Document

“Our performance throughout 2024 reflects a year of remarkable growth and significantly improved performance,” said David Becker, Chairman and Chief Executive Officer. “Full year net income and earnings per share increased substantially from 2023, driven by growth in net interest income and greater gain on sale revenue from our small business lending business. Strong commercial loan growth, particularly in construction, investor commercial real estate and small business lending, enhanced our interest rate risk profile and drove loan yields higher. As a result, total revenue growth for the year far outpaced expense growth, driving significant operating leverage.

Total interest income for the fourth quarter of 2024 was $77.8 million, an increase of 3.7% compared to the third quarter of 2024, and an increase of 17.4% compared to the fourth quarter of 2023. On a fully taxable equivalent basis, total interest income for the fourth quarter of 2024 was $78.9 million, an increase of 3.7% compared to the third quarter of 2024, and an increase of 16.9% compared to the fourth quarter of 2023. The yield on average interest-earning assets for the fourth quarter of 2024 decreased to 5.52% from 5.58% for the third quarter of 2024 due to a 54 basis point (“bp”) decrease in the yield earned on other earning assets and a 3 bp decrease in the yield earned on securities, partially offset by a 3 bp increase in the yield earned on loans. Compared to the linked quarter, average loan balances, including loans held-for-sale, increased $99.8 million, or 2.5%, the average balance of securities increased $49.3 million, or 6.2%, and the average balance of other earning assets increased $110.0 million, or 20.9%.

Interest income earned on securities during the fourth quarter of 2024 increased $0.4 million, or 5.2%, compared to the third quarter of 2024 due to the increase in average balances, partially offset by a slight decrease in the yield earned on the portfolio. The yield on the securities portfolio decreased 3 bps to 3.98%, driven primarily by variable rate securities repricing lower following the Fed rate cuts and the maturity of an interest rate swap tied to the securities portfolio. Interest earned on other earning asset balances increased $0.6 million, or 8.8%, in the fourth quarter of 2024 compared to the linked quarter, due primarily to higher average cash balances, partially offset by the decrease in yields earned on those balances due to the Fed rate cuts.

The increase in interest expense was driven primarily by CDs as average balances increased $185.9 million, or 9.7%, compared to the linked quarter, driven by strong consumer demand, partially offset by a 4 bp decrease in the cost of funds. The decrease in the cost of funds for CDs is the second consecutive quarter of declining costs, reflecting the favorable repricing gap between new production and maturities. The weighted-average cost of new CDs during the fourth quarter of 2024 was 4.23%, or 78 bps lower than the cost of maturing CDs. Although medium-to-longer term treasury rates increased during the fourth quarter of 2024, the Company held CD pricing constant through most of the quarter and further lowered CD rates in December following the Fed’s rate cut that month. Additionally, the average balance of fintech – brokered deposits increased $55.5 million, or 36.3%, due to higher payments volume, partially offset by a 34 bp decrease in the cost of funds. Furthermore, the average balance of interest-bearing demand deposits increased $63.1 million, or 12.3%, which was almost completely offset by a decline of 23 bps in the cost of funds. During the fourth quarter of 2024, the Bank submitted a notice of reliance on the primary purpose exemption with the Federal Deposit Insurance Corporation related to fintech deposits that had been classified as brokered, and as of December 31, 2024, reclassified these deposits to interest-bearing demand deposits.

These increases were partially offset by a decline in interest expense related to money market accounts and brokered deposits. While the average balance of money market accounts increased slightly, the cost of funds decreased 26 bps. Similarly, the average balance of brokered deposits increased during the fourth quarter, which was more than offset by a decline of 30 bps in the cost of funds. The decline in the cost of money market accounts and brokered deposits was driven primarily by the Fed rate cuts in the third and fourth quarters of 2024. Additionally, the Company paid down higher- cost brokered CD issuances during the fourth quarter of 2024.

Net interest margin (“NIM”) was 1.67% for the fourth quarter of 2024, up from 1.62% for the third quarter of 2024, and up from 1.58% for the fourth quarter of 2023. Fully taxable equivalent NIM (“FTE NIM”) was 1.75% for the fourth quarter of 2024, up from 1.70% for the third quarter of 2024, and up from 1.68% for the fourth quarter of 2023. The increases in NIM and FTE NIM compared to the linked quarter were due to the decline in the cost of interest-bearing liabilities outpacing the decrease in the yield on interest-earning assets following the Fed rate cuts that began in late September of 2024.

