First Internet Bancorp Reports Record Quarterly Revenue and Continued Net Interest Margin Expansion

Lower credit-loss provisioning accompanied earnings growth, although nonperforming loans increased and tangible book value per share declined.

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- Record quarterly revenue of $43.9 million, up 7% from the prior quarter -
- NIM expands 8 basis points to 2.47%; FTE NIM increases to 2.55%¹ -
- Net charge-offs and delinquencies decline significantly from the prior quarter -
- Diluted earnings per share of $0.54; adjusted diluted earnings per share of $0.57¹ -
- 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 third quarter ended September 30, 2026.

Key Business Updates

• Record Quarterly Revenue and Continued Margin Expansion: Total revenue rose 7% quarter-over-quarter to $43.9 million, driven by growth in both net interest income (up 7%) and noninterest income (up 6%). Fully-taxable equivalent (“FTE”) net interest margin expanded again in the third quarter to 2.55%¹ (up 8 basis points). Additionally, when combined with well-managed expenses, pre-provision net revenue grew 14% quarter-over-quarter to $17.1 million¹. Fintech partnerships revenue contributed to the growth in net interest income from embedded finance as well as noninterest income as fintech fee revenue was up 13% from the prior quarter.
• Overall Credit Quality Normalization on Track: Provision for credit losses for the third quarter of $11.6 million, down 13% from $13.4 million in the second quarter of 2026. The decrease was driven by lower net charge-offs, which declined to 0.82% of average loans from 1.77% in the second quarter of 2026, partially offset by specific reserves related to franchise finance loans placed on nonaccrual, including one large relationship the Company took action on late in the quarter ($2.6 million of specific reserves). Furthermore, total delinquencies, excluding nonperforming loans, declined for the second consecutive quarter and are down 38% from the prior quarter, representing 0.48% of total performing loans.
• Loan Portfolio Re-mix Toward Core Lending Areas: In line with the previously stated strategy, the loan portfolio continued to shift toward core verticals with higher new origination yields. As a result, the loan portfolio yield increased 8 basis points (“bps”) from the prior quarter. This reflected strong quarterly growth in investor commercial real estate, single tenant lease financing, wealth advisory lending and embedded finance, while previously exited, lower-yielding portfolios continued to run off. At the same time, the growing fintech deposit base allowed the Company to retire higher-cost CDs and brokered deposits, contributing to the margin expansion.

“Our third quarter results reflect continued execution of the strategy we have laid out for the last several quarters, with earnings momentum continuing to build,” said David Becker, Chairman and CEO of First Internet Bancorp. “Total revenue hit an all-time high in the quarter, driving positive operating leverage powered by record net interest income, continued net interest margin expansion and solid fee revenue growth. Additionally, credit trends continued to improve with meaningful declines in both net charge-offs and delinquencies. We also took proactive action on a larger franchise finance relationship this quarter; however, our underlying earnings strength allowed us to absorb the related provision impact and still produce strong quarterly growth in net income and earnings per share.

“The bottom line is that First Internet Bancorp is getting stronger every day. Loan pipelines in our scalable core lending areas are robust, and emerging verticals such as embedded finance and wealth advisory lending have exciting long-term growth potential. Our fintech platform continues to expand, driving growth in both fee revenue and lower-cost deposits. We also continue to invest in automation and AI-enabled tools across our lending and servicing operations, improving efficiency while elevating the experience we deliver for our customers and partners. Taken together, these trends create an exciting pathway towards accelerating earnings and stronger profitability. As we move into the fourth quarter and into 2027, we are confident in our ability to build on this momentum and deliver long-term value for our shareholders.”

Third Quarter 2026 Financial Performance

• Net income of $4.8 million and diluted earnings per share of $0.54
• Adjusted net income of $5.1 million¹ and adjusted diluted earnings per share of $0.57¹, both up significantly from the prior quarter and prior year period
  • Pre-tax non-recurring severance costs of $0.4 million recognized during the quarter
• Record quarterly revenue of $43.9 million, up 7% from the prior quarter and 1% from adjusted quarterly revenue¹ in the prior year period
• Net interest income of $34.7 million and FTE net interest income of $35.9 million¹, both increased 7% over the prior quarter and 14% over the prior year period
  • Achieved strong quarterly growth despite recognizing $1.2 million in interest reversals related to franchise finance loans placed on nonaccrual during the quarter ($0.6 million related to the large relationship discussed above)
• Net interest margin of 2.47% and FTE net interest margin of 2.55%¹, both increasing 8 bps from the prior quarter and 43 bps from the prior year period
  • Interest reversals discussed above impacted net interest margin by 9 bps
• Noninterest income of $9.2 million, up 6% from the prior quarter and down 30% from adjusted noninterest income¹ in the prior year period

