Companies: 10,762     total market cap: $133.156 T
โ‚ฌEUR๐Ÿ‡ช๐Ÿ‡บโ‚นINR๐Ÿ‡ฎ๐Ÿ‡ณยฃGBP๐Ÿ‡ฌ๐Ÿ‡ง$CAD๐Ÿ‡จ๐Ÿ‡ฆ$AUD๐Ÿ‡ฆ๐Ÿ‡บ$NZD๐Ÿ‡ณ๐Ÿ‡ฟ$HKD๐Ÿ‡ญ๐Ÿ‡ฐ$SGD๐Ÿ‡ธ๐Ÿ‡ฌ
First Internet Bancorp
INBK
#8658
Rank
$0.17 B
Marketcap
๐Ÿ‡บ๐Ÿ‡ธ United States
Country
$20.38
Share price
1.09%
Change (1 day)
-23.73%
Change (1 year)
๐Ÿ’ณ Financial services
Categories
  1. First Internet Bancorp
  2. Quarterly Reports (10-Q)
  3. Financial Year FY2024 Q2

First Internet Bancorp - 10-Q quarterly report FY2024 Q2


Text size:
000156246312/31falseQ22024http://fasb.org/us-gaap/2024#AccountingStandardsUpdate201613Memberxbrli:sharesiso4217:USDiso4217:USDxbrli:sharesinbk:subsidiaryxbrli:pureinbk:securityinbk:propertyinbk:loan00015624632024-01-012024-06-300001562463us-gaap:CommonStockMember2024-01-012024-06-300001562463inbk:A60FixedToFloatingSubordinatedNotesDue2029Member2024-01-012024-06-3000015624632024-08-0200015624632024-06-3000015624632023-12-310001562463inbk:VotingCommonStockMember2024-06-300001562463inbk:VotingCommonStockMember2023-12-310001562463us-gaap:NonvotingCommonStockMember2023-12-310001562463us-gaap:NonvotingCommonStockMember2024-06-3000015624632024-04-012024-06-3000015624632023-04-012023-06-3000015624632023-01-012023-06-300001562463us-gaap:BankServicingMember2024-04-012024-06-300001562463us-gaap:BankServicingMember2023-04-012023-06-300001562463us-gaap:BankServicingMember2024-01-012024-06-300001562463us-gaap:BankServicingMember2023-01-012023-06-300001562463inbk:LoanServicingMember2024-04-012024-06-300001562463inbk:LoanServicingMember2023-04-012023-06-300001562463inbk:LoanServicingMember2024-01-012024-06-300001562463inbk:LoanServicingMember2023-01-012023-06-300001562463inbk:LoanServicingAssetRevaluationMember2024-04-012024-06-300001562463inbk:LoanServicingAssetRevaluationMember2023-04-012023-06-300001562463inbk:LoanServicingAssetRevaluationMember2024-01-012024-06-300001562463inbk:LoanServicingAssetRevaluationMember2023-01-012023-06-300001562463us-gaap:MortgageBankingMember2024-04-012024-06-300001562463us-gaap:MortgageBankingMember2023-04-012023-06-300001562463us-gaap:MortgageBankingMember2024-01-012024-06-300001562463us-gaap:MortgageBankingMember2023-01-012023-06-300001562463us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-04-012024-06-300001562463us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-04-012023-06-300001562463us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-01-012024-06-300001562463us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-01-012023-06-300001562463us-gaap:CommonStockMemberinbk:VotingAndNonVotingCommonStockMember2023-12-310001562463us-gaap:RetainedEarningsMember2023-12-310001562463us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001562463us-gaap:RetainedEarningsMember2024-01-012024-06-300001562463us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-06-300001562463us-gaap:CommonStockMemberinbk:VotingAndNonVotingCommonStockMember2024-01-012024-06-300001562463inbk:VotingAndNonVotingCommonStockMember2024-01-012024-06-300001562463us-gaap:CommonStockMemberinbk:VotingAndNonVotingCommonStockMember2024-06-300001562463us-gaap:RetainedEarningsMember2024-06-300001562463us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-300001562463us-gaap:CommonStockMemberinbk:VotingAndNonVotingCommonStockMember2022-12-310001562463us-gaap:RetainedEarningsMember2022-12-310001562463us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-3100015624632022-12-3100015624632022-01-012022-12-310001562463srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2022-12-310001562463srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001562463us-gaap:RetainedEarningsMember2023-01-012023-06-300001562463us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-06-300001562463us-gaap:CommonStockMemberinbk:VotingAndNonVotingCommonStockMember2023-01-012023-06-300001562463us-gaap:CommonStockMemberinbk:VotingAndNonVotingCommonStockMember2023-06-300001562463us-gaap:RetainedEarningsMember2023-06-300001562463us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-3000015624632023-06-300001562463us-gaap:CommonStockMemberinbk:VotingAndNonVotingCommonStockMember2024-03-310001562463us-gaap:RetainedEarningsMember2024-03-310001562463us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-3100015624632024-03-310001562463us-gaap:RetainedEarningsMember2024-04-012024-06-300001562463us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-04-012024-06-300001562463us-gaap:CommonStockMemberinbk:VotingAndNonVotingCommonStockMember2024-04-012024-06-300001562463inbk:VotingAndNonVotingCommonStockMember2024-04-012024-06-300001562463us-gaap:CommonStockMemberinbk:VotingAndNonVotingCommonStockMember2023-03-310001562463us-gaap:RetainedEarningsMember2023-03-310001562463us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-3100015624632023-03-310001562463us-gaap:RetainedEarningsMember2023-04-012023-06-300001562463us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300001562463us-gaap:CommonStockMemberinbk:VotingAndNonVotingCommonStockMember2023-04-012023-06-300001562463inbk:VotingAndNonVotingCommonStockMember2023-04-012023-06-300001562463us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2024-06-300001562463us-gaap:MunicipalBondsMember2024-06-300001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2024-06-300001562463us-gaap:CommercialMortgageBackedSecuritiesMember2024-06-300001562463us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Member2024-06-300001562463us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2024-06-300001562463us-gaap:AssetBackedSecuritiesMember2024-06-300001562463us-gaap:CorporateDebtSecuritiesMember2024-06-300001562463us-gaap:ResidentialMortgageBackedSecuritiesMember2024-06-300001562463us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2023-12-310001562463us-gaap:MunicipalBondsMember2023-12-310001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2023-12-310001562463us-gaap:CommercialMortgageBackedSecuritiesMember2023-12-310001562463us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-12-310001562463us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2023-12-310001562463us-gaap:AssetBackedSecuritiesMember2023-12-310001562463us-gaap:CorporateDebtSecuritiesMember2023-12-310001562463us-gaap:CollateralizedSecuritiesMember2024-06-300001562463us-gaap:CollateralizedSecuritiesMember2023-12-310001562463srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2023-12-310001562463us-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMember2024-06-3000015624632023-01-012023-12-310001562463us-gaap:ResidentialMortgageBackedSecuritiesMember2023-12-310001562463srt:StandardPoorsAAARatingMemberus-gaap:MunicipalBondsMembersrt:MoodysAaaRatingMember2024-06-300001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMembersrt:StandardPoorsAAARatingMembersrt:MoodysAaaRatingMember2024-06-300001562463us-gaap:CommercialMortgageBackedSecuritiesMembersrt:StandardPoorsAAARatingMembersrt:MoodysAaaRatingMember2024-06-300001562463srt:StandardPoorsAAARatingMemberus-gaap:OtherDebtSecuritiesMembersrt:MoodysAaaRatingMember2024-06-300001562463srt:StandardPoorsAAARatingMembersrt:MoodysAaaRatingMember2024-06-300001562463srt:StandardPoorsAAPlusRatingMemberus-gaap:MunicipalBondsMembersrt:MoodysAa1RatingMember2024-06-300001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMembersrt:StandardPoorsAAPlusRatingMembersrt:MoodysAa1RatingMember2024-06-300001562463srt:StandardPoorsAAPlusRatingMemberus-gaap:CommercialMortgageBackedSecuritiesMembersrt:MoodysAa1RatingMember2024-06-300001562463srt:StandardPoorsAAPlusRatingMembersrt:MoodysAa1RatingMemberus-gaap:OtherDebtSecuritiesMember2024-06-300001562463srt:StandardPoorsAAPlusRatingMembersrt:MoodysAa1RatingMember2024-06-300001562463srt:StandardPoorsAARatingMemberus-gaap:MunicipalBondsMembersrt:MoodysAa2RatingMember2024-06-300001562463srt:StandardPoorsAARatingMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMembersrt:MoodysAa2RatingMember2024-06-300001562463srt:StandardPoorsAARatingMemberus-gaap:CommercialMortgageBackedSecuritiesMembersrt:MoodysAa2RatingMember2024-06-300001562463srt:StandardPoorsAARatingMemberus-gaap:OtherDebtSecuritiesMembersrt:MoodysAa2RatingMember2024-06-300001562463srt:StandardPoorsAARatingMembersrt:MoodysAa2RatingMember2024-06-300001562463srt:MoodysA1RatingMembersrt:StandardPoorsAPlusRatingMemberus-gaap:MunicipalBondsMember2024-06-300001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMembersrt:MoodysA1RatingMembersrt:StandardPoorsAPlusRatingMember2024-06-300001562463us-gaap:CommercialMortgageBackedSecuritiesMembersrt:MoodysA1RatingMembersrt:StandardPoorsAPlusRatingMember2024-06-300001562463srt:MoodysA1RatingMembersrt:StandardPoorsAPlusRatingMemberus-gaap:OtherDebtSecuritiesMember2024-06-300001562463srt:MoodysA1RatingMembersrt:StandardPoorsAPlusRatingMember2024-06-300001562463us-gaap:MunicipalBondsMembersrt:StandardPoorsARatingMembersrt:MoodysA2RatingMember2024-06-300001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMembersrt:StandardPoorsARatingMembersrt:MoodysA2RatingMember2024-06-300001562463us-gaap:CommercialMortgageBackedSecuritiesMembersrt:StandardPoorsARatingMembersrt:MoodysA2RatingMember2024-06-300001562463srt:StandardPoorsARatingMemberus-gaap:OtherDebtSecuritiesMembersrt:MoodysA2RatingMember2024-06-300001562463srt:StandardPoorsARatingMembersrt:MoodysA2RatingMember2024-06-300001562463us-gaap:MunicipalBondsMembersrt:MoodysA3RatingMembersrt:StandardPoorsAMinusRatingMember2024-06-300001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMembersrt:MoodysA3RatingMembersrt:StandardPoorsAMinusRatingMember2024-06-300001562463us-gaap:CommercialMortgageBackedSecuritiesMembersrt:MoodysA3RatingMembersrt:StandardPoorsAMinusRatingMember2024-06-300001562463us-gaap:OtherDebtSecuritiesMembersrt:MoodysA3RatingMembersrt:StandardPoorsAMinusRatingMember2024-06-300001562463srt:StandardPoorsAMinusRatingMembersrt:MoodysA3RatingMember2024-06-300001562463srt:StandardPoorsBBBPlusRatingMemberus-gaap:MunicipalBondsMembersrt:MoodysBaa1RatingMember2024-06-300001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMembersrt:StandardPoorsBBBPlusRatingMembersrt:MoodysBaa1RatingMember2024-06-300001562463us-gaap:CommercialMortgageBackedSecuritiesMembersrt:StandardPoorsBBBPlusRatingMembersrt:MoodysBaa1RatingMember2024-06-300001562463srt:StandardPoorsBBBPlusRatingMemberus-gaap:OtherDebtSecuritiesMembersrt:MoodysBaa1RatingMember2024-06-300001562463srt:StandardPoorsBBBPlusRatingMembersrt:MoodysBaa1RatingMember2024-06-300001562463us-gaap:MunicipalBondsMembersrt:StandardPoorsBBBRatingMembersrt:MoodysBaa2RatingMember2024-06-300001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMembersrt:StandardPoorsBBBRatingMembersrt:MoodysBaa2RatingMember2024-06-300001562463us-gaap:CommercialMortgageBackedSecuritiesMembersrt:StandardPoorsBBBRatingMembersrt:MoodysBaa2RatingMember2024-06-300001562463srt:StandardPoorsBBBRatingMemberus-gaap:OtherDebtSecuritiesMembersrt:MoodysBaa2RatingMember2024-06-300001562463srt:StandardPoorsBBBRatingMembersrt:MoodysBaa2RatingMember2024-06-300001562463us-gaap:MunicipalBondsMembersrt:MoodysBaa3RatingMembersrt:StandardPoorsBBBMinusRatingMember2024-06-300001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMembersrt:MoodysBaa3RatingMembersrt:StandardPoorsBBBMinusRatingMember2024-06-300001562463us-gaap:CommercialMortgageBackedSecuritiesMembersrt:MoodysBaa3RatingMembersrt:StandardPoorsBBBMinusRatingMember2024-06-300001562463srt:MoodysBaa3RatingMembersrt:StandardPoorsBBBMinusRatingMemberus-gaap:OtherDebtSecuritiesMember2024-06-300001562463srt:MoodysBaa3RatingMembersrt:StandardPoorsBBBMinusRatingMember2024-06-300001562463srt:MoodysBa1RatingMemberus-gaap:MunicipalBondsMembersrt:StandardPoorsBBPlusRatingMember2024-06-300001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMembersrt:MoodysBa1RatingMembersrt:StandardPoorsBBPlusRatingMember2024-06-300001562463us-gaap:CommercialMortgageBackedSecuritiesMembersrt:MoodysBa1RatingMembersrt:StandardPoorsBBPlusRatingMember2024-06-300001562463srt:MoodysBa1RatingMemberus-gaap:OtherDebtSecuritiesMembersrt:StandardPoorsBBPlusRatingMember2024-06-300001562463srt:MoodysBa1RatingMembersrt:StandardPoorsBBPlusRatingMember2024-06-300001562463us-gaap:OtherDebtSecuritiesMember2024-06-300001562463srt:StandardPoorsAAARatingMemberus-gaap:MunicipalBondsMembersrt:MoodysAaaRatingMember2023-12-310001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMembersrt:StandardPoorsAAARatingMembersrt:MoodysAaaRatingMember2023-12-310001562463us-gaap:CommercialMortgageBackedSecuritiesMembersrt:StandardPoorsAAARatingMembersrt:MoodysAaaRatingMember2023-12-310001562463srt:StandardPoorsAAARatingMemberus-gaap:OtherDebtSecuritiesMembersrt:MoodysAaaRatingMember2023-12-310001562463srt:StandardPoorsAAARatingMembersrt:MoodysAaaRatingMember2023-12-310001562463srt:StandardPoorsAAPlusRatingMemberus-gaap:MunicipalBondsMembersrt:MoodysAa1RatingMember2023-12-310001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMembersrt:StandardPoorsAAPlusRatingMembersrt:MoodysAa1RatingMember2023-12-310001562463srt:StandardPoorsAAPlusRatingMemberus-gaap:CommercialMortgageBackedSecuritiesMembersrt:MoodysAa1RatingMember2023-12-310001562463srt:StandardPoorsAAPlusRatingMembersrt:MoodysAa1RatingMemberus-gaap:OtherDebtSecuritiesMember2023-12-310001562463srt:StandardPoorsAAPlusRatingMembersrt:MoodysAa1RatingMember2023-12-310001562463srt:StandardPoorsAARatingMemberus-gaap:MunicipalBondsMembersrt:MoodysAa2RatingMember2023-12-310001562463srt:StandardPoorsAARatingMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMembersrt:MoodysAa2RatingMember2023-12-310001562463srt:StandardPoorsAARatingMemberus-gaap:CommercialMortgageBackedSecuritiesMembersrt:MoodysAa2RatingMember2023-12-310001562463srt:StandardPoorsAARatingMemberus-gaap:OtherDebtSecuritiesMembersrt:MoodysAa2RatingMember2023-12-310001562463srt:StandardPoorsAARatingMembersrt:MoodysAa2RatingMember2023-12-310001562463srt:MoodysA1RatingMembersrt:StandardPoorsAPlusRatingMemberus-gaap:MunicipalBondsMember2023-12-310001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMembersrt:MoodysA1RatingMembersrt:StandardPoorsAPlusRatingMember2023-12-310001562463us-gaap:CommercialMortgageBackedSecuritiesMembersrt:MoodysA1RatingMembersrt:StandardPoorsAPlusRatingMember2023-12-310001562463srt:MoodysA1RatingMembersrt:StandardPoorsAPlusRatingMemberus-gaap:OtherDebtSecuritiesMember2023-12-310001562463srt:MoodysA1RatingMembersrt:StandardPoorsAPlusRatingMember2023-12-310001562463us-gaap:MunicipalBondsMembersrt:StandardPoorsARatingMembersrt:MoodysA2RatingMember2023-12-310001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMembersrt:StandardPoorsARatingMembersrt:MoodysA2RatingMember2023-12-310001562463us-gaap:CommercialMortgageBackedSecuritiesMembersrt:StandardPoorsARatingMembersrt:MoodysA2RatingMember2023-12-310001562463srt:StandardPoorsARatingMemberus-gaap:OtherDebtSecuritiesMembersrt:MoodysA2RatingMember2023-12-310001562463srt:StandardPoorsARatingMembersrt:MoodysA2RatingMember2023-12-310001562463us-gaap:MunicipalBondsMembersrt:MoodysA3RatingMembersrt:StandardPoorsAMinusRatingMember2023-12-310001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMembersrt:MoodysA3RatingMembersrt:StandardPoorsAMinusRatingMember2023-12-310001562463us-gaap:CommercialMortgageBackedSecuritiesMembersrt:MoodysA3RatingMembersrt:StandardPoorsAMinusRatingMember2023-12-310001562463us-gaap:OtherDebtSecuritiesMembersrt:MoodysA3RatingMembersrt:StandardPoorsAMinusRatingMember2023-12-310001562463srt:StandardPoorsAMinusRatingMembersrt:MoodysA3RatingMember2023-12-310001562463srt:StandardPoorsBBBPlusRatingMemberus-gaap:MunicipalBondsMembersrt:MoodysBaa1RatingMember2023-12-310001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMembersrt:StandardPoorsBBBPlusRatingMembersrt:MoodysBaa1RatingMember2023-12-310001562463us-gaap:CommercialMortgageBackedSecuritiesMembersrt:StandardPoorsBBBPlusRatingMembersrt:MoodysBaa1RatingMember2023-12-310001562463srt:StandardPoorsBBBPlusRatingMemberus-gaap:OtherDebtSecuritiesMembersrt:MoodysBaa1RatingMember2023-12-310001562463srt:StandardPoorsBBBPlusRatingMembersrt:MoodysBaa1RatingMember2023-12-310001562463us-gaap:MunicipalBondsMembersrt:StandardPoorsBBBRatingMembersrt:MoodysBaa2RatingMember2023-12-310001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMembersrt:StandardPoorsBBBRatingMembersrt:MoodysBaa2RatingMember2023-12-310001562463us-gaap:CommercialMortgageBackedSecuritiesMembersrt:StandardPoorsBBBRatingMembersrt:MoodysBaa2RatingMember2023-12-310001562463srt:StandardPoorsBBBRatingMemberus-gaap:OtherDebtSecuritiesMembersrt:MoodysBaa2RatingMember2023-12-310001562463srt:StandardPoorsBBBRatingMembersrt:MoodysBaa2RatingMember2023-12-310001562463us-gaap:MunicipalBondsMembersrt:MoodysBaa3RatingMembersrt:StandardPoorsBBBMinusRatingMember2023-12-310001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMembersrt:MoodysBaa3RatingMembersrt:StandardPoorsBBBMinusRatingMember2023-12-310001562463us-gaap:CommercialMortgageBackedSecuritiesMembersrt:MoodysBaa3RatingMembersrt:StandardPoorsBBBMinusRatingMember2023-12-310001562463srt:MoodysBaa3RatingMembersrt:StandardPoorsBBBMinusRatingMemberus-gaap:OtherDebtSecuritiesMember2023-12-310001562463srt:MoodysBaa3RatingMembersrt:StandardPoorsBBBMinusRatingMember2023-12-310001562463srt:MoodysBa1RatingMemberus-gaap:MunicipalBondsMembersrt:StandardPoorsBBPlusRatingMember2023-12-310001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMembersrt:MoodysBa1RatingMembersrt:StandardPoorsBBPlusRatingMember2023-12-310001562463us-gaap:CommercialMortgageBackedSecuritiesMembersrt:MoodysBa1RatingMembersrt:StandardPoorsBBPlusRatingMember2023-12-310001562463srt:MoodysBa1RatingMemberus-gaap:OtherDebtSecuritiesMembersrt:StandardPoorsBBPlusRatingMember2023-12-310001562463srt:MoodysBa1RatingMembersrt:StandardPoorsBBPlusRatingMember2023-12-310001562463us-gaap:OtherDebtSecuritiesMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:OwnerOccupiedCommercialRealEstateMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:OwnerOccupiedCommercialRealEstateMember2023-12-310001562463us-gaap:RealEstateMemberus-gaap:CommercialPortfolioSegmentMember2024-06-300001562463us-gaap:RealEstateMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:ConstructionLoansMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:ConstructionLoansMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SingleTenantLeaseMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SingleTenantLeaseMember2023-12-310001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMember2024-06-300001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:HealthcareFinanceMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:HealthcareFinanceMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:FranchiseFinanceMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:FranchiseFinanceMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMember2023-12-310001562463us-gaap:ResidentialMortgageMemberus-gaap:ConsumerPortfolioSegmentMember2024-06-300001562463us-gaap:ResidentialMortgageMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001562463us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2024-06-300001562463us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2023-12-310001562463inbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMember2024-06-300001562463inbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001562463us-gaap:ConsumerPortfolioSegmentMember2024-06-300001562463us-gaap:ConsumerPortfolioSegmentMember2023-12-310001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:InterestRateSwapMember2024-06-300001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:InterestRateSwapMember2023-12-310001562463us-gaap:CommercialRealEstateMember2024-03-310001562463us-gaap:CommercialRealEstateMember2024-04-012024-06-300001562463us-gaap:CommercialRealEstateMember2024-06-300001562463inbk:OwnerOccupiedCommercialRealEstateMember2024-03-310001562463inbk:OwnerOccupiedCommercialRealEstateMember2024-04-012024-06-300001562463inbk:OwnerOccupiedCommercialRealEstateMember2024-06-300001562463us-gaap:RealEstateMember2024-03-310001562463us-gaap:RealEstateMember2024-04-012024-06-300001562463us-gaap:RealEstateMember2024-06-300001562463us-gaap:ConstructionLoansMember2024-03-310001562463us-gaap:ConstructionLoansMember2024-04-012024-06-300001562463us-gaap:ConstructionLoansMember2024-06-300001562463inbk:SingleTenantLeaseMember2024-03-310001562463inbk:SingleTenantLeaseMember2024-04-012024-06-300001562463inbk:SingleTenantLeaseMember2024-06-300001562463inbk:PublicFinanceMember2024-03-310001562463inbk:PublicFinanceMember2024-04-012024-06-300001562463inbk:PublicFinanceMember2024-06-300001562463inbk:HealthcareFinanceMember2024-03-310001562463inbk:HealthcareFinanceMember2024-04-012024-06-300001562463inbk:HealthcareFinanceMember2024-06-300001562463inbk:SmallBusinessLendingMember2024-03-310001562463inbk:SmallBusinessLendingMember2024-04-012024-06-300001562463inbk:SmallBusinessLendingMember2024-06-300001562463inbk:FranchiseFinanceMember2024-03-310001562463inbk:FranchiseFinanceMember2024-04-012024-06-300001562463inbk:FranchiseFinanceMember2024-06-300001562463us-gaap:ResidentialMortgageMember2024-03-310001562463us-gaap:ResidentialMortgageMember2024-04-012024-06-300001562463us-gaap:ResidentialMortgageMember2024-06-300001562463us-gaap:HomeEquityLoanMember2024-03-310001562463us-gaap:HomeEquityLoanMember2024-04-012024-06-300001562463us-gaap:HomeEquityLoanMember2024-06-300001562463inbk:OtherConsumerLoansMember2024-03-310001562463inbk:OtherConsumerLoansMember2024-04-012024-06-300001562463inbk:OtherConsumerLoansMember2024-06-300001562463us-gaap:CommercialRealEstateMember2023-12-310001562463us-gaap:CommercialRealEstateMember2024-01-012024-06-300001562463inbk:OwnerOccupiedCommercialRealEstateMember2023-12-310001562463inbk:OwnerOccupiedCommercialRealEstateMember2024-01-012024-06-300001562463us-gaap:RealEstateMember2023-12-310001562463us-gaap:RealEstateMember2024-01-012024-06-300001562463us-gaap:ConstructionLoansMember2023-12-310001562463us-gaap:ConstructionLoansMember2024-01-012024-06-300001562463inbk:SingleTenantLeaseMember2023-12-310001562463inbk:SingleTenantLeaseMember2024-01-012024-06-300001562463inbk:PublicFinanceMember2023-12-310001562463inbk:PublicFinanceMember2024-01-012024-06-300001562463inbk:HealthcareFinanceMember2023-12-310001562463inbk:HealthcareFinanceMember2024-01-012024-06-300001562463inbk:SmallBusinessLendingMember2023-12-310001562463inbk:SmallBusinessLendingMember2024-01-012024-06-300001562463inbk:FranchiseFinanceMember2023-12-310001562463inbk:FranchiseFinanceMember2024-01-012024-06-300001562463us-gaap:ResidentialMortgageMember2023-12-310001562463us-gaap:ResidentialMortgageMember2024-01-012024-06-300001562463us-gaap:HomeEquityLoanMember2023-12-310001562463us-gaap:HomeEquityLoanMember2024-01-012024-06-300001562463inbk:OtherConsumerLoansMember2023-12-310001562463inbk:OtherConsumerLoansMember2024-01-012024-06-300001562463us-gaap:CommercialRealEstateMember2023-03-310001562463us-gaap:CommercialRealEstateMember2023-04-012023-06-300001562463us-gaap:CommercialRealEstateMember2023-06-300001562463inbk:OwnerOccupiedCommercialRealEstateMember2023-03-310001562463inbk:OwnerOccupiedCommercialRealEstateMember2023-04-012023-06-300001562463inbk:OwnerOccupiedCommercialRealEstateMember2023-06-300001562463us-gaap:RealEstateMember2023-03-310001562463us-gaap:RealEstateMember2023-04-012023-06-300001562463us-gaap:RealEstateMember2023-06-300001562463us-gaap:ConstructionLoansMember2023-03-310001562463us-gaap:ConstructionLoansMember2023-04-012023-06-300001562463us-gaap:ConstructionLoansMember2023-06-300001562463inbk:SingleTenantLeaseMember2023-03-310001562463inbk:SingleTenantLeaseMember2023-04-012023-06-300001562463inbk:SingleTenantLeaseMember2023-06-300001562463inbk:PublicFinanceMember2023-03-310001562463inbk:PublicFinanceMember2023-04-012023-06-300001562463inbk:PublicFinanceMember2023-06-300001562463inbk:HealthcareFinanceMember2023-03-310001562463inbk:HealthcareFinanceMember2023-04-012023-06-300001562463inbk:HealthcareFinanceMember2023-06-300001562463inbk:SmallBusinessLendingMember2023-03-310001562463inbk:SmallBusinessLendingMember2023-04-012023-06-300001562463inbk:SmallBusinessLendingMember2023-06-300001562463inbk:FranchiseFinanceMember2023-03-310001562463inbk:FranchiseFinanceMember2023-04-012023-06-300001562463inbk:FranchiseFinanceMember2023-06-300001562463us-gaap:ResidentialMortgageMember2023-03-310001562463us-gaap:ResidentialMortgageMember2023-04-012023-06-300001562463us-gaap:ResidentialMortgageMember2023-06-300001562463us-gaap:HomeEquityLoanMember2023-03-310001562463us-gaap:HomeEquityLoanMember2023-04-012023-06-300001562463us-gaap:HomeEquityLoanMember2023-06-300001562463inbk:OtherConsumerLoansMember2023-03-310001562463inbk:OtherConsumerLoansMember2023-04-012023-06-300001562463inbk:OtherConsumerLoansMember2023-06-300001562463us-gaap:CommercialRealEstateMember2022-12-310001562463us-gaap:CommercialRealEstateMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001562463us-gaap:CommercialRealEstateMember2023-01-012023-06-300001562463inbk:OwnerOccupiedCommercialRealEstateMember2022-12-310001562463srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberinbk:OwnerOccupiedCommercialRealEstateMember2022-12-310001562463inbk:OwnerOccupiedCommercialRealEstateMember2023-01-012023-06-300001562463us-gaap:RealEstateMember2022-12-310001562463us-gaap:RealEstateMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001562463us-gaap:RealEstateMember2023-01-012023-06-300001562463us-gaap:ConstructionLoansMember2022-12-310001562463srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:ConstructionLoansMember2022-12-310001562463us-gaap:ConstructionLoansMember2023-01-012023-06-300001562463inbk:SingleTenantLeaseMember2022-12-310001562463srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberinbk:SingleTenantLeaseMember2022-12-310001562463inbk:SingleTenantLeaseMember2023-01-012023-06-300001562463inbk:PublicFinanceMember2022-12-310001562463inbk:PublicFinanceMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001562463inbk:PublicFinanceMember2023-01-012023-06-300001562463inbk:HealthcareFinanceMember2022-12-310001562463srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberinbk:HealthcareFinanceMember2022-12-310001562463inbk:HealthcareFinanceMember2023-01-012023-06-300001562463inbk:SmallBusinessLendingMember2022-12-310001562463srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberinbk:SmallBusinessLendingMember2022-12-310001562463inbk:SmallBusinessLendingMember2023-01-012023-06-300001562463inbk:FranchiseFinanceMember2022-12-310001562463srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberinbk:FranchiseFinanceMember2022-12-310001562463inbk:FranchiseFinanceMember2023-01-012023-06-300001562463us-gaap:ResidentialMortgageMember2022-12-310001562463us-gaap:ResidentialMortgageMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001562463us-gaap:ResidentialMortgageMember2023-01-012023-06-300001562463us-gaap:HomeEquityLoanMember2022-12-310001562463srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:HomeEquityLoanMember2022-12-310001562463us-gaap:HomeEquityLoanMember2023-01-012023-06-300001562463inbk:OtherConsumerLoansMember2022-12-310001562463inbk:OtherConsumerLoansMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001562463inbk:OtherConsumerLoansMember2023-01-012023-06-300001562463srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2023-01-010001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMember2024-03-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMember2024-04-012024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:ConstructionLoansMember2024-03-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:ConstructionLoansMember2024-04-012024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMember2024-03-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMember2024-04-012024-06-300001562463us-gaap:CommercialPortfolioSegmentMember2024-03-310001562463us-gaap:CommercialPortfolioSegmentMember2024-04-012024-06-300001562463us-gaap:ResidentialMortgageMemberus-gaap:ConsumerPortfolioSegmentMember2024-03-310001562463us-gaap:ResidentialMortgageMemberus-gaap:ConsumerPortfolioSegmentMember2024-04-012024-06-300001562463us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2024-03-310001562463us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2024-04-012024-06-300001562463inbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMember2024-03-310001562463inbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMember2024-04-012024-06-300001562463us-gaap:ConsumerPortfolioSegmentMember2024-03-310001562463us-gaap:ConsumerPortfolioSegmentMember2024-04-012024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMember2024-01-012024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:OwnerOccupiedCommercialRealEstateMember2024-01-012024-06-300001562463us-gaap:RealEstateMemberus-gaap:CommercialPortfolioSegmentMember2024-01-012024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:ConstructionLoansMember2024-01-012024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:HealthcareFinanceMember2024-01-012024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMember2024-01-012024-06-300001562463us-gaap:CommercialPortfolioSegmentMember2024-01-012024-06-300001562463us-gaap:ResidentialMortgageMemberus-gaap:ConsumerPortfolioSegmentMember2024-01-012024-06-300001562463us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2024-01-012024-06-300001562463inbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMember2024-01-012024-06-300001562463us-gaap:ConsumerPortfolioSegmentMember2024-01-012024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMember2023-03-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMember2023-04-012023-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMember2023-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:OwnerOccupiedCommercialRealEstateMember2023-03-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:OwnerOccupiedCommercialRealEstateMember2023-04-012023-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:OwnerOccupiedCommercialRealEstateMember2023-06-300001562463us-gaap:RealEstateMemberus-gaap:CommercialPortfolioSegmentMember2023-03-310001562463us-gaap:RealEstateMemberus-gaap:CommercialPortfolioSegmentMember2023-04-012023-06-300001562463us-gaap:RealEstateMemberus-gaap:CommercialPortfolioSegmentMember2023-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:ConstructionLoansMember2023-03-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:ConstructionLoansMember2023-04-012023-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:ConstructionLoansMember2023-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:HealthcareFinanceMember2023-03-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:HealthcareFinanceMember2023-04-012023-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:HealthcareFinanceMember2023-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMember2023-03-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMember2023-04-012023-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMember2023-06-300001562463us-gaap:CommercialPortfolioSegmentMember2023-03-310001562463us-gaap:CommercialPortfolioSegmentMember2023-04-012023-06-300001562463us-gaap:CommercialPortfolioSegmentMember2023-06-300001562463us-gaap:ResidentialMortgageMemberus-gaap:ConsumerPortfolioSegmentMember2023-03-310001562463us-gaap:ResidentialMortgageMemberus-gaap:ConsumerPortfolioSegmentMember2023-04-012023-06-300001562463us-gaap:ResidentialMortgageMemberus-gaap:ConsumerPortfolioSegmentMember2023-06-300001562463us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2023-03-310001562463us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2023-04-012023-06-300001562463us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2023-06-300001562463inbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMember2023-03-310001562463inbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMember2023-04-012023-06-300001562463inbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMember2023-06-300001562463us-gaap:ConsumerPortfolioSegmentMember2023-03-310001562463us-gaap:ConsumerPortfolioSegmentMember2023-04-012023-06-300001562463us-gaap:ConsumerPortfolioSegmentMember2023-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMember2022-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2023-01-012023-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:OwnerOccupiedCommercialRealEstateMember2022-12-310001562463us-gaap:CommercialPortfolioSegmentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberinbk:OwnerOccupiedCommercialRealEstateMember2022-12-310001562463us-gaap:CommercialPortfolioSegmentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberinbk:OwnerOccupiedCommercialRealEstateMember2023-01-012023-06-300001562463us-gaap:RealEstateMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2023-01-012023-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:ConstructionLoansMember2022-12-310001562463us-gaap:CommercialPortfolioSegmentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:ConstructionLoansMember2022-12-310001562463us-gaap:CommercialPortfolioSegmentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:ConstructionLoansMember2023-01-012023-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:HealthcareFinanceMember2022-12-310001562463us-gaap:CommercialPortfolioSegmentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberinbk:HealthcareFinanceMember2022-12-310001562463us-gaap:CommercialPortfolioSegmentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberinbk:HealthcareFinanceMember2023-01-012023-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMember2022-12-310001562463us-gaap:CommercialPortfolioSegmentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberinbk:SmallBusinessLendingMember2022-12-310001562463us-gaap:CommercialPortfolioSegmentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberinbk:SmallBusinessLendingMember2023-01-012023-06-300001562463us-gaap:CommercialPortfolioSegmentMember2022-12-310001562463us-gaap:CommercialPortfolioSegmentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001562463us-gaap:CommercialPortfolioSegmentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2023-01-012023-06-300001562463us-gaap:ResidentialMortgageMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001562463us-gaap:ResidentialMortgageMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001562463us-gaap:ResidentialMortgageMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:ConsumerPortfolioSegmentMember2023-01-012023-06-300001562463us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2022-12-310001562463srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2022-12-310001562463srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2023-01-012023-06-300001562463inbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001562463inbk:OtherConsumerLoansMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001562463inbk:OtherConsumerLoansMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:ConsumerPortfolioSegmentMember2023-01-012023-06-300001562463us-gaap:ConsumerPortfolioSegmentMember2022-12-310001562463srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001562463srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:ConsumerPortfolioSegmentMember2023-01-012023-06-300001562463srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2023-01-012023-06-300001562463us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:SpecialMentionMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMemberus-gaap:CommercialRealEstateMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:DoubtfulMember2024-06-300001562463us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMemberinbk:OwnerOccupiedCommercialRealEstateMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:OwnerOccupiedCommercialRealEstateMemberus-gaap:SpecialMentionMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMemberinbk:OwnerOccupiedCommercialRealEstateMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMemberinbk:OwnerOccupiedCommercialRealEstateMember2024-06-300001562463us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMemberus-gaap:SpecialMentionMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMemberus-gaap:SubstandardMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMemberus-gaap:DoubtfulMember2024-06-300001562463us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:ConstructionLoansMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:SpecialMentionMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMemberus-gaap:ConstructionLoansMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMemberus-gaap:ConstructionLoansMember2024-06-300001562463us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMemberinbk:SingleTenantLeaseMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMemberinbk:SingleTenantLeaseMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMemberinbk:SingleTenantLeaseMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMemberinbk:SingleTenantLeaseMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SingleTenantLeaseMember2024-01-012024-06-300001562463us-gaap:PassMemberinbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMember2024-06-300001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMember2024-06-300001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMember2024-06-300001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMember2024-06-300001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMember2024-01-012024-06-300001562463us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMemberinbk:HealthcareFinanceMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:HealthcareFinanceMemberus-gaap:SpecialMentionMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMemberinbk:HealthcareFinanceMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMemberinbk:HealthcareFinanceMember2024-06-300001562463us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMemberus-gaap:SpecialMentionMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMemberinbk:SmallBusinessLendingMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMemberinbk:SmallBusinessLendingMember2024-06-300001562463us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMemberinbk:FranchiseFinanceMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMemberinbk:FranchiseFinanceMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMemberinbk:FranchiseFinanceMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMemberinbk:FranchiseFinanceMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:FranchiseFinanceMember2024-01-012024-06-300001562463us-gaap:ResidentialMortgageMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2024-06-300001562463us-gaap:ResidentialMortgageMemberus-gaap:NonperformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2024-06-300001562463us-gaap:PerformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2024-06-300001562463us-gaap:NonperformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2024-06-300001562463inbk:OtherConsumerLoansMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2024-06-300001562463us-gaap:NonperformingFinancingReceivableMemberinbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMember2024-06-300001562463us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:SpecialMentionMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMemberus-gaap:CommercialRealEstateMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:DoubtfulMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMember2023-01-012023-12-310001562463us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMemberinbk:OwnerOccupiedCommercialRealEstateMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:OwnerOccupiedCommercialRealEstateMemberus-gaap:SpecialMentionMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMemberinbk:OwnerOccupiedCommercialRealEstateMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMemberinbk:OwnerOccupiedCommercialRealEstateMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:OwnerOccupiedCommercialRealEstateMember2023-01-012023-12-310001562463us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMemberus-gaap:SpecialMentionMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMemberus-gaap:SubstandardMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMemberus-gaap:DoubtfulMember2023-12-310001562463us-gaap:RealEstateMemberus-gaap:CommercialPortfolioSegmentMember2023-01-012023-12-310001562463us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:ConstructionLoansMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:SpecialMentionMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMemberus-gaap:ConstructionLoansMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMemberus-gaap:ConstructionLoansMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:ConstructionLoansMember2023-01-012023-12-310001562463us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMemberinbk:SingleTenantLeaseMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMemberinbk:SingleTenantLeaseMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMemberinbk:SingleTenantLeaseMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMemberinbk:SingleTenantLeaseMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SingleTenantLeaseMember2023-01-012023-12-310001562463us-gaap:PassMemberinbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMember2023-12-310001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMember2023-12-310001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMember2023-12-310001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMember2023-01-012023-12-310001562463us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMemberinbk:HealthcareFinanceMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:HealthcareFinanceMemberus-gaap:SpecialMentionMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMemberinbk:HealthcareFinanceMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMemberinbk:HealthcareFinanceMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:HealthcareFinanceMember2023-01-012023-12-310001562463us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMemberus-gaap:SpecialMentionMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMemberinbk:SmallBusinessLendingMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMemberinbk:SmallBusinessLendingMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMember2023-01-012023-12-310001562463us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMemberinbk:FranchiseFinanceMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMemberinbk:FranchiseFinanceMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMemberinbk:FranchiseFinanceMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMemberinbk:FranchiseFinanceMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:FranchiseFinanceMember2023-01-012023-12-310001562463us-gaap:ResidentialMortgageMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001562463us-gaap:ResidentialMortgageMemberus-gaap:NonperformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001562463us-gaap:ResidentialMortgageMemberus-gaap:ConsumerPortfolioSegmentMember2023-01-012023-12-310001562463us-gaap:PerformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2023-12-310001562463us-gaap:NonperformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2023-12-310001562463us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2023-01-012023-12-310001562463inbk:OtherConsumerLoansMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001562463us-gaap:NonperformingFinancingReceivableMemberinbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001562463inbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMember2023-01-012023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancialAssetPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancialAssetNotPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberinbk:OwnerOccupiedCommercialRealEstateMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberinbk:OwnerOccupiedCommercialRealEstateMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:OwnerOccupiedCommercialRealEstateMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMemberinbk:OwnerOccupiedCommercialRealEstateMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:OwnerOccupiedCommercialRealEstateMemberus-gaap:FinancialAssetNotPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMemberus-gaap:FinancialAssetPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMemberus-gaap:FinancialAssetNotPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConstructionLoansMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConstructionLoansMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMemberus-gaap:ConstructionLoansMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancialAssetNotPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberinbk:SingleTenantLeaseMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberinbk:SingleTenantLeaseMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SingleTenantLeaseMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMemberinbk:SingleTenantLeaseMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMemberinbk:SingleTenantLeaseMember2024-06-300001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-06-300001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-06-300001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-06-300001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2024-06-300001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:HealthcareFinanceMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberinbk:HealthcareFinanceMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:HealthcareFinanceMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMemberinbk:HealthcareFinanceMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:HealthcareFinanceMemberus-gaap:FinancialAssetNotPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberinbk:SmallBusinessLendingMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMemberinbk:SmallBusinessLendingMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMemberus-gaap:FinancialAssetNotPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberinbk:FranchiseFinanceMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberinbk:FranchiseFinanceMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:FranchiseFinanceMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMemberinbk:FranchiseFinanceMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMemberinbk:FranchiseFinanceMember2024-06-300001562463us-gaap:ResidentialMortgageMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-06-300001562463us-gaap:ResidentialMortgageMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2024-06-300001562463us-gaap:ResidentialMortgageMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-06-300001562463us-gaap:ResidentialMortgageMemberus-gaap:FinancialAssetPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2024-06-300001562463us-gaap:ResidentialMortgageMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2024-06-300001562463us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:HomeEquityLoanMember2024-06-300001562463us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2024-06-300001562463us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:HomeEquityLoanMember2024-06-300001562463us-gaap:FinancialAssetPastDueMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2024-06-300001562463us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMemberus-gaap:HomeEquityLoanMember2024-06-300001562463inbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-06-300001562463us-gaap:FinancingReceivables60To89DaysPastDueMemberinbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMember2024-06-300001562463inbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-06-300001562463inbk:OtherConsumerLoansMemberus-gaap:FinancialAssetPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2024-06-300001562463inbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2024-06-300001562463us-gaap:FinancingReceivables30To59DaysPastDueMember2024-06-300001562463us-gaap:FinancingReceivables60To89DaysPastDueMember2024-06-300001562463us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-06-300001562463us-gaap:FinancialAssetPastDueMember2024-06-300001562463us-gaap:FinancialAssetNotPastDueMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancialAssetPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberinbk:OwnerOccupiedCommercialRealEstateMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberinbk:OwnerOccupiedCommercialRealEstateMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:OwnerOccupiedCommercialRealEstateMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMemberinbk:OwnerOccupiedCommercialRealEstateMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:OwnerOccupiedCommercialRealEstateMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMemberus-gaap:FinancialAssetPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConstructionLoansMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConstructionLoansMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMemberus-gaap:ConstructionLoansMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberinbk:SingleTenantLeaseMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberinbk:SingleTenantLeaseMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SingleTenantLeaseMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMemberinbk:SingleTenantLeaseMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMemberinbk:SingleTenantLeaseMember2023-12-310001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2023-12-310001562463inbk:PublicFinanceMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:HealthcareFinanceMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberinbk:HealthcareFinanceMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:HealthcareFinanceMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMemberinbk:HealthcareFinanceMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:HealthcareFinanceMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberinbk:SmallBusinessLendingMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMemberinbk:SmallBusinessLendingMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberinbk:FranchiseFinanceMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberinbk:FranchiseFinanceMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:FranchiseFinanceMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMemberinbk:FranchiseFinanceMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMemberinbk:FranchiseFinanceMember2023-12-310001562463us-gaap:ResidentialMortgageMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001562463us-gaap:ResidentialMortgageMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001562463us-gaap:ResidentialMortgageMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001562463us-gaap:ResidentialMortgageMemberus-gaap:FinancialAssetPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001562463us-gaap:ResidentialMortgageMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310001562463us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:HomeEquityLoanMember2023-12-310001562463us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2023-12-310001562463us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:HomeEquityLoanMember2023-12-310001562463us-gaap:FinancialAssetPastDueMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2023-12-310001562463us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMemberus-gaap:HomeEquityLoanMember2023-12-310001562463inbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001562463us-gaap:FinancingReceivables60To89DaysPastDueMemberinbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001562463inbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001562463inbk:OtherConsumerLoansMemberus-gaap:FinancialAssetPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001562463inbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310001562463us-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001562463us-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001562463us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001562463us-gaap:FinancialAssetPastDueMember2023-12-310001562463us-gaap:FinancialAssetNotPastDueMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMemberus-gaap:NonperformingFinancingReceivableMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberinbk:SmallBusinessLendingMemberus-gaap:NonperformingFinancingReceivableMember2023-12-310001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:NonperformingFinancingReceivableMemberinbk:FranchiseFinanceMember2024-06-300001562463us-gaap:CommercialPortfolioSegmentMemberus-gaap:NonperformingFinancingReceivableMemberinbk:FranchiseFinanceMember2023-12-310001562463us-gaap:ResidentialMortgageMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:NonperformingFinancingReceivableMember2024-06-300001562463us-gaap:ResidentialMortgageMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:NonperformingFinancingReceivableMember2023-12-310001562463inbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:NonperformingFinancingReceivableMember2024-06-300001562463inbk:OtherConsumerLoansMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:NonperformingFinancingReceivableMember2023-12-310001562463us-gaap:ConsumerPortfolioSegmentMemberus-gaap:NonperformingFinancingReceivableMember2024-06-300001562463us-gaap:ConsumerPortfolioSegmentMemberus-gaap:NonperformingFinancingReceivableMember2023-12-310001562463inbk:CommercialRealEstate1Memberinbk:OwnerOccupiedCommercialRealEstateMember2024-06-300001562463inbk:ResidentialRealEstate1Memberinbk:OwnerOccupiedCommercialRealEstateMember2024-06-300001562463inbk:OtherRealEstateMemberinbk:OwnerOccupiedCommercialRealEstateMember2024-06-300001562463us-gaap:CollateralPledgedMemberinbk:OwnerOccupiedCommercialRealEstateMember2024-06-300001562463inbk:CommercialRealEstate1Memberinbk:SmallBusinessLendingMember2024-06-300001562463inbk:ResidentialRealEstate1Memberinbk:SmallBusinessLendingMember2024-06-300001562463inbk:OtherRealEstateMemberinbk:SmallBusinessLendingMember2024-06-300001562463us-gaap:CollateralPledgedMemberinbk:SmallBusinessLendingMember2024-06-300001562463us-gaap:ResidentialMortgageMemberinbk:CommercialRealEstate1Member2024-06-300001562463inbk:ResidentialRealEstate1Memberus-gaap:ResidentialMortgageMember2024-06-300001562463us-gaap:ResidentialMortgageMemberinbk:OtherRealEstateMember2024-06-300001562463us-gaap:ResidentialMortgageMemberus-gaap:CollateralPledgedMember2024-06-300001562463inbk:CommercialRealEstate1Memberinbk:OtherConsumerLoansMember2024-06-300001562463inbk:ResidentialRealEstate1Memberinbk:OtherConsumerLoansMember2024-06-300001562463inbk:OtherConsumerLoansMemberinbk:OtherRealEstateMember2024-06-300001562463inbk:OtherConsumerLoansMemberus-gaap:CollateralPledgedMember2024-06-300001562463inbk:CommercialRealEstate1Member2024-06-300001562463inbk:ResidentialRealEstate1Member2024-06-300001562463inbk:OtherRealEstateMember2024-06-300001562463us-gaap:CollateralPledgedMember2024-06-300001562463inbk:CommercialRealEstate1Memberinbk:OwnerOccupiedCommercialRealEstateMember2023-12-310001562463inbk:ResidentialRealEstate1Memberinbk:OwnerOccupiedCommercialRealEstateMember2023-12-310001562463inbk:OtherRealEstateMemberinbk:OwnerOccupiedCommercialRealEstateMember2023-12-310001562463us-gaap:CollateralPledgedMemberinbk:OwnerOccupiedCommercialRealEstateMember2023-12-310001562463inbk:CommercialRealEstate1Memberinbk:SmallBusinessLendingMember2023-12-310001562463inbk:ResidentialRealEstate1Memberinbk:SmallBusinessLendingMember2023-12-310001562463inbk:OtherRealEstateMemberinbk:SmallBusinessLendingMember2023-12-310001562463us-gaap:CollateralPledgedMemberinbk:SmallBusinessLendingMember2023-12-310001562463us-gaap:ResidentialMortgageMemberinbk:CommercialRealEstate1Member2023-12-310001562463inbk:ResidentialRealEstate1Memberus-gaap:ResidentialMortgageMember2023-12-310001562463us-gaap:ResidentialMortgageMemberinbk:OtherRealEstateMember2023-12-310001562463us-gaap:ResidentialMortgageMemberus-gaap:CollateralPledgedMember2023-12-310001562463inbk:CommercialRealEstate1Memberinbk:OtherConsumerLoansMember2023-12-310001562463inbk:ResidentialRealEstate1Memberinbk:OtherConsumerLoansMember2023-12-310001562463inbk:OtherConsumerLoansMemberinbk:OtherRealEstateMember2023-12-310001562463inbk:OtherConsumerLoansMemberus-gaap:CollateralPledgedMember2023-12-310001562463inbk:CommercialRealEstate1Member2023-12-310001562463inbk:ResidentialRealEstate1Member2023-12-310001562463inbk:OtherRealEstateMember2023-12-310001562463us-gaap:CollateralPledgedMember2023-12-310001562463us-gaap:LandMember2024-06-300001562463us-gaap:LandMember2023-12-310001562463us-gaap:ConstructionInProgressMember2024-06-300001562463us-gaap:ConstructionInProgressMember2023-12-310001562463inbk:RightOfUseLeasedAssetMember2024-06-300001562463inbk:RightOfUseLeasedAssetMember2023-12-310001562463us-gaap:BuildingImprovementsMember2024-06-300001562463us-gaap:BuildingImprovementsMember2023-12-310001562463us-gaap:FurnitureAndFixturesMember2024-06-300001562463us-gaap:FurnitureAndFixturesMember2023-12-310001562463inbk:LoanServicingMemberinbk:SBAGuaranteedLoansMember2024-06-300001562463inbk:LoanServicingMemberinbk:SBAGuaranteedLoansMember2023-12-310001562463inbk:LoanServicingMember2024-06-300001562463inbk:LoanServicingMember2023-12-310001562463us-gaap:SubordinatedDebtMemberinbk:A6PercentFixedToFloatingRateSubordinatedNotesDue2029Member2019-06-300001562463us-gaap:SubordinatedDebtMemberinbk:LondonInterbankOfferedRateLIBOR1Memberinbk:A6PercentFixedToFloatingRateSubordinatedNotesDue2029Member2019-06-012019-06-300001562463inbk:A60TermNoteDue2030Memberus-gaap:SubordinatedDebtMember2020-10-310001562463inbk:A60TermNoteDue2030Memberus-gaap:SecuredOvernightFinancingRateSofrMemberus-gaap:SubordinatedDebtMember2020-10-012020-10-310001562463inbk:A375NotesDue2031Memberus-gaap:SubordinatedDebtMember2021-08-310001562463us-gaap:SecuredOvernightFinancingRateSofrMemberinbk:A375NotesDue2031Memberus-gaap:SubordinatedDebtMember2021-08-012021-08-310001562463inbk:Unregistered2031NotesMemberus-gaap:SubordinatedDebtMember2021-12-300001562463inbk:A6.4375PercentNotesDue2025Memberus-gaap:SubordinatedDebtMember2024-06-300001562463inbk:A6.4375PercentNotesDue2025Memberus-gaap:SubordinatedDebtMember2023-12-310001562463inbk:A6PercentNotesDue2021Memberus-gaap:SubordinatedDebtMember2024-06-300001562463inbk:A6PercentNotesDue2021Memberus-gaap:SubordinatedDebtMember2023-12-310001562463us-gaap:SubordinatedDebtMemberinbk:A6PercentFixedToFloatingRateSubordinatedNotesDue2029Member2024-06-300001562463us-gaap:SubordinatedDebtMemberinbk:A6PercentFixedToFloatingRateSubordinatedNotesDue2029Member2023-12-310001562463us-gaap:SubordinatedDebtMember2024-06-300001562463us-gaap:SubordinatedDebtMember2023-12-310001562463inbk:Plan2022Member2022-05-160001562463inbk:Plan2022Member2024-04-012024-06-300001562463inbk:Plan2022Member2024-01-012024-06-300001562463inbk:Plan2022Member2023-01-012023-06-300001562463inbk:Plan2022Member2023-04-012023-06-300001562463inbk:Plan2022Memberus-gaap:RestrictedStockUnitsRSUMember2023-12-310001562463inbk:Plan2022Memberus-gaap:RestrictedStockMember2023-12-310001562463inbk:Plan2022Memberinbk:DeferredStockUnitsMember2023-12-310001562463inbk:Plan2022Memberus-gaap:RestrictedStockUnitsRSUMember2024-01-012024-06-300001562463inbk:Plan2022Memberus-gaap:RestrictedStockMember2024-01-012024-06-300001562463inbk:Plan2022Memberinbk:DeferredStockUnitsMember2024-01-012024-06-300001562463inbk:Plan2022Memberus-gaap:RestrictedStockUnitsRSUMember2024-06-300001562463inbk:Plan2022Memberus-gaap:RestrictedStockMember2024-06-300001562463inbk:Plan2022Memberinbk:DeferredStockUnitsMember2024-06-300001562463inbk:Plan2013Member2024-06-300001562463inbk:Plan2013Memberus-gaap:CommonStockMemberinbk:VotingAndNonVotingCommonStockMember2024-04-012024-06-300001562463inbk:Plan2013Memberus-gaap:CommonStockMemberinbk:VotingAndNonVotingCommonStockMember2024-01-012024-06-300001562463inbk:Plan2013Memberus-gaap:CommonStockMemberinbk:VotingAndNonVotingCommonStockMember2023-04-012023-06-300001562463inbk:Plan2013Memberus-gaap:CommonStockMemberinbk:VotingAndNonVotingCommonStockMember2023-01-012023-06-300001562463inbk:Plan2013Memberus-gaap:RestrictedStockUnitsRSUMember2023-12-310001562463inbk:Plan2013Memberus-gaap:RestrictedStockMember2023-12-310001562463inbk:Plan2013Memberinbk:DeferredStockUnitsMember2023-12-310001562463inbk:Plan2013Memberus-gaap:RestrictedStockUnitsRSUMember2024-01-012024-06-300001562463inbk:Plan2013Memberus-gaap:RestrictedStockMember2024-01-012024-06-300001562463inbk:Plan2013Memberinbk:DeferredStockUnitsMember2024-01-012024-06-300001562463inbk:Plan2013Memberus-gaap:RestrictedStockUnitsRSUMember2024-06-300001562463inbk:Plan2013Memberus-gaap:RestrictedStockMember2024-06-300001562463inbk:Plan2013Memberinbk:DeferredStockUnitsMember2024-06-300001562463srt:DirectorMember2024-01-012024-06-300001562463us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2024-06-300001562463us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2024-06-300001562463us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2024-06-300001562463us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel1Member2024-06-300001562463us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel2Member2024-06-300001562463us-gaap:FairValueInputsLevel3Memberus-gaap:MunicipalBondsMember2024-06-300001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel1Member2024-06-300001562463us-gaap:FairValueInputsLevel3Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2024-06-300001562463us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2024-06-300001562463us-gaap:FairValueInputsLevel3Memberus-gaap:CommercialMortgageBackedSecuritiesMember2024-06-300001562463us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueInputsLevel1Member2024-06-300001562463us-gaap:FairValueInputsLevel3Memberus-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2024-06-300001562463us-gaap:FairValueInputsLevel1Memberus-gaap:AssetBackedSecuritiesMember2024-06-300001562463us-gaap:FairValueInputsLevel3Memberus-gaap:AssetBackedSecuritiesMember2024-06-300001562463us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMember2024-06-300001562463us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2024-06-300001562463us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMember2024-06-300001562463us-gaap:FairValueInputsLevel1Member2024-06-300001562463us-gaap:FairValueInputsLevel2Member2024-06-300001562463us-gaap:FairValueInputsLevel3Member2024-06-300001562463us-gaap:InterestRateSwapMember2024-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel1Member2024-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Member2024-06-300001562463us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMember2024-06-300001562463inbk:InterestRateSwapBackToBackMember2024-06-300001562463us-gaap:FairValueInputsLevel1Memberinbk:InterestRateSwapBackToBackMember2024-06-300001562463us-gaap:FairValueInputsLevel2Memberinbk:InterestRateSwapBackToBackMember2024-06-300001562463us-gaap:FairValueInputsLevel3Memberinbk:InterestRateSwapBackToBackMember2024-06-300001562463us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2023-12-310001562463us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2023-12-310001562463us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2023-12-310001562463us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel1Member2023-12-310001562463us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel2Member2023-12-310001562463us-gaap:FairValueInputsLevel3Memberus-gaap:MunicipalBondsMember2023-12-310001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel1Member2023-12-310001562463us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel2Member2023-12-310001562463us-gaap:FairValueInputsLevel3Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2023-12-310001562463us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-12-310001562463us-gaap:FairValueInputsLevel3Memberus-gaap:CommercialMortgageBackedSecuritiesMember2023-12-310001562463us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueInputsLevel1Member2023-12-310001562463us-gaap:FairValueInputsLevel3Memberus-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2023-12-310001562463us-gaap:FairValueInputsLevel1Memberus-gaap:AssetBackedSecuritiesMember2023-12-310001562463us-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMember2023-12-310001562463us-gaap:FairValueInputsLevel3Memberus-gaap:AssetBackedSecuritiesMember2023-12-310001562463us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMember2023-12-310001562463us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2023-12-310001562463us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMember2023-12-310001562463us-gaap:FairValueInputsLevel1Member2023-12-310001562463us-gaap:FairValueInputsLevel2Member2023-12-310001562463us-gaap:FairValueInputsLevel3Member2023-12-310001562463us-gaap:InterestRateSwapMember2023-12-310001562463us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel1Member2023-12-310001562463us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Member2023-12-310001562463us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMember2023-12-310001562463inbk:InterestRateSwapBackToBackMember2023-12-310001562463us-gaap:FairValueInputsLevel1Memberinbk:InterestRateSwapBackToBackMember2023-12-310001562463us-gaap:FairValueInputsLevel2Memberinbk:InterestRateSwapBackToBackMember2023-12-310001562463us-gaap:FairValueInputsLevel3Memberinbk:InterestRateSwapBackToBackMember2023-12-310001562463inbk:ServicingAssetMember2024-03-310001562463us-gaap:InterestRateLockCommitmentsMember2024-03-310001562463inbk:ServicingAssetMember2024-04-012024-06-300001562463us-gaap:InterestRateLockCommitmentsMember2024-04-012024-06-300001562463inbk:ServicingAssetMember2024-06-300001562463us-gaap:InterestRateLockCommitmentsMember2024-06-300001562463inbk:ServicingAssetMember2023-03-310001562463us-gaap:InterestRateLockCommitmentsMember2023-03-310001562463inbk:ServicingAssetMember2023-04-012023-06-300001562463us-gaap:InterestRateLockCommitmentsMember2023-04-012023-06-300001562463inbk:ServicingAssetMember2023-06-300001562463us-gaap:InterestRateLockCommitmentsMember2023-06-300001562463inbk:ServicingAssetMember2023-12-310001562463us-gaap:InterestRateLockCommitmentsMember2023-12-310001562463inbk:ServicingAssetMember2024-01-012024-06-300001562463us-gaap:InterestRateLockCommitmentsMember2024-01-012024-06-300001562463inbk:ServicingAssetMember2022-12-310001562463us-gaap:InterestRateLockCommitmentsMember2022-12-310001562463inbk:ServicingAssetMember2023-01-012023-06-300001562463us-gaap:InterestRateLockCommitmentsMember2023-01-012023-06-300001562463us-gaap:FairValueInputsLevel3Memberinbk:ImpairedLoansMember2024-06-300001562463us-gaap:FairValueInputsLevel3Memberinbk:ImpairedLoansMember2023-12-310001562463inbk:ImpairedLoansMemberus-gaap:FairValueInputsLevel3Memberinbk:MeasurementInputDiscountForTypeOfPropertyAndCurrentMarketConditionsMembersrt:MinimumMemberinbk:ValuationTechniqueFairValueOfCollateralMember2024-06-300001562463inbk:ImpairedLoansMemberus-gaap:FairValueInputsLevel3Memberinbk:MeasurementInputDiscountForTypeOfPropertyAndCurrentMarketConditionsMembersrt:MaximumMemberinbk:ValuationTechniqueFairValueOfCollateralMember2024-06-300001562463inbk:ImpairedLoansMemberus-gaap:FairValueInputsLevel3Memberinbk:MeasurementInputDiscountForTypeOfPropertyAndCurrentMarketConditionsMembersrt:WeightedAverageMemberinbk:ValuationTechniqueFairValueOfCollateralMember2024-06-300001562463us-gaap:FairValueInputsLevel3Memberinbk:ServicingAssetMember2024-06-300001562463us-gaap:FairValueInputsLevel3Membersrt:MinimumMemberinbk:ServicingAssetMemberus-gaap:MeasurementInputPrepaymentRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-01-012024-06-300001562463us-gaap:FairValueInputsLevel3Membersrt:MaximumMemberinbk:ServicingAssetMemberus-gaap:MeasurementInputPrepaymentRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-01-012024-06-300001562463us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDiscountRateMemberinbk:ServicingAssetMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-01-012024-06-300001562463us-gaap:FairValueInputsLevel3Membersrt:WeightedAverageMemberinbk:ServicingAssetMemberus-gaap:MeasurementInputPrepaymentRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-01-012024-06-300001562463us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDiscountRateMembersrt:WeightedAverageMemberinbk:ServicingAssetMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-01-012024-06-300001562463inbk:ImpairedLoansMemberus-gaap:FairValueInputsLevel3Memberinbk:MeasurementInputDiscountForTypeOfPropertyAndCurrentMarketConditionsMembersrt:MinimumMemberinbk:ValuationTechniqueFairValueOfCollateralMember2023-12-310001562463inbk:ImpairedLoansMemberus-gaap:FairValueInputsLevel3Memberinbk:MeasurementInputDiscountForTypeOfPropertyAndCurrentMarketConditionsMembersrt:MaximumMemberinbk:ValuationTechniqueFairValueOfCollateralMember2023-12-310001562463inbk:ImpairedLoansMemberus-gaap:FairValueInputsLevel3Memberinbk:MeasurementInputDiscountForTypeOfPropertyAndCurrentMarketConditionsMembersrt:WeightedAverageMemberinbk:ValuationTechniqueFairValueOfCollateralMember2023-12-310001562463us-gaap:FairValueInputsLevel3Memberinbk:ServicingAssetMember2023-12-310001562463us-gaap:FairValueInputsLevel3Membersrt:MinimumMemberinbk:ServicingAssetMemberus-gaap:MeasurementInputPrepaymentRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-01-012023-12-310001562463us-gaap:FairValueInputsLevel3Membersrt:MaximumMemberinbk:ServicingAssetMemberus-gaap:MeasurementInputPrepaymentRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-01-012023-12-310001562463us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDiscountRateMemberinbk:ServicingAssetMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-01-012023-12-310001562463us-gaap:FairValueInputsLevel3Membersrt:WeightedAverageMemberinbk:ServicingAssetMemberus-gaap:MeasurementInputPrepaymentRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-01-012023-12-310001562463us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDiscountRateMembersrt:WeightedAverageMemberinbk:ServicingAssetMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-01-012023-12-310001562463us-gaap:DesignatedAsHedgingInstrumentMember2024-06-300001562463us-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001562463us-gaap:DesignatedAsHedgingInstrumentMember2024-01-012024-06-300001562463us-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-12-310001562463us-gaap:AvailableforsaleSecuritiesMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300001562463us-gaap:AvailableforsaleSecuritiesMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-01-012024-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-01-012024-06-300001562463us-gaap:AvailableforsaleSecuritiesMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001562463us-gaap:AvailableforsaleSecuritiesMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-12-310001562463us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001562463us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-12-310001562463us-gaap:AvailableforsaleSecuritiesMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-03-012021-03-310001562463us-gaap:AvailableforsaleSecuritiesMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-04-012023-06-300001562463us-gaap:AvailableforsaleSecuritiesMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-06-300001562463us-gaap:AvailableforsaleSecuritiesMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-04-012024-06-3000015624632020-06-012020-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:LoansMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-01-012024-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:LoansMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-04-012024-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:LoansMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-04-012023-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:LoansMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-06-300001562463us-gaap:InterestRateSwapMemberinbk:A3MonthLIBORMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300001562463us-gaap:InterestRateSwapMemberinbk:A3MonthLIBORMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-01-012024-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:FederalFundsEffectiveSwapRateMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300001562463us-gaap:InterestRateSwapMemberinbk:A3MonthLIBORMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001562463us-gaap:InterestRateSwapMemberinbk:A3MonthLIBORMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-12-310001562463us-gaap:InterestRateSwapMemberus-gaap:FederalFundsEffectiveSwapRateMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001562463us-gaap:InterestRateSwapMemberus-gaap:FederalFundsEffectiveSwapRateMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-12-310001562463us-gaap:InterestRateSwapMemberus-gaap:LoansMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:LoansMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001562463inbk:BackToBackSwapsMemberus-gaap:NondesignatedMember2024-06-300001562463inbk:BackToBackSwapsMemberus-gaap:NondesignatedMember2023-12-310001562463us-gaap:InterestRateSwapMember2024-04-012024-06-300001562463us-gaap:InterestRateSwapMember2023-04-012023-06-300001562463us-gaap:InterestRateSwapMember2024-01-012024-06-300001562463us-gaap:InterestRateSwapMember2023-01-012023-06-300001562463us-gaap:DerivativeFinancialInstrumentsLiabilitiesMemberus-gaap:InterestRateLockCommitmentsMember2024-04-012024-06-300001562463us-gaap:DerivativeFinancialInstrumentsLiabilitiesMemberus-gaap:InterestRateLockCommitmentsMember2023-04-012023-06-300001562463us-gaap:DerivativeFinancialInstrumentsLiabilitiesMemberus-gaap:InterestRateLockCommitmentsMember2024-01-012024-06-300001562463us-gaap:DerivativeFinancialInstrumentsLiabilitiesMemberus-gaap:InterestRateLockCommitmentsMember2023-01-012023-06-300001562463us-gaap:DerivativeFinancialInstrumentsLiabilitiesMemberus-gaap:ForwardContractsMember2024-04-012024-06-300001562463us-gaap:DerivativeFinancialInstrumentsLiabilitiesMemberus-gaap:ForwardContractsMember2023-04-012023-06-300001562463us-gaap:DerivativeFinancialInstrumentsLiabilitiesMemberus-gaap:ForwardContractsMember2024-01-012024-06-300001562463us-gaap:DerivativeFinancialInstrumentsLiabilitiesMemberus-gaap:ForwardContractsMember2023-01-012023-06-300001562463us-gaap:InterestRateSwapMemberinbk:SecuritiesNonTaxableMember2024-04-012024-06-300001562463us-gaap:InterestRateSwapMemberinbk:SecuritiesNonTaxableMember2023-04-012023-06-300001562463us-gaap:InterestRateSwapMemberinbk:SecuritiesNonTaxableMember2024-01-012024-06-300001562463us-gaap:InterestRateSwapMemberinbk:SecuritiesNonTaxableMember2023-01-012023-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:InterestIncomeMember2024-04-012024-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:InterestIncomeMember2023-04-012023-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:InterestIncomeMember2024-01-012024-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:InterestIncomeMember2023-01-012023-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:DepositsMember2024-04-012024-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:DepositsMember2023-04-012023-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:DepositsMember2024-01-012024-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:DepositsMember2023-01-012023-06-300001562463us-gaap:InterestRateSwapMemberinbk:OtherBorrowedFundsMember2024-04-012024-06-300001562463us-gaap:InterestRateSwapMemberinbk:OtherBorrowedFundsMember2023-04-012023-06-300001562463us-gaap:InterestRateSwapMemberinbk:OtherBorrowedFundsMember2024-01-012024-06-300001562463us-gaap:InterestRateSwapMemberinbk:OtherBorrowedFundsMember2023-01-012023-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2024-04-012024-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2023-04-012023-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2024-01-012024-06-300001562463us-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2023-01-012023-06-300001562463us-gaap:InterestRateSwapMemberinbk:InterestIncomeNetMember2024-04-012024-06-300001562463us-gaap:InterestRateSwapMemberinbk:InterestIncomeNetMember2023-04-012023-06-300001562463us-gaap:InterestRateSwapMemberinbk:InterestIncomeNetMember2024-01-012024-06-300001562463us-gaap:InterestRateSwapMemberinbk:InterestIncomeNetMember2023-01-012023-06-300001562463us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-12-310001562463inbk:AOCIAccumulatedGainLossDebtSecuritiesHeldToMaturityParentMember2023-12-310001562463us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-12-310001562463inbk:AOCIAccumulatedGainLossDebtSecuritiesHeldToMaturityParentMember2024-01-012024-06-300001562463us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-012024-06-300001562463us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-06-300001562463inbk:AOCIAccumulatedGainLossDebtSecuritiesHeldToMaturityParentMember2024-06-300001562463us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-06-300001562463us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-12-310001562463inbk:AOCIAccumulatedGainLossDebtSecuritiesHeldToMaturityParentMember2022-12-310001562463us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-12-310001562463inbk:AOCIAccumulatedGainLossDebtSecuritiesHeldToMaturityParentMember2023-01-012023-06-300001562463us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-06-300001562463us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-06-300001562463inbk:AOCIAccumulatedGainLossDebtSecuritiesHeldToMaturityParentMember2023-06-300001562463us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-06-300001562463us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-03-310001562463inbk:AOCIAccumulatedGainLossDebtSecuritiesHeldToMaturityParentMember2024-03-310001562463us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-03-310001562463inbk:AOCIAccumulatedGainLossDebtSecuritiesHeldToMaturityParentMember2024-04-012024-06-300001562463us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-04-012024-06-300001562463us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-03-310001562463inbk:AOCIAccumulatedGainLossDebtSecuritiesHeldToMaturityParentMember2023-03-310001562463us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-03-310001562463inbk:AOCIAccumulatedGainLossDebtSecuritiesHeldToMaturityParentMember2023-04-012023-06-300001562463us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-04-012023-06-30

