First Internet Bancorp (the "Company") (NASDAQ:INBK), the parent company of First Internet Bank (the "Bank"), announced today financial and operational results for the first quarter ended March 31, 2024.

First Quarter 2024 Financial Highlights

Net income of $5.2 million and diluted earnings per share of $0.59, increases of 25.1% and 22.9%, respectively, from the fourth quarter of 2023
Net interest income of $20.7 million and fully-taxable equivalent net interest income of $21.9 million, increases of 4.7% and 4.2%, respectively, from the fourth quarter of 2023
Net interest margin of 1.66% and fully-taxable equivalent net interest margin of 1.75%, increases of 8 basis points and 7 basis points, respectively, from the fourth quarter of 2023
Loan growth of $69.6 million, a 1.8% increase from the fourth quarter of 2023
Deposit growth of $206.8 million, a 5.1% increase from the fourth quarter of 2023
Loans to deposits ratio decreased to 91.5% from 94.4% in the fourth quarter of 2023
Nonperforming loans to total loans of 0.33%; net charge-offs to average loans of 0.05%; office real estate exposure remains less than 1% of total loans
Tangible common equity to tangible assets of 6.79%; excluding AOCI and adjusting for normalized cash balances, adjusted TCE / TA was 7.61%; CET1 ratio of 9.52%
Repurchased 10,500 shares at an avg. price of $26.94; repurchased 513,025 shares at an avg. price of $18.58 since the beginning of 2023, reducing share count by 5.7%
Tangible book value per share of $41.83, a 1.0% increase from the fourth quarter of 2023

"On our third quarter 2023 earnings conference call, we indicated that net interest margin and net interest income had likely bottomed and would soon trend higher," said David Becker, Chairman and Chief Executive Officer. "Since then, while the rate environment has remained quite volatile, our net interest margin and net interest income have improved by 27 basis points and 19%, respectively, over the past two quarters, driving higher earnings and improved profitability.

"At the same time, we've improved the risk profile of our balance sheet by optimizing our loan portfolio, and further diversifying our revenue and earnings streams. Our balance sheet liquidity position has strengthened, our capital position remains sturdy, and asset quality has been maintained. This strong foundation has also positioned us to remain on offense, as we continue to drive positive momentum in our SBA business, with strong production and another record level of gain on sale income during the first quarter. Amidst continued macroeconomic uncertainty, these developments leave us confident in our ability to drive further improvement in earnings and profitability over the remainder of the year."

Net Interest Income and Net Interest Margin

Net interest income for the first quarter of 2024 was $20.7 million, compared to $19.8 million for the fourth quarter of 2023, and $19.6 million for the first quarter of 2023. On a fully-taxable equivalent basis, net interest income for the first quarter of 2024 was $21.9 million, compared to $21.0 million for both the fourth and first quarters of 2023.

Total interest income for the first quarter of 2024 was $68.2 million, an increase of 2.9% compared to the fourth quarter of 2023, and an increase of 31.0% compared to the first quarter of 2023. On a fully-taxable equivalent basis, total interest income for the first quarter of 2024 was $69.4 million, an increase of 2.7% compared to the fourth quarter of 2023, and an increase of 29.8% compared to the first quarter of 2023. The yield on average interest-earning assets for the first quarter of 2024 increased to 5.45% from 5.28% for the fourth quarter of 2023, due to a 23 basis point ("bp") increase in the yield earned on loans and a 9 bp increase in the yield earned on securities, partially offset by a 6 bp decrease in the yield earned on other earning assets. Compared to the linked quarter, average loan balances increased $92.7 million, or 2.4%, and the average balance of securities increased $20.0 million, or 2.9%, while the average balance of other earning assets decreased $66.6 million, or 13.3%.

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 in the higher-yielding franchise finance portfolio. This was partially offset by lower average balances in the public finance and healthcare finance portfolios. The continued shift in the loan mix reflects our 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 modestly due to the combination of slightly higher average balances and continued higher new origination yields in the trailers, RV and other consumer loan portfolios.

