First Internet Bancorp (INBK) investor relations material

Executive summary

• Adjusted revenue rose 30% year-over-year to $43.5 million, marking the eighth consecutive quarter of net interest income growth and net interest margin expansion.

• Completed sale of $836.9 million in single-tenant lease financing loans, optimizing the balance sheet and enhancing capital ratios for future growth.

• Strong loan pipelines in construction, investor CRE, single-tenant lease financing, and C&I; fintech deposit growth drove robust liquidity.

• Aggressive credit actions in small business and franchise finance portfolios led to improved asset quality and lowest delinquencies in a year.

• Strategic investments in AI-driven analytics and technology platforms enhanced credit standards and portfolio management.

Financial highlights

• Adjusted total revenue of $43.5 million increased 30% from the prior quarter; net interest income rose over 8% sequentially.

• Net interest margin (fully tax-equivalent) increased 8 bps to 2.12%.

• Net loss of $41.6 million ($4.76 per share); adjusted net loss excluding loan sale was $12.5 million ($1.43 per share).

• Adjusted pre-tax, pre-provision income was $18.1 million, up over 50% sequentially and 64% year-over-year.

• SBA gain on sale revenue of $10.6 million, with normalized secondary market sales.

Outlook and guidance

• Expect Q4 loan balances to increase 4–6% (unannualized), with origination levels consistent with prior quarters.

• Q4 net interest margin (fully tax-equivalent) projected at 2.4–2.5%; net interest income $32.75–$33.5 million.

• Q4 non-interest income expected at $10.5–$11.5 million, contingent on government shutdown duration.

• 2026 non-interest income forecasted at $41.5–$44.5 million; non-interest expense at $106–$109 million.

• Management expresses increased conviction in long-term profitable growth, citing a dedicated team, proactive approach, and strong liquidity.