Noninterest income for the fourth quarter of 2024 was $15.9 million, up from $12.0 million in the third quarter of 2024, and up from $7.4 million in the fourth quarter of 2023. During the fourth quarter of 2024, the Company recognized $4.7 million of prepayment and terminated interest rate swap gains related to the paydown of FHLB advances. Excluding these gains, adjusted noninterest income for the quarter was $11.2 million, down 6.9% from the third quarter of 2024. Gain on sale of loans totaled $8.6 million for the fourth quarter of 2024, down $1.4 million, or 13.7%, from 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 fourth quarter of 2024. SBA loan sale volume during the fourth quarter of 2024 was down 18.5% compared to the third quarter of 2024, while net premiums increased 30 bps. The decline in loan sale volume was due mainly to a timing issue as a significant portion of originations during the quarter closed late in December and will not be sold in the secondary market until January of 2025. The decline in gain-on-sale revenue was partially offset by higher net loan servicing revenue, which increased $0.7 million, due primarily to growth in the servicing portfolio and a lower fair value adjustment to the loan servicing asset.

Noninterest expense totaled $24.0 million for the fourth quarter of 2024, compared to $22.8 million for the third quarter of 2024, and $20.1 million for the fourth quarter of 2023, representing increases of 5.1% and 19.5%, respectively. The increase of $1.2 million compared to the linked quarter was due primarily to higher salaries and employee benefits, other noninterest expense and deposit insurance premium. The increase in salaries and employee benefits was driven by staff additions in small business lending, risk management and information technology as the Company continues to invest in key areas. The increase in other noninterest expense was due to seasonal expenses while the increase in deposit insurance premium was due mainly to year-over-year asset growth.

Total loans as of December 31, 2024, were $4.2 billion, an increase of $134.8 million, or 3.3%, compared to September 30, 2024, and an increase of $330.4 million, or 8.6%, compared to December 31, 2023. Total commercial loan balances were $3.3 billion as of December 31, 2024, an increase of $139.1 million, or 4.3%, compared to September 30, 2024, and an increase of $336.7 million, or 11.2%, compared to December 31, 2023. During the fourth quarter of 2024, the Company experienced strong growth across most of its commercial lines of business with notable contributions from construction, small business lending, public finance and single tenant lease financing.

Nonperforming loans were 0.68% of total loans as of December 31, 2024, compared to 0.56% as of September 30, 2024, and 0.26% as of December 31, 2023. Nonperforming loans totaled $28.4 million at December 31, 2024, up from $22.5 million at September 30, 2024, and up from $10.0 million at December 31, 2023. The increase in nonperforming loans during the fourth 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 $8.2 million of specific reserves held against the balance of nonperforming loans.

Net charge-offs of $9.4 million were recognized during the fourth quarter of 2024, resulting in net charge-offs to average loans of 0.91%, compared to $1.5 million, or 0.15%, for the third quarter of 2024 and $1.2 million, or 0.12%, for the fourth quarter of 2023. Net charge-offs in the fourth quarter of 2024 were elevated as the Company took action to resolve problem small business lending loans and de-risk the portfolio. Approximately $3.4 million of net charge-offs recognized during the quarter were related to small business lending loans with existing specific reserves.

As of December 31, 2024, total shareholders’ equity was $384.1 million, a decrease of $1.1 million, or 0.3%, compared to September 30, 2024, and an increase of $21.3 million, or 5.9%, compared to December 31, 2023. The modest decrease in shareholders’ equity during the fourth quarter of 2024 compared to the linked quarter was due primarily to an increase in accumulated other comprehensive loss driven by higher intermediate and long-term interest rates at quarter end, partially offset by the net income earned during the quarter. Book value per common share was $44.31 as of December 31, 2024, down from $44.43 as of September 30, 2024, and up from $41.97 as of December 31, 2023. Tangible book value per share was $43.77, down from $43.89 as of September 30, 2024, and up from $41.43 as of December 31, 2023.


	As of December 31, 2024
	Company		Bank

Total shareholders' equity to assets	6.69	%	8.01	%
Tangible common equity to tangible assets 1	6.62	%	7.93	%
Tier 1 leverage ratio 2	6.91	%	8.22	%
Common equity tier 1 capital ratio 2	9.30	%	11.06	%
Tier 1 capital ratio 2	9.30	%	11.06	%
Total risk-based capital ratio 2	12.61	%	12.11	%

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.

