First Internet Bancorp Reports Modest Q2 2025 Earnings

First Internet Bancorp ( (INBK) ) has released its Q2 earnings. Here is a breakdown of the information First Internet Bancorp presented to its investors.

First Internet Bancorp is a bank holding company that operates First Internet Bank, a pioneer in branchless banking services, offering a range of financial products including consumer and small business deposits, SBA financing, and commercial loans. The company recently reported its financial results for the second quarter of 2025, highlighting a modest net income of $0.2 million and a diluted earnings per share of $0.02. Despite a slight decrease in pre-tax, pre-provision income from the previous quarter, the company saw a significant increase from the same period last year.

Key financial metrics for the quarter included a net interest income of $28.0 million, marking an 11.5% increase from the previous quarter, and a net interest margin of 1.96%. The company experienced loan growth of $108.2 million and deposit growth of $353.2 million, resulting in a loans-to-deposits ratio of 82.3%. However, nonperforming loans increased to 1.00% of total loans, with net charge-offs rising to 1.31% of average loans.

The company has been actively addressing credit issues within its franchise finance and small business loan portfolios, which contributed to the elevated provision for credit losses. Despite these challenges, First Internet Bancorp has maintained strong asset quality and capital levels, positioning itself for potential growth in earnings and profitability.

Looking forward, First Internet Bancorp anticipates continued expansion in net interest income and margin, driven by higher loan origination yields and strategic deposit repricing. The company is optimistic about its ability to resume significant loan sale activity in the third quarter, although it remains cautious about potential impacts from global and domestic economic policies.