First Internet Bancorp Reports Third Quarter 2020 Results

Highlights for the third quarter include:

•Record quarterly net income of $8.4 million, and adjusted net income of $10.0 million when excluding a $2.1 million pre-tax write-down of legacy other real estate owned (“OREO”)

•Record quarterly diluted earnings per share of $0.86 and $1.03 adjusted diluted earnings per share, excluding the OREO write-down

•Total revenue of $28.7 million, a 48.1% increase from the second quarter, driven by record mortgage banking revenue, higher net interest income and increased SBA loan sales

•Net interest margin and fully-taxable equivalent net interest margin increased 16 and 17 basis points (“bps”), respectively, from the second quarter, driven by a 43 bp decrease in the cost of interest-bearing deposits

•As of October 16, 2020, loan balances of $20.8 million, or 0.7% of total loans, remained on deferral programs, down significantly from $365.8 million on July 17, 2020

Fishers, Indiana, October 21, 2020 – First Internet Bancorp (the “Company”) (Nasdaq: INBK), the parent company of First Internet Bank (the “Bank”), announced today financial and operational results for the third quarter of 2020. Net income for the third quarter of 2020 was a record $8.4 million, or $0.86 diluted earnings per share. This compares to net income of $3.9 million, or $0.40 diluted earnings per share, for the second quarter of 2020, and net income of $6.3 million, or $0.63 diluted earnings per share, for the third quarter of 2019.

“We generated record net income in the quarter, driven by very strong revenue growth, an improvement in net interest margin, and moderate loan growth. We are very pleased with our ability to navigate the challenges imposed by the pandemic and deliver for our customers and shareholders,” said David Becker, Chairman, President and Chief Executive Officer. “Additionally, we continued to experience a significant reduction in loan deferrals, and by quarter-end, over 99% of our borrowers who needed payment relief early in the pandemic had resumed making payments. We are proud to support our customers in their time of need and are glad that nearly all have been able to return to their normal payment schedules in such short order.

“Our direct-to-consumer mortgage business had a record quarter, almost tripling revenue compared to the second quarter. We capitalized on the ongoing market strength created by historically low mortgage rates, and our mortgage pipeline remains strong heading into the fourth quarter. Furthermore, our SBA business gained additional traction during the quarter, as our accelerated national expansion contributed to increased loan production and higher gain-on-sale revenue. Our SBA pipeline is robust, and we anticipate driving increased fee income in the quarters to come as this government-guaranteed lending business continues to ramp-up.

Mr. Becker concluded, “As always, I would like to thank the entire First Internet team for their very hard work in delivering record revenue and earnings performance during these challenging times. Our employees are the key to our success, and we are proud of the strong culture and workplace

environment we have created. First Internet was recognized for the seventh consecutive year on The Indianapolis Star’s “Top Workplaces in Central Indiana” list, placing in the top ten in the medium-sized company category.”

Net Interest Income and Net Interest Margin

Net interest income for the third quarter of 2020 was $16.2 million, compared to $14.4 million for the second quarter of 2020, and $15.2 million for the third quarter of 2019. On a fully-taxable equivalent basis, net interest income for the third quarter of 2020 was $17.7 million, compared to $15.9 million for the second quarter of 2020, and $16.8 million for the third quarter of 2019.

Total interest income for the third quarter of 2020 was $32.8 million, a decrease of 4.3%, compared to the second quarter of 2020, and a decrease of 13.1% compared to the third quarter of 2019. On a fully-taxable equivalent basis, total interest income for the third quarter of 2020 was $34.2 million, a decrease of 4.2% compared to the second quarter of 2020, and a decrease of 13.0% compared to the third quarter of 2019. The decline in total interest income compared to the second quarter of 2020 was driven primarily by a decrease in income from the securities portfolio due to accelerated premium amortization and continued declines in short term interest rate indices.

Total interest expense for the third quarter of 2020 was $16.5 million, a decrease of 16.6%, compared to the second quarter of 2020, and a decrease of 26.4% compared to the third quarter of 2019. The decrease in total interest expense compared to the linked quarter was due primarily to a 43 bp decline in the cost of interest-bearing deposits. The decrease in deposit costs reflects a continued decline in the rates paid on interest-bearing deposits as well as a shift in the deposit mix due to the growth in money market accounts.

During the third quarter of 2020, the cost of money market deposits decreased by 56 bps while the average balance of these deposits grew $206.2 million, or 18.9%. Furthermore, the cost of certificates and brokered deposits decreased 22 bps and average balances decreased $222.3 million, or 11.1%. During the third quarter, new certificates and brokered deposits were originated at a weighted average cost of 84 bps while maturing deposits had a weighted average cost of 225 bps; a difference of 141 bps.

Net interest margin (“NIM”) improved to 1.53% for the third quarter of 2020, up from 1.37% for the second quarter of 2020 and relatively stable with 1.54% for the third quarter of 2019. Fully-taxable equivalent NIM (“FTE NIM”) increased by 17 bps to 1.67% for the third quarter of 2020, up from 1.50% for the second quarter of 2020 and relatively stable with 1.70% for the third quarter of 2019. The increases in NIM and FTE NIM compared to the linked quarter were driven primarily by lower interest-bearing deposit costs, which more than offset the impact of the lower interest rate environment on interest-earning asset yields and the continued effect of elevated cash balances.

Noninterest Income

Noninterest income for the third quarter of 2020 was $12.5 million, compared to $5.0 million for the second quarter of 2020 and $5.6 million for the third quarter of 2019. The increase compared to the linked quarter was driven primarily by an increase in revenue from mortgage banking activities and gain on sale of loans. Mortgage banking revenue totaled $9.6 million for the third quarter of 2020, increasing $6.2 million, or 182.6%, compared to the prior quarter on increased loan sale volume and higher margins as mortgage interest rates continued to decline during the quarter. Gain on sale of loans totaled $2.0 million for the quarter, increasing $1.3 million compared to the second quarter of 2020 driven by a higher amount of U.S. Small Business Administration (“SBA”) 7(a) guaranteed loan sales in the quarter as well as a gain on the sale of a portfolio of single tenant lease financing loans.

Noninterest Expense

Noninterest expense for the third quarter of 2020 was $16.4 million, compared to $13.2 million for the second quarter of 2020 and $11.2 million for the third quarter of 2019. The increase from the second quarter of 2020 was due primarily to a $2.1 million write-down of two legacy commercial OREO properties and a $1.7 million increase in salaries and employee benefits but was partially offset by a $0.4 million decrease in other expense and a $0.3 million decrease in consulting and professional fees. The higher salaries and employee benefits expense was due mainly to higher incentive compensation related to the increased mortgage production as well as an increase in headcount and incentive compensation in the Company’s small business lending division.

Income Taxes

Income tax expense was $1.4 million, reflecting an effective tax rate of 14.2%, for the third quarter of 2020, compared to an income tax benefit of $0.3 million for the second quarter of 2020 and a $0.4 million expense and an effective tax rate of 6.6% for the third quarter of 2019. The increase in income taxes during the quarter was due primarily to the increase in pre-tax earnings driven by a higher proportion of taxable revenue from mortgage banking and gain on sale of loans.

Loans and Credit Quality

Total loans as of September 30, 2020 were $3.0 billion, an increase of $39.2 million, or 1.3%, compared to June 30, 2020, and an increase of $131.6 million, or 4.6%, compared to September 30, 2019. Total commercial loan balances were $2.4 billion as of September 30, 2020, an increase of $56.2 million, or 2.4%, compared to June 30, 2020 and an increase of $248.7 million, or 11.3%, compared to September 30, 2019. Compared to the linked quarter, the growth in commercial loan balances was driven largely by production in healthcare finance and construction lending as businesses resumed operations following limited activity in the second quarter.

