First Internet sees quarterly growth in profit, loans

Fishers-based First Internet Bancorp on Wednesday reported a strong financial performance in the third quarter, driven by growth in its loan portfolio.

The parent of First Internet Bank reported total loans of $2.5 billion as of Sept. 30, up 5 percent over June 30 and up 34 percent over Sept. 30, 2017. Much of that growth came from the company’s commercial loan portfolio.

The company reported quarterly income of $6.3 million, or 61 cents per share, up 29 percent from a year ago.
 
“We are pleased with our results in the third quarter, driven by solid loan growth, excellent credit quality and well-managed expenses,” First Internet Chairman, President and CEO David Becker said in written comments. “We continue to take a disciplined approach to capital deployment and execute on our lending strategies, including our specialized areas of focus in public finance, health care and single-tenant lease financing.”

Commercial loan balances totaled $1.8 billion, up 38 percent from a year ago. Consumer loan balances totaled $661.9 million, up 22 percent over a year ago.

Loan quality improved. Non-performing loans made up 0.01 percent of total loans as of Sept. 30, down from 0.14 percent a year earlier.

Net interest income was $16 million for the quarter, up 13 percent from a year earlier.

Non-interest income declined to $2 million, from $3.1 million a year ago, mostly because of a decrease in revenue from mortgage banking activities.

Non-interest expenses were $10 million, up from $9.4 million a year ago. 

Shares of First Internet were trading at $25.29 Thursday morning, up nearly 1 percent from the previous day’s close. Shares of the company have declined 33 percent from the beginning of the year.