0001562463false00015624632024-01-242024-01-240001562463us-gaap:CommonStockMember2024-01-242024-01-240001562463inbk:A60FixedToFloatingSubordinatedNotesDue2029Member2024-01-242024-01-24

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

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

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

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

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

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

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

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

                                    Emerging growth company ☐

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


Item 2.02 Results of Operations and Financial Condition

On January 24, 2024, First Internet Bancorp (the "Company") issued a press release announcing its financial results for the quarter and year ended December 31, 2023. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated by reference herein.

On January 25, at 2:00 p.m. (Eastern Time), the Company will host a conference call and webcast to discuss financial results for the quarter and year ended December 31, 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

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:January 24, 2024
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 Fourth Quarter and Full Year 2023 Results

Fishers, Indiana, January 24, 2024 – First Internet Bancorp (the “Company”) (Nasdaq: INBK), the parent company of First Internet Bank (the “Bank”), announced today financial and operational results for the fourth quarter and full year ended December 31, 2023.

Fourth Quarter 2023 Financial Highlights

•Net income of $4.1 million and diluted earnings per share of $0.48, increases of 21.5% and 23.1%, respectively, from the third quarter of 2023

•Net interest income of $19.8 million and fully-taxable equivalent net interest income of $21.0 million, increases of 14.0% and 12.9%, respectively, from the third quarter of 2023

•Net interest margin of 1.58% and fully-taxable equivalent net interest margin of 1.68%, both increasing 19 basis points from the third quarter of 2023

•Loan growth of $105.2 million, a 2.8% increase from the third quarter of 2023

•Nonperforming loans to total loans of 0.26%; net charge-offs to average loans of 0.12%

•Tangible common equity to tangible assets of 6.94%; CET1 ratio of 9.60%

•Repurchased 40,000 shares at an average price of $18.78; for the full year, repurchased 502,525 common shares at an average price of $18.40 per share

•Tangible book value per share of $41.43, a 4.7% increase from the third quarter of 2023


David Becker, Chairman and Chief Executive Officer, commented: “The fourth quarter’s results showcase our efforts over the past 18 months to reposition our balance sheet. With asset yields continuing to reprice higher, coupled with solid loan growth, we delivered welcome net interest margin expansion and net interest income growth. We produced positive operating leverage and a significant improvement in our operating efficiency. In all, we believe this quarter’s results represent an important inflection point for our company.

“We continued to optimize our loan portfolio mix in the fourth quarter, with solid production in construction and franchise finance lending. Additionally, we remain one of the ten most active SBA 7(a) lenders in the country. Our SBA lending team finished the year with impressive origination volumes and generated another record quarter of gain on sale revenue.

“With or without anticipated rate cuts, we are well-positioned to continue to improve our earnings and profitability in 2024. Now less than one month away from the 25th anniversary of our public launch, we are in an enviable position to start our second quarter century: with a strong balance sheet and capital levels, outstanding asset quality, and a team that is focused on the continued execution of our strategies.”




Net Interest Income and Net Interest Margin
Net interest income for the fourth quarter of 2023 was $19.8 million, compared to $17.4 million for the third quarter of 2023, and $21.7 million for the fourth quarter of 2022. On a fully-taxable equivalent basis, net interest income for the fourth quarter of 2023 was $21.0 million, compared to $18.6 million for the third quarter of 2023, and $23.1 million for the fourth quarter of 2022.

Total interest income for the fourth quarter of 2023 was $66.3 million, an increase of 5.2% compared to the third quarter of 2023, and an increase of 45.1% compared to the fourth quarter of 2022. On a fully-taxable equivalent basis, total interest income for the fourth quarter of 2023 was $67.5 million, an increase of 5.0% compared to the third quarter of 2023, and an increase of 43.5% compared to the fourth quarter of 2022. The yield on average interest-earning assets for the fourth quarter of 2023 increased to 5.28% from 5.02% for the third quarter of 2023 due to a 26 basis point (“bp”) increase in the yield earned on loans, a 40 bp increase in the yield earned on securities and a 27 bp increase in the yield earned on other earning assets. Compared to the linked quarter, average loan balances increased $98.9 million, or 2.7%, and the average balance of securities increased $61.2 million, or 9.8%, while the average balance of other earning assets decreased $152.6 million, or 23.4%.

Interest income earned on commercial loans was higher due to increased average balances and the positive impact of higher rates in the variable rate small business, construction and commercial and industrial lending portfolios, as well as growth in the higher-yielding franchise finance portfolio. This was partially offset by lower average balances in the public finance, healthcare finance and single tenant lease financing portfolios. The continued shift in the loan mix is the result of a strategic initiative to focus on variable rate and higher-yielding products, in part to help improve the interest rate risk profile of our balance sheet.

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 8.85% in the fourth quarter of 2023, relatively stable with the third quarter of 2023, and an increase of 278 bps compared to the fourth quarter of 2022. For the full year of 2023, new loan origination yields increased 302 bps compared to 2022. Because of the fixed-rate nature of certain larger portfolios, there is a lagging impact of the higher origination yields on the portfolio.

Interest income earned on securities in the fourth quarter of 2023 increased $1.2 million, or 22.9%, compared to the third quarter of 2023 due to an increase in the yield earned on the portfolio and the increase in average balances. The yield on the securities portfolio increased 40 bps to 3.72%, driven primarily by variable rate securities repricing higher and higher yields on new purchases. Interest earned on other earning asset balances decreased $1.7 million, or 19.4%, in the fourth quarter of 2023 compared to the linked quarter, due primarily to lower average cash balances.

Total interest expense for the fourth quarter of 2023 was $46.5 million, an increase of $0.8 million, or 1.8%, compared to the linked quarter, due to modest increases in both deposit rates and average interest-bearing deposit balances throughout the quarter. Interest expense related to interest-bearing deposits increased $0.7 million, or 1.8%, driven primarily by higher costs on CDs, BaaS-brokered deposits and money market accounts. The cost of interest-bearing deposits was 4.14% for the fourth quarter of 2023, compared to 4.09% for the third quarter of 2023. The increase of 5 bps in deposit costs during the fourth quarter was the slowest experienced by the Company in the past six quarters.

Average CD balances increased $59.2 million, or 3.8%, from the third quarter of 2023 while the cost of funds increased 18 bps. The increase in the cost of CDs is also the lowest in the past six quarters, reflecting the narrowing repricing gap between new production and maturities. The average balance of BaaS – brokered deposits increased $30.2 million, or 94.7%, due to higher payments volume while the cost of funds increased 5 bps.



These increases were partially offset by lower average brokered deposit balances, which decreased $51.7 million, or 7.7%, from the third quarter of 2023, as the Company continued to reduce the balance of higher cost funding throughout the quarter. Additionally, the average balance of interest-bearing demand deposits decreased $5.1 million, or 1.3%, while the cost of funds decreased 47 bps.

Net interest margin (“NIM”) was 1.58% for the fourth quarter of 2023, up from 1.39% for the third quarter of 2023 and down from 2.09% for the fourth quarter of 2022. Fully-taxable equivalent NIM (“FTE NIM”) was 1.68% for the fourth quarter of 2023, up from 1.49% for the third quarter of 2023 and down from 2.22% for the fourth quarter of 2022. The increases in NIM and FTE NIM compared to the linked quarter were driven primarily by higher yields on loans, securities and other earning assets, as well as higher average loan and securities balances, partially offset by higher interest-bearing deposit costs and lower cash balances.

Noninterest Income
Noninterest income for the fourth quarter of 2023 was $7.4 million, consistent with the third quarter of 2023, and up $1.6 million, or 27.4%, from the fourth quarter of 2022. Gain on sale of loans totaled $6.0 million for the fourth quarter of 2023, up $0.5 million, or 8.2%, 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 and a slight improvement in net premiums. Net loan servicing revenue decreased $0.5 million, or 57.7%, during the quarter as growth in the servicing portfolio was more than offset by a lower fair value adjustment to the loan servicing asset.