Total consumer loan balances were $507.7 million as of September 30, 2020, a decrease of $15.3 million, or 2.9%, compared to June 30, 2020 and a decrease of $134.4 million, or 20.9%, compared to September 30, 2019. The decline in consumer loan balances from June 30, 2020 was due primarily to increased prepayment activity across the portfolio.

Total delinquencies 30 days or more past due decreased to 0.22% of total loans as of September 30, 2020, down from 0.25% as of June 30, 2020 and up from 0.13% as of September 30, 2019. Overall credit quality remained relatively stable as nonperforming loans to total loans was 0.32% as of September 30, 2020, compared to 0.28% at June 30, 2020 and 0.20% as of September 30, 2019.

The allowance for loan losses as a percentage of total loans was 0.89% as of September 30, 2020, or 0.91% when excluding SBA PPP loans, compared to 0.82% as of June 30, 2020 and 0.75% as of September 30, 2019. During the quarter, the Company continued to make additional adjustments to qualitative factors in its allowance model to reflect the continued economic uncertainty resulting from the COVID-19 pandemic. As a result, both the amount of the allowance for loan losses and the allowance as a percentage of total loans increased compared to June 30, 2020.

Net charge-offs of $0.1 million were recognized during the third quarter of 2020, resulting in net charge-offs to average loans of 0.01%, as compared to 0.12% in the second quarter of 2020 and 0.15% in the third quarter of 2019. The provision for loan losses in the third quarter of 2020 was $2.5 million, consistent with the second quarter of 2020 and down from $2.8 million for the third quarter of 2019.

Capital

As of September 30, 2020, total shareholders’ equity was $318.1 million, an increase of $10.4 million, or 3.4%, compared to June 30, 2020, due primarily to the net income earned during the quarter and an increase in the after-tax valuations of the Company’s available-for-sale securities portfolio and cash flow hedges. Book value per common share increased to $32.46 as of September 30, 2020, up from $31.40 as of June 30, 2020 and $30.30 as of September 30, 2019. Tangible book value per common share increased to $31.98, up from $30.92 and $29.82, each as of the same reference dates.

The following table presents the Company’s and the Bank’s regulatory and other capital ratios as of September 30, 2020.


	As of September 30, 2020
	Company	Bank

Total shareholders’ equity to assets	7.34%	8.12%
Tangible common equity to tangible assets ¹	7.24%	8.02%
Tier 1 leverage ratio ²	7.72%	8.50%
Common equity tier 1 capital ratio ²	11.13%	12.27%
Tier 1 capital ratio ²	11.13%	12.27%
Total risk-based capital ratio ²	14.38%	13.17%

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 12:00 p.m. Eastern Time on Thursday, October 22, 2020 to discuss its quarterly financial results. The call can be accessed via telephone at (888) 348-3664. A recorded replay can be accessed through November 22, 2020 by dialing (877) 344-7529; passcode: 10148690.

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 $4.3 billion as of September 30, 2020. The Company’s subsidiary, First Internet Bank, opened for business in 1999 as an industry pioneer in the branchless delivery of banking services. The Bank provides consumer and small business deposit, consumer loan, residential mortgage, and specialty finance services nationally as well as commercial real estate loans, commercial and industrial loans, SBA financing and treasury management services. 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 the Bank, including its products and services, is available at www.firstib.com.

Forward-Looking Statements

This press release may contain forward-looking statements with respect to the financial condition, results of operations, trends in lending policies, plans, objectives, future performance or business of the Company.

Forward-looking statements are generally identifiable by the use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “outlook,” “pending,” “plan,” “position,” “preliminary,” “remain,” “should,” “will,” “would” 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. The COVID-19 pandemic has resulted in deterioration of general business and economic conditions and continued to impact us, our customers, counterparties, employees, and third-party service providers. Sustained deterioration in market conditions could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, lead to a tightening of credit and further increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to COVID-19, could affect us in substantial and unpredictable ways. The ultimate magnitude and duration of the pandemic is still unknown at this time, therefore, the extent of the impact on our business, financial position, results of operations, liquidity and prospects remains uncertain. 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 real estate, commercial and industrial, public finance, SBA and healthcare finance loan portfolios; competition with national, regional and community financial institutions; the loss of any key members of senior management; fluctuations in interest rates; general economic conditions; 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, allowance for loan losses to loans, excluding PPP loans, 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 shareholders’ equity, adjusted return on average tangible common equity and adjusted effective income tax rate 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

Media

Paula Deemer

Nicole Lorch

Director of Corporate Administration

Executive Vice President & Chief Operating Officer

(317) 428-4628

(317) 532-7906

[email protected]


First Internet Bancorp
Summary Financial Information (unaudited)
Dollar amounts in thousands, except per share data
	Three Months Ended															Nine Months Ended
	September 30, 2020			June 30, 2020			September 30, 2019			September 30, 2020			September 30, 2019
Net income	$	8,411		$	3,932		$	6,326		$	18,362		$	18,143

Per share and share information
Earnings per share - basic	$	0.86		$	0.40		$	0.63		$	1.87		$	1.79
Earnings per share - diluted	0.86			0.40			0.63			1.87			1.79
Dividends declared per share	0.06			0.06			0.06			0.18			0.18
Book value per common share	32.46			31.40			30.30			32.46			30.30
Tangible book value per common share ¹	31.98			30.92			29.82			31.98			29.82
Common shares outstanding	9,800,569			9,799,047			9,741,800			9,800,569			9,741,800
Average common shares outstanding:
Basic	9,773,175			9,768,227			9,979,603			9,825,683			10,114,303
Diluted	9,773,224			9,768,227			9,980,612			9,827,182			10,116,507
Performance ratios
Return on average assets	0.78		%	0.37		%	0.63		%	0.58		%	0.64		%
Return on average shareholders' equity	10.67		%	5.15		%	8.40		%	7.90		%	8.20		%
Return on average tangible common equity ¹	10.83		%	5.23		%	8.53		%	8.02		%	8.33		%
Net interest margin	1.53%			1.37		%	1.54		%	1.47		%	1.70		%
Net interest margin - FTE ^1,2	1.67		%	1.50		%	1.70		%	1.61		%	1.87		%
Capital ratios³
Total shareholders' equity to assets	7.34%			7.12		%	7.21		%	7.34		%	7.21		%
Tangible common equity to tangible assets ¹	7.24%			7.01		%	7.10		%	7.24		%	7.10		%
Tier 1 leverage ratio	7.72		%	7.49		%	7.66		%	7.72		%	7.66		%
Common equity tier 1 capital ratio	11.13		%	10.94		%	10.93		%	11.13		%	10.93		%
Tier 1 capital ratio	11.13		%	10.94		%	10.93		%	11.13		%	10.93		%
Total risk-based capital ratio	14.38		%	14.13		%	14.17		%	14.38		%	14.17		%
Asset quality
Nonperforming loans	$	9,774		$	8,195		$	5,783		$	9,774		$	5,783
Nonperforming assets	9,782			10,304			8,497			9,782			8,497
Nonperforming loans to loans	0.32		%	0.28		%	0.20		%	0.32		%	0.20		%
Nonperforming assets to total assets	0.23		%	0.24		%	0.21		%	0.23		%	0.21		%
Allowance for loan losses to:
Loans	0.89		%	0.82		%	0.75		%	0.89		%	0.75		%
Loans, excluding PPP loans ¹	0.91		%	0.84		%	0.75		%	0.91		%	0.75		%
Nonperforming loans	275.4		%	298.5		%	374.9		%	275.4		%	374.9		%
Net charge-offs to average loans	0.01		%	0.12		%	0.15		%	0.06		%	0.08		%
Average balance sheet information
Loans	$	2,996,641		$	2,943,165		$	2,865,258		$	2,957,116		$	2,838,685
Total securities	633,552			657,622			561,780			640,659			547,940
Other earning assets	552,058			594,296			469.454			520,875			322,544
Total interest-earning assets	4,216,634			4,241,690			3,933,315			4,161,245			3,735,286
Total assets	4,307,819			4,330,174			4,015,433			4,246,201			3,817,408
Noninterest-bearing deposits	75,901			73,758			43,972			70,060			43,035
Interest-bearing deposits	3,279,621			3,270,720			3,031,095			3,213,372			2,880,701
Total deposits	3,355,522			3,344,478			3,075,067			3,283,432			2,923,736
Shareholders' equity	313,611			306,868			298,782			310,506			295,963

