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from our ceo

DEAR FELLOW SHAREHOLDER,

I was a budding eight-year-old entrepreneur when I lined up my first newspaper delivery route. On foot, day after day in all kinds of weather, I had plenty of time to dream. I envisioned a day when I would have saved enough to buy a bicycle, because I knew, with wheels, I could cover more ground more quickly, expanding my route and thus my fortune.

When you let yourself dream, you begin to see beyond accepted norms and start exploring what is possible. It was this simple notion of exploring what is possible in banking – reaching more customers and delivering better service, free from the cost and the limitations of a branch network – that led me to launch First Internet Bank in 1999. It’s gratifying to see this dream not just realized, but enhanced over time. Just as adding a bicycle kicked my newspaper route into a higher gear, we are able to produce elevated results thanks to the unique channels we have built. In our twenty-first year of operations, we delivered twelve percent annual revenue growth and fifteen percent annual net income growth. Record net income of $25.2 million equates to $2.51 in earnings per share on a diluted basis. These results are reflective of strong production in both commercial and consumer loans, particularly in a number of our specialty lending areas, including single tenant lease financing, healthcare finance and horse trailer and recreational vehicle lending. Additionally, we capitalized on the lower interest rate environment to drive strong origination growth in our direct-to-consumer mortgage segment. These are all businesses we have built to serve customers on a nationwide basis from our headquarters in Central Indiana.


“When you let yourself dream, you begin to see beyond accepted norms and start exploring what is possible.”

In 2019, we made significant progress with our expansion into small business banking by capitalizing on attractive opportunities on both sides of our balance sheet. We completed the acquisition of a small business lending division which will help ignite our growth on this front. This transaction, combined with the experienced professionals we brought on board during the year, positions us to accelerate our efforts in building a nationwide platform to provide a full suite of services to small business entrepreneurs. Through the customer-centric approach and entrepreneurial spirit championed at First Internet Bank, we afford our small business customers the opportunity to dream. I encourage you to explore the shining examples we’ve highlighted in this report – illustrating the aspirations we’ve helped our customers realize by providing the financial freedom they deserve, while turning the traditional, slow-moving banking model on its head.

At First Internet Bank, we foster a culture that guides our innovative bank approach and, in turn, facilitates the entrepreneurial spirit our customers appreciate. The ability to attract and retain the talent required to preserve our strategic edge is critical to our success, and the recognition we continue to receive for creating a positive workplace environment enhances our outlook. Moving forward, we remain committed to increasing shareholder value by capitalizing on the ever-growing trend of retail and business banking toward our online platform. And, by leveraging our over 20 years of branchless banking experience, we will continue to selectively target tech-centric markets and the demographic profiles most inclined to adopt our fresh way of banking.

Once again, the entire First Internet Bank team delivered another outstanding year. Not only did we achieve record financial performance for our shareholders, we also better served our customers and improved the communities in which we work. We believe in doing right by our employees, and that they will, in turn, take care of our customers. And when we take care of our customers, every shareholder wins. On behalf of the team at First Internet Bank, I thank you for your support.

Sincerly,

David B. Becker
Chairman, President and Chief Executive Officer

 

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