EX-99.1 2 inbk-3q2024xex991.htm EX-99.1 Document



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First Internet Bancorp Reports Third Quarter 2024 Results


Fishers, Indiana, October 23, 2024 – 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, 2024.

Third Quarter 2024 Financial Highlights

▪Net income of $7.0 million, an increase of 21.0% from the second quarter of 2024

▪Diluted earnings per share of $0.80, an increase of 19.4% from the second quarter of 2024

▪Net interest income of $21.8 million and fully-taxable equivalent net interest income1 of $22.9 million, increases of 2.1% and 1.8%, respectively, from the second quarter of 2024

▪Net interest margin of 1.62% and fully-taxable equivalent net interest margin1 of 1.70%, compared to 1.67% and 1.76%, respectively, for the second quarter of 2024

▪Noninterest income of $12.0 million, a 9.0% increase from the second quarter of 2024

▪Loan growth of $74.7 million, a 1.9% increase from the second quarter of 2024; Deposit growth of $523.8 million, a 12.3% increase from the second quarter of 2024; Loans to deposits ratio of 84.1%

▪Nonperforming loans to total loans of 0.56%; net charge-offs to average loans of 0.15%; allowance for credit losses to total loans of 1.13%

▪Tangible common equity to tangible assets ratio1 of 6.54%, and 7.49% ex-AOCI and adjusted for normalized cash balances1; CET1 ratio of 9.37%

▪Tangible book value per share1 of $43.89, a 3.6% increase from the second quarter of 2024, and a 10.9% increase from the third quarter of 2023

“Our third quarter results demonstrated strong performance virtually across the board,” said David Becker, Chairman and Chief Executive Officer. “Growth in net interest income, driven by higher earning asset yields and stable funding costs, along with record gain-on-sale revenue from the continued expansion of our national SBA platform, propelled an increase in operating revenues for the fifth consecutive quarter, resulting in significant positive operating leverage.
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."


“Additionally, robust deposit growth and the ongoing strategic shift in loan mix have increased balance sheet flexibility, enhanced our interest rate risk profile, and improved our liquidity position to its strongest level in recent history, as indicated by our loans-to-deposits ratio.

“Looking ahead, we are well-positioned to deliver increased earnings and profitability by continuing to execute our core strategies of revenue diversification and balance sheet optimization. Our balance sheet and capital position are solid, and measures of asset quality remain sound. I want to thank our employees for their dedication and hard work in driving increased value for our stakeholders.”

Net Interest Income and Net Interest Margin
Net interest income for the third quarter of 2024 was $21.8 million, compared to $21.3 million for the second quarter of 2024, and $17.4 million for the third quarter of 2023. On a fully-taxable equivalent basis, net interest income for the third quarter of 2024 was $22.9 million, compared to $22.5 million for the second quarter of 2024, and $18.6 million for the third quarter of 2023.

Total interest income for the third quarter of 2024 was $75.0 million, an increase of 5.7% compared to the second quarter of 2024, and an increase of 19.0% compared to the third quarter of 2023. On a fully- taxable equivalent basis, total interest income for the third quarter of 2024 was $76.1 million, an increase of 5.5% compared to the second quarter of 2024, and an increase of 18.4% compared to the third quarter of 2023. The yield on average interest-earning assets for the third quarter of 2024 increased to 5.58% from 5.54% for the second quarter of 2024, due to a 7 basis point (“bp”) increase in the yield earned on loans, partially offset by a 7 bp decrease in the yield earned on other earning assets and a 1 bp decrease in the yield earned on securities. Compared to the linked quarter, average loan balances, including loans held-for-sale, increased $92.6 million, or 2.4%, while the average balance of securities increased $47.9 million, or 6.4%, and the average balance of other earning assets increased $57.3 million, or 12.2%.

Interest income earned on commercial loans was higher due primarily to increased average balances within the investor commercial real estate, construction and small business lending portfolios. This was partially offset by lower average balances in the commercial and industrial and public finance portfolios, both of which were impacted by early payoffs which resulted in lower interest income compared to the prior quarter. The continued shift in the loan mix reflects the Company’s focus on higher-yielding variable rate products, in part, to help improve the interest rate risk profile of the balance sheet.

In the consumer loan portfolio, interest income was up due to the combination of higher average balances and continued strong new origination yields in the trailers, RV and other consumer loan portfolios.

The yield on funded portfolio loan originations was 8.85% in the third quarter of 2024, a decrease of 3 bps compared to the second quarter of 2024, and a decrease of 7 bps compared to the third quarter of 2023.

Interest income earned on securities during the third quarter of 2024 increased $0.5 million, or 7.4%, compared to the second quarter of 2024, driven primarily by new purchases and relatively stable yields on the portfolio. Interest income earned on other earning asset balances increased $0.8 million,







or 12.2%, in the third quarter of 2024 compared to the linked quarter, due primarily to higher average cash balances.

