First Internet Bancorp Reports Fourth Quarter and Full Year 2025 Results

Key Terms

fully-taxable equivalent financial

A fully-taxable equivalent (FTE) converts income from a tax-advantaged asset into the pretax yield an investor would need from a taxable asset to get the same after-tax return. It matters because it lets investors compare returns side-by-side—like putting two paychecks on the same after-tax footing—so you can decide whether a tax-free bond or a taxable investment actually pays more once taxes are accounted for.

pre-provision net revenue financial

Pre-provision net revenue is a bank’s income from core operations — interest earned minus interest paid plus fees and other operating income, after operating costs — measured before setting aside funds for potential loan losses. Investors use it to gauge how well a bank’s everyday business generates money independent of one-time loss reserves, like judging a store’s sales and operating profit before accounting for an expected number of returned items.

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

basis points financial

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

allowance for credit losses financial

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

nonperforming loans financial

Nonperforming loans are loans on which borrowers have stopped making the scheduled interest or principal payments for an extended period (commonly 90 days or more) or are otherwise in serious danger of default. Think of them as IOUs that aren’t being repaid: they tie up a lender’s money, reduce future interest income, and force the lender to hold extra reserves or take losses. For investors, a rising share of nonperforming loans signals weakening credit quality, higher potential losses, and greater risk to a bank’s profitability and capital.

sba 7(a) financial

A SBA 7(a) loan is a U.S. Small Business Administration‑backed lending program where the government acts like a partial co-signer to make bank loans to small businesses easier to obtain. Investors care because it lowers default risk for lenders, increases access to capital for smaller firms that can drive growth, and can affect loan portfolios, bank earnings, and credit exposure in sectors that rely on these loans.

cet1 ratio financial

CET1 ratio measures a bank's core equity capital (the most loss-absorbing funds like common stock and retained earnings) relative to the size of its risk-adjusted assets. It shows how big the bank's financial cushion is compared with what it has on its books; a higher ratio means greater ability to absorb losses, lower regulatory risk, and generally more investor confidence in the bank's stability.

- Net income of $5.3 million, diluted EPS $0.60 -

- Company to hold earnings call today at 5pm ET -

FISHERS, Ind.--(BUSINESS WIRE)-- First Internet Bancorp (the “Company”) (Nasdaq: INBK), the parent company of First Internet Bank (the “Bank”), announced today financial and operational results for the fourth quarter and fiscal year ended December 31, 2025.

Key Business Updates

• Revenue Momentum: Strong growth in net interest income (up 29%) and fully-taxable equivalent (“FTE”) net interest margin (now 2.30%) drove adjusted quarterly revenue up 21% year-over-year to $42.1 million¹. When combined with well-managed expenses, adjusted pre-provision net revenue grew 66% year-over-year.
• Credit Trends: The provision for credit losses for the fourth quarter of 2025 declined significantly following the large increase to the allowance for credit losses (“ACL”) related to small business lending in the third quarter of 2025 as well as lower net charge-offs. While ongoing proactive and prudent credit-related actions continued to yield notable progress in resolving problem loans, the Company expects the provision to remain elevated in the first half of 2026 and then gradually improve in the second half of the year.
• Strong Loan Production: Commercial loan production was robust during the fourth quarter driven by single tenant lease financing and construction. Additionally, loan pipelines at year end were solid, setting the stage for continued net interest income growth in 2026.

