FIRST INTERNET BANCORP IMAGINE
MORE®
2022 AT A GLANCE
$
3 .4 B
T O T A L D E P O S I T S
$
$
4 .5 B
T O T A L A S S E T S
%
FROM
3 .5 B
T O T A L L O A N S
U P
2 1
2 0 2 1
%
%
3
WHERE IMAGINATION LEADS
Since our founding in 1999, when we became the first state chartered, FDIC-insured bank to operate entirely online, we have consistently delivered on our promise to IMAGINE MORE.
BALANCE SHEET
REVENUE
($ in millions)
($ in thousands)
$119,400
$118,350
Total Assets Total Loans
$4,543
Total Annual RevenueNoninterest IncomeNet Interest Income
$32,844
$21,257
$100,877
$4,246 $4,211
$4,100
$3,542
$3,499
$36,336 $79,756
$71,027
$86,556
$97,093
$2,716
$2,964
$3,059$2,888
$16,789
$8,760
$62,267
$62,967
$64,541
2018
2019
2020
2021
2022
2018
2019
2020
2021
2022
BOOK VALUE PER SHARE
DILUTED EPS
Book Value Per ShareTangible Book Value Per Share $40.26$39.74
$4.82
$38.99 $38.51
$33.77 $33.29
$31.30 $30.82 $2.99
$28.39 $27.93
$2.51
$2.30
2018
2019
2020
2021
2022
2018
2019
2020
2021
$3.70
2022
2022
ANNUAL REPORT
1
DEAR SHAREHOLDER,
Together, we advance a better banking experience for our customers and uncover new growth opportunities every day.
David B. Becker Chairman and
Chief Executive Officer
It has been said that without leaps of imagination, we lose the excitement of possibilities. And, in what seems to be a challenging market, we do not see obstacles, but rather real possibilities. Nearly 25 years ago, we opened our virtual doors with a singular purpose: that consumers and business owners could be empowered to connect directly with their finances online and at their convenience. That notion - fueled by our entrepreneurial spirit - continues to drive us today, informing the strategic decisions we make and creating avenues for our customers and our team to IMAGINE MORE.
This mindset allows us to prosper through externally driven, short-term adversity while delivering long-term shareholder value. Coupling that with our stringent underwriting and credit standards, and excellent asset quality and strong capital levels, we are well positioned to weather any potential economic slowdown.
We continue to focus on what we can control while leveraging our unique strengths - technology, creativity and adaptability -
2 FIRST INTERNET BANCORP
to drive innovative products and solutions for our customers. 2022 was, after all, not without its high points.
Our lending teams generated strong production, as portfolio balances totaled $3.5 billion at year end, representing an annual increase of 21 percent. Net interest income was up 12.2 percent for the year as we deployed cash balances to fund loan growth, driving average loan balances higher along with higher loan yields from a rise
in interest rates. Our SBA lending team has become one of the fastest growing in the country; recently placing in the Top 15 for Small Business Administration 7(a) lenders.
While we achieved exceptional results in loan growth, we did so while maintaining our commitment to credit quality. In fact, our asset quality improved on a year-over-year basis, with nonperforming assets representing just 17 basis points of total assets at year-end and just 22 basis points of total loans - both well below industry averages.
In our ongoing effort to broaden noninterest revenue streams, we made significant strides in our Banking as a Service (BaaS) offering last year. We went live with a platform partner, Increase, and launched our first program through that partnership with Ramp, a corporate card and spend management provider. We have several other fintechs near pilot phase and continue to consider new opportunities with Increase. We also anticipate the launch of a fintech through our partnership with Treasury Prime, expected to be onboarded during the second quarter of this year. Our firm commitment to BaaS initiatives further demonstrates our support for entrepreneurial ventures. More importantly, these efforts position us to deliver innovative financial solutions, while also providing recurring noninterest revenues to our shareholders.
The past year also saw the introduction of Do More Business™ Checking - an account designed to help small business owners accomplish more in less time. Do More enables business owners to earn interest and make unlimited transactions, including bill pay, and provides access to a dedicated customer success team. In addition, they can now link multiple financial accounts including their business and personal checking or savings, credit cards, loans and investments. This provides greater day-to-day monetarycontrol, with insight into spending trends by category, simplified budgeting and seamless transfer of funds between accounts. We continue to explore advanced financial applications that can simplify owners' daily operations and fuel growth.
Despite these advancements, sometimes to move forward, you must also make difficult decisions. In reviewing mortgage industry forecasts, it became apparent that the segment outlook was unfavorable for the coming years. As a result, we made the necessary determination to exit the consumer mortgage business.
We are providing former team members with tools and resources to help transition to new opportunities and appreciate their contributions to the Bank. While decisions like this are never easy, it removes an element of volatility from our earnings and will ultimately result in a stronger, more efficient company.
Entrepreneurship runs deep at First Internet Bank, and our team members help cultivate and nurture the roots that sustain it. It's why we have been named one of the "Best Banks to Work For" by American Banker for ten consecutive years. That mindset is what keeps us moving forward - ever-adapting, ever-evolving, ever-growing. I appreciate each member of our team for helping establish what I believe is an unparalleled work environment. Together, we advance a better banking experience for our customers and uncover new growth opportunities every day. On behalf of our organization, I would like to thank our shareholders for the ongoing support they provide as we continue to IMAGINE MORE.
DAVID B. BECKER
Chairman and
Chief Executive Officer
2022
ANNUAL REPORT 3
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First Internet Bancorp published this content on 28 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 March 2023 22:05:41 UTC.
