First Internet Bancorp(INBK) - 2024 Q4 - Annual Report

Financial Performance - For the twelve months ended December 31, 2024, net income increased to $25.3 million, or$2.88 per diluted share, compared to $8.4 million, or$0.95 per diluted share for the same period in 2023[169]. - Adjusted net income for 2024 was $22.0 million, with adjusted diluted earnings per share at$2.51, reflecting a strong performance despite challenges[171]. - For the twelve months ended December 31, 2023, net income decreased by $27.1 million, primarily due to a$22.2 million, or 22.9%, drop in net interest income[174]. - Adjusted net income for 2023 was $16.2 million, with adjusted diluted earnings per share at$1.83, indicating a challenging year[175]. - Total revenue for 2024 increased to $134,722,000 from$101,029,000 in 2023, representing a growth of 33.3%[249]. - Adjusted total revenue for 2024 was $129,989,000, up from$100,964,000 in 2023, indicating a growth of 28.8%[249]. - Diluted earnings per share (EPS) for 2024 was $2.88, up from$0.95 in 2023, representing a growth of 203.2%[251]. Income Sources - Noninterest income rose by $21.2 million, or 81.2$12.5 million, or 16.7%, contributing to the overall net income growth[170]. - Noninterest income totaled $47.3 million for the twelve months ended December 31, 2024, representing an increase of$21.2 million, or 81.2%, compared to $26.1 million for the twelve months ended December 31, 2023[185]. - The increase in noninterest income was driven primarily by a$12.8 million increase in gain on sale of loans, reflecting a 48.8% increase in the volume of SBA 7(a) guaranteed loan sales[185]. - Net interest income for the twelve months ended December 31, 2024 was $87.4 million, an increase of$12.5 million, or 16.7%, compared to $74.9 million for the twelve months ended December 31, 2023[180]. - Total interest income increased by$52.4 million, or 21.9%, to $291.9 million for the twelve months ended December 31, 2024 compared to$239.4 million for the twelve months ended December 31, 2023[180]. Asset and Liability Management - Total assets increased by $570.3 million, or 11.0$5.7 billion as of December 31, 2024 compared to $5.2 billion as of December 31, 2023[192]. - Total deposits increased by$866.2 million, or 21.3%, as of December 31, 2024, which was used to fund loan growth[192]. - Loan balances increased by $330.4 million, or 8.6$21.3 million, or 5.9%, to $384.1 million as of December 31, 2024, compared to the previous year[194]. - Total contractual obligations amounted to$5.33 billion as of December 31, 2024[243]. Credit Quality - Nonperforming loans increased by $18.5 million, or 185.3$28.4 million as of December 31, 2024, primarily due to small business lending and residential mortgage portfolios[209]. - Total nonperforming assets rose by $18.6 million, or 179.2$28.9 million as of December 31, 2024[209]. - The ratio of total nonperforming loans to total loans increased to 0.68% as of December 31, 2024, from 0.26% in the previous year[205]. - The allowance for credit losses on loans to total loans was 1.07% as of December 31, 2024, compared to 1.01% as of December 31, 2023[205]. - The allowance for credit losses (ACL) increased to $44.8 million as of December 31, 2024, from$38.8 million in 2023, reflecting a growth rate of 25.8%[215]. - The provision for credit losses for loans was $18.8 million for the twelve months ended December 31, 2024, up from$15.5 million in 2023, marking a 20.6% increase[216]. Capital and Equity - Book value per common share rose 5.6% to $44.31 as of December 31, 2024, driven by increases in total shareholders' equity[195]. - Tangible common equity totaled$379.4 million as of December 31, 2024, reflecting a 5.9% increase from the previous year[194]. - The ratio of total shareholders' equity to total assets decreased to 6.69% as of December 31, 2024, from 7.02% as of December 31, 2023[194]. - Return on average shareholders' equity improved to 6.70% in 2024 from 2.35% in 2023[248]. - Adjusted return on average shareholders' equity improved to 5.83% in 2024 from 4.54% in 2023, down from 9.98% in 2022[252]. Market and Economic Conditions - The estimated impact on net interest income (NII) for Year 1 under a -200 basis points scenario is an increase of 8.88%[271]. - For Year 2, the NII is projected to increase by 23.01% under a -200 basis points scenario[272]. - The estimated economic value of equity (EVE) is projected to increase by 23.73% under a -200 basis points scenario for Year 1[271].