First Internet Bancorp (INBK) investor relations material

Executive summary

• Net income for Q2 2026 was $2.4 million ($0.27 per diluted share), up sharply year-over-year, with total revenue up 23% to $41.1 million and EPS rising from $0.02 to $0.27.

• Credit quality improved: provision for credit losses declined, net charge-offs and delinquencies fell, and non-performing loans dropped to 1.58% of total loans.

• Digital banking, BaaS, and fintech partnerships drove strong deposit and payment volume growth, with noninterest income up 56% year-over-year.

• Sustained organizational efforts and technology investments enhanced underwriting, portfolio monitoring, and customer experience.

• Maintained a diversified, nationwide loan and deposit base with scalable, branchless operations.

Financial highlights

• Net interest income for Q2 2026 was $32.4 million (or $33.6 million FTE), up 16% year-over-year; net interest margin improved to 2.39% (2.47% FTE), up 43 bps.

• Pre-provision net revenue increased 28% to $15.0 million; total loans reached $3.8 billion, up 1% sequentially.

• Noninterest income for Q2 2026 rose 56.3% to $8.7 million, driven by higher loan sales and fintech/BaaS fees.

• Tangible book value per share increased to $41.09 as of June 30, 2026.

• Non-performing loans declined to $60.1 million (1.58% of total loans), and delinquencies dropped to 78 bps of total performing loans.

Outlook and guidance

• Full-year 2026 diluted EPS forecast reaffirmed at $2.35–$2.45.

• Loan growth expected at 4–6% for 2026, with stronger pipelines and origination volumes anticipated in H2.

• Net interest margin projected at 2.75–2.80% by Q4; net interest income guidance revised to $141M–$142M.

• Noninterest income outlook raised to $40.5M–$41M; noninterest expense guidance at $106M–$107M.

• Provision for credit losses expected at $47M–$48M for the year, with sequential improvement anticipated.