Noninterest Expense
Noninterest expense totaled $20.1 million for the fourth quarter of 2023, compared to $19.8 million for the third quarter of 2023, and $18.5 million for the fourth quarter of 2022, representing increases of 1.5% and 8.3%, respectively. The increase of $0.3 million compared to the linked quarter was due primarily to higher premises and equipment, consulting and professional fees and deposit insurance premium, partially offset by lower salaries and employee benefits and data processing.

The increase in premises and equipment was due primarily to a lower property tax accrual in the prior quarter. Consulting and professional fees increased due mainly to third-party loan review and stress testing activities. Deposit insurance premium increased due to higher assessments driven by year-over-year asset growth and loan composition. Salaries and employee benefits declined due primarily to lower incentive compensation and lower benefits costs. Data processing declined due to lower variable deposit activity-based expenses and transaction processing fees.

Income Taxes
The Company recognized an income tax benefit of $0.6 million for the fourth quarter of 2023, compared to an income tax benefit of $0.3 million for the third quarter of 2023, and an income tax expense of $0.5 million and an effective tax rate of 7.3% for the fourth quarter of 2022. The income tax benefit for the fourth quarter of 2023 reflects the benefit of tax-exempt income relative to the amount of stated pre-tax income as well as adjustments to certain state income tax rates.

Loans and Credit Quality
Total loans as of December 31, 2023 were $3.8 billion, an increase of $105.2 million, or 2.8%, compared to September 30, 2023, and an increase of $340.8 million, or 9.7%, compared to December 31, 2022. Total commercial loan balances were $3.0 billion as of December 31, 2023, an increase of $97.7 million, or 3.4%, compared to September 30, 2023, and an increase of $286.6 million, or 10.5%, compared to December 31, 2022. Compared to the linked quarter, the increase in commercial loan balances was driven primarily by strategic growth in higher yielding franchise finance, small business lending, commercial and industrial and construction balances. These items were partially offset by decreases in the fixed-rate public finance and healthcare finance portfolios.

Total consumer loan balances were $796.9 million as of December 31, 2023, an increase of $10.4 million, or 1.3%, compared to September 30, 2023, and an increase of $63.7 million, or 8.7%, compared to December


31, 2022. The increase compared to the linked quarter was due primarily to higher balances in the trailers, recreational vehicles and residential mortgage portfolios.

Total delinquencies 30 days or more past due were 0.31% of total loans as of December 31, 2023, compared to 0.22% at September 30, 2023 and 0.17% as of December 31, 2022. The increase in delinquencies during the fourth quarter of 2023 was due primarily to an increase in delinquencies in the small business lending and franchise finance portfolios. Nonperforming loans were 0.26% of total loans as of December 31, 2023, compared to 0.16% as of September 30, 2023, and 0.22% as of December 31, 2022. Nonperforming loans totaled $10.0 million at December 31, 2023, up from $5.9 million at September 30, 2023. The increase in nonperforming loans was due primarily to the addition of small business lending and franchise finance loans for which specific reserves were established, as well as certain residential mortgage loans that were more than 90 days delinquent.

The allowance for credit losses (“ACL”) as a percentage of total loans was 1.01% as of December 31, 2023, compared to 0.98% as of September 30, 2023, and 0.91% as of December 31, 2022. The increase in the ACL reflects the addition of specific reserves mentioned above, as well as the overall growth in the loan portfolio, partially offset by the positive impact of economic data on forecasted loss rates and qualitative factors on certain portfolios.

Net charge-offs of $1.2 million were recognized during the fourth quarter of 2023, resulting in net charge-offs to average loans of 0.12%, compared to $1.5 million, or 0.16%, for the third quarter of 2023 and $0.2 million, or 0.03%, for the fourth quarter of 2022. Net charge-offs in the fourth quarter of 2023 were driven primarily by small business lending, as well as one healthcare finance loan that was charged-off during the quarter.

The provision for credit losses in the fourth quarter of 2023 was $3.6 million, compared to $1.9 million for the third quarter of 2023 and $2.1 million for the fourth quarter of 2022. The provision for the fourth quarter of 2023 was driven primarily by net charge-offs, specific reserves and growth in certain loan portfolios and unfunded commitments, partially offset by the positive impact of economic forecasts on certain portfolios.

Capital
As of December 31, 2023, total shareholders’ equity was $362.8 million, an increase of $15.1 million, or 4.3%, compared to September 30, 2023, and a decrease of $2.2 million, or 0.6%, compared to December 31, 2022. The increase in shareholders’ equity during the fourth quarter of 2023 compared to the linked quarter was due primarily to the net income earned during the quarter and a decrease in accumulated other comprehensive loss. Book value per common share increased to $41.97 as of December 31, 2023, up from $40.11 as of September 30, 2023 and $40.26 as of December 31, 2022. Tangible book value per share was $41.43, up from $39.57 as of September 30, 2023 and $39.74 as of December 31, 2022.

In connection with its previously announced stock repurchase program, the Company repurchased 40,000 shares of its common stock during the fourth quarter of 2023 at an average price of $18.78 per share. The Company has repurchased $41.5 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 December 31, 2023.



As of December 31, 2023
CompanyBank
Total shareholders' equity to assets 7.02 %8.62 %
Tangible common equity to tangible assets 1
6.94 %8.54 %
Tier 1 leverage ratio 2
7.33 %8.95 %
Common equity tier 1 capital ratio 2
9.60 %11.73 %
Tier 1 capital ratio 2
9.60 %11.73 %
Total risk-based capital ratio 2
13.23 %12.73 %
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, January 25, 2024 to discuss its quarterly financial results. The call can be accessed via telephone at (888) 259-6580; access code: 23964485. A recorded replay can be accessed through February 24, 2024 by dialing (877) 674-7070; access code: 964485.

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 December 31, 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,” :improve,” “may,” “ongoing,” “opportunities,” “pending,” “plan,” “position,” “preliminary,” “remain,” “should,” “thereafter,” “well-positioned,” “will,” or other similar expressions. Forward-looking statements are not a guarantee of future performance or results, are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the information in the forward-looking statements. Such statements are subject to certain risks and uncertainties including: our business and operations and the business and operations of our vendors and customers: general economic conditions, whether national or regional, and conditions in the lending markets in which we participate that may have an adverse effect on the demand for our loans and other products; our credit quality and related levels of nonperforming assets and loan losses, and the value and salability of the real estate that is the collateral for our loans. Other factors that may cause such differences include: failures or breaches of or interruptions in the communications and information systems on which we rely to conduct our business; failure of our plans to grow our commercial and industrial, construction, 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 are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the table at the end of this release under the caption “Reconciliation of Non-GAAP Financial Measures.”


