First Internet Bancorp reported record quarterly revenue of $43.9 million for the three months ended Sept. 30, 2026, alongside further expansion in its net interest margin. The digital-focused bank holding company also reported lower credit-loss provisions and improving delinquency and charge-off measures compared with the prior quarter, while booking specific reserves on some franchise-finance loans.
Diluted earnings per share were 54 cents, or 57 cents on an adjusted basis. The company scheduled a conference call and webcast for Oct. 29 to discuss the results.
Key details
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Revenue and margins strengthened. Revenue rose 7% from the second quarter to $43.9 million, a quarterly record. Net interest income increased 7% and noninterest income rose 6%. Net interest margin expanded 8 basis points to 2.47%; on a fully taxable-equivalent basis, it reached 2.55%.
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Pre-provision earnings grew. Pre-provision net revenue increased 14% quarter over quarter to $17.1 million, supported by higher revenue and managed expenses.
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Fintech-related income contributed to growth. Revenue from fintech fees rose 13% from the prior quarter. The company also cited embedded-finance activity as a source of growth in net interest income.
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Credit measures improved, but some loans required added reserves. The provision for credit losses was $11.6 million, down 13% from $13.4 million in the second quarter. Net charge-offs fell to 0.82% of average loans from 1.77%. Delinquencies excluding nonperforming loans declined for a second consecutive quarter, falling 38% from the prior quarter to 0.48% of performing loans.
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Franchise-finance exposures remain a credit issue. The company recorded $2.6 million in specific reserves for franchise-finance loans placed on nonaccrual, including one large relationship on which it took action late in the quarter.
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Earnings per share were 54 cents diluted, or 57 cents adjusted. The results provided do not detail the adjustment behind the higher adjusted figure.
Plain-English implications
Revenue and margin growth lifted pre-provision earnings, while charge-offs and delinquencies improved from the prior quarter. At the same time, the new specific reserves show that some franchise-finance loans continued to weigh on credit costs.