The declaration and amount of any future cash dividends will be subject to the sole discretion of the Board of Directors and will depend upon many factors, including the Company's results of operations, financial condition, capital requirements, regulatory and contractual restrictions, business strategy and other factors deemed relevant by the Board of Directors. FISHERS, Ind.--(BUSINESS WIRE)--The Board of Directors of First Internet Bancorp (the "Company†) (Nasdaq: INBK) has declared a quarterly cash di ...

The declaration and amount of any future cash dividends will be subject to the sole discretion of the Board of Directors and will depend upon many factors, including the Company's results of operations, financial condition, capital requirements, regulatory and contractual restrictions, business strategy and other factors deemed relevant by the Board of Directors. First Internet Bancorp is a bank holding company with assets of $5.6 billion as of September 30, 2025. The Company's subsidiary, First Internet Ba ...

Financial Performance - For the third quarter 2025, the net loss was $41.6 million, or $4.76 diluted loss per share, compared to a net income of $7.0 million, or $0.80 diluted earnings per share in the third quarter 2024, representing a decrease in net income of 695.0%[199] - For the nine months ended September 30, 2025, net loss was $40.5 million, or $4.63 diluted loss per share, compared to net income of $17.9 million, or $2.05 per diluted share for the same period in 2024, resulting in a decrease in net income of 325.4%[199] - Adjusted net loss for the nine months ended September 30, 2025 was $11.3 million, with an adjusted diluted loss per share of $1.29[206] - Total revenue (GAAP) for the three months ended September 30, 2025, was $5,705,000, a decrease of 83.1% from $33,794,000 in the same period of 2024[281] - Net loss (GAAP) for the three months ended September 30, 2025, was $(41,593,000), compared to a net income of $6,990,000 in the same period of 2024[281] Income and Expenses - The provision for credit losses increased by $31.4 million, or 926.2%, contributing to the net income decrease in the third quarter 2025[200] - Noninterest income for the third quarter 2025 recorded a loss of $24.6 million, a decrease of $36.7 million, or 304.9%, compared to $12.0 million for the third quarter 2024[226] - Noninterest expense for the third quarter 2025 was $25.5 million, an increase of $2.7 million, or 11.7%, compared to $22.8 million for the third quarter 2024[229] - Total noninterest expense for the nine months ended September 30, 2025 was $70.8 million, an increase of $4.7 million, or 7.0%, compared to $66.2 million for the same period in 2024[230] Interest Income and Margin - Net interest income for Q3 2025 was $30.4 million, an increase of $8.6 million, or 39.5%, compared to $21.8 million for Q3 2024[215] - Total interest income for Q3 2025 increased by $9.4 million, or 12.5%, to $84.4 million from $75.0 million in Q3 2024[215] - Net interest margin (NIM) for the third quarter 2025 was 2.04%, an increase of 42 bps compared to 1.62% for the third quarter 2024[222] - Total interest income for the nine months ended September 30, 2025 increased by $406.6 million, or 10.3%, compared to the same period in 2024, driven by a 26 bps increase in loan yield and a 10.3% increase in average loan balance[218] Assets and Liabilities - As of September 30, 2025, the Company had consolidated assets of $5.6 billion, consolidated deposits of $4.9 billion, and stockholders' equity of $352.2 million[199] - Total assets decreased by $98.7 million, or 1.7%, to $5.6 billion as of September 30, 2025, compared to $5.7 billion at December 31, 2024[234] - Total loans were $3.6 billion as of September 30, 2025, a decrease of $567.1 million, or 13.6%, compared to December 31, 2024[238] - Total deposits decreased by $17.8 million, or 0.3%, to $4.9 billion as of September 30, 2025, primarily due to a 49.7% decrease in brokered deposits[256] Credit Quality - The allowance for credit losses (ACL) was $59.9 million as of September 30, 2025, up from $44.8 million as of December 31, 2024, reflecting updated assumptions in the CECL model[244] - Net charge-offs for Q3 2025 were $21.0 million, resulting in a net charge-off rate of 1.89%, compared to $1.5 million or 0.15% in Q3 2024[245] - Total nonperforming loans increased by $24.8 million, or 87.4%, to $53.3 million as of September 30, 2025, compared to $28.4 million as of December 31, 2024[241] Capital and Liquidity - As of September 30, 2025, the Company reported a Common Equity Tier 1 capital of $346.4 million, with a ratio of 9.24%, exceeding the minimum required ratio of 7.00%[264] - The total capital to risk-weighted assets ratio for the Bank was 12.46% as of September 30, 2025, exceeding the minimum required ratio of 10.50%[264] - The Company believes it has sufficient liquidity and capital resources to meet its cash and capital expenditure requirements for the next twelve months and longer[268] Market Risk and Interest Rate Management - The primary source of market risk for the company is interest rate risk, which affects earnings and equity value due to changes in market interest rates[292] - The company forecasts net interest income (NII) under various interest rate scenarios, with Year 1 NII showing a potential decrease of 0.71% under a +100 basis points scenario[293] - The company aims to manage volatility in net interest income through strategies such as increasing low-duration loans and selling longer-term fixed-rate loans[299] Governance and Controls - The company maintains effective disclosure controls and procedures, ensuring timely reporting of required information as of September 30, 2025[296] - There have been no changes in the company's internal control over financial reporting that materially affected its effectiveness during the quarter ended September 30, 2025[297]

