First Internet Bancorp Reports Second Quarter 2022 Results
First Internet Bancorp (the “Company”) (Nasdaq: INBK), the parent company of First Internet Bank (the “Bank”), announced today financial and operational results for the second quarter ended June 30, 2022. Net income for the second quarter of 2022 was $9.5 million, or $0.99 diluted earnings per share. This compares to net income of $11.2 million, or $1.14 diluted earnings per share, for the first quarter of 2022, and net income of $13.1 million, or $1.31 diluted earnings per share, for the second quarter of 2021.
“Strong production in both our commercial and consumer lending businesses has driven our loan balances to an all-time high, fueling second quarter results and creating a revenue stream for future periods,” said David Becker, Chairman and Chief Executive Officer. “During the first half of 2022, portfolio loan origination yields were up 100 bps over the same time last year, allowing us to deploy existing liquidity and drive growth in net interest margin. Furthermore, loan pipelines remain healthy and we have maintained exceptional asset quality. We are well-positioned to capitalize on growth opportunities for the remainder of the year.”
Mr. Becker concluded, “To be ready to meet our current and future customers’ needs, it is imperative that we continue to attract and retain top talent. At First Internet Bank, we have long fostered a workplace culture that promotes innovation, collaboration and customer focus while supporting work-life balance. It was gratifying to be named one of the “Top Workplaces in Central Indiana” for the ninth consecutive year as a result of these efforts. As an employer of choice, we felt a responsibility to address the rapid rise in transportation, housing and food costs so our employees could devote their best mental energy to serving our customers. In the second quarter, we implemented a $20.00 minimum hourly wage for full-time employees across the company. Additionally, we paid a bonus to those employees most impacted by the current inflationary environment. These initiatives demonstrate we intend to stand behind our professionals, who stand up for our customers on a daily basis. I would like to thank the entire First Internet Bank team for their commitment and focus on executing our strategies and consistently delivering solid financial performance while providing an exceptional experience for our customers.”
Net Interest Income and Net Interest Margin
Net interest income for the second quarter of 2022 was $25.7 million, compared to $25.8 million for the first quarter of 2022, and $21.6 million for the second quarter of 2021. On a fully-taxable equivalent basis, net interest income for the second quarter of 2022 was $27.1 million, stable with the first quarter of 2022, and up compared to $23.0 million for the second quarter of 2021.
Total interest income for the second quarter of 2022 was $36.1 million, up slightly from the first quarter of 2022, and an increase of 8.2% compared to the second quarter of 2021. On a fully-taxable equivalent basis, total interest income for the second quarter of 2022 was $37.5 million, a slight increase from the first quarter of 2022, and an increase of 7.8% compared to the second quarter of 2021. Growth in interest income earned on the commercial and consumer loan portfolios, the securities portfolio and other earning assets essentially offset the decline in income earned on tax refund advance loans, which was primarily earned in the first quarter. The yield on average interest-earning assets for the second quarter of 2022 increased to 3.65% from 3.58% in the linked quarter due primarily to a 33 bp increase in the yield earned on securities and a 66 bp increase in the yield earned on other earning assets. Additionally, excluding the effect of tax refund advance loans, the yield on the loan portfolio increased 7 bps to 4.29%. Compared to the linked quarter, average loan balances increased $43.9 million, or 1.5%, while the average balance of securities decreased $28.3 million, or 4.4%, and the average balance of other earning assets decreased $133.7 million, or 29.3%. Excluding the effect of tax refund advance loans, average loan balances increased $101.2 million, or 3.5%.
Total interest expense for the second quarter of 2022 was $10.4 million, a slight increase compared to the first quarter of 2022, and a decrease of 11.4% compared to the second quarter of 2021. The increase in total interest expense compared to the linked quarter was due primarily to an increase in expense related to interest-bearing deposits, partially offset by lower expense paid on other borrowed funds.
During the second quarter of 2022, the average balance of interest-bearing deposits decreased $53.0 million, or 1.7%, compared to the first quarter of 2022 and the cost of these deposits increased 4 bps. The decrease in average interest-bearing deposit balances was due to the continued decline in average certificates and brokered deposit balances, which decreased $121.4 million, or 9.9%, during the quarter while the cost of these deposits increased 2 bps. Additionally, the average balance of money market accounts decreased $26.8 million, or 1.8%, compared to the first quarter of 2022 while the cost of these deposits increased 12 bps. This activity was partially offset by growth in average Banking-as-a-Service (“BaaS”) deposit balances, which increased $59.1 million during the quarter, and in average interest-bearing demand balances, which increased $30.0 million.
Beginning in March and through June 30, 2022, the Federal Reserve increased the Fed Funds rate 150 bps. Through this same period, the Company did not increase the rate paid on consumer, small business and commercial interest-bearing demand deposits. With regard to money market products during this period, the rate paid on consumer money market balances increased 50 bps, resulting in a cycle-to-date deposit beta of 33%, and the rate paid on small business and commercial money market balances increased 30 bps, resulting in a cycle-to-date deposit beta of 20%. As small business and commercial balances represent 62% of total money market balances and consumer balances represent 38%, the all-in cycle-to-date deposit beta on money market products is 25%.
Net interest margin (“NIM”) improved to 2.60% for the second quarter of 2022, up from 2.56% for the first quarter of 2022 and 2.11% for the second quarter of 2021. Fully-taxable equivalent NIM (“FTE NIM”) increased by 5 bps to 2.74% for the second quarter of 2022, up from 2.69% for the first quarter of 2022 and 2.25% for the second quarter of 2021. Excluding the impact of income from tax refund advance loans, adjusted FTE NIM was 2.72%, up 31 bps from the prior quarter. The increase in adjusted FTE NIM compared to the linked quarter was driven primarily by the increase in average loan balances and yields, as well as higher yields on securities and other earning assets, partially offset by the effect of higher interest-bearing deposit costs.