Contact Information:
Investors/AnalystsMedia
Paula DeemerBLASTmedia for First Internet Bank
Director of Corporate 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 EndedTwelve Months Ended
December 31,
2023		September 30,
2023		December 31,
2022		December 31,
2023		December 31,
2022
Net income$4,143 $3,409 $6,351 $8,417 $35,541 
Per share and share information
Earnings per share - basic$0.48 $0.39 $0.68 $0.95 $3.73 
Earnings per share - diluted0.48 0.39 0.68 0.95 3.70 
Dividends declared per share0.06 0.06 0.06 0.24 0.24 
Book value per common share41.97 40.11 40.26 41.97 40.26 
Tangible book value per common share 1
41.43 39.57 39.74 41.43 39.74 
Common shares outstanding8,644,451 8,669,673 9,065,883 8,644,451 9,065,883 
Average common shares outstanding:
Basic8,683,331 8,744,385 9,281,309 8,837,558 9,530,921 
Diluted8,720,078 8,767,217 9,343,533 8,858,890 9,595,115 
Performance ratios
Return on average assets0.32 %0.26 %0.59 %0.17 %0.85 %
Return on average shareholders' equity4.66 %3.79 %6.91 %2.35 %9.53 %
Return on average tangible common equity 1
4.72 %3.84 %7.00 %2.38 %9.65 %
Net interest margin1.58 %1.39 %2.09 %1.56 %2.41 %
Net interest margin - FTE 1,2
1.68 %1.49 %2.22 %1.67 %2.54 %
Capital ratios 3
Total shareholders' equity to assets7.02 %6.73 %8.03 %7.02 %8.03 %
Tangible common equity to tangible assets 1
6.94 %6.64 %7.94 %6.94 %7.94 %
Tier 1 leverage ratio7.33 %7.31 %9.06 %7.33 %9.06 %
Common equity tier 1 capital ratio9.60 %9.59 %10.93 %9.60 %10.93 %
Tier 1 capital ratio9.60 %9.59 %10.93 %9.60 %10.93 %
Total risk-based capital ratio13.23 %13.18 %14.75 %13.23 %14.75 %
Asset quality
Nonperforming loans$9,962 $5,885 $7,529 $9,962 $7,529 
Nonperforming assets10,354 6,069 7,571 10,354 7,571 
Nonperforming loans to loans0.26 %0.16 %0.22 %0.26 %0.22 %
Nonperforming assets to total assets0.20 %0.12 %0.17 %0.20 %0.17 %
Allowance for credit losses to:
Loans1.01 %0.98 %0.91 %1.01 %0.91 %
Nonperforming loans389.2 %619.4 %421.5 %389.2 %421.5 %
Net charge-offs to average loans0.12 %0.16 %0.03 %0.31 %0.03 %
Average balance sheet information
Loans$3,799,211 $3,700,410 $3,382,212 $3,682,490 $3,123,972 
Total securities683,468 622,220 578,608 624,050 613,303 
Other earning assets500,733 653,375 149,910 500,061 278,073 
Total interest-earning assets4,984,133 4,976,667 4,119,897 4,809,840 4,033,542 
Total assets5,154,285 5,137,474 4,263,246 4,968,514 4,170,526 
Noninterest-bearing deposits123,351 127,540 135,702 125,816 120,325 
Interest-bearing deposits3,935,519 3,911,696 3,041,022 3,744,964 3,022,794 
Total deposits4,058,870 4,039,236 3,176,724 3,870,780 3,143,119 
Shareholders' equity353,037 356,701 364,657 357,800 372,844 
1 Refer to "Non-GAAP Financial Measures" section above and "Reconciliation of Non-GAAP Financial Measures" below
2 On a fully-taxable equivalent ("FTE") basis assuming a 21% tax rate
3 Regulatory capital ratios are preliminary pending filing of the Company's regulatory reports


First Internet Bancorp
Condensed Consolidated Balance Sheets (unaudited, except for December 31, 2022)
Dollar amounts in thousands
December 31,
2023		September 30,
2023		December 31,
2022
Assets
Cash and due from banks$8,269 $3,595 $17,426 
Interest-bearing deposits397,629 517,610 239,126 
Securities available-for-sale, at fair value474,855 450,827 390,384 
Securities held-to-maturity, at amortized cost, net of allowance for credit losses227,153 231,928 189,168 
Loans held-for-sale22,052 31,669 21,511 
Loans3,840,220 3,735,068 3,499,401 
Allowance for credit losses - loans(38,774)(36,452)(31,737)
Net loans3,801,446 3,698,616 3,467,664 
Accrued interest receivable26,746 23,761 21,069 
Federal Home Loan Bank of Indianapolis stock28,350 28,350 28,350 
Cash surrender value of bank-owned life insurance40,882 40,619 39,859 
Premises and equipment, net73,463 74,197 72,711 
Goodwill4,687 4,687 4,687 
Servicing asset10,567 9,579 6,255 
Other real estate owned375 106 — 
Accrued income and other assets51,098 53,479 44,894 
Total assets$5,167,572 $5,169,023 $4,543,104 
Liabilities
Noninterest-bearing deposits$123,464 $125,265 $175,315 
Interest-bearing deposits3,943,509 3,958,280 3,265,930 
Total deposits4,066,973 4,083,545 3,441,245 
Advances from Federal Home Loan Bank614,934 614,933 614,928 
Subordinated debt104,838 104,761 104,532 
Accrued interest payable3,848 2,968 2,913 
Accrued expenses and other liabilities14,184 15,072 14,512 
Total liabilities4,804,777 4,821,279 4,178,130 
Shareholders' equity
Voting common stock184,700 185,085 192,935 
Retained earnings207,470 203,856 205,675 
Accumulated other comprehensive loss(29,375)(41,197)(33,636)
Total shareholders' equity362,795 347,744 364,974 
Total liabilities and shareholders' equity$5,167,572 $5,169,023 $4,543,104 


First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited, except for the twelve months ended December 31, 2022)
Dollar amounts in thousands, except per share data
Three Months EndedTwelve Months Ended
December 31,
2023		September 30,
2023		December 31,
2022		December 31,
2023		December 31,
2022
Interest income
Loans$52,690 $48,898 $40,354 $192,337 $140,600 
Securities - taxable5,447 4,301 3,222 17,189 10,711 
Securities - non-taxable962 912 699 3,532 1,767 
Other earning assets7,173 8,904 1,394 26,384 3,830 
Total interest income66,272 63,015 45,669 239,442 156,908 
Interest expense
Deposits41,078 40,339 18,807 143,363 41,832 
Other borrowed funds5,387 5,298 5,193 21,175 17,983 
Total interest expense46,465 45,637 24,000 164,538 59,815 
Net interest income19,807 17,378 21,669 74,904 97,093 
Provision for credit losses3,594 1,946 2,109 16,653 4,977 
Net interest income after provision for credit losses16,213 15,432 19,560 58,251 92,116 
Noninterest income
Service charges and fees216 208 226 851 1,071 
Loan servicing revenue1,134 1,064 715 3,833 2,573 
Loan servicing asset revaluation(793)(257)(539)(1,463)(1,639)
Mortgage banking activities— — 1,010 76 5,464 
Gain on sale of loans6,028 5,569 2,862 20,526 11,372 
Other816 823 1,533 2,302 2,416 
Total noninterest income7,401 7,407 5,807 26,125 21,257 
Noninterest expense
Salaries and employee benefits11,055 11,767 10,404 45,322 41,553 
Marketing, advertising and promotion518 500 837 2,567 3,554 
Consulting and professional fees893 552 914 3,082 4,826 
Data processing493 701 567 2,373 1,989 
Loan expenses1,371 1,336 1,018 5,756 4,435 
Premises and equipment2,846 2,315 2,921 10,599 10,688 
Deposit insurance premium1,334 1,067 355 3,880 1,152 
Other1,546 1,518 1,497 5,857 5,076 
Total noninterest expense20,056 19,756 18,513 79,436 73,273 
Income before income taxes3,558 3,083 6,854 4,940 40,100 
Income tax (benefit) provision(585)(326)503 (3,477)4,559 
Net income$4,143 $3,409 $6,351 $8,417 $35,541 
Per common share data
Earnings per share - basic$0.48 $0.39 $0.68 $0.95 $3.73 
Earnings per share - diluted$0.48 $0.39 $0.68 $0.95 $3.70 
Dividends declared per share$0.06 $0.06 $0.06 $0.24 $0.24 
All periods presented have been reclassified to conform to the current period classification


