First Internet Bancorp Reports Second Quarter 2026 Results

Key Terms

fte financial

A full-time equivalent (FTE) is a way to count labor by converting part-time and variable hours into the number of full-time workers they equal; for example, two half-time employees equal one FTE. Investors use FTEs to compare staffing levels, payroll exposure, and productivity across periods or companies, similar to comparing vehicle fleet size rather than counting drivers who work varying shifts. It helps standardize workforce cost and capacity measures.

ppnr financial

Pre-provision net revenue (PPNR) is a bank’s revenue after accounting for day-to-day operating costs but before subtracting money set aside for bad loans. Think of it like a store’s gross profit before it reserves cash for damaged goods: it shows the core ability to generate income from lending and fees, and helps investors judge a bank’s operating strength separate from credit losses.

nonaccrual loans financial

Nonaccrual loans are loans a lender has stopped counting toward interest income because the borrower is overdue or unlikely to pay; the lender only records cash payments received and may set aside extra funds to cover potential losses. For investors, a rising number or amount of nonaccrual loans signals weaker credit quality, lower future interest revenue and larger potential write-downs — similar to pausing expected subscription income when many customers stop paying.

cet1 ratio regulatory

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.

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- Net income of $2.4 million, up significantly from $0.2 million a year ago -
- Diluted earnings per share of $0.27, up significantly from $0.02 a year ago -
- 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 second quarter ended June 30, 2026.

Key Business Updates

• Significant Improvement in Credit Quality: Provision for credit losses for the second quarter of 2026 of $13.4 million, down from $16.3 million in the first quarter of 2026. Notably, total nonaccrual loans declined for the second consecutive quarter, and are down 14% from the first quarter of 2026. Furthermore, delinquencies 30 days or more past due decreased to 0.78% of total performing loans, down from 1.06% in the first quarter of 2026, driven by a significant decline in small business lending delinquencies.
• Revenue Momentum: Growth in net interest income (up 16%), fully-taxable equivalent (“FTE”) net interest margin of 2.47%¹ (up 43 basis points), and strong noninterest income drove quarterly revenue up 23% year-over-year to $41.1 million. When combined with well-managed expenses, pre-provision net revenue grew 28% year-over-year to $15.0 million¹.
• Solid Loan Production: Commercial loan balances continued to grow during the second quarter led by construction / investor commercial real estate and single tenant lease financing. While period end and average loan balances were impacted by early payoffs, loan pipelines at the end of the quarter were solid, setting the stage for continued loan growth in the second half of 2026. Additionally, the Company expects to increase its retention of embedded finance small business loans originated for one of its fintech partners, an asset class with very attractive risk-return characteristics.
• Fee Revenue Acceleration: Noninterest income grew 56% year-over-year, supported by the continued growth in the Banking-as-a-Service (“BaaS”) platform. As we have selectively increased the number of fintech partners, and have expanded relationships with existing partners, fee revenue from BaaS increased 172% from the prior year period.

