inbk-20240724
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): July 24, 2024
First Internet Bancorp
(Exact Name of Registrant as Specified in Its Charter)
Indiana
(State or Other Jurisdiction of Incorporation)
001-3575020-3489991
(Commission File Number)(IRS Employer Identification No.)
8701 E. 116th Street46038
Fishers, Indiana
(Address of Principal Executive Offices)(Zip Code)
(317) 532-7900
(Registrant's Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

    ☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

    ☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolsName of each exchange on which registered
Common Stock, without par valueINBKThe Nasdaq Stock Market LLC
6.0% Fixed to Floating Subordinated Notes due 2029INBKZThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

                                    Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨


Item 2.02 Results of Operations and Financial Condition

On July 24, 2024, First Internet Bancorp (the "Company") issued a press release announcing its financial results for the quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated by reference herein.

On July 25, 2024, at 2:00 p.m. (Eastern Time), the Company will host a conference call and webcast to discuss its financial results for the quarter ended June 30, 2024. The electronic presentation slides, which will accompany the call and webcast, are furnished as Exhibit 99.2 and are incorporated by reference herein.

The information contained in this Item 2.02, including Exhibit 99.1 and Exhibit 99.2, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any filing made by us under the Exchange Act or Securities Act of 1933, as amended, regardless of any general incorporation language in any such filing, except as shall be expressly set forth by specific reference in such filing.


Item 9.01 Financial Statements and Exhibits
(d)    Exhibits
NumberDescriptionMethod of filing
Furnished electronically
Furnished electronically
104Cover Page Interactive Data File (embedded in the cover page formatted in inline XBRL)





SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated:July 24, 2024
FIRST INTERNET BANCORP
By:/s/ Kenneth J. Lovik
Kenneth J. Lovik, Executive Vice President & Chief Financial Officer






First Internet Bancorp Reports Second Quarter 2024 Results

Fishers, Indiana, July 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 second quarter ended June 30, 2024.


Second Quarter 2024 Financial Highlights

•Net income of $5.8 million and adjusted net income1 of $6.2 million, increases of 11.5% and 20.2%, respectively, from the first quarter of 2024

•Diluted earnings per share of $0.67 and adjusted diluted earnings per share1 of $0.72, increases of 13.6% and 22.0%, respectively, from the first quarter of 2024

•Net interest income of $21.3 million and fully-taxable equivalent net interest income1 of $22.5 million, increases of 2.9% and 2.6%, respectively, from the first quarter of 2024

•Net interest margin of 1.67% and fully-taxable equivalent net interest margin1 of 1.76%, both increases of 1 basis point from the first quarter of 2024

•Noninterest income of $11.0 million, a 32.2% increase from the first quarter of 2024

•Relative to the first quarter of 2024, total revenue growth of 11.3% outpaced noninterest expense growth and adjusted noninterest expense1 growth of 6.2% and 3.5%, respectively, resulting in positive operating leverage

•Loan growth of $51.3 million, a 1.3% increase from the first quarter of 2024

•Nonperforming loans to total loans of 0.33%; net charge-offs to average loans of 0.14%; allowance for credit losses to total loans of 1.10%

•Tangible book value per share1 of $42.37, a 1.3% increase from the first quarter of 2024, and a 6.3% increase from the second quarter of 2023

“Our strong upward earnings trajectory continued in the second quarter of 2024, driven by an increasingly diversified revenue base,” said David Becker, Chairman and Chief Executive Officer. “The optimization of our loan portfolio, solid loan growth, increasing asset yields, and stabilization of funding costs have led to improved net interest income.”

“At the same time, the continued growth of our SBA business, alongside other strategic initiatives, has helped drive improvement in noninterest income, which represented nearly one-third of total revenues during the first half of 2024, up from just under one-quarter of revenues for the comparable period a year ago.”
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."


Mr. Becker concluded, “Entering the second half of the year, we remain confident in our ability to deliver continued improvement in operating fundamentals, while maintaining our rigorous approach to managing risk. I want to thank the entire First Internet team for their contribution towards our strong results and continued success.”

Net Interest Income and Net Interest Margin
Net interest income for the second quarter of 2024 was $21.3 million, compared to $20.7 million for the first quarter of 2024, and $18.1 million for the second quarter of 2023. On a fully-taxable equivalent basis, net interest income for the second quarter of 2024 was $22.5 million, compared to $21.9 million for the first quarter of 2024, and $19.5 million for the second quarter of 2023.

Total interest income for the second quarter of 2024 was $71.0 million, an increase of 4.1% compared to the first quarter of 2024, and an increase of 22.1% compared to the second quarter of 2023. On a fully-taxable equivalent basis, total interest income for the second quarter of 2024 was $72.1 million, an increase of 4.0% compared to the first quarter of 2024, and an increase of 21.3% compared to the second quarter of 2023. The yield on average interest-earning assets for the second quarter of 2024 increased to 5.54% from 5.45% for the first quarter of 2024, due to a 10 basis point (“bp”) increase in the yield earned on loans and a 21 bp increase in the yield earned on securities, partially offset by an 11 bp decrease in the yield earned on other earning assets. Compared to the linked quarter, average loan balances, including loans held-for-sale, increased $44.1 million, or 1.1%, while the average balance of securities increased $41.0 million, or 5.8%, and the average balance of other earning assets increased $34.9 million, or 8.0%.

Interest income earned on commercial loans was higher due primarily to increased average balances within the construction, small business lending and franchise finance portfolios. This was partially offset by lower average balances in the investor commercial real estate, public finance and healthcare finance portfolios. The continued shift in the loan mix reflects the Company’s focus on variable rate and higher-yielding products, in part, to help improve the interest rate risk profile of the balance sheet.

In the consumer loan portfolio, interest income was up due to the combination of slightly higher average balances and higher yields in the trailers, recreational vehicles and other consumer loan portfolios.

The yield on funded portfolio loan originations was 8.88% in the second quarter of 2024, an increase of 4 bps compared to the first quarter of 2024, and an increase of 46 bps compared to the second quarter of 2023.

Interest income earned on securities during the second quarter of 2024 increased $0.8 million, or 11.8%, compared to the first quarter of 2024 as the yield on the portfolio increased 21 bps to 4.02%, driven primarily by higher yields on new purchases. Interest income earned on other earning asset balances increased $0.4 million, or 5.8%, in the second quarter of 2024 compared to the linked quarter, due primarily to higher average cash balances, partially offset by lower yields.

Total interest expense for the second quarter of 2024 was $49.6 million, an increase of $2.2 million, or 4.6%, compared to the linked quarter as short-term rates remained stable throughout the quarter while average interest-bearing deposit balances increased $186.0 million, or 4.7%. Interest expense related to interest-bearing deposits increased $2.4 million, or 5.6%, driven primarily by certificates of deposits (“CDs”), interest-bearing demand deposits, money market accounts and BaaS-brokered deposits. The cost of interest-bearing deposits was 4.29% for the second quarter of 2024, compared to 4.25% for the first quarter of 2024.








Average CD balances increased $148.9 million, or 9.1%, compared to the linked quarter, driven by strong consumer demand, while the cost of funds increased 8 bps. The increase in the total cost of CDs was the lowest in the past two years, reflecting the narrowing gap between rates on new production/renewals and maturities. Assuming pricing remains in line with the second quarter, rates on new CD production are 6 – 8 bps lower than the rates on CDs maturing in the second half of 2024.

The average balance of interest-bearing demand deposits increased $59.0 million, or 14.2%, due to growth in fintech partnership deposits, while the cost of funds increased 15 bps. The average balance of money market accounts increased $25.0 million, or 2.1%, while the cost of funds increased 5 bps due to growth in larger-balance accounts. The average balance of BaaS – brokered deposits increased $34.3 million, or 40.2%, due to higher payments volumes, while the cost of funds decreased 2 bps.

These increases were partially offset by lower average brokered deposit balances, which decreased $81.7 million, or 13.5%, as excess liquidity was used to pay down $139.0 million of higher-cost brokered deposits.

Net interest margin (“NIM”) was 1.67% for the second quarter of 2024, up from 1.66% for the first quarter of 2024 and up from 1.53% for the second quarter of 2023. Fully-taxable equivalent NIM (“FTE NIM”) was 1.76% for the second quarter of 2024, up from 1.75% for the first quarter of 2024 and up from 1.64% for the second quarter of 2023. The pace of increase in NIM and FTE NIM was down compared to the last two quarters due primarily to lower growth in average loan balances as the Company experienced both early payoffs and later-than-anticipated funding of larger-balance loans.


