First Internet Bancorp Reports Third Quarter 2022 Results

Rhea-AI Summary

First Internet Bancorp (Nasdaq: INBK) reported a quarterly net income of $8.4 million for Q3 2022, down from $9.5 million in Q2 2022 and $12.1 million in Q3 2021. Diluted earnings per share decreased to $0.89 from $0.99 and $1.21 in the previous quarters. Loan growth was robust, with a 5.6% increase from Q2 2022 and a 10.9% increase year-over-year, totaling $173.8 million. The net interest margin was 2.40%, and the company repurchased 120,000 shares at an average price of $36.56, raising the repurchase program cap to $35 million.

Positive

• Loan growth of $173.8 million, a 5.6% increase from Q2 2022.
• Quarterly adjusted net income of $8.5 million, or $0.90 adjusted diluted earnings per share.
• Strong credit quality with total delinquencies at 0.06%.

Negative

• Net income decreased to $8.4 million from $9.5 million in Q2 2022.
• Net interest income declined to $24.0 million from $25.7 million in Q2 2022.
• Noninterest income dropped to $4.3 million from $7.8 million in Q3 2021.

Highlights for the third quarter include:

• Quarterly net income of $8.4 million, compared to $9.5 million for the second quarter of 2022 and $12.1 million for the third quarter of 2021
• Quarterly diluted earnings per share of $0.89, compared to $0.99 for the second quarter of 2022 and $1.21 for the third quarter of 2021
• Quarterly adjusted net income of $8.5 million, or $0.90 adjusted diluted earnings per share, when excluding nonrecurring expenses
• Loan growth of $173.8 million, a 5.6% increase from the second quarter of 2022 and a 10.9% increase from the third quarter of 2021
• Net interest margin of 2.40% and fully-taxable equivalent net interest margin of 2.53%
• Repurchased 120,000 shares at an average price of $36.56; aggregate purchase price under the authorized repurchase program has been increased to $35.0 million

FISHERS, Ind.--(BUSINESS WIRE)-- First Internet Bancorp (the “Company”) (Nasdaq: INBK), the parent company of First Internet Bank (the “Bank”), announced today financial and operational results for the third quarter ended September 30, 2022. Net income for the third quarter of 2022 was $8.4 million, or $0.89 diluted earnings per share. This compares to net income of $9.5 million, or $0.99 diluted earnings per share, for the second quarter of 2022, and net income of $12.1 million, or $1.21 diluted earnings per share, for the third quarter of 2021.

“Loan originations were up 47% over the prior quarter, demonstrating continued consumer and business confidence,” said David Becker, Chairman and Chief Executive Officer. “We continue to execute on our lending strategies, including our specialized areas of focus in commercial construction lending, SBA lending, franchise finance, and consumer lending. Given construction and SBA loans are typically variable rate products, and other fixed-rate product is coming on at higher rates, this growth sets the stage for future increases in average loan yields. We are taking a disciplined approach to capital deployment, maintaining our focus on the sound underwriting that has defined our bank for more than 20 years. Consequently, ongoing strong credit quality was a key contributor to our performance this quarter.

“We remain focused on our Fintech and Banking-as-a-Service initiatives as a way to grow lower cost deposit relationships and enhance noninterest income through payments processing. We have entered into agreements with two platforms and are piloting three Fintech partner programs. Altogether, we believe this strategy will drive stronger earnings and profitability while advancing our position as a premier technology-forward digital financial services provider.”

Mr. Becker concluded, “We continue to execute our strategies to bolster resilience in our balance sheet and earnings profile. I thank the entire First Internet team for their dedication to this pursuit and for partnering with our customers for mutual success.”

Net Interest Income and Net Interest Margin

Net interest income for the third quarter of 2022 was $24.0 million, compared to $25.7 million for the second quarter of 2022, and $20.9 million for the third quarter of 2021. On a fully-taxable equivalent basis, net interest income for the third quarter of 2022 was $25.3 million, compared to $27.1 million for the second quarter of 2022, and up from $22.3 million for the third quarter of 2021.

Total interest income for the third quarter of 2022 was $39.1 million, an increase of 8.3% compared to the second quarter of 2022, and an increase of 18.4% compared to the third quarter of 2021. On a fully-taxable equivalent basis, total interest income for the third quarter of 2022 was $40.4 million, an increase of 7.7% compared to the second quarter of 2022, and an increase of 17.4% compared to the third quarter of 2021. The sequential increase was due primarily to growth in interest income earned on the commercial and consumer loan portfolios, the securities portfolio and other earning assets. The yield on average interest-earning assets for the third quarter of 2022 increased to 3.91% from 3.65% in the linked quarter due primarily to a 22 basis point (“bp”) increase in the yield earned on securities and a 167 bp increase in the yield earned on other earning assets. Compared to the linked quarter, average loan balances increased $163.7 million, or 5.5%, while the average balance of securities decreased $14.1 million, or 2.3%, and the average balance of other earning assets decreased $133.8 million, or 41.5%.

Interest income earned on commercial loans was positively impacted by higher rates in the variable rate small business lending, construction and commercial and industrial portfolios as well as strong growth in the franchise finance portfolio. This activity was partially offset by significantly lower prepayment fees in the healthcare finance and single tenant lease financing portfolios. In the consumer portfolio, interest income was up due to the combination of higher new origination yields and growth in the residential mortgage, trailers, RV and other consumer portfolios.

New funded portfolio origination yields increased 52 bps compared to the second quarter, and year-to-date 2022 have been approximately 87 bps higher than for the same period in 2021. Because of the fixed rate nature of certain larger portfolios, there is a lagging impact of the higher origination yields on the portfolio. Additionally, the yield earned on the loan portfolio was impacted by the timing of funded loans as over 50% of total funded originations occurred during September.

The Federal Reserve has increased the federal funds (“Fed Funds”) target rate 300 bps year-to-date, with half of the increase coming in the third quarter. To date, the Company has modestly increased the rate paid on consumer, small business and commercial interest-bearing demand deposits. While money market deposit pricing was relatively rational during the second quarter, competition in both the digital banking space and local markets intensified, and deposit betas increased as a result. The cost of the Company’s BaaS brokered deposits, which is tied to Fed Funds, contributed to the overall increase in interest expense as well. Furthermore, the combination of higher interest rates and industry dynamics, including the outflow of deposits from the overall banking system, drove higher pricing in the wholesale deposit market.

