First Internet Bancorp Reports Fourth Quarter and Full Year 2019 Results

Highlights for the fourth quarter and full year 2019 include:


▪	Record annual net income and diluted earnings per share of $25.2 million and $2.51, respectively


▪	Record quarterly net income of $7.1 million, compared to $6.3 million for the third quarter of 2019 and $3.6 million for the fourth quarter of 2018


▪	Record quarterly diluted earnings per share of $0.72, compared to $0.63 diluted earnings per share for the third quarter of 2019 and $0.35 diluted earnings per share for the fourth quarter of 2018


▪	Total quarterly revenue of $20.8 million, consistent with the third quarter of 2019 and an 18.9% increase from the fourth quarter of 2018

Fishers, Indiana, January 22, 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 fourth quarter and full year ended December 31, 2019. Net income for the fourth quarter of 2019 was a record $7.1 million, or $0.72 diluted earnings per share. This compares to net income of $6.3 million, or $0.63 diluted earnings per share, for the third quarter of 2019, and net income of $3.6 million, or $0.35 diluted earnings per share, for the fourth quarter of 2018. The fourth quarter of 2018 results included a $2.4 million pre-tax write-down of commercial other real estate owned (“OREO”). Excluding this charge, adjusted net income for the quarter was $5.5 million, or $0.53 adjusted diluted earnings per share.

For the twelve month period ended December 31, 2019, net income was a record $25.2 million and diluted earnings per share were a record $2.51 compared to net income of $21.9 million and diluted earnings per share of $2.30 for the twelve month period ended December 31, 2018. Excluding the OREO write-down described above, adjusted net income for the full year 2018 was $23.8 million, or $2.50 adjusted diluted earnings per share.

“First Internet Bancorp produced strong 2019 results, highlighted by record annual net income that was driven by full-year revenue growth of 12%, well-managed expenses and disciplined balance sheet management,” said David Becker, Chairman, President and Chief Executive Officer. “We generated strong production in both commercial and consumer loans, particularly in a number of our specialty lending areas, including single-tenant lease financing, healthcare finance and horse trailer and recreational vehicle lending. Additionally, we capitalized on the lower interest rate environment to drive strong origination growth in our direct-to-consumer mortgage business.

“Looking to 2020, we continue to see opportunities for growth within our collection of lending franchises and to further implement strategies to diversify our revenue and enhance margins in a capital efficient manner,” Becker added. “In 2019, we made significant progress with our expansion into small business banking, capitalizing on attractive opportunities on both sides of our balance sheet. During the fourth quarter, we completed our acquisition of the small business lending division of First Colorado National Bank. This transaction, combined with the experienced professionals we brought on board during the year, positions us to accelerate our efforts to build a nationwide platform that offers a full suite of services to small business entrepreneurs.”

Mr. Becker concluded, “As always, I would like to thank the entire First Internet team for their very hard work to deliver record revenue and earnings performance again in 2019. Their dedication and efforts are the key to our ongoing growth and success.”

Net Interest Income and Net Interest Margin

Net interest income for the fourth quarter of 2019 was $15.4 million, compared to $15.2 million for the third quarter of 2019. On a fully-taxable equivalent basis, net interest income for the fourth quarter was $16.9 million, compared to $16.8 million for the third quarter. Net interest income on both a reported and fully-taxable equivalent basis, was consistent with the fourth quarter of 2018.

Total interest income for the fourth quarter of 2019 was $37.9 million, an increase of 0.5%, compared to the third quarter of 2019, and an increase of 18.9% compared to the fourth quarter of 2018. On a fully-taxable equivalent basis, total interest income for the fourth quarter was $39.4 million, an increase of 0.4% compared to the third quarter, and an increase of 18.4% compared to the fourth quarter of 2018. The slight increase in total interest income compared to the third quarter of 2019 was driven primarily by a $98.0 million, or 2.5%, increase in average interest-earning assets, partially offset by a 7 basis point (“bp”) decrease in the yield on those assets. The yield on interest-earning assets for the fourth quarter of 2019 declined to 3.73% from 3.80% in the prior quarter due primarily to the decline in short term rates during the quarter following Federal Reserve rate cuts in September and October, which negatively impacted the yields earned on cash balances, securities and other earning assets. Additionally, cash balances remained elevated as time deposit renewal rates exceeded expectations, which also negatively affected the yield on earning assets. Partially offsetting this was a 2 bp increase in the yield earned on the loan portfolio, including loans held for sale, which benefitted from the acquisition of Small Business Administration (“SBA”) loans and strong healthcare finance production during the quarter.

Total interest expense for the fourth quarter of 2019 was $22.5 million, relatively consistent with the third quarter of 2019, and an increase of 37.0% compared to the fourth quarter of 2018. During the fourth quarter, average interest-bearing deposit balances increased by $79.4 million, compared to the third quarter, while the cost of funds related to those deposits declined 5 bps. The increase in average interest-bearing deposit balances was due primarily to a $113.8 million, or 17.8%, increase in average money market account balances but was partially offset by a $32.1 million, or 1.4%, decrease in the average balance of certificates and brokered deposits. The decrease in deposit costs reflects a decrease in the rates paid on money market accounts and certificates of deposit (“CDs”) as well as a shift in the deposit mix from CDs to money market accounts. During the fourth quarter, the cost of money market deposits decreased by 10 bps and the cost of certificates and brokered deposits decreased 3 bps as rates paid on new CD production and renewals were below the rates paid on maturing CDs.

Net interest margin (“NIM”) was 1.51% for the fourth quarter of 2019, compared to 1.54% for the third quarter of 2019 and 1.89% for the fourth quarter of 2018. On a fully-taxable equivalent basis, NIM decreased 3 basis points to 1.67% for the fourth quarter of 2019, from 1.70% for the third quarter of 2019, and was down from 2.07% for the fourth quarter of 2018. Compared to the linked quarter, deposit costs had a positive impact of 4 bps on NIM while loan yields provided a benefit of 2 bps. However, these benefits were offset by the lower yields earned on elevated cash balances, which had a negative impact of 7 bps, and on other interest-earning assets, which had a negative impact of 2 bps.

