INBK 10-Q Quarterly Report Sept. 30, 2025

FIRST INTERNET BANCORP

10-Ks and 10-Qs

10-Q	Quarter ended Sept. 30, 2025
10-Q	Quarter ended June 30, 2025
10-Q	Quarter ended March 31, 2025
10-K	Fiscal year ended Dec. 31, 2024
10-Q	Quarter ended Sept. 30, 2024
10-Q	Quarter ended June 30, 2024
10-Q	Quarter ended March 31, 2024
10-K	Fiscal year ended Dec. 31, 2023
10-Q	Quarter ended Sept. 30, 2023
10-Q	Quarter ended June 30, 2023
10-Q	Quarter ended March 31, 2023
10-K	Fiscal year ended Dec. 31, 2022
10-Q	Quarter ended Sept. 30, 2022
10-Q	Quarter ended June 30, 2022
10-Q	Quarter ended March 31, 2022
10-K	Fiscal year ended Dec. 31, 2021
10-Q	Quarter ended Sept. 30, 2021
10-Q	Quarter ended June 30, 2021
10-Q	Quarter ended March 31, 2021
10-K	Fiscal year ended Dec. 31, 2020
10-Q	Quarter ended Sept. 30, 2020
10-Q	Quarter ended June 30, 2020
10-Q	Quarter ended March 31, 2020
10-K	Fiscal year ended Dec. 31, 2019
10-Q	Quarter ended Sept. 30, 2019
10-Q	Quarter ended June 30, 2019
10-Q	Quarter ended March 31, 2019
10-K	Fiscal year ended Dec. 31, 2018
10-Q	Quarter ended Sept. 30, 2018
10-Q	Quarter ended June 30, 2018
10-Q	Quarter ended March 31, 2018
10-K	Fiscal year ended Dec. 31, 2017
10-Q	Quarter ended Sept. 30, 2017
10-Q	Quarter ended June 30, 2017
10-Q	Quarter ended March 31, 2017
10-K	Fiscal year ended Dec. 31, 2016
10-Q	Quarter ended Sept. 30, 2016
10-Q	Quarter ended June 30, 2016
10-Q	Quarter ended March 31, 2016
10-K	Fiscal year ended Dec. 31, 2015
10-Q	Quarter ended Sept. 30, 2015
10-Q	Quarter ended June 30, 2015
10-Q	Quarter ended March 31, 2015
10-K	Fiscal year ended Dec. 31, 2014
10-Q	Quarter ended Sept. 30, 2014
10-Q	Quarter ended June 30, 2014
10-Q	Quarter ended March 31, 2014
10-K	Fiscal year ended Dec. 31, 2013
10-Q	Quarter ended Sept. 30, 2013
10-Q	Quarter ended June 30, 2013
10-Q	Quarter ended March 31, 2013
10-K	Fiscal year ended Dec. 31, 2012

PROXIES

DEF 14A	Filed on March 27, 2025
DEF 14A	Filed on Dec. 31, 2024
DEF 14A	Filed on May 20, 2024
DEF 14A	Filed on March 28, 2024
DEF 14A	Filed on March 28, 2023
DEF 14A	Filed on May 16, 2022
DEF 14A	Filed on March 28, 2022
DEF 14A	Filed on March 31, 2021
DEF 14A	Filed on March 31, 2020
DEF 14A	Filed on March 28, 2019
DEF 14A	Filed on March 29, 2018
DEF 14A	Filed on March 30, 2017
DEF 14A	Filed on March 28, 2016
DEF 14A	Filed on April 6, 2015
DEF 14A	Filed on April 4, 2014
DEF 14A	Filed on April 9, 2013

inbk-20250930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period ended September 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From ________ to ________.

Commission File Number 001-35750


First Internet Bancorp
(Exact Name of Registrant as Specified in Its Charter)


Indiana						20-3489991
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)

8701 East 116th Street Fishers , IN						46038
(Address of Principal Executive Offices)						(Zip Code)


			( 317 ) 532-7900
			(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbols

Name of each exchange on which registered

Common Stock, without par value

INBK

The Nasdaq Stock Market LLC

6.0% Fixed to Floating Subordinated Notes due 2029

INBKZ

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer ¨			Accelerated Filer þ
Non-accelerated Filer ¨			Smaller Reporting Company ☐
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

As of November 7, 2025, the registrant had 8,706,094 shares of common stock issued and outstanding.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts, but rather statements based on the current expectations of First Internet Bancorp and its consolidated subsidiaries (the “Company,” “we,” “our,” or “us”) regarding our business strategies, intended results and future performance, including without limitation statements concerning the financial condition, results of operations, trends in lending policies and loan programs, plans and prospective business partnerships, objectives, future performance and business of the Company. Forward-looking statements are generally preceded by terms such as “anticipate,” “attempt,” “believe,” “can,” “continue,” “could,” “effort,” “estimate,” “expect,” “goal,” “intend,” “likely,” “may,” “objective,” “optimistic,” “pending,” “plan,” “position,” “potential,” “preliminary,” “remain,” “scale,” “should,” “will,” “would” or other similar expressions. Such statements are subject to certain risks and uncertainties including: our business and operations and the business and operations of our vendors and customers; general economic conditions, whether national or regional, and conditions in the lending markets in which we participate that may have an adverse effect on the demand for our loans and other products (including the effects of inflationary pressures, changes in interest rates, slowdowns in economic growth, the impact of tariffs and trade policies, and the potential for high unemployment rates, as well as the financial stress on borrowers and changes to customer and client behavior and credit risk as a result of the foregoing); our credit quality and related levels of nonperforming assets and loan losses, and the value and salability of collateral for our loans; failures or breaches of or interruptions in the communication and information systems on which we rely to conduct our business that could reduce our revenues, increase our costs or lead to disruptions in our business; our dependence on capital distributions from First Internet Bank of Indiana (the “Bank”); results of examinations of us by our regulators, including the possibility that our regulators may, among other things, require us to increase our allowance for credit losses or to write-down assets; changing bank regulatory conditions, policies or programs, whether arising as new legislation or regulatory initiatives, that could lead to restrictions on activities of banks generally, or the Bank in particular; more restrictive regulatory capital requirements; increased costs, including deposit insurance premiums; regulation or prohibition of government-guaranteed lending or other income producing activities or changes in the secondary market for loans and other products; changes in market rates and prices that may adversely impact the value of securities, loans, deposits and other financial instruments and the interest rate sensitivity of our balance sheet; our liquidity requirements being adversely affected by changes in our assets and liabilities; the effect of legislative or regulatory developments, including changes in laws concerning taxes, banking, securities, insurance and other aspects of the financial services industry; potential impacts of adverse developments in the banking industry, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; inaccuracies or other failures from the use of models, including the failure of assumptions and estimates, as well as differences in, and changes to, economic, market and credit conditions; potential claims, damages, penalties, fines, costs and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions; competitive factors among financial services organizations, including product and pricing pressures and our ability to attract, develop and retain qualified banking professionals; the growth and profitability of noninterest or fee income being less than expected; the loss of any key members of senior management; the effect of changes in accounting policies and practices, as may be adopted by the Financial Accounting Standards Board, the Securities and Exchange Commission (the “SEC”), the Public Company Accounting Oversight Board and other regulatory agencies; and the effect of fiscal and governmental policies of the United States federal government. Additional factors that may affect our results include those discussed in this Quarterly Report on Form 10-Q and our most recent Annual Report on Form 10-K under the heading “Risk Factors” and in subsequent reports filed with the SEC . We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The factors listed above could affect our financial performance and could cause our actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.

Except as required by law, we do not undertake, and specifically disclaim any obligation, to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

PART I

ITEM 1. FINANCIAL STATEMENTS

First Internet Bancorp

Condensed Consolidated Balance Sheets

(Amounts in thousands except share data)


	September 30, 2025		December 31, 2024
	(Unaudited)
Assets
Cash and due from banks	$	10,923	$	9,249
Interest-bearing deposits	776,738		457,161
Total cash and cash equivalents	787,661		466,410

Securities available-for-sale, at fair value (amortized cost of $ 653,291 and $ 626,854 in 2025 and 2024, respectively)	625,906		587,355
Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $ 0.1 million and $ 0.2 million in 2025 and 2024, respectively, (fair value of $ 248,447 and $ 228,851 in 2025 and 2024, respectively)	261,725		249,796
Loans held-for-sale	141,580		54,695
Loans	3,603,506		4,170,646
Allowance for credit losses - loans	( 59,923 )		( 44,769 )
Net loans	3,543,583		4,125,877
Accrued interest receivable	26,674		28,180
Federal Home Loan Bank of Indianapolis stock	28,350		28,350
Cash surrender value of bank-owned life insurance	42,256		41,394
Premises and equipment, net	68,843		71,453
Goodwill	4,687		4,687
Servicing asset, at fair value	22,107		16,389
Other real estate owned	1,801		272
Accrued income and other assets	84,001		63,001
Total assets	$	5,639,174	$	5,737,859
Liabilities and Shareholders’ Equity
Liabilities
Noninterest-bearing deposits	$	243,539	$	136,451
Interest-bearing deposits	4,671,895		4,796,755
Total deposits	4,915,434		4,933,206
Advances from Federal Home Loan Bank	249,500		295,000
Subordinated debt, net of unamortized debt issuance costs of $ 1,614 and $ 1,850 in 2025 and 2024, respectively	105,386		105,150
Accrued interest payable	1,236		2,495
Accrued expenses and other liabilities	15,450		17,945
Total liabilities	5,287,006		5,353,796
Commitments and Contingencies
Shareholders’ Equity
Preferred stock, no par value; 4,913,779 shares authorized; issued and outstanding - none	—		—
Voting common stock, no par value; 45,000,000 shares authorized; 8,713,094 and 8,667,894 shares issued and outstanding in 2025 and 2024, respectively	186,608		186,094
Nonvoting common stock, no par value; 86,221 shares authorized; issued and outstanding - none	—		—
Retained earnings	188,564		230,622
Accumulated other comprehensive loss	( 23,004 )		( 32,653 )
Total shareholders’ equity	352,168		384,063
Total liabilities and shareholders’ equity	$	5,639,174	$	5,737,859

See Notes to Condensed Consolidated Financial Statements

First Internet Bancorp

Condensed Consolidated Statements of Operations – Unaudited

(Amounts in thousands except share and per share data)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Interest Income
Loans	$	68,958	$	59,792	$	198,305	$	172,321
Securities – taxable	8,614		6,953		26,139		19,123
Securities – non-taxable	652		1,042		1,967		2,981
Other earning assets	6,164		7,203		15,692		19,691
Total interest income	84,388		74,990		242,103		214,116
Interest Expense
Deposits	50,134		47,415		144,554		134,039
Other borrowed funds	3,902		5,810		14,111		16,251
Total interest expense	54,036		53,225		158,665		150,290
Net Interest Income	30,352		21,765		83,438		63,826
Provision for credit losses - loans	34,393		3,858		60,110		10,360
Benefit for credit losses - debt securities held to maturity	—		( 29 )		( 32 )		( 93 )
Provision (benefit) for credit losses - off-balance sheet commitments	396		( 439 )		252		( 398 )
Net Interest (Loss) Income After Provision for Credit Losses	( 4,437 )		18,375		23,108		53,957
Noninterest (Loss) Income
Service charges and fees	369		245		912		711
Loan servicing revenue	2,055		1,570		6,017		4,363
Loan servicing asset revaluation	( 1,332 )		( 846 )		( 3,666 )		( 2,109 )




(Loss) gain on sale of loans	( 27,103 )		9,933		( 16,783 )		24,761


Other	1,364		1,127		4,857		3,683
Total noninterest (loss) income	( 24,647 )		12,029		( 8,663 )		31,409
Noninterest Expense
Salaries and employee benefits	14,384		13,456		38,358		37,714
Marketing, advertising and promotion	482		548		1,831		1,893
Consulting and professional services	979		902		3,143		2,777
Data processing	651		675		1,942		1,845
Loan expenses	1,850		1,524		4,901		4,566
Premises and equipment	3,572		2,918		9,968		8,898
Deposit insurance premium	1,584		1,219		4,546		3,536

Other	1,957		1,552		6,127		4,924
Total noninterest expense	25,459		22,794		70,816		66,153
(Loss) Income Before Income Taxes	( 54,543 )		7,610		( 56,371 )		19,213
Income Tax (Benefit) Provision	( 12,950 )		620		( 15,914 )		1,267
Net (Loss) Income	$	( 41,593 )	$	6,990	$	( 40,457 )	$	17,946
(Loss) Income Per Share of Common Stock
Basic	$	( 4.76 )	$	0.80	$	( 4.63 )	$	2.07
Diluted	$	( 4.76 )	$	0.80	$	( 4.63 )	$	2.05
Weighted-Average Number of Common Shares Outstanding
Basic	8,742,052		8,696,634		8,730,519		8,688,304
Diluted	8,742,052		8,768,731		8,730,519		8,756,544
Dividends Declared Per Share	$	0.06	$	0.06	$	0.18	$	0.18

See Notes to Condensed Consolidated Financial Statements

First Internet Bancorp

Condensed Consolidated Statements of Comprehensive (Loss) Income – Unaudited

(Amounts in thousands)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Net (loss) income	$	( 41,593 )	$	6,990	$	( 40,457 )	$	17,946
Other comprehensive income
Securities available-for-sale
Net unrealized holding gains recorded within other comprehensive income before income tax	4,454		10,620		12,114		7,995

Income tax provision	1,027		2,442		2,788		1,841
Net effect on other comprehensive income	3,427		8,178		9,326		6,154

Securities held-to-maturity

Amortization of net unrealized holding losses on securities transferred from available-for-sale to held-to-maturity	180		185		432		607
Income tax provision	44		46		109		149
Net effect on other comprehensive income	136		139		323		458

Cash flow hedges
Net unrealized holding losses on cash flow hedging derivatives recorded within other comprehensive loss before income tax	—		( 2,670 )		—		( 2,030 )
Income tax benefit	—		( 614 )		—		( 467 )
Net effect on other comprehensive income	—		( 2,056 )		—		( 1,563 )

Total other comprehensive income	3,563		6,261		9,649		5,049
Comprehensive (loss) income	$	( 38,030 )	$	13,251	$	( 30,808 )	$	22,995

See Notes to Condensed Consolidated Financial Statements

First Internet Bancorp

Condensed Consolidated Statements of Changes in Shareholders’ Equity - Unaudited

Nine Months Ended September 30, 2025 and 2024

(Amounts in thousands except share and per share data)


	Voting and Nonvoting Common Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders’ Equity
Balance, January 1, 2025	$	186,094	$	230,622	$	( 32,653 )	$	384,063

Net loss	—		( 40,457 )		—		( 40,457 )

Other comprehensive income	—		—		9,649		9,649
Dividends declared ($ 0.18 per share)	—		( 1,601 )		—		( 1,601 )

Recognition of the fair value of share-based compensation	733		—		—		733


Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units	5		—		—		5
Common stock redeemed for the net settlement of share-based awards	( 224 )		—		—		( 224 )

Balance, September 30, 2025	$	186,608	$	188,564	$	( 23,004 )	$	352,168

Balance, January 1, 2024	$	184,700	$	207,470	$	( 29,375 )	$	362,795

Net income	—		17,946		—		17,946

Other comprehensive income	—		—		5,049		5,049
Dividends declared ($ 0.18 per share)	—		( 1,592 )		—		( 1,592 )

Recognition of the fair value of share-based compensation	1,356		—		—		1,356
Repurchased shares of common stock ( 10,500 shares)	( 283 )		—		—		( 283 )
Excise tax on repurchase of common stock	( 3 )		—		—		( 3 )
Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units	3		—		—		3
Common stock redeemed for the net settlement of share-based awards	( 142 )		—		—		( 142 )

Balance, September 30, 2024	$	185,631	$	223,824	$	( 24,326 )	$	385,129

See Notes to Condensed Consolidated Financial Statements

First Internet Bancorp

Condensed Consolidated Statements of Changes in Shareholders’ Equity - Unaudited

Three Months Ended September 30, 2025 and 2024

(Amounts in thousands except share and per share data)



	Voting and Nonvoting Common Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders’ Equity
Balance, July 1, 2025	186,116		$	230,690	$	( 26,567 )	$	390,239

Net loss	—		( 41,593 )		—		( 41,593 )

Other comprehensive income	—		—		3,563		3,563
Dividends declared ($ 0.06 per share)	—		( 533 )		—		( 533 )

Recognition of the fair value of share-based compensation	490		—		—		490


Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units	2		—		—		2


Balance, September 30, 2025	$	186,608	$	188,564	$	( 23,004 )	$	352,168

Balance, July 1, 2024	$	185,175	$	217,365	$	( 30,587 )	$	371,953

Net income	—		6,990		—		6,990

Other comprehensive income	—		—		6,261		6,261
Dividends declared ($ 0.06 per share)	—		( 531 )		—		( 531 )

Recognition of the fair value of share-based compensation	454		—		—		454



Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units	2		—		—		2
Balance, September 30, 2024	$	185,631	$	223,824	$	( 24,326 )	$	385,129

See Notes to Condensed Consolidated Financial Statements

First Internet Bancorp

Condensed Consolidated Statements of Cash Flows – Unaudited

(Amounts in thousands)


	Nine Months Ended September 30,
	2025		2024
Operating Activities
Net (loss) income	$	( 40,457 )	$	17,946
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	5,230		6,030
Increase in cash surrender value of bank-owned life insurance	( 862 )		( 817 )
Provision for credit losses	60,330		9,869
Share-based compensation expense	733		1,356


Loans originated for sale	( 430,086 )		( 366,948 )
Proceeds from sale of loans	381,503		374,561
Loss (gain) on loans sold	16,783		( 24,761 )
Gain on sale of other real estate owned	( 19 )		( 31 )

(Gain) loss on derivatives	( 106 )		768
Gain on bank-owned life insurance	—		( 149 )

Loan servicing asset revaluation	3,666		2,109

Net change in accrued income and other assets	( 13,115 )		( 3,525 )
Net change in accrued expenses and other liabilities	( 3,874 )		2,739
Net cash (used in) provided by operating activities	( 20,274 )		19,147
Investing Activities
Net loan activity, excluding purchases	( 295,966 )		( 117,719 )
Proceeds from sale of other real estate owned	547		406

Maturities and calls of securities available-for-sale	97,804		54,418

Purchase of securities available-for-sale	( 125,713 )		( 148,019 )
Maturities and calls of securities held-to-maturity	22,103		18,426
Purchase of securities held-to-maturity	( 33,629 )		( 53,977 )



Purchase of premises and equipment	( 940 )		( 2,097 )
Proceeds from bank-owned life insurance	—		737

Loans purchased	( 47,674 )		( 81,605 )
Net proceeds from sale of portfolio loans	799,297		—
Other investing activities	( 9,214 )		( 11,857 )
Net cash provided by (used in) investing activities	406,615		( 341,287 )
Financing Activities
Net (decrease) increase in deposits	( 17,772 )		730,737

Cash dividends paid	( 1,571 )		( 1,580 )


Repurchase of common stock	—		( 283 )
Proceeds from advances from Federal Home Loan Bank	104,500		430,000
Repayment of advances from Federal Home Loan Bank	( 150,000 )		( 530,000 )

Other, net	( 247 )		( 153 )
Net cash (used in) provided by financing activities	( 65,090 )		628,721
Net Increase in Cash and Cash Equivalents	321,251		306,581
Cash and Cash Equivalents, Beginning of Period	466,410		405,898
Cash and Cash Equivalents, End of Period	$	787,661	$	712,479
Supplemental Disclosures


Cash paid during the period for interest	159,924		151,330
Cash paid during the period for taxes	258		492
Loans transferred to other real estate owned	2,058		251
Loans transferred to held-for-sale from portfolio	863,766		—
Cash dividends declared, paid in subsequent period	523		520

See Notes to Condensed Consolidated Financial Statements

First Internet Bancorp

Notes to Condensed Consolidated Financial Statements – Unaudited

(Table amounts in thousands except share and per share data)

Note 1: Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information or footnotes necessary for a complete presentation of financial condition, results of operations, changes in shareholders’ equity, or cash flows in accordance with GAAP. In our opinion, all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation have been included. The results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the results expected for the year ending December 31, 2025 or any other period. The September 30, 2025 condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the First Internet Bancorp Annual Report on Form 10-K for the year ended December 31, 2024.

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments, or assumptions that could have a material effect on the carrying value of certain assets and liabilities. These estimates, judgments, and assumptions affect the amounts reported in the condensed consolidated financial statements and the disclosures provided. The Company utilizes processes that involve the use of significant estimates and the judgment of management in determining the amount of the Company’s allowance for credit losses (“ACL”) and changes in any of these could have a significant impact on the condensed consolidated financial statements.

The condensed consolidated financial statements include the accounts of First Internet Bancorp (the “Company”), its wholly owned subsidiary, First Internet Bank of Indiana (the “Bank”), and the Bank’s three wholly owned subsidiaries, First Internet Public Finance Corp., JKH Realty Services, LLC and SPF15, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation.

The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations, and cash flows of the Company.

Note 2: (Loss) Earnings Per Share

(Loss) earnings per share of common stock are based on the weighted-average number of basic shares and dilutive shares outstanding during the period.

The following is a reconciliation of the weighted-average common shares for the basic and diluted (loss) earnings per share computations for the three and nine months ended September 30, 2025 and 2024.


(dollars in thousands, except share and per share data)	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Basic earnings per share
Net (loss) income	$	( 41,593 )	$	6,990	$	( 40,457 )	$	17,946
Weighted-average common shares	8,742,052		8,696,634		8,730,519		8,688,304
Basic (loss) earnings per common share	$	( 4.76 )	$	0.80	$	( 4.63 )	$	2.07
Diluted earnings per share
Net (loss) income	$	( 41,593 )	$	6,990	$	( 40,457 )	$	17,946
Weighted-average common shares	8,742,052		8,696,634		8,730,519		8,688,304

Dilutive effect of equity compensation	—		72,097		—		68,240
Weighted-average common and incremental shares	8,742,052		8,768,731		8,730,519		8,756,544
Diluted (loss) earnings per common share 1	$	( 4.76 )	$	0.80	$	( 4.63 )	$	2.05

1 Potential dilutive common shares are excluded from the computation of diluted EPS in the periods where the effect would be antidilutive. Since the Company was in a loss position for the three and nine months ended September 30, 2025, basic net loss is the same as diluted net loss per share, as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive. There were no antidilutive shares for both the three and nine months ended September 30, 2024.

Note 3: Securities

The following tables summarize securities available-for-sale and securities held-to-maturity as of September 30, 2025 and December 31, 2024.


