FISHERS, Ind.–(BUSINESS WIRE)–First Internet Bancorp (“First Internet” or the “Company”) (Nasdaq:INBK)
announced today that its subsidiary, First Internet Bank (the “Bank”),
has entered into a loan and asset purchase agreement (the “Agreement”)
to acquire the small business lending division (the “SBA Division”) of
First Colorado National Bank (“First Colorado”).
As of March 31, 2019, the balance of loans outstanding to be acquired
was approximately $39.0 million, comprised primarily of SBA 7(a) loans.
The Bank will also acquire a servicing portfolio consisting of
guaranteed SBA 7(a) loans sold in the secondary market, which had a
balance of approximately $112.0 million as of March 31, 2019. The SBA
Division professionals joining the Bank include loan production, credit,
portfolio management and servicing personnel and operate out of two
Chicago-area offices as well as one Indianapolis-area office.
David Becker, Chairman, President and Chief Executive Officer,
commented, “We are excited about this acquisition as it will
significantly accelerate our efforts to expand access to affordable
loans and serve our nation’s entrepreneurs. Last year, we began building
a team with deep SBA experience because we see a tremendous opportunity
to promote economic growth and job creation through
government-guaranteed loan programs, while diversifying our sources of
revenue in a capital efficient manner. We welcome the SBA Division
professionals to First Internet, where they will be able to focus on
leveraging the resources of a larger balance sheet and a more robust
suite of banking services to support small business owners.”
At closing, total consideration for the acquisition of the SBA Division
and its assets will be paid in cash through a combination of cash on
hand and proceeds from loan sales planned for the second quarter of
2019. The portfolio to be acquired consists primarily of adjustable rate
loans and has a current weighted average coupon of 7.30%. The Company
expects to sell the guaranteed portion of new loans originated by the
SBA Division in the secondary market, which should enhance noninterest
income through gains on the sales’ of those loans and servicing fee
income. The transaction is expected to close early in the third quarter
of 2019, subject to customary closing conditions and the receipt of any
required governmental and regulatory approvals.
Hovde Group, LLC is serving as financial advisor to First Internet and
Faegre Baker Daniels is serving as First Internet’s legal advisor. The
Capital Corporation is serving as financial and legal advisor to First
Colorado.
About First Internet Bancorp
First Internet Bancorp is a bank holding company with assets of $3.7
billion as of March 31, 2019. 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, consumer loan, residential mortgage, and
specialty finance services nationally as well as commercial real estate
loans, commercial and industrial loans, SBA financing and treasury
management services. 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 may contain forward-looking statements with respect
to the pending acquisition and its effects on the future performance of
the Company and the Bank. Forward-looking statements are generally
identifiable by the use of words such as “anticipate,” “believe,”
“could,” “estimate,” “expect,” “intend,” “may,” “pending,” “plan,”
“preliminary,” “should,” “will,” “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. Factors that may cause
such differences include: failure to satisfy or obtain a waiver of
closing conditions; 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 and healthcare finance loan
portfolios; competition with national, regional and community financial
institutions; the loss of any key members of senior management;
fluctuations in interest rates; general economic conditions; 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.
Contacts
Investors/Analysts
Paula Deemer
Investor
Relations
(317) 428-4628
[email protected]
Media
Nicole Lorch
Executive Vice
President & Chief Operating Officer
(317) 532-7906
[email protected]
