First Internet Bancorp (INBK) Announces Q3 2023 Earnings
First Internet Bancorp (NASDAQ:INBK) reported a net income of $3.4 million and diluted earnings per share of $0.39 for Q3 2023.
The company saw a deposit growth of $229.2 million, a 5.9% increase from Q2 2023.
Loan growth was reported at $88.2 million, a 2.4% increase from the previous quarter.
The company repurchased 97,834 common shares at an average price of $18.29 per share.
First Internet Bancorp (NASDAQ:INBK) released its earnings report for the third quarter ended September 30, 2023, on October 25, 2023. The company reported a net income of $3.4 million and diluted earnings per share of $0.39. The company also reported a deposit growth of $229.2 million, a 5.9% increase from the second quarter of 2023, and a loan growth of $88.2 million, a 2.4% increase from the previous quarter.
Financial Highlights
The company's loans to deposits ratio was 91.5%, compared to 94.6% at the end of the previous quarter. The net interest margin was 1.39% and the fully-taxable equivalent net interest margin was 1.49%, compared to 1.53% and 1.64%, respectively, for the second quarter of 2023. Nonperforming loans declined to 0.16% of total loans. The company also repurchased 97,834 common shares at an average price of $18.29 per share. The tangible common equity to tangible assets was 6.64% and the CET1 ratio was 9.59%. The tangible book value per share was $39.57, compared to $39.85 at the end of the previous quarter.
CEO Commentary
We experienced strong deposit growth and bolstered our balance sheet liquidity during the third quarter," said David Becker, Chairman and Chief Executive Officer. "At the same time, we further optimized our loan portfolio composition and overall balance sheet mix as new origination yields continued to improve while the pace of deposit cost increases and the compression in our net interest margin was the slowest it has been in five quarters."
Net Interest Income and Net Interest Margin
Net interest income for the third quarter of 2023 was $17.4 million, compared to $18.1 million for the second quarter of 2023, and $24.0 million for the third quarter of 2022. On a fully-taxable equivalent basis, net interest income for the third quarter of 2023 was $18.6 million, compared to $19.5 million for the second quarter of 2023, and $25.3 million for the third quarter of 2022.
Loans and Credit Quality
Total loans as of September 30, 2023 were $3.7 billion, an increase of $88.2 million, or 2.4%, compared to June 30, 2023, and an increase of $479.2 million, or 14.7%, compared to September 30, 2022. Nonperforming loans were 0.16% of total loans as of September 30, 2023, compared to 0.17% as of June 30, 2023, and 0.18% as of September 30, 2022.
Capital
As of September 30, 2023, total shareholders equity was $347.7 million, a decrease of $6.6 million, or 1.9%, compared to June 30, 2023, and a decrease of $13.1 million, or 3.6%, compared to September 30, 2022. The decrease in shareholders equity during the third quarter of 2023 was due primarily to an increase in accumulated other comprehensive loss and stock repurchase activity, partially offset by net income earned during the quarter.
Explore the complete 8-K earnings release (here) from First Internet Bancorp for further details.
This article first appeared on GuruFocus.
