0001562463false00015624632023-10-252023-10-250001562463us-gaap:CommonStockMember2023-10-252023-10-250001562463inbk:A60FixedToFloatingSubordinatedNotesDue2029Member2023-10-252023-10-25

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): October 25, 2023
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 October 25, 2023, First Internet Bancorp (the "Company") issued a press release announcing its financial results for the quarter ended September 30, 2023. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated by reference herein.

On October 26, 2023 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 September 30, 2023. 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:October 25, 2023
FIRST INTERNET BANCORP
By:/s/ Kenneth J. Lovik
Kenneth J. Lovik, Executive Vice President & Chief Financial Officer





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First Internet Bancorp Reports Third Quarter 2023 Results

Fishers, Indiana, October 25, 2023 – First Internet Bancorp (the “Company”) (Nasdaq: INBK), the parent company of First Internet Bank (the “Bank”), announced today financial and operational results for the third quarter ended September 30, 2023.

Third Quarter 2023 Financial Highlights

•Net income of $3.4 million and diluted earnings per share of $0.39

•Deposit growth of $229.2 million, a 5.9% increase from the second quarter of 2023

•Loan growth of $88.2 million, a 2.4% increase from the second quarter of 2023

•The loans to deposits ratio was 91.5%, compared to 94.6% at the prior quarter-end

•Net interest margin of 1.39% and fully-taxable equivalent net interest margin of 1.49%, compared to 1.53% and 1.64%, respectively, for the second quarter of 2023

•Nonperforming loans declined to 0.16% of total loans

•Repurchased 97,834 common shares at an average price of $18.29 per share

•Tangible common equity to tangible assets of 6.64%; CET1 ratio of 9.59%

•Tangible book value per share of $39.57, compared to $39.85 at the prior quarter-end

“We experienced strong deposit growth and bolstered our balance sheet liquidity during the third quarter,” said David Becker, Chairman and Chief Executive Officer. “At the same time, we further optimized our loan portfolio composition and overall balance sheet mix as new origination yields continued to improve while the pace of deposit cost increases and the compression in our net interest margin was the slowest it has been in five quarters.

“Growth in noninterest income was fueled by our SBA lending team, which delivered another strong quarter with gain on sale revenue up 14% from the prior quarter. We ended the SBA fiscal year among the top ten most active lenders. I am proud of the continued success of this team.

“Amidst economic and geopolitical uncertainty, our stalwart foundation remains intact. Overall asset quality is sound. Our capital position is strong. Our teams are focused. We believe we are well-positioned to improve our earnings and profitability profile as funding costs stabilize.”








Net Interest Income and Net Interest Margin
Net interest income for the third quarter of 2023 was $17.4 million, compared to $18.1 million for the second quarter of 2023, and $24.0 million for the third quarter of 2022. On a fully-taxable equivalent basis, net interest income for the third quarter of 2023 was $18.6 million, compared to $19.5 million for the second quarter of 2023, and $25.3 million for the third quarter of 2022.

Total interest income for the third quarter of 2023 was $63.0 million, an increase of 8.4% compared to the second quarter of 2023, and an increase of 61.2% compared to the third quarter of 2022. On a fully-taxable equivalent basis, total interest income for the third quarter of 2023 was $64.3 million, an increase of 8.1% compared to the second quarter of 2023, and an increase of 59.2% compared to the third quarter of 2022. The yield on average interest-earning assets for the third quarter of 2023 increased to 5.02% from 4.89% for the second quarter of 2023 due to a 29 basis point (“bp”) increase in the yield earned on other earning assets, a 9 bp increase in the yield earned on loans, and a 20 bp increase in the yield earned on securities. Compared to the linked quarter, the average balance of other earning assets increased $142.1 million, or 27.8%, while average loan balances increased $44.9 million, or 1.2%, and the average balance of securities increased $18.0 million, or 3.0%.

Interest income earned on commercial loans was higher due to increased average balances and the positive impact of higher rates in the variable rate construction and small business lending portfolios, as well as growth and higher yields on new originations in the franchise finance portfolio. This was partially offset by lower average balances in the public finance, healthcare finance, single tenant lease financing and investor commercial real estate portfolios. The shift in loan mix is the result of a strategic initiative to focus on variable rate and higher-yielding products during a historic period of rapidly rising rates.

In the consumer loan portfolio, interest income was up due to higher yields on new originations and growth in the average balances of trailers, recreational vehicles and other consumer loans portfolios.

The yield on funded portfolio loan originations was 8.92% in the third quarter of 2023, an increase of 50 bps compared to the second quarter of 2023, and an increase of 362 bps compared to the third quarter of 2022. Because certain larger portfolios consist of longer duration fixed-rate loans, new origination yields have a gradual effect on the overall loan portfolio.

Interest earned on cash and other earning asset balances increased $2.4 million, or 36.5%, during the quarter due to the impact of higher short-term interest rates on cash balances as well as a $142.1 million, or 29.6%, increase in average cash balances. Furthermore, interest income earned on securities increased $0.5 million, or 11.0%, during the third quarter of 2023 due to an increase in the yield earned on the portfolio and an increase in average balances. The yield on the securities portfolio increased 20 bps to 3.32%, driven primarily by variable rate securities repricing higher and increased yields on new purchases.

Total interest expense for the third quarter of 2023 was $45.6 million, an increase of $5.7 million, or 14.2%, compared to the linked quarter, due to increases in both deposit rates and average interest-bearing deposit balances throughout the quarter. Interest expense related to interest-bearing deposits increased $5.7 million, or 16.3%, driven primarily by higher costs on CDs, interest-bearing demand deposits and money market accounts. The cost of interest-bearing deposits was 4.09% for the third quarter of 2023, compared to 3.75% for the second quarter of 2023. The pace of increase in deposit costs during the third quarter was the slowest experienced by the Company in the past five quarters.








Average CD balances increased $273.1 million, or 21.2%, while the cost of funds increased 53 bps. Early in the quarter, the Company strategically bolstered its liquidity position ahead of the anticipated Fed Funds rate increase in late July. The average balance of interest-bearing demand deposits increased $27.5 million, or 7.7%, due to higher average Banking-as-a-Service balances, while the cost of funds increased 50 bps.

These increases were partially offset by lower average brokered deposit balances, which decreased $63.6 million, or 8.6%, from the second quarter of 2023, as the Company reduced the balance of higher cost brokered funding over the last two quarters.

Net interest margin (“NIM”) was 1.39% for the third quarter of 2023, down from 1.53% for the second quarter of 2023, and 2.40% for the third quarter of 2022. Fully-taxable equivalent NIM (“FTE NIM”) was 1.49% for the third quarter of 2023, down from 1.64% for the second quarter of 2023, and 2.53% for the third quarter of 2022. The decreases in NIM and FTE NIM compared to the linked quarter were driven primarily by the effect of higher interest-bearing deposit costs, partially offset by higher yields on loans, other earning assets and securities. Higher cash balances, which the Company continued to carry given the volatility in the banking industry over the last several months, were estimated to have negatively impacted both NIM and FTE NIM by 10 to 12 bps.

Noninterest Income
Noninterest income for the third quarter of 2023 was $7.4 million, up $1.5 million, or 26.2%, from the second quarter of 2023, and up $3.1 million, or 71.6%, from the third quarter of 2022. Gain on sale of loans totaled $5.6 million for the third quarter of 2023, up $0.7 million, or 14.4%, from the linked quarter. Gain on sale revenue in the quarter, which consisted entirely of sales of U.S. Small Business Administration (“SBA”) 7(a) guaranteed loans, increased due to a higher volume of loan sales, partially offset by modestly lower net premiums. The Company’s SBA lending team closed out the SBA fiscal year ended September 30, 2023 as the ninth most active 7(a) lender in the nation by loan dollars. Net loan servicing revenue increased $0.3 million during the quarter due to growth in the servicing portfolio as well as a lower fair value adjustment to the loan servicing asset. Other income increased $0.5 million from the prior quarter due primarily to income from fund investments.