The yield on funded portfolio loan originations was 8.84% in the first quarter of 2024, relatively stable with the fourth quarter of 2023, and an increase of 108 bps compared to the first quarter of 2023.

Interest income earned on securities during the first quarter of 2024 increased $0.3 million, or 4.0%, compared to the fourth quarter of 2023 as the yield on the portfolio increased 9 bps to 3.81%, driven primarily by higher yields on new purchases and continued slower prepayment speeds on mortgage-backed securities. Additionally, the average balance of securities increased $20.0 million, or 2.9%, during the first quarter of 2024. Interest earned on other earning asset balances decreased $1.1 million, or 15.4%, in the first quarter of 2024 compared to the linked quarter, due primarily to lower average cash balances and slightly lower yields.

Total interest expense for the first quarter of 2024 was $47.4 million, an increase of $1.0 million, or 2.1%, compared to the linked quarter as short-term rates remained stable throughout the quarter while average interest-bearing deposit balances increased $51.5 million, or 1.3%. Interest expense related to interest-bearing deposits increased $1.1 million, or 2.6%, driven primarily by higher costs on certificates of deposits ("CDs"), interest-bearing demand deposits and BaaS – brokered deposits. The cost of interest-bearing deposits was 4.25% for the first quarter of 2024, compared to 4.14% for the fourth quarter of 2023.

Average CD balances increased $22.6 million, or 1.4%, compared to the linked quarter, driven by strong consumer demand, while the cost of funds increased 15 bps. The increase in the cost of CDs is the lowest in the past seven quarters, reflecting the narrowing gap between rates on new production and maturities. The average balance of interest-bearing demand deposits increased $32.7 million, or 8.5%, due to growth in fintech partnership deposits, while the cost of funds increased 32 bps. The average balance of BaaS – brokered deposits increased $23.3 million, or 37.5%, due to higher payments volumes, while the cost of funds increased 1 bp.

These increases were partially offset by lower average brokered deposit balances, which decreased $19.4 million, or 3.1%, as excess liquidity was used to redeem $17.9 million of callable brokered CDs.

Net interest margin ("NIM") was 1.66% for the first quarter of 2024, up from 1.58% for the fourth quarter of 2023 and down from 1.76% for the first quarter of 2023. Fully-taxable equivalent NIM ("FTE NIM") was 1.75% for the first quarter of 2024, up from 1.68% for the fourth quarter of 2023 and down from 1.89% for the first quarter of 2023. The increases in NIM and FTE NIM compared to the linked quarter were driven primarily by higher yields on loans and securities, as well as higher average loan and securities balances, partially offset by higher interest-bearing deposit costs and lower average cash balances.

Noninterest Income

Noninterest income for the first quarter of 2024 was $8.3 million, compared to $7.4 million for the fourth quarter of 2023, and $5.4 million for the first quarter of 2023. Gain on sale of loans totaled $6.5 million in the first quarter of 2024, increasing $0.5 million, or 8.4%, compared to the linked quarter. Gain on sale revenue consisted almost entirely of sales of U.S. Small Business Administration ("SBA") 7(a) guaranteed loans during the first quarter of 2024. Loan sale volume was down seasonally, decreasing 11.5% compared to the linked quarter, but was more than offset by a 158 bp increase in net premiums. Net loan servicing revenue increased $0.5 million during the quarter due to growth in the servicing portfolio and the change in the fair value adjustment to the loan servicing asset.

Noninterest Expense

Noninterest expense totaled $21.0 million for the first quarter of 2024, compared to $20.1 million for the fourth quarter of 2023, and $21.0 million for the first quarter of 2023, representing increases of 4.8% and 0.3%, respectively. The increase of $1.0 million compared to the linked quarter was due primarily to higher salaries and employee benefits and marketing expenses.

The increase in salaries and employee benefits was due primarily to annual resets on certain employee benefits, payroll taxes and incentive compensation accruals, as well as annual merit increases and new hires, partially offset by lower small business incentive compensation and lower medical claims. The increase in marketing expenses was due mainly to higher advertising, media and sponsorship costs.