First Internet Bancorp
Average Balances and Rates (unaudited)
Dollar amounts in thousands
Three Months Ended
December 31, 2023September 30, 2023December 31, 2022
Average BalanceInterest / DividendsYield / CostAverage BalanceInterest / DividendsYield / CostAverage BalanceInterest / DividendsYield/ Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale 1
$3,799,932 $52,690 5.50 %$3,701,072 $48,898 5.24 %$3,391,379 $40,354 4.72 %
Securities - taxable611,664 5,447 3.53 %550,208 4,301 3.10 %508,725 3,222 2.51 %
Securities - non-taxable71,804 962 5.32 %72,012 912 5.02 %69,883 699 3.97 %
Other earning assets500,733 7,173 5.68 %653,375 8,904 5.41 %149,910 1,394 3.69 %
Total interest-earning assets4,984,133 66,272 5.28 %4,976,667 63,015 5.02 %4,119,897 45,669 4.40 %
Allowance for credit losses(36,792)(35,601)(30,543)
Noninterest-earning assets206,944 196,408 173,892 
Total assets$5,154,285 $5,137,474 $4,263,246 
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits$382,427 $1,646 1.71 %$387,517 $2,131 2.18 %$326,102 $628 0.76 %
Savings accounts22,394 48 0.85 %26,221 56 0.85 %47,799 104 0.86 %
Money market accounts1,225,781 12,739 4.12 %1,230,746 12,537 4.04 %1,441,583 10,508 2.89 %
BaaS - brokered deposits62,098 685 4.38 %31,891 348 4.33 %4,563 13 1.13 %
Certificates and brokered deposits2,242,819 25,960 4.59 %2,235,321 25,267 4.48 %1,220,975 7,554 2.45 %
Total interest-bearing deposits3,935,519 41,078 4.14 %3,911,696 40,339 4.09 %3,041,022 18,807 2.45 %
Other borrowed funds719,733 5,387 2.97 %719,655 5,298 2.92 %712,465 5,193 2.89 %
Total interest-bearing liabilities4,655,252 46,465 3.96 %4,631,351 45,637 3.91 %3,753,487 24,000 2.54 %
Noninterest-bearing deposits123,351 127,540 135,702 
Other noninterest-bearing liabilities22,645 21,882 9,400 
Total liabilities4,801,248 4,780,773 3,898,589 
Shareholders' equity353,037 356,701 364,657 
Total liabilities and shareholders' equity$5,154,285 $5,137,474 $4,263,246 
Net interest income$19,807 $17,378 $21,669 
Interest rate spread1.32 %1.11 %1.86 %
Net interest margin1.58 %1.39 %2.09 %
Net interest margin - FTE 2,3
1.68 %1.49 %2.22 %
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
Twelve Months Ended
December 31, 2023December 31, 2022
Average BalanceInterest / DividendsYield/CostAverage BalanceInterest / DividendsYield / Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale 1
$3,685,729 $192,337 5.22 %$3,142,166 $140,600 4.47 %
Securities - taxable551,479 17,189 3.12 %537,921 10,711 1.99 %
Securities - non-taxable72,571 3,532 4.87 %75,382 1,767 2.34 %
Other earning assets500,061 26,384 5.28 %278,073 3,830 1.38 %
Total interest-earning assets4,809,840 239,442 4.98 %4,033,542 156,908 3.89 %
Allowance for credit losses(36,038)(29,143)
Noninterest-earning assets194,712 166,127 
Total assets$4,968,514 $4,170,526 
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits$366,082 $6,186 1.69 %$333,737 $2,056 0.62 %
Savings accounts29,200 249 0.85 %58,156 336 0.58 %
Money market accounts1,276,602 49,890 3.91 %1,423,185 18,513 1.30 %
BaaS - brokered deposits33,039 1,402 4.24 %60,699 1,033 1.70 %
Certificates and brokered deposits2,040,041 85,636 4.20 %1,147,017 19,894 1.73 %
Total interest-bearing deposits3,744,964 143,363 3.83 %3,022,794 41,832 1.38 %
Other borrowed funds719,617 21,175 2.94 %638,526 17,983 2.82 %
Total interest-bearing liabilities4,464,581 164,538 3.69 %3,661,320 59,815 1.63 %
Noninterest-bearing deposits125,816 120,325 
Other noninterest-bearing liabilities20,317 16,037 
Total liabilities4,610,714 3,797,682 
Shareholders' equity357,800 372,844 
Total liabilities and shareholders' equity$4,968,514 $4,170,526 
Net interest income$74,904 $97,093 
Interest rate spread1.29 %2.26 %
Net interest margin1.56 %2.41 %
Net interest margin - FTE 2,3
1.67 %2.54 %
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
December 31, 2023September 30, 2023December 31, 2022
AmountPercentAmountPercentAmountPercent
Commercial loans
Commercial and industrial$129,349 3.4 %$114,265 3.1 %$126,108 3.6 %
Owner-occupied commercial real estate57,286 1.5 %58,486 1.6 %61,836 1.8 %
Investor commercial real estate132,077 3.4 %129,831 3.5 %93,121 2.7 %
Construction261,750 6.8 %252,105 6.7 %181,966 5.2 %
Single tenant lease financing936,616 24.4 %933,873 25.0 %939,240 26.8 %
Public finance521,764 13.6 %535,960 14.3 %621,032 17.7 %
Healthcare finance222,793 5.8 %235,622 6.3 %272,461 7.8 %
Small business lending218,506 5.7 %192,996 5.2 %123,750 3.5 %
Franchise finance525,783 13.7 %455,094 12.2 %299,835 8.6 %
Total commercial loans3,005,924 78.3 %2,908,232 77.9 %2,719,349 77.7 %
Consumer loans
Residential mortgage395,648 10.3 %393,501 10.5 %383,948 11.0 %
Home equity23,669 0.6 %23,544 0.6 %24,712 0.7 %
Trailers188,763 4.9 %186,424 5.0 %167,326 4.8 %
Recreational vehicles145,558 3.8 %140,205 3.8 %121,808 3.5 %
Other consumer loans43,293 1.1 %42,822 1.1 %35,464 1.0 %
Total consumer loans796,931 20.7 %786,496 21.0 %733,258 21.0 %
Net deferred loan fees, premiums, discounts and other 1
37,365 1.0 %40,340 1.1 %46,794 1.3 %
Total loans$3,840,220 100.0 %$3,735,068 100.0 %$3,499,401 100.0 %
December 31, 2023September 30, 2023December 31, 2022
AmountPercentAmountPercentAmountPercent
Deposits
Noninterest-bearing deposits$123,464 3.0 %$125,265 3.1 %$175,315 5.1 %
Interest-bearing demand deposits402,976 9.9 %374,915 9.2 %335,611 9.8 %
Savings accounts21,364 0.5 %23,811 0.6 %44,819 1.3 %
Money market accounts1,248,319 30.8 %1,222,511 29.9 %1,418,599 41.2 %
BaaS - brokered deposits74,401 1.8 %41,884 1.0 %13,607 0.4 %
Certificates of deposits1,605,156 39.5 %1,624,447 39.8 %874,490 25.4 %
Brokered deposits 591,293 14.5 %670,712 16.4 %578,804 16.8 %
Total deposits$4,066,973 100.0 %$4,083,545 100.0 %$3,441,245 100.0 %

1 Includes carrying value adjustments of $27.8 million, $29.0 million and $32.5 million related to terminated interest rate swaps associated with public finance loans as of December 31, 2023, September 30, 2023 and December 31, 2022, respectively.

















