First Internet Bancorp projects Q4 EPS of $1.02–$1.07
Fourth-quarter guidance calls for diluted earnings per share of $1.02 to $1.07 and FTE net interest margin of 2.75% to 2.80%.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
First Internet Bancorp reported third-quarter 2026 net income of $4.8 million and diluted earnings per share of $0.54. Revenue was $43.9 million, up 7% from the prior quarter; adjusted pre-provision net revenue was $17.1 million, up 14%. Net interest income was $34.7 million, up 7%, while net interest margin was 2.47%, up 8 basis points; fully-taxable equivalent (FTE) net interest margin was 2.55%. Total loans were $3.9 billion and deposits were $5.2 billion, up 1% and 7%, respectively, from the second quarter.
Net charge-offs to average loans fell to 0.82% from 1.77% in the second quarter, and delinquencies excluding nonperforming loans fell 38% to 0.48% of performing loans. Provision for credit losses was $11.6 million, down 13% from the prior quarter, and included $2.6 million of specific reserves on franchise finance loans. Interest reversals on loans placed on nonaccrual totaled $1.2 million. Adjusted noninterest income declined 30% from the prior-year adjusted figure.
For fourth-quarter 2026, management projected diluted earnings per share of $1.02 to $1.07, FTE net interest margin of 2.75% to 2.80%, and provision for credit losses of $7.5 million to $8.0 million. The FTE margin outlook assumes an additional 25-basis-point Fed Funds rate increase in December.
2 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointQuarterly revenue reached $43.9 million, up 7% from the prior quarter.
- Moderate pointNet charge-offs to average loans fell to 0.82% from 1.77% in the prior quarter.
Negative
- Moderate pointAdjusted noninterest income declined 30% from the prior-year adjusted figure.
Filing Explained
At September 30, 2026, common shares outstanding remained 8,733,574, while tangible book value per common share was $40.04, down from $41.09 at June 30.
The 8-K furnishes the company’s completed third-quarter results; nonperforming loans rose to
At
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $43.9 million
Net income: $4.8 million
Diluted earnings per share: $0.54 per share
+5 more
8 metrics
Revenue
$43.9 million
Third quarter 2026; up 7% from the prior quarter.
Net income
$4.8 million
Third quarter 2026.
Diluted earnings per share
$0.54 per share
Third quarter 2026.
Adjusted pre-provision net revenue
$17.1 million
Third quarter 2026; up 14% from the prior quarter; non-GAAP measure.
FTE net interest margin
2.55%
Third quarter 2026; up 8 basis points from the prior quarter.
Net charge-offs to average loans
0.82%
Third quarter 2026, compared with 1.77% in the second quarter.
Adjusted noninterest income
$9.2 million
Third quarter 2026; down 30% from the prior-year adjusted figure.
Fourth-quarter diluted earnings per share outlook
$1.02 to $1.07 per share
Fourth-quarter 2026 outlook.
Key Terms
fully-taxable equivalent, pre-provision net revenue, nonperforming loans, net charge-offs, +1 more
5 terms
fully-taxable equivalent financial
"fully-taxable equivalent (FTE) net interest margin"
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
"adjusted pre-provision net revenue of $17.1 million"
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.
nonperforming loans financial
"delinquencies, excluding nonperforming loans"
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.
net charge-offs financial
"Net charge-offs to average loans of 0.82%"
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.
off-balance sheet financial
"fintech deposits held off-balance sheet in a deposit network"
Off-balance sheet describes assets, liabilities or financial commitments a company keeps out of its main financial statement, often through separate contracts or entities. Think of it like a household keeping a rental agreement or a long-term promise in a drawer rather than listing it on the monthly budget; investors care because these hidden items can change a company’s true debt, future cash needs and risk profile, altering valuation and lending decisions.
Earnings Snapshot
Revenue: $43.9 million · Guidance included
Third quarter ended September 30, 2026
Revenue
$43.9 million
Up 7% quarter over quarter.
Net interest income
$34.7 million
Up 7% quarter over quarter.
Net interest margin
2.47%
Up 8 basis points from the prior quarter.
FTE net interest margin
2.55%
Up 8 basis points from the prior quarter.
Provision for credit losses
$11.6 million
Down 13% from the second quarter of 2026.
Net charge-offs to average loans
0.82%
Compared with 1.77% in the second quarter of 2026.
Guidance
Fourth-quarter 2026: diluted earnings per share of $1.02 to $1.07; FTE net interest margin of 2.75% to 2.80%; FTE net interest income around $38.5 million; noninterest income around $7.5 million; noninterest expense around $26.5 million; provision for credit losses of $7.5 million to $8.0 million. The FTE net interest margin outlook assumes an additional 25-basis-point Fed Funds rate increase in December.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did INBK report for third-quarter 2026 revenue and earnings?
First Internet Bancorp reported $43.9 million in revenue, up 7% from the prior quarter, net income of $4.8 million, and diluted earnings per share of $0.54.
What is INBK's fourth-quarter 2026 outlook?
Management projected diluted earnings per share of $1.02 to $1.07 and FTE net interest margin of 2.75% to 2.80%. It also projected FTE net interest income of around $38.5 million, noninterest income of around $7.5 million, noninterest expense of around $26.5 million, and provision for credit losses of $7.5 million to $8.0 million. The FTE margin outlook assumes an additional 25-basis-point Fed Funds rate increase in December.