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 June 30, 2024
OR
☐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 classTrading SymbolsName of each exchange on which registered
Common Stock, without par valueINBKThe Nasdaq Stock Market LLC
6.0% Fixed to Floating Subordinated Notes due 2029INBKZThe 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 August 2, 2024, the registrant had 8,667,894 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 “acquire”, “anticipate,” “attempt,” “believe,” “can,” “change,” “continue,” “could,” “decline,” “decrease,” “differentiate,” “diversify,” “driving,” “effort,” “emerging,” “estimate,” “expect,” “grow,” “increase,” “intend,” “likely,” “may,” “objective,” “plan,” “position,” “potential,” “preliminary,” “pursue,” “remain,” “retain,” “should,” “slowest,” “succeed,” “will,” “win,” “would” or other similar expressions. Such statements are subject to certain risks and uncertainties, including without limitation: 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; changes in bank regulatory conditions, policies or programs, whether arising as a result of new legislation or regulatory initiatives, that could lead to restrictions on activities of banks generally or First Internet Bank (the “Bank”) in particular; changes in the enforcement and interpretation of applicable laws and regulations by governmental and self-regulatory agencies, which could require us to change certain business practices, increase compliance risk, reduce our revenue, impose additional costs on us, or otherwise negatively affect our businesses; more restrictive regulatory capital requirements; increased costs, including deposit insurance premiums; increased regulatory scrutiny resulting from bank failures; risks related to potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation, regulatory proceedings or enforcement actions; the risk that we may be required to make substantial expenditures to keep pace with regulatory initiatives and the rapid technology changes in the financial services market; other 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; our credit quality and related levels of nonperforming assets and credit losses, and the value and salability of the real estate that is the 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 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; regulation or prohibition of certain income producing activities or changes in the secondary market for loans and other products; 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; 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 other 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.
i

