EX-99.1 2 inbk-1q2024xex991.htm EX-99.1 Document



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First Internet Bancorp Reports First Quarter 2024 Results

Fishers, Indiana, April 24, 2024 – First Internet Bancorp (the “Company”) (Nasdaq: INBK), the parent company of First Internet Bank (the “Bank”), announced today financial and operational results for the first quarter ended March 31, 2024.

First Quarter 2024 Financial Highlights

•Net income of $5.2 million and diluted earnings per share of $0.59, increases of 25.1% and 22.9%, respectively, from the fourth quarter of 2023

•Net interest income of $20.7 million and fully-taxable equivalent net interest income of $21.9 million, increases of 4.7% and 4.2%, respectively, from the fourth quarter of 2023

•Net interest margin of 1.66% and fully-taxable equivalent net interest margin of 1.75%, increases of 8 basis points and 7 basis points, respectively, from the fourth quarter of 2023

•Loan growth of $69.6 million, a 1.8% increase from the fourth quarter of 2023

•Deposit growth of $206.8 million, a 5.1% increase from the fourth quarter of 2023

•Loans to deposits ratio decreased to 91.5% from 94.4% in the fourth quarter of 2023

•Nonperforming loans to total loans of 0.33%; net charge-offs to average loans of 0.05%; office real estate exposure remains less than 1% of total loans

•Tangible common equity to tangible assets of 6.79%; excluding AOCI and adjusting for normalized cash balances, adjusted TCE / TA was 7.61%; CET1 ratio of 9.52%

•Repurchased 10,500 shares at an avg. price of $26.94; repurchased 513,025 shares at an avg. price of $18.58 since the beginning of 2023, reducing share count by 5.7%
•
•Tangible book value per share of $41.83, a 1.0% increase from the fourth quarter of 2023

“On our third quarter 2023 earnings conference call, we indicated that net interest margin and net interest income had likely bottomed and would soon trend higher,” said David Becker, Chairman and Chief Executive Officer. “Since then, while the rate environment has remained quite volatile, our net interest margin and net interest income have improved by 27 basis points and 19%, respectively, over the past two quarters, driving higher earnings and improved profitability.

“At the same time, we’ve improved the risk profile of our balance sheet by optimizing our loan portfolio, and further diversifying our revenue and earnings streams. Our balance sheet liquidity







position has strengthened, our capital position remains sturdy, and asset quality has been maintained. This strong foundation has also positioned us to remain on offense, as we continue to drive positive momentum in our SBA business, with strong production and another record level of gain on sale income during the first quarter. Amidst continued macroeconomic uncertainty, these developments leave us confident in our ability to drive further improvement in earnings and profitability over the remainder of the year.”

Net Interest Income and Net Interest Margin
Net interest income for the first quarter of 2024 was $20.7 million, compared to $19.8 million for the fourth quarter of 2023, and $19.6 million for the first quarter of 2023. On a fully-taxable equivalent basis, net interest income for the first quarter of 2024 was $21.9 million, compared to $21.0 million for both the fourth and first quarters of 2023.

Total interest income for the first quarter of 2024 was $68.2 million, an increase of 2.9% compared to the fourth quarter of 2023, and an increase of 31.0% compared to the first quarter of 2023. On a fully-taxable equivalent basis, total interest income for the first quarter of 2024 was $69.4 million, an increase of 2.7% compared to the fourth quarter of 2023, and an increase of 29.8% compared to the first quarter of 2023. The yield on average interest-earning assets for the first quarter of 2024 increased to 5.45% from 5.28% for the fourth quarter of 2023, due to a 23 basis point (“bp”) increase in the yield earned on loans and a 9 bp increase in the yield earned on securities, partially offset by a 6 bp decrease in the yield earned on other earning assets. Compared to the linked quarter, average loan balances increased $92.7 million, or 2.4%, and the average balance of securities increased $20.0 million, or 2.9%, while the average balance of other earning assets decreased $66.6 million, or 13.3%.

Interest income earned on commercial loans was higher due to increased average balances and the positive impact of higher rates in the variable rate construction and small business lending portfolios, as well as growth in the higher-yielding franchise finance portfolio. This was partially offset by lower average balances in the public finance and healthcare finance portfolios. The continued shift in the loan mix reflects our focus on variable rate and higher-yielding products, in part, to help improve the interest rate risk profile of our balance sheet.