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)
Amounts in thousands
	September 30, 2020		June 30, 2020		September 30, 2019
Assets
Cash and due from banks	$	5,804	$	7,016	$	6,283
Interest-bearing deposits	482,649		491,603		410,119
Securities available-for-sale, at fair value	528,311		589,017		544,742
Securities held-to-maturity, at amortized cost	68,254		68,295		46,807
Loans held-for-sale	76,208		38,813		41,119
Loans	3,012,914		2,973,674		2,881,272
Allowance for loan losses	(26,917)		(24,465)		(21,683)
Net loans	2,985,997		2,949,209		2,859,589
Accrued interest receivable	17,768		21,093		16,652
Federal Home Loan Bank of Indianapolis stock	25,650		25,650		25,650
Cash surrender value of bank-owned life insurance	37,714		37,474		36,764
Premises and equipment, net	31,262		23,939		14,512
Goodwill	4,687		4,687		4,687
Servicing asset	2,818		2,522		—
Other real estate owned	—		2,065		2,619
Accrued income and other assets	66,502		63,217		85,948
Total assets	$	4,333,624	$	4,324,600	$	4,095,491

Liabilities
Noninterest-bearing deposits	$	86,088	$	82,864	$	50,560
Interest-bearing deposits	3,286,303		3,297,925		3,097,682
Total deposits	3,372,391		3,380,789		3,148,242
Advances from Federal Home Loan Bank	514,914		514,913		514,908
Subordinated debt	69,758		69,681		69,452
Accrued interest payable	1,249		1,073		2,635
Accrued expenses and other liabilities	57,210		50,433		65,114
Total liabilities	4,015,522		4,016,889		3,800,351
Shareholders' equity
Voting common stock	220,951		220,418		219,013
Retained earnings	116,241		108,431		93,182
Accumulated other comprehensive loss	(19,090)		(21,138)		(17,055)
Total shareholders' equity	318,102		307,711		295,140
Total liabilities and shareholders' equity	$	4,333,624	$	4,324,600	$	4,095,491


First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited)
Amounts in thousands, except per share data
	Three Months Ended										Nine Months Ended
	September 30, 2020		June 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Interest income
Loans	$	29,560	$	29,730	$	30,594	$	89,698	$	90,654
Securities - taxable	2,240		3,276		3,468		9,135		10,332
Securities - non-taxable	381		457		639		1,410		1,991
Other earning assets	569		759		2,993		2,973		6,560
Total interest income	32,750		34,222		37,694		103,216		109,537
Interest expense
Deposits	12,428		15,763		18,363		45,399		50,896
Other borrowed funds	4,090		4,033		4,087		12,141		11,048
Total interest expense	16,518		19,796		22,450		57,540		61,944
Net interest income	16,232		14,426		15,244		45,676		47,593
Provision for loan losses	2,509		2,491		2,824		6,461		5,498
Net interest income after provision for loan losses	13,723		11,935		12,420		39,215		42,095
Noninterest income
Service charges and fees	224		182		211		618		672
Loan servicing revenue	274		255		—		780		—
Loan servicing asset revaluation	(103)		(90)		—		(372)		—
Mortgage banking activities	9,630		3,408		4,307		16,706		8,588
Gain on sale of loans	2,033		762		523		4,596		353
Gain (loss) on sale of securities	98		—		—		139		(458)
Other	339		456		517		1,212		2,229
Total noninterest income	12,495		4,973		5,558		23,679		11,384
Noninterest expense
Salaries and employee benefits	9,533		7,789		6,883		25,096		19,846
Marketing, advertising and promotion	426		411		456		1,212		1,391
Consulting and professional fees	614		932		778		2,723		2,427
Data processing	388		339		381		1,102		1,026
Loan expenses	408		399		247		1,406		853
Premises and equipment	1,568		1,602		1,506		4,795		4,503
Deposit insurance premium	440		435		—		1,360		1,302
Write-down of other real estate owned	2,065		—		—		2,065		—
Other	970		1,337		952		3,383		2,673
Total noninterest expense	16,412		13,244		11,203		43,142		34,021
Income before income taxes	9,806		3,664		6,775		19,752		19,458
Income tax provision (benefit)	1,395		(268)		449		1,390		1,315
Net income	$	8,411	$	3,932	$	6,326	$	18,362	$	18,143

Per common share data
Earnings per share - basic	$	0.86	$	0.40	$	0.63	$	1.87	$	1.79
Earnings per share - diluted	$	0.86	$	0.40	$	0.63	$	1.87	$	1.79
Dividends declared per share	$	0.06	$	0.06	$	0.06	$	0.18	$	0.18

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
	September 30, 2020										June 30, 2020								September 30, 2019
	Average Balance		Interest / Dividends		Yield / Cost		Average Balance		Interest / Dividends		Yield / Cost		Average Balance		Interest / Dividends		Yield / Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale ¹	$	3,031,024	$	29,560	3.88	%	$	2,989,772	$	29,730	4.00	%	$	2,902,081	$	30,594	4.18	%
Securities - taxable	539,154		2,240		1.65	%	560,947		3,276		2.35	%	462,490		3,468		2.97	%
Securities - non-taxable	94,398		381		1.61	%	96,675		457		1.90	%	99,290		639		2.55	%
Other earning assets	552,058		569		0.41	%	594,296		759		0.51	%	469,454		2,993		2.53	%
Total interest-earning assets	4,216,634		32,750		3.09	%	4,241,690		34,222		3.24	%	3,933,315		37,694		3.80	%
Allowance for loan losses	(25,347)						(23,388)						(20,050)
Noninterest-earning assets	116,532						111,872						102,168
Total assets	$	4,307,819					$	4,330,174					$	4,015,433

Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits	$	154,275	$	228	0.59	%	$	137,487	$	237	0.69	%	$	126,130	$	233	0.73	%
Savings accounts	45,466		79		0.69	%	37,204		92		0.99	%	32,434		91		1.11	%
Money market accounts	1,295,249		2,442		0.75	%	1,089,063		3,541		1.31	%	639,181		3,261		2.02	%
Certificates and brokered deposits	1,784,631		9,679		2.16	%	2,006,966		11,893		2.38	%	2,233,350		14,778		2.63	%
Total interest-bearing deposits	3,279,621		12,428		1.51	%	3,270,720		15,763		1.94	%	3,031,095		18,363		2.40	%
Other borrowed funds	584,634		4,090		2.78	%	584,543		4,033		2.77	%	584,308		4,087		2.78	%
Total interest-bearing liabilities	3,864,255		16,518		1.70	%	3,855,263		19,796		2.07	%	3,615,403		22,450		2.46	%
Noninterest-bearing deposits	75,901						73,758						43,972
Other noninterest-bearing liabilities	54,052						94,285						57,276
Total liabilities	3,994,208						4,023,306						3,716,651
Shareholders' equity	313,611						306,868						298,782
Total liabilities and shareholders' equity	$	4,307,819					$	4,330,174					$	4,015,433