Noninterest Expense
Noninterest expense for the third quarter of 2023 was $19.8 million, up $1.1 million, or 5.8%, from the second quarter of 2023, and up $1.8 million, or 9.8%, from the third quarter of 2022. Salaries and employee benefits expense increased $1.1 million, or 9.9%, compared to the second quarter of 2023 due mainly to higher benefit plan costs as well as higher incentive compensation in SBA and construction lending. Loan expenses increased from the linked quarter due to higher third party loan servicing fees and other miscellaneous lending costs. Data processing costs increased due to variable deposit activity-based expenses. These increases were partially offset by declines in premises and equipment, marketing expenses and consulting and professional fees.

Income Taxes
The Company recognized an income tax benefit of $0.3 million for the third quarter of 2023, compared to an income tax benefit of $0.2 million for the second quarter of 2023, and an income tax expense of $1.0 million and an effective tax rate of 10.5% for the third quarter of 2022. The income tax benefit in the third quarter of 2023 reflects the benefit of tax-exempt income relative to the amount of stated pre-tax income.








Loans and Credit Quality
Total loans as of September 30, 2023 were $3.7 billion, an increase of $88.2 million, or 2.4%, compared to June 30, 2023, and an increase of $479.2 million, or 14.7%, compared to September 30, 2022. Total commercial loan balances were $2.9 billion as of September 30, 2023, an increase of $77.2 million, or 2.7%, compared to June 30, 2023, and an increase of $373.2 million, or 14.7%, compared to September 30, 2022. Compared to the linked quarter, the increase in commercial loan balances was driven primarily by strategic growth in higher yielding franchise finance, construction and small business lending balances. These items were partially offset by planned decreases in the fixed-rate public finance, single tenant lease financing and investor commercial real estate portfolios as well as continued runoff in the healthcare finance portfolio.

Total consumer loan balances were $786.5 million as of September 30, 2023, an increase of $13.8 million, or 1.8%, compared to June 30, 2023, and an increase of $114.3 million, or 17.0%, compared to September 30, 2022. The increase compared to the linked quarter was due primarily to higher balances in the trailers, recreational vehicles and other consumer loans portfolios.

Total delinquencies 30 days or more past due were 0.22% of total loans as of September 30, 2023, compared to 0.09% at June 30, 2023, and 0.06% as of September 30, 2022. Nonperforming loans were 0.16% of total loans as of September 30, 2023, compared to 0.17% as of June 30, 2023, and 0.18% as of September 30, 2022. Nonperforming loans totaled $5.9 million at September 30, 2023, down from $6.2 million at June 30, 2023. The decrease was due primarily to an owner-occupied commercial real estate relationship that was returned to accrual status during the third quarter of 2023.

The allowance for credit losses (“ACL”) as a percentage of total loans was 0.98% as of September 30, 2023, compared to 0.99% as of June 30, 2023, and 0.92% as of September 30, 2022. The slight decrease in the ACL reflects the positive impact of economic data on forecasted loss rates and adjustments to qualitative factors on certain portfolios, partially offset by specific reserves placed on certain loans.

Net charge-offs of $1.5 million were recognized during the third quarter of 2023, resulting in net charge-offs to average loans of 0.16%, compared to $1.6 million, or 0.17%, for the second quarter of 2023 and $0.2 million, or 0.02%, for the third quarter of 2022. Net charge-offs during the third quarter of 2023 were driven primarily by small business lending as well as a loss on the sale of a commercial and industrial participation loan executed by the lead bank.

The provision for credit losses in the third quarter was $1.9 million, compared to $1.7 million for the second quarter of 2023 and $0.9 million for the third quarter of 2022. The provision for the quarter was driven primarily by net charge-offs as well as increases in specific reserves and unfunded commitments, partially offset by the positive impact of economic forecasts on certain portfolios.

Capital
As of September 30, 2023, total shareholders’ equity was $347.7 million, a decrease of $6.6 million, or 1.9%, compared to June 30, 2023, and a decrease of $13.1 million, or 3.6%, compared to September 30, 2022. The decrease in shareholders’ equity during the third quarter of 2023 was due primarily to an increase in accumulated other comprehensive loss and stock repurchase activity, partially offset by net income earned during the quarter. Book value per common share was $40.11 as







of September 30, 2023, compared to $40.38 as of June 30, 2023, and $38.84 as of September 30, 2022. Tangible book value per share was $39.57, compared to $39.85 as of June 30, 2023 and $38.34 as of September 30, 2022.

In connection with its previously announced stock repurchase program, the Company repurchased 97,834 shares of its common stock during the third quarter of 2023 at an average price of $18.29 per share. The Company has repurchased $40.7 million of stock under its authorized programs since November of 2021.

The following table presents the Company’s and the Bank’s regulatory and other capital ratios as of September 30, 2023.
As of September 30, 2023
CompanyBank
Total shareholders’ equity to assets 6.73%8.35%
Tangible common equity to tangible assets 1
6.64%8.26%
Tier 1 leverage ratio 2
7.31%8.97%
Common equity tier 1 capital ratio 2
9.59%11.77%
Tier 1 capital ratio 2
9.59%11.77%
Total risk-based capital ratio 2
13.18%12.71%
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, October 26, 2023 to discuss its quarterly financial results. The call can be accessed via telephone at (888) 259-6580; access code: 53091613. A recorded replay can be accessed through November 24, 2023 by dialing (877) 674-7070; access code: 091613.

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 financial holding company with assets of $5.2 billion as of September 30, 2023. 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”. 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,” “help,” “may,” “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, SBA, and franchise finance 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 (benefit) provision, 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 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 AdministrationRyan Hecker
(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 EndedNine Months Ended
September 30,
2023		June 30, 2023September 30,
2022		September 30,
2023		September 30,
2022
Net Income $3,409 3,882 $8,436 $4,274 $29,190 
Per share and share information
Earnings per share - basic$0.39 $0.44 $0.89 $0.48 $3.04 
Earnings per share - diluted0.39 0.44 0.89 0.48 3.01 
Dividends declared per share0.06 0.06 0.06 0.18 0.18 
Book value per common share40.11 40.38 38.84 40.11 38.84 
Tangible book value per common share 1
39.57 39.85 38.34 39.57 38.34 
Common shares outstanding8,669,673 8,774,507 9,290,885 8,669,673 9,290,885 
Average common shares outstanding:
Basic8,744,385 8,903,213 9,458,259 8,889,532 9,615,039 
Diluted8,767,217 8,908,180 9,525,855 8,907,748 9,681,742 
Performance ratios
Return on average assets0.26 %0.32 %0.82 %0.12 %0.94 %
Return on average shareholders' equity3.79 %4.35 %9.01 %1.59 %10.40 %
Return on average tangible common equity 1
3.84 %4.40 %9.13 %1.61 %10.53 %
Net interest margin1.39 %1.53 %2.40 %1.55 %2.52 %
Net interest margin - FTE 1,2
1.49 %1.64 %2.53 %1.66 %2.65 %
Capital ratios 3
Total shareholders' equity to assets6.73 %7.16 %8.46 %6.73 %8.46 %
Tangible common equity to tangible assets 1
6.64 %7.07 %8.36 %6.64 %8.36 %
Tier 1 leverage ratio7.31 %7.63 %9.49 %7.31 %9.49 %
Common equity tier 1 capital ratio9.59 %10.10 %11.72 %9.59 %11.72 %
Tier 1 capital ratio9.59 %10.10 %11.72 %9.59 %11.72 %
Total risk-based capital ratio13.18 %13.87 %15.73 %13.18 %15.73 %
Asset quality
Nonperforming loans$5,885 $6,227 $6,006 $5.885 $6.006 
Nonperforming assets6,069 6,397 6,006 6.069 6.006 
Nonperforming loans to loans0.16 %0.17 %0.18 %0.16 %0.18 %
Nonperforming assets to total assets0.12 %0.13 %0.14 %0.12 %0.14 %
Allowance for credit losses - loans to:
Loans0.98 %0.99 %0.92 %0.98 %0.92 %
Nonperforming loans619.4 %579.1 %497.3 %619.4 %497.3 %
Net charge-offs to average loans0.16 %0.17 %0.02 %0.38 %0.04 %
Average balance sheet information
Loans$3,700,410 $3,653,839 $3,161,850 $3,643,156 $3,036,532 
Total securities622,220 604,182 606,329 604,026 624,995 
Other earning assets653,375 511,295 188,467 499,835 321,262 
Total interest-earning assets4,976,667 4,771,623 3,970,650 4,751,104 4,004,025 
Total assets5,137,474 4,927,712 4,105,688 4,905,910 4,138,866 
Noninterest-bearing deposits127,540 117,496 124,067 126,647 115,142 
Interest-bearing deposits3,911,696 3,713,086 2,961,327 3,680,746 3,016,652 
Total deposits4,039,236 3,830,582 3,085,394 3,807,393 3,131,794 
Shareholders' equity356,701 358,312 371,303 359,405 375,190 

