First Internet Bancorp Reports First Quarter 2026 Results

- Net income of $2.5 million, up 166% year-over-year - - Diluted earnings per share of $0.29, up 164% year-over-year - - Company to hold earnings call today at 5pm ET - First Internet Bancorp (the “Company”) (Nasdaq: INBK), the parent company of First Internet Bank (the “Bank”), announced today financial and operational results for the first quarter ended March 31, 2026. Key Business Updates Revenue Momentum: Growth in net interest income (up 26%) and fully-taxable equivalent (“FTE”) net interest margin (now 2.45%) drove quarterly revenue up 21% year-over-year to $43.1 million. When combined with well-managed expenses, pre-provision net revenue grew 51% year-over-year.Credit Trends: Provision for credit losses for the first quarter of 2026 of $16.3 million. The provision reflects our quarterly CECL re-measurement of expected lifetime losses for the portfolio, based on observed credit performance and updates to current conditions. During the first quarter, ongoing proactive credit actions continued to drive progress in resolving problem credits. Notably, nonaccrual unguaranteed SBA and franchise finance balances declined from the fourth quarter of 2025.Strong Loan Production: Commercial loan production remained strong during the first quarter led by construction and single tenant lease financing. Additionally, loan pipelines at the end of the quarter were solid, setting the stage for continued loan growth as we move through 2026. First Quarter 2026 Financial Performance Net income of $2.5 million and diluted earnings per share of $0.29, up 166% and 164%, respectively, from the prior year periodTotal revenue of $43.1 million, which increased 21% from the prior year periodNet interest income of $31.6 million and FTE net interest income of $32.8 million 1, increased 26% and 25%, respectively, over the prior year periodNet interest margin of 2.36% and FTE net interest margin of 2.45% 1, both increased 54 basis points (“bps”) from the prior year periodNoninterest income of $11.5 million, which increased 10% from the prior year periodPre-provision net revenue (“PPNR”) of $18.1 million 1, which increased 51% from the prior year periodTotal loan balances of $3.8 billion, up $29.1 million, or 1%, from the fourth quarter of 2025The yield on the loan portfolio increased 37 bps from the prior year period to 6.36%Strong loan production partially offset by elevated payoffs and maturitiesTotal deposits of $5.0 billion, up $141.8 million, or 3%, from the fourth quarter of 2025Continued growth in fintech deposits, allowing higher-cost CDs and brokered deposits to matureThe cost of interest-bearing deposits declined 56 bps from the prior year period to 3.45%Approximately $1.5 billion of fintech deposits moved off-balance sheet into a deposit network, providing flexibility to manage the size of the balance sheetLoans to deposits ratio of 75.8%Provision for credit losses of $16.3 million, up $4.3 million, or 36.1%, from the fourth quarter of 2025Net charge-offs to average loans of 1.65%, slightly improved from 1.68% in the fourth quarter of 2025Nonperforming loans (“NPLs”) to total loans of 1.63%; allowance for credit losses - loans ("ACL") to total loans of 1.50%Increase in NPLs consisted primarily of fully-guaranteed SBA 7(a) balances and accruing loans past due 90 days or more, partially offset by lower nonaccrual franchise finance loansNPLs / total loans of 1.22% 1 excluding fully-guaranteed balancesACL to NPLs of 92%; or 122% 1 excluding fully-guaranteed balancesTangible common equity to tangible assets of 6.24% 1, and 6.99% 1 ex-AOCI and adjusted for normalized cash balances; CET1 ratio of 8.97% 2; total capital ratio of 12.50% 2Tangible book value per share of $40.87 1, consistent with the fourth quarter of 2025 1 This information represents a non-GAAP financial measure. For a discussion of non-GAAP financial measures, see the section below entitled "Non-GAAP Financial Measures." 