First Internet Bancorp is a bank holding company with assets of $5.7 billion as of December 31, 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.

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,” “estimate,” “expect,” “growth,” “help,” "improve,” “may,” “ongoing,” “opportunities,” “pending,” “plan,” “position,” “preliminary,” “remain,” “should,” “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

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.”


First Internet Bancorp
Summary Financial Information (unaudited)
Dollar amounts in thousands, except per share data
	Three Months Ended									Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023

Net income	$	7,330		$	6,990		$	4,143		$	25,276		$	8,417

Per share and share information
Earnings per share - basic	$	0.84		$	0.80		$	0.48		$	2.91		$	0.95
Earnings per share - diluted	0.83			0.80			0.48			2.88			0.95
Dividends declared per share	0.06			0.06			0.06			0.24			0.24
Book value per common share	44.31			44.43			41.97			44.31			41.97
Tangible book value per common share 1	43.77			43.89			41.43			43.77			41.43
Common shares outstanding	8,667,894			8,667,894			8,644,451			8,667,894			8,644,451
Average common shares outstanding:
Basic	8,696,704			8,696,634			8,683,331			8,690,416			8,837,558
Diluted	8,788,793			8,768,731			8,720,078			8,765,725			8,858,890
Performance ratios
Return on average assets	0.50		%	0.50		%	0.32		%	0.46		%	0.17		%
Return on average shareholders' equity	7.49		%	7.32		%	4.66		%	6.70		%	2.35		%
Return on average tangible common equity 1	7.58		%	7.41		%	4.72		%	6.78		%	2.38		%
Net interest margin	1.67		%	1.62		%	1.58		%	1.65		%	1.56		%
Net interest margin - FTE 1,2	1.75		%	1.70		%	1.68		%	1.74		%	1.67		%
Capital ratios 3
Total shareholders' equity to assets	6.69		%	6.61		%	7.02		%	6.69		%	7.02		%
Tangible common equity to tangible assets 1	6.62		%	6.54		%	6.94		%	6.62		%	6.94		%
Tier 1 leverage ratio	6.91		%	7.13		%	7.33		%	6.91		%	7.33		%
Common equity tier 1 capital ratio	9.30		%	9.37		%	9.60		%	9.30		%	9.60		%
Tier 1 capital ratio	9.30		%	9.37		%	9.60		%	9.30		%	9.60		%
Total risk-based capital ratio	12.61		%	12.79		%	13.23		%	12.61		%	13.23		%
Asset quality
Nonperforming loans	$	28,421		$	22,478		$	9,962		$	28,421		$	9,962
Nonperforming assets	28,905			22,944			10,354			28,905			10,354
Nonperforming loans to loans	0.68		%	0.56		%	0.26		%	0.68		%	0.26		%
Nonperforming assets to total assets	0.50		%	0.39		%	0.20		%	0.50		%	0.20		%
Allowance for credit losses - loans to:
Loans	1.07		%	1.13		%	1.01		%	1.07		%	1.01		%

Nonperforming loans	157.5		%	203.4		%	389.2		%	157.5		%	389.2		%
Net charge-offs to average loans	0.91		%	0.15		%	0.12		%	0.32		%	0.31		%
Average balance sheet information
Loans	$	4,123,510		$	4,022,196		$	3,799,211		$	3,992,031		$	3,682,490
Total securities	841,700			792,409			683,468			770,793			624,050
Other earning assets	636,377			526,384			500,733			516,836			500,061
Total interest-earning assets	5,607,195			5,348,153			4,984,133			5,285,026			4,809,840
Total assets	5,782,116			5,523,910			5,154,285			5,462,730			4,968,514
Noninterest-bearing deposits	114,311			113,009			123,351			114,396			125,816
Interest-bearing deposits	4,726,449			4,384,078			3,935,519			4,318,926			3,744,964
Total deposits	4,840,760			4,497,087			4,058,870			4,433,322			3,870,780
Shareholders' equity	389,435			380,061			353,037			377,215			357,800