Net interest income			$	16,232					$	14,426					$	15,244

Interest rate spread					1.39	%					1.17	%					1.34	%
Net interest margin					1.53	%					1.37	%					1.54	%
Net interest margin - FTE ^2,3					1.67	%					1.50	%					1.70	%

¹Includes 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
Average Balances and Rates (unaudited)
Dollar amounts in thousands
	Nine Months Ended
	September 30, 2020										September 30, 2019
	Average Balance		Interest / Dividends		Yield / Cost		Average Balance		Interest / Dividends		Yield / Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale ¹	$	2,999,711	$	89,698	3.99	%	$	2,864,802	$	90,654	4.23	%
Securities - taxable	543,699		9,135		2.24	%	450,898		10,332		3.06	%
Securities - non-taxable	96,960		1,410		1.94	%	97,042		1,991		2.74	%
Other earning assets	520,875		2,973		0.76	%	322,544		6,560		2.72	%
Total interest-earning assets	4,161,245		103,216		3.31	%	3,735,286		109,537		3.92	%
Allowance for loan losses	(23,605)						(19,191)
Noninterest-earning assets	108,561						101,313
Total assets	$	4,246,201					$	3,817,408

Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits	$	138,288	$	684	0.66	%	$	117,811	$	659	0.75	%
Savings accounts	37,700		249		0.88	%	36,241		304		1.12	%
Money market accounts	1,084,411		9,726		1.20	%	598,410		9,009		2.01	%
Certificates and brokered deposits	1,952,973		34,740		2.38	%	2,128,239		40,924		2.57	%
Total interest-bearing deposits	3,213,372		45,399		1.89	%	2,880,701		50,896		2.36	%
Other borrowed funds	584,547		12,141		2.77	%	558,141		11,048		2.65	%
Total interest-bearing liabilities	3,797,919		57,540		2.02	%	3,438,842		61,944		2.41	%
Noninterest-bearing deposits	70,060						43,035
Other noninterest-bearing liabilities	67,716						39,568
Total liabilities	3,935,695						3,521,445
Shareholders' equity	310,506						295,963
Total liabilities and shareholders' equity	$	4,246,201					$	3,817,408

Net interest income			$	45,676					$	47,593

Interest rate spread					1.29	%					1.51	%
Net interest margin					1.47	%					1.70	%
Net interest margin - FTE ^2,3					1.61	%					1.87	%

¹Includes 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
	September 30, 2020						June 30, 2020						September 30, 2019
	Amount		Percent		Amount		Percent		Amount		Percent
Commercial loans
Commercial and industrial	$	77,116	2.6	%	$	81,687	2.7	%	$	83,481	2.9	%
Owner-occupied commercial real estate	89,095		3.0	%	86,897		2.9	%	86,357		3.0	%
Investor commercial real estate	13,084		0.4	%	13,286		0.4	%	11,852		0.4	%
Construction	92,154		3.1	%	77,591		2.6	%	54,131		1.9	%
Single tenant lease financing	960,505		31.9	%	980,292		33.0	%	1,008,247		35.0	%
Public finance	625,638		20.8	%	647,107		21.8	%	686,622		23.8	%
Healthcare finance	461,740		15.3	%	380,956		12.8	%	251,530		8.6	%
Small business lending	123,168		4.1	%	118,526		4.0	%	11,597		0.4	%
Total commercial loans	2,442,500		81.2	%	2,386,342		80.2	%	2,193,817		76.0	%

Consumer loans
Residential mortgage	203,041		6.7	%	208,728		7.0	%	320,451		11.1	%
Home equity	22,169		0.7	%	22,640		0.8	%	25,042		0.9	%
Trailers	145,775		4.8	%	147,326		5.0	%	145,600		5.1	%
Recreational vehicles	96,910		3.2	%	102,088		3.4	%	102,698		3.6	%
Other consumer loans	39,765		1.3	%	42,218		1.4	%	48,275		1.7	%
Total consumer loans	507,660		16.7	%	523,000		17.6	%	642,066		22.4	%

Net deferred loan fees, premiums, discounts and other ¹	62,754		2.1	%	64,332		2.2	%	45,389		1.6	%

Total loans	$	3,012,914	100.0	%	$	2,973,674	100.0	%	$	2,881,272	100.0	%

	September 30, 2020						June 30, 2020						September 30, 2019
	Amount		Percent		Amount		Percent		Amount		Percent
Deposits
Noninterest-bearing deposits	$	86,088	2.6	%	$	82,864	2.5	%	$	50,560	1.6	%
Interest-bearing demand deposits	155,054		4.6	%	152,391		4.5	%	122,551		3.9	%
Savings accounts	49,890		1.5	%	43,366		1.3	%	34,886		1.1	%
Money market accounts	1,359,178		40.3	%	1,241,874		36.7	%	698,077		22.2	%
Certificates of deposits	1,360,575		40.3	%	1,470,905		43.5	%	1,681,377		53.4	%
Brokered deposits	361,606		10.7	%	389,389		11.5	%	560,791		17.8	%
Total deposits	$	3,372,391	100.0	%	$	3,380,789	100.0	%	$	3,148,242	100.0	%

¹ Includes carrying value adjustments of $44.3 million and $46.0 million related to terminated interest rate swaps associated with public finance loans as of September 30, 2020 and June 30, 2020, respectively, and $27.6 million as of September 30, 2019 related to interest rate swaps associated with public finance loans.


First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
	Three Months Ended															Nine Months Ended
	September 30, 2020			June 30, 2020			September 30, 2019			September 30, 2020			September 30, 2019
Total equity - GAAP	$	318,102		$	307,711		$	295,140		$	318,102		$	295,140
Adjustments:
Goodwill	(4,687)			(4,687)			(4,687)			(4,687)			(4,687)
Tangible common equity	$	313,415		$	303,024		$	290,453		$	313,415		$	290,453

Total assets - GAAP	$	4,333,624		$	4,324,600		$	4,095,491		$	4,333,624		$	4,095,491
Adjustments:
Goodwill	(4,687)			(4,687)			(4,687)			(4,687)			(4,687)
Tangible assets	$	4,328,937		$	4,319,913		$	4,090,804		$	4,328,937		$	4,090,804

Common shares outstanding	9,800,569			9,799,047			9,741,800			9,800,569			9,741,800

Book value per common share	$	32.46		$	31.40		$	30.30		$	32.46		$	30.30
Effect of goodwill	(0.48)			(0.48)			(0.48)			(0.48)			(0.48)
Tangible book value per common share	$	31.98		$	30.92		$	29.82		$	31.98		$	29.82

Total shareholders' equity to assets	7.34		%	7.12		%	7.21		%	7.34		%	7.21		%
Effect of goodwill	(0.10		%)	(0.11		%)	(0.11		%)	(0.10)		%	(0.11)		%
Tangible common equity to tangible assets	7.24		%	7.01		%	7.10		%	7.24		%	7.10		%

Total average equity - GAAP	$	313,611		$	306,868		$	298,782		$	310,506		$	295,963
Adjustments:
Average goodwill	(4,687)			(4,687)			(4,687)			(4,687)			(4,687)
Average tangible common equity	$	308,924		$	302,181		$	294,095		$	305,819		$	291,276

Return on average shareholders' equity	10.67		%	5.15		%	8.40		%	7.90		%	8.20		%
Effect of goodwill	0.16		%	0.08		%	0.13		%	0.12		%	0.13		%
Return on average tangible common equity	10.83		%	5.23		%	8.53		%	8.02		%	8.33		%