2 Regulatory capital ratios are preliminary pending filing of the Company’s regulatory reports “We kicked off the new year with strong first quarter results, demonstrating the resilience of our diversified business model and the solid foundation we've built to navigate an uncertain macroeconomic environment from a position of strength,” said David Becker, Chairman and CEO of First Internet Bancorp. “We generated 21% revenue growth, 51% growth in pre-provision net revenue, and expanded our net interest margin 54 basis points year-over-year to 2.45%, reflecting years of disciplined balance sheet repositioning and proactive liability management. We're also seeing tangible evidence that our enhanced underwriting standards and risk management initiatives are yielding favorable results, particularly in our SBA portfolio where unguaranteed nonperforming loans and delinquencies have improved both sequentially and year-over-year.” “Beyond the strong quarterly financial results, we continued to make strategic investments in AI and digital capabilities that are already delivering measurable results - our virtual customer service agents resolve 45% of inquiries, our fraud detection agents enhance security, and our Net Promoter Scores are well above industry averages. Additionally, our Banking-as-a-Service partnerships continue to grow and provide valuable deposit funding flexibility, while our commercial lending pipelines remain robust across multiple verticals. With improving credit trends, strong margin momentum, and disciplined cost management, we are well-positioned to deliver improving profitability through 2026 and accelerating performance into 2027." Full Year 2026 Outlook The Company is broadly maintaining its 2026 guidance. However, management acknowledges the heightened macroeconomic uncertainty, including volatile energy prices and other geopolitical developments, which could have negative impacts. Regarding loan growth specifically, while commercial pipelines remain robust, the Company recognizes that the full-year target of 15-17% may prove ambitious due to higher-than-expected loan payoffs and potential further tightening of underwriting standards due to macro uncertainties. Conference Call and Webcast The Company will host a conference call and webcast at 5:00 p.m. Eastern Time today, April 30, 2026, to discuss its quarterly financial results. The call can be accessed via telephone at (800) 715-9871; access code: 9553116. A recorded replay can be accessed through May 7, 2026, by dialing (800) 770-2030; access code: 9553116. 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 $5.7 billion as of March 31, 2026. The Company’s subsidiary, First Internet Bank, opened for business in 1999 as an industry pioneer in the branchless delivery of banking services. First Internet Bank provides consumer and small business deposit, commercial real estate and construction financing, SBA financing, public finance, consumer loans, and specialty finance services nationally, as well as commercial and industrial loans, and treasury management services on a regional basis. First Internet Bancorp’s common stock trades on the Nasdaq Global Select Market under the symbol “INBK” and is a component of the Russell 2000® Index. Additional information about the Company is available at www.firstinternetbancorp.com and additional information about First Internet Bank, including its products and services, is available at www.firstib.