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
September 30,
2023		June 30,
2023		September 30,
2022
Assets
Cash and due from banks$3,595 $9,503 $14,743 
Interest-bearing deposits517,610 456,128 206,309 
Securities available-for-sale, at fair value450,827 379,394 393,565 
Securities held-to-maturity, at amortized cost, net of allowance for credit losses231,928 230,605 191,057 
Loans held-for-sale31,669 32,001 23,103 
Loans3,735,068 3,646,832 3,255,906 
Allowance for credit losses - loans(36,452)(36,058)(29,866)
Net loans3,698,616 3,610,774 3,226,040 
Accrued interest receivable23,761 24,101 16,918 
Federal Home Loan Bank of Indianapolis stock28,350 28,350 28,350 
Cash surrender value of bank-owned life insurance40,619 40,357 39,612 
Premises and equipment, net74,197 73,525 70,747 
Goodwill4,687 4,687 4,687 
Servicing asset9,579 8,252 5,795 
Other real estate owned106 106 — 
Accrued income and other assets53,479 49,266 43,498 
Total assets$5,169,023 $4,947,049 $4,264,424 
Liabilities
Noninterest-bearing deposits$125,265 $119,291 $142,875 
Interest-bearing deposits3,958,280 3,735,017 3,049,769 
Total deposits4,083,545 3,854,308 3,192,644 
Advances from Federal Home Loan Bank614,933 614,931 589,926 
Subordinated debt104,761 104,684 104,456 
Accrued interest payable2,968 3,338 1,887 
Accrued expenses and other liabilities15,072 15,456 14,654 
Total liabilities4,821,279 4,592,717 3,903,567 
Shareholders' equity
Voting common stock185,085 186,545 200,123 
Retained earnings203,856 200,973 199,877 
Accumulated other comprehensive loss(41,197)(33,186)(39,143)
Total shareholders' equity347,744 354,332 360,857 
Total liabilities and shareholders' equity$5,169,023 $4,947,049 $4,264,424 







First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited)
Dollar amounts in thousands, except per share data
Three Months Ended Nine Months Ended
September 30,
2023		June 30,
2023		September 30,
2022		September 30,
2023		September 30,
2022
Interest income
Loans$48,898 $46,906 $34,643 $139,647 $100,246 
Securities - taxable4,301 3,835 2,701 11,742 7,489 
Securities - non-taxable912 860 491 2,570 1,068 
Other earning assets8,904 6,521 1,264 19,211 2,436 
Total interest income63,015 58,122 39,099 173,170 111,239 
Interest expense
Deposits40,339 34,676 10,520 102,285 23,025 
Other borrowed funds5,298 5,301 4,585 15,788 12,790 
Total interest expense45,637 39,977 15,105 118,073 35,815 
Net interest income17,378 18,145 23,994 55,097 75,424 
Provision for credit losses1,946 1,698 892 13,059 2,868 
Net interest income after provision for credit losses15,432 16,447 23,102 42,038 72,556 
Noninterest income
Service charges and fees208 218 248 635 845 
Loan servicing revenue1,064 850 653 2,699 1,858 
Loan servicing asset revaluation(257)(358)(333)(670)(1,100)
Mortgage banking activities— — 871 76 4,454 
Gain on sale of loans5,569 4,868 2,713 14,498 8,510 
Other823 293 164 1,486 883 
Total noninterest income7,407 5,871 4,316 18,724 15,450 
Noninterest expense
Salaries and employee benefits11,767 10,706 10,439 34,267 31,149 
Marketing, advertising and promotion500 705 1,041 2,049 2,717 
Consulting and professional fees552 711 790 2,189 3,912 
Data processing701 520 483 1,880 1,422 
Loan expenses1,336 1,072 1,142 4,385 3,417 
Premises and equipment2,315 2,661 2,808 7,753 7,767 
Deposit insurance premium1,067 936 229 2,546 797 
Other1,518 1,359 1,063 4,311 3,579 
Total noninterest expense19,756 18,670 17,995 59,380 54,760 
Income before income taxes3,083 3,648 9,423 1,382 33,246 
Income tax (benefit) provision(326)(234)987 (2,892)4,056 
Net income$3,409 $3,882 $8,436 $4,274 $29,190 
Per common share data
Earnings per share - basic$0.39 $0.44 $0.89 $0.48 $3.04 
Earnings per share - diluted$0.39 $0.44 $0.89 $0.48 $3.01 
Dividends declared per share$0.06 $0.06 $0.06 $0.18 $0.18 

