188

 

 

10,688

 

 

7,063

 

Deposit insurance premium

 

355

 

 

229

 

 

283

 

 

1,152

 

 

1,213

 

Other

 

1,497

 

 

1,063

 

 

1,064

 

 

5,076

 

 

4,223

 

Total noninterest expense

 

18,513

 

 

17,995

 

 

16,955

 

 

73,273

 

 

61,798

 

Income before income taxes

 

6,854

 

 

9,423

 

 

14,482

 

 

40,100

 

 

56,572

 

Income tax provision

 

503

 

 

987

 

 

2,004

 

 

4,559

 

 

8,458

 

Net income

$

6,351

 

$

8,436

 

$

12,478

 

$

35,541

 

$

48,114

 

 
Per common share data
Earnings per share - basic

$

0.68

 

$

0.89

 

$

1.26

 

$

3.73

 

$

4.85

 

Earnings per share - diluted

$

0.68

 

$

0.89

 

$

1.25

 

$

3.70

 

$

4.82

 

Dividends declared per share

$

0.06

 

$

0.06

 

$

0.06

 

$

0.24

 

$

0.24

 

 
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
 
December 31, 2022 September 30, 2022 December 31, 2021
 
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 1

$

3,391,379

 

$

40,354

4.72

%

$

3,175,854

 

$

34,643

4.33

%

$

2,947,053

 

$

31,621

4.26

%

Securities - taxable

 

508,725

 

 

3,222

2.51

%

 

532,470

 

 

2,701

2.01

%

 

595,024

 

 

1,973

1.32

%

Securities - non-taxable

 

69,883

 

 

699

3.97

%

 

73,859

 

 

491

2.64

%

 

82,556

 

 

236

1.13

%

Other earning assets

 

149,910

 

 

1,394

3.69

%

 

188,467

 

 

1,264

2.66

%

 

431,621

 

 

362

0.33

%

Total interest-earning assets

 

4,119,897

 

 

45,669

4.40

%

 

3,970,650

 

 

39,099

3.91

%

 

4,056,254

 

 

34,192

3.34

%

 
Allowance for loan losses

 

(30,543

)

 

(29,423

)

 

(27,946

)

Noninterest-earning assets

 

173,892

 

 

164,461

 

 

149,270

 

Total assets

$

4,263,246

 

$

4,105,688

 

$

4,177,578

 

 
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits

$

326,102

 

$

628

0.76

%

$

342,116

 

$

551

0.64

%

$

210,283

 

$

158

0.30

%

Savings accounts

 

47,799

 

 

104

0.86

%

 

57,700

 

 

111

0.76

%

 

63,575

 

 

58

0.36

%

Money market accounts

 

1,441,583

 

 

10,508

2.89

%

 

1,369,783

 

 

4,581

1.33

%

 

1,453,447

 

 

1,507

0.41

%

BaaS - brokered deposits

 

4,563

 

 

13

1.13

%

 

153,936

 

 

859

2.21

%

 

-

 

 

-

0.00

%

Certificates and brokered deposits

 

1,220,975

 

 

7,554

2.45

%

 

1,037,792

 

 

4,418

1.69

%

 

1,305,130

 

 

4,676

1.42

%

Total interest-bearing deposits

 

3,041,022

 

 

18,807

2.45

%

 

2,961,327

 

 

10,520

1.41

%

 

3,032,435

 

 

6,399

0.84

%

Other borrowed funds

 

712,465

 

 

5,193

2.89

%

 

637,877

 

 

4,585

2.85

%

 

619,115

 

 

4,288

2.75

%

Total interest-bearing liabilities

 

3,753,487

 

 

24,000

2.54

%

 

3,599,204

 

 

15,105

1.67

%

 

3,651,550

 

 

10,687

1.16

%

 
Noninterest-bearing deposits

 

135,702

 

 

124,067

 

 

113,887

 

Other noninterest-bearing liabilities

 

9,400

 

 

11,114

 

 

35,309

 

Total liabilities

 

3,898,589

 

 

3,734,385

 

 

3,800,746

 

 
Shareholders' equity

 

364,657

 

 

371,303

 

 

376,832

 

Total liabilities and shareholders' equity

$

4,263,246

 

