First Internet Bancorp (INBK) Q4 2024 earnings summary

Executive summary

• Net income for Q4 2024 was $7.3 million, up 4.9% sequentially; full-year net income reached $87.4 million, up 17% year-over-year, with diluted EPS for Q4 at $0.83 and full-year EPS up 203.2%.

• Strong commercial loan growth, especially in construction, investor CRE, and small business lending, drove higher loan yields and revenue growth, with balances up $330 million (9%).

• SBA lending drove non-interest income up 81% year-over-year, with gain on sale revenue up over 60%.

• Operating leverage improved as revenue growth outpaced expense growth, supporting profitability.

• Entered 2025 with strong momentum, solid liquidity, and capital levels, and asset quality metrics favorable to peers.

Financial highlights

• Net interest income for Q4 2024 was $24.7 million (FTE), up 17% year-over-year and 8% sequentially; full-year net interest income was $87.4 million, up 16.7%.

• Net interest margin (NIM) for Q4 was 1.67%, up 5 bps sequentially; full-year NIM was 1.65%, up 9 bps year-over-year.

• Noninterest income for Q4 was $15.9 million, up 32.5% sequentially, including $4.7 million in prepayment and swap gains; adjusted noninterest income fell 6.9%.

• Noninterest expense for Q4 was $24.0 million, up 5.1% from Q3, mainly due to higher salaries, benefits, and deposit insurance premiums.

• Tangible book value per share increased 5.7% year-over-year to $43.77.

Outlook and guidance

• Expect loan growth of 10%-12% and deposit growth of 5%-7% in 2025.

• Project annual net interest income to increase in the mid-30% range over 2024, with net interest margin reaching 2.20%-2.30% by Q4 2025.

• Core non-interest income expected to rise 9%-12% in 2025; non-interest expense to increase 10%-15%.

• Provision for credit losses forecasted to be 15%-20% higher than 2024, reflecting a conservative approach.

• Management anticipates continued net interest margin expansion and earnings growth in 2025, supported by a favorable rate environment and core business momentum.