• Adjusted pre-provision net revenue (“PPNR”) of $17.1 million¹, up 14% from the prior quarter and down 6% from the prior year period

• Total loan balances of $3.9 billion, up $52.9 million, or 1%, from the second quarter of 2026
  • The yield on the loan portfolio increased to 6.42%, up 8 bps from the prior quarter and 24 bps from the prior year period
  • Strong loan production in core verticals partially offset by early payoffs and runoff in exited portfolios
• Total deposits of $5.2 billion, up $321.4 million, or 7%, from the second quarter of 2026
  • Continued growth in fintech deposits, providing capacity to replace higher-cost CDs and brokered deposits
  • The cost of interest-bearing deposits declined to 3.32%, down 6 bps from the prior quarter and 55 bps from the prior year period
  • Approximately $2.9 billion of fintech deposits held off-balance sheet in a deposit network, providing flexibility to manage the size of the balance sheet
  • Loans to deposits ratio of 75%
• Provision for credit losses of $11.6 million, down $1.8 million, or 13%, from the second quarter of 2026
• Net charge-offs to average loans of 0.82%, a decrease from 1.77% in the second quarter of 2026
  • Decrease in net charge-offs due to declines in franchise finance and small business lending net charge-offs
• Nonperforming loans (“NPLs”) to total loans of 1.63%, compared to 1.58% in the second quarter of 2026; allowance for credit losses - loans (“ACL”) to total loans of 1.48%, compared to 1.39% in the second quarter of 2026
  • Increase in NPLs due primarily to franchise finance loans moved to nonaccrual
  • NPLs / total loans of 1.14%¹ excluding fully-guaranteed balances, up from 1.07% in the second quarter of 2026
  • ACL to NPLs of 91%; or 131%¹ excluding fully-guaranteed balances
• Tangible common equity to tangible assets of 5.94%¹, and 6.96%¹ ex-AOCI and adjusted for normalized cash balances; CET1 ratio of 8.86%²; total capital ratio of 12.32%²
• Tangible book value per common share of $40.04¹, down from $41.09¹ in the second quarter of 2026

Fourth Quarter 2026 Outlook

• Diluted earnings per share of $1.02 to $1.07
• FTE net interest margin of 2.75% to 2.80%, driven by ongoing loan portfolio optimization and stable deposit costs (assumes additional 25 bp increase in Fed Funds rate in December)
• FTE net interest income of around $38.5 million
• Noninterest income of around $7.5 million, reflecting lower small business lending originations and gain on sale activity, partially offset by continued growth in fintech revenue
• Noninterest expense of around $26.5 million
• Provision for credit losses of $7.5 million to $8.0 million

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."

2 Regulatory capital ratios are preliminary pending filing of the Company's regulatory reports

Conference Call and Webcast

The Company will host a conference call and webcast at 5:00 p.m. Eastern Time today, October 29, 2026, to discuss its quarterly financial results. The call can be accessed via telephone at (833) 461-5787; meeting id: 571140239. To access the webcast and view the presentation slides, please visit www.firstinternetbancorp.com and click the link provided for Earnings Call Webcast.

The webcast and slides will be available on the Company’s website shortly after the call has ended and will be archived on the Company’s website for 12 months.

