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]

Executive Summary & Business Overview This section summarizes First Internet Bancorp's Q3 2025 performance, strategic actions, and financial reporting principles [Third Quarter 2025 Highlights](index=1&type=section&id=Third%20Quarter%202025%20Highlights) First Internet Bancorp reported strong Q3 2025 operational momentum and NIM expansion, offset by a GAAP net loss from a loan sale Third Quarter 2025 Key Metrics | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :----------------------------------- | :-------- | :-------- | :-------- | | Adjusted Total Revenue (QoQ Change, in millions) | $43.5 (+30%) | $33.5 | $33.8 | | FTE NIM (YoY Change) | 2.12% (+42 bps) | 2.04% | 1.70% | | Net Interest Income (QoQ Change, in millions) | $30.4 (+8%) | $28.0 | $21.8 | | FTE Net Interest Income (QoQ Change, in millions) | $31.5 (+8%) | $29.1 | $22.9 | | Adjusted Pre-Tax, Pre-Provision Income (QoQ Change, in millions) | $18.1 (+54%) | $11.7 | $11.0 | | Net Loss (GAAP, in millions) | ($41.6) | $0.2 | $7.0 | | Diluted Loss Per Share (GAAP) | ($4.76) | $0.02 | $0.80 | | Adjusted Net Loss (Excl. Loan Sale, in millions) | ($12.5) | N/A | N/A | | Adjusted Diluted Loss Per Share (Excl. Loan Sale) | ($1.43) | N/A | N/A | | Common Equity Tier 1 (CET1) Ratio | 9.24% | 8.90% | 9.37% | | Total Risk-Based Capital Ratio | 13.11% | 12.16% | 12.79% | | Tangible Common Equity to Tangible Assets | 6.17% | 6.35% | 6.54% | | Loan Balances (QoQ Change, in millions) | -$732.2 (-17%) | N/A | N/A | | Loan Balances (Excl. Loan Sale, QoQ Change, in millions) | +$104.7 (+2.4%) | N/A | N/A | | Deposits (QoQ Change, in millions) | -$383.4 (-7%) | N/A | N/A | | Loans to Deposits Ratio | 73.9% | N/A | N/A | | Nonperforming Loans to Total Loans | 1.47% | 1.00% | 0.56% | | Net Charge-Offs to Average Loans | 1.89% | 1.31% | 0.15% | | Allowance for Credit Losses to Total Loans | 1.65% | 1.07% | 1.13% | | Tangible Book Value Per Share | $39.88 | $44.25 | $43.89 | - The company completed the sale of **$836.9 million** single tenant lease financing loans, which enhanced regulatory capital ratios and provided balance sheet flexibility[5](index=5&type=chunk) - A provision for credit losses of **$34.8 million** was recognized, primarily related to small business lending and franchise finance, as part of proactive credit risk management[5](index=5&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO David Becker highlighted consistent net interest income growth, strong fintech deposit inflows, and improved asset quality, positioning for future earnings - Achieved **eight consecutive quarters** of increasing net interest income due to higher yields on earning assets and reduced funding costs[2](index=2&type=chunk) - Attained significant growth in fintech deposits, contributing to strong balance sheet liquidity and a favorable loans-to-deposits ratio[2](index=2&type=chunk) - Decisive actions were taken to address credit issues in small business lending and franchise finance portfolios, resulting in improved asset quality and delinquencies at their **lowest level in a year**[2](index=2&type=chunk) - The company is now well-positioned to grow earnings and accelerate its ability to achieve a Return on Average Assets (ROAA) of **1%**[2](index=2&type=chunk) [Company Profile](index=3&type=section&id=Company%20Profile) First Internet Bancorp is a **$5.6 billion** asset bank holding company, pioneering branchless banking since 1999, listed on Nasdaq 'INBK' - First Internet Bancorp is a bank holding company with assets of **$5.6 billion** as of September 30, 2025[8](index=8&type=chunk) - First Internet Bank, founded in 1999, is an industry pioneer in branchless banking, offering consumer and small business deposit, SBA financing, franchise finance, consumer loans, specialty finance services nationally, and commercial real estate, construction, commercial & industrial loans, and treasury management services regionally[8](index=8&type=chunk) - The company's common stock trades on the Nasdaq Global Select Market under the symbol '**INBK**' and is a component of the Russell 