Noninterest Income

Noninterest income for the fourth quarter of 2019 was $5.4 million, down from $5.6 million for the third quarter of 2019, and up from $2.0 million for the fourth quarter of 2018. Compared to the linked quarter, a decline in mortgage banking revenue was essentially offset by higher gain on sale of loans and loan servicing revenue. Mortgage banking revenue decreased $1.4 million, or 31.4%, as mandatory pipeline volumes and margins declined due to seasonal factors following an extraordinarily strong third quarter. The increase of $1.2 million in gain on sale of loans was driven by sales of $53.7 million of single tenant lease financing and public finance loans and the Company’s first sales of SBA 7(a) guaranteed loans, which included $9.2 million of balances. The Company also began earning loan servicing revenue from the acquired SBA servicing portfolio, recognizing $0.2 million during the fourth quarter.

Noninterest Expense

Noninterest expense for the fourth quarter of 2019 was $12.6 million, compared to $11.2 million for the third quarter of 2019 and $12.7 million for the fourth quarter of 2018. The increase from the third quarter was due primarily to a $0.6 million increase in deposit insurance premium, a $0.5 million increase in consulting and professional fees and a $0.3 million increase in salaries and employee benefits. Deposit insurance premium expense resumed in the fourth quarter after not incurring any expense in the third quarter of 2019 as a result of the small bank assessment credit applied by the Federal Deposit Insurance Corporation. The increase in consulting and professional fees was due to higher recruiting fees and third party loan review fees while salaries and employee benefits expense increased due to the headcount growth in the Company’s SBA lending business.

Income Taxes

The Company reported an income tax expense of $0.6 million for the fourth quarter of 2019 and an effective tax rate of 7.8%, compared to income tax expense of $0.4 million and an effective tax rate of 6.6% for the third quarter of 2019 and an income tax benefit of $0.3 million for the fourth quarter of 2018. The income tax benefit reported in the fourth quarter of 2018 primarily related to the write-down of the OREO property and the continued growth in the public finance portfolio, which increased the proportion of tax-exempt income relative to overall total pre-tax income. When excluding the income tax benefit related to the OREO write-down, the Company’s adjusted effective income tax rate for the fourth quarter of 2018 was 3.1%.

Loans and Credit Quality

Total loans as of December 31, 2019 were $3.0 billion, an increase of $82.3 million, or 2.9%, compared to September 30, 2019 and an increase of $247.3 million, or 9.1%, compared to December 31, 2018. Total commercial loan balances were $2.3 billion as of December 31, 2019, an increase of $93.5 million, or 4.3%, compared to September 30, 2019 and an increase of $296.9 million, or 14.9%, compared to December 31, 2018. Compared to the linked quarter, the growth in commercial loan balances was driven largely by production in healthcare finance and the acquisition of the SBA loan portfolio. These increases were partially offset by the sale of $53.7 million of single tenant lease financing and public finance loans discussed above.

Total consumer loan balances were $633.5 million as of December 31, 2019, a decrease of $8.6 million, or 1.3%, compared to September 30, 2019 and a decrease of $74.9 million, or 10.6%, compared to December 31, 2018. The decline in consumer loan balances from September 30, 2019 was driven primarily by increased early payoffs on portfolio residential mortgage loans.

Total delinquencies 30 days or more past due increased to 0.24% of total loans as of December 31, 2019, up from 0.13% as of September 30, 2019 and 0.15% as of December 31, 2018. The increase in delinquencies compared to the linked and prior year quarters was due primarily to the single tenant lease financing relationship that was placed on nonaccrual status in the third quarter of 2019 becoming past due. Overall credit quality remained solid as nonperforming loans to total loans remained low at 0.23% as of December 31, 2019, compared to 0.20% at September 30, 2019 and 0.03% as of December 31, 2018.

The allowance for loan losses as a percentage of total loans was 0.74% as of December 31, 2019, compared to 0.75% as of September 30, 2019 and 0.66% as of December 31, 2018. The slight decline in the coverage ratio compared to the linked quarter was due primarily to lower specific reserves in the commercial and industrial portfolio.

Net charge-offs of $0.3 million were recognized during the fourth quarter of 2019, resulting in net charge-offs to average loans of 0.04%, compared to 0.15% for the third quarter and 0.05% for the fourth quarter of 2018. The provision for loan losses in the fourth quarter was $0.5 million, compared to $2.8 million for the third quarter and $1.5 million for the fourth quarter of 2018. The third quarter’s results included a specific reserve of $1.7 million recognized on the single tenant lease financing relationship mentioned above and a $0.8 million commercial loan charge-off. The provision for the fourth quarter was driven primarily by growth in the healthcare finance portfolio and net charge-offs, partially offset by the loan sale activity.

Capital

As of December 31, 2019, total shareholders’ equity was $304.9 million, an increase of $9.8 million, or 3.3%, compared to September 30, 2019, primarily due to the net income earned during the quarter and a decrease in accumulated other comprehensive loss. Book value per common share increased to $31.30 as of December 30, 2019, up from $30.30 as of September 30, 2019 and $28.39 as of December 31, 2018. Tangible book value per share increased to $30.82, up from $29.82 and $27.93, 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 December 31, 2019.



	As of December 31, 2019
	Company		Bank

Total shareholders' equity to assets	7.44	%	8.11	%
Tangible common equity to tangible assets ¹	7.33	%	8.01	%
Tier 1 leverage ratio ²	7.64	%	8.32	%
Common equity tier 1 capital ratio ²	10.84	%	11.80	%
Tier 1 capital ratio ²	10.84	%	11.80	%
Total risk-based capital ratio ²	14.00	%	12.55	%

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, January 23, 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 February 23, 2020 by dialing (877) 344-7529; passcode: 10138147.