First Internet Bancorp
Condensed Consolidated Balance Sheets (unaudited, except for December 31, 2023)
Dollar amounts in thousands
	December 31, 2024		September 30, 2024		December 31, 2023
Assets
Cash and due from banks	$	9,249	$	6,539	$	8,269
Interest-bearing deposits	457,161		705,940		397,629
Securities available-for-sale, at fair value	587,355		575,257		474,855
Securities held-to-maturity, at amortized cost, net of allowance for credit losses	249,796		263,320		227,153
Loans held-for-sale	54,695		32,996		22,052
Loans	4,170,646		4,035,880		3,840,220
Allowance for credit losses - loans	(44,769)		(45,721)		(38,774)
Net loans	4,125,877		3,990,159		3,801,446
Accrued interest receivable	28,180		27,750		26,746
Federal Home Loan Bank of Indianapolis stock	28,350		28,350		28,350
Cash surrender value of bank-owned life insurance	41,394		41,111		40,882
Premises and equipment, net	71,453		72,150		73,463
Goodwill	4,687		4,687		4,687
Servicing asset	16,389		14,662		10,567
Other real estate owned	272		251		375
Accrued income and other assets	63,001		60,087		51,098
Total assets	$	5,737,859	$	5,823,259	$	5,167,572

Liabilities
Noninterest-bearing deposits	$	136,451	$	111,591	$	123,464
Interest-bearing deposits	4,796,755		4,686,119		3,943,509
Total deposits	4,933,206		4,797,710		4,066,973
Advances from Federal Home Loan Bank	295,000		515,000		614,934
Subordinated debt	105,150		105,071		104,838
Accrued interest payable	2,495		2,808		3,848
Accrued expenses and other liabilities	17,945		17,541		14,184
Total liabilities	5,353,796		5,438,130		4,804,777
Shareholders' equity
Voting common stock	186,094		185,631		184,700
Retained earnings	230,622		223,824		207,470
Accumulated other comprehensive loss	(32,653)		(24,326)		(29,375)
Total shareholders' equity	384,063		385,129		362,795
Total liabilities and shareholders' equity	$	5,737,859	$	5,823,259	$	5,167,572


First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited, except for the twelve months ended December 31, 2023)
Dollar amounts in thousands, except per share data
	Three Months Ended						Twelve Months Ended
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Interest income
Loans	$	61,523	$	59,792	$	52,690	$	233,844	$	192,337
Securities - taxable	7,619		6,953		5,447		26,742		17,189
Securities - non-taxable	794		1,042		962		3,775		3,532
Other earning assets	7,835		7,203		7,173		27,526		26,384
Total interest income	77,771		74,990		66,272		291,887		239,442
Interest expense
Deposits	49,111		47,415		41,078		183,150		143,363
Other borrowed funds	5,109		5,810		5,387		21,360		21,175
Total interest expense	54,220		53,225		46,465		204,510		164,538
Net interest income	23,551		21,765		19,807		87,377		74,904
Provision for credit losses	7,201		3,390		3,594		17,070		16,653
Net interest income after provision for credit losses	16,350		18,375		16,213		70,307		58,251
Noninterest income
Service charges and fees	248		245		216		959		851
Loan servicing revenue	1,825		1,570		1,134		6,188		3,833
Loan servicing asset revaluation	(428)		(846)		(793)		(2,537)		(1,463)
Mortgage banking activities	—		—		—		—		76

Gain on sale of loans	8,568		9,933		6,028		33,329		20,526


Other	5,723		1,127		816		9,406		2,302
Total noninterest income	15,936		12,029		7,401		47,345		26,125
Noninterest expense
Salaries and employee benefits	14,042		13,456		11,055		51,756		45,322
Marketing, advertising and promotion	696		548		518		2,589		2,567
Consulting and professional fees	967		902		893		3,744		3,082
Data processing	603		675		493		2,448		2,373
Loan expenses	1,381		1,524		1,371		5,947		5,756
Premises and equipment	3,004		2,918		2,846		11,902		10,599
Deposit insurance premium	1,464		1,219		1,334		5,000		3,880

Other	1,800		1,552		1,546		6,724		5,857
Total noninterest expense	23,957		22,794		20,056		90,110		79,436
Income before income taxes	8,329		7,610		3,558		27,542		4,940
Income tax provision (benefit)	999		620		(585)		2,266		(3,477)
Net income	$	7,330	$	6,990	$	4,143	$	25,276	$	8,417

Per common share data
Earnings per share - basic	$	0.84	$	0.80	$	0.48	$	2.91	$	0.95
Earnings per share - diluted	$	0.83	$	0.80	$	0.48	$	2.88	$	0.95
Dividends declared per share	$	0.06	$	0.06	$	0.06	$	0.24	$	0.24