PART I

ITEM 1.    FINANCIAL STATEMENTS 

First Internet Bancorp
Condensed Consolidated Balance Sheets
(Amounts in thousands except share data)
 June 30, 2024December 31, 2023
 (Unaudited) 
Assets  
Cash and due from banks$6,162 $8,269 
Interest-bearing deposits390,624 397,629 
Total cash and cash equivalents396,786 405,898 
Securities available-for-sale, at fair value (amortized cost of $529,657 and $513,315 in 2024 and 2023, respectively)
488,572 474,855 
Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $0.2 million and $0.3 million in 2024 and 2023, respectively, (fair value of $247,430 and $207,572 in 2024 and 2023, respectively)
270,349 227,153 
Loans held-for-sale19,384 22,052 
Loans3,961,146 3,840,220 
Allowance for credit losses - loans(43,405)(38,774)
Net loans3,917,741 3,801,446 
Accrued interest receivable28,118 26,746 
Federal Home Loan Bank of Indianapolis stock28,350 28,350 
Cash surrender value of bank-owned life insurance40,834 40,882 
Premises and equipment, net72,516 73,463 
Goodwill4,687 4,687 
Servicing asset, at fair value13,009 10,567 
Other real estate owned— 375 
Accrued income and other assets62,956 51,098 
Total assets$5,343,302 $5,167,572 
Liabilities and Shareholders’ Equity  
Liabilities  
Noninterest-bearing deposits$126,438 $123,464 
Interest-bearing deposits4,147,484 3,943,509 
Total deposits4,273,922 4,066,973 
Advances from Federal Home Loan Bank575,000 614,934 
Subordinated debt, net of unamortized debt issuance costs of $2,007 and $2,162 in 2024 and 2023, respectively
104,993 104,838 
Accrued interest payable3,419 3,848 
Accrued expenses and other liabilities14,015 14,184 
Total liabilities4,971,349 4,804,777 
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; 8,667,894 and 8,644,451 shares issued and outstanding in 2024 and 2023, respectively
185,175 184,700 
Nonvoting common stock, no par value; 86,221 shares authorized; issued and outstanding - none
— — 
Retained earnings217,365 207,470 
Accumulated other comprehensive loss(30,587)(29,375)
Total shareholders’ equity371,953 362,795 
Total liabilities and shareholders’ equity$5,343,302 $5,167,572 

See Notes to Condensed Consolidated Financial Statements
1

First Internet Bancorp
Condensed Consolidated Statements of Income – Unaudited
(Amounts in thousands except share and per share data)
 Three Months EndedSix Months Ended
 June 30, 2024June 30, 2023June 30, 2024June 30, 2023
Interest Income   
Loans$57,094 $46,906 $112,529 $90,749 
Securities – taxable6,476 3,835 12,170 7,441 
Securities – non-taxable970 860 1,939 1,658 
Other earning assets6,421 6,521 12,488 10,307 
Total interest income70,961 58,122 139,126 110,155 
Interest Expense   
Deposits44,495 34,676 86,624 61,946 
Other borrowed funds5,139 5,301 10,441 10,490 
Total interest expense49,634 39,977 97,065 72,436 
Net Interest Income21,327 18,145 42,061 37,719 
Provision for credit losses - loans3,920 753 6,502 10,126 
Benefit for credit losses - debt securities held to maturity(2)— (64)— 
Provision for credit losses - off-balance sheet commitments113 945 41 987 
Net Interest Income After Provision for Credit Losses17,296 16,447 35,582 26,606 
Noninterest Income   
Service charges and fees246 218 466 427 
Loan servicing revenue1,470 850 2,793 1,635 
Loan servicing asset revaluation(829)(358)(1,263)(413)
Mortgage banking activities— — — 76 
Gain on sale of loans8,292 4,868 14,828 8,929 
Other1,854 293 2,556 663 
Total noninterest income11,033 5,871 19,380 11,317 
Noninterest Expense   
Salaries and employee benefits12,462 10,706 24,258 22,500 
Marketing, advertising and promotion609 705 1,345 1,549 
Consulting and professional services1,022 711 1,875 1,637 
Data processing606 520 1,170 1,179 
Loan expenses1,597 1,072 3,042 3,049 
Premises and equipment3,154 2,661 5,980 5,438 
Deposit insurance premium1,172 936 2,317 1,479 
Other1,714 1,359 3,372 2,793 
Total noninterest expense22,336 18,670 43,359 39,624 
Income (Loss) Before Income Taxes5,993 3,648 11,603 (1,701)
Income Tax Provision (Benefit)218 (234)647 (2,566)
Net Income $5,775 $3,882 $10,956 $865 
Income Per Share of Common Stock   
Basic$0.67 $0.44 $1.26 $0.10 
Diluted$0.67 $0.44 $1.25 $0.10 
Weighted-Average Number of Common Shares Outstanding   
Basic8,594,315 8,903,213 8,684,093 8,963,308 
Diluted8,656,215 8,908,180 8,750,017 8,980,262 
Dividends Declared Per Share$0.06 $0.06 $0.12 $0.12 

See Notes to Condensed Consolidated Financial Statements
2

First Internet Bancorp
Condensed Consolidated Statements of Comprehensive Income – Unaudited
(Amounts in thousands)
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Net income $5,775 $3,882 $10,956 $865 
Other comprehensive (loss) income
Securities available-for-sale
Net unrealized holding (losses) gains recorded within other comprehensive (loss) income before income tax(551)(4,810)(2,625)302 
Income tax (benefit) provision(126)(1,107)(601)63 
Net effect on other comprehensive (loss) income(425)(3,703)(2,024)239 
Securities held-to-maturity
Amortization of net unrealized holding losses on securities transferred from available-for-sale to held-to-maturity188 206 422 364 
Income tax provision 46 49 103 95 
Net effect on other comprehensive income142 157 319 269 
Cash flow hedges
Net unrealized holding (losses) gains on cash flow hedging derivatives recorded within other comprehensive income (loss) before income tax(262)2,094 640 (76)
Income tax (benefit) provision (60)481 147 (18)
Net effect on other comprehensive (loss) income (202)1,613 493 (58)
Total other comprehensive (loss) income(485)(1,933)(1,212)450 
Comprehensive income $5,290 $1,949 $9,744 $1,315 
 
 See Notes to Condensed Consolidated Financial Statements
3

First Internet Bancorp
Condensed Consolidated Statements of Changes in Shareholders’ Equity - Unaudited
Six Months Ended June 30, 2024 and 2023
(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, 2024$184,700 $207,470 $(29,375)$362,795 
Net income— 10,956 — 10,956 
Other comprehensive loss— — (1,212)(1,212)
Dividends declared ($0.12 per share)
— (1,061)— (1,061)
Recognition of the fair value of share-based compensation901 — — 901 
Repurchased shares of common stock (10,500)
(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 units2— — 2 
Common stock redeemed for the net settlement of share-based awards(142)— — (142)
Balance, June 30, 2024$185,175 $217,365 $(30,587)$371,953 
Balance, January 1, 2023$192,935 $205,675 $(33,636)$364,974 
Impact of adoption of new accounting standards 1
— (4,491)— (4,491)
Net income— 865 — 865 
Other comprehensive income— — 450 450 
Dividends declared ($0.12 per share)
— (1,076)— (1,076)
Recognition of the fair value of share-based compensation487 — — 487 
Repurchased shares of common stock (364,691)
(6,774)— — (6,774)
Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units3 — — 3 
Common stock redeemed for the net settlement of share-based awards(106)— — (106)
Balance, June 30, 2023$186,545 $200,973 $(33,186)$354,332 
1 Reflects the impact of adopting Accounting Standards Update (“ASU”) 2016-13.

See Notes to Condensed Consolidated Financial Statements
4

First Internet Bancorp
Condensed Consolidated Statements of Changes in Shareholders’ Equity - Unaudited
Three Months Ended June 30, 2024 and 2023
(Amounts in thousands except per share data)
Voting and
Nonvoting
Common
Stock		Retained
Earnings		Accumulated
Other
Comprehensive
Loss		Total
Shareholders’
Equity
Balance, April 1, 2024184,720 $212,121 $(30,102)$366,739 
Net income— 5,775 — 5,775 
Other comprehensive loss— — (485)(485)
Dividends declared ($0.06 per share)
— (531)— (531)
Recognition of the fair value of share-based compensation458 — — 458 
Excise tax on repurchase of common stock(3)— — (3)
Balance, June 30, 2024$185,175 $217,365 $(30,587)$371,953 
Balance, April 1, 2023$189,202 $197,623 $(31,253)$355,572 
Net income— 3,882 — 3,882 
Other comprehensive loss— — (1,933)(1,933)
Dividends declared ($0.06 per share)
— (532)— (532)
Recognition of the fair value of share-based compensation115 — — 115 
Repurchased shares of common stock (85,000)
(2,745)(2,745)
Excise tax on repurchase of common stock(27)— — (27)
Balance, June 30, 2023$186,545 $200,973 $(33,186)$354,332 


See Notes to Condensed Consolidated Financial Statements


5

First Internet Bancorp
Condensed Consolidated Statements of Cash Flows – Unaudited
(Amounts in thousands)
 Six Months Ended June 30,
 20242023
Operating Activities  
Net income $10,956 $865 
Adjustments to reconcile net income to net cash used in operating activities:  
Depreciation and amortization3,846 2,918 
Increase in cash surrender value of bank-owned life insurance(540)(498)
Provision for credit losses 6,479 11,113 
Share-based compensation expense901 487 
Loans originated for sale(200,500)(170,112)
Proceeds from sale of loans214,291 166,469 
Gain on loans sold(14,828)(9,400)
Gain on sale of other real estate owned(31)— 
Decrease in fair value of loans held-for-sale— 143 
Gain on derivatives1,803 368 
Gain on bank-owned life insurance(149)— 
Loan servicing asset revaluation1,263 413 
Net change in accrued income and other assets(3,370)(4,985)
Net change in accrued expenses and other liabilities(1,305)(2,625)
Net cash provided by (used in) by operating activities18,816 (4,844)
Investing Activities
Net loan activity, excluding purchases(57,851)(37,490)
Proceeds from sale of other real estate owned406 — 
Maturities and calls of securities available-for-sale33,701 25,446 
Purchase of securities available-for-sale(50,947)(14,863)
Maturities and calls of securities held-to-maturity11,418 11,332 
Purchase of securities held-to-maturity(53,977)(49,443)
Purchase of premises and equipment(1,496)(3,132)
Proceeds from bank-owned life insurance737 — 
Loans purchased(64,944)(118,813)
Other investing activities(10,438)(2,094)
Net cash used in investing activities(193,391)(189,057)
Financing Activities
Net increase in deposits206,949 410,951 
Cash dividends paid(1,049)(1,091)
Repurchase of common stock(283)(6,774)
Proceeds from advances from Federal Home Loan Bank320,000 220,000 
Repayment of advances from Federal Home Loan Bank(360,000)(220,000)
Other, net(154)(106)
Net cash provided by financing activities165,463 402,980 
Net (Decrease) Increase in Cash and Cash Equivalents(9,112)209,079 
Cash and Cash Equivalents, Beginning of Period405,898 256,552 
Cash and Cash Equivalents, End of Period$396,786 $465,631 
Supplemental Disclosures
Cash paid during the period for interest97,494 72,013 
Cash paid during the period for taxes378 818 
Loans transferred to other real estate owned— 106 
Cash dividends declared, paid in subsequent period520 526 
Securities purchased during the period, settled in subsequent period— 2,632 


See Notes to Condensed Consolidated Financial Statements
6

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 six months ended June 30, 2024 are not necessarily indicative of the results expected for the year ending December 31, 2024 or any other period. The June 30, 2024 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, 2023.
 
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 determination of the allowance for credit losses, income taxes, valuations and impairments of investment securities and goodwill, as well as fair value measurements of derivatives and loans held-for-sale are highly dependent upon management’s estimates, judgments, and assumptions, 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.


7

Note 2:        Earnings Per Share
 
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 earnings per share computations for the three and six months ended June 30, 2024 and 2023. 
(dollars in thousands, except share and per share data)Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Basic earnings per share  
Net income $5,775 $3,882 $10,956 $865 
Weighted-average common shares8,594,315 8,903,213 8,684,093 8,963,308 
Basic earnings per common share$0.67 $0.44 $1.26 $0.10 
Diluted earnings per share    
Net income $5,775 $3,882 $10,956 $865 
Weighted-average common shares8,594,315 8,903,213 8,684,093 8,963,308 
Dilutive effect of equity compensation61,900 4,967 65,924 16,954 
     Weighted-average common and incremental shares8,656,215 8,908,180 8,750,017 8,980,262 
Diluted earnings per common share 1
$0.67 $0.44 $1.25 $0.10 
1 Potential dilutive common shares are excluded from the computation of diluted EPS in the periods where the effect would be antidilutive. There were no antidilutive shares for both the three and six months ended June 30, 2024. Excluded from the computation of diluted EPS were weighted-average antidilutive shares totaling 79,313 and 35,033 for the three and six months ended June 30, 2023, respectively.
  
