Kroll Bond Rating Agency Assigns Senior Unsecured and Short-Term Debt Ratings of BBB/K3 to First Internet Bancorp

Kroll Bond Rating Agency (KBRA) has assigned a senior unsecured debt rating of BBB, subordinated debt rating of BBB-, and short-term debt rating of K3 to Fishers, Indiana based First Internet Bancorp (NASDAQ:INBK or “the Company”). Moreover, KBRA has assigned deposit and senior unsecured debt ratings of BBB+, a subordinated debt rating of BBB, and short-term debt and deposit ratings of K2 to the subsidiary bank, First Internet Bank (“the Bank”). The outlook on all long-term ratings is stable.

First Internet Bancorp’s ratings are underpinned by favorable credit metrics in relation to the rating category and a scalable business model that supports efficiency as well as an experienced management team. The ratings are also reflective of the institution’s operations in the niche market of direct banking and geographical diversification. The ratings are constrained by moderately weak earnings metrics in relation to the peer average, a relatively low tangible equity ratio, a comparatively high concentration of commercial loans in the lending portfolio (though geographically well diversified), and higher-than-average dependence on noncore funding.

The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology published on February 19, 2016.

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About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

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