First Internet Bancorp
Average Balances and Rates (unaudited)
Dollar amounts in thousands
	Three Months Ended
	December 31, 2024						September 30, 2024						December 31, 2023
	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	$	4,129,118	$	61,523	5.93	%	$	4,029,360	$	59,792	5.90	%	$	3,799,932	$	52,690	5.50	%
Securities - taxable	758,560		7,619		4.00	%	713,992		6,953		3.87	%	611,664		5,447		3.53	%
Securities - non-taxable	83,140		794		3.80	%	78,417		1,042		5.29	%	71,804		962		5.32	%
Other earning assets	636,377		7,835		4.90	%	526,384		7,203		5.44	%	500,733		7,173		5.68	%
Total interest-earning assets	5,607,195		77,771		5.52	%	5,348,153		74,990		5.58	%	4,984,133		66,272		5.28	%
Allowance for credit losses - loans	(46,427)						(44,572)						(36,792)
Noninterest-earning assets	221,348						220,329						206,944
Total assets	$	5,782,116					$	5,523,910					$	5,154,285

Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits	$	574,577	$	2,910	2.01	%	$	511,446	$	2,880	2.24	%	$	382,427	$	1,646	1.71	%
Savings accounts	21,072		45		0.85	%	22,774		48		0.84	%	22,394		48		0.85	%
Money market accounts	1,236,116		12,309		3.96	%	1,224,680		12,980		4.22	%	1,225,781		12,739		4.12	%
Fintech - brokered deposits	208,545		2,111		4.03	%	153,012		1,682		4.37	%	62,098		685		4.38	%
Certificates and brokered deposits	2,686,139		31,736		4.70	%	2,472,166		29,825		4.80	%	2,242,819		25,960		4.59	%
Total interest-bearing deposits	4,726,449		49,111		4.13	%	4,384,078		47,415		4.30	%	3,935,519		41,078		4.14	%
Other borrowed funds	528,806		5,109		3.84	%	620,032		5,810		3.73	%	719,733		5,387		2.97	%
Total interest-bearing liabilities	5,255,255		54,220		4.10	%	5,004,110		53,225		4.23	%	4,655,252		46,465		3.96	%
Noninterest-bearing deposits	114,311						113,009						123,351
Other noninterest-bearing liabilities	23,115						26,730						22,645
Total liabilities	5,392,681						5,143,849						4,801,248
Shareholders' equity	389,435						380,061						353,037
Total liabilities and shareholders' equity	$	5,782,116					$	5,523,910					$	5,154,285

Net interest income			$	23,551					$	21,765					$	19,807

Interest rate spread					1.42	%					1.35	%					1.32	%
Net interest margin					1.67	%					1.62	%					1.58	%
Net interest margin - FTE 2,3					1.75	%					1.70	%					1.68	%


First Internet Bancorp
Average Balances and Rates (unaudited)
Dollar amounts in thousands
	Twelve Months Ended
	December 31, 2024						December 31, 2023
	Average Balance		Interest / Dividends		Yield/Cost		Average Balance		Interest / Dividends		Yield / Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale 1	$	3,997,397	$	233,844	5.85	%	$	3,685,729	$	192,337	5.22	%
Securities - taxable	692,806		26,742		3.86	%	551,479		17,189		3.12	%
Securities - non-taxable	77,987		3,775		4.84	%	72,571		3,532		4.87	%
Other earning assets	516,836		27,526		5.33	%	500,061		26,384		5.28	%
Total interest-earning assets	5,285,026		291,887		5.52	%	4,809,840		239,442		4.98	%
Allowance for credit losses - loans	(42,758)						(36,038)
Noninterest-earning assets	220,462						194,712
Total assets	$	5,462,730					$	4,968,514

Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits	$	494,082	$	10,448	2.11	%	$	366,082	$	6,186	1.69	%
Savings accounts	22,336		189		0.85	%	29,200		249		0.85	%
Money market accounts	1,230,443		51,036		4.15	%	1,276,602		49,890		3.91	%
Fintech - brokered deposits	141,860		6,023		4.25	%	33,039		1,402		4.24	%
Certificates and brokered deposits	2,430,205		115,454		4.75	%	2,040,041		85,636		4.20	%
Total interest-bearing deposits	4,318,926		183,150		4.24	%	3,744,964		143,363		3.83	%
Other borrowed funds	629,137		21,360		3.40	%	719,617		21,175		2.94	%
Total interest-bearing liabilities	4,948,063		204,510		4.13	%	4,464,581		164,538		3.69	%
Noninterest-bearing deposits	114,396						125,816
Other noninterest-bearing liabilities	23,056						20,317
Total liabilities	5,085,515						4,610,714
Shareholders' equity	377,215						357,800
Total liabilities and shareholders' equity	$	5,462,730					$	4,968,514