Income Taxes

The Company recorded income tax expense of $0.4 million and an effective tax rate of 7.6% for the first quarter of 2024, compared to income tax benefits of $0.6 million and $2.3 million for the fourth and first quarters of 2023, respectively.

Loans and Credit Quality

Total loans as of March 31, 2024 were $3.9 billion, an increase of $69.6 million, or 1.8%, compared to December 31, 2023, and an increase of $302.6 million, or 8.4%, compared to March 31, 2023. Total commercial loan balances were $3.1 billion as of March 31, 2024, an increase of $75.2 million, or 2.5%, compared to December 31, 2023, and an increase of $275.4 million, or 9.8%, compared to March 31, 2023. Compared to the linked quarter, the increase in commercial loan balances was driven primarily by growth in higher yielding construction, small business lending and franchise finance balances. These items were partially offset by decreases in the fixed-rate public finance and healthcare finance portfolios.

Total consumer loan balances were $793.4 million as of March 31, 2024, a decrease of $3.5 million, or 0.4%, compared to December 31, 2023, and an increase of $37.1 million, or 4.9%, compared to March 31, 2023. The slight decline compared to the linked quarter was due primarily to a decrease in the residential mortgage portfolio, partially offset by an increase in the trailers portfolio.

Total delinquencies 30 days or more past due were 0.53% of total loans as of March 31, 2024, compared to 0.31% at December 31, 2023, and 0.13% as of March 31, 2023. The increase during the first quarter of 2024 was due primarily to an increase in delinquencies in the small business lending and franchise finance portfolios, some of which was due to the timing of principal and interest payments. Subsequent to quarter end, payments were received from a number of borrowers and as of the date of this release, delinquencies 30 days or more past due declined to 0.32% of total loans, relatively consistent with the linked quarter.

Nonperforming loans were 0.33% of total loans as of March 31, 2024, compared to 0.26% as of both December 31, 2023 and March 31, 2023. Nonperforming loans totaled $13.1 million at March 31, 2024, up from $10.0 million at December 31, 2023. The increase in nonperforming loans was due primarily to an increase in nonperforming small business lending loans and, to a lesser extent, an increase in nonperforming residential mortgage loans.

The allowance for credit losses ("ACL") as a percentage of total loans was 1.05% as of March 31, 2024, compared to 1.01% as of December 31, 2023, and 1.02% as of March 31, 2023. The increase in the ACL reflects the addition of specific reserves on nonperforming small business lending loans, as well as growth in certain loan portfolios, partially offset by the positive impact of economic data on forecasted loss rates and qualitative factors on other portfolios.

Net charge-offs of $0.5 million were recognized during the first quarter of 2024, resulting in net charge-offs to average loans of 0.05%, compared to $1.2 million, or 0.12%, for the fourth quarter of 2023, and $7.2 million, or 0.82%, for the first quarter of 2023. Net charge-offs in the first quarter of 2024 were driven primarily by small business and consumer lending.

The provision for credit losses in the first quarter of 2024 was $2.4 million, compared to $3.6 million for the fourth quarter of 2023, and $9.4 million for the first quarter of 2023. The provision for the first quarter of 2024 was driven primarily by specific reserves, growth in certain loan portfolios and net charge-offs, partially offset by the positive impact of economic forecasts on other portfolios.

Capital

As of March 31, 2024, total shareholders' equity was $366.7 million, an increase of $3.9 million, or 1.1%, compared to December 31, 2023, and an increase of $11.2 million, or 3.1%, compared to March 31, 2023. The increase in shareholders' equity during the first quarter of 2024 compared to the linked quarter was due primarily to the net income earned during the quarter, partially offset by a slight increase in accumulated other comprehensive loss. Book value per common share increased to $42.37 as of March 31, 2024, up from $41.97 as of December 31, 2023, and $39.76 as of March 31, 2023. Tangible book value per share was $41.83 as of March 31, 2024, up from $41.43 as of December 31, 2023, and $39.23 as of March 31, 2023.