Noninterest Income
Noninterest income for the second quarter of 2024 was $11.0 million, compared to $8.3 million for the first quarter of 2024, and $5.9 million for the second quarter of 2023. Gain on sale of loans totaled $8.3 million in the second quarter of 2024, increasing $1.8 million, or 26.9%, 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 second quarter of 2024. Loan sale volume was up 18.9% and net premiums increased 6 bps compared to the linked quarter. Other income increased $1.2 million during the quarter due primarily to distributions from fund investments. These increases were partially offset by a decline of $0.2 million in net loan servicing revenue driven by the fair value adjustment to the loan servicing asset.


Noninterest Expense
Noninterest expense totaled $22.3 million for the second quarter of 2024, compared to $21.0 million for the first quarter of 2024, and $18.7 million for the second quarter of 2023, representing increases of 6.2% and 19.6%, respectively. Excluding non-recurring costs of almost $0.6 million related to IT termination fees and anniversary expenses, adjusted noninterest expense totaled $21.8 million for the second quarter of 2024, an increase of $0.7 million, or 3.5%, compared to the linked quarter. The increase was due mainly to higher salaries and employee benefits, consulting and professional fees and loan expenses, partially offset by lower marketing expenses.

The increase in recurring salaries and employee benefits was $0.5 million and was due primarily to higher small business incentive compensation and staff additions in small business lending and risk management. Consulting and professional fees increased $0.2 million due to the timing of outsourced audit services. Loan expenses increased $0.2 million due mainly to collection costs and third-party servicer fees. The decrease in marketing expenses of $0.1 million was due to lower advertising and media spend.








Income Taxes
The Company recorded income tax expense of $0.2 million and an effective tax rate of 3.6% for the second quarter of 2024, compared to income tax expense of $0.4 million and an effective tax rate of 7.6% for the first quarter of 2024, and an income tax benefit of $0.2 million for the second quarter of 2023.

Loans and Credit Quality
Total loans as of June 30, 2024 were $4.0 billion, an increase of $51.3 million, or 1.3%, compared to March 31, 2024, and an increase of $314.3 million, or 8.6%, compared to June 30, 2023. Total commercial loan balances were $3.1 billion as of June 30, 2024, an increase of $46.9 million, or 1.5%, compared to March 31, 2024, and an increase of $297.0 million, or 10.5%, compared to June 30, 2023. Compared to the linked quarter, the increase in commercial loan balances was driven primarily by growth in investor commercial real estate, small business lending and franchise finance balances. These items were partially offset by decreases in the commercial and industrial, single tenant lease financing, public finance and healthcare finance portfolios. Quarter-end balances in the commercial and industrial and construction portfolios were impacted by early payoffs of higher-yielding variable rate loans. The increase in investor commercial real estate balances included loans with strong variable rate pricing that closed later in the quarter and, therefore, had very little impact on interest income for the quarter.

Total consumer loan balances were $800.5 million as of June 30, 2024, an increase of $7.0 million, or 0.9%, compared to March 31, 2024, and an increase of $27.8 million, or 3.6%, compared to June 30, 2023. The increase compared to the linked quarter was due primarily to higher balances in the trailers, recreational vehicles and other consumer loan portfolios, partially offset by a decrease in the residential mortgage portfolio.

Total delinquencies 30 days or more past due were 0.56% of total loans as of June 30, 2024, compared to 0.53% at March 31, 2024, and 0.09% as of June 30, 2023. The slight increase compared to the linked quarter was due primarily to an increase in delinquencies in residential mortgage loans.

Nonperforming loans were 0.33% of total loans as of June 30, 2024, unchanged from March 31, 2024, and compared to 0.17% as of June 30, 2023. Nonperforming loans totaled $13.0 million at June 30, 2024, down slightly from $13.1 million at March 31, 2024, and up from $6.2 million as of June 30, 2023. Additionally, the composition of nonperforming loans at the end of the second quarter of 2024 was relatively consistent with the linked quarter.

The allowance for credit losses (“ACL”) as a percentage of total loans was 1.10% as of June 30, 2024, compared to 1.05% as of March 31, 2024, and 0.99% as of June 30, 2023. The increase in the ACL reflects growth and higher coverage ratios in certain loan portfolios as well as additional reserves related to small business lending, partially offset by the positive impact of economic data on forecasted loss rates and qualitative factors on other portfolios.

Net charge-offs of $1.4 million were recognized during the second quarter of 2024, resulting in net charge-offs to average loans of 0.14%, compared to $0.5 million, or 0.05%, for the first quarter of 2024, and $1.6 million, or 0.17%, for the second quarter of 2023. Net charge-offs in the second quarter of 2024 were driven primarily by franchise finance, including one loan that had been previously reserved for, and small business lending.

The provision for credit losses in the second quarter of 2024 was $4.0 million, compared to $2.4 million for the first quarter of 2024, and $1.7 million for the second quarter of 2023. The provision for the second quarter of 2024 was driven primarily by growth and changes in the loan composition, net







charge-offs and an increase in reserves related to small business lending, partially offset by the positive impact of economic forecasts and adjustments to qualitative factors on other portfolios.

Capital
As of June 30, 2024, total shareholders’ equity was $372.0 million, an increase of $5.2 million, or 1.4%, compared to March 31, 2024, and an increase of $17.6 million, or 5.0%, compared to June 30, 2023. The increase in total shareholders’ equity during the second quarter of 2024 compared to the linked quarter was due primarily to the net income earned during the quarter. Book value per common share increased to $42.91 as of June 30, 2024, up from $42.37 as of March 31, 2024, and $40.38 as of June 30, 2023. Tangible book value per share was $42.37 as of June 30, 2024, up from $41.83 as of March 31, 2024, and $39.85 as of June 30, 2023.


The following table presents the Company’s and the Bank’s regulatory and other capital ratios as of June 30, 2024.
As of June 30, 2024
CompanyBank
Total shareholders’ equity to assets 6.96%8.45%
Tangible common equity to tangible assets 1
6.88%8.37%
Tier 1 leverage ratio 2
7.24%8.77%
Common equity tier 1 capital ratio 2
9.47%11.47%
Tier 1 capital ratio 2
9.47%11.47%
Total risk-based capital ratio 2
13.13%12.58%
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, July 25, 2024 to discuss its quarterly financial results. The call can be accessed via telephone at (888) 259-6580; access code: 10885532. A recorded replay can be accessed through August 25, 2024 by dialing (877) 674-7070; access code: 885532.

