First Internet Bancorp's Q1 2026 Earnings Showcase Resilience and Strength Amid Uncertainty
First Internet Bancorp, a leading internet-based bank, has reported its financial results for the first quarter of 2026, showcasing a strong performance amidst an uncertain macroeconomic environment. The company delivered solid revenue growth, expanded its net interest margin, and made meaningful progress on credit quality.
In a conference call to discuss the earnings, Chairman and CEO David Becker highlighted the company's resilience and strength in navigating these challenging times. 'We generated solid revenue growth, expanded our net interest margin, continued making meaningful progress on credit quality, all while navigating an uncertain macroeconomic environment,' he stated.
The company's total revenue reached $43.1 million in the first quarter, a 21% increase year-over-year, driven by a 26% increase in net interest income. The fully taxable equivalent net interest margin expanded to 2.45%, a 54 basis point improvement from a year ago and 15 basis points sequentially. This margin expansion reflects the benefits of the company's proactive balance sheet management strategy and its powerful deposit franchise.
Pre-provision net revenue grew 51% year-over-year to $18.1 million, underscoring the company's ability to generate strong operating leverage while maintaining disciplined expense management. The performance gives confidence in the company's ability to drive sustainable profitability as it continues to work through its credit normalization process.
On credit, the company's overall loan book remains solid and continues to perform in line with industry trends. The decisive actions taken over the past several quarters are yielding favorable results on the two problem portfolios, SBA and franchise. The provision for credit losses came in better than expected, and improving trends are observed in the portfolio, including delinquency and non-performing loans headed in the right direction.
The company's growth prospects remain robust across multiple verticals, with total loans increasing to $3.8 billion. Strong production is seen in single tenant lease financing and construction lending, as well as in one of its emerging verticals, wealth advisory lending. While maintaining appropriately conservative underwriting standards, the company is seeing great opportunities to deploy capital into high-quality commercial relationships at attractive yields.
Total deposits reached $5 billion, up from $4 billion, further strengthening the company's balance sheet. The performance showcases First Internet Bancorp's resilience and strength in navigating an uncertain macroeconomic environment.