In connection with its previously announced stock repurchase program, the Company repurchased 10,500 shares of its common stock during the first quarter of 2024 at an average price of $26.94 per share. The Company has repurchased $41.7 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 March 31, 2024.

	As of March 31, 2024
	Company	Bank

Total shareholders' equity to assets	6.87%	8.39%
Tangible common equity to tangible assets ¹	6.79%	8.31%
Tier 1 leverage ratio ²	7.33%	8.92%
Common equity tier 1 capital ratio ²	9.52%	11.60%
Tier 1 capital ratio ²	9.52%	11.60%
Total risk-based capital ratio ²	13.18%	12.66%

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, April 25, 2024 to discuss its quarterly financial results. The call can be accessed via telephone at (888) 259-6580; access code: 28021175. A recorded replay can be accessed through May 25, 2024 by dialing (877) 674-7070; access code: 021175.

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 $5.3 billion as of March 31, 2024. 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 provision (benefit), 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."

First Internet Bancorp
Summary Financial Information (unaudited)
Dollar amounts in thousands, except per share data

			Three Months Ended
			March 31,			December 31,			March 31,
				2024			2023			2023

Net income (loss)			$	5,181		$	4,143		$	(3,017	)

Per share and share information
	Earnings (loss) per share - basic		$	0.60		$	0.48		$	(0.33	)
	Earnings (loss) per share - diluted			0.59			0.48			(0.33	)
	Dividends declared per share			0.06			0.06			0.06
	Book value per common share			42.37			41.97			39.76
	Tangible book value per common share ¹			41.83			41.43			39.23
	Common shares outstanding			8,655,854			8,644,451			8,943,477
	Average common shares outstanding:
		Basic		8,679,429			8,683,331			9,024,072
		Diluted		8,750,297			8,720,078			9,024,072
Performance ratios
	Return on average assets			0.40	%		0.32	%		(0.26	%)
	Return on average shareholders' equity			5.64	%		4.66	%		(3.37	%)
	Return on average tangible common equity¹			5.71	%		4.72	%		(3.41	%)
	Net interest margin			1.66	%		1.58	%		1.76	%
	Net interest margin - FTE^1,2			1.75	%		1.68	%		1.89	%
Capital ratios³
	Total shareholders' equity to assets			6.87	%		7.02	%		7.53	%
	Tangible common equity to tangible assets¹			6.79	%		6.94	%		7.44	%
	Tier 1 leverage ratio			7.33	%		7.33	%		8.10	%
	Common equity tier 1 capital ratio			9.52	%		9.60	%		10.30	%
	Tier 1 capital ratio			9.52	%		9.60	%		10.30	%
	Total risk-based capital ratio			13.18	%		13.23	%		14.13	%
Asset quality
	Nonperforming loans		$	13,050		$	9,962		$	9,221
	Nonperforming assets			13,425			10,354			9,346
	Nonperforming loans to loans			0.33	%		0.26	%		0.26	%
	Nonperforming assets to total assets			0.25	%		0.20	%		0.20	%
	Allowance for credit losses - loans to:
		Loans		1.05	%		1.01	%		1.02	%
		Nonperforming loans		313.3	%		389.2	%		400.0	%
	Net charge-offs to average loans			0.05	%		0.12	%		0.82	%
Average balance sheet information
	Loans		$	3,889,667		$	3,799,211		$	3,573,827
	Total securities			703,509		$	683,468		$	585,270
	Other earning assets			434,118		$	500,733		$	331,294
	Total interest-earning assets			5,030,216		$	4,984,133		$	4,499,782
	Total assets			5,207,936		$	5,154,285		$	4,647,156
	Noninterest-bearing deposits			113,341		$	123,351		$	134,988
	Interest-bearing deposits			3,987,009		$	3,935,519		$	3,411,969
	Total deposits			4,100,350		$	4,058,870		$	3,546,957
	Shareholders' equity			369,371		$	353,037		$	363,273

