FIRST INTERNET BANCORP Item 2.02 Results of Operations and Financial Condition
On
OnJanuary 26 , at2:00 p.m. (Eastern Time) , the Company will host a conference call and webcast to discuss financial results for the quarter and year endedDecember 31, 2022 . The electronic presentation slides, which will accompany the call and webcast, are furnished as Exhibit 99.2 and are incorporated by reference herein. The information contained in this Item 2.02, including Exhibit 99.1 and Exhibit 99.2, is being furnished and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any filing made by us under the Exchange Act or Securities Act of 1933, as amended, regardless of any general incorporation language in any such filing, except as shall be expressly set forth by specific reference in such filing.
Item 2.05 Costs Associated with Exit or Disposal Activities
Effective today, and because of the steep decline in mortgage volumes and the negative outlook for mortgage lending over the next several years, the Company committed to exiting the consumer mortgage business during the first quarter of 2023. 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 the consumer mortgage business. The costs, all of which are expected to result in cash expenditures, consist of approximately$3.1 million in severance and other employee-related costs and approximately$0.2 million in contract termination costs.
Item 9.01 Financial Statements and Exhibits
Number Description Method of filing
99.1 Press release dated January 25, 2023 Furnished electronically
99.2 Presentation slides dated January 25, 2023 Furnished electronically
104 Cover Page Interactive Data File (embedded in the
cover page formatted in inline XBRL)
Cautionary Note Regarding Forward-Looking Statements
This Report includes "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act, including statements with respect to the expected costs and savings of exiting the consumer mortgage business. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the Company's control. The Company cautions you that the forward-looking statements presented in this Report are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this Report. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "expected", "approximately", "estimates", "may," "plan," or "will," or the negative thereof or variations thereon or similar terminology. Factors that may cause actual results to differ materially from those made or suggested by the forward-looking statements contained in this Report include those identified in the Company's most recent annual report on Form 10-K and subsequent filings with theSecurities and Exchange Commission . Any forward-looking statements presented herein are made only as of the date of this Report, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
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