First Internet Bancorp (INBK) Q4 2024 earnings summary

Executive summary

• Net income for Q4 2024 was $7.3 million, up 4.9% sequentially; full-year net income reached $25.3 million, up 200.3% year-over-year, and diluted EPS for Q4 was $0.83, up 3.8% from Q3; full-year diluted EPS was $2.88, up 203.2% from 2023.

• Strong commercial and SBA loan growth, especially in construction, investor CRE, and small business lending, drove higher loan yields, revenue diversification, and non-interest income up 81% year-over-year.

• Operating leverage improved as revenue growth outpaced expense growth, supporting profitability.

• Entered 2025 with strong momentum, solid liquidity, and capital levels, positioning for continued earnings and margin expansion.

• Capital position remains solid with TCE/TA at 6.62% and CET1 ratio at 9.30%.

Financial highlights

• Q4 net interest income was $24.7 million (FTE), up 17% year-over-year and 8% sequentially; full-year net interest income was $87.4 million, up 16.7% year-over-year.

• Net interest margin for Q4 was 1.75% (FTE), up 5 bps sequentially; full-year NIM was 1.65%, up 9 bps year-over-year.

• Noninterest income for Q4 was $16 million, up 32.5% sequentially, including $4.7 million in prepayment and swap gains; adjusted noninterest income was $11.2 million, down 7% sequentially.

• Noninterest expense for Q4 was $24 million, up 5.1% from Q3, mainly due to higher salaries, benefits, and deposit insurance premiums.

• Allowance for credit losses to total loans was 1.07%, down 6 bps sequentially; net charge-offs to average loans rose to 0.91% in Q4.

Outlook and guidance

• Projected loan growth of 10%-12% and deposit growth of 5%-7% for 2025.

• Annual net interest income expected to increase in the mid-30% range, with net interest margin reaching 2.20%-2.30% by Q4 2025.

• Core non-interest income forecasted to rise 9%-12% over 2024 (excluding one-time gains).

• Provision for credit losses modeled to be 15%-20% higher than 2024, reflecting conservative credit outlook.

• Non-interest expense expected to increase 10%-15% in 2025 due to continued investment in personnel and technology.