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, 2023)
Dollar amounts in thousands

			March 31,			December 31,			March 31,
				2024			2023			2023

Assets
	Cash and due from banks		$	6,638		$	8,269		$	27,741
	Interest-bearing deposits			474,626			397,629			276,231
	Securities available-for-sale, at fair value			482,431			474,855			395,833
	Securities held-to-maturity, at amortized cost, net of allowance for credit losses			235,738			227,153			210,761
	Loans held-for-sale			22,589			22,052			18,144
	Loans			3,909,804			3,840,220			3,607,242
	Allowance for credit losses - loans			(40,891	)		(38,774	)		(36,879	)
		Net loans		3,868,913			3,801,446			3,570,363
	Accrued interest receivable			26,809			26,746			22,322
	Federal Home Loan Bank of Indianapolis stock			28,350			28,350			28,350
	Cash surrender value of bank-owned life insurance			41,154			40,882			40,105
	Premises and equipment, net			73,231			73,463			74,248
	Goodwill			4,687			4,687			4,687
	Servicing asset			11,760			10,567			7,312
	Other real estate owned			375			375			106
	Accrued income and other assets			63,366			51,098			45,116
		Total assets	$	5,340,667		$	5,167,572		$	4,721,319

Liabilities
	Noninterest-bearing deposits		$	130,760		$	123,464		$	140,449
	Interest-bearing deposits			4,143,008			3,943,509			3,481,841
		Total deposits		4,273,768			4,066,973			3,622,290
	Advances from Federal Home Loan Bank			574,936			614,934			614,929
	Subordinated debt			104,915			104,838			104,608
	Accrued interest payable			3,382			3,848			2,592
	Accrued expenses and other liabilities			16,927			14,184			21,328
		Total liabilities		4,973,928			4,804,777			4,365,747
Shareholders' equity
	Voting common stock			184,720			184,700			189,202
	Retained earnings			212,121			207,470			197,623
	Accumulated other comprehensive loss			(30,102	)		(29,375	)		(31,253	)
		Total shareholders' equity		366,739			362,795			355,572
		Total liabilities and shareholders' equity	$	5,340,667		$	5,167,572		$	4,721,319

First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited)
Dollar amounts in thousands, except per share data

				Three Months Ended
				March 31,			December 31,			March 31,
					2024			2023			2023

Interest income
	Loans			$	55,435		$	52,690		$	43,843
	Securities - taxable				5,694			5,447			3,606
	Securities - non-taxable				969			962			798
	Other earning assets				6,067			7,173			3,786
		Total interest income			68,165			66,272			52,033
Interest expense
	Deposits				42,129			41,078			27,270
	Other borrowed funds				5,302			5,387			5,189
		Total interest expense			47,431			46,465			32,459
		Net interest income			20,734			19,807			19,574
Provision for credit losses					2,448			3,594			9,415
		Net interest income after provision
			for credit losses		18,286			16,213			10,159
Noninterest income
	Service charges and fees				220			216			209
	Loan servicing revenue				1,323			1,134			785
	Loan servicing asset revaluation				(434	)		(793	)		(55	)
	Mortgage banking activities				-			-			76
	Gain on sale of loans				6,536			6,028			4,061
	Other				702			816			370
		Total noninterest income			8,347			7,401			5,446
Noninterest expense
	Salaries and employee benefits				11,796			11,055			11,794
	Marketing, advertising and promotion				736			518			844
	Consulting and professional fees				853			893			926
	Data processing				564			493			659
	Loan expenses				1,445			1,371			1,977
	Premises and equipment				2,826			2,846			2,777
	Deposit insurance premium				1,145			1,334			543
	Other				1,658			1,546			1,434
		Total noninterest expense			21,023			20,056			20,954
Income (loss) before income taxes					5,610			3,558			(5,349	)
Income tax provision (benefit)					429			(585	)		(2,332	)
Net income (loss)				$	5,181		$	4,143		$	(3,017	)