Additionally, interested parties can listen to a live webcast of the call on 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 $4.1 billion as of December 31, 2019. 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 in select geographies. 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, timing of pending acquisitions, 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,” “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. 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; failure to close any pending acquisitions; failure to satisfy or waive closing condition; 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 adjusted net income, adjusted diluted earnings per share, tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, total interest income - FTE, net interest income - FTE, net interest margin - FTE, adjusted income before income taxes, adjusted income tax provision, 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 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
Investor Relations		Executive Vice President & Chief Operating Officer
(317) 428-4628		(317) 532-7906
[email protected]		[email protected]



First Internet Bancorp
Summary Financial Information (unaudited)
Amounts in thousands, except per share data
	Three Months Ended									Twelve Months Ended
	December 31, 2019			September 30, 2019			December 31, 2018			December 31, 2019			December 31, 2018

Net income	$	7,096		$	6,326		$	3,576		$	25,239		$	21,900

Per share and share information
Earnings per share - basic	$	0.72		$	0.63		$	0.35		$	2.51		$	2.31
Earnings per share - diluted	0.72			0.63			0.35			2.51			2.30
Dividends declared per share	0.06			0.06			0.06			0.24			0.24
Book value per common share	31.30			30.30			28.39			31.30			28.39
Tangible book value per common share ¹	30.82			29.82			27.93			30.82			27.93
Common shares outstanding	9,741,800			9,741,800			10,170,778			9,741,800			10,170,778
Average common shares outstanding:
Basic	9,825,784			9,979,603			10,263,086			10,041,581			9,490,506
Diluted	9,843,829			9,980,612			10,275,040			10,044,483			9,508,653
Performance ratios
Return on average assets	0.69		%	0.63		%	0.43		%	0.65		%	0.72		%
Return on average shareholders' equity	9.46		%	8.40		%	4.89		%	8.52		%	8.44		%
Return on average tangible common equity ¹	9.61		%	8.53		%	4.98		%	8.65		%	8.60		%
Net interest margin	1.51		%	1.54		%	1.89		%	1.65		%	2.09		%
Net interest margin - FTE ^1,2	1.67		%	1.70		%	2.07		%	1.82		%	2.25		%
Capital ratios³
Total shareholders' equity to assets	7.44		%	7.21		%	8.15		%	7.44		%	8.15		%
Tangible common equity to tangible assets ¹	7.33		%	7.10		%	8.03		%	7.33		%	8.03		%
Tier 1 leverage ratio	7.64		%	7.66		%	9.00		%	7.64		%	9.00		%
Common equity tier 1 capital ratio	10.84		%	10.93		%	12.39		%	10.84		%	12.39		%
Tier 1 capital ratio	10.84		%	10.93		%	12.39		%	10.84		%	12.39		%
Total risk-based capital ratio	14.00		%	14.17		%	14.53		%	14.00		%	14.53		%
Asset quality
Nonperforming loans	$	6,732		$	5,783		$	889		$	6,732		$	889
Nonperforming assets	8,872			8,497			3,508			8,872			3,508
Nonperforming loans to loans	0.23		%	0.20		%	0.03		%	0.23		%	0.03		%
Nonperforming assets to total assets	0.22		%	0.21		%	0.10		%	0.22		%	0.10		%
Allowance for loan losses to:
Loans	0.74		%	0.75		%	0.66		%	0.74		%	0.66		%
Nonperforming loans	324.4		%	374.9		%	2,013.1		%	324.4		%	2,013.1		%
Net charge-offs to average loans	0.04		%	0.15		%	0.05		%	0.07		%	0.04		%
Average balance sheet information
Loans	$	2,936,144		$	2,865,258		$	2,577,584		$	2,863,250		$	2,364,336
Total securities	597,049			561,780			494,256			560,317			486,030
Other earning assets	452,945			469,454			148,311			355,412			116,074
Total interest-earning assets	4,031,327			3,933,315			3,236,144			3,809,903			2,984,608
Total assets	4,108,216			4,015,433			3,320,850			3,890,708			3,055,224
Noninterest-bearing deposits	49,570			43,972			48,779			44,682			45,562
Interest-bearing deposits	3,110,501			3,031,095			2,472,443			2,938,622			2,272,037
Total deposits	3,160,071			3,075,067			2,521,222			2,983,304			2,317,599
Shareholders' equity	297,623			298,782			289,844			296,382			259,416

¹ Refer to "Non-GAAP Financial Measures" section above and "Reconciliation of Non-GAAP Financial Measures" below

² On a fully-taxable equivalent ("FTE") basis assuming a 21% tax rate

³ Regulatory capital ratios are preliminary pending filing of the Company's regulatory reports



First Internet Bancorp
Condensed Consolidated Balance Sheets (unaudited, except for December 31, 2018)
Amounts in thousands
	December 31, 2019			September 30, 2019			December 31, 2018
Assets
Cash and due from banks	$	5,061		$	6,283		$	7,080
Interest-bearing deposits	322,300			410,119			181,632
Securities available-for-sale, at fair value	540,852			544,742			481,345
Securities held-to-maturity, at amortized cost	61,878			46,807			22,750
Loans held-for-sale	56,097			41,119			18,328
Loans	2,963,547			2,881,272			2,716,228
Allowance for loan losses	(21,840		)	(21,683		)	(17,896		)
Net loans	2,941,707			2,859,589			2,698,332
Accrued interest receivable	18,607			16,652			16,822
Federal Home Loan Bank of Indianapolis stock	25,650			25,650			23,625
Cash surrender value of bank-owned life insurance	37,002			36,764			36,059
Premises and equipment, net	14,630			14,512			10,697
Goodwill	4,687			4,687			4,687
Servicing asset	2,481			—			—
Other real estate owned	2,065			2,619			2,619
Accrued income and other assets	67,066			85,948			37,716
Total assets	$	4,100,083		$	4,095,491		$	3,541,692

Liabilities
Noninterest-bearing deposits	$	57,115		$	50,560		$	43,301
Interest-bearing deposits	3,096,848			3,097,682			2,628,050
Total deposits	3,153,963			3,148,242			2,671,351
Advances from Federal Home Loan Bank	514,910			514,908			525,153
Subordinated debt	69,528			69,452			33,875
Accrued interest payable	3,767			2,635			1,108
Accrued expenses and other liabilities	53,002			65,114			21,470
Total liabilities	3,795,170			3,800,351			3,252,957
Shareholders' equity
Voting common stock	219,423			219,013			227,587
Retained earnings	99,681			93,182			77,689
Accumulated other comprehensive loss	(14,191		)	(17,055		)	(16,541		)
Total shareholders' equity	304,913			295,140			288,735
Total liabilities and shareholders' equity	$	4,100,083		$	4,095,491		$	3,541,692