Net interest income			$	87,377					$	74,904

Interest rate spread					1.39	%					1.29	%
Net interest margin					1.65	%					1.56	%
Net interest margin - FTE 2,3					1.74	%					1.67	%


First Internet Bancorp
Loans and Deposits (unaudited)
Dollar amounts in thousands
	December 31, 2024				September 30, 2024				December 31, 2023
	Amount		Percent		Amount		Percent		Amount		Percent
Commercial loans
Commercial and industrial	$	120,175	2.9	%	$	111,199	2.8	%	$	129,349	3.4	%
Owner-occupied commercial real estate	53,591		1.3	%	56,461		1.4	%	57,286		1.5	%
Investor commercial real estate	269,431		6.5	%	260,614		6.5	%	132,077		3.4	%
Construction	413,523		9.9	%	340,954		8.4	%	261,750		6.8	%
Single tenant lease financing	949,748		22.7	%	932,148		23.1	%	936,616		24.4	%
Public finance	485,867		11.6	%	462,730		11.5	%	521,764		13.6	%
Healthcare finance	181,427		4.4	%	190,287		4.7	%	222,793		5.8	%
Small business lending	331,914		8.0	%	298,645		7.4	%	218,506		5.7	%
Franchise finance	536,909		12.9	%	550,442		13.6	%	525,783		13.7	%
Total commercial loans	3,342,585		80.2	%	3,203,480		79.4	%	3,005,924		78.3	%

Consumer loans
Residential mortgage	375,160		9.0	%	378,701		9.4	%	395,648		10.3	%
Home equity	18,274		0.4	%	20,264		0.5	%	23,669		0.6	%
Trailers	210,575		5.0	%	205,230		5.1	%	188,763		4.9	%
Recreational vehicles	149,342		3.6	%	150,378		3.7	%	145,558		3.8	%
Other consumer loans	48,030		1.2	%	48,780		1.2	%	43,293		1.1	%
Total consumer loans	801,381		19.2	%	803,353		19.9	%	796,931		20.7	%

Net deferred loan fees, premiums, discounts and other 1	26,680		0.6	%	29,047		0.7	%	37,365		1.0	%

Total loans	$	4,170,646	100.0	%	$	4,035,880	100.0	%	$	3,840,220	100.0	%

	December 31, 2024				September 30, 2024				December 31, 2023
	Amount		Percent		Amount		Percent		Amount		Percent
Deposits
Noninterest-bearing deposits	$	136,451	2.8	%	$	111,591	2.3	%	$	123,464	3.0	%
Interest-bearing demand deposits	896,661		18.2	%	538,484		11.2	%	402,976		9.9	%
Savings accounts	19,823		0.4	%	21,712		0.5	%	21,364		0.5	%
Money market accounts	1,183,789		24.0	%	1,230,707		25.7	%	1,248,319		30.8	%
Fintech - brokered deposits	—		0.0	%	211,814		4.4	%	74,401		1.8	%
Certificates of deposits	2,133,455		43.2	%	2,110,618		44.0	%	1,605,156		39.5	%
Brokered deposits	563,027		11.4	%	572,784		11.9	%	591,293		14.5	%
Total deposits	$	4,933,206	100.0	%	$	4,797,710	100.0	%	$	4,066,973	100.0	%


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, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023

Total equity - GAAP	$	384,063		$	385,129		$	362,795		$	384,063		$	362,795
Adjustments:
Goodwill	(4,687)			(4,687)			(4,687)			(4,687)			(4,687)
Tangible common equity	$	379,376		$	380,442		$	358,108		$	379,376		$	358,108

Total assets - GAAP	$	5,737,859		$	5,823,259		$	5,167,572		$	5,737,859		$	5,167,572
Adjustments:
Goodwill	(4,687)			(4,687)			(4,687)			(4,687)			(4,687)
Tangible assets	$	5,733,172		$	5,818,572		$	5,162,885		$	5,733,172		$	5,162,885