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 $5.3 billion as of June 30, 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” 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,” “estimate,” “expect,” “growth,” ”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, and SBA 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 EndedSix Months Ended
June 30,
2024		March 31,
2024		June 30,
2023		June 30,
2024		June 30,
2023
Net Income $5,775 5,181 $3,882 $10,956 $865 
Per share and share information
Earnings per share - basic$0.67 $0.60 $0.44 $1.26 $0.10 
Earnings per share - diluted0.67 0.59 0.44 1.25 0.10 
Dividends declared per share0.06 0.06 0.06 0.12 0.12 
Book value per common share42.91 42.37 40.38 42.91 40.38 
Tangible book value per common share 1
42.37 41.83 39.85 42.37 39.85 
Common shares outstanding8,667,894 8,655,854 8,774,507 8,667,894 8,774,507 
Average common shares outstanding:
Basic8,594,315 8,679,429 8,903,213 8,684,093 8,963,308 
Diluted8,656,215 8,750,297 8,908,180 8,750,017 8,980,262 
Performance ratios
Return on average assets0.44 %0.40 %0.32 %0.42 %0.04 %
Return on average shareholders' equity6.28 %5.64 %4.35 %5.96 %0.48 %
Return on average tangible common equity 1
6.36 %5.71 %4.40 %6.04 %0.49 %
Net interest margin1.67 %1.66 %1.53 %1.67 %1.64 %
Net interest margin - FTE 1,2
1.76 %1.75 %1.64 %1.76 %1.76 %
Capital ratios 3
Total shareholders' equity to assets6.96 %6.87 %7.16 %6.96 %7.16 %
Tangible common equity to tangible assets 1
6.88 %6.79 %7.07 %6.88 %7.07 %
Tier 1 leverage ratio7.24 %7.33 %7.63 %7.24 %7.63 %
Common equity tier 1 capital ratio9.47 %9.52 %10.10 %9.47 %10.10 %
Tier 1 capital ratio9.47 %9.52 %10.10 %9.47 %10.10 %
Total risk-based capital ratio13.13 %13.18 %13.87 %13.13 %13.87 %
Asset quality
Nonperforming loans$12,978 $13,050 $6,227 $12,978 $6,227 
Nonperforming assets13,055 13,425 6,397 13,055 6,397 
Nonperforming loans to loans0.33 %0.33 %0.17 %0.33 %0.17 %
Nonperforming assets to total assets0.24 %0.25 %0.13 %0.24 %0.13 %
Allowance for credit losses - loans to:
Loans1.10 %1.05 %0.99 %1.10 %0.99 %
Nonperforming loans334.5 %313.3 %579.1 %334.5 %579.1 %
Net charge-offs to average loans0.14 %0.05 %0.17 %0.10 %0.49 %
Average balance sheet information
Loans$3,930,976 $3,889,667 $3,653,839 $3,910,322 $3,614,054 
Total securities744,537 703,509 604,182 724,023 594,777 
Other earning assets469,045 434,118 511,295 451,582 421,793 
Total interest-earning assets5,150,305 5,030,216 4,771,623 5,090,261 4,636,453 
Total assets5,332,776 5,207,936 4,927,712 5,270,356 4,788,209 
Noninterest-bearing deposits116,939 113,341 117,496 115,140 126,194 
Interest-bearing deposits4,172,976 3,987,009 3,713,086 4,079,992 3,563,359 
Total deposits4,289,915 4,100,350 3,830,582 4,195,132 3,689,553 
Shareholders' equity369,825 369,371 358,312 369,598 360,779 

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)
Dollar amounts in thousands
June 30,
2024		March 31,
2024		June 30,
2023
Assets
Cash and due from banks$6,162 $6,638 $9,503 
Interest-bearing deposits390,624 474,626 456,128 
Securities available-for-sale, at fair value488,572 482,431 379,394 
Securities held-to-maturity, at amortized cost, net of allowance for credit losses270,349 235,738 230,605 
Loans held-for-sale19,384 22,589 32,001 
Loans3,961,146 3,909,804 3,646,832 
Allowance for credit losses - loans(43,405)(40,891)(36,058)
Net loans3,917,741 3,868,913 3,610,774 
Accrued interest receivable28,118 26,809 24,101 
Federal Home Loan Bank of Indianapolis stock28,350 28,350 28,350 
Cash surrender value of bank-owned life insurance40,834 41,154 40,357 
Premises and equipment, net72,516 73,231 73,525 
Goodwill4,687 4,687 4,687 
Servicing asset13,009 11,760 8,252 
Other real estate owned— 375 106 
Accrued income and other assets62,956 63,366 49,266 
Total assets$5,343,302 $5,340,667 $4,947,049 
Liabilities
Noninterest-bearing deposits$126,438 $130,760 $119,291 
Interest-bearing deposits4,147,484 4,143,008 3,735,017 
Total deposits4,273,922 4,273,768 3,854,308 
Advances from Federal Home Loan Bank575,000 574,936 614,931 
Subordinated debt104,993 104,915 104,684 
Accrued interest payable3,419 3,382 3,338 
Accrued expenses and other liabilities14,015 16,927 15,456 
Total liabilities4,971,349 4,973,928 4,592,717 
Shareholders' equity
Voting common stock185,175 184,720 186,545 
Retained earnings217,365 212,121 200,973 
Accumulated other comprehensive loss(30,587)(30,102)(33,186)
Total shareholders' equity371,953 366,739 354,332 
Total liabilities and shareholders' equity$5,343,302 $5,340,667 $4,947,049 







First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited)
Dollar amounts in thousands, except per share data
Three Months Ended Six Months Ended
June 30,
2024		March 31,
2024		June 30,
2023		June 30,
2024		June 30,
2023
Interest income
Loans$57,094 $55,435 $46,906 $112,529 $90,749 
Securities - taxable6,476 5,694 3,835 12,170 7,441 
Securities - non-taxable970 969 860 1,939 1,658 
Other earning assets6,421 6,067 6,521 12,488 10,307 
Total interest income70,961 68,165 58,122 139,126 110,155 
Interest expense
Deposits44,495 42,129 34,676 86,624 61,946 
Other borrowed funds5,139 5,302 5,301 10,441 10,490 
Total interest expense49,634 47,431 39,977 97,065 72,436 
Net interest income21,327 20,734 18,145 42,061 37,719 
Provision for credit losses4,031 2,448 1,698 6,479 11,113 
Net interest income after provision for credit losses17,296 18,286 16,447 35,582 26,606 
Noninterest income
Service charges and fees246 220 218 466 427 
Loan servicing revenue1,470 1,323 850 2,793 1,635 
Loan servicing asset revaluation(829)(434)(358)(1,263)(413)
Mortgage banking activities— — — — 76 
Gain on sale of loans8,292 6,536 4,868 14,828 8,929 
Other1,854 702 293 2,556 663 
Total noninterest income11,033 8,347 5,871 19,380 11,317 
Noninterest expense
Salaries and employee benefits12,462 11,796 10,706 24,258 22,500 
Marketing, advertising and promotion609 736 705 1,345 1,549 
Consulting and professional fees1,022 853 711 1,875 1,637 
Data processing606 564 520 1,170 1,179 
Loan expenses1,597 1,445 1,072 3,042 3,049 
Premises and equipment3,154 2,826 2,661 5,980 5,438 
Deposit insurance premium1,172 1,145 936 2,317 1,479 
Other1,714 1,658 1,359 3,372 2,793 
Total noninterest expense22,336 21,023 18,670 43,359 39,624 
Income (loss) before income taxes5,993 5,610 3,648 11,603 (1,701)
Income tax provision (benefit)218 429 (234)647 (2,566)
Net income $5,775 $5,181 $3,882 $10,956 $865 
Per common share data
Earnings per share - basic$0.67 $0.60 $0.44 $1.26 $0.10 
Earnings per share - diluted$0.67 $0.59 $0.44 $1.25 $0.10 
Dividends declared per share$0.06 $0.06 $0.06 $0.12 $0.12 