Total interest income	$	32,750		$	34,222		$	37,694		$	103,216		$	109,537
Adjustments:
Fully-taxable equivalent adjustments ¹	1,424			1,437			1,595			4,396			4,764
Total interest income - FTE	$	34,174		$	35,659		$	39,289		$	107,612		$	114,301

Net interest income	$	16,232		$	14,426		$	15,244		$	45,676		$	47,593
Adjustments:
Fully-taxable equivalent adjustments ¹	1,424			1,437			1,595			4,396			4,764
Net interest income - FTE	$	17,656		$	15,863		$	16,839		$	50,072		$	52,357

Net interest margin	1.53		%	1.37		%	1.54		%	1.47		%	1.70		%
Effect of fully-taxable equivalent adjustments ¹	0.14		%	0.13		%	0.16		%	0.14		%	0.17		%
Net interest margin - FTE	1.67		%	1.50		%	1.70		%	1.61		%	1.87		%

Allowance for loan losses	$	26,917		$	24,465		$	21,683		$	26,917		$	21,683

Loans	3,012,914			2,973,674			2,881,272			3,012,914			2,881,272
Adjustments:
PPP loans	(58,337)			(58,948)			—			(58,337)			—
Loans, excluding PPP loans	$	2,954,577		$	2,914,726		$	2,881,272		$	2,954,577		$	2,881,272

Allowance for loan losses to loans	0.89		%	0.82		%	0.75		%	0.89		%	0.75		%
Effect of PPP loans	0.02		%	0.02		%	0.00		%	0.02		%	0.00		%
Allowance for loan losses to loans, excluding PPP loans	0.91		%	0.84		%	0.75		%	0.91		%	0.75		%

¹ Assuming a 21% tax rate


First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
	Three Months Ended															Nine Months Ended
	September 30, 2020			June 30, 2020			September 30, 2019			September 30, 2020			September 30, 2019
Income before income taxes - GAAP	$	9,806		$	3,664		$	6,775		$	19,752		$	19,458
Adjustments:
Write-down of other real estate owned	2,065			—			—			2,065			—
Adjusted income before income taxes	$	11,871		$	3,664		$	6,775		$	21,817		$	19,458

Income tax provision (benefit) - GAAP	$	1,395		$	(268)		$	449		$	1,390		$	1,315
Adjustments:
Write-down of other real estate owned	434			—			—			434			—
Adjusted income tax provision (benefit)	$	1,829		$	(268)		$	449		$	1,824		$	1,315

Net income - GAAP	$	8,411		$	3,932		$	6,326		$	18,362		$	18,143
Adjustments:
Write-down of other real estate owned	1,631			—			—			1,631			—
Adjusted net income	$	10,042		$	3,932		$	6,326		$	19,993		$	18,143

Diluted average common shared outstanding	9,773,224			9,768,227			9,980,612			9,827,182			10,116,507

Diluted earnings per share - GAAP	$	0.86		$	0.40		$	0.63		$	1.87		$	1.79
Adjustments:
Effect of write-down of other real estate owned	0.17			—			—			0.16			—
Adjusted diluted earnings per share	$	1.03		$	0.40		$	0.63		$	2.03		$	1.79

Return on average assets	0.78		%	0.37		%	0.63		%	0.58		%	0.64		%
Effect of write-down of other real estate owned	0.15		%	0.00		%	0.00		%	0.05		%	0.00		%
Adjusted return on average assets	0.93		%	0.37		%	0.63		%	0.63		%	0.64		%

Return on average shareholders' equity	10.67		%	5.15		%	8.40		%	7.90		%	8.20		%
Effect of write-down of other real estate owned	2.07		%	0.00		%	0.00		%	0.70		%	0.00		%
Adjusted return on average shareholders’ equity	12.74		%	5.15		%	8.40		%	8.60		%	8.20		%

Return on average tangible common equity	10.83		%	5.23		%	8.53		%	8.02		%	8.33		%
Effect of write-down of other real estate owned	2.10		%	0.00		%	0.00		%	0.71		%	0.00		%
Adjusted return on average tangible common equity	12.93		%	5.23		%	8.53		%	8.73		%	8.33		%

Effective income tax rate	14.2		%	(7.3)		%	6.6		%	7.0		%	6.8		%
Effect of write-down of other real estate owned	1.2		%	0.0		%	0.0		%	1.4		%	0.0		%
Adjusted effective income tax rate	15.4		%	(7.3)		%	6.6		%	8.4		%	6.8		%

Financial Results Third Quarter 2020 Exhibit 99.2

Forward-Looking Statements & Non-GAAP Financial Measures This presentation may contain forward-looking statements with respect to the financial condition, results of operations, trends in lending policies, plans, objectives, future performance or business of the Company. Forward-looking statements are generally identifiable by the use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “outlook,” “pending,” “plan,” “position,” “preliminary,” “remain,” “should,” “will,” “would” 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. The COVID-19 pandemic has resulted in deterioration of general business and economic conditions and continued to impact us, our customers, counterparties, employees, and third-party service providers. Sustained deterioration in market conditions could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, lead to a tightening of credit and further increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to COVID-19, could affect us in substantial and unpredictable ways. The ultimate magnitude and duration of the pandemic is still unknown at this time, therefore, the extent of the impact on our business, financial position, results of operations, liquidity and prospects remains uncertain. 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 real estate, commercial and industrial, public finance, SBA and healthcare finance loan portfolios; competition with national, regional and community financial institutions; the loss of any key members of senior management; fluctuations in interest rates; general economic conditions; 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 presentation, 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. This presentation 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, net interest income – FTE, net interest margin – FTE, allowance for loan losses to loans, excluding PPP loans, adjusted noninterest expense, adjusted noninterest expense/average assets, 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, adjusted return on average tangible common equity and adjusted effective income tax rate 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 on the slide at the end of this presentation entitled “Reconciliation of Non-GAAP Financial Measures.” 2

Third Quarter 2020 Highlights . Record diluted EPS of $0.86 . Adjusted diluted EPS of $1.031 excluding write-down of legacy OREO Earnings . Record quarterly net income of $8.4 million . Total revenue of $28.7 million, an increase of 48.1% from 2Q20 . Cost of interest-bearing deposits declined 43 bps from 2Q20 to 1.51% Key Operating . FTE net interest margin increased 17 bps to 1.67% Trends . Allowance for loan losses / total loans, excluding PPP, increased to 0.91%1 . Asset quality remained solid with NPAs to total assets of 0.23% . Disciplined Portfolio loan balances increased by $39.2 million, or 1.3% from 2Q20 Balance Sheet . SBA loan sales contributed $1.7 million in fee revenue Management . Sold $12.2 million of single tenant lease financing loans at a gain of $0.4 million . Regulatory capital ratios increased from 2Q20 and remain strong Liquidity and . Continued strong on- and off-balance sheet liquidity to manage impact of Capital COVID-19 environment . Deposit balances relatively stable from 2Q20 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix 3 3

Near-term Profitability Drivers . Continued deposit repricing opportunity combined with stabilized asset yields provides significant opportunity to increase net interest income and net interest margin . Annual interest expense savings in excess of $22 million expected for 2021 . Accelerated build-out of SBA platform is six months ahead of the original plan – sales and operations hiring increased due to competitor dislocation in the marketplace . SBA gain on sale revenue expected to be in the range of $12 million - $14 million for 2021 . Residential mortgage originations expected to remain strong in the continued low interest rate environment . Continue to remain cautiously optimistic regarding the impact of the COVID-19 pandemic on the credit quality of the loan portfolio 4

