First Internet Bancorp operates as the bank holding company for First Internet Bank of Indiana that provides various commercial, small business, consumer, ...
First Internet Bancorp (NASDAQ: INBK) is a bank holding company headquartered in Fishers, Indiana, with its primary subsidiary, First Internet Bank of Indiana, operating as a digital bank since 1999. Founded by David Becker, the bank pioneered online banking as the first state-chartered, FDIC-insured institution to operate entirely online. The ...First Internet Bancorp (NASDAQ: INBK) is a bank holding company headquartered in Fishers, Indiana, with its primary subsidiary, First Internet Bank of Indiana, operating as a digital bank since 1999. Founded by David Becker, the bank pioneered online banking as the first state-chartered, FDIC-insured institution to operate entirely online. The company offers a diverse range of financial products and services including commercial and industrial loans, owner-occupied and investor commercial real estate loans, construction loans, single tenant lease financing, public and specialty finance, healthcare and finance lending, small business lending, commercial deposits and treasury management, franchise finance, residential mortgages, home equity loans, and other consumer loans. Additionally, it provides municipal finance lending and leasing products to government entities, treasury management services, and corporate credit cards. With approximately 354 employees, the bank focuses on an online-only model, leveraging technology to efficiently serve customers nationwide. The company has expanded its Banking as a Service capabilities, positioning itself as a premier provider of banking solutions for small business owners. Financially, the bank has shown resilience with a market capitalization of around $257 million, and despite recent negative returns due to economic conditions, it maintains a strong focus on innovation and customer experience. David Becker serves as Chairman and CEO, bringing over 25 years of leadership in the banking industry. The company remains committed to delivering personalized, interactive banking services while maintaining the convenience and accessibility of digital banking.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$322.9M
-3.2%
-2.3%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-35.2M
-239.1%
-5.7%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+13.7%
-59.2%
+5.8%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-15.8%
-290.7%
-9.0%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-10.9%
-243.7%
-3.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$2.2M
-78.6%
-67.9%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+0.7%
-77.9%
-67.1%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
98.7%
-5.3%
-0.7%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
110.02x
+29207.1%
-96.9%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: My name is Trevor and I will be your conference operator today. At this time, I would like to welcome everyone to the First Internet Bancorp earnings conference call for the second quarter 2026. Please note that this event is being recorded. It is now my pleasure to turn the call over to Julia Ferrara from ICR. You may begin your conference. Julia Ferrara Thank you, operator. Hello, everyone, and thank you for joining us to discuss First Internet Bancorp's second quarter 2026 financial results. The company issued its earnings press release earlier this afternoon, and it is available on the company's website at www.firstinternetbancorp.com. In addition, the company has included a slide presentation that you can refer to during the call. You can also access these slides on the website. Joining us from the management team today are Chairman and CEO, David Becker; President and COO, Nicole Lorch; and Executive Vice President and CFO, Ken Lovik. David and Nicole will provide an overview and Ken will discuss the financial results, and then we'll open the call up for your questions. Before we begin, I'd like to remind you that this conference call contains forward-looking statements with respect to the future performance and financial condition of First Internet Bancorp that involves risks and uncertainties. Various factors could cause actual results to be materially different from any future results expressed or implied by such forward-looking statements. These factors are discussed in the company's SEC filings, which are available on the company's website. The company disclaims any obligation to update any forward-looking statements during the call. Additionally, management may refer to non-GAAP measures which are intended to supplement but not substitute for the most directly comparable GAAP measures. The press release available on the website contains the financial and other quantitative information to be discussed today, as well as the reconciliation of the GAAP to non-GAAP measures. At this time, I'd like to turn the call over to David.
David Becker: Thank you, Julia. Good afternoon, and thank you for joining us. We're excited to report solid second quarter results with total revenue growing 23% year over year, pre-provision net revenue up 28%, and earnings per share of $0.27, up significantly from the prior year period. More importantly, this quarter marks a meaningful inflection point in our credit trajectory. For the past several quarters, credit has been the primary overhang on our results and on our stock. This quarter, that story began to turn. Over the past 18 months, we took a hard look at the credit outcomes we experienced and made meaningful changes to our underwriting, servicing, portfolio management, and resolution processes. Our disciplined actions are now translating into clear, measurable improvement, and we believe the credit trends we are seeing today mark a clear turning point in this cycle. Let me walk through why we …