Per common share data
Earnings (loss) per share - basic				$	0.60		$	0.48		$	(0.33	)
Earnings (loss) per share - diluted				$	0.59		$	0.48		$	(0.33	)
Dividends declared per share				$	0.06		$	0.06		$	0.06

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

				March 31, 2024							December 31, 2023							March 31, 2023
				Average			Interest/		Yield/		Average			Interest/		Yield/		Average			Interest/		Yield/
				Balance			Dividends		Cost		Balance			Dividends		Cost		Balance			Dividends		Cost

Assets
	Interest-earning assets
		Loans, including loans held-for-sale¹		$	3,892,589		$	55,435	5.73	%	$	3,799,932		$	52,690	5.50	%	$	3,583,218		$	43,843	4.96	%
		Securities - taxable			627,216			5,694	3.65	%		611,664			5,447	3.53	%		511,923			3,606	2.86	%
		Securities - non-taxable			76,293			969	5.11	%		71,804			962	5.32	%		73,347			798	4.41	%
		Other earning assets			434,118			6,067	5.62	%		500,733			7,173	5.68	%		331,294			3,786	4.63	%
			Total interest-earning assets		5,030,216			68,165	5.45	%		4,984,133			66,272	5.28	%		4,499,782			52,033	4.69	%

	Allowance for credit losses - loans				(38,611	)						(36,792	)						(35,075	)
	Noninterest-earning assets				216,331							206,944							182,449
		Total assets		$	5,207,936						$	5,154,285						$	4,647,156

Liabilities
	Interest-bearing liabilities
		Interest-bearing demand deposits		$	415,106		$	2,091	2.03	%	$	382,427		$	1,646	1.71	%	$	333,642		$	900	1.09	%
		Savings accounts			22,521			48	0.86	%		22,394			48	0.85	%		38,482			82	0.86	%
		Money market accounts			1,217,966			12,671	4.18	%		1,225,781			12,739	4.12	%		1,377,600			12,300	3.62	%
		BaaS - brokered deposits			85,366			931	4.39	%		62,098			685	4.38	%		14,741			138	3.80	%
		Certificates and brokered deposits			2,246,050			26,388	4.73	%		2,242,819			25,960	4.59	%		1,647,504			13,850	3.41	%
			Total interest-bearing deposits		3,987,009			42,129	4.25	%		3,935,519			41,078	4.14	%		3,411,969			27,270	3.24	%
		Other borrowed funds			716,735			5,302	2.98	%		719,733			5,387	2.97	%		719,499			5,189	2.92	%
			Total interest-bearing liabilities		4,703,744			47,431	4.06	%		4,655,252			46,465	3.96	%		4,131,468			32,459	3.19	%

	Noninterest-bearing deposits				113,341							123,351							134,988
	Other noninterest-bearing liabilities				21,480							22,645							17,427
		Total liabilities			4,838,565							4,801,248							4,283,883

Shareholders' equity					369,371							353,037							363,273
Total liabilities and shareholders' equity				$	5,207,936						$	5,154,285						$	4,647,156

Net interest income							$	20,734						$	19,807						$	19,574

Interest rate spread									1.39	%						1.32	%						1.50	%

Net interest margin									1.66	%						1.58	%						1.76	%

Net interest margin - FTE^2,3									1.75	%						1.68	%						1.89	%

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

			March 31, 2024				December 31, 2023				March 31, 2023
			Amount		Percent		Amount		Percent		Amount		Percent

Commercial loans
	Commercial and industrial		$	133,897	3.4	%	$	129,349	3.4	%	$	113,198	3.1	%
	Owner-occupied commercial real estate			57,787	1.5	%		57,286	1.5	%		59,643	1.7	%
	Investor commercial real estate			128,276	3.3	%		132,077	3.4	%		142,174	3.9	%
	Construction			325,597	8.3	%		261,750	6.8	%		158,147	4.4	%
	Single tenant lease financing			941,597	24.1	%		936,616	24.4	%		952,533	26.4	%
	Public finance			498,262	12.7	%		521,764	13.6	%		604,898	16.8	%
	Healthcare finance			213,332	5.5	%		222,793	5.8	%		256,670	7.1	%
	Small business lending			239,263	6.1	%		218,506	5.7	%		136,382	3.8	%
	Franchise finance			543,122	13.9	%		525,783	13.7	%		382,161	10.6	%
		Total commercial loans		3,081,133	78.8	%		3,005,924	78.3	%		2,805,806	77.8	%