Total interest expense for the third quarter of 2024 was $53.2 million, an increase of $3.6 million, or 7.2%, compared to the linked quarter as short-term rates remained stable throughout most of the quarter while average interest-bearing deposits balances increased $211.1 million, or 5.1%. Interest expense related to interest-bearing deposits increased $2.9 million, or 6.6%, driven primarily by higher balances of certificates of deposits (“CDs”), interest-bearing demand deposits, fintech – brokered deposits and brokered deposits. The cost of interest-bearing deposits was relatively stable during the quarter at 4.30%, compared to 4.29% for the second quarter of 2024.

Average CD balances increased $137.7 million, or 7.7%, compared to the linked quarter, driven by strong consumer demand, while the cost of funds decreased 3 bps. CD pricing reached its inflection point during the third quarter of 2024 as the weighted average cost of new CDs was 4.77%, or 28 bps lower than the cost of maturing CDs. As interest rates across the yield curve began falling ahead of the expected cut in the Fed Funds rate in September, the Company lowered CD rates significantly during the second half of the quarter. As a result, the weighted average cost of CD production during the month of September was 4.48%, or almost 30 bps lower than the average cost of new CDs for the quarter, and is 53 bps lower than the rates on CDs maturing in the fourth quarter of 2024.

The average balance of interest-bearing demand deposits increased $37.3 million, or 7.9%, due to growth in fintech partnership deposits, and the cost of funds increased 6 bps. The average balance of fintech – brokered deposits increased $33.3 million, or 27.9%, due to higher payments volumes, while the cost of funds remained flat. The average balance of brokered deposits increased $21.3 million, or 4.1%, compared to the linked quarter, and the cost of funds increased 19 bps.

Interest expense was also impacted by the cost of other borrowed funds. The average balance of FHLB advances declined during the third quarter of 2024; however, the cost of funds increased as lower-cost advances matured. Additionally, one of the Company’s subordinated debt issuances converted from fixed to floating rate early in the third quarter of 2024. As a result, the cost of other borrowed funds increased 56 bps.

Net interest margin (“NIM”) was 1.62% for the third quarter of 2024, down from 1.67% for the second quarter of 2024 and up from 1.39% for the third quarter of 2023. Fully-taxable equivalent NIM (“FTE NIM”) was 1.70% for the third quarter of 2024, down from 1.76% for the second quarter of 2024 and up from 1.49% for the third quarter of 2023. NIM and FTE NIM performance for the third quarter was affected by carrying higher cash balances, which are estimated to have had a negative impact of 6 bps. Furthermore, the early loan payoff activity discussed above also had a negative impact of 6 bps.

Noninterest Income
Noninterest income for the third quarter of 2024 was $12.0 million, compared to $11.0 million for the second quarter of 2024, and $7.4 million for the third quarter of 2023. Gain on sale of loans totaled $9.9 million in the third quarter of 2024, increasing $1.6 million, or 19.8%, compared to the linked quarter. Gain on sale revenue consisted almost entirely of sales of U.S. Small Business Administration (“SBA”) 7(a) guaranteed loans during the third quarter of 2024. Loan sale volume was up 22.1% while net premiums decreased 65 bps compared to the linked quarter. Other income decreased $0.7 million during the quarter due primarily to lower distributions from fund investments.







Net loan servicing revenue increased by $0.1 million due to the growth in the servicing portfolio, partially offset by the fair value adjustment to the loan servicing asset.

Noninterest Expense
Noninterest expense totaled $22.8 million for the third quarter of 2024, compared to $22.3 million for the second quarter of 2024, and $19.8 million for the third quarter of 2023, representing increases of 2.1% and 15.4%, respectively. Excluding non-recurring costs of almost $0.6 million recognized in the second quarter of 2024, noninterest expense increased $1.0 million, or 4.7%, in the third quarter of 2024 from the linked quarter. The increase was driven mainly by higher salaries and employee benefits due to higher small business lending incentive compensation as well as staff additions in small business lending and risk management.

Income Taxes
The Company recorded income tax expense of $0.6 million and an effective tax rate of 8.1% for the third quarter of 2024, compared to income tax expense of $0.2 million and an effective tax rate of 3.6% for the second quarter of 2024, and an income tax benefit of $0.4 million for the third quarter of 2023.