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
June 30, 2024March 31, 2024June 30, 2023
Average BalanceInterest / DividendsYield / CostAverage BalanceInterest / DividendsYield / CostAverage BalanceInterest / DividendsYield / Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale 1
$3,936,723 $57,094 5.83 %$3,892,589 $55,435 5.73 %$3,656,146 $46,906 5.15 %
Securities - taxable670,502 6,476 3.88 %627,216 5,694 3.65 %531,040 3,835 2.90 %
Securities - non-taxable74,035 970 5.27 %76,293 969 5.11 %73,142 860 4.72 %
Other earning assets469,045 6,421 5.51 %434,118 6,067 5.62 %511,295 6,521 5.12 %
Total interest-earning assets5,150,305 70,961 5.54 %5,030,216 68,165 5.45 %4,771,623 58,122 4.89 %
Allowance for credit losses - loans(41,362)(38,611)(36,671)
Noninterest-earning assets223,833 216,331 192,760 
Total assets$5,332,776 $5,207,936 $4,927,712 
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits$474,124 $2,567 2.18 %$415,106 $2,091 2.03 %$359,969 $1,509 1.68 %
Savings accounts22,987 48 0.84 %22,521 48 0.86 %29,915 64 0.86 %
Money market accounts1,243,011 13,075 4.23 %1,217,966 12,671 4.18 %1,274,453 12,314 3.88 %
BaaS - brokered deposits119,662 1,299 4.37 %85,366 931 4.39 %22,918 230 4.03 %
Certificates and brokered deposits2,313,192 27,506 4.78 %2,246,050 26,388 4.73 %2,025,831 20,559 4.07 %
Total interest-bearing deposits4,172,976 44,495 4.29 %3,987,009 42,129 4.25 %3,713,086 34,676 3.75 %
Other borrowed funds652,176 5,139 3.17 %716,735 5,302 2.98 %719,577 5,301 2.95 %
Total interest-bearing liabilities4,825,152 49,634 4.14 %4,703,744 47,431 4.06 %4,432,663 39,977 3.62 %
Noninterest-bearing deposits116,939 113,341 117,496 
Other noninterest-bearing liabilities20,860 21,480 19,241 
Total liabilities4,962,951 4,838,565 4,569,400 
Shareholders' equity369,825 369,371 358,312 
Total liabilities and shareholders' equity$5,332,776 $5,207,936 $4,927,712 
Net interest income$21,327 $20,734 $18,145 
Interest rate spread1.40 %1.39 %1.27 %
Net interest margin1.67 %1.66 %1.53 %
Net interest margin - FTE 2,3
1.76 %1.75 %1.64 %
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
Average Balances and Rates (unaudited)
Dollar amounts in thousands
Six Months Ended
June 30, 2024June 30, 2023
Average BalanceInterest / DividendsYield / CostAverage BalanceInterest / DividendsYield / Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale 1
$3,914,656 $112,529 5.78 %$3,619,883 $90,749 5.06 %
Securities - taxable648,860 12,170 3.77 %521,533 7,441 2.88 %
Securities - non-taxable75,163 1,939 5.19 %73,244 1,658 4.56 %
Other earning assets451,582 12,488 5.56 %421,793 10,307 4.93 %
Total interest-earning assets5,090,261 139,126 5.50 %4,636,453 110,155 4.79 %
Allowance for credit losses - loans(39,986)(35,877)
Noninterest-earning assets220,081 187,633 
Total assets$5,270,356 $4,788,209 
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits$444,615 $4,658 2.11 %$346,878 $2,409 1.40 %
Savings accounts22,754 96 0.85 %34,175 145 0.86 %
Money market accounts1,230,488 25,746 4.21 %1,325,741 24,614 3.74 %
BaaS - brokered deposits102,514 2,230 4.37 %18,852 368 3.94 %
Certificates and brokered deposits2,279,621 53,894 4.75 %1,837,713 34,410 3.78 %
Total interest-bearing deposits4,079,992 86,624 4.27 %3,563,359 61,946 3.51 %
Other borrowed funds684,456 10,441 3.07 %719,538 10,490 2.94 %
Total interest-bearing liabilities4,764,448 97,065 4.10 %4,282,897 72,436 3.41 %
Noninterest-bearing deposits115,140 126,194 
Other noninterest-bearing liabilities21,170 18,339 
Total liabilities4,900,758 4,427,430 
Shareholders' equity369,598 360,779 
Total liabilities and shareholders' equity$5,270,356 $4,788,209 
Net interest income$42,061 $37,719 
Interest rate spread1.40 %1.38 %
Net interest margin1.67 %1.64 %
Net interest margin - FTE 2,3
1.76 %1.76 %
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
June 30, 2024March 31, 2024June 30, 2023
AmountPercentAmountPercentAmountPercent
Commercial loans
Commercial and industrial$115,585 2.9 %$133,897 3.4 %$112,423 3.1 %
Owner-occupied commercial real estate58,089 1.5 %57,787 1.5 %59,564 1.6 %
Investor commercial real estate188,409 4.8 %128,276 3.3 %137,504 3.8 %
Construction328,922 8.3 %325,597 8.3 %192,453 5.3 %
Single tenant lease financing927,462 23.4 %941,597 24.1 %947,466 25.9 %
Public finance486,200 12.3 %498,262 12.7 %575,541 15.8 %
Healthcare finance202,079 5.1 %213,332 5.5 %245,072 6.7 %
Small business lending 270,129 6.8 %239,263 6.1 %170,550 4.7 %
Franchise finance551,133 13.9 %543,122 13.9 %390,479 10.6 %
Total commercial loans3,128,008 79.0 %3,081,133 78.8 %2,831,052 77.5 %
Consumer loans
Residential mortgage382,549 9.7 %390,009 10.0 %396,154 10.9 %
Home equity21,405 0.5 %22,753 0.6 %24,375 0.7 %
Trailers197,738 5.0 %191,353 4.9 %178,035 4.9 %
Recreational vehicles150,151 3.8 %145,475 3.7 %133,283 3.7 %
Other consumer loans48,638 1.2 %43,847 1.1 %40,806 1.1 %
Total consumer loans800,481 20.2 %793,437 20.3 %772,653 21.3 %
Net deferred loan fees, premiums, discounts and other 1
32,657 0.8 %35,234 0.9 %43,127 1.2 %
Total loans$3,961,146 100.0 %$3,909,804 100.0 %$3,646,832 100.0 %
June 30, 2024March 31, 2024June 30, 2023
AmountPercentAmountPercentAmountPercent
Deposits
Noninterest-bearing deposits$126,438 3.0 %$130,760 3.1 %$119,291 3.1 %
Interest-bearing demand deposits480,141 11.2 %423,529 9.9 %398,899 10.3 %
Savings accounts22,619 0.5 %23,554 0.6 %28,239 0.7 %
Money market accounts1,222,197 28.6 %1,251,230 29.2 %1,232,719 32.0 %
BaaS - brokered deposits140,180 3.3 %107,911 2.5 %25,549 0.7 %
Certificates of deposits1,829,644 42.8 %1,738,996 40.7 %1,366,409 35.5 %
Brokered deposits 452,703 10.6 %597,788 14.0 %683,202 17.7 %
Total deposits$4,273,922 100.0 %$4,273,768 100.0 %$3,854,308 100.0 %

1 Includes carrying value adjustments of $25.6 million, $26.9 million and $30.5 million related to terminated interest rate swaps associated with public finance loans as of June 30, 2024, March 31, 2024 and June 30, 2023, respectively.








First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
Three Months EndedSix Months Ended
June 30,
2024		March 31,
2024		June 30,
2023		June 30,
2024		June 30,
2023
Total equity - GAAP$371,953 $366,739 $354,332 $371,953 $354,332 
Adjustments:
           Goodwill(4,687)(4,687)(4,687)(4,687)(4,687)
Tangible common equity$367,266 $362,052 $349,645 $367,266 $349,645 
Total assets - GAAP$5,343,302 $5,340,667 $4,947,049 $5,343,302 $4,947,049 
Adjustments:
           Goodwill(4,687)(4,687)(4,687)(4,687)(4,687)
Tangible assets$5,338,615 $5,335,980 $4,942,362 $5,338,615 $4,942,362 
Common shares outstanding8,667,894 8,655,854 8,774,507 8,667,894 8,774,507 
Book value per common share$42.91 $42.37 $40.38 $42.91 $40.38 
Effect of goodwill(0.54)(0.54)(0.53)(0.54)(0.53)
Tangible book value per common share$42.37 $41.83 $39.85 $42.37 $39.85 
Total shareholders' equity to assets6.96 %6.87 %7.16 %6.96 %7.16 %
Effect of goodwill(0.08 %)(0.08 %)(0.09 %)(0.08 %)(0.09 %)
Tangible common equity to tangible assets6.88 %6.79 %7.07 %6.88 %7.07 %
Total average equity - GAAP$369,825 $369,371 $358,312 $369,598 $360,779 
Adjustments:
           Average goodwill(4,687)(4,687)(4,687)(4,687)(4,687)
Average tangible common equity$365,138 $364,684 $353,625 $364,911 $356,092 
Return on average shareholders' equity6.28 %5.64 %4.35 %5.96 %0.48 %
Effect of goodwill0.08 %0.07 %0.05 %0.08 %0.01 %
Return on average tangible common equity6.36 %5.71 %4.40 %6.04 %0.49 %
Total interest income$70,961 $68,165 $58,122 $139,126 $110,155 
Adjustments:
Fully-taxable equivalent adjustments 1
1,175 1,190 1,347 2,365 2,731 
Total interest income - FTE$72,136 $69,355 $59,469 $141,491 $112,886 
Net interest income$21,327 $20,734 $18,145 $42,061 $37,719 
Adjustments:
Fully-taxable equivalent adjustments 1
1,175 1,190 1,347 2,365 2,731 
Net interest income - FTE$22,502 $21,924 $19,492 $44,426 $40,450 
Net interest margin1.67 %1.66 %1.53 %1.67 %1.64 %
Effect of fully-taxable equivalent adjustments 1
0.09 %0.09 %0.11 %0.09 %0.12 %
Net interest margin - FTE1.76 %1.75 %1.64 %1.76 %1.76 %
1Assuming a 21% tax rate







