First Internet Bancorp INBK Q2 2026 earnings

First Internet Bancorp Reports Second Quarter 2026 Results

• Net income of $2.4 million, up significantly from $0.2 million a year ago -
• Diluted earnings per share of $0.27, up significantly from $0.02 a year ago -
• Company to hold earnings call today at 5pm ET -

Fishers, Indiana, July 30, 2026 – First Internet Bancorp (the “Company”) (Nasdaq: INBK), the parent company of First Internet Bank (the “Bank”), announced today financial and operational results for the second quarter ended June 30, 2026.

Key Business Updates

• Significant Improvement in Credit Quality: Provision for credit losses for the second quarter of 2026 of $13.4 million, down from $16.3 million in the first quarter of 2026. Notably, total nonaccrual loans declined for the second consecutive quarter, and are down 14% from the first quarter of 2026. Furthermore, delinquencies 30 days or more past due decreased to 0.78% of total performing loans, down from 1.06% in the first quarter of 2026, driven by a significant decline in small business lending delinquencies.
• Revenue Momentum: Growth in net interest income (up 16%), fully-taxable equivalent (“FTE”) net interest margin of 2.47%¹ (up 43 basis points), and strong noninterest income drove quarterly revenue up 23% year-over-year to $41.1 million. When combined with well-managed expenses, pre-provision net revenue grew 28% year-over-year to $15.0 million¹.
• Solid Loan Production: Commercial loan balances continued to grow during the second quarter led by construction / investor commercial real estate and single tenant lease financing. While period end and average loan balances were impacted by early payoffs, loan pipelines at the end of the quarter were solid, setting the stage for continued loan growth in the second half of 2026. Additionally, the Company expects to increase its retention of embedded finance small business loans originated for one of its fintech partners, an asset class with very attractive risk-return characteristics.
• Fee Revenue Acceleration: Noninterest income grew 56% year-over-year, supported by the continued growth in the Banking-as-a-Service (“BaaS”) platform. As we have selectively increased the number of fintech partners, and have expanded relationships with existing partners, fee revenue from BaaS increased 172% from the prior year period.

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."

Second Quarter 2026 Financial Performance

• Net income of $2.4 million and diluted earnings per share of $0.27, both up significantly from the prior year period
• Total revenue of $41.1 million, which increased 23% from the prior year period
• Net interest income of $32.4 million and FTE net interest income of $33.6 million¹, increased 16% and 15%, respectively, over the prior year period
• Net interest margin of 2.39% and FTE net interest margin of 2.47%¹, both increasing 43 basis points (“bps”) from the prior year period
• Noninterest income of $8.7 million, which increased 56% from the prior year period
• Pre-provision net revenue (“PPNR”) of $15.0 million¹, which increased 28% from the prior year period
• Total loan balances of $3.8 billion, up $35.2 million, or 1%, from the first quarter of 2026
• The yield on the loan portfolio increased 27 bps from the prior year period to 6.34%
• Solid loan production partially offset by elevated payoffs and maturities
• Total deposits of $4.8 billion, down $150.3 million, or 3%, from the first quarter of 2026
• Continued growth in fintech deposits, allowing higher-cost CDs and brokered deposits to mature
• The cost of interest-bearing deposits declined 54 bps from the prior year period to 3.38%
• Approximately $2.4 billion of fintech deposits moved off-balance sheet into a deposit network, providing flexibility to manage the size of the balance sheet
• Loans to deposits ratio of 79%
• Provision for credit losses of $13.4 million, down $2.9 million, or 18%, from the first quarter of 2026
• Net charge-offs to average loans of 1.77%, an increase from 1.65% in the first quarter of 2026
• Increase in net charge-offs reflects resolution of nonperforming franchise finance loans, partially offset by a significant decline in small business lending net charge-offs
• Nonperforming loans (“NPLs”) to total loans of 1.58%, compared to 1.63% in the first quarter of 2026; allowance for credit losses - loans (“ACL”) to total loans of 1.39%, compared to 1.50% in the first quarter of 2026
• Decrease in NPLs due primarily to lower nonaccrual franchise finance loans, partially offset by an increase in fully-guaranteed SBA 7(a) balances
• NPLs / total loans of 1.07%¹ excluding fully-guaranteed balances, down from 1.22% in the first quarter of 2026
• ACL to NPLs of 88%; or 130%¹ excluding fully-guaranteed balances
• Tangible common equity to tangible assets of 6.46%¹, and 6.98%¹ ex-AOCI and adjusted for normalized cash balances; CET1 ratio of 8.90%²; total capital ratio of 12.22%²
• Tangible book value per share of $41.09¹, up from $40.87¹ in the first quarter of 2026