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements with respect to the financial condition, results of operations, trends in lending policies and loan programs, plans and prospective business partnerships, objectives, future performance and business of the Company. Forward-looking statements are generally identifiable by the use of words such as “anticipate,” “believe,” “better than,” “continue,” “could,” “drive,” “enhance,” “estimate,” “expand,” “expect,” “future,” “going forward,” “growth,” ”improve,” “increase,” “looking ahead,” “maintain,” “may,” “ongoing,” “opportunities,” “pending,” “plan,” “position,” “preliminary,” “progress,” “remain,” “setting the stage,” “should,” “stable,” “thereafter,” “well-positioned,” “will,” or other similar expressions. Forward-looking statements are not a guarantee of future performance or results, are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the information in the forward-looking statements. Such statements are subject to certain risks and uncertainties including: our business and operations and the business and operations of our vendors and customers; general economic conditions, whether national or regional, and conditions in the lending markets in which we participate that may have an adverse effect on the demand for our loans and other products; our credit quality and related levels of nonperforming assets and loan losses, and the value and salability of the real estate that is the collateral for our loans. Other factors that may cause such differences include: failures or breaches of or interruptions in the communications and information systems on which we rely to conduct our business; failure of our plans to grow our commercial and industrial, construction, and SBA loan portfolios; competition with national, regional and community financial institutions; the loss of key members of senior management; the anticipated impacts of inflation and rising interest rates on the general economy; risks relating to the regulation of financial institutions; and other factors identified in reports we file with the U.S. Securities and Exchange Commission. All statements in this press release, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events. Non-GAAP Financial Measures This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, average tangible common equity, return on average tangible common equity, total interest income – FTE, net interest income – FTE, net interest margin – FTE, adjusted total revenue, pre-provision net revenue, adjusted pre-provision net revenue, adjusted noninterest income, adjusted income before income taxes, adjusted income tax (benefit) 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, adjusted tangible common equity, adjusted tangible assets, adjusted tangible common equity to adjusted tangible assets, adjusted nonperforming loans to total loans and adjusted allowance for credit losses – loans to nonperforming loans are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the table at the end of this release under the caption “Reconciliation of Non-GAAP Financial Measures.” First Internet BancorpSummary Financial Information (unaudited)Dollar amounts in thousands, except per share dataThree Months EndedMarch 31December 31March 31 2026 2025 2025 Net income $ 2,509 $ 5,289 $ 943 Per share and share informationEarnings per share - basic $ 0.29 $ 0.61 $ 0.11 Earnings per share - diluted 0.29 0.60 0.11 Dividends declared per share 0.06 0.06 0.06 Book value per common share 41.41 41.41 44.58 Tangible book value per common share1 40.87 40.87 44.04 Common shares outstanding 8,716,662 8,686,994 8,697,085 Average common shares outstanding:Basic 8,734,383 8,728,342 8,715,655 