$

4,105,688

 

$

4,177,578

 

 
Net interest income

$

21,669

$

23,994

$

23,505

 
Interest rate spread

1.86

%

2.24

%

2.18

%

 
Net interest margin

2.09

%

2.40

%

2.30

%

 
Net interest margin - FTE 2,3

2.22

%

2.53

%

2.43

%

 
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
Average Balances and Rates (unaudited)
Dollar amounts in thousands
 
 
Twelve Months Ended
 
December 31, 2022 December 31, 2021
 
Average Interest / Yield / Average Interest / Yield /
Balance Dividends Cost Balance Dividends Cost
 
Assets
Interest-earning assets
Loans, including loans held-for-sale 1

$

3,142,166

 

$

140,600

4.47

%

$

2,999,232

 

$

123,467

4.12

%

Securities - taxable

 

537,921

 

 

10,711

1.99

%

 

544,613

 

 

7,970

1.46

%

Securities - non-taxable

 

75,382

 

 

1,767

2.34

%

 

84,482

 

 

1,017

1.20

%

Other earning assets

 

278,073

 

 

3,830

1.38

%

 

466,608

 

 

1,429

0.31

%

Total interest-earning assets

 

4,033,542

 

 

156,908

3.89

%

 

4,094,935

 

 

133,883

3.27

%

 

-

 

Allowance for loan losses

 

(29,143

)

 

(29,068

)

Noninterest-earning assets

 

166,127

 

 

140,059

 

Total assets

$

4,170,526

 

$

4,205,926

 

 
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits

$

333,737

 

$

2,056

0.62

%

$

195,699

 

$

583

0.30

%

Savings accounts

 

58,156

 

 

336

0.58

%

 

56,967

 

 

203

0.36

%

Money market accounts

 

1,423,185

 

 

18,513

1.30

%

 

1,434,829

 

 

5,892

0.41

%

BaaS - brokered deposits

 

60,699

 

 

1,033

1.70

%

 

-

 

 

-

0.00

%

Certificates and brokered deposits

 

1,147,017

 

 

19,894

1.73

%

 

1,411,211

 

 

23,144

1.64

%

Total interest-bearing deposits

 

3,022,794

 

 

41,832

1.38

%

 

3,098,706

 

 

29,822

0.96

%

Other borrowed funds

 

638,526

 

 

17,983

2.82

%

 

600,035

 

 

17,505

2.92

%

Total interest-bearing liabilities

 

3,661,320

 

 

59,815

1.63

%

 

3,698,741

 

 

47,327

1.28

%

 
Noninterest-bearing deposits

 

120,325

 

 

101,825

 

Other noninterest-bearing liabilities

 

16,037

 

 

47,255

 

Total liabilities

 

3,797,682

 

 

3,847,821

 

 
Shareholders' equity

 

372,844

 

 

358,105

 

Total liabilities and shareholders' equity

$

4,170,526

 

$

4,205,926

 

 
Net interest income

$

97,093

$

86,556

 
Interest rate spread

2.26

%

1.99

%

 
Net interest margin

2.41

%

2.11

%

 
Net interest margin - FTE 2,3

2.54

%

2.25

%

 
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
 
 
December 31, 2022 September 30, 2022 December 31, 2021
 
Amount Percent Amount Percent Amount Percent
 
Commercial loans
Commercial and industrial

$

126,108

3.6

%

$

104,780

3.2

%

$

96,008

3.3

%

Owner-occupied commercial real estate

 

61,836

1.8

%

 

58,615

1.8

%

 

66,732

2.3

%

Investor commercial real estate

 

93,121

2.7

%

 

91,021

2.8

%

 

28,019

1.0

%

Construction

 

181,966

5.2

%

 

139,509

4.3

%

 

136,619

4.7

%

Single tenant lease financing

 

939,240

26.8

%

 

895,302

27.4

%

 

865,854

30.0

%

Public finance

 

621,032

17.7

%

 

614,139

18.9

%

 

592,665

20.5

%

Healthcare finance

 

272,461

7.8

%

 

293,686

9.0

%

 

387,852

13.4

%

Small business lending

 

123,750

3.5

%

 

113,001

3.5

%

 

108,666

3.8

%

Franchise finance

 