8

Note 3:         Securities
 
The following tables summarize securities AFS and securities HTM as of June 30, 2024 and December 31, 2023.
June 30, 2024
 AmortizedGross UnrealizedFair
(in thousands)CostGainsLossesValue
Securities available-for-sale    
U.S. Government-sponsored agencies$88,694 $505 $(1,453)$87,746 
Municipal securities68,057 31 (3,676)64,412 
Agency mortgage-backed securities - residential 1
262,758 162 (32,875)230,045 
Agency mortgage-backed securities - commercial37,986 202 (1,297)36,891 
Private label mortgage-backed securities - residential26,709 86 (1,164)25,631 
Asset-backed securities8,383 47 (1)8,429 
Corporate securities37,070 106 (1,758)35,418 
Total available-for-sale$529,657 $1,139 $(42,224)$488,572 

 June 30, 2024
 Amortized CostGross UnrealizedFair ValueAllowance for Credit LossesNet Carrying Value
(in thousands)GainsLosses
Securities held-to-maturity    
Municipal securities$13,371 $— $(1,045)$12,326 $(3)$13,368 
Mortgage-backed securities - residential213,440 15 (18,118)195,337 — 213,440 
Mortgage-backed securities - commercial5,738 — (1,039)4,699 — 5,738 
Corporate securities38,029 — (2,961)35,068 (226)37,803 
Total held-to-maturity$270,578 $15 $(23,163)$247,430 $(229)$270,349 

1 Includes $0.3 million of additional premium related to terminated interest rate swaps associated with agency mortgage-backed securities - residential as of June 30, 2024.

 December 31, 2023
 AmortizedGross UnrealizedFair
(in thousands)CostGainsLossesValue
Securities available-for-sale    
U.S. Government-sponsored agencies$96,404 $402 $(1,629)$95,177 
Municipal securities69,494 356 (1,404)68,446 
Agency mortgage-backed securities - residential 1
237,798 101 (31,250)206,649 
Agency mortgage-backed securities - commercial40,215 9 (1,339)38,885 
Private label mortgage-backed securities - residential21,742 144 (1,107)20,779 
Asset-backed securities
8,071 17 (7)8,081 
Corporate securities39,591 25 (2,778)36,838 
Total available-for-sale$513,315 $1,054 $(39,514)$474,855 

9

 December 31, 2023
 AmortizedGross UnrealizedFairAllowance for Credit LossesNet Carrying Value
(in thousands)CostGainsLossesValue
Securities held-to-maturity    
Municipal securities$13,892 $1 $(853)$13,040 $(3)$13,889 
Agency mortgage-backed securities - residential166,750 4 (14,112)152,642 — $166,750 
Agency mortgage-backed securities - commercial5,767 — (1,246)4,521 — $5,767 
Corporate securities41,037 — (3,668)37,369 (290)$40,747 
Total held-to-maturity$227,446 $5 $(19,879)$207,572 $(293)$227,153 
1 Includes $0.4 million of additional premium related to terminated interest rate swaps associated with agency mortgage-backed securities - residential as of December 31, 2023.

Accrued interest receivable on AFS and HTM securities at June 30, 2024 was $2.8 million and $1.3 million, respectively, compared to $2.9 million and $1.2 million, respectively, at December 31, 2023, 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 both June 30, 2024 and December 31, 2023, over 95% 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.

In accordance with the adoption of ASC 326, 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. As a result, the Company recorded in an initial ACL in retained earnings of $0.3 million on January 1, 2023. The Company reevaluated these securities at June 30, 2024 and determined no additional ACL was necessary.

The carrying value of securities at June 30, 2024 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
(in thousands)Amortized
Cost		Fair
Value
Within one year$10,001 $9,825 
One to five years21,133 21,530 
Five to ten years72,660 70,261 
After ten years90,027 85,960 
 193,821 187,576 
Agency mortgage-backed securities - residential262,758 230,045 
Agency mortgage-backed securities - commercial37,986 36,891 
Private label mortgage-backed securities - residential26,709 25,631 
Asset-backed securities8,383 8,429 
Total$529,657 $488,572 

10

 Held-to-Maturity
(in thousands)Amortized
Cost		Fair
Value
Within one year$1,005 $995 
One to five years12,611 12,029 
Five to ten years34,278 31,345 
After ten years3,506 3,025 
51,400 47,394 
Agency mortgage-backed securities - residential213,440 195,337 
Agency mortgage-backed securities - commercial5,738 4,699 
Total$270,578 $247,430 

There were no gross gains or losses resulting from the sale of available-for-sale securities during the three and six months ended June 30, 2024 and June 30, 2023, respectively.

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 June 30, 2024 and December 31, 2023 was $603.2 million and $578.9 million, which was approximately 82% and 85%, respectively, of the Company’s AFS and HTM securities portfolios. As of June 30, 2024, the Company’s security portfolio consisted of 553 securities, of which 493 were in an unrealized loss position. As of December 31, 2023, the Company’s security portfolio consisted of 512 securities, of which 434 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 likely 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 and Private Label Mortgage-Backed Securities
 
The unrealized losses on the Company’s investments in agency mortgage-backed and private label mortgage-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 likely 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 June 30, 2024 and December 31, 2023.
11

 June 30, 2024
 Less Than 12 Months12 Months or LongerTotal
(in thousands)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
Securities available-for-sale      
U.S. Government-sponsored agencies$22,285 $(97)$19,514 $(1,356)$41,799 $(1,453)
Municipal securities4,452 (195)54,022 (3,481)58,474 (3,676)
Agency mortgage-backed securities- residential27,981 (137)181,940 (32,738)209,921 (32,875)
Agency mortgage-backed securities- commercial— — 13,026 (1,297)13,026 (1,297)
Private label mortgage-backed securities - residential4,924 (32)11,387 (1,132)16,311 (1,164)
     Asset-backed securities1,348 (1)— — 1,348 (1)
Corporate securities4,625 (375)22,650 (1,383)27,275 (1,758)
Total$65,615 $(837)$302,539 $(41,387)$368,154 $(42,224)




 December 31, 2023
 Less Than 12 Months12 Months or LongerTotal
(in thousands)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
Securities available-for-sale      
U.S. Government-sponsored agencies$41,934 $(161)$24,579 $(1,468)$66,513 $(1,629)
Municipal securities2,399 (103)36,193 (1,301)38,592 (1,404)
Agency mortgage-backed securities - residential
1,089 (5)194,095 (31,245)195,184 (31,250)
Agency mortgage-backed securities - commercial21,561 (50)14,217 (1,289)35,778 (1,339)
Private label mortgage-backed securities - residential3,567 (29)9,114 (1,078)12,681 (1,107)
Asset-backed securities
1,654 (7)— — 1,654 (7)
Corporate securities1,680 (365)24,587 (2,413)26,267 (2,778)
Total$73,884 $(720)$302,785 $(38,794)$376,669 $(39,514)



12

The following tables summarize ratings for the Company’s HTM portfolio as of June 30, 2024 and December 31, 2023.

June 30, 2024
Held-to-Maturity
(in thousands)Municipal SecuritiesMortgage-Backed Securities - ResidentialMortgage-Backed Securities - CommercialCorporate SecuritiesTotal
AAA equivalent - agency$— $213,440 $5,738 $— $219,178 
Aa1/AA+9,400 — — — 9,400 
Aa2/AA2,178 — — — 2,178 
A1/A+1,793 — — — 1,793 
A2/A— — — 5,000 5,000 
A3/A-— — — 4,504 4,504 
Baa1/BBB+— — — 8,500 8,500 
Baa2/BBB— — — 8,500 8,500 
Baa3/BBB-— — — 9,525 9,525 
Ba1/BB+— — — 2,000 2,000 
   Total$13,371 $213,440 $5,738 $38,029 $270,578 


December 31, 2023
Held-to-Maturity
(in thousands)Municipal SecuritiesMortgage-Backed Securities - ResidentialMortgage-Backed Securities - CommercialCorporate SecuritiesTotal
AAA equivalent - agency$— $166,750 $5,767 $— $172,517 
Aa1/AA+9,917 — — — 9,917 
Aa2/AA1,538 — — — 1,538 
A1/A+1,794 — — — 1,794 
A2/A643 — — 5,000 5,643 
A3/A-— — — 4,509 4,509 
Baa1/BBB+— — — 8,500 8,500 
Baa2/BBB— — — 8,500 8,500 
Baa3/BBB-— — — 12,528 12,528 
Ba1/BB+— — — 2,000 2,000 
   Total$13,892 $166,750 $5,767 $41,037 $227,446 






13

Note 4:        Loans

Loan balances as of June 30, 2024 and December 31, 2023 are summarized in the table below. Categories of loans include:

(in thousands)June 30, 2024December 31, 2023
Commercial loans  
Commercial and industrial$115,585 $129,349 
Owner-occupied commercial real estate58,089 57,286 
Investor commercial real estate188,409 132,077 
Construction328,922 261,750 
Single tenant lease financing927,462 936,616 
Public finance486,200 521,764 
Healthcare finance202,079 222,793 
Small business lending270,129 218,506 
Franchise finance551,133 525,783 
Total commercial loans3,128,008 3,005,924 
Consumer loans
Residential mortgage382,549 395,648 
Home equity21,405 23,669 
Other consumer loans396,527 377,614 
Total consumer loans800,481 796,931 
Total commercial and consumer loans3,928,489 3,802,855 
Net deferred loan origination fees/costs and premiums/discounts on purchased loans and other1
32,657 37,365 
Total loans3,961,146 3,840,220 
Allowance for credit losses(43,405)(38,774)
Net loans$3,917,741 $3,801,446 

1 Includes carrying value adjustments of $25.6 million and $27.8 million related to terminated interest rate swaps associated with public finance loans as of June 30, 2024 and December 31, 2023, respectively. 

Risk characteristics of 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.

14

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.

15

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.

16

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, reductions in interest rates, acceptance of interest only payments, and/or reductions to the outstanding loan balance. Such loans are typically 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.

17

The following tables present changes in the balance of the ACL during the three and six months ended June 30, 2024 and 2023. 


(in thousands)Three Months Ended June 30, 2024
Allowance for credit losses:Balance, Beginning of Period(Credit) Provision Charged to ExpenseLosses
Charged Off		RecoveriesBalance,
End of Period
Commercial and industrial$1,800 $(413)$— $2 $1,389 
Owner-occupied commercial real estate769 (208)— — 561 
Investor commercial real estate798 374 — — 1,172 
Construction2,942 198 — — 3,140 
Single tenant lease financing8,471 (20)(195)— 8,256 
Public finance1,336 (594)— — 742 
Healthcare finance1,917 (108)— — 1,809 
Small business lending8,868 3,633 (573)65 11,993 
Franchise finance6,166 402 (577)— 5,991 
Residential mortgage1,945 167 — — 2,112 
Home equity125 (8)— 1 118 
Other consumer loans5,754 497 (160)31 6,122 
Total$40,891 $3,920 $(1,505)$99 $43,405 


(in thousands)Six Months Ended June 30, 2024
Allowance for credit losses:Balance, Beginning of Period(Credit) Provision Charged to ExpenseLosses
Charged Off		RecoveriesBalance,
End of Period
   Commercial and industrial$2,185 $(800)$— $4 $1,389 
   Owner-occupied commercial real estate825 (264)— — 561 
Investor commercial real estate1,311 (139)— — 1,172 
Construction2,167 973 — — 3,140 
Single tenant lease financing8,129 322 (195)— 8,256 
Public finance1,372 (630)— — 742 
Healthcare finance1,976 (167)— — 1,809 
Small business lending6,532 6,218 (862)105 11,993 
Franchise finance6,363 205 (577)— 5,991 
Residential mortgage2,054 126 (69)1 2,112 
Home equity171 (56)— 3 118 
Other consumer loans5,689 714 (335)54 6,122 
Total$38,774 $6,502 $(2,038)$167 $43,405 









18

(in thousands)Three Months Ended June 30, 2023
Allowance for credit losses:Balance, Beginning of Period(Credit) Provision Charged to ExpenseLosses
Charged Off		RecoveriesBalance,
End of Period
Commercial and industrial$1,437 $195 $— $217 $1,849 
Owner-occupied commercial real estate712 77 — — 789 
Investor commercial real estate1,276 140 — — 1,416 
Construction1,551 389 — — 1,940 
Single tenant lease financing10,273 (303)— — 9,970 
Public finance1,570 (61)— — 1,509 
Healthcare finance3,695 (1,249)(25)— 2,421 
Small business lending2,340 1,599 (1,358)37 2,618 
Franchise finance4,672 143 (331)— 4,484 
Residential mortgage2,561 (12)— 1 2,550 
Home equity254 (32)— 2 224 
Other consumer loans6,538 (133)(150)33 6,288 
Total$36,879 $753 $(1,864)$290 $36,058 


(in thousands)Six Months Ended June 30, 2023
Allowance for credit losses:Balance, Beginning of PeriodAdoption of CECL(Credit) Provision Charged to ExpenseLosses
Charged Off		RecoveriesBalance,
End of Period
Commercial and industrial$1,711 $(120)$7,005 $(6,965)$218 $1,849 
Owner-occupied commercial real estate651 62 76 — — 789 
Investor commercial real estate1,099 (191)508 — — 1,416 
Construction2,074 (435)301 — — 1,940 
Single tenant lease financing10,519 (346)(203)— — 9,970 
Public finance1,753 (135)(109)— — 1,509 
Healthcare finance2,997 1,034 (1,585)(25)— 2,421 
Small business lending2,168 334 1,493 (1,417)40 2,618 
Franchise finance3,988 (313)1,140 (331)— 4,484 
Residential mortgage1,559 406 582 — 3 2,550 
Home equity69 133 19 — 3 224 
Other consumer loans3,149 2,533 899 (383)90 6,288 
Total$31,737 $2,962 $10,126 $(9,121)$354 $36,058 



Accrued interest receivable on loans totaled $28.1 million and $26.7 million at June 30, 2024 and December 31, 2023, 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 day one entry for off-balance sheet commitments resulted in a reserve of $2.5 million. The adequacy of the reserve for unfunded commitments is determined quarterly based on methodology similar to the methodology for determining
19

the ACL. The following tables detail activity in the provision (benefit) for credit losses on off-balance sheet commitments for the three and six months ended June 30, 2024.

(in thousands)Balance
March 31, 2024		Provision (Benefit) for credit lossesBalance
June 30, 2024
Off-balance sheet commitments
Commercial loans
Commercial and industrial$193 $(5)$188 
Construction3,270 150 3,420 
Small business lending159 (28)131 
Total commercial loans3,622 117 3,739 
Consumer loans
Residential mortgage5 (2)3 
Home equity35 (2)33 
Other consumer11 —  11 
Total consumer loans51 (4)47 
Total allowance for off-balance sheet commitments$3,673 $113 $3,786 

(in thousands)Balance
December 31, 2023		Provision (Benefit) for credit lossesBalance
June 30, 2024
Off-balance sheet commitments
Commercial loans
Commercial and industrial$233 $(45)$188 
Owner-occupied commercial real estate9 (9)— 
Investor commercial real estate6 (6)— 
Construction2,889 531 3,420 
Healthcare finance— — — 
Small business lending541 (410)131 
Total commercial loans3,678 61 3,739 
Consumer loans
Residential mortgage11 (8)3 
Home equity45 (12)33 
Other consumer11 —  11 
Total consumer loans67 (20)47 
Total allowance for off-balance sheet commitments$3,745 $41 $3,786 

20

The following table details activity in the provision for credit losses on off-balance sheet commitments for the three and six months ended June 30, 2023.


(in thousands)Balance
March 31, 2023		Provision (Benefit) for credit lossesBalance
June 30, 2023
Off-balance sheet commitments
Commercial loans
Commercial and industrial$149 $39 $188 
Owner-occupied commercial real estate8 — 8 
Investor commercial real estate48 (28)20 
Construction2,154 743 2,897 
Healthcare finance2 (2)— 
Small business lending— 242 242 
Total commercial loans2,361 994 3,355 
Consumer loans
Residential mortgage113 (54)59 
Home equity62 1 63 
Other consumer10 4  14 
Total consumer loans185 (49)136 
Total allowance for off-balance sheet commitments$2,546 $945 $3,491 

(in thousands)Pre-ASC 326 AdoptionImpact of ASC 326 AdoptionProvision (Benefit) for credit lossesBalance
June 30, 2023
Off-balance sheet commitments
Commercial loans
Commercial and industrial$— $110 $78 $188 
Owner-occupied commercial real estate— — 8 8 
Investor commercial real estate— 9 11 20 
Construction— 2,193 704 2,897 
Healthcare finance— 2 (2)— 
Small business lending— — 242 242 
Total commercial loans— 2,314 1,041 3,355 
Consumer loans
Residential mortgage— 127 (68)59 
Home equity— 52 11 63 
Other consumer— 11 3  14 
Total consumer loans— 190 (54)136 
Total allowance for off-balance sheet commitments$— $2,504 $987 $3,491 



21

The Company utilizes a risk grading matrix to assign a risk grade to each of its commercial loans. 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.


22


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 June 30, 2024 and December 31, 2023.
June 30, 2024
Term Loans (amortized cost basis by origination year)Revolving loans amortized cost basisRevolving loans converted to term
(in thousands)20242023202220212020PriorTotal
Commercial and industrial
  Pass$12,036 $17,401 $16,381 $15,318 $2,431 $19,953 $27,711 $— $111,231 
  Special Mention — — 4,354 — — — — — 4,354 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total commercial and
     industrial		12,036 17,401 20,735 15,318 2,431 19,953 27,711 — 115,585 
Year-to-date gross charge-offs— — — — — — — — — 
Owner-occupied commercial real estate
  Pass3,254 1,475 10,558 7,779 5,814 16,628 — — 45,508 
  Special Mention — — 577 905 8,270 1,174 — — 10,926 
  Substandard— — — — — 1,655 — — 1,655 
  Doubtful— — — — — — — — — 
     Total owner-occupied
     commercial real estate		3,254 1,475 11,135 8,684 14,084 19,457 — — 58,089 
Year-to-date gross charge-offs— — — — — — — — — 
Investor commercial real estate
  Pass52,000 2,894 67,153 24,250 9,737 32,375 — — 188,409 
  Special Mention — — — — — — — — — 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total investor commercial real
     estate		52,000 2,894 67,153 24,250 9,737 32,375 — — 188,409 
Year-to-date gross charge-offs— — — — — — — — — 
Construction
  Pass11,886 77,716 152,610 82,159 2,429 — 2,122 — 328,922 
  Special Mention — — — — — — — — — 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total construction11,886 77,716 152,610 82,159 2,429 — 2,122 — 328,922 
Year-to-date gross charge-offs— — — — — — — — — 
Single tenant lease financing
  Pass17,736 52,073 220,920 88,674 64,537 464,691 — — 908,631 
  Special Mention 1,240 — 2,597 4,368 1,166 9,460 — — 18,831 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total single tenant lease
     financing		18,976 52,073 223,517 93,042 65,703 474,151 — — 927,462 
Year-to-date gross charge-offs— — — — — 195 — — 195 
Public finance
  Pass5,957 1,788 12,028 28,790 719 434,798 — — 484,080 
  Special Mention — — — — — 2,120 — — 2,120 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total public finance5,957 1,788 12,028 28,790 719 436,918 — — 486,200 
Year-to-date gross charge-offs— — — — — — — — — 
23

June 30, 2024
Term Loans (amortized cost basis by origination year)Revolving loans amortized cost basisRevolving loans converted to term
(in thousands)20242023202220212020PriorTotal
Healthcare finance
  Pass— — — 9,472 114,826 77,099 — — 201,397 
  Special Mention — — — — — 682 — — 682 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total healthcare finance— — — 9,472 114,826 77,781 — — 202,079 
Year-to-date gross charge-offs— — — — — — — — — 
Small business lending 1
  Pass56,182 118,343 34,334 13,395 10,817 12,013 10,035 — 255,119 
  Special Mention — 2,632 660 390 374 592 199 — 4,847 
  Substandard— 3,304 2,958 72 1,483 1,883 463 — 10,163 
  Doubtful— — — — — — — — — 
     Total small business lending56,182 124,279 37,952 13,857 12,674 14,488 10,697 — 270,129 
Year-to-date gross charge-offs— 218 487 — 72 85 — — 862 
Franchise finance
  Pass52,006 247,634 195,745 54,548 — — — — 549,933 
  Special Mention — — 1,200 — — — — — 1,200 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total franchise finance52,006 247,634 196,945 54,548 — — — — 551,133 
Year-to-date gross charge-offs— 281 — 296 — — — — 577 
Consumer loans
Residential mortgage
    Performing— 13,973 191,732 87,717 29,250 58,287 — — 380,959 
    Nonperforming— — 484 332 71 703 — — 1,590 
      Total residential mortgage— 13,973 192,216 88,049 29,321 58,990 — — 382,549 
Year-to-date gross charge-offs— — 13 56 — — — — 69 
Home equity
    Performing— 1,228 1,898 372 441 600 15,475 1,391 21,405 
    Nonperforming— — — — — — — — — 
      Total home equity— 1,228 1,898 372 441 600 15,475 1,391 21,405 
Year-to-date gross charge-offs— — — — — — — — — 
Other consumer
    Performing54,803 106,976 96,992 37,282 23,548 76,067 805 — 396,473 
    Nonperforming— — 7 27 3 17 — — 54 
      Total other consumer54,803 106,976 96,999 37,309 23,551 76,084 805 — 396,527 
      Gross charge-offs— 100 90 57 1 87 — — 335 
Total Loans$267,100 $647,437 $1,013,188 $455,850 $275,916 $1,210,797 $56,810 $1,391 $3,928,489 
Total year-to-date gross charge-offs$— $599 $590 $409 $73 $367 $— $— $2,038 
1 Balance in “Substandard” is partially guaranteed by the U.S. government.