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







First Internet Bancorp
Average Balances and Rates (unaudited)
Dollar amounts in thousands
Three Months Ended
September 30, 2023June 30, 2023September 30, 2022
Average BalanceInterest / DividendsYield / CostAverage BalanceInterest / DividendsYield / CostAverage BalanceInterest / DividendsYield / Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale 1
$3,701,072 $48,898 5.24 %$3,656,146 $46,906 5.15 %$3,175,854 $34,643 4.33 %
Securities - taxable550,208 4,301 3.10 %531,040 3,835 2.90 %532,470 2,701 2.01 %
Securities - non-taxable72,012 912 5.02 %73,142 860 4.72 %73,859 491 2.64 %
Other earning assets653,375 8,904 5.41 %511,295 6,521 5.12 %188,467 1,264 2.66 %
Total interest-earning assets4,976,667 63,015 5.02 %4,771,623 58,122 4.89 %3,970,650 39,099 3.91 %
Allowance for credit losses - loans(35,601)(36,671)(29,423)
Noninterest-earning assets196,408 192,760 164,461 
Total assets$5,137,474 $4,927,712 $4,105,688 
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits$387,517 $2,131 2.18 %$359,969 $1,509 1.68 %$342,116 $551 0.64 %
Savings accounts26,221 56 0.85 %29,915 64 0.86 %57,700 111 0.76 %
Money market accounts1,230,746 12,537 4.04 %1,274,453 12,314 3.88 %1,369,783 4,581 1.33 %
BaaS - brokered deposits31,891 348 4.33 %22,918 230 4.03 %153,936 859 2.21 %
Certificates and brokered deposits2,235,321 25,267 4.48 %2,025,831 20,559 4.07 %1,037,792 4,418 1.69 %
Total interest-bearing deposits3,911,696 40,339 4.09 %3,713,086 34,676 3.75 %2,961,327 10,520 1.41 %
Other borrowed funds719,655 5,298 2.92 %719,577 5,301 2.95 %637,877 4,585 2.85 %
Total interest-bearing liabilities4,631,351 45,637 3.91 %4,432,663 39,977 3.62 %3,599,204 15,105 1.67 %
Noninterest-bearing deposits127,540 117,496 124,067 
Other noninterest-bearing liabilities21,882 19,241 11,114 
Total liabilities4,780,773 4,569,400 3,734,385 
Shareholders' equity356,701 358,312 371,303 
Total liabilities and shareholders' equity$5,137,474 $4,927,712 $4,105,688 
Net interest income$17,378 $18,145 $23,994 
Interest rate spread1.11 %1.27 %2.24 %
Net interest margin1.39 %1.53 %2.40 %
Net interest margin - FTE 2,3
1.49 %1.64 %2.53 %
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
Nine Months Ended
September 30, 2023September 30, 2022
Average BalanceInterest / DividendsYield / CostAverage BalanceInterest / DividendsYield / Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale 1
$3,647,243 $139,647 5.12 %$3,057,768 $100,246 4.38 %
Securities - taxable531,197 11,742 2.96 %547,759 7,489 1.83 %
Securities - non-taxable72,829 2,570 4.72 %77,236 1,068 1.85 %
Other earning assets499,835 19,211 5.14 %321,262 2,436 1.01 %
Total interest-earning assets4,751,104 173,170 4.87 %4,004,025 111,239 3.71 %
Allowance for credit losses - loans(35,784)(28,671)
Noninterest-earning assets190,590 163,512 
Total assets$4,905,910 $4,138,866 
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits$360,573 $4,540 1.68 %$336,311 $1,429 0.57 %
Savings accounts31,494 202 0.86 %61,647 232 0.50 %
Money market accounts1,293,728 37,151 3.84 %1,416,984 8,006 0.76 %
BaaS - brokered deposits23,246 716 4.12 %79,613 1,019 1.71 %
Certificates and brokered deposits1,971,705 59,676 4.05 %1,122,097 12,339 1.47 %
Total interest-bearing deposits3,680,746 102,285 3.72 %3,016,652 23,025 1.02 %
Other borrowed funds719,577 15,788 2.93 %613,609 12,790 2.79 %
Total interest-bearing liabilities4,400,323 118,073 3.59 %3,630,261 35,815 1.32 %
Noninterest-bearing deposits126,647 115,142 
Other noninterest-bearing liabilities19,535 18,273 
Total liabilities4,546,505 3,763,676 
Shareholders' equity359,405 375,190 
Total liabilities and shareholders' equity$4,905,910 $4,138,866 
Net interest income$55,097 $75,424 
Interest rate spread1.28 %2.39 %
Net interest margin1.55 %2.52 %
Net interest margin - FTE 2,3
1.66 %2.65 %
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
September 30, 2023June 30, 2023September 30, 2022
AmountPercentAmountPercentAmountPercent
Commercial loans
Commercial and industrial$114,265 3.1 %$112,423 3.1 %$104,780 3.2 %
Owner-occupied commercial real estate58,486 1.6 %59,564 1.6 %58,615 1.8 %
Investor commercial real estate129,831 3.5 %137,504 3.8 %91,021 2.8 %
Construction252,105 6.7 %192,453 5.3 %139,509 4.3 %
Single tenant lease financing933,873 25.0 %947,466 25.9 %895,302 27.4 %
Public finance535,960 14.3 %575,541 15.8 %614,139 18.9 %
Healthcare finance235,622 6.3 %245,072 6.7 %293,686 9.0 %
Small business lending 192,996 5.2 %170,550 4.7 %113,001 3.5 %
Franchise finance455,094 12.2 %390,479 10.6 %225,012 6.8 %
Total commercial loans2,908,232 77.9 %2,831,052 77.5 %2,535,065 77.7 %
Consumer loans
Residential mortgage393,501 10.5 %396,154 10.9 %337,565 10.4 %
Home equity23,544 0.6 %24,375 0.7 %22,114 0.7 %
Trailers186,424 5.0 %178,035 4.9 %162,161 5.0 %
Recreational vehicles140,205 3.8 %133,283 3.7 %115,694 3.6 %
Other consumer loans42,822 1.1 %40,806 1.1 %34,657 1.1 %
Total consumer loans786,496 21.0 %772,653 21.3 %672,191 20.8 %
Net deferred loan fees, premiums, discounts and other 1
40,340 1.1 %43,127 1.2 %48,650 1.5 %
Total loans$3,735,068 100.0 %$3,646,832 100.0 %$3,255,906 100.0 %
September 30, 2023June 30, 2023September 30, 2022
AmountPercentAmountPercentAmountPercent
Deposits
Noninterest-bearing deposits$125,265 3.1 %$119,291 3.1 %$142,635 4.5 %
Interest-bearing demand deposits374,915 9.2 %398,899 10.3 %337,765 10.6 %
Savings accounts23,811 0.6 %28,239 0.7 %52,228 1.6 %
Money market accounts1,222,511 29.9 %1,232,719 32.0 %1,378,087 43.2 %
BaaS - brokered deposits41,884 1.0 %25,549 0.7 %96,287 3.0 %
Certificates of deposits1,624,447 39.8 %1,366,409 35.5 %773,040 24.2 %
Brokered deposits 670,712 16.4 %683,202 17.7 %412,602 12.9 %
Total deposits$4,083,545 100.0 %$3,854,308 100.0 %$3,192,644 100.0 %

1 Includes carrying value adjustments of $29.0 million, $30.5 million and 33.9 million related to terminated interest rate swaps associated with public finance loans as of September 30, 2023, June 30, 2023 and September 30, 2022, respectively.








First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
Three Months EndedNine Months Ended
September 30,
2023		June 30,
2023		September 30,
2022		September 30,
2023		September 30,
2022
Total equity - GAAP$347,744 $354,332 $360,857 $347,744 $360,857 
Adjustments:
           Goodwill(4,687)(4,687)(4,687)(4,687)(4,687)
Tangible common equity$343,057 $349,645 $356,170 $343,057 $356,170 
Total assets - GAAP$5,169,023 $4,947,049 $4,264,424 $5,169,023 $4,264,424 
Adjustments:
           Goodwill(4,687)(4,687)(4,687)(4,687)(4,687)
Tangible assets$5,164,336 $4,942,362 $4,259,737 $5,164,336 $4,259,737 
Common shares outstanding8,669,673 8,774,507 9,290,885 8,669,673 9,290,885 
Book value per common share$40.11 $40.38 $38.84 $40.11 $38.84 
Effect of goodwill(0.54)(0.53)(0.50)(0.54)(0.50)
Tangible book value per common share$39.57 $39.85 $38.34 $39.57 $38.34 
Total shareholders' equity to assets6.73 %7.16 %8.46 %6.73 %8.46 %
Effect of goodwill(0.09 %)(0.09 %)(0.10 %)(0.09 %)(0.10 %)
Tangible common equity to tangible assets6.64 %7.07 %8.36 %6.64 %8.36 %
Total average equity - GAAP$356,701 $358,312 $371,303 $359,405 $375,190 
Adjustments:
           Average goodwill(4,687)(4,687)(4,687)(4,687)(4,687)
Average tangible common equity$352,014 $353,625 $366,616 $354,718 $370,503 
Return on average shareholders' equity3.79 %4.35 %9.01 %1.59 %10.40 %
Effect of goodwill0.05 %0.05 %0.12 %0.02 %0.13 %
Return on average tangible common equity3.84 %4.40 %9.13 %1.61 %10.53 %
Total interest income$63,015 $58,122 $39,099 $173,170 $111,239 
Adjustments:
Fully-taxable equivalent adjustments 1
1,265 1,347 1,280 3,995 3,971 
Total interest income - FTE$64,280 $59,469 $40,379 $177,165 $115,210 
Net interest income$17,378 $18,145 $23,994 $55,097 $75,424 
Adjustments:
Fully-taxable equivalent adjustments 1
1,265 1,347 1,280 3,995 3,971 
Net interest income - FTE$18,643 $19,492 $25,274 $59,092 $79,395 
Net interest margin1.39 %1.53 %2.40 %1.55 %2.52 %
Effect of fully-taxable equivalent adjustments 1
0.10 %0.11 %0.13 %0.11 %0.13 %
Net interest margin - FTE1.49 %1.64 %2.53 %1.66 %2.65 %
1Assuming a 21% tax rate







