Imagine More transformation
The same digital DNA that drives First Century Bank runs through our organization as well, making them a perfect fit.
David Becker
First Internet Bank |
Chairman and Chief Executive Officer
David Becker
First Internet Bank |
Chairman and Chief Executive Officer
First Century Bank is an exceptional financial technology partner that offers First Internet Bank multiple growth opportunities, further diversification of our revenue profile and access to a historically stable, low-cost deposit base.
Amid the low interest rate environment spurred by the global pandemic, we looked to the future. Anticipating rising rates, we drew upon the lessons of the last rate cycle and took important steps to transform our balance sheet. We sharpened our focus on higher-yielding variable rate and short-duration loan originations. Greater revenue diversification was achieved through investments in SBA and mortgage lending technology and personnel; both teams originate loans we are able to sell into the secondary market, enhancing noninterest income. On the liability side of the balance sheet, we shifted our deposit mix to a larger percentage of non-maturity deposits, which served to lower the cost of interest bearing deposits by $26 million, year over year. Our efforts to upgrade our online checking tools and services continued to bear fruit, and we were awarded Newsweek’s prestigious recognition for the Best Small Business Checking account.
It is often said that opportunity knocks but once. While we are a glass-half-full kind of company, we recognize there are cases in which the timing of a strong balance sheet and a seemingly perfect fit might resemble serendipity. Such was the case with First Century Bank - a technology-driven financial institution with lines of business focused on payment services, tax product lending, sponsored card programs and homeowners association services - that we agreed to acquire in November of 2021, subject to regulatory approval and other customary closing conditions.
Not unlike our own Banking as a Service initiatives, First Century Bank has a strong track record of growth in providing technology-enabled services to a nationwide roster of well-known businesses. The pending acquisition of First Century Bank represents an important step on our journey to further our leadership position in digital banking, as it aligns with our strategy of operating unique and scalable businesses with nationwide platforms and allows us to further diversify and grow sustainable fee revenue streams in a capital-efficient manner.
First Internet Bank’s innovative and imaginative culture continues to deliver transformation to best serve the ever-changing needs of our business and customers, while providing exceptional returns to our shareholders.
