First Internet Bancorp reports Q3 adjusted EPS ($1.43), consensus 64c

Reports Q3 revenue $43.5M, consensus $33.25M. Tangible book value per share was $39.88 vs. $44.25 in Q2. “Our Q3 results demonstrated strong operational momentum with solid growth in net interest income and continued improvement in our net interest margin,” said David Becker, CEO. “We have now achieved eight consecutive quarters of increasing net interest income, attributable to higher yields on our earning assets and reduced funding costs, both of which have materially enhanced our operating efficiency. Additionally, we attained significant growth in fintech deposits, which has enabled us to maintain strong balance sheet liquidity, as evidenced by our favorable loans-to-deposits ratio. We also completed a major loan sale and moved deposits off balance sheet which will enhance our regulatory capital ratios and provide balance sheet flexibility. In Q3, we took decisive action to address credit issues in our small business lending and franchise finance portfolios, which provides us with a cleaner credit profile and sets the stage for improved performance in future quarters. Entering Q4, we see encouraging signs in both portfolios with asset quality improving and delinquencies at their lowest level in a year. Our loan pipelines remain robust, and we are now well-positioned to grow earnings and accelerate our ability to achieve a ROAA of 1%.”