First Internet Bancorp (INBK) investor relations material

Executive summary

• Net income for Q1 2026 rose 166% year-over-year to $2.5 million ($0.29 per diluted share), driven by higher net interest and noninterest income, with digital banking and fintech partnerships fueling significant deposit and payment volume growth.

• Total revenue increased 21% year-over-year to $43.1 million, with pre-provision net revenue up 51% to $18.1 million.

• The branchless, technology-driven model and strategic investments in AI and digital capabilities improved customer service, operational efficiency, and nationwide reach.

• Commercial loan production remained strong, especially in construction and single tenant lease financing, while fintech deposit growth enabled maturity of higher-cost CDs and brokered deposits.

• Credit quality improved, with declining delinquencies and non-performing loans, particularly in the SBA portfolio.

Financial highlights

• Net interest income was $31.6 million (FTE $32.8 million), up 26% year-over-year, with net interest margin (FTE) expanding to 2.45%, up 54 bps year-over-year.

• Noninterest income totaled $11.5 million, up 10–11% year-over-year, led by fintech fee revenue and loan servicing.

• Provision for credit losses was $16.3 million, up 36% sequentially, reflecting elevated net charge-offs and CECL re-measurement.

• Total loans were $3.8 billion, up 1% sequentially but down 11% year-over-year; total deposits reached $5.0 billion, up 3% sequentially.

• Tangible book value per share was $40.87, and return on average assets was 0.18%.

Outlook and guidance

• 2026 guidance is broadly maintained, but management notes macroeconomic uncertainty, including volatile energy prices and geopolitical risks, and acknowledges that the 15–17% loan growth target may be ambitious.

• Expecting 10–15 bps net interest margin improvement per quarter, targeting 2.90% by year-end if trends hold.

• Fee income and expense guidance remain unchanged, with flexibility to adjust based on origination and market conditions.

• On track to return to 1% ROA by 2027 if current improvements continue.

• The company believes it has sufficient liquidity and capital resources for the next twelve months and beyond.