First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
Three Months EndedSix Months Ended
June 30,
2024		March 31,
2024		June 30,
2023		June 30,
2024		June 30,
2023
Total revenue - GAAP$32,360 $29,081 $24,016 $61,441 $49,036 
Adjustments:
     Mortgage-related revenue— — — — (65)
Adjusted total revenue$32,360 $29,081 $24,016 $61,441 $48,971 
Noninterest income - GAAP$11,033 $8,347 $5,871 $19,380 $11,317 
Adjustments:
     Mortgage-related revenue— — — — (65)
Adjusted noninterest income$11,033 $8,347 $5,871 $19,380 $11,252 
Noninterest expense - GAAP$22,336 $21,023 $18,670 $43,359 $39,624 
Adjustments:
     Mortgage-related costs— — — — (3,052)
     IT Termination fees(452)— — (452)— 
     Anniversary expenses(120)— — (120)— 
Adjusted noninterest expense$21,764 $21,023 $18,670 $42,787 $36,572 
Income (loss) before income taxes - GAAP$5,993 $5,610 $3,648 $11,603 $(1,701)
Adjustments:1
     Mortgage-related revenue— — — — (65)
     Mortgage-related costs— — — — 3,052 
     Partial charge-off of C&I participation loan— — — — 6,914 
     IT Termination fees452 — — 452 — 
     Anniversary expenses120 — — 120 — 
Adjusted income before income taxes$6,565 $5,610 $3,648 $12,175 $8,200 
Income tax provision (benefit) - GAAP$218 $429 $(234)$647 $(2,566)
Adjustments:1
     Mortgage-related revenue— — — — (14)
     Mortgage-related costs— — — — 641 
     Partial charge-off of C&I participation loan— — — — 1,452 
     IT Termination fees95 — — 95 — 
     Anniversary expenses25 — — 25 — 
Adjusted income tax provision (benefit)$338 $429 $(234)$767 $(487)
Net income - GAAP$5,775 $5,181 $3,882 $10,956 $865 
Adjustments:
     Mortgage-related revenue— — — — (51)
     Mortgage-related costs— — — — 2,411 
     Partial charge-off of C&I participation loan— — — — 5,462 
     IT Termination fees357 — — 357 — 
     Anniversary expenses95 — — 95 — 
Adjusted net income$6,227 $5,181 $3,882 $11,408 $8,687 
1Assuming a 21% tax rate







First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
Three Months EndedSix Months Ended
June 30,
2024		March 31,
2024		June 30,
2023		June 30,
2024		June 30,
2023
Diluted average common shares outstanding8,656,215 8,750,297 8,908,180 8,750,017 8,980,262 
Diluted earnings per share - GAAP$0.67 $0.59 $0.44 $1.25 $0.10 
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— — — — 0.61 
    Effect of IT termination fees0.04 — — 0.04 — 
    Effect of anniversary expenses0.01 — — 0.01 — 
Adjusted diluted earnings per share$0.72 $0.59 $0.44 $1.30 $0.97 
Return on average assets0.44 %0.40 %0.32 %0.42 %0.04 %
    Effect of mortgage-related revenue0.00 %0.00 %0.00 %0.00 %0.00 %
    Effect of mortgage-related costs0.00 %0.00 %0.00 %0.00 %0.10 %
    Effect of partial charge-off of C&I participation loan0.00 %0.00 %0.00 %0.00 %0.23 %
    Effect of IT termination fees0.03 %0.00 %0.00 %0.01 %0.00 %
    Effect of anniversary expenses0.01 %0.00 %0.00 %0.00 %0.00 %
Adjusted return on average assets0.48 %0.40 %0.32 %0.43 %0.37 %
Return on average shareholders' equity6.28 %5.64 %4.35 %5.96 %0.48 %
    Effect of mortgage-related revenue0.00 %0.00 %0.00 %0.00 %(0.03 %)
    Effect of mortgage-related costs0.00 %0.00 %0.00 %0.00 %1.35 %
    Effect of partial charge-off of C&I participation loan0.00 %0.00 %0.00 %0.00 %3.05 %
    Effect of IT termination fees0.39 %0.00 %0.00 %0.19 %0.00 %
    Effect of anniversary expenses0.10 %0.00 %0.00 %0.05 %0.00 %
Adjusted return on average shareholders' equity6.77 %5.64 %4.35 %6.20 %4.85 %
Return on average tangible common equity6.36 %5.71 %4.40 %6.04 %0.49 %
    Effect of mortgage-related revenue0.00 %0.00 %0.00 %0.00 %(0.03 %)
    Effect of mortgage-related costs0.00 %0.00 %0.00 %0.00 %1.37 %
    Effect of partial charge-off of C&I participation loan0.00 %0.00 %0.00 %0.00 %3.09 %
    Effect of IT termination fees0.39 %0.00 %0.00 %0.20 %0.00 %
    Effect of anniversary expenses0.10 %0.00 %0.00 %0.05 %0.00 %
Adjusted return on average tangible common equity6.85 %5.71 %4.40 %6.29 %4.92 %






Financial Results Second Quarter 2024 Exhibit 99.2

 
Forward-Looking Statements & Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements with respect to the financial condition, results of operations, 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 “believe,” “continue,” “could,” “decline,” “estimate,” “expect,” “grow,” “growth,” “improve,” “increase,” “may,” “pending,” “plan,” “position,” “preliminary,” “remain,” “rising,” “should,” “slow,” “strategy,” “well-positioned,” 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 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 any key members of senior management; the 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 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, total interest income – FTE, net interest income – FTE, net interest margin – FTE, adjusted noninterest expense, adjusted noninterest expense to 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, adjusted tangible common equity, adjusted tangible assets 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 presentation under the caption “Reconciliation of Non-GAAP Financial Measures.” 2

 
Second Quarter 2024 Highlights  Net income of $5.8 million and diluted EPS of $0.67, up 11.5% and 13.6%, respectively, from 1Q24  Adjusted net income of $6.21,2 million, up 20.2% from 1Q24  Adjusted diluted EPS of $0.721,2, up 22.0% from 1Q24 3  Net interest margin of 1.67% and FTE NIM of 1.76%1; both improved by 1 bp from 1Q24  Yield on loan portfolio increased 10 bps from 1Q24 while deposit costs only increased 4 bps  Capital position remains solid  TCE / TA of 6.88%1; CET1 ratio of 9.47%  Record SBA GOS revenue of $8.3 million  NPAs to total assets of 0.24%  Office CRE less than 1% of total loans  Excluding AOCI and adjusting for normalized cash balances, adjusted TCE / TA was 7.59%1  Tangible book value per share increased 1.3% to $42.371 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix 2 2Q24 noninterest expense includes $0.5 million of IT termination fees and $0.1 million of anniversary expenses; see Reconciliation of Non-GAAP Financial Measures in the Appendix  Total revenue of $32.4 million, up 11.3% from 1Q24; positive operating leverage  Total portfolio loan balances increased 1.3% from 1Q24  Weighted average yield on new loans funded in 2Q24 was 8.88%  Loans to deposits ratio of 92.7%  Continued favorable shifts in the composition of loans and deposits

 
Loan Portfolio Overview  Total portfolio loan balances increased 1.3% from 1Q24  Commercial loan balances increased $46.9 million, or 1.5%, from 1Q24  Consumer loan balances increased $7.0 million, or 0.9%, from 1Q24  2Q24 funded portfolio loan origination yields were 8.88%, up 4 bps from 1Q24 and up 46 bps from 2Q23  Office exposure continues to be less than 1% of total loan balances and is limited to suburban and medical 4 Loan Portfolio Mix1 1 Percentages may not add up to 100% due to rounding 2 Includes commercial and industrial and owner-occupied commercial real estate balances Dollars in millions 2 11% 10% 10% 9% 9% 9% 10% 10% 16% 16% 10% 7% 7% 12% 11% 10%3% 9% 14% 14% 1% 2% 4% 4% 4% 6% 7% 2% 4% 10% 18% 14% 8% 6% 5% 21% 26% 24% 21% 21% 18% 14% 12% 39% 34% 35% 32% 31% 27% 25% 24% 3% 2% 3% 4% 6% 8% 10% 13% 10% 7% 6% 6% 6% 5% 5% 5% $2,091 $2,716 $2,964 $3,059 $2,888 $3,499 $3,840 $3,961 2017 2018 2019 2020 2021 2022 2023 2Q24 Commercial and Industrial Construction and Investor CRE Single Tenant Lease Financing Public Finance Healthcare Finance Small Business Lending Franchise Finance Residential Mortgage/HE/HELOCs Consumer