First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
Three Months EndedTwelve Months Ended
December 31,
2023		September 30,
2023		December 31,
2022		December 31,
2023		December 31,
2022
Total equity - GAAP$362,795 $347,744 $364,974 $362,795 $364,974 
Adjustments:
     Goodwill(4,687)(4,687)(4,687)(4,687)(4,687)
Tangible common equity$358,108 $343,057 $360,287 $358,108 $360,287 
Total assets - GAAP$5,167,572 $5,169,023 $4,543,104 $5,167,572 $4,543,104 
Adjustments:
     Goodwill(4,687)(4,687)(4,687)(4,687)(4,687)
Tangible assets$5,162,885 $5,164,336 $4,538,417 $5,162,885 $4,538,417 
Common shares outstanding8,644,451 8,669,673 9,065,883 8,644,451 9,065,883 
Book value per common share$41.97 $40.11 $40.26 $41.97 $40.26 
Effect of goodwill(0.54)(0.54)(0.52)(0.54)(0.52)
Tangible book value per common share$41.43 $39.57 $39.74 $41.43 $39.74 
Total shareholders' equity to assets7.02 %6.73 %8.03 %7.02 %8.03 %
Effect of goodwill(0.08 %)(0.09 %)(0.09 %)(0.08 %)(0.09 %)
Tangible common equity to tangible assets6.94 %6.64 %7.94 %6.94 %7.94 %
Total average equity - GAAP$353,037 $356,701 $364,657 $357,800 $372,844 
Adjustments:
      Average goodwill(4,687)(4,687)(4,687)(4,687)(4,687)
Average tangible common equity$348,350 $352,014 $359,970 $353,113 $368,157 
Return on average shareholders' equity4.66 %3.79 %6.91 %2.35 %9.53 %
Effect of goodwill0.06 %0.05 %0.09 %0.03 %0.12 %
Return on average tangible common equity4.72 %3.84 %7.00 %2.38 %9.65 %
Total interest income$66,272 $63,015 $45,669 $239,442 $156,908 
Adjustments:
      Fully-taxable equivalent adjustments 1
1,238 1,265 1,384 5,233 5,355 
Total interest income - FTE$67,510 $64,280 $47,053 $244,675 $162,263 
Net interest income$19,807 $17,378 $21,669 $74,904 $97,093 
Adjustments:
      Fully-taxable equivalent adjustments 1
1,238 1,265 1,384 5,233 5,355 
Net interest income - FTE$21,045 $18,643 $23,053 $80,137 $102,448 
Net interest margin1.58 %1.39 %2.09 %1.56 %2.41 %
Effect of fully-taxable equivalent adjustments 1
0.10 %0.10 %0.13 %0.11 %0.13 %
Net interest margin - FTE1.68 %1.49 %2.22 %1.67 %2.54 %
Total revenue - GAAP$27,208 $24,785 $27,476 $101,029 $118,350 
Adjustments:
     Mortgage-related revenue— — — — — 
Adjusted total revenue$27,208 $24,785 $27,476 $101,029 $118,350 
1 Assuming a 21% tax rate







First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
Three Months EndedTwelve Months Ended
December 31,
2023		September 30,
2023		December 31,
2022		December 31,
2023		December 31,
2022
Noninterest income - GAAP$7,401 $7,407 $5,807 $26,125 $21,257 
Adjustments:
     Mortgage-related revenue— — — (65)— 
Adjusted noninterest income$7,401 $7,407 $5,807 $26,060 $21,257 
Noninterest expense - GAAP$20,056 $19,756 $18,513 $79,436 $73,273 
Adjustments:
     Mortgage-related costs— — — (3,052)— 
     Acquisition-related expenses— — — — (273)
     Write-down of software— — — — (125)
     Nonrecurring consulting fee— — — — (875)
     Discretionary inflation bonus— — — — (531)
     Accelerated equity compensation— — — — (289)
Adjusted noninterest expense$20,056 $19,756 $18,513 $76,384 $71,180 
Income before income taxes - GAAP$3,558 $3,083 $6,854 $4,940 $40,100 
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 
     Nonrecurring consulting fee— — — — 875 
     Discretionary inflation bonus— — — — 531 
     Accelerated equity compensation— — — — 289 
Adjusted income before income taxes$3,558 $3,083 $6,854 $14,841 $42,193 
Income tax (benefit) provision - GAAP$(585)$(326)$503 $(3,477)$4,559 
Adjustments:1
     Mortgage-related revenue— — — (14)— 
     Mortgage-related costs— — — 641 — 
     Partial charge-off of C&I participation loan— — — 1,452 — 
     Acquisition-related expenses— — — — 57 
     Write-down of software— — — — 26 
     Nonrecurring consulting fee— — — — 184 
     Discretionary inflation bonus— — — — 112 
     Accelerated equity compensation— — — — 61 
Adjusted income tax (benefit) provision$(585)$(326)$503 $(1,398)$4,999 
1 Assuming a 21% tax rate


First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
Three Months EndedTwelve Months Ended
December 31,
2023		September 30,
2023		December 31,
2022		December 31,
2023		December 31,
2022
Net income - GAAP$4,143 $3,409 $6,351 $8,417 $35,541 
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 
     Nonrecurring consulting fee— — — — 691 
     Discretionary inflation bonus— — — — 419 
     Accelerated equity compensation— — — — 228 
Adjusted net income$4,143 $3,409 $6,351 $16,239 $37,194 
Diluted average common shares outstanding8,720,078 8,767,217 9,343,533 8,858,890 9,595,115 
Diluted earnings per share - GAAP$0.48 $0.39 $0.68 $0.95 $3.70 
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— — — 0.62 
   Effect of acquisition-related expenses— — — — 0.02 
   Effect of write-down of software— — — — 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$0.48 $0.39 $0.68 $1.83 $3.86 
Return on average assets0.32 %0.26 %0.59 %0.17 %0.85 %
   Effect of mortgage-related revenue0.00 %0.00 %0.00 %0.00 %0.00 %
   Effect of mortgage-related costs0.00 %0.00 %0.00 %0.05 %0.00 %
   Effect of partial charge-off of C&I participation loan0.00 %0.00 %0.00 %0.11 %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 %0.00 %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 assets0.32 %0.26 %0.59 %0.33 %0.90 %


First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
Three Months EndedTwelve Months Ended
December 31,
2023		September 30,
2023		December 31,
2022		December 31,
2023		December 31,
2022
Return on average shareholders' equity4.66 %3.79 %6.91 %2.35 %9.53 %
   Effect of mortgage-related revenue0.00 %0.00 %0.00 %(0.01 %)0.00 %
   Effect of mortgage-related costs0.00 %0.00 %0.00 %0.67 %0.00 %
   Effect of partial charge-off of C&I participation loan0.00 %0.00 %0.00 %1.53 %0.00 %
   Effect of acquisition-related expenses0.00 %0.00 %0.00 %0.00 %0.06 %
   Effect of write-down of software0.00 %0.00 %0.00 %0.00 %0.03 %
   Effect of nonrecurring consulting fee0.00 %0.00 %0.00 %0.00 %0.19 %
   Effect of discretionary inflation bonus0.00 %0.00 %0.00 %0.00 %0.11 %
   Effect of accelerated equity compensation0.00 %0.00 %0.00 %0.00 %0.06 %
Adjusted return on average shareholders' equity4.66 %3.79 %6.91 %4.54 %9.98 %
Return on average tangible common equity4.72 %3.84 %7.00 %2.38 %9.65 %
   Effect of mortgage-related revenue0.00 %0.00 %0.00 %(0.01 %)0.00 %
   Effect of mortgage-related costs0.00 %0.00 %0.00 %0.68 %0.00 %
   Effect of partial charge-off of C&I participation loan0.00 %0.00 %0.00 %1.55 %0.00 %
   Effect of acquisition-related expenses0.00 %0.00 %0.00 %0.00 %0.06 %
   Effect of write-down of software0.00 %0.00 %0.00 %0.00 %0.03 %
   Effect of nonrecurring consulting fee0.00 %0.00 %0.00 %0.00 %0.19 %
   Effect of discretionary inflation bonus0.00 %0.00 %0.00 %0.00 %0.11 %
   Effect of accelerated equity compensation0.00 %0.00 %0.00 %0.00 %0.06 %
Adjusted return on average tangible common equity4.72 %3.84 %7.00 %4.60 %10.10 %