Common shares outstanding	8,667,894			8,667,894			8,644,451			8,667,894			8,644,451

Book value per common share	$	44.31		$	44.43		$	41.97		$	44.31		$	41.97
Effect of goodwill	(0.54)			(0.54)			(0.54)			(0.54)			(0.54)
Tangible book value per common share	$	43.77		$	43.89		$	41.43		$	43.77		$	41.43

Total shareholders' equity to assets	6.69		%	6.61		%	7.02		%	6.69		%	7.02		%
Effect of goodwill	(0.07		%)	(0.07		%)	(0.08		%)	(0.07		%)	(0.08		%)
Tangible common equity to tangible assets	6.62		%	6.54		%	6.94		%	6.62		%	6.94		%

Total average equity - GAAP	$	389,435		$	380,061		$	353,037		$	377,215		$	357,800
Adjustments:
Average goodwill	(4,687)			(4,687)			(4,687)			(4,687)			(4,687)
Average tangible common equity	$	384,748		$	375,374		$	348,350		$	372,528		$	353,113

Return on average shareholders' equity	7.49		%	7.32		%	4.66		%	6.70		%	2.35		%
Effect of goodwill	0.09		%	0.09		%	0.06		%	0.08		%	0.03		%
Return on average tangible common equity	7.58		%	7.41		%	4.72		%	6.78		%	2.38		%

Total interest income	$	77,771		$	74,990		$	66,272		$	291,887		$	239,442
Adjustments:
Fully-taxable equivalent adjustments 1	1,152			1,133			1,238			4,650			5,233
Total interest income - FTE	$	78,923		$	76,123		$	67,510		$	296,537		$	244,675






Net interest income	$	23,551		$	21,765		$	19,807		$	87,377		$	74,904
Adjustments:
Fully-taxable equivalent adjustments 1	1,152			1,133			1,238			4,650			5,233
Net interest income - FTE	$	24,703		$	22,898		$	21,045		$	92,027		$	80,137














Net interest margin	1.67		%	1.62		%	1.58		%	1.65		%	1.56		%
Effect of fully-taxable equivalent adjustments 1	0.08		%	0.08		%	0.10		%	0.09		%	0.11		%
Net interest margin - FTE	1.75		%	1.70		%	1.68		%	1.74		%	1.67		%

Total revenue - GAAP	$	39,487		$	33,794		$	27,208		$	134,722		$	101,029
Adjustments:
Mortgage-related revenue	—			—			—			—			(65)
Gain on prepayment of FHLB advances	(1,829)			—			—			(1,829)			—
Gain on termination of swaps	(2,904)			—			—			(2,904)			—
Adjusted total revenue	$	34,754		$	33,794		$	27,208		$	129,989		$	100,964

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, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023






Noninterest income - GAAP	$	15,936	$	12,029	$	7,401	$	47,345	$	26,125
Adjustments:
Mortgage-related revenue	—		—		—		—		(65)
Gain on prepayment of FHLB advances	(1,829)		—		—		(1,829)		—
Gain on termination of swaps	(2,904)		—		—		(2,904)		—
Adjusted noninterest income	$	11,203	$	12,029	$	7,401	$	42,612	$	26,060


Noninterest expense - GAAP	$	23,957	$	22,794	$	20,056	$	90,110	$	79,436
Adjustments:
Mortgage-related costs	—		—		—		—		(3,052)


IT Termination fee	—		—		—		(452)		—

Anniversary expenses	—		—		—		(120)		—

Adjusted noninterest expense	$	23,957	$	22,794	$	20,056	$	89,538	$	76,384

Income before income taxes - GAAP	$	8,329	$	7,610	$	3,558	$	27,542	$	4,940
Adjustments:1
Mortgage-related revenue	—		—		—		—		(65)
Mortgage-related costs	—		—		—		—		3,052
Partial charge-off of C&I participation loan	—		—		—		—		6,914
IT Termination fee	—		—		—		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 before income taxes	$	3,596	$	7,610	$	3,558	$	23,381	$	14,841

Income tax provision (benefit) - GAAP	$	999	$	620	$	(585)	$	2,266	$	(3,477)
Adjustments:1
Mortgage-related revenue	—		—		—		—		(14)
Mortgage-related costs	—		—		—		—		641
Partial charge-off of C&I participation loan	—		—		—		—		1,452
IT Termination fee	—		—		—		95		—
Anniversary expenses	—		—		—		25		—
Gain on prepayment of FHLB advances	(384)		—		—		(384)		—
Gain on termination of swaps	(610)		—		—		(610)		—