In the consumer loan portfolio, interest income was up modestly due to the combination of slightly higher average balances and continued higher new origination yields in the trailers, RV and other consumer loan portfolios.

The yield on funded portfolio loan originations was 8.84% in the first quarter of 2024, relatively stable with the fourth quarter of 2023, and an increase of 108 bps compared to the first quarter of 2023.

Interest income earned on securities during the first quarter of 2024 increased $0.3 million, or 4.0%, compared to the fourth quarter of 2023 as the yield on the portfolio increased 9 bps to 3.81%, driven primarily by higher yields on new purchases and continued slower prepayment speeds on mortgage-backed securities. Additionally, the average balance of securities increased $20.0 million, or 2.9%, during the first quarter of 2024. Interest earned on other earning asset balances decreased $1.1 million, or 15.4%, in the first quarter of 2024 compared to the linked quarter, due primarily to lower average cash balances and slightly lower yields.

Total interest expense for the first quarter of 2024 was $47.4 million, an increase of $1.0 million, or 2.1%, compared to the linked quarter as short-term rates remained stable throughout the quarter while average interest-bearing deposit balances increased $51.5 million, or 1.3%. Interest expense related to interest-bearing deposits increased $1.1 million, or 2.6%, driven primarily by higher costs on certificates of deposits (“CDs”), interest-bearing demand deposits and BaaS – brokered deposits.







The cost of interest-bearing deposits was 4.25% for the first quarter of 2024, compared to 4.14% for the fourth quarter of 2023.

Average CD balances increased $22.6 million, or 1.4%, compared to the linked quarter, driven by strong consumer demand, while the cost of funds increased 15 bps. The increase in the cost of CDs is the lowest in the past seven quarters, reflecting the narrowing gap between rates on new production and maturities. The average balance of interest-bearing demand deposits increased $32.7 million, or 8.5%, due to growth in fintech partnership deposits, while the cost of funds increased 32 bps. The average balance of BaaS – brokered deposits increased $23.3 million, or 37.5%, due to higher payments volumes, while the cost of funds increased 1 bp.

These increases were partially offset by lower average brokered deposit balances, which decreased $19.4 million, or 3.1%, as excess liquidity was used to redeem $17.9 million of callable brokered CDs.

Net interest margin (“NIM”) was 1.66% for the first quarter of 2024, up from 1.58% for the fourth quarter of 2023 and down from 1.76% for the first quarter of 2023. Fully-taxable equivalent NIM (“FTE NIM”) was 1.75% for the first quarter of 2024, up from 1.68% for the fourth quarter of 2023 and down from 1.89% for the first quarter of 2023. The increases in NIM and FTE NIM compared to the linked quarter were driven primarily by higher yields on loans and securities, as well as higher average loan and securities balances, partially offset by higher interest-bearing deposit costs and lower average cash balances.

Noninterest Income
Noninterest income for the first quarter of 2024 was $8.3 million, compared to $7.4 million for the fourth quarter of 2023, and $5.4 million for the first quarter of 2023. Gain on sale of loans totaled $6.5 million in the first quarter of 2024, increasing $0.5 million, or 8.4%, compared to the linked quarter. Gain on sale revenue consisted almost entirely of sales of U.S. Small Business Administration (“SBA”) 7(a) guaranteed loans during the first quarter of 2024. Loan sale volume was down seasonally, decreasing 11.5% compared to the linked quarter, but was more than offset by a 158 bp increase in net premiums. Net loan servicing revenue increased $0.5 million during the quarter due to growth in the servicing portfolio and the change in the fair value adjustment to the loan servicing asset.

Noninterest Expense
Noninterest expense totaled $21.0 million for the first quarter of 2024, compared to $20.1 million for the fourth quarter of 2023, and $21.0 million for the first quarter of 2023, representing increases of 4.8% and 0.3%, respectively. The increase of $1.0 million compared to the linked quarter was due primarily to higher salaries and employee benefits and marketing expenses.

The increase in salaries and employee benefits was due primarily to annual resets on certain employee benefits, payroll taxes and incentive compensation accruals, as well as annual merit increases and new hires, partially offset by lower small business incentive compensation and lower medical claims. The increase in marketing expenses was due mainly to higher advertising, media and sponsorship costs.

Income Taxes
The Company recorded income tax expense of $0.4 million and an effective tax rate of 7.6% for the first quarter of 2024, compared to income tax benefits of $0.6 million and $2.3 million for the fourth and first quarters of 2023, respectively.