First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
Three Months EndedNine Months Ended
September 30,
2023		June 30,
2023		September 30,
2022		September 30,
2023		September 30,
2022
Total revenue - GAAP$24,785 $24,016 $28,310 $73,821 $90,874 
Adjustments:
     Mortgage-related revenue— — — — — 
Adjusted total revenue$24,785 $24,016 $28,310 $73,821 $90,874 
Noninterest income - GAAP$7,407 $5,871 $4,316 $18,724 $15,450 
Adjustments:
     Mortgage-related revenue— — — (65)— 
Adjusted noninterest income$7,407 $5,871 $4,316 $18,659 $15,450 
Noninterest expense - GAAP$19,756 $18,670 $17,995 $59,380 $54,760 
Adjustments:
     Mortgage-related costs— — — (3,052)— 
     Acquisition-related expenses— — — — (273)
     Write-down of software— — (125)— (125)
     Nonrecurring consulting fee— — — — (875)
     Discretionary inflation bonus— — — — (531)
     Accelerated equity compensation— — — — (289)
Adjusted noninterest expense$19,756 $18,670 $17,870 $56,328 $52,667 
Income before income taxes - GAAP$3,083 $3,648 $9,423 $1,382 $33,246 
Adjustments:1
     Mortgage-related revenue— — — (65)— 
     Mortgage-related costs— — — 3,052 — 
     Partial charge-off of C&I participation loan— — — 6,914 — 
     Acquisition-related expenses— — — — 273 
     Write-down of software— — 125 — 125 
     Nonrecurring consulting fee— — — — 875 
     Discretionary inflation bonus— — — — 531 
     Accelerated equity compensation— — — — 289 
Adjusted income before income taxes$3,083 $3,648 $9,548 $11,283 $35,339 
Income tax (benefit) provision - GAAP$(326)$(234)$987 $(2,892)$4,056 
Adjustments:1
     Mortgage-related revenue— — — (14)— 
     Mortgage-related costs— — — 641 — 
     Partial charge-off of C&I participation loan— — — 1,452 — 
     Acquisition-related expenses— — — — 57 
     Write-down of software— — 26 — 26 
     Nonrecurring consulting fee— — — — 184 
     Discretionary inflation bonus— — — — 112 
     Accelerated equity compensation— — — — 61 
Adjusted income tax (benefit) provision$(326)$(234)$1,013 $(813)$4,496 
Net income - GAAP$3,409 $3,882 $8,436 $4,274 $29,190 
Adjustments:
     Mortgage-related revenue— — — (51)— 
     Mortgage-related costs— — — 2,411 — 
     Partial charge-off of C&I participation loan— — — 5,462 — 
     Acquisition-related expenses— — — — 216 
     Write-down of software— — 99 — 99 
     Nonrecurring consulting fee— — — — 691 
     Discretionary inflation bonus— — — — 419 
     Accelerated equity compensation— — — — 228 
Adjusted net income$3,409 $3,882 $8,535 $12,096 $30,843 
1Assuming a 21% tax rate







First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
Three Months EndedNine Months Ended
September 30,
2023		June 30,
2023		September 30,
2022		September 30,
2023		September 30,
2022
Diluted average common shares outstanding8,767,217 8,908,180 9,525,855 8,907,748 9,681,742 
Diluted earnings per share - GAAP$0.39 $0.44 $0.89 $0.48 $3.01 
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 acquisition-related expenses— — — — 0.02 
    Effect of write-down of software— — 0.01 — 0.01 
    Effect of nonrecurring consulting fee— — — — 0.07 
    Effect of discretionary inflation bonus— — — — 0.04 
    Effect of accelerated equity compensation— — — — 0.02 
Adjusted diluted earnings per share$0.39 $0.44 $0.90 $1.35 $3.17 
Return on average assets0.26 %0.32 %0.82 %0.12 %0.94 %
    Effect of mortgage-related revenue0.00 %0.00 %0.00 %0.00 %0.00 %
    Effect of mortgage-related costs0.00 %0.00 %0.00 %0.07 %0.00 %
    Effect of partial charge-off of C&I participation loan0.00 %0.00 %0.00 %0.15 %0.00 %
    Effect of acquisition-related expenses0.00 %0.00 %0.00 %0.00 %0.01 %
    Effect of write-down of software0.00 %0.00 %0.01 %0.00 %0.00 %
    Effect of nonrecurring consulting fee0.00 %0.00 %0.00 %0.00 %0.02 %
    Effect of discretionary inflation bonus0.00 %0.00 %0.00 %0.00 %0.01 %
    Effect of accelerated equity compensation0.00 %0.00 %0.00 %0.00 %0.01 %
Adjusted return on average assets0.26 %0.32 %0.83 %0.34 %0.99 %
Return on average shareholders' equity3.79 %4.35 %9.01 %1.59 %10.40 %
    Effect of mortgage-related revenue0.00 %0.00 %0.00 %(0.02 %)0.00 %
    Effect of mortgage-related costs0.00 %0.00 %0.00 %0.90 %0.00 %
    Effect of partial charge-off of C&I participation loan0.00 %0.00 %0.00 %2.03 %0.00 %
    Effect of acquisition-related expenses0.00 %0.00 %0.00 %0.00 %0.08 %
    Effect of write-down of software0.00 %0.00 %0.11 %0.00 %0.04 %
    Effect of nonrecurring consulting fee0.00 %0.00 %0.00 %0.00 %0.25 %
    Effect of discretionary inflation bonus0.00 %0.00 %0.00 %0.00 %0.15 %
    Effect of accelerated equity compensation0.00 %0.00 %0.00 %0.00 %0.08 %
Adjusted return on average shareholders' equity3.79 %4.35 %9.12 %4.50 %11.00 %
Return on average tangible common equity3.84 %4.40 %9.13 %1.61 %10.53 %
    Effect of mortgage-related revenue0.00 %0.00 %0.00 %(0.02 %)0.00 %
    Effect of mortgage-related costs0.00 %0.00 %0.00 %0.91 %0.00 %
    Effect of partial charge-off of C&I participation loan0.00 %0.00 %0.00 %2.06 %0.00 %
    Effect of acquisition-related expenses0.00 %0.00 %0.00 %0.00 %0.08 %
    Effect of write-down of software0.00 %0.00 %0.11 %0.00 %0.04 %
    Effect of nonrecurring consulting fee0.00 %0.00 %0.00 %0.00 %0.25 %
    Effect of discretionary inflation bonus0.00 %0.00 %0.00 %0.00 %0.15 %
    Effect of accelerated equity compensation0.00 %0.00 %0.00 %0.00 %0.08 %
Adjusted return on average tangible common equity3.84 %4.40 %9.24 %4.56 %11.13 %






Financial Results Third Quarter 2023 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, SBA, and franchise finance 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 income, 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 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

 
Third Quarter 2023 Highlights  Net income of $3.4 million  Diluted earnings per share of $0.39 3  Net interest margin of 1.39% and FTE net interest margin of 1.49%1  Pace of increase in deposit costs slowed to lowest point in past five quarters  Total deposits increased 5.9% from 2Q23  Total portfolio loan balances increased 2.4% from 2Q23  Capital position remains solid  TCE / TA of 6.64%1; CET1 ratio of 9.59%  SBA gain on sale revenue of $5.6 million  NPAs to total assets improved to 0.12%  Office CRE less than 1% of total loans  Excluding AOCI and adjusting for normalized cash balances, adjusted TCE / TA was 7.77%1  Repurchased 97,834 shares at an average price of $18.29 under authorized repurchase program 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix  Total revenue increased to $24.8 million  Noninterest expense to average assets of 1.53%  Tangible book value per share of $39.57  Yield on loans funded in 3Q23 increased to 8.92%, up 50 bps from 2Q23, under loan portfolio optimization strategy  Loans to deposits ratio declined to 91.5%

 
Loan Portfolio Overview  Total portfolio loan balances increased 2.4% from 2Q23  Commercial loan balances increased $77.2 million, or 2.7%, compared to 2Q23  Consumer loan balances increased $13.8 million, or 1.8%, compared to 2Q23  3Q23 funded portfolio loan origination yields were up 50 bps from 2Q23 and 362 bps from 3Q22  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% 10% 9% 9% 16% 16% 11% 8% 7% 12%3% 9% 1% 2% 4% 4% 4% 2% 4% 11% 17% 13% 8% 22% 26% 24% 20% 21% 18% 38% 34% 34% 31% 30% 27% 2% 2% 2% 4% 6% 8% 9% 7% 6% 6% 6% 5% $2,091 $2,716 $2,964 $3,059 $2,888 $3,499 $3,735 2017 2018 2019 2020 2021 2022 3Q23 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 5% 27% 8% 17% 7% 4% 12% 11% 9%

 
$1,696.8 42%$996.0 24% $367.3 9% $244.3 6% $162.4 4% $616.7 15% Consumer Small Business Commercial Public Funds BaaS Brokered2 $123.5 3% $256.1 6% $23.8 1% $419.8 10% $802.8 19% $162.4 4% $1,624.4 39% $670.7 18% Noninterest-bearing deposits Interest-bearing demand deposits Savings accounts Money market - Consumer Money market - SMB/Commercial BaaS deposits Certificates of deposits Brokered deposits Deposit Composition 5  Total deposits increased $229.2 million, or 5.9%, from 2Q23 and are up 27.9% from 3Q22  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  Quarterly deposit growth driven by CD production priced ahead of Fed Funds increase in July and deposit maturities in 4Q23 1 Money market – SMB/Commercial includes small business, commercial, CRE and public funds 2 Public funds includes $54.0 million of deposits that are classified as brokered for regulatory purposes 1 Deposits by Customer Type - 9/30/23 Dollars in millions Total Deposits - $4.1B as of 9/30/23 Dollars in millions Average Balance (Dollars in thousands) $44.7 $100.0 $215.3 $649.9 $44.9