Loans and Credit Quality
Total loans as of September 30, 2024, were $4.0 billion, an increase of $74.7 million, or 1.9%, compared to June 30, 2024, and an increase of $300.8 million, or 8.1%, compared to September 30, 2023. Total commercial loan balances were $3.2 billion as of September 30, 2024, an increase of $75.5 million, or 2.4%, compared to June 30, 2024, and an increase of $295.2 million, or 10.2%, compared to September 30, 2023. Compared to the linked quarter, the increase in commercial loan balances was driven primarily by growth in investor commercial real estate, small business lending and construction balances. These items were partially offset by decreases in the public finance, healthcare finance and commercial and industrial portfolios. Quarter-end balances in the commercial and industrial and public finance portfolios were impacted by early payoffs. The increase in investor commercial real estate balances included loans with strong variable rate pricing that converted from construction loans upon project completion.

Total consumer loan balances were $803.4 million as of September 30, 2024, an increase of $2.9 million, or 0.4%, compared to June 30, 2024, and an increase of $16.9 million, or 2.1%, compared to September 30, 2023. The increase compared to the linked quarter was due primarily to a higher balance in the trailers portfolio, partially offset by declines in the residential mortgage and home equity portfolios.

Total delinquencies 30 days or more past due were 0.75% of total loans as of September 30, 2024, compared to 0.56% at June 30, 2024, and 0.22% as of September 30, 2023. The increase compared to the linked quarter was due primarily to an increase in delinquencies in franchise finance and small business lending loans. Nonperforming loans were 0.56% of total loans as of September 30, 2024, up from 0.33% as of June 30, 2024, and 0.16% as of September 30, 2023. Nonperforming loans totaled $22.5 million as of September 30, 2024, up from $13.0 million as of June 30, 2024, and up from $5.9 million as of September 30, 2023. The increase in nonperforming loans at the end of the third quarter of 2024 was due primarily to franchise finance and small business lending loans that were placed on nonaccrual during the quarter. At quarter end, there were $10.1 million of specific reserves held against the balance of nonperforming loans.








The allowance for credit losses (“ACL”) as a percentage of total loans was 1.13% as of September 30, 2024, compared to 1.10% as of June 30, 2024, and 0.98% as of September 30, 2023. The increase in the ACL reflects growth and higher coverage ratios in certain loan portfolios, as well as additional reserves related to small business lending and franchise finance, partially offset by the positive impact of economic data on forecasted loss rates and qualitative factors on other portfolios.
Net charge-offs of $1.5 million were recognized during the third quarter of 2024, resulting in net charge-offs to average loans of 0.15%, compared to $1.4 million, or 0.14%, for the second quarter of 2024, and $1.5 million, or 0.16%, for the third quarter of 2023. Net charge-offs in the third quarter of 2024 were driven primarily by small business lending.
The provision for credit losses in the third quarter of 2024 was $3.4 million, compared to $4.0 million for the second quarter of 2024 and $1.9 million for the third quarter of 2023. The provision for the third quarter of 2024 was driven primarily by growth and changes in the loan composition, net charge-offs and an increase in reserves related to franchise finance and small business lending, partially offset by the positive impact of economic forecasts and adjustments to qualitative factors on other portfolios.

Capital
As of September 30, 2024, total shareholders’ equity was $385.1 million, an increase of $13.2 million, or 3.5%, compared to June 30, 2024, and an increase of $37.4 million, or 10.8%, compared to September 30, 2023. The increase in total shareholders’ equity during the third quarter compared to the linked quarter was due primarily to the net income earned during the quarter and a decrease in accumulated other comprehensive loss. Book value per common share increased to $44.43 as of September 30, 2024, up from $42.91 as of June 30, 2024, and $40.11 as of September 30, 2023. Tangible book value per share was $43.89 as of September 30, 2024, up from $42.37 as of June 30, 2024, and $39.57 as of September 30, 2023.

The following table presents the Company’s and the Bank’s regulatory and other capital ratios as of September 30, 2024.
As of September 30, 2024
CompanyBank
Total shareholders’ equity to assets 6.61%7.95%
Tangible common equity to tangible assets 1
6.54%7.87%
Tier 1 leverage ratio 2
7.13%8.53%
Common equity tier 1 capital ratio 2
9.37%11.22%
Tier 1 capital ratio 2
9.37%11.22%
Total risk-based capital ratio 2
12.79%12.34%
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 and the Bank's regulatory reports.

Conference Call and Webcast
The Company will host a conference call and webcast at 2:00 p.m. Eastern Time on Thursday, October 24, 2024, to discuss its quarterly financial results. The call can be accessed via telephone at (888) 259-6580; access code: 59135394. A recorded replay can be accessed through November 24, 2024, by dialing (877) 674-7070; access code: 135394#.