Loans and Credit Quality
Total loans as of March 31, 2024 were $3.9 billion, an increase of $69.6 million, or 1.8%, compared to December 31, 2023, and an increase of $302.6 million, or 8.4%, compared to March 31, 2023. Total







commercial loan balances were $3.1 billion as of March 31, 2024, an increase of $75.2 million, or 2.5%, compared to December 31, 2023, and an increase of $275.4 million, or 9.8%, compared to March 31, 2023. Compared to the linked quarter, the increase in commercial loan balances was driven primarily by growth in higher yielding construction, small business lending and franchise finance balances. These items were partially offset by decreases in the fixed-rate public finance and healthcare finance portfolios.

Total consumer loan balances were $793.4 million as of March 31, 2024, a decrease of $3.5 million, or 0.4%, compared to December 31, 2023, and an increase of $37.1 million, or 4.9%, compared to March 31, 2023. The slight decline compared to the linked quarter was due primarily to a decrease in the residential mortgage portfolio, partially offset by an increase in the trailers portfolio.

Total delinquencies 30 days or more past due were 0.53% of total loans as of March 31, 2024, compared to 0.31% at December 31, 2023, and 0.13% as of March 31, 2023. The increase during the first quarter of 2024 was due primarily to an increase in delinquencies in the small business lending and franchise finance portfolios, some of which was due to the timing of principal and interest payments. Subsequent to quarter end, payments were received from a number of borrowers and as of the date of this release, delinquencies 30 days or more past due declined to 0.32% of total loans, relatively consistent with the linked quarter.

Nonperforming loans were 0.33% of total loans as of March 31, 2024, compared to 0.26% as of both December 31, 2023 and March 31, 2023. Nonperforming loans totaled $13.1 million at March 31, 2024, up from $10.0 million at December 31, 2023. The increase in nonperforming loans was due primarily to an increase in nonperforming small business lending loans and, to a lesser extent, an increase in nonperforming residential mortgage loans.

The allowance for credit losses (“ACL”) as a percentage of total loans was 1.05% as of March 31, 2024, compared to 1.01% as of December 31, 2023, and 1.02% as of March 31, 2023. The increase in the ACL reflects the addition of specific reserves on nonperforming small business lending loans, as well as growth in certain loan portfolios, partially offset by the positive impact of economic data on forecasted loss rates and qualitative factors on other portfolios.

Net charge-offs of $0.5 million were recognized during the first quarter of 2024, resulting in net charge-offs to average loans of 0.05%, compared to $1.2 million, or 0.12%, for the fourth quarter of 2023, and $7.2 million, or 0.82%, for the first quarter of 2023. Net charge-offs in the first quarter of 2024 were driven primarily by small business and consumer lending.

The provision for credit losses in the first quarter of 2024 was $2.4 million, compared to $3.6 million for the fourth quarter of 2023, and $9.4 million for the first quarter of 2023. The provision for the first quarter of 2024 was driven primarily by specific reserves, growth in certain loan portfolios and net charge-offs, partially offset by the positive impact of economic forecasts on other portfolios.

Capital
As of March 31, 2024, total shareholders’ equity was $366.7 million, an increase of $3.9 million, or 1.1%, compared to December 31, 2023, and an increase of $11.2 million, or 3.1%, compared to March 31, 2023. The increase in shareholders’ equity during the first quarter of 2024 compared to the linked quarter was due primarily to the net income earned during the quarter, partially offset by a slight increase in accumulated other comprehensive loss. Book value per common share increased to $42.37 as of March 31, 2024, up from $41.97 as of December 31, 2023, and $39.76 as of March 31, 2023. Tangible book value per share was $41.83 as of March 31, 2024, up from $41.43 as of December 31, 2023, and $39.23 as of March 31, 2023.








In connection with its previously announced stock repurchase program, the Company repurchased 10,500 shares of its common stock during the first quarter of 2024 at an average price of $26.94 per share. The Company has repurchased $41.7 million of stock under its authorized programs since November of 2021.

