First Internet Bancorp's Q4 2024: Contradictions Unveiled on Charge-Offs, Rate Impact, and Growth Prospects

Financial Performance and Revenue Growth:
- First Internet Bancorp reported net income of $87.4 million for 2024, up 17%, and diluted earnings per share of $2.88, tripling from 2023.
- The growth was driven by an increase in net interest income by 4% and a remarkable 81% rise in non-interest income, largely due to increased SBA lending and gain on sale revenue.

Loan and Deposit Growth:
- The company experienced strong loan growth of 13% on an annualized basis, with balances increasing by $330 million, an increase of 9% over 2023.
- This growth was particularly attributed to the small business lending team, with SBA loan originations rising by 45% year-over-year, contributing significantly to non-interest income.

Deposit Dynamics and Liquidity:
- Deposit balances increased by 344 million or 8% during Q4, with a 3% increase in period-end deposits.
- The rise in deposits was primarily due to growth in fintech partnership deposits, which increased by 27% from Q3.

Cost and Efficiency Management:
- Non-interest expense for the quarter was $24 million, up $1.2 million from Q3, driven by compensation costs and seasonal expenses.
- The increase was partially offset by the normalization of deposit insurance premiums, keeping expenses manageable relative to revenue growth.