The Company also increased its use of advances from the Federal Home Loan Bank to supplement growth and manage long term interest rate risk, borrowing $100.0 million of longer term advances. Total interest expense was impacted by the costs related to other borrowed funds as the rates on these advances, which are now well below market, contributed to higher total funding costs.

As a result, total interest expense for the third quarter of 2022 was $15.1 million, an increase of 44.9% compared to the second quarter of 2022, and an increase of 24.7% compared to the third quarter of 2021.

During the third quarter of 2022, the average balance of interest-bearing deposits decreased $57.1 million, or 1.9%, compared to the second quarter of 2022 while the cost of these deposits increased 56 bps. The decrease in average interest-bearing deposit balances was due to a decline in average certificates and brokered deposit balances, which decreased $66.8 million, or 6.0%, during the quarter while the cost of these deposits increased 31 bps. Additionally, the average balance of money market accounts decreased $57.9 million, or 4.1%, compared to the second quarter of 2022 while the cost of these deposits increased 79 bps. These declines were partially offset by an increase of $82.7 million, or 116.1%, in the average balance of BaaS – brokered deposits.

Net interest margin (“NIM”) was 2.40% for the third quarter of 2022, down from 2.60% for the second quarter of 2022 and up from 2.00% for the third quarter of 2021. Fully-taxable equivalent NIM (“FTE NIM”) was 2.53% for the third quarter of 2022, down from 2.74% for the second quarter of 2022 and up from 2.13% for the third quarter of 2021. The decrease in FTE NIM compared to the linked quarter was driven primarily by the effect of higher interest-bearing deposit costs, partially offset by higher yields on securities, other earning assets and higher average loan balances.

Noninterest Income

Noninterest income for the third quarter of 2022 was $4.3 million, stable with the second quarter of 2022, and down from $7.8 million for the third quarter of 2021. Gain on sale of loans totaled $2.7 million for the third quarter of 2022, up $0.8 million, or 39.0% from the linked quarter. Gain on sale revenue in the quarter consisted entirely of gain on the sales of U.S. Small Business Administration (“SBA”) 7(a) guaranteed loans. The increase in revenue related to SBA loan sales was due to a higher volume of sales, partially offset by lower net gain on sale premiums. Mortgage banking revenue totaled $0.9 million for the third quarter of 2022, down $0.8 million, or 49.1%, from the linked quarter as the continued rise in interest rates negatively impacted interest rate lock and sold loan volume as well as gain on sale margins.

Noninterest Expense

Noninterest expense for the third quarter of 2022 was $18.0 million, stable with the second quarter of 2022 and up from $14.5 million for the third quarter of 2021. Consulting and professional fees and salaries and employee benefits declined from the linked quarter, while loan expenses and premises and equipment costs were higher. The decrease in consulting and professional fees was due primarily to the timing of third party loan review and stress testing. The lower salaries and employee benefits expense was due mainly to discretionary inflation bonuses paid to certain employees and accelerated equity compensation related to retirements in the second quarter and lower incentive compensation in the Company’s mortgage banking division, partially offset by increased headcount as well as higher incentive compensation in SBA and construction lending. The increase in loan expenses was driven primarily by higher servicing costs associated with the growth in our franchise finance loan portfolio as well as risk management vendor costs. The increase in premises and equipment costs was impacted by a $125,000 write-down of software as well as costs related to the buildout of the Company’s small business banking platform.

Income Taxes

The Company reported an income tax expense of $1.0 million for the third quarter of 2022 and an effective tax rate of 10.5%, compared to an income tax expense of $1.3 million and an effective tax rate of 11.8% for the second quarter of 2022 and an income tax expense of $2.2 million and an effective tax rate of 15.5% for the third quarter of 2021. The lower effective tax rate reflects a higher proportion of tax exempt income relative to total pre-tax income.

Loans and Credit Quality

Total loans as of September 30, 2022 were $3.3 billion, an increase of $173.8 million, or 5.6%, compared to June 30, 2022, and an increase of $319.8 million, or 10.9%, compared to September 30, 2021. Total commercial loan balances were $2.5 billion as of September 30, 2022, an increase of $97.3 million, or 4.0%, compared to June 30, 2022 and an increase of $129.6 million, or 5.4%, compared to September 30, 2021. Compared to the linked quarter, the increase in commercial loan balances was driven primarily by growth in franchise finance, investor commercial real estate and single tenant lease financing loan balances. These items were partially offset by net payoffs in healthcare finance and commercial and industrial.

Total consumer loan balances were $672.2 million as of September 30, 2022, an increase of $78.2 million, or 13.2%, compared to June 30, 2022, and an increase of $197.1 million, or 41.5%, compared to September 30, 2021. The increase compared to the linked quarter was due to higher balances in the residential mortgage, recreational vehicles and trailers loan portfolios.

Total delinquencies 30 days or more past due were 0.06% of total loans as of September 30, 2022, consistent with both June 30, 2022 and September 30, 2021. Overall credit quality remained strong during the quarter as nonperforming loans to total loans was 0.18% as of September 30, 2022, compared to 0.15% at June 30, 2022 and 0.27% as of September 30, 2021. Nonperforming loans totaled $6.0 million at quarter end, up from $4.5 million at June 30, 2022.

The allowance for loan losses as a percentage of total loans was 0.92% as of September 30, 2022, both in total and when excluding PPP loans, compared to 0.95% in both categories as of June 30, 2022 and 0.95% and 0.96%, respectively, as of September 30, 2021. The decline in the allowance coverage ratio reflects growth in certain portfolios with lower coverage ratios as well as the continued decline in healthcare finance balances that have a higher coverage ratio.

Net charge-offs of $0.2 million were recognized during the third quarter of 2022, resulting in net charge-offs to average loans of 0.02%, compared to net charge-offs to average loans of 0.04% for the second quarter of 2022 and net charge-offs to average loans of 0.01% for the third quarter of 2021.

The provision for loan losses in the third quarter of 2022 was $0.9 million, compared to a provision of $1.2 million for the second quarter of 2022 and a credit for loan losses of $29,000 for the third quarter of 2021. The provision for the quarter was driven by the overall growth in the loan portfolio, partially offset by reductions in specific reserves as there were positive developments on certain monitored loans.