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 $5.8 billion as of September 30, 2024. 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,” “enhance,” “estimate,” “expanding,” “expect,” “going forward,” “growth,” ”improve,” “increase,” “may,” “ongoing,” “opportunities,” “pending,” “plan,” “position,” “preliminary,” “remain,” “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 any 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, adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax provision (benefit), adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average shareholders’ equity and adjusted return on average tangible common equity 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/AnalystsMedia
Paula DeemerPANBlast
Director of Corporate AdministrationZach Weismiller
(317) 428-4628firstib@panblastpr.com
investors@firstib.com







First Internet Bancorp
Summary Financial Information (unaudited)
Dollar amounts in thousands, except per share data
Three Months EndedNine Months Ended
September 30,
2024		June 30,
2024		September 30,
2023		September 30,
2024		September 30,
2023
Net income $6,990 5,775 $3,409 $17,946 $4,274 
Per share and share information
Earnings per share - basic$0.80 $0.67 $0.39 $2.07 $0.48 
Earnings per share - diluted0.80 0.67 0.39 2.05 0.48 
Dividends declared per share0.06 0.06 0.06 0.18 0.18 
Book value per common share44.43 42.91 40.11 44.43 40.11 
Tangible book value per common share 1
43.89 42.37 39.57 43.89 39.57 
Common shares outstanding8,667,894 8,667,894 8,669,673 8,667,894 8,669,673 
Average common shares outstanding:
Basic8,696,634 8,594,315 8,744,385 8,688,304 8,889,532 
Diluted8,768,731 8,656,215 8,767,217 8,756,544 8,907,748 
Performance ratios
Return on average assets0.50 %0.44 %0.26 %0.45 %0.12 %
Return on average shareholders' equity7.32 %6.28 %3.79 %6.42 %1.59 %
Return on average tangible common equity 1
7.41 %6.36 %3.84 %6.51 %1.61 %
Net interest margin1.62 %1.67 %1.39 %1.65 %1.55 %
Net interest margin - FTE 1,2
1.70 %1.76 %1.49 %1.74 %1.66 %
Capital ratios 3
Total shareholders' equity to assets6.61 %6.96 %6.73 %6.61 %6.73 %
Tangible common equity to tangible assets 1
6.54 %6.88 %6.64 %6.54 %6.64 %
Tier 1 leverage ratio7.13 %7.24 %7.32 %7.13 %7.32 %
Common equity tier 1 capital ratio9.37 %9.47 %9.56 %9.37 %9.56 %
Tier 1 capital ratio9.37 %9.47 %9.56 %9.37 %9.56 %
Total risk-based capital ratio12.79 %13.13 %13.13 %12.79 %13.13 %
Asset quality
Nonperforming loans$22,478 $12,978 $5,885 $22,478 $5,885 
Nonperforming assets22,944 13,055 6,069 22,944 6,069 
Nonperforming loans to loans0.56 %0.33 %0.16 %0.56 %0.16 %
Nonperforming assets to total assets0.39 %0.24 %0.12 %0.39 %0.12 %
Allowance for credit losses - loans to:
Loans1.13 %1.10 %0.98 %1.13 %0.98 %
Nonperforming loans203.4 %334.5 %619.4 %203.4 %619.4 %
Net charge-offs to average loans0.15 %0.14 %0.16 %0.12 %0.38 %
Average balance sheet information
Loans$4,022,196 $3,930,976 $3,700,410 $3,947,885 $3,643,156 
Total securities792,409 744,537 622,220 746,985 604,026 
Other earning assets526,384 469,045 653,375 476,697 499,835 
Total interest-earning assets5,348,153 5,150,305 4,976,667 5,176,852 4,751,104 
Total assets5,523,910 5,332,776 5,137,474 5,355,491 4,905,910 
Noninterest-bearing deposits113,009 116,939 127,540 114,425 126,647 
Interest-bearing deposits4,384,078 4,172,976 3,911,696 4,182,094 3,680,746 
Total deposits4,497,087 4,289,915 4,039,236 4,296,519 3,807,393 
Shareholders' equity380,061 369,825 356,701 373,111 359,405 

