First Internet Bancorp Reports Fourth Quarter and Full Year 2025 Results

- Net income of $5.3 million, diluted EPS $0.60 -

- Company to hold earnings call today at 5pm ET -

First Internet Bancorp (the "Company") (NASDAQ:INBK), the parent company of First Internet Bank (the "Bank"), announced today financial and operational results for the fourth quarter and fiscal year ended December 31, 2025.

Key Business Updates

• Revenue Momentum: Strong growth in net interest income (up 29%) and fully-taxable equivalent ("FTE") net interest margin (now 2.30%) drove adjusted quarterly revenue up 21% year-over-year to $42.1 million¹. When combined with well-managed expenses, adjusted pre-provision net revenue grew 66% year-over-year.
• Credit Trends: The provision for credit losses for the fourth quarter of 2025 declined significantly following the large increase to the allowance for credit losses ("ACL") related to small business lending in the third quarter of 2025 as well as lower net charge-offs. While ongoing proactive and prudent credit-related actions continued to yield notable progress in resolving problem loans, the Company expects the provision to remain elevated in the first half of 2026 and then gradually improve in the second half of the year.
• Strong Loan Production: Commercial loan production was robust during the fourth quarter driven by single tenant lease financing and construction. Additionally, loan pipelines at year end were solid, setting the stage for continued net interest income growth in 2026.

Fourth Quarter 2025 Financial Performance

• Net income of $5.3 million and diluted earnings per share of $0.60
  • Quarterly results included a pre-tax loss of $0.4 million on the sale of an additional $14.3 million of single tenant lease financing loans to fulfill our commitment related to the large sale in the third quarter of 2025
  • Adjusted net income, excluding the impact of the additional loan sale was $5.6 million¹ and adjusted diluted earnings per share was $0.64¹
• Total revenue of $41.7 million and adjusted total revenue of $42.1 million¹, which increased 21% from the prior year period
• Net interest income of $30.3 million and fully-taxable equivalent net interest income of $31.5 million¹, increased 29% and 27% over the prior year period, respectively
• Net interest margin of 2.22% and FTE net interest margin of 2.30%¹, each increased 55 basis points ("bps"), from the prior year period
• Pre-provision net revenue ("PPNR") of $17.5 million¹ and adjusted PPNR of $17.9 million¹, which increased 66% from the prior year period
• Total loan balances of $3.7 billion, up $143.2 million, or 4%, from the third quarter of 2025
  • Quarterly growth driven by strong production in single tenant lease financing, construction and small business lending
  • The yield on the loan portfolio increased 21 bps from the prior quarter to 6.39%
• Total deposits of $4.8 billion, compared to $4.9 billion in the third quarter of 2025
  • Continued growth in fintech deposits, allowing higher-cost CDs and brokered deposits to mature
  • The cost of interest-bearing deposits declined 19 bps from the prior quarter to 3.68%
  • Approximately $1.1 billion of fintech deposits moved off-balance sheet, providing flexibility to manage the size of the balance sheet
  • Loans to deposits ratio of 77.4%
• Provision for credit losses of $12.0 million, down $22.8 million, or 66%, from the third quarter of 2025
  • Net charge-offs to average loans of 1.68%, improved from 1.89% in the third quarter of 2025
  • Net charge-offs included $3.5 million of balances previously reserved for
• Nonperforming loans to total loans of 1.56%; ACL to total loans of 1.49%
  • Increase in NPLs consisted primarily of guaranteed SBA 7(a) balances and fully-collateralized unguaranteed SBA 7(a) balances
  • NPLs / total loans of 1.20% excluding guaranteed balances
  • ACL to NPLs of 95%; or 124% excluding guaranteed balances
• Tangible common equity to tangible assets of 6.38%¹, and 6.94%¹ ex-AOCI and adjusted for normalized cash balances; CET1 ratio of 8.93%; total capital ratio of 12.44%
  • Repurchased 27,998 shares during the quarter at an average price of $18.64 per share
• Tangible book value per share of $40.87¹ increased 3% from the third quarter of 2025

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."

"We are pleased to close 2025 with strong fourth quarter results that demonstrate the resilience of our differentiated digital banking model," said David Becker, Chairman and CEO of First Internet Bancorp. "In 2025, we produced solid core financial performance as net interest income grew 30% year-over-year and delivered meaningful strategic accomplishments including the successful $850 million single tenant lease financing loan sale to Blackstone, exceptional growth in our Banking-as-a-Service initiatives and strategic investments in technology to further improve our credit underwriting and efficiency."

"Additionally, we took decisive and proactive measures to address credit challenges in our SBA and franchise finance portfolios through enhanced underwriting standards, and improved collection and risk management through strategic investments in AI and automation. As a result, we expect gradual credit improvement in the second half of this year. Looking ahead, our digital-first model, strong loan pipelines, and diversified revenue streams position us well for continued growth. We remain confident in our ability to deliver strong financial performance while building long-term shareholder value through disciplined execution of our strategic priorities."

Full Year 2026 Outlook

• Continued loan growth in the range of 15% to 17%, driven by strong pipelines across our commercial lending verticals
• FTE net interest margin expansion, reaching 2.75% to 2.80% by the fourth quarter of 2026, driven by ongoing deposit repricing and optimized asset mix
• FTE net interest income of $155 million to $160 million
• Noninterest income of $33 million to $35 million, reflecting continued strong BaaS growth and modest SBA originations and gain on sale activity
• Operating expenses of $111 million to $112 million
• Provision for credit losses, including net charge-offs and reserves related to problem loans, of $50 million to $53 million:
  • Provision for credit losses is expected to remain elevated in the first half of the year but gradually improve in the second half of the year
  • First quarter of 2026 provision for credit losses is expected to be in the range of $17 million to $19 million and second quarter of 2026 is expected to be in the range of $14 million to $16 million
• Diluted earnings per share of $2.35 to $2.45

Conference Call and Webcast

The Company will host a conference call and webcast at 5:00 p.m. Eastern Time today, January 29, 2026, to discuss its quarterly financial results. The call can be accessed via telephone at (800) 549-8228; access code: 39388. A recorded replay can be accessed through February 5, 2026, by dialing (888) 660-6264; access code: 39388 #.

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 bank holding company with assets of $5.6 billion as of December 31, 2025. 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" and is a component of the Russell 2000® Index. 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.

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," "drive," "enhance," "estimate," "expanding," "expect," "future," "going forward," "growth," "improve," "increase," "looking ahead," "maintain," "may," "ongoing," "opportunities," "pending," "plan," "position," "preliminary," "remain," "setting the stage," "should," "stable," "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, and SBA loan portfolios; competition with national, regional and community financial institutions; the loss of 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, pre-provision net revenue (loss), adjusted pre-provision net revenue, adjusted noninterest income, adjusted noninterest expense, adjusted income (loss) before income taxes, adjusted income tax provision (benefit), adjusted net income (loss), adjusted diluted earnings (loss) per share, adjusted return on average assets, adjusted return on average shareholders' equity, adjusted return on average tangible common equity and adjusted tangible common equity to adjusted tangible assets 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."