About First Internet Bancorp

First Internet Bancorp is a bank holding company with assets of $5.9 billion as of September 30, 2026. 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 deposits, commercial real estate and construction financing, SBA financing, public finance, consumer loans, and specialty finance services nationally, as well as 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,” “better than,” “continue,” “could,” “drive,” “enhance,” “estimate,” “expand,” “expect,” “future,” “going forward,” “growth,” ”improve,” “increase,” “looking ahead,” “maintain,” “may,” “ongoing,” “opportunities,” “pending,” “plan,” “position,” “preliminary,” “progress,” “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, adjusted pre-provision net revenue, adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax provision, adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average shareholders’ equity, adjusted return on average tangible common equity, adjusted tangible common equity, adjusted tangible assets, adjusted tangible common equity to adjusted tangible assets, adjusted nonperforming loans to total loans and adjusted allowance for credit losses – loans to nonperforming loans 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												Nine Months Ended
				September 30				June 30				September 30				September 30				September 30
					2026				2026				2025				2026				2025
Net income (loss)				$	4,819			$	2,367			$	(41,593	)		$	9,695			$	(40,457	)
Per share and share information
	Earnings (loss) per share - basic			$	0.55			$	0.27			$	(4.76	)		$	1.11			$	(4.63	)
	Earnings (loss) per share - diluted				0.54				0.27				(4.76	)			1.10				(4.63	)
	Dividends declared per share				0.06				0.06				0.06				0.18				0.18
	Book value per common share				40.58				41.63				40.42				40.58				40.42
	Tangible book value per common share 1				40.04				41.09				39.88				40.04				39.88
	Common shares outstanding				8,733,574				8,733,574				8,713,094				8,733,574				8,713,094
	Average common shares outstanding:
		Basic			8,762,827				8,754,008				8,742,052				8,750,511				8,730,519
		Diluted			8,865,954				8,822,099				8,742,052				8,821,890				8,730,519
Performance ratios
	Return on average assets				0.33	%			0.17	%			(2.71	%)			0.23	%			(0.91	%)
	Return on average shareholders' equity				5.19	%			2.56	%			(42.11	%)			3.50	%			(13.80	%)
	Return on average tangible common equity 1				5.26	%			2.60	%			(42.62	%)			3.54	%			(13.97	%)
	Net interest margin				2.47	%			2.39	%			2.04	%			2.41	%			1.94	%
	Net interest margin - FTE 1,2				2.55	%			2.47	%			2.12	%			2.49	%			2.02	%
Capital ratios 3
	Total shareholders' equity to assets				6.02	%			6.54	%			6.25	%			6.02	%			6.25	%
	Tangible common equity to tangible assets 1				5.94	%			6.46	%			6.17	%			5.94	%			6.17	%
	Tier 1 leverage ratio				6.15	%			6.23	%			5.69	%			6.15	%			5.69	%
	Common equity tier 1 capital ratio				8.86	%			8.90	%			9.24	%			8.86	%			9.24	%
	Tier 1 capital ratio				8.86	%			8.90	%			9.24	%			8.86	%			9.24	%
	Total risk-based capital ratio				12.32	%			12.22	%			13.11	%			12.32	%			13.11	%
Asset quality
	Nonperforming loans			$	63,056			$	60,073			$	53,250			$	63,056			$	53,250
	Nonperforming assets				67,464				64,573				55,237				67,464				55,237
	Nonperforming loans to loans				1.63	%			1.58	%			1.47	%			1.63	%			1.47	%
	Nonperforming assets to total assets				1.15	%			1.16	%			0.98	%			1.15	%			0.98	%
	Allowance for credit losses - loans to:
		Loans			1.48	%			1.39	%			1.65	%			1.48	%			1.65	%
		Nonperforming loans			91.0	%			88.4	%			112.5	%			91.0	%			112.5	%
	Net charge-offs to average loans				0.82	%			1.77	%			1.89	%			1.41	%			1.38	%
Average balance sheet information
	Loans			$	3,873,251			$	3,836,149			$	4,415,693			$	3,861,188			$	4,350,947
	Total securities				1,088,563				1,048,742				898,543				1,053,633				911,805
	Other earning assets				619,347				561,255				569,811				567,791				471,096
	Total interest-earning assets				5,582,792				5,448,429				5,895,554				5,485,886				5,742,686
	Total assets				5,796,473				5,656,350				6,081,792				5,696,745				5,926,580
	Noninterest-bearing deposits				146,911				134,166				174,494				141,474				154,604
	Interest-bearing deposits				4,903,029				4,783,803				5,133,010				4,810,923				4,915,137
	Total deposits				5,049,940				4,917,969				5,307,504				4,952,397				5,069,741
	Shareholders' equity				368,091				370,247				391,886				370,849				391,930
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)
Dollar amounts in thousands
				September 30				June 30				September 30
					2026				2026				2025
Assets
	Cash and due from banks			$	5,977			$	8,692			$	10,923
	Interest-bearing deposits				646,297				402,276				776,738
	Securities available-for-sale, at fair value				843,108				786,676				625,906
	Securities held-to-maturity, at amortized cost, net of allowance for credit losses				255,934				264,662				261,725
	Loans held-for-sale				34,855				44,816				114,701
	Loans				3,863,984				3,811,073				3,630,385
	Allowance for credit losses - loans				(57,361	)			(53,096	)			(59,923	)
		Net loans			3,806,623				3,757,977				3,570,462
	Accrued interest receivable				28,565				29,136				26,674
	Federal Home Loan Bank of Indianapolis stock				28,350				28,350				28,350
	Cash surrender value of bank-owned life insurance				43,492				43,175				42,256
	Premises and equipment, net				64,538				65,720				68,843
	Goodwill				4,687				4,687				4,687
	Servicing asset				23,620				23,180				22,107
	Other real estate owned				4,141				4,121				1,801
	Accrued income and other assets				97,816				92,907				84,001
		Total assets		$	5,888,003			$	5,556,375			$	5,639,174
Liabilities
	Noninterest-bearing deposits			$	159,051			$	131,366			$	243,539
	Interest-bearing deposits				4,993,715				4,700,012				4,671,895
		Total deposits			5,152,766				4,831,378				4,915,434
	Advances from Federal Home Loan Bank				239,500				239,500				249,500
	Subordinated debt				123,506				105,626				105,386
	Accrued interest payable				1,298				1,594				1,236
	Accrued expenses and other liabilities				16,525				14,730				15,450
		Total liabilities			5,533,595				5,192,828				5,287,006
Shareholders' equity
	Voting common stock				188,065				187,545				186,608
	Retained earnings				201,399				197,119				188,564
	Accumulated other comprehensive loss				(35,056	)			(21,117	)			(23,004	)
		Total shareholders' equity			354,408				363,547				352,168
		Total liabilities and shareholders' equity		$	5,888,003			$	5,556,375			$	5,639,174

