First Internet Bancorp (INBK) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2025 results, with Q4 net income of $5.3 million, adjusted net income of $5.6 million, and diluted EPS of $0.60 (adjusted $0.64), reflecting operational efficiency and digital-first growth.

• Maintained nine consecutive quarters of interest income growth, driven by diversified lending, BaaS/fintech partnerships, and disciplined expense management.

• Completed a strategic $850 million loan sale to Blackstone, enhancing capital and balance sheet flexibility.

• BaaS initiatives generated over $1.3 billion in new deposits and processed $165 billion in payments, up 225% from 2024.

• Returned $2.7 million to shareholders via dividends and share repurchases, including a buyback of 27,998 shares at $18.64 average price.

Financial highlights

• Q4 net income was $5.3 million ($0.60 per diluted share); adjusted net income was $5.6 million ($0.64 per share) excluding a $400,000 pre-tax loss on loan sale.

• Adjusted total revenue for Q4 was $42.1 million, up 21% year-over-year; adjusted pre-provision net revenue was $17.9 million, up 66% year-over-year.

• Net interest income for Q4 was $30.3 million (up 29% year-over-year); FTE net interest income was $31.5 million; net interest margin improved to 2.22%, FTE NIM 2.30%, both up 55 bps year-over-year.

• Total loan balances at year-end were $3.7 billion, up 4% sequentially; total deposits were $4.8 billion, down slightly from Q3 2025.

• Tangible book value per share increased to $40.87, up 2.5% from 3Q25.

Outlook and guidance

• 2026 loan growth expected at 15%-17%, with net interest margin projected to reach 2.75%-2.80% by Q4 2026.

• Full-year 2026 net interest income forecasted at $155-$160 million; non-interest income at $33-$35 million.

• Operating expenses projected at $111-$112 million, reflecting continued tech and AI investment.

• Provision for credit losses guided at $50-$53 million for 2026, with higher provisions in H1 and improvement in H2.

• 2026 EPS guidance is $2.35-$2.45.