2000® Index[8](index=8&type=chunk) [Non-GAAP Financial Measures Explanation](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) This section explains First Internet Bancorp's use of non-GAAP financial measures for assessing capital and profitability, supplementary to GAAP - Non-GAAP financial measures are used by management to measure capital strength and analyze profitability, including the ability to generate earnings on tangible capital[11](index=11&type=chunk) - Specific non-GAAP measures include tangible common equity, tangible assets, tangible book value per common share, FTE interest income/net interest income/net interest margin, pre-tax, pre-provision income (adjusted), adjusted total revenue, adjusted net (loss) income, and adjusted return ratios[10](index=10&type=chunk)[11](index=11&type=chunk) - These non-GAAP measures should not be considered a substitute for GAAP financial measures and may not be comparable to those presented by other companies[11](index=11&type=chunk) Financial Performance Overview This section details First Internet Bancorp's Q3 2025 financial performance, covering key ratios, balance sheets, income statements, and loan and deposit trends [Summary Financial Information](index=5&type=section&id=Summary%20Financial%20Information) Q3 2025 summary financials show a **$41.6 million** net loss and ($4.76) diluted loss per share, driven by a loan sale, with improved FTE NIM and solid capital Summary Financial Data | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | | Net (Loss) Income (in thousands) | $(41,593) | $193 | $6,990 | | (Loss) Earnings Per Share - Diluted | $(4.76) | $0.02 | $0.80 | | Dividends Declared Per Share | $0.06 | $0.06 | $0.06 | | Book Value Per Common Share | $40.42 | $44.79 | $44.43 | | Tangible Book Value Per Common Share | $39.88 | $44.25 | $43.89 | | Common Shares Outstanding | 8,713,094 | 8,713,094 | 8,667,894 | | Average Common Shares Outstanding (Diluted) | 8,742,052 | 8,760,374 | 8,768,731 | [Key Performance Ratios](index=5&type=section&id=Key%20Performance%20Ratios) Q3 2025 performance ratios reflect a net loss, with ROAA at **(2.71%)** and ROAE at **(42.11%)**, while FTE NIM improved to **2.12%** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | | Return on Average Assets | (2.71%) | 0.01% | 0.50% | | Return on Average Shareholders' Equity | (42.11%) | 0.20% | 7.32% | | Return on Average Tangible Common Equity | (42.62%) | 0.20% | 7.41% | | Net Interest Margin | 2.04% | 1.96% | 1.62% | | Net Interest Margin - FTE | 2.12% | 2.04% | 1.70% | [Capital Ratios](index=5&type=section&id=Capital%20Ratios) Q3 2025 regulatory capital ratios improved, with CET1 increasing to **9.24%** and Total Risk-Based Capital rising to **13.11%** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | | Total Shareholders' Equity to Assets | 6.25% | 6.43% | 6.61% | | Tangible Common Equity to Tangible Assets | 6.17% | 6.35% | 6.54% | | Tier 1 Leverage Ratio | 5.69% | 6.69% | 7.13% | | Common Equity Tier 1 Capital Ratio | 9.24% | 8.90% | 9.37% | | Tier 1 Capital Ratio | 9.24% | 8.90% | 9.37% | | Total Risk-Based Capital Ratio | 13.11% | 12.16% | 12.79% | [Asset Quality](index=5&type=section&id=Asset%20Quality) Q3 2025 asset quality metrics deteriorated, with nonperforming loans to total loans rising to **1.47%** and net charge-offs to average loans increasing to **1.89%** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | | Nonperforming Loans (in thousands) | $53,250 | $43,541 | $22,478 | | Nonperforming Assets (in thousands) | $55,237 | $45,539 | $22,944 | | Nonperforming Loans to Loans | 1.47% | 1.00% | 0.56% | | Nonperforming Assets to Total Assets | 0.98% | 0.75% | 0.39% | | Allowance for Credit Losses - Loans to Loans | 1.65% | 1.07% | 1.13% | | Allowance for Credit Losses - Loans to Nonperforming Loans | 112.5% | 106.8% | 203.4% | | Net Charge-Offs to Average Loans | 1.89% | 1.31% | 0.15% | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2025, total assets decreased to **$5.64 billion** and total deposits to **$4.92 billion**, primarily due to a significant loan sale Balance Sheet Summary | Balance Sheet Item | Sep 30, 2025 (in