First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited)
Dollar amounts in thousands, except per share data
					Three Months Ended												Nine Months Ended
					September 30				June 30				September 30				September 30				September 30
						2026				2026				2025				2026				2025
Interest income
	Loans				$	62,656			$	60,693			$	68,958			$	184,188			$	198,305
	Securities - taxable					10,772				9,948				8,614				30,216				26,139
	Securities - non-taxable					621				629				652				1,904				1,967
	Other earning assets					5,982				5,366				6,164				16,169				15,692
		Total interest income				80,031				76,636				84,388				232,477				242,103
Interest expense
	Deposits					41,080				40,320				50,134				121,759				144,554
	Other borrowed funds					4,209				3,877				3,902				11,939				14,111
		Total interest expense				45,289				44,197				54,036				133,698				158,665
		Net interest income				34,742				32,439				30,352				98,779				83,438
Provision for credit losses						11,629				13,415				34,789				41,349				60,330
		Net interest income (loss) after provision
			for credit losses			23,113				19,024				(4,437	)			57,430				23,108
Noninterest income (loss)
	Service charges and fees					1,391				1,112				369				3,347				912
	Loan servicing revenue					2,824				2,853				2,055				8,533				6,017
	Loan servicing asset revaluation					(961	)			(1,579	)			(1,332	)			(3,600	)			(3,666	)
	Gain (loss) on sale of loans					4,792				4,690				(27,103	)			16,859				(16,783	)
	Other					1,153				1,609				1,364				4,263				4,857
		Total noninterest income (loss)				9,199				8,685				(24,647	)			29,402				(8,663	)
Noninterest expense
	Salaries and employee benefits					14,761				13,570				14,384				41,567				38,358
	Marketing, advertising and promotion					733				706				482				2,054				1,831
	Consulting and professional fees					960				1,372				979				3,412				3,143
	Data processing					713				774				651				2,262				1,942
	Loan expenses					2,392				2,109				1,850				6,680				4,901
	Premises and equipment					3,654				3,718				3,572				11,048				9,968
	Deposit insurance premium					1,660				1,611				1,584				4,758				4,546
	Other					2,384				2,262				1,957				6,625				6,127
		Total noninterest expense				27,257				26,122				25,459				78,406				70,816
Income (loss) before income taxes						5,055				1,587				(54,543	)			8,426				(56,371	)
Income tax provision (benefit)						236				(780	)			(12,950	)			(1,269	)			(15,914	)
Net income (loss)					$	4,819			$	2,367			$	(41,593	)		$	9,695			$	(40,457	)
Per common share data
Earnings (loss) per share - basic					$	0.55			$	0.27			$	(4.76	)		$	1.11			$	(4.63	)
Earnings (loss) per share - diluted					$	0.54			$	0.27			$	(4.76	)		$	1.10			$	(4.63	)
Dividends declared per share					$	0.06			$	0.06			$	0.06			$	0.18			$	0.18