First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited, except for the twelve months ended December 31, 2018)
Amounts in thousands, except per share data
	Three Months Ended							Twelve Months Ended
	December 31, 2019		September 30, 2019		December 31, 2018			December 31, 2019			December 31, 2018
Interest income
Loans	$	31,574	$	30,594	$	27,249		$	122,228		$	99,082
Securities - taxable	3,475		3,468		2,927			13,807			10,630
Securities - non-taxable	604		639		701			2,595			2,810
Other earning assets	2,224		2,993		972			8,784			2,945
Total interest income	37,877		37,694		31,849			147,414			115,467
Interest expense
Deposits	18,417		18,363		13,338			69,313			42,484
Other borrowed funds	4,086		4,087		3,090			15,134			10,716
Total interest expense	22,503		22,450		16,428			84,447			53,200
Net interest income	15,374		15,244		15,421			62,967			62,267
Provision for loan losses	468		2,824		1,487			5,966			3,892
Net interest income after provision for loan losses	14,906		12,420		13,934			57,001			58,375
Noninterest income
Service charges and fees	213		211		237			885			934
Loan servicing revenue	166		—		—			166			—
Mortgage banking activities	2,953		4,307		1,141			11,541			5,718
Gain on sale of loans	1,721		523		89			2,074			503
Loss on sale of securities	—		—		—			(458		)	—
Other	352		517		580			2,581			1,605
Total noninterest income	5,405		5,558		2,047			16,789			8,760
Noninterest expense
Salaries and employee benefits	7,168		6,883		5,738			27,014			23,174
Marketing, advertising and promotion	409		456		543			1,800			2,468
Consulting and professional fees	1,242		778		862			3,669			3,055
Data processing	312		381		320			1,338			1,233
Loan expenses	289		247		204			1,142			942
Premises and equipment	1,556		1,506		1,307			6,059			4,996
Deposit insurance premium	601		—		570			1,903			1,956
Write-down of other real estate owned	—		—		2,423			—			2,423
Other	1,036		952		772			3,709			2,936
Total noninterest expense	12,613		11,203		12,739			46,634			43,183
Income before income taxes	7,698		6,775		3,242			27,156			23,952
Income tax (benefit) provision	602		449		(334		)	1,917			2,052
Net income	$	7,096	$	6,326	$	3,576		$	25,239		$	21,900

Per common share data
Earnings per share - basic	$	0.72	$	0.63	$	0.35		$	2.51		$	2.31
Earnings per share - diluted	$	0.72	$	0.63	$	0.35		$	2.51		$	2.30
Dividends declared per share	$	0.06	$	0.06	$	0.06		$	0.24		$	0.24

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



First Internet Bancorp
Average Balances and Rates (unaudited)
Amounts in thousands
	Three Months Ended
	December 31, 2019							September 30, 2019							December 31, 2018
	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	$	2,981,333		$	31,574	4.20	%	$	2,902,081		$	30,594	4.18	%	$	2,593,577		$	27,249	4.17	%
Securities - taxable	497,739			3,475		2.77	%	462,490			3,468		2.97	%	402,179			2,927		2.89	%
Securities - non-taxable	99,310			604		2.41	%	99,290			639		2.55	%	92,077			701		3.02	%
Other earning assets	452,945			2,224		1.95	%	469,454			2,993		2.53	%	148,311			972		2.60	%
Total interest-earning assets	4,031,327			37,877		3.73	%	3,933,315			37,694		3.80	%	3,236,144			31,849		3.90	%
Allowance for loan losses	(21,967		)					(20,050		)					(17,065		)
Noninterest earning-assets	98,856							102,168							101,771
Total assets	$	4,108,216						$	4,015,433						$	3,320,850

Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits	$	122,031		$	223	0.73	%	$	126,130		$	233	0.73	%	$	89,234		$	182	0.81	%
Savings accounts	34,298			94		1.09	%	32,434			91		1.11	%	42,694			123		1.14	%
Money market accounts	752,941			3,653		1.92	%	639,181			3,261		2.02	%	518,421			2,575		1.97	%
Certificates and brokered deposits	2,201,231			14,447		2.60	%	2,233,350			14,778		2.63	%	1,822,094			10,458		2.28	%
Total interest-bearing deposits	3,110,501			18,417		2.35	%	3,031,095			18,363		2.40	%	2,472,443			13,338		2.14	%
Other borrowed funds	584,386			4,086		2.77	%	584,308			4,087		2.78	%	499,877			3,090		2.45	%
Total interest-bearing liabilities	3,694,887			22,503		2.42	%	3,615,403			22,450		2.46	%	2,972,320			16,428		2.19	%
Noninterest-bearing deposits	49,570							43,972							48,779
Other noninterest-bearing liabilities	66,136							57,276							9,907
Total liabilities	3,810,593							3,716,651							3,031,006
Shareholders' equity	297,623							298,782							289,844
Total liabilities and shareholders' equity	$	4,108,216						$	4,015,433						$	3,320,850

Net interest income				$	15,374						$	15,244						$	15,421

Interest rate spread						1.31	%						1.34	%						1.71	%
Net interest margin						1.51	%						1.54	%						1.89	%
Net interest margin - FTE ^2,3						1.67	%						1.70	%						2.07	%

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)
Amounts in thousands
	Twelve Months Ended
	December 31, 2019							December 31, 2018
	Average Balance			Interest/Dividends		Yield/Cost		Average Balance			Interest/Dividends		Yield/Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale ¹	$	2,894,174		$	122,228	4.22	%	$	2,382,504		$	99,082	4.16	%
Securities - taxable	462,704			13,807		2.98	%	391,958			10,630		2.71	%
Securities - non-taxable	97,613			2,595		2.66	%	94,072			2,810		2.99	%
Other earning assets	355,412			8,784		2.47	%	116,074			2,945		2.54	%
Total interest-earning assets	3,809,903			147,414		3.87	%	2,984,608			115,467		3.87	%
Allowance for loan losses	(19,891		)					(16,097		)
Noninterest earning-assets	100,696							86,713
Total assets	$	3,890,708						$	3,055,224

Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits	$	118,874		$	882	0.74	%	$	90,229		$	583	0.65	%
Regular savings accounts	35,751			398		1.11	%	51,333			585		1.14	%
Money market accounts	637,360			12,661		1.99	%	544,802			8,803		1.62	%
Certificates and brokered deposits	2,146,637			55,372		2.58	%	1,585,673			32,513		2.05	%
Total interest-bearing deposits	2,938,622			69,313		2.36	%	2,272,037			42,484		1.87	%
Other borrowed funds	564,757			15,134		2.68	%	468,411			10,716		2.29	%
Total interest-bearing liabilities	3,503,379			84,447		2.41	%	2,740,448			53,200		1.94	%
Noninterest-bearing deposits	44,682							45,562
Other noninterest-bearing liabilities	46,265							9,798
Total liabilities	3,594,326							2,795,808
Shareholders' equity	296,382							259,416
Total liabilities and shareholders' equity	$	3,890,708						$	3,055,224

Net interest income				$	62,967						$	62,267

Interest rate spread						1.46	%						1.93	%
Net interest margin						1.65	%						2.09	%
Net interest margin - FTE ^2,3						1.82	%						2.25	%

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)
Amounts in thousands
	December 31, 2019				September 30, 2019				December 31, 2018
	Amount		Percent		Amount		Percent		Amount		Percent
Commercial loans
Commercial and industrial	$	96,420	3.3	%	$	82,791	2.9	%	$	107,405	4.0	%
Owner-occupied commercial real estate	73,392		2.5	%	76,197		2.6	%	77,569		2.9	%
Investor commercial real estate	12,567		0.4	%	11,852		0.4	%	5,391		0.2	%
Construction	60,274		2.0	%	54,131		1.9	%	39,916		1.5	%
Single tenant lease financing	995,879		33.6	%	1,008,247		35.0	%	919,440		33.8	%
Public finance	687,094		23.2	%	686,622		23.8	%	706,342		26.0	%
Healthcare finance	300,612		10.1	%	251,530		8.6	%	117,007		4.4	%
Small business lending	61,121		2.1	%	22,447		0.8	%	17,370		0.5	%
Total commercial loans	2,287,359		77.2	%	2,193,817		76.0	%	1,990,440		73.3	%

Consumer loans
Residential mortgage	313,849		10.6	%	320,451		11.1	%	399,898		14.7	%
Home equity	24,306		0.8	%	25,042		0.9	%	28,735		1.1	%
Trailers	146,734		5.0	%	145,600		5.1	%	136,620		5.0	%
Recreational vehicles	102,702		3.5	%	102,698		3.6	%	91,912		3.4	%
Other consumer loans	45,873		1.5	%	48,275		1.7	%	51,239		1.9	%
Total consumer loans	633,464		21.4	%	642,066		22.4	%	708,404		26.1	%

Net deferred loan fees, premiums, discounts and other ¹	42,724		1.4	%	45,389		1.6	%	17,384		0.6	%

Total loans	$	2,963,547	100.0	%	$	2,881,272	100.0	%	$	2,716,228	100.0	%

	December 31, 2019				September 30, 2019				December 31, 2018
	Amount		Percent		Amount		Percent		Amount		Percent
Deposits
Noninterest-bearing deposits	$	57,115	1.8	%	$	50,560	1.6	%	$	43,301	1.6	%
Interest-bearing demand deposits	129,020		4.1	%	122,551		3.9	%	121,055		4.5	%
Savings accounts	29,616		0.9	%	34,886		1.1	%	38,489		1.4	%
Money market accounts	786,390		24.9	%	698,077		22.2	%	528,533		19.9	%
Certificates of deposits	1,613,453		51.2	%	1,681,377		53.4	%	1,292,883		48.4	%
Brokered deposits	538,369		17.1	%	560,791		17.8	%	647,090		24.2	%
Total deposits	$	3,153,963	100.0	%	$	3,148,242	100.0	%	$	2,671,351	100.0	%

¹ Includes carrying value adjustments of $21.4 million, $27.6 million and $5.0 million as of December 31, 2019, September 30, 2019 and December 31, 2018, respectively, related to interest rate swaps associated with public finance loans.



First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Amounts in thousands, except per share data
	Three Months Ended									Twelve Months Ended
	December 31, 2019			September 30, 2019			December 31, 2018			December 31, 2019			December 31, 2018

Total equity - GAAP	$	304,913		$	295,140		$	288,735		$	304,913		$	288,735
Adjustments:
Goodwill	(4,687		)	(4,687		)	(4,687		)	(4,687		)	(4,687		)
Tangible common equity	$	300,226		$	290,453		$	284,048		$	300,226		$	284,048

Total assets - GAAP	$	4,100,083		$	4,095,491		$	3,541,692		$	4,100,083		$	3,541,692
Adjustments:
Goodwill	(4,687		)	(4,687		)	(4,687		)	(4,687		)	(4,687		)
Tangible assets	$	4,095,396		$	4,090,804		$	3,537,005		$	4,095,396		$	3,537,005

Common shares outstanding	9,741,800			9,741,800			10,170,778			9,741,800			10,170,778

Book value per common share	$	31.30		$	30.30		$	28.39		$	31.30		$	28.39
Effect of goodwill	(0.48		)	(0.48		)	(0.46		)	(0.48		)	(0.46		)
Tangible book value per common share	$	30.82		$	29.82		$	27.93		$	30.82		$	27.93

Total shareholders' equity to assets ratio	7.44		%	7.21		%	8.15		%	7.44		%	8.15		%
Effect of goodwill	(0.11		)%	(0.11		)%	(0.12		)%	(0.11		)%	(0.12		)%
Tangible common equity to tangible assets ratio	7.33		%	7.10		%	8.03		%	7.33		%	8.03		%