Loan Portfolio Overview . Total portfolio loans increased $39.2 million, or 1.3%, compared to 2Q20, and increased $131.6 million, or 4.6%, year-over-year . Commercial loan balances increased $56.2 million, or 2.4%, compared to 2Q20 as growth in healthcare finance and construction lending resumed following limited activity in the second quarter . Consumer loan balances declined $15.3 million, or 2.9%, due primarily to increased prepayment activity across the portfolio Loan Portfolio Mix Dollars in millions $2,963.5 $3,012.9 6% $2,716.2 6% 4% 7% 2% Commercial and Industrial1 2% 32% Commercial Real Estate $2,091.0 34% 9% 34% Single Tenant Lease Financing 2% Public Finance 38% 21% Healthcare Finance $1,250.8 23% 13% 26% Small Business Lending 5% 15% 22% 4% 10% Residential Mortgage/HE/HELOCs 49% 1% 2% 4% 2% 16% Consumer 16% 11% 8% 19% 14% 11% 10% 10% 10% 2016 2017 2018 2019 3Q20 5 1 Includes commercial and industrial and owner-occupied commercial real estate balances

Deposit Composition . Total deposits declined $8.4 million, or 0.2%, compared to 2Q20, and increased $224.1 million, or 7.1%, year-over-year . Quarterly money market growth of $117.3 million, including $87.3 million in small business deposits . CD and brokered deposit balances decreased $138.1 million compared to 2Q20 . Cost of interest-bearing deposits declined 43 bps from 2Q20 to 1.51% Total Deposits - $3.4 Billion Total Non-Time Deposits - $1.7 Billion As of September 30, 2020 As of September 30, 20201 $86.1 3% $251.2 $155.1 $50.0 15% $1,722.0 5% 1% $546.5 $99.2 51% 33% 6% $1,359.2 $753.3 40% 46% Noninterest-bearing deposits Interest-bearing demand deposits Savings accounts Money market accounts Commercial Public funds Small business Consumer Certificates and brokered deposits 1 Total non-time deposits excludes brokered non-time deposits 6

Net Interest Income and Net Interest Margin . FTE net interest margin improved by 17 bps from Net Interest Income – GAAP and FTE1 2Q20 Dollars in millions GAAP FTE . Interest expense on deposits declined as: 1) higher $17.7 $16.8 $16.9 cost CDs matured and were either replaced at $16.6 $15.9 lower rates or not renewed; and 2) money market rates were lowered substantially $16.2 $15.2 $15.4 $15.0 $14.4 . Interest income earned on securities was impacted by accelerated premium amortization and continued declines in short term interest rate indices 3Q19 4Q19 1Q20 2Q20 3Q20 Yield on Loans and Cost of Deposits NIM – GAAP and FTE1 GAAP FTE 4.18% 4.20% 4.11% 4.00% 3.88% 1.70% 1.67% 1.65% 1.67% 1.50% 2.40% 2.35% 2.24% 1.94% 1.54% 1.51% 1.53% 1.51% 1.50% 1.37% 3Q19 4Q19 1Q20 2Q20 3Q20 Yield on loans Cost of interest-bearing deposits 3Q19 4Q19 1Q20 2Q20 3Q20 7 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix

Net Interest Margin Drivers . Linked quarter NIM improvement was primarily attributable to the continued impact of lower deposit costs . Interest-earning asset yields expected to stabilize . Significant opportunity to continue lowering deposit costs . $931 million of CDs with a weighted average cost of 2.02% mature in the next twelve months – replacement cost is currently in the range of 0.50% . Lowered money market rates 30 - 50 bps during the quarter and another 10 bps so far in 4Q20 NIM – FTE1 Linked-Quarter Change Monthly Rate Paid on Interest-Bearing Deposits +32 bps 2.16% -3 bps 2.10% 1.93% 1.67% -11 bps 1.80% -1 bp 1.50% 1.59% 1.50% 1.42% Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 8 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix

Noninterest Income . Noninterest income of $12.5 million compared to $5.0 million in 2Q20 and $5.6 million in 3Q19 . Mortgage banking revenue of $9.6 million on strong origination volumes and higher margins . Gain on sale of loans of $2.0 million, up $1.3 million from 2Q20 . Revenue of $1.7 million for SBA 7(a) guaranteed loans in 3Q20, up $0.9 million from 2Q20 . Sold $12.2 million of single tenant lease financing loans at a gain of $0.4 million Noninterest Income Noninterest Income 3Q20 Dollars in millions $12.5 $0.2 $0.5 $0.2 $9.6 $2.0 $6.2 $5.6 $5.4 $5.0 Mortgage banking activities Gain on sale of loans Service charges and fees Net loan servicing revenue 3Q19 4Q19 1Q20 2Q20 3Q20 Other 9

Noninterest Expense . Noninterest expense of $16.4 million compared to $13.2 million in 2Q20 and $11.2 million in 3Q19 . Includes $2.1 million write-down of legacy OREO . Higher salaries and employee benefits due mainly to higher incentive compensation and growth in SBA platform . Partially offset by lower consulting and professional fees and other expenses . Noninterest expense / average assets remains well below the industry average Noninterest Expense Noninterest Expense / Average Assets Dollars in millions Core OREO write-down 1 Core OREO write-down $16.4 1 1.52% $13.5 $12.6 $13.2 1.32% 1.22% 1.22% $11.2 1.11% $14.3 1.33% 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 1 Noninterest expense includes the $2.1 million write-down of other real estate owned; see Reconciliation of Non-GAAP Financial Measures in 10 the Appendix

Asset Quality . Asset quality metrics remain among the industry’s best, driven by a strong credit culture and lower-risk asset classes . Allowance for loan losses to total loans increased to 0.89% in 3Q20, or 0.91% excluding PPP loans1, due primarily to adjustments to qualitative factors . Quarterly provision for loan losses of $2.5 million . Net charge-offs to average loans of 0.01%, down from 0.12% in 2Q20 . Delinquencies 30 days or more past due declined to 0.22%. NPLs / Total Loans NPAs / Total Assets Net Charge-Offs / Average Loans 0.32% 0.27% 0.26% 0.23% 0.24% 0.23% 0.21% 0.22% 0.23% 0.20% 0.15% 0.12% 0.06% 0.04% 0.01% 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix 11

Liquidity and Capital . Regulatory capital ratios remained strong at the Company and Bank levels . Strong capital generation during the quarter resulted in the tangible common equity to tangible assets ratio increasing 23 bps to 7.24% . Continue to have sufficient liquidity to handle the current economic impact of COVID-19 Tangible Book Value Per Share1 Regulatory Capital Ratios – September 30, 20202 $31.98 Company Bank $30.82 Total shareholders' equity to assets 7.34% 8.12% $27.93 $26.09 Tangible common equity to tangible assets1 7.24% 8.02% $23.04 Tier 1 leverage ratio 7.72% 8.50% $22.24 $20.74 Common equity tier 1 capital ratio 11.13% 12.27% $19.38 Tier 1 capital ratio 11.13% 12.27% Total risk-based capital ratio 14.38% 13.17% 2013 2014 2015 2016 2017 2018 2019 3Q20 1 See Reconciliation of Non-GAAP Financial Measures 2 Regulatory capital ratios are preliminary pending filing of the Company’s and Bank’s regulatory reports 12