thousands) | Jun 30, 2025 (in thousands) | Sep 30, 2024 (in thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total Assets | $5,639,174 | $6,072,573 | $5,823,259 | | Net Loans | $3,570,462 | $4,316,045 | $3,990,159 | | Total Deposits | $4,915,434 | $5,298,789 | $4,797,710 | | Noninterest-Bearing Deposits | $243,539 | $145,166 | $111,591 | | Interest-Bearing Deposits | $4,671,895 | $5,153,623 | $4,686,119 | | Total Liabilities | $5,287,006 | $5,682,334 | $5,438,130 | | Total Shareholders' Equity | $352,168 | $390,239 | $385,129 | - Loans decreased by **$732.2 million**, or **17%**, from the second quarter of 2025, largely due to the loan sale[5](index=5&type=chunk) - Deposits decreased by **$383.4 million**, or **7%**, reflecting over **$700 million** moved off-balance sheet[5](index=5&type=chunk) [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q3 2025 saw a **$41.6 million** net loss, driven by a **$34.8 million** provision for credit losses and a **$27.1 million** loss on loan sales, despite increased net interest income Income Statement Summary | Income Statement Item | Sep 30, 2025 (in thousands) | Jun 30, 2025 (in thousands) | Sep 30, 2024 (in thousands) | | :----------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total Interest Income | $84,388 | $80,886 | $74,990 | | Total Interest Expense | $54,036 | $52,896 | $53,225 | | Net Interest Income | $30,352 | $27,990 | $21,765 | | Provision for Credit Losses | $34,789 | $13,608 | $3,390 | | Net Interest (Loss) Income After Provision | $(4,437) | $14,382 | $18,375 | | Total Noninterest (Loss) Income | $(24,647) | $5,557 | $12,029 | | Total Noninterest Expense | $25,459 | $21,800 | $22,794 | | (Loss) Income Before Income Taxes | $(54,543) | $(1,861) | $7,610 | | Income Tax (Benefit) Provision | $(12,950) | $(2,054) | $620 | | Net (Loss) Income | $(41,593) | $193 | $6,990 | | (Loss) Earnings Per Share - Diluted | $(4.76) | $0.02 | $0.80 | - Net interest income increased by **8%** from the second quarter of 2025[5](index=5&type=chunk) - The quarterly results included a pre-tax loss of **$37.8 million** on the sale of single tenant lease financing loans[5](index=5&type=chunk) [Average Balances and Rates](index=8&type=section&id=Average%20Balances%20and%20Rates) Q3 2025 saw average interest-earning assets rise to **$5.90 billion** with a **5.68%** yield, improving NIM to **2.04%** (**2.12%** FTE) due to lower funding costs Average Balances and Yields/Costs | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | | Average Interest-Earning Assets (in thousands) | $5,895,554 | $5,739,019 | $5,348,153 | | Yield on Interest-Earning Assets | 5.68% | 5.65% | 5.58% | | Average Loans (in thousands) | $4,427,200 | $4,407,196 | $4,029,360 | | Yield on Loans | 6.18% | 6.07% | 5.90% | | Average Interest-Bearing Liabilities (in thousands) | $5,498,129 | $5,360,514 | $5,004,110 | | Cost of Interest-Bearing Liabilities | 3.90% | 3.96% | 4.23% | | Average Total Deposits (in thousands) | $5,307,504 | $4,945,955 | $4,497,087 | | Cost of Interest-Bearing Deposits | 3.87% | 3.92% | 4.30% | | Interest Rate Spread | 1.78% | 1.69% | 1.35% | | Net Interest Margin | 2.04% | 1.96% | 1.62% | | Net Interest Margin - FTE | 2.12% | 2.04% | 1.70% | - The cost of interest-bearing deposits decreased to **3.87%** in Q3 2025 from **3.92%** in Q2 2025 and **4.30%** in Q3 2024[16](index=16&type=chunk) - Average interest-bearing demand deposits increased significantly to **$1.40 billion** in Q3 2025 from **$1.23 billion** in Q2 2025, with a yield of **3.33%**[16](index=16&type=chunk) [Loans and Deposits Breakdown](index=10&type=section&id=Loans%20and%20Deposits%20Breakdown) As of September 30, 2025, total loans decreased to **$3.63 billion** due to a loan sale, while total deposits fell to **$4.92 billion**, with shifts in deposit categories Loan Portfolio Composition | Loan Category | Sep 30, 2025 (in thousands) | Percent | Jun 30, 2025 (in thousands) | Percent | Sep 30, 2024 (in thousands) | Percent | | :--------------------------- | :-------------------------- | :------ | :-------------------------- | :------ | :-------------------------- | :------ | | Commercial