How much of INBK's fintech deposits was held off balance sheet?
The company reported approximately $2.9 billion of fintech deposits held off balance sheet in a deposit network.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): October 29, 2026
| (Exact Name of Registrant as Specified in Its Charter) | ||||||||||||||
| (State or Other Jurisdiction of Incorporation) | ||||||||||||||
| (Commission File Number) | (IRS Employer Identification No.) | |||||||||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||||||||
( | ||||||||||||||
| (Registrant's Telephone Number, Including Area Code) | ||||||||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbols | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition
On October 29, 2026, First Internet Bancorp (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated by reference herein.
On October 29, 2026 at 5:00 p.m. (Eastern Time), the Company will host a conference call and webcast to discuss its financial results for the quarter ended September 30, 2026. The electronic presentation slides, which will accompany the call and webcast, are furnished as Exhibit 99.2 and are incorporated by reference herein.
The information contained in this Item 2.02, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any filing made by us under the Exchange Act or Securities Act of 1933, as amended, regardless of any general incorporation language in any such filing, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Number | Description | Method of filing | ||||||||||||
99.1 | Press release dated October 29, 2026 | Furnished electronically | ||||||||||||
99.2 | Presentation slides dated October 29, 2026 | Furnished electronically | ||||||||||||
| 104 | Cover Page Interactive Data File (embedded in the cover page formatted in inline XBRL) | |||||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Dated: | October 29, 2026 | |||||||||||||
| FIRST INTERNET BANCORP | ||||||||||||||
| By: | /s/ Kenneth J. Lovik | |||||||||||||
| Kenneth J. Lovik, Executive Vice President & Chief Financial Officer | ||||||||||||||
First Internet Bancorp Reports Record Quarterly Revenue and
Continued Net Interest Margin Expansion
- 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, Indiana, October 29, 2026 – 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.
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."
“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
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."
•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.”
| Contact Information: | |||||||||||
| Investors/Analysts | |||||||||||
| Paula Deemer | |||||||||||
| Director of Corporate Administration | |||||||||||
| (317) 428-4628 | |||||||||||
| investors@firstib.com | |||||||||||
| Media | |||||||||||
| PANBlast | |||||||||||
| Zach Weismiller | |||||||||||
| firstib@panblastpr.com | |||||||||||
| First Internet Bancorp | ||||||||||||||||||||||||||||||||
| Summary Financial Information (unaudited) | ||||||||||||||||||||||||||||||||
| Dollar amounts in thousands, except per share data | ||||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 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, 2026 | June 30, 2026 | September 30, 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, 2026 | June 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 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 Balance | Interest / Dividends | Yield / Cost | Average Balance | Interest / Dividends | Yield / Cost | Average Balance | Interest / Dividends | Yield / 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 | % | — | — | — | % | |||||||||||||||||||||||||||||||||||||||||
| 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 Balance | Interest / Dividends | Yield / Cost | Average Balance | Interest / Dividends | Yield / 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 | % | — | — | — | % | |||||||||||||||||||||||||||
| 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 | % | — | — | % | |||||||||||||||||||||||||||||
| 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, 2026 | June 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 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 | % | ||||||||||||||||||||||
1Assuming 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, 2026 | June 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 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-provision net revenue (loss) | $ | 16,684 | $ | 15,002 | $ | (19,754) | $ | 49,775 | $ | 3,959 | ||||||||||||||||||||||
| Pre-tax, pre-provision income (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-provision net revenue | $ | 17,055 | $ | 15,002 | $ | 18,069 | $ | 50,146 | $ | 41,782 | ||||||||||||||||||||||
| Noninterest (loss) income - 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) | ||||||||||||||||||||||
| Diluted average common shares outstanding | 8,865,954 | 8,822,099 | 8,742,052 | 8,821,890 | 8,730,519 | |||||||||||||||||||||||||||
| Diluted earnings (loss) per share - 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) | ||||||||||||||||||||||
1Assuming 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, 2026 | June 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | ||||||||||||||||||||||||||||
| 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 | % | ||||||||||||||||||||||
October 2026 Investor Presentation NASDAQ: INBK Exhibit 99.2
2 Forward-Looking Statements & Non-GAAP Financial Measures This presentation 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 “believe,” “continue,” “could,” “decline,” “drive,” “enhance,” “estimate,” “expanding,” “expect,” “grow,” “growth,” “improve,” “increase,” “looking ahead,” “may,” “pending,” “plan,” “position,” “preliminary,” “remain,” “rising,” “should,” “slow,” “stable,” “strategy,” “well-positioned,” 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 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 any key members of senior management; the 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 presentation, 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. This presentation 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, 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 noninterest expense to average assets, adjusted efficiency ratio, adjusted income (loss) before income taxes, adjusted income tax (benefit) provision, adjusted net income (loss), 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 presentation under the caption “Reconciliation of Non-GAAP Financial Measures.”
3 First Internet Bancorp At-A-Glance • Digital Banking Pioneer - First state-chartered, FDIC-insured institution to operate entirely online, reimagining traditional banking over 25 years ago • Business Model Innovation - Highly scalable branchless banking model with a proven history of dynamic innovation and strong growth • Diversified Revenue Streams - Commercial banking, SBA lending, consumer lending, and BaaS partnerships • Multiple Lending Channels – Scalable origination platforms across lending businesses support sustainable growth • Banking-as-a-Service (BaaS) – Offers platform capabilities enabling fintech partnerships and collaborations • Regulatory Expertise - Deep compliance and risk management capabilities $5.9B TOTAL ASSETS 16%1 TTM ADJ. REVENUE GROWTH $170M1 ADJ. REVENUE TTM $3.9B TOTAL LOANS $5.2B TOTAL DEPOSITS $350M TANGIBLE EQUITY As of 9/30/26 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix
4 Our Founding Thesis • Founded in 1999, based on a revolutionary idea that challenged the entire banking industry - create America's first state-chartered, FDIC-insured institution to operate entirely online • 25+ Year Legacy: From kitchen table startup to industry transformer, maintaining the same entrepreneurial spirit that empowers customers to "bank on their own ideas" • Core Guiding Principles: Personal Connections: Despite being digital- first, we believe in the power of personal relationships built on trust and understanding Customer-Centric: Taking time to know each customer and provide tailored solutions for every financial need Innovation-Driven: Staying true to our roots as trailblazers who transformed an entire industry "Like most start-ups, our early days were challenging. But we built our success — and transformed the banking industry — by staying true to our roots as innovators and trailblazers. Today, we bring the same passion and creativity to every interaction you have with First Internet Bank — we want to empower you to bank on your own ideas.” CHAIRMAN AND CEO DAVID B. BECKER:
5 Our Business Model Branchless model attracts a nationwide deposit base with low acquisition costs, supplemented by BaaS partnerships – deployed into scalable specialty lending channels
6 Multiple Asset Generation Channels $ in millions As of 09/30/26 Core Lending Areas Construction & Investor CRE $ 1,154 Small Business Lending 439 C&I / Emerging Verticals 288 Public Finance 430 Single Tenant Lease Financing 309 Consumer Lending 446 Exited Lines Franchise Finance 331 Residential Mortgage 336 Healthcare Finance 112 Net Deferred Loan Fees, Premiums, Discounts and Other 19 $3,864 Strategic Focus • Specialized areas of lending • Scalable, nationwide platforms with growth potential • Optimize the mix of interest-earning assets • AI and tech to facilitate scalability and manage credit risk • Maximize risk-adjusted returns Emerging Verticals • Wealth advisory lending $104 • Equipment finance 34 • Fintech lending / embedded finance 21
7 Digital Banking & Fintech Partnerships Drive Growth Digital Banking • $2.3B in digital deposits • Consumer and SMB deposits sourced nationally • Do More Business Checking includes Cash Flow Analysis, payments through Zelle and Balance Optimizer • Do More Business Checking is a 3-time recipient of the Best in Biz Silver Winner award for Small or Medium Business Product of the Year BaaS / Fintech • Program sponsorship: deposits, payments, cards/BIN and lending • Empowers partners to move funds quickly at scale over multiple payments rails – ACH, FedNow, RTP Network • Origination of embedded finance / SMB credit products • 2025 co-recipient of the award for Payments Innovation of the Year from American Banker for our work with Increase to deliver High- fidelity ACH $4.7B Total Fintech Deposits $2.9B Held Off-Balance Sheet 199% Increase in Fintech Deposits over 3Q25 $303B Fintech Payments Volume TTM 198% Increase in Fintech Payments Volume over TTM ended 9/30/25
8 Key Investment Highlights • Digital Banking - America's first online bank with a 25+ year branchless model delivering superior cost structure and geographic reach • Technology Moat & Fintech Edge - Quarter-century digital head start creates competitive barriers and compelling partnership platform • Balance Sheet Restructuring - Accelerated optimization of the asset mix to drive increased earnings and improve interest rate risk • Disciplined credit underwriting – Historically strong credit quality through prudent underwriting and proactive portfolio management • Strong Financial Momentum - Continuous growth in net interest income with expanding net interest margin and strong loan originations • Pathway to Improved Profitability - Revenue growth is driving increased pre-provision, net revenue and positive operating leverage • BaaS-Powered Balance Sheet - Fintech partnerships fuel robust deposit growth creating strong liquidity and expansion capacity • Compelling Deep Value - Trading at significant discount to peers and tangible book value despite superior growth model Founder-led organization focused on building long-term shareholder value, with an attractive value-oriented entry point
9 Experienced Leadership • Founder of the first state-chartered, FDIC-insured bank to operate entirely online 25+ years ago • 40-year career in fintech/SaaS with 5 successful Inc. 500 company exits • Founding Board Chair of TechPoint and active in multiple Indiana economic development and education initiatives • Ernst & Young Entrepreneur of the Year (2001), Indiana Banking Excellence Award (2021), and Mickey Maurer Entrepreneur of the Year (2025) • Appointed president in July 2021 • 25 years with the Company in various leadership roles, including COO • Fintech background prior to joining INBK • Active on advisory boards for Indianapolis Neighborhood Housing Partnership and Hamilton County Community Foundation • Brings 30+ years of financial services experience • Banking Industry Veteran - Previously SVP of Investor Relations & Corporate Development at First Financial Bancorp (publicly traded bank holding company) • Former investment banker specializing in financial services sector • Began career at Price Waterhouse LLP DAVID B. BECKER Chairman and CEO NICOLE S. LORCH President, COO and Corporate Secretary KENNETH J. LOVIK EVP & CFO
Financial Review
11 Third Quarter 2026 Highlights Earnings • Net income of $4.8 million and adjusted net income of $5.1 million1, both up significantly over 2Q26 and 3Q25 • Diluted EPS of $0.54 and adjusted diluted EPS of $0.571, both up significantly over 2Q26 and 3Q25 • Pre-tax non-recurring severance costs of $0.4 million recognized in 3Q26 NII and NIM • Net interest income of $34.7 million and FTE NII of $35.9 million1,2, both up 7% over 2Q26 and 14% over 3Q25 • Net interest margin of 2.47% and FTE NIM of 2.55%1,2, both up 8 bps over 2Q26 and 43 bps from 3Q25 Revenue and PPNR • Adjusted total revenue of $43.9 million, up 7% over 2Q26 and 1% over 3Q25 • Adjusted pre-provision net revenue of $17.1 million1, up 14% from 2Q26 and down 6% over 3Q25 Loans • Total loan balances of $3.9 billion, up 1% from 2Q26 and 6% from 3Q25 • Weighted average yield on new loans funded in 3Q26 was 7.51% • SBA GOS revenue of $4.8 million; sold $62.3 million of 7(a) guaranteed balances Credit • Provision for credit losses of $11.6 million, down 13% from 2Q26 • Net charge-offs / average loans of 0.82%, down from 1.77% in 2Q26 • NPLs / total loans of 1.63%, or 1.14%1 excluding fully-guaranteed balances Capital • TCE / TA of 5.94%1, CET1 of 8.86%3, total capital of 12.32%3 • Excluding AOCI and adjusting for normalized cash balances, adjusted TCE / TA of 6.96%1 • Tangible book value per share of $40.041, down from 2Q26 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix 2 On a fully-taxable equivalent (“FTE”) assuming a 21% tax rate 3 Regulatory capital ratios are preliminary pending filing of the Company’s regulatory reports
12 Adjusted Total Revenue1 and Pre-Provision, Net Revenue1 $43.5 $42.1 $43.1 $41.1 $43.9 $18.1 $17.9 $18.1 $15.0 $17.1 3Q25 4Q25 1Q26 2Q26 3Q26 Adjusted Total Revenue Adjusted Pre-Provision, Net Revenue Adjusted Efficiency Ratio1 58.5% 57.5% 58.0% 63.5% 61.2% 14% Increase in Adjusted PPNR vs. 2Q26 7% Increase in Adjusted Total Revenue vs. 2Q26 $ in millions 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix
13 Loan Portfolio Overview $3,499 $3,840 $4,171 $3,747 $3,864 $22 $22 $55 $109 $35 $3,521 $3,862 $4,226 $3,856 $3,899 4.47% 5.22% 5.85% 6.15% 6.37% 2022 2023 2024 2025 3Q26 Total Loan Portfolio and Average Yield Total Loans HFI Total Loans HFS Average Yield 6% 30% 8% 11% 3% 11% 9% 8% 12% 0% Portfolio Composition Commercial & Industrial Construction & Investor CRE Single Tenant Lease Financing Public Finance Healthcare Finance Small Business Lending Franchise Finance Residential Loans Other Consumer Loans Net Deferred Loan Fees, Premiums, Discounts & Others YoY Growth in Loans HFI 21% 10% 9% -10% 6% $ in millions Note: Yields for 2022 – 2025 represent annual portfolio yields; 3Q26 yield represents year-to-date yield.
14 Diversified Deposit Base $3,441 $4,067 $4,933 $4,840 $5,153 1.38% 3.83% 4.24% 3.87% 3.38% 2022 2023 2024 2025 3Q26 Total Deposits and Cost of IBDs Total Deposits Cost of IBDs $ in millions 31% 17% 35% 8% 4% 4% Portfolio Composition Consumer Small Business Fintech Commercial Public Funds Brokered YoY Growth 8% 18% 21% -2% 5% Note: Cost of IBDs for 2022 – 2025 represent annual COFs; 3Q26 cost represents year- to-date COFs.
15 $31.5 $31.5 $32.8 $33.6 $35.9 2.12% 2.30% 2.45% 2.47% 2.55% 3Q25 4Q25 1Q26 2Q26 3Q26 Fully-Taxable-Equivalent Net Interest Income (“FTE NII”)1 and Net Interest Margin (“FTE NIM”)1 FTE NII FTE NIM 3.87% 3.68% 3.45% 3.38% 3.32% 6.18% 6.39% 6.36% 6.34% 6.42% 3Q25 4Q25 1Q26 2Q26 3Q26 Loan Yield and Cost of IBDs Cost of IBDs Loan Yield 2Q26 Deposits Securities Cash Other 3Q26 Net Interest Income and Net Interest Margin 2.47% -2 bps+3 bps +3 bps 2.55%+4 bps FTE NIM1 Bridge $ in millions 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix
16 Noninterest Income Trends 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix Key Highlights • SBA 7(a) loan sale volume up 11% from 2Q26 • SBA gain on sale gross premiums consistent with prior quarters • Fintech fee revenue continues to grow; TTM 3Q26 revenue up 191% over linked period Guaranteed Loans Sold $142.5 $110.3 $89.4 $56.3 $62.3 Reported Noninterest Income ($24.6) $11.4 $11.5 $8.7 $9.2 Loss on Sale of STL loans ($37.8) ($0.4) - - - $10.6 $8.6 $7.3 $4.7 $4.8 $0.7 $0.9 $1.8 $1.3 $1.9 $0.9 $1.1 $1.5 $1.9 $2.1 $1.1 $1.2 $0.9 $0.8 $0.4 $13.2 $11.8 $11.5 $8.7 $9.2 108% 108% 108% 108% 108% 3Q25 4Q25 1Q26 2Q26 3Q26 Adjusted Noninterest Income1 SBA gain on sale Net servicing revenue Fintech Other $ in millions
17 Noninterest Expense Trends $26.9 $0.4 $25.5 $24.2 $25.0 $26.1 $27.3 1.66% 1.71% 1.80% 1.85% 1.84% 3Q25 4Q25 1Q26 2Q26 3Q26 Noninterest Expense Noninterest Expense Nonrecurring Expense Adjusted NIE to Average Assets $ in millions Key Highlights • Increase in expenses from 2Q26 due primarily to higher compensation and employee benefits expense • Pre-tax non-recurring severance costs of $0.4 million recognized in 3Q26 • Low NIE / average assets highlights efficient business model • The Company expects to continue investing in tech and AI to further enhance the customer experience, automate workflows and strengthen risk management % of Noninterest Expense Personnel 56% 52% 53% 52% 54% Non-Personnel 44% 48% 47% 48% 46% 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix 1
18 Credit Quality Overview $59.9 $55.7 $56.5 $53.1 $57.1 1.65% 1.49% 1.50% 1.39% 1.48% 3Q25 4Q25 1Q26 2Q26 3Q26 Allowance for Credit Losses ACL ACL/Total loans$ in millions $21.0 $16.0 $15.8 $16.9 $8.0 1.89% 1.68% 1.65% 1.77% 0.82% 3Q25 4Q25 1Q26 2Q26 3Q26 Net Charge-offs NCOs NCOs/Average Loans $ in millions $34.8 $12.0 $16.3 $13.4 $11.6 3Q25 4Q25 1Q26 2Q26 3Q26 Provision for Credit Losses $ in millions $ in millions $44.7 $47.7 $48.2 $45.4 $48.3 $10.5 $13.6 $15.5 $19.2 $19.2 $55.2 $61.3 $63.7 $64.6 $67.5 0.98% 1.10% 1.12% 1.16% 1.15% 0.79% 0.86% 0.84% 0.82% 0.82% 3Q25 4Q25 1Q26 2Q26 3Q26 Nonperforming Assets Govt. Guaranteed NPAs NPAs ex. Govt. Guaranteed NPAs / Total Assets NPAs ex. Govt. Guaranteed / Total Assets
19 Positive Credit Trends $15.2 $7.4 $9.1 $4.8 $3.7 3Q25 4Q25 1Q26 2Q26 3Q26 Small Business Lending Net Charge-offs $ in millions • Net charge-offs down 53% from 2Q26, driven by declines in franchise finance and small business lending • Total delinquencies 30D+PD down 38% from 2Q26, driven by substantial decline in franchise finance • Increase in nonaccrual loans driven by actions taken on certain franchise finance loans, including a large relationship late in the quarter • Small business lending ACL to unguaranteed balances of 7.37%; franchise finance ACL to total portfolio of 4.80% $26.2 $15.7 $6.7 $11.8 $8.7 $15.0 $7.9 $5.7 $2.2 $8.7 $14.5 $0.7 $37.1 $39.4 $29.1 $18.2 1.01% 1.06% 0.78% 0.48% 4Q25 1Q26 2Q26 3Q26 Delinquencies 30 - 59 Days 60 - 89 Days 90+ Days Total DQs / Total Loans $ in millions $41.8 $42.7 $37.4 $26.4 $43.2 $0.9 $2.2 $8.7 $14.5 $0.7 $10.6 $13.6 $15.5 $19.2 $19.2 $53.3 $58.5 $61.6 $60.1 $63.1 1.47% 1.56% 1.63% 1.58% 1.63% 1.18% 1.20% 1.22% 1.07% 1.14% 3Q25 4Q25 1Q26 2Q26 3Q26 Nonperforming Loans Govt. Guaranteed NPLs 90DPD & Accruing Nonaccrual Loans ex. Govt. Guaranteed NPLs / Total Loans NPLs ex. Govt. Guaranteed / Total Loans $ in millions
20 Capital and Sources of Liquidity $33.29 $38.51 $39.74 $41.43 $43.77 $40.87 $40.04 2020 2021 2022 2023 2024 2025 3Q26 Tangible Book Value Per Share1 Capital Ratios as of September 30, 20262 Company Bank Total Shareholder’s equity to Assets 6.02% 7.31% Tangible Common equity to Tangible Assets 5.94% 7.24% Tier 1 Leverage 6.15% 7.51% Common Equity Tier 1 8.86% 10.84% Tier 1 Capital 8.86% 10.84% Total Capital 12.32% 12.09% $652 $2,867 $958 $653 $20 $18 Liquidity Sources $ in millions Cash & Equivalents Off-Balance Sheet Deposits Fed Discount Window FHLB Borrowing Capacity Unpledged Securities Unsecured Funding $5,169 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix 2 Regulatory capital ratios are preliminary pending filing of the Company’s and the Bank’s regulatory reports
21 Fourth Quarter 2026 Outlook EPS • Diluted earnings per share of $1.02 to $1.07 NII and NIM • 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 • Noninterest income of around $7.5 million, reflecting lower small business originations and gain on sale activity, offset by continued growth in fintech revenue Noninterest Expense • Noninterest expense of around $26.5 million Credit • Provision for credit losses of $7.5 million to $8.0 million
Appendix
23 Construction and Investor Commercial Real Estate 46% 13% 10% 7% 6% 18% Portfolio Mix by State IN AZ OH MI CO Other 65% 33% 2% Portfolio by Loan Type Investor Commercial Real Estate Commercial Construction/ Development Residential Construction/ Development 40% 18% 17% 9% 16% Portfolio Mix by Major Industry Multifamily/Mixed Use Industrial Warehouse Hospitality Senior Living Other • $1.2 billion of combined balances as of September 30, 2026 • Average current loan balance of $14.8 million for investor CRE • Minimal office exposure; 1.4% of combined balances consisting of suburban and medical office • Unfunded commitments of $349 million • Average commitment size for commercial construction / development of $21 million
24 Small Business Lending 24% 20% 15% 10% 31% Portfolio Mix by Major Industry Services Construction Retail Trade Manufacturing Other $439 $1,217 $35 Managed SBA 7(a) Loans Dollar in millions Retained Balance Servicing Portfolio Held for Sale $1,691 19% 13% 9% 8%6% 45% Portfolio Mix by State FL TX CA MI CO Other • $439 million of retained balances as of September 30, 2026 • Nationwide platform providing growth capital to entrepreneurs and small business owners • Diversified by industry and geography • Average retained balance of $324,000
25 C&I and Owner-Occupied Commercial Real Estate • $288 million of combined balances as of September 30, 2026 • Current C&I LOC Utilization of 45% • Minimal office exposure; 0.4% of combined loan balances consisting of suburban office • Average loan sizes C&I: $610,000 Owner Occupied CRE: $879,000 Wealth Advisory: $1.1 million Embedded Finance: $8,000 36% 25% 18% 14% 7% Portfolio by Loan Type Wealth Advisory Loans C&I - Term Loans Owner Occupied CRE C&I - Lines of Credit Embedded Finance 27% 11% 8% 7%5% 42% Portfolio Mix by State IN CA AZ IL TX Other 52% 7% 6% 4% 4% 26% Portfolio Mix by Major Industry Services Construction Manufacturing Real Estate and Rental and Leasing Health Care and Social Assistance Other
26 Public Finance • $430 million of balances as of September 30, 2026 • Provides a range of credit solutions for government and not-for-profit entities • Borrower’s needs include short-term financing, debt refinancing, infrastructure improvements, economic development and equipment financing • No delinquencies or losses since inception 30% 13% 12% 9% 7% 29% Portfolio Mix by Repayment Source General Obligation Essential Use Equipment Loans Lease Rental Revenue Water & Sewer Revenue Private Higher Education Other 32% 27% 2% 1% 38% Borrower Mix by Credit Rating A AA AAA BBB Non-Rated 64%6% 5% 4% 4% 17% Portfolio Mix by State IN OH OK MO IA Other
27 Single Tenant Lease Financing • $309 million of balances as of September 30, 2026 • Long-term financing of single tenant properties occupied by historically strong national and regional tenants • Weighted-average portfolio LTV of 55% • Average loan size of $1.8 million • Strong historical credit performance • Completed sale of $850 million of loans to Blackstone in 2025 45% 10% 7% 6% 5% 27% Portfolio Mix by Major Vertical Auto-Related Stores Quick Serve Restaurants Convenience Stores/Filling Stations Full Service Restaurants Medical Other 5% 5% 5% 5% 4% 76% Portfolio Mix by Major Tenant Cobblestone Auto Spa Main Street Auto Whistle Express Car Wash 7-Eleven Dollar General Other 18% 14% 8% 5%4% 51% Portfolio Mix by State FL TX NC GA AR Other
28 Specialty Consumer • $445 million of combined balances as of September 30, 2026 • Direct-to-consumer and nationwide dealer network originations • Strong historical credit performance • Focused on high quality borrowers • Average credit score at origination of 778 • Average loan size of $29,000 57% 33% 10% Portfolio by Loan Type Trailers Recreational Vehicles Other Consumer 14% 10% 6% 4% 4% 62% Portfolio Mix by State TX CA FL NC AZ Other 35% 49% 13% 3% Portfolio Mix by Credit Score at Origination 800-850 740-799 700-739 670-699
29 Franchise Finance • $331 million of balances as of September 30, 2026 • Provided growth financing to franchisees in a variety of industry segments • Diversified by industry, geography and brand • Average loan size of $633,000 19% 16% 14%14% 37% Portfolio by Borrower Use Limited-Service Restaurants Beauty Salons Snacks and Nonalcoholic Beverages Indoor Recreation Other 12% 10% 7% 5% 5% 61% Portfolio Mix by State CA TX FL GA MI Other 8% 7% 7% 6% 5%67% Portfolio Mix by Brand My Salon Suite Scooter's Coffee Urban Air Adventure Park Goldfish Swim School Restore Hyper Wellness Other
30 Residential Mortgage • $336 million of combined balances as of September 30, 2026 • Historically direct-to-consumer originations centrally located at corporate headquarters • Strong historical credit performance • Focused on high quality borrowers • Average loan size of $196,000 • Average credit score at origination of 741 • Average LTV at origination of 80% 95% 3% 1% 1% Portfolio by Loan Type Single Family Residential Home Equity – LOC Home Equity – Closed End SFR Construction to Permanent 74% 12% 2% 2% 1% 9% Portfolio Mix by State IN CA NY FL TX Other 75% 15% 4%4% 2% Portfolio Mix by Region Midwest West Coast Northeast/Mid-Atl. Southeast Southwest
31 Healthcare Finance • $112 million of balances as of September 30, 2026 • Borrower’s needs include practice finance or acquisition, acquiring or refinancing owner- occupied commercial real estate, equipment purchases and project loans • Strong historical credit performance to date • Average loan size of $309,000 71% 24% 5% Portfolio by Loan Type Practice Refi or Acquisition Owner Occupied CRE Project 31% 12% 5%5%4% 43% Portfolio Mix by State CA TX FL NY AZ Other 86% 10% 4% Portfolio Mix by Borrower Dentists Veterinarians Other
Dollars in thousands, except share and per share data 2021 2022 2023 2024 2025 3Q26 Total equity - GAAP $380,338 $364,974 $362,795 $384,063 $359,767 $354,408 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) Tangible common equity $375,651 $360,287 $358,108 $379,376 $355,080 $349,721 Common shares outstanding 9,754,455 9,065,883 8,644,451 8,667,894 8,686,994 8,733,574 Book value per common share $38.99 $40.26 $41.97 $44.31 $41.41 $40.58 Effect of goodwill (0.48) (0.52) (0.54) (0.54) (0.54) (0.54) Tangible book value per common share $38.51 $39.74 $41.43 $43.77 $40.87 $40.04 32 Reconciliation of Non-GAAP Financial Measures
Dollars in thousands, except share and per share data 3Q25 4Q25 1Q26 2Q26 3Q26 Total equity - GAAP $352,168 $359,767 $360,954 $363,547 $354,408 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) Tangible common equity $347,481 $355,080 $356,267 $358,860 $349,721 Total assets - GAAP $5,639,174 $5,571,647 $5,711,688 $5,556,375 $5,888,003 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) Tangible assets $5,634,487 $5,566,960 $5,707,001 $5,551,688 $5,883,316 Common shares outstanding 8,713,094 8,686,994 8,716,662 8,733,574 8,733,574 Book value per common share $40.42 $41.41 $41.41 $41.63 $40.58 Effect of goodwill (0.54) (0.54) (0.54) (0.54) (0.54) Tangible book value per common share $39.88 $40.87 $40.87 $41.09 $40.04 Total shareholders' equity to assets 6.25% 6.46% 6.32% 6.54% 6.02% Effect of goodwill (0.08%) (0.08%) (0.08%) (0.08%) (0.08%) Tangible common equity to tangible assets 6.17% 6.38% 6.24% 6.46% 5.94% 33 Reconciliation of Non-GAAP Financial Measures
Dollars in thousands 3Q25 4Q25 1Q26 2Q26 3Q26 Total interest income $84,388 $78,054 $75,810 $76,636 $80,031 Adjustments: Fully-taxable equivalent adjustments 1 1,158 1,161 1,160 1,142 1,116 Total interest income - FTE $85,546 $79,215 $76,970 $77,778 $81,147 Net interest income $30,352 $30,322 $31,598 $32,439 $34,742 Adjustments: Fully-taxable equivalent adjustments 1 1,158 1,161 1,160 1,142 1,116 Net interest income - FTE $31,510 $31,483 $32,758 $33,581 $35,858 Net interest margin 2.04% 2.22% 2.36% 2.39% 2.47% Adjustments: Effect of fully-taxable equivalent adjustments 1 0.08% 0.08% 0.09% 0.08% 0.08% Net interest margin - FTE 2.12% 2.30% 2.45% 2.47% 2.55% Total revenue - GAAP $5,705 $41,697 $43,116 $41,124 $43,941 Adjustments: Loss on sale of loans 37,823 411 - - - Adjusted total revenue $43,528 $42,108 $43,116 $41,124 $43,941 Net income - GAAP ($41,593) $5,289 $2,509 $2,367 $4,819 Adjustments:1 Provision for credit losses 34,789 11,984 16,305 13,415 11,629 Income tax (benefit) provision (12,950) 213 (725) (780) 236 Pre-provision net revenue (loss) ($19,754) $17,486 $18,089 $15,002 $16,684 34 Reconciliation of Non-GAAP Financial Measures 1 Assuming a 21% tax rate
Dollars in thousands 3Q25 4Q25 1Q26 2Q26 3Q26 Pre-provision net revenue (loss) ($19,754) $17,486 $18,089 $15,002 $16,684 Adjustments: Loss on sale of loans 37,823 411 - - - Employee severance expense - - - - 371 Adjusted pre-provision net revenue $18,069 $17,897 $18,089 $15,002 $17,055 Noninterest income (loss) - GAAP ($24,647) $11,375 $11,518 $8,685 $9,199 Adjustments: Loss on sale of loans 37,823 411 - - - Adjusted noninterest income $13,176 $11,786 $11,518 $8,685 $9,199 Noninterest expense $25,459 $24,211 $25,027 $26,122 $27,257 Adjustments: Employee severance expense - - - - (371) Adjusted noninterest expense $25,459 $24,211 $25,027 $26,122 $26,886 Noninterest expense to average assets 1.66% 1.71% 1.80% 1.85% 1.87% Effect of employee severance expense 0.00% 0.00% 0.00% 0.00% (0.03%) Adjusted noninterest expense to average assets 1.66% 1.71% 1.80% 1.85% 1.84% Adjusted efficiency ratio Adjustments: Adjusted noninterest expense $25,459 $24,211 $25,027 $26,122 $26,886 Adjusted total revenue 43,528 42,108 43,116 41,124 43,941 Adjusted efficiency ratio (Adjusted noninterest expense/adjusted total revenue) 58.5% 57.5% 58.0% 63.5% 61.2% Income (loss) before income taxes - GAAP ($54,543) $5,502 $1,784 $1,587 $5,055 Adjustments: Loss on sale of loans 37,823 411 - - - Employee severance expense - - - - 371 Adjusted income (loss) before income taxes ($16,720) $5,913 $1,784 $1,587 $5,426 35 Reconciliation of Non-GAAP Financial Measures 1 Assuming a 21% tax rate
Dollars in thousands 3Q25 4Q25 1Q26 2Q26 3Q26 Income tax (benefit) provision - GAAP ($12,950) $213 ($725) ($780) $236 Adjustments:1 Loss on sale of loans 8,699 86 - - - Employee severance expense - - - - 78 Adjusted income tax (benefit) provision ($4,251) $299 ($725) ($780) $314 Net income (loss) - GAAP ($41,593) $5,289 $2,509 $2,367 $4,819 Adjustments: Loss on sale of loans 29,124 325 - - - Employee severance expense - - - - 293 Adjusted net income (loss) ($12,469) $5,614 $2,509 $2,367 $5,112 Diluted average common shares outstanding 8,742,052 8,769,456 8,774,111 8,822,099 8,865,954 Diluted earnings per share - GAAP ($4.76) $0.60 $0.29 $0.27 $0.54 Adjustments: Effect of loss on sale of loans 3.33 0.04 - - - Effect of employee severance expense - - - - 0.03 Adjusted diluted earnings per share ($1.43) $0.64 $0.29 $0.27 $0.57 Return on average assets (2.71%) 0.37% 0.18% 0.17% 0.33% Effect of loss on sale of loans 1.90% 0.02% 0.00% 0.00% 0.00% Effect of employee severance expense 0.00% 0.00% 0.00% 0.00% 0.02% Adjusted return on average assets (0.81%) 0.39% 0.18% 0.17% 0.35% Return on average shareholders' equity (42.11%) 5.79% 2.72% 2.56% 5.19% Effect of loss on sale of loans 29.48% 0.36% 0.00% 0.00% 0.00% Effect of employee severance expense 0.00% 0.00% 0.00% 0.00% 0.32% Adjusted return on average shareholders' equity (12.63%) 6.15% 2.72% 2.56% 5.51% Return on average tangible common equity (42.62%) 5.87% 2.75% 2.60% 5.26% Effect of loss on sale of loans 29.84% 0.36% 0.00% 0.00% 0.00% Effect of employee severance expense 0.00% 0.00% 0.00% 0.00% 0.32% Adjusted return on average tangible common equity (12.78%) 6.23% 2.75% 2.60% 5.58% 36 Reconciliation of Non-GAAP Financial Measures 1 Assuming a 21% tax rate
Dollars in thousands TTM 3Q25 TTM 3Q26 $ Variance % Variance Total Revenue - GAAP $114,262 $169,878 $55,616 49% Adjustments: Gain on prepayment of FHLB advance (1,829) - 1,829 Gain on termination of swaps (2,904) - 2,904 Loss on sale of loans 37,823 411 (37,412) Adjusted total revenue $147,352 $170,289 $22,937 16% Dollars in thousands 3Q26 Tangible common equity $349,721 Adjustments: Accumulated other comprehensive loss 35,056 Adjusted tangible common equity $384,777 Tangible assets $5,883,316 Adjustments: Cash in excess of $300 million (352,274) Adjusted tangible assets $5,531,042 Adjusted tangible common equity $384,777 Adjusted tangible assets $5,531,042 Adjusted tangible common equity to adjusted tangible assets 6.96% 37 Reconciliation of Non-GAAP Financial Measures
3Q25 4Q25 1Q26 2Q26 3Q26 Nonperforming loans to total loans 1.47% 1.56% 1.63% 1.58% 1.63% Adjustments: Fully-guaranteed balances (0.29%) (0.36%) (0.41%) (0.51%) (0.49%) Adjusted nonperforming loans to total loans 1.18% 1.20% 1.22% 1.07% 1.14% Allowance for credit losses - loans to nonperforming loans 112.53% 95.13% 91.72% 88.39% 90.97% Adjustments: Fully-guaranteed balances 27.83% 28.84% 30.73% 41.45% 39.79% Adjusted allowance for credit losses - loans to nonperforming loans 140.36% 123.97% 122.45% 129.84% 130.76% 38 Reconciliation of Non-GAAP Financial Measures