Noninterest Income
Noninterest income for the second quarter of 2022 was $4.3 million, compared to $6.8 million for the first quarter of 2022 and $9.0 million for the second quarter of 2021. The decrease compared to the prior quarter was driven primarily by a decrease in gain on sale of loans, lower other income and lower revenue from mortgage banking activities. Gain on sale of loans totaled $2.0 million for the second quarter of 2022, down $1.9 million, or 49.2%. The Company sold single tenant lease financing loans in the first quarter of 2022, which provided $0.4 million in gain on sale revenue, whereas revenue in the second quarter of 2022 consisted entirely of gain on the sales of U.S. Small Business Administration (“SBA”) 7(a) guaranteed loans. The decrease in revenue related to SBA loan sales was due to a lower volume of sales as well as lower net gain on sale premiums. Other income declined $0.3 million, or 55.6%, due primarily to a decline in the value of fund investments carried at fair market value. Lastly, mortgage banking revenue totaled $1.7 million for the second quarter of 2022, down $0.2 million, or 8.7%, from the linked quarter due to a decrease in interest rate locks and sold loan volume.
Noninterest Expense
Noninterest expense for the second quarter of 2022 was $18.0 million, compared to $18.8 million for the first quarter of 2022 and $15.1 million for the second quarter of 2021. The decrease of $0.8 million, or 4.2%, compared to the linked quarter was due primarily to lower loan expenses, consulting and professional fees and other expense, partially offset by increases in salaries and employee benefits and marketing costs. The decrease in loan expenses was driven primarily by lower servicing fees as $0.9 million of fees related to tax refund advance loans were incurred in the first quarter of 2022 as opposed to a nominal amount of such fees in the second quarter of 2022. The decrease in consulting and professional fees was due primarily to $0.9 million of nonrecurring consulting fees that were incurred in the linked quarter. Additionally, the Company incurred $0.1 million of acquisition-related costs in the second quarter of 2022 versus $0.2 million of such costs in the first quarter of 2022. The decrease in other expense was due to administrative and moving costs incurred in the linked quarter. The higher salaries and employee benefits expense was due mainly to $0.5 million in a discretionary inflation bonus paid to certain employees and $0.3 million of accelerated equity compensation related to employees who retired during the quarter, partially offset by lower incentive compensation in the Company’s small business lending and mortgage banking divisions. The increase in marketing costs was due to higher media costs, mortgage lead generation costs and sponsorships.
Income Taxes
The Company reported an income tax expense of $1.3 million for the second quarter of 2022 and an effective tax rate of 11.8%, compared to an income tax expense of $1.8 million and an effective tax rate of 13.8% for the first quarter of 2022 and an income tax expense of $2.4 million and an effective tax rate of 15.4% for the second quarter of 2021. The lower effective tax rate reflects the decline in noninterest income, resulting in a higher proportion of tax exempt income to total pre-tax income.
Loans and Credit Quality
Total loans as of June 30, 2022 were $3.1 billion, an increase of $201.3 million, or 7.0%, compared to March 31, 2022, and an increase of $124.5 million, or 4.2%, compared to June 30, 2021. Total commercial loan balances were $2.4 billion as of June 30, 2022, an increase of $97.7 million, or 4.2%, compared to March 31, 2022 and an increase of $3.1 million, or 0.1%, compared to June 30, 2021. Compared to the linked quarter, the increase in commercial loan balances was driven primarily by growth in franchise finance, public finance, investor commercial real estate, single tenant lease financing and commercial and industrial loan balances. These items were partially offset by net payoffs in healthcare finance.
Total consumer loan balances were $594.0 million as of June 30, 2022, an increase of $105.2 million, or 21.5%, compared to March 31, 2022 and an increase of $127.6 million, or 27.3%, compared to June 30, 2021. The increase compared to the linked quarter was due to higher balances in the residential mortgage, recreational vehicles and trailers loan portfolios.
Total delinquencies 30 days or more past due were 0.06% of total loans as of June 30, 2022 compared to 0.03% as of March 31, 2022 and 0.07% as of June 30, 2021. Overall credit quality improved during the quarter as nonperforming loans to total loans was 0.15% as of June 30, 2022, compared to 0.25% at March 31, 2022 and 0.31% as of June 30, 2021. Nonperforming loans totaled $4.5 million at quarter end, declining $2.6 million, or 36.1%, from March 31, 2022.
The allowance for loan losses as a percentage of total loans was 0.95% as of June 30, 2022, both in total and when excluding PPP loans, compared to 0.98% in both categories as of March 31, 2022 and 0.95% and 0.96%, respectively, as of June 30, 2021.
Net charge-offs of $0.3 million were recognized during the second quarter of 2022, resulting in net charge-offs to average loans of 0.04%, compared to net charge-offs to average loans of 0.05% for the first quarter of 2022 and net charge-offs to average loans of 0.35% for the second quarter of 2021. Excluding net charge-off activity related to tax refund advance loans, the Company recognized net recoveries of $0.1 million, resulting in net recoveries to average loans of 0.01%, during the second quarter of 2022. This compares to net recoveries of $1.1 million and net recoveries to average loans of 0.16% during the first quarter of 2022.
The provision for loan losses in the second quarter of 2022 was $1.2 million, compared to a provision of $0.8 million for the first quarter of 2022 and a provision of $21,000 for the second quarter of 2021. The provision for the second quarter of 2022 was driven primarily by the growth in the loan portfolio.
Capital
As of June 30, 2022, total shareholders’ equity was $365.3 million, a decrease of $9.3 million, or 2.5%, compared to March 31, 2022 and an increase of $6.7 million, or 1.9%, compared to June 30, 2021. The decline in shareholders’ equity during the second quarter of 2022 was due primarily to stock repurchase activity and an increase in accumulated other comprehensive loss resulting from a decline in the value of the available-for-sale securities portfolio caused by the continued rise in interest rates during the quarter. This was partially offset by the net income earned during the quarter and an increase in the value of interest rate swaps classified as cash flow hedges. Book value per common share increased to $38.85 as of June 30, 2022, up from $38.69 as of March 31, 2022 and up from $36.39 as of June 30, 2021. Tangible book value per share increased to $38.35, up from $38.21 and up from $35.92, each as of the same reference dates.
In connection with its previously announced stock repurchase program, the Company repurchased 294,464 shares of its common stock during the second quarter of 2022 at an average price of $37.77 per share. Including shares repurchased during the first quarter of 2022 and fourth quarter of 2021, the Company has repurchased a total of 498,167 shares at an average price of $41.50 per share under the program through June 30, 2022.
