Q3 2024 First Internet Bancorp Earnings Call Transcript

Oct 24, 2024 / 06:00 PM GMT

Release Date Price: €33.4

Transcript 10-Q8-K

Key Points

Positve

First Internet Bancorp (INBK) reported its fourth consecutive quarter of double-digit earnings growth, with net income up 21% and diluted earnings per share up over 19% from the previous quarter.
The company experienced strong growth in non-interest income, driven by the expansion of its national SBA platform, resulting in a record gain on sale revenue.
Net interest income increased by over 2% from the prior quarter, supported by solid loan growth and higher yields on earning assets.
The company's small business lending team delivered a standout quarter, with SBA loan originations up 35% year-to-date and sold loan volume up almost 60% compared to 2023.
First Internet Bancorp (INBK) achieved a 3.6% increase in tangible book value per share in the third quarter, marking an almost 11% increase year-over-year.

Negative

The excess liquidity from robust deposit growth caused a short-term drag on net interest margin, impacting profitability.
There was an increase in non-performing loans during the quarter, particularly in franchise finance, small business lending, and residential mortgage sectors.
Net interest margin decreased by 5 basis points from the second quarter, partly due to carrying higher cash balances.
The company faced challenges with certain franchise finance loans, leading to delinquencies and loans moving to nonaccrual status.
Noninterest expense for the quarter increased by $450,000, primarily due to higher salaries and employee benefits driven by increased small business lending commissions.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

INBK.OQ - First Internet Bancorp
Q3 2024 First Internet Bancorp Earnings Call
Oct 24, 2024 / 06:00PM GMT

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Conference Call Participants
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* Ben Brodkowitz
* David Becker
* Kenneth Lovik
* Brett Rabatin
* Timothy Switzer
* Nathan Race
* George Sutton

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Presentation
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Operator [1]
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Good day, everyone, and welcome to the First Internet Bancorp earnings conference call for the third quarter of 2024. (Operator Instructions) Please note that today's event is being recorded.

I would now like to turn the conference over to Ben Brodkowitz from Financial Profiles, Inc. Ben, please go ahead.

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Ben Brodkowitz, [2]
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