Second Quarter 2026 Financial Performance

• Net income of $2.4 million and diluted earnings per share of $0.27, both up significantly from the prior year period
• Total revenue of $41.1 million, which increased 23% from the prior year period
• Net interest income of $32.4 million and FTE net interest income of $33.6 million¹, increased 16% and 15%, respectively, over the prior year period
• Net interest margin of 2.39% and FTE net interest margin of 2.47%¹, both increasing 43 basis points (“bps”) from the prior year period
• Noninterest income of $8.7 million, which increased 56% from the prior year period
• Pre-provision net revenue (“PPNR”) of $15.0 million¹, which increased 28% from the prior year period
• Total loan balances of $3.8 billion, up $35.2 million, or 1%, from the first quarter of 2026
  • The yield on the loan portfolio increased 27 bps from the prior year period to 6.34%
  • Solid loan production partially offset by elevated payoffs and maturities
• Total deposits of $4.8 billion, down $150.3 million, or 3%, from the first quarter of 2026
  • Continued growth in fintech deposits, allowing higher-cost CDs and brokered deposits to mature
  • The cost of interest-bearing deposits declined 54 bps from the prior year period to 3.38%
  • Approximately $2.4 billion of fintech deposits moved off-balance sheet into a deposit network, providing flexibility to manage the size of the balance sheet
  • Loans to deposits ratio of 79%
• Provision for credit losses of $13.4 million, down $2.9 million, or 18%, from the first quarter of 2026
• Net charge-offs to average loans of 1.77%, an increase from 1.65% in the first quarter of 2026
  • Increase in net charge-offs reflects resolution of nonperforming franchise finance loans, partially offset by a significant decline in small business lending net charge-offs
• Nonperforming loans (“NPLs”) to total loans of 1.58%, compared to 1.63% in the first quarter of 2026; allowance for credit losses - loans (“ACL”) to total loans of 1.39%, compared to 1.50% in the first quarter of 2026
  • Decrease in NPLs due primarily to lower nonaccrual franchise finance loans, partially offset by an increase in fully-guaranteed SBA 7(a) balances
  • NPLs / total loans of 1.07%¹ excluding fully-guaranteed balances, down from 1.22% in the first quarter of 2026
  • ACL to NPLs of 88%; or 130%¹ excluding fully-guaranteed balances
• Tangible common equity to tangible assets of 6.46%¹, and 6.98%¹ ex-AOCI and adjusted for normalized cash balances; CET1 ratio of 8.90%²; total capital ratio of 12.22%²
• Tangible book value per share of $41.09¹, up from $40.87¹ in the first quarter of 2026

“Our second quarter results reflect strong momentum across the business, paired with a meaningful and encouraging improvement in our credit trends," said David Becker, Chairman and CEO of First Internet Bancorp. "Total revenue grew 23% year-over-year and pre-provision net revenue increased nearly 28%, while our fully-taxable equivalent net interest margin expanded 43 basis points to 2.47%. Just as importantly, our credit provision declined, nonperforming loans decreased sequentially for the first time in several quarters, small business lending net charge-offs improved significantly, and delinquencies across the portfolio fell sharply - clear evidence that the proactive credit actions we have taken over the past several quarters are working.

"We are equally encouraged by the acceleration of our fee-based businesses. Noninterest income grew more than 56% year-over-year, driven by the continued strength of our Banking-as-a-Service platform and the deepening of our fintech partnerships, including an expanded relationship with jaris under which we will retain all small business loans originated through its platform. We also continue to invest in AI, automation, and digital capabilities that drive efficiency and elevate the customer experience. With improving credit, growing fee income, and a more capital-efficient balance sheet, we are well-positioned to build on this momentum through the remainder of 2026 and beyond."

Full Year 2026 Outlook

• Diluted earnings per share of $2.35 to $2.45
• Loan growth in the range of 4% to 6%, driven by solid pipelines across our commercial lending verticals
  • Outlook reflects early payoffs in commercial lending areas and lower retention of small business lending balances as secondary market premiums remain attractive
• 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 in the range of $141 million to $142 million
• Noninterest income in the range of $40.5 million to $41 million, reflecting continued BaaS growth and increasing small business lending originations and gain on sale activity in the second half of 2026
• Noninterest expense in the range of $106 million to $107 million
• Provision for credit losses, including net charge-offs and reserves related to problem loans, of $47 million to $48 million
  • Continual improvement is expected throughout the second half of 2026