First Internet Bancorp
Average Balances and Rates (unaudited)
Dollar amounts in thousands
					Three Months Ended
					September 30, 2026											June 30, 2026											September 30, 2025
					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			$	3,874,882			$	62,656			6.42	%		$	3,838,432			$	60,693			6.34	%		$	4,427,200			$	68,958			6.18	%
		Securities - taxable				1,017,130				10,772			4.20	%			974,877				9,948			4.09	%			819,941				8,614			4.17	%
		Securities - non-taxable				71,433				621			3.45	%			73,865				629			3.42	%			78,602				652			3.29	%
		Other earning assets				619,347				5,982			3.83	%			561,255				5,366			3.83	%			569,811				6,164			4.29	%
			Total interest-earning assets			5,582,792				80,031			5.69	%			5,448,429				76,636			5.64	%			5,895,554				84,388			5.68	%
	Allowance for credit losses - loans					(55,609	)										(57,343	)										(49,495	)
	Noninterest-earning assets					269,290											265,264											235,733
		Total assets			$	5,796,473										$	5,656,350										$	6,081,792
Liabilities
	Interest-bearing liabilities
		Interest-bearing demand deposits			$	1,437,634			$	9,861			2.72	%		$	1,356,003			$	8,905			2.63	%		$	1,399,323			$	11,742			3.33	%
		Savings accounts				18,153				38			0.83	%			18,765				39			0.83	%			20,035				42			0.83	%
		Money market accounts				1,239,822				9,859			3.15	%			1,304,538				10,334			3.18	%			1,250,350				11,771			3.73	%
		Fintech - brokered deposits				428,992				3,647			3.37	%			57,492				487			3.40	%			-				-			0.00	%
		Certificates and brokered deposits				1,778,428				17,675			3.94	%			2,047,005				20,555			4.03	%			2,463,302				26,579			4.28	%
			Total interest-bearing deposits			4,903,029				41,080			3.32	%			4,783,803				40,320			3.38	%			5,133,010				50,134			3.87	%
		Other borrowed funds				353,978				4,209			4.72	%			348,383				3,877			4.46	%			365,119				3,902			4.24	%
			Total interest-bearing liabilities			5,257,007				45,289			3.42	%			5,132,186				44,197			3.45	%			5,498,129				54,036			3.90	%
	Noninterest-bearing deposits					146,911											134,166											174,494
	Other noninterest-bearing liabilities					24,464											19,751											17,283
		Total liabilities				5,428,382											5,286,103											5,689,906
Shareholders' equity						368,091											370,247											391,886
Total liabilities and shareholders' equity					$	5,796,473										$	5,656,350										$	6,081,792
Net interest income									$	34,742										$	32,439										$	30,352
Interest rate spread													2.27	%										2.19	%										1.78	%
Net interest margin													2.47	%										2.39	%										2.04	%
Net interest margin - FTE 2,3													2.55	%										2.47	%										2.12	%
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
					Nine Months Ended
					September 30, 2026											September 30, 2025
					Average				Interest /				Yield /			Average				Interest /				Yield /
					Balance				Dividends				Cost			Balance				Dividends				Cost
Assets
	Interest-earning assets
		Loans, including loans held-for-sale 1			$	3,864,462			$	184,188			6.37	%		$	4,359,785			$	198,305			6.08	%
		Securities - taxable				978,633				30,216			4.13	%			832,060				26,139			4.20	%
		Securities - non-taxable				75,000				1,904			3.39	%			79,745				1,967			3.30	%
		Other earning assets				567,791				16,169			3.81	%			471,096				15,692			4.45	%
			Total interest-earning assets			5,485,886				232,477			5.67	%			5,742,686				242,103			5.64	%
	Allowance for credit losses - loans					(56,350	)										(48,091	)
	Noninterest-earning assets					267,209											231,985
		Total assets			$	5,696,745										$	5,926,580
Liabilities
	Interest-bearing liabilities
		Interest-bearing demand deposits			$	1,346,440			$	26,933			2.67	%		$	1,195,651			$	28,483			3.19	%
		Savings accounts				18,815				118			0.84	%			20,786				131			0.84	%