Adjusted income tax provision (benefit)	$	5	$	620	$	(585)	$	1,392	$	(1,398)
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, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023

Net income - GAAP	$	7,330		$	6,990		$	4,143		$	25,276		$	8,417
Adjustments:
Mortgage-related revenue	—			—			—			—			(51)
Mortgage-related costs	—			—			—			—			2,411
Partial charge-off of C&I participation loan	—			—			—			—			5,462
IT Termination fee	—			—			—			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	$	3,591		$	6,990		$	4,143		$	21,989		$	16,239

Diluted average common shares outstanding	8,788,793			8,768,731			8,720,078			8,765,725			8,858,890

Diluted earnings per share - GAAP	$	0.83		$	0.80		$	0.48		$	2.88		$	0.95
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	—			—			—			—			0.62
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 per share	$	0.41		$	0.80		$	0.48		$	2.51		$	1.83

Return on average assets	0.50		%	0.50		%	0.32		%	0.46		%	0.17		%
Effect of mortgage-related revenue	0.00		%	0.00		%	0.00		%	0.00		%	0.00		%
Effect of mortgage-related costs	0.00		%	0.00		%	0.00		%	0.00		%	0.05		%
Effect of partial charge-off of C&I participation loan	0.00		%	0.00		%	0.00		%	0.01		%	0.11		%
Effect of IT termination fees	0.00		%	0.00		%	0.00		%	0.00		%	0.00		%
Effect of anniversary expenses	0.00		%	0.00		%	0.00		%	0.00		%	0.00		%
Effect of gain on prepayment of FHLB advances	(0.10		%)	0.00		%	0.00		%	(0.03		%)	0.00		%
Effect of gain on termination of swaps	(0.16		%)	0.00		%	0.00		%	(0.04		%)	0.00		%



Adjusted return on average assets	0.24		%	0.50		%	0.32		%	0.40		%	0.33		%


Return on average shareholders' equity	7.49		%	7.32		%	4.66		%	6.70		%	2.35		%
Effect of mortgage-related revenue	0.00		%	0.00		%	0.00		%	0.00		%	(0.01		%)
Effect of mortgage-related costs	0.00		%	0.00		%	0.00		%	0.00		%	0.67		%
Effect of partial charge-off of C&I participation loan	0.00		%	0.00		%	0.00		%	0.00		%	1.53		%
Effect of IT termination fees	0.00		%	0.00		%	0.00		%	0.09		%	0.00		%
Effect of anniversary expenses	0.00		%	0.00		%	0.00		%	0.03		%	0.00		%
Effect of gain on prepayment of FHLB advances	(1.48		%)	0.00		%	0.00		%	(0.38		%)	0.00		%
Effect of gain on termination of swaps	(2.34		%)	0.00		%	0.00		%	(0.61		%)	0.00		%



Adjusted return on average shareholders' equity	3.67		%	7.32		%	4.66		%	5.83		%	4.54		%


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, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023

Return on average tangible common equity	7.58	%	7.41	%	4.72	%	6.78	%	2.38	%
Effect of mortgage-related revenue	0.00	%	0.00	%	0.00	%	0.00	%	(0.01	%)
Effect of mortgage-related costs	0.00	%	0.00	%	0.00	%	0.00	%	0.68	%
Effect of partial charge-off of C&I participation loan	0.00	%	0.00	%	0.00	%	0.00	%	1.55	%
Effect of IT termination fees	0.00	%	0.00	%	0.00	%	0.10	%	0.00	%
Effect of anniversary expenses	0.00	%	0.00	%	0.00	%	0.03	%	0.00	%
Effect of gain on prepayment of FHLB advances	(1.49	%)	0.00	%	0.00	%	(0.39	%)	0.00	%
Effect of gain on termination of swaps	(2.37	%)	0.00	%	0.00	%	(0.62	%)	0.00	%



Adjusted return on average tangible common equity	3.72	%	7.41	%	4.72	%	5.90	%	4.60	%


Contact Information:
Investors/Analysts						Media
Paula Deemer						Panblast
Director of Corporate Administration						Zach Weismiller
(317) 428-4628						firstib@panblastpr.com
investors@firstib.com