First Internet sees record annual profits

Strong loan growth helped Fishers-based First Internet Bancorp. achieve a record full-year profit last year, the company said late Wednesday.

The parent of First Internet Bank reported 2018 earnings of $21.9 million, or $2.30 per share, up from $15.2 million, or $2.13 per share, in 2017.

“First Internet Bancorp had another successful year during 2018 as we reported record annual net income, driven by full-year loan growth of 30 percent, excellent credit quality and well-managed expenses,” CEO David Becker said in a written statement. “We generated strong growth in both commercial and consumer loans, particularly in a number of our specialty lending areas, including single-tenant lease financing, public finance, health care finance and horse trailer and recreational vehicle lending."

As of Dec. 31, the bank’s loan portfolio totaled $2.7 billion. Commercial loan balances made up $2 billion of that total, and consumer loan balances accounted for the rest.

For the fourth quarter alone, First Internet reported profits of $3.6 million, or 35 cents per diluted share; as compared with $3.5 million, or 41 cents per diluted share, during the same period a year earlier. 

The company said its fourth-quarter earnings were affected by a $2.4 million pretax write-down it took on the value of its its commercial other real estate owned, also known as OREO. Excluding this charge, the bank’s adjusted net income for the quarter was $5.5 million.

Net interest income for the fourth quarter totaled $15.4 million, which was flat from the same period in 2017.

Noninterest income, at $2 million, declined from $2.5 million the year before. 

The fourth quarter’s noninterest expenses, which included the OREO write-down, totaled $12.7 million. In comparison, the bank had $9.7 million in noninterest expenses during the fourth quarter of 2017.