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,
2024		June 30,
2024		September 30,
2023
Assets
Cash and due from banks$6,539 $6,162 $3,595 
Interest-bearing deposits705,940 390,624 517,610 
Securities available-for-sale, at fair value575,257 488,572 450,827 
Securities held-to-maturity, at amortized cost, net of allowance for credit losses263,320 270,349 231,928 
Loans held-for-sale32,996 19,384 31,669 
Loans4,035,880 3,961,146 3,735,068 
Allowance for credit losses - loans(45,721)(43,405)(36,452)
Net loans3,990,159 3,917,741 3,698,616 
Accrued interest receivable27,750 28,118 23,761 
Federal Home Loan Bank of Indianapolis stock28,350 28,350 28,350 
Cash surrender value of bank-owned life insurance41,111 40,834 40,619 
Premises and equipment, net72,150 72,516 74,197 
Goodwill4,687 4,687 4,687 
Servicing asset14,662 13,009 9,579 
Other real estate owned251 — 106 
Accrued income and other assets60,087 62,956 53,479 
Total assets$5,823,259 $5,343,302 $5,169,023 
Liabilities
Noninterest-bearing deposits$111,591 $126,438 $125,265 
Interest-bearing deposits4,686,119 4,147,484 3,958,280 
Total deposits4,797,710 4,273,922 4,083,545 
Advances from Federal Home Loan Bank515,000 575,000 614,933 
Subordinated debt105,071 104,993 104,761 
Accrued interest payable2,808 3,419 2,968 
Accrued expenses and other liabilities17,541 14,015 15,072 
Total liabilities5,438,130 4,971,349 4,821,279 
Shareholders' equity
Voting common stock185,631 185,175 185,085 
Retained earnings223,824 217,365 203,856 
Accumulated other comprehensive loss(24,326)(30,587)(41,197)
Total shareholders' equity385,129 371,953 347,744 
Total liabilities and shareholders' equity$5,823,259 $5,343,302 $5,169,023 