The following table presents the Company’s and the Bank’s regulatory and other capital ratios as of June 30, 2022.
As of June 30, 2022
Company
Bank
Total shareholders' equity to assets
8.91%
10.50%
Tangible common equity to tangible assets 1
8.81%
10.40%
Tier 1 leverage ratio 2
9.45%
11.03%
Common equity tier 1 capital ratio 2
12.55%
14.67%
Tier 1 capital ratio 2
12.55%
14.67%
Total risk-based capital ratio 2
16.85%
15.61%
1 This information represents a non-GAAP financial measure. For a discussion of non-GAAP financial measures, see the section below entitled "Non-GAAP Financial Measures."
2 Regulatory capital ratios are preliminary pending filing of the Company's and the Bank's regulatory reports.
Conference Call and Webcast
The Company will host a conference call and webcast at 12:00 p.m. Eastern Time on Thursday, July 21, 2022 to discuss its quarterly financial results. The call can be accessed via telephone at (844) 200-6205; access code: 984774. A recorded replay can be accessed through August 20, 2022 by dialing (866) 813-9403; access code: 314161.
Additionally, interested parties can listen to a live webcast of the call on the Company's website at www.firstinternetbancorp.com. An archived version of the webcast will be available in the same location shortly after the live call has ended.
About First Internet Bancorp
First Internet Bancorp is a bank holding company with assets of $4.1 billion as of June 30, 2022. The Company’s subsidiary, First Internet Bank, opened for business in 1999 as an industry pioneer in the branchless delivery of banking services. The Bank provides consumer and small business deposit, SBA financing, franchise finance, residential mortgage loans, consumer loans, and specialty finance services nationally as well as commercial real estate loans, construction loans, commercial and industrial loans, and treasury management services on a regional basis. First Internet Bancorp’s common stock trades on the Nasdaq Global Select Market under the symbol “INBK” and is a component of the Russell 2000® Index. Additional information about the Company is available at www.firstinternetbancorp.com and additional information about the Bank, including its products and services, is available at www.firstib.com.
Forward-Looking Statements
This press release contains forward-looking statements, including statements with respect to the financial condition, results of operations, trends in lending policies and loan programs, plans and prospective business partnerships, objectives, future performance and business of the Company. Forward-looking statements are generally identifiable by the use of words such as “ahead,” “anticipate,” “believe,” “capitalize,” “confidence in,” “continue,” “could,” “designed,” “effort,” “estimate,” “expect,” “growth,” “help,” “hope,” “intend,” “looking forward,” “may,” “opportunities,” “optimistic,” “pending,” “plan,” “position,” “preliminary,” “remain,” “should,” “waiting on,” “well-positioned,” “will,” “working on,” “would” or other similar expressions. Forward-looking statements are not a guarantee of future performance or results, are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the information in the forward-looking statements. Such statements are subject to certain risks and uncertainties including: the effects of the COVID-19 global pandemic and other adverse public health developments on the economy, our business and operations and the business and operations of our vendors and customers: general economic conditions, whether national or regional, and conditions in the lending markets in which we participate that may have an adverse effect on the demand for our loans and other products; our credit quality and related levels of nonperforming assets and loan losses, and the value and salability of the real estate that we own or that is the collateral for our loans. Other factors that may cause such differences include: failures or breaches of or interruptions in the communications and information systems on which we rely to conduct our business; failure of our plans to grow our commercial real estate, commercial and industrial, public finance, SBA, healthcare finance and franchise finance loan portfolios; competition with national, regional and community financial institutions; the loss of any key members of senior management; execution of pending and future acquisition, reorganization or disposition transactions, including without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings and other anticipated benefits from such transactions; fluctuations in interest rates; risks relating to the regulation of financial institutions; and other factors identified in reports we file with the U.S. Securities and Exchange Commission. All statements in this press release, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, average tangible common equity, return on average tangible common equity, total interest income – FTE, adjusted total interest income – FTE, net interest income – FTE, adjusted net interest income, adjusted net interest income – FTE, net interest margin – FTE, adjusted net interest margin, adjusted net interest margin – FTE, provision (benefit) for loan losses, excluding tax refund advance loans, average loans, excluding tax refund advance loans, net (recoveries) charge-offs to average loans, excluding tax refund advance loans, allowance for loan losses to loans, excluding PPP loans, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax provision, adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average shareholders’ equity, adjusted return on average tangible common equity, adjusted effective income tax rate, income before income taxes, excluding tax refund advance loans, income tax provision, excluding tax refund advance loans and net income, excluding tax refund advance loans are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the table at the end of this release under the caption “Reconciliation of Non-GAAP Financial Measures.”