 
Uninsured Deposit Balances 6  Estimated uninsured deposit balances represent 23% of total deposits, down from 24% in 2Q23 – Decrease driven primarily by new production in balances under the insured limit  Uninsured balances include Indiana-based Public Funds which are insured by the Indiana Board for Depositories and neither require collateral nor are reported as “Preferred Deposits” on the Bank’s call report  Uninsured balances also include certain large balance accounts under contractual deposit agreements that only allow withdrawal under certain conditions Estimated Uninsured Deposits Public Funds Contractual Deposits Adjusted Uninsured Deposits Uninsured Deposits Waterfall – 3Q23 Dollars in millions 23% of Total Deposits 17% of Total Deposits

 
Liquidity and 3Q23 Deposit Update 7  Cash and unused borrowing capacity totaled $1.7 billion at quarter end – Cash balances up over $55 million since 2Q23 – Currently represents 182% of total uninsured deposits and 244% of adjusted uninsured deposits  CD production drove increased balance sheet liquidity  Strong deposit growth lowered the loans to deposits ratio to 91.5% 1 Money market – SMB/Commercial includes small business, commercial, CRE and public funds Cost of Funds by Deposit TypeTotal Deposits – Recent Activity Dollars in millions 4% 3% 3%8% 7% 6%1% 1% 1% 13% 11% 10% 22% 21% 20% 2% 4% 4% 50% 53% 56% 3/31/23 6/30/23 9/30/23 Noninterst-bearing deposits Interest-bearing demand deposits Savings accounts Money market - Consumer Money market - SMB/Commercial BaaS deposits Certificates and brokered deposits 1 $3,622.3 $3,854.3 $4,083.5 3Q23 2Q23 1Q23 Interest-bearing demand deposits 2.18% 1.68% 1.09% Savings accounts 0.85% 0.86% 0.86% Money market accounts 4.04% 3.88% 3.62% BaaS – brokered deposits 4.33% 4.03% 3.80% Certificates of deposits 4.37% 3.84% 3.12% Brokered deposits 4.74% 4.47% 3.93% Total interest-bearing deposits 4.09% 3.75% 3.24%

 
Net Interest Income and Net Interest Margin  Net interest income on a GAAP and FTE basis were down 4.2% and 4.4%, respectively, from 2Q23  Improved loan mix and higher origination yields were offset by higher funding costs  Total loan portfolio yield impacted by loan beta lag effect on fixed rate portfolios  Pace of increase in deposit costs slowest in past five quarters 8 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 4.33% 4.72% 4.96% 5.15% 5.24% 1.41% 2.45% 3.24% 3.75% 4.09% 3Q22 4Q22 1Q23 2Q23 3Q23 Yield on loans Cost of interest-bearing deposits $24.0 $21.7 $19.6 $18.1 $17.4 $25.3 $23.1 $21.0 $19.5 $18.6 3Q22 4Q22 1Q23 2Q23 3Q23 GAAP FTE 2.40% 2.09% 1.76% 1.53% 1.39% 2.53% 2.22% 1.89% 1.64% 1.49% 3Q22 4Q22 1Q23 2Q23 3Q23 GAAP FTE Net Interest Income – GAAP and FTE1 Dollars in millions

 
Net Interest Margin Drivers 9 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 NIM decreased 15 bps, due primarily to higher deposit costs, partially offset by higher earning asset yields – Weighted average yield of 8.92% on funded portfolio originations during 3Q23, up 50 bps from 2Q23 – Other earning assets and securities yields increased 29 and 20 bps, respectively, from 2Q23  Deposit costs increased 34 bps from 2Q23 to 4.09% for 3Q23 – Strong deposit growth continued to outpace loan growth to provide greater liquidity – Carrying higher cash balances estimated to have negatively impacted NIM and FTE NIM by 10 - 12 bps +16 bps -4 bps - 29 bps 1.64% 1.49% +2 bps 2.10% 2.50% 2.75% 3.06% 3.26% 3.39% 3.59% 3.79% 3.85% 3.98% 4.13% 4.16% 3.08% 3.83% 4.33% 4.33% 4.58% 4.83% 4.83% 5.08% 5.08% 5.33% 5.33% 5.33% Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Int. Bearing Deposits Fed Funds Effective

 
Noninterest Income 10 Dollars in millions Noninterest Income by Type Dollars in millions Noninterest Income by Quarter  Noninterest income of $7.4 million, up 26%, compared to $5.9 million in 2Q23  Gain on sale of loans of $5.6 million, up 14.4%, compared to $4.9 million in 2Q23 – SBA loan sale volume increased 22.1% compared to 2Q23 – Net gain on sale premiums declined by 38 bps from 2Q23  Other income increased $0.5 million due to income from fund investments $0.2 $0.8 $5.6 $0.8 Service charges and fees Net loan servicing revenue Gain on sale of loans Other $4.3 $5.8 $5.4 $5.9 $7.4 3Q22 4Q22 1Q23 2Q23 3Q23

 
Noninterest Expense 11 1 3Q22 noninterest expense includes a $0.1 million write-down of software; see Reconciliation of Non-GAAP Financial Measures in the Appendix 2 1Q23 noninterest expense includes $3.1 million of mortgage operations and exit costs; 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% 1.74% 1.72% 1.83% 1.52% 1.53% 3Q22 4Q22 1Q23 2Q23 3Q23 Core Non-core items 1 1.73% 1.56% 2 $18.0 $18.5 $18.7 $19.8 3Q22 4Q22 1Q23 2Q23 3Q23 Core Non-core items $17.9 $21.0 1 2 $17.9  Noninterest expense of $19.8 million, compared to $18.7 million in 2Q23  Salaries and employee benefits expense reflects higher SBA and construction incentive compensation  Increase in loan expenses driven by higher loan production and third party loan servicing fees  Lower noninterest expense to average assets reflects the cost savings from exiting the mortgage business in 1Q23

 
Asset Quality  Allowance for credit losses to total loans of 0.98% in 3Q23, down 1 bp from 2Q23  Quarterly provision for credit losses was $1.9 million, compared to $1.7 million in 2Q23  Net charge-offs to average loans of 0.16%, compared to 0.17% in 2Q23  Nonperforming loans decreased $0.3 million from 2Q23  Delinquencies 30 days or more past due of 0.22%, compared to 0.09% in 2Q23 12 0.18% 0.22% 0.26% 0.17% 0.16% 3Q22 4Q22 1Q23 2Q23 3Q23 0.14% 0.17% 0.20% 0.13% 0.12% 3Q22 4Q22 1Q23 2Q23 3Q23 NPLs to Total Loans NPAs to Total Assets Net Charge-Offs to Avg. Loans 0.02% 0.03% 0.82% 0.17% 0.16% 3Q22 4Q22 1Q23 2Q23 3Q23

 
Capital  Tangible common equity to tangible assets decreased 43 bps to 6.64%1 from 2Q23 – Impacted by deposit growth and increase in cash balances; expect smaller balance sheet in 4Q23 with deposit maturities  Tangible book value per share of $39.57, relatively consistent with $39.85 in 2Q231  Repurchased 97,834 shares at an average price per share of $18.29 during 3Q23  Since 4Q21, 1,364,978 shares have been purchased at an average price per share of $29.83 13 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 6.73% 8.35% Tangible common equity to tangible assets1 6.64% 8.26% Tier 1 leverage ratio 7.31% 8.97% Common equity tier 1 capital ratio 9.59% 11.77% Tier 1 capital ratio 9.59% 11.77% Total risk-based capital ratio 13.18% 12.71% $26.09 $27.93 $30.82 $33.29 $38.51 $39.74 $39.57 2017 2018 2019 2020 2021 2022 3Q23 Tangible Book Value Per Share1 Regulatory Capital Ratios – September 30, 20232