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, July 30, 2026, to discuss its quarterly financial results. The call can be accessed via telephone at (833) 461-5787; meeting id: 115638970. 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 $5.6 billion as of June 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, pre-provision net revenue 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												Six Months Ended
		June 30				March 31				June 30				June 30				June 30
			2026				2026				2025				2026				2025
Net income		$	2,367			$	2,509			$	193			$	4,876			$	1,136
Per share and share information
Earnings per share - basic		$	0.27			$	0.29			$	0.02			$	0.56			$	0.13
Earnings per share - diluted			0.27				0.29				0.02				0.55				0.13
Dividends declared per share			0.06				0.06				0.06				0.12				0.12
Book value per common share			41.63				41.41				44.79				41.63				44.79
Tangible book value per common share 1			41.09				40.87				44.25				41.09				44.25
Common shares outstanding			8,733,574				8,716,662				8,713,094				8,733,574				8,713,094
Average common shares outstanding:
Basic			8,754,008				8,734,383				8,733,559				8,744,250				8,724,657
Diluted			8,822,099				8,774,111				8,760,374				8,797,389				8,784,005
Performance ratios
Return on average assets			0.17	%			0.18	%			0.01	%			0.17	%			0.04	%
Return on average shareholders' equity			2.56	%			2.72	%			0.20	%			2.64	%			0.58	%
Return on average tangible common equity 1			2.60	%			2.75	%			0.20	%			2.68	%			0.59	%
Net interest margin			2.39	%			2.36	%			1.96	%			2.38	%			1.89	%
Net interest margin - FTE 1,2			2.47	%			2.45	%			2.04	%			2.46	%			1.97	%
Capital ratios 3
Total shareholders' equity to assets			6.54	%			6.32	%			6.43	%			6.54	%			6.43	%
Tangible common equity to tangible assets 1			6.46	%			6.24	%			6.35	%			6.46	%			6.35	%
Tier 1 leverage ratio			6.23	%			6.23	%			6.69	%			6.23	%			6.69	%
Common equity tier 1 capital ratio			8.90	%			8.97	%			8.90	%			8.90	%			8.90	%
Tier 1 capital ratio			8.90	%			8.97	%			8.90	%			8.90	%			8.90	%
Total risk-based capital ratio			12.22	%			12.50	%			12.16	%			12.22	%			12.16	%
Asset quality
Nonperforming loans		$	60,073			$	61,596			$	43,541			$	60,073			$	43,541
Nonperforming assets			64,573				63,691				45,539				64,573				45,539
Nonperforming loans to loans			1.58	%			1.63	%			1.00	%			1.58	%			1.00	%
Nonperforming assets to total assets			1.16	%			1.12	%			0.75	%			1.16	%			0.75	%
Allowance for credit losses - loans to:
Loans			1.39	%			1.50	%			1.07	%			1.39	%			1.07	%
Nonperforming loans			88.4	%			91.7	%			106.8	%			88.4	%			106.8	%
Net charge-offs to average loans			1.77	%			1.65	%			1.31	%			1.71	%			1.12	%
Average balance sheet information
Loans		$	3,836,149			$	3,874,174			$	4,397,887			$	3,855,056			$	4,318,037
Total securities			1,048,742				1,022,872				934,994				1,035,879				918,547
Other earning assets			561,255				521,697				396,829				541,585				420,921
Total interest-earning assets			5,448,429				5,424,700				5,739,019				5,436,630				5,664,986
Total assets			5,656,350				5,635,646				5,924,144				5,646,054				5,847,687
Noninterest-bearing deposits			134,166				143,305				153,016				138,710				144,494
Interest-bearing deposits			4,783,803				4,744,189				4,792,939				4,764,105				4,804,396
Total deposits			4,917,969				4,887,494				4,945,955				4,902,815				4,948,890
Shareholders' equity			370,247				374,276				391,870				372,250				391,952
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
		June 30				March 31				June 30
			2026				2026				2025
Assets
Cash and due from banks		$	8,692			$	10,528			$	9,261
Interest-bearing deposits			402,276				591,277				437,100
Securities available-for-sale, at fair value			786,676				772,035				644,657
Securities held-to-maturity, at amortized cost, net of allowance for credit losses			264,662				276,042				271,737
Loans held-for-sale			44,816				55,240				126,533
Loans			3,811,073				3,775,870				4,362,562
Allowance for credit losses - loans			(53,096	)			(56,496	)			(46,517	)
Net loans			3,757,977				3,719,374				4,316,045
Accrued interest receivable			29,136				28,182				31,227
Federal Home Loan Bank of Indianapolis stock			28,350				28,350				28,350
Cash surrender value of bank-owned life insurance			43,175				42,864				41,961
Premises and equipment, net			65,720				67,006				69,930
Goodwill			4,687				4,687				4,687
Servicing asset			23,180				23,614				16,736
Other real estate owned			4,121				1,945				1,730
Accrued income and other assets			92,907				90,544				72,619
Total assets		$	5,556,375			$	5,711,688			$	6,072,573
Liabilities
Noninterest-bearing deposits		$	131,366			$	149,505			$	145,166
Interest-bearing deposits			4,700,012				4,832,145				5,153,623
Total deposits			4,831,378				4,981,650				5,298,789
Advances from Federal Home Loan Bank			239,500				239,500				264,500
Subordinated debt			105,626				105,546				105,307
Accrued interest payable			1,594				1,232				1,614
Accrued expenses and other liabilities			14,730				22,806				12,124
Total liabilities			5,192,828				5,350,734				5,682,334
Shareholders' equity
Voting common stock			187,545				186,967				186,116
Retained earnings			197,119				195,292				230,690
Accumulated other comprehensive loss			(21,117	)			(21,305	)			(26,567	)
Total shareholders' equity			363,547				360,954				390,239
Total liabilities and shareholders' equity		$	5,556,375			$	5,711,688			$	6,072,573