Fourth Quarter 2025 Financial Performance

• Net income of $5.3 million and diluted earnings per share of $0.60
  • Quarterly results included a pre-tax loss of $0.4 million on the sale of an additional $14.3 million of single tenant lease financing loans to fulfill our commitment related to the large sale in the third quarter of 2025
  • Adjusted net income, excluding the impact of the additional loan sale was $5.6 million¹ and adjusted diluted earnings per share was $0.64¹
• Total revenue of $41.7 million and adjusted total revenue of $42.1 million¹, which increased 21% from the prior year period
• Net interest income of $30.3 million and fully-taxable equivalent net interest income of $31.5 million¹, increased 29% and 27% over the prior year period, respectively
• Net interest margin of 2.22% and FTE net interest margin of 2.30%¹, each increased 55 basis points (“bps”), from the prior year period
• Pre-provision net revenue (“PPNR”) of $17.5 million¹ and adjusted PPNR of $17.9 million¹, which increased 66% from the prior year period
• Total loan balances of $3.7 billion, up $143.2 million, or 4%, from the third quarter of 2025
  • Quarterly growth driven by strong production in single tenant lease financing, construction and small business lending
  • The yield on the loan portfolio increased 21 bps from the prior quarter to 6.39%
• Total deposits of $4.8 billion, compared to $4.9 billion in the third quarter of 2025
  • Continued growth in fintech deposits, allowing higher-cost CDs and brokered deposits to mature
  • The cost of interest-bearing deposits declined 19 bps from the prior quarter to 3.68%
  • Approximately $1.1 billion of fintech deposits moved off-balance sheet, providing flexibility to manage the size of the balance sheet
  • Loans to deposits ratio of 77.4%
• Provision for credit losses of $12.0 million, down $22.8 million, or 66%, from the third quarter of 2025
  • Net charge-offs to average loans of 1.68%, improved from 1.89% in the third quarter of 2025
  • Net charge-offs included $3.5 million of balances previously reserved for
• Nonperforming loans to total loans of 1.56%; ACL to total loans of 1.49%
  • Increase in NPLs consisted primarily of guaranteed SBA 7(a) balances and fully-collateralized unguaranteed SBA 7(a) balances
  • NPLs / total loans of 1.20% excluding guaranteed balances
  • ACL to NPLs of 95%; or 124% excluding guaranteed balances
• Tangible common equity to tangible assets of 6.38%¹, and 6.94%¹ ex-AOCI and adjusted for normalized cash balances; CET1 ratio of 8.93%; total capital ratio of 12.44%
  • Repurchased 27,998 shares during the quarter at an average price of $18.64 per share
• Tangible book value per share of $40.87¹ increased 3% from the third quarter of 2025

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."

"We are pleased to close 2025 with strong fourth quarter results that demonstrate the resilience of our differentiated digital banking model," said David Becker, Chairman and CEO of First Internet Bancorp. "In 2025, we produced solid core financial performance as net interest income grew 30% year-over-year and delivered meaningful strategic accomplishments including the successful $850 million single tenant lease financing loan sale to Blackstone, exceptional growth in our Banking-as-a-Service initiatives and strategic investments in technology to further improve our credit underwriting and efficiency.”

"Additionally, we took decisive and proactive measures to address credit challenges in our SBA and franchise finance portfolios through enhanced underwriting standards, and improved collection and risk management through strategic investments in AI and automation. As a result, we expect gradual credit improvement in the second half of this year. Looking ahead, our digital-first model, strong loan pipelines, and diversified revenue streams position us well for continued growth. We remain confident in our ability to deliver strong financial performance while building long-term shareholder value through disciplined execution of our strategic priorities."

Full Year 2026 Outlook

• Continued loan growth in the range of 15% to 17%, driven by strong pipelines across our commercial lending verticals
• FTE net interest margin expansion, reaching 2.75% to 2.80% by the fourth quarter of 2026, driven by ongoing deposit repricing and optimized asset mix
• FTE net interest income of $155 million to $160 million
• Noninterest income of $33 million to $35 million, reflecting continued strong BaaS growth and modest SBA originations and gain on sale activity
• Operating expenses of $111 million to $112 million
• Provision for credit losses, including net charge-offs and reserves related to problem loans, of $50 million to $53 million:
  • Provision for credit losses is expected to remain elevated in the first half of the year but gradually improve in the second half of the year
  • First quarter of 2026 provision for credit losses is expected to be in the range of $17 million to $19 million and second quarter of 2026 is expected to be in the range of $14 million to $16 million
• Diluted earnings per share of $2.35 to $2.45

Conference Call and Webcast

The Company will host a conference call and webcast at 5:00 p.m. Eastern Time today, January 29, 2026, to discuss its quarterly financial results. The call can be accessed via telephone at (800) 549-8228; access code: 39388. A recorded replay can be accessed through February 5, 2026, by dialing (888) 660-6264; access code: 39388 #.