	September 30, 2025
	Amortized Cost		Gross Unrealized				Fair Value
(amounts in thousands)			Gains		Losses
Securities available-for-sale
U.S. Government-sponsored agencies	$	68,291	$	441	$	( 1,196 )	$	67,536
Municipal securities	64,837		4		( 2,289 )		62,552
Agency mortgage-backed securities - residential 1	378,027		615		( 23,157 )		355,485
Agency mortgage-backed securities - commercial	61,272		139		( 902 )		60,509
Private label mortgage-backed securities - residential	37,389		243		( 732 )		36,900
Asset-backed securities	17,458		82		( 5 )		17,535
Corporate securities	26,017		273		( 901 )		25,389

Total available-for-sale	$	653,291	$	1,797	$	( 29,182 )	$	625,906


	September 30, 2025
	Amortized Cost		Gross Unrealized				Fair Value		Allowance for Credit Losses		Net Carrying Value
(amounts in thousands)			Gains		Losses
Securities held-to-maturity
Municipal securities	$	11,014	$	1	$	( 521 )	$	10,494	$	( 3 )	$	11,011
Agency mortgage-backed securities - residential	221,144		1,218		( 12,438 )		209,924		—		221,144
Agency mortgage-backed securities - commercial	5,653		—		( 905 )		4,748		—		5,653
Corporate securities	24,036		—		( 755 )		23,281		( 119 )		23,917
Total held-to-maturity	$	261,847	$	1,219	$	( 14,619 )	$	248,447	$	( 122 )	$	261,725

1 Includes $ 0.2 million of additional premium related to terminated interest rate swaps associated with agency mortgage-backed securities - residential as of September 30, 2025.


	December 31, 2024
	Amortized Cost		Gross Unrealized				Fair Value
(amounts in thousands)			Gains		Losses
Securities available-for-sale
U.S. Government-sponsored agencies	$	83,811	$	487	$	( 1,482 )	$	82,816
Municipal securities	67,441		—		( 3,787 )		63,654
Agency mortgage-backed securities - residential 1	300,914		460		( 31,733 )		269,641
Agency mortgage-backed securities - commercial	64,214		276		( 1,159 )		63,331
Private label mortgage-backed securities - residential	46,623		186		( 988 )		45,821
Asset-backed securities	23,802		62		( 43 )		23,821
Corporate securities	40,049		71		( 1,849 )		38,271

Total available-for-sale	$	626,854	$	1,542	$	( 41,041 )	$	587,355


	December 31, 2024
	Amortized Cost		Gross Unrealized				Fair Value		Allowance for Credit Losses		Net Carrying Value
(amounts in thousands)			Gains		Losses
Securities held-to-maturity
Municipal securities	$	12,846	$	—	$	( 921 )	$	11,925	$	( 3 )	$	12,843
Agency mortgage-backed securities - residential	201,840		102		( 17,530 )		184,412		—		201,840
Agency mortgage-backed securities - commercial	5,705		—		( 1,157 )		4,548		—		5,705
Corporate securities	29,559		—		( 1,593 )		27,966		( 151 )		29,408
Total held-to-maturity	$	249,950	$	102	$	( 21,201 )	$	228,851	$	( 154 )	$	249,796

1 Includes $ 0.3 million of additional premium related to terminated interest rate swaps associated with agency mortgage-backed securities - residential as of December 31, 2024.

Accrued interest receivable on AFS and HTM securities at September 30, 2025 was $ 2.5 million and $ 1.0 million, respectively, compared to $ 2.8 million and $ 1.1 million, respectively, at December 31, 2024, and is included in accrued interest receivable on the condensed consolidated balance sheet. The Company elected to exclude all accrued interest receivable from securities when estimating credit losses.

At September 30, 2025 and December 31, 2024, approximately 95 % and 92 %, respectively, of mortgage-backed securities (including both AFS and HTM) held by the Company are issued by U.S. government-sponsored entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government and have a long history of no credit losses; therefore, the Company did not record an ACL on these securities.

Additionally, the Company evaluated credit impairment for individual AFS securities that are in an unrealized loss position and determined that the unrealized losses are unrelated to credit quality and are primarily attributable to changes in interest rates and volatility in the financial markets. As the Company does not intend to sell the AFS securities that are in an unrealized loss position, and it is unlikely that it will be required to sell these securities before recovery of their amortized cost basis, the Company did not record an ACL on these securities.

The Company also evaluated its HTM securities that are in an unrealized loss position and considered issuer bond ratings, historical loss rates for bond ratings and economic forecasts. The ACL on HTM securities at September 30, 2025 was $ 0.1 million, compared to $ 0.2 million at December 31, 2024.

The carrying value of securities at September 30, 2025 is shown below by their contractual maturity date. Actual maturities will differ because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Available-for-Sale
(amounts in thousands)	Amortized Cost		Fair Value
Within one year	$	594	$	594
One to five years	28,458		27,829
Five to ten years	61,896		61,169
After ten years	68,197		65,885
	159,145		155,477
Agency mortgage-backed securities - residential	378,027		355,485
Agency mortgage-backed securities - commercial	61,272		60,509
Private label mortgage-backed securities - residential	37,389		36,900
Asset-backed securities	17,458		17,535

Total	$	653,291	$	625,906


	Held-to-Maturity
(amounts in thousands)	Amortized Cost		Fair Value
Within one year	$	935	$	928
One to five years	20,561		20,391
Five to ten years	10,514		9,701
After ten years	3,040		2,755
	35,050		33,775
Agency mortgage-backed securities - residential	221,144		209,924
Agency mortgage-backed securities - commercial	5,653		4,748
Total	$	261,847	$	248,447

No available-for-sale securities were sold during the three and nine months ended September 30, 2025 and September 30, 2024. As such, the Company did not realize any gains or losses related to the sale of available-for-sale securities during either time period.

Certain investments in debt securities are reported in the condensed consolidated financial statements at an amount less than their historical cost. The total fair value of these investments at September 30, 2025 and December 31, 2024 was $ 589.1 million and $ 603.9 million, which was approximately 66 % and 72 %, respectively, of the Company’s AFS and HTM securities portfolios. As of September 30, 2025, the Company’s security portfolio consisted of 593 positions, of which 421 were in an unrealized loss position. As of December 31, 2024, the Company’s security portfolio consisted of 579 positions, of which 482 were in an unrealized loss position. The unrealized losses are related to the categories noted below.

U. S. Government-Sponsored Agencies, Municipal Securities and Corporate Securities

The unrealized losses on the Company’s investments in securities issued by U.S. Government-sponsored agencies, municipal organizations and corporate entities were caused primarily by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The Company does not intend to sell the investments, and it is not more likely than not that the Company will be required to sell the investments, before recovery of their amortized cost basis, which may be upon maturity.

Agency Mortgage-Backed, Private Label Mortgage-Backed Securities and Asset-Backed Securities

The unrealized losses on the Company’s investments in agency mortgage-backed, private label mortgage-backed securities and asset-backed securities were caused primarily by interest rate changes. The Company expects to recover the amortized cost basis over the terms of the securities. The Company does not intend to sell the investments, and it is not more likely than not that the Company will be required to sell the investments, before recovery of their amortized cost basis, which may be upon maturity.

The following tables show the securities portfolio’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2025 and December 31, 2024.


	September 30, 2025
	Less Than 12 Months				12 Months or Longer				Total
(amounts in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Securities available-for-sale
U.S. Government-sponsored agencies	$	10,971	$	( 75 )	$	28,765	$	( 1,121 )	$	39,736	$	( 1,196 )
Municipal securities	2,400		( 3 )		49,492		( 2,286 )		51,892		( 2,289 )
Agency mortgage-backed securities- residential	90,486		( 240 )		172,553		( 22,917 )		263,039		( 23,157 )
Agency mortgage-backed securities- commercial	12,829		( 35 )		26,185		( 867 )		39,014		( 902 )
Private label mortgage-backed securities - residential	13,127		( 23 )		6,751		( 709 )		19,878		( 732 )
Asset-backed securities	5,535		—		3,755		( 5 )		9,290		( 5 )
Corporate securities	—		—		15,101		( 901 )		15,101		( 901 )

Total	$	135,348	$	( 376 )	$	302,602	$	( 28,806 )	$	437,950	$	( 29,182 )


	December 31, 2024
	Less Than 12 Months				12 Months or Longer				Total
(amounts in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Securities available-for-sale
U.S. Government-sponsored agencies	$	16,856	$	( 111 )	$	29,748	$	( 1,371 )	$	46,604	$	( 1,482 )
Municipal securities	8,504		( 54 )		52,649		( 3,733 )		61,153		( 3,787 )
Agency mortgage-backed securities - residential	41,005		( 179 )		169,483		( 31,554 )		210,488		( 31,733 )
Agency mortgage-backed securities - commercial	18,141		( 37 )		12,027		( 1,122 )		30,168		( 1,159 )
Private label mortgage-backed securities - residential	3,003		( 14 )		7,450		( 974 )		10,453		( 988 )
Asset-backed securities	10,299		( 43 )		—		—		10,299		( 43 )
Corporate securities	2,994		( 6 )		27,179		( 1,843 )		30,173		( 1,849 )

Total	$	100,802	$	( 444 )	$	298,536	$	( 40,597 )	$	399,338	$	( 41,041 )

The following tables summarize ratings for the Company’s HTM portfolio as of September 30, 2025 and December 31, 2024.


	September 30, 2025
	Held-to-Maturity
(amounts in thousands)	Municipal Securities		Mortgage-Backed Securities - Residential		Mortgage-Backed Securities - Commercial		Corporate Securities		Total
AAA equivalent - agency	$	—	$	221,144	$	5,653	$	—	$	226,797
Aa1/AA+	7,051		—		—		—		7,051
Aa2/AA	2,170		—		—		—		2,170
Aa3/AA-	1,793		—		—		—		1,793
A2/A	—		—		—		5,000		5,000

Baa1/BBB+	—		—		—		7,500		7,500
Baa2/BBB	—		—		—		4,000		4,000
Baa3/BBB-	—		—		—		5,536		5,536
Ba1/BB+	—		—		—		2,000		2,000

Total	$	11,014	$	221,144	$	5,653	$	24,036	$	261,847


	December 31, 2024
	Held-to-Maturity
(amounts in thousands)	Municipal Securities		Mortgage-Backed Securities - Residential		Mortgage-Backed Securities - Commercial		Corporate Securities		Total
AAA equivalent - agency	$	—	$	201,840	$	5,705	$	—	$	207,545
Aa1/AA+	8,878		—		—		—		8,878
Aa2/AA	2,175		—		—		—		2,175
Aa3/AA-	1,793		—		—		—		1,793
A2/A	—		—		—		5,000		5,000

Baa1/BBB+	—		—		—		8,500		8,500
Baa2/BBB	—		—		—		5,500		5,500
Baa3/BBB-	—		—		—		8,559		8,559
Ba1/BB+	—		—		—		2,000		2,000

Total	$	12,846	$	201,840	$	5,705	$	29,559	$	249,950

There were no amounts reclassified from accumulated other comprehensive loss to the condensed consolidated statements of operations during the three and nine months ended September 30, 2025 and 2024.

Note 4: Loans

Loan balances as of September 30, 2025 and December 31, 2024 are summarized in the table below. Categories of loans include:


(amounts in thousands)	September 30, 2025		December 31, 2024
Commercial loans
Commercial and industrial	$	206,301	$	120,175
Owner-occupied commercial real estate	50,046		53,591
Investor commercial real estate	644,184		269,431
Construction	300,291		413,523
Single tenant lease financing	108,146		949,748
Public finance	480,119		485,867
Healthcare finance	150,522		181,427
Small business lending 1	401,628		331,914
Franchise finance	450,340		536,909

Total commercial loans	2,791,577		3,342,585
Consumer loans
Residential mortgage	349,275		375,160
Home equity	15,806		18,274
Other consumer loans	423,004		407,947

Total consumer loans	788,085		801,381
Total commercial and consumer loans	3,579,662		4,143,966
Net deferred loan origination costs, premiums and discounts on purchased loans, and other 2	23,844		26,680
Total loans	3,603,506		4,170,646
Allowance for credit losses	( 59,923 )		( 44,769 )
Net loans	$	3,543,583	$	4,125,877

1 Balances include $ 43.5 million and $ 34.0 million that is guaranteed by the U.S. government as of September 30, 2025 and December 31, 2024, respectively.

2 Includes carrying value adjustment of $ 20.2 million and $ 22.9 million related to terminated interest rate swaps associated with public finance loans as of September 30, 2025 and December 31, 2024, respectively.

During the nine months ended September 30, 2025, the Company sold $ 836.9 million of single tenant lease financing loans. Subsequent to September 30, 2025, the Company sold an additional $ 14.3 million of single tenant lease financing loans.

The general risk characteristics specific to each loan portfolio segment are as follows:

Commercial and Industrial: Commercial and industrial loans’ sources of repayment are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected, and the collateral securing these loans may fluctuate in value. Loans are made for working capital, equipment purchases, or other purposes. Most commercial and industrial loans are secured by the assets being financed and may incorporate a personal guarantee. This portfolio segment is generally concentrated in the Midwest and Southwest regions of the United States.

Owner-Occupied Commercial Real Estate: The primary source of repayment is the cash flow from the ongoing operations and activities conducted by the borrower, or an affiliate of the borrower, who owns the property. This portfolio segment is generally concentrated in the Midwest and Southwest regions of the United States and its loans are often secured by manufacturing and service facilities.

Investor Commercial Real Estate: These loans are made on a nationwide basis and are underwritten primarily based on the cash flow expected to be generated from the property and are secondarily supported by the value of the real estate. These loans typically incorporate a personal guarantee from the primary sponsor or sponsors. This portfolio segment generally involves larger loan amounts with repayment primarily dependent on the successful leasing and operation of the property securing the loan or the business conducted on the property securing the loan. Investor commercial real estate loans may be more adversely affected by changing economic conditions in the real estate markets, industry dynamics or the overall health of the local economy where the property is located. The properties securing the Company’s investor commercial real estate portfolio tend to be diverse in terms of property type. Management monitors and evaluates commercial real estate loans based on property financial performance, collateral value, guarantor strength, economic and industry conditions together with other risk grade criteria. As a general rule, the Company avoids financing special use projects unless other underwriting factors are present to mitigate these additional risks.

Construction: Construction loans are made on a nationwide basis and are secured by land and related improvements and are made to assist in the construction of new structures, which may include commercial (retail, industrial, office, and multi-family) properties, land development for residential properties or single family residential properties offered for sale by the builder. These loans generally finance a variety of project costs, including land, site preparation, architectural services, construction, closing and soft costs and interim financing needs. The cash flows of builders, while initially predictable, may fluctuate with market conditions, and the value of the collateral securing these loans may be subject to fluctuations based on general economic changes.

Single Tenant Lease Financing: These loans are made on a nationwide basis to owners of real estate subject to long-term lease arrangements with single tenant operators. The real estate is typically operated by regionally, nationally or globally branded businesses. The loans are underwritten based on the financial strength of the borrower, characteristics of the real estate, cash flows generated from the lease arrangements and the financial strength of the tenant. Similar to the other loan portfolio segments, management monitors and evaluates these loans based on borrower and tenant financial performance, collateral value, industry trends and other risk grade criteria.

Public Finance: These loans are made on a nationwide basis to governmental and not-for-profit entities to provide both tax-exempt and taxable loans for a variety of purposes including: short-term cash-flow needs; debt refinancing; economic development; quality of life projects; infrastructure improvements; renewable energy projects; and equipment financing. The primary sources of repayment for public finance loans include pledged revenue sources including but not limited to: general obligations; property taxes; income taxes; tax increment revenue; utility revenue; gaming revenues; sales tax; and pledged general revenue. Certain loans may also include an additional collateral pledge of mortgaged property or a security interest in financed equipment.

Healthcare Finance: These loans are made on a nationwide basis to healthcare providers, primarily dentists, for practice acquisition financing or refinancing that occasionally includes owner-occupied commercial real estate and equipment purchases. The sources of repayment are primarily based on the identified cash flows from operations of the borrower and related entities and secondarily on the underlying collateral provided by the borrower.

Small Business Lending: These loans are made on a nationwide basis to small businesses and generally carry a partial guaranty from the U.S. Small Business Administration (“SBA”) under its 7(a) loan program. We generally sell the government guaranteed portion of SBA loans into the secondary market while retaining the non-guaranteed portion of the loan and the servicing rights. Loans in the small business lending portfolio have sources of repayment that are primarily based on the identified cash flows of the borrower and secondarily on any underlying collateral provided by the borrower. Loans may, but do not always, have a collateral shortfall. For SBA loans where the guaranteed portion is retained, the SBA guaranty provides a tertiary source of repayment to the Bank in event of borrower default. Cash flows of borrowers, however, may not be as expected and collateral securing these loans may fluctuate in value. Loans are made for a broad array of purposes including, but not limited to, providing operating cash flow, funding ownership changes, and facilitating equipment and commercial real estate purchases.

Franchise Finance: These loans are made on a nationwide basis through our partnership with ApplePie Capital, which through their deep relationships with franchise brands provides franchisees with financing options for new franchise units, recapitalization, expansion, equipment and working capital. The sources of repayment are either based on identified cash flows from existing operations of the borrower or pro forma cash flow for new franchise locations.

Residential Mortgage: With respect to residential loans that are secured by 1-to-4 family residences and are generally owner occupied, the Company typically establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Repayment of these loans is primarily dependent on the financial circumstances of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in residential property values. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers in geographically diverse locations throughout the country.

Home Equity: Home equity loans and lines of credit are typically secured by a subordinate interest in 1-to-4 family residences. The properties securing the home equity portfolio segment are generally geographically diverse as the Company offers these products on a nationwide basis. Repayment of these loans and lines of credit is primarily dependent on the financial circumstances of the borrowers and may be impacted by changes in unemployment levels and property values on residential properties, among other economic conditions in the market.

Other Consumer: These loans primarily consist of consumer loans and credit cards. Consumer loans may be secured by consumer assets such as horse trailers or recreational vehicles. Some consumer loans are unsecured, such as small installment loans, home improvement loans and certain lines of credit. Repayment of consumer loans is primarily dependent upon the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers in geographically diverse locations throughout the country.

Allowance for Credit Losses (“ACL”) Methodology

The ACL for loans represents management's estimate of all expected credit losses over the expected life of the Company’s existing loan portfolio. Management estimates the ACL balance using relevant available information about the collectability of cash flows, from internal and external sources, including historical information relating to past events, current conditions, and reasonable and supportable forecasts of future economic conditions. When the Company is unable to forecast future economic events, management may revert to historical information.

The Company's methodologies incorporate a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average.

The ACL methodology may also consider other adjustments to address changes in conditions, trends, and circumstances such as local industry changes that could have a significant impact on the risk profile of the loan portfolio and provide for adjustments that may not be reflected and/or captured in the historical loss data. These factors include: lending policies, imprecision in forecasting future economic conditions, loan profile, lending staff, problem loan trends, loan review, collateral, credit concentration, or other internal and external factors.

The Company also includes qualitative adjustments to the allowance based on factors and considerations that have not otherwise been fully accounted for. Qualitative adjustments include, but are not limited to:

• Changes in lending policies and procedures, including changes in underwriting standards and collections, charge-offs and recovery practices

• Changes in international, national, regional and local conditions

• Changes in the nature and volume of the portfolio and terms of loans

• Changes in the experience, depth and ability of lending management

• Changes in the volume and severity of past due loans and other similar conditions

• Changes in the quality of the organization’s loan review system

• Changes in the value of underlying collateral for collateral dependent loans

• The existence and effect of any concentrations of credit and changes in the levels of such concentrations

• The effect of other external factors (i.e. competition, legal and regulatory requirements) on the level of estimated credit losses

The ACL is measured on a collective or pool basis when similar risk characteristics exist. The Company segments its portfolio generally by Federal Financial Institutions Examination Council ("FFIEC") Call Report codes that align with its lines of business. Additional sub-segmentation may be utilized to identify groups of loans with unique risk characteristics relative to the rest of the portfolio.

Loans that do not share similar risk characteristics are evaluated on an individual basis. These evaluations are typically performed on loans with a deteriorated internal risk rating. The allowance for credit loss is determined based on several methods, including estimating the fair value of the underlying collateral or the present value of expected cash flows.

The Company relies on a third-party platform that offers multiple methodologies to measure historical life-of-loan losses.

Modified Loans to Borrowers Experiencing Financial Difficulty

The Company may make modifications to certain loans in order to alleviate temporary difficulties in the borrower’s financial condition and/or constraints on the borrower’s ability to repay the loan, and to minimize potential losses to the Company. Modifications may include changes in the amortization terms of the loan, other-than-insignificant payment delays, reductions in interest rates, acceptance of interest only payments, and/or reductions to the outstanding loan balance. Such loans may be placed on nonaccrual status when there is doubt concerning the full repayment of principal and interest or the loan has been delinquent for a period of 90 days or more. These loans may be returned to accrual status when all contractual amounts past due have been brought current, and the borrower’s performance under the modified terms of the loan agreement and the ultimate collectability of all contractual amounts due under the modified terms is no longer in doubt. The Company typically measures the ACL on modified loans to borrowers experiencing financial difficulty on an individual basis when the loans are deemed to no longer share risk characteristics that are similar with other loans in the portfolio. The determination of the ACL for these loans is based on a discounted cash flow approach for both those measured collectively and individually, unless the loan is deemed collateral dependent, which requires measurement of the ACL based on the estimated expected fair value of the underlying collateral, less costs to sell. GAAP requires the Company to make certain disclosures related to these loans, including certain types of modifications, as well as how such loans have performed since their modifications.

Provision for Credit Losses

A provision for estimated losses on loans is charged to income based upon management’s evaluation of the potential losses. Such an evaluation, which includes a review of all loans for which full repayment may not be reasonably assured, considers, among other matters, the estimated net realizable value of the underlying collateral, as applicable, economic conditions, loan loss experience, and other factors that are particularly susceptible to changes that could result in a material adjustment in the near term. While management attempts to use the best information available in making its evaluations, future allowance adjustments may be necessary if economic conditions change substantially from the assumptions used in making the evaluations.

Policy for Charging Off Loans

The Company’s policy is to charge off a loan at any point in time when it no longer can be considered a bankable asset, meaning collectible within the parameters of policy. A secured loan is generally charged down to the estimated fair value of the collateral, less costs to sell, no later than when it is 120 days past due as to principal or interest. An unsecured loan generally is charged off no later than when it is 180 days past due as to principal or interest. A home improvement loan generally is charged off no later than when it is 90 days past due as to principal or interest.

The following tables present changes in the balance of the ACL during the three and nine months ended September 30, 2025 and 2024.