The following table presents the Company’s and the Bank’s regulatory and other capital ratios as of March 31, 2024.
As of March 31, 2024
CompanyBank
Total shareholders’ equity to assets 6.87%8.39%
Tangible common equity to tangible assets 1
6.79%8.31%
Tier 1 leverage ratio 2
7.33%8.92%
Common equity tier 1 capital ratio 2
9.52%11.60%
Tier 1 capital ratio 2
9.52%11.60%
Total risk-based capital ratio 2
13.18%12.66%
1 This information represents a non-GAAP financial measure. For a discussion of non-GAAP financial measures, see the section below entitled "Non-GAAP Financial Measures."
2 Regulatory capital ratios are preliminary pending filing of the Company's and the Bank's regulatory reports.

Conference Call and Webcast
The Company will host a conference call and webcast at 2:00 p.m. Eastern Time on Thursday, April 25, 2024 to discuss its quarterly financial results. The call can be accessed via telephone at (888) 259-6580; access code: 28021175. A recorded replay can be accessed through May 25, 2024 by dialing (877) 674-7070; access code: 021175.

Additionally, interested parties can listen to a live webcast of the call on the Company's website at www.firstinternetbancorp.com. An archived version of the webcast will be available in the same location shortly after the live call has ended.

About First Internet Bancorp
First Internet Bancorp is a financial holding company with assets of $5.3 billion as of March 31, 2024. The Company’s subsidiary, First Internet Bank, opened for business in 1999 as an industry pioneer in the branchless delivery of banking services. First Internet Bank provides consumer and small business deposit, SBA financing, franchise finance, consumer loans, and specialty finance services nationally as well as commercial real estate loans, construction loans, commercial and industrial loans, and treasury management services on a regional basis. First Internet Bancorp’s common stock trades on the Nasdaq Global Select Market under the symbol “INBK”. Additional information about the Company is available at www.firstinternetbancorp.com and additional information about First Internet Bank, including its products and services, is available at www.firstib.com.
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Forward-Looking Statements
This press release 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, trends in lending policies and loan programs, plans and prospective business partnerships, objectives, future performance and business of the Company. Forward-looking statements are generally identifiable by the use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “growth,” “help,” :improve,” “may,” “ongoing,” “opportunities,” “pending,” “plan,” “position,” “preliminary,” “remain,” “should,” “thereafter,” “well-positioned,” “will,” or other similar expressions. Forward-looking statements are not a guarantee of future performance or results, are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the information in the forward-looking statements. Such statements are subject to certain risks and uncertainties including: our business and operations and the business and operations of our vendors and customers: general economic conditions, whether national or regional, and conditions in the lending







markets in which we participate that may have an adverse effect on the demand for our loans and other products; our credit quality and related levels of nonperforming assets and loan losses, and the value and salability of the real estate that is the collateral for our loans. Other factors that may cause such differences include: failures or breaches of or interruptions in the communications and information systems on which we rely to conduct our business; failure of our plans to grow our commercial and industrial, construction, SBA, and franchise finance loan portfolios; competition with national, regional and community financial institutions; the loss of any key members of senior management; the anticipated impacts of inflation and rising interest rates on the general economy; risks relating to the regulation of financial institutions; and other factors identified in reports we file with the U.S. Securities and Exchange Commission. All statements in this press release, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, average tangible common equity, return on average tangible common equity, total interest income – FTE, net interest income – FTE, net interest margin – FTE, adjusted total revenue, adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax provision (benefit), adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average shareholders’ equity and adjusted return on average tangible common equity are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the table at the end of this release under the caption “Reconciliation of Non-GAAP Financial Measures.”
”




Contact Information:
Investors/AnalystsMedia
Paula DeemerBLASTmedia for First Internet Bank
Director of Corporate AdministrationZach Weismiller
(317) 428-4628firstib@blastmedia.com
investors@firstib.com