Financial Results Fourth 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

 
Fourth Quarter 2023 Highlights  Net income of $4.1 million  Diluted earnings per share of $0.48 3  Net interest margin of 1.58% and FTE net interest margin of 1.68%1, both improving by 19 bps from 3Q23  Pace of increase in deposit costs slowed to lowest point in past six quarters  Capital position remains solid  TCE / TA of 6.94%1; CET1 ratio of 9.60%  Record SBA GOS revenue of $6.0 million  NPAs to total assets of 0.20%  Office CRE less than 1% of total loans  Excluding AOCI and adjusting for normalized cash balances, adjusted TCE / TA was 7.66%1  Repurchased 40,000 common shares at an average price of $18.78 under authorized repurchase program 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix  Total revenue increased to $27.2 million  Noninterest expense to average assets of 1.54%  Tangible book value per share increased 4.7% to $41.43  Continued optimization of loan portfolio  Weighted average yield on new loans funded in 4Q23 was 8.85%  Total portfolio loan balances increased 2.8% from 3Q23  Total deposits were relatively stable with 3Q23

 
Loan Portfolio Overview  Total portfolio loan balances increased 2.8% from 3Q23  Commercial loan balances increased $97.7 million, or 3.4%, compared to 3Q23  Consumer loan balances increased $10.4 million, or 1.3%, compared to 3Q23  4Q23 funded portfolio loan origination yields were 8.85%, relatively stable with 3Q23 and up 278 bps from 4Q22  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 $3,840 2017 2018 2019 2020 2021 2022 2023 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% 24% 10% 14% 6% 6% 11% 14% 10%

 
$1,710.7 42%$956.8 24% 397.6 10% $244.7 6% $212.5 5% $544.7 13% Consumer Small Business Commercial Public Funds BaaS Brokered2 $119.8 3% $268.6 7% $21.4 1% $439.4 11% $808.9 20% $212.5 5% $1,605.1 39% $591.3 14% 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 declined slightly by $16.5 million, or 0.4%, from 3Q23 and are up 18.2% from 4Q22  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  Deposit composition was relatively consistent with 3Q23; used liquidity to pay down higher cost brokered deposits 1 Money market – SMB/Commercial includes small business, commercial, CRE and public funds 2 Public funds includes $46.6 million of deposits that are classified as brokered for regulatory purposes 1 Deposits by Customer Type - 12/31/23 Dollars in millions Total Deposits - $4.1B as of 12/31/23 Dollars in millions Average Balance (Dollars in thousands) $45.2 $92.9 $243.2 $709.2 $46.4

 
Uninsured Deposit Balances 6  Estimated uninsured deposit balances represent 25% of total deposits, up from 23% in 3Q23  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 Estimated Uninsured Deposits Waterfall – 12/31/23 Dollars in millions 25% of Total Deposits 19% of Total Deposits

 
Liquidity and 4Q23 Deposit Update 7  Cash and unused borrowing capacity totaled $1.6 billion at year end – Cash balances down $115 million since 3Q23 – Currently represents 156% of total uninsured deposits and 208% of adjusted uninsured deposits  Liquidity built in prior quarters deployed to fund loan growth and brokered deposit maturities  Loans to deposits ratio increased to 94.4% 1 Money market – SMB/Commercial includes small business, commercial, CRE and public funds Cost of Funds by Deposit TypeTotal Deposits by Quarter Dollars in millions 4% 3% 3% 3%8% 7% 6% 6%1% 1% 1% 1% 13% 11% 10% 11% 22% 21% 20% 20% 2% 4% 4% 5% 50% 53% 56% 54% 1Q23 2Q23 3Q23 4Q23 Noninterest-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 4Q23 3Q23 2Q23 1Q23 Interest-bearing demand deposits 1.71% 2.18% 1.68% 1.09% Savings accounts 0.85% 0.85% 0.86% 0.86% Money market accounts 4.12% 4.04% 3.88% 3.62% BaaS – brokered deposits 4.38% 4.33% 4.03% 3.80% Certificates of deposits 4.55% 4.37% 3.84% 3.12% Brokered deposits 4.70% 4.74% 4.47% 3.93% Total interest-bearing deposits 4.14% 4.09% 3.75% 3.24% $4,067.0

 
Net Interest Income and Net Interest Margin  Net interest income on a GAAP and FTE basis were up 14.0% and 12.9%, respectively, from 3Q23  Improved loan mix and higher yields were partially offset by slightly 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 six 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 4.72% 4.96% 5.15% 5.24% 5.50% 2.45% 3.24% 3.75% 4.09% 4.14% 4Q22 1Q23 2Q23 3Q23 4Q23 Yield on loans Cost of interest-bearing deposits $21.7 $19.6 $18.1 $17.4 $19.8 $23.1 $21.0 $19.5 $18.6 $21.0 4Q22 1Q23 2Q23 3Q23 4Q23 GAAP FTE 2.09% 1.76% 1.53% 1.39% 1.58% 2.22% 1.89% 1.64% 1.49% 1.68% 4Q22 1Q23 2Q23 3Q23 4Q23 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 NIM1 increased 19 bps due to higher earning asset yields, offset by slightly higher deposit costs – Weighted average yield of 8.85% on funded portfolio originations during 4Q23 – Securities and other earning assets yields increased 40 and 27 bps, respectively, from 3Q23  Deposit costs increased only 5 bps from 3Q23 to 4.14% for 4Q23 – Deposit balances relatively stable with 3Q23 – Money market and other non-maturity deposit pricing was stable during 4Q23 – Weighted average cost of new CDs in 4Q23 was 4.97% vs. cost of maturing CDs of 4.34%, reflecting the narrowing repricing gap +30 bps -5 bps -16 bps 1.49% 1.68% +10 bps 3.06% 3.26% 3.39% 3.59% 3.79% 3.85% 3.98% 4.13% 4.16% 4.17% 4.09% 4.17% 4.33% 4.58% 4.83% 4.83% 5.08% 5.08% 5.33% 5.33% 5.33% 5.33% 5.33% 5.33% Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-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, consistent with 3Q23  Gain on sale of loans of $6.0 million, up 8.2%, compared to $5.6 million in 3Q23 – SBA loan sale volume increased 11.6% compared to 3Q23 – Net gain on sale premiums increased by 11 bps from 3Q23  Gain on sale of loans was offset by lower loan servicing revenue, net of loan servicing asset revaluation $0.2 $0.4 $6.0 $0.8 Service charges and fees Net loan servicing revenue Gain on sale of loans Other $5.8 $5.4 $5.9 $7.4 $7.4 4Q22 1Q23 2Q23 3Q23 4Q23

 
Noninterest Expense 11 1 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% 1.72% 1.83% 1.52% 1.53% 1.54% 4Q22 1Q23 2Q23 3Q23 4Q23 Core Non-core items 1 1.56% $18.5 $18.7 $19.8 $20.1 4Q22 1Q23 2Q23 3Q23 4Q23 Core Non-core items $17.9 $21.0 1  Noninterest expense of $20.1 million, compared to $19.8 million in 3Q23  Higher premises and equipment, consulting and professional fees and deposit insurance premium  Partially offset by lower salaries and employee benefits and data processing expenses  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 1.01% in 4Q23, up 3 bps from 3Q23  Quarterly provision for credit losses was $3.6 million, compared to $1.9 million in 3Q23  Net charge-offs to average loans of 0.12%, compared to 0.16% in 3Q23  Nonperforming loans to total loans increased to 0.26% from 0.16% in 3Q23  Delinquencies 30 days or more past due of 0.31%, compared to 0.22% in 3Q23 12 0.22% 0.26% 0.17% 0.16% 0.26% 4Q22 1Q23 2Q23 3Q23 4Q23 0.17% 0.20% 0.13% 0.12% 0.20% 4Q22 1Q23 2Q23 3Q23 4Q23 NPLs to Total Loans NPAs to Total Assets Net Charge-Offs to Avg. Loans 0.03% 0.82% 0.17% 0.16% 0.12% 4Q22 1Q23 2Q23 3Q23 4Q23

