First Internet Bancorp · NASDAQ:INBK

First Internet Bancorp — Q2 2025 Earnings Presentation

32 slides from First Internet Bancorp's earnings presentation, Jul 24, 2025

  1. Slide 1: Financial Results Second Quarter 2025

    Financial Results Second Quarter 2025

  2. Slide 2: Forward-Looking Statements & Non-GAAP Financial Measures

    Forward-Looking Statements & Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements with respect to the financial condition, results of operations

  3. Slide 3: Credit Update

    Credit Update Credit Update  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  Nonperforming loans increased $9.3 million from 1Q25 to $43.5 million as of June 30, 2025, representing 1.00% of total loan

  4. Slide 4: Credit Update: Small Business Lending

    Credit Update Small Business Lending Update  $1.8 billion in total balances originated since January 1, 2020 as a nationwide, generalist lender  Credit experience in the Company’s portfolio is consistent with publicly disclosed data regarding the SBA 7(a) program portfolio for all lenders – Nonacc

  5. Slide 5: Financial Outlook

    Financial Outlook  Continued net interest income and net interest margin expansion through combination of higher loan origination yields and deposit repricing  Gain on sale of SBA 7(a) loans reverts to normalized levels as significant loan sale activity resumes in 3Q25  Continued uncertainty arou

  6. Slide 6: Second Quarter 2025 Highlights

    Second Quarter 2025 Highlights  Net income of $0.2 million and diluted EPS of $0.02  Net interest margin of 1.96% and FTE NIM of 2.04%1,2, up 14 and 13 bps respectively from 1Q25  Total revenue of $33.5 million, down 5.6% from 1Q25 and up 3.7% from 2Q24  Deposit costs declined 9 bps while the yi

  7. Slide 7: Loan Portfolio Overview

    Loan Portfolio Overview  Total portfolio loan balances increased $108.2 million, or 2.5%, from 1Q25  Commercial loan balances increased $108.2 million, or 3.2%, from 1Q25  Consumer loan balances decreased $0.5 million, or 0.1%, from 1Q25  2Q25 funded portfolio loan origination yields were 7.55%,

  8. Slide 8: Deposit Composition

    Deposit Composition  Total deposits increased 7.1% from 1Q25 and are up 24.0% from 2Q24  Diversified deposit base comprised of consumer, small business, fintech, commercial and public funds  Deposit base is further diversified by product type among checking, money market/savings and CDs  Quarter

  9. Slide 9: Liquidity and 2Q25 Deposit Update

    Liquidity and 2Q25 Deposit Update  Cash and unused borrowing capacity totaled $2.3 billion at June 30, 2025 – Currently represents 161% of total uninsured deposits and 200% of adjusted uninsured deposits  New deposit production driven by fintech partnerships and CD growth  Deposit production and

  10. Slide 10: Net Interest Income and Net Interest Margin

    Net Interest Income and Net Interest Margin  Net interest income on a GAAP and FTE basis was up Net Interest Income – GAAP and FTE1 11.5% and 11.0%, respectively, from 1Q25 Dollars in millions $29.1  NIM and FTE NIM1 benefitted from declining interest- $24.7 $26.3 bearing liability costs while ass

  11. Slide 11: Net Interest Margin Drivers

    Net Interest Margin Drivers  Linked-quarter FTE NIM1 increased 13 bps from 1Q25; benefited from lower interest-bearing liability costs – Weighted average yield of 7.55% on funded portfolio originations during 2Q25, remaining well above total portfolio yield – Securities yields were up 7 bps while t

  12. Slide 12: Noninterest Income

    Noninterest Income  Noninterest income of $5.6 million, down 46.7% from $10.4 million in 1Q25  Gain on sale of loans of $1.7 million, down 80.7% from $8.6 million in 1Q25 – SBA loan sale volume down significantly from 1Q25 while net gain on sale premiums declined 62 bps – SBA loan sale volume impa

  13. Slide 13: Noninterest Expense

    Noninterest Expense  Noninterest expense of $21.8 million, down 7.5% from $23.6 million in 1Q25  Salaries and employee benefits decreased $2.2 million, or 17.1%, due primarily to a reduction in incentive compensation  Consulting and professional fees decreased $0.3 million, or 23.8%, due to lower

  14. Slide 14: Asset Quality

    Asset Quality  Allowance for credit losses to total loans of 1.07% in 2Q25, down 4 bps from 1Q25 – Small business lending ACL to unguaranteed balances of 4.10%  Quarterly provision for credit losses was $13.6 million, compared to $11.9 million in 1Q25 – Increase in provision reflects NCOs and spec

  15. Slide 15: Capital

    Capital  Tangible common equity to tangible assets decreased 20 bps from 1Q25 to 6.35%1  Tangible book value per share of $44.251, up 0.5% from 1Q25 and up 4.4% from 2Q24  CET1 and TRBC ratios at both the Company and the Bank, adjusted for all unrealized securities losses, remain well above regul

  16. Slide 16: Small Business Lending

    Small Business Lending  $383.5 million of balances as of June 30, 2025  Nationwide platform providing growth capital to entrepreneurs and small business owners  7th largest Small Business Administration 7(a) lender for the SBA’s 2025 fiscal year-to-date Managed SBA 7(a) Loans Portfolio Mix by Sta

