First Internet Bancorp reported a strong fourth quarter, driven by significant growth in net interest income and a widening net interest margin. The company also highlighted robust loan production and strategic advancements in technology and credit underwriting, positioning it for continued growth in 2026 despite ongoing elevated provisions for credit losses.
Adjusted total revenue increased 21% year-over-year to $42.1 million.
positiveNet interest income increased 29% year-over-year to $30.3 million.
positiveFully-taxable equivalent net interest margin expanded 55 basis points to 2.30%.
positiveAdjusted pre-provision net revenue grew 66% year-over-year to $17.9 million.
positiveLoan pipelines are solid, setting the stage for continued net interest income growth in 2026.
positiveTangible book value per share increased 3% from the third quarter of 2025 to $40.87.
positiveProvision for credit losses remained elevated at $12.0 million for the quarter, and is expected to remain elevated in the first half of 2026.
attentionNet charge-offs to average loans were 1.68%, improved from 1.89% in Q3 2025 but still significant.
attentionNonperforming loans to total loans stood at 1.56%, up from 1.48% in Q3 2025.
attentionThe company reported a pre-tax loss of $0.4 million on the sale of $14.3 million of single tenant lease financing loans.
attentionFull year 2026 provision for credit losses is projected to be $50 million to $53 million.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
We are pleased to close 2025 with strong fourth quarter results that demonstrate the resilience of our differentiated digital banking model.
In 2025, we produced solid core financial performance as net interest income grew 30% year-over-year and delivered meaningful strategic accomplishments including the successful $850 million single tenant lease financing loan sale to Blackstone, exceptional growth in our Banking-as-a-Service initiatives and strategic investments in technology to further improve our credit underwriting and efficiency.
Additionally, we took decisive and proactive measures to address credit challenges in our SBA and franchise finance portfolios through enhanced underwriting standards, and improved collection and risk management through strategic investments in AI and automation.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.