Fishers-based First Internet Bancorp says strong loan growth helped push the bank’s profit to a new quarterly record.
On Thursday, the parent company of First Internet Bank reported second-quarter profit of $4 million, or 61 cents per share, up from $2.8 million, or 57 cents per share, during the same period of 2016. The bank issued 1.9 million shares of common stock from May to December last year, which is why per-share profit rose more modestly than overall profit.
Total loans as of June 30 were $1.7 billion, up 19 percent as compared with the previous quarter and up 53 percent as compared with a year ago. Much of that loan growth came from public finance loans—a new market for the bank—and single-tenant lease financing.
First Internet Bank launched its public finance department during the first quarter. Its total loans in the category stood at $180 million as of June 30, up 131 percent from the end of the first quarter.
Single-tenant lease financing balances stood at $748 million as of June 30, up 12 percent from the end of the first quarter and up 49 percent from a year earlier.
Net interest income—the difference between what the bank paid out in interest on accounts and what it earned in interest from loans—totaled $13 million last quarter, up 13 percent from the previous quarter and up 39 percent from a year earlier.
Non-interest income totaled $2.7 million during the second quarter, down from $3.7 million a year earlier. This source of income includes items such as service charges, fees and income from mortgage banking activities.
Non-interest expense—items like salaries, benefits, facility costs and professional fees—totaled $8.9 million last quarter, up from $7.9 million a year earlier.
Shares of First Internet Bank closed at $28.40 Thursday, up 1 percent.