and Industrial | $206,301 | 5.7% | $174,475 | 4.0% | $111,199 | 2.8% | | Investor Commercial Real Estate | $644,184 | 17.7% | $513,411 | 11.8% | $260,614 | 6.5% | | Single Tenant Lease Financing | $135,025 | 3.8% | $970,042 | 22.3% | $932,148 | 23.1% | | Small Business Lending | $401,628 | 11.1% | $383,455 | 8.8% | $298,645 | 7.4% | | Franchise Finance | $450,340 | 12.4% | $479,757 | 11.0% | $550,442 | 13.6% | | Total Commercial Loans | $2,818,456 | 77.7% | $3,540,306 | 81.2% | $3,203,480 | 79.4% | | Total Consumer Loans | $788,085 | 21.6% | $797,171 | 18.2% | $803,353 | 19.9% | | Total Loans | $3,630,385 | 100.0% | $4,362,562 | 100.0% | $4,035,880 | 100.0% | Deposit Composition | Deposit Category | Sep 30, 2025 (in thousands) | Percent | Jun 30, 2025 (in thousands) | Percent | Sep 30, 2024 (in thousands) | Percent | | :------------------------------ | :-------------------------- | :------ | :-------------------------- | :------ | :-------------------------- | :------ | | Noninterest-Bearing Deposits | $243,539 | 5.0% | $145,166 | 2.7% | $111,591 | 2.3% | | Interest-Bearing Demand Deposits | $1,003,950 | 20.4% | $1,458,123 | 27.5% | $538,484 | 11.2% | | Money Market Accounts | $1,250,202 | 25.4% | $1,210,960 | 22.9% | $1,230,707 | 25.7% | | Fintech - Brokered Deposits | — | —% | — | —% | $211,814 | 4.4% | | Certificates of Deposits | $2,115,613 | 43.0% | $2,146,356 | 40.5% | $2,110,618 | 44.0% | | Brokered Deposits | $283,436 | 5.8% | $317,282 | 6.0% | $572,784 | 11.9% | | Total Deposits | $4,915,434 | 100.0% | $5,298,789 | 100.0% | $4,797,710 | 100.0% | - The significant decrease in single tenant lease financing loans from **$970.0 million** in Q2 2025 to **$135.0 million** in Q3 2025 reflects the impact of the major loan sale[18](index=18&type=chunk) Non-GAAP Financial Measures Reconciliations This section provides detailed reconciliations of First Internet Bancorp's non-GAAP financial measures to GAAP, including tangible common equity, FTE net interest income, and adjusted earnings [Tangible Common Equity and Assets Reconciliation](index=11&type=section&id=Tangible%20Common%20Equity%20and%20Assets%20Reconciliation) This section reconciles GAAP total equity and assets to tangible common equity and tangible assets, showing **$347.48 million** tangible common equity and **$5.63 billion** tangible assets Tangible Common Equity and Assets | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------------- | :----------- | :----------- | :----------- | | Total Equity - GAAP (in thousands) | $352,168 | $390,239 | $385,129 | | Goodwill Adjustment (in thousands) | $(4,687) | $(4,687) | $(4,687) | | Tangible Common Equity (in thousands) | $347,481 | $385,552 | $380,442 | | Total Assets - GAAP (in thousands) | $5,639,174 | $6,072,573 | $5,823,259 | | Goodwill Adjustment (in thousands) | $(4,687) | $(4,687) | $(4,687) | | Tangible Assets (in thousands) | $5,634,487 | $6,067,886 | $5,818,572 | | Tangible Book Value Per Common Share | $39.88 | $44.25 | $43.89 | | Tangible Common Equity to Tangible Assets | 6.17% | 6.35% | 6.54% | [Net Interest Income - FTE Reconciliation](index=11&type=section&id=Net%20Interest%20Income%20-%20FTE%20Reconciliation) This section reconciles GAAP interest income to FTE, showing Q3 2025 total interest income - FTE at **$85.55 million** and net interest income - FTE at **$31.51 million**, with an FTE NIM of **2.12%** Net Interest Income - FTE | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------- | :----------- | :----------- | :----------- | | Total Interest Income - GAAP (in thousands) | $84,388 | $80,886 | $74,990 | | FTE Adjustments (in thousands) | $1,158 | $1,157 | $1,133 | | Total Interest Income - FTE (in thousands) | $85,546 | $82,043 | $76,123 | | Net Interest Income - GAAP (in thousands) | $30,352 | $27,990 | $21,765 | | FTE Adjustments (in thousands) | $1,158 | $1,157 | $1,133 | | Net Interest Income - FTE (in thousands) | $31,510 | $29,147 | $22,898 | | Net Interest Margin - FTE | 2.12% | 2.04% | 1.70% | [Adjusted Revenue and Income Reconciliation](index=12&type=section&id=Adjusted%20Revenue%20and%20Income%20Reconciliation) This section