Core Viewpoint - First Internet Bancorp (NASDAQ: INBK) has faced recent profitability pressures, yet the investment group European Small Cap Ideas continues to focus on high-quality small-cap investment opportunities, emphasizing capital gains and dividend income [1] Group 1 - The investment group offers exclusive access to actionable research on appealing Europe-focused investment opportunities not found elsewhere [1] - The focus is on high-quality ideas in the small-cap space, with an emphasis on capital gains and dividend income for continuous cash flow [1] - Features of the investment group include two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Exact Name of Registrant as Specified in Its Charter) (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From ________ to ________. Commission File Number 001-35750 First Internet Bancorp This Quarterly Report on F ...

Financial Data and Key Metrics Changes - In Q2 2025, interest income increased while interest expense decreased, resulting in a net interest margin on a tax-effective basis rising above 2% [6][22] - Diluted earnings per share for the quarter were reported at $0.02, attributed mainly to credit issues and changes in noninterest income [6][7] - Net interest income for Q2 was $28 million, up 11.5% from the previous quarter, with net interest margin improving to 1.96% [22][24] Business Line Data and Key Metrics Changes - The franchise finance portfolio saw $12.6 million of loans moved to nonperforming status, with specific reserves of approximately $4.5 million [9] - In the SBA lending business, the company has originated $1.8 billion in small business loans since 2020, with improvements noted in the portfolio as loans on nonaccrual decreased [13][15] - Noninterest income for the quarter was $5.6 million, which included a $1.6 million gain on the sale of SBA loans, down from the previous quarter [18] Market Data and Key Metrics Changes - The overall credit quality remains sound, with nonperforming loans to total loans at 1%, consistent with industry norms [8] - Delinquencies across loan portfolios improved to 62 basis points, a 15 basis point improvement over the last 90 days [8] - The company expects to see noninterest income increase to around $13.3 million in both Q3 and Q4, driven by an increase in loan sales [25] Company Strategy and Development Direction - The company is focused on improving net interest margin and income through higher loan yields and lower deposit costs, with expectations of continued growth in the loan portfolio [24][27] - The management is optimistic about the outlook for 2026, anticipating growth in income-generating loan verticals and small business lending [27] - The company has adjusted its underwriting criteria in response to economic conditions, particularly in the SBA lending space [14][70] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the economic uncertainty but expressed confidence in the strategies in place to drive net interest margin growth [24][98] - The company is taking a conservative approach to provisions for loan losses, expecting them to remain elevated compared to historical levels [26][56] - Management noted that the pace of new delinquencies has slowed, indicating promising signs for future improvement [11][56] Other Important Information - The company has a strong pipeline for SBA loans, with expectations to exceed previous lending goals [70] - The management highlighted the importance of maintaining capital ratios while considering share repurchase options [62][81] - The company has seen significant growth in fintech partnerships, contributing to deposit growth and overall revenue [78][80] Q&A Session Summary Question: Provision guidance for the back half of this year and next year - Management expressed hope that the provision levels would not be needed but maintained a cautious approach to avoid underestimating future credit stress [32][34] Question: Insights on SBA lending and industry changes - Management clarified that recent changes to industry standards have not negatively impacted demand for SBA loans, and they continue to see strong pipelines [36][38] Question: Breakdown of charge-offs and future expectations - Management indicated that charge-offs have been higher in the SBA portfolio, but they expect the charge-off trajectory to improve moving forward [50][56] Question: Willingness to lend and current lending goals - Management confirmed that they are on track to meet and potentially exceed their lending goals in the SBA space, focusing on high-quality loans [70][72] Question: Expense outlook and variability - Management noted that compensation, particularly related to SBA and construction commissions, is the most variable line item affecting expenses [86][88]

Financial Performance - Net income was $0.2 million and diluted EPS was $0.02[15] - Total revenue reached $33.5 million, a decrease of 5.6% from 1Q25 but an increase of 3.7% from 2Q24[15] - Pre-tax, pre-provision income was $11.7 million, down 1.8% from 1Q25 but up 17.2% from 2Q24[15] - Net interest margin was 1.96%, and FTE NIM was 2.04%, up 14 and 13 bps respectively from 1Q25[15] Loan Portfolio - Total portfolio loan balances increased by $108.2 million, or 2.5%, from 1Q25[19] - Commercial loan balances increased by $108.2 million, or 3.2%, from 1Q25[19] - 2Q25 funded portfolio loan origination yields were 7.55%, down 23 bps from 1Q25[19] Deposit Update - Total deposits increased 7.1% from 1Q25 and are up 24.0% from 2Q24[22] - Cash and unused borrowing capacity totaled $2.3 billion at June 30, 2025[27] - Loan to deposits ratio remains favorable at 82.3%[27] Credit Quality - Net charge-offs were $14.3 million in 2Q25, primarily in small business lending and franchise finance[7] - Nonperforming loans increased $9.3 million from 1Q25 to $43.5 million as of June 30, 2025, representing 1.00% of total loans[7]