First Internet Bancorp Summary Financial Information (unaudited) Dollar amounts in thousands, except per share data Three Months Ended Six Months EndedJune 30,
March 31,
June 30,
June 30,
June 30,
2022
2022
2021
2022
2021
Net income
$
9,545
$
11,209
$
13,096
$
20,754
$
23,546
Per share and share information Earnings per share - basic
$
0.99
$
1.14
$
1.32
$
2.14
$
2.37
Earnings per share - diluted
0.99
1.14
1.31
2.13
2.36
Dividends declared per share
0.06
0.06
0.06
0.12
0.12
Book value per common share
38.85
38.69
36.39
38.85
36.39
Tangible book value per common share 1
38.35
38.21
35.92
38.35
35.92
Common shares outstanding
9,404,000
9,683,727
9,854,153
9,404,000
9,854,153
Average common shares outstanding: Basic
9,600,383
9,790,122
9,932,761
9,694,729
9,916,087
Diluted
9,658,689
9,870,394
9,981,422
9,764,232
9,970,147
Performance ratios Return on average assets
0.93
%
1.08
%
1.25
%
1.01
%
1.13
%
Return on average shareholders' equity
10.23
%
11.94
%
14.88
%
11.09
%
13.78
%
Return on average tangible common equity 1
10.36
%
12.09
%
15.09
%
11.23
%
13.97
%
Net interest margin
2.60
%
2.56
%
2.11
%
2.58
%
2.08
%
Net interest margin - FTE 1,2
2.74
%
2.69
%
2.25
%
2.71
%
2.21
%
Capital ratios 3 Total shareholders' equity to assets
8.91
%
8.87
%
8.53
%
8.91
%
8.53
%
Tangible common equity to tangible assets 1
8.81
%
8.77
%
8.43
%
8.81
%
8.43
%
Tier 1 leverage ratio9.45
%
9.26
%
8.70
%
9.45
%
8.70
%
Common equity tier 1 capital ratio12.55
%
13.16
%
12.23
%
12.55
%
12.55
%
Tier 1 capital ratio12.55
%
13.16
%
12.23
%
12.55
%
12.55
%
Total risk-based capital ratio16.85
%
17.62
%
15.51
%
16.85
%
16.85
%
Asset quality Nonperforming loans$
4,527
$
7,084
$
9,038
$
4,527
$
9,038
Nonperforming assets
4,550
7,085
10,338
4,550
10,338
Nonperforming loans to loans
0.15
%
0.25
%
0.31
%
0.15
%
0.31
%
Nonperforming assets to total assets
0.11
%
0.17
%
0.25
%
0.11
%
0.25
%
Allowance for loan losses to: Loans
0.95
%
0.98
%
0.95
%
0.95
%
0.95
%
Loans, excluding PPP loans 1
0.95
%
0.98
%
0.96
%
0.95
%
0.96
%
Nonperforming loans
644.0
%
398.8
%
310.5
%
644.0
%
310.5
%
Net charge-offs to average loans
0.04
%
0.05
%
0.35
%
0.05
%
0.18
%
Average balance sheet information Loans$
2,998,144
$
2,947,924
$
2,994,356
$
2,973,173
$
3,020,987
Total securities
620,396
648,728
574,684
634,485
561,630
Other earning assets
322,302
455,960
509,735
388,760
478,065
Total interest-earning assets
3,962,589
4,080,725
4,100,749
4,021,330
4,087,255
Total assets
4,097,865
4,214,918
4,206,966
4,156,068
4,190,212
Noninterest-bearing deposits
108,980
112,248
98,207
110,605
94,506
Interest-bearing deposits
3,018,422
3,071,420
3,109,165
3,044,775
3,112,557
Total deposits
3,127,402
3,183,668
3,207,372
3,155,380
3,207,063
Shareholders' equity
374,274
380,767
352,894
377,504
344,478
1 Refer to "Non-GAAP Financial Measures" section above and "Reconciliation of Non-GAAP Financial Measures" below 2 On a fully-taxable equivalent ("FTE") basis assuming a 21% tax rate 3 Regulatory capital ratios are preliminary pending filing of the Company's regulatory reports First Internet Bancorp Condensed Consolidated Balance Sheets (unaudited) Dollar amounts in thousands
June 30,
March 31,
June 30,
2022
2022
2021
Assets Cash and due from banks
$
6,155
$
20,976
$
4,347
Interest-bearing deposits
201,798
496,573
324,450
Securities available-for-sale, at fair value
425,489
465,288
663,519
Securities held-to-maturity, at amortized cost
185,113
163,370
65,659
Loans held-for-sale
31,580
33,991
27,587
Loans
3,082,127
2,880,780
2,957,608
Allowance for loan losses
(29,153
)
(28,251
)
(28,066
)
Net loans
3,052,974
2,852,529
2,929,542
Accrued interest receivable
17,466
15,263
16,345
Federal Home Loan Bank of Indianapolis stock
25,219
25,219
25,650
Cash surrender value of bank-owned life insurance
39,369
39,133
38,421
Premises and equipment, net
70,288
68,632
44,249
Goodwill
4,687
4,687
4,687
Servicing asset
5,345
5,249
4,120
Other real estate owned
-
-
1,300
Accrued income and other assets
34,323
34,487
54,766
Total assets
$
4,099,806
$
4,225,397
$
4,204,642
Liabilities Noninterest-bearing deposits
$
126,153
$
119,196
$
113,996
Interest-bearing deposits
3,025,948
3,098,783
3,092,151
Total deposits
3,152,101
3,217,979
3,206,147
Advances from Federal Home Loan Bank
464,925
514,923
514,919
Subordinated debt
104,381
104,306
69,871
Accrued interest payable
2,005
1,532
1,132
Accrued expenses and other liabilities
11,062
12,002
53,932
Total liabilities
3,734,474
3,850,742
3,846,001
Shareholders' equity Voting common stock
204,071
214,473
222,486
Retained earnings
192,011
183,043
149,066
Accumulated other comprehensive loss
(30,750
)
(22,861
)
(12,911
)
Total shareholders' equity
365,332
374,655
358,641
Total liabilities and shareholders' equity
$
4,099,806
$
4,225,397
$
4,204,642
First Internet Bancorp Condensed Consolidated Statements of Income (unaudited) Dollar amounts in thousands, except per share data Three Months Ended Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