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,
2024		June 30,
2024		September 30,
2023		September 30,
2024		September 30,
2023
Interest income
Loans$59,792 $57,094 $48,898 $172,321 $139,647 
Securities - taxable6,953 6,476 4,301 19,123 11,742 
Securities - non-taxable1,042 970 912 2,981 2,570 
Other earning assets7,203 6,421 8,904 19,691 19,211 
Total interest income74,990 70,961 63,015 214,116 173,170 
Interest expense
Deposits47,415 44,495 40,339 134,039 102,285 
Other borrowed funds5,810 5,139 5,298 16,251 15,788 
Total interest expense53,225 49,634 45,637 150,290 118,073 
Net interest income21,765 21,327 17,378 63,826 55,097 
Provision for credit losses3,390 4,031 1,946 9,869 13,059 
Net interest income after provision for credit losses18,375 17,296 15,432 53,957 42,038 
Noninterest income
Service charges and fees245 246 208 711 635 
Loan servicing revenue1,570 1,470 1,064 4,363 2,699 
Loan servicing asset revaluation(846)(829)(257)(2,109)(670)
Mortgage banking activities— — — — 76 
Gain on sale of loans9,933 8,292 5,569 24,761 14,498 
Other1,127 1,854 823 3,683 1,486 
Total noninterest income12,029 11,033 7,407 31,409 18,724 
Noninterest expense
Salaries and employee benefits13,456 12,462 11,767 37,714 34,267 
Marketing, advertising and promotion548 609 500 1,893 2,049 
Consulting and professional fees902 1,022 552 2,777 2,189 
Data processing675 606 701 1,845 1,880 
Loan expenses1,524 1,597 1,336 4,566 4,385 
Premises and equipment2,918 3,154 2,315 8,898 7,753 
Deposit insurance premium1,219 1,172 1,067 3,536 2,546 
Other1,552 1,714 1,518 4,924 4,311 
Total noninterest expense22,794 22,336 19,756 66,153 59,380 
Income before income taxes7,610 5,993 3,083 19,213 1,382 
Income tax provision (benefit)620 218 (326)1,267 (2,892)
Net income $6,990 $5,775 $3,409 $17,946 $4,274 
Per common share data
Earnings per share - basic$0.80 $0.67 $0.39 $2.07 $0.48 
Earnings per share - diluted$0.80 $0.67 $0.39 $2.05 $0.48 
Dividends declared per share$0.06 $0.06 $0.06 $0.18 $0.18 
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
September 30, 2024June 30, 2024September 30, 2023
Average BalanceInterest / DividendsYield / CostAverage BalanceInterest / DividendsYield / CostAverage BalanceInterest / DividendsYield / Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale 1
$4,029,360 $59,792 5.90 %$3,936,723 $57,094 5.83 %$3,701,072 $48,898 5.24 %
Securities - taxable713,992 6,953 3.87 %670,502 6,476 3.88 %550,208 4,301 3.10 %
Securities - non-taxable78,417 1,042 5.29 %74,035 970 5.27 %72,012 912 5.02 %
Other earning assets526,384 7,203 5.44 %469,045 6,421 5.51 %653,375 8,904 5.41 %
Total interest-earning assets5,348,153 74,990 5.58 %5,150,305 70,961 5.54 %4,976,667 63,015 5.02 %
Allowance for credit losses - loans(44,572)(41,362)(35,601)
Noninterest-earning assets220,329 223,833 196,408 
Total assets$5,523,910 $5,332,776 $5,137,474 
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits$511,446 $2,880 2.24 %$474,124 $2,567 2.18 %$387,517 $2,131 2.18 %
Savings accounts22,774 48 0.84 %22,987 48 0.84 %26,221 56 0.85 %
Money market accounts1,224,680 12,980 4.22 %1,243,011 13,075 4.23 %1,230,746 12,537 4.04 %
Fintech - brokered deposits153,012 1,682 4.37 %119,662 1,299 4.37 %31,891 348 4.33 %
Certificates and brokered deposits2,472,166 29,825 4.80 %2,313,192 27,506 4.78 %2,235,321 25,267 4.48 %
Total interest-bearing deposits4,384,078 47,415 4.30 %4,172,976 44,495 4.29 %3,911,696 40,339 4.09 %
Other borrowed funds620,032 5,810 3.73 %652,176 5,139 3.17 %719,655 5,298 2.92 %
Total interest-bearing liabilities5,004,110 53,225 4.23 %4,825,152 49,634 4.14 %4,631,351 45,637 3.91 %
Noninterest-bearing deposits113,009 116,939 127,540 
Other noninterest-bearing liabilities26,730 20,860 21,882 
Total liabilities5,143,849 4,962,951 4,780,773 
Shareholders' equity380,061 369,825 356,701 
Total liabilities and shareholders' equity$5,523,910 $5,332,776 $5,137,474 
Net interest income$21,765 $21,327 $17,378 
Interest rate spread1.35 %1.40 %1.11 %
Net interest margin1.62 %1.67 %1.39 %
Net interest margin - FTE 2,3
1.70 %1.76 %1.49 %
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, 2024September 30, 2023
Average BalanceInterest / DividendsYield / CostAverage BalanceInterest / DividendsYield / Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale 1
$3,953,170 $172,321 5.82 %$3,647,243 $139,647 5.12 %
Securities - taxable670,728 19,123 3.81 %531,197 11,742 2.96 %
Securities - non-taxable76,257 2,981 5.22 %72,829 2,570 4.72 %
Other earning assets476,697 19,691 5.52 %499,835 19,211 5.14 %
Total interest-earning assets5,176,852 214,116 5.52 %4,751,104 173,170 4.87 %
Allowance for credit losses - loans(41,526)(35,784)
Noninterest-earning assets220,165 190,590 
Total assets$5,355,491 $4,905,910 
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits$467,054 $7,538 2.16 %$360,573 $4,540 1.68 %
Savings accounts22,760 144 0.85 %31,494 202 0.86 %
Money market accounts1,228,538 38,727 4.21 %1,293,728 37,151 3.84 %
Fintech - brokered deposits119,470 3,912 4.37 %23,246 716 4.12 %
Certificates and brokered deposits2,344,272 83,718 4.77 %1,971,705 59,676 4.05 %
Total interest-bearing deposits4,182,094 134,039 4.28 %3,680,746 102,285 3.72 %
Other borrowed funds662,824 16,251 3.28 %719,577 15,788 2.93 %
Total interest-bearing liabilities4,844,918 150,290 4.14 %4,400,323 118,073 3.59 %
Noninterest-bearing deposits114,425 126,647 
Other noninterest-bearing liabilities23,037 19,535 
Total liabilities4,982,380 4,546,505 
Shareholders' equity373,111 359,405 
Total liabilities and shareholders' equity$5,355,491 $4,905,910 
Net interest income$63,826 $55,097 
Interest rate spread1.38 %1.28 %
Net interest margin1.65 %1.55 %
Net interest margin - FTE 2,3
1.74 %1.66 %
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, 2024June 30, 2024September 30, 2023
AmountPercentAmountPercentAmountPercent
Commercial loans
Commercial and industrial$111,199 2.8 %$115,585 2.9 %$114,265 3.1 %
Owner-occupied commercial real estate56,461 1.4 %58,089 1.5 %58,486 1.6 %
Investor commercial real estate260,614 6.5 %188,409 4.8 %129,831 3.5 %
Construction340,954 8.4 %328,922 8.3 %252,105 6.7 %
Single tenant lease financing932,148 23.1 %927,462 23.4 %933,873 25.0 %
Public finance462,730 11.5 %486,200 12.3 %535,960 14.3 %
Healthcare finance190,287 4.7 %202,079 5.1 %235,622 6.3 %
Small business lending 298,645 7.4 %270,129 6.8 %192,996 5.2 %
Franchise finance550,442 13.6 %551,133 13.9 %455,094 12.2 %
Total commercial loans3,203,480 79.4 %3,128,008 79.0 %2,908,232 77.9 %
Consumer loans
Residential mortgage378,701 9.4 %382,549 9.7 %393,501 10.5 %
Home equity20,264 0.5 %21,405 0.5 %23,544 0.6 %
Trailers205,230 5.1 %197,738 5.0 %186,424 5.0 %
Recreational vehicles150,378 3.7 %150,151 3.8 %140,205 3.8 %
Other consumer loans48,780 1.2 %48,638 1.2 %42,822 1.1 %
Total consumer loans803,353 19.9 %800,481 20.2 %786,496 21.0 %
Net deferred loan fees, premiums, discounts and other 1
29,047 0.7 %32,657 0.8 %40,340 1.1 %
Total loans$4,035,880 100.0 %$3,961,146 100.0 %$3,735,068 100.0 %
September 30, 2024June 30, 2024September 30, 2023
AmountPercentAmountPercentAmountPercent
Deposits
Noninterest-bearing deposits$111,591 2.3 %$126,438 3.0 %$125,265 3.1 %
Interest-bearing demand deposits538,484 11.2 %480,141 11.2 %374,915 9.2 %
Savings accounts21,712 0.5 %22,619 0.5 %23,811 0.6 %
Money market accounts1,230,707 25.7 %1,222,197 28.6 %1,222,511 29.9 %
Fintech - brokered deposits211,814 4.4 %140,180 3.3 %41,884 1.0 %
Certificates of deposits2,110,618 44.0 %1,829,644 42.8 %1,624,447 39.8 %
Brokered deposits 572,784 11.9 %452,703 10.6 %670,712 16.4 %
Total deposits$4,797,710 100.0 %$4,273,922 100.0 %$4,083,545 100.0 %

