In This Article:
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Net Income: $25.3 million for the year, tripled compared to 2023.
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Diluted Earnings Per Share: $2.88 for the year, tripled compared to 2023.
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Annual Net Income: $87.4 million, up 17% year-over-year.
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Gain on Sale Revenue: Increased by over 60% year-over-year.
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Noninterest Income Growth: Up 81% from 2023.
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Total Adjusted Revenue Growth: Almost 30% year-over-year.
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Loan Growth: Balances increased by $330 million, a 9% rise over 2023.
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Net Interest Income (Q4 2024): Up 17% compared to Q4 2023.
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Net Income (Q4 2024): $7.3 million, up 5% from the previous quarter.
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Diluted Earnings Per Share (Q4 2024): $0.83, up 4% from the previous quarter.
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Net Charge-offs: $9.4 million, primarily related to the SBA portfolio.
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Nonperforming Loans to Total Loans: 68 basis points.
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Nonperforming Assets to Total Assets: 50 basis points.
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Average Balance of Deposits (Q4 2024): Increased by $344 million or 8%.
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Net Interest Margin (Q4 2024): 1.67%, up five basis points from the previous quarter.
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Noninterest Income (Q4 2024): $16 million, up 32.5% from the previous quarter.
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Allowance for Credit Losses: 1.07% of total loans at the end of Q4 2024.
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Tangible Common Equity Ratio: 6.62%, up eight basis points from the previous quarter.
Release Date: January 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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First Internet Bancorp (NASDAQ:INBK) reported a significant improvement in financial results for 2024, with net income and diluted earnings per share tripling compared to 2023.
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The company achieved strong loan growth, particularly in construction investor, commercial real estate, and small business lending, contributing to a 9% increase in balances over 2023.
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Net interest income increased for the fifth consecutive quarter, with an 8% rise in the fourth quarter of 2024 compared to the previous quarter.
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The SBA lending business had an outstanding year, driving noninterest income substantially higher and contributing to greater revenue diversification.
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First Internet Bancorp (NASDAQ:INBK) maintained a solid liquidity position, allowing for significant paydown of federal home loan bank borrowings while continuing to optimize the balance sheet.
Negative Points
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The company recognized $9.4 million of net charge-offs in the fourth quarter, primarily related to the SBA portfolio, indicating some challenges in credit quality.
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Nonperforming loans increased, particularly in franchise finance and small business lending, although the company maintains that overall credit quality remains sound.
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The decline in gain on sale revenue was attributed to timing issues, as a large portion of SBA loan originations closed late in the quarter, delaying revenue recognition.
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Provision for credit losses increased significantly in the fourth quarter, reflecting elevated net charge-off activity and adjustments to the small business lending allowance for credit losses.
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The company anticipates continued charge-offs in the SBA portfolio, with a conservative approach to provisioning for credit losses in 2025.