Capital

As of September 30, 2022, total shareholders’ equity was $360.9 million, a decrease of $4.5 million, or 1.2%, compared to June 30, 2022 and a decrease of $9.6 million, or 2.6%, compared to September 30, 2021. The decline in shareholders’ equity during the third quarter of 2022 was due primarily to an increase in accumulated other comprehensive loss resulting from a decline in the value of the available-for-sale securities portfolio caused by the continued rise in interest rates during the quarter and stock repurchase activity. This was partially offset by the net income earned during the quarter and an increase in the value of interest rate swaps classified as cash flow hedges. Book value per common share increased to $38.84 as of September 30, 2022, relatively stable with June 30, 2022 and up from $37.59 as of September 30, 2021. Tangible book value per share was $38.34, also relatively stable with June 30, 2022 and up from $37.12 as of September 30, 2021.

In connection with its previously announced stock repurchase program, which has been increased to a total aggregate purchase price of $35.0 million, the Company repurchased 120,000 shares of its common stock during the third quarter of 2022 at an average price of $36.56 per share. Including shares repurchased since the fourth quarter of 2021, the Company has repurchased $25.1 million of stock under the total upsized authorization of $35.0 million.

The following table presents the Company’s and the Bank’s regulatory and other capital ratios as of September 30, 2022.

		As of September 30, 2022
		Company			Bank
Total shareholders' equity to assets		8.46	%		10.14	%
Tangible common equity to tangible assets 1		8.36	%		10.04	%
Tier 1 leverage ratio 2		9.49	%		11.22	%
Common equity tier 1 capital ratio 2		11.72	%		13.87	%
Tier 1 capital ratio 2		11.72	%		13.87	%
Total risk-based capital ratio 2		15.73	%		14.77	%
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 12:00 p.m. Eastern Time on Thursday, October 20, 2022 to discuss its quarterly financial results. The call can be accessed via telephone at (844) 200-6205; access code: 136923. A recorded replay can be accessed through November 19, 2022 by dialing (866) 813-9403; access code: 630846.

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 $4.3 billion as of September 30, 2022. The Company’s subsidiary, First Internet Bank, opened for business in 1999 as an industry pioneer in the branchless delivery of banking services. The First Internet Bank provides consumer and small business deposit, SBA financing, franchise finance, residential mortgage loans, 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” and is a component of the Russell 2000® Index. 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, 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 “ahead,” “anticipate,” “believe,” “capitalize,” “confidence in,” “continue,” “could,” “designed,” “effort,” “estimate,” “expect,” “growth,” “help,” “hope,” “intend,” “looking forward,” “may,” “opportunities,” “optimistic,” “pending,” “plan,” “position,” “preliminary,” “remain,” “should,” “waiting on,” “well-positioned,” “will,” “working on,” “would” 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: adverse public health developments on the economy, 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 we own or 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 real estate, commercial and industrial, public finance, SBA, and franchise finance loan portfolios; competition with national, regional and community financial institutions; the loss of any key members of senior management; execution of pending and future acquisition, reorganization or disposition transactions, including without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings and other anticipated benefits from such transactions; fluctuations in interest rates; 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, adjusted total interest income - FTE, net interest income – FTE, adjusted net interest income, adjusted net interest income – FTE, net interest margin – FTE, adjusted net interest margin, adjusted net interest margin – FTE, provision (benefit) for loan losses, excluding tax refund advance loans, average loans, excluding tax refund advance loans, net (recoveries) charge-offs to average loans, excluding tax refund advance loans, allowance for loan losses to loans, excluding PPP loans, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax provision, adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average shareholders’ equity, adjusted return on average tangible common equity, adjusted effective income tax rate, income before income taxes, excluding tax refund advance loans, income tax provision, excluding tax refund advance loans and net income, excluding tax refund advance loans 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												Nine Months Ended
					September 30,				June 30,				September 30,				September 30,				September 30,
					2022				2022				2021				2022				2021
Net income					$	8,436			$	9,545			$	12,090			$	29,190			$	35,636
Per share and share information
	Earnings per share - basic				$	0.89			$	0.99			$	1.22			$	3.04			$	3.59
	Earnings per share - diluted					0.89				0.99				1.21				3.01				3.57
	Dividends declared per share					0.06				0.06				0.06				0.18				0.18
	Book value per common share					38.84				38.85				37.59				38.84				37.59
	Tangible book value per common share 1					38.34				38.35				37.12				38.34				37.12
	Common shares outstanding					9,290,885				9,404,000				9,854,153				9,290,885				9,854,153
	Average common shares outstanding:
		Basic				9,458,259				9,600,383				9,936,237				9,615,039				9,922,877
		Diluted				9,525,855				9,658,689				9,988,102				9,681,742				9,974,071
Performance ratios
	Return on average assets					0.82	%			0.93	%			1.12	%			0.94	%			1.13	%
	Return on average shareholders' equity					9.01	%			10.23	%			13.10	%			10.40	%			13.54	%
	Return on average tangible common equity 1					9.13	%			10.36	%			13.27	%			10.53	%			13.73	%
	Net interest margin					2.40	%			2.60	%			2.00	%			2.52	%			2.05	%
	Net interest margin - FTE 1,2					2.53	%			2.74	%			2.13	%			2.65	%			2.19	%
Capital ratios 3
	Total shareholders' equity to assets					8.46	%			8.91	%			8.71	%			8.46	%			8.71	%
	Tangible common equity to tangible assets 1					8.36	%			8.81	%			8.61	%			8.36	%			8.61	%
	Tier 1 leverage ratio					9.49	%			9.45	%			8.86	%			9.49	%			8.86	%
	Common equity tier 1 capital ratio				11.72		%			12.46	%			12.62	%		11.72		%			12.62	%
	Tier 1 capital ratio				11.72		%			12.46	%			12.62	%		11.72		%			12.62	%
	Total risk-based capital ratio				15.73		%			16.74	%			17.04	%		15.73		%			17.04	%
Asset quality
	Nonperforming loans				$	6,006			$	4,527			$	7,851			$	6,006			$	7,851
	Nonperforming assets					6,006				4,550				9,039				6,006				9,039
	Nonperforming loans to loans					0.18	%			0.15	%			0.27	%			0.18	%			0.27	%
	Nonperforming assets to total assets					0.14	%			0.11	%			0.21	%			0.14	%			0.21	%
	Allowance for loan losses to:
		Loans				0.92	%			0.95	%			0.95	%			0.92	%			0.95	%
		Loans, excluding PPP loans 1				0.92	%			0.95	%			0.96	%			0.92	%			0.96	%
		Nonperforming loans				497.3	%			644.0	%			356.6	%			497.3	%			356.6	%
	Net charge-offs to average loans					0.02	%			0.04	%			0.01	%			0.04	%			0.12	%
Average balance sheet information
	Loans				$	3,161,850			$	2,998,144			$	2,933,654			$	3,036,532			$	2,991,556
	Total securities					606,329				620,396				713,342				624,995				612,755
	Other earning assets					188,467				322,302				479,051				321,262				478,399
	Total interest-earning assets					3,970,650				3,962,589				4,148,726				4,004,025				4,107,971
	Total assets					4,105,688				4,097,865				4,265,189				4,138,866				4,215,479
	Noninterest-bearing deposits					124,067				108,980				104,161				115,142				97,760
	Interest-bearing deposits					2,961,327				3,018,422				3,137,728				3,016,652				3,121,039
	Total deposits					3,085,394				3,127,402				3,241,889				3,131,794				3,218,799
	Shareholders' equity					371,303				374,274				366,187				375,190				351,794