24



December 31, 2023
Term Loans (amortized cost basis by origination year)Revolving loans amortized cost basisRevolving loans converted to term
(in thousands)20232022202120202019PriorTotal
Commercial and industrial
  Pass$24,329 $19,382 $15,464 $2,502 $12,365 $8,703 $41,967 $— $124,712 
  Special Mention — 4,637 — — — — — — 4,637 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total commercial and
     industrial		24,329 24,019 15,464 2,502 12,365 8,703 41,967 — 129,349 
Year-to-date gross charge-offs— — 6,914 5 130 — — — 7,049 
Owner-occupied commercial real estate
  Pass1,492 10,731 7,990 6,591 5,255 12,485 — — 44,544 
  Special Mention — 584 922 8,392 — 1,189 — — 11,087 
  Substandard— — — — — 1,655 — — 1,655 
  Doubtful— — — — — — — — — 
     Total owner-occupied
     commercial real estate		1,492 11,315 8,912 14,983 5,255 15,329 — — 57,286 
Year-to-date gross charge-offs— — — — — — — — — 
Investor commercial real estate
  Pass6,571 35,209 26,841 9,864 47,827 5,765 — — 132,077 
  Special Mention — — — — — — — — — 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total investor commercial real
     estate		6,571 35,209 26,841 9,864 47,827 5,765 — — 132,077 
Year-to-date gross charge-offs— — — — — 591 — — 591 
Construction
  Pass26,539 153,066 70,175 6,121 — — 5,849 — 261,750 
  Special Mention — — — — — — — — — 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total construction26,539 153,066 70,175 6,121 — — 5,849 — 261,750 
Year-to-date gross charge-offs— — — — — — — — — 
Single tenant lease financing
  Pass52,360 221,964 89,075 65,863 142,023 346,695 — — 917,980 
  Special Mention — 4,362 6,698 3,032 — 4,544 — — 18,636 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total single tenant lease
     financing		52,360 226,326 95,773 68,895 142,023 351,239 — — 936,616 
Year-to-date gross charge-offs— — — — — — — — — 
Public finance
  Pass3,805 30,583 29,750 719 43,611 411,176 — — 519,644 
  Special Mention — — — — — 2,120 — — 2,120 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total public finance3,805 30,583 29,750 719 43,611 413,296 — — 521,764 
Year-to-date gross charge-offs— — — — — — — — — 
25

December 31, 2023
Term Loans (amortized cost basis by origination year)Revolving loans amortized cost basisRevolving loans converted to term
(in thousands)20232022202120202019PriorTotal
Healthcare finance
  Pass— — 9,955 124,654 63,486 23,484 — — 221,579 
  Special Mention — — — — 1,214 — — — 1,214 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total healthcare finance— — 9,955 124,654 64,700 23,484 — — 222,793 
Year-to-date gross charge-offs— — — — 605 — — — 605 
Small business lending 1
  Pass119,149 42,077 15,180 13,948 4,582 9,215 5,388 — 209,539 
  Special Mention 343 496 — 341 265 698 — — 2,143 
  Substandard1,095 1,854 52 1,777 1,155 417 474 — 6,824 
  Doubtful— — — — — — — — — 
     Total small business lending120,587 44,427 15,232 16,066 6,002 10,330 5,862 — 218,506 
Year-to-date gross charge-offs67 739 416 1,364 — — — — 2,586 
Franchise finance
  Pass256,944 210,617 57,919 — — — — — 525,480 
  Special Mention — — — — — — — — — 
  Substandard— — 303 — — — — — 303 
  Doubtful— — — — — — — — — 
     Total franchise finance256,944 210,617 58,222 — — — — — 525,783 
Year-to-date gross charge-offs— 331 — — — — — — 331 
Consumer loans
Residential mortgage
    Performing14,942 195,453 91,010 30,092 13,072 48,330 — — 392,899 
    Nonperforming— 738 456 73 — 1,482 — — 2,749 
      Total residential mortgage14,942 196,191 91,466 30,165 13,072 49,812 — — 395,648 
Year-to-date gross charge-offs— 53 70 — 17 — — — 140 
Home equity
    Performing1,369 1,997 436 467 141 585 16,896 1,778 23,669 
    Nonperforming— — — — — — — — — 
      Total home equity1,369 1,997 436 467 141 585 16,896 1,778 23,669 
Year-to-date gross charge-offs— — — — — — — — — 
Other consumer
    Performing115,736 106,883 41,598 26,527 27,087 58,902 795 — 377,528 
    Nonperforming— 53 — 5 15 13 — — 86 
      Total other consumer115,736 106,936 41,598 26,532 27,102 58,915 795 — 377,614 
Year-to-date gross charge-offs97 115 20 51 56 243 — — 582 
Total Loans$624,674 $1,040,686 $463,824 $300,968 $362,098 $937,458 $71,369 $1,778 $3,802,855 
Total year-to-date gross charge-offs$164 $1,238 $7,420 $1,420 $808 $834 $— $— $11,884 
1 Balance in “Substandard” is partially guaranteed by the U.S. government.
26


The following tables present the Company’s loan portfolio delinquency analysis as of June 30, 2024 and December 31, 2023. 

June 30, 2024
(in thousands)30-59
Days
Past Due		60-89
Days
Past Due		90 Days 
or More
Past Due		Total 
Past Due		CurrentTotal
Loans
Commercial and industrial$9 $— $— $9 $115,576 $115,585 
Owner-occupied commercial real estate— — — — 58,089 58,089 
Investor commercial real estate— — — — 188,409 188,409 
Construction— — — — 328,922 328,922 
Single tenant lease financing— — — — 927,462 927,462 
Public finance— — — — 486,200 486,200 
Healthcare finance— — — — 202,079 202,079 
Small business lending1
5,216 1,329 4,995 11,540 258,589 270,129 
Franchise finance4,442 909 555 5,906 545,227 551,133 
Residential mortgage1,182 2,563 673 4,418 378,131 382,549 
Home equity— — — — 21,405 21,405 
Other consumer194 40 38 272 396,255 396,527 
Total$11,043 $4,841 $6,261 $22,145 $3,906,344 $3,928,489 
1 Balance is partially guaranteed by the U.S. government.





December 31, 2023
(in thousands)30-59
Days
Past Due		60-89
Days
Past Due		90 Days 
or More
Past Due		Total 
Past Due		CurrentTotal
Loans
Commercial and industrial$40 $21 $— $61 $129,288 $129,349 
Owner-occupied commercial real estate— — — — 57,286 57,286 
Investor commercial real estate— — — — 132,077 132,077 
Construction— — — — 261,750 261,750 
Single tenant lease financing— — — — 936,616 936,616 
Public finance— — — — 521,764 521,764 
Healthcare finance— — — — 222,793 222,793 
Small business lending1
2,680 57 2,794 5,531 212,975 218,506 
Franchise finance— 2,923 303 3,226 522,557 525,783 
Residential mortgage70 709 1,663 2,442 393,206 395,648 
Home equity— — — — 23,669 23,669 
Other consumer223 68 53 344 377,270 377,614 
Total$3,013 $3,778 $4,813 $11,604 $3,791,251 $3,802,855 
1 Balance is partially guaranteed by the U.S. government.

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 Company recorded less than $0.1 million interest income recognized on nonaccrual loans for both the six months ended June 30, 2024 and 2023.


27

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:


June 30, 2024December 31, 2023
(in thousands)Nonaccrual LoansNonaccrual Loans with no Allowance for Credit LossesTotal Loans
90 Days or
More Past
Due and
Accruing		Nonaccrual LoansNonaccrual Loans with no Allowance for Credit LossesTotal Loans
90 Days or
More Past
Due and
Accruing
Small business lending1
$10,246 $2,865 $2 $6,824 $904 $— 
Franchise finance— — 555 303 — — 
Residential mortgage2,117 2,117 — 1,911 1,911 838 
Other consumer54 54 4 86 86 — 
Total loans$12,417 $5,036 $561 $9,124 $2,901 $838 
1 Balance is partially guaranteed by the U.S. government.


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 June 30, 2024 and December 31, 2023.

 June 30, 2024
(in thousands)Commercial Real EstateResidential Real EstateOtherTotalAllowance on Collateral Dependent Loans
Owner-occupied commercial real estate$— $— $1,654 $1,654 $— 
Small business lending1
2,003 — 7,332 9,335 5,144 
Residential mortgage— 2,117 — 2,117 — 
Other consumer loans— — 54 54 — 
Total loans$2,003 $2,117 $9,040 $13,160 $5,144 
1 Balance is partially guaranteed by the U.S. government.

 December 31, 2023
(in thousands)Commercial Real EstateResidential Real EstateOtherTotalAllowance on Collateral Dependent Loans
Owner-occupied commercial real estate$— $— $1,654 $1,654 $— 
Small business lending1
2,875 1,210 2,226 6,311 2,391 
Residential mortgage— 1,911 — 1,911 — 
Other consumer loans— — 86 86 — 
Total loans$2,875 $3,121 $3,966 $9,962 $2,391 
1 Balance is partially guaranteed by the U.S. government.


28

Loan Modifications to Borrowers Experiencing Financial Difficulty
 
In January 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt restructurings and Vintage Disclosures” (“ASU 2022-02”), which eliminated the accounting guidance for troubled debt restructurings (“TDRs”) while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This guidance was applied on a prospective basis. Upon adoption of this guidance, the Company no longer establishes a specific reserve for modifications to borrowers experiencing financial difficulty. Instead, these modifications are included in their respective loan pool and a historical loss rate is applied to the current loan balance to arrive at the quantitative baseline portion of the ACL.

Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearances, term extensions and other actions intended to minimize loss and to avoid foreclosure or repossession of collateral. The Company did not have any loan modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2024 and 2023.

Other Real Estate Owned

The Company had no other real estate owned (“OREO”) as of June 30, 2024. The Company had $0.4 million in other real estate owned (“OREO”) as of December 31, 2023, which consisted of two residential mortgage properties. There were two loans totaling $0.5 million and one loan totaling $0.8 million, in the process of foreclosure at June 30, 2024 and December 31, 2023, respectively.


29


Note 5:        Premises and Equipment
 
The following table summarizes premises and equipment at June 30, 2024 and December 31, 2023.
(in thousands)June 30, 2024December 31, 2023
Land$5,598 $5,598 
Construction in process665 1,119 
Right of use leased asset17 66 
Building and improvements61,971 60,699 
Furniture and equipment21,403 20,836 
Less: accumulated depreciation(17,138)(14,855)
Total$72,516 $73,463 
   

Note 6:        Goodwill        
 
As of June 30, 2024 and December 31, 2023, the carrying amount of goodwill was $4.7 million. There have been no changes in the carrying amount of goodwill for the three and six months ended June 30, 2024 or June 30, 2023. 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, 2023. The estimated fair value of the reporting unit exceeded the net carrying value, and therefore no goodwill impairment existed as of that date.


Note 7:        Servicing Asset

Activity for the servicing asset and the related changes in fair value for the three and six months ended June 2024 and 2023 are shown in the table below.

Three Months Ended
(in thousands)June 30, 2024June 30, 2023
Balance, beginning of period$11,760 $7,312 
  Additions:
     Originated 2,078 1,298 
  Subtractions
     Paydowns:(797)(528)
     Changes in fair value due to changes in valuation inputs or assumptions used in
      the valuation model 		(32)170 
      Loan servicing asset revaluation$(829)$(358)
Balance, end of period$13,009 $8,252 


30

Six Months Ended
(in thousands)June 30, 2024June 30, 2023
Balance, beginning of period$10,567 $6,255 
  Additions:
     Originated3,705 2,410 
  Subtractions
     Paydowns:(1,408)(867)
     Changes in fair value due to changes in valuation inputs or assumptions used in
      the valuation model		145 454 
      Loan servicing asset revaluation$(1,263)$(413)
Balance, end of period$13,009 $8,252 


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 June 30, 2024 and December 31, 2023 are shown in the table below.
(in thousands)June 30, 2024December 31, 2023
Loan portfolios serviced for:
   SBA guaranteed loans$676,497 $531,927 
     Total$676,497 $531,927 

Loan servicing revenue totaled $1.5 million and $2.8 million for the three and six months ended June 30, 2024, respectively, and $0.9 million and $1.6 million for the three and six months ended June 30, 2023, respectively. Loan servicing asset revaluation, which represents the change in fair value of the servicing asset, resulted in a $0.8 million and $1.3 million downward valuation for the three and six months ended June 30, 2024, respectively, and a $0.4 million downward valuation for both the three and six months ended June 30, 2023.

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, without penalty, on any interest payment date on or after June 30, 2024. 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.

31

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 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 June 30, 2024 and December 31, 2023.

June 30, 2024December 31, 2023
(in thousands)PrincipalUnamortized Discount and Debt Issuance CostsPrincipalUnamortized Discount and Debt Issuance Costs
2029 Notes$37,000 $(783)$37,000 $(862)
2030 Notes10,000 (149)10,000 (160)
2031 Notes60,000 (1,075)60,000 (1,140)
Total$107,000 $(2,007)$107,000 $(2,162)



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”).

32

Award Activity Under 2022 Plan

The Company recorded $0.4 million and $0.7 million of share-based compensation expense for the three and six months ended June 30, 2024, respectively, related to stock-based awards under the 2022 Plan. The Company recorded less than $0.1 million of share-based compensation expense for both the three and six months ended June 30, 2023, related to stock-based awards under the 2022 Plan.

The following table summarizes the stock-based award activity under the 2022 Plan for the six months ended June 30, 2024.
Restricted Stock UnitsWeighted-Average Grant Date Fair Value Per ShareRestricted Stock AwardsWeighted-Average Grant Date Fair Value Per ShareDeferred Stock UnitsWeighted-Average Grant Date Fair Value Per Share
Unvested at December 31, 202372,354 $24.61 30,030 $11.18 — $— 
   Granted75,222 24.13 12,040 31.46 — — 
   Vested(14,294)24.52 (30,030)11.18 — — 
Unvested at June 30, 2024133,282 $24.35 12,040 $31.46 — $— 

At June 30, 2024, the total unrecognized compensation cost related to unvested stock-based awards under the 2022 Plan was $2.8 million with a weighted-average expense recognition period of 2.0 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. Although outstanding stock-based awards under the 2013 Plan remain in place according to their terms, 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 $0.1 million and $0.2 million of share-based compensation expense for the three and six months ended June 30, 2024, respectively, related to stock-based awards under the 2013 Plan. The Company recorded less than $0.1 million and $0.5 million of share-based compensation expense for the three and six months ended June 30, 2023, 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 six months ended June 30, 2024.
Restricted Stock UnitsWeighted-Average Grant Date Fair Value Per ShareRestricted Stock AwardsWeighted-Average Grant Date Fair Value Per ShareDeferred Stock UnitsWeighted-Average Grant Date Fair Value Per Share
Unvested at December 31, 202353,985 $39.86 — $— — $— 
   Cancelled/Forfeited(22,685)30.45 — — — — 
   Vested(8,089)46.64 — — — — 
Unvested at June 30, 202423,211 $46.69 — $— — $— 

At June 30, 2024, the total unrecognized compensation cost related to unvested stock-based awards under the 2013 Plan was $0.2 million with a weighted-average expense recognition period of 0.6 years.
33

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 six months ended June 30, 2024.
 Deferred Stock Rights
Outstanding, beginning of period28,538 
Granted142 
Outstanding, end of period28,680 

All deferred stock rights granted during the 2024 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 June 30, 2024 and December 31, 2023, the Company had outstanding loan commitments totaling approximately $715.0 million and $755.4 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 June 30, 2024 or December 31, 2023.

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.
34


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 June 30, 2024 or December 31, 2023.

Loans Held-for-Sale (mandatory pricing agreements)

The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2).

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

The fair values of interest rate swap agreements are estimated using current market interest rates as of the balance sheet date and calculated using discounted cash flows that are observable or that can be corroborated by observable market data (Level 2).

Back-to-Back Swap Agreements

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).

Interest Rate Lock Commitments
 
The fair values of IRLCs are determined using the projected sale price of individual loans based on changes in market interest rates, projected pull-through rates (the probability that an IRLC will ultimately result in an originated loan), the reduction in the value of the applicant’s option due to the passage of time, and the remaining origination costs to be incurred based on management’s estimate of market costs (Level 3).

35

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 June 30, 2024 and December 31, 2023.

June 30, 2024
 Fair Value Measurements Using
(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$87,746 $— $87,746 $— 
Municipal securities64,412 — 64,412 — 
Agency mortgage-backed securities - residential230,045 — 230,045 — 
Agency mortgage-backed securities - commercial36,891 — 36,891 — 
Private label mortgage-backed securities - residential25,631 — 25,631 — 
Asset-backed securities
8,429 — 8,429 — 
Corporate securities35,418 — 35,418 — 
Total available-for-sale securities$488,572 $— $488,572 $— 
Servicing asset13,009 — — 13,009 
Interest rate swap agreements4,681 — 4,681 — 
Interest rate swap agreements - assets (back-to-back)12 — 12 — 
Interest rate swap agreements - liabilities (back-to-back)(12)— (12)— 


December 31, 2023
Fair Value Measurements Using
(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$95,177 $— $95,177 $— 
Municipal securities68,446 — 68,446 — 
Agency mortgage-backed securities - residential206,649 — 206,649 — 
Agency mortgage-backed securities - commercial38,885 — 38,885 — 
Private label mortgage-backed securities - residential20,779 — 20,779 — 
Asset-backed securities
8,081 — 8,081 — 
Corporate securities36,838 — 36,838 — 
Total available-for-sale securities$474,855 $— $474,855 $— 
Servicing asset10,567 — — 10,567 
Interest rate swap agreements5,139 — 5,139 — 
Interest rate swap agreements - assets (back-to-back)677 — 677 — 
Interest rate swap agreements - liabilities (back-to-back)(677)— (677)— 

36

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 six months ended June 30, 2024 and 2023.
Three Months Ended
(in thousands)Servicing AssetInterest Rate Lock
Commitments
Balance as of April 1, 2024$11,760 $— 
Total realized gains
Additions:
  Originated 2,078 — 
  Subtractions:
  Paydowns(797)— 
  Change in fair value(32)— 
Balance, June 30, 2024$13,009 $— 
Balance as of April 1, 2023$7,312 $— 
Total realized gains
Additions:
  Originated 1,298 — 
  Subtractions:
  Paydowns(528)— 
  Change in fair value170 — 
Balance, June 30, 2023$8,252 $— 

Six Months Ended
(in thousands)Servicing AssetInterest Rate Lock
Commitments
Balance, January 1, 2024$10,567 $— 
Total realized gains
Additions:
Originated3,705 — 
  Subtractions:— 
  Paydowns(1,408)— 
  Change in fair value145 — 
Balance, June 30, 2024$13,009 $— 
Balance, January 1, 2023$6,255 $133 
Total realized gains
Additions:
Originated2,410 — 
  Subtractions:
  Paydowns(867)— 
  Change in fair value454 (133)
Balance, June 30, 2023$8,252 $— 




37


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 June 30, 2024 and December 31, 2023.

June 30, 2024
(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$2,528 $— $— $2,528 


December 31, 2023
(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$2,799 $— $— $2,799 
 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
June 30, 2024		Valuation
Technique		Significant Unobservable
Inputs		RangeWeighted-Average Range
Collateral dependent loans$2,528 Fair value of collateralDiscount for type of property and current market conditions
0%- 90%
25%
Servicing asset13,009 Discounted cash flowPrepayment speeds

Discount rate
0% - 25%

15%
11.7%

15%

38



(dollars in thousands)Fair Value at
December 31, 2023		Valuation
Technique		Significant Unobservable
Inputs		RangeWeighted-Average Range
Collateral dependent loans$2,799 Fair value of collateralDiscount for type of property and current market conditions
0% - 90%
28%
Servicing asset10,567 Discounted cash flowPrepayment speeds

Discount rate
0% - 25%

15%
11.3%

15%

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
 
Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid mutual funds. 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.
 
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.
 
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 June 30, 2024 or December 31, 2023.

Loans Held-for-Sale (best efforts pricing agreements)
 
The fair value of these loans approximates carrying value.

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.

39

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 June 30, 2024 and December 31, 2023.
  