(amounts in thousands)	Three Months Ended September 30, 2025
Allowance for credit losses:	Balance, Beginning of Period		(Credit) Provision Charged to Expense		Losses Charged Off		Recoveries		Balance, End of Period
Commercial and industrial	$	1,907	$	( 40 )	$	( 93 )	$	2	$	1,776
Owner-occupied commercial real estate	472		( 186 )		—		—		286
Investor commercial real estate	1,609		1,106		—		—		2,715
Construction	1,771		179		—		—		1,950
Single tenant lease financing	4,446		( 3,794 )		—		—		652
Public finance	522		( 93 )		—		—		429
Healthcare finance	1,199		( 482 )		—		—		717
Small business lending	13,722		29,634		( 15,883 )		635		28,108
Franchise finance	13,082		10,094		( 5,385 )		64		17,855

Residential mortgage	1,923		268		( 17 )		—		2,174
Home equity	92		( 54 )		—		2		40
Other consumer loans	5,772		( 2,239 )		( 374 )		62		3,221

Total	$	46,517	$	34,393	$	( 21,752 )	$	765	$	59,923



(amounts in thousands)	Nine Months Ended September 30, 2025
Allowance for credit losses:	Balance, Beginning of Period		Provision (Credit) Charged to Expense		Losses Charged Off		Recoveries		Balance, End of Period
Commercial and industrial	$	1,265	$	598	$	( 93 )	$	6	$	1,776
Owner-occupied commercial real estate	528		( 242 )		—		—		286
Investor commercial real estate	1,149		1,566		—		—		2,715
Construction	1,984		( 34 )		—		—		1,950
Single tenant lease financing	4,782		( 4,130 )		—		—		652
Public finance	703		( 274 )		—		—		429
Healthcare finance	1,412		( 695 )		—		—		717
Small business lending	16,161		42,542		( 31,403 )		808		28,108
Franchise finance	8,976		22,268		( 13,471 )		82		17,855

Residential mortgage	2,136		59		( 28 )		7		2,174
Home equity	106		( 71 )		—		5		40
Other consumer loans	5,567		( 1,477 )		( 1,046 )		177		3,221

Total	$	44,769	$	60,110	$	( 46,041 )	$	1,085	$	59,923


(amounts in thousands)	Three Months Ended September 30, 2024
Allowance for credit losses:	Balance, Beginning of Period		(Credit) Provision Charged to Expense		Losses Charged Off		Recoveries		Balance, End of Period
Commercial and industrial	$	1,389	$	( 166 )	$	—	$	3	$	1,226
Owner-occupied commercial real estate	561		( 9 )		—		—		552
Investor commercial real estate	1,172		( 29 )		—		—		1,143
Construction	3,140		( 357 )		—		—		2,783
Single tenant lease financing	8,256		( 1,562 )		—		—		6,694
Public finance	742		( 44 )		—		—		698
Healthcare finance	1,809		( 87 )		—		—		1,722
Small business lending	11,993		3,346		( 1,309 )		169		14,199
Franchise finance	5,991		1,963		—		—		7,954

Residential mortgage	2,112		67		( 17 )		—		2,162
Home equity	118		( 6 )		—		3		115
Other consumer loans	6,122		742		( 425 )		34		6,473

Total	$	43,405	$	3,858	$	( 1,751 )	$	209	$	45,721



(amounts in thousands)	Nine Months Ended September 30, 2024
Allowance for credit losses:	Balance, Beginning of Period		(Credit) Provision Charged to Expense		Losses Charged Off		Recoveries		Balance, End of Period
Commercial and industrial	$	2,185	$	( 966 )	$	—	$	7	$	1,226
Owner-occupied commercial real estate	825		( 273 )		—		—		552
Investor commercial real estate	1,311		( 168 )		—		—		1,143
Construction	2,167		616		—		—		2,783
Single tenant lease financing	8,129		( 1,240 )		( 195 )		—		6,694
Public finance	1,372		( 674 )		—		—		698
Healthcare finance	1,976		( 254 )		—		—		1,722
Small business lending	6,532		9,564		( 2,171 )		274		14,199
Franchise finance	6,363		2,168		( 577 )		—		7,954

Residential mortgage	2,054		193		( 86 )		1		2,162
Home equity	171		( 62 )		—		6		115
Other consumer loans	5,689		1,456		( 760 )		88		6,473

Total	$	38,774	$	10,360	$	( 3,789 )	$	376	$	45,721

Accrued interest receivable on loans totaled $ 21.6 million and $ 28.2 million at September 30, 2025 and December 31, 2024, respectively, and is excluded from the estimate of credit losses. The Company made the accounting policy election to not measure an ACL for accrued interest receivable. Accrued interest deemed uncollectible will be written off through interest income.

In addition to the ACL, the Company established a reserve for off-balance sheet commitments, classified in other liabilities, as required by the adoption of the CECL methodology for measuring credit losses. This reserve is maintained at a level management believes to be sufficient to absorb losses arising from unfunded loan commitments. The adequacy of the reserve for unfunded commitments is determined quarterly based on methodology similar to the methodology for determining the ACL. The following tables detail activity in the (benefit) provision for credit losses on off-balance sheet commitments for the three and nine months ended September 30, 2025.



(amounts in thousands)	Balance June 30, 2025		(Benefit) Provision for Credit Losses		Balance September 30, 2025
Off-balance sheet commitments
Commercial loans
Commercial and industrial	$	199	$	( 4 )	$	195

Investor commercial real estate	33		24		57
Construction	1,757		291		2,048
Single tenant lease financing	5		( 4 )		1


Small business lending	1		90		91


Total commercial loans	1,995		397		2,392
Consumer loans
Residential mortgage	1		( 1 )		—
Home equity	—		—		—
Other consumer loans	—		—		—
Total consumer loans	1		( 1 )		—
Total allowance for off-balance sheet commitments	$	1,996	$	396	$	2,392



(amounts in thousands)	Balance December 31, 2024		(Benefit) Provision for Credit Losses		Balance September 30, 2025
Off-balance sheet commitments
Commercial loans
Commercial and industrial	$	233	$	( 38 )	$	195
Owner-occupied commercial real estate	11		( 11 )		—
Investor commercial real estate	1		56		57
Construction	1,568		480		2,048
Single tenant lease financing	19		( 18 )		1


Small business lending	263		( 172 )		91


Total commercial loans	2,095		297		2,392
Consumer loans
Residential mortgage	1		( 1 )		—
Home equity	35		( 35 )		—
Other consumer loans	9		( 9 )		—
Total consumer loans	45		( 45 )		—
Total allowance for off-balance sheet commitments	$	2,140	$	252	$	2,392

The following table details activity in the (benefit) provision for credit losses on off-balance sheet commitments for the three and nine months ended September 30, 2024.




(amounts in thousands)	Balance June 30, 2024		Provision (Benefit) for Credit Losses		Balance September 30, 2024
Off-balance sheet commitments
Commercial loans
Commercial and industrial	$	188	$	24	$	212
Owner-occupied commercial real estate	—		24		24
Investor commercial real estate	—		10		10
Construction	3,420		( 556 )		2,864
Single tenant lease financing	—		28		28


Small business lending	131		31		162


Total commercial loans	3,739		( 439 )		3,300
Consumer loans
Residential mortgage	3		( 1 )		2
Home equity	33		1		34
Other consumer loans	11		—		11
Total consumer loans	47		—		47
Total allowance for off-balance sheet commitments	$	3,786	$	( 439 )	$	3,347




(amounts in thousands)	Balance December 31, 2023		(Benefit) Provision for Credit Losses		Balance September 30, 2024
Off-balance sheet commitments
Commercial loans
Commercial and industrial	$	233	$	( 21 )	$	212
Owner-occupied commercial real estate	9		15		24
Investor commercial real estate	6		4		10
Construction	2,889		( 25 )		2,864
Single tenant lease financing	—		28		28


Small business lending	541		( 379 )		162


Total commercial loans	3,678		( 378 )		3,300
Consumer loans
Residential mortgage	11		( 9 )		2
Home equity	45		( 11 )		34
Other consumer loans	11		—		11
Total consumer loans	67		( 20 )		47
Total allowance for off-balance sheet commitments	$	3,745	$	( 398 )	$	3,347

The Company utilizes a risk grading matrix to assign a risk grade to each of its commercial loans, which are evaluated annually. A description of the general characteristics of the risk grades is as follows:

• “Pass” - Higher quality loans that do not fit any of the other categories described below.

• “Special Mention” - Loans that possess some credit deficiency or potential weakness, which deserve close attention.

• “Substandard” - Loans that possess a defined weakness or weaknesses that jeopardize the liquidation of the debt. Loans characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any.

• “Doubtful” - Such loans have been placed on nonaccrual status and may be heavily dependent upon collateral possessing a value that is difficult to determine or based upon some near-term event that lacks clear certainty. These loans have all of the weaknesses of those classified as Substandard; however, based on existing conditions, these weaknesses make full collection of the principal balance highly improbable.

• “Loss” - Loans that are considered uncollectible and of such little value that continuing to carry them as assets is not warranted.

The Company does not risk grade its consumer loans. It classifies them as either performing or nonperforming. Below is a description of those classifications:

• “Performing” - Loans that are accruing and full collection of principal and interest is expected.

• “Nonperforming” - Loans that are 90 days delinquent or for which the full collection of principal and interest may be in doubt.

The following tables present the credit risk profile of the Company’s commercial and consumer loan portfolios by loan class and by year of origination for the years indicated based on rating category and payment activity as of September 30, 2025 and December 31, 2024.


	September 30, 2025
	Term Loans (amortized cost basis by origination year)												Revolving loans amortized cost basis		Revolving loans converted to term
(amounts in thousands)	2025		2024		2023		2022		2021		Prior						Total
Commercial and industrial
Pass	$	75,319	$	19,308	$	7,283	$	10,921	$	571	$	15,248	$	67,923	$	—	$	196,573
Special Mention	—		207		—		5,014		4,243		—		—		—		9,464
Substandard	66		44		154		—		—		—		—		—		264
Doubtful	—		—		—		—		—		—		—		—		—
Total commercial and industrial	75,385		19,559		7,437		15,935		4,814		15,248		67,923		—		206,301
Year-to-date gross charge-offs	36		57		—		—		—		—		—		—		93

Owner-occupied commercial real estate
Pass	2,841		6,232		1,431		5,222		4,245		18,489		—		—		38,460
Special Mention	—		—		—		—		861		9,070		—		—		9,931
Substandard	—		—		—		—		—		1,655		—		—		1,655
Doubtful	—		—		—		—		—		—		—		—		—
Total owner-occupied commercial real estate	2,841		6,232		1,431		5,222		5,106		29,214		—		—		50,046
Year-to-date gross charge-offs	—		—		—		—		—		—		—		—		—
Investor commercial real estate
Pass	37,347		80,531		181,309		213,610		92,050		35,606		—		—		640,453
Special Mention	—		—		—		—		—		3,731		—		—		3,731
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Total investor commercial real estate	37,347		80,531		181,309		213,610		92,050		39,337		—		—		644,184
Year-to-date gross charge-offs	—		—		—		—		—		—		—		—		—
Construction
Pass	27,302		119,431		127,286		23,217		—		1,507		1,548		—		300,291
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Total construction	27,302		119,431		127,286		23,217		—		1,507		1,548		—		300,291
Year-to-date gross charge-offs	—		—		—		—		—		—		—		—		—
Single tenant lease financing
Pass	38,888		914		1,011		11,948		822		19,876		—		—		73,459
Special Mention	—		638		—		18,715		4,204		9,465		—		—		33,022
Substandard	—		—		—		—		—		1,665		—		—		1,665
Doubtful	—		—		—		—		—		—		—		—		—
Total single tenant lease financing	38,888		1,552		1,011		30,663		5,026		31,006		—		—		108,146
Year-to-date gross charge-offs	—		—		—		—		—		—		—		—		—
Public finance
Pass	37,309		47,208		—		5,301		10,385		377,891		—		—		478,094
Special Mention	—		—		—		—		—		2,025		—		—		2,025
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Total public finance	37,309		47,208		—		5,301		10,385		379,916		—		—		480,119
Year-to-date gross charge-offs	—		—		—		—		—		—		—		—		—


	September 30, 2025
	Term Loans (amortized cost basis by origination year)												Revolving loans amortized cost basis		Revolving loans converted to term
(amounts in thousands)	2025		2024		2023		2022		2021		Prior						Total
Healthcare finance
Pass	—		—		—		—		7,553		140,660		—		—		148,213
Special Mention	—		—		—		—		—		849		—		—		849
Substandard	—		—		—		—		—		1,460		—		—		1,460
Doubtful	—		—		—		—		—		—		—		—		—
Total healthcare finance	—		—		—		—		7,553		142,969		—		—		150,522
Year-to-date gross charge-offs	—		—		—		—		—		—		—		—		—
Small business lending
Pass	109,376		115,319		71,091		25,449		8,351		14,637		25,662		—		369,885
Special Mention	—		3,468		10,746		658		86		1,500		494		—		16,952
Substandard	—		5,017		4,768		207		283		1,466		3,050		—		14,791
Doubtful	—		—		—		—		—		—		—		—		—
Total small business lending	109,376		123,804		86,605		26,314		8,720		17,603		29,206		—		401,628
Year-to-date gross charge-offs	50		12,394		14,798		2,340		1,001		820		—		—		31,403
Franchise finance
Pass	741		61,329		185,264		129,660		30,246		—		—		—		407,240
Special Mention	562		—		2,727		8,833		—		—		—		—		12,122
Substandard	—		655		6,743		11,942		11,638		—		—		—		30,978
Doubtful	—		—		—		—		—		—		—		—		—
Total franchise finance	1,303		61,984		194,734		150,435		41,884		—		—		—		450,340
Year-to-date gross charge-offs	—		370		5,901		6,704		496		—		—		—		13,471
Consumer loans
Residential mortgage
Performing	2,359		6,325		11,189		168,461		79,894		76,640		—		—		344,868
Nonperforming	—		—		—		2,219		598		1,590		—		—		4,407
Total residential mortgage	2,359		6,325		11,189		170,680		80,492		78,230		—		—		349,275
Year-to-date gross charge-offs	—		—		—		28		—		—		—		—		28
Home equity
Performing	—		—		799		1,150		244		800		11,980		833		15,806
Nonperforming	—		—		—		—		—		—		—		—		—
Total home equity	—		—		799		1,150		244		800		11,980		833		15,806
Year-to-date gross charge-offs	—		—		—		—		—		—		—		—		—
Other consumer loans
Performing	78,920		89,463		82,096		76,184		27,627		67,827		813		—		422,930
Nonperforming	23		—		—		11		23		17		—		—		74
Total other consumer loans	78,943		89,463		82,096		76,195		27,650		67,844		813		—		423,004
Year-to-date gross charge-offs	50		140		407		121		28		300		—		—		1,046
Total Loans	$	411,053	$	556,089	$	693,897	$	718,722	$	283,924	$	803,674	$	111,470	$	833	$	3,579,662
Total year-to-date gross charge-offs	$	136	$	12,961	$	21,106	$	9,193	$	1,525	$	1,120	$	—	$	—	$	46,041


	December 31, 2024
	Term Loans (amortized cost basis by origination year)												Revolving loans amortized cost basis		Revolving loans converted to term
(amounts in thousands)	2024		2023		2022		2021		2020		Prior						Total
Commercial and industrial
Pass	$	23,539	$	8,501	$	13,853	$	5,418	$	2,362	$	17,829	$	44,000	$	—	$	115,502
Special Mention	47		164		4,462		—		—		—		—		—		4,673
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Total commercial and industrial	23,586		8,665		18,315		5,418		2,362		17,829		44,000		—		120,175
Year-to-date gross charge-offs	—		—		—		—		—		—		—		—		—

Owner-occupied commercial real estate
Pass	7,410		1,458		5,366		6,438		5,716		14,793		—		—		41,181
Special Mention	—		—		570		888		8,144		1,153		—		—		10,755
Substandard	—		—		—		—		—		1,655		—		—		1,655
Doubtful	—		—		—		—		—		—		—		—		—
Total owner-occupied commercial real estate	7,410		1,458		5,936		7,326		13,860		17,601		—		—		53,591
Year-to-date gross charge-offs	—		—		—		—		—		—		—		—		—
Investor commercial real estate
Pass	71,430		3,849		88,290		65,050		9,607		27,474		—		—		265,700
Special Mention	—		—		—		—		—		3,731		—		—		3,731
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Total investor commercial real estate	71,430		3,849		88,290		65,050		9,607		31,205		—		—		269,431
Year-to-date gross charge-offs	—		—		—		—		—		—		—		—		—
Construction
Pass	35,177		186,979		140,299		47,598		1,622		—		1,848		—		413,523
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Total construction	35,177		186,979		140,299		47,598		1,622		—		1,848		—		413,523
Year-to-date gross charge-offs	—		—		—		—		—		—		—		—		—
Single tenant lease financing
Pass	79,872		46,674		211,005		88,192		63,506		437,564		—		—		926,813
Special Mention	644		—		9,696		3,460		—		9,135		—		—		22,935
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Total single tenant lease financing	80,516		46,674		220,701		91,652		63,506		446,699		—		—		949,748
Year-to-date gross charge-offs	—		—		—		—		—		195		—		—		195
Public finance
Pass	55,306		1,290		7,790		12,050		463		407,008		—		—		483,907
Special Mention	—		—		—		—		—		1,960		—		—		1,960
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Total public finance	55,306		1,290		7,790		12,050		463		408,968		—		—		485,867
Year-to-date gross charge-offs	—		—		—		—		—		—		—		—		—


	December 31, 2024
	Term Loans (amortized cost basis by origination year)												Revolving loans amortized cost basis		Revolving loans converted to term
(amounts in thousands)	2024		2023		2022		2021		2020		Prior						Total
Healthcare finance
Pass	—		—		—		8,969		104,427		67,413		—		—		180,809
Special Mention	—		—		—		—		—		618		—		—		618
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Total healthcare finance	—		—		—		8,969		104,427		68,031		—		—		181,427
Year-to-date gross charge-offs	—		—		—		—		—		—		—		—		—
Small business lending
Pass	138,044		94,556		30,486		11,715		9,687		9,896		17,197		—		311,581
Special Mention	1,022		4,691		927		—		354		1,213		697		—		8,904
Substandard	2,940		3,909		1,457		258		970		1,001		894		—		11,429
Doubtful	—		—		—		—		—		—		—		—		—
Total small business lending	142,006		103,156		32,870		11,973		11,011		12,110		18,788		—		331,914
Year-to-date gross charge-offs	1,093		4,600		3,038		567		619		524		—		—		10,441
Franchise finance
Pass	67,065		230,425		172,830		42,869		—		—		—		—		513,189
Special Mention	—		1,978		5,084		6,275		—		—		—		—		13,337
Substandard	—		3,543		6,367		473		—		—		—		—		10,383
Doubtful	—		—		—		—		—		—		—		—		—
Total franchise finance	67,065		235,946		184,281		49,617		—		—		—		—		536,909
Year-to-date gross charge-offs	—		1,171		—		295		—		—		—		—		1,466
Consumer loans
Residential mortgage
Performing	3,577		13,533		183,484		86,213		28,655		55,615		—		—		371,077
Nonperforming	—		—		1,671		609		69		1,734		—		—		4,083
Total residential mortgage	3,577		13,533		185,155		86,822		28,724		57,349		—		—		375,160
Year-to-date gross charge-offs	—		—		101		58		—		—		—		—		159
Home equity
Performing	—		992		1,450		356		414		530		13,621		911		18,274
Nonperforming	—		—		—		—		—		—		—		—		—
Total home equity	—		992		1,450		356		414		530		13,621		911		18,274
Year-to-date gross charge-offs	—		—		—		—		—		—		—		—		—
Other consumer loans
Performing	101,965		97,832		88,872		33,177		20,918		64,251		870		—		407,885
Nonperforming	—		—		38		11		1		12		—		—		62
Total other consumer loans	101,965		97,832		88,910		33,188		20,919		64,263		870		—		407,947
Year-to-date gross charge-offs	157		242		300		127		1		182		—		—		1,009
Total Loans	$	588,038	$	700,374	$	973,997	$	420,019	$	256,915	$	1,124,585	$	79,127	$	911	$	4,143,966
Total year-to-date gross charge-offs	$	1,250	$	6,013	$	3,439	$	1,047	$	620	$	901	$	—	$	—	$	13,270

The following tables present the Company’s loan portfolio delinquency, including nonperforming loans, as of September 30, 2025 and December 31, 2024.


	September 30, 2025
(amounts in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans
Commercial and industrial	$	175	$	—	$	—	$	175	$	206,126	$	206,301
Owner-occupied commercial real estate	—		—		—		—		50,046		50,046
Investor commercial real estate	—		—		—		—		644,184		644,184
Construction	—		—		—		—		300,291		300,291
Single tenant lease financing	—		—		—		—		108,146		108,146
Public finance	—		—		—		—		480,119		480,119
Healthcare finance	1,150		344		1,460		2,954		147,568		150,522
Small business lending	3,106		152		9,825		13,083		388,545		401,628
Franchise finance	761		2,788		30,454		34,003		416,337		450,340

Residential mortgage	3,065		1,422		2,794		7,281		341,994		349,275
Home equity	—		—		—		—		15,806		15,806
Other consumer loans	319		69		16		404		422,600		423,004

Total	$	8,576	$	4,775	$	44,549	$	57,900	$	3,521,762	$	3,579,662


	December 31, 2024
(amounts in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans
Commercial and industrial	$	—	$	—	$	—	$	—	$	120,175	$	120,175
Owner-occupied commercial real estate	—		—		—		—		53,591		53,591
Investor commercial real estate	—		—		—		—		269,431		269,431
Construction	—		—		—		—		413,523		413,523
Single tenant lease financing	—		—		—		—		949,748		949,748
Public finance	—		—		—		—		485,867		485,867
Healthcare finance	—		—		—		—		181,427		181,427
Small business lending	11,817		1,310		5,587		18,714		313,200		331,914
Franchise finance	9,431		3,279		9,849		22,559		514,350		536,909

Residential mortgage	648		1,711		3,815		6,174		368,986		375,160
Home equity	—		—		—		—		18,274		18,274
Other consumer loans	194		196		27		417		407,530		407,947
Total	$	22,090	$	6,496	$	19,278	$	47,864	$	4,096,102	$	4,143,966

Loans are reclassified to a non-accruing status when, in management’s judgment, the collateral value and financial condition of the borrower do not justify accruing interest. At the time the accrual is discontinued, all unpaid accrued interest is reversed against earnings. Interest income accrued in prior years, if any, is charged to the allowance for credit losses. Payments subsequently received on nonaccrual loans are applied to principal. A loan is returned to accrual status when principal and interest are no longer past due and collectability is probable, typically after a minimum of nine consecutive months of performance.

The following table summarizes the Company’s nonaccrual loans and loans past due 90 days or more and still accruing by loan class for the periods indicated:


	September 30, 2025						December 31, 2024
(amounts in thousands)	Nonaccrual Loans		Nonaccrual Loans with No Allowance for Credit Losses		Total Loans 90 Days or More Past Due and Accruing		Nonaccrual Loans		Nonaccrual Loans with No Allowance for Credit Losses		Total Loans 90 Days or More Past Due and Accruing
Commercial and industrial	$	264	$	—	$	—	$	—	$	—	$	—



Single tenant lease financing	1,665		—		—		—		—		—

Healthcare finance	1,460		1,460		—		—		—		—
Small business lending	13,524		12,639		877		11,429		4,778		1,320
Franchise finance	30,978		1,456		—		10,382		—		—

Residential mortgage	4,407		4,407		—		4,083		4,083		1,142

Other consumer loans	75		75		—		61		61		4
Total loans	$	52,373	$	20,037	$	877	$	25,955	$	8,922	$	2,466

Interest income recognized on nonaccrual loans was $ 0.1 million and $ 1.1 million for the three and nine months ended September 30, 2025, respectively, and less than $ 0.1 million for both the three and nine months ended September 30, 2024.