2022
2022
2021
2022
2021
Interest income Loans
$
32,415
$
33,188
$
30,835
$
65,603
$
61,720
Securities - taxable
2,567
2,221
1,921
4,788
3,700
Securities - non-taxable
328
249
259
577
540
Other earning assets
796
376
362
1,172
697
Total interest income
36,106
36,034
33,377
72,140
66,657
Interest expense Deposits
6,408
6,097
7,705
12,505
16,333
Other borrowed funds
4,018
4,187
4,065
8,205
8,192
Total interest expense
10,426
10,284
11,770
20,710
24,525
Net interest income
25,680
25,750
21,607
51,430
42,132
Provision for loan losses
1,185
791
21
1,976
1,297
Net interest income after provision for loan losses
24,495
24,959
21,586
49,454
40,835
Noninterest income Service charges and fees
281
316
280
597
546
Loan servicing revenue
620
585
457
1,205
879
Loan servicing asset revaluation
(470
)
(297
)
(240
)
(767
)
(395
)
Mortgage banking activities
1,710
1,873
2,674
3,583
8,424
Gain on sale of loans
1,952
3,845
3,019
5,797
4,742
Gain on sale of premises and equipment
-
-
2,523
-
2,523
Other
221
498
249
719
618
Total noninterest income
4,314
6,820
8,962
11,134
17,337
Noninterest expense Salaries and employee benefits
10,832
9,878
9,232
20,710
18,724
Marketing, advertising and promotion
920
756
872
1,676
1,552
Consulting and professional fees
1,197
1,925
1,078
3,122
2,064
Data processing
490
449
382
939
844
Loan expenses
693
1,582
541
2,275
1,075
Premises and equipment
2,419
2,540
1,587
4,959
3,188
Deposit insurance premium
287
281
275
568
700
Other
1,147
1,369
1,108
2,516
2,245
Total noninterest expense
17,985
18,780
15,075
36,765
30,392
Income before income taxes
10,824
12,999
15,473
23,823
27,780
Income tax provision
1,279
1,790
2,377
3,069
4,234
Net income
$
9,545
$
11,209
$
13,096
$
20,754
$
23,546
Per common share data Earnings per share - basic
$
0.99
$
1.14
$
1.32
$
2.14
$
2.37
Earnings per share - diluted
$
0.99
$
1.14
$
1.31
$
2.13
$
2.36
Dividends declared per share
$
0.06
$
0.06
$
0.06
$
0.12
$
0.12
All periods presented have been reclassified to conform to the current period classification First Internet Bancorp Average Balances and Rates (unaudited) Dollar amounts in thousands Three Months Ended June 30, 2022 March 31, 2022 June 30, 2021 Average Interest / Yield / Average Interest / Yield / Average Interest / Yield / Balance Dividends Cost Balance Dividends Cost Balance Dividends Cost Assets Interest-earning assets Loans, including loans held-for-sale 1
$
3,019,891
$
32,415
4.31
%
$
2,976,037
$
33,188
4.52
%
$
3,016,330
$
30,835
4.10
%
Securities - taxable
543,422
2,567
1.89
%
567,776
2,221
1.59
%
490,634
1,921
1.57
%
Securities - non-taxable
76,974
328
1.71
%
80,952
249
1.25
%
84,050
259
1.24
%
Other earning assets
322,302
796
0.99
%
455,960
376
0.33
%
509,735
362
0.28
%
Total interest-earning assets
3,962,589
36,106
3.65
%
4,080,725
36,034
3.58
%
4,100,749
33,377
3.26
%
Allowance for loan losses
(28,599
)
(27,974
)
(30,348
)
Noninterest-earning assets
163,875
162,167
136,565
Total assets
$
4,097,865
$
4,214,918
$
4,206,966
Liabilities Interest-bearing liabilities Interest-bearing demand deposits
$
348,274
$
466
0.54
%
$
318,281
$
412
0.52
%
$
192,777
$
143
0.30
%
Savings accounts
66,657
68
0.41
%
60,616
53
0.35
%
55,811
49
0.35
%
Money market accounts
1,427,665
1,921
0.54
%
1,454,436
1,503
0.42
%
1,416,406
1,462
0.41
%
BaaS - brokered deposits
71,234
154
0.87
%
12,111
6
0.20
%
-
-
0.00
%
Certificates and brokered deposits
1,104,592
3,799
1.38
%
1,225,976
4,123
1.36
%
1,444,171
6,051
1.68
%
Total interest-bearing deposits
3,018,422
6,408
0.85
%
3,071,420
6,097
0.81
%
3,109,165
7,705
0.99
%
Other borrowed funds
583,553
4,018
2.76
%
619,191
4,187
2.74
%
584,751
4,065
2.79
%
Total interest-bearing liabilities
3,601,975
10,426
1.16
%
3,690,611
10,284
1.13
%
3,693,916
11,770
1.28
%
Noninterest-bearing deposits
108,980
112,248
98,207
Other noninterest-bearing liabilities
12,636
31,292
61,949
Total liabilities
3,723,591
3,834,151
3,854,072
Shareholders' equity
374,274
380,767
352,894
Total liabilities and shareholders' equity
$
4,097,865
$
4,214,918
$
4,206,966
Net interest income
$
25,680
$
25,750
$
21,607
Interest rate spread2.49
%
2.45
%
1.98
%
Net interest margin2.60
%
2.56
%
2.11
%
Net interest margin - FTE 2,32.74
%
2.69
%
2.25
%
1 Includes nonaccrual loans 2 On a fully-taxable equivalent ("FTE") basis assuming a 21% tax rate 3 Refer to "Non-GAAP Financial Measures" section above and "Reconciliation of Non-GAAP Financial Measures" below First Internet Bancorp Average Balances and Rates (unaudited) Dollar amounts in thousands Six Months Ended June 30, 2022 June 30, 2021 Average Interest / Yield / Average Interest / Yield / Balance Dividends Cost Balance Dividends Cost Assets Interest-earning assets Loans, including loans held-for-sale 1$
2,998,085
$
65,603
4.41
%
$
3,047,560
$
61,720
4.08
%
Securities - taxable
555,533
4,788
1.74
%
476,049
3,700
1.57
%
Securities - non-taxable