		Money market accounts				1,278,637				30,297			3.17	%			1,220,080				34,220			3.75	%
		Fintech - brokered deposits				163,733				4,134			3.38	%			-				-			0.00	%
		Certificates and brokered deposits				2,003,298				60,277			4.02	%			2,478,620				81,720			4.41	%
			Total interest-bearing deposits			4,810,923				121,759			3.38	%			4,915,137				144,554			3.93	%
		Other borrowed funds				351,499				11,939			4.54	%			444,532				14,111			4.24	%
			Total interest-bearing liabilities			5,162,422				133,698			3.46	%			5,359,669				158,665			3.96	%
	Noninterest-bearing deposits					141,474											154,604
	Other noninterest-bearing liabilities					22,000											20,377
		Total liabilities				5,325,896											5,534,650
Shareholders' equity						370,849											391,930
Total liabilities and shareholders' equity					$	5,696,745										$	5,926,580
Net interest income									$	98,779										$	83,438
Interest rate spread													2.21	%										1.68	%
Net interest margin													2.41	%										1.94	%
Net interest margin - FTE 2,3													2.49	%										2.02	%
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
				September 30, 2026							June 30, 2026							September 30, 2025
				Amount				Percent			Amount				Percent			Amount				Percent
Commercial loans
	Commercial and industrial			$	237,667			6.2	%		$	212,675			5.6	%		$	206,301			5.7	%
	Owner-occupied commercial real estate				50,082			1.3	%			51,749			1.4	%			50,046			1.4	%
	Investor commercial real estate				753,690			19.4	%			669,970			17.5	%			644,184			17.7	%
	Construction				400,302			10.4	%			427,076			11.2	%			300,291			8.3	%
	Single tenant lease financing				308,594			8.0	%			288,720			7.6	%			135,025			3.8	%
	Public finance				430,381			11.1	%			445,507			11.7	%			480,119			13.2	%
	Healthcare finance				112,406			2.9	%			121,287			3.2	%			150,522			4.1	%
	Small business lending				439,335			11.4	%			435,686			11.4	%			401,628			11.1	%
	Franchise finance				330,626			8.6	%			357,182			9.4	%			450,340			12.4	%
		Total commercial loans			3,063,083			79.3	%			3,009,852			79.0	%			2,818,456			77.7	%
Consumer loans
	Residential mortgage				319,972			8.3	%			326,258			8.6	%			349,275			9.6	%
	Home equity				16,186			0.4	%			14,102			0.4	%			15,806			0.4	%
	Trailers				256,533			6.6	%			252,325			6.6	%			232,006			6.4	%
	Recreational vehicles				145,090			3.8	%			143,547			3.8	%			142,245			3.9	%
	Other consumer loans				44,684			1.2	%			45,916			1.2	%			48,753			1.3	%
		Total consumer loans			782,465			20.3	%			782,148			20.6	%			788,085			21.6	%
Net deferred loan fees, premiums, discounts and other 1					18,436			0.4	%			19,073			0.4	%			23,844			0.7	%
Total loans				$	3,863,984			100.0	%		$	3,811,073			100.0	%		$	3,630,385			100.0	%
				September 30, 2026							June 30, 2026							September 30, 2025
				Amount				Percent			Amount				Percent			Amount				Percent
Deposits
	Noninterest-bearing deposits			$	159,051			3.2	%		$	131,366			2.7	%		$	243,539			5.0	%
	Interest-bearing demand deposits				1,713,795			33.3	%			1,493,178			30.9	%			1,003,950			20.4	%
	Savings accounts				17,564			0.3	%			18,738			0.4	%			18,694			0.4	%
	Money market accounts				1,232,524			23.9	%			1,245,591			25.8	%			1,250,202			25.4	%
	Fintech - brokered deposits				341,610			6.6	%			23,344			0.5	%			-			0.0	%
	Certificates of deposits				1,479,994			28.7	%			1,683,450			34.8	%			2,115,613			43.0	%
	Brokered deposits				208,228			4.0	%			235,711			4.9	%			283,436			5.8	%
Total deposits				$	5,152,766			100.0	%		$	4,831,378			100.0	%		$	4,915,434			100.0	%
1 Includes carrying value adjustments of $16.4 million, $17.3 million and $20.2 million related to terminated interest rate swaps associated with public finance loans as of September 30, 2026, June 30, 2026 and September 30, 2025, respectively.