Diluted 8,774,111 8,769,456 8,784,970 Performance ratiosReturn on average assets 0.18 % 0.37 % 0.07 % Return on average shareholders' equity 2.72 % 5.79 % 0.98 % Return on average tangible common equity1 2.75 % 5.87 % 0.99 % Net interest margin 2.36 % 2.22 % 1.82 % Net interest margin - FTE1,2 2.45 % 2.30 % 1.91 % Capital ratios3Total shareholders' equity to assets 6.32 % 6.46 % 6.63 % Tangible common equity to tangible assets1 6.24 % 6.38 % 6.55 % Tier 1 leverage ratio 6.23 % 6.24 % 6.87 % Common equity tier 1 capital ratio 8.97 % 8.97 % 9.15 % Tier 1 capital ratio 8.97 % 8.97 % 9.15 % Total risk-based capital ratio 12.50 % 12.50 % 12.52 % Asset qualityNonperforming loans $ 61,596 $ 58,538 $ 34,243 Nonperforming assets 63,691 61,355 35,921 Nonperforming loans to loans 1.63 % 1.56 % 0.80 % Nonperforming assets to total assets 1.12 % 1.10 % 0.61 % Allowance for credit losses - loans to:Loans 1.50 % 1.49 % 1.11 % Nonperforming loans 91.7 % 95.1 % 138.0 % Net charge-offs to average loans 1.65 % 1.68 % 0.92 % Average balance sheet informationLoans $ 3,874,174 $ 3,798,831 $ 4,237,300 Total securities 1,022,872 943,418 901,918 Other earning assets 521,697 665,022 445,280 Total interest-earning assets 5,424,700 5,426,126 5,590,131 Total assets 5,635,646 5,618,089 5,770,380 Noninterest-bearing deposits 143,305 155,030 135,878 Interest-bearing deposits 4,744,189 4,723,879 4,815,978 Total deposits 4,887,494 4,878,909 4,951,856 Shareholders' equity 374,276 362,183 392,035 1Refer to "Non-GAAP Financial Measures" section above and "Reconciliation of Non-GAAP Financial Measures" below2On a fully-taxable equivalent ("FTE") basis assuming a 21% tax rate3Regulatory capital ratios are preliminary pending filing of the Company's regulatory reportsFirst Internet BancorpCondensed Consolidated Balance Sheets (unaudited, except for December 31, 2025)Dollar amounts in thousandsMarch 31December 31March 31 2026 2025 2025 AssetsCash and due from banks $ 10,528 $ 6,145 $ 6,344 Interest-bearing deposits 591,277 450,632 388,110 Securities available-for-sale, at fair value 772,035 778,687 681,785 Securities held-to-maturity, at amortized cost, net of allowance for credit losses 276,042 250,609 276,542 Loans held-for-sale 55,240 108,608 31,738 Loans 3,775,870 3,746,728 4,254,412 Allowance for credit losses - loans (56,496 ) (55,686 ) (47,238 ) Net loans 3,719,374 3,691,042 4,207,174 Accrued interest receivable 28,182 27,909 29,022 Federal Home Loan Bank of Indianapolis stock 28,350 28,350 28,350 Cash surrender value of bank-owned life insurance 42,864 42,559 41,675 Premises and equipment, net 67,006 67,934 70,461 Goodwill 4,687 4,687 4,687 Servicing asset 23,614 22,793 17,445 Other real estate owned 1,945 2,631 1,518 Accrued income and other assets 90,544 89,061 66,757 Total assets $ 5,711,688 $ 5,571,647 $ 5,851,608 LiabilitiesNoninterest-bearing deposits $ 149,505 $ 146,879 $ 151,815 Interest-bearing deposits 4,832,145 4,692,934 4,793,810 Total deposits 4,981,650 4,839,813 4,945,625 Advances from Federal Home Loan Bank 239,500 249,500 395,000 Subordinated debt 105,546 105,465 105,228 Accrued interest payable 1,232 1,744 1,645 Accrued expenses and other liabilities 22,806 15,358 16,363 Total liabilities 5,350,734 5,211,880 5,463,861 Shareholders' equityVoting common stock 186,967 186,577 185,873 Retained earnings 195,292 193,320 231,031 Accumulated other comprehensive loss (21,305 ) (20,130 ) (29,157 ) Total shareholders' equity 360,954 359,767 387,747 Total liabilities and shareholders' equity $ 5,711,688 $ 5,571,647 $ 5,851,608 First Internet BancorpCondensed Consolidated Statements of Income (unaudited)Dollar amounts in thousands, except per share dataThree Months EndedMarch 31December 