78,952
577
1.47
%
85,581
540
1.27
%
Other earning assets
388,760
1,172
0.61
%
478,065
697
0.29
%
Total interest-earning assets
4,021,330
72,140
3.62
%
4,087,255
66,657
3.29
%
Allowance for loan losses
(28,288
)
(30,117
)
Noninterest-earning assets
163,026
133,074
Total assets
$
4,156,068
$
4,190,212
Liabilities Interest-bearing liabilities Interest-bearing demand deposits
$
333,361
$
878
0.53
%
$
186,795
$
276
0.30
%
Savings accounts
63,653
121
0.38
%
50,950
89
0.35
%
Money market accounts
1,440,976
3,425
0.48
%
1,393,145
2,853
0.41
%
BaaS - brokered deposits
41,836
160
0.77
%
-
-
0.00
%
Certificates and brokered deposits
1,164,949
7,921
1.37
%
1,481,667
13,115
1.78
%
Total interest-bearing deposits
3,044,775
12,505
0.83
%
3,112,557
16,333
1.06
%
Other borrowed funds
601,274
8,205
2.75
%
584,268
8,192
2.83
%
Total interest-bearing liabilities
3,646,049
20,710
1.15
%
3,696,825
24,525
1.34
%
Noninterest-bearing deposits
110,605
94,506
Other noninterest-bearing liabilities
21,910
54,403
Total liabilities
3,778,564
3,845,734
Shareholders' equity
377,504
344,478
Total liabilities and shareholders' equity
$
4,156,068
$
4,190,212
Net interest income
$
51,430
$
42,132
Interest rate spread2.47
%
1.95
%
Net interest margin2.58
%
2.08
%
Net interest margin - FTE 2,32.71
%
2.21
%
1 Includes nonaccrual loans 2 On a fully-taxable equivalent ("FTE") basis assuming a 21% tax rate 3 Refer to "Non-GAAP Financial Measures" section above and "Reconciliation of Non-GAAP Financial Measures" below First Internet Bancorp Loans and Deposits (unaudited) Dollar amounts in thousands June 30, 2022 March 31, 2022 June 30, 2021 Amount Percent Amount Percent Amount Percent Commercial loans Commercial and industrial$
110,540
3.6
%
$
99,808
3.5
%
$
96,203
3.3
%
Owner-occupied commercial real estate
61,277
2.0
%
56,752
2.0
%
87,136
2.9
%
Investor commercial real estate
52,648
1.7
%
34,627
1.2
%
28,871
1.0
%
Construction
143,475
4.7
%
149,662
5.2
%
117,970
4.0
%
Single tenant lease financing
867,181
28.1
%
852,519
29.6
%
913,115
30.9
%
Public finance
613,759
19.9
%
587,817
20.4
%
612,138
20.7
%
Healthcare finance
317,180
10.3
%
354,574
12.3
%
455,890
15.3
%
Small business lending
102,724
3.3
%
97,040
3.4
%
123,293
4.2
%
Franchise finance
168,942
5.5
%
107,246
3.7
%
-
0.0
%
Total commercial loans
2,437,726
79.1
%
2,340,045
81.3
%
2,434,616
82.3
%
Consumer loans Residential mortgage
281,124
9.1
%
191,153
6.6
%
177,148
6.0
%
Home equity
19,928
0.6
%
18,100
0.6
%
17,510
0.6
%
Trailers
154,555
5.0
%
148,870
5.2
%
148,795
5.0
%
Recreational vehicles
105,876
3.4
%
93,458
3.2
%
91,030
3.1
%
Other consumer loans
32,524
1.2
%
28,002
1.0
%
31,971
1.1
%
Tax refund advance loans
-
0.0
%
9,177
0.3
%
-
0.0
%
Total consumer loans
594,007
19.3
%
488,760
16.9
%
466,454
15.8
%
Net deferred loan fees, premiums, discounts and other 1
50,394
1.6
%
51,975
1.8
%
56,538
1.9
%
Total loans$
3,082,127
100.0
%
$
2,880,780
100.0
%
$
2,957,608
100.0
%
June 30, 2022 March 31, 2022 June 30, 2021 Amount Percent Amount Percent Amount Percent Deposits Noninterest-bearing deposits$
126,153
4.0
%
$
119,197
3.7
%
$
113,996
3.6
%
Interest-bearing demand deposits
350,551
11.1
%
334,723
10.4
%
196,841
6.1
%
Savings accounts
65,365
2.1
%
66,320
2.1
%
56,298
1.8
%
Money market accounts
1,363,424
43.3
%
1,475,857
45.8
%
1,432,355
44.6
%
BaaS - brokered deposits
194,133
6.2
%
50,006
1.6
%
-
0.0
%
Certificates of deposits
800,598
25.3
%
889,789
27.6
%
1,087,350
33.9
%
Brokered deposits
251,877
8.0
%
282,087
8.8
%
319,307
10.0
%
Total deposits$
3,152,101
100.0
%
$
3,217,979
100.0
%
$
3,206,147
100.0
%
1 Includes carrying value adjustments of $35.4 million, $36.4 million and $40.4 million related to terminated interest rate swaps associated with public finance loans as of June 30, 2022, March 31, 2022 and June 30, 2021, respectively. First Internet Bancorp Reconciliation of Non-GAAP Financial Measures Dollar amounts in thousands, except per share data Three Months Ended Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
2022
2022
2021
2022
2021
Total equity - GAAP
$
365,332
$
374,655
$
358,641
$
365,332
$
358,641
Adjustments: Goodwill
(4,687
)
(4,687
)
(4,687
)
(4,687
)
(4,687
)
Tangible common equity$
360,645
$
369,968
$
353,954
$
360,645
$
353,954
Total assets - GAAP
$
4,099,806
$
4,225,397
$
4,204,642
$
4,099,806
$
4,204,642
Adjustments: Goodwill
(4,687
)
(4,687
)
(4,687
)
(4,687
)
(4,687
)
Tangible assets$
4,095,119
$
4,220,710
$
4,199,955
$
4,095,119
$
4,199,955
Common shares outstanding
9,404,000
9,683,727
9,854,153
9,404,000
9,854,153
Book value per common share
$
38.85
$
38.69
$
36.39
$
38.85
$
36.39
Effect of goodwill
(0.50
)
(0.48
)
(0.47
)
(0.50
)
(0.47
)
Tangible book value per common share$
38.35
$
38.21
$
35.92
$
38.35
$
35.92
Total shareholders' equity to assets
8.91
%
8.87
%
8.53
%
8.91
%
8.53
%
Effect of goodwill
(0.10
%)
(0.10
%)
(0.10
%)
(0.10
%)
(0.10
%)
Tangible common equity to tangible assets