 
$1,927.1 45% $948.2 22% 367.7 9% $261.4 6% $375.0 9% $394.5 9% Consumer Small Business Commercial Fintech Public Funds Brokered2 $106.0 2% $265.8 6% $22.6 1% $456.7 10% $765.5 18% $375.0 9% $1,829.6 43% $452.7 11% Noninterest-bearing deposits Interest-bearing demand deposits Savings accounts Money market - Consumer Money market - SMB/Commercial Fintech deposits Certificates of deposits Brokered deposits Deposit Composition 5  Total deposits remained stable with 1Q24 and are up 10.9% from 2Q23  Diversified deposit base comprised of a combination of consumer, small business, commercial and public funds  Deposit base is further diversified by product type among checking, money market/savings and CDs  Favorable deposit composition shift in 2Q24; used liquidity from new CD and fintech production to pay down higher cost brokered deposits 1 Money market – SMB/Commercial includes small business, commercial, CRE and public funds 2 Public funds includes $58.1 million of deposits that are classified as brokered for regulatory purposes 1 Deposits by Customer Type – 6/30/24 Dollars in millions Total Deposits – $4.3B as of 6/30/24 Dollars in millions Average Balance (Dollars in thousands) $47.0 $86.2 $224.1 $44.4 $728.3

 
Liquidity and 2Q24 Deposit Update 6  Cash and unused borrowing capacity totaled $1.7 billion at June 30, 2024 – Currently represents 150% of total uninsured deposits and 197% of adjusted uninsured deposits  CD production supplemented by growth in fintech deposits drove shift in deposit mix  Liquidity deployed to pay down higher-cost brokered deposits as well as fund loan growth and securities purchases  Loan to deposits ratio remains favorable at 92.7% 1 Money market – SMB/Commercial includes small business, commercial, CRE and public funds Cost of Funds by Deposit TypeTotal Deposits by Quarter Dollars in millions 3% 3% 3% 3% 2%10% 9% 6% 6% 6%1% 1% 1% 1% 1% 11% 10% 11% 10% 11% 21% 20% 20% 19% 18% 1% 1% 5% 6% 9% 53% 56% 54% 55% 53% 2Q23 3Q23 4Q23 1Q24 2Q24 Noninterest-bearing deposits Interest-bearing demand deposits Savings accounts Money market - Consumer Money market - SMB/Commercial Fintech deposits Certificates and brokered deposits 1 $3,854.3 $4,083.5 $4,273.9 2Q23 3Q23 4Q23 1Q24 2Q24 Interest-bearing demand deposits 1.68% 2.18% 1.71% 2.03% 2.18% Savings accounts 0.86% 0.85% 0.85% 0.86% 0.84% Money market accounts 3.88% 4.04% 4.12% 4.18% 4.23% BaaS – brokered deposits 4.03% 4.33% 4.38% 4.39% 4.37% Certificates of deposits 3.84% 4.37% 4.55% 4.70% 4.78% Brokered deposits 4.47% 4.74% 4.70% 4.79% 4.78% Total interest-bearing deposits 3.75% 4.09% 4.14% 4.25% 4.29% $4,273.8$4,067.0

 
Net Interest Income and Net Interest Margin  Net interest income on a GAAP and FTE basis were up 2.9% and 2.6%, respectively, from 1Q24  Improved loan mix and higher earning asset yields were partially offset by slightly higher funding costs  Growth in net interest income and NIM impacted by loan payoffs and timing of new loan production  Pace of increase in deposit costs decelerated further from 1Q24 7 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix Yield on Loans and Cost of Interest-Bearing Deposits Net Interest Margin – GAAP and FTE1 5.15% 5.24% 5.50% 5.73% 5.83% 3.75% 4.09% 4.14% 4.25% 4.29% 2Q23 3Q23 4Q23 1Q24 2Q24 Yield on loans Cost of interest-bearing deposits $18.1 $17.4 $19.8 $20.7 $21.3 $19.5 $18.6 $21.0 $21.9 $22.5 2Q23 3Q23 4Q23 1Q24 2Q24 GAAP FTE 1.53% 1.39% 1.58% 1.66% 1.67% 1.64% 1.49% 1.68% 1.75% 1.76% 2Q23 3Q23 4Q23 1Q24 2Q24 GAAP FTE Net Interest Income – GAAP and FTE1 Dollars in millions

 
Net Interest Margin Drivers 8 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix Net Interest Margin – FTE1 Linked-Quarter Change Monthly Rate Paid on Int. Bearing Deposits vs. Fed Funds  Linked-quarter FTE NIM1 increased 1 bp due to higher earning asset yields, offset by slightly higher deposit costs – Weighted average yield of 8.88% on funded portfolio originations during 2Q24 – Securities yields increased 21 bps from 1Q24 while other earning asset yields decreased 11 bps  Deposit costs increased 4 bps from 1Q24 to 4.29% for 2Q24 – Deposit costs impacted by higher average balances of CDs and growth in fintech partner deposits – Weighted average cost of new CDs in 2Q24 was 4.97% vs cost of maturing CDs of 4.88% – Cost of maturing CDs in 3Q24 is 5.05% and in 4Q24 is 5.03% +3 bps -11 bps +4 bps 1.75% 1.76% +5 bps 3.98% 4.13% 4.16% 4.17% 4.09% 4.17% 4.22% 4.24% 4.29% 4.28% 4.31% 4.28% 5.33% 5.33% 5.33% 5.33% 5.33% 5.33% 5.33% 5.33% 5.33% 5.33% 5.33% 5.33% Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Int. Bearing Deposits Fed Funds Effective

 
Noninterest Income 9 Dollars in millions Noninterest Income by Type Dollars in millions Noninterest Income by Quarter  Noninterest income of $11.0 million, up 32.2%, from $8.3 million in 1Q24  Gain on sale of loans of $8.3 million, up 26.9%, from $6.5 million in 1Q24 – SBA loan sale volume up 18.9% from 1Q24 – Net gain on sale premiums increased 6 bps from 1Q24  Increase of $1.2 million in other income driven by distributions from fund investments $0.2 $0.6 $8.3 $1.9 Service charges and fees Net loan servicing revenue Gain on sale of loans Other $5.9 $7.4 $7.4 $8.3 $11.0 2Q23 3Q23 4Q23 1Q24 2Q24

 
Noninterest Expense 10 1 2Q24 noninterest expense includes $0.5 million of IT termination fees and $0.1 million of anniversary expenses; see Reconciliation of Non-GAAP Financial Measures in the Appendix Dollars in millions Noninterest Expense by Quarter Noninterest Expense to Average Assets 1.73%1.71% 1.55% 1.52% 1.53% 1.54% 1.62% 1.68% 2Q23 3Q23 4Q23 1Q24 2Q24 Core Non-core items 1 1.64% $18.7 $19.8 $20.1 $21.0 $22.3 2Q23 3Q23 4Q23 1Q24 2Q24 Core Non-core items 1  Noninterest expense of $22.3 million, up 6.2%, from $21.0 million in 1Q24  Excluding almost $0.6 million of non-recurring items1, noninterest expense totaled $21.8 million, up 3.5% from 1Q24  Excluding the nonrecurring items, the increase was driven by higher salaries and employee benefits, consulting and professionals fees and loan expenses $21.8

 
Asset Quality  Allowance for credit losses to total loans of 1.10% in 2Q24, up 5 bps from 1Q24  Quarterly provision for credit losses was $4.0 million, compared to $2.4 million in 1Q24  Net charge-offs to average loans of 0.14%, compared to 0.05% in 1Q24  Nonperforming loans to total loans remained stable with 1Q24 at 0.33%  Delinquencies 30 days or more past due of 0.56%, compared to 0.53% in 1Q24 11 0.17% 0.16% 0.26% 0.33% 0.33% 2Q23 3Q23 4Q23 1Q24 2Q24 0.13% 0.12% 0.20% 0.25% 0.24% 2Q23 3Q23 4Q23 1Q24 2Q24 NPLs to Total Loans NPAs to Total Assets Net Charge-Offs to Avg. Loans 0.17% 0.16% 0.12% 0.05% 0.14% 2Q23 3Q23 4Q23 1Q24 2Q24