Consumer loans
	Residential mortgage			390,009	10.0	%		395,648	10.3	%		392,062	10.9	%
	Home equity			22,753	0.6	%		23,669	0.6	%		26,160	0.7	%
	Trailers			191,353	4.9	%		188,763	4.9	%		172,640	4.8	%
	Recreational vehicles			145,475	3.7	%		145,558	3.8	%		128,307	3.6	%
	Other consumer loans			43,847	1.1	%		43,293	1.1	%		37,186	1.0	%
		Total consumer loans		793,437	20.3	%		796,931	20.7	%		756,355	21.0	%

Net deferred loan fees, premiums, discounts and other¹				35,234	0.9	%		37,365	1.0	%		45,081	1.2	%

Total loans			$	3,909,804	100.0	%	$	3,840,220	100.0	%	$	3,607,242	100.0	%


			March 31, 2024				December 31, 2023				March 31, 2023
			Amount		Percent		Amount		Percent		Amount		Percent

Deposits
	Noninterest-bearing deposits		$	130,760	3.1	%	$	123,464	3.0	%	$	140,449	3.9	%
	Interest-bearing demand deposits			423,529	9.9	%		402,976	9.9	%		351,641	9.7	%
	Savings accounts			23,554	0.6	%		21,364	0.5	%		32,762	0.9	%
	Money market accounts			1,251,230	29.2	%		1,248,319	30.8	%		1,254,013	34.6	%
	BaaS - brokered deposits			107,911	2.5	%		74,401	1.8	%		25,725	0.7	%
	Certificates of deposits			1,738,996	40.7	%		1,605,156	39.5	%		1,170,094	32.3	%
	Brokered deposits			597,788	14.0	%		591,293	14.5	%		647,606	17.9	%

Total deposits			$	4,273,768	100.0	%	$	4,066,973	100.0	%	$	3,622,290	100.0	%

¹ Includes carrying value adjustments of $26.9 million, $27.8 million and $31.5 million related to terminated interest rate swaps associated with public finance loans as of March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data


		Three Months Ended

		March 31,			December 31,			March 31,
			2024			2023			2023

Total equity - GAAP		$	366,739		$	362,795		$	355,572
Adjustments:
	Goodwill		(4,687	)		(4,687	)		(4,687	)
Tangible common equity		$	362,052		$	358,108		$	350,885

Total assets - GAAP		$	5,340,667		$	5,167,572		$	4,721,319
Adjustments:
	Goodwill		(4,687	)		(4,687	)		(4,687	)
Tangible assets		$	5,335,980		$	5,162,885		$	4,716,632

Common shares outstanding			8,655,854			8,644,451			8,943,477

Book value per common share		$	42.37		$	41.97		$	39.76
Effect of goodwill			(0.54	)		(0.54	)		(0.53	)
Tangible book value per common share		$	41.83		$	41.43		$	39.23

Total shareholders' equity to assets			6.87	%		7.02	%		7.53	%
Effect of goodwill			(0.08	%)		(0.08	%)		(0.09	%)
Tangible common equity to tangible assets			6.79	%		6.94	%		7.44	%

Total average equity - GAAP		$	369,371		$	353,037		$	363,273
Adjustments:
	Average goodwill		(4,687	)		(4,687	)		(4,687	)
Average tangible common equity		$	364,684		$	348,350		$	358,586

Return on average shareholders' equity			5.64	%		4.66	%		(3.37	%)
Effect of goodwill			0.07	%		0.06	%		(0.04	%)
Return on average tangible common equity			5.71	%		4.72	%		(3.41	%)