Core Insights - First Internet Bancorp (INBK) reported revenue of $33.55 million for the quarter ended June 2025, marking a year-over-year increase of 3.7% [1] - The earnings per share (EPS) for the same period was $0.02, a significant decline from $0.72 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $35.85 million, resulting in a surprise of -6.42% [1] - The company experienced an EPS surprise of -93.94%, with the consensus EPS estimate being $0.33 [1] Financial Performance Metrics - Net Interest Margin was reported at 2%, below the estimated 2.2% by analysts [4] - Net Interest Income (FTE) was $29.15 million, compared to the average estimate of $30.66 million [4] - Total noninterest income was $5.56 million, falling short of the average estimate of $6.4 million [4] - Net Interest Income was reported at $27.99 million, compared to the average estimate of $29.47 million [4] Stock Performance - Shares of First Internet have returned +3.6% over the past month, while the Zacks S&P 500 composite increased by +5.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1: Earnings Performance - First Internet Bancorp reported quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.33 per share, and down from $0.72 per share a year ago, representing an earnings surprise of -93.94% [1] - The company posted revenues of $33.55 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 6.42%, compared to year-ago revenues of $32.36 million [2] - Over the last four quarters, the company has not surpassed consensus EPS estimates and has topped consensus revenue estimates only twice [2] Group 2: Stock Performance and Outlook - First Internet shares have lost about 23.2% since the beginning of the year, while the S&P 500 has gained 7.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $1.06 on $43 million in revenues, and for the current fiscal year, it is $2.73 on $159.5 million in revenues [7] Group 3: Industry Context - The Zacks Industry Rank for Banks - Northeast is currently in the top 24% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5] - The estimate revisions trend for First Internet was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market [6]

Fishers, Indiana, July 23, 2025 – First Internet Bancorp (the "Company") (Nasdaq: INBK), the parent company of First Internet Bank (the "Bank"), announced today financial and operational results for the second quarter ended June 30, 2025. First Internet Bancorp Reports Second Quarter 2025 Results Second Quarter 2025 Financial Performance "In the second quarter, we continued to address credit issues in our franchise finance and our small business loan portfolios; the work we did here is evident in our provis ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From ________ to ________. Commission File Number 001-35750 First Internet Bancorp (Exact Name of Registrant as Specified in Its Charter) Indiana 20-3489991 (State ...

Financial Data and Key Metrics Changes - The company reported total operating revenue growth of over 2% quarter-over-quarter and more than 22% year-over-year [13][14] - Net interest income for the first quarter was $25.1 million, up 6.6% from the previous quarter [42] - The net interest margin for the first quarter was 1.82%, representing an increase of 15 basis points compared to the linked quarter [43] Business Line Data and Key Metrics Changes - Small business lending originations were down compared to the fourth quarter, but year-over-year origination and loan sale volume were up 223% and 236%, respectively [20][19] - The weighted average rate on funded originations was 7.78%, up 50 basis points from the prior quarter [18] - Construction and investor commercial real estate balances increased by $86 million, with nearly $70 million in new commitments originated [28] Market Data and Key Metrics Changes - Total deposits from fintech partners were up 37% from the fourth quarter, totaling $881 million at quarter end [36] - The average balance of deposits increased by $111 million or over 2% during the first quarter [35] - Nonperforming loans to total loans were 80 basis points, with an increase attributed to franchise finance and small business lending [24] Company Strategy and Development Direction - The company aims to continue improving its loan mix and reduce deposit costs, positioning itself for stronger earnings in the coming quarters [137] - The focus remains on expanding fintech partnerships and enhancing revenue diversification [137] - The company anticipates loan yields to increase and deposit costs to decline, projecting a 40% increase in net interest income over 2024's full-year amount [55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing improvement of net interest income and net interest margin throughout 2025, assuming no further rate actions from the Fed [16] - The elevated provision for loan losses was acknowledged, with management indicating a cautious approach to problem loans [21][60] - There is optimism regarding a slowdown in new delinquencies, suggesting potential moderation in the provision for credit losses in the second half of the year [60] Other Important Information - The company recognized $9.7 million in net charge-offs during the quarter, primarily related to franchise finance and small business lending portfolios [21] - Noninterest income for the quarter was $10.4 million, down 35% from the fourth quarter, largely due to lower net servicing revenue [47] - The tangible common equity ratio was 6.55%, with a common equity Tier one ratio of 9.16% [53] Q&A Session Summary Question: Expected one-time impact on fees in Q2 - Management estimated a range of $5 million to $6 million for the quarter, with a return to normalized levels in the latter half of the year [63] Question: Average loan size and impact of SBA fees - The average loan size is just over $1 million, and the company does not expect significant impact from the reinstated fees on smaller loans [68] Question: Impact of a 25 basis point rate cut on NII - A 25 basis point rate cut would result in an annualized impact of about $3.6 million on net interest income [71] Question: Updated thoughts on SBA loss assumptions - Management indicated that while the higher rate environment affects payments, economic uncertainty is a more significant factor influencing loss assumptions [80] Question: Share buybacks and balance sheet growth - The company is preparing to consider share buybacks if the stock price remains below 50% of book value [89] Question: Update on fintech partnerships and pipeline - The company is experiencing strong growth in fintech partnerships, with expectations to expand existing relationships rather than significantly increase the number of programs [124][127]

