First Internet Bancorp ( (INBK) ) has released its Q1 earnings. Here is a breakdown of the information First Internet Bancorp presented to its investors.
First Internet Bancorp is a bank holding company specializing in branchless banking services, offering a range of financial products including consumer and small business deposits, SBA financing, and commercial loans. In its first quarter of 2025, the company reported a net income of $0.9 million, with diluted earnings per share of $0.11, and a notable increase in pre-tax, pre-provision income by 48.5% compared to the same period last year. The bank also saw a rise in net interest income and net interest margin, driven by higher yields on earning assets and strategic loan mix enhancements.
Key financial metrics for the quarter included a net interest income of $25.1 million, a net interest margin of 1.82%, and loan growth of $83.8 million, reflecting a 2.0% increase from the previous quarter. The company’s focus on higher-yielding variable rate products contributed to these results, despite a decrease in interest income from consumer loans. Additionally, the bank experienced strong fintech deposit growth, which bolstered its interest income and balance sheet flexibility.
Noninterest income was $10.4 million, a decrease from the previous quarter due to nonrecurring gains in the fourth quarter of 2024. However, gains on the sale of SBA loans contributed positively, and the bank maintained a stable noninterest expense, with a slight decrease in salaries and benefits. The provision for credit losses increased significantly to $11.9 million, reflecting elevated net charge-offs and specific reserves for nonperforming loans, particularly in franchise finance and small business lending.
Looking ahead, First Internet Bancorp remains focused on its core strategies of diversifying revenue streams and optimizing its balance sheet. The management is confident in driving future earnings growth and profitability, supported by its strong asset quality and capital positions.