Total interest income		$	68,165		$	66,272		$	52,033
Adjustments:
	Fully-taxable equivalent adjustments¹		1,190			1,238			1,383
Total interest income - FTE		$	69,355		$	67,510		$	53,416

Net interest income		$	20,734		$	19,807		$	19,574
Adjustments:
	Fully-taxable equivalent adjustments¹		1,190			1,238			1,383
Net interest income - FTE		$	21,924		$	21,045		$	20,957

Net interest margin			1.66	%		1.58	%		1.76	%
Effect of fully-taxable equivalent adjustments¹			0.09	%		0.10	%		0.13	%
Net interest margin - FTE			1.75	%		1.68	%		1.89	%

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 Ended

		March 31,		December 31,			March 31,
			2024		2023			2023

Total revenue - GAAP		$	29,081	$	27,208		$	25,020
Adjustments:
	Mortgage-related revenue		-		-			(65	)
Adjusted total revenue		$	29,081	$	27,208		$	24,955

Noninterest income - GAAP		$	8,347	$	7,401		$	5,446
Adjustments:
	Mortgage-related revenue		-		-			(65	)
Adjusted noninterest income		$	8,347	$	7,401		$	5,381

Noninterest expense - GAAP		$	21,023	$	20,056		$	20,954
Adjustments:
	Mortgage-related costs		-		-			(3,052	)
Adjusted noninterest expense		$	21,023	$	20,056		$	17,902

Income (loss) before income taxes - GAAP		$	5,610	$	3,558		$	(5,349	)
Adjustments:¹
	Mortgage-related revenue		-		-			(65	)
	Mortgage-related costs		-		-			3,052
	Partial charge-off of C&I participation loan		-		-			6,914
Adjusted income before income taxes		$	5,610	$	3,558		$	4,552

Income tax provision (benefit) - GAAP		$	429	$	(585	)	$	(2,332	)
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)		$	429	$	(585	)	$	(253	)

Net income (loss) - GAAP		$	5,181	$	4,143		$	(3,017	)
Adjustments:
	Mortgage-related revenue		-		-			(51	)
	Mortgage-related costs		-		-			2,411
	Partial charge-off of C&I participation loan		-		-			5,462
Adjusted net income		$	5,181	$	4,143		$	4,805

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 Ended

		March 31,			December 31,			March 31,
			2024			2023			2023

Diluted average common shares outstanding			8,750,297			8,720,078			9,024,072

Diluted earnings (loss) per share - GAAP		$	0.59		$	0.48		$	(0.33	)
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		$	0.59		$	0.48		$	0.53

Return on average assets			0.40	%		0.32	%		(0.26	%)
	Effect of mortgage-related revenue		0.00	%		0.00	%		0.00	%
	Effect of mortgage-related costs		0.00	%		0.00	%		0.21	%
	Effect of partial charge-off of C&I participation loan		0.00	%		0.00	%		0.48	%
Adjusted return on average assets			0.40	%		0.32	%		0.43	%

Return on average shareholders' equity			5.64	%		4.66	%		(3.37	%)
	Effect of mortgage-related revenue		0.00	%		0.00	%		(0.06	%)
	Effect of mortgage-related costs		0.00	%		0.00	%		2.69	%
	Effect of partial charge-off of C&I participation loan		0.00	%		0.00	%		6.10	%
Adjusted return on average shareholders' equity			5.64	%		4.66	%		5.36	%

Return on average tangible common equity			5.71	%		4.72	%		(3.41	%)
	Effect of mortgage-related revenue		0.00	%		0.00	%		(0.06	%)
	Effect of mortgage-related costs		0.00	%		0.00	%		2.73	%
	Effect of partial charge-off of C&I participation loan		0.00	%		0.00	%		6.18	%
Adjusted return on average tangible common equity			5.71	%		4.72	%		5.44	%

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First Internet Bancorp Reports First Quarter 2024 Results