299,835

8.6

%

 

225,012

6.8

%

 

81,448

2.8

%

Total commercial loans

 

2,719,349

77.7

%

 

2,535,065

77.7

%

 

2,363,863

81.8

%

 
Consumer loans
Residential mortgage

 

383,948

11.0

%

 

337,565

10.4

%

 

186,770

6.5

%

Home equity

 

24,712

0.7

%

 

22,114

0.7

%

 

17,665

0.6

%

Trailers

 

167,326

4.8

%

 

162,161

5.0

%

 

146,267

5.1

%

Recreational vehicles

 

121,808

3.5

%

 

115,694

3.6

%

 

90,654

3.1

%

Other consumer loans

 

35,464

1.0

%

 

34,657

1.1

%

 

28,557

1.0

%

Total consumer loans

 

733,258

21.0

%

 

672,191

20.8

%

 

469,913

16.3

%

 
Net deferred loan fees, premiums, discounts and other 1

 

46,794

1.3

%

 

48,650

1.5

%

 

53,886

1.9

%

 
Total loans

$

3,499,401

100.0

%

$

3,255,906

100.0

%

$

2,887,662

100.0

%

 
 
December 31, 2022 September 30, 2022 December 31, 2021
 
Amount Percent Amount Percent Amount Percent
 
Deposits
Noninterest-bearing deposits

$

175,315

5.1

%

$

142,635

4.5

%

$

117,531

3.7

%

Interest-bearing demand deposits

 

335,611

9.8

%

 

337,765

10.6

%

 

247,967

7.8

%

Savings accounts

 

44,819

1.3

%

 

52,228

1.6

%

 

59,998

1.9

%

Money market accounts

 

1,418,599

41.2

%

 

1,378,087

43.2

%

 

1,483,936

46.7

%

BaaS - brokered deposits

 

13,607

0.4

%

 

96,287

3.0

%

 

-

0.0

%

Certificates of deposits

 

874,490

25.4

%

 

773,040

24.2

%

 

970,107

30.5

%

Brokered deposits

 

578,804

16.8

%

 

412,602

12.9

%

 

299,420

9.4

%

 
Total deposits

$

3,441,245

100.0

%

$

3,192,644

100.0

%

$

3,178,959

100.0

%

 
1 Includes carrying value adjustments of $32.5 million, $33.9 million and $37.5 million related to terminated interest rate swaps associated with public finance loans as of December 31, 2022, September 30, 2022 and December 31, 2021, respectively.
First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
 
 
Three Months Ended Twelve Months Ended
 
December 31, September 30, December 31, December 31, December 31,

2022

2022

2021

2022

2021

 
Total equity - GAAP

$

364,974

 

$

360,857

 

$

380,338

 

$

364,974

 

$

380,338

 

Adjustments:
Goodwill

 

(4,687

)

 

(4,687

)

 

(4,687

)

 

(4,687

)

 

(4,687

)

Tangible common equity

$

360,287

 

$

356,170

 

$

375,651

 

$

360,287

 

$

375,651

 

 
Total assets - GAAP

$

4,543,104

 

$

4,264,424

 

$

4,210,994

 

$

4,543,104

 

$

4,210,994

 

Adjustments:
Goodwill

 

(4,687

)

 

(4,687

)

 

(4,687

)

 

(4,687

)

 

(4,687

)

Tangible assets

$

4,538,417

 

$

4,259,737

 

$

4,206,307

 

$

4,538,417

 

$

4,206,307

 

 
Common shares outstanding

 

9,065,883

 

 

9,290,885

 

 

9,754,455

 

 

9,065,883

 

 

9,754,455

 

 
Book value per common share

$

40.26

 

$

38.84

 

$

38.99

 

$

40.26

 

$

38.99

 

Effect of goodwill

 

(0.52

)

 

(0.50

)

 

(0.48

)

 

(0.52

)

 

(0.48

)

Tangible book value per common share

$

39.74

 

$

38.34

 

$

38.51

 

$

39.74

 

$

38.51

 

 
Total shareholders' equity to assets

 

8.03

%

 

8.46

%

 

9.03

%

 

8.03

%

 

9.03

%

Effect of goodwill

 

(0.09

%)