31March 31 2026 2025 2025 Interest incomeLoans $ 60,839 $ 61,535 $ 62,662 Securities - taxable 9,496 8,811 8,463 Securities - non-taxable 654 651 661 Other earning assets 4,821 7,057 5,043 Total interest income 75,810 78,054 76,829 Interest expenseDeposits 40,359 43,836 47,626 Other borrowed funds 3,853 3,896 4,107 Total interest expense 44,212 47,732 51,733 Net interest income 31,598 30,322 25,096 Provision for credit losses 16,305 11,984 11,933 Net interest income after provisionfor credit losses 15,293 18,338 13,163 Noninterest incomeService charges and fees 844 454 265 Loan servicing revenue 2,856 2,713 1,983 Loan servicing asset revaluation (1,060 ) (1,800 ) (1,181 ) Gain on sale of loans 7,377 8,470 8,647 Other 1,501 1,538 713 Total noninterest income 11,518 11,375 10,427 Noninterest expenseSalaries and employee benefits 13,236 12,668 13,107 Marketing, advertising and promotion 615 644 647 Consulting and professional fees 1,080 1,184 1,228 Data processing 775 712 635 Loan expenses 2,179 1,813 1,531 Premises and equipment 3,676 3,705 3,115 Deposit insurance premium 1,487 1,563 1,398 Other 1,979 1,922 1,895 Total noninterest expense 25,027 24,211 23,556 Income before income taxes 1,784 5,502 34 Income tax (benefit) provision (725 ) 213 (909 ) Net income $ 2,509 $ 5,289 $ 943 Per common share dataEarnings per share - basic $ 0.29 $ 0.61 $ 0.11 Earnings per share - diluted $ 0.29 $ 0.60 $ 0.11 Dividends declared per share $ 0.06 $ 0.06 $ 0.06 First Internet BancorpAverage Balances and Rates (unaudited)Dollar amounts in thousandsThree Months EndedMarch 31, 2026December 31, 2025March 31, 2025AverageInterest /Yield /AverageInterest /Yield /AverageInterest /Yield /BalanceDividendsCostBalanceDividendsCostBalanceDividendsCostAssetsInterest-earning assetsLoans, including loans held-for-sale1 $ 3,880,131 $ 60,839 6.36 % $ 3,817,686 $ 61,535 6.39 % $ 4,242,933 $ 62,662 5.99 % Securities - taxable 943,079 9,496 4.08 % 863,071 8,811 4.05 % 820,175 8,463 4.18 % Securities - non-taxable 79,793 654 3.32 % 80,347 651 3.21 % 81,743 661 3.28 % Other earning assets 521,697 4,821 3.75 % 665,022 7,057 4.21 % 445,280 5,043 4.59 % Total interest-earning assets 5,424,700 75,810 5.67 % 5,426,126 78,054 5.71 % 5,590,131 76,829 5.57 % Allowance for credit losses - loans (56,106 ) (61,378 ) (45,664 ) Noninterest-earning assets 267,052 253,341 225,913 Total assets $ 5,635,646 $ 5,618,089 $ 5,770,380 LiabilitiesInterest-bearing liabilitiesInterest-bearing demand deposits $ 1,243,549 $ 8,168 2.66 % $ 1,023,305 $ 7,524 2.92 % $ 956,322 $ 6,974 2.96 % Savings accounts 19,542 41 0.85 % 18,575 40 0.85 % 20,568 43 0.85 % Money market accounts 1,292,126 10,103 3.17 % 1,312,201 11,238 3.40 % 1,221,795 11,361 3.77 % Certificates and brokered deposits 2,188,972 22,047 4.08 % 2,369,798 25,034 4.19 % 2,617,293 29,248 4.53 % Total interest-bearing deposits 4,744,189 40,359 3.45 % 4,723,879 43,836 3.68 % 4,815,978 47,626 4.01 % Other borrowed funds 352,117 3,853 4.44 % 354,926 3,896 4.35 % 401,300 4,107 4.15 % Total interest-bearing liabilities 5,096,306 44,212 3.52 % 5,078,805 47,732 3.73 % 5,217,278 51,733 4.02 % Noninterest-bearing deposits 143,305 155,030 135,878 Other noninterest-bearing liabilities 21,759 22,071 25,189 Total liabilities 5,261,370 5,255,906 5,378,345 Shareholders' equity 374,276 362,183 392,035 Total liabilities and shareholders' equity $ 5,635,646 $ 5,618,089 $ 5,770,380 Net interest income $ 31,598 $ 30,322 $ 25,096 Interest rate spread 2.15 % 1.98 % 1.55 % Net interest margin 2.36 % 2.22 % 1.82 % Net interest margin - FTE2,3 2.45 % 2.30 % 1.91 % 1Includes nonaccrual loans2On a fully-taxable equivalent ("FTE") basis assuming a 21% tax rate3Refer to "Non-GAAP Financial