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 $5.6 billion as of December 31, 2025. The Company’s subsidiary, First Internet Bank, opened for business in 1999 as an industry pioneer in the branchless delivery of banking services. First Internet Bank provides consumer and small business deposit, SBA financing, franchise finance, 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 First Internet Bank, including its products and services, is available at www.firstib.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, 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 “anticipate,” “believe,” “continue,” “could,” “drive,” “enhance,” “estimate,” “expanding,” “expect,” “future,” “going forward,” “growth,” ”improve,” “increase,” “looking ahead,” “maintain,” “may,” “ongoing,” “opportunities,” “pending,” “plan,” “position,” “preliminary,” “remain,” “setting the stage,” “should,” “stable,” “thereafter,” “well-positioned,” “will,” 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: 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 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 and industrial, construction, and SBA loan portfolios; competition with national, regional and community financial institutions; the loss of key members of senior management; the anticipated impacts of inflation and rising interest rates on the general economy; 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, net interest income – FTE, net interest margin – FTE, adjusted total revenue, pre-provision net revenue (loss), adjusted pre-provision net revenue, adjusted noninterest income, adjusted noninterest expense, adjusted income (loss) before income taxes, adjusted income tax provision (benefit), adjusted net income (loss), adjusted diluted earnings (loss) per share, adjusted return on average assets, adjusted return on average shareholders’ equity, adjusted return on average tangible common equity and adjusted tangible common equity to adjusted tangible assets 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												Twelve Months Ended
					December 31,				September 30,				December 31,				December 31,				December 31,
					2025				2025				2024				2025				2024
Net income (loss)					$	5,289			$	(41,593	)		$	7,330			$	(35,168	)		$	25,276
Per share and share information
	Earnings (loss) per share - basic				$	0.61			$	(4.76	)		$	0.84			$	(4.03	)		$	2.91
	Earnings (loss) per share - diluted					0.60				(4.76	)			0.83			$	(4.03	)			2.88
	Dividends declared per share					0.06				0.06				0.06				0.24				0.24
	Book value per common share					41.41				40.42				44.31				41.41				44.31
	Tangible book value per common share 1					40.87				39.88				43.77				40.87				43.77
	Common shares outstanding					8,686,994				8,713,094				8,667,894				8,686,994				8,667,894
	Average common shares outstanding:
		Basic				8,728,342				8,742,052				8,696,704				8,729,970				8,690,416
		Diluted				8,769,456				8,742,052				8,788,793				8,729,970				8,765,725
Performance ratios
	Return on average assets					0.37	%			(2.71	%)			0.50	%			(0.60	%)			0.46	%
	Return on average shareholders' equity					5.79	%			(42.11	%)			7.49	%			(9.15	%)			6.70	%
	Return on average tangible common equity 1					5.87	%			(42.62	%)			7.58	%			(9.26	%)			6.78	%
	Net interest margin					2.22	%			2.04	%			1.67	%			2.01	%			1.65	%
	Net interest margin - FTE 1,2					2.30	%			2.12	%			1.75	%			2.09	%			1.74	%
Capital ratios 3
	Total shareholders' equity to assets					6.46	%			6.25	%			6.69	%			6.46	%			6.69	%
	Tangible common equity to tangible assets 1					6.38	%			6.17	%			6.62	%			6.38	%			6.62	%
	Tier 1 leverage ratio					6.24	%			5.69	%			6.90	%			6.24	%			6.90	%