 
Capital  Tangible common equity to tangible assets increased 30 bps to 6.94%1 from 3Q23  Tangible book value per share of $41.431, up 4.7% from 3Q23  Repurchased 40,000 shares at an average price per share of $18.78 during 4Q23  Since 4Q21, 1.4 million shares have been purchased at an average price per share of $29.51 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 7.02% 8.62% Tangible common equity to tangible assets1 6.94% 8.54% Tier 1 leverage ratio 7.33% 8.95% Common equity tier 1 capital ratio 9.60% 11.73% Tier 1 capital ratio 9.60% 11.73% Total risk-based capital ratio 13.23% 12.73% $26.09 $27.93 $30.82 $33.29 $38.51 $39.74 $41.43 2017 2018 2019 2020 2021 2022 2023 Tangible Book Value Per Share1 Regulatory Capital Ratios – December 31, 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 67% 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 12.4% of tangible equity 14 10.61% 8.47% 7.00% 11.73% 9.60% Minimum Capital Required First Internet Bank First Internet Bancorp 11.60% 12.11% 10.50% 12.73% 13.23% 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 12/31/23 As of 12/31/23 As of 12/31/23 8.30% 6.70% 8.54% 6.94% First Internet Bank First Internet Bancorp 2

 
Small Business Lending  $218.5 million in balances as of December 31, 2023  Nationwide platform providing growth capital to entrepreneurs and small business owners  Full year 2023 originations up 139% over 2022  9th largest Small Business Administration 7(a) lender for the SBA’s 2023 fiscal year  Top 10 lender year-to-date for the SBA’s 2024 fiscal year 1315 Managed SBA 7(a) Loans Portfolio Mix by State Portfolio Mix by Major Industry 15% 14% 11% 11%7% 7% 35% TX MI FL CA IN IL Other 22% 19% 14% 12% 11% 22% Retail Trade Services Accommodation and Food Services Construction Manufacturing Other

 
Franchise Finance  $525.8 million balances as of December 31, 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 131 18% 13% 13% 11% 9% 8% 28% Limited-Service Restaurants Indoor Recreation Beauty Salons Snacks and Nonalcoholic Beverages Full-Service Restaurants Fitness and Recreational Sports Centers Other 14% 12% 7% 5% 5% 4% 3% 50% TX CA FL MI PA GA KY Other 9% 9% 7% 6% 5% 4% 60% Scooter's Coffee Urban Air Adventure Park My Salon Suite Goldfish Swim School Restore Hyper Wellness Crumbl Cookies Other

 
Construction and Investor Commercial Real Estate  $393.8 million in combined balances as of December 31, 2023  Average current loan balance of $5.5 million for investor CRE  Average commitment sizes for construction – Commercial construction/development: $20.9 million – Residential construction/development: $3.0 million 17 Portfolio by Loan Type Portfolio Mix by State Portfolio Mix by Major Industry  4Q23 unfunded commitments up from 3Q23 – Commercial construction/development: $498.8 million – Residential construction/development: $41.0 million  Minimal office exposure; 2.1% of combined balances consisting of suburban and medical office space 53%32% 15% Commercial Construction/ Development Investor Commercial Real Estate Residential Construction/ Development 31% 26% 20% 7% 5% 3%3% 2% 2% 1% Industrial Warehouse Multifamily/Mixed Use Hospitality Residential Land Development Senior Living Residential Construction Commercial Land Suburban & Medical Office Retail Residential Land 80% 9% 3% 3% 3% 2% IN AZ KY OH SC CA

 
Single Tenant Lease Financing  $936.6 million in balances as of December 31, 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% 22% 18% 13% 6% 5% 4% 5% 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% 3% 3% 3% 2% 59% Tidal Wave Burger King Wendy's Caliber Collision Red Lobster Dollar General ICWG Bob Evans Walgreens CVS Other 10% 24% 22% 39% 5%

 
5% 10% 11% 5% 17% 9% 7% 3% 1% 32% AAA/Aaa AA+/Aa1 AA/Aa2 AA-/Aa3 A+/A1 A/A2 A-/A3 BBB+/Baa1 BBB/Baa2 Non-Rated 33% 14% 13% 10% 6% 6% 6% 3% 3% 2% 4% General Obligation Essential use equipment loans Lease rental revenue Water & sewer revenue Short term cash flow financing (BAN) Private Higher Education Tax Incremental Financing (TIF) districts Public higher education facilities Income Tax supported loans Sales tax, food and beverage tax, hotel tax Others 60% 6% 5% 4% 4% 4% 3% 2% 12% IN OK IA OH MO MI GA WA Other Public Finance  $521.8 million in balances as of December 31, 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  $222.8 million in balances as of December 31, 2023  Average loan size of $459,000  Strong historical credit performance to date  No delinquencies in this portfolio 20 Portfolio Mix by Borrower Use Portfolio Mix by Borrower Portfolio Mix by State 20 87% 9% 4% Dentists Veterinarians Other 30% 12% 5% 4% 4% 3% 3% 39% CA TX FL NY AZ WA IL Other 76% 18% 5% 1% Practice Refi or Acquisition Owner Occupied CRE Project Equipment and Other

 
C&I and Owner-Occupied Commercial Real Estate  $186.6 million in combined balances as of December 31, 2023  Current C&I LOC utilization of 45%  Average loan sizes  C&I: $768,000  Owner-occupied CRE: $855,000 21 Portfolio by Loan Type Portfolio Mix by State Portfolio Mix by Major Industry 21 46% 30% 24% C&I - Term Loans Owner Occupied CRE C&I - Lines of Credit 36% 26% 11% 6% 5% 16% IN AZ CA KS IL Other 32% 20%17% 12% 12% 7% Other Construction Services Manufacturing Real Estate and Rental and Leasing Health Care and Social Assistance  Minimal office exposure; 1.7% of combined loan balances consisting of suburban office space

 
Residential Mortgage  $419.3 million in balances as of December 31, 2023 (includes home equity balances)  Historically direct-to-consumer originations centrally located at corporate headquarters  Focused on high quality borrowers – Average loan size of $208,000 – Average credit score at origination of 742 – Average LTV at origination of 80%  Strong historical credit performance 22 Concentration by State Concentration by Loan TypeNational Portfolio with Midwest Concentration 15% 3% 72% 5% 5% 22 70% 12% 2% 2% 2% 12% Indiana California Florida Texas New York All other states 92% 4%3% 1% Single Family Residential Home Equity – LOC SFR Construction to Permanent Home Equity – Closed End

 
23% 21% 17% 29% 10% Specialty Consumer  $377.6 million in balances as of December 31, 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 $27,000  Strong historical credit performance Concentration by State Concentration by Loan TypeGeographically Diverse Portfolio 231 14% 11% 6% 4% 4% 61% Texas California Florida North Carolina Arizona All other states 51% 39% 10% Trailers Recreational Vehicles Other Consumer