Determining fair value for collateral dependent loans requires obtaining a current independent appraisal of the collateral and applying a discount factor, which includes selling costs if applicable, to the value. The fair value of real estate is generally based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a cash flow analysis. Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and/or customer financial statements. Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions.

The following tables present the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses as of September 30, 2025 and December 31, 2024.


	September 30, 2025
(amounts in thousands)	Commercial Real Estate		Residential Real Estate		Other (Includes Equipment, Machinery and Other Assets)		Total		Allowance on Collateral Dependent Loans

Owner-occupied commercial real estate	$	1,654	$	—	$	—	$	1,654	$	—





Small business lending 1	246		—		9,188		9,434		435


Residential mortgage	—		4,407		—		4,407		—

Other consumer loans	—		—		75		75		—
Total loans	$	1,900	$	4,407	$	9,263	$	15,570	$	435

1 Balance includes $ 5.6 million of loans guaranteed by the U.S. government.


	December 31, 2024
(amounts in thousands)	Commercial Real Estate		Residential Real Estate		Other (Includes Equipment, Machinery and Other Assets)		Total		Allowance on Collateral Dependent Loans

Owner-occupied commercial real estate	$	1,654	$	—	$	—	$	1,654	$	—





Small business lending 1	723		—		8,571		9,294		4,167
Franchise finance	—		—		3,468		3,468		679

Residential mortgage	—		4,083		—		4,083		—

Other consumer loans	—		—		22		22		—
Total loans	$	2,377	$	4,083	$	12,061	$	18,521	$	4,846

1 Balance includes $ 3.5 million of loans guaranteed by the U.S. government.

Loan Modifications to Borrowers Experiencing Financial Difficulty

The Company may agree to modify the contractual terms of a loan to a borrower experiencing financial difficulty as a part of ongoing loss mitigation strategies. These modifications may include interest rate reductions, principal or interest forgiveness, other-than-insignificant payment delays, term extensions and other actions intended to minimize loss and to avoid foreclosure or repossession of collateral.

The Company had one loan modification made to borrowers experiencing financial difficulty during the three months ended September 30, 2025. The Company had ten loan modifications made to borrowers experiencing financial difficulty during the nine months ended September 30, 2025. The Company had three loan modifications made to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2024.

The following tables present loans that were both experiencing financial difficulty and modified during the three months ended September 30, 2025 and September 30, 2024.


	Three Months Ended September 30, 2025
(dollars in thousands)	Payment Delay		Total Modification by Loan Class		% of Class of Loans








Franchise finance	$	562	$	562	0.1	%




Total	$	562	$	562


	Three Months Ended September 30, 2024
(dollars in thousands)	Payment Delay		Total Modification by Loan Class		% of Class of Loans


Investor commercial real estate	$	3,731	$	3,731	1.4	%





Franchise finance	4,028		4,028		0.7	%




Total	$	7,759	$	7,759

The following tables present loans that were both experiencing financial difficulty and modified during the nine months ended September 30, 2025 and September 30, 2025.


	Nine Months Ended September 30, 2025
(dollars in thousands)	Payment Delay		Total Modification by Loan Class		% of Class of Loans
Commercial and industrial	$	386	$	386	0.2	%



Single tenant lease financing	4,672		4,672		4.3	%

Healthcare finance	2,610		2,610		1.7	%
Small business lending	3,013		3,013		0.8	%
Franchise finance	562		562		0.1	%




Total	$	11,243	$	11,243


	Nine Months Ended September 30, 2024
(dollars in thousands)	Payment Delay		Total Modification by Loan Class		% of Class of Loans


Investor commercial real estate	$	3,731	$	3,731	1.4	%





Franchise finance	4,028		4,028		0.7	%




Total	$	7,759	$	7,759

The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of loans that were modified within the twelve months ended September 30, 2025.


	Twelve Months Ended September 30, 2025
(amounts in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due
Commercial and industrial	$	386	$	—	$	—



Single tenant lease financing	3,007		—		1,665

Healthcare finance	1,150		1,460		—
Small business lending	3,013		—		—
Franchise finance	562		1,156		—




Total	$	8,118	$	2,616	$	1,665

There was one loan totaling $ 1.7 million that was modified within the twelve months ended September 30, 2025 that subsequently defaulted during the period presented.

Other Real Estate Owned

The Company had $ 1.8 million in other real estate owned (“OREO”) as of September 30, 2025, which consisted of two small business lending properties. The Company had $ 0.3 million in OREO as of December 31, 2024, which consisted of one residential mortgage property. There were seven loans totaling $ 2.4 million and nine loans totaling $ 2.1 million, in the process of foreclosure at September 30, 2025 and December 31, 2024, respectively.

Note 5: Premises and Equipment

The following table summarizes premises and equipment at September 30, 2025 and December 31, 2024.


(amounts in thousands)	September 30, 2025		December 31, 2024
Land	$	5,598	$	5,598
Construction in process	14		20
Right of use leased asset	114		188
Building and improvements	63,379		63,069
Furniture and equipment	22,536		22,047

Less: accumulated depreciation	( 22,798 )		( 19,469 )
Total	$	68,843	$	71,453

Note 6: Goodwill

As of September 30, 2025 and December 31, 2024, the carrying amount of goodwill was $ 4.7 million. There have been no changes in the carrying amount of goodwill for the three months ended September 30, 2025 or September 30, 2024. Goodwill is assessed for impairment annually as of August 31, or more frequently if events occur or circumstances change that indicate an impairment may exist. When assessing goodwill for impairment, first, a qualitative assessment can be made to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its estimated carrying value. If the results of the qualitative assessment are not conclusive, a quantitative goodwill test is performed. Alternatively, a quantitative goodwill test can be performed without performing a qualitative assessment.

Goodwill was assessed for impairment using a quantitative test performed as of August 31, 2025. The estimated fair value of the reporting unit exceeded the net carrying value, and therefore no goodwill impairment existed as of that date. However, there is a risk for impairment in the event of declines in general economic, market or business conditions and the resultant effect on forecasted growth rates, or any significant unfavorable change in the Company’s forecasted operations resulting from elevated levels of net charge-offs in the franchise finance and small business lending portfolios. If current and long-term projections decrease materially, the Company may be required to recognize impairment charges, which could be material to the results of operations.

Note 7: Servicing Asset

Activity for the servicing asset and the related changes in fair value for the three and nine months ended September 30, 2025 and 2024 are shown in the table below.


	Three Months Ended
(amounts in thousands)	September 30, 2025		September 30, 2024
Balance, beginning of period	$	16,736	$	13,009
Additions:
Originated 1	6,703		2,499
Subtractions:
Paydowns	( 903 )		( 689 )
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model	( 429 )		( 157 )
Loan servicing asset revaluation	$	( 1,332 )	$	( 846 )
Balance, end of period	$	22,107	$	14,662

1 Balance includes $ 3.8 million of originated servicing asset related to the sale of single tenant lease financing loans that was completed during the three months ended September 30, 2025.



	Nine Months Ended
(amounts in thousands)	September 30, 2025		September 30, 2024
Balance, beginning of period	16,389		10,567
Additions:
Originated 1	9,384		6,204
Subtractions:
Paydowns	( 2,714 )		( 2,097 )
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model	( 952 )		( 12 )
Loan servicing asset revaluation	$	( 3,666 )	$	( 2,109 )
Balance, end of period	$	22,107	$	14,662

1 Balance includes $ 3.8 million of originated servicing asset related to the sale of single tenant lease financing loans that was completed during the nine months ended September 30, 2025.

Loans serviced for others are not included in the condensed consolidated balance sheets. The unpaid principal balances of these loans serviced for others as of September 30, 2025 and December 31, 2024 are shown in the table below.



(amounts in thousands)	September 30, 2025		December 31, 2024
Loan portfolios serviced for:
SBA guaranteed loans	$	1,047,698	$	862,089
Single tenant lease financing	835,325		—
Total	$	1,883,023	$	862,089

Loan servicing revenue totaled $ 2.1 million and $ 6.0 million for the three and nine months ended September 30, 2025, respectively, and $ 1.6 million and $ 4.4 million for the three and nine months ended September 30, 2024, respectively. Loan servicing asset revaluation, which represents the change in fair value of the servicing asset, resulted in a $ 1.3 million and $ 3.7 million downward valuation for the three and nine months ended September 30, 2025, respectively, and a $ 0.8 million and $ 2.1 million downward valuation for the three and nine months ended September 30, 2024, respectively.

The fair value of servicing rights is highly sensitive to changes in underlying assumptions. Though fluctuations in prepayment speeds and changes in secondary market premiums generally have the most substantial impact on the fair value of servicing rights, other influencing factors include changing economic conditions, changes to the discount rate assumption and the weighted average life of the servicing portfolio. Measurement of fair value is limited to the conditions existing and the assumptions used as of a particular point in time; however, those assumptions may change over time. Refer to Note 11 - Fair Value of Financial Instruments for further details.

Note 8: Subordinated Debt

In June 2019, the Company issued $ 37.0 million aggregate principal amount of 6.0 % Fixed-to-Floating Rate Subordinated Notes due 2029 (the “2029 Notes”) in a public offering. The 2029 Notes bear interest at a floating rate equal to three-month Term SOFR plus 4.376 %. All interest on the 2029 Notes is payable quarterly. The 2029 Notes are scheduled to mature on June 30, 2029. The 2029 Notes are unsecured subordinated obligations of the Company and may be repaid at any time, without penalty. The 2029 Notes are intended to qualify as Tier 2 capital under regulatory guidelines.

In October 2020, the Company entered into a term loan in the principal amount of $ 10.0 million, evidenced by a term note due 2030 (the “2030 Note”). The 2030 Note initially bears a fixed interest rate of 6.0 % per year to, but excluding, November 1, 2025 and thereafter at a floating rate equal to the then-current benchmark rate (initially three-month Term SOFR plus 5.795 %). The 2030 Note is scheduled to mature on November 1, 2030. The 2030 Note is an unsecured subordinated obligation of the Company and may be repaid, without penalty, on any interest payment date on or after November 1, 2025. The 2030 Note is intended to qualify as Tier 2 capital under regulatory guidelines. The Company used the net proceeds from the issuance of the 2030 Note to redeem a subordinated term note that had been entered into in October 2015.

In August 2021, the Company issued $ 60.0 million aggregate principal amount of 3.75 % Fixed-to-Floating Rate Subordinated Notes due 2031 (the “2031 Notes”) in a private placement. The 2031 Notes initially bear a fixed interest rate of 3.75 % per year to, but excluding, September 1, 2026, and thereafter at a floating rate equal to the then-current benchmark rate (initially three-month Term SOFR plus 3.11 %). The 2031 Notes are scheduled to mature on September 1, 2031. The 2031 Notes are unsecured subordinated obligations of the Company and may be repaid, without penalty, on any interest payment date on or after September 1, 2026. The 2031 Notes are intended to qualify as Tier 2 capital under regulatory guidelines. The Company used a portion of the net proceeds from the issuance of the 2031 Notes to redeem subordinated notes issued by the Company in 2016. Pursuant to the terms of a Registration Rights Agreement between the Company and the initial purchasers of the 2031 Notes, the Company offered to exchange the 2031 Notes for subordinated notes that are registered under the Securities Act of 1933, as amended, and have substantially the same terms as the 2031 Notes. On December 30, 2021, we completed an exchange of $ 59.3 million principal amount of the unregistered 2031 Notes for registered 2031 Notes in satisfaction of our obligations under the registration rights agreement. Holders of $ 0.7 million of unregistered 2031 Notes did not participate in the exchange.

The following table presents the principal balance and unamortized discount and debt issuance costs for the 2029 Notes, the 2030 Note, and the 2031 Notes as of September 30, 2025 and December 31, 2024.


	September 30, 2025				December 31, 2024
(amounts in thousands)	Principal		Unamortized Discount and Debt Issuance Costs		Principal		Unamortized Discount and Debt Issuance Costs

2029 Notes	$	37,000	$	( 585 )	$	37,000	$	( 703 )
2030 Note	10,000		( 119 )		10,000		( 137 )
2031 Notes	60,000		( 910 )		60,000		( 1,010 )


Total	$	107,000	$	( 1,614 )	$	107,000	$	( 1,850 )

Note 9: Benefit Plans

Employment Agreements

The Company is party to certain employment agreements with each of its Chief Executive Officer, President and Chief Operating Officer and Executive Vice President and Chief Financial Officer. The employment agreements each provide for annual base salaries and annual bonuses, if any, as determined from time to time by the Compensation Committee of our Board of Directors. The annual bonuses are to be determined with reference to the achievement of annual performance objectives established by the Compensation Committee. The agreements also provide that each of the Chief Executive Officer, President and Chief Operating Officer and Executive Vice President and Chief Financial Officer, may be awarded additional compensation, benefits, or consideration as the Compensation Committee may determine.

The agreements also provide for the continuation of salary and certain other benefits for a specified period of time upon termination of employment under certain circumstances, including resignation for “good reason,” termination by the Company without “cause” at any time or any termination of employment within twelve months following a “change in control,” along with other specific conditions.

2022 Equity Incentive Plan

The First Internet Bancorp 2022 Equity Incentive Plan (the “2022 Plan”) was approved by our Board of Directors and ratified by our shareholders on May 16, 2022. The plan permits awards of incentive and non-statutory stock options, stock appreciation rights, restricted stock awards, stock unit awards, performance awards and other stock-based awards. All employees, consultants and advisors of the Company or any subsidiary, as well as all non-employee directors of the Company, are eligible to receive awards under the 2022 Plan. The 2022 Plan initially authorized the issuance of 400,000 new shares of the Company’s common stock plus all shares of common stock that remained available for future grants under the First Internet Bancorp 2013 Equity Incentive Plan (the “2013 Plan”).

Award Activity Under 2022 Plan

The Company recorded $ 0.5 million and $ 0.9 million o f share-based compensation expense for the three and nine months ended September 30, 2025, respectively, related to stock-based awards under the 2022 Plan. The Company recorded $ 0.4 million and $ 1.1 million o f share-based compensation expense for the three and nine months ended September 30, 2024, respectively, related to stock-based awards under the 2022 Plan.

The following table summarizes the stock-based award activity under the 2022 Plan for the nine months ended September 30, 2025.


(dollars in thousands, except per share data)	Restricted Stock Units	Weighted-Average Grant Date Fair Value Per Share		Restricted Stock Awards	Weighted-Average Grant Date Fair Value Per Share		Deferred Stock Units	Weighted-Average Grant Date Fair Value Per Share
Unvested at December 31, 2024	130,748	$	24.35	12,040	$	31.46	—	$	—
Granted	54,948	34.72		16,009	24.72		—	—

Vested	( 28,192 )	24.32		( 12,040 )	31.46		—	—

Unvested at September 30, 2025	157,504	$	27.97	16,009	$	24.72	—	$	—

At September 30, 2025, the total unrecognized compensation cost related to unvested stock-based awards under the 2022 Plan was $ 2.7 million with a weighted-average expense recognition period of 1.7 years.

2013 Equity Incentive Plan

The 2013 Plan authorized the issuance of 750,000 shares of the Company’s common stock in the form of stock-based awards to employees, directors, and other eligible persons. No awards under the 2013 Plan remain outstanding and our authority to grant new awards under the 2013 Plan terminated upon shareholder approval of the 2022 Plan.

Award Activity Under 2013 Plan

The Company recorded no share-based compensation expense for the three months ended September 30, 2025, and less than $ 0.1 million of share-based compensation expense for the nine months ended September 30, 2025, related to stock-based awards under the 2013 Plan . The Company recorded $ 0.1 million and $ 0.2 million of share-based compensation expense for the three and nine months ended September 30, 2024, respectively, related to stock-based awards under the 2013 Plan .

The following table summarizes the stock-based award activity under the 2013 Plan for the nine months ended September 30, 2025.


(dollars in thousands, except per share data)	Restricted Stock Units	Weighted-Average Grant Date Fair Value Per Share		Restricted Stock Awards	Weighted-Average Grant Date Fair Value Per Share		Deferred Stock Units	Weighted-Average Grant Date Fair Value Per Share
Unvested at December 31, 2024	22,997	$	46.71	—	$	—	—	$	—

Cancelled/Forfeited	( 15,126 )	46.71		—	—		—	—
Vested	( 7,871 )	46.71		—	—		—	—

Unvested at September 30, 2025	—	$	—	—	$	—	—	$	—

At September 30, 2025, there were no unrecognized compensation costs related to unvested stock-based awards under the 2013 Plan.

Directors Deferred Stock Plan

Until January 2014, the Company had a practice of granting awards under a stock compensation plan for members of the Board of Directors (“Directors Deferred Stock Plan”). The Company reserved 180,000 shares of common stock that could have been issued pursuant to the Directors Deferred Stock Plan. The plan provided directors the option to elect to receive up to 100 % of their annual retainer in either common stock or deferred stock rights. Deferred stock rights were to be settled in common stock following the end of the deferral period payable on the basis of one share of common stock for each deferred stock right.

The following table summarizes the status of deferred stock rights related to the Directors Deferred Stock Plan for the nine months ended September 30, 2025.


						Deferred Stock Rights
Outstanding, beginning of period						28,821
Granted						145

Outstanding, end of period						28,966

All deferred stock rights granted during the 2025 period were additional rights issued in lieu of cash dividends payable on outstanding deferred stock rights.

Note 10: Commitments and Credit Risk

In the normal course of business, the Company makes various commitments to extend credit which are not reflected in the accompanying condensed consolidated financial statements. At September 30, 2025 and December 31, 2024, the Company had outstanding loan commitments totaling approximately $ 594.8 million and $ 667.7 million, respectively.

Note 11: Fair Value of Financial Instruments

ASC Topic 820, Fair Value Measurement , defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 also specifies a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1 Quoted prices in active markets for identical assets or liabilities

Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities

Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying condensed consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy.

Available-for-Sale Securities

Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. The Company did not own any securities classified within Level 1 of the hierarchy as of September 30, 2025 and December 31, 2024.

Level 2 securities include U.S. Government-sponsored agencies, municipal securities, mortgage and asset-backed securities and corporate securities. Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities.

In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Fair values are calculated using discounted cash flows. Discounted cash flows are calculated based off of the anticipated future cash flows updated to incorporate loss severities. Rating agency and industry research reports as well as default and deferral activity are reviewed and incorporated into the calculation. The Company did not own any securities classified within Level 3 of the hierarchy as of September 30, 2025 or December 31, 2024.

Servicing Asset

Fair value is based on a loan-by-loan basis taking into consideration the origination to maturity dates of the loans, the current age of the loans and the remaining term to maturity. The valuation methodology utilized for the servicing asset begins with generating estimated future cash flows for each servicing asset based on their unique characteristics and market-based assumptions for prepayment speeds and costs to service. The present value of the future cash flows is then calculated utilizing market-based discount rate assumptions (Level 3).

Interest Rate Swap Agreements Back-to-Back

The Company offers interest rate swaps to certain loan customers to allow them to hedge the risk of rising interest rates on their variable rate loans. The Company originates a variable rate loan and enters into a variable-to-fixed interest rate contract with the customer. The Company also enters into an offsetting interest rate swap with a correspondent bank. These back-to-back swap agreements are intended to offset each other and allow the Company to originate a variable rate loan, while providing a contract for fixed interest payments for the customer. The net cash flow for the Company is equal to the interest income received from a variable rate loan originated with the customer. The fair value of these derivatives is based on a discounted cash flow approach. The fair value assets and liabilities of centrally cleared interest rate swaps are net of variation margin settled-to-market (Level 2).

The following tables present the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2025 and December 31, 2024.


			September 30, 2025 Fair Value Measurements Using
(amounts in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Government-sponsored agencies	$	67,536	$	—	$	67,536	$	—
Municipal securities	62,552		—		62,552		—
Agency mortgage-backed securities - residential	355,485		—		355,485		—
Agency mortgage-backed securities - commercial	60,509		—		60,509		—
Private label mortgage-backed securities - residential	36,900		—		36,900		—
Asset-backed securities	17,535		—		17,535		—
Corporate securities	25,389		—		25,389		—

Total available-for-sale securities	$	625,906	$	—	$	625,906	$	—

Servicing asset	22,107		—		—		22,107


Interest rate swap agreements - assets (back-to-back)	253		—		253		—
Interest rate swap agreements - liabilities (back-to-back)	( 253 )		—		( 253 )		—


			December 31, 2024 Fair Value Measurements Using
(amounts in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Government-sponsored agencies	$	82,816	$	—	$	82,816	$	—
Municipal securities	63,654		—		63,654		—
Agency mortgage-backed securities - residential	269,641		—		269,641		—
Agency mortgage-backed securities - commercial	63,331		—		63,331		—
Private label mortgage-backed securities - residential	45,821		—		45,821		—
Asset-backed securities	23,821		—		23,821		—
Corporate securities	38,271		—		38,271		—

Total available-for-sale securities	$	587,355	$	—	$	587,355	$	—

Servicing asset	16,389		—		—		16,389


Interest rate swap agreements - assets (back-to-back)	200		—		200		—
Interest rate swap agreements - liabilities (back-to-back)	( 200 )		—		( 200 )		—

The following tables reconcile the beginning and ending balances of recurring fair value measurements recognized in the accompanying condensed consolidated balance sheets using significant unobservable (Level 3) inputs for the three and nine months ended September 30, 2025 and 2024.


	Three Months Ended
(amounts in thousands)	September 30, 2025		September 30, 2024
Balance, beginning of period	$	16,736	$	13,009
Total realized gains
Additions:
Originated 1	6,703		2,499
Subtractions:
Paydowns	( 903 )		( 689 )
Change in fair value	( 429 )		( 157 )

Balance, end of period	$	22,107	$	14,662

1 Balance includes $ 3.8 million of originated servicing asset related to the sale of single tenant lease financing loans that was completed during the three months ended September 30, 2025.



	Nine Months Ended
(amounts in thousands)	September 30, 2025		September 30, 2024
Balance, beginning of period	$	16,389	$	10,567
Total realized gains
Additions:
Originated 1	9,384		6,204
Subtractions:
Paydowns	( 2,714 )		( 2,097 )
Change in fair value	( 952 )		( 12 )

Balance, end of period	$	22,107	$	14,662

1 Balance includes $ 3.8 million of originated servicing asset related to the sale of single tenant lease financing loans that was completed during the nine months ended September 30, 2025.

The following describes the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis, as well as the general classification of such assets pursuant to the valuation hierarchy.

