First Internet Bancorp reported a significant increase in financial performance for the first quarter of 2026, with net income rising to $2.5 million, or $0.29 per diluted share, compared to $943,000, or $0.11 per diluted share, in the same period last year. This represents a 166.1% increase in net income and a 163.6% increase in diluted earnings per share. The growth was primarily driven by a $6.5 million increase in net interest income, which rose to $31.6 million, and a $1.1 million increase in noninterest income, totaling $11.5 million. However, these gains were partially offset by a $4.4 million increase in the provision for credit losses and a $1.5 million rise in noninterest expenses.
In terms of operational metrics, total assets increased by $140 million, or 2.5%, to $5.7 billion as of March 31, 2026, compared to $5.6 billion at the end of 2025. Total loans also saw a modest increase, rising to $3.8 billion, up $29.1 million, or 0.8%. The growth in loans was primarily attributed to increases in construction and single-tenant lease financing, although there were early payoffs in investor commercial real estate loans. The company’s total deposits increased by $141.8 million, or 2.9%, to $5.0 billion, driven by growth in fintech partnership deposits.
The company’s allowance for credit losses (ACL) stood at $56.5 million, representing 1.50% of total loans, slightly up from 1.49% at the end of 2025. The increase in the ACL was in response to elevated net charge-offs, which totaled $15.8 million for the quarter, compared to $9.7 million in the same quarter last year. The provision for credit losses was $16.6 million, reflecting the company's proactive approach to managing credit risk amid rising nonperforming loans, which increased to $61.6 million.
Strategically, First Internet Bancorp continues to focus on expanding its digital banking capabilities and partnerships with fintech companies to enhance its service offerings. The company has emphasized its commitment to small business lending, closing $72.5 million in SBA 7(a) loans during the quarter. The outlook remains positive, with management expressing confidence in the bank's ability to navigate market conditions and continue to grow its loan portfolio while managing credit risk effectively.
Overall, First Internet Bancorp's first-quarter results reflect a strong financial position and strategic focus on growth, particularly in the small business sector, while also addressing the challenges posed by credit losses and market fluctuations.
About First Internet Bancorp
First Internet Bancorp is a bank holding company based in Indiana, operating through its wholly-owned subsidiary, First Internet Bank of Indiana. It provides digital banking services, including consumer, small business, and municipal banking products, primarily via online channels nationwide. The company specializes in commercial lending, public finance, and fintech partnerships, emphasizing innovation, community involvement, and a strong digital platform to serve entrepreneurs and diverse customer segments.
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