Measures" section above and "Reconciliation of Non-GAAP Financial Measures" belowFirst Internet BancorpLoans and Deposits (unaudited)Dollar amounts in thousandsMarch 31, 2026December 31, 2025March 31, 2025AmountPercentAmountPercentAmountPercentCommercial loansCommercial and industrial $ 225,425 6.0 % $ 221,714 5.9 % $ 140,239 3.3 % Owner-occupied commercial real estate 48,136 1.3 % 48,575 1.3 % 49,954 1.2 % Investor commercial real estate 598,933 15.9 % 647,394 17.3 % 297,874 7.0 % Construction 449,888 11.9 % 372,668 9.9 % 471,082 11.1 % Single tenant lease financing 254,044 6.7 % 222,925 5.9 % 950,814 22.4 % Public finance 441,734 11.7 % 442,234 11.8 % 482,558 11.3 % Healthcare finance 131,161 3.5 % 139,469 3.7 % 171,430 4.0 % Small business lending 433,964 11.5 % 430,024 11.5 % 353,408 8.3 % Franchise finance 389,249 10.3 % 417,045 11.1 % 514,700 12.1 % Total commercial loans 2,972,534 78.8 % 2,942,048 78.4 % 3,432,059 80.7 % Consumer loansResidential mortgage 338,058 9.0 % 343,110 9.2 % 367,722 8.6 % Home equity 14,219 0.4 % 14,725 0.4 % 17,421 0.4 % Trailers 242,022 6.4 % 235,876 6.3 % 220,012 5.2 % Recreational vehicles 142,442 3.8 % 141,952 3.8 % 145,690 3.4 % Other consumer loans 46,874 1.2 % 47,630 1.3 % 46,851 1.1 % Total consumer loans 783,615 20.8 % 783,293 21.0 % 797,696 18.7 % Net deferred loan fees, premiums, discounts and other1 19,721 0.4 % 21,387 0.6 % 24,657 0.6 % Total loans $ 3,775,870 100.0 % $ 3,746,728 100.0 % $ 4,254,412 100.0 % March 31, 2026December 31, 2025March 31, 2025AmountPercentAmountPercentAmountPercentDepositsNoninterest-bearing deposits $ 149,505 3.0 % $ 146,880 3.0 % $ 151,815 3.1 % Interest-bearing demand deposits 1,358,028 27.3 % 1,120,850 23.2 % 1,103,540 22.3 % Savings accounts 20,344 0.4 % 18,990 0.4 % 21,632 0.4 % Money market accounts 1,325,382 26.6 % 1,272,845 26.3 % 1,292,235 26.2 % Certificates of deposits 1,869,181 37.5 % 2,004,909 41.4 % 2,029,801 41.0 % Brokered deposits 259,210 5.2 % 275,339 5.7 % 346,602 7.0 % Total deposits $ 4,981,650 100.0 % $ 4,839,813 100.0 % $ 4,945,625 100.0 % 1Includes carrying value adjustments of $18.1 million, $19.1 million and $22.1 million related to terminated interest rate swaps associated with public finance loans as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.First Internet BancorpReconciliation of Non-GAAP Financial MeasuresDollar amounts in thousands, except per share dataThree Months EndedMarch 31December 31March 31 2026 2025 2025 Total equity - GAAP $ 360,954 $ 359,767 $ 387,747 Adjustments:Goodwill (4,687 ) (4,687 ) (4,687 ) Tangible common equity $ 356,267 $ 355,080 $ 383,060 Total assets - GAAP $ 5,711,688 $ 5,571,647 $ 5,851,608 Adjustments:Goodwill (4,687 ) (4,687 ) (4,687 ) Tangible assets $ 5,707,001 $ 5,566,960 $ 5,846,921 Common shares outstanding 8,716,662 8,686,994 8,697,085 Book value per common share $ 41.41 $ 41.41 $ 44.58 Effect of goodwill (0.54 ) (0.54 ) (0.54 ) Tangible book value per common share $ 40.87 $ 40.87 $ 44.04 Total shareholders' equity to assets 6.32 % 6.46 % 6.63 % Effect of goodwill (0.08 %) (0.08 %) (0.08 %) Tangible common equity to tangible assets 6.24 % 6.38 % 6.55 % Total average equity - GAAP $ 374,276 $ 362,183 $ 392,035 Adjustments:Average goodwill (4,687 ) (4,687 ) (4,687 ) Average tangible common equity $ 369,589 $ 357,496 $ 387,348 Return on average shareholders' equity 2.72 % 5.79 % 0.98 % Effect of goodwill 0.03 % 0.08 % 0.01 % Return on average tangible common equity 2.75 % 5.87 % 0.99 % Total interest income $ 75,810 $ 78,054 $ 76,829 Adjustments:Fully-taxable equivalent adjustments1 1,160 1,161 1,169 Total interest income - FTE $ 76,970 $ 79,215 $ 77,998 Net interest income $ 31,598 $ 30,322 $ 25,096 Adjustments:Fully-taxable