Individually Analyzed Collateral Dependent Loans

Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. The amount of impairment may be determined based on the fair value of the underlying collateral, less costs to sell, the estimated present value of future cash flows or the loan’s observable market price.

If the individually analyzed loan is identified as collateral dependent, the fair value of the underlying collateral, less costs to sell, is used to measure impairment. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. If the individually analyzed loan is not collateral dependent, the Company utilizes a discounted cash flow analysis to measure impairment.

Individually analyzed loans with a specific valuation allowance based on the value of the underlying collateral or a discounted cash flow analysis are classified as Level 3 assets.

The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurement falls at September 30, 2025 and December 31, 2024.


			September 30, 2025
(amounts in thousands)			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral dependent loans	$	337	$	—	$	—	$	337
Other real estate owned	1,801		—		—		1,801


			December 31, 2024
(amounts in thousands)			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral dependent loans	$	4,296	$	—	$	—	$	4,296

Significant Unobservable (Level 3) Inputs

The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.


(dollars in thousands)	Fair Value at September 30, 2025		Valuation Technique	Significant Unobservable Inputs	Range	Weighted-Average Range

Collateral dependent loans	$	337	Fair value of collateral	Discount for type of property and current market conditions	3 0 % - 40 %	31.5 %

Servicing asset	22,107		Discounted cash flow	Prepayment speeds Discount rate	0 % - 25 % 13 %	12.1 % 13.3 %
Other real estate owned	1,801		Fair value of collateral	Discount to reflect current market conditions	30 %	30.0 %

(dollars in thousands)

Fair Value at
December 31, 2024

Valuation
Technique

Significant Unobservable
Inputs

Range

Weighted-Average Range

Collateral dependent loans

4,296

Fair value of collateral

Discount for type of property and current market conditions

0 % - 75 %

24.2 %

Servicing asset

16,389

Discounted cash flow

Prepayment speeds

Discount rate

0 % - 25 %

14 %

11.7 %

14 %

The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying condensed consolidated balance sheets at amounts other than fair value.

Cash and Cash Equivalents

For these instruments, the carrying amount is a reasonable estimate of fair value.

Securities Held-to-Maturity

Level 2 securities include agency mortgage-backed securities - residential, municipal securities and corporate securities. Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities.

Loans Held-for-Sale

For loans that are sold in an active secondary market, the fair value of these loans is estimated based on secondary market price indications for loans with similar interest rate and maturity characteristics. The fair value of other loans held-for-sale approximates carrying value.

Net Loans

The fair value of loans is estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors.

Accrued Interest Receivable

The fair value of these financial instruments approximates carrying value.

Federal Home Loan Bank of Indianapolis Stock

The fair value of this financial instrument approximates carrying value.

Deposits

The fair value of noninterest-bearing and interest-bearing demand deposits, savings and money market accounts approximates carrying value. The fair value of fixed maturity certificates of deposit and brokered deposits are estimated using rates currently offered for deposits of similar remaining maturities.

Advances from Federal Home Loan Bank

The fair value of fixed rate advances is estimated using rates currently available for advances with similar remaining maturities. The carrying value of variable rate advances approximates fair value.

Subordinated Debt

The fair value of the Company’s publicly traded subordinated debt is obtained from quoted market prices. The fair value of the Company’s remaining subordinated debt is estimated using discounted cash flow analysis, based on current borrowing rates for similar types of debt instruments.

Accrued Interest Payable

The fair value of these financial instruments approximates carrying value.

Commitments

The fair value of commitments to extend credit are based on fees currently charged to enter into similar agreements with similar maturities and interest rates. The Company determined that the fair value of commitments was zero based on the contractual value of outstanding commitments at each of September 30, 2025 and December 31, 2024.

The following tables present the carrying value and estimated fair value of all financial assets and liabilities that are not measured at fair value on a recurring basis at September 30, 2025 and December 31, 2024.


	September 30, 2025 Fair Value Measurements Using
(amounts in thousands)	Carrying Amount		Fair Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	787,661	$	787,661	$	787,661	$	—	$	—

Securities held-to-maturity, net	261,725		248,447		—		248,447		—
Loans held-for-sale	141,580		151,370		—		151,370		—
Net loans	3,543,583		3,482,547		—		—		3,482,547
Accrued interest receivable	26,674		26,674		26,674		—		—
Federal Home Loan Bank of Indianapolis stock	28,350		28,350		—		28,350		—
Deposits	4,915,434		4,932,641		2,516,385		—		2,416,256
Advances from Federal Home Loan Bank	249,500		251,975		—		251,975		—
Subordinated debt	105,386		104,862		37,059		67,803		—
Accrued interest payable	1,236		1,236		1,236		—		—


	December 31, 2024 Fair Value Measurements Using
(amounts in thousands)	Carrying Amount		Fair Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	466,410	$	466,410	$	466,410	$	—	$	—

Securities held-to-maturity, net	249,796		228,851		—		228,851		—
Loans held-for-sale	54,695		58,510		—		58,510		—
Net loans	4,125,877		3,935,009		—		—		3,935,009
Accrued interest receivable	28,180		28,180		28,180		—		—
Federal Home Loan Bank of Indianapolis stock	28,350		28,350		—		28,350		—
Deposits	4,933,206		4,943,961		2,236,724		—		2,707,237
Advances from Federal Home Loan Bank	295,000		291,208		—		291,208		—
Subordinated debt	105,150		103,062		37,059		66,003		—
Accrued interest payable	2,495		2,495		2,495		—		—

Note 12: Derivative Financial Instruments

The Company uses derivative financial instruments from time to time to help manage exposure to interest rate risk and the effects that changes in interest rates may have on net income and the fair value of assets and liabilities. The Company enters into interest rate swap agreements as part of its asset/liability management strategy to help manage its interest rate risk position.

The Company entered into an offsetting interest rate swap with a correspondent bank. These back-to-back swap agreements are intended to offset each other and allow the Company to originate a variable rate loan, while providing a contract for fixed interest payments for the customer. The net cash flow for the Company is equal to the interest income received from a variable rate loan originated with the customer. The fair value of these derivatives is based on a discounted cash flow approach. The fair value assets and liabilities of centrally cleared interest rate swaps are net of variation margin settled-to-market.

In December 2024, the Company terminated interest rate swaps utilized as cash flow hedges against Federal Home Loan Bank advances, which resulted in swap termination receipts from counterparties of $ 2.9 million. As the Company had no further liability exposure to the underlying index hedged, the Company reclassified this amount from accumulated other comprehensive loss to the consolidated statements of operations and recognized a gain on termination of interest rate swaps for the year ended December 31, 2024.

In November 2024, the Company’s interest rate swap derivative designated as fair value hedges matured. As a result, the Company has no remaining fair value hedge exposure at December 31, 2024.

In March 2021, the Company terminated the last layer of interest rate swaps associated with available-for-sale agency mortgage-backed securities - residential, which resulted in swap termination payments to counterparties totaling $ 1.9 million. The corresponding fair value hedging adjustment was allocated pro-rata to the underlying hedged securities and is being amortized over the remaining lives of the designated securities. The Company had amortization expense totaling less than $ 0.1 million for both the three and nine months ended September 30, 2025 and 2024, which was recognized as a reduction to interest income on securities.

In June 2020, the Company terminated all fair value hedging relationships associated with loans, which resulted in swap termination payments to counterparties totaling $ 46.1 million. The corresponding loan fair value hedging adjustment as of the date of termination is being amortized over the remaining lives of the designated loans, which have a weighted average term to maturity of 9.0 years as of September 30, 2025. The Company had amortization expense totaling $ 1.0 million and $ 2.7 million for the three and nine months ended September 30, 2025, respectively, and $ 1.6 million and $ 3.7 million for the three and nine months ended September 30, 2024, respectively, related to these previously terminated fair value hedges which was recognized as a reduction to interest income on loans.

The following table presents the notional amount and fair value of interest rate swaps utilized by the Company at September 30, 2025 and December 31, 2024.


	September 30, 2025				December 31, 2024
(amounts in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value
Asset Derivatives




Derivatives not designated as hedging instruments
Back-to-back swaps	$	44,606	$	253	$	27,214	$	200


Total contracts	$	44,606	$	253	$	27,214	$	200
Liability Derivatives




Derivatives not designated as hedging instruments
Back-to-back swaps	$	44,606	$	( 253 )	$	27,214	$	( 200 )


Total contracts	$	44,606	$	( 253 )	$	27,214	$	( 200 )

The fair value of interest rate swaps was estimated using a discounted cash flow method that incorporates current market interest rates as of the balance sheet date.

Back-to-back swaps consist of two interest-rate swaps (a customer swap and an offsetting counterparty swap). As a result of this offsetting relationship, no net gains or losses are recognized in income. The Company received no cash collateral from counterparties as security for their obligations related to these swap transactions at September 30, 2025 and December 31, 2024. As of September 30, 2025, the Company pledged cash collateral of $ 0.3 million to counterparties as security for its obligations related to these agreements. The Company had no pledged cash collateral as of December 31, 2024 to counterparties as security for its obligations related to these agreements. Collateral posted and received is dependent on the market valuation of the underlying hedges.

The following table presents the effects of the Company’s cash flow hedge relationships on the condensed consolidated statements of comprehensive income during the three and nine months ended September 30, 2025 and 2024.


	Amount of Loss Recognized in Other Comprehensive Income for the Three Months Ended				Amount of Loss Recognized in Other Comprehensive Income for the Nine Months Ended
(amounts in thousands)	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024

Interest rate swap agreements	$	—	$	( 2,670 )	$	—	$	( 2,030 )

The Company had no changes in the fair value of derivatives not designated as hedging instruments on the condensed consolidated statements of operations for the three and nine months ended September 30, 2025 and 2024.

The following table presents the effects of the Company’s interest rate swap agreements on the condensed consolidated statements of operations during the three and nine months ended September 30, 2025 and 2024.


(amounts in thousands)	Three Months Ended				Nine Months Ended
Line Item in the Condensed Consolidated Statements of Operations	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Interest income


Securities - non-taxable	$	—	$	421	$	—	$	1,250
Total interest income	—		421		—		1,250
Interest expense
Deposits	—		—		—		( 424 )
Other borrowed funds	—		( 782 )		—		( 2,304 )
Total interest expense	—		( 782 )		—		( 2,728 )
Net interest income	$	—	$	1,203	$	—	$	3,978

Note 13: Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss, included in shareholders' equity, for the nine months ended September 30, 2025 and 2024, respectively, are presented in the table below.


(amounts in thousands)	Unrealized Losses On Debt Securities		Unrealized Losses On Debt Securities Transferred From Available-For-Sale To Held-To-Maturity		Cash Flow Hedges		Total
Balance, January 1, 2025	$	( 30,413 )	$	( 2,240 )	$	—	$	( 32,653 )
Other comprehensive income before reclassifications from accumulated other comprehensive loss before tax	12,114		—		—		12,114
Reclassifications from accumulated other comprehensive income to earnings before tax	—		432		—		432

Other comprehensive gain before tax	12,114		432		—		12,546
Income tax provision	2,788		109		—		2,897
Other comprehensive income - net of tax	9,326		323		—		9,649
Balance, September 30, 2025	$	( 21,087 )	$	( 1,917 )	$	—	$	( 23,004 )

Balance, January 1, 2024	$	( 30,174 )	$	( 2,939 )	$	3,738	$	( 29,375 )
Other comprehensive income (loss) before reclassifications from accumulated other comprehensive loss before tax	7,995		—		( 2,030 )		5,965
Reclassifications from accumulated other comprehensive loss to earnings before tax	—		607		—		607
Other comprehensive gain (loss) before tax	7,995		607		( 2,030 )		6,572
Income tax provision (benefit)	1,841		149		( 467 )		1,523
Other comprehensive gain (loss) - net of tax	6,154		458		( 1,563 )		5,049
Balance, September 30, 2024	$	( 24,020 )	$	( 2,481 )	$	2,175	$	( 24,326 )

The components of accumulated other comprehensive loss, included in stockholders' equity, for the three months ended September 30, 2025 and 2024, respectively, are presented in the table below.



(amounts in thousands)	Unrealized Losses On Debt Securities		Unrealized Losses On Debt Securities Transferred From Available-For-Sale To Held-To-Maturity		Cash Flow Hedges		Total
Balance, July 1, 2025	$	( 24,514 )	$	( 2,053 )	$	—	( 26,567 )
Other comprehensive income before reclassifications from accumulated other comprehensive loss before tax	4,454		—		—		4,454
Reclassifications from accumulated other comprehensive loss to earnings before tax	—		180				180

Other comprehensive gain before tax	4,454		180		—		4,634
Income tax provision	1,027		44		—		1,071
Other comprehensive income - net of tax	3,427		136		—		3,563
Balance, September 30, 2025	$	( 21,087 )	$	( 1,917 )	$	—	$	( 23,004 )

Balance, July 1, 2024	$	( 32,198 )	$	( 2,620 )	$	4,231	( 30,587 )
Other comprehensive income (loss) before reclassifications from accumulated other comprehensive loss before tax	10,620		—		( 2,670 )		7,950
Reclassifications from accumulated other comprehensive loss to earnings before tax	—		185		—		185
Other comprehensive gain (loss) before tax	10,620		185		( 2,670 )		8,135
Income tax provision (benefit)	2,442		46		( 614 )		1,874
Other comprehensive income (loss) - net of tax	8,178		139		( 2,056 )		6,261
Balance, September 30, 2024	$	( 24,020 )	$	( 2,481 )	$	2,175	$	( 24,326 )


	Amounts Reclassified from Accumulated Other Comprehensive Loss for the Three Months Ended				Amounts Reclassified from Accumulated Other Comprehensive Loss for the Nine Months Ended				Affected Line Item in the Statements of Operations
(amounts in thousands)	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Details About Accumulated Other Comprehensive Loss Components
Reclassifications from accumulated other comprehensive loss to earnings before tax	$	( 180 )	( 185 )		$	( 432 )	$	( 607 )	Interest income
Total amount reclassified before tax	( 180 )		( 185 )		( 432 )		( 607 )		(Loss) income before income taxes
Tax benefit	( 44 )		( 46 )		( 109 )		( 149 )		Income tax (benefit) provision
Total reclassifications from accumulated other comprehensive loss	$	( 136 )	$	( 139 )	$	( 323 )	$	( 458 )	Net income

Note 14: Segment Information

The Company operates as a single reportable segment, managing the business and assessing financial performance on a consolidated basis. While there are several lines of business within the operating segment, they are closely interrelated and cannot operate independently. Accordingly, the Chief Operating Decision Maker (“CODM”) evaluates operations and financial performance on a Company-wide basis and all of the Company’s operations are aggregated into one reportable operating segment.

The CODM regularly receives and reviews the Company’s net income on a consolidated basis and uses key metrics to evaluate the overall performance of the Company and make decisions regarding the allocation of resources. Additionally, the CODM reviews budget-to-actual variances to analyze these profit measures as a single operating segment.

The function of the CODM is performed by the Finance Committee. This Committee consists of the highest level of management that is responsible for the Company’s overall resource allocation and performance. The Finance Committee includes the Chairman and Chief Executive Officer, President and Chief Operating Officer and Executive Vice President and Chief Financial Officer.

Note 15: Recent Accounting Pronouncements

ASU 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures (December 2023)

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures. This ASU enhances the transparency and usefulness of income tax disclosures, which addresses investor requests for more transparency about income tax disclosures related primarily to the rate reconciliation and income taxes paid information. The guidance is effective for annual periods beginning after December 15, 2024 with early adoption permitted. The Company believes the adoption of this guidance will not have a material impact on the condensed consolidated financial statements.

ASU 2024-03 - Income Statement-Reporting Comprehensive Income - Expense Disaggregations Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (November 2024)

In November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregations Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The new standard requires disclosures about specific types of expenses included in the income statement. The guidance is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

Note 16: Subsequent Event

On October 20, 2025, the Board of Directors of the Company authorized the repurchase of up to $ 25.0 million of the Company's outstanding common stock from time to time on the open market or in privately negotiated transactions. The stock repurchase authorization is scheduled to expire on September 30, 2027.

The stock repurchase authorization may be modified, suspended, or discontinued at any time and does not commit the Company to repurchase shares of its common stock. The actual number and value of the shares to be purchased, if any, will depend on the performance of the Company’s stock price and other market conditions.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes appearing elsewhere in this report. This discussion and analysis includes certain forward-looking statements that involve risks, uncertainties, and assumptions. You should review the “Risk Factors” sections of this report and our Annual Report on Form 10-K for the year ended December 31, 2024 for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by such forward-looking statements. See also “Cautionary Note Regarding Forward-Looking Statements” at the beginning of this report.

Overview

First Internet Bancorp is a bank holding company headquartered in Fishers, Indiana that conducts its primary business activities through its wholly-owned subsidiary, First Internet Bank of Indiana (the “Bank”), an Indiana chartered bank. The Bank was the first state-chartered, Federal Deposit Insurance Corporation (“FDIC”) insured Internet bank and commenced banking operations in 1999. First Internet Bancorp was incorporated under the laws of the State of Indiana on September 15, 2005. On March 21, 2006, we consummated a plan of exchange by which we acquired all of the outstanding shares of the Bank.

The Bank has three wholly-owned subsidiaries: First Internet Public Finance Corp., an Indiana corporation that provides a range of public and municipal finance lending and leasing products to governmental entities throughout the United States and acquires securities issued by state and local governments and other municipalities; JKH Realty Services, LLC, a Delaware limited liability company that manages other real estate owned properties as needed; and SPF15, Inc., an Indiana corporation that owns real estate used primarily for the Bank’s principal office.

We offer a wide range of commercial, small business, consumer and municipal banking products and services. We conduct our consumer and small business deposit operations primarily through digital channels on a nationwide basis and have no traditional branch offices. Our consumer lending products are primarily originated on a nationwide basis through relationships with dealerships and financing partners.

Our commercial banking products and services are delivered through a relationship banking model or through strategic partnerships and include commercial and industrial (“C&I”), construction and investor commercial real estate, single tenant lease financing, public finance, healthcare finance, small business lending, franchise finance and commercial deposits and treasury management. Our C&I team provides credit solutions such as lines of credit, term loans, owner-occupied commercial real estate loans and corporate credit cards on a regional basis to commercial borrowers primarily in the Midwest and Southwest regions of the United States. We offer construction and investor commercial real estate loans, as well as single tenant lease financing, on a nationwide basis. Our public finance team provides a range of public and municipal lending and leasing products to government entities on a nationwide basis. Our healthcare finance team was established in conjunction with our strategic partnership with Provide, Inc. (formerly known as Lendeavor, Inc.), a San Francisco-based technology-enabled lender to healthcare practices, which provided lending on a nationwide basis for healthcare practice finance or acquisition, acquisition or refinancing of owner-occupied commercial real estate and equipment purchases. In the third quarter 2021, Provide was acquired by a super-regional financial institution. Subsequent to Provide being acquired, the acquiring institution has retained most, if not all, of Provide’s loan origination activity and our healthcare finance loan balances have declined. Our franchise finance business was established in July 2021 in conjunction with our business relationship with ApplePie Capital, a company that specializes in providing financing to franchisees in various industry segments across the United States. Our commercial deposits and treasury management team works with the other commercial teams to provide deposit products and treasury management services to our commercial and municipal lending customers as well as pursues commercial deposit opportunities in business segments where we have no credit relationships.

We believe that we differentiate ourselves from larger financial institutions by providing a full suite of services to emerging small businesses and entrepreneurs on a nationwide basis. We are an active lender in the Small Business Administration (“SBA”) 7(a) program, closing $460.4 million in SBA 7(a) loans during the nine months ended September 30, 2025, and currently rank as the 7th largest SBA 7(a) lender for the SBA’s 2025 fiscal year ended. We also offer a top-ranked small business checking account product to our country’s entrepreneurs.

We also offer payment, deposit, card and lending products and services through partnerships with financial technology companies and platforms (“fintechs”). With the rapid evolution of technology that enables small businesses to manage their finances digitally, fintechs are addressing a significantly growing marketplace. Fintechs have created robust digital offerings, unburdened by legacy technology architecture, to address growing customer expectations. Through partnerships with selected

fintechs, we believe our ability to win and retain small business relationships will be significantly enhanced. Furthermore, we believe partnering with select fintechs will allow us to further diversify our revenue sources, acquire deposits and pursue additional asset generation capabilities.

As of September 30, 2025, the Company had consolidated assets of $5.6 billion, consolidated deposits of $4.9 billion and stockholders’ equity of $352.2 million.

Results of Operations

During the third quarter 2025, net loss was $41.6 million, or $4.76 diluted loss per share, compared to net income of $7.0 million, or $0.80 diluted earnings per share, during the third quarter 2024, representing a decrease in net income of $48.6 million, or 695.0%, and a decrease in diluted earnings per share of $5.56, or 695.0%. During the nine months ended September 30, 2025, net loss was $40.5 million, or $4.63 diluted loss per share, compared to the nine months ended September 30, 2024 net income of $17.9 million, or $2.05 per diluted share, resulting in a decrease in net income of $58.4 million, or 325.4%, and a decrease in diluted earnings per share of $6.68, or 325.9%.

The $48.6 million decrease in net income for the third quarter 2025 compared to the third quarter 2024 was due primarily to an increase of $31.4 million, or 926.2%, in the provision for credit losses, a decrease of $36.7 million, or 304.9%, in noninterest income, as well as an increase of $2.7 million, or 11.7%, in noninterest expense, partially offset by an increase of $8.6 million, or 39.5%, in net interest income and a decrease of $13.6 million in income tax expense.

The $58.4 million decrease in net income for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was due primarily to an increase of $50.5 million, or 511.3%, in the provision for credit losses, a decrease of $40.1 million, or 127.6%, in noninterest income and an increase of $4.7 million, or 7.0%, in noninterest expense, partially offset by an increase of $19.6, or 30.7%, in net interest income and a decrease of $17.2 million in income tax expense.

During the third quarter 2025, the Company closed on the sale of $836.9 million of single tenant lease financing loans recognizing a pre-tax loss of $37.8 million on the transaction. The transaction was executed as part of an initiative to strengthen the Company’s regulatory capital ratios and improve its interest rate risk position. While the loss on the transaction negatively impacted shareholders’ equity and regulatory capital, the transaction significantly reduced risk-weighted assets, resulting in a net positive effect on regulatory capital ratios. Furthermore, the loan sale reduced the Company’s interest rate risk profile by reducing exposure to longer-duration assets. Additionally, the Company expects the transaction to have a beneficial impact on key profitability metrics, such as net interest margin and return on average assets, in future periods.

Subsequent to September 30, 2025, the Company sold an additional $14.3 million of single tenant lease financing loans resulting in a pre-tax loss of $0.5 million. The Company does not anticipate any additional sales from this transaction.