First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited)
Dollar amounts in thousands, except per share data
		Three Months Ended												Six Months Ended
		June 30				March 31				June 30				June 30				June 30
			2026				2026				2025				2026				2025
Interest income
Loans		$	60,693			$	60,839			$	66,685			$	121,532			$	129,347
Securities - taxable			9,948				9,496				9,062				19,444				17,525
Securities - non-taxable			629				654				654				1,283				1,315
Other earning assets			5,366				4,821				4,485				10,187				9,528
Total interest income			76,636				75,810				80,886				152,446				157,715
Interest expense
Deposits			40,320				40,359				46,794				80,679				94,420
Other borrowed funds			3,877				3,853				6,102				7,730				10,209
Total interest expense			44,197				44,212				52,896				88,409				104,629
Net interest income			32,439				31,598				27,990				64,037				53,086
Provision for credit losses			13,415				16,305				13,608				29,720				25,541
Net interest income after provision
for credit losses			19,024				15,293				14,382				34,317				27,545
Noninterest income
Service charges and fees			1,112				844				278				1,956				543
Loan servicing revenue			2,853				2,856				1,979				5,709				3,962
Loan servicing asset revaluation			(1,579	)			(1,060	)			(1,153	)			(2,639	)			(2,334	)
Gain on sale of loans			4,690				7,377				1,673				12,067				10,320
Other			1,609				1,501				2,780				3,110				3,493
Total noninterest income			8,685				11,518				5,557				20,203				15,984
Noninterest expense
Salaries and employee benefits			13,570				13,236				10,867				26,806				23,974
Marketing, advertising and promotion			706				615				702				1,321				1,349
Consulting and professional fees			1,372				1,080				936				2,452				2,164
Data processing			774				775				656				1,549				1,291
Loan expenses			2,109				2,179				1,520				4,288				3,051
Premises and equipment			3,718				3,676				3,281				7,394				6,396
Deposit insurance premium			1,611				1,487				1,564				3,098				2,962
Other			2,262				1,979				2,274				4,241				4,170
Total noninterest expense			26,122				25,027				21,800				51,149				45,357
Income (loss) before income taxes			1,587				1,784				(1,861	)			3,371				(1,828	)
Income tax benefit			(780	)			(725	)			(2,054	)			(1,505	)			(2,964	)
Net income		$	2,367			$	2,509			$	193			$	4,876			$	1,136
Per common share data
Earnings per share - basic		$	0.27			$	0.29			$	0.02			$	0.56			$	0.13
Earnings per share - diluted		$	0.27			$	0.29			$	0.02			$	0.55			$	0.13
Dividends declared per share		$	0.06			$	0.06			$	0.06			$	0.12			$	0.12