 

(0.10

%)

 

(0.10

%)

 

(0.09

%)

 

(0.10

%)

Tangible common equity to tangible assets

 

7.94

%

 

8.36

%

 

8.93

%

 

7.94

%

 

8.93

%

 
Total average equity - GAAP

$

364,657

 

$

371,303

 

$

376,832

 

$

372,844

 

$

358,105

 

Adjustments:
Average goodwill

 

(4,687

)

 

(4,687

)

 

(4,687

)

 

(4,687

)

 

(4,687

)

Average tangible common equity

$

359,970

 

$

366,616

 

$

372,145

 

$

368,157

 

$

353,418

 

 
Return on average shareholders' equity

 

6.91

%

 

9.01

%

 

13.14

%

 

9.53

%

 

13.44

%

Effect of goodwill

 

0.09

%

 

0.12

%

 

0.16

%

 

0.12

%

 

0.17

%

Return on average tangible common equity

 

7.00

%

 

9.13

%

 

13.30

%

 

9.65

%

 

13.61

%

 
Total interest income

$

45,669

 

$

39,099

 

$

34,192

 

$

156,908

 

$

133,883

 

Adjustments:
Fully-taxable equivalent adjustments 1

 

1,384

 

 

1,280

 

 

1,348

 

 

5,355

 

 

5,453

 

Total interest income - FTE

$

47,053

 

$

40,379

 

$

35,540

 

$

162,263

 

$

139,336

 

 
Total interest income - FTE

$

47,053

 

$

40,379

 

$

35,540

 

$

162,263

 

$

139,336

 

Adjustments:
Income from tax refund advance loans

 

-

 

 

-

 

 

-

 

 

(3,013

)

 

-

 

Adjusted total interest income - FTE

$

47,053

 

$

40,379

 

$

35,540

 

$

159,250

 

$

139,336

 

 
Net interest income

$

21,669

 

$

23,994

 

$

23,505

 

$

97,093

 

$

86,556

 

Adjustments:
Fully-taxable equivalent adjustments 1

 

1,384

 

 

1,280

 

 

1,348

 

 

5,355

 

 

5,453

 

Net interest income - FTE

$

23,053

 

$

25,274

 

$

24,853

 

$

102,448

 

$

92,009

 

 
Net interest income

$

21,669

 

$

23,994

 

$

23,505

 

$

97,093

 

$

86,556

 

Adjustments:
Subordinated debt redemption cost

 

-

 

 

-

 

 

-

 

 

-

 

 

810

 

Income from tax refund advance loans

 

-

 

 

-

 

 

-

 

 

(3,013

)

 

-

 

Adjusted net interest income

$

21,669

 

$

23,994

 

$

23,505

 

$

94,080

 

$

87,366

 

 
Net interest income

$

21,669

 

$

23,994

 

$

23,505

 

$

97,093

 

$

86,556

 

Adjustments:
Fully-taxable equivalent adjustments 1

 

1,384

 

 

1,280

 

 

1,348

 

 

5,355

 

 

5,453

 

Subordinated debt redemption cost

 

-

 

 

-

 

 

-

 

 

-

 

 

810

 

Income from tax refund advance loans

 

-

 

 

-

 

 

-

 

 

(3,013

)

 

-

 

Adjusted net interest income - FTE

$

23,053

 

$

25,274

 

$

24,853

 

$

99,435

 

$

92,819

 

 
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 Twelve Months Ended
 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 
Net interest margin

 

2.09

%

 

2.40

%

 

2.30

%

 

2.41

%

 

2.11

%

Effect of fully-taxable equivalent adjustments 1

 

0.13

%

 

0.13

%

 

0.13

%

 

0.13

%

 

0.14

%

Net interest margin - FTE

 

2.22

%

 

2.53

%

 

2.43

%

 

2.54

%

 

2.25

%

 
Net interest margin

 

2.09

%

 

2.40

%

 

2.30

%

 

2.41

%

 

2.11

%

Effect of subordinated debt redemption cost

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

 

0.02

%

Effect of income from tax refund advance loans

 

0.00

%

 

0.00

%

 

0.00

%

 

(0.07

%)

 

0.00

%

Adjusted net interest margin

 

2.09

%