First Internet Bancorp(US:INBK)2025-11-10 21:15Financial 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]