Core Insights - First Internet Bancorp (NASDAQ: INBK) reported a weaker-than-expected performance in its third quarter, following the sale of a portion of its portfolio to Blackstone [1] Financial Performance - The third quarter results were anticipated to be weak, but the actual performance was even lower than expectations [1] Investment Position - There is a long position in INBK, and put options have been written, with some currently in the money [2]

Core Insights - First Internet Bancorp (NASDAQ: INBK) reported a weaker-than-expected performance in its third quarter, following the sale of a portion of its portfolio to Blackstone [1] Company Performance - The third quarter results were anticipated to be weak, but the actual performance was even lower than expectations [1] Investment Position - There is a long position in INBK, and put options have been written, with some currently in the money [2]

Core Points - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article suggests that users may face blocks if they have an ad-blocker enabled, indicating a need to disable it for proper access [1]

Financial Data and Key Metrics Changes - Adjusted total revenues reached $43.5 million, an increase of 30% over the second quarter [5] - Net interest income increased over 8% compared to the linked quarter and was up 40% compared to the third quarter of 2023 [6] - Net interest margin on a fully tax-equivalent basis increased 8 basis points to 2.12% [6][14] - The company reported a net loss of $41.6 million, or $0.476 per diluted share, with an adjusted net loss of $12.5 million, or $1.43 per diluted share [13] Business Line Data and Key Metrics Changes - The gain on sale of SBA loans generated $10.6 million in revenue, rebounding strongly in the third quarter [10] - Commercial loan balances were up $115 million, or 3.2%, while total loan balances increased by $105 million, or 2.4% [8] - Total revenue from fintech initiatives was up 14% compared to the second quarter and up 130% from the third quarter of 2024 [12] Market Data and Key Metrics Changes - Total delinquencies were 35 basis points as of September 30, down from 62 basis points in the second quarter [7] - Non-performing loans totaled $53.3 million at the end of the third quarter, up $9.7 million from the linked quarter [19] - The allowance for credit losses increased to $59.9 million, up $13.4 million, or almost 30% from the second quarter [20] Company Strategy and Development Direction - The company executed strategic actions that had a near-term negative impact on earnings but strengthened its financial position for future growth [6] - The focus remains on enhancing net interest margin and achieving a 1% return on average assets [7] - The company is exploring fintech opportunities and leasing opportunities that yield higher returns compared to previous investments [75] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the credit outlook, indicating that delinquencies are trending down and the worst may be behind them [30][33] - The company anticipates loan balances to increase at an unannualized rate of 4% to 6% in the fourth quarter [23] - The macro environment remains uncertain, but customer activity is stabilizing, and lending teams are performing well [80] Other Important Information - The company completed the sale of $837 million of single-tenant lease financing loans, which had a net loss of $37.8 million [22] - The company has proactively secured SBA authorizations for loans in its pipeline prior to the government shutdown [10] Q&A Session Summary Question: What is the credit outlook? - Management indicated that delinquencies are decreasing, with only four delinquent accounts in the franchise finance portfolio [30] Question: How are you managing the government shutdown's impact? - The company secured authorizations for loans before the shutdown and can continue to fund loans where authorization exists [41] Question: Can you provide insights on the franchise finance portfolio? - An external audit showed no downgrades and two upgrades in the franchise finance portfolio, boosting confidence [46]

Core Insights - The article discusses the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article emphasizes that users may be blocked from proceeding if an ad-blocker is enabled [1]

Financial Results Third Quarter 2025 Forward-Looking Statements & Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements with respect to the financial condition, results of operations, trends in lending policies and loan programs, plans and prospective business partnerships, objectives, future performance and business of the Company. Forward-looking statem ...

Core Insights - First Internet Bancorp reported a revenue of $32.81 million for the quarter ended September 2025, which is a decrease of 2.9% compared to the same period last year [1] - The company's EPS was -$1.43, a significant decline from $0.80 in the year-ago quarter, indicating a substantial drop in profitability [1] - The reported revenue fell short of the Zacks Consensus Estimate of $44.1 million, resulting in a surprise of -25.61% [1] - The EPS also missed the consensus estimate of $0.66, leading to an EPS surprise of -316.67% [1] Financial Metrics - The Net Interest Margin was reported at 2%, below the two-analyst average estimate of 2.3% [4] - Net Interest Income was $30.35 million, which is lower than the two-analyst average estimate of $31.42 million [4] - Net Interest Income (FTE) was $31.51 million, compared to the average estimate of $32.61 million based on two analysts [4] Stock Performance - Shares of First Internet have returned -9.6% over the past month, contrasting with the Zacks S&P 500 composite's +1.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]