On April 23, 2025, First Internet Bancorp (INBK, Financial) released its 8-K filing detailing the financial results for the first quarter ending March 31, 2025. As a bank holding company, First Internet Bancorp operates through its subsidiaries, providing a range of commercial and retail banking services primarily through the internet.
Performance Overview: Earnings and Revenue
First Internet Bancorp reported a net income of $0.9 million, translating to diluted earnings per share (EPS) of $0.11. This figure fell short of the analyst estimate of $0.76 per share. However, the company achieved a revenue of $26.43 million, meeting the estimated revenue of $26.43 million.
Financial Achievements and Strategic Initiatives
The company reported a pre-tax, pre-provision income (PTPP) of $12.0 million, marking a 10.8% increase from the previous quarter and a 48.5% rise from the same period last year. Net interest income stood at $25.1 million, with a fully taxable equivalent of $26.3 million, reflecting increases of 6.6% and 6.3%, respectively, from the fourth quarter of 2024.
“Our first quarter performance was highlighted by solid core revenue growth and net interest margin expansion,” said David Becker, Chairman and Chief Executive Officer.
Key Financial Metrics and Balance Sheet Insights
First Internet Bancorp's net interest margin improved to 1.82%, with a fully taxable equivalent net interest margin of 1.91%. The company experienced loan growth of $83.8 million, a 2.0% increase from the previous quarter, and deposit growth of $12.4 million, a 0.3% increase. The loans-to-deposits ratio was reported at 86.0%.
Nonperforming loans accounted for 0.80% of total loans, while net charge-offs to average loans were 0.92%. The allowance for credit losses to total loans was 1.11%. Tangible common equity to tangible assets was 6.55%, with a CET1 ratio of 9.16%.
Income Statement and Cash Flow Analysis
Net interest income for the quarter was $25.1 million, compared to $23.6 million in the previous quarter and $20.7 million in the same quarter last year. Total interest income was $76.8 million, a slight decrease from the previous quarter but a 12.7% increase year-over-year. Total interest expense decreased by 4.6% from the previous quarter to $51.7 million.
Challenges and Future Outlook
Despite the positive revenue growth, First Internet Bancorp faced challenges with credit quality, as indicated by the increase in nonperforming loans and net charge-offs. The provision for credit losses rose to $11.9 million, driven by elevated net charge-offs and growth in the loan portfolio.
“Despite credit challenges in certain portfolios, our asset quality and capital positions remain strong,” noted David Becker.
Conclusion
First Internet Bancorp's first-quarter results reflect a mixed performance with revenue growth and margin expansion, but challenges in credit quality and earnings. The company's strategic focus on diversifying revenue and optimizing its balance sheet positions it for potential future growth. Investors will be keen to see how these strategies unfold in the coming quarters.
Explore the complete 8-K earnings release (here) from First Internet Bancorp for further details.