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)
Dollar amounts in thousands
				September 30,				June 30,				September 30,
				2022				2022				2021
Assets
	Cash and due from banks			$	14,743			$	6,155			$	4,932
	Interest-bearing deposits				206,309				201,798				402,583
	Securities available-for-sale, at fair value				393,565				425,489				634,007
	Securities held-to-maturity, at amortized cost				191,057				185,113				62,129
	Loans held-for-sale				23,103				31,580				43,970
	Loans				3,255,906				3,082,127				2,936,148
	Allowance for loan losses				(29,866	)			(29,153	)			(28,000	)
		Net loans			3,226,040				3,052,974				2,908,148
	Accrued interest receivable				16,918				17,466				14,866
	Federal Home Loan Bank of Indianapolis stock				28,350				25,219				25,650
	Cash surrender value of bank-owned life insurance				39,612				39,369				38,660
	Premises and equipment, net				70,747				70,288				52,700
	Goodwill				4,687				4,687				4,687
	Servicing asset				5,795				5,345				4,412
	Other real estate owned				-				-				1,188
	Accrued income and other assets				43,498				34,323				54,360
		Total assets		$	4,264,424			$	4,099,806			$	4,252,292
Liabilities
	Noninterest-bearing deposits			$	142,875			$	126,153			$	110,117
	Interest-bearing deposits				3,049,769				3,025,948				3,114,478
		Total deposits			3,192,644				3,152,101				3,224,595
	Advances from Federal Home Loan Bank				589,926				464,925				514,920
	Subordinated debt				104,456				104,381				104,156
	Accrued interest payable				1,887				2,005				1,568
	Accrued expenses and other liabilities				14,654				11,062				36,611
		Total liabilities			3,903,567				3,734,474				3,881,850
Shareholders' equity
	Voting common stock				200,123				204,071				223,059
	Retained earnings				199,877				192,011				160,551
	Accumulated other comprehensive loss				(39,143	)			(30,750	)			(13,168	)
		Total shareholders' equity			360,857				365,332				370,442
		Total liabilities and shareholders' equity		$	4,264,424			$	4,099,806			$	4,252,292

First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited)
Dollar amounts in thousands, except per share data
					Three Months Ended												Nine Months Ended
					September 30,				June 30,				September 30,				September 30,				September 30,
					2022				2022				2021				2022				2021
Interest income
	Loans				$	34,643			$	32,415			$	30,126			$	100,246			$	91,846
	Securities - taxable					2,701				2,567				2,297				7,489				5,997
	Securities - non-taxable					491				328				241				1,068				781
	Other earning assets					1,264				796				370				2,436				1,067
		Total interest income				39,099				36,106				33,034				111,239				99,691
Interest expense
	Deposits					10,520				6,408				7,090				23,025				23,423
	Other borrowed funds					4,585				4,018				5,025				12,790				13,217
		Total interest expense				15,105				10,426				12,115				35,815				36,640
		Net interest income				23,994				25,680				20,919				75,424				63,051
Provision for loan losses						892				1,185				(29	)			2,868				1,268
		Net interest income after provision
			for loan losses			23,102				24,495				20,948				72,556				61,783
Noninterest income
	Service charges and fees					248				281				276				845				822
	Loan servicing revenue					653				620				511				1,858				1,390
	Loan servicing asset revaluation					(333	)			(470	)			(274	)			(1,100	)			(669	)
	Mortgage banking activities					871				1,710				3,850				4,454				12,274
	Gain on sale of loans					2,713				1,952				2,719				8,510				7,461
	Gain on sale of premises and equipment					-				-				-				-				2,523
	Other					164				221				731				883				1,349
		Total noninterest income				4,316				4,314				7,813				15,450				25,150
Noninterest expense
	Salaries and employee benefits					10,439				10,832				9,316				31,149				28,040
	Marketing, advertising and promotion					1,041				920				813				2,717				2,365
	Consulting and professional fees					790				1,197				728				3,912				2,792
	Data processing					483				490				380				1,422				1,224
	Loan expenses					1,142				693				383				3,417				1,458
	Premises and equipment					2,808				2,419				1,687				7,767				4,875
	Deposit insurance premium					229				287				230				797				930
	Other					1,063				1,147				914				3,579				3,159
		Total noninterest expense				17,995				17,985				14,451				54,760				44,843
Income before income taxes						9,423				10,824				14,310				33,246				42,090
Income tax provision						987				1,279				2,220				4,056				6,454
Net income					$	8,436			$	9,545			$	12,090			$	29,190			$	35,636
Per common share data
Earnings per share - basic					$	0.89			$	0.99			$	1.22			$	3.04			$	3.59
Earnings per share - diluted					$	0.89			$	0.99			$	1.21			$	3.01			$	3.57
Dividends declared per share					$	0.06			$	0.06			$	0.06			$	0.18			$	0.18