 
Capital  Tangible common equity to tangible assets increased 9 bps from 1Q24 to 6.88%1  Tangible book value per share of $42.371, up 1.3% from 1Q24  CET1 and TRBC ratios at both the Company and the Bank, adjusted for all unrealized securities losses, remain well above regulatory minimum requirements  Total after-tax unrealized securities losses represent 13.0% of tangible equity 12 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix 2 Regulatory capital ratios are preliminary pending filing of the Company’s and Bank’s regulatory reports Company Bank Total shareholders' equity to assets 6.96% 8.45% Tangible common equity to tangible assets1 6.88% 8.37% Tier 1 leverage ratio 7.24% 8.77% Common equity tier 1 capital ratio 9.47% 11.47% Tier 1 capital ratio 9.47% 11.47% Total risk-based capital ratio 13.13% 12.58% $27.93 $30.82 $33.29 $38.51 $39.74 $41.43 $42.37 2018 2019 2020 2021 2022 2023 2Q24 Tangible Book Value Per Share1 Regulatory Capital Ratios – June 30, 20242

 
Small Business Lending  $270.1 million of retained balances as of June 30, 2024  Nationwide platform providing growth capital to entrepreneurs and small business owners  6th largest Small Business Administration 7(a) lender for the SBA’s year-to-date 2024 fiscal year 1313 Managed SBA 7(a) Loans Portfolio Mix by State Portfolio Mix by Major Industry 17% 12% 11% 11%8% 6% 35% TX FL MI CA IN IL Other 19% 18% 14%14% 9% 26% Services Retail Trade Construction Accommodation and Food Services Manufacturing Other

 
Construction and Investor Commercial Real Estate  $517.3 million of combined balances as of June 30, 2024  Average current loan balance of $8.2 million for investor CRE  Average commitment sizes for construction – Commercial construction/development: $25.1 million – Residential construction/development: $2.1 million 14 Portfolio by Loan Type Portfolio Mix by State Portfolio Mix by Major Industry  2Q24 unfunded commitment balances – Commercial construction/development: $490.4 million – Residential construction/development: $38.3 million  Minimal office exposure; 1.6% of combined balances consisting of suburban and medical office space 58%35% 7% Commercial Construction/ Development Investor Commercial Real Estate Residential Construction/ Development 44% 27% 18% 3% 2% 2% 2%1% 1% Multifamily/Mixed Use Industrial Warehouse Hospitality Residential Land Development Residential Construction Commercial Land Suburban & Medical Office Retail Other 62%14% 13% 5%3% 3% IN AZ CA FL KY Other

 
Franchise Finance  $551.1 million of balances as of June 30, 2024  Focused on providing growth financing to franchisees in a variety of industry segments  Strong historical credit performance to date  Average loan size of $832,000 15 Portfolio Mix by Borrower Use Portfolio Mix by State Portfolio Mix by Brand 131 22% 15% 15%13% 10% 5% 20% Limited-Service Restaurants Indoor Recreation Beauty Salons Snacks and Nonalcoholic Beverages Fitness and Recreational Sports Centers Other Personal Care Services Other 14% 12% 6% 5% 5% 4% 3% 51% TX CA FL PA MI GA NC Other 9% 8% 7% 6% 5% 4% 61% Urban Air Adventure Park Scooter's Coffee My Salon Suite Goldfish Swim School Restore Hyper Wellness Crumbl Cookies Other

 
Single Tenant Lease Financing  $927.5 million of balances as of June 30, 2024  Long-term financing of single tenant properties occupied by historically strong national and regional tenants  Weighted-average portfolio LTV of 46%  Average loan size of $1.3 million 16 Portfolio Mix by Major Vertical Portfolio Mix by Major Tenant Portfolio Mix by Geography  Strong historical credit performance  No delinquencies in this portfolio  Minimal office exposure; 1.3% of loan balances consisting of medical office space 26% 23% 17% 13% 6% 6% 4% 5% Quick Service Restaurants Auto Parts/ Repair/Car Wash Full Service Restaurants Convenience/Fuel Pharmacies Dollar Stores Specialty Retailer Other 6% 6% 5% 5% 4% 4% 3% 3% 3% 2% 59% Tidal Wave Burger King Wendy's Caliber Collision Dollar General Red Lobster ICWG Bob Evans Walgreens CVS Other 10% 24% 22% 39% 5%

 
5% 9% 12% 6% 18%9% 8% 2%1% 30% AAA/Aaa AA+/Aa1 AA/Aa2 AA-/Aa3 A+/A1 A/A2 A-/A3 BBB+/Baa1 BBB/Baa2 Non-Rated 33% 14% 14% 10% 6% 6% 5% 4% 3% 2% 3% General Obligation Essential use equipment loans Lease rental revenue Water & sewer revenue Private Higher Education Tax Incremental Financing (TIF) districts Short term cash flow financing (BAN) Public higher education facilities Sales tax, food and beverage tax, hotel tax Income tax supported loans Others 60% 6% 5% 4% 4% 4% 3% 2% 12% IN OK IA OH MO MI GA WA Other Public Finance  $486.2 million of balances as of June 30, 2024  Provides a range of credit solutions for government and not-for-profit entities  Borrowers’ needs include short-term financing, debt refinancing, infrastructure improvements, economic development and equipment financing 17  No delinquencies or losses since inception Portfolio Mix by Repayment Source Borrower Mix by Credit Rating Portfolio Mix by State

 
Healthcare Finance  $202.1 million of balances as of June 30, 2024  Average loan size of $430,000  Strong historical credit performance to date  No delinquencies in this portfolio 18 Portfolio Mix by Borrower Use Portfolio Mix by Borrower Portfolio Mix by State 18 87% 9% 4% Dentists Veterinarians Other 30% 12% 6% 4% 4% 4% 3% 37% CA TX FL NY AZ WA IL Other 76% 18% 5% 1% Practice Refi or Acquisition Owner Occupied CRE Project Equipment and Other

 
C&I and Owner-Occupied Commercial Real Estate  $173.7 million of combined balances as of June 30, 2024  Current C&I LOC utilization of 25%  Average loan sizes  C&I: $553,000  Owner-occupied CRE: $854,000 19 Portfolio by Loan Type Portfolio Mix by State Portfolio Mix by Major Industry 19 50% 34% 16% C&I - Term Loans Owner Occupied CRE C&I - Lines of Credit 37% 22% 9% 9% 5% 18% IN AZ CA IL FL Other 42% 18% 13% 12% 8% 7% Other Services Manufacturing Construction Real Estate and Rental and Leasing Health Care and Social Assistance  Minimal office exposure; 1.9% of combined loan balances consisting of suburban office space

 
Residential Mortgage  $404.0 million of balances as of June 30, 2024 (includes home equity balances)  Historically direct-to-consumer originations centrally located at corporate headquarters  Focused on high quality borrowers – Average loan size of $208,000 – Average credit score at origination of 742 – Average LTV at origination of 80%  Strong historical credit performance 20 Concentration by State Concentration by Loan TypeNational Portfolio with Midwest Concentration 15% 3% 73% 4% 5% 20 71% 12% 2% 2% 2% 11% Indiana California Florida New York Texas All other states 94% 4% 1% 1% Single Family Residential Home Equity – LOC SFR Construction to Permanent Home Equity – Closed End

 
24% 21% 17% 28% 10% Specialty Consumer  $396.5 million of balances as of June 30, 2024  Direct-to-consumer and nationwide dealer network originations  Focused on high quality borrowers – Average credit score at origination of 778 – Average loan size of $27,000  Strong historical credit performance Concentration by State Concentration by Loan TypeGeographically Diverse Portfolio 211 14% 10% 6% 4% 4% 62% Texas California Florida North Carolina Colorado All other states 51% 38% 11% Trailers Recreational Vehicles Other Consumer