First Internet Bancorp
Average Balances and Rates (unaudited)
Dollar amounts in thousands
		Three Months Ended
		June 30, 2026											March 31, 2026											June 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		$	3,838,432			$	60,693			6.34	%		$	3,880,131			$	60,839			6.36	%		$	4,407,196			$	66,685			6.07	%
Securities - taxable			974,877				9,948			4.09	%			943,079				9,496			4.08	%			856,070				9,062			4.25	%
Securities - non-taxable			73,865				629			3.42	%			79,793				654			3.32	%			78,924				654			3.32	%
Other earning assets			561,255				5,366			3.83	%			521,697				4,821			3.75	%			396,829				4,485			4.53	%
Total interest-earning assets			5,448,429				76,636			5.64	%			5,424,700				75,810			5.67	%			5,739,019				80,886			5.65	%
Allowance for credit losses - loans			(57,343	)										(56,106	)										(49,073	)
Noninterest-earning assets			265,264											267,052											234,198
Total assets		$	5,656,350										$	5,635,646										$	5,924,144
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits		$	1,356,003			$	8,905			2.63	%		$	1,243,549			$	8,168			2.66	%		$	1,226,439			$	9,767			3.19	%
Savings accounts			18,765				39			0.83	%			19,542				41			0.85	%			21,760				46			0.85	%
Money market accounts			1,304,538				10,334			3.18	%			1,292,126				10,103			3.17	%			1,187,782				11,087			3.74	%
Fintech - brokered deposits			57,492				487			3.40	%			-				-			0.00	%			-				-			0.00	%
Certificates and brokered deposits			2,047,005				20,555			4.03	%			2,188,972				22,047			4.08	%			2,356,958				25,894			4.41	%
Total interest-bearing deposits			4,783,803				40,320			3.38	%			4,744,189				40,359			3.45	%			4,792,939				46,794			3.92	%
Other borrowed funds			348,383				3,877			4.46	%			352,117				3,853			4.44	%			567,575				6,102			4.31	%
Total interest-bearing liabilities			5,132,186				44,197			3.45	%			5,096,306				44,212			3.52	%			5,360,514				52,896			3.96	%
Noninterest-bearing deposits			134,166											143,305											153,016
Other noninterest-bearing liabilities			19,751											21,759											18,744
Total liabilities			5,286,103											5,261,370											5,532,274
Shareholders' equity			370,247											374,276											391,870
Total liabilities and shareholders' equity		$	5,656,350										$	5,635,646										$	5,924,144
Net interest income						$	32,439										$	31,598										$	27,990
Interest rate spread										2.19	%										2.15	%										1.69	%
Net interest margin										2.39	%										2.36	%										1.96	%
Net interest margin - FTE 2,3										2.47	%										2.45	%										2.04	%
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
		Six Months Ended
		June 30, 2026											June 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		$	3,859,166			$	121,532			6.35	%		$	4,325,518			$	129,347			6.03	%
Securities - taxable			959,066				19,444			4.09	%			838,222				17,525			4.22	%
Securities - non-taxable			76,813				1,283			3.37	%			80,325				1,315			3.30	%
Other earning assets			541,585				10,187			3.79	%			420,921				9,528			4.56	%
Total interest-earning assets			5,436,630				152,446			5.65	%			5,664,986				157,715			5.61	%
Allowance for credit losses - loans			(56,728	)										(47,378	)
Noninterest-earning assets			266,152											230,079
Total assets		$	5,646,054										$	5,847,687
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits		$	1,300,087			$	17,073			2.65	%		$	1,092,127			$	16,742			3.09	%
Savings accounts			19,151				80			0.84	%			21,167				88			0.84	%
Money market accounts			1,298,366				20,437			3.17	%			1,204,695				22,449			3.76	%