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
					September 30, 2022										June 30, 2022										September 30, 2021
					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-sale 1			$	3,175,854			$	34,643		4.33	%		$	3,019,891			$	32,415		4.31	%		$	2,956,333			$	30,126		4.04	%
		Securities - taxable				532,470				2,701		2.01	%			543,422				2,567		1.89	%			629,101				2,297		1.45	%
		Securities - non-taxable				73,859				491		2.64	%			76,974				328		1.71	%			84,241				241		1.14	%
		Other earning assets				188,467				1,264		2.66	%			322,302				796		0.99	%			479,051				370		0.31	%
			Total interest-earning assets			3,970,650				39,099		3.91	%			3,962,589				36,106		3.65	%			4,148,726				33,034		3.16	%
	Allowance for loan losses					(29,423	)									(28,599	)									(28,127	)
	Noninterest-earning assets					164,461										163,875										144,590
		Total assets			$	4,105,688									$	4,097,865									$	4,265,189
Liabilities
	Interest-bearing liabilities
		Interest-bearing demand deposits			$	342,116			$	551		0.64	%		$	348,274			$	466		0.54	%		$	198,637			$	150		0.30	%
		Savings accounts				57,700				111		0.76	%			66,657				68		0.41	%			62,195				56		0.36	%
		Money market accounts				1,369,783				4,581		1.33	%			1,427,665				1,921		0.54	%			1,498,218				1,532		0.41	%
		BaaS - brokered deposits				153,936				859		2.21	%			71,234				154		0.87	%			-				-		0.00	%
		Certificates and brokered deposits				1,037,792				4,418		1.69	%			1,104,592				3,799		1.38	%			1,378,678				5,352		1.54	%
			Total interest-bearing deposits			2,961,327				10,520		1.41	%			3,018,422				6,408		0.85	%			3,137,728				7,090		0.90	%
		Other borrowed funds				637,877				4,585		2.85	%			583,553				4,018		2.76	%			611,975				5,025		3.26	%
			Total interest-bearing liabilities			3,599,204				15,105		1.67	%			3,601,975				10,426		1.16	%			3,749,703				12,115		1.28	%
	Noninterest-bearing deposits					124,067										108,980										104,161
	Other noninterest-bearing liabilities					11,114										12,636										45,138
		Total liabilities				3,734,385										3,723,591										3,899,002
Shareholders' equity						371,303										374,274										366,187
Total liabilities and shareholders' equity					$	4,105,688									$	4,097,865									$	4,265,189
Net interest income									$	23,994									$	25,680									$	20,919
Interest rate spread												2.24	%									2.49	%									1.88	%
Net interest margin												2.40	%									2.60	%									2.00	%
Net interest margin - FTE 2,3												2.53	%									2.74	%									2.13	%

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
					Nine Months Ended
					September 30, 2022										September 30, 2021
					Average				Interest /			Yield /			Average				Interest /			Yield /
					Balance				Dividends			Cost			Balance				Dividends			Cost
Assets
	Interest-earning assets
		Loans, including loans held-for-sale 1			$	3,057,768			$	100,246		4.38	%		$	3,016,817			$	91,846		4.07	%
		Securities - taxable				547,759				7,489		1.83	%			527,625				5,997		1.52	%
		Securities - non-taxable				77,236				1,068		1.85	%			85,130				781		1.23	%
		Other earning assets				321,262				2,436		1.01	%			478,399				1,067		0.30	%
			Total interest-earning assets			4,004,025				111,239		3.71	%			4,107,971				99,691		3.24	%
	Allowance for loan losses					(28,671	)									(29,446	)
	Noninterest-earning assets					163,512										136,954
		Total assets			$	4,138,866									$	4,215,479
Liabilities
	Interest-bearing liabilities
		Interest-bearing demand deposits			$	336,311			$	1,429		0.57	%		$	190,785			$	425		0.30	%
		Savings accounts				61,647				232		0.50	%			54,740				145		0.35	%
		Money market accounts				1,416,984				8,006		0.76	%			1,428,554				4,385		0.41	%
		BaaS - brokered deposits				79,613				1,019		1.71	%			-				-		0.00	%
		Certificates and brokered deposits				1,122,097				12,339		1.47	%			1,446,960				18,468		1.71	%
			Total interest-bearing deposits			3,016,652				23,025		1.02	%			3,121,039				23,423		1.00	%
		Other borrowed funds				613,609				12,790		2.79	%			593,605				13,217		2.98	%
			Total interest-bearing liabilities			3,630,261				35,815		1.32	%			3,714,644				36,640		1.32	%
	Noninterest-bearing deposits					115,142										97,760
	Other noninterest-bearing liabilities					18,273										51,281
		Total liabilities				3,763,676										3,863,685
Shareholders' equity						375,190										351,794
Total liabilities and shareholders' equity					$	4,138,866									$	4,215,479
Net interest income									$	75,424									$	63,051
Interest rate spread												2.39	%									1.92	%
Net interest margin												2.52	%									2.05	%
Net interest margin - FTE 2,3												2.65	%									2.19	%

