First Internet Bancorp (INBK) Q4 2025 earnings summary

Executive summary

• Achieved Q4 2025 net income of $5.3 million and adjusted net income of $5.6 million (EPS $0.60, adjusted EPS $0.64), with strong core earnings and operational efficiency.

• Full-year 2025 net income was $25.3 million, with diluted EPS of $2.88.

• Maintained nine consecutive quarters of interest income growth, driven by digital-first banking, BaaS, and fintech partnerships.

• Completed a strategic $850 million loan sale, strengthening capital and enhancing rate risk profile.

• Credit issues isolated to SBA and franchise finance portfolios, with enhanced risk management and analytics implemented.

Financial highlights

• Adjusted Q4 revenue was $42.1 million, up 21% year-over-year; adjusted PPNR was $17.9 million, up 66% year-over-year.

• Net interest income for Q4 was $30.3 million (up 29% year-over-year); FTE net interest income was $31.5 million.

• Net interest margin improved to 2.22% (FTE NIM 2.30%), up 55 bps year-over-year.

• Total loan balances at year-end were $3.7 billion, up 4% sequentially; total deposits were $4.8 billion.

• Tangible book value per share increased to $40.87 at year-end 2025.

Outlook and guidance

• 2026 loan growth expected at 15%-17%, with net interest margin projected to reach 2.75%-2.80% by Q4 2026.

• Full-year 2026 net interest income guidance: $155-$160 million; non-interest income: $33-$35 million.

• Operating expenses projected at $111-$112 million, reflecting continued tech and AI investment.

• Provision for credit losses guided at $50-$53 million for 2026, with elevated provisions in H1 and improvement expected in H2.

• 2026 EPS guidance: $2.35-$2.45.