Total average equity - GAAP	$	297,623		$	298,782		$	289,844		$	296,382		$	259,416
Adjustments:
Average goodwill	(4,687		)	(4,687		)	(4,687		)	(4,687		)	(4,687		)
Average tangible common equity	$	292,936		$	294,095		$	285,157		$	291,695		$	254,729

Return on average shareholders' equity	9.46		%	8.40		%	4.89		%	8.52		%	8.44		%
Effect of goodwill	0.15		%	0.13		%	0.09		%	0.13		%	0.16		%
Return on average tangible common equity	9.61		%	8.53		%	4.98		%	8.65		%	8.60		%

Total interest income	$	37,877		$	37,694		$	31,849		$	147,414		$	115,467
Adjustments:
Fully-taxable equivalent adjustments ¹	1,570			1,595			1,477			6,334			5,010
Total interest income - FTE	$	39,447		$	39,289		$	33,326		$	153,748		$	120,477

Net interest income	$	15,374		$	15,244		$	15,421		$	62,967		$	62,267
Adjustments:
Fully-taxable equivalent adjustments ¹	1,570			1,595			1,477			6,334			5,010
Net interest income - FTE	$	16,944		$	16,839		$	16,898		$	69,301		$	67,277

Net interest margin	1.51		%	1.54		%	1.89		%	1.65		%	2.09		%
Effect of fully-taxable equivalent adjustments ¹	0.16		%	0.16		%	0.18		%	0.17		%	0.16		%
Net interest margin - FTE	1.67		%	1.70		%	2.07		%	1.82		%	2.25		%

¹ Assuming a 21% tax rate



First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Amounts in thousands, except per share data
	Three Months Ended									Twelve Months Ended
	December 31, 2019			September 30, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Income before income taxes - GAAP	$	7,698		$	6,775		$	3,242		$	27,156		$	23,952
Adjustments:
Write-down of other real estate owned	—			—			2,423			—			2,423
Adjusted income before income taxes	$	7,698		$	6,775		$	5,665		$	27,156		$	26,375

Income tax (benefit) provision - GAAP	$	602		$	449		$	(334	)	$	1,917		$	2,052
Adjustments:
Write-down of other real estate owned	—			—			509			—			509
Adjusted income tax provision	$	602		$	449		$	175		$	1,917		$	2,561

Net income - GAAP	$	7,096		$	6,326		$	3,576		$	25,239		$	21,900
Adjustments:
Write-down of other real estate owned	—			—			1,914			—			1,914
Adjusted net income	$	7,096		$	6,326		$	5,490		$	25,239		$	23,814

Diluted average common shares outstanding	$	9,843,829		$	9,980,612		$	10,275,040		$	10,044,483		$	9,508,653

Diluted earnings per share - GAAP	$	0.72		$	0.63		$	0.35		$	2.51		$	2.30
Adjustments:
Effect of write-down of other real estate owned	—			—			0.18			—			0.20
Adjusted diluted earnings per share	$	0.72		$	0.63		$	0.53		$	2.51		$	2.50

Return on average assets	0.69		%	0.63		%	0.43		%	0.65		%	0.72		%
Effect of write-down of other real estate owned	0.00		%	0.00		%	0.23		%	0.00		%	0.06		%
Adjusted return on average assets	0.69		%	0.63		%	0.66		%	0.65		%	0.78		%

Return on average shareholders' equity	9.46		%	8.40		%	4.89		%	8.52		%	8.44		%
Effect of write-down of other real estate owned	0.00		%	0.00		%	2.62		%	0.00		%	0.74		%
Adjusted return on average shareholders' equity	9.46		%	8.40		%	7.51		%	8.52		%	9.18		%

Return on tangible common equity	9.61		%	8.53		%	4.98		%	8.65		%	8.60		%
Effect of write-down of other real estate owned	0.00		%	0.00		%	2.66		%	0.00		%	0.75		%
Adjusted return on average tangible common equity	9.61		%	8.53		%	7.64		%	8.65		%	9.35		%

Effective income tax rate	7.8		%	6.6		%	(10.3		)%	7.1		%	8.6		%
Effect of write-down of other real estate owned	0.0		%	0.0		%	13.4		%	0.0		%	1.1		%
Adjusted effective income tax rate	7.8		%	6.6		%	3.1		%	7.1		%	9.7		%

Financial Results Fourth Quarter 2019 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,” “pending,” “plan,” “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. 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, adjusted noninterest expense and adjusted noninterest expense/average assets are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the table at the end of this release under the caption “Reconciliation of Non-GAAP Financial Measures.” 2

Fourth Quarter 2019 Highlights . Record net income of $7.1 million and record diluted EPS of $0.72 . Earnings Record annual net income of $25.2 million and record annual diluted EPS of $2.51 . Improved return on average assets and average tangible common equity . Total revenue of $20.8 million, up 19% from 4Q18 Key Operating . Cost of interest-bearing deposits declined 5 bps from 3Q19 to 2.35% Trends . Asset quality remained solid with NPAs to total assets of 0.22% . Disciplined Deployed liquidity through SBA portfolio acquisition Balance Sheet . Sold $53.7 million of single tenant lease financing and public finance loans Management . Initial sales of SBA 7(a) loan production . Book value per share increased 3.3% from 3Q19 to $31.30 Strong Capital . Tangible book value per share1 increased 3.4% from 3Q19 to $30.82 Generation . TCE/TA ratio1 increased to 7.33% from 7.10% in 3Q19 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix 3 3

Loan Portfolio Overview . Total loans increased $82.3 million, or 2.9%, compared to 3Q19 and $247.3 million, or 9.1%, year-over- year . Quarterly commercial loan growth of $93.5 million driven by healthcare finance and the SBA loan portfolio acquisition . Sold $53.7 million of single tenant lease financing and public finance loans during the quarter . Consumer loan balances down slightly due primarily to elevated payoffs in residential mortgage Loan Portfolio Mix Dollars in millions $2,963.5 $2,716.2 6% 2% 7% 1 2% Commercial and Industrial Commercial Real Estate $2,091.0 34% 9% 34% Single Tenant Lease Financing 2% Public Finance Healthcare Finance 38% $1,250.8 24% Small Business Lending 13% 26% 5% Residential Mortgage/HE/HELOCs 22% 4% 10% Consumer 49% 1% 2% 2% 16% 12% 16% 19% 14% 11% 10% 10% 2016 2017 2018 2019 4 1 Includes commercial and industrial and owner-occupied commercial real estate balances