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
					September 30, 2022						June 30, 2022						September 30, 2021
					Amount			Percent			Amount			Percent			Amount			Percent
Commercial loans
	Commercial and industrial				$	104,780		3.2	%		$	110,540		3.6	%		$	107,142		3.6	%
	Owner-occupied commercial real estate					58,615		1.8	%			61,277		2.0	%			84,819		2.9	%
	Investor commercial real estate					91,021		2.8	%			52,648		1.7	%			28,505		1.0	%
	Construction					139,509		4.3	%			143,475		4.7	%			115,414		3.9	%
	Single tenant lease financing					895,302		27.4	%			867,181		28.1	%			921,998		31.5	%
	Public finance					614,139		18.9	%			613,759		19.9	%			601,738		20.5	%
	Healthcare finance					293,686		9.0	%			317,180		10.3	%			417,388		14.2	%
	Small business lending					113,001		3.5	%			102,724		3.3	%			102,889		3.5	%
	Franchise finance					225,012		6.8	%			168,942		5.5	%			25,598		0.9	%
		Total commercial loans				2,535,065		77.7	%			2,437,726		79.1	%			2,405,491		82.0	%
Consumer loans
	Residential mortgage					337,565		10.4	%			281,124		9.1	%			188,750		6.4	%
	Home equity					22,114		0.7	%			19,928		0.6	%			17,960		0.6	%
	Trailers					162,161		5.0	%			154,555		5.0	%			147,806		5.0	%
	Recreational vehicles					115,694		3.6	%			105,876		3.4	%			90,192		3.1	%
	Other consumer loans					34,657		1.1	%			32,524		1.2	%			30,398		1.0	%
		Total consumer loans				672,191		20.8	%			594,007		19.3	%			475,106		16.1	%
Net deferred loan fees, premiums, discounts and other 1						48,650		1.5	%			50,394		1.6	%			55,551		1.9	%
Total loans					$	3,255,906		100.0	%		$	3,082,127		100.0	%		$	2,936,148		100.0	%
					September 30, 2022						June 30, 2022						September 30, 2021
					Amount			Percent			Amount			Percent			Amount			Percent
Deposits
	Noninterest-bearing deposits				$	142,635		4.5	%		$	126,153		4.0	%		$	110,117		3.4	%
	Interest-bearing demand deposits					337,765		10.6	%			350,551		11.1	%			201,557		6.3	%
	Savings accounts					52,228		1.6	%			65,365		2.1	%			66,762		2.1	%
	Money market accounts					1,378,087		43.2	%			1,363,424		43.3	%			1,479,358		45.8	%
	BaaS - brokered deposits					96,287		3.0	%			194,133		6.2	%			-		0.0	%
	Certificates of deposits					773,040		24.2	%			800,598		25.3	%			1,043,898		32.4	%
	Brokered deposits					412,602		12.9	%			251,877		8.0	%			322,903		10.0	%
Total deposits					$	3,192,644		100.0	%		$	3,152,101		100.0	%		$	3,224,595		100.0	%

1 Includes carrying value adjustments of $33.9 million, $35.4 million and $38.9 million related to terminated interest rate swaps associated with public finance loans as of September 30, 2022, June 30, 2022 and September 30, 2021, respectively.

First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
				Three Months Ended												Nine Months Ended
				September 30,				June 30,				September 30,				September 30,				September 30,
				2022				2022				2021				2022				2021
Total equity - GAAP				$	360,857			$	365,332			$	370,442			$	360,857			$	370,442
Adjustments:
		Goodwill			(4,687	)			(4,687	)			(4,687	)			(4,687	)			(4,687	)
Tangible common equity				$	356,170			$	360,645			$	365,755			$	356,170			$	365,755
Total assets - GAAP				$	4,264,424			$	4,099,806			$	4,252,292			$	4,264,424			$	4,252,292
Adjustments:
		Goodwill			(4,687	)			(4,687	)			(4,687	)			(4,687	)			(4,687	)
Tangible assets				$	4,259,737			$	4,095,119			$	4,247,605			$	4,259,737			$	4,247,605
Common shares outstanding					9,290,885				9,404,000				9,854,153				9,290,885				9,854,153
Book value per common share				$	38.84			$	38.85			$	37.59			$	38.84			$	37.59
Effect of goodwill					(0.50	)			(0.50	)			(0.47	)			(0.50	)			(0.47	)
Tangible book value per common share				$	38.34			$	38.35			$	37.12			$	38.34			$	37.12
Total shareholders' equity to assets					8.46	%			8.91	%			8.71	%			8.46	%			8.71	%
Effect of goodwill					(0.10	%)			(0.10	%)			(0.10	%)			(0.10	%)			(0.10	%)
Tangible common equity to tangible assets					8.36	%			8.81	%			8.61	%			8.36	%			8.61	%
Total average equity - GAAP				$	371,303			$	374,274			$	366,187			$	375,190			$	351,794
Adjustments:
		Average goodwill			(4,687	)			(4,687	)			(4,687	)			(4,687	)			(4,687	)
Average tangible common equity				$	366,616			$	369,587			$	361,500			$	370,503			$	347,107
Return on average shareholders' equity					9.01	%			10.23	%			13.10	%			10.40	%			13.54	%
Effect of goodwill					0.12	%			0.13	%			0.17	%			0.13	%			0.19	%
Return on average tangible common equity					9.13	%			10.36	%			13.27	%			10.53	%			13.73	%
Total interest income				$	39,099			$	36,106			$	33,034			$	111,239			$	99,691
Adjustments:
		Fully-taxable equivalent adjustments 1			1,280				1,377				1,356				3,971				4,105
Total interest income - FTE				$	40,379			$	37,483			$	34,390			$	115,210			$	103,796
Total interest income - FTE				$	40,379			$	37,483			$	34,390			$	115,210			$	103,796
Adjustments:
		Income from tax refund advance loans			-				(149	)			-				(3,013	)			-
Adjusted total interest income - FTE				$	40,379			$	37,334			$	34,390			$	112,197			$	103,796
Net interest income				$	23,994			$	25,680			$	20,919			$	75,424			$	63,051
Adjustments:
		Fully-taxable equivalent adjustments 1			1,280				1,377				1,356				3,971				4,105
Net interest income - FTE				$	25,274			$	27,057			$	22,275			$	79,395			$	67,156
Net interest income				$	23,994			$	25,680			$	20,919			$	75,424			$	63,051
Adjustments:
		Subordinated debt redemption cost			-				-				810				-				810
		Income from tax refund advance loans			-				(149	)			-				(3,013	)			-
Adjusted net interest income				$	23,994			$	25,531			$	21,729			$	72,411			$	63,861
Net interest income				$	23,994			$	25,680			$	20,919			$	75,424			$	63,051
Adjustments:
		Fully-taxable equivalent adjustments 1			1,280				1,377				1,356				3,971				4,105
		Subordinated debt redemption cost			-				-				810				-				810
		Income from tax refund advance loans			-				(149	)			-				(3,013	)			-
Adjusted net interest income - FTE				$	25,274			$	26,908			$	23,085			$	76,382			$	67,966

