First Internet Bancorp (INBK) Q4 2025 earnings summary

Executive summary

• Achieved Q4 2025 net income of $5.3 million (diluted EPS $0.60), adjusted net income of $5.6 million (adjusted EPS $0.64), and full-year net income of $25.3 million (EPS $2.88), reflecting strong core earnings and operational efficiency.

• Quarterly revenue rose 21% year-over-year, with net interest income up 29% and net interest margin expanding to 2.22% (FTE NIM 2.30%).

• Completed $850 million loan sale to Blackstone, strengthening capital and balance sheet flexibility.

• BaaS and fintech partnerships generated over $1.3 billion in new deposits, processed $165 billion in payments (up 225% from 2024), and drove recurring fee and interest income.

• Maintained top 10 SBA 7(a) lender status with $580 million in originations and expanded commercial lending pipelines.

Financial highlights

• Adjusted total revenue for Q4 was $42.1 million (up 21% year-over-year); adjusted pre-provision net revenue was $17.9 million (up 66%).

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

• Total loan balances at year-end were $3.7 billion (up 4% sequentially); total deposits were $4.8 billion (down slightly from Q3 2025).

• Tangible book value per share increased to $40.87, up 2.5% from Q3 2025.

• Provision for credit losses in Q4 was $12 million, mainly from $16 million in net charge-offs; net charge-offs to average loans was 1.68%.

Outlook and guidance

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

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

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

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

• 2026 EPS guidance: $2.35-$2.45.