First Internet Bancorp reports Q2 EPS 44c, consensus 38c

Reports Q2 net charge-offs were $1.6M in the Q2 compared to net charge-offs of $7.2M in the Q1. The linked quarter decline was due to the partial charge-off of the aforementioned C&I participation loan in the Q1, which totaled $6.9M. Net charge-offs in the Q2 were driven primarily by small business lending, as well as one franchise finance loan. Reports Q2 tangible book value per common share $39.85 from $39.23 in the previous quarter. “Following the events in the banking sector that occurred in March, we responded quickly to further enhance our balance sheet liquidity,” said David Becker, Chairman and CEO. “These actions resulted in higher deposit costs and cash balances, which impacted our earnings, but further solidified our strong foundation. Moreover, credit measures improved during the second quarter, asset quality overall remains sound, and our capital position is strong, leaving us well-positioned for the road ahead. At the same time, we continued to execute our strategy of optimizing the loan portfolio composition through funding high quality variable rate and higher yielding loans. New origination yields continued to meaningfully improve during the quarter, and our SBA team delivered strong results, setting the stage for us to achieve stronger earnings and profitability as deposit costs stabilize.”