During the third quarter 2025, return on average assets (“ROAA”), return on average shareholders’ equity (“ROAE”), and return on average tangible common equity (“ROATCE”) were (2.71%), (42.11%) and (42.62%), respectively, compared to 0.50%, 7.32% and 7.41%, respectively, for the third quarter 2024. During the nine months ended September 30, 2025, ROAA, ROAE and ROATCE were (0.91%), (13.80%) and (13.97%), respectively, compared to 0.45%, 6.42% and 6.51%, respectively, for the nine months ended September 30, 2024.

During the three months ended September 30, 2025, the Company sold $836.9 million of single tenant lease financing loans, which resulted in a net loss on the sale of $29.1 million. Excluding the net loss on the sale of these loans, adjusted net loss for the three months ended September 30, 2025 was $12.5 million and adjusted diluted loss per share was $1.42. Additionally, for the three months ended September 30, 2025, adjusted ROAA, adjusted ROAE and adjusted ROATCE were (0.81%), (12.63%) and (12.78%), respectively.

During the nine months ended September 30, 2025, the Company sold $836.9 million of single tenant lease financing loans, which resulted in a net loss on the sale of $29.1 million. Excluding the net loss on the sale of these loans, adjusted net loss for the nine months ended September 30, 2025 was $11.3 million and adjusted diluted loss per share was $1.29. Additionally, for the nine months ended September 30, 2025, adjusted ROAA, adjusted ROAE and adjusted ROATCE were (0.25%), (3.86%) and (3.91%), respectively.

During the nine months ended September 30, 2024, the Company recognized $0.5 million in IT termination fees and $0.1 million in anniversary expenses. Excluding these items, adjusted net income for the nine months ended September 30, 2024 was $18.4 million and adjusted diluted earnings per share was $2.10. Additionally, for the nine months ended September 30, 2024, adjusted ROAA, adjusted ROAE and adjusted ROATCE were 0.46%, 6.58% and 6.67%, respectively.

During the third quarter 2025, adjusted pre-tax, pre-provision income (“PTPP”) was $18.1 million, an increase of 64.3% from adjusted PTPP of $11.0 million for the third quarter 2024. The $7.1 million increase was due to an increase of $8.6 million, or 39.5%, in net interest income and an increase of $1.1 million, or 9.5%, in adjusted noninterest income, partially offset by an increase of $2.7 million, or 11.7%, in noninterest expense.

During the nine months ended September 30, 2025, adjusted PTPP was $41.9 million, an increase of 43.7% from adjusted PTPP of $29.1 million for the nine months ended September 30, 2024. The $12.7 million increase was due to an increase of $19.6 million, or 30.7%, in net interest income, partially offset by a decrease of $2.2 million, or 7.2%, in adjusted noninterest income and an increase of $4.7 million, or 7.0%, in noninterest expense.

Refer to the “Reconciliation of Non-GAAP Financial Measures” section of Part I, Item 2 of this report, Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information.

Consolidated Average Balance Sheets and Net Interest Income Analyses

For the periods presented, the following tables provide the average balances of interest-earning assets and interest-bearing liabilities and the related yields and cost of funds. The tables do not reflect any effect of income taxes except for net interest margin - FTE, as discussed below. Balances are based on the average of daily balances. Nonaccrual loans are included in average loan balances.


	Three Months Ended
	September 30, 2025						September 30, 2024
(dollars in thousands)	Average Balance		Interest /Dividends		Yield /Cost		Average Balance		Interest /Dividends		Yield /Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale	$	4,427,200	$	68,958	6.18	%	$	4,029,360	$	59,792	5.90	%
Securities - taxable	819,941		8,614		4.17	%	713,992		6,953		3.87	%
Securities - non-taxable	78,602		652		3.29	%	78,417		1,042		5.29	%
Other earning assets	569,811		6,164		4.29	%	526,384		7,203		5.44	%
Total interest-earning assets	5,895,554		84,388		5.68	%	5,348,153		74,990		5.58	%

Allowance for credit losses - loans	(49,495)						(44,572)
Noninterest-earning assets	235,733						220,329
Total assets	$	6,081,792					$	5,523,910

Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits	$	1,399,323	$	11,742	3.33	%	$	511,446	$	2,880	2.24	%
Savings accounts	20,035		42		0.83	%	22,774		48		0.84	%
Money market accounts	1,250,350		11,771		3.73	%	1,224,680		12,980		4.22	%
Fintech - brokered deposits	—		—		—	%	153,012		1,682		4.37	%
Certificates and brokered deposits	2,463,302		26,579		4.28	%	2,472,166		29,825		4.80	%
Total interest-bearing deposits	5,133,010		50,134		3.87	%	4,384,078		47,415		4.30	%
Other borrowed funds	365,119		3,902		4.24	%	620,032		5,810		3.73	%
Total interest-bearing liabilities	5,498,129		54,036		3.90	%	5,004,110		53,225		4.23	%
Noninterest-bearing deposits	174,494						113,009
Other noninterest-bearing liabilities	17,283						26,730
Total liabilities	5,689,906						5,143,849

Shareholders’ equity	391,886						380,061
Total liabilities and shareholders’ equity	$	6,081,792					$	5,523,910

Net interest income			$	30,352					$	21,765

Interest rate spread 1					1.78%						1.35%
Net interest margin 2					2.04%						1.62%
Net interest margin - FTE 3					2.12%						1.70%

1 Yield on total interest-earning assets minus cost of total interest-bearing liabilities.

2 Net interest income divided by total average interest-earning assets (annualized).

3 On an FTE basis assuming a 21% tax rate. Net interest income is adjusted to reflect income from assets such as municipal loans and securities that are exempt from Federal income taxes. This is to recognize the income tax savings that facilitates a comparison between taxable and tax-exempt assets. The Company believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully-taxable equivalent basis, as these measures provide useful information to make peer comparisons. Net interest margin - FTE represents a non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of this measure to its most directly comparable GAAP measure.



	Nine Months Ended
	September 30, 2025						September 30, 2024
(dollars in thousands)	Average Balance		Interest /Dividends		Yield /Cost		Average Balance		Interest /Dividends		Yield /Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale	$	4,359,785	$	198,305	6.08	%	$	3,953,170	$	172,321	5.82	%
Securities - taxable	832,060		26,139		4.20	%	670,728		19,123		3.81	%
Securities - non-taxable	79,745		1,967		3.30	%	76,257		2,981		5.22	%
Other earning assets	471,096		15,692		4.45	%	476,697		19,691		5.52	%
Total interest-earning assets	5,742,686		242,103		5.64	%	5,176,852		214,116		5.52	%

Allowance for credit losses - loans	(48,091)						(41,526)
Noninterest-earning assets	231,985						220,165
Total assets	$	5,926,580					$	5,355,491

Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits	$	1,195,651	$	28,483	3.19	%	$	467,054	$	7,538	2.16	%
Savings accounts	20,786		131		0.84	%	22,760		144		0.85	%
Money market accounts	1,220,080		34,220		3.75	%	1,228,538		38,727		4.21	%
Fintech - brokered deposits	—		—		—	%	119,470		3,912		4.37	%
Certificates and brokered deposits	2,478,620		81,720		4.41	%	2,344,272		83,718		4.77	%
Total interest-bearing deposits	4,915,137		144,554		3.93	%	4,182,094		134,039		4.28	%
Other borrowed funds	444,532		14,111		4.24	%	662,824		16,251		3.28	%
Total interest-bearing liabilities	5,359,669		158,665		3.96	%	4,844,918		150,290		4.14	%
Noninterest-bearing deposits	154,604						114,425
Other noninterest-bearing liabilities	20,377						23,037
Total liabilities	5,534,650						4,982,380

Shareholders’ equity	391,930						373,111
Total liabilities and shareholders’ equity	$	5,926,580					$	5,355,491

Net interest income			$	83,438					$	63,826

Interest rate spread 1					1.68%						1.38%
Net interest margin 2					1.94%						1.65%
Net interest margin - FTE 3					2.02%						1.74%

1 Yield on total interest-earning assets minus cost of total interest-bearing liabilities.

2 Net interest income divided by total average interest-earning assets (annualized).

Rate/Volume Analysis

The following table illustrates the impact of changes in the volume of interest-earning assets and interest-bearing liabilities and interest rates on net interest income for the periods indicated. The change in interest not due solely to volume or rate has been allocated in proportion to the absolute dollar amounts of the change in each.


	Three Months Ended September 30, 2025 vs. September 30, 2024 Due to Changes in						Nine Months Ended September 30, 2025 vs. September 30, 2024 Due to Changes in
(amounts in thousands)	Volume		Rate		Net		Volume		Rate		Net
Interest income
Loans, including loans held-for-sale	$	6,191	$	2,975	$	9,166	$	18,116	$	7,868	$	25,984
Securities – taxable	1,091		570		1,661		4,922		2,094		7,016
Securities – non-taxable	17		(407)		(390)		212		(1,226)		(1,014)
Other earning assets	3,106		(4,145)		(1,039)		(228)		(3,771)		(3,999)
Total	10,405		(1,007)		9,398		23,022		4,965		27,987

Interest expense
Interest-bearing deposits	25,497		(22,778)		2,719		27,131		(16,616)		10,515
Other borrowed funds	(6,178)		4,270		(1,908)		(7,871)		5,731		(2,140)
Total	19,319		(18,508)		811		19,260		(10,885)		8,375

(Decrease) increase in net interest income	$	(8,914)	$	17,501	$	8,587	$	3,762	$	15,850	$	19,612

Net interest income for the third quarter 2025 was $30.4 million, an increase of $8.6 million, or 39.5%, compared to $21.8 million for the third quarter 2024. The increase in net interest income was the result of a $9.4 million, or 12.5%, increase in total interest income to $84.4 million for the third quarter 2025 from $75.0 million for the third quarter 2024. The increase in total interest income was partially offset by a $0.8 million, or 1.5%, increase in total interest expense to $54.0 million for the third quarter 2025 from $53.2 million for the third quarter 2024.

Net interest income for the nine months ended September 30, 2025 was $83.4 million, an increase of $19.6 million, or 30.7%, compared to $63.8 million for the nine months ended September 30, 2024. The increase in net interest income was the result of a $28.0 million, or 13.1%, increase in total interest income to $242.1 million for the nine months ended September 30, 2025 from $214.1 million for the nine months ended September 30, 2024. The increase in total interest income was partially offset by an $8.4 million, or 5.6%, increase in total interest expense to $158.7 million for the nine months ended September 30, 2025 from $150.3 million for the nine months ended September 30, 2024.

The increase in total interest income for the third quarter 2025 compared to third quarter 2024 was due primarily to an increase in interest earned on loans, resulting from an increase of 28 bps in the yield earned on loans, including loans held-for-sale, as well as an increase of $397.8 million, or 9.9%, in the average balance of loans, including loans held-for-sale. Related to securities, the average balance increased $106.1 million, or 13.4%, while the yield earned on the securities portfolio increased 8 bps for the third quarter 2025 compared to the third quarter 2024. The yield on funded portfolio loan originations was 7.50% for the third quarter 2025, a decrease of 135 bps compared to the third quarter 2024, reflective of 100 bps of Fed rate cuts in the second half of 2024. However, new origination yields remained well above the overall loan portfolio yield, helping to drive both total interest income and the loan portfolio yield higher.

The increase in total interest income for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was due primarily to an increase in interest earned on loans, resulting from an increase of 26 bps in the yield on loans, including loans held-for-sale, as well as an increase of $406.6 million, or 10.3%, in the average balance of loans, including loans held-for-sale. Additionally, the average balance of securities increased $164.8 million, or 22.1%, and the yield earned on the securities portfolio increased 17 bps for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase in total interest income was partially offset as the yield on other earning assets decreased 107 bps and the average balance of other earning assets decreased $5.6 million, or 1.2%. The increase in the yield earned on loans and securities was due to both existing and newly-originated interest-earning assets, despite the lowered interest rates in September. The yield on funded portfolio loan originations was 7.58% for the nine months ended September 30, 2025, a decrease of 127 bps compared to the nine months ended September 30, 2024.

The increase in total interest expense for the third quarter 2025 compared to the third quarter 2024 was due primarily to increases of $8.9 million, or 307.7%, in interest expense associated with interest-bearing demand deposits, partially offset by decreases of $3.2 million, or 10.9%, in interest expense associated with certificates and brokered deposits, $1.2 million, or 9.3%, in interest expense associated with money market accounts and $1.9 million, or 32.8%, in interest expense associated with other borrowed funds. When combined with deposits formerly classified as fintech – brokered deposits, the increase in interest expense related to interest-bearing demand deposits was driven by an increase in the average balance of $734.9 million, or 110.6%, compared to the third quarter 2024 due to continued growth in fintech deposits, while the cost of funds increased 109 bps due to the change in deposit mix. The decrease in interest expense related to certificates and brokered deposits was driven by a decrease of 52 bps in the cost of these deposits, as well as a decrease in the average balance of these deposits of $8.9 million, or 0.4%. The decrease in interest expense related to money market accounts was driven by a 49 bp decrease in the cost of these deposits, partially offset by an increase in the average balance of these deposits of $25.7 million, or 2.1%. The decrease in interest expense related to other borrowed funds was driven by a decrease in the average balance of $254.9 million, or 41.1%, partially offset by an increase of 51 bps in the cost of funds.

The increase in total interest expense for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was due primarily to an increase of $20.9 million, or 277.9%, in interest expense associated with interest-bearing demand deposits, partially offset by decreases of $4.5 million, or 11.6%, in interest expense associated with money market accounts, $2.1 million, or 13.2%, in interest expense associated with other borrowed funds and $2.0 million, or 2.4%, in interest expense associated with certificates and brokered deposits. When combined with deposits formerly classified as fintech - brokered deposits, the increase in interest expense related to interest-bearing demand deposits was due primarily to a 103 bp increase in the cost of these deposits, as well as an increase of $609.1 million, or 103.9%, in the average balance of these deposits. The decrease in interest expense related to money market accounts was driven primarily by a decrease of 46 bps in the cost of these deposits, as well as a decrease of $8.5 million, or 0.7%, in the average balance of these deposits. The decrease in interest expense related to other borrowed funds was driven by a decrease in the average balance of $218.3 million, or 32.9%, partially offset by a 96 bp increase in the cost of these funds. The increase in interest expense related to certificates and brokered deposits was driven by an increase of $134.3 million, or 5.7%, in the average balance of these deposits, partially offset by a decrease of 36 bps in the cost of these deposits. The increase in the average balance of these deposits was driven by the continued benefit from CD repricing, partially offset by lower brokered deposit balances as the Company used on-balance sheet liquidity to pay down higher-cost short term FHLB advances, which is expected to positively impact deposit costs in future periods.

Overall, the cost of total interest-bearing liabilities for the third quarter 2025 decreased 33 bps to 3.90% from 4.23% for the third quarter 2024. The cost of total interest-bearing liabilities for the nine months ended September 30, 2025 decreased 18 bps to 3.96% from 4.14% for the nine months ended September 30, 2024.

Net interest margin (“NIM”) was 2.04% for the third quarter 2025 compared to 1.62% for the third quarter 2024, an increase of 42 bps. On a fully-taxable equivalent (“FTE”) basis, NIM was 2.12% for the third quarter 2025 compared to 1.70% for the third quarter 2024, an increase of 42 bps. NIM was 1.94% for the nine months ended September 30, 2025 compared to

1.65% for the nine months ended September 30, 2024, an increase of 29 bps. FTE NIM was 2.02% for the nine months ended September 30, 2025 compared to 1.74% for the nine months ended September 30, 2024, an increase of 28 bps.

The increase in the third quarter and nine months ended September 30, 2025 NIM and FTE NIM compared to the third quarter and nine months ended September 30, 2024 reflects the combination of deploying cash balances into higher yielding loans and securities and continued improvement in the cost of funds related to deposits.

Noninterest (Loss) Income

The following table shows noninterest (loss) income for each of the periods presented.


	Three Months Ended		Nine Months Ended
(amounts in thousands)	September 30, 2025			September 30, 2024		September 30, 2025		September 30, 2024
Service charges and fees	$	369		$	245	$	912	$	711
Loan servicing revenue	2,055			1,570		6,017		4,363
Loan servicing asset revaluation	(1,332)			(846)		(3,666)		(2,109)

(Loss) gain on sale of loans	(27,103)			9,933		(16,783)		24,761


Other	1,364			1,127		4,857		3,683
Total noninterest (loss) income	$	(24,647)		$	12,029	$	(8,663)	$	31,409

During the third quarter 2025, there was a loss in noninterest income of $24.6 million, representing a decrease of $36.7 million, or 304.9%, compared to $12.0 million of noninterest income for the third quarter 2024. The decrease in noninterest income was due primarily to a decrease in gain on sale of loans, partially offset by an increase in other noninterest income. The decrease of $37.0 million, or 372.9%, in gain on sale of loans was due to the sale of $836.9 million of single tenant lease financing loans that was completed during the quarter, which resulted in a pre-tax loss of $37.8 million. Excluding the loss on the loan sale, adjusted noninterest income totaled $13.2 million for the third quarter 2025, an increase of $1.1 million, compared to the third quarter 2024. The increase was driven by higher gain on sale revenue, which consisted almost entirely of sales of U.S. Small Business Administration (“SBA”) 7(a) guaranteed loans. The increase in other noninterest income of $0.2 million, or 3.3%, was due primarily to distributions from fund investments.

During the nine months ended September 30, 2025, there was a loss in noninterest income of $8.7 million, a decrease of $40.1 million, or 127.6%, compared to $31.4 million for the nine months ended September 30, 2024. The decrease in noninterest income was due primarily to a decrease in gain on sale of loans, partially offset by an increase in other noninterest income. The decrease of $41.5 million, or 167.8%, in gain on sale of loans was due primarily to the sale of $836.9 million of single tenant lease financing loans that was completed during the quarter, which resulted in a pre-tax loss of $37.8 million. Excluding the loss on the loan sale, adjusted noninterest income totaled $29.2 million for the nine months ended September 30 2025, a decrease of $2.2 million, compared to the nine months ended September 2024. The decrease was driven by lower gain on sale revenue, which was due to a decrease in the volume of SBA 7(a) guaranteed loans sales, as the Company implemented a process change to hold SBA loans for a longer period of time before selling them in the secondary market. The increase in other noninterest income of $1.2 million, or 31.9%, was due primarily to distributions from fund investments.

Noninterest Expense

The following table shows noninterest expense for each of the periods presented.


	Three Months Ended		Nine Months Ended
(amounts in thousands)	September 30, 2025			September 30, 2024			September 30, 2025		September 30, 2024
Salaries and employee benefits	$	14,384		$	13,456		$	38,358	$	37,714
Marketing, advertising and promotion	482			548			1,831		1,893
Consulting and professional services	979			902			3,143		2,777
Data processing	651			675			1,942		1,845
Loan expenses	1,850			1,524			4,901		4,566
Premises and equipment	3,572			2,918			9,968		8,898
Deposit insurance premium	1,584			1,219			4,546		3,536

Other	1,957			1,552			6,127		4,924
Total noninterest expense	$	25,459		$	22,794	22794000	$	70,816	$	66,153

Noninterest expense for the third quarter 2025 was $25.5 million, representing an increase of $2.7 million, or 11.7%, compared to $22.8 million for the third quarter 2024. The increase in noninterest expense was due primarily to increases in salaries and employee benefits, premises and equipment, deposit insurance premium, other expense and loan expenses. The increase of $0.9 million, or 6.9%, in salaries and employee benefits was driven primarily by an increase in incentive compensation. The increase of $0.7 million, or 22.4%, in premises and equipment was due primarily to software maintenance expense. The increase of $0.4 million, or 29.9%, in deposit insurance premium was due to changes in the composition of the loan portfolio. The increase in other expenses of $0.4 million, or 26.1%, was due primarily to higher fintech volume activity. The increase of $0.3 million, or 21.4%, in loan expenses was due primarily to collection expense, as well as third party servicing associated with SBA and fintech lending.

Noninterest expense for the nine months ended September 30, 2025 was $70.8 million, an increase of $4.7 million, or 7.0%, compared to $66.2 million for the nine months ended September 30, 2024. The increase was due primarily to increases in other expense, premises and equipment, deposit insurance premium, salaries and employee benefits, consulting and professional fees and loan expenses. The increase in other expense of $1.2 million, or 24.4%, was due primarily to higher fintech volume activity. The increase of $1.1 million, or 12.0%, in premises and equipment was due primarily to software maintenance expense. The increase of $1.0 million, or 28.6%, in deposit insurance premium was due to changes in the composition of the loan portfolio. The increase of $0.6 million, or 1.7%, in salaries and employee benefits was due primarily to an increase in incentive compensation. The increase of $0.4 million, or 13.2%, in consulting and professional fees was due mainly to

increased legal and audit fees. The increase of $0.3 million, or 7.3%, in loan expenses was due primarily to collection expense, as well as third party servicing associated with SBA and fintech lending.

The Company recorded an income tax benefit of $13.0 million for the third quarter 2025, compared to an income tax provision of $0.6 million and an effective tax rate of 8.1% for the third quarter 2024. The Company recorded an income tax benefit of $15.9 million for the nine months ended September 30, 2025, compared to an income tax provision of $1.3 million and an effective tax rate of 6.6% for the nine months ended September 30, 2024. The income tax benefits recognized during the third quarter 2025 and the nine months ended September 30, 2025 reflect lower pre-tax earnings, as well as the benefit of tax exempt income. The variance from the federal statutory rate for the third quarter 2024 and the nine months ended September 30, 2024 was due primarily to tax-exempt income. Interest income on certain loans or securities issued by governmental, municipal and not-for-profit entities, and earnings from bank-owned life insurance were the primary components of tax-exempt income.

Financial Condition

The following table shows summary balance sheet data for each of the periods presented.


(amounts in thousands)
Balance Sheet Data:	September 30, 2025		December 31, 2024
Total assets	$	5,639,174	$	5,737,859
Loans	3,603,506		4,170,646
Total securities	887,631		837,151


Loans held-for-sale	141,580		54,695
Noninterest-bearing deposits	243,539		136,451
Interest-bearing deposits	4,671,895		4,796,755
Total deposits	4,915,434		4,933,206
Advances from Federal Home Loan Bank	249,500		295,000
Total shareholders’ equity	352,168		384,063

Total assets decreased $98.7 million, or 1.7%, to $5.6 billion at September 30, 2025 compared to $5.7 billion at December 31, 2024. The decrease was due primarily to a decline in loans due to the single tenant leasing financing loan sale and lower construction and franchise finance balances, partially offset by higher investor commercial real estate, commercial and industrial and small business lending balances. Total liabilities declined $66.8 million, or 1.2%, to $5.3 billion at September 30, 2025 compared to $5.4 billion at December 31, 2024. The decrease was due mainly to a decline in advances from the Federal Home Loan Bank and, to a lesser extent, a decrease in total deposits. Increased liquidity from growth in fintech partnership deposits allowed the Company to pay down higher cost brokered deposits and advances from the Federal Home Loan Bank throughout 2025.