	Common equity tier 1 capital ratio					8.93	%			9.24	%			9.30	%			8.93	%			9.30	%
	Tier 1 capital ratio					8.93	%			9.24	%			9.30	%			8.93	%			9.30	%
	Total risk-based capital ratio					12.44	%			13.11	%			12.62	%			12.44	%			12.62	%
Asset quality
	Nonperforming loans				$	58,538			$	53,250			$	28,421			$	58,538			$	28,421
	Nonperforming assets					61,355				55,237				28,905				61,355				28,905
	Nonperforming loans to loans					1.56	%			1.48	%			0.68	%			1.56	%			0.68	%
	Nonperforming assets to total assets					1.10	%			0.98	%			0.50	%			1.10	%			0.50	%
	Allowance for credit losses - loans to:
		Loans				1.49	%			1.66	%			1.07	%			1.49	%			1.07	%
		Nonperforming loans				95.1	%			112.5	%			157.5	%			95.1	%			157.5	%
	Net charge-offs to average loans					1.68	%			1.89	%			0.91	%			1.45	%			0.32	%
Average balance sheet information
	Loans				$	3,798,831			$	4,415,693			$	4,123,510			$	4,211,710			$	3,992,031
	Total securities					943,418				898,543				841,700				919,775				770,793
	Other earning assets					665,022				569,811				636,377				519,976				516,836
	Total interest-earning assets					5,426,126				5,895,554				5,607,195				5,662,897				5,285,026
	Total assets					5,618,089				6,081,792				5,782,116				5,848,823				5,462,730
	Noninterest-bearing deposits					155,030				174,494				114,311				154,712				114,396
	Interest-bearing deposits					4,723,879				5,133,010				4,726,449				4,866,930				4,318,926
	Total deposits					4,878,909				5,307,504				4,840,760				5,021,642				4,433,322
	Shareholders' equity					362,183				391,886				389,435				384,432				377,215
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, except for December 31, 2024)
Dollar amounts in thousands
				December 31,				September 30,				December 31,
					2025				2025				2024
Assets
	Cash and due from banks			$	6,145			$	10,923			$	9,249
	Interest-bearing deposits				450,632				776,738				457,161
	Securities available-for-sale, at fair value				778,687				625,906				587,355
	Securities held-to-maturity, at amortized cost, net of allowance for credit losses				250,609				261,725				249,796
	Loans held-for-sale				108,608				141,580				54,695
	Loans				3,746,728				3,603,506				4,170,646
	Allowance for credit losses - loans				(55,686	)			(59,923	)			(44,769	)
		Net loans			3,691,042				3,543,583				4,125,877
	Accrued interest receivable				27,909				26,674				28,180
	Federal Home Loan Bank of Indianapolis stock				28,350				28,350				28,350
	Cash surrender value of bank-owned life insurance				42,559				42,256				41,394
	Premises and equipment, net				67,934				68,843				71,453
	Goodwill				4,687				4,687				4,687
	Servicing asset				22,793				22,107				16,389
	Other real estate owned				2,631				1,801				272
	Accrued income and other assets				89,061				84,001				63,001
		Total assets		$	5,571,647			$	5,639,174			$	5,737,859
Liabilities
	Noninterest-bearing deposits			$	146,879			$	243,539			$	136,451
	Interest-bearing deposits				4,692,934				4,671,895				4,796,755
		Total deposits			4,839,813				4,915,434				4,933,206
	Advances from Federal Home Loan Bank				249,500				249,500				295,000
	Subordinated debt				105,465				105,386				105,150
	Accrued interest payable				1,744				1,236				2,495
	Accrued expenses and other liabilities				15,358				15,450				17,945
		Total liabilities			5,211,880				5,287,006				5,353,796
Shareholders' equity
	Voting common stock				186,577				186,608				186,094
	Retained earnings				193,320				188,564				230,622
	Accumulated other comprehensive loss				(20,130	)			(23,004	)			(32,653	)
		Total shareholders' equity			359,767				352,168				384,063
		Total liabilities and shareholders' equity		$	5,571,647			$	5,639,174			$	5,737,859