First Internet Bancorp
Summary Financial Information (unaudited)
Dollar amounts in thousands, except per share data
Three Months Ended
March 31,
2024		December 31,
2023		March 31,
2023
Net Income (loss)$5,181 4,143 $(3,017)
Per share and share information
Earnings (loss) per share - basic$0.60 $0.48 $(0.33)
Earnings (loss) per share - diluted0.59 0.48 (0.33)
Dividends declared per share0.06 0.06 0.06 
Book value per common share42.37 41.97 39.76 
Tangible book value per common share 1
41.83 41.43 39.23 
Common shares outstanding8,655,854 8,644,451 8,943,477 
Average common shares outstanding:
Basic8,679,429 8,683,331 9,024,072 
Diluted8,750,297 8,720,078 9,024,072 
Performance ratios
Return on average assets0.40 %0.32 %(0.26 %)
Return on average shareholders' equity5.64 %4.66 %(3.37 %)
Return on average tangible common equity 1
5.71 %4.72 %(3.41 %)
Net interest margin1.66 %1.58 %1.76 %
Net interest margin - FTE 1,2
1.75 %1.68 %1.89 %
Capital ratios 3
Total shareholders' equity to assets6.87 %7.02 %7.53 %
Tangible common equity to tangible assets 1
6.79 %6.94 %7.44 %
Tier 1 leverage ratio7.33 %7.33 %8.10 %
Common equity tier 1 capital ratio9.52 %9.60 %10.30 %
Tier 1 capital ratio9.52 %9.60 %10.30 %
Total risk-based capital ratio13.18 %13.23 %14.13 %
Asset quality
Nonperforming loans$13,050 $9,962 $9,221 
Nonperforming assets13,425 10,354 9,346 
Nonperforming loans to loans0.33 %0.26 %0.26 %
Nonperforming assets to total assets0.25 %0.20 %0.20 %
Allowance for credit losses - loans to:
Loans1.05 %1.01 %1.02 %
Nonperforming loans313.3 %389.2 %400.0 %
Net charge-offs to average loans0.05 %0.12 %0.82 %
Average balance sheet information
Loans$3,889,667 $3,799,211 $3,573,827 
Total securities703,509 683,468 585,270 
Other earning assets434,118 500,733 331,294 
Total interest-earning assets5,030,216 4,984,133 4,499,782 
Total assets5,207,936 5,154,285 4,647,156 
Noninterest-bearing deposits113,341 123,351 134,988 
Interest-bearing deposits3,987,009 3,935,519 3,411,969 
Total deposits4,100,350 4,058,870 3,546,957 
Shareholders' equity369,371 353,037 363,273 

1 Refer to "Non-GAAP Financial Measures" section above and "Reconciliation of Non-GAAP Financial Measures" below
2 On a fully-taxable equivalent (“FTE”) basis assuming a 21% tax rate
3 Regulatory capital ratios are preliminary pending filing of the Company's regulatory reports







First Internet Bancorp
Condensed Consolidated Balance Sheets (unaudited, except for December 31, 2023)
Dollar amounts in thousands
March 31,
2024		December 31,
2023		March 31,
2023
Assets
Cash and due from banks$6,638 $8,269 $27,741 
Interest-bearing deposits474,626 397,629 276,231 
Securities available-for-sale, at fair value482,431 474,855 395,833 
Securities held-to-maturity, at amortized cost, net of allowance for credit losses235,738 227,153 210,761 
Loans held-for-sale22,589 22,052 18,144 
Loans3,909,804 3,840,220 3,607,242 
Allowance for credit losses - loans(40,891)(38,774)(36,879)
Net loans3,868,913 3,801,446 3,570,363 
Accrued interest receivable26,809 26,746 22,322 
Federal Home Loan Bank of Indianapolis stock28,350 28,350 28,350 
Cash surrender value of bank-owned life insurance41,154 40,882 40,105 
Premises and equipment, net73,231 73,463 74,248 
Goodwill4,687 4,687 4,687 
Servicing asset11,760 10,567 7,312 
Other real estate owned375 375 106 
Accrued income and other assets63,366 51,098 45,116 
Total assets$5,340,667 $5,167,572 $4,721,319 
Liabilities
Noninterest-bearing deposits$130,760 $123,464 $140,449 
Interest-bearing deposits4,143,008 3,943,509 3,481,841 
Total deposits4,273,768 4,066,973 3,622,290 
Advances from Federal Home Loan Bank574,936 614,934 614,929 
Subordinated debt104,915 104,838 104,608 
Accrued interest payable3,382 3,848 2,592 
Accrued expenses and other liabilities16,927 14,184 21,328 
Total liabilities4,973,928 4,804,777 4,365,747 
Shareholders' equity
Voting common stock184,720 184,700 189,202 
Retained earnings212,121 207,470 197,623 
Accumulated other comprehensive loss(30,102)(29,375)(31,253)
Total shareholders' equity366,739 362,795 355,572 
Total liabilities and shareholders' equity$5,340,667 $5,167,572 $4,721,319 







