First Internet Bank reports record quarterly, annual profits

Fishers-based First Internet Bancorp saw its stock climb to a 52-week high in after-hours trading Wednesday after the company reported record fourth-quarter and full-year profits.

During the fourth quarter, First Internet earned $11.1 million, or $1.12 per share, up from $7.1 million, or 72 cents per share, during the same period of 2019.

Full-year profit was $29.5 million, or $2.99 per share, compared with $25.2 million, or $2.51 per share, the previous year. The full-year 2020 results included a $2.1 million pretax write down of commercial real estate. Otherwise, the bank would have recorded a profit of $31.1 million, or $3.16 per share.

First Internet issued its financial report after the close of stock trading on Wednesday. Shares of the company, which have traded between $10.47 and $31.50 each over the past year, closed at $30.45 and climbed to $32 within an hour after the market’s 4 p.m. close.

The bank said it saw especially strong performance in its direct-to-consumer mortgage business as well as Small Business Administration loans.

Total loans as of Dec. 31 were $3.1 billion, up 1.5% from the end of the third quarter and up 3.2% from the end of 2019.

First Internet said its loan portfolio remained strong despite the loan deferrals it granted to clients during the early months of the pandemic.

“Well before the year ended, nearly all of our borrowers who needed payment relief resumed making payments, and our continued low level of nonperforming loans reflects this,” Chairman, President and CEO David Becker said in written remarks. “We deepened ties with our clients through this experience and remain optimistic in our customers’ collective ability to fully bounce back and succeed in the year ahead.”

Loans delinquent for 30 days or more represented 0.17% of the bank’s total loan portfolio as of Dec. 31, down from 0.22% at the end of the third quarter and down from 0.24% as of the end of 2019.

Net interest income for the quarter was $18.9 million, up from $15.4 million a year earlier. Full-year net income was $64.5 million, up from $63 million in 2019.

Noninterest income for the quarter was $12.7 million, up from $5.4 million a year earlier. Full-year noninterest income more than doubled, from $16.8 million in 2019 to $36.3 million last year. For both the quarter and the full year, much of the increases came from mortgage banking activities and gains from loan sales.

Noninterest expenses totaled $14.5 million in the fourth quarter, up from $12.6 million during the same period a year earlier. For the full year, noninterest expenses totaled $57.7 million, up from $46.6 million in 2019.