What were the key takeaways from First Internet’s earnings call?

What is First Internet's latest dividend and current dividend yield?

Did First Internet beat or miss consensus estimates last quarter?

What does First Internet do and what are its main business segments?

What is the revenue and EPS growth rate for First Internet year over year?

What factors drove the changes in First Internet's revenue and profit?

What is First Internet's gross profit margin?

What were the key takeaways from First Internet's earnings call?

- **Revenue Growth**: Adjusted total revenues up 30% QoQ to $43.5 million, driven by SBA loan sales and cost reductions.
- **Strategic Actions**: Sold $837 million STL loans to improve margin and capital; moved $700 million fintech deposits off-balance sheet.
- **Credit Improvement**: Delinquencies down 50% QoQ to 35bps, with franchise finance delinquencies reduced 80%.
- **2026 Outlook**: FTE net interest income $150 million, noninterest income $41.5-44.5 million, 2.70-2.80% net interest margin.
- **Share Buybacks**: Authorized $25 million repurchase; may act if stock remains in low teens.

**【CEO Summary Section】**
- Delivered eighth consecutive quarter of net interest income growth, with adjusted total revenues up 30% QoQ to $43.5 million, driven by SBA loan sale gains and lower deposit costs.
- Sold $837 million of STL loans, reducing interest rate risk and capital ratios, and improving net interest margin.
- Recognized $34.8 million provision for credit losses, including $21 million net charge-offs, to address small business lending and franchise finance portfolios.
- Total delinquencies improved to 35 basis points (from 62% QoQ), aligning with peer levels.
- Commercial loan originations grew $115 million (3.2%), with strong pipelines in CRE, STL, and C&I.

**【CFO Financial Commentary】**
- Reported net loss of $41.6 million ($0.0476 per share), excluding $37.8 million loan sale loss, with adjusted net loss of $12.5 million.
- Net interest income rose 8% QoQ to $30.4 million (FTE $31.5 million), driven by 11bp loan yield increase to 7.5%.
- Net interest margin expanded 8bps to 2.12% (FTE 2.04%), with 2026 outlook of 2.70-2.80%.
- Cost of deposits declined 5bps to 3.90%, with $700 million fintech deposits moved off-balance sheet.
- 2026 guidance: FTE net interest income $150 million, noninterest income $41.5-44.5 million, expenses $106-109 million.

**【Q&A Highlights】**
- **Credit Quality**: Franchise finance delinquencies down 80% QoQ, with 4 delinquent loans remaining. SBA delinquencies at 35bps, lowest in a year. ACL increased 30% to $59.9 million (1.65% of loans).
- **Government Shutdown**: $104 million SBA loans held for sale; sales may resume post-shutdown. Origination pipeline secured with $94 million pre-approval.
- **Balance Sheet Flexibility**: $1.3 billion (27%) of deposits indexed to Fed funds, enabling NII expansion with rate cuts. FTE net interest income Q4 2025: $32.75-33.5 million.
- **Strategic Moves**: Tightened SBA credit standards, AI-driven portfolio analytics, and $700 million off-balance sheet fintech deposits.
- **Share Buybacks**: Authorized to repurchase $25 million; may act if stock remains in low teens post-blackout period.

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