Fintech - brokered deposits			28,905				487			3.40	%			-				-			0.00	%
Certificates and brokered deposits			2,117,596				42,602			4.06	%			2,486,407				55,141			4.47	%
Total interest-bearing deposits			4,764,105				80,679			3.42	%			4,804,396				94,420			3.96	%
Other borrowed funds			350,240				7,730			4.45	%			484,897				10,209			4.25	%
Total interest-bearing liabilities			5,114,345				88,409			3.49	%			5,289,293				104,629			3.99	%
Noninterest-bearing deposits			138,710											144,494
Other noninterest-bearing liabilities			20,749											21,948
Total liabilities			5,273,804											5,455,735
Shareholders' equity			372,250											391,952
Total liabilities and shareholders' equity		$	5,646,054										$	5,847,687
Net interest income						$	64,037										$	53,086
Interest rate spread										2.16	%										1.62	%
Net interest margin										2.38	%										1.89	%
Net interest margin - FTE 2,3										2.46	%										1.97	%
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
		June 30, 2026							March 31, 2026							June 30, 2025
		Amount				Percent			Amount				Percent			Amount				Percent
Commercial loans
Commercial and industrial		$	212,675			5.6	%		$	225,425			6.0	%		$	174,475			4.0	%
Owner-occupied commercial real estate			51,749			1.4	%			48,136			1.3	%			50,096			1.1	%
Investor commercial real estate			669,970			17.5	%			598,933			15.9	%			513,411			11.8	%
Construction			427,076			11.2	%			449,888			11.9	%			332,658			7.6	%
Single tenant lease financing			288,720			7.6	%			254,044			6.7	%			970,042			22.3	%
Public finance			445,507			11.7	%			441,734			11.7	%			476,339			10.9	%
Healthcare finance			121,287			3.2	%			131,161			3.5	%			160,073			3.7	%
Small business lending			435,686			11.4	%			433,964			11.5	%			383,455			8.8	%
Franchise finance			357,182			9.4	%			389,249			10.3	%			479,757			11.0	%
Total commercial loans			3,009,852			79.0	%			2,972,534			78.8	%			3,540,306			81.2	%
Consumer loans
Residential mortgage			326,258			8.6	%			338,058			9.0	%			358,922			8.2	%
Home equity			14,102			0.4	%			14,219			0.4	%			16,668			0.4	%
Trailers			252,325			6.6	%			242,022			6.4	%			228,786			5.2	%
Recreational vehicles			143,547			3.8	%			142,442			3.8	%			144,476			3.3	%
Other consumer loans			45,916			1.2	%			46,874			1.2	%			48,319			1.1	%
Total consumer loans			782,148			20.6	%			783,615			20.8	%			797,171			18.2	%
Net deferred loan fees, premiums, discounts and other 1			19,073			0.4	%			19,721			0.4	%			25,085			0.6	%
Total loans		$	3,811,073			100.0	%		$	3,775,870			100.0	%		$	4,362,562			100.0	%
		June 30, 2026							March 31, 2026							June 30, 2025
		Amount				Percent			Amount				Percent			Amount				Percent
Deposits
Noninterest-bearing deposits		$	131,366			2.7	%		$	149,505			3.0	%		$	145,166			2.7	%
Interest-bearing demand deposits			1,493,178			30.9	%			1,358,028			27.3	%			1,458,123			27.5	%
Savings accounts			18,738			0.4	%			20,344			0.4	%			20,902			0.4	%
Money market accounts			1,245,591			25.8	%			1,325,382			26.6	%			1,210,960			22.9	%
Fintech - brokered deposits			23,344			0.5	%			-			0.0	%			-			0.0	%
Certificates of deposits			1,683,450			34.8	%			1,869,181			37.5	%			2,146,356			40.5	%
Brokered deposits			235,711			4.9	%			259,210			5.2	%			317,282			6.0	%
Total deposits		$	4,831,378			100.0	%		$	4,981,650			100.0	%		$	5,298,789			100.0	%
1 Includes carrying value adjustments of $17.3 million, $18.1 million and $21.2 million related to terminated interest rate swaps associated with public finance loans as of June 30, 2026, March 31, 2026 and June 30, 2025, respectively.