First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
			Three Months Ended												Nine Months Ended
			September 30				June 30				September 30				September 30				September 30
				2026				2026				2025				2026				2025
Total equity - GAAP			$	354,408			$	363,547			$	352,168			$	354,408			$	352,168
Adjustments:
	Goodwill			(4,687	)			(4,687	)			(4,687	)			(4,687	)			(4,687	)
Tangible common equity			$	349,721			$	358,860			$	347,481			$	349,721			$	347,481
Total assets - GAAP			$	5,888,003			$	5,556,375			$	5,639,174			$	5,888,003			$	5,639,174
Adjustments:
	Goodwill			(4,687	)			(4,687	)			(4,687	)			(4,687	)			(4,687	)
Tangible assets			$	5,883,316			$	5,551,688			$	5,634,487			$	5,883,316			$	5,634,487
Common shares outstanding				8,733,574				8,733,574				8,713,094				8,733,574				8,713,094
Book value per common share			$	40.58			$	41.63			$	40.42			$	40.58			$	40.42
Effect of goodwill				(0.54	)			(0.54	)			(0.54	)			(0.54	)			(0.54	)
Tangible book value per common share			$	40.04			$	41.09			$	39.88			$	40.04			$	39.88
Total shareholders' equity to assets				6.02	%			6.54	%			6.25	%			6.02	%			6.25	%
Effect of goodwill				(0.08	%)			(0.08	%)			(0.08	%)			(0.08	%)			(0.08	%)
Tangible common equity to tangible assets				5.94	%			6.46	%			6.17	%			5.94	%			6.17	%
Total average equity - GAAP			$	368,091			$	370,247			$	391,886			$	370,849			$	391,930
Adjustments:
	Average goodwill			(4,687	)			(4,687	)			(4,687	)			(4,687	)			(4,687	)
Average tangible common equity			$	363,404			$	365,560			$	387,199			$	366,162			$	387,243
Return on average shareholders' equity				5.19	%			2.56	%			(42.11	%)			3.50	%			(13.80	%)
Effect of goodwill				0.07	%			0.04	%			(0.51	%)			0.04	%			(0.17	%)
Return on average tangible common equity				5.26	%			2.60	%			(42.62	%)			3.54	%			(13.97	%)
Total interest income			$	80,031			$	76,636			$	84,388			$	232,477			$	242,103
Adjustments:
	Fully-taxable equivalent adjustments 1			1,116				1,142				1,158				3,418				3,484
Total interest income - FTE			$	81,147			$	77,778			$	85,546			$	235,895			$	245,587
Net interest income			$	34,742			$	32,439			$	30,352			$	98,779			$	83,438
Adjustments:
	Fully-taxable equivalent adjustments 1			1,116				1,142				1,158				3,418				3,484
Net interest income - FTE			$	35,858			$	33,581			$	31,510			$	102,197			$	86,922
Net interest margin				2.47	%			2.39	%			2.04	%			2.41	%			1.94	%
Effect of fully-taxable equivalent adjustments 1				0.08	%			0.08	%			0.08	%			0.08	%			0.08	%
Net interest margin - FTE				2.55	%			2.47	%			2.12	%			2.49	%			2.02	%
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												Nine Months Ended
			September 30				June 30				September 30				September 30				September 30
				2026				2026				2025				2026				2025
Total revenue - GAAP			$	43,941			$	41,124			$	5,705			$	128,181			$	74,775
Adjustments:
	Loss on sale of loans			-				-				37,823				-				37,823
Adjusted total revenue			$	43,941			$	41,124			$	43,528			$	128,181			$	112,598
Net income (loss) - GAAP			$	4,819			$	2,367			$	(41,593	)		$	9,695			$	(40,457	)
Adjustments:1
	Provision for credit losses			11,629				13,415				34,789				41,349				60,330
	Income tax (benefit) provision			236				(780	)			(12,950	)			(1,269	)			(15,914	)
Pre-tax, pre-provision net revenue (loss)			$	16,684			$	15,002			$	(19,754	)		$	49,775			$	3,959
Pre-tax, pre-provision net revenue (loss)			$	16,684			$	15,002			$	(19,754	)		$	49,775			$	3,959
Adjustments:1
	Loss on sale of loans			-				-				37,823				-				37,823
	Employee severance expense			371				-				-				371				-
Adjusted pre-tax, pre-provision net revenue			$	17,055			$	15,002			$	18,069			$	50,146			$	41,782
Noninterest income (loss) - GAAP			$	9,199			$	8,685			$	(24,647	)		$	29,402			$	(8,663	)
Adjustments:
	Loss on sale of loans			-				-				37,823				-				37,823
Adjusted noninterest income			$	9,199			$	8,685			$	13,176			$	29,402			$	29,160
Noninterest expense - GAAP			$	27,257			$	26,122			$	25,459			$	78,406			$	70,816
Adjustments:
	Employee severance expense			(371	)			-				-				(371	)			-
Adjusted noninterest expense			$	26,886			$	26,122			$	25,459			$	78,035			$	70,816
Income (loss) before income taxes - GAAP			$	5,055			$	1,587			$	(54,543	)		$	8,426			$	(56,371	)
Adjustments:
	Loss on sale of loans			-				-				37,823				-				37,823
	Employee severance expense			371				-				-				371				-
Adjusted income (loss) before income taxes			$	5,426			$	1,587			$	(16,720	)		$	8,797			$	(18,548	)
