Business
First Internet Bancorp : Second Quarter 2025 Financial Results Presentation
First Internet Bancorp : Second Quarter 2025 Financial Results
About this update from First Internet Bancorp
[{"type":"text","content":"\n \n Financial Results Second Quarter 2025\n \n \n \n Credit Update\n \n \n Net charge-offs of $14.3 million in 2Q25; primarily small business lending and franchise finance with $7.3 million of specific reserves in place\n \n \n Nonperforming loans increased $9.3 million from 1Q25 to $43.5 million as of June 30, 2025, representing 1.00% of total loans\n \n \n Primarily driven by franchise finance loans moved to nonaccrual with related specific reserves\n \n \n NPLs / total loans is in line with industry-wide 1.00% nonperforming loans (as published by the Federal Reserve)\n \n \n Total delinquencies 30 days or more past due (excluding nonperforming loans) declined to 0.62% of total performing loans, down from 0.77% as of March 31, 2025\n \n \n Franchise Finance Update\n \n \n Actively working on resolution strategies with identified problem loans\n \n \n Moved $12.6 million to nonaccrual in 2Q25 with related specific reserves of $4.5 million\n \n \n Delinquencies up modestly from March 31, 2025 but loan count is low - 9 loans out of 633 total loans in the portfolio\n \n \n Working with borrowers in earlier stage of delinquency to pursue solutions that minimize losses\n \n \n Pace of new delinquencies has slowed\n \n \n No loans on deferral as of June 30, 2025, down from 22 loans at the end of 2024 (leading indicator of problem loans)\n \n \n Recent success with workout strategies - recovery rate of 75% on certain problem loans\n \n \n \n Small Business Lending Update\n \n \n $1.8 billion in total balances originated since January 1, 2020 as a nationwide, generalist lender\n \n \n Credit experience in the Company's portfolio is consistent with publicly disclosed data regarding the SBA 7(a) program portfolio for all lenders\n \n \n Nonaccrual loans and net charge-offs elevated in the 2022-2023 vintages\n \n \n Select industries have underperformed on a relative basis\n \n \n Successive refinements to our credit approval criteria and processes, beginning in 2023, have led to improved performance\n \n \n Nonaccrual loans appear to have plateaued\n \n \n Delinquencies as of June 30, 2025 are down $2.4 million, or 23%, from December 31, 2024 and down $7.4 million, or 48%, from March 31, 2025\n \n \n $3.7 million on deferral as of June 30, 2025 - down from $10.4 million as of December 31, 2024\n \n \n Secondary market sales deferred du...