As of September 30, 2025, total shareholders’ equity was $352.2 million, a decrease of $31.9 million, or 8.3%, compared to December 31, 2024. The decrease in shareholders’ equity was due primarily to the net loss during 2025, partially offset by a decrease in accumulated other comprehensive loss as unrealized losses on securities decreased during the nine months ended September 30, 2025. Tangible common equity totaled $347.5 million as of September 30, 2025, representing a decrease of $31.9 million, or 8.4%, compared to December 31, 2024. The ratio of total shareholders’ equity to total assets decreased to 6.25% as of September 30, 2025 from 6.69% as of December 31, 2024, and the ratio of tangible common equity to tangible assets decreased to 6.17% as of September 30, 2025 from 6.62% as of December 31, 2024.

Book value per common share decreased 8.8% to $40.42 as of September 30, 2025 from $44.31 as of December 31, 2024. Tangible book value per share decreased 8.9% to $39.88 as of September 30, 2025 from $43.77 as of December 31, 2024. The decrease in both book value per common share and tangible book value per share was driven primarily by the decreases in total shareholders’ equity and tangible common equity. Refer to the “Reconciliation of Non-GAAP Financial Measures” section of Part I, Item 2 of this report, Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information.

Loan Portfolio Analysis

The following table shows a summary of the Company’s loan portfolio for each of the periods presented.


(dollars in thousands)	September 30, 2025				December 31, 2024
Commercial loans
Commercial and industrial	$	206,301	5.7	%	$	120,175	2.9	%
Owner-occupied commercial real estate	50,046		1.4	%	53,591		1.3	%
Investor commercial real estate	644,184		17.9	%	269,431		6.5	%
Construction	300,291		8.3	%	413,523		9.9	%
Single tenant lease financing	108,146		3.1	%	949,748		22.7	%
Public finance	480,119		13.3	%	485,867		11.6	%
Healthcare finance	150,522		4.2	%	181,427		4.4	%
Small business lending	401,628		11.1	%	331,914		8.0	%
Franchise finance	450,340		12.5	%	536,909		12.9	%

Total commercial loans	2,791,577		77.5	%	3,342,585		80.2	%
Consumer loans
Residential mortgage	349,275		9.7	%	375,160		9.0	%
Home equity	15,806		0.4	%	18,274		0.4	%
Other consumer loans	423,004		11.7	%	407,947		9.8	%

Total consumer loans	788,085		21.8	%	801,381		19.2	%
Net deferred loan origination costs, premiums and discounts on purchased loans and other 1	23,844		0.7	%	26,680		0.6	%
Total loans	3,603,506		100.0	%	4,170,646		100.0	%
Allowance for credit losses - loans	(59,923)				(44,769)
Net loans	$	3,543,583			$	4,125,877

1 Includes carrying value adjustments of $20.2 million and $22.9 million related to terminated interest rate swaps associated with public finance loans as of September 30, 2025 and December 31, 2024, respectively.

Total loans were $3.6 billion as of September 30, 2025, a decrease of $567.1 million, or 13.6%, compared to December 31, 2024. Total commercial loan balances were $2.8 billion as of September 30, 2025, down $551.0 million, or 16.5%, from December 31, 2024. Total consumer loan balances were $788.1 million as of September 30, 2025, a decrease of $13.3 million, or 1.66%, compared to December 31, 2024. Compared to December 31, 2024, the decrease in commercial loan balances was driven by the sale of $836.9 million of single tenant lease financing loans that was completed during the third quarter, as well as decreases in construction, franchise finance and continued run off in the healthcare finance portfolio. The decreases were partially offset by increases in investor commercial real estate, which was driven by completed construction projects that were moved to investor commercial real estate upon entering their stabilization period, as well as growth in the commercial and industrial and small business lending portfolios. The slight decrease in consumer loan balances was due primarily to a decrease in the residential mortgage portfolio, partially offset by origination activity in the other consumer loans portfolio.

Asset Quality

Nonperforming loans are comprised of nonaccrual loans and loans 90 days past due and accruing. Nonperforming assets include nonperforming loans, other real estate owned and other nonperforming assets, which consist of repossessed assets. The following table provides a summary of the Company’s nonperforming assets for each of the periods presented.


(dollars in thousands)	September 30, 2025			December 31, 2024
Nonaccrual loans
Commercial loans:
Commercial and industrial	$	264		$	—


Healthcare finance	1,460			—

Single tenant lease financing	1,665			—
Small business lending	13,524			11,429
Franchise finance	30,978			10,382

Total commercial loans	47,891			21,811
Consumer loans:
Residential mortgage	4,407			4,083

Other consumer loans	75			61
Total consumer loans	4,482			4,144
Total nonaccrual loans	52,373			25,955

Past due 90 days and accruing loans
Commercial loans:





Small business lending	877			1,320

Total commercial loans	877			1,320
Consumer loans:
Residential mortgage	—			1,142

Other consumer loans	—			4
Total consumer loans	—			1,146
Total past due 90 days and accruing loans	877			2,466

Total nonperforming loans	53,250			28,421

Other real estate owned
Small business lending	1,801			—
Residential mortgage	—			272
Total other real estate owned	1,801			272

Other nonperforming assets	186			212

Total nonperforming assets	$	55,237		$	28,905

Total nonperforming loans to total loans	1.48		%	0.68		%
Total nonperforming assets to total assets	0.98		%	0.50		%
Allowance for credit losses - loans to total loans	1.66		%	1.07		%
Nonaccrual loans to total loans	1.45		%	0.62		%
Allowance for credit losses - loans to nonaccrual loans	114.4		%	172.5		%
Allowance for credit losses - loans to nonperforming loans	112.5		%	157.5		%

Total nonperforming loans increased $24.8 million, or 87.4%, to $53.3 million as of September 30, 2025 compared to $28.4 million as of December 31, 2024 due primarily to an increase in nonperforming loans in the franchise finance and small business lending portfolios during the year. Total nonperforming assets increased $26.3 million, or 91.1%, to $55.2 million as of September 30, 2025, compared to $28.9 million as of December 31, 2024, due primarily to the aforementioned increase in nonperforming loans and an increase in OREO related to small business lending. As of September 30, 2025, the Company had

two small business lending properties in OREO with carrying values of $1.8 million. As of December 31, 2024, the Company had one residential mortgage property in OREO with a carrying value of $0.3 million.

Allowance for Credit Losses - Loans

The following table provides a rollforward of the allowance for credit losses for each of the periods presented; however, allocation of a portion of the allowance to one segment does not preclude its availability to absorb losses in other segments.


	Three Months Ended			Nine Months Ended	Year Ended
(dollars in thousands)	September 30, 2025				September 30, 2024			September 30, 2025			September 30, 2024			December 31, 2024
Balance, beginning of period	$	46,517			$	43,405		$	44,769		$	38,774		$	38,774


Provision charged to expense	34,393				3,858			60,110			10,360			18,815
Losses charged off
Commercial and industrial	93				—			93			—			—



Single tenant lease financing	—				—			—			195			195


Small business lending	15,883				1,309			31,403			2,171			10,441
Franchise finance	5,385				—			13,471			577			1,466

Residential mortgage	17				17			28			86			159



Other consumer loans	374				425			1,046			760			1,009

Total losses charged off	21,752				1,751			46,041			3,789			13,270
Recoveries
Commercial and industrial	2				3			6			7			8






Small business lending	635				169			808			274			325
Franchise finance	64				—			82			—			—
Residential mortgage	—				—			7			1			1
Home equity	2				3			5			6			7
Other consumer loans	62				34			177			88			109
Total recoveries	765				209			1,085			376			450
Balance, end of period	$	59,923			$	45,721		$	59,923		$	45,721		$	44,769

Net charge-offs	$	20,987			$	1,542		$	44,956		$	3,413		$	12,820

Net charge-offs (recoveries) to average loans (annualized)
Commercial and industrial	0.00		%		(0.01		%)	(0.01		%)	(0.01		%)	(0.01		%)



Single tenant lease financing	0.00		%		0.00		%	0.00		%	0.03		%	0.02		%


Small business lending	3.92		%		0.48		%	9.17		%	0.90		%	3.39		%
Franchise finance	1.51		%		0.00		%	3.59		%	0.14		%	0.27		%
Fintech partnership lending	0.57		%		0.00		%	0.59		%	0.00		%	0.00		%
Total commercial net charge-offs	0.77		%		0.05		%	1.67		%	0.11		%	0.37		%
Residential mortgage	0.02		%		0.02		%	0.01		%	0.03		%	0.04		%
Home equity	(0.02		%)		(0.02		%)	(0.04		%)	(0.04		%)	(0.03		%)
Other consumer loans	0.41		%		0.46		%	0.39		%	0.29		%	0.28		%

Total consumer net charge-offs	0.06		%		0.07		%	0.15		%	0.13		%	0.13		%
Total net charge-offs to average loans	1.89		%		0.15		%	1.38		%	0.12		%	0.32		%

The allowance for credit losses - loans (“ACL”) was $59.9 million as of September 30, 2025, compared to $44.8 million as of December 31, 2024. The increase in the ACL reflects updated assumptions to the Company’s CECL model, including updates that significantly increased the ACL related to small business lending, as well as additional specific reserves related to franchise finance loans that were placed on nonaccrual during the nine month period ended September 30, 2025, partially offset by the removal of specific reserves for small business lending and franchise finance loans that were charged off. Furthermore, the ACL as a percentage of total loans was impacted by lower total loan balances following the sale of $836.9 million of single tenant lease financing loans. The ACL as a percentage of total loans was 1.66% at September 30, 2025, compared to 1.07% at December 31, 2024. The ACL as a percentage of nonperforming loans decreased to 112.5% as of September 30, 2025, compared to 157.5% as of December 31, 2024, as the increase in nonperforming loans outweighed the increase in the ACL.

Net charge-offs of $21.0 million were recognized during the third quarter 2025, resulting in net charge-offs to average loans of 1.89%, compared to net charge-offs of $1.5 million, or 0.15% of average loans, for the third quarter 2024. Net charge-offs in the third quarter 2025 were elevated as the Company continued to take action to resolve problem loans in the small business lending and franchise finance portfolios. Approximately $15.2 million of net charge-offs recognized during the quarter were related to small business lending and $5.3 million were related to franchise finance loans, with $3.5 million of existing specific reserves previously applied to these loans.

During the nine months ended September 30, 2025, the Company recorded net charge-offs of $45.0 million, compared to net charge-offs of $3.4 million during the nine months ended September 30, 2024. The increase in net charge-offs for the nine months ended September 30, 2025 was driven primarily by $30.6 million in net charge-offs related to small business lending and $13.4 million in net charge-offs related to franchise finance loans, with $13.4 million of existing specific reserves previously applied to these loans.

The provision for credit losses - loans in the third quarter 2025 was $34.4 million, compared to $3.9 million for the third quarter 2024. The increase in the provision for credit losses - loans for the third quarter 2025 was driven primarily by the net charge-offs, additional specific reserves and the increase in the ACL related to small business lending discussed above, partially offset by the decrease in the ACL resulting from the sale of the single tenant lease financing loans mentioned above and by the decrease in specific reserves related to franchise finance loans that were charged off.

The provision for credit losses - loans during the nine months ended September 30, 2025 was $60.1 million, compared to $10.4 million for the nine months ended September 30, 2024. The increase in the provision for credit losses - loans for the nine months ended September 30, 2025 was driven primarily by the net charge-offs, additional specific reserves and the increase in the ACL related to small business lending discussed above, partially offset by the decrease in the ACL resulting from the sale of the single tenant lease financing loans mentioned above and by the decrease in specific reserves related to small business lending and franchise finance loans that were charged off.

Investment Securities Portfolio

The following tables show the amortized cost and approximate fair value of our investment securities portfolio by security type for each of the periods presented.


(amounts in thousands)
Amortized Cost	September 30, 2025		December 31, 2024
Securities available-for-sale
U.S. Government-sponsored agencies	$	68,291	$	83,811
Municipal securities	64,837		67,441
Agency mortgage-backed securities - residential	378,027		300,914
Agency mortgage-backed securities - commercial	61,272		64,214
Private label mortgage-backed securities - residential	37,389		46,623
Asset-backed securities	17,458		23,802
Corporate securities	26,017		40,049

Total available-for-sale	653,291		626,854
Securities held-to-maturity, net carrying value
Municipal securities	11,011		12,843
Agency mortgage-backed securities - residential	221,144		201,840
Agency mortgage-backed securities - commercial	5,653		5,705
Corporate securities	23,917		29,408
Total held-to-maturity, net carrying value	261,725		249,796
Total securities	$	915,016	$	876,650


(amounts in thousands)
Approximate Fair Value	September 30, 2025		December 31, 2024
Securities available-for-sale
U.S. Government-sponsored agencies	$	67,536	$	82,816
Municipal securities	62,552		63,654
Agency mortgage-backed securities - residential	355,485		269,641
Agency mortgage-backed securities - commercial	60,509		63,331
Private label mortgage-backed securities - residential	36,900		45,821
Asset-backed securities	17,535		23,821
Corporate securities	25,389		38,271

Total available-for-sale	625,906		587,355
Securities held-to-maturity
Municipal securities	10,494		11,925
Agency mortgage-backed securities - residential	209,924		184,412
Agency mortgage-backed securities - commercial	4,748		4,548
Corporate securities	23,281		27,966
Total held-to-maturity	248,447		228,851
Total securities	$	874,353	$	816,206

The approximate fair value of available-for-sale investment securities increased $38.6 million, or 6.6%, to $625.9 million as of September 30, 2025, compared to $587.4 million as of December 31, 2024. The increase was due primarily to an increase of $85.8 million in agency mortgage-backed securities - residential, partially offset by decreases of $15.3 million in U.S. Government-sponsored agencies, $12.9 million in corporate securities, $8.9 million in private label mortgage-backed securities - residential, $6.3 million in asset-backed securities, $2.8 million in agency mortgage-backed securities - commercial and $1.1 million in municipal securities. The Company deployed liquidity during 2025 into new purchases of available-for-sale variable-rate agency mortgage-backed securities - residential, partially offset by net pay down activity in other security types. As of September 30, 2025, the Company had securities with a net carrying value of $261.7 million designated as held-to-maturity, compared to $249.8 million as of December 31, 2024. The increase was due primarily to purchases of CRA-eligible agency mortgage-backed securities - residential made in the first quarter 2025.

Accrued Income and Other Assets

Accrued income and other assets increased $21.0 million, or 33.3%, to $84.0 million at September 30, 2025, compared to $63.0 million at December 31, 2024. The increase was due primarily to increases of $12.7 million in deferred tax assets, $6.6 million in equity fund investments and $1.5 million in prepaid assets.

Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities decreased $2.5 million, or 13.9%, to $15.5 million at September 30, 2025, compared to $17.9 million at December 31, 2024. The decrease was due primarily to decreases of $2.7 million in accrued salary and benefits and $1.2 million in other accrued expenses, partially offset by increases of $1.2 million in unfunded commitments and $0.3 million in the reserve for unfunded loan commitments.

Deposits

The following table shows the composition of the Company’s deposit base for each of the periods presented.


(dollars in thousands)	September 30, 2025				December 31, 2024
Noninterest-bearing deposits	$	243,539	5.0	%	$	136,451	2.8	%
Interest-bearing demand deposits	1,003,950		20.4	%	896,661		18.2	%
Savings accounts	18,694		0.4	%	19,823		0.4	%
Money market accounts	1,250,202		25.4	%	1,183,789		24.0	%

Certificates of deposits	2,115,613		43.0	%	2,133,455		43.2	%
Brokered deposits	283,436		5.8	%	563,027		11.4	%
Total deposits	$	4,915,434	100.0	%	$	4,933,206	100.0	%

Total deposits decreased $17.8 million, or 0.3%, to $4.9 billion as of September 30, 2025, compared to $4.9 billion as of December 31, 2024. The decrease was due primarily to decreases of $279.6 million, or 49.7%, in brokered deposits and $17.8 million, or 0.8%, in certificates of deposits, partially offset by increases of $107.3 million, or 12.0%, in interest-bearing demand deposits, $107.1 million, or 78.5%, in noninterest-bearing deposits and $66.4 million, or 5.6%, in money market accounts. The increase in noninterest-bearing deposits and interest-bearing demand deposits, driven by growth in fintech partnership deposits, provided the ability to pay down maturing higher-cost brokered deposits and certificates of deposits.

Uninsured deposit balances represented 33% of total deposits at September 30, 2025, up from 25% at December 31, 2024. These balances include Indiana-based municipal deposits, which are insured by the Indiana Board for Depositories, as well as larger balance accounts under contractual agreements that only allow withdrawal under certain conditions. After subtracting these types of deposits, the adjusted uninsured deposit balance drops to 27% as of September 30, 2025, compared to 20% as of December 31, 2024.

Regulatory Capital Requirements

The Company and the Bank are subject to various regulatory capital requirements administered by state and federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weighting and other factors.

The Basel III Capital Rules became effective for the Company and the Bank on January 1, 2015, subject to a phase-in period for certain provisions. Quantitative measures established by the Basel III Capital Rules to ensure capital adequacy require the maintenance of minimum amounts and ratios of Common Equity Tier 1 capital, Tier 1 capital and Total capital, as defined in the regulations, to risk-weighted assets, and of Tier 1 capital to adjusted quarterly average assets (“Leverage Ratio”).

The Basel III Capital Rules were fully phased in on January 1, 2019 and require the Company and the Bank to maintain: 1) a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of 4.5%, plus a 2.5% “capital conservation buffer” (resulting in a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of 7.0%); 2) a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0%, plus the capital conservation buffer (resulting in a minimum Tier 1 capital ratio of 8.5%); 3) a minimum ratio of Total capital to risk-weighted assets of 8.0%, plus the capital conservation buffer (resulting in a minimum Total capital ratio of 10.5%); and 4) a minimum Leverage Ratio of 4.0%.

The capital conservation buffer is designed to absorb losses during periods of economic stress. Failure to maintain the minimum Common Equity Tier 1 capital ratio plus the capital conservation buffer will result in potential restrictions on a banking institution’s ability to pay dividends, repurchase stock and/or pay discretionary compensation to its employees.

The following tables present actual and required capital ratios as of September 30, 2025 and December 31, 2024 for the Company and the Bank under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of September 30, 2025 and December 31, 2024, which are based on the Basel III Capital Rules. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules.

As permitted by the federal banking regulatory agencies, the Company elected the option to delay the impact of the day one adoption of ASC 326. The transition adjustments of $4.5 million will be phased into the regulatory capital calculations over a three-year period, with 25% of the adjustment recognized in 2023, 50% of the adjustment recognized in 2024, 75% of the adjustment recognized in 2025 and 100% of the adjustment recognized in 2026.


	Actual				Minimum Capital Required - Basel III			Minimum Required to be Considered Well Capitalized
(dollars in thousands)	Capital Amount		Ratio			Capital Amount		Ratio		Capital Amount		Ratio
As of September 30, 2025:
Common equity tier 1 capital to risk-weighted assets
Consolidated	$	346,448				$	262,425	7.00	%	N/A		N/A
Bank	417,831		9.24	%		261,004		7.00	%	$	242,361	6.50	%
Tier 1 capital to risk-weighted assets
Consolidated	346,448		9.24	%		318,659		8.50	%	N/A		N/A
Bank	417,831		11.21	%		316,934		8.50	%	298,290		8.00	%
Total capital to risk-weighted assets
Consolidated	491,591		13.11	%		393,637		10.50	%	N/A		N/A
Bank	464,620		12.46	%		391,506		10.50	%	372,863		10.00	%
Leverage ratio
Consolidated	346,448		5.69	%		243,391		4.00	%	N/A		N/A
Bank	417,831		6.89	%		242,566		4.00	%	303,208		5.00	%


	Actual				Minimum Capital Required - Basel III			Minimum Required to be Considered Well Capitalized
(dollars in thousands)	Capital Amount		Ratio			Capital Amount		Ratio		Capital Amount		Ratio
As of December 31, 2024:
Common equity tier 1 capital to risk-weighted assets
Consolidated	$	400,100	9.30	%		$	301,052	7.00	%	N/A		N/A
Bank	475,793		11.11	%		299,774		7.00	%	$	278,362	6.50	%
Tier 1 capital to risk-weighted assets
Consolidated	400,100		9.30	%		365,563		8.50	%	N/A		N/A
Bank	475,793		11.11	%		364,012		8.50	%	342,599		8.00	%
Total capital to risk-weighted assets
Consolidated	542,808		12.62	%		451,578		10.50	%	N/A		N/A
Bank	520,610		12.16	%		449,662		10.50	%	428,249		10.00	%
Leverage ratio
Consolidated	400,100		6.90	%		232,011		4.00	%	N/A		N/A
Bank	475,793		8.23	%		231,331		4.00	%	289,164		5.00	%

Shareholders’ Dividends

The Company’s Board of Directors declared a cash dividend of $0.06 per share of common stock payable October 15, 2025 to shareholders of record as of September 30, 2025. The Company expects to continue to pay cash dividends on a quarterly basis; however, the declaration and amount of any future cash dividends will be subject to the sole discretion of the Board of Directors and will depend upon many factors, including the Company’s results of operations, financial condition, capital requirements, regulatory and contractual restrictions (including with respect to the Company’s outstanding subordinated debt), business strategy and other factors deemed relevant by the Board of Directors.

As of September 30, 2025, the Company had $107.0 million principal amount of subordinated debt outstanding evidenced by the 2029 Notes, 2030 Note and 2031 Notes. The agreements that govern our outstanding subordinated debt prohibit the Company from paying any dividends on its common stock or making any other distributions to shareholders at any time when there shall have occurred, and be continuing to occur, an event of default under the applicable agreement. If an event of default were to occur and the Company did not cure it, the Company would be prohibited from paying any dividends or making any other distributions to shareholders or from redeeming or repurchasing any common stock.

Capital Resources

The Company believes it has sufficient liquidity and capital resources to meet its cash and capital expenditure requirements for the next twelve months and longer. The Company may explore strategic alternatives, including additional asset, deposit or revenue generation channels that complement our small business, commercial and consumer banking platforms, which may require additional capital. If the Company is unable to secure such capital at favorable terms, its ability to take advantage of such opportunities could be adversely affected.

On December 19, 2022, the Company's Board of Directors approved a stock repurchase program that authorized the repurchase of up to $25.0 million of our outstanding common stock from time to time on the open market or in privately negotiated transactions. The stock repurchase authorization expired on December 31, 2024. Under this program, the Company repurchased 559,522 shares of common stock at an average price of $19.06, for a total investment of $10.7 million.

On October 20, 2025, the Board of Directors of the Company authorized the repurchase of up to $25.0 million of the Company's outstanding common stock from time to time on the open market or in privately negotiated transactions. The stock repurchase authorization is scheduled to expire on September 30, 2027.

Various factors determine the amount and timing of our share repurchases, including our capital requirements, organic growth and other strategic opportunities, economic and market conditions (including the trading price of our stock), and regulatory and legal considerations.