Loan Deferral Summary . Loan deferral balances are now less than 1% of total loans since peaking in late-May at 22% . All borrowers coming off deferral programs have resumed making scheduled loan payments without delinquency Deferrals As of As of As of As of As of April 17, May 15, July 17, August 28, October 16, % of Balances (Dollars in millions) 2020 2020 2020 2020 2020 with Deferrals1 Commercial and industrial $15.4 $15.9 $1.7 $0.5 $0.7 0.9% Single tenant lease financing $11.8 $259.0 $276.8 $27.8 $5.4 0.6% Owner-occupied CRE $6.0 $16.2 $19.3 $5.7 $6.2 7.0% Investor CRE $0.0 $0.4 $0.4 $0.4 - - Healthcare finance $289.1 $297.0 $57.8 $7.7 $2.3 0.5% Small business $21.7 $23.7 $1.8 - $3.4 2.7% Total commercial $344.0 $612.2 $357.8 $42.1 $18.0 0.7% Residential mortgage $8.9 $12.0 $5.6 $2.2 $2.3 1.1% Home equity $0.3 $0.4 $0.2 $0.1 - - Other consumer $7.8 $9.0 $2.2 $0.8 $0.5 0.2% Total consumer $17.0 $21.4 $8.0 $3.1 $2.8 0.5% Total loans with deferrals $361.0 $633.6 $365.8 $45.2 $20.8 0.7% As a % of total loans 12.5% 21.9% 12.6% 1.6% 0.7% 13 1 Deferral balances as of October 16, 2020 and total loan balances as of September 30, 2020

Single Tenant Lease Financing Portfolio mix by major tenant . $960.5 million in balances as of September 30, 2020 Red Lobster . Long term financing of single tenant properties occupied 7% ICWG by historically strong national and regional tenants 7% Wendy's . Burger King Weighted-average portfolio LTV of 49% 6% Walgreens . Weighted-average loan size of $1.4 million 5% Bob Evans . 55% Strong historical credit performance 4% Dollar General . Only $5.4 million in loan balances remain on deferral; all 4% CVS other loans came off deferral and resumed payments 4% United Pacific . No delinquencies for performing loans 4% Caliber 2% Collision 2% Other Portfolio mix by major vertical Portfolio mix by geography 2% 1% 1% Quick Service Restaurants Full Service 6% Restaurants 9% 23% Auto Parts/ Repair/Car Wash 12% 6% Convenience/Fuel 21% Pharmacies 9% Specialty Retailers Dollar Stores 24% 37% 11% 22% Medical Bank Branches 16% Other 14

Public Finance Borrower mix by credit rating . $625.6 million in balances as of September 30, 2020 1.2% . Provides a range of credit solutions for government and 2.9%5.0% AAA/Aaa 4.6% not-for-profit entities AA+/Aa1 . Borrowers’ needs include short-term financing, debt AA/Aa2 AA-/Aa3 refinancing, infrastructure improvements, economic 47.0% A+/A1 development and equipment financing 21.4% A/A2 . Federal stimulus funds provide relief from tax revenue A-/A3 declines and/or delays caused by the COVID-19 crisis BBB+/Baa1 BBB/Baa2 . No delinquencies or losses since inception 6.3% 4.7% BB+/Ba1 BB/Ba2 . No borrowers currently receiving payment deferrals 1.3% Non-Rated 3.0% 1.9% 0.7% Portfolio mix by repayment source Portfolio mix by state General Obligation 2.7%5.2% 2.8% Essential use equipment 12.4% IN OK 3.0% loans Utilities Revenue 3.3% Lease rental revenue 3.3% IA OH 5.1% 31.8% Public higher ed facilities - 3.6% Revenue 6.1% Tax Incremental Financing 4.0% 55.2% MO MI (TIF) districts 6.2% Sales tax, food and bev tax, 5.7% hotel tax MS GA Income Tax supported loans 5.9% 10.4% Public higher ed facilities - 15.9% G.O. Other Municipally owned health 6.6% 10.8% care facilities Others 15

Healthcare Finance Portfolio mix by borrower . $461.7 million in balances as of September 30, 2020 1% 2% . Loan portfolio focused primarily on dental practices with 7% some exposure to veterinary practices and other specialties Dentists . Borrowers’ needs include practice finance or acquisition, acquiring or refinancing owner-occupied CRE, equipment Veterinarians purchases and project loans . Average loan size of $630,000 Physicians . Balances on deferral programs less than 1% of portfolio 90% down from late-May peak of approximately 79% Other Portfolio mix by borrower use Portfolio mix by State 1% 4% CA TX Practice Refi or 14% Acquisition 39% 28% NY AZ Owner 81% Occupied CRE FL NJ Project 12% Other Equipment and 3% 4% 6% other 5% 16

C&I and Owner-Occupied Commercial Real Estate . $166.2 million in combined balances as of September 30, 2020 Portfolio Mix by State . Current C&I LOC utilization of 46% 2% 8% IN . Average loan sizes 5% . C&I: $354,000 AZ 6% IL . Owner-occupied CRE: $958,000 52% . Exited relationships totaling in excess of $65 million over the OH last two years to de-risk the portfolio 27% MD . 4.4% of balances are on payment deferral programs as of October 16, 2020 Other Portfolio by Loan Type Portfolio Mix by Major Industry Services 10% 25% Construction Owner Occupied 31% CRE Real Estate and C&I - Term Loans Rental and Leasing 36% 54% Retail Trade C&I - Lines of 9% Credit 10% 14% Manufacturing 11% Other 17

Small Business Lending . $123.2 million in balances as of September 30, 2020 Portfolio Mix by State . Current balance of $58.3 million outstanding under the Paycheck Protection Program consisting of 447 loans made to existing IN IL clients 22% 41% CA AZ . 2.7% of balances are on payment deferral programs as of 4% October 16, 2020 4% FL TX . SBA sales team now consists of 11 Business Development 4% Officers and origination volumes are ramping up 9% Other 17% Managed SBA 7(a) Loans1 Dollars in millions $231.1 Portfolio Mix by Major Industry $34.8 $173.5 $157.9 $151.8 Services $131.5 24% 24% $113.9 Health Care and $104.0 $103.9 Social Assistance Accommodation and Food Services $64.9 $11.6 $47.8 $54.1 $59.6 9% Retail Trade 16% 3Q19 4Q19 1Q20 2Q20 3Q20 11% Construction Retained Balance Servicing Portfolio Held For Sale 16% Other 1 Excludes PPP loans 18

Residential Mortgage . $225.2 million in balances as of September 30, 2020 National Portfolio with (includes home equity balances) Midwest Concentration . Direct-to-consumer originations centrally located at corporate headquarters . Focused on high quality borrowers 23% 9% 59% . Avg. loan size of $182,000 . Avg. credit score at orig. of 756 . Avg. LTV at origination of 68% . Strong historical credit performance 3% 6% . Approximately 1% of balances are on payment deferral programs as of October 16, 2020 Concentration by State Concentration by Loan Type State Percentage Loan Type Percentage Indiana 54% Single Family Residential 73% California 17% SFR Construction to New York 4% Permanent 17% Florida 2% Home Equity – LOC 8% Colorado 2% Home Equity – Closed End 2% All other states 21% 19

Specialty Consumer . $282.5 million in balances as of September 30, 2020 Geographically Diverse Portfolio . Direct-to-consumer and nationwide dealer network originations . Focused on high quality borrowers 22% 10% . Avg. credit score at orig. of 778 18% . Avg. loan size of $19,370 . Strong historical credit performance . Less than 0.5% of balances are on payment deferral 22% 28% programs as of October 16, 2020 Concentration by State Concentration by Loan Type State Percentage Loan Type Percentage Texas 15% Trailers 52% California 12% Recreational Vehicles 34% Florida 6% Other consumer 14% North Carolina 4% Colorado 4% All other states 59% 20