First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited, except for the twelve months ended December 31, 2024)
Dollar amounts in thousands, except per share data
					Three Months Ended												Twelve Months Ended
					December 31,				September 30,				December 31,				December 31,				December 31,
						2025				2025				2024				2025				2024
Interest income
	Loans				$	61,535			$	68,958			$	61,523			$	259,840			$	233,844
	Securities - taxable					8,811				8,614				7,619				34,950				26,742
	Securities - non-taxable					651				652				794				2,618				3,775
	Other earning assets					7,057				6,164				7,835				22,749				27,526
		Total interest income				78,054				84,388				77,771				320,157				291,887
Interest expense
	Deposits					43,836				50,134				49,111				188,390				183,150
	Other borrowed funds					3,896				3,902				5,109				18,007				21,360
		Total interest expense				47,732				54,036				54,220				206,397				204,510
		Net interest income				30,322				30,352				23,551				113,760				87,377
Provision for credit losses						11,984				34,789				7,201				72,314				17,070
		Net interest income (loss) after provision
			for credit losses			18,338				(4,437	)			16,350				41,446				70,307
Noninterest income (loss)
	Service charges and fees					454				369				248				1,366				959
	Loan servicing revenue					2,713				2,055				1,825				8,730				6,188
	Loan servicing asset revaluation					(1,800	)			(1,332	)			(428	)			(5,466	)			(2,537	)
	Gain (loss) on sale of loans					8,470				(27,103	)			8,568				(8,313	)			33,329
	Other					1,538				1,364				5,723				6,395				9,406
		Total noninterest income (loss)				11,375				(24,647	)			15,936				2,712				47,345
Noninterest expense
	Salaries and employee benefits					12,668				14,384				14,042				51,026				51,756
	Marketing, advertising and promotion					644				482				696				2,475				2,589
	Consulting and professional fees					1,184				979				967				4,327				3,744
	Data processing					712				651				603				2,654				2,448
	Loan expenses					1,813				1,850				1,381				6,714				5,947
	Premises and equipment					3,705				3,572				3,004				13,673				11,902
	Deposit insurance premium					1,563				1,584				1,464				6,109				5,000
	Other					1,922				1,957				1,800				8,049				6,724
		Total noninterest expense				24,211				25,459				23,957				95,027				90,110
Income (loss) before income taxes						5,502				(54,543	)			8,329				(50,869	)			27,542
Income tax provision (benefit)						213				(12,950	)			999				(15,701	)			2,266
Net income (loss)					$	5,289			$	(41,593	)		$	7,330			$	(35,168	)		$	25,276
Per common share data
Earnings (loss) per share - basic					$	0.61			$	(4.76	)		$	0.84			$	(4.03	)		$	2.91
Earnings (loss) per share - diluted					$	0.60			$	(4.76	)		$	0.83			$	(4.03	)		$	2.88
Dividends declared per share					$	0.06			$	0.06			$	0.06			$	0.24			$	0.24
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
					December 31, 2025										September 30, 2025										December 31, 2024
					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			$	3,817,686			$	61,535		6.39	%		$	4,427,200			$	68,958		6.18	%		$	4,129,118			$	61,523		5.93	%
		Securities - taxable				863,071				8,811		4.05	%			819,941				8,614		4.17	%			758,560				7,619		4.00	%
		Securities - non-taxable				80,347				651		3.21	%			78,602				652		3.29	%			83,140				794		3.80	%
		Other earning assets				665,022				7,057		4.21	%			569,811				6,164		4.29	%			636,377				7,835		4.90	%
			Total interest-earning assets			5,426,126				78,054		5.71	%			5,895,554				84,388		5.68	%			5,607,195				77,771		5.52	%
	Allowance for credit losses - loans					(61,378	)									(49,495	)									(46,427	)
	Noninterest-earning assets					253,341										235,733										221,348
		Total assets			$	5,618,089									$	6,081,792									$	5,782,116
Liabilities
	Interest-bearing liabilities
		Interest-bearing demand deposits			$	1,023,305			$	7,524		2.92	%		$	1,399,323			$	11,742		3.33	%		$	574,577			$	2,910		2.01	%
		Savings accounts				18,575				40		0.85	%			20,035				42		0.83	%			21,072				45		0.85	%
		Money market accounts				1,312,201				11,238		3.40	%			1,250,350				11,771		3.73	%			1,236,116				12,309		3.96	%
		Fintech - brokered deposits				-				-		0.00	%			-				-		0.00	%			208,545				2,111		4.03	%
		Certificates and brokered deposits				2,369,798				25,034		4.19	%			2,463,302				26,579		4.28	%			2,686,139				31,736		4.70	%
			Total interest-bearing deposits			4,723,879				43,836		3.68	%			5,133,010				50,134		3.87	%			4,726,449				49,111		4.13	%
		Other borrowed funds				354,926				3,896		4.35	%			365,119				3,902		4.24	%			528,806				5,109		3.84	%
			Total interest-bearing liabilities			5,078,805				47,732		3.73	%			5,498,129				54,036		3.90	%			5,255,255				54,220		4.10	%
	Noninterest-bearing deposits					155,030										174,494										114,311
	Other noninterest-bearing liabilities					22,071										17,283										23,115
		Total liabilities				5,255,906										5,689,906										5,392,681
