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First Internet Bancorp Q1 2025 Earnings Report
First Internet Bancorp reported its financial and operational results for the first quarter ended March 31, 2025, showing an increase in net income and diluted earnings per share.
Key Takeaways
First Internet Bancorp reported a net income of $0.9 million and diluted earnings per share of $0.11 for the first quarter of 2025. The company saw solid core revenue growth, net interest margin expansion, and continued momentum in operating revenues, driven by higher yields on earning assets and reduced funding costs.
Net income for Q1 2025 was $0.9 million, with diluted earnings per share of $0.11.
Pre-tax, pre-provision income increased by 10.8% from Q4 2024 and 48.5% from Q1 2024, reaching $12.0 million.
Net interest income was $25.1 million, a 6.6% increase from Q4 2024, with a net interest margin of 1.82%.
Loan growth was $83.8 million (2.0% increase) and deposit growth was $12.4 million (0.3% increase) from Q4 2024.
First Internet Bancorp
First Internet Bancorp
First Internet Bancorp Revenue by Segment
Revenue by Segment
Commercial Loans Revenue
CapyFin.comConsumer Loans Revenue
CapyFin.com Forward Guidance
The company is well-positioned to drive future earnings growth and profitability by focusing on core strategies of diversifying revenue and optimizing its balance sheet, despite credit challenges in certain portfolios.
Positive Outlook
- Continued momentum in operating revenues for the sixth consecutive quarter.
- Higher yields on earning assets and reduced funding costs.
- Ongoing expansion of construction, commercial and industrial, and national SBA programs delivering positive operating leverage.
- Strong fintech deposit growth and strategic enhancements to loan mix strengthening balance sheet flexibility and bolstering interest income.
- Maintenance of excellent liquidity as reflected in the loans-to-deposits ratio.
Challenges Ahead
- Credit challenges in certain portfolios.
- Lower average balances in healthcare and franchise finance portfolios impacting commercial loan interest income.
- Lower average balances in residential mortgage, recreational vehicles, and home equity portfolios impacting consumer loan interest income.
- Decrease in average cash balances and lower yields earned on those balances following Fed rate cuts impacting other earning asset income.
- Elevated net charge-offs in Q1 2025, particularly in small business lending and franchise finance portfolios.