 
22 Appendix

 
Loan Portfolio Composition 23 1 Includes carrying value adjustments of $25.6 million, $26.9 million, $27.8 million, $32.5 million and $37.5 million associated with public finance loans as of June 30, 2024, March 31, 2024, December 31, 2023, December 31, 2022 and December 31, 2021, respectively. Dollars in thousands 2021 2022 2023 1Q24 2Q24 Commercial loans Commercial and industrial 96,008$ 126,108$ 129,349$ 133,897$ 115,585$ Owner-occupied commercial real estate 66,732 61,836 57,286 57,787 58,089 Investor commercial real estate 28,019 93,121 132,077 128,276 188,409 Construction 136,619 181,966 261,750 325,597 328,922 Single tenant lease financing 865,854 939,240 936,616 941,597 927,462 Public finance 592,665 621,032 521,764 498,262 486,200 Healthcare finance 387,852 272,461 222,793 213,332 202,079 Small business lending 108,666 123,750 218,506 239,263 270,129 Franchise finance 81,448 299,835 525,783 543,122 551,133 Total commercial loans 2,363,863 2,719,349 3,005,924 3,081,133 3,128,008 Consumer loans Residential mortgage 186,770 383,948 395,648 390,009 382,549 Home equity 17,665 24,712 23,669 22,753 21,405 Trailers 146,267 167,326 188,763 191,353 197,738 Recreational vehicles 90,654 121,808 145,558 145,475 150,151 Other consumer loans 28,557 35,464 43,293 43,847 48,638 Total consumer loans 469,913 733,258 796,931 793,437 800,481 Net def. loan fees, prem., disc. and other 1 53,886 46,794 37,365 35,234 32,657 Total loans 2,887,662$ 3,499,401$ 3,840,220$ 3,909,804$ 3,961,146$

 
Reconciliation of Non-GAAP Financial Measures 24 Dollars in thousands, except for per share data 2018 2019 2020 2021 2022 2023 2Q24 Total equity - GAAP $288,735 $304,913 $330,944 $380,338 $364,974 $362,795 $371,953 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) Tangible common equity $284,048 $300,226 $326,257 $375,651 $360,287 $358,108 $367,266 Common shares outstanding 10,170,778 9,741,800 9,800,569 9,754,455 9,065,883 8,644,451 8,667,894 Book value per common share $28.39 $31.30 $33.77 $38.99 $40.26 $41.97 $42.91 Effect of goodwill (0.46) (0.48) (0.48) (0.48) (0.52) (0.54) (0.54) Tangible book value per common share $27.93 $30.82 $33.29 $38.51 $39.74 $41.43 $42.37

 
Reconciliation of Non-GAAP Financial Measures 25 1 Assuming a 21% tax rate Dollars in thousands, except for per share data 2Q23 3Q23 4Q23 1Q24 2Q24 Total equity - GAAP $354,332 $347,744 $362,795 $366,739 $371,953 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) Tangible common equity $349,645 $343,057 $358,108 $362,052 $367,266 Total assets - GAAP $4,947,049 $5,169,023 $5,167,572 $5,340,667 $5,343,302 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) Tangible assets $4,942,362 $5,164,336 $5,162,885 $5,335,980 $5,338,615 Common shares outstanding 8,774,507 8,669,673 8,644,451 8,655,854 8,667,894 Book value per common share $40.38 $40.11 $41.97 $42.37 $42.91 Effect of goodwill (0.53) (0.54) (0.54) (0.54) (0.54) Tangible book value per common share $39.85 $39.57 $41.43 $41.83 $42.37 Total shareholders' equity to assets 7.16% 6.73% 7.02% 6.87% 6.96% Effect of goodwill (0.09%) (0.09%) (0.08%) (0.08%) (0.08%) Tangible common equity to tangible assets 7.07% 6.64% 6.94% 6.79% 6.88% Total interest income $58,122 $63,015 $66,272 $68,165 $70,961 Adjustments: Fully-taxable equivalent adjustments 1 1,347 1,265 1,238 1,190 1,175 Total interest income - FTE $59,469 $64,280 $67,510 $69,355 $72,136 Net interest income $18,145 $17,378 $19,807 $20,734 $21,327 Adjustments: Fully-taxable equivalent adjustments 1 1,347 1,265 1,238 1,190 1,175 Net interest income - FTE $19,492 $18,643 $21,045 $21,924 $22,502 Net interest margin 1.53% 1.39% 1.58% 1.66% 1.67% Adjustments: Effect of fully-taxable equivalent adjustments 1 0.11% 0.10% 0.10% 0.09% 0.09% Net interest margin - FTE 1.64% 1.49% 1.68% 1.75% 1.76%

 
Reconciliation of Non-GAAP Financial Measures 26 Dollars in thousands, except for per share data 2Q23 3Q23 4Q23 1Q24 2Q24 Noninterest expense $18,670 $19,756 $20,056 $21,023 $22,336 Adjustments: IT termination fees - - - - (452) Anniversary expenses - - - - (120) Adjusted noninterest expense $18,670 $19,756 $20,056 $21,023 $21,764 Noninterest expense to average assets 1.52% 1.53% 1.54% 1.62% 1.68% Effect of IT termination fees 0.00% 0.00% 0.00% 0.00% (0.03%) Effect of anniversary expenses 0.00% 0.00% 0.00% 0.00% (0.01%) Adjusted noninterest expense to average assets 1.52% 1.53% 1.54% 1.62% 1.64% Income before income taxes - GAAP 3,648$ 3,083$ 3,558$ 5,610$ 5,993$ Adjustments: IT termination fees - - - - 452 Anniversary expenses - - - - 120 Adjusted income before income taxes $3,648 $3,083 $3,558 $5,610 $6,565 Income tax provision (benefit) - GAAP (234)$ (326)$ (585)$ 429$ 218$ Adjustments:1 IT termination fees - - - - 95 Anniversary expenses - - - - 25 Adjusted income tax provision (benefit) (234)$ (326)$ (585)$ 429$ 338$ 1 Assuming a 21% tax rate

 
Reconciliation of Non-GAAP Financial Measures 27 1 Assuming a 21% tax rate Dollars in thousands, except for per share data 2Q23 3Q23 4Q23 1Q24 2Q24 Net income - GAAP 3,882$ 3,409$ 4,143$ 5,181$ 5,775$ Adjustments: IT termination fees - - - - 357 Anniversary expenses - - - - 95 Adjusted net income $3,882 $3,409 $4,143 $5,181 $6,227 Diluted average common shares outstanding 8,908,180 8,767,217 8,720,078 8,750,297 8,656,215 Diluted earnings per share - GAAP 0.44$ 0.39$ 0.48$ 0.59$ 0.67$ Adjustments: Effect of IT termination fees - - - - 0.04 Effect of anniversary expenses - - - - 0.01 Adjusted diluted earnings per share $0.44 $0.39 $0.48 $0.59 $0.72 Return on average assets 0.32% 0.26% 0.32% 0.40% 0.44% Effect of IT termination fees 0.00% 0.00% 0.00% 0.00% 0.03% Effect of anniversary expenses 0.00% 0.00% 0.00% 0.00% 0.01% Adjusted return on average assets 0.32% 0.26% 0.32% 0.40% 0.48% Return on average shareholders' equity 4.35% 3.79% 4.66% 5.64% 6.28% Effect of IT termination fees 0.00% 0.00% 0.00% 0.00% 0.39% Effect of anniversary expenses 0.00% 0.00% 0.00% 0.00% 0.10% Adjusted return on average shareholders' equity 4.35% 3.79% 4.66% 5.64% 6.77% Return on average tangible common equity 4.40% 3.84% 4.72% 5.71% 6.36% Effect of IT termination fees 0.00% 0.00% 0.00% 0.00% 0.39% Effect of anniversary expenses 0.00% 0.00% 0.00% 0.00% 0.10% Adjusted return on average tangible common equity 4.40% 3.84% 4.72% 5.71% 6.85%

 
Reconciliation of Non-GAAP Financial Measures 28 Dollars in thousands 2Q24 Tangible common equity $367,266 Adjustments: Accumulated other comprehensive loss 30,587 Adjusted tangible common equity $397,853 Tangible assets $5,338,615 Adjustments: Cash in excess of $300 million (96,786) Adjusted tangible assets $5,241,829 Adjusted tangible common equity $397,853 Adjusted tangible assets $5,241,829 Adjusted tangible common equity to adjusted tangible assets 7.59%