8.81
%
8.77
%
8.43
%
8.81
%
8.43
%
Total average equity - GAAP$
374,274
$
380,767
$
352,894
$
377,504
$
344,478
Adjustments: Average goodwill
(4,687
)
(4,687
)
(4,687
)
(4,687
)
(4,687
)
Average tangible common equity$
369,587
$
376,080
$
348,207
$
372,817
$
339,791
Return on average shareholders' equity
10.23
%
11.94
%
14.88
%
11.09
%
13.78
%
Effect of goodwill
0.13
%
0.15
%
0.21
%
0.14
%
0.19
%
Return on average tangible common equity
10.36
%
12.09
%
15.09
%
11.23
%
13.97
%
Total interest income$
36,106
$
36,034
$
33,377
$
72,140
$
66,657
Adjustments: Fully-taxable equivalent adjustments 1
1,377
1,314
1,394
2,691
2,750
Total interest income - FTE
$
37,483
$
37,348
$
34,771
$
74,831
$
69,407
Total interest income - FTE
$
37,483
$
37,348
$
34,771
$
74,831
$
69,407
Adjustments: Income from tax refund advance loans
(149
)
(2,864
)
-
(3,013
)
-
Adjusted total interest income - FTE
$
37,334
$
34,484
$
34,771
$
71,818
$
69,407
Net interest income
$
25,680
$
25,750
$
21,607
$
51,430
$
42,132
Adjustments: Fully-taxable equivalent adjustments 1
1,377
1,314
1,394
2,691
2,750
Net interest income - FTE
$
27,057
$
27,064
$
23,001
$
54,121
$
44,882
Net interest income
$
25,680
$
25,750
$
21,607
$
51,430
$
42,132
Adjustments: Income from tax refund advance loans
(149
)
(2,864
)
-
(3,013
)
-
Adjusted net interest income
$
25,531
$
22,886
$
21,607
$
48,417
$
42,132
Net interest income
$
25,680
$
25,750
$
21,607
$
51,430
$
42,132
Adjustments: Fully-taxable equivalent adjustments 1
1,377
1,314
1,394
2,691
2,750
Income from tax refund advance loans
(149
)
(2,864
)
-
(3,013
)
-
Adjusted net interest income - FTE
$
26,908
$
24,200
$
23,001
$
51,108
$
44,882
1 Assuming a 21% tax rate First Internet Bancorp Reconciliation of Non-GAAP Financial Measures Dollar amounts in thousands, except per share data Three Months Ended Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
2022
2022
2021
2022
2021
Net interest margin
2.60
%
2.56
%
2.11
%
2.58
%
2.08
%
Effect of fully-taxable equivalent adjustments 1
0.14
%
0.13
%
0.14
%
0.13
%
0.13
%
Net interest margin - FTE
2.74
%
2.69
%
2.25
%
2.71
%
2.21
%
Net interest margin
2.60
%
2.56
%
2.11
%
2.58
%
2.08
%
Effect of income from tax refund advance loans
(0.02
%)
(0.28
%)
0.00
%
(0.15
%)
0.00
%
Adjusted net interest margin
2.58
%
2.28
%
2.11
%
2.43
%
2.08
%
Net interest margin
2.60
%
2.56
%
2.11
%
2.58
%
2.08
%
Effect of fully-taxable equivalent adjustments 1
0.14
%
0.13
%
0.14
%
0.13
%
0.13
%
Effect of income from tax refund advance loans
(0.02
%)
(0.28
%)
0.00
%
(0.15
%)
0.00
%
Adjusted net interest margin - FTE
2.72
%
2.41
%
2.25
%
2.56
%
2.21
%
Provision for loan losses$
1,185
$
791
$
21
$
1,976
$
1,297
Adjustments: Provision for tax refund advance loans losses
(18
)
(1,842
)
-
(1,860
)
-
Provision (benefit) for loan losses, excluding tax refund advance loans
$
1,167
$
(1,051
)
$
21
$
116
$
1,297
Average loans
$
2,998,144
$
2,947,924
$
2,994,356
$
2,973,173
$
3,020,987
Adjustments: Average tax refund advance loans
(3,185
)
(60,499
)
-
(29,096
)
-
Average loans, excluding tax refund advance loans
$
2,994,959
$
2,887,425
$
2,994,356
$
2,944,077
$
3,020,987
Net charge-offs to average loans
0.04
%
0.05
%
0.35
%
0.05
%
0.18
%
Adjustments: Effect of tax refund advance lending net charge-offs to average loans
(0.05
%)
(0.21
%)
0.00
%
(0.13
%)
0.00
%
Net (recoveries) charge-offs to average loans, excluding tax refund advance loans
(0.01
%)
(0.16
%)
0.35
%
(0.08
%)
0.18
%
Allowance for loan losses$
29,153
$
28,251
$
28,066
$
29,153
$
28,066
Loans
$
3,082,127
$
2,880,780
$
2,957,608
$
3,082,127
$
2,957,608
Adjustments: PPP loans
(194
)
(1,003
)
(39,682
)
(194
)
(39,682
)
Loans, excluding PPP loans$
3,081,933
$
2,879,777
$
2,917,926
$
3,081,933
$
2,917,926
Allowance for loan losses to loans
0.95
%
0.98
%
0.95
%
0.95
%
0.95
%
Effect of PPP loans
0.00
%
0.00
%
0.01
%
0.00
%
0.01
%
Allowance for loan losses to loans, excluding PPP loans
0.95
%
0.98
%
0.96
%
0.95
%
0.96
%
1 Assuming a 21% tax rate
First Internet Bancorp Reconciliation of Non-GAAP Financial Measures Dollar amounts in thousands, except per share data Three Months Ended Six Months EndedJune 30,
March 31,
June 30,
June 30,
June 30,
2022
2022
2021
2022
2021
Noninterest expense - GAAP
$
17,985
$
18,780
$
15,075
$
36,765
$
30,392
Adjustments: Acquisition-related expenses
(103
)
(170
)
-
(273
)
-
Nonrecurring consulting fee
-
(875
)
-
(875
)
-
Discretionary inflation bonus
(531
)
-
-
(531
)
-
Accelerated equity compensation
(289
)
-
-
(289
)
-
Adjusted noninterest expense
$
17,062
$
17,735
$
15,075
$
34,797
$
30,392
Income before income taxes - GAAP
$
10,824
$
12,999
$
15,473
$
23,823
$
27,780
Adjustments: Gain on sale of premises and equipment
-
-
(2,523
)
-
(2,523
)
Acquisition-related expenses
103
170
-
273
-
Nonrecurring consulting fee
-
875
-
875
-
Discretionary inflation bonus
531
-
-
531
-
Accelerated equity compensation
289
-
-
289
-