Liquidity

Liquidity management is the process used by the Company to manage the continuing flow of funds necessary to meet its financial commitments on a timely basis and at a reasonable cost while also maintaining safe and sound operations. Liquidity, represented by cash and investment securities, is a product of the Company’s operating, investing and financing activities. The primary sources of funds are deposits, principal and interest payments on loans and investment securities, maturing loans and investment securities, access to wholesale funding sources and collateralized borrowings. In addition, the Company may elect to hold certain deposit balances off-balance sheet, with optionality to bring them back onto the balance sheet as funding needs evolve. While scheduled payments and maturities of loans and investment securities are relatively predictable sources of funds, deposit flows are greatly influenced by interest rates, general economic conditions and competition. Therefore, the Company supplements deposit growth and enhances interest rate risk management through borrowings and wholesale funding, which are generally advances from the Federal Home Loan Bank (“FHLB”) and brokered deposits.

The Company holds cash and investment securities that qualify as liquid assets to maintain adequate liquidity to ensure safe and sound operations and meet its financial commitments. At September 30, 2025, on a consolidated basis, the Company had $1.4 billion in cash and cash equivalents and investment securities available-for-sale and $141.6 million in loans held-for-sale that were generally available for its cash needs. Further, the Company retains the ability draw upon any deposit balances held off-balance sheet, with optionality to recall $717.7 million of such funds onto the balance sheet at September 30, 2025. The Company can also generate funds from wholesale funding sources and collateralized borrowings. At September 30, 2025, the Bank had the ability to borrow an additional $1.4 billion from the FHLB, the Federal Reserve and correspondent bank Fed Funds lines of credit, which when combined with cash balances and off-balance sheet deposits, totaled $2.9 billion and represented 216% of adjusted uninsured deposit balances.

The Company is a separate legal entity from the Bank and must provide for its own liquidity. In addition to its operating expenses, the Company is responsible for paying any dividends declared to its common shareholders and interest and principal on outstanding debt. The Company’s primary sources of funds are cash maintained at the holding company level and dividends from the Bank, the payment of which is subject to regulatory limits. At September 30, 2025, the Company, on an unconsolidated basis, had $15.3 million in cash for debt servicing and operating expenses.

The Company uses its sources of funds primarily to meet ongoing financial commitments, including withdrawals by depositors, credit commitments to borrowers, operating expenses and capital expenditures. At September 30, 2025, approved outstanding loan commitments, including unused lines of credit and standby letters of credit, amounted to $594.8 million. Certificates of deposits and brokered deposits scheduled to mature in one year or less at September 30, 2025 totaled $1.5 billion.

Management is not aware of any other events or regulatory requirements that, if implemented, are likely to have a material effect on either the Company’s or the Bank’s liquidity.

Reconciliation of Non-GAAP Financial Measures

This Management’s Discussion and Analysis contains financial information determined by methods other than in accordance with GAAP. Non-GAAP financial measures, specifically tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, average tangible common equity, return on average tangible common equity, total interest income - FTE, net interest income - FTE, net interest margin - FTE, pre-tax, adjusted total revenue, pre-provision (loss) income, adjusted pre-tax, pre-provision income, adjusted noninterest income, adjusted noninterest expense, adjusted (loss) income before income taxes, adjusted income tax (benefit) provision, adjusted net (loss) income, adjusted diluted (loss) earnings per share, adjusted return on average assets, adjusted return on average shareholders’ equity and adjusted return on average tangible common equity are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. The Company also believes that it is a standard practice in the banking industry to present total interest income, net interest income and net interest margin on a fully-taxable equivalent basis, as those measures provide useful information for peer comparisons. Although the Company believes these non-GAAP financial measures provide a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the following table for each of the periods presented.


(dollars in thousands, except share and per share data)	Three Months Ended						Nine Months Ended
	September 30, 2025			September 30, 2024			September 30, 2025			September 30, 2024
Total equity - GAAP	$	352,168		$	385,129		$	352,168		$	385,129
Adjustments:
Goodwill	(4,687)			(4,687)			(4,687)			(4,687)
Tangible common equity	$	347,481		$	380,442		$	347,481		$	380,442

Total assets - GAAP	$	5,639,174		$	5,823,259		$	5,639,174		$	5,823,259
Adjustments:
Goodwill	(4,687)			(4,687)			(4,687)			(4,687)
Tangible assets	$	5,634,487		$	5,818,572		$	5,634,487		$	5,818,572

Common shares outstanding	8,713,094			8,667,894			8,713,094			8,667,894

Book value per common share	$	40.42		$	44.43		$	40.42		$	44.43
Effect of goodwill	(0.54)			(0.54)			(0.54)			(0.54)
Tangible book value per common share	$	39.88		$	43.89		$	39.88		$	43.89

Total shareholders’ equity to assets	6.25		%	6.61		%	6.25		%	6.61		%
Effect of goodwill	(0.08		%)	(0.07		%)	(0.08		%)	(0.07		%)
Tangible common equity to tangible assets	6.17		%	6.54		%	6.17		%	6.54		%

Total average equity - GAAP	$	391,886		$	380,061		$	391,930		$	373,111
Adjustments:
Average goodwill	(4,687)			(4,687)			(4,687)			(4,687)
Average tangible common equity	$	387,199		$	375,374		$	387,243		$	368,424

Return on average shareholders’ equity	(42.11		%)	7.32		%	(13.80		%)	6.42		%
Effect of goodwill	(0.51		%)	0.09		%	(0.17		%)	0.09		%
Return on average tangible common equity	(42.62		%)	7.41		%	(13.97		%)	6.51		%


(dollars in thousands, except share and per share data)	Three Months Ended						Nine Months Ended
	September 30, 2025			September 30, 2024			September 30, 2025			September 30, 2024
Total interest income	$	84,388		$	74,990		$	242,103		$	214,116
Adjustments:
Fully-taxable equivalent adjustments 1	1,158			1,133			3,484			3,498
Total interest income - FTE	$	85,546		$	76,123		$	245,587		$	217,614






Net interest income	$	30,352		$	21,765		$	83,438		$	63,826
Adjustments:
Fully-taxable equivalent adjustments 1	1,158			1,133			3,484			3,498
Net interest income - FTE	$	31,510		$	22,898		$	86,922		$	67,324














Net interest margin	2.04		%	1.62		%	1.94		%	1.65		%
Effect of fully-taxable equivalent adjustments 1	0.08		%	0.08		%	0.08		%	0.09		%
Net interest margin - FTE	2.12		%	1.70		%	2.02		%	1.74		%
1 Assuming a 21% tax rate


(dollars in thousands, except share and per share data)	Three Months Ended				Nine Months Ended
	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Total revenue- GAAP 1	$	5,705	$	33,794	$	74,775	$	95,235
Adjustments:
Gain on sale of loans	37,823		—		37,823		—
Adjusted total revenue	$	43,528	$	33,794	$	112,598	$	95,235

Net (loss) income-GAAP	$	(41,593)	$	6,990	$	(40,457)	$	17,946
Adjustments: 2
Provision for credit losses	34,789		3,390		60,330		9,869
Income tax (benefit) provision	(12,950)		620		(15,914)		1,267
Pre-tax, pre-provision (loss) income	$	(19,754)	$	11,000	$	3,959	$	29,082

Pre-tax, pre-provision (loss) income	$	(19,754)	$	11,000	$	3,959	$	29,082
Adjustments:
Loss on sale of loans	$	37,823	$	—	$	37,823	$	—
Adjusted Pre-tax, pre-provision income	$	18,069	$	11,000	$	41,782	$	29,082

Noninterest (loss) income - GAAP	$	(24,647)	$	12,029	$	(8,663)	$	31,409
Adjustments:
Loss on sale of loans	$	37,823	$	—	$	37,823	$	—
Adjusted noninterest income	$	13,176	$	12,029	$	29,160	$	31,409






Noninterest expense - GAAP	$	25,459	$	22,794	$	70,816	$	66,153
Adjustments:



IT termination fees	—		—		—		(452)
Anniversary expenses	—		—		—		(120)

Adjusted noninterest expense	$	25,459	$	22,794	$	70,816	$	65,581

(Loss) Income before income taxes - GAAP	$	(54,543)	$	7,610	$	(56,371)	$	19,213
Adjustments:



Loss on sale of loans	37,823		—		37,823		—
IT termination fees	—		—		—		452
Anniversary expenses	—		—		—		120



Adjusted (loss) income before income taxes	$	(16,720)	$	7,610	$	(18,548)	$	19,785

Income tax (benefit) provision - GAAP	$	(12,950)	$	620	$	(15,914)	$	1,267
Adjustments: 2



Loss on sale of loans	8,699		—		8,699		—
IT termination fees	—		—		—		95
Anniversary expenses	—		—		—		25



Adjusted income tax (benefit) provision	$	(4,251)	$	620	$	(7,215)	$	1,387

Net (loss) income - GAAP	$	(41,593)	$	6,990	$	(40,457)	$	17,946
Adjustments:



Loss on sale of loans	29,124		—		29,124		—
IT termination fees	—		—		—		357
Anniversary expenses	—		—		—		95




Adjusted net (loss) income	$	(12,469)	$	6,990	$	(11,333)	$	18,398
1 Calculated as the sum of total interest income, total interest expense and noninterest (loss) income
2 Assuming a 21% tax rate


(dollars in thousands, except share and per share data)	Three Months Ended						Nine Months Ended
	September 30, 2025			September 30, 2024			September 30, 2025			September 30, 2024








Diluted average common shares outstanding	8,742,052			8,768,731			8,730,519			8,756,544

Diluted (loss) earnings per share - GAAP	$	(4.76)		$	0.80		$	(4.63)		$	2.05
Adjustments:
Effect of loss on sale of loans	3.33			—			3.34			—
Effect of IT termination fees	—			—			—			0.04
Effect of anniversary expenses	—			—			—			0.01
Adjusted diluted (loss) earnings per share	$	(1.43)		$	0.80		$	(1.29)		$	2.10

Return on average assets	(2.71		%)	0.50		%	(0.91		%)	0.45		%
Effect of loss on sale of loans	1.90		%	0.00		%	0.66		%	0.00		%
Effect of IT termination fees	0.00		%	0.00		%	0.00		%	0.01		%
Effect of anniversary expenses	0.00		%	0.00		%	0.00		%	0.00		%
Adjusted return on average assets	(0.81		%)	0.50		%	(0.25		%)	0.46		%

Return on average shareholders' equity	(42.11		%)	7.32		%	(13.80		%)	6.42		%
Effect of loss on sale of loans	29.48		%	0.00		%	9.94		%	0.00		%
Effect of IT termination fees	0.00		%	0.00		%	0.00		%	0.13		%
Effect of anniversary expenses	0.00		%	0.00		%	0.00		%	0.03		%
Adjusted return on average shareholders’ equity	(12.63		%)	7.32		%	(3.86		%)	6.58		%

Return on average tangible common equity	(42.62		%)	7.41		%	(13.97		%)	6.51		%
Effect of loss on sale of loans	29.84		%	0.00		%	10.06		%	0.00		%
Effect of IT termination fees	0.00		%	0.00		%	0.00		%	0.13		%
Effect of anniversary expenses	0.00		%	0.00		%	0.00		%	0.03		%
Adjusted return on average tangible common equity	(12.78		%)	7.41		%	(3.91		%)	6.67		%

Critical Accounting Policies and Estimates

There have been no material changes in the Company’s critical accounting policies or estimates from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024, except as described below.

Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Goodwill is not amortized but is periodically evaluated for impairment under the provisions of ASC Topic 350, Intangibles - Goodwill and Others. Impairment losses on recorded goodwill, if any, will be recorded as operating expenses.

Impairment testing is performed using either a qualitative or quantitative approach. The Company has selected August 31 as the date to perform the annual goodwill impairment test. Additionally, the Company performs a goodwill impairment evaluation on an interim basis when events or circumstances indicate impairment potentially exists.

To quantitatively test goodwill for impairment, an income-based approach and a market-based approach are completed. The income-based approach utilizes a calculation based on the discounted cash flow method and relies on assumptions, some of which involve a level of subjectivity and judgment. Certain assumptions may be subject to market and economic conditions. Notably, key inputs to estimate the discounted after-tax net income stream and terminal fair value of the Company include projected balance sheet and income statement forecasts prepared by Company management. Further, after-tax net income streams distributable to common equity holders are subjected to a minimum tangible equity requirement of 8.00%. These inputs are discounted by the cost of equity, which includes assumptions involving the Company’s beta, equity risk, size and premiums, and the 20-year treasury yield. Assumptions used in calculating the cost of equity are obtained using market and third-party data.

The market-based approach utilizes two methodologies for its calculation: a peer analysis and a comparable transaction analysis. The peer analysis uses a set of comparable institutions price to earnings and price to tangible book value multiples and

applies the multiple to forecasted net income/tangible book value to determine if impairment is present. The peer analysis also includes an assumed control premium in the determination of the fair value of the Company. The comparable transaction analysis applies price-to-earnings and price-to-tangible book value multiples for comparable merger and acquisition activity and applies the multiple to forecasted net income and tangible book value to determine if impairment is present. Notably, the comparable transaction analysis assumes a control premium is already implied within the multiples selected. Upon completion of the income-based approach and market-based approach, the results are then weighted to determine a final estimated fair value of equity. When results were compared to book value, no impairment was indicated as of August 31, 2025.

Judgment is inherent in assessing goodwill for impairment. The various assumptions used in assessing goodwill for impairment involve uncertainties that are beyond the Company’s control and could cause actual results to differ materially from those projected. We will continue to monitor the impact of current economic conditions and other events on the Company’s business, operating results, cash flows and financial condition. If the current economic conditions and other events were to deteriorate and the Company’s stock price falls below current levels for a prolonged period, we will have to reevaluate the impact on the Company’s financial condition and potential impairment of goodwill.

Recent Accounting Pronouncements

Refer to Note 15 to the condensed consolidated financial statements.

Off-Balance Sheet Arrangements

In the ordinary course of business, the Company enters into financial transactions to extend credit, interest rate swap agreements and forms of commitments that may be considered off-balance sheet arrangements. Interest rate swaps are arranged to receive hedge accounting treatment and are classified as either fair value or cash flow hedges. Fair value hedges are purchased to convert certain fixed rate assets to floating rate. Cash flow hedges are used to convert certain variable rate liabilities into fixed rate liabilities. In November 2024, the Company’s interest rate swap derivative designated as fair value hedges matured. In December 2024, the Company terminated interest rate swaps utilized as cash flow hedges against Federal Home Loan Bank advances. As a result, the Company had no interest rate swaps that were classified as either fair value or cash flow hedges either at September 30, 2025 or at December 31, 2024. Refer to Note 12 to the condensed consolidated financial statements for additional information about derivative financial instruments.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the risk of loss arising from adverse changes in the fair value of financial instruments due to changes in interest rates, foreign exchange rates and equity prices. The primary source of market risk for the Company is interest rate risk, which can be defined as the risk to earnings and the value of our equity resulting from changes in market interest rates. Interest rate risk arises in the normal course of business to the extent that there are timing and volume differences between the amount of interest-earning assets and the amount of interest-bearing liabilities that are prepaid, withdrawn, re-priced or mature in specified periods. We seek to achieve consistent growth in net interest income and equity while managing volatility arising from shifts in market interest rates.

We monitor the Company’s interest rate risk position using income simulation models and economic value of equity (“EVE”) sensitivity analysis that capture both short-term and long-term interest rate risk exposure. Income simulation involves forecasting net interest income (“NII”) under a variety of interest rate scenarios. We use EVE sensitivity analysis to understand the impact of changes in interest rates on long-term cash flows, income and capital. EVE is calculated by discounting the cash flows for all balance sheet instruments under different interest-rate scenarios. Modeling the sensitivity of NII and EVE to changes in market interest rates is highly dependent on the assumptions incorporated into the modeling process, especially those pertaining to non-maturity deposit accounts. These assumptions are reviewed and refined on an ongoing basis by the Company. We continually model our NII and EVE positions with various interest rate scenarios and assumptions of future balance sheet composition. We utilize implied forward rates in the base case scenario which reflects market expectations for rate changes over the next 24 months. Presented below is the estimated impact on our NII and EVE position as of September 30, 2025, assuming a static balance sheet and instantaneous parallel shifts in interest rates:


	% Change from Base Case for Instantaneous Parallel Changes in Rates
	Implied Forward Curve -200 Basis Points		Implied Forward Curve -100 Basis Points		Base Implied Forward Curve		Implied Forward Curve +50 Basis Points		Implied Forward Curve +100 Basis Points
NII - Year 1	(0.07	%)	0.19	%	N/A		(0.71	%)	(2.01	%)
NII - Year 2	0.21	%	3.39	%	3.82	%	2.96	%	1.89	%
EVE	0.59	%	2.68	%	N/A		(2.90	%)	(6.40	%)

To supplement the instantaneous rate shocks required by regulatory guidance, we also calculate our interest rate risk position assuming a gradual change in market interest rates. This gradual change is commonly referred to as a “rate ramp” and evenly allocates a change in interest rates over a specified time period.

Presented below is the estimated impact on the Company’s NII and EVE position as of September 30, 2025, assuming a static balance sheet and gradual parallel shifts in interest rates:


	% Change from Base Case for Gradual Changes in Rates
	Implied Forward Curve -200 Basis Points		Implied Forward Curve -100 Basis Points		Base Implied Forward Curve		Implied Forward Curve +50 Basis Points		Implied Forward Curve +100 Basis Points
NII - Year 1	0.08	%	0.05	%	N/A		(0.51	%)	(1.13	%)
NII - Year 2	2.66	%	3.75	%	3.82	%	2.86	%	1.75	%
EVE	(0.09	%)	2.37	%	N/A		(2.40	%)	(5.48	%)

The NII and EVE figures presented in the tables above are reflective of a static balance sheet, and do not incorporate either balance sheet growth or contraction, or strategies to increase net interest income while managing volatility arising from shifts in market interest rates. As such, it is likely that actual results will differ from what is presented in the tables above. Balance sheet strategies to achieve such objectives may include:

• Increasing the proportion of low-duration or variable-rate loans to total loans, including organic growth in small business, construction or C&I lending, and declines in longer-term loan portfolios

• Selling longer-term fixed rate loans

• Increasing the proportion of lower cost non-maturity deposits to total deposits

• Extending the duration of wholesale funding

• Executing derivative strategies to synthetically extend liabilities or shorten asset duration

• Repositioning the investment portfolio to manage its duration

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in reports that it files or submits under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized, and reported within the time period specified in the SEC’s rules and forms. These controls and procedures are also designed to provide reasonable assurance that such information is accumulated and communicated to management, including the principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosures. In designing and evaluating disclosure controls and procedures, the Company has recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Management is required to apply judgment in evaluating its controls and procedures.

The Company performed an evaluation under the supervision and with the participation of management, including the principal executive and principal financial officers, to assess the effectiveness of the design and operation of its disclosure controls and procedures under the Exchange Act. Based on that evaluation, our management, including our principal executive officer and principal financial officer, concluded that our disclosure controls and procedures were effective at a reasonable assurance level as of September 30, 2025.

Changes in Internal Control over Financial Reporting

There has been no change in the Company’s internal control over financial reporting during the quarter ended September 30, 2025 that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

PART II

ITEM 1. LEGAL PROCEEDINGS

Neither we nor any of our subsidiaries are party to any material legal proceedings. From time to time, the Bank is a party to legal actions arising from its normal business activities.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors previously disclosed in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2024.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not Applicable.

ITEM 5. OTHER INFORMATION

During the three months ended September 30, 2025, no directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted , modified or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act or any non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K).

ITEM 6. EXHIBITS

Exhibit No.

Description

Method of Filing

3.1

Amended and Restated Articles of Incorporation of First Internet Bancorp (incorporated by reference to Exhibit 3.1 to current report on Form 8-K filed May 21, 2020)

Incorporated by Reference

3.2

Amended and Restated Bylaws of First Internet Bancorp (incorporated by reference to Exhibit 3.2 to current report on Form 8-K filed May 21, 2020)

Incorporated by Reference

10.1*

Loan Portfolio Purchase Agreement, dated September 5, 2025 (incorporated by reference to Exhibit 10.1 to current report on Form 8-K filed September 10, 2025)

Incorporated by Reference

31.1

Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer

Filed Electronically

31.2

Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer

Filed Electronically

32.1

Section 1350 Certifications

Furnished Electronically

101

Inline XBRL Instance Document (does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document)

Filed Electronically

101.SCH

Inline XBRL Taxonomy Extension Schema

Filed Electronically

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase

Filed Electronically

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase

Filed Electronically

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase

Filed Electronically

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase

Filed Electronically

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

Filed Electronically

* Certain exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted exhibit can be furnished to the SEC upon request. Additionally, certain information that would constitute an unwarranted invasion of personal privacy has been redacted pursuant to Item 601(a)(6) of Regulation S-K.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


		FIRST INTERNET BANCORP

11/10/2025	By	/s/ David B. Becker
		David B. Becker, Chairman and Chief Executive Officer (on behalf of Registrant)

11/10/2025	By	/s/ Kenneth J. Lovik
		Kenneth J. Lovik, Executive Vice President and Chief Financial Officer (principal financial officer)

TABLE OF CONTENTS

Part I Item 1. Financial Statements Note 1: Basis Of Presentation Note 2: (loss) Earnings Per Share Note 3: Securities Note 4: Loans Note 5: Premises and Equipment Note 6: Goodwill Note 7: Servicing Asset Note 8: Subordinated Debt Note 9: Benefit Plans Note 10: Commitments and Credit Risk Note 11: Fair Value Of Financial Instruments Note 12: Derivative Financial Instruments Note 13: Accumulated Other Comprehensive Loss Note 14: Segment Information Note 15: Recent Accounting Pronouncements Note 16: Subsequent Event Item 2. Management S Discussion and Analysis Of Financial Condition and Results Of Operations Item 3. Quantitative and Qualitative Disclosures About Market Risk Item 4. Controls and Procedures Part II Item 1. Legal Proceedings Item 1A. Risk Factors Item 2. Unregistered Sales Of Equity Securities and Use Of Proceeds Item 3. Defaults Upon Senior Securities Item 4. Mine Safety Disclosures Item 5. Other Information Item 6. Exhibits

Exhibits

3.1 Amended and Restated Articles of Incorporation of First Internet Bancorp(incorporated by reference to Exhibit 3.1 to current report on Form 8-K filed May 21, 2020) Incorporated by Reference 3.2 Amended and Restated Bylaws of First Internet Bancorp(incorporated by reference to Exhibit 3.2 to current report on Form 8-K filed May 21, 2020) Incorporated by Reference 10.1* Loan Portfolio Purchase Agreement, dated September 5, 2025(incorporated by reference to Exhibit 10.1 to current report on Form 8-K filed September 10, 2025) Incorporated by Reference 31.1 Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer Filed Electronically 31.2 Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer Filed Electronically 32.1 Section 1350 Certifications Furnished Electronically

INBK 10-Q Quarter ended Sept. 30, 2025

Exhibits