Deposit Composition . Total deposits increased $5.7 million, or 0.2%, compared to 3Q19 and $482.6 million, or 18.1%, year- over-year . Strong quarterly money market growth of $88.3 million, including $73.4 million in small business . CD and brokered deposit balances decreased $90.3 million compared to 3Q19 . Cost of interest-bearing deposits declined 5 bps compared to 3Q19 Total Deposits - $3.2 Billion Total Non-Time Deposits - $1.0 Billion As of December 31, 2019 As of December 31, 20191 $57.1 2% $119.5 12% $129.0 $29.6 4% 1% $110.9 $422.9 11% $2,151.9 42% 68% $786.4 25% $348.8 35% 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 5

Net Interest Income and Net Interest Margin . Net interest income stabilized, following recent Net Interest Income – GAAP and FTE1 declines Dollars in millions GAAP FTE $17.8 $17.7 . Stable loan yields and declining deposit costs $16.9 $16.8 $16.9 . NIM contracted 3 bps sequentially due mainly to lower yields on elevated cash balances resulting $16.2 $16.1 from successive federal funds rate cuts $15.4 $15.2 $15.4 4Q18 1Q19 2Q19 3Q19 4Q19 Yield on Loans and Cost of Deposits NIM – GAAP and FTE1 4.27% GAAP FTE 4.17% 4.24% 4.18% 4.20% 2.07% 2.04% 1.91% 1.70% 1.67% 2.39% 2.40% 2.35% 2.14% 2.29% 1.89% 1.86% 1.73% 1.54% 1.51% 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 Yield on loans Cost of interest-bearing deposits 6 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix

Net Interest Margin Drivers . Linked quarter NIM decline was primarily attributable to the impact of elevated cash balances combined with falling short-term interest rates – 7 bp negative impact . Lower deposit costs and improved deposit mix had a positive impact of 4 bps . Higher loan yields added 2 bps . Significant opportunity to continue lowering deposit costs . $1.1 billion of CDs with a weighted average cost of 2.59% mature in 2020 – replacement cost is currently 1.85% - 1.90% . Recent reduction in rate paid on money market deposits NIM – FTE1 Linked-Quarter Change Monthly Rate Paid on Interest-bearing Deposits 7 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix

Noninterest Income . Noninterest income of $5.4 million compared to $5.6 million in 3Q19 and $2.0 million in 4Q18 . Seasonally strong mortgage banking revenue of $3.0 million . Gain on sale of loans of $1.7 million, up significantly over 3Q19 . Sales of single tenant lease financing and public finance loans at solid premiums . Initial sales of SBA 7(a) loans – $9.2 million in balances sold . Acquired SBA servicing portfolio adds stable revenue stream with strong growth potential Noninterest Income Noninterest Income 4Q19 Dollars in millions $0.2 $0.3 $0.2 $5.6 $5.4 $1.7 $3.5 $3.0 $2.4 $2.0 Mortgage banking activities Gain on sale of loans Service charges and fees Loan servicing revenue 4Q18 1Q19 2Q19 3Q19 4Q19 Other 8 8

Noninterest Expense . Noninterest expense of $12.6 million compared to $11.2 million in 3Q19 and $12.7 million in 4Q18 . Deposit insurance premium resumed vs. a credit in 3Q19 (no expense recognized) . Increased consulting and professional fees related to recruiting and third party loan review fees . Higher salaries and employee benefits expense due primarily to SBA personnel additions from the acquired team and experienced hires . Noninterest expense / average assets is well below the industry average, demonstrating the operating efficiency of the technology-driven business model Noninterest Expense1 Noninterest Expense / Average Assets1 Dollars in millions 1.52% $12.7 $12.6 1.23% 1.24% 1.23% 1.22% $11.7 $11.2 1.11% $10.3 $11.1 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 1 4Q18 results included a write-down of legacy other real estate owned which increased noninterest expense by $2.4 million 9

Asset Quality . Asset quality metrics remain among the industry’s best, driven by a strong credit culture and lower-risk asset classes . Nonperforming loans up $0.9 million compared to 3Q19 driven by a portfolio residential mortgage loan and accruing loans 90+ days past due offset by a decline in nonperforming C&I loans . Allowance for loan losses to total loans of 0.74% and to nonperforming loans of 324.4% . Net charge-offs to average loans down significantly compared to 3Q19 and in line with historical results . Quarterly provision for loan losses of $0.5, down from $2.8 million in 4Q19 and $1.5 million in 4Q18 NPLs / Total Loans NPAs / Total Assets Net Charge-Offs / Average Loans 0.23% 0.22% 0.19% 0.20% 0.20% 0.21% 0.17% 0.15% 0.12% 0.10% 0.05% 0.05% 0.03% 0.04% 0.04% 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 10

2020 Strategy and Outlook . Manage balance sheet growth and deploy excess liquidity to fund loan growth and/or higher-cost deposit runoff . Continued loan production combined with loan sales to enhance noninterest income and improve mix of earning assets . Build capital through improved profitability and disciplined balance sheet management . Net interest margin expansion through lower deposit costs, managing loan pricing and portfolio composition . Continue to build out nationwide SBA platform, capitalizing on opportunities on both sides of the balance sheet . Increase noninterest income through SBA gain of sale and loan servicing revenue . Retain higher yielding loan balances . Continue to grow small business deposits . Following successful results in mortgage, implement technology to enhance the customer experience and workflow process in commercial and small business lending . Maintain top quartile asset quality 11