Shareholders' equity						362,183										391,886										389,435
Total liabilities and shareholders' equity					$	5,618,089									$	6,081,792									$	5,782,116
Net interest income									$	30,322									$	30,352									$	23,551
Interest rate spread												1.98	%									1.78	%									1.42	%
Net interest margin												2.22	%									2.04	%									1.67	%
Net interest margin - FTE 2,3												2.30	%									2.12	%									1.75	%
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
	Twelve Months Ended
	December 31, 2025							December 31, 2024
	Average			Interest /		Yield /		Average			Interest /		Yield /
	Balance			Dividends		Cost		Balance			Dividends		Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale 1	$	4,223,146		$	259,840	6.15	%	$	3,997,397		$	233,844	5.85	%
Securities - taxable		839,878			34,950	4.16	%		692,806			26,742	3.86	%
Securities - non-taxable		79,897			2,618	3.28	%		77,987			3,775	4.84	%
Other earning assets		519,976			22,749	4.38	%		516,836			27,526	5.33	%
Total interest-earning assets		5,662,897			320,157	5.65	%		5,285,026			291,887	5.52	%
Allowance for credit losses - loans		(51,440	)						(42,758	)
Noninterest-earning assets		237,366							220,462
Total assets	$	5,848,823						$	5,462,730
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits	$	1,152,210		$	36,007	3.13	%	$	494,082		$	10,448	2.11	%
Savings accounts		20,229			171	0.85	%		22,336			189	0.85	%
Money market accounts		1,243,300			45,459	3.66	%		1,230,443			51,036	4.15	%
Fintech - brokered deposits		-			-	0.00	%		141,860			6,023	4.25	%
Certificates and brokered deposits		2,451,191			106,753	4.36	%		2,430,205			115,454	4.75	%
Total interest-bearing deposits		4,866,930			188,390	3.87	%		4,318,926			183,150	4.24	%
Other borrowed funds		421,947			18,007	4.27	%		629,137			21,360	3.40	%
Total interest-bearing liabilities		5,288,877			206,397	3.90	%		4,948,063			204,510	4.13	%
Noninterest-bearing deposits		154,712							114,396
Other noninterest-bearing liabilities		20,802							23,056
Total liabilities		5,464,391							5,085,515
Shareholders' equity		384,432							377,215
Total liabilities and shareholders' equity	$	5,848,823						$	5,462,730
Net interest income				$	113,760						$	87,377
Interest rate spread						1.75	%						1.39	%
Net interest margin						2.01	%						1.65	%
Net interest margin - FTE 2,3						2.09	%						1.74	%
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
					December 31, 2025						September 30, 2025						December 31, 2024
					Amount			Percent			Amount			Percent			Amount			Percent
Commercial loans
	Commercial and industrial				$	221,714		5.9	%		$	206,301		5.7	%		$	120,175		2.9	%
	Owner-occupied commercial real estate					48,575		1.3	%			50,046		1.4	%			53,591		1.3	%
	Investor commercial real estate					647,394		17.3	%			644,184		17.9	%			269,431		6.5	%
	Construction					372,668		9.9	%			300,291		8.3	%			413,523		9.9	%
	Single tenant lease financing					222,925		5.9	%			108,146		3.0	%			949,748		22.7	%
	Public finance					442,234		11.8	%			480,119		13.3	%			485,867		11.6	%
	Healthcare finance					139,469		3.7	%			150,522		4.2	%			181,427		4.4	%
	Small business lending					430,024		11.5	%			401,628		11.1	%			331,914		8.0	%
	Franchise finance					417,045		11.1	%			450,340		12.5	%			536,909		12.9	%
		Total commercial loans				2,942,048		78.4	%			2,791,577		77.4	%			3,342,585		80.2	%
Consumer loans
	Residential mortgage					343,110		9.2	%			349,275		9.7	%			375,160		9.0	%
	Home equity					14,725		0.4	%			15,806		0.4	%			18,274		0.4	%
	Trailers					235,876		6.3	%			232,006		6.4	%			210,575		5.0	%
	Recreational vehicles					141,952		3.8	%			142,245		3.9	%			149,342		3.6	%
	Other consumer loans					47,630		1.3	%			48,753		1.5	%			48,030		1.2	%
		Total consumer loans				783,293		21.0	%			788,085		21.9	%			801,381		19.2	%
Net deferred loan fees, premiums, discounts and other 1						21,387		0.6	%			23,844		0.7	%			26,680		0.6	%
Total loans					$	3,746,728		100.0	%		$	3,603,506		100.0	%		$	4,170,646		100.0	%
					December 31, 2025						September 30, 2025						December 31, 2024
					Amount			Percent			Amount			Percent			Amount			Percent
Deposits
	Noninterest-bearing deposits				$	146,880		3.0	%		$	243,539		5.0	%		$	136,451		2.8	%
	Interest-bearing demand deposits					1,120,850		23.2	%			1,003,950		20.4	%			896,661		18.2	%
	Savings accounts					18,990		0.4	%			18,694		0.4	%			19,823		0.4	%
	Money market accounts					1,272,845		26.3	%			1,250,202		25.4	%			1,183,789		24.0	%
	Fintech - brokered deposits					-		0.0	%			-		0.0	%			-		0.0	%
	Certificates of deposits					2,004,909		41.4	%			2,115,613		43.0	%			2,133,455		43.2	%
	Brokered deposits					275,339		5.7	%			283,436		5.8	%			563,027		11.4	%
Total deposits					$	4,839,813		100.0	%		$	4,915,434		100.0	%		$	4,933,206		100.0	%
1 Includes carrying value adjustments of $19.1 million, $20.2 million and $22.9 million related to terminated interest rate swaps associated with public finance loans as of December 31, 2025, September 30, 2025 and December 31, 2024, respectively.