Financial Data and Key Metrics Changes - The company reported net interest income of $25.1 million, up 6.6% from the previous quarter, and $26.3 million on a fully taxable equivalent basis, reflecting a strong performance [27] - Total operating revenue grew over 2% quarter-over-quarter and more than 22% year-over-year, driven by a 7% increase in net interest income compared to the fourth quarter and 20% compared to the first quarter of 2024 [8][9] - Net income for the quarter was $900,000, with diluted earnings per share of $0.11, significantly impacted by elevated provisions for loan losses [13] Business Line Data and Key Metrics Changes - Small business lending origination yields remained strong, with a weighted average rate on funded originations at 7.78%, up 50 basis points from the prior quarter [11] - The construction and commercial real estate team originated almost $70 million in new commitments, contributing to an 8% annualized loan growth [18] - Noninterest income for the quarter was $10.4 million, down 35% from the fourth quarter, primarily due to lower net servicing revenue [29] Market Data and Key Metrics Changes - Total deposits increased by $111 million or over 2% during the first quarter, driven by growth in FinTech partnership deposits [22] - Non-maturity deposits rose almost $335 million or 15%, reflecting the increase in FinTech partnership deposits [22] - Total FinTech partnership revenue was over $1.1 million in the first quarter, up 30% from the fourth quarter [22] Company Strategy and Development Direction - The company aims to continue improving its loan mix and anticipates a reduction in deposit costs, positioning itself for stronger earnings in the coming quarters [102] - The focus remains on expanding existing FinTech partnerships and exploring new lending opportunities, with a cautious approach to the number of new programs [92] - The company is committed to maintaining a strong asset quality and managing credit risks effectively, particularly in the small business lending and franchise finance portfolios [17][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of net interest income and net interest margin throughout 2025, assuming no further rate actions from the Fed [10] - The company acknowledged economic uncertainties but noted a slowdown in new delinquencies, providing optimism for moderating provisions for credit losses in the second half of the year [38] - Management highlighted the importance of controlling expenses and maintaining strong operational performance despite challenges in the credit environment [9][17] Other Important Information - The allowance for credit losses as a percentage of total loans was 1.11% at the end of the first quarter, reflecting specific reserves taken on certain loan relationships [31] - The tangible common equity ratio was 6.55%, with a common equity Tier one capital ratio of 9.16%, indicating solid capital levels [34] Q&A Session Summary Question: Expected one-time impact on fees in Q2 - Management estimated a total noninterest income for Q2 to be around $5 million to $6 million, with expectations to return to previous levels in the latter half of the year [44] Question: Average loan size in SBA - The average loan size is just over $1 million, indicating that the reinstated fees for smaller loans do not significantly impact the company [47] Question: Impact of a 25 basis point rate cut on NII - A 25 basis point rate cut would result in an annualized impact of approximately $3.6 million on net interest income, with a gradual ramp-up over the year [49] Question: Updated thoughts on SBA loss assumptions - Management noted that while loss rates have been elevated, they expect a decline in charge-offs as economic conditions stabilize [56] Question: Share buybacks and balance sheet growth - The company is preparing to consider share buybacks if the stock price remains below 50% of book value, while also managing balance sheet growth effectively [63] Question: Update on fintech partnerships - The company is experiencing strong growth in existing fintech partnerships and is cautiously optimistic about expanding these relationships [92]