Q4 2025 First Internet Bancorp Earnings Call Transcript
Key Points
- First Internet Bancorp (INBK) reported a strong fourth-quarter performance with a 21% increase in quarterly revenue compared to the prior year.
- The company achieved a 30% year-over-year growth in net interest income and consistent expansion of net interest margin throughout 2025.
- The strategic sale of $850 million in single-tenant lease financing loans to Blackstone improved the capital position and enhanced the rate risk profile.
- Banking-as-a-Service initiatives generated over $1.3 billion in new deposits for 2025, tripling the amount from the previous year.
- First Internet Bancorp maintained its position as a top 10 SBA 7(a) lender, with nearly $580 million in funded origination during 2025.
- The company faced credit challenges in its small business lending and franchise finance portfolios, leading to a higher provision for credit losses.
- Non-performing loans increased to $58.5 million in the fourth quarter, with a ratio of non-performing loans to total loans at 1.56%.
- The provision for credit losses was $12 million in the fourth quarter, primarily due to $16 million of net charge-offs.
- First Internet Bancorp anticipates a higher provision for credit losses in 2026, with expectations of $50 million to $53 million for the full year.
- The company expects a decrease in gain on sale revenue from SBA loan sales in 2026, impacting non-interest income.
Thank you for standing by. My name is [Fulvia]. I will be your conference operator today.
At this time, I would like to welcome everyone to the First Internet Bancorp's earnings conference call for the fourth-quarter and full-year 2025.
(Operator Instructions) Please note that this event is being recorded. It is now my pleasure to turn the call over to Julia Ferrara from ICR. You may begin your conference.
Thank you, operator. Hello, everyone. Thank you for joining us to discuss First Internet Bancorp's fourth-quarter and full-year 2025 financial results.
The company issued its earnings press release earlier this afternoon. 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 from the management team today are Chairman
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