First Internet Bancorp Q1 Net Income Surges 166%, Revenue Climbs 21%
First Internet Bancorp’s Q1 revenue rose 21% year-over-year to $43.1 million, driven by a 26% increase in net interest income and a net interest margin expansion of 54 basis points to 2.45%. Net income jumped 166% to $2.5 million with EPS up 164%, while credit loss provisions reached $16.3 million.
1. Q1 2026 Financial Highlights
The bank posted $43.1 million in total revenue, up 21% year-over-year, with net interest income of $31.6 million (up 26%) and FTE net interest income of $32.8 million (up 25%). The net interest margin widened 54 basis points to 2.36% (2.45% FTE) and pre-provision net revenue grew 51% to $18.1 million.
2. Credit Trends and Asset Quality
Provision for credit losses rose to $16.3 million, driven by CECL re-measurements and updates to portfolio expectations. Nonperforming loans represented 1.63% of total loans with an allowance for credit losses to loans ratio of 1.50% and ACL-to-NPL coverage of 92% (122% excluding guaranteed SBA balances).
3. Loan Production and Deposit Growth
Commercial loan production remained strong, led by construction and single-tenant lease financing, supporting total loan balances of $3.8 billion (up 1% sequentially). Total deposits climbed 3% to $5.0 billion, as fintech deposits grew and $1.5 billion moved off-balance sheet, lowering funding costs by 56 basis points to 3.45%.
4. Capital Position and Strategic Initiatives
Tangible common equity to assets stood at 6.24%, with a CET1 ratio of 8.97% and total capital at 12.50%. The bank continues strategic investments in AI-driven customer service and fraud detection while expanding banking-as-a-service partnerships and maintaining its 2026 guidance amid uncertain macroeconomic conditions.