1 Includes carrying value adjustments of $24.1 million, $25.6 million and $29.0 million related to terminated interest rate swaps associated with public finance loans as of September 30, 2024, June 30, 2024 and September 30, 2023, respectively.








First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
Three Months EndedNine Months Ended
September 30,
2024		June 30,
2024		September 30,
2023		September 30,
2024		September 30,
2023
Total equity - GAAP$385,129 $371,953 $347,744 $385,129 $347,744 
Adjustments:
           Goodwill(4,687)(4,687)(4,687)(4,687)(4,687)
Tangible common equity$380,442 $367,266 $343,057 $380,442 $343,057 
Total assets - GAAP$5,823,259 $5,343,302 $5,169,023 $5,823,259 $5,169,023 
Adjustments:
           Goodwill(4,687)(4,687)(4,687)(4,687)(4,687)
Tangible assets$5,818,572 $5,338,615 $5,164,336 $5,818,572 $5,164,336 
Common shares outstanding8,667,894 8,667,894 8,669,673 8,667,894 8,669,673 
Book value per common share$44.43 $42.91 $40.11 $44.43 $40.11 
Effect of goodwill(0.54)(0.54)(0.54)(0.54)(0.54)
Tangible book value per common share$43.89 $42.37 $39.57 $43.89 $39.57 
Total shareholders' equity to assets6.61 %6.96 %6.73 %6.61 %6.73 %
Effect of goodwill(0.07 %)(0.08 %)(0.09 %)(0.07 %)(0.09 %)
Tangible common equity to tangible assets6.54 %6.88 %6.64 %6.54 %6.64 %
Total average equity - GAAP$380,061 $369,825 $356,701 $373,111 $359,405 
Adjustments:
           Average goodwill(4,687)(4,687)(4,687)(4,687)(4,687)
Average tangible common equity$375,374 $365,138 $352,014 $368,424 $354,718 
Return on average shareholders' equity7.32 %6.28 %3.79 %6.42 %1.59 %
Effect of goodwill0.09 %0.08 %0.05 %0.09 %0.02 %
Return on average tangible common equity7.41 %6.36 %3.84 %6.51 %1.61 %
Total interest income$74,990 $70,961 $63,015 $214,116 $173,170 
Adjustments:
Fully-taxable equivalent adjustments 1
1,133 1,175 1,265 3,498 3,995 
Total interest income - FTE$76,123 $72,136 $64,280 $217,614 $177,165 
Net interest income$21,765 $21,327 $17,378 $63,826 $55,097 
Adjustments:
Fully-taxable equivalent adjustments 1
1,133 1,175 1,265 3,498 3,995 
Net interest income - FTE$22,898 $22,502 $18,643 $67,324 $59,092 
Net interest margin1.62 %1.67 %1.39 %1.65 %1.55 %
Effect of fully-taxable equivalent adjustments 1
0.08 %0.09 %0.10 %0.09 %0.11 %
Net interest margin - FTE1.70 %1.76 %1.49 %1.74 %1.66 %
1Assuming a 21% tax rate







