First Internet Bancorp(US:INBK)2020-11-05 21:58Financial Performance - Net income for the three months ended September 30, 2020, was $8,411 thousand, a 33% increase compared to $6,326 thousand for the same period in 2019[13]. - Net income for the nine months ended September 30, 2020, was $18,362 thousand, compared to $18,143 thousand for the same period in 2019, reflecting a year-over-year increase of 1.2%[22]. - Comprehensive income for the three months ended September 30, 2020, was $10,459 thousand, compared to $4,849 thousand in the same period of 2019, reflecting a growth of 116%[15]. - Basic earnings per share for Q3 2020 was $0.86, up from $0.63 in Q3 2019, representing a growth of 36.5%[13]. - Net revenue from mortgage banking activities for Q3 2020 was $9.63 million, a significant increase from $4.31 million in Q3 2019, representing a growth of 124%[165]. Asset Growth - Total assets increased to $4,333,624 thousand as of September 30, 2020, up from $4,100,083 thousand at December 31, 2019, representing a growth of 5.7%[11]. - Total deposits rose to $3,372,391 thousand as of September 30, 2020, compared to $3,153,963 thousand at December 31, 2019, marking an increase of 7%[11]. - Retained earnings increased to $116,241 thousand as of September 30, 2020, up from $99,681 thousand at December 31, 2019, indicating a growth of 16.6%[11]. - Total shareholders' equity increased from $304,913 thousand on January 1, 2020, to $318,102 thousand by September 30, 2020, representing a growth of 4.3%[19]. Loan and Deposit Activity - Total loans as of September 30, 2020, amounted to $3,012,914,000, an increase from $2,963,547,000 as of December 31, 2019, representing a growth of 1.7%[45]. - The net increase in deposits for the nine months ended September 30, 2020, was $218,428 thousand, a decrease from $476,891 thousand in the same period of 2019[22]. - Loans originated for sale totaled $431,384 thousand for the nine months ended September 30, 2020, slightly higher than $430,453 thousand in the same period of 2019[22]. Noninterest Income and Expenses - Noninterest income for the three months ended September 30, 2020, was $12,495 thousand, significantly higher than $5,558 thousand in Q3 2019, indicating a growth of 124%[13]. - Total noninterest expense increased to $16,412 thousand for Q3 2020, compared to $11,203 thousand in Q3 2019, an increase of 46.5%[13]. Loan Loss Provisions - The allowance for loan losses increased to $26,917 thousand as of September 30, 2020, compared to $21,840 thousand at December 31, 2019, reflecting a rise of 23%[11]. - The provision for loan losses increased to $6,461 thousand for the nine months ended September 30, 2020, compared to $5,498 thousand in the same period of 2019, indicating a rise of 17.5%[22]. - The total allowance for loan losses (ALLL) increased to $26,917,000 as of September 30, 2020, compared to $21,683,000 at the same date in 2019, reflecting a year-over-year increase of approximately 24.1%[61]. Securities and Investments - Total available-for-sale securities as of September 30, 2020, amounted to $528,311,000, with gross unrealized gains of $11,186,000 and losses of $10,927,000[33]. - The fair value of securities held-to-maturity as of September 30, 2020, was $69,176,000, with an amortized cost of $68,254,000[33]. - The total fair value of available-for-sale securities with unrealized losses was $185,231,000, with total unrealized losses of $10,927,000 as of September 30, 2020[42]. Credit Quality and Risk Management - The Company utilizes a risk grading matrix to assess the quality of its loans, categorizing them into "Pass," "Special Mention," "Substandard," "Doubtful," and "Loss" classifications[67]. - The total charge-offs for the nine months ended September 30, 2020, were $1,755,000, compared to $1,948,000 for the same period in 2019, showing a decrease of approximately 9.9%[63]. - The Company reversed all accrued but unpaid interest on loans placed on nonaccrual status, which is triggered when a loan becomes 90 days delinquent[66]. Operational Developments - The Company has focused on expanding its small business lending capabilities, acquiring a loan portfolio and team from First Colorado National Bank in November 2019[205]. - The Company has continued to hire additional small business sales, credit, and operations personnel to build out its nationwide small business platform[205]. - The Company has implemented social distancing policies and increased cleaning protocols at all locations in response to COVID-19[208].