First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2025			2025			2024			2025			2024
Total equity - GAAP	$	359,767		$	352,168		$	384,063		$	359,767		$	384,063
Adjustments:
Goodwill		(4,687	)		(4,687	)		(4,687	)		(4,687	)		(4,687	)
Tangible common equity	$	355,080		$	347,481		$	379,376		$	355,080		$	379,376
Total assets - GAAP	$	5,571,647		$	5,639,174		$	5,737,859		$	5,571,647		$	5,737,859
Adjustments:
Goodwill		(4,687	)		(4,687	)		(4,687	)		(4,687	)		(4,687	)
Tangible assets	$	5,566,960		$	5,634,487		$	5,733,172		$	5,566,960		$	5,733,172
Common shares outstanding		8,686,994			8,713,094			8,667,894			8,686,994			8,667,894
Book value per common share	$	41.41		$	40.42		$	44.31		$	41.41		$	44.31
Effect of goodwill		(0.54	)		(0.54	)		(0.54	)		(0.54	)		(0.54	)
Tangible book value per common share	$	40.87		$	39.88		$	43.77		$	40.87		$	43.77
Total shareholders' equity to assets		6.46	%		6.25	%		6.69	%		6.46	%		6.69	%
Effect of goodwill		(0.08	%)		(0.08	%)		(0.07	%)		(0.08	%)		(0.07	%)
Tangible common equity to tangible assets		6.38	%		6.17	%		6.62	%		6.38	%		6.62	%
Total average equity - GAAP	$	362,183		$	391,886		$	389,435		$	384,432		$	377,215
Adjustments:
Average goodwill		(4,687	)		(4,687	)		(4,687	)		(4,687	)		(4,687	)
Average tangible common equity	$	357,496		$	387,199		$	384,748		$	379,745		$	372,528
Return on average shareholders' equity		5.79	%		(42.11	%)		7.49	%		(9.15	%)		6.70	%
Effect of goodwill		0.08	%		(0.51	%)		0.09	%		(0.11	%)		0.08	%
Return on average tangible common equity		5.87	%		(42.62	%)		7.58	%		(9.26	%)		6.78	%
Total interest income	$	78,054		$	84,388		$	77,771		$	320,157		$	291,887
Adjustments:
Fully-taxable equivalent adjustments 1		1,161			1,158			1,152			4,645			4,650
Total interest income - FTE	$	79,215		$	85,546		$	78,923		$	324,802		$	296,537
Net interest income	$	30,322		$	30,352		$	23,551		$	113,760		$	87,377
Adjustments:
Fully-taxable equivalent adjustments 1		1,161			1,158			1,152			4,645			4,650
Net interest income - FTE	$	31,483		$	31,510		$	24,703		$	118,405		$	92,027
Net interest margin		2.22	%		2.04	%		1.67	%		2.01	%		1.65	%
Effect of fully-taxable equivalent adjustments 1		0.08	%		0.08	%		0.08	%		0.08	%		0.09	%
Net interest margin - FTE		2.30	%		2.12	%		1.75	%		2.09	%		1.74	%
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								Twelve Months Ended
	December 31,		September 30,			December 31,			December 31,			December 31,
	2025			2025			2024			2025			2024
Total revenue - GAAP	$	41,697	$	5,705		$	39,487		$	116,472		$	134,722
Adjustments:
Loss on sale of loans		411		37,823			-			38,234			-
Gain on prepayment of FHLB advances		-		-			(1,829	)		-			(1,829	)
Gain on termination of swaps		-		-			(2,904	)		-			(2,904	)
Adjusted total revenue	$	42,108	$	43,528		$	34,754		$	154,706		$	129,989
Net income (loss) - GAAP	$	5,289	$	(41,593	)	$	7,330		$	(35,168	)	$	25,276
Adjustments:1
Provision for credit losses		11,984		34,789			7,201			72,314			17,070
Income tax provision (benefit)		213		(12,950	)		999			(15,701	)		2,266
Pre-provision net revenue (loss)	$	17,486	$	(19,754	)	$	15,530		$	21,445		$	44,612
Pre-provision net revenue (loss)	$	17,486	$	(19,754	)	$	15,530		$	21,445		$	44,612
Adjustments:1
Loss on sale of loans		411		37,823			-			38,234			-
IT termination fees		-		-			-			-			357
Anniversary expenses		-		-			-			-			95
Gain on prepayment of FHLB advances		-		-			(1,829	)		-			(1,829	)
Gain on termination of swaps		-		-			(2,904	)		-			(2,904	)
Adjusted pre-provision net revenue	$	17,897	$	18,069		$	10,797		$	59,679		$	40,331
Noninterest income (loss) - GAAP	$	11,375	$	(24,647	)	$	15,936		$	2,712		$	47,345
Adjustments:
Loss on sale of loans		411		37,823			-			38,234			-
Gain on prepayment of FHLB advances		-		-			(1,829	)		-			(1,829	)
Gain on termination of swaps		-		-			(2,904	)		-			(2,904	)
Adjusted noninterest income	$	11,786	$	13,176		$	11,203		$	40,946		$	42,612
Noninterest expense - GAAP	$	24,211	$	25,459		$	23,957		$	95,027		$	90,110
Adjustments:
IT termination fees		-		-			-			-			(452	)
Anniversary expenses		-		-			-			-			(120	)