Appendix 21

Loan Portfolio Composition Dollars in thousands 2017 2018 2019 1Q20 2Q20 3Q20 Commercial loans Commercial and industrial $ 122,940 $ 107,405 $ 96,420 $ 95,227 $ 81,687 $ 77,116 Owner-occupied commercial real estate 75,768 77,569 86,726 87,956 86,897 89,095 Investor commercial real estate 7,273 5,391 12,567 13,421 13,286 13,084 Construction 49,213 39,916 60,274 64,581 77,591 92,154 Single tenant lease financing 803,299 919,440 995,879 972,275 980,292 960,505 Public finance 438,341 706,342 687,094 627,678 647,107 625,638 Healthcare finance 31,573 117,007 300,612 372,266 380,956 461,740 Small business lending 4,870 17,370 47,787 54,056 118,526 123,168 Total commercial loans 1,528,407 1,990,440 2,287,359 2,287,460 2,386,342 2,442,500 Consumer loans Residential mortgage 299,935 399,898 313,849 218,730 208,728 203,041 Home equity 30,554 28,735 24,306 23,855 22,640 22,169 Trailers 101,369 136,620 146,734 148,700 147,326 145,775 Recreational vehicles 69,196 91,912 102,702 103,868 102,088 96,910 Other consumer loans 56,968 51,239 45,873 44,037 42,218 39,765 Total consumer loans 558,022 708,404 633,464 539,190 523,000 507,660 Net def. loan fees, prem., disc. and other1 4,764 17,384 42,724 65,443 64,332 62,754 Total Loans $ 2,091,193 $ 2,716,228 $ 2,963,547 $ 2,892,093 $ 2,973,674 $ 3,012,914 1 Includes carrying value adjustments of $44.3 million and $46.0 million related to terminated interest rate swaps associated with public finance loans as of September 30, 2020 and June 30, 2020, respectively, and $44.6 million, $21.4 million, $5.0 million and $0.3 million as of March 31, 2020, December 31, 2019, December 31, 2018 and December 31, 2017, respectively, related to interest rate swaps associated with public finance loans. 22

Reconciliation of Non-GAAP Financial Measures Dollars in thousands 3Q19 4Q19 1Q20 2Q20 3Q20 Total equity - GAAP $295,140 $304,913 $305,127 $307,711 $318,102 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) Tangible common equity $290,453 $300,226 $300,440 $303,024 $313,415 Tota l a sse ts - GAAP $4,095,491 $4,100,083 $4,168,146 $4,324,600 $4,333,624 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) Tangible assets $4,090,804 $4,095,396 $4,163,459 $4,319,913 $4,328,937 Common shares outstanding 9,741,800 9,741,800 9,801,825 9,799,047 9,800,569 Book value per common share $30.30 $31.30 $31.13 $31.40 $32.46 Effect of goodwill (0.48) (0.48) (0.48) (0.48) (0.48) Tangible book value per common share $29.82 $30.82 $30.65 $30.92 $31.98 Total shareholders' equity to assets 7.21% 7.44% 7.32% 7.12% 7.34% Effect of goodwill (0.11%) (0.11%) (0.10%) (0.11%) (0.10%) Tangible common equity to tangible assets 7.10% 7.33% 7.22% 7.01% 7.24% Net interest income $15,244 $15,374 $15,018 $14,426 $16,232 Adjustments: Fully-taxable equivalent adjustments 1 1,595 1,570 1,535 1,437 1,424 Net interest income - FTE $16,839 $16,944 $16,553 $15,863 $17,656 Net interest margin 1.54% 1.51% 1.50% 1.37% 1.53% Adjustments: Effect of fully-taxable equivalent adjustments 1 0.16% 0.16% 0.15% 0.13% 0.14% Net interest margin - FTE 1.70% 1.67% 1.65% 1.50% 1.67% 1 Assuming a 21% tax rate 23

Reconciliation of Non-GAAP Financial Measures Dollars in thousands 3Q19 4Q19 1Q20 2Q20 3Q20 Allowance for loan losses $21,683 $21,840 $22,857 $24,465 $26,917 Loans $2,881,272 $2,963,547 $2,892,093 $2,973,674 $3,012,914 Adjustments: PPP loans - - - (58,948) (58,337) Loans, excluding PPP loans $2,881,272 $2,963,547 $2,892,093 $2,914,726 $2,954,577 Allowance for loan losses to loans 0.75% 0.74% 0.79% 0.82% 0.89% Effect of PPP loans 0.00% 0.00% 0.00% 0.02% 0.02% Allowance for loan losses to loans, excluding PPP loans 0.75% 0.74% 0.79% 0.84% 0.91% Noninterest expense $11,203 $12,613 $13,486 $13,244 $16,412 Adjustments: Write-down of other real estate owned - - - - 2,065 Adjusted noninterest expense $11,203 $12,613 $13,486 $13,244 $14,347 Noninterest expense/average assets 1.11% 1.22% 1.32% 1.22% 1.53% Effect of write-down of other real estate owned 0.00% 0.00% 0.00% 0.00% 0.19% Adjusted noninterest expense/average assets 1.11% 1.22% 1.32% 1.22% 1.34% 1 Assuming a 21% tax rate 24

Reconciliation of Non-GAAP Financial Measures Dollars in thousands 3Q19 4Q19 1Q20 2Q20 3Q20 Income before income taxes - GAAP $6,775 $7,698 $6,282 $3,664 $9,806 Adjustments: Write-down of other real estate owned - - - - 2,065 Adjusted income before income taxes $6,775 $7,698 $6,282 $3,664 $11,871 Income tax provision (benefit) - GAAP $ 449 $ 602 $ 263 $ (268) $ 1,395 Adjustments: Write-down of other real estate owned - - - - 434 Adjusted income tax provision (benefit) $ 449 $ 602 $ 263 $ (268) $ 1,829 Net income - GAAP $6,326 $7,096 $6,019 $3,932 $8,411 Adjustments: Write-down of other real estate owned - - - - 1,631 Adjusted net income $6,326 $7,096 $6,019 $3,932 $10,042 Diluted average common shares outstanding 9,980,612 9,843,829 9,750,528 9,768,227 9,773,224 Diluted earnings per share - GAAP $ 0.63 $ 0.72 $ 0.62 $ 0.40 $ 0.86 Adjustments: Effect of write-down of other real estate owned - - - - 0.17 Adjusted diluted earnings per share $0.63 $0.72 $0.62 $0.40 $1.03 1 Assuming a 21% tax rate 25

Reconciliation of Non-GAAP Financial Measures Dollars in thousands 3Q19 4Q19 1Q20 2Q20 3Q20 Return on average assets 0.63% 0.69% 0.59% 0.37% 0.78% Effect of write-down of other real estate owned 0.00% 0.00% 0.00% 0.00% 0.15% Adjusted return on average assets 0.63% 0.69% 0.59% 0.37% 0.93% Return on average shareholders' equity 8.40% 9.46% 7.78% 5.15% 10.67% Effect of write-down of other real estate owned 0.00% 0.00% 0.00% 0.00% 2.07% Adjusted return on average shareholders' equity 8.40% 9.46% 7.78% 5.15% 12.74% Return on average tangible common equity 8.53% 9.61% 7.90% 5.23% 10.83% Effect of write-down of other real estate owned 0.00% 0.00% 0.00% 0.00% 2.10% Adjusted return on average tangible common equity 8.53% 9.61% 7.90% 5.23% 12.93% Effective income tax rate 6.6% 7.8% 4.2% (7.3%) 14.2% Effect of write-down of other real estate owned 0.0% 0.0% 0.0% 0.0% 1.2% Adjusted effective income tax rate 6.6% 7.8% 4.2% (7.3%) 15.4% 1 Assuming a 21% tax rate 26