Q2 2024 First Internet Bancorp Earnings Call Transcript
Key Points
- First Internet Bancorp (INBK) reported three consecutive quarters of double-digit earnings growth and improved profitability.
- Strong deposit growth through the first half of the year, allowing the company to pay down higher-cost broker deposits.
- Net interest income increased by almost 3%, and net interest margin expanded by 1 basis point over the prior quarter.
- SBA business continues to perform exceptionally well, with year-to-date SBA originations up 15% and solid loan volume up 58%.
- Credit quality remains healthy, with nonperforming loans to total loans at 33 basis points and nonperforming assets to total assets at 24 basis points.
- Provision for credit losses increased to $4 million in the second quarter, driven by loan growth and changes in the composition of the loan portfolio.
- Exposure to Red Lobster's Chapter 11 bankruptcy filing, although balances have been reduced by $3 million.
- Net charge-offs remain relatively low but are mostly from the franchise finance and small business portfolios.
- Non-interest expense for the quarter was $22.3 million, up $1.3 million from the first quarter, including $600,000 of non-recurring expenses.
- Continued regulatory scrutiny in the fintech BaaS space, requiring increased due diligence and adjustments in operations.
Good day, everyone, and welcome to the First Internet Bancorp earnings conference call for the second quarter of 2024. At this time, all lines are in a listen only mode and following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, July 25th, 2024.
Thank you, Lara. Good day, everyone, and thank you for joining us to discuss First Internet Bancorp's financial results for the second quarter of 2024. The company issued its earnings press release yesterday afternoon, and it's available on the company's website. In addition, the company has included a slide presentation that you can refer to during this call.
You can also access these slides on the website. Joining us today from the management team are Chairman and CEO, David Becker; and Executive Vice President and CFO, Ken Lovik. David will provide an overview, and Ken will discuss the financial
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