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												Nine Months Ended
				September 30,				June 30,				September 30,				September 30,				September 30,
				2022				2022				2021				2022				2021
Net interest margin					2.40	%			2.60	%			2.00	%			2.52	%			2.05	%
Effect of fully-taxable equivalent adjustments 1					0.13	%			0.14	%			0.13	%			0.13	%			0.14	%
Net interest margin - FTE					2.53	%			2.74	%			2.13	%			2.65	%			2.19	%
Net interest margin					2.40	%			2.60	%			2.00	%			2.52	%			2.05	%
Effect of subordinated debt redemption cost					0.00	%			0.00	%			0.08	%			0.00	%			0.02	%
Effect of income from tax refund advance loans					0.00	%			(0.02	%)			0.00	%			(0.10	%)			0.00	%
Adjusted net interest margin					2.40	%			2.58	%			2.08	%			2.42	%			2.07	%
Net interest margin					2.40	%			2.60	%			2.00	%			2.52	%			2.05	%
Effect of fully-taxable equivalent adjustments 1					0.13	%			0.14	%			0.13	%			0.13	%			0.14	%
Effect of subordinated debt redemption cost					0.00	%			0.00	%			0.08	%			0.00	%			0.02	%
Effect of income from tax refund advance loans					0.00	%			(0.02	%)			0.00	%			(0.10	%)			0.00	%
Adjusted net interest margin - FTE					2.53	%			2.72	%			2.21	%			2.55	%			2.21	%
Provision for loan losses				$	892			$	1,185			$	(29	)		$	2,868			$	1,268
Adjustments:
		Provision for tax refund advance loans losses			-				(18	)			-				(1,860	)			-
Provision (benefit) for loan losses, excluding tax refund advance loans				$	892			$	1,167			$	(29	)		$	1,008			$	1,268
Average loans				$	3,161,850			$	2,998,144			$	2,933,654			$	3,036,532			$	2,991,556
Adjustments:
		Average tax refund advance loans			-				(3,185	)			-				(20,996	)			-
Average loans, excluding tax refund advance loans				$	3,161,850			$	2,994,959			$	2,933,654			$	3,015,536			$	2,991,556
Net charge-offs to average loans					0.02	%			0.04	%			0.01	%			0.04	%			0.12	%
Adjustments:
		Effect of tax refund advance lending net charge-offs to average loans			0.00	%			(0.05	%)			0.00	%			(0.08	%)			0.00	%
Net (recoveries) charge-offs to average loans, excluding tax refund advance loans					0.02	%			(0.01	%)			0.01	%			(0.04	%)			0.12	%
Allowance for loan losses				$	29,866			$	29,153			$	28,000			$	29,866			$	28,000
Loans				$	3,255,906			$	3,082,127			$	2,936,148			$	3,255,906			$	2,936,148
Adjustments:
		PPP loans			-				(194	)			(14,981	)			-				(14,981	)
Loans, excluding PPP loans				$	3,255,906			$	3,081,933			$	2,921,167			$	3,255,906			$	2,921,167
Allowance for loan losses to loans					0.92	%			0.95	%			0.95	%			0.92	%			0.95	%
Effect of PPP loans					0.00	%			0.00	%			0.01	%			0.00	%			0.01	%
Allowance for loan losses to loans, excluding PPP loans					0.92	%			0.95	%			0.96	%			0.92	%			0.96	%

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												Nine Months Ended
				September 30,				June 30,				September 30,				September 30,				September 30,
				2022				2022				2021				2022				2021
Noninterest expense - GAAP				$	17,995			$	17,985			$	14,451			$	54,760			$	44,843
Adjustments:
		Acquisition-related expenses			-				(103	)			-				(273	)			-
		Write-down of software			(125	)			-				-				(125	)			-
		Nonrecurring consulting fee			-				-				-				(875	)			-
		Discretionary inflation bonus			-				(531	)			-				(531	)			-
		Accelerated equity compensation			-				(289	)			-				(289	)			-
Adjusted noninterest expense				$	17,870			$	17,062			$	14,451			$	52,667			$	44,843
Income before income taxes - GAAP				$	9,423			$	10,824			$	14,310			$	33,246			$	42,090
Adjustments:
		Gain on sale of premises and equipment			-				-				-				-				(2,523	)
		Acquisition-related expenses			-				103				-				273				-
		Write-down of software			125				-				-				125				-
		Subordinated debt redemption cost			-				-				810				-				810
		Nonrecurring consulting fee			-				-				-				875				-
		Discretionary inflation bonus			-				531				-				531				-
		Accelerated equity compensation			-				289				-				289				-
Adjusted income before income taxes				$	9,548			$	11,747			$	15,120			$	35,339			$	40,377
Income tax provision - GAAP				$	987			$	1,279			$	2,220			$	4,056			$	6,454
Adjustments:1
		Gain on sale of premises and equipment			-				-				-				-				(530	)
		Acquisition-related expenses			-				21				-				57				-
		Write-down of software			26				-				-				26				-
		Subordinated debt redemption cost			-				-				170				-				170
		Nonrecurring consulting fee			-				-				-				184				-
		Discretionary inflation bonus			-				112				-				112				-
		Accelerated equity compensation			-				61				-				61				-
Adjusted income tax provision				$	1,013			$	1,473			$	2,390			$	4,496			$	6,094
Net income - GAAP				$	8,436			$	9,545			$	12,090			$	29,190			$	35,636
Adjustments:
		Gain on sale of premises and equipment			-				-				-				-				(1,993	)
		Acquisition-related expenses			-				82				-				216				-
		Write-down of software			99				-				-				99				-
		Subordinated debt redemption cost			-				-				640				-				640
		Nonrecurring consulting fee			-				-				-				691				-
		Discretionary inflation bonus			-				419				-				419				-
		Accelerated equity compensation			-				228				-				228				-
Adjusted net income				$	8,535			$	10,274			$	12,730			$	30,843			$	34,283
Diluted average common shares outstanding					9,525,855				9,658,689				9,988,102				9,681,742				9,974,071
Diluted earnings per share - GAAP				$	0.89			$	0.99			$	1.21			$	3.01			$	3.57
Adjustments:
		Effect of gain on sale of premises and equipment			-				-				-				-				(0.19	)
		Effect of acquisition-related expenses			-				0.01				-				0.02				-
		Effect of write-down of software			0.01				-				-				0.01				-
		Effect of nonrecurring consulting fee			-				-				-				0.07				-
		Effect of subordinated debt redemption cost			-				-				0.06				-				0.06
		Effect of discretionary inflation bonus			-				0.04				-				0.04				-
		Effect of accelerated equity compensation			-				0.02				-				0.02				-
Adjusted diluted earnings per share				$	0.90			$	1.06			$	1.27			$	3.17			$	3.44
Return on average assets					0.82	%			0.93	%			1.12	%			0.94	%			1.13	%
		Effect of gain on sale of premises and equipment			0.00	%			0.00	%			0.00	%			0.00	%			(0.06	%)
		Effect of acquisition-related expenses			0.00	%			0.01	%			0.00	%			0.01	%			0.00	%
		Effect of write-down of software			0.01	%			0.00	%			0.00	%			0.00	%			0.00	%
		Effect of nonrecurring consulting fee			0.00	%			0.00	%			0.00	%			0.02	%			0.00	%
		Effect of subordinated debt redemption cost			0.00	%			0.00	%			0.06	%			0.00	%			0.02	%
		Effect of discretionary inflation bonus			0.00	%			0.04	%			0.00	%			0.01	%			0.00	%
		Effect of accelerated equity compensation			0.00	%			0.02	%			0.00	%			0.01	%			0.00	%
Adjusted return on average assets					0.83	%			1.00	%			1.18	%			0.99	%			1.09	%