First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
		Three Months Ended												Six Months Ended
		June 30				March 31				June 30				June 30				June 30
			2026				2026				2025				2026				2025
Total equity - GAAP		$	363,547			$	360,954			$	390,239			$	363,547			$	390,239
Adjustments:
Goodwill			(4,687	)			(4,687	)			(4,687	)			(4,687	)			(4,687	)
Tangible common equity		$	358,860			$	356,267			$	385,552			$	358,860			$	385,552
Total assets - GAAP		$	5,556,375			$	5,711,688			$	6,072,573			$	5,556,375			$	6,072,573
Adjustments:
Goodwill			(4,687	)			(4,687	)			(4,687	)			(4,687	)			(4,687	)
Tangible assets		$	5,551,688			$	5,707,001			$	6,067,886			$	5,551,688			$	6,067,886
Common shares outstanding			8,733,574				8,716,662				8,713,094				8,733,574				8,713,094
Book value per common share		$	41.63			$	41.41			$	44.79			$	41.63			$	44.79
Effect of goodwill			(0.54	)			(0.54	)			(0.54	)			(0.54	)			(0.54	)
Tangible book value per common share		$	41.09			$	40.87			$	44.25			$	41.09			$	44.25
Total shareholders' equity to assets			6.54	%			6.32	%			6.43	%			6.54	%			6.43	%
Effect of goodwill			(0.08	%)			(0.08	%)			(0.08	%)			(0.08	%)			(0.08	%)
Tangible common equity to tangible assets			6.46	%			6.24	%			6.35	%			6.46	%			6.35	%
Total average equity - GAAP		$	370,247			$	374,276			$	391,870			$	372,250			$	391,952
Adjustments:
Average goodwill			(4,687	)			(4,687	)			(4,687	)			(4,687	)			(4,687	)
Average tangible common equity		$	365,560			$	369,589			$	387,183			$	367,563			$	387,265
Return on average shareholders' equity			2.56	%			2.72	%			0.20	%			2.64	%			0.58	%
Effect of goodwill			0.04	%			0.03	%			0.00	%			0.04	%			0.01	%
Return on average tangible common equity			2.60	%			2.75	%			0.20	%			2.68	%			0.59	%
Total interest income		$	76,636			$	75,810			$	80,886			$	152,446			$	157,715
Adjustments:
Fully-taxable equivalent adjustments 1			1,142				1,160				1,157				2,302				2,326
Total interest income - FTE		$	77,778			$	76,970			$	82,043			$	154,748			$	160,041
Net interest income		$	32,439			$	31,598			$	27,990			$	64,037			$	53,086
Adjustments:
Fully-taxable equivalent adjustments 1			1,142				1,160				1,157				2,302				2,326
Net interest income - FTE		$	33,581			$	32,758			$	29,147			$	66,339			$	55,412
Net interest margin			2.39	%			2.36	%			1.96	%			2.38	%			1.89	%
Effect of fully-taxable equivalent adjustments 1			0.08	%			0.09	%			0.08	%			0.08	%			0.08	%
Net interest margin - FTE			2.47	%			2.45	%			2.04	%			2.46	%			1.97	%
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												Six Months Ended
		June 30				March 31				June 30				June 30				June 30
			2026				2026				2025				2026				2025
Net income - GAAP		$	2,367			$	2,509			$	193			$	4,876			$	1,136
Adjustments:1
Provision for credit losses			13,415				16,305				13,608				29,720				25,541
Income tax benefit			(780	)			(725	)			(2,054	)			(1,505	)			(2,964	)
Pre-provision net revenue		$	15,002			$	18,089			$	11,747			$	33,091			$	23,713
Tangible common equity		$	358,860			$	356,267			$	385,552			$	358,860			$	385,552
Adjustments:
Accumulated other comprehensive loss			21,117				21,305				26,567				21,117				26,567
Adjusted tangible common equity		$	379,977			$	377,572			$	412,119			$	379,977			$	412,119
Tangible assets		$	5,551,688			$	5,707,001			$	6,067,886			$	5,551,688			$	6,067,886
Adjustments:
Cash in excess of $300 million			(110,968	)			(301,805	)			(146,361	)			(110,968	)			(146,361	)
Adjusted tangible assets		$	5,440,720			$	5,405,196			$	5,921,525			$	5,440,720			$	5,921,525
Adjusted tangible common equity		$	379,977			$	377,572			$	412,119			$	379,977			$	412,119
Adjusted tangible assets			5,440,720				5,405,196				5,921,525				5,440,720				5,921,525
Adjusted tangible common equity to adjusted tangible assets			6.98	%			6.99	%			6.96	%			6.98	%			6.96	%
Nonperforming loans to total loans			1.58	%			1.63	%			1.00	%			1.58	%			1.00	%
Adjustments:
Fully guaranteed balances			(0.51	%)			(0.41	%)			(0.22	%)			(0.51	%)			(0.22	%)
Adjusted nonperforming loans to total loans			1.07	%			1.22	%			0.78	%			1.07	%			0.78	%
Allowance for credit losses - loans to nonperforming loans			88.39	%			91.72	%			106.83	%			88.39	%			106.83	%
Adjustments:
Fully guaranteed balances			41.45	%			30.73	%			29.03	%			41.45	%			29.03	%
Adjusted allowance for credit losses - loans to nonperforming loans			129.84	%			122.45	%			135.86	%			129.84	%			135.86	%
1 Assuming a 21% tax rate

 

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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