Adjusted income before income taxes
$
11,747
$
14,044
$
12,950
$
25,791
$
25,257
Income tax provision - GAAP
$
1,279
$
1,790
$
2,377
$
3,069
$
4,234
Adjustments:1 Gain on sale of premises and equipment
-
-
(530
)
-
(530
)
Acquisition-related expenses
21
36
-
57
-
Nonrecurring consulting fee
-
184
-
184
-
Discretionary inflation bonus
112
-
-
112
-
Accelerated equity compensation
61
-
-
61
-
Adjusted income tax provision
$
1,473
$
2,010
$
1,847
$
3,483
$
3,704
Net income - GAAP
$
9,545
$
11,209
$
13,096
$
20,754
$
23,546
Adjustments: Gain on sale of premises and equipment
-
-
(1,993
)
-
(1,993
)
Acquisition-related expenses
82
134
-
216
-
Nonrecurring consulting fee
-
691
-
691
-
Discretionary inflation bonus
419
-
-
419
-
Accelerated equity compensation
228
-
-
228
-
Adjusted net income
$
10,274
$
12,034
$
11,103
$
22,308
$
21,553
Diluted average common shares outstanding
9,658,689
9,870,394
9,981,422
9,764,232
9,970,147
Diluted earnings per share - GAAP
$
0.99
$
1.14
$
1.31
$
2.13
$
2.36
Adjustments: Effect of gain on sale of premises and equipment
-
-
(0.20
)
-
(0.20
)
Effect of acquisition-related expenses
0.01
0.01
-
0.02
-
Effect of nonrecurring consulting fee
-
0.07
-
0.07
-
Effect of discretionary inflation bonus
0.04
-
-
0.04
-
Effect of accelerated equity compensation
0.02
-
-
0.02
-
Adjusted diluted earnings per share
$
1.06
$
1.22
$
1.11
$
2.28
$
2.16
Return on average assets
0.93
%
1.08
%
1.25
%
1.01
%
1.13
%
Effect of gain on sale of premises and equipment
0.00
%
0.00
%
(0.19
%)
0.00
%
(0.09
%)
Effect of acquisition-related expenses
0.01
%
0.01
%
0.00
%
0.01
%
0.00
%
Effect of nonrecurring consulting fee
0.00
%
0.07
%
0.00
%
0.03
%
0.00
%
Effect of discretionary inflation bonus
0.04
%
0.00
%
0.00
%
0.02
%
0.00
%
Effect of accelerated equity compensation
0.02
%
0.00
%
0.00
%
0.01
%
0.00
%
Adjusted return on average assets
1.00
%
1.16
%
1.06
%
1.08
%
1.04
%
1 Assuming a 21% tax rate
First Internet Bancorp Reconciliation of Non-GAAP Financial Measures Dollar amounts in thousands, except per share data Three Months Ended Six Months EndedJune 30,
March 31,
June 30,
June 30,
June 30,
2022
2022
2021
2022
2021
Return on average shareholders' equity
10.23
%
11.94
%
14.88
%
11.09
%
13.78
%
Effect of gain on sale of premises and equipment
0.00
%
0.00
%
(2.26
%)
0.00
%
(1.16
%)
Effect of acquisition-related expenses
0.09
%
0.14
%
0.00
%
0.12
%
0.00
%
Effect of nonrecurring consulting fee
0.00
%
0.74
%
0.00
%
0.37
%
0.00
%
Effect of discretionary inflation bonus
0.45
%
0.00
%
0.00
%
0.22
%
0.00
%
Effect of accelerated equity compensation
0.24
%
0.00
%
0.00
%
0.12
%
0.00
%
Adjusted return on average shareholders' equity
11.01
%
12.82
%
12.62
%
11.92
%
12.62
%
Return on average tangible common equity
10.36
%
12.09
%
15.09
%
11.23
%
13.97
%
Effect of gain on sale of premises and equipment
0.00
%
0.00
%
(2.30
%)
0.00
%
(1.18
%)
Effect of acquisition-related expenses
0.09
%
0.14
%
0.00
%
0.12
%
0.00
%
Effect of nonrecurring consulting fee
0.00
%
0.75
%
0.00
%
0.37
%
0.00
%
Effect of discretionary inflation bonus
0.45
%
0.00
%
0.00
%
0.23
%
0.00
%
Effect of accelerated equity compensation
0.25
%
0.00
%
0.00
%
0.12
%
0.00
%
Adjusted return on average tangible common equity
11.15
%
12.98
%
12.79
%
12.07
%
12.79
%
Effective income tax rate
11.8
%
13.8
%
15.4
%
12.9
%
15.2
%
Effect of gain on sale of premises and equipment
0.0
%
0.0
%
(1.1
%)
0.0
%
(0.5
%)
Effect of acquisition-related expenses
0.2
%
0.3
%
0.0
%
0.2
%
0.0
%
Effect of nonrecurring consulting fee
0.0
%
1.3
%
0.0
%
0.7
%
0.0
%
Effect of discretionary inflation bonus
1.0
%
0.0
%
0.0
%
0.5
%
0.0
%
Effect of accelerated equity compensation
0.6
%
0.0
%
0.0
%
0.3
%
0.0
%
Adjusted effective income tax rate
13.6
%
15.4
%
14.3
%
14.6
%
14.7
%
Income before income taxes - GAAP$
10,824
$
12,999
$
15,473
$
23,823
$
27,780
Adjustments: Income from tax refund advance lending
(149
)
(2,864
)
-
(3,013
)
-
Provision for tax refund advance lending losses
18
1,842
-
1,860
-
Tax refund advance lending servicing fee
9
921
-
930
-
Income before income taxes, excluding tax refund advance loans
$
10,702
$
12,898
$
15,473
$
23,600
$
27,780
Income tax provision - GAAP
$
1,279
$
1,790
$
2,377
$
3,069
$
4,234
Adjustments:1 Income from tax refund advance lending
(31
)
(601
)
-
(633
)
-
Provision for tax refund advance lending losses
4
387
-
391
-
Tax refund advance lending servicing fee
2
193
-
195
-
Income tax provision, excluding tax refund advance loans
$
1,254
$
1,769
$
2,377
$
3,022
$
4,234
Net income - GAAP
$
9,545
$
11,209
$
13,096
$
20,754
$
23,546
Adjustments: Income from tax refund advance lending
(118
)
(2,263
)
-
(2,380
)
-
Provision for tax refund advance lending losses
14
1,455
-
1,469
-
Tax refund advance lending servicing fee
7
728
-
735
-
Net income, excluding tax refund advance loans
$
9,448
$
11,129
$
13,096
$
20,578
$
23,546
1Assuming a 21% tax rate
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