Appendix 12

Loan Portfolio Composition Dollars in thousands 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 Commercial loans Commercial and industrial $ 101,326 $ 121,966 $ 112,900 $ 110,560 $ 106,517 $ 88,874 $ 96,420 Owner-occupied commercial real estate 55,637 71,872 75,701 75,317 71,908 74,384 73,392 Investor commercial real estate 13,181 7,273 5,391 11,188 21,179 11,852 12,567 Construction 53,291 49,213 39,916 42,319 47,849 54,131 60,274 Single tenant lease financing 606,568 803,299 919,440 975,841 1,001,196 1,008,247 995,879 Public finance - 438,341 706,342 708,816 706,161 686,622 687,094 Healthcare finance - 31,573 117,007 158,796 212,351 251,530 300,612 Small business lending 3,142 4,870 13,743 13,751 15,697 18,177 61,121 Total commercial loans 833,145 1,528,407 1,990,440 2,096,588 2,182,858 2,193,817 2,287,359 Consumer loans Residential mortgage 205,554 299,935 399,898 404,869 318,678 320,451 313,849 Home equity 35,036 30,554 28,735 27,794 26,825 25,042 24,306 Trailers 81,186 101,369 136,620 140,548 144,704 145,600 146,734 Recreational vehicles 52,350 69,196 91,912 95,871 100,518 102,698 102,702 Other consumer loans 39,913 56,968 51,239 48,840 49,029 48,275 45,873 Total consumer loans 414,039 558,022 708,404 717,922 639,754 642,066 633,464 Net def. loan fees, prem., disc. and other 1 3,605 4,764 17,384 25,418 38,544 45,389 42,724 Total loans $ 1,250,789 $ 2,091,193 $ 2,716,228 $ 2,839,928 $ 2,861,156 $ 2,881,272 $ 2,963,547 1 Includes carrying value adjustments of $21.4 million, $27.6 million, $22.2 million, $11.5 million, $5.0 million, $0.3 million, and $0.0 million as of December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018, December 31, 2017 and December 31, 2016, respectively, related to interest rate swaps associated with public finance loans. 13

Reconciliation of Non-GAAP Financial Measures Dollars in thousands 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Total equity - GAAP $224,824 $282,087 $287,740 $288,735 $294,013 $296,120 $295,140 $304,913 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) Tangible common equity $220,137 $277,400 $283,053 $284,048 $289,326 $291,433 $290,453 $300,226 Tota l a sse ts - GAAP $2,862,728 $3,115,773 $3,202,918 $3,541,692 $3,670,176 $3,958,829 $4,095,491 $4,100,083 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) Tangible assets $2,858,041 $3,111,086 $3,198,231 $3,537,005 $3,665,489 $3,954,142 $4,090,804 $4,095,396 Common shares outstanding 8,450,925 10,181,675 10,181,675 10,170,778 10,128,587 10,016,458 9,741,800 9,741,800 Book value per common share $33.38 $28.26 $28.36 $28.91 $29.03 $29.56 $30.30 $31.30 Effect of goodwill (0.56) (0.46) (0.46) (0.46) (0.46) (0.46) (0.48) (0.48) Tangible book value per common share $26.05 $27.25 $27.80 $27.93 $28.57 $29.10 $29.82 $30.82 Total shareholders' equity to assets 9.05% 8.98% 8.15% 8.01% 8.01% 7.48% 7.21% 7.44% Effect of goodwill (0.13%) (0.13%) (0.12%) (0.12%) (0.12%) (0.11%) (0.11%) (0.11%) Tangible common equity to tangible assets 7.70% 8.92% 8.85% 8.03% 7.89% 7.37% 7.10% 7.33% Net interest income $15,415 $15,461 $15,970 $15,421 $16,244 $16,105 $15,244 $15,374 Adjustments: Fully-taxable equivalent adjustments 1 1,018 1,164 1,351 1,477 1,557 1,612 1,595 1,570 Net interest income - FTE $16,433 $16,625 $17,321 $16,898 $17,801 $17,717 $16,839 $16,944 Net interest margin 2.26% 2.17% 2.06% 1.89% 1.86% 1.73% 1.54% 1.51% Adjustments: Effect of fully-taxable equivalent adjustments 1 0.15% 0.16% 0.17% 0.18% 0.18% 0.18% 0.16% 0.16% Net interest margin - FTE 2.41% 2.33% 2.23% 2.07% 2.04% 1.91% 1.70% 1.67% Noninterest expense $10,217 $10,182 $10,045 $12,709 $11,109 $11,709 $11,203 $12,613 Adjustments: Write-down of other real estate owned - - - 2,423 - - - - Adjusted noninterest expense $10,217 $10,182 $10,045 $10,286 $11,109 $11,709 $11,203 $12,613 Noninterest expense/average assets 1.47% 1.40% 1.27% 1.52% 1.24% 1.23% 1.12% 1.22% Effect of write-down of other real estate owned 0.00% 0.00% 0.00% 0.29% 0.00% 0.00% 0.00% 0.00% Adjusted noninterest expense/average assets 1.47% 1.40% 1.27% 1.23% 1.24% 1.23% 1.12% 1.22% 1 Assuming a 21% tax rate 14



First Internet Bancorp
(Exact Name of Registrant as Specified in Its Charter)

Indiana
(State or Other Jurisdiction of Incorporation)

001-35750			20-3489991
(Commission File Number)			(IRS Employer Identification No.)

11201 USA Parkway			46037
Fishers, Indiana
(Address of Principal Executive Offices)			(Zip Code)

(317) 532-7900
(Registrant's Telephone Number, Including Area Code)



Title of each class	Trading Symbols	Name of each exchange on which registered
Common Stock, without par value	INBK	The Nasdaq Stock Market LLC
6.0% Fixed to Floating Subordinated Notes due 2026	INBKL	The Nasdaq Stock Market LLC
6.0% Fixed to Floating Subordinated Notes due 2029	INBKZ	The Nasdaq Stock Market LLC



Number	Description	Method of filing

99.1	Press release dated January 22, 2020	Furnished herewith
99.2	Presentation Slides dated January 22, 2020	Furnished herewith



		Dated:	January 22, 2020

		FIRST INTERNET BANCORP

		By:	/s/ Kenneth J. Lovik
			Kenneth J. Lovik, Executive Vice President & Chief Financial Officer


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


Item 9.01	Financial Statements and Exhibits