 
24 Appendix

 
Loan Portfolio Composition 25 1 Includes carrying value adjustments of $27.8 million, $29.0 million, $30.5 million, $31.5 million, $32.5 million, $37.5 million and $42.7 million related to terminated interest rate swaps associated with public finance loans as of December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, December 31, 2021 and December 31, 2020, respectively. Dollars in thousands 2020 2021 2022 1Q23 2Q23 3Q23 4Q23 Commercial loans Commercial and industrial 75,387$ 96,008$ 126,108$ 113,198$ 112,423$ 114,265$ 129,349$ Owner-occupied commercial real estate 89,785 66,732 61,836 59,643 59,564 58,486 57,286 Investor commercial real estate 13,902 28,019 93,121 142,174 137,504 129,831 132,077 Construction 110,385 136,619 181,966 158,147 192,453 252,105 261,750 Single tenant lease financing 950,172 865,854 939,240 952,533 947,466 933,873 936,616 Public finance 622,257 592,665 621,032 604,898 575,541 535,960 521,764 Healthcare finance 528,154 387,852 272,461 256,670 245,072 235,622 222,793 Small business lending 125,589 108,666 123,750 136,382 170,550 192,996 218,506 Franchise finance - 81,448 299,835 382,161 390,479 455,094 525,783 Total commercial loans 2,515,631 2,363,863 2,719,349 2,805,806 2,831,052 2,908,232 3,005,924 Consumer loans Residential mortgage 186,787 186,770 383,948 392,062 396,154 393,501 395,648 Home equity 19,857 17,665 24,712 26,160 24,375 23,544 23,669 Trailers 144,493 146,267 167,326 172,640 178,035 186,424 188,763 Recreational vehicles 94,405 90,654 121,808 128,307 133,283 140,205 145,558 Other consumer loans 36,794 28,557 35,464 37,186 40,806 42,822 43,293 Total consumer loans 482,336 469,913 733,258 756,355 772,653 786,496 796,931 Net def. loan fees, prem., disc. and other 1 61,264 53,886 46,794 45,081 43,127 40,340 37,365 Total loans 3,059,231$ 2,887,662$ 3,499,401$ 3,607,242$ 3,646,832$ 3,735,068$ 3,840,220$

 
Reconciliation of Non-GAAP Financial Measures 26 Dollars in thousands, except for per share data 2017 2018 2019 2020 2021 2022 2023 Total equity - GAAP $224,127 $288,735 $304,913 $330,944 $380,338 $364,974 $362,795 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) (4,687) Tangible common equity $219,440 $284,048 $300,226 $326,257 $375,651 $360,287 $358,108 Common shares outstanding 8,411,077 10,170,778 9,741,800 9,800,569 9,754,455 9,065,883 8,644,451 Book value per common share $26.65 $28.39 $31.30 $33.77 $38.99 $40.26 $41.97 Effect of goodwill (0.56) (0.46) (0.48) (0.48) (0.48) (0.52) (0.54) Tangible book value per common share $26.09 $27.93 $30.82 $33.29 $38.51 $39.74 $41.43

 
Reconciliation of Non-GAAP Financial Measures 27 1 Assuming a 21% tax rate Dollars in thousands, except for per share data 4Q22 1Q23 2Q23 3Q23 4Q23 Total equity - GAAP $364,974 $355,572 $354,332 $347,744 $362,795 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) Tangible common equity $360,287 $350,885 $349,645 $343,057 $358,108 Total assets - GAAP $4,543,104 $4,721,319 $4,947,049 $5,169,023 $5,167,572 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) Tangible assets $4,538,417 $4,716,632 $4,942,362 $5,164,336 $5,162,885 Common shares outstanding 9,065,883 8,943,477 8,774,507 8,669,673 8,644,451 Book value per common share $40.26 $39.76 $40.38 $40.11 $41.97 Effect of goodwill (0.52) (0.53) (0.53) (0.54) (0.54) Tangible book value per common share $39.74 $39.23 $39.85 $39.57 $41.43 Total shareholders' equity to assets 8.03% 7.53% 7.16% 6.73% 7.02% Effect of goodwill (0.09%) (0.09%) (0.09%) (0.09%) (0.08%) Tangible common equity to tangible assets 7.94% 7.44% 7.07% 6.64% 6.94% Total interest income $45,669 $52,033 $58,122 $63,015 $66,272 Adjustments: Fully-taxable equivalent adjustments 1 1,384 1,383 1,347 1,265 1,238 Total interest income - FTE $47,053 $53,416 $59,469 $64,280 $67,510 Net interest income $21,669 $19,574 $18,145 $17,378 $19,807 Adjustments: Fully-taxable equivalent adjustments 1 1,384 1,383 1,347 1,265 1,238 Net interest income - FTE $23,053 $20,957 $19,492 $18,643 $21,045 Net interest margin 2.09% 1.76% 1.53% 1.39% 1.58% Adjustments: Effect of fully-taxable equivalent adjustments 1 0.13% 0.13% 0.11% 0.10% 0.10% Net interest margin - FTE 2.22% 1.89% 1.64% 1.49% 1.68%

 
Reconciliation of Non-GAAP Financial Measures 28 Dollars in thousands, except for per share data 4Q22 1Q23 2Q23 3Q23 4Q23 Noninterest income $5,807 $5,446 $5,871 $7,407 $7,401 Adjustments: Mortgage-related revenue - (65) - - - Adjusted noninterest income $5,807 $5,381 $5,871 $7,407 $7,401 Noninterest expense $18,513 $20,954 $18,670 $19,756 $20,056 Adjustments: Mortgage-related costs - (3,052) - - - Adjusted noninterest expense $18,513 $17,902 $18,670 $19,756 $20,056 Noninterest expense to average assets 1.72% 1.83% 1.52% 1.53% 1.54% Effect of mortgage-related costs 0.00% (0.27%) 0.00% 0.00% 0.00% Adjusted noninterest expense to average assets 1.72% 1.56% 1.52% 1.53% 1.54%

 
Reconciliation of Non-GAAP Financial Measures 29 1 Assuming a 21% tax rate Dollars in thousands, except for per share data 4Q22 1Q23 2Q23 3Q23 4Q23 Income (loss) before income taxes - GAAP 6,854$ (5,349)$ 3,648$ 3,083$ 3,558$ Adjustments: Mortgage-related revenue - (65) - - - Mortgage-related costs - 3,052 - - - Partial charge-off of C&I participation loan - 6,914 - - - Adjusted income before income taxes $6,854 $4,552 $3,648 $3,083 $3,558 Income tax provision (benefit) - GAAP 503$ (2,332)$ (234)$ (326)$ (585)$ Adjustments:1 Mortgage-related revenue - (14) - - - Mortgage-related costs - 641 - - - Partial charge-off of C&I participation loan - 1,452 - - - Adjusted income tax provision (benefit) 503$ (253)$ (234)$ (326)$ (585)$ Net income (loss) - GAAP 6,351$ (3,017)$ 3,882$ 3,409$ 4,143$ Adjustments: Mortgage-related revenue - (51) - - - Mortgage-related costs - 2,411 - - - Partial charge-off of C&I participation loan - 5,462 - - - Adjusted net income $6,351 $4,805 $3,882 $3,409 $4,143 Diluted average common shares outstanding 9,343,533 9,024,072 8,908,180 8,767,217 8,720,078 Diluted earnings (loss) per share - GAAP 0.68$ (0.33)$ 0.44$ 0.39$ 0.48$ 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 - 0.60 - - - Adjusted diluted earnings per share $0.68 $0.53 $0.44 $0.39 $0.48

 
Reconciliation of Non-GAAP Financial Measures 30 Dollars in thousands 4Q23 Tangible common equity $358,108 Adjustments: Accumulated other comprehensive loss 29,375 Adjusted tangible common equity $387,483 Tangible assets $5,164,336 Adjustments: Cash in excess of $300 million (105,898) Adjusted tangible assets $5,058,438 Adjusted tangible common equity $387,483 Adjusted tangible assets $5,058,438 Adjusted tangible common equity to adjusted tangible assets 7.66%

 
v3.23.4
Cover
Jan. 24, 2024
Class of Stock [Line Items]  
Document Type 8-K
Document Period End Date Jan. 24, 2024
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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