First Internet Bancorp's Strong Financial Performance and Growth Strategies
2024-04-26
First Internet Bancorp recently held its earnings conference call for the first quarter of 2024, with key participants including Chairman and CEO, David Becker, and Executive Vice President and CFO, Ken Lovik. The call began with cautionary statements regarding forward-looking statements about the company's future performance and financial condition, highlighting potential risks and uncertainties.
During the call, David Becker discussed the company's performance in the third quarter of 2023, noting a turnaround in net interest margin and net interest income, leading to strong earnings growth and improved profitability. The company demonstrated progress in repositioning its loan portfolio and optimizing its balance sheet mix, resulting in consecutive quarters of growth and profitability.
Key themes for the quarter included transitioning the loan portfolio composition, balance sheet optimization, strong deposit and net loan growth, improved net interest income and margin, and positive revenue growth. Net interest income and margin performed well compared to previous quarters and the same quarter a year ago, with notable growth and expansion.
The SBA business performed exceptionally well, despite seasonal factors, delivering solid production and record gain on sale revenue. Credit quality metrics remained strong, with low nonperforming assets and net charge-offs. Capital levels were healthy, with tangible book value per share increasing year-over-year.
Looking ahead, the company's focus was on increasing quarterly fintech revenue, with expectations of significant growth compared to the previous year. Deposit balances grew, and new service channel activations boosted fintech revenue. The company's lending activity, CD performance, and strategies to reduce deposit costs and improve liquidity were also discussed.
Overall, First Internet Bancorp's earnings call highlighted a positive outlook for the company, emphasizing growth, profitability, and strategic initiatives to drive performance in the evolving business landscape.