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- **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.

First Internet Bancorp (INBK) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

INBK

INBK fundamentals

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