Income tax provision (benefit) - GAAP			$	236			$	(780	)		$	(12,950	)		$	(1,269	)		$	(15,914	)
Adjustments:1
	Loss on sale of loans			-				-				8,699				-				8,699
	Employee severance expense			78				-				-				78				-
Adjusted income tax provision (benefit)			$	314			$	(780	)		$	(4,251	)		$	(1,191	)		$	(7,215	)
Net income (loss) - GAAP			$	4,819			$	2,367			$	(41,593	)		$	9,695			$	(40,457	)
Adjustments:1
	Loss on sale of loans			-				-				29,124				-				29,124
	Employee severance expense			293				-				-				293				-
Adjusted net income (loss)			$	5,112			$	2,367			$	(12,469	)		$	9,988			$	(11,333	)
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												Nine Months Ended
			September 30				June 30				September 30				September 30				September 30
				2026				2026				2025				2026				2025
Diluted average common shares outstanding				8,865,954				8,822,099				8,742,052				8,821,890				8,730,519
Diluted earnings per share (loss) - GAAP			$	0.54			$	0.27			$	(4.76	)		$	1.10			$	(4.63	)
Adjustments:
	Effect of loss on sale of loans			-				-				3.33				-				3.34
	Effect of employee severance expense			0.03				-				-				0.03				-
Adjusted diluted earnings (loss) per share			$	0.57			$	0.27			$	(1.43	)		$	1.13			$	(1.29	)
Return on average assets				0.33	%			0.17	%			(2.71	%)			0.23	%			(0.91	%)
	Effect of loss on sale of loans			0.00	%			0.00	%			1.90	%			0.00	%			0.66	%
	Effect of employee severance expense			0.02	%			0.00	%			0.00	%			0.01	%			0.00	%
Adjusted return on average assets				0.35	%			0.17	%			(0.81	%)			0.24	%			(0.25	%)
Return on average shareholders' equity				5.19	%			2.56	%			(42.11	%)			3.50	%			(13.80	%)
	Effect of loss on sale of loans			0.00	%			0.00	%			29.48	%			0.00	%			9.94	%
	Effect of employee severance expense			0.32	%			0.00	%			0.00	%			0.11	%			0.00	%
Adjusted return on average shareholders' equity				5.51	%			2.56	%			(12.63	%)			3.61	%			(3.86	%)
Return on average tangible common equity				5.26	%			2.60	%			(42.62	%)			3.54	%			(13.97	%)
	Effect of loss on sale of loans			0.00	%			0.00	%			29.84	%			0.00	%			10.06	%
	Effect of employee severance expense			0.32	%			0.00	%			0.00	%			0.11	%			0.00	%
Adjusted return on average tangible common equity				5.58	%			2.60	%			(12.78	%)			3.65	%			(3.91	%)
Tangible common equity			$	349,721			$	358,860			$	347,481			$	349,721			$	347,481
Adjustments:
	Accumulated other comprehensive loss			35,056				21,117				23,004				35,056				23,004
Adjusted tangible common equity			$	384,777			$	379,977			$	370,485			$	384,777			$	370,485
Tangible assets			$	5,883,316			$	5,551,688			$	5,634,487			$	5,883,316			$	5,634,487
Adjustments:
	Cash in excess of $300 million			(352,274	)			(110,968	)			(487,661	)			(352,274	)			(487,661	)
Adjusted tangible assets			$	5,531,042			$	5,440,720			$	5,146,826			$	5,531,042			$	5,146,826
Adjusted tangible common equity			$	384,777			$	379,977			$	370,485			$	384,777			$	370,485
Adjusted tangible assets				5,531,042				5,440,720				5,146,826				5,531,042				5,146,826
Adjusted tangible common equity to adjusted tangible assets				6.96	%			6.98	%			7.20	%			6.96	%			7.20	%
Nonperforming loans to total loans				1.63	%			1.58	%			1.47	%			1.63	%			1.47	%
Adjustments:
	Fully guaranteed balances			(0.49	%)			(0.51	%)			(0.29	%)			(0.49	%)			(0.29	%)
Adjusted nonperforming loans to total loans				1.14	%			1.07	%			1.18	%			1.14	%			1.18	%
Allowance for credit losses - loans to nonperforming loans				90.97	%			88.39	%			112.53	%			90.97	%			112.53	%
Adjustments:
	Fully guaranteed balances			39.79	%			41.45	%			27.83	%			39.79	%			27.83	%
Adjusted allowance for credit losses - loans to nonperforming loans				130.76	%			129.84	%			140.36	%			130.76	%			140.36	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261026887073/en/

Contact Information

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

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 charge-offs financial

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

nonaccrual financial

A nonaccrual asset is a loan or investment that a lender stops counting as earning interest because the borrower is not making scheduled payments or the lender doubts future payments. Think of it like putting a subscription on hold when you stop receiving payments; it reduces reported income and signals a higher risk that the lender may not get repaid, which can affect a bank's profits and the value of its loan portfolio.