First Internet Bancorp · NASDAQ:INBK

First Internet Bancorp — Q1 2025 Earnings Presentation

29 slides from First Internet Bancorp's earnings presentation, Apr 24, 2025

  1. Slide 1: Financial Results First Quarter 2025

    Financial Results First 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: First Quarter 2025 Highlights

    First Quarter 2025 Highlights  Net income of $0.9 million and diluted EPS of $0.11  Net interest margin of 1.82% and FTE NIM of 1.91%1,2, up 15 and 16 bps respectively from 4Q24  Total revenue of $35.5 million1, up 2.2% from adjusted 4Q24 and 22.2% from 1Q24  Deposit costs declined 12 bps while

  4. Slide 4: Loan Portfolio Overview

    Loan Portfolio Overview  Total portfolio loan balances increased $83.8 million, or 2.0%, from 4Q24  Commercial loan balances increased $89.5 million, or 2.7%, from 4Q24  Consumer loan balances decreased $3.7 million, or 0.5%, from 4Q24  1Q25 funded portfolio loan origination yields were 7.78%, u

  5. Slide 5: Deposit Composition

    Deposit Composition  Total deposits increased 0.3% from 4Q24 and are up 15.7% from 1Q24  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

  6. Slide 6: Liquidity and 1Q25 Deposit Update

    Liquidity and 1Q25 Deposit Update  Cash and unused borrowing capacity totaled $2.1 billion at March 31, 2025 – Currently represents 180% of total uninsured deposits and 230% of adjusted uninsured deposits  New deposit production driven by fintech partnerships  Deposit production and on-balance sh

  7. Slide 7: Net Interest Income and Net Interest Margin

    Net Interest Income and Net Interest Margin  Net interest income on a GAAP and FTE basis were up Net Interest Income – GAAP and FTE1 6.6% and 6.3%, respectively, from 4Q24 Dollars in millions $26.3 $24.7  NIM and FTE NIM1 benefiting from declining interest- $21.9 $22.5 $22.9 bearing liability cost

  8. Slide 8: Net Interest Margin Drivers

    Net Interest Margin Drivers  Linked-quarter FTE NIM1 increased 16 bps from 4Q24; benefited from lower interest-bearing liability costs – Weighted average yield of 7.78% on funded portfolio originations during 1Q25, remaining well above total portfolio yield – Securities yields were up 12 bps while

  9. Slide 9: Noninterest Income

    Noninterest Income  Noninterest income of $10.4 million, down 34.6% from $15.9 million in 4Q24 – Compared to adjusted noninterest income1 in 4Q24, 1Q25 was down $0.8 million, or 6.9%  Gain on sale of loans of almost $8.7 million, up 0.9% from $8.6 million in 4Q24 – SBA loan sale volume up 1.9% fro

  10. Slide 10: Noninterest Expense

    Noninterest Expense  Noninterest expense of $23.6 million, down 1.7% from $24.0 million in 4Q24  Salaries and employee benefits decreased $0.9 million, or 6.7%, due primarily to lower incentive compensation  Consulting and professional fees increased $0.3 million, or 27.0%, due to certain seasona

  11. Slide 11: Asset Quality

    Asset Quality  Allowance for credit losses to total loans of 1.11% in 1Q25, up 4 bps from 4Q24 – Small business lending ACL to unguaranteed balances of 5.8%  Quarterly provision for credit losses was $11.9 million, compared to $7.2 million in 4Q24 – Increase in provision reflects NCO action taken

  12. Slide 12: Capital

    Capital  Tangible common equity to tangible assets decreased 7 bps from 4Q24 to 6.55%1  Tangible book value per share of $44.041, up 0.6% from 4Q24 and up 5.3% from 1Q24  CET1 and TRBC ratios at both the Company and the Bank, adjusted for all unrealized securities losses, remain well above regula

  13. Slide 13: Small Business Lending

    Small Business Lending  $353.4 million of balances as of March 31, 2025  Nationwide platform providing growth capital to entrepreneurs and small business owners  Diversified by geography and industry type  8th largest Small Business Administration 7(a) lender for the SBA’s 2025 fiscal year-to-da

  14. Slide 14: Construction and Investor Commercial Real Estate

    Construction and Investor Commercial Real Estate  $769.0 million of combined balances as of March 31, 2025  1Q25 unfunded commitment balances – Commercial construction/development: $392.2 million  Average current loan balance of $11.0 million for investor CRE – Residential construction/developmen