“Our second quarter results reflect strong momentum across the business, paired with a meaningful and encouraging improvement in our credit trends," said David Becker, Chairman and CEO of First

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 regulatory reports

Internet Bancorp. "Total revenue grew 23% year-over-year and pre-provision net revenue increased nearly 28%, while our fully-taxable equivalent net interest margin expanded 43 basis points to 2.47%. Just as importantly, our credit provision declined, nonperforming loans decreased sequentially for the first time in several quarters, small business lending net charge-offs improved significantly, and delinquencies across the portfolio fell sharply - clear evidence that the proactive credit actions we have taken over the past several quarters are working.

“We are equally encouraged by the acceleration of our fee-based businesses. Noninterest income grew more than 56% year-over-year, driven by the continued strength of our Banking-as-a-Service platform and the deepening of our fintech partnerships, including an expanded relationship with jaris under which we will retain all small business loans originated through its platform. We also continue to invest in AI, automation, and digital capabilities that drive efficiency and elevate the customer experience. With improving credit, growing fee income, and a more capital-efficient balance sheet, we are well-positioned to build on this momentum through the remainder of 2026 and beyond."

Full Year 2026 Outlook

• Diluted earnings per share of $2.35 to $2.45
• Loan growth in the range of 4% to 6%, driven by solid pipelines across our commercial lending verticals
• Outlook reflects early payoffs in commercial lending areas and lower retention of small business lending balances as secondary market premiums remain attractive
• 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 in the range of $141 million to $142 million
• Noninterest income in the range of $40.5 million to $41 million, reflecting continued BaaS growth and increasing small business lending originations and gain on sale activity in the second half of 2026
• Noninterest expense in the range of $106 million to $107 million
• Provision for credit losses, including net charge-offs and reserves related to problem loans, of $47 million to $48 million
• Continual improvement is expected throughout the second half of 2026

Conference Call and Webcast

The Company will host a conference call and webcast at 5:00 p.m. Eastern Time today, July 30, 2026, to discuss its quarterly financial results. The call can be accessed via telephone at (833) 461-5787; meeting id: 115638970. To access the webcast and view the presentation slides, please visit www.firstinternetbancorp.com and click the link provided for Earnings Call Webcast.

The webcast and slides will be available on the Company’s website shortly after the call has ended and will be archived on the Company’s website for 12 months.

About First Internet Bancorp

First Internet Bancorp is a bank holding company with assets of $5.6 billion as of June 30, 2026. 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 deposits, commercial real estate and construction financing, SBA financing, public finance, consumer loans, and specialty finance services nationally, as well as 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,” “better than,” “continue,” “could,” “drive,” “enhance,” “estimate,” “expand,” “expect,” “future,” “going forward,” “growth,” ”improve,” “increase,” “looking ahead,” “maintain,” “may,” “ongoing,” “opportunities,” “pending,” “plan,” “position,” “preliminary,” “progress,” “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, pre-provision net revenue adjusted tangible common equity, adjusted tangible assets, adjusted tangible common equity to adjusted tangible assets, adjusted nonperforming loans to total loans and adjusted allowance for credit losses – loans to nonperforming loans 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/Analysts | | | | | | | | | | | | | Paula Deemer | | | | | | | | | | | | | Director of Corporate Administration | | | | | | | | | | | | | (317) 428-4628 | | | | | | | | | | | | | investors@firstib.com | | | | | | | | | | | | | | | | | | | | | | | | | | Media | | | | | | | | | | | | | PANBlast | | | | | | | | | | | | | Zach Weismiller | | | | | | | | | | | | | firstib@panblastpr.com | | | | | | | | | | | |