 
Pro Forma Capital Impact of Unrealized Securities Losses  Limited deployment of excess liquidity into the securities portfolio during the low-rate environment in 2020 and 2021  Over 66% of securities are classified as available-for-sale and reported on the balance sheet at market value  Capital ratios at both the holding company and bank, adjusted for all unrealized securities losses, remain well above regulatory minimum requirements  Total after-tax unrealized securities losses represent 19.6% of tangible equity 14 10.06% 7.89% 7.00% 11.77% 9.59% Minimum Capital Required First Internet Bank First Internet Bancorp 11.00% 11.48% 10.50% 12.71% 13.18% Minimum Capital Required First Internet Bank First Internet Bancorp Basel III Reported Adjusted 1 Regulatory capital ratios are preliminary pending filing of the Company’s and Bank’s regulatory reports 2 Adjusted for unrealized losses, after tax Common Equity Tier 1 Capital Ratios 1 Total Capital Ratios 1 Tangible Common Equity / Tangible Assets As of 9/30/23 As of 9/30/23 As of 9/30/23 7.87% 6.24% 8.26% 6.64% First Internet Bank First Internet Bancorp 2

 
Small Business Lending  $193.0 million in balances as of September 30, 2023  Nationwide platform providing growth capital to entrepreneurs and small business owners  Originations year-to-date 2023 up 165% over year-to-date September 30, 2022  9th largest Small Business Administration 7(a) lender for the SBA’s 2023 fiscal year 15 1 Excludes PPP loans Managed SBA 7(a) Loans1 Portfolio Mix by State Portfolio Mix by Major Industry 23% 17% 14% 14% 12% 20% Retail Trade Services Manufacturing Accommodation and Food Services Construction Other 14% 14% 11% 11%8% 7% 35% MI TX CA FL IL IN Other

 
Franchise Finance  $455.1 million in balances as of September 30, 2023  Focused on providing growth financing to franchisees in a variety of industry segments  Strong historical credit performance to date  Average loan size of $0.9 million 16 Portfolio Mix by Borrower Use Portfolio Mix by State Portfolio Mix by Brand 1 18% 15% 14% 12% 9% 5% 27% Limited-Service Restaurants Indoor Recreation Beauty Salons Full-Service Restaurants Fitness and Recreational Sports Centers Other Personal Care Services Other 15% 13% 6% 6% 5% 4% 4% 47% TX CA MI FL GA PA NC Other 10% 10% 7% 6% 4% 4% 59% Urban Air Adventure Park Scooter's Coffee My Salon Suite Goldfish Swim School Crumbl Cookies Restore Cryotherapy Other

 
Construction and Investor Commercial Real Estate  $381.9 million in combined balances as of September 30, 2023  Average current loan balance of $5.6 million for investor CRE  Average commitment sizes for construction – Commercial construction/development: $21.4 million – Residential construction/development: $2.1 million 17 Portfolio by Loan Type Portfolio Mix by State Portfolio Mix by Major Industry  Unfunded commitments as of September 30th, 2023, up from 2Q23 – Commercial construction/development: $486.4 million – Residential construction/development: $41.0 million  Minimal office exposure; 3.4% of combined balances consisting of suburban and medical office space 54% 32% 14% Commercial Construction/ Development Investor Commercial Real Estate Residential Construction/ Development 31% 26% 17% 8% 5% 3% 3% 3% 2% 2% Multifamily/Mixed Use Industrial Warehouse Hospitality Residential Land Development Senior Living Residential Construction Suburban & Medical Office Commercial Land Other Retail 84% 9% 3% 2%1% 1% IN AZ KY OH CA SC

 
Single Tenant Lease Financing  $933.9 million in balances as of September 30, 2023  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 18 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 27% 23%19% 12% 6% 5% 5% 3% Quick Service Restaurants Auto Parts/ Repair/Car Wash Full Service Restaurants Convenience/Fuel Pharmacies Dollar Stores Specialty Retailers Other 6% 6% 5% 5% 4% 4% 4% 3% 3% 2% 58% Tidal Wave Burger King Wendy's Caliber Collision Red Lobster Dollar General ICWG Bob Evans Walgreens CVS Other 10% 24% 22% 39% 5%

 
4%2% 4% 5% 23% 7% 6% 2%1% 1% 3% 42% AAA/Aaa AA+/Aa1 AA/Aa2 AA-/Aa3 A+/A1 A/A2 A-/A3 BBB+/Baa1 BBB/Baa2 BB+/Ba1 BB/Ba2 Non-Rated 35% 14%14% 10% 6% 6% 3% 3% 1% 1% 7% General Obligation Essential use equipment loans Lease rental revenue Utilities Revenue Public higher ed facilities - Revenue Tax Incremental Financing (TIF) districts Sales tax, food and bev tax, hotel tax Income Tax supported loans Short term cash flow fin (BAN) - G.O. Municipally owned health care facilities Others 59% 6% 5% 4% 4% 4% 3% 2% 13% IN OK IA OH MO MI GA MS Other Public Finance  $536.0 million in balances as of September 30, 2023  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 19  No delinquencies or losses since inception Portfolio Mix by Repayment Source Borrower Mix by Credit Rating Portfolio Mix by State

 
Healthcare Finance  $235.6 million in balances as of September 30, 2023  Average loan size of $476,000  No delinquencies in this portfolio 20 Portfolio Mix by Borrower Use Portfolio Mix by Borrower Portfolio Mix by State 76% 18% 5% 1% Practice Refi or Acqu Owner Occupied CRE Project Equipment and Other 86% 9% 5% Dentists Veterinarians Other 31% 12% 6% 4% 4% 3% 3% 37% CA TX FL NY AZ WA IL Other

 
C&I and Owner-Occupied Commercial Real Estate  $172.8 million in combined balances as of September 30, 2023  Current C&I LOC utilization of 46%  Average loan sizes  C&I: $651,000  Owner-occupied CRE: $821,000 21 Portfolio by Loan Type Portfolio Mix by State Portfolio Mix by Major Industry 49% 34% 17% C&I - Term Loans Owner Occupied CRE C&I - Lines of Credit 38% 28% 7% 6% 4% 17% IN AZ KS IL NY Other 26% 21% 19% 14% 13% 7% Other Construction Services Manufacturing Real Estate and Rental and Leasing Health Care and Social Assistance  Minimal office exposure; 2.0% of combined loan balances consisting of suburban office space

 
Residential Mortgage  $417.0 million in balances as of September 30, 2023 (includes home equity balances)  Historically direct-to-consumer originations centrally located at corporate headquarters  Focused on high quality borrowers – Average loan size of $206,000 – Average credit score at origination of 742 – Average LTV at origination of 80%  Strong historical credit performance 22 Concentration by State Concentration by Loan TypeNational Portfolio with Midwest Concentration 15% 3% 72% 5% 5% 70% 12% 2% 2% 2% 12% Indiana California Florida Texas New York All other states 90% 5% 4% 1% Single Family Residential SFR Construction to Permanent Home Equity – LOC Home Equity – Closed End

 
23% 21% 18% 28% 10% Specialty Consumer  $369.5 million in balances as of September 30, 2023  Direct-to-consumer and nationwide dealer network originations  Focused on high quality borrowers – Average credit score at origination of 778 – Average loan size of $25,000  Strong historical credit performance Concentration by State Concentration by Loan TypeGeographically Diverse Portfolio 23 14% 11% 6% 4% 4% 61% Texas California Florida North Carolina Arizona All other states 51% 38% 11% Trailers Recreational Vehicles Other Consumer

 
24 Appendix

 
Loan Portfolio Composition 25 1 Includes carrying value adjustments of $29.0 million, $30.5 million, $31.5 million, $32.5 million, $37.5 million and $42.7 million related to terminated interest rate swaps associated with public finance loans as of September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, December 31, 2021 and December 31, 2020, respectively. Dollars in thousands 2020 2021 2022 1Q23 2Q23 3Q23 Commercial loans Commercial and industrial 75,387$ 96,008$ 126,108$ 113,198$ 112,423$ 114,265$ Owner-occupied commercial real estate 89,785 66,732 61,836 59,643 59,564 58,486 Investor commercial real estate 13,902 28,019 93,121 142,174 137,504 129,831 Construction 110,385 136,619 181,966 158,147 192,453 252,105 Single tenant lease financing 950,172 865,854 939,240 952,533 947,466 933,873 Public finance 622,257 592,665 621,032 604,898 575,541 535,960 Healthcare finance 528,154 387,852 272,461 256,670 245,072 235,622 Small business lending 125,589 108,666 123,750 136,382 170,550 192,996 Franchise finance - 81,448 299,835 382,161 390,479 455,094 Total commercial loans 2,515,631 2,363,863 2,719,349 2,805,806 2,831,052 2,908,232 Consumer loans Residential mortgage 186,787 186,770 383,948 392,062 396,154 393,501 Home equity 19,857 17,665 24,712 26,160 24,375 23,544 Trailers 144,493 146,267 167,326 172,640 178,035 186,424 Recreational vehicles 94,405 90,654 121,808 128,307 133,283 140,205 Other consumer loans 36,794 28,557 35,464 37,186 40,806 42,822 Total consumer loans 482,336 469,913 733,258 756,355 772,653 786,496 Net def. loan fees, prem., disc. and other 1 61,264 53,886 46,794 45,081 43,127 40,340 Total loans 3,059,231$ 2,887,662$ 3,499,401$ 3,607,242$ 3,646,832$ 3,735,068$