First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
Three Months EndedNine Months Ended
September 30,
2024		June 30,
2024		September 30,
2023		September 30,
2024		September 30,
2023
Total revenue - GAAP$33,794 $32,360 $24,785 $95,235 $73,821 
Adjustments:
     Mortgage-related revenue— — — — (65)
Adjusted total revenue$33,794 $32,360 $24,785 $95,235 $73,756 
Noninterest income - GAAP$12,029 $11,033 $7,407 $31,409 $18,724 
Adjustments:
     Mortgage-related revenue— — — — (65)
Adjusted noninterest income$12,029 $11,033 $7,407 $31,409 $18,659 
Noninterest expense - GAAP$22,794 $22,336 $19,756 $66,153 $59,380 
Adjustments:
     Mortgage-related costs— — — — (3,052)
     IT termination fees— (452)— (452)— 
     Anniversary expenses— (120)— (120)— 
Adjusted noninterest expense$22,794 $21,764 $19,756 $65,581 $56,328 
Income before income taxes - GAAP$7,610 $5,993 $3,083 $19,213 $1,382 
Adjustments:1
     Mortgage-related revenue— — — — (65)
     Mortgage-related costs— — — — 3,052 
     Partial charge-off of C&I participation loan— — — — 6,914 
     IT termination fees— 452 — 452 — 
     Anniversary expenses— 120 — 120 — 
Adjusted income before income taxes$7,610 $6,565 $3,083 $19,785 $11,283 
Income tax provision (benefit) - GAAP$620 $218 $(326)$1,267 $(2,892)
Adjustments:1
     Mortgage-related revenue— — — — (14)
     Mortgage-related costs— — — — 641 
     Partial charge-off of C&I participation loan— — — — 1,452 
     IT termination fees— 95 — 95 — 
     Anniversary expenses— 25 — 25 — 
Adjusted income tax provision (benefit)$620 $338 $(326)$1,387 $(813)
Net income - GAAP$6,990 $5,775 $3,409 $17,946 $4,274 
Adjustments:
     Mortgage-related revenue— — — — (51)
     Mortgage-related costs— — — — 2,411 
     Partial charge-off of C&I participation loan— — — — 5,462 
     IT termination fees— 357 — 357 — 
     Anniversary expenses— 95 — 95 — 
Adjusted net income$6,990 $6,227 $3,409 $18,398 $12,096 
1Assuming a 21% tax rate







First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
Three Months EndedNine Months Ended
September 30,
2024		June 30,
2024		September 30,
2023		September 30,
2024		September 30,
2023
Diluted average common shares outstanding8,768,731 8,656,215 8,767,217 8,756,544 8,907,748 
Diluted earnings per share - GAAP$0.80 $0.67 $0.39 $2.05 $0.48 
Adjustments:
    Effect of mortgage-related revenue— — — — (0.01)
    Effect of mortgage-related costs— — — — 0.27 
    Effect of partial charge-off of C&I participation loan— — — — 0.61 
    Effect of IT termination fees— 0.04 — 0.04 — 
    Effect of anniversary expenses— 0.01 — 0.01 — 
Adjusted diluted earnings per share$0.80 $0.72 $0.39 $2.10 $1.35 
Return on average assets0.50 %0.44 %0.26 %0.45 %0.12 %
    Effect of mortgage-related revenue0.00 %0.00 %0.00 %0.00 %0.00 %
    Effect of mortgage-related costs0.00 %0.00 %0.00 %0.00 %0.07 %
    Effect of partial charge-off of C&I participation loan0.00 %0.00 %0.00 %0.00 %0.15 %
    Effect of IT termination fees0.00 %0.03 %0.00 %0.01 %0.00 %
    Effect of anniversary expenses0.00 %0.01 %0.00 %0.00 %0.00 %
Adjusted return on average assets0.50 %0.48 %0.26 %0.46 %0.34 %
Return on average shareholders' equity7.32 %6.28 %3.79 %6.42 %1.59 %
    Effect of mortgage-related revenue0.00 %0.00 %0.00 %0.00 %(0.02 %)
    Effect of mortgage-related costs0.00 %0.00 %0.00 %0.00 %0.90 %
    Effect of partial charge-off of C&I participation loan0.00 %0.00 %0.00 %0.00 %2.03 %
    Effect of IT termination fees0.00 %0.39 %0.00 %0.13 %0.00 %
    Effect of anniversary expenses0.00 %0.10 %0.00 %0.03 %0.00 %
Adjusted return on average shareholders' equity7.32 %6.77 %3.79 %6.58 %4.50 %
Return on average tangible common equity7.41 %6.36 %3.84 %6.51 %1.61 %
    Effect of mortgage-related revenue0.00 %0.00 %0.00 %0.00 %(0.02 %)
    Effect of mortgage-related costs0.00 %0.00 %0.00 %0.00 %0.91 %
    Effect of partial charge-off of C&I participation loan0.00 %0.00 %0.00 %0.00 %2.06 %
    Effect of IT termination fees0.00 %0.39 %0.00 %0.13 %0.00 %
    Effect of anniversary expenses0.00 %0.10 %0.00 %0.03 %0.00 %
Adjusted return on average tangible common equity7.41 %6.85 %3.84 %6.67 %4.56 %