reconciles GAAP revenue and income to adjusted amounts, showing Q3 2025 adjusted total revenue of **$43.53 million** and an adjusted net loss of **$12.47 million** Adjusted Revenue and Income | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | | Total Revenue - GAAP (in thousands) | $5,705 | $33,547 | $33,794 | | Loss on Sale of Loans Adjustment (in thousands) | $37,823 | — | — | | Adjusted Total Revenue (in thousands) | $43,528 | $33,547 | $33,794 | | Net (Loss) Income - GAAP (in thousands) | $(41,593) | $193 | $6,990 | | Adjusted Net (Loss) Income (in thousands) | $(12,469) | $193 | $6,990 | | Pre-Tax, Pre-Provision (Loss) Income - GAAP (in thousands) | $(19,754) | $11,747 | $11,000 | | Loss on Sale of Loans Adjustment (in thousands) | $37,823 | — | — | | Adjusted Pre-Tax, Pre-Provision Income (in thousands) | $18,069 | $11,747 | $11,000 | [Adjusted EPS and Return Ratios Reconciliation](index=13&type=section&id=Adjusted%20EPS%20and%20Return%20Ratios%20Reconciliation) This section reconciles adjusted diluted EPS and return ratios, showing Q3 2025 adjusted diluted loss per share of **($1.43)** and adjusted ROAA of **(0.81%)** Adjusted EPS and Return Ratios | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | | Diluted (Loss) Earnings Per Share - GAAP | $(4.76) | $0.02 | $0.80 | | Adjusted Diluted (Loss) Earnings Per Share | $(1.43) | $0.02 | $0.80 | | Return on Average Assets - GAAP | (2.71%) | 0.01% | 0.50% | | Adjusted Return on Average Assets | (0.81%) | 0.01% | 0.50% | | Return on Average Shareholders' Equity - GAAP | (42.11%) | 0.20% | 7.32% | | Adjusted Return on Average Shareholders' Equity | (12.63%) | 0.20% | 7.32% | | Return on Average Tangible Common Equity - GAAP | (42.62%) | 0.20% | 7.41% | | Adjusted Return on Average Tangible Common Equity | (12.78%) | 0.20% | 7.41% | Additional Information This section provides details on the conference call, forward-looking statements disclaimer, and contact information [Conference Call and Webcast](index=3&type=section&id=Conference%20Call%20and%20Webcast) First Internet Bancorp will host a conference call and webcast on Thursday, October 23, 2025, at 2:00 p.m. ET to discuss quarterly results - Conference call and webcast to discuss quarterly financial results will be held on **Thursday, October 23, 2025, at 2:00 p.m. Eastern Time**[6](index=6&type=chunk) - Access the call via telephone at **(800) 549-8228**; access code: **74806**. A recorded replay is available through **October 30, 2025**, by dialing **(888) 660-6264**; access code: **74806 **[6](index=6&type=chunk) - A live webcast and archived version will be available on the Company's website at **www.firstinternetbancorp.com**[7](index=7&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section provides a standard disclaimer for forward-looking statements, noting they are not guarantees of future performance and involve inherent risks and uncertainties - The press release contains forward-looking statements identifiable by words such as 'anticipate,' 'believe,' 'expect,' 'future,' 'growth,' 'improve,' 'will,' or similar expressions[9](index=9&type=chunk) - Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially[9](index=9&type=chunk) - Key risks include general economic conditions, credit quality, failures in information systems, competition, loss of key management, impacts of inflation and rising interest rates, and regulatory risks[9](index=9&type=chunk) [Contact Information](index=4&type=section&id=Contact%20Information) This section provides contact information for investor/analyst inquiries and media relations - Investors/Analysts contact: **Paula Deemer**, Director of Corporate Administration, **(317) 428-4628**, **investors@firstib.com**[12](index=12&type=chunk) - Media contact: **Zach Weismiller**, PANBlast, **firstib@panblastpr.com**[12](index=12&type=chunk)

Core Insights - First Internet Bancorp reported strong operational momentum in Q3 2025, highlighting solid growth in net interest income and an improvement in net interest margin [1] Financial Performance - The company achieved eight consecutive quarters of growth in net interest income [1]