 
Reconciliation of Non-GAAP Financial Measures 26 Dollars in thousands, except for per share data 2016 2017 2018 2019 2020 2021 2022 3Q23 Total equity - GAAP $153,942 $224,127 $288,735 $304,913 $330,944 $380,338 $364,974 $347,744 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) Tangible common equity $149,255 $219,440 $284,048 $300,226 $326,257 $375,651 $360,287 $343,057 Common shares outstanding 6,478,050 8,411,077 10,170,778 9,741,800 9,800,569 9,754,455 9,065,883 8,669,673 Book value per common share $23.76 $26.65 $28.39 $31.30 $33.77 $38.99 $40.26 $40.11 Effect of goodwill (0.72) (0.56) (0.46) (0.48) (0.48) (0.48) (0.52) (0.54) Tangible book value per common share $23.04 $26.09 $27.93 $30.82 $33.29 $38.51 $39.74 $39.57

 
Reconciliation of Non-GAAP Financial Measures 27 1 Assuming a 21% tax rate Dollars in thousands, except for per share data 3Q22 4Q22 1Q23 2Q23 3Q23 Total equity - GAAP $360,857 $364,974 $355,572 $354,332 $347,744 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) Tangible common equity $356,170 $360,287 $350,885 $349,645 $343,057 Total assets - GAAP $4,264,424 $4,543,104 $4,721,319 $4,947,049 $5,169,023 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) Tangible assets $4,259,737 $4,538,417 $4,716,632 $4,942,362 $5,164,336 Common shares outstanding 9,290,885 9,065,883 8,943,477 8,774,507 8,669,673 Book value per common share $38.84 $40.26 $39.76 $40.38 $40.11 Effect of goodwill (0.50) (0.52) (0.53) (0.53) (0.54) Tangible book value per common share $38.34 $39.74 $39.23 $39.85 $39.57 Total shareholders' equity to assets 8.46% 8.03% 7.53% 7.16% 6.73% Effect of goodwill (0.10%) (0.09%) (0.09%) (0.09%) (0.09%) Tangible common equity to tangible assets 8.36% 7.94% 7.44% 7.07% 6.64% Total interest income $39,099 $45,669 $52,033 $58,122 $63,015 Adjustments: Fully-taxable equivalent adjustments 1 1,280 1,384 1,383 1,347 1,265 Total interest income - FTE $40,379 $47,053 $53,416 $59,469 $64,280 Net interest income $23,994 $21,669 $19,574 $18,145 $17,378 Adjustments: Fully-taxable equivalent adjustments 1 1,280 1,384 1,383 1,347 1,265 Net interest income - FTE $25,274 $23,053 $20,957 $19,492 $18,643 Net interest margin 2.40% 2.09% 1.76% 1.53% 1.39% Adjustments: Effect of fully-taxable equivalent adjustments 1 0.13% 0.13% 0.13% 0.11% 0.10% Net interest margin - FTE 2.53% 2.22% 1.89% 1.64% 1.49%

 
Reconciliation of Non-GAAP Financial Measures 28 Dollars in thousands, except for per share data 3Q22 4Q22 1Q23 2Q23 3Q23 Noninterest income $4,314 $5,807 $5,446 $5,871 $7,407 Adjustments: Mortgage-related revenue - - (65) - - Adjusted noninterest income $4,314 $5,807 $5,381 $5,871 $7,407 Noninterest expense $17,995 $18,513 $20,954 $18,670 $19,756 Adjustments: Write-down of software (125) - - - - Mortgage-related costs - - (3,052) - - Adjusted noninterest expense $17,870 $18,513 $17,902 $18,670 $19,756 Noninterest expense to average assets 1.74% 1.72% 1.83% 1.52% 1.53% Effect of write-down of software (0.01%) 0.00% 0.00% 0.00% 0.00% Effect of mortgage-related costs 0.00% 0.00% (0.27%) 0.00% 0.00% Adjusted noninterest expense to average assets 1.73% 1.72% 1.56% 1.52% 1.53%

 
Reconciliation of Non-GAAP Financial Measures 29 1 Assuming a 21% tax rate Dollars in thousands, except for per share data 3Q22 4Q22 1Q23 2Q23 3Q23 Income (loss) before income taxes - GAAP 9,423$ 6,854$ (5,349)$ 3,648$ 3,083$ Adjustments: Mortgage-related revenue - - (65) - - Mortgage-related costs - - 3,052 - - Effect of write-down of software 125 - - - - Partial charge-off of C&I participation loan - - 6,914 - - Adjusted income before income taxes $9,548 $6,854 $4,552 $3,648 $3,083 Income tax provision (benefit) - GAAP 987$ 503$ (2,332)$ (234)$ (326)$ Adjustments:1 Mortgage-related revenue - - (14) - - Mortgage-related costs - - 641 - - Write-down of software 26 - - - - Partial charge-off of C&I participation loan - - 1,452 - - Adjusted income tax provision (benefit) 1,013$ 503$ (253)$ (234)$ (326)$ Net income (loss) - GAAP $8,436 $6,351 (3,017)$ 3,882$ 3,409$ Adjustments: Mortgage-related revenue - - (51) - - Mortgage-related costs - - 2,411 - - Write-down of software (26) - - - - Partial charge-off of C&I participation loan - - 5,462 - - Adjusted net income $8,410 $6,351 $4,805 $3,882 $3,409 Diluted average common shares outstanding 9,525,855 9,343,533 9,024,072 8,908,180 8,767,217 Diluted earnings (loss) per share - GAAP 0.89$ 0.68$ (0.33)$ 0.44$ 0.39$ Adjustments: Effect of mortgage-related revenue - - (0.01) - - Effect of mortgage-related costs - - 0.27 - - Effect of write-down of software 0.01 - - - - Effect of partial charge-off of C&I participation loan - - 0.60 - - Adjusted diluted earnings per share $0.90 $0.68 $0.53 $0.44 $0.39

 
Reconciliation of Non-GAAP Financial Measures 30 Dollars in thousands 3Q23 Tangible common equity $343,057 Adjustments: Accumulated other comprehensive loss 41,197 Adjusted tangible common equity $384,254 Tangible assets $5,164,336 Adjustments: Cash in excess of $300 million (221,205) Adjusted tangible assets $4,943,131 Adjusted tangible common equity $384,254 Adjusted tangible assets $4,943,131 Adjusted tangible common equity to adjusted tangible assets 7.77%

 
v3.23.3
Cover
Oct. 25, 2023
Class of Stock [Line Items]  
Document Type 8-K
Document Period End Date Oct. 25, 2023
Entity Registrant Name First Internet Bancorp
Entity Incorporation, State or Country Code IN
Entity File Number 001-35750
Entity Tax Identification Number 20-3489991
Entity Address, Address Line One 8701 E. 116th Street
Entity Address, City or Town Fishers
Entity Address, State or Province IN
Entity Address, Postal Zip Code 46038
City Area Code 317
Local Phone Number 532-7900
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001562463
Amendment Flag false
Common Stock  
Class of Stock [Line Items]  
Title of 12(b) Security Common Stock, without par value
Trading Symbol INBK
Security Exchange Name NASDAQ
6.0% Fixed to Floating Subordinated Notes due 2029  
Class of Stock [Line Items]  
Title of 12(b) Security 6.0% Fixed to Floating Subordinated Notes due 2029
Trading Symbol INBKZ
Security Exchange Name NASDAQ
First Internet Bancorp (NASDAQ:INBK)
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