  17. Slide 17: Construction and Investor Commercial Real Estate

    Construction and Investor Commercial Real Estate  $846.1 million of combined balances as of June 30, 2025  2Q25 unfunded commitment balances – Commercial construction/development: $387.3 million  Average current loan balance of $14.3 million for investor CRE – Residential construction/development

  18. Slide 18: Single Tenant Lease Financing

    Single Tenant Lease Financing  $970.0 million of balances as of June 30, 2025  Strong historical credit performance  Long-term financing of single tenant properties occupied  No delinquencies in this portfolio by historically strong national and regional tenants  Minimal office exposure; 1.2% o

  19. Slide 19: Public Finance

    Public Finance  $476.3 million of balances as of June 30, 2025  No delinquencies or losses since inception  Provides a range of credit solutions for government and not-for-profit entities  Borrowers’ needs include short-term financing, debt refinancing, infrastructure improvements, economic deve

  20. Slide 20: C&I and Owner-Occupied Commercial Real Estate

    C&I and Owner-Occupied Commercial Real Estate  $224.6 million of combined balances as of June 30, 2025  Minimal office exposure; 1.0% of combined loan balances consisting of suburban office space  Current C&I LOC utilization of 38%  Average loan sizes  C&I: $662,000  Owner-occupied CRE: $879,0

  21. Slide 21: Franchise Finance

    Franchise Finance  $479.8 million of balances as of June 30, 2025  Focused on providing growth financing to franchisees in a variety of industry segments  Diversified by industry, geography and brand  Average loan size of $0.7 million Portfolio Mix by Borrower Use Portfolio Mix by State Portfoli

  22. Slide 22: Healthcare Finance

    Healthcare Finance  $160.1 million of balances as of June 30, 2025  Average loan size of $378,000  Strong historical credit performance to date  No delinquencies in this portfolio Portfolio Mix by Borrower Use Portfolio Mix by Borrower Portfolio Mix by State 5% Practice Refi or 3% Acquisition 10

  23. Slide 23: Residential Mortgage

    Residential Mortgage  $375.6 million of balances as of June 30, 2025 (includes home equity balances)  Historically direct-to-consumer originations centrally located at corporate headquarters  Focused on high quality borrowers – Average loan size of $200,000 – Average credit score at origination o

  24. Slide 24: Specialty Consumer

    Specialty Consumer  $421.6 million of balances as of June 30, 2025  Direct-to-consumer and nationwide dealer network originations  Focused on high quality borrowers – Average credit score at origination of 779 – Average loan size of $28,000  Strong historical credit performance Concentration by

  25. Slide 25: Appendix

    Appendix 25

  26. Slide 26: Loan Portfolio Composition

    Loan Portfolio Composition Dollars in thousands 2022 2023 2024 1Q25 2Q25 Commercial loans Commercial and industrial $ 126,108 $ 129,349 $ 120,175 $ 140,239 $ 174,475 Owner-occupied commercial real estate 61,836 57,286 53,591 49,954 50,096 Investor commercial real estate 93,121 132,077 269,431 297,87

  27. Slide 27: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures Dollars in thousands, except for per share data 2019 2020 2021 2022 2023 2024 2Q25 Total equity - GAAP $304,913 $330,944 $380,338 $364,974 $362,795 $384,063 $390,239 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) Tangible c

  28. Slide 28: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures Dollars in thousands, except for per share data 2Q24 3Q24 4Q24 1Q25 2Q25 Total equity - GAAP $371,953 $385,129 $384,063 $387,747 $390,239 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) Tangible common equity $367,266 $380,442 $379,376 $383

  29. Slide 29: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures Dollars in thousands, except for per share data 2Q24 3Q24 4Q24 1Q25 2Q25 Total revenue - GAAP $32,360 $33,794 $39,487 $35,523 $33,547 Adjustments: Gain on prepayment of FHLB advance - - (1,829) - - Gain on termination of swaps - - (2,904) - - Adjusted re

  30. Slide 30: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures Dollars in thousands, except for per share data 2Q24 3Q24 4Q24 1Q25 2Q25 Noninterest expense to average assets 1.68% 1.64% 1.65% 1.66% 1.48% Effect of IT termination fees (0.03%) 0.00% 0.00% 0.00% 0.00% Effect of anniversary expenses (0.01%) 0.00% 0.00%

  31. Slide 31: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures Dollars in thousands, except for per share data 2Q24 3Q24 4Q24 1Q25 2Q25 Diluted average common shares outstanding 8,656,215 8,768,731 8,788,793 8,784,970 8,760,374 Diluted earnings per share - GAAP $ 0.67 $ 0.80 $ 0.83 $ 0.11 $ 0.02 Adjustments: Effect

  32. Slide 32: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures Dollars in thousands 2Q25 Tangible common equity $385,552 Adjustments: Accumulated other comprehensive loss 26,567 Adjusted tangible common equity $412,119 Tangible assets $6,067,886 Adjustments: Cash in excess of $300 million (146,361) Adjusted tangible

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