  15. Slide 15: Single Tenant Lease Financing

    Single Tenant Lease Financing  $950.8 million of balances as of March 31, 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%

  16. Slide 16: Public Finance

    Public Finance  $482.6 million of balances as of March 31, 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 dev

  17. Slide 17: C&I and Owner-Occupied Commercial Real Estate

    C&I and Owner-Occupied Commercial Real Estate  $190.2 million of combined balances as of March 31, 2025  Minimal office exposure; 1.2% of combined loan balances consisting of suburban office space  Current C&I LOC utilization of 37%  Average loan sizes  C&I: $685,000  Owner-occupied CRE: $876,

  18. Slide 18: Franchise Finance

    Franchise Finance  $514.7 million of balances as of March 31, 2025  Focused on providing growth financing to franchisees in a variety of industry segments  Diversified by industry, geography and brand  Average loan size of $0.8 million Portfolio Mix by Borrower Use Portfolio Mix by State Portfol

  19. Slide 19: Healthcare Finance

    Healthcare Finance  $171.4 million of balances as of March 31, 2025  Average loan size of $391,000  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 5% Acquisition 9

  20. Slide 20: Residential Mortgage

    Residential Mortgage  $385.1 million of balances as of March 31, 2025 (includes home equity balances)  Historically direct-to-consumer originations centrally located at corporate headquarters  Focused on high quality borrowers – Average loan size of $201,000 – Average credit score at origination

  21. Slide 21: Specialty Consumer

    Specialty Consumer  $412.6 million of balances as of March 31, 2025  Direct-to-consumer and nationwide dealer network originations  Focused on high quality borrowers – Average credit score at origination of 778 – Average loan size of $27,000  Strong historical credit performance Concentration by

  22. Slide 22: Appendix

    Appendix 22

  23. Slide 23: Loan Portfolio Composition

    Loan Portfolio Composition Dollars in thousands 2022 2023 1Q24 2Q24 3Q24 4Q24 1Q25 Commercial loans Commercial and industrial $ 126,108 $ 129,349 $ 133,897 $ 115,585 $ 111,199 $ 120,175 $ 140,239 Owner-occupied commercial real estate 61,836 57,286 57,787 58,089 56,461 53,591 49,954 Investor commerci

  24. Slide 24: 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 1Q25 Total equity - GAAP $304,913 $330,944 $380,338 $364,974 $362,795 $384,063 $387,747 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) Tangible c

  25. Slide 25: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures Dollars in thousands, except for per share data 1Q24 2Q24 3Q24 4Q24 1Q25 Total equity - GAAP $366,739 $371,953 $385,129 $384,063 $387,747 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) Tangible common equity $362,052 $367,266 $380,442 $379

  26. Slide 26: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures Dollars in thousands, except for per share data 1Q24 2Q24 3Q24 4Q24 1Q25 Total revenue - GAAP $29,081 $32,360 $33,794 $39,487 $35,523 Adjustments: Gain on prepayment of FHLB advance - - - (1,829) - Gain on termination of swaps - - - (2,904) - Adjusted re

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

    Reconciliation of Non-GAAP Financial Measures Dollars in thousands, except for per share data 1Q24 2Q24 3Q24 4Q24 1Q25 Noninterest expense to average assets 1.62% 1.68% 1.64% 1.65% 1.66% Effect of IT termination fees 0.00% (0.03%) 0.00% 0.00% 0.00% Effect of anniversary expenses 0.00% (0.01%) 0.00%

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

    Reconciliation of Non-GAAP Financial Measures Dollars in thousands, except for per share data 1Q24 2Q24 3Q24 4Q24 1Q25 Diluted average common shares outstanding 8,750,297 8,656,215 8,768,731 8,788,793 8,784,970 Diluted earnings per share - GAAP $ 0.59 $ 0.67 $ 0.80 $ 0.83 $ 0.11 Adjustments: Effect

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

    Reconciliation of Non-GAAP Financial Measures Dollars in thousands 1Q25 Tangible common equity $383,060 Adjustments: Accumulated other comprehensive loss 29,157 Adjusted tangible common equity $412,217 Tangible assets $5,846,921 Adjustments: Cash in excess of $300 million (94,454) Adjusted tangible

First Internet Bancorp — Q1 2025 Earnings Presentation on 6ix