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 June 30, 2024 and December 31, 2023.
June 30, 2024
Fair Value Measurements Using
(in thousands)Carrying
Amount		Fair ValueQuoted Prices
In Active
Market for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents$396,786 $396,786 $396,786 $— $— 
Securities held-to-maturity, net 270,349 247,430 — 247,430 — 
Loans held-for-sale (best efforts pricing agreements)19,384 19,384 — 19,384 — 
Net loans3,917,741 3,751,788 — — 3,751,788 
Accrued interest receivable28,118 28,118 28,118 — — 
Federal Home Loan Bank of Indianapolis stock28,350 28,350 — 28,350 — 
Deposits4,273,922 4,255,761 1,851,395 — 2,404,366 
Advances from Federal Home Loan Bank575,000 565,906 — 565,906 — 
Subordinated debt104,993 106,578 36,526 70,052 — 
Accrued interest payable3,419 3,419 3,419 — — 

40

December 31, 2023
Fair Value Measurements Using
(in thousands)Carrying
Amount		Fair ValueQuoted Prices
In Active
Market for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents$405,898 $405,898 $405,898 $— $— 
Securities held-to-maturity 227,153 207,572 — 207,572 — 
Loans held-for-sale (best efforts pricing agreements)22,052 22,052 — 22,052 — 
Net loans3,801,446 3,611,909 — — 3,611,909 
Accrued interest receivable26,746 26,746 26,746 — — 
Federal Home Loan Bank of Indianapolis stock28,350 28,350 — 28,350 — 
Deposits4,066,973 4,059,447 1,796,123 — 2,263,324 
Advances from Federal Home Loan Bank614,934 605,366 — 605,366 — 
Subordinated debt104,838 102,632 32,560 70,072 — 
Accrued interest payable3,848 3,848 3,848 — — 
 
Note 12:        Mortgage Banking Activities

The Bank’s residential real estate lending business originated mortgage loans for customers and typically sold a majority of the originated loans into the secondary market. For most of the mortgages sold in the secondary market, the Bank hedged its mortgage banking pipeline by entering into forward contracts for the future delivery of mortgage loans to third party investors and entering into IRLCs with potential borrowers to fund specific mortgage loans that would be sold into the secondary market. To facilitate the hedging of the loans, the Bank elected the fair value option for loans originated and intended for sale in the secondary market under mandatory pricing agreements. Changes in the fair value of loans held-for-sale, IRLCs and forward contracts are recorded in the mortgage banking activities line item within noninterest income. Refer to Note 13 for further information on derivative financial instruments. 

During both the three and six months ended June 30, 2024, the Company had no mortgage loans held-for-sale or sold mortgage loans into the secondary market. During the three months ended June 30, 2023, the Company had no mortgage loans held-for-sale and sold $3.1 million of mortgage loans into the secondary market. During the six months ended June 30, 2023, the Company originated $36.3 million of mortgage loans held-for-sale and sold $46.5 million of mortgage loans, respectively, into the secondary market. During the first quarter 2023, the Company made the decision to exit the residential mortgage business.

The following table presents the components of income from mortgage banking activities for the three and six months ended June 30, 2024 and 2023.
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Gain on loans sold$— $— $— $471 
Loss resulting from the change in fair value of loans held-for-sale— — — (143)
Loss resulting from the change in fair value of derivatives— — — (252)
Net revenue from mortgage banking activities$— $— $— $76 

Fluctuations in interest rates and changes in IRLC and loan volume within the mortgage banking pipeline may cause volatility in the fair value of loans held-for-sale and the fair value of derivatives used to hedge the mortgage banking pipeline.

41

Note 13:        Derivative Financial Instruments
 
The Company uses derivative financial instruments 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. Additionally, the Company entered into forward contracts for the future delivery of mortgage loans to third-party investors and entered into IRLCs with potential borrowers to fund specific mortgage loans that were sold into the secondary market. The forward contracts were entered into in order to economically hedge the effect of changes in interest rates resulting from the Company’s commitment to fund the loans.
 
The Company had various interest rate swap agreements designated and qualifying as accounting hedges during the reported periods. Designating an interest rate swap as an accounting hedge allows the Company to recognize gains and losses in the condensed consolidated statements of income within the same period that the hedged item affects earnings. The Company includes the gain or loss on the hedged items in the same line item as the offsetting loss or gain on the related interest rate swaps. For derivative instruments that are designated and qualify as cash flow hedges, any gains or losses related to changes in fair value are recorded in accumulated other comprehensive loss, net of tax. The fair value of interest rate swaps with a positive fair value are reported in accrued income and other assets in the condensed consolidated balance sheets, while interest rate swaps with a negative fair value are reported in accrued expenses and other liabilities in the condensed consolidated balance sheets.

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.

The IRLCs and forward contracts are not designated as accounting hedges and are recorded at fair value with changes in fair value reflected in noninterest income on the condensed consolidated statements of income. The fair value of derivative instruments with a positive fair value are reported in accrued income and other assets in the condensed consolidated balance sheets, while derivative instruments with a negative fair value are reported in accrued expenses and other liabilities in the condensed consolidated balance sheets.

The following table presents amounts that were recorded on the condensed consolidated balance sheets related to cumulative basis adjustments for interest rate swap derivatives designated as fair value accounting hedges as of June 30, 2024 and December 31, 2023.

(in thousands)Carrying amount of the hedged assetCumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets
Line item in the condensed consolidated balance sheets in which the hedged item is includedJune 30, 2024December 31, 2023June 30, 2024December 31, 2023
Securities available-for-sale 1
$68,064 $69,504 $(549)$(1,143)

1 These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. The designated hedged items were $50.0 million at both June 30, 2024 and December 31, 2023.

The following tables present a summary of interest rate swap derivatives designated as fair value accounting hedges of fixed-rate receivables used in the Company’s asset/liability management activities at June 30, 2024 and December 31, 2023, identified by the underlying interest rate-sensitive instruments.

42

(dollars in thousands)
June 30, 2024
Notional ValueWeighted- Average Remaining Maturity (years)Weighted-Average Ratio
Instruments Associated WithFair ValueReceivePay
Securities available-for-sale$50,000 0.3$556 3-month SOFR2.33 %
Total swap portfolio at June 30, 2024$50,000 0.3$556 3-month SOFR2.33 %

(dollars in thousands)
December 31, 2023
Notional ValueWeighted- Average Remaining Maturity (years)Weighted-Average Ratio
Instruments Associated WithFair ValueReceivePay
Securities available-for-sale$50,000 0.8$1,153 3-month SOFR2.33 %
Total swap portfolio at December 31, 2023$50,000 0.8$1,153 3-month SOFR2.33 %

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 six months ended June 30, 2024 and 2023, 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 10.0 years as of June 30, 2024. The Company had amortization expense totaling $1.2 million and $2.2 million for the three and six months ended June 30, 2024, respectively, and $1.0 million and $2.0 million for the three and six months ended June 30 2023, respectively, related to these previously terminated fair value hedges was recognized as a reduction to interest income on loans.

The following tables present a summary of interest rate swap derivatives designated as cash flow accounting hedges of variable-rate liabilities used in the Company’s asset/liability management activities at June 30, 2024 and December 31, 2023.

(dollars in thousands)
June 30, 2024
Notional ValueWeighted- Average Remaining Maturity (years)Weighted-Average Ratio
Cash Flow HedgesFair ValueReceivePay
Interest rate swaps$110,000 2.6$4,623 3-month SOFR2.88 %
Interest rate swaps20,000 0.03 Fed Funds Effective2.78 %

(dollars in thousands)
December 31, 2023
Notional ValueWeighted- Average Remaining Maturity (years)Weighted-Average Ratio
Cash Flow HedgesFair ValueReceivePay
Interest rate swaps$110,000 3.1$3,596 3-month SOFR2.88 %
Interest rate swaps40,000 0.4390 Fed Funds Effective2.78 %

These derivative financial instruments were entered into for the purpose of managing the interest rate risk of certain assets and liabilities. The Company received $5.5 million and $5.2 million of cash collateral from counterparties as security for their obligations related to these swap transactions at June 30, 2024 and December 31, 2023. The Company had no pledged cash collateral as of June 30, 2024 and December 31, 2023 to counterparties on interest rate swap agreements as security for its obligations related to these agreements. Collateral posted and received is dependent on the market valuation of the underlying hedges.

43

The following table presents the notional amount and fair value of interest rate swaps utilized by the Company at June 30, 2024 and December 31, 2023.
 June 30, 2024December 31, 2023
(in thousands)Notional
Amount		Fair
Value		Notional
Amount		Fair
Value
Asset Derivatives    
Derivatives designated as hedging instruments
Interest rate swaps associated with securities available-for-sale$50,000 $556 $50,000 $1,153 
Interest rate swaps associated with liabilities130,000 4,626 150,000 3,986 
Derivatives not designated as hedging instruments    
Back-to-back swaps12,325 12 1,778 677 
Total contracts
$192,325 $5,194 $201,778 $5,816 
Liability Derivatives
Derivatives not designated as hedging instruments
Back-to-back swaps$12,325 $(12)$1,778 $(677)
Total contracts
$12,325 $(12)$1,778 $(677)

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 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 six months ended June 30, 2024 and 2023.

 Amount of (Loss) Gain Recognized in Other Comprehensive Income in The Three Months EndedAmount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) in The Six Months Ended
(in thousands)June 30, 2024June 30, 2023June 30, 2024June 30, 2023
Interest rate swap agreements$(262)$2,094 $640 $(76)

The following table summarizes the periodic changes in the fair value of derivatives not designated as hedging instruments on the condensed consolidated statements of income for the three and six months ended June 30, 2024 and 2023.

 Amount of Gain / (Loss) Recognized in the Three Months EndedAmount of Gain / (Loss) Recognized in the Six Months Ended
(in thousands)June 30, 2024June 30, 2023June 30, 2024June 30, 2023
Liability Derivatives    
Derivatives not designated as hedging instruments   
IRLCs$— $— $— $(133)
Forward contracts— — — (119)
  
44

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 six months ended June 30, 2024 and 2023.
(in thousands)

Line item in the condensed consolidated statements of operations
Three Months EndedSix Months Ended
June 30, 2024June 30, 2023June 30, 2024June 30, 2023
Interest income
Securities - non-taxable$415 $354 $829 $648 
Total interest income
415 354 829 648 
Interest expense    
Deposits(169)(539)(424)(957)
Other borrowed funds(760)(595)(1,522)(1,117)
Total interest expense
(929)(1,134)(1,946)(2,074)
Net interest income
$1,344 $1,488 $2,775 $2,722 


Note 14:     Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss, included in shareholders' equity, for the six months ended June 30, 2024 and 2023, respectively, are presented in the table below.
(in thousands)Unrealized Losses On Debt SecuritiesUnrealized Losses On Debt Securities Transferred From Available-For-Sale To Held-To-MaturityCash Flow HedgesTotal
Balance, January 1, 2024$(30,174)$(2,939)$3,738 $(29,375)
Other comprehensive (loss) income before reclassifications from accumulated other comprehensive loss before tax(2,625)— 640 (1,985)
Reclassifications from accumulated other comprehensive loss to earnings before tax— 422 — 422 
Other comprehensive (loss) gain before tax(2,625)422 640 (1,563)
Income tax (benefit) provision(601)103 147 (351)
Other comprehensive (loss) gain - net of tax(2,024)319 493 (1,212)
Balance, June 30, 2024$(32,198)$(2,620)$4,231 $(30,587)
Balance, January 1, 2023$(35,831)$(3,519)$5,714 $(33,636)
Other comprehensive income (loss) before reclassifications from accumulated other comprehensive loss before tax302 — (76)226 
Reclassifications from accumulated other comprehensive loss to earnings before tax— 364— 364 
Other comprehensive gain (loss) before tax302 364 (76)590 
Income tax provision (benefit)63 95 (18)140 
Other comprehensive income (loss) - net of tax239 269 (58)450 
Balance, June 30, 2023$(35,592)$(3,250)$5,656 $(33,186)

The components of accumulated other comprehensive loss, included in stockholders' equity, for the three months ended June 30, 2024 and 2023, respectively, are presented in the table below.

45

(in thousands)Unrealized Losses On Debt SecuritiesUnrealized Losses On Debt Securities Transferred From Available-For-Sale To Held-To-MaturityCash Flow HedgesTotal
Balance, April 1, 2024$(31,773)$(2,762)$4,433 $(30,102)
Other comprehensive loss before reclassifications from accumulated other comprehensive loss before tax(551)— (262)(813)
Reclassifications from accumulated other comprehensive loss to earnings before tax— 188 188 
Other comprehensive (loss) gain before tax(551)188 (262)(625)
Income tax (benefit) provision (126)46 (60)(140)
Other comprehensive (loss) income - net of tax(425)142 (202)(485)
Balance, June 30, 2024$(32,198)$(2,620)$4,231 $(30,587)
Balance, April 1, 2023$(31,889)$(3,407)$4,043 $(31,253)
Other comprehensive (loss) income before reclassifications from accumulated other comprehensive loss before tax(4,810)— 2,094 (2,716)
Reclassifications from accumulated other comprehensive loss to earnings before tax— 206— 206 
Other comprehensive (loss) gain before tax(4,810)206 2,094 (2,510)
Income tax (benefit) provision(1,107)49 481 (577)
Other comprehensive (loss) income - net of tax(3,703)157 1,613 (1,933)
Balance, June 30, 2023$(35,592)$(3,250)$5,656 $(33,186)



Details About Accumulated Other Comprehensive Loss ComponentsAmounts Reclassified from
Accumulated Other Comprehensive Loss for the 		Amounts Reclassified from
Accumulated Other Comprehensive Loss for the		Affected Line Item in the
Statements of Operations
Three Months Ended June 30, 2024Three Months Ended June 30, 2023Six Months Ended June 30, 2024Six Months Ended June 30, 2023
Reclassifications from accumulated other comprehensive loss to earnings before tax$(188)(206)$(422)$(364)Interest income (loss)
Total amount reclassified before tax(188)(206)(422)(364)Income (loss) before income taxes
Tax benefit(46)(49)(103)(95)Income tax provision (benefit)
Total reclassifications from accumulated other comprehensive loss$(142)$(157)$(319)$(269)Net income
46



Note 15:     Recent Accounting Pronouncements


ASU 2023-02 - Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (March 2023)

In March 2023, the FASB issued ASU No. 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. This ASU permits companies to account for tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. The Company adopted this guidance on January 1, 2024 and it did not have a material impact on its consolidated financial statements.

ASU 2023-07 - Segment Reporting (Topic 280): Improvements to Reportable Segments (November 2023)

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segments. This ASU enhances financial reporting by requiring disclosure of incremental segment information on an annual and interim basis. The guidance is effective for fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted. The Company is currently evaluating the impact of this ASU on its condensed consolidated financial statements.

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 is currently evaluating the impact of this ASU on its condensed consolidated financial statements.


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, 2023 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.

47

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 one of the fastest-growing lenders in the Small Business Administration (“SBA”) 7(a) program, closing $223.8 million in SBA 7(a) loans during the six months ended June 30, 2024, and currently rank as the 6th largest SBA 7(a) lenders for the SBA’s year-to-date 2024 fiscal year. We also offer a top-ranked small business checking account product to our country’s entrepreneurs. We continue to scale up this business with the goal of driving increased earnings and profitability in future periods.

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 June 30, 2024, the Company had consolidated assets of $5.3 billion, consolidated deposits of $4.3 billion and stockholders’ equity of $372.0 million.
48

Results of Operations

During the second quarter 2024, net income was $5.8 million, or $0.67 diluted earnings per share, compared to a net income of $3.9 million, or $0.44 diluted earnings per share, during the second quarter 2023, representing an increase in net income of $1.9 million and an increase in diluted earnings per share of $0.23. During the six months ended June 30, 2024, net income was $11.0 million, or $1.25 diluted earnings per share, compared to the six months ended June 30, 2023 net income of $0.9 million, or $0.10 per diluted share, resulting in an increase in net income of $10.1 million and an increase in diluted earnings per share of $1.15.

The $1.9 million increase in net income for the second quarter 2024 compared to the second quarter 2023 was due primarily to a $5.2 million, or 87.9%, increase in noninterest income and a $3.2 million, or 17.5%, increase in net interest income, partially offset by increases of $3.7 million, or 19.6%, in noninterest expense, $2.3 million, or 137.4%, in the provision for credit losses and $0.5 million in income tax expense.

The $10.1 million increase in net income for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 was due primarily to an $8.1 million, or 71.2%, increase in noninterest income, a $4.3 million, or 11.5%, increase in net interest income and a $4.6 million, or 41.7%, decrease in provision for credit losses, partially offset by increases of $3.7 million, or 9.4%, in noninterest expense and $3.2 million in income tax expense.

During the second quarter 2024, return on average assets (“ROAA”), return on average shareholders’ equity (“ROAE”), and return on average tangible common equity (“ROATCE”) were 0.44%, 6.28%, and 6.36%, respectively, compared to 0.32%, 4.35%, and 4.40%, respectively, for the second quarter 2023. During the six months ended June 30, 2024, ROAA, ROAE and ROATCE were 0.42%, 5.96%, and 6.04%, respectively, compared to 0.04%, 0.48%, and 0.49%, respectively, for the six months ended June 30, 2023.

During the second quarter 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 second quarter 2024 was $6.2 million and adjusted diluted earnings per share was $0.72. Additionally, for the second quarter 2024, adjusted ROAA, adjusted ROAE and adjusted ROATCE were 0.48%, 6.77% and 6.85%, respectively.

During the six months ended June 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 six months ended June 30, 2024 was $11.4 million and adjusted diluted earnings per share was $1.30. Additionally, for the six months ended June 30, 2024, adjusted ROAA, adjusted ROAE and adjusted ROATCE were 0.43%, 6.20% and 6.29%, respectively.

Due to the steep decline in consumer mortgage volumes and the negative outlook for consumer mortgage lending, the Company decided to exit its consumer mortgage business during the first quarter 2023. This included its nationwide digital direct-to-consumer mortgage platform that originated residential loans for sale in the secondary market, as well as its local traditional consumer mortgage and construction-to-permanent business. In connection with this decision, the Company recognized $3.1 million of mortgage operations and exit costs during the six months ended June 30, 2023. The Company also recognized $0.1 million of mortgage banking revenue during the six months ended June 30, 2023.

Additionally, during the six months ended June 30, 2023, the Company recognized a partial charge-off of $6.9 million related to a commercial and industrial participation loan with a balance of $9.8 million, prior to the partial charge-off, that was moved to nonaccrual status late in the first quarter 2023. The Company received payment for the remaining balance of the participation loan during the second quarter 2023.

Excluding the impact of exiting consumer mortgage and the partial charge-off, adjusted net income for the six months ended June 30, 2023 was $8.7 million and adjusted diluted earnings per share was $0.97. Additionally, for the six months ended June 30, 2023, adjusted ROAA, adjusted ROAE and adjusted ROATCE were 0.37%, 4.85% and 4.92%, respectively

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.
49


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
June 30, 2024March 31, 2024June 30, 2023
(dollars in thousands)Average BalanceInterest /DividendsYield /CostAverage BalanceInterest /DividendsYield /CostAverage BalanceInterest /DividendsYield /Cost
Assets
Interest-earning assets
Loans, including
loans held-for-sale 		$3,936,723 $57,094 5.83 %$3,892,589 $55,435 5.73 %$3,656,146 $46,906 5.15 %
Securities - taxable670,502 6,476 3.88 %627,216 5,694 3.65 %531,040 3,835 2.90 %
Securities - non-taxable74,035 970 5.27 %76,293 969 5.11 %73,142 860 4.72 %
Other earning assets469,045 6,421 5.51 %434,118 6,067 5.62 %511,295 6,521 5.12 %
Total interest-earning assets5,150,305 70,961 5.54 %5,030,216 68,165 5.45 %4,771,623 58,122 4.89 %
Allowance for credit losses - loans(41,362)(38,611)(36,671)
Noninterest-earning assets223,833 216,331 192,760 
Total assets$5,332,776 $5,207,936 $4,927,712 
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits$474,124 $2,567 2.18 %$415,106 $2,091 2.03 %$359,969 $1,509 1.68 %
Savings accounts22,987 48 0.84 %22,521 48 0.86 %29,915 64 0.86 %
Money market accounts1,243,011 13,075 4.23 %1,217,966 12,671 4.18 %1,274,453 12,314 3.88 %
BaaS - brokered deposits119,662 1,299 4.37 %85,366 931 4.39 %22,918 230 4.03 %
Certificates and brokered deposits2,313,192 27,506 4.78 %2,246,050 26,388 4.73 %2,025,831 20,559 4.07 %
Total interest-bearing deposits4,172,976 44,495 4.29 %3,987,009 42,129 4.25 %3,713,086 34,676 3.75 %
Other borrowed funds652,176 5,139 3.17 %716,735 5,302 2.98 %719,577 5,301 2.95 %
Total interest-bearing liabilities4,825,152 49,634 4.14 %4,703,744 47,431 4.06 %4,432,663 39,977 3.62 %
Noninterest-bearing deposits116,939 113,341 117,496 
Other noninterest-bearing liabilities20,860 21,480 19,241 
Total liabilities4,962,951 4,838,565 4,569,400 
Shareholders’ equity369,825 369,371 358,312 
Total liabilities and shareholders’ equity$5,332,776 $5,207,936 $4,927,712 
Net interest income$21,327 $20,734 $18,145 
Interest rate spread 1
1.40%1.39%1.27 %
Net interest margin 2
1.67%1.66%1.53 %
Net interest margin - FTE 3
1.76%1.75%1.64 %

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.

50

Six Months Ended
June 30, 2024June 30, 2023
(dollars in thousands)Average BalanceInterest /DividendsYield /CostAverage BalanceInterest /DividendsYield /Cost
Assets
Interest-earning assets
Loans, including
loans held-for-sale 		$3,914,656 $112,529 5.78 %$3,619,883 $90,749 5.06 %
Securities - taxable648,860 12,170 3.77 %521,533 7,441 2.88 %
Securities - non-taxable75,163 1,939 5.19 %73,244 1,658 4.56 %
Other earning assets451,582 12,488 5.56 %421,793 10,307 4.93 %
Total interest-earning assets5,090,261 139,126 5.50 %4,636,453 110,155 4.79 %
Allowance for credit losses - loans(39,986)(35,877)
Noninterest-earning assets220,081 187,633 
Total assets$5,270,356 $4,788,209 
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits$444,615 $4,658 2.11 %$346,878 $2,409 1.40 %
Savings accounts22,754 96 0.85 %34,175 145 0.86 %
Money market accounts1,230,488 25,746 4.21 %1,325,741 24,614 3.74 %
BaaS - brokered deposits102,514 2,230 4.37 %18,852 368 3.94 %
Certificates and brokered deposits2,279,621 53,894 4.75 %1,837,713 34,410 3.78 %
Total interest-bearing deposits4,079,992 86,624 4.27 %3,563,359 61,946 3.51 %
Other borrowed funds684,456 10,441 3.07 %719,538 10,490 2.94 %
Total interest-bearing liabilities4,764,448 97,065 4.10 %4,282,897 72,436 3.41 %
Noninterest-bearing deposits115,140 126,194 
Other noninterest-bearing liabilities21,170 18,339 
Total liabilities4,900,758 4,427,430 
Shareholders’ equity369,598 360,779 
Total liabilities and shareholders’ equity$5,270,356 $4,788,209 
Net interest income$42,061 $37,719 
Interest rate spread 1
1.40%1.38%
Net interest margin 2
1.67%1.64%
Net interest margin - FTE 3
1.76%1.76%

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.