equivalent adjustments1 1,160 1,161 1,169 Net interest income - FTE $ 32,758 $ 31,483 $ 26,265 Net interest margin 2.36 % 2.22 % 1.82 % Effect of fully-taxable equivalent adjustments1 0.09 % 0.08 % 0.09 % Net interest margin - FTE 2.45 % 2.30 % 1.91 % 1Assuming a 21% tax rateFirst Internet BancorpReconciliation of Non-GAAP Financial MeasuresDollar amounts in thousands, except per share dataThree Months EndedMarch 31December 31March 31 2026 2025 2025 Total revenue - GAAP $ 43,116 $ 41,697 $ 35,523 Adjustments:Loss on sale of loans - 411 - Adjusted total revenue $ 43,116 $ 42,108 $ 35,523 Net income - GAAP $ 2,509 $ 5,289 $ 943 Adjustments:1Provision for credit losses 16,305 11,984 11,933 Income tax (benefit) provision (725 ) 213 (909 ) Pre-provision net revenue $ 18,089 $ 17,486 $ 11,967 Pre-provision net revenue $ 18,089 $ 17,486 $ 11,967 Adjustments:Loss on sale of loans - 411 - Adjusted pre-provision net revenue $ 18,089 $ 17,897 $ 11,967 Noninterest income - GAAP $ 11,518 $ 11,375 $ 10,427 Adjustments:Loss on sale of loans - 411 - Adjusted noninterest income $ 11,518 $ 11,786 $ 10,427 Income before income taxes - GAAP $ 1,784 $ 5,502 $ 34 Adjustments:Loss on sale of loans - 411 - Adjusted income before income taxes $ 1,784 $ 5,913 $ 34 Income tax (benefit) provision - GAAP $ (725 ) $ 213 $ (909 ) Adjustments:1Loss on sale of loans - 86 - Adjusted income tax (benefit) provision $ (725 ) $ 299 $ (909 ) Net income - GAAP $ 2,509 $ 5,289 $ 943 Adjustments:Loss on sale of loans - 325 - Adjusted net income $ 2,509 $ 5,614 $ 943 1Assuming a 21% tax rateFirst Internet BancorpReconciliation of Non-GAAP Financial MeasuresDollar amounts in thousands, except per share dataThree Months Ended March 31 December 31 March 31 2026 2025 2025 Diluted average common shares outstanding 8,774,111 8,769,456 8,784,970 Diluted earnings per share - GAAP $ 0.29 $ 0.60 $ 0.11 Adjustments:Effect of loss on sale of loans - 0.04 - Adjusted diluted earnings per share $ 0.29 $ 0.64 $ 0.11 Return on average assets 0.18 % 0.37 % 0.07 % Effect of loss on sale of loans 0.00 % 0.02 % 0.00 % Adjusted return on average assets 0.18 % 0.39 % 0.07 % Return on average shareholders' equity 2.72 % 5.79 % 0.98 % Effect of loss on sale of loans 0.00 % 0.36 % 0.00 % Adjusted return on average shareholders' equity 2.72 % 6.15 % 0.98 % Return on average tangible common equity 2.75 % 5.87 % 0.99 % Effect of loss on sale of loans 0.00 % 0.36 % 0.00 % Adjusted return on average tangible common equity 2.75 % 6.23 % 0.99 % Tangible common equity $ 356,267 $ 355,080 $ 383,060 Adjustments:Accumulated other comprehensive loss 21,305 20,130 29,157 Adjusted tangible common equity $ 377,572 $ 375,210 $ 412,217 Tangible assets $ 5,707,001 $ 5,566,960 $ 5,846,921 Adjustments:Cash in excess of $300 million (301,805 ) (156,777 ) (94,454 ) Adjusted tangible assets $ 5,405,196 $ 5,410,183 $ 5,752,467 Adjusted tangible common equity $ 377,572 $ 375,210 $ 412,217 Adjusted tangible assets 5,405,196 5,410,183 5,752,467 Adjusted tangible common equity to adjusted tangible assets 6.99 % 6.94 % 7.17 % First Internet Bancorp Reconciliation of Non-GAAP Financial MeasuresDollar amounts in thousands, except per share data Three Months Ended March 31 December 31 March 31 2026 2025 2025 Nonperforming loans to total loans 1.63 % 1.56 % 0.80 % Adjustments:Fully guaranteed balances (0.41 %) (0.36 %) (0.12 %) Adjusted nonperforming loans to total loans 1.22 % 1.20 % 0.68 % Allowance for credit losses - loans to nonperforming loans 91.72 % 95.13 % 137.95 % Adjustments:Fully guaranteed balances 30.73 % 28.84 % 24.87 % Adjusted allowance for credit losses - loans to nonperforming loans 122.45 % 123.97 % 162.82 % Source: First Internet Bancorp