Q2 2025 First Internet Bancorp Earnings Call Transcript
Key Points
- Interest income increased while interest expense decreased, leading to a rise in net interest margin above 2%.
- Delinquencies across loan portfolios declined to 62 basis points, showing a 15 basis point improvement.
- The SBA loan portfolio showed improvement with non-accrual loans and past dues decreasing significantly.
- Net interest income for the second quarter was up 11.5% from the first quarter, with expectations for continued growth.
- Successful deposit growth was achieved through fintech partnerships, contributing to lower deposit costs.
- The company reported only $0.02 of diluted earnings per share for the quarter due to credit issues.
- Elevated provision expenses and non-performing loans were noted in franchise finance and small business lending portfolios.
- SBA loan sales were impacted by changes in industry standards, leading to a decrease in non-interest income.
- The provision for loan losses is expected to remain elevated compared to historic levels.
- SBA loan premiums have softened, affecting the gain on sale of loans in the secondary market.
Good day everyone and welcome to the First Internet Bancorp earnings conference call for the second quarter of 2025. (Operator Instructions) Also note that today's event is being recorded.
I would now like to turn the conference over to Ben Brodkowitz from Financial Profiles Inc. Please go ahead.
Thank you, operator. Hello, everyone, and thank you for joining us to discuss First Internet Bancorp's second quarter financial results. The company issued its earnings press release yesterday afternoon and it is available on the company's website at www.firstinternetbancorp.com. In addition, the company has included a slide presentation that you can refer to during the call. You can also access these slides on the website.
Joining us today from the management team are Chairman and CEO, David Becker; President and COO, Nicole Lorch; and Executive Vice President and CFO, Ken Lovick. David and Nicole will provide an
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