51

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 June 30, 2024 vs. March 31, 2024 Due to Changes inThree Months Ended June 30, 2024 vs. June 30, 2023 Due to Changes inSix Months Ended June 30, 2024 vs. June 30, 2023 Due to Changes in
(in thousands)VolumeRateNetVolumeRateNetVolumeRateNet
Interest income      
Loans, including loans held-for-sale$653 $1,006 $1,659 $3,745 $6,443 $10,188 $7,928 $13,852 $21,780 
Securities – taxable409 373 782 1,155 1,486 2,641 2,087 2,642 4,729 
Securities – non-taxable(118)119 1 10 100 110 45 236 281 
Other earning assets1,053 (699)354 (2,127)2,027 (100)777 1,404 2,181 
Total1,997 799 2,796 2,783 10,056 12,839 10,837 18,134 28,971 
Interest expense         
Interest-bearing deposits1,969 397 2,366 4,540 5,279 9,819 9,897 14,781 24,678 
Other borrowed funds(1,690)1,527 (163)(1,853)1,691 (162)(1,006)957 (49)
Total279 1,924 2,203 2,687 6,970 9,657 8,891 15,738 24,629 
Increase in net interest income$1,718 $(1,125)$593 $96 $3,086 $3,182 $1,946 $2,396 $4,342 

Net interest income for the second quarter 2024 was $21.3 million, an increase of $3.2 million, or 17.5%, compared to $18.1 million for the second quarter 2023. The increase in net interest income was the result of a $12.8 million, or 22.1%, increase in total interest income to $71.0 million for the second quarter 2024 from $58.1 million for the second quarter 2023, partially offset by a $9.7 million, or 24.2%, increase in total interest expense to $49.6 million for the second quarter 2024 from $40.0 million for the second quarter 2023.

Net interest income for the six months ended June 30, 2024 was $42.1 million, an increase of $4.3 million, or 11.5%, compared to $37.7 million for the six months ended June 30, 2023. The increase in net interest income was the result of a $29.0 million, or 26.3%, increase in total interest income to $139.1 million for the six months ended June 30, 2024 from $110.2 million for the six months ended June 30, 2023. The increase in total interest income was partially offset by a $24.6 million, or 34.0%, increase in total interest expense to $97.1 million for the six months ended June 30, 2024 from $72.4 million for the six months ended June 30, 2023.

The increase in total interest income for the second quarter 2024 compared to second quarter 2023 was due primarily to an increase in interest earned on loans, resulting from an increase of 68 bps in the yield on loans, including loans held-for-sale, as well as an increase of $280.6 million, or 7.7%, in the average balance of loans, including loans held-for-sale. Additionally, the average balance of securities increased $140.4 million, or 23.2%, and the yield earned on the securities portfolio increased 90 bps for the second quarter 2024 compared to the second quarter 2023. The increase in the yields earned on loans and securities was due to the impact of the continued elevated interest rate environment on both existing and newly-originated interest-earning assets. As a result of the higher interest rate environment, the yield on funded portfolio loan originations was 8.88% for the second quarter 2024, an increase of 46 bps compared to the second quarter 2023.

The increase in total interest income for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 was due primarily to an increase in interest earned on loans resulting from an increase of 72 bps in the yield on loans, including loans held-for-sale, as well as an increase of $294.8 million, or 8.1%, in the average balance of loans, including loans held-for-sale. Additionally, the average balance of securities increased $129.2 million, or 21.7%, and the yield earned on the securities portfolio increased 152 bps for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. Furthermore, the yield on other earning assets increased 63 bps and the average balance of other earning assets increased $30.0 million, or 7.1%. The increase in the yield earned on loans, securities and other earning assets was due to the impact of the continued elevated interest rate environment on both existing and newly-originated interest-earning assets. The yield on funded portfolio loan originations was 8.76% for the six months ended June 30, 2024, an increase of 76 bps compared to the six months ended June 30, 2023.

52

The increase in total interest expense for the second quarter 2024 compared to the second quarter 2023 was due primarily to increases of $6.9 million, or 33.8%, in interest expense associated with certificates and brokered deposits, $1.1 million, or 464.8%, in interest expense associated with BaaS - brokered deposits and $1.1 million, or 70.1%, in interest expense associated with interest-bearing demand deposits. The increase in interest expense related to certificates and brokered deposits was driven by an increase of 71 bps in the cost of these deposits, as well as an increase of $287.4 million, or 14.2%, in the average balance of these deposits. The increase in the average balance of these deposits was driven by strong consumer and small business demand for certificates of deposits, partially offset by lower brokered deposit balances as the Company used on-balance sheet liquidity to pay down higher-cost balances throughout 2023 and 2024. The increase in interest expense related to BaaS - brokered deposits was driven by an increase of 34 bps in the cost of these deposits, as well as an increase of $96.7 million, or 422.1%, in the average balance of these deposits. The increase in interest expense related to interest-bearing demand deposits was driven by an increase of 50 bps in the cost of these deposits, as well as an increase of $114.2 million, or 31.7%, in the average balance of these deposits. The increase in the cost of funds reflects the impact of the continued elevated interest rate environment throughout 2023 and 2024.

The increase in total interest expense for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 was due primarily to increases of $19.5 million, or 56.6%, in interest expense associated with certificates and brokered deposits, $2.2 million, or 93.4%, in interest expense associated with interest-bearing demand deposits, $1.9 million, or 506.0%, in interest expense associated with BaaS - brokered deposits, and $1.1 million, or 4.6%, in interest expense associated with money market accounts. The increase in interest expense related to certificates and brokered deposits was driven by an increase of 97 bps in the cost of these deposits, as well as an increase of $441.9 million, or 24.1%, in the average balance of these deposits. The increase in the average balance of these deposits was driven by strong consumer and small business demand for certificates of deposits in 2024. The increase in interest expense related to interest-bearing demand deposits was due primarily to a 71 bp increase in the cost of these deposits, as well as an increase of $97.7 million, or 28.2%, in the average balance of these deposits. The increase in interest expense related to BaaS - brokered deposits was driven primarily by an increase of 43 bps in the cost of these deposits, as well as an increase of $83.7 million, or 443.8%, in the average balance of these deposits. The increase in interest expense related to money market accounts was driven primarily by an increase of 47 bps in the cost of these deposits, partially offset by a decrease of $95.3 million, or 7.2%, in the average balance of these deposits. The increase in the cost of funds reflects the impact of the continued elevated interest rate environment throughout 2023 and 2024.

Overall, the cost of total interest-bearing liabilities for the second quarter 2024 increased 52 bps to 4.14% from 3.62% for the second quarter 2023. The cost of total interest-bearing liabilities for the six months ended June 30, 2024 increased 69 bps to 4.10% from 3.41% for the six months ended June 30, 2023. The increase in the cost of funds for the three and six months ended June 30, 2024 reflects the impact of the continued elevated interest rate environment throughout 2023 and 2024.

Net interest margin (“NIM”) was 1.67% for the second quarter 2024 compared to 1.53% for the second quarter 2023, an increase of 14 bps. On a fully-taxable equivalent (“FTE”) basis, NIM was 1.76% for the second quarter 2024 compared to 1.64% for the second quarter 2023, an increase of 12 bps. NIM was 1.67% for the six months ended June 30, 2024 compared to
1.64% for the six months ended June 30, 2023, an increase of 3 bps. FTE NIM was 1.76% for both the six months ended June 30, 2024 and 2023.

The increase in the second quarter 2024 NIM and FTE NIM compared to the second quarter 2023 reflects the increase in earning asset yields noted above outpacing the increase in the cost of interest-bearing liabilities. The increase in NIM and stability in FTE NIM for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 reflects the decelerating pace of increase in the cost of interest-bearing deposits and the Company’s focus on shifting the loan composition towards variable rate and higher-yielding products.

53

Noninterest Income

The following table presents noninterest income for the last five completed fiscal quarters and the six months ended June 30, 2024 and 2023.
Three Months EndedSix Months Ended
(in thousands)June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023		June 30,
2024		June 30,
2023
Service charges and fees$246 $220 $216 $208 $218 $466 $427 
Loan servicing revenue1,470 1,323 1,134 1,064 850 2,793 1,635 
Loan servicing asset revaluation(829)(434)(793)(257)(358)(1,263)(413)
Mortgage banking activities— — — — — — 76 
Gain on sale of loans8,292 6,536 6,028 5,569 4,868 14,828 8,929 
Other1,854 702 816 823 293 2,556 663 
Total noninterest income$11,033 $8,347 $7,401 $7,407 $5,871 $19,380 $11,317 

During the second quarter 2024, noninterest income was $11.0 million, representing an increase of $5.2 million, or 87.9%, compared to $5.9 million for the second quarter 2023. The increase in noninterest income was due primarily to increases in gain on sale of loans and other income. The increase of $3.4 million, or 70.3%, in gain on sale of loans was due primarily to an increase in U.S. Small Business Administration (“SBA”) 7(a) guaranteed loan sales. The increase of $1.6 million, or 532.8%, in other income is due primarily to distributions from fund investments.

During the six months ended June 30, 2024, noninterest income was $19.4 million, an increase of $8.1 million, or 71.2%, compared to $11.3 million for the six month ended June 30, 2023. The increase in noninterest income was due primarily to increases in gain on sale of loans, other income and net loan servicing revenue. The increase of $5.9 million, or 66.1%, in gain on sale of loans was due primarily to an increase in SBA 7(a) guaranteed loan sales. The increase of $1.9 million, or 285.5%, in other income is due primarily to distributions from fund investments. The increase in loan servicing revenue was due primarily to growth in the balance of the Company’s SBA 7 (a) servicing portfolio.

Noninterest Expense

The following table presents noninterest expense for the last five completed fiscal quarters and the six months ended June 30, 2024 and 2023.

Three Months EndedSix Months Ended
(in thousands)June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023		June 30,
2024		June 30,
2023
Salaries and employee benefits$12,462 $11,796 $11,055 $11,767 $10,706 $24,258 $22,500 
Marketing, advertising and promotion609 736 518 500 705 1,345 1,549 
Consulting and professional services1,022 853 893 552 711 1,875 1,637 
Data processing606 564 493 701 520 1,170 1,179 
Loan expenses1,597 1,445 1,371 1,336 1,072 3,042 3,049 
Premises and equipment3,154 2,826 2,846 2,315 2,661 5,980 5,438 
Deposit insurance premium1,172 1,145 1,334 1,067 936 2,317 1,479 
Other1,714 1,658 1,546 1,518 1,359 3,372 2,793 
Total noninterest expense$22,336 $21,023 $20,056 $19,756 $18,670 $43,359 $39,624 

Noninterest expense for the second quarter 2024 was $22.3 million, compared to $18.7 million for the second quarter 2023. The increase of $3.7 million, or 19.6%, was due primarily to increases of $1.8 million in salaries and employee benefits, $0.5 million in loan expenses, $0.5 million in premises and equipment, $0.4 million in other expenses and $0.3 million in consulting and professional fees. The increase in salaries and employee benefits was due primarily to continued staffing growth and higher incentive compensation in small business lending, as well as non-recurring anniversary expenses. The increase in loan expenses was due primarily to higher third-party loan servicing fees and other miscellaneous lending costs. The increase in premises and equipment was due primarily to non-recurring IT termination fees. The increase in other expenses was due to various expenses, none of which were individually significant. The increase in consulting and professional fees was due primarily to increased consulting and audit fees.
54


Noninterest expense for the six months ended June 30, 2024 was $43.4 million, compared to $39.6 million for the six months ended June 30, 2023. The increase of $3.7 million, or 9.4%, was due primarily to increases of $1.8 million in salaries and employee benefits, $0.8 million in deposit insurance premiums, $0.6 million in other expenses and $0.5 million in premises and equipment. In the first quarter 2023, the Company incurred $2.2 million in severance costs as a result of its decision to exit the mortgage business. In the second quarter 2024, the Company incurred $0.1 million in non-recurring anniversary expenses. Excluding these costs, salaries and employee benefits increased $3.8 million, or 18.7%. The increase in salaries and employee benefits was due primarily to continued staffing growth and higher incentive compensation in small business lending, as well as higher incentive compensation accruals based on the increase in net income for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The increase in deposit insurance premium was due primarily to year-over-year asset growth and changes in the composition of the loan and deposit portfolios. The increase in other expenses is primarily due to various expenses, none of which were individually significant. The increase in premises and equipment was due primarily to non-recurring IT termination fees.

The Company recorded an income provision tax provision of $0.2 million and an effective tax rate of 3.6% for the second quarter 2024, compared to an income tax benefit of $0.2 million for the second quarter 2023. The Company recorded an income tax provision of $0.6 million and an effective tax rate of 5.6% for the six months ended June 30, 2024, compared to an income tax benefit of $2.6 million for the six months ended June 30, 2023. The income tax benefits recognized during 2023 reflect the benefit of tax exempt income relative to stated pre-tax income, as well as the impact on pre-tax income from mortgage exit costs and the partial charge-off of a commercial and industrial participation loan during the six months ended June 30, 2023.

Financial Condition

The following table presents summary balance sheet data for the last five completed fiscal quarters.
(in thousands)
Balance Sheet Data:June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023
Total assets$5,343,302 $5,340,667 $5,167,572 $5,169,023 $4,947,049 
Loans3,961,146 3,909,804 3,840,220 3,735,068 3,646,832 
Total securities758,921 718,169 702,008 682,755 — 609,999 
Loans held-for-sale19,384 22,589 22,052 31,669 32,001 
Noninterest-bearing deposits126,438 130,760 123,464 125,265 119,291 
Interest-bearing deposits4,147,484 4,143,008 3,943,509 3,958,280 3,735,017 
Total deposits4,273,922 4,273,768 4,066,973 4,083,545 3,854,308 
Advances from Federal Home Loan Bank575,000 574,936 614,934 614,933 614,931 
Total shareholders’ equity371,953 366,739 362,795 347,744 354,332 

Total assets increased $175.7 million, or 3.4%, to $5.3 billion at June 30, 2024 compared to $5.2 billion at December 31, 2023. The increase was due primarily to increases in loans and securities, driven by growth in deposit balances of $206.9 million, or 5.1%.

As of June 30, 2024, total shareholders’ equity was $372.0 million, an increase of $9.2 million, or 2.5%, compared to December 31, 2023. The increase in shareholders’ equity was due primarily to the net income earned during the six months ended June 30, 2024, partially offset by a modest increase in accumulated other comprehensive loss. Tangible common equity totaled $367.3 million as of June 30, 2024, representing an increase of $9.2 million, or 2.6%, compared to December 31, 2023. The ratio of total shareholders’ equity to total assets decreased to 6.96% as of June 30, 2024 from 7.02% as of December 31, 2023, and the ratio of tangible common equity to tangible assets decreased to 6.88% as of June 30, 2024 from 6.94% as of December 31, 2023.

Book value per common share increased 2.2% to $42.91 as of June 30, 2024 from $41.97 as of December 31, 2023. Tangible book value per share increased 2.3% to $42.37 as of June 30, 2024 from $41.43 as of December 31, 2023. The increase in both book value per common share and tangible book value per share was driven primarily by the increases 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.
    
55


Loan Portfolio Analysis

    The following table presents a summary of the Company’s loan portfolio for the last five completed fiscal quarters.
(dollars in thousands)June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023
Commercial loans
Commercial and industrial$115,585 2.9 %$133,897 3.4 %$129,349 3.4 %$114,265 3.1 %$112,423 3.1 %
Owner-occupied commercial real estate58,089 1.5 %57,787 1.5 %57,286 1.5 %58,486 1.6 %59,564 1.6 %
Investor commercial real estate188,409 4.8 %128,276 3.3 %132,077 3.4 %129,831 3.5 %137,504 3.8 %
Construction328,922 8.3 %325,597 8.3 %261,750 6.8 %252,105 6.7 %192,453 5.3 %
Single tenant lease financing927,462 23.4 %941,597 24.1 %936,616 24.4 %933,873 25.0 %947,466 25.9 %
Public finance486,200 12.3 %498,262 12.7 %521,764 13.6 %535,960 14.3 %575,541 15.8 %
Healthcare finance202,079 5.1 %213,332 5.5 %222,793 5.8 %235,622 6.3 %245,072 6.7 %
Small business lending270,129 6.8 %239,263 6.1 %218,506 5.7 %192,996 5.2 %170,550 4.7 %
Franchise finance551,133 13.9 %543,122 13.9 %525,783 13.7 %455,094 12.2 %390,479 10.6 %
Total commercial loans3,128,008 79.0 %3,081,133 78.8 %3,005,924 78.3 %2,908,232 77.9 %2,831,052 77.5 %
Consumer loans
Residential mortgage382,549 9.7 %390,009 10.0 %395,648 10.3 %393,501 10.5 %396,154 10.9 %
Home equity21,405 0.5 %22,753 0.6 %23,669 0.6 %23,544 0.6 %24,375 0.7 %
Other consumer396,527 10.0 %380,675 9.7 %377,614 9.8 %369,451 9.9 %352,124 9.7 %
Total consumer loans800,481 20.2 %793,437 20.3 %796,931 20.7 %786,496 21.0 %772,653 21.3 %
Net deferred loan origination costs, premiums and discounts on purchased loans and other 1
32,657 0.8 %35,234 0.9 %37,365 1.0 %40,340 1.1 %43,127 1.2 %
Total loans3,961,146 100.0 %3,909,804 100.0 %3,840,220 100.0 %3,735,068 100.0 %3,646,832 100.0 %
Allowance for credit losses - loans(43,405)(40,891)(38,774)(36,452)(36,058)
Net loans $3,917,741 $3,868,913 $3,801,446 $3,698,616 $3,610,774 

1 Includes carrying value adjustments of $25.6 million, $26.9 million, $27.8 million, $29.0 million and $30.5 million related to terminated interest rate swaps associated with public finance loans as of June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023, respectively. 

Total loans were $4.0 billion as of June 30, 2024, an increase of $120.9 million, or 3.2%, compared to December 31, 2023. Total commercial loan balances were $3.1 billion as of June 30, 2024, up $122.1 million, or 4.1%, from December 31, 2023. Total consumer loan balances were $800.5 million as of June 30, 2024, an increase of $3.6 million, or 0.5%, compared to December 31, 2023. Compared to December 31, 2023, in connection with the Company’s focus on variable rate and higher-yielding products, the increase in commercial loan balances was driven by growth in the construction, investor commercial real estate, small business lending and franchise finance portfolios. These increases were partially offset by decreases in the public finance and single tenant lease financing portfolios, as well as continued runoff in the healthcare finance portfolio. Additionally, commercial and industrial balances declined due primarily to early payoffs. The slight increase in consumer loan balances was due primarily to new origination activity in the other consumer loans portfolios, partially offset by a decrease in the residential mortgage portfolio.
56


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 the last five completed fiscal quarters.
(dollars in thousands)June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023
Nonaccrual loans
Commercial loans:
Owner-occupied commercial real estate$— $— $— $— $1,405 
Small business lending 1
10,246 9,532 6,824 4,443 3,729 
Franchise finance— 295 303 — — 
Total commercial loans10,246 9,827 7,127 4,443 5,134 
Consumer loans:
Residential mortgage2,117 2,309 1,911 1,354 992 
Other consumer54 129 86 88 101 
Total consumer loans2,171 2,438 1,997 1,442 1,093 
Total nonaccrual loans 12,417 12,265 9,124 5,885 6,227 
Past Due 90 days and accruing loans
Commercial loans:
     Franchise finance556 230 — — — 
Total commercial loans556 230 — — — 
Consumer loans:
Residential mortgage— 555 838 — — 
Other consumer5 — — — — 
Total consumer loans5 555 838 — — 
Total past due 90 days and accruing loans561 785 838 — — 
Total nonperforming loans
12,978 13,050 9,962 5,885 6,227 
Other real estate owned
Residential mortgage— 375 375 106 106 
Total other real estate owned— 375 375 106 106 
Other nonperforming assets77 — 17 78 64 
Total nonperforming assets $13,055 $13,425 $10,354 $6,069 $6,397 
Total nonperforming loans to total loans 2
0.33 %0.33 %0.26 %0.16 %0.17 %
Total nonperforming assets to total assets 2
0.24 %0.25 %0.20 %0.12 %0.13 %
Allowance for credit losses - loans to total loans1.10 %1.05 %1.01 %0.98 %0.99 %
Nonaccrual loans to total loans0.31 %0.31 %0.24 %0.16 %0.17 %
Allowance for credit losses - loans to nonaccrual loans 2
349.6 %333.4 %425.0 %619.4 %579.1 %
Allowance for credit losses - loans to nonperforming loans 2
334.5 %313.3 %389.2 %619.4 %579.1 %
1 Balance of loans are partially guