First Internet Bancorp Reports Fourth Quarter and Full Year 2025 Results

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

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

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

Key Business Updates

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

Fourth Quarter 2025 Financial Performance

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

¹ This information represents a non-GAAP financial measure. For a discussion of non-GAAP financial measures, see the section below entitled "Non-GAAP Financial Measures."

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

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

Full Year 2026 Outlook

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

Conference Call and Webcast

The Company will host a conference call and webcast at 5:00 p.m. Eastern Time today, January 29, 2026, to discuss its quarterly financial results. The call can be accessed via telephone at [phone]; access code: 39388. A recorded replay can be accessed through February 5, 2026, by dialing [phone]; access code: 39388 #.

Additionally, interested parties can listen to a live webcast of the call on the Company's website at www.firstinternetbancorp.com. An archived version of the webcast will be available in the same location shortly after the live call has ended.

About First Internet Bancorp

First Internet Bancorp is a bank holding company with assets of $5.6 billion as of December 31, 2025. The Company’s subsidiary, First Internet Bank, opened for business in 1999 as an industry pioneer in the branchless delivery of banking services. First Internet Bank provides consumer and small business deposit, SBA financing, franchise finance, consumer loans, and specialty finance services nationally as well as commercial real estate loans, construction loans, commercial and industrial loans, and treasury management services on a regional basis. First Internet Bancorp’s common stock trades on the Nasdaq Global Select Market under the symbol “INBK” and is a component of the Russell 2000® Index. Additional information about the Company is available at www.firstinternetbancorp.com and additional information about First Internet Bank, including its products and services, is available at www.firstib.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements with respect to the financial condition, results of operations, trends in lending policies and loan programs, plans and prospective business partnerships, objectives, future performance and business of the Company. Forward-looking statements are generally identifiable by the use of words such as “anticipate,” “believe,” “continue,” “could,” “drive,” “enhance,” “estimate,” “expanding,” “expect,” “future,” “going forward,” “growth,” ”improve,” “increase,” “looking ahead,” “maintain,” “may,” “ongoing,” “opportunities,” “pending,” “plan,” “position,” “preliminary,” “remain,” “setting the stage,” “should,” “stable,” “thereafter,” “well-positioned,” “will,” or other similar expressions. Forward-looking statements are not a guarantee of future performance or results, are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the information in the forward-looking statements. Such statements are subject to certain risks and uncertainties including: our business and operations and the business and operations of our vendors and customers: general economic conditions, whether national or regional, and conditions in the lending markets in which we participate that may have an adverse effect on the demand for our loans and other products; our credit quality and related levels of nonperforming assets and loan losses, and the value and salability of the real estate that is the collateral for our loans. Other factors that may cause such differences include: failures or breaches of or interruptions in the communications and information systems on which we rely to conduct our business; failure of our plans to grow our commercial and industrial, construction, and SBA loan portfolios; competition with national, regional and community financial institutions; the loss of key members of senior management; the anticipated impacts of inflation and rising interest rates on the general economy; risks relating to the regulation of financial institutions; and other factors identified in reports we file with the U.S. Securities and Exchange Commission. All statements in this press release, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, average tangible common equity, return on average tangible common equity, total interest income – FTE, net interest income – FTE, net interest margin – FTE, adjusted total revenue, pre-provision net revenue (loss), adjusted pre-provision net revenue, adjusted noninterest income, adjusted noninterest expense, adjusted income (loss) before income taxes, adjusted income tax provision (benefit), adjusted net income (loss), adjusted diluted earnings (loss) per share, adjusted return on average assets, adjusted return on average shareholders’ equity, adjusted return on average tangible common equity and adjusted tangible common equity to adjusted tangible assets are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the table at the end of this release under the caption “Reconciliation of Non-GAAP Financial Measures.”

First Internet Bancorp
Summary Financial Information (unaudited)
Dollar amounts in thousands, except per share data
			Three Months Ended									Twelve Months Ended
			December 31,			September 30,			December 31,			December 31,			December 31,
			2025			2025			2024			2025			2024
Net income (loss)			$	5,289		$	(41,593	)	$	7,330		$	(35,168	)	$	25,276
Per share and share information
	Earnings (loss) per share - basic		$	0.61		$	(4.76	)	$	0.84		$	(4.03	)	$	2.91
	Earnings (loss) per share - diluted			0.60			(4.76	)		0.83		$	(4.03	)		2.88
	Dividends declared per share			0.06			0.06			0.06			0.24			0.24
	Book value per common share			41.41			40.42			44.31			41.41			44.31
	Tangible book value per common share ^1			40.87			39.88			43.77			40.87			43.77
	Common shares outstanding			8,686,994			8,713,094			8,667,894			8,686,994			8,667,894
	Average common shares outstanding:
		Basic		8,728,342			8,742,052			8,696,704			8,729,970			8,690,416
		Diluted		8,769,456			8,742,052			8,788,793			8,729,970			8,765,725
Performance ratios
	Return on average assets			0.37	%		(2.71	%)		0.50	%		(0.60	%)		0.46	%
	Return on average shareholders' equity			5.79	%		(42.11	%)		7.49	%		(9.15	%)		6.70	%
	Return on average tangible common equity ^1			5.87	%		(42.62	%)		7.58	%		(9.26	%)		6.78	%
	Net interest margin			2.22	%		2.04	%		1.67	%		2.01	%		1.65	%
	Net interest margin - FTE ^1,2			2.30	%		2.12	%		1.75	%		2.09	%		1.74	%
Capital ratios ^3
	Total shareholders' equity to assets			6.46	%		6.25	%		6.69	%		6.46	%		6.69	%
	Tangible common equity to tangible assets ^1			6.38	%		6.17	%		6.62	%		6.38	%		6.62	%
	Tier 1 leverage ratio			6.24	%		5.69	%		6.90	%		6.24	%		6.90	%
	Common equity tier 1 capital ratio			8.93	%		9.24	%		9.30	%		8.93	%		9.30	%
	Tier 1 capital ratio			8.93	%		9.24	%		9.30	%		8.93	%		9.30	%
	Total risk-based capital ratio			12.44	%		13.11	%		12.62	%		12.44	%		12.62	%
Asset quality
	Nonperforming loans		$	58,538		$	53,250		$	28,421		$	58,538		$	28,421
	Nonperforming assets			61,355			55,237			28,905			61,355			28,905
	Nonperforming loans to loans			1.56	%		1.48	%		0.68	%		1.56	%		0.68	%
	Nonperforming assets to total assets			1.10	%		0.98	%		0.50	%		1.10	%		0.50	%
	Allowance for credit losses - loans to:
		Loans		1.49	%		1.66	%		1.07	%		1.49	%		1.07	%
		Nonperforming loans		95.1	%		112.5	%		157.5	%		95.1	%		157.5	%
	Net charge-offs to average loans			1.68	%		1.89	%		0.91	%		1.45	%		0.32	%
Average balance sheet information
	Loans		$	3,798,831		$	4,415,693		$	4,123,510		$	4,211,710		$	3,992,031
	Total securities			943,418			898,543			841,700			919,775			770,793
	Other earning assets			665,022			569,811			636,377			519,976			516,836
	Total interest-earning assets			5,426,126			5,895,554			5,607,195			5,662,897			5,285,026
	Total assets			5,618,089			6,081,792			5,782,116			5,848,823			5,462,730
	Noninterest-bearing deposits			155,030			174,494			114,311			154,712			114,396
	Interest-bearing deposits			4,723,879			5,133,010			4,726,449			4,866,930			4,318,926
	Total deposits			4,878,909			5,307,504			4,840,760			5,021,642			4,433,322
	Shareholders' equity			362,183			391,886			389,435			384,432			377,215
^1 Refer to "Non-GAAP Financial Measures" section above and "Reconciliation of Non-GAAP Financial Measures" below
^2 On a fully-taxable equivalent ("FTE") basis assuming a 21% tax rate
^3 Regulatory capital ratios are preliminary pending filing of the Company's regulatory reports

First Internet Bancorp
Condensed Consolidated Balance Sheets (unaudited, except for December 31, 2024)
Dollar amounts in thousands
			December 31,			September 30,			December 31,
				2025			2025			2024
Assets
	Cash and due from banks		$	6,145		$	10,923		$	9,249
	Interest-bearing deposits			450,632			776,738			457,161
	Securities available-for-sale, at fair value			778,687			625,906			587,355
	Securities held-to-maturity, at amortized cost, net of allowance for credit losses			250,609			261,725			249,796
	Loans held-for-sale			108,608			141,580			54,695
	Loans			3,746,728			3,603,506			4,170,646
	Allowance for credit losses - loans			(55,686	)		(59,923	)		(44,769	)
		Net loans		3,691,042			3,543,583			4,125,877
	Accrued interest receivable			27,909			26,674			28,180
	Federal Home Loan Bank of Indianapolis stock			28,350			28,350			28,350
	Cash surrender value of bank-owned life insurance			42,559			42,256			41,394
	Premises and equipment, net			67,934			68,843			71,453
	Goodwill			4,687			4,687			4,687
	Servicing asset			22,793			22,107			16,389
	Other real estate owned			2,631			1,801			272
	Accrued income and other assets			89,061			84,001			63,001
		Total assets	$	5,571,647		$	5,639,174		$	5,737,859
Liabilities
	Noninterest-bearing deposits		$	146,879		$	243,539		$	136,451
	Interest-bearing deposits			4,692,934			4,671,895			4,796,755
		Total deposits		4,839,813			4,915,434			4,933,206
	Advances from Federal Home Loan Bank			249,500			249,500			295,000
	Subordinated debt			105,465			105,386			105,150
	Accrued interest payable			1,744			1,236			2,495
	Accrued expenses and other liabilities			15,358			15,450			17,945
		Total liabilities		5,211,880			5,287,006			5,353,796
Shareholders' equity
	Voting common stock			186,577			186,608			186,094
	Retained earnings			193,320			188,564			230,622
	Accumulated other comprehensive loss			(20,130	)		(23,004	)		(32,653	)
		Total shareholders' equity		359,767			352,168			384,063
		Total liabilities and shareholders' equity	$	5,571,647		$	5,639,174		$	5,737,859

First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited, except for the twelve months ended December 31, 2024)
Dollar amounts in thousands, except per share data
				Three Months Ended									Twelve Months Ended
				December 31,			September 30,			December 31,			December 31,			December 31,
					2025			2025			2024			2025			2024
Interest income
	Loans			$	61,535		$	68,958		$	61,523		$	259,840		$	233,844
	Securities - taxable				8,811			8,614			7,619			34,950			26,742
	Securities - non-taxable				651			652			794			2,618			3,775
	Other earning assets				7,057			6,164			7,835			22,749			27,526
		Total interest income			78,054			84,388			77,771			320,157			291,887
Interest expense
	Deposits				43,836			50,134			49,111			188,390			183,150
	Other borrowed funds				3,896			3,902			5,109			18,007			21,360
		Total interest expense			47,732			54,036			54,220			206,397			204,510
		Net interest income			30,322			30,352			23,551			113,760			87,377
Provision for credit losses					11,984			34,789			7,201			72,314			17,070
		Net interest income (loss) after provision
			for credit losses		18,338			(4,437	)		16,350			41,446			70,307
Noninterest income (loss)
	Service charges and fees				454			369			248			1,366			959
	Loan servicing revenue				2,713			2,055			1,825			8,730			6,188
	Loan servicing asset revaluation				(1,800	)		(1,332	)		(428	)		(5,466	)		(2,537	)
	Gain (loss) on sale of loans				8,470			(27,103	)		8,568			(8,313	)		33,329
	Other				1,538			1,364			5,723			6,395			9,406
		Total noninterest income (loss)			11,375			(24,647	)		15,936			2,712			47,345
Noninterest expense
	Salaries and employee benefits				12,668			14,384			14,042			51,026			51,756
	Marketing, advertising and promotion				644			482			696			2,475			2,589
	Consulting and professional fees				1,184			979			967			4,327			3,744
	Data processing				712			651			603			2,654			2,448
	Loan expenses				1,813			1,850			1,381			6,714			5,947
	Premises and equipment				3,705			3,572			3,004			13,673			11,902
	Deposit insurance premium				1,563			1,584			1,464			6,109			5,000
	Other				1,922			1,957			1,800			8,049			6,724
		Total noninterest expense			24,211			25,459			23,957			95,027			90,110
Income (loss) before income taxes					5,502			(54,543	)		8,329			(50,869	)		27,542
Income tax provision (benefit)					213			(12,950	)		999			(15,701	)		2,266
Net income (loss)				$	5,289		$	(41,593	)	$	7,330		$	(35,168	)	$	25,276
Per common share data
Earnings (loss) per share - basic				$	0.61		$	(4.76	)	$	0.84		$	(4.03	)	$	2.91
Earnings (loss) per share - diluted				$	0.60		$	(4.76	)	$	0.83		$	(4.03	)	$	2.88
Dividends declared per share				$	0.06		$	0.06		$	0.06		$	0.24		$	0.24
All periods presented have been reclassified to conform to the current period classification

First Internet Bancorp
Average Balances and Rates (unaudited)
Dollar amounts in thousands
				Three Months Ended
				December 31, 2025							September 30, 2025							December 31, 2024
				Average			Interest /		Yield /		Average			Interest /		Yield /		Average			Interest /		Yield /
				Balance			Dividends		Cost		Balance			Dividends		Cost		Balance			Dividends		Cost
Assets
	Interest-earning assets
		Loans, including loans held-for-sale ^1		$	3,817,686		$	61,535	6.39	%	$	4,427,200		$	68,958	6.18	%	$	4,129,118		$	61,523	5.93	%
		Securities - taxable			863,071			8,811	4.05	%		819,941			8,614	4.17	%		758,560			7,619	4.00	%
		Securities - non-taxable			80,347			651	3.21	%		78,602			652	3.29	%		83,140			794	3.80	%
		Other earning assets			665,022			7,057	4.21	%		569,811			6,164	4.29	%		636,377			7,835	4.90	%
			Total interest-earning assets		5,426,126			78,054	5.71	%		5,895,554			84,388	5.68	%		5,607,195			77,771	5.52	%
	Allowance for credit losses - loans				(61,378	)						(49,495	)						(46,427	)
	Noninterest-earning assets				253,341							235,733							221,348
		Total assets		$	5,618,089						$	6,081,792						$	5,782,116
Liabilities
	Interest-bearing liabilities
		Interest-bearing demand deposits		$	1,023,305		$	7,524	2.92	%	$	1,399,323		$	11,742	3.33	%	$	574,577		$	2,910	2.01	%
		Savings accounts			18,575			40	0.85	%		20,035			42	0.83	%		21,072			45	0.85	%
		Money market accounts			1,312,201			11,238	3.40	%		1,250,350			11,771	3.73	%		1,236,116			12,309	3.96	%
		Fintech - brokered deposits			-			-	0.00	%		-			-	0.00	%		208,545			2,111	4.03	%
		Certificates and brokered deposits			2,369,798			25,034	4.19	%		2,463,302			26,579	4.28	%		2,686,139			31,736	4.70	%
			Total interest-bearing deposits		4,723,879			43,836	3.68	%		5,133,010			50,134	3.87	%		4,726,449			49,111	4.13	%
		Other borrowed funds			354,926			3,896	4.35	%		365,119			3,902	4.24	%		528,806			5,109	3.84	%
			Total interest-bearing liabilities		5,078,805			47,732	3.73	%		5,498,129			54,036	3.90	%		5,255,255			54,220	4.10	%
	Noninterest-bearing deposits				155,030							174,494							114,311
	Other noninterest-bearing liabilities				22,071							17,283							23,115
		Total liabilities			5,255,906							5,689,906							5,392,681
Shareholders' equity					362,183							391,886							389,435
Total liabilities and shareholders' equity				$	5,618,089						$	6,081,792						$	5,782,116
Net interest income							$	30,322						$	30,352						$	23,551
Interest rate spread									1.98	%						1.78	%						1.42	%
Net interest margin									2.22	%						2.04	%						1.67	%
Net interest margin - FTE ^2,3									2.30	%						2.12	%						1.75	%
^1 Includes nonaccrual loans
^2 On a fully-taxable equivalent ("FTE") basis assuming a 21% tax rate
^3 Refer to "Non-GAAP Financial Measures" section above and "Reconciliation of Non-GAAP Financial Measures" below

First Internet Bancorp
Average Balances and Rates (unaudited)
Dollar amounts in thousands
	Twelve Months Ended
	December 31, 2025							December 31, 2024
	Average			Interest /		Yield /		Average			Interest /		Yield /
	Balance			Dividends		Cost		Balance			Dividends		Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale ^1	$	4,223,146		$	259,840	6.15	%	$	3,997,397		$	233,844	5.85	%
Securities - taxable		839,878			34,950	4.16	%		692,806			26,742	3.86	%
Securities - non-taxable		79,897			2,618	3.28	%		77,987			3,775	4.84	%
Other earning assets		519,976			22,749	4.38	%		516,836			27,526	5.33	%
Total interest-earning assets		5,662,897			320,157	5.65	%		5,285,026			291,887	5.52	%
Allowance for credit losses - loans		(51,440	)						(42,758	)
Noninterest-earning assets		237,366							220,462
Total assets	$	5,848,823						$	5,462,730
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits	$	1,152,210		$	36,007	3.13	%	$	494,082		$	10,448	2.11	%
Savings accounts		20,229			171	0.85	%		22,336			189	0.85	%
Money market accounts		1,243,300			45,459	3.66	%		1,230,443			51,036	4.15	%
Fintech - brokered deposits		-			-	0.00	%		141,860			6,023	4.25	%
Certificates and brokered deposits		2,451,191			106,753	4.36	%		2,430,205			115,454	4.75	%
Total interest-bearing deposits		4,866,930			188,390	3.87	%		4,318,926			183,150	4.24	%
Other borrowed funds		421,947			18,007	4.27	%		629,137			21,360	3.40	%
Total interest-bearing liabilities		5,288,877			206,397	3.90	%		4,948,063			204,510	4.13	%
Noninterest-bearing deposits		154,712							114,396
Other noninterest-bearing liabilities		20,802							23,056
Total liabilities		5,464,391							5,085,515
Shareholders' equity		384,432							377,215
Total liabilities and shareholders' equity	$	5,848,823						$	5,462,730
Net interest income				$	113,760						$	87,377
Interest rate spread						1.75	%						1.39	%
Net interest margin						2.01	%						1.65	%
Net interest margin - FTE ^2,3						2.09	%						1.74	%
^1 Includes nonaccrual loans
^2 On a fully-taxable equivalent ("FTE") basis assuming a 21% tax rate
^3 Refer to "Non-GAAP Financial Measures" section above and "Reconciliation of Non-GAAP Financial Measures" below

First Internet Bancorp
Loans and Deposits (unaudited)
Dollar amounts in thousands
			December 31, 2025				September 30, 2025				December 31, 2024
			Amount		Percent		Amount		Percent		Amount		Percent
Commercial loans
	Commercial and industrial		$	221,714	5.9	%	$	206,301	5.7	%	$	120,175	2.9	%
	Owner-occupied commercial real estate			48,575	1.3	%		50,046	1.4	%		53,591	1.3	%
	Investor commercial real estate			647,394	17.3	%		644,184	17.9	%		269,431	6.5	%
	Construction			372,668	9.9	%		300,291	8.3	%		413,523	9.9	%
	Single tenant lease financing			222,925	5.9	%		108,146	3.0	%		949,748	22.7	%
	Public finance			442,234	11.8	%		480,119	13.3	%		485,867	11.6	%
	Healthcare finance			139,469	3.7	%		150,522	4.2	%		181,427	4.4	%
	Small business lending			430,024	11.5	%		401,628	11.1	%		331,914	8.0	%
	Franchise finance			417,045	11.1	%		450,340	12.5	%		536,909	12.9	%
		Total commercial loans		2,942,048	78.4	%		2,791,577	77.4	%		3,342,585	80.2	%
Consumer loans
	Residential mortgage			343,110	9.2	%		349,275	9.7	%		375,160	9.0	%
	Home equity			14,725	0.4	%		15,806	0.4	%		18,274	0.4	%
	Trailers			235,876	6.3	%		232,006	6.4	%		210,575	5.0	%
	Recreational vehicles			141,952	3.8	%		142,245	3.9	%		149,342	3.6	%
	Other consumer loans			47,630	1.3	%		48,753	1.5	%		48,030	1.2	%
		Total consumer loans		783,293	21.0	%		788,085	21.9	%		801,381	19.2	%
Net deferred loan fees, premiums, discounts and other ^1				21,387	0.6	%		23,844	0.7	%		26,680	0.6	%
Total loans			$	3,746,728	100.0	%	$	3,603,506	100.0	%	$	4,170,646	100.0	%
			December 31, 2025				September 30, 2025				December 31, 2024
			Amount		Percent		Amount		Percent		Amount		Percent
Deposits
	Noninterest-bearing deposits		$	146,880	3.0	%	$	243,539	5.0	%	$	136,451	2.8	%
	Interest-bearing demand deposits			1,120,850	23.2	%		1,003,950	20.4	%		896,661	18.2	%
	Savings accounts			18,990	0.4	%		18,694	0.4	%		19,823	0.4	%
	Money market accounts			1,272,845	26.3	%		1,250,202	25.4	%		1,183,789	24.0	%
	Fintech - brokered deposits			-	0.0	%		-	0.0	%		-	0.0	%
	Certificates of deposits			2,004,909	41.4	%		2,115,613	43.0	%		2,133,455	43.2	%
	Brokered deposits			275,339	5.7	%		283,436	5.8	%		563,027	11.4	%
Total deposits			$	4,839,813	100.0	%	$	4,915,434	100.0	%	$	4,933,206	100.0	%
^1 Includes carrying value adjustments of $19.1 million, $20.2 million and $22.9 million related to terminated interest rate swaps associated with public finance loans as of December 31, 2025, September 30, 2025 and December 31, 2024, respectively.

First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2025			2025			2024			2025			2024
Total equity - GAAP	$	359,767		$	352,168		$	384,063		$	359,767		$	384,063
Adjustments:
Goodwill		(4,687	)		(4,687	)		(4,687	)		(4,687	)		(4,687	)
Tangible common equity	$	355,080		$	347,481		$	379,376		$	355,080		$	379,376
Total assets - GAAP	$	5,571,647		$	5,639,174		$	5,737,859		$	5,571,647		$	5,737,859
Adjustments:
Goodwill		(4,687	)		(4,687	)		(4,687	)		(4,687	)		(4,687	)
Tangible assets	$	5,566,960		$	5,634,487		$	5,733,172		$	5,566,960		$	5,733,172
Common shares outstanding		8,686,994			8,713,094			8,667,894			8,686,994			8,667,894
Book value per common share	$	41.41		$	40.42		$	44.31		$	41.41		$	44.31
Effect of goodwill		(0.54	)		(0.54	)		(0.54	)		(0.54	)		(0.54	)
Tangible book value per common share	$	40.87		$	39.88		$	43.77		$	40.87		$	43.77
Total shareholders' equity to assets		6.46	%		6.25	%		6.69	%		6.46	%		6.69	%
Effect of goodwill		(0.08	%)		(0.08	%)		(0.07	%)		(0.08	%)		(0.07	%)
Tangible common equity to tangible assets		6.38	%		6.17	%		6.62	%		6.38	%		6.62	%
Total average equity - GAAP	$	362,183		$	391,886		$	389,435		$	384,432		$	377,215
Adjustments:
Average goodwill		(4,687	)		(4,687	)		(4,687	)		(4,687	)		(4,687	)
Average tangible common equity	$	357,496		$	387,199		$	384,748		$	379,745		$	372,528
Return on average shareholders' equity		5.79	%		(42.11	%)		7.49	%		(9.15	%)		6.70	%
Effect of goodwill		0.08	%		(0.51	%)		0.09	%		(0.11	%)		0.08	%
Return on average tangible common equity		5.87	%		(42.62	%)		7.58	%		(9.26	%)		6.78	%
Total interest income	$	78,054		$	84,388		$	77,771		$	320,157		$	291,887
Adjustments:
Fully-taxable equivalent adjustments ^1		1,161			1,158			1,152			4,645			4,650
Total interest income - FTE	$	79,215		$	85,546		$	78,923		$	324,802		$	296,537
Net interest income	$	30,322		$	30,352		$	23,551		$	113,760		$	87,377
Adjustments:
Fully-taxable equivalent adjustments ^1		1,161			1,158			1,152			4,645			4,650
Net interest income - FTE	$	31,483		$	31,510		$	24,703		$	118,405		$	92,027
Net interest margin		2.22	%		2.04	%		1.67	%		2.01	%		1.65	%
Effect of fully-taxable equivalent adjustments ^1		0.08	%		0.08	%		0.08	%		0.08	%		0.09	%
Net interest margin - FTE		2.30	%		2.12	%		1.75	%		2.09	%		1.74	%
^1 Assuming a 21% tax rate

First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
	Three Months Ended								Twelve Months Ended
	December 31,		September 30,			December 31,			December 31,			December 31,
	2025			2025			2024			2025			2024
Total revenue - GAAP	$	41,697	$	5,705		$	39,487		$	116,472		$	134,722
Adjustments:
Loss on sale of loans		411		37,823			-			38,234			-
Gain on prepayment of FHLB advances		-		-			(1,829	)		-			(1,829	)
Gain on termination of swaps		-		-			(2,904	)		-			(2,904	)
Adjusted total revenue	$	42,108	$	43,528		$	34,754		$	154,706		$	129,989
Net income (loss) - GAAP	$	5,289	$	(41,593	)	$	7,330		$	(35,168	)	$	25,276
Adjustments:^1
Provision for credit losses		11,984		34,789			7,201			72,314			17,070
Income tax provision (benefit)		213		(12,950	)		999			(15,701	)		2,266
Pre-provision net revenue (loss)	$	17,486	$	(19,754	)	$	15,530		$	21,445		$	44,612
Pre-provision net revenue (loss)	$	17,486	$	(19,754	)	$	15,530		$	21,445		$	44,612
Adjustments:^1
Loss on sale of loans		411		37,823			-			38,234			-
IT termination fees		-		-			-			-			357
Anniversary expenses		-		-			-			-			95
Gain on prepayment of FHLB advances		-		-			(1,829	)		-			(1,829	)
Gain on termination of swaps		-		-			(2,904	)		-			(2,904	)
Adjusted pre-provision net revenue	$	17,897	$	18,069		$	10,797		$	59,679		$	40,331
Noninterest income (loss) - GAAP	$	11,375	$	(24,647	)	$	15,936		$	2,712		$	47,345
Adjustments:
Loss on sale of loans		411		37,823			-			38,234			-
Gain on prepayment of FHLB advances		-		-			(1,829	)		-			(1,829	)
Gain on termination of swaps		-		-			(2,904	)		-			(2,904	)
Adjusted noninterest income	$	11,786	$	13,176		$	11,203		$	40,946		$	42,612
Noninterest expense - GAAP	$	24,211	$	25,459		$	23,957		$	95,027		$	90,110
Adjustments:
IT termination fees		-		-			-			-			(452	)
Anniversary expenses		-		-			-			-			(120	)
Adjusted noninterest expense	$	24,211	$	25,459		$	23,957		$	95,027		$	89,538
Income (loss) before income taxes - GAAP	$	5,502	$	(54,543	)	$	8,329		$	(50,869	)	$	27,542
Adjustments:
Loss on sale of loans		411		37,823			-			38,234			-
IT termination fees		-		-			-			-			452
Anniversary expenses		-		-			-			-			120
Gain on prepayment of FHLB advances		-		-			(1,829	)		-			(1,829	)
Gain on termination of swaps		-		-			(2,904	)		-			(2,904	)
Adjusted income (loss) before income taxes	$	5,913	$	(16,720	)	$	3,596		$	(12,635	)	$	23,381
Income tax provision (benefit) - GAAP	$	213	$	(12,950	)	$	999		$	(15,701	)	$	2,266
Adjustments:^1
Loss on sale of loans		86		8,699			-			8,785			-
IT termination fees		-		-			-			-			95
Anniversary expenses		-		-			-			-			25
Gain on prepayment of FHLB advances		-		-			(384	)		-			(384	)
Gain on termination of swaps		-		-			(610	)		-			(610	)
Adjusted income tax provision (benefit)	$	299	$	(4,251	)	$	5		$	(6,916	)	$	1,392
Net income (loss) - GAAP	$	5,289	$	(41,593	)	$	7,330		$	(35,168	)	$	25,276
Adjustments:
Loss on sale of loans		325		29,124			-			29,449			-
IT termination fees		-		-			-			-			357
Anniversary expenses		-		-			-			-			95
Gain on prepayment of FHLB advances		-		-			(1,445	)		-			(1,445	)
Gain on termination of swaps		-		-			(2,294	)		-			(2,294	)
Adjusted net income (loss)	$	5,614	$	(12,469	)	$	3,591		$	(5,719	)	$	21,989
^1 Assuming a 21% tax rate

First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2025			2025			2024			2025			2024
Diluted average common shares outstanding		8,769,456			8,742,052			8,788,793			8,729,970			8,765,725
Diluted earnings (loss) per share - GAAP	$	0.60		$	(4.76	)	$	0.83		$	(4.03	)	$	2.88
Adjustments:
Effect of loss on sale of loans		0.04			3.33			-			3.37			-
Effect of IT termination fees		-			-			-			-			0.04
Effect of anniversary expenses		-			-			-			-			0.01
Effect of gain on prepayment of FHLB advances		-			-			(0.16	)		-			(0.16	)
Effect of gain on termination of swaps		-			-			(0.26	)		-			(0.26	)
Adjusted diluted earnings (loss) per share	$	0.64		$	(1.43	)	$	0.41		$	(0.66	)	$	2.51
Return on average assets		0.37	%		(2.71	%)		0.50	%		(0.60	%)		0.46	%
Effect of loss on sale of loans		0.02	%		1.90	%		0.00	%		0.50	%		0.00	%
Effect of IT termination fees		0.00	%		0.00	%		0.00	%		0.00	%		0.01	%
Effect of anniversary expenses		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Effect of gain on prepayment of FHLB advances		0.00	%		0.00	%		(0.10	%)		0.00	%		(0.03	%)
Effect of gain on termination of swaps		0.00	%		0.00	%		(0.16	%)		0.00	%		(0.04	%)
Adjusted return on average assets		0.39	%		(0.81	%)		0.24	%		(0.10	%)		0.40	%
Return on average shareholders' equity		5.79	%		(42.11	%)		7.49	%		(9.15	%)		6.70	%
Effect of loss on sale of loans		0.36	%		29.48	%		0.00	%		7.66	%		0.00	%
Effect of IT termination fees		0.00	%		0.00	%		0.00	%		0.00	%		0.09	%
Effect of anniversary expenses		0.00	%		0.00	%		0.00	%		0.00	%		0.03	%
Effect of gain on prepayment of FHLB advances		0.00	%		0.00	%		(1.48	%)		0.00	%		(0.38	%)
Effect of gain on termination of swaps		0.00	%		0.00	%		(2.34	%)		0.00	%		(0.61	%)
Adjusted return on average shareholders' equity		6.15	%		(12.63	%)		3.67	%		(1.49	%)		5.83	%
Return on average tangible common equity		5.87	%		(42.62	%)		7.58	%		(9.26	%)		6.78	%
Effect of loss on sale of loans		0.36	%		29.84	%		0.00	%		7.75	%		0.00	%
Effect of IT termination fees		0.00	%		0.00	%		0.00	%		0.00	%		0.10	%
Effect of anniversary expenses		0.00	%		0.00	%		0.00	%		0.00	%		0.03	%
Effect of gain on prepayment of FHLB advances		0.00	%		0.00	%		(1.49	%)		0.00	%		(0.39	%)
Effect of gain on termination of swaps		0.00	%		0.00	%		(2.37	%)		0.00	%		(0.62	%)
Adjusted return on average tangible common equity		6.23	%		(12.78	%)		3.72	%		(1.51	%)		5.90	%