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												Nine Months Ended
				September 30,				June 30,				September 30,				September 30,				September 30,
				2022				2022				2021				2022				2021
Return on average shareholders' equity					9.01	%			10.23	%			13.10	%			10.40	%			13.54	%
		Effect of gain on sale of premises and equipment			0.00	%			0.00	%			0.00	%			0.00	%			(0.75	%)
		Effect of acquisition-related expenses			0.00	%			0.09	%			0.00	%			0.08	%			0.00	%
		Effect of write-down of software			0.11	%			0.00	%			0.00	%			0.04	%			0.00	%
		Effect of nonrecurring consulting fee			0.00	%			0.00	%			0.00	%			0.25	%			0.00	%
		Effect of subordinated debt redemption cost			0.00	%			0.00	%			0.69	%			0.00	%			0.24	%
		Effect of discretionary inflation bonus			0.00	%			0.45	%			0.00	%			0.15	%			0.00	%
		Effect of accelerated equity compensation			0.00	%			0.24	%			0.00	%			0.08	%			0.00	%
Adjusted return on average shareholders' equity					9.12	%			11.01	%			13.79	%			11.00	%			13.03	%
Return on average tangible common equity					9.13	%			10.36	%			13.27	%			10.53	%			13.73	%
		Effect of gain on sale of premises and equipment			0.00	%			0.00	%			0.00	%			0.00	%			(0.77	%)
		Effect of acquisition-related expenses			0.00	%			0.09	%			0.00	%			0.08	%			0.00	%
		Effect of write-down of software			0.11	%			0.00	%			0.00	%			0.04	%			0.00	%
		Effect of nonrecurring consulting fee			0.00	%			0.00	%			0.00	%			0.25	%			0.00	%
		Effect of subordinated debt redemption cost			0.00	%			0.00	%			0.70	%			0.00	%			0.25	%
		Effect of discretionary inflation bonus			0.00	%			0.45	%			0.00	%			0.15	%			0.00	%
		Effect of accelerated equity compensation			0.00	%			0.25	%			0.00	%			0.08	%			0.00	%
Adjusted return on average tangible common equity					9.24	%			11.15	%			13.97	%			11.13	%			13.21	%
Effective income tax rate					10.5	%			11.8	%			15.5	%			12.2	%			15.3	%
		Effect of gain on sale of premises and equipment			0.0	%			0.0	%			0.0	%			0.0	%			(0.6	%)
		Effect of acquisition-related expenses			0.0	%			0.2	%			0.0	%			0.2	%			0.0	%
		Effect of write-down of software			0.3	%			0.0	%			0.0	%			0.1	%			0.0	%
		Effect of nonrecurring consulting fee			0.0	%			0.0	%			0.0	%			0.5	%			0.0	%
		Effect of subordinated debt redemption cost			0.0	%			0.0	%			0.3	%			0.0	%			0.4	%
		Effect of discretionary inflation bonus			0.0	%			1.0	%			0.0	%			0.3	%			0.0	%
		Effect of accelerated equity compensation			0.0	%			0.6	%			0.0	%			0.2	%			0.0	%
Adjusted effective income tax rate					10.8	%			13.6	%			15.8	%			13.5	%			15.1	%
Income before income taxes - GAAP				$	9,423			$	10,824			$	14,310			$	33,246			$	42,090
Adjustments:
		Income from tax refund advance lending			-				(149	)			-				(3,013	)			-
		Provision for tax refund advance lending losses			-				18				-				1,860				-
		Tax refund advance lending servicing fee			-				9				-				930				-
Income before income taxes, excluding tax refund advance loans				$	9,423			$	10,702			$	14,310			$	33,023			$	42,090
Income tax provision - GAAP				$	987			$	1,279			$	2,220			$	4,056			$	6,454
Adjustments:1
		Income from tax refund advance lending			-				(31	)			-				(633	)			-
		Provision for tax refund advance lending losses			-				4				-				391				-
		Tax refund advance lending servicing fee			-				2				-				195				-
Income tax provision, excluding tax refund advance loans				$	987			$	1,254			$	2,220			$	4,009			$	6,454
Net income - GAAP				$	8,436			$	9,545			$	12,090			$	29,190			$	35,636
Adjustments:
		Income from tax refund advance lending			-				(118	)			-				(2,380	)			-
		Provision for tax refund advance lending losses			-				14				-				1,469				-
		Tax refund advance lending servicing fee			-				7				-				735				-
Net income, excluding tax refund advance loans				$	8,436			$	9,448			$	12,090			$	29,014			$	35,636

1 Assuming a 21% tax rate

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221017005818/en/

Investors/Analysts

Paula Deemer

Director of Corporate Administration

(317) 428-4628

investors@firstib.com

Media

Nicole Lorch

President & Chief Operating Officer

(317) 532-7906

nlorch@firstib.com

Source: First Internet Bancorp

FAQ

What were First Internet Bancorp's net earnings in Q3 2022?

First Internet Bancorp reported net income of $8.4 million for Q3 2022.

How did diluted earnings per share change for INBK in Q3 2022?

Diluted earnings per share for INBK decreased to $0.89 in Q3 2022.

What is the loan growth percentage for First Internet Bancorp in Q3 2022?

Loan growth was 5.6% in Q3 2022 compared to Q2 2022.

What is the net interest margin for INBK in Q3 2022?

The net interest margin for INBK was 2.40% in Q3 2022.

How many shares did First Internet Bancorp repurchase in Q3 2022?

First Internet Bancorp repurchased 120,000 shares at an average price of $36.56.