Adjusted noninterest expense	$	24,211	$	25,459		$	23,957		$	95,027		$	89,538
Income (loss) before income taxes - GAAP	$	5,502	$	(54,543	)	$	8,329		$	(50,869	)	$	27,542
Adjustments:
Loss on sale of loans		411		37,823			-			38,234			-
IT termination fees		-		-			-			-			452
Anniversary expenses		-		-			-			-			120
Gain on prepayment of FHLB advances		-		-			(1,829	)		-			(1,829	)
Gain on termination of swaps		-		-			(2,904	)		-			(2,904	)
Adjusted income (loss) before income taxes	$	5,913	$	(16,720	)	$	3,596		$	(12,635	)	$	23,381
Income tax provision (benefit) - GAAP	$	213	$	(12,950	)	$	999		$	(15,701	)	$	2,266
Adjustments:1
Loss on sale of loans		86		8,699			-			8,785			-
IT termination fees		-		-			-			-			95
Anniversary expenses		-		-			-			-			25
Gain on prepayment of FHLB advances		-		-			(384	)		-			(384	)
Gain on termination of swaps		-		-			(610	)		-			(610	)
Adjusted income tax provision (benefit)	$	299	$	(4,251	)	$	5		$	(6,916	)	$	1,392
Net income (loss) - GAAP	$	5,289	$	(41,593	)	$	7,330		$	(35,168	)	$	25,276
Adjustments:
Loss on sale of loans		325		29,124			-			29,449			-
IT termination fees		-		-			-			-			357
Anniversary expenses		-		-			-			-			95
Gain on prepayment of FHLB advances		-		-			(1,445	)		-			(1,445	)
Gain on termination of swaps		-		-			(2,294	)		-			(2,294	)
Adjusted net income (loss)	$	5,614	$	(12,469	)	$	3,591		$	(5,719	)	$	21,989
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									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2025			2025			2024			2025			2024
Diluted average common shares outstanding		8,769,456			8,742,052			8,788,793			8,729,970			8,765,725
Diluted earnings (loss) per share - GAAP	$	0.60		$	(4.76	)	$	0.83		$	(4.03	)	$	2.88
Adjustments:
Effect of loss on sale of loans		0.04			3.33			-			3.37			-
Effect of IT termination fees		-			-			-			-			0.04
Effect of anniversary expenses		-			-			-			-			0.01
Effect of gain on prepayment of FHLB advances		-			-			(0.16	)		-			(0.16	)
Effect of gain on termination of swaps		-			-			(0.26	)		-			(0.26	)
Adjusted diluted earnings (loss) per share	$	0.64		$	(1.43	)	$	0.41		$	(0.66	)	$	2.51
Return on average assets		0.37	%		(2.71	%)		0.50	%		(0.60	%)		0.46	%
Effect of loss on sale of loans		0.02	%		1.90	%		0.00	%		0.50	%		0.00	%
Effect of IT termination fees		0.00	%		0.00	%		0.00	%		0.00	%		0.01	%
Effect of anniversary expenses		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Effect of gain on prepayment of FHLB advances		0.00	%		0.00	%		(0.10	%)		0.00	%		(0.03	%)
Effect of gain on termination of swaps		0.00	%		0.00	%		(0.16	%)		0.00	%		(0.04	%)
Adjusted return on average assets		0.39	%		(0.81	%)		0.24	%		(0.10	%)		0.40	%
Return on average shareholders' equity		5.79	%		(42.11	%)		7.49	%		(9.15	%)		6.70	%
Effect of loss on sale of loans		0.36	%		29.48	%		0.00	%		7.66	%		0.00	%
Effect of IT termination fees		0.00	%		0.00	%		0.00	%		0.00	%		0.09	%
Effect of anniversary expenses		0.00	%		0.00	%		0.00	%		0.00	%		0.03	%
Effect of gain on prepayment of FHLB advances		0.00	%		0.00	%		(1.48	%)		0.00	%		(0.38	%)
Effect of gain on termination of swaps		0.00	%		0.00	%		(2.34	%)		0.00	%		(0.61	%)
Adjusted return on average shareholders' equity		6.15	%		(12.63	%)		3.67	%		(1.49	%)		5.83	%
Return on average tangible common equity		5.87	%		(42.62	%)		7.58	%		(9.26	%)		6.78	%
Effect of loss on sale of loans		0.36	%		29.84	%		0.00	%		7.75	%		0.00	%
Effect of IT termination fees		0.00	%		0.00	%		0.00	%		0.00	%		0.10	%
Effect of anniversary expenses		0.00	%		0.00	%		0.00	%		0.00	%		0.03	%
Effect of gain on prepayment of FHLB advances		0.00	%		0.00	%		(1.49	%)		0.00	%		(0.39	%)
Effect of gain on termination of swaps		0.00	%		0.00	%		(2.37	%)		0.00	%		(0.62	%)
Adjusted return on average tangible common equity		6.23	%		(12.78	%)		3.72	%		(1.51	%)		5.90	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260126558304/en/

Investors/Analysts

Paula Deemer

Director of Corporate Administration

(317) 428-4628

investors@firstib.com

Media

PANBlast

Zach Weismiller

firstib@panblastpr.com

Source: First Internet Bancorp