First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited)
Dollar amounts in thousands, except per share data
Three Months Ended
March 31,
2024		December 31,
2023		March 31,
2023
Interest income
Loans$55,435 $52,690 $43,843 
Securities - taxable5,694 5,447 3,606 
Securities - non-taxable969 962 798 
Other earning assets6,067 7,173 3,786 
Total interest income68,165 66,272 52,033 
Interest expense
Deposits42,129 41,078 27,270 
Other borrowed funds5,302 5,387 5,189 
Total interest expense47,431 46,465 32,459 
Net interest income20,734 19,807 19,574 
Provision for credit losses2,448 3,594 9,415 
Net interest income after provision for credit losses18,286 16,213 10,159 
Noninterest income
Service charges and fees220 216 209 
Loan servicing revenue1,323 1,134 785 
Loan servicing asset revaluation(434)(793)(55)
Mortgage banking activities— — 76 
Gain on sale of loans6,536 6,028 4,061 
Other702 816 370 
Total noninterest income8,347 7,401 5,446 
Noninterest expense
Salaries and employee benefits11,796 11,055 11,794 
Marketing, advertising and promotion736 518 844 
Consulting and professional fees853 893 926 
Data processing564 493 659 
Loan expenses1,445 1,371 1,977 
Premises and equipment2,826 2,846 2,777 
Deposit insurance premium1,145 1,334 543 
Other1,658 1,546 1,434 
Total noninterest expense21,023 20,056 20,954 
Income (loss) before income taxes5,610 3,558 (5,349)
Income tax provision (benefit)429 (585)(2,332)
Net income (loss)$5,181 $4,143 $(3,017)
Per common share data
Earnings (loss) per share - basic$0.60 $0.48 $(0.33)
Earnings (loss) per share - diluted$0.59 $0.48 $(0.33)
Dividends declared per share$0.06 $0.06 $0.06 

All periods presented have been reclassified to conform to the current period classification







First Internet Bancorp
Average Balances and Rates (unaudited)
Dollar amounts in thousands
Three Months Ended
March 31, 2024December 31, 2023March 31, 2023
Average BalanceInterest / DividendsYield / CostAverage BalanceInterest / DividendsYield / CostAverage BalanceInterest / DividendsYield / Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale 1
$3,892,589 $55,435 5.73 %$3,799,932 $52,690 5.50 %$3,583,218 $43,843 4.96 %
Securities - taxable627,216 5,694 3.65 %611,664 5,447 3.53 %511,923 3,606 2.86 %
Securities - non-taxable76,293 969 5.11 %71,804 962 5.32 %73,347 798 4.41 %
Other earning assets434,118 6,067 5.62 %500,733 7,173 5.68 %331,294 3,786 4.63 %
Total interest-earning assets5,030,216 68,165 5.45 %4,984,133 66,272 5.28 %4,499,782 52,033 4.69 %
Allowance for credit losses - loans(38,611)(36,792)(35,075)
Noninterest-earning assets216,331 206,944 182,449 
Total assets$5,207,936 $5,154,285 $4,647,156 
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits$415,106 $2,091 2.03 %$382,427 $1,646 1.71 %$333,642 $900 1.09 %
Savings accounts22,521 48 0.86 %22,394 48 0.85 %38,482 82 0.86 %
Money market accounts1,217,966 12,671 4.18 %1,225,781 12,739 4.12 %1,377,600 12,300 3.62 %
BaaS - brokered deposits85,366 931 4.39 %62,098 685 4.38 %14,741 138 3.80 %
Certificates and brokered deposits2,246,050 26,388 4.73 %2,242,819 25,960 4.59 %1,647,504 13,850 3.41 %
Total interest-bearing deposits3,987,009 42,129 4.25 %3,935,519 41,078 4.14 %3,411,969 27,270 3.24 %
Other borrowed funds716,735 5,302 2.98 %719,733 5,387 2.97 %719,499 5,189 2.92 %
Total interest-bearing liabilities4,703,744 47,431 4.06 %4,655,252 46,465 3.96 %4,131,468 32,459 3.19 %
Noninterest-bearing deposits113,341 123,351 134,988 
Other noninterest-bearing liabilities21,480 22,645 17,427 
Total liabilities4,838,565 4,801,248 4,283,883 
Shareholders' equity369,371 353,037 363,273 
Total liabilities and shareholders' equity$5,207,936 $5,154,285 $4,647,156 
Net interest income$20,734 $19,807 $19,574 
Interest rate spread1.39 %1.32 %1.50 %
Net interest margin1.66 %1.58 %1.76 %
Net interest margin - FTE 2,3
1.75 %1.68 %1.89 %
1 Includes nonaccrual loans
2 On a fully-taxable equivalent (“FTE”) basis assuming a 21% tax rate
3 Refer to "Non-GAAP Financial Measures" section above and "Reconciliation of Non-GAAP Financial Measures" below







First Internet Bancorp
Loans and Deposits (unaudited)
Dollar amounts in thousands
March 31, 2024December 31, 2023March 31, 2023
AmountPercentAmountPercentAmountPercent
Commercial loans
Commercial and industrial$133,897 3.4 %$129,349 3.4 %$113,198 3.1 %
Owner-occupied commercial real estate57,787 1.5 %57,286 1.5 %59,643 1.7 %
Investor commercial real estate128,276 3.3 %132,077 3.4 %142,174 3.9 %
Construction325,597 8.3 %261,750 6.8 %158,147 4.4 %
Single tenant lease financing941,597 24.1 %936,616 24.4 %952,533 26.4 %
Public finance498,262 12.7 %521,764 13.6 %604,898 16.8 %
Healthcare finance213,332 5.5 %222,793 5.8 %256,670 7.1 %
Small business lending 239,263 6.1 %218,506 5.7 %136,382 3.8 %
Franchise finance543,122 13.9 %525,783 13.7 %382,161 10.6 %
Total commercial loans3,081,133 78.8 %3,005,924 78.3 %2,805,806 77.8 %
Consumer loans
Residential mortgage390,009 10.0 %395,648 10.3 %392,062 10.9 %
Home equity22,753 0.6 %23,669 0.6 %26,160 0.7 %
Trailers191,353 4.9 %188,763 4.9 %172,640 4.8 %
Recreational vehicles145,475 3.7 %145,558 3.8 %128,307 3.6 %
Other consumer loans43,847 1.1 %43,293 1.1 %37,186 1.0 %
Total consumer loans793,437 20.3 %796,931 20.7 %756,355 21.0 %
Net deferred loan fees, premiums, discounts and other 1
35,234 0.9 %37,365 1.0 %45,081 1.2 %
Total loans$3,909,804 100.0 %$3,840,220 100.0 %$3,607,242 100.0 %
March 31, 2024December 31, 2023March 31, 2023
AmountPercentAmountPercentAmountPercent
Deposits
Noninterest-bearing deposits$130,760 3.1 %$123,464 3.0 %$140,449 3.9 %
Interest-bearing demand deposits423,529 9.9 %402,976 9.9 %351,641 9.7 %
Savings accounts23,554 0.6 %21,364 0.5 %32,762 0.9 %
Money market accounts1,251,230 29.2 %1,248,319 30.8 %1,254,013 34.6 %
BaaS - brokered deposits107,911 2.5 %74,401 1.8 %25,725 0.7 %
Certificates of deposits1,738,996 40.7 %1,605,156 39.5 %1,170,094 32.3 %
Brokered deposits 597,788 14.0 %591,293 14.5 %647,606 17.9 %
Total deposits$4,273,768 100.0 %$4,066,973 100.0 %$3,622,290 100.0 %

1 Includes carrying value adjustments of $26.9 million, $27.8 million and $31.5 million related to terminated interest rate swaps associated with public finance loans as of March 31, 2024, December 31, 2023 and March 31, 2023, respectively.








First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
Three Months Ended
March 31,
2024		December 31,
2023		March 31,
2023
Total equity - GAAP$366,739 $362,795 $355,572 
Adjustments:
           Goodwill(4,687)(4,687)(4,687)
Tangible common equity$362,052 $358,108 $350,885 
Total assets - GAAP$5,340,667 $5,167,572 $4,721,319 
Adjustments:
           Goodwill(4,687)(4,687)(4,687)
Tangible assets$5,335,980 $5,162,885 $4,716,632 
Common shares outstanding8,655,854 8,644,451 8,943,477 
Book value per common share$42.37 $41.97 $39.76 
Effect of goodwill(0.54)(0.54)(0.53)
Tangible book value per common share$41.83 $41.43 $39.23 
Total shareholders' equity to assets6.87 %7.02 %7.53 %
Effect of goodwill(0.08 %)(0.08 %)(0.09 %)
Tangible common equity to tangible assets6.79 %6.94 %7.44 %
Total average equity - GAAP$369,371 $353,037 $363,273 
Adjustments:
           Average goodwill(4,687)(4,687)(4,687)
Average tangible common equity$364,684 $348,350 $358,586 
Return on average shareholders' equity5.64 %4.66 %(3.37 %)
Effect of goodwill0.07 %0.06 %(0.04 %)
Return on average tangible common equity5.71 %4.72 %(3.41 %)
Total interest income$68,165 $66,272 $52,033 
Adjustments:
Fully-taxable equivalent adjustments 1
1,190 1,238 1,383 
Total interest income - FTE$69,355 $67,510 $53,416 
Net interest income$20,734 $19,807 $19,574 
Adjustments:
Fully-taxable equivalent adjustments 1
1,190 1,238 1,383 
Net interest income - FTE$21,924 $21,045 $20,957 
Net interest margin1.66 %1.58 %1.76 %
Effect of fully-taxable equivalent adjustments 1
0.09 %0.10 %0.13 %
Net interest margin - FTE1.75 %1.68 %1.89 %
1Assuming a 21% tax rate







First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
Three Months Ended
March 31,
2024		December 31,
2023		March 31,
2023
Total revenue - GAAP$29,081 $27,208 $25,020 
Adjustments:
     Mortgage-related revenue— — (65)
Adjusted total revenue$29,081 $27,208 $24,955 
Noninterest income - GAAP$8,347 $7,401 $5,446 
Adjustments:
     Mortgage-related revenue— — (65)
Adjusted noninterest income$8,347 $7,401 $5,381 
Noninterest expense - GAAP$21,023 $20,056 $20,954 
Adjustments:
     Mortgage-related costs— — (3,052)
Adjusted noninterest expense$21,023 $20,056 $17,902 
Income (loss) before income taxes - GAAP$5,610 $3,558 $(5,349)
Adjustments:1
     Mortgage-related revenue— — (65)
     Mortgage-related costs— — 3,052 
     Partial charge-off of C&I participation loan— — 6,914 
Adjusted income before income taxes$5,610 $3,558 $4,552 
Income tax provision (benefit) - GAAP$429 $(585)$(2,332)
Adjustments:1
     Mortgage-related revenue— — (14)
     Mortgage-related costs— — 641 
     Partial charge-off of C&I participation loan— — 1,452 
Adjusted income tax provision (benefit)$429 $(585)$(253)
Net income (loss) - GAAP$5,181 $4,143 $(3,017)
Adjustments:
     Mortgage-related revenue— — (51)
     Mortgage-related costs— — 2,411 
     Partial charge-off of C&I participation loan— — 5,462 
Adjusted net income$5,181 $4,143 $4,805 
1Assuming a 21% tax rate







First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
Three Months Ended
March 31,
2024		December 31,
2023		March 31,
2023
Diluted average common shares outstanding8,750,297 8,720,078 9,024,072 
Diluted earnings (loss) per share - GAAP$0.59 $0.48 $(0.33)
Adjustments:
    Effect of mortgage-related revenue— — (0.01)
    Effect of mortgage-related costs— — 0.27 
    Effect of partial charge-off of C&I participation loan— — 0.60 
Adjusted diluted earnings per share$0.59 $0.48 $0.53 
Return on average assets0.40 %0.32 %(0.26 %)
    Effect of mortgage-related revenue0.00 %0.00 %0.00 %
    Effect of mortgage-related costs0.00 %0.00 %0.21 %
    Effect of partial charge-off of C&I participation loan0.00 %0.00 %0.48 %
Adjusted return on average assets0.40 %0.32 %0.43 %
Return on average shareholders' equity5.64 %4.66 %(3.37 %)
    Effect of mortgage-related revenue0.00 %0.00 %(0.06 %)
    Effect of mortgage-related costs0.00 %0.00 %2.69 %
    Effect of partial charge-off of C&I participation loan0.00 %0.00 %6.10 %
Adjusted return on average shareholders' equity5.64 %4.66 %5.36 %
Return on average tangible common equity5.71 %4.72 %(3.41 %)
    Effect of mortgage-related revenue0.00 %0.00 %(0.06 %)
    Effect of mortgage-related costs0.00 %0.00 %2.73 %
    Effect of partial charge-off of C&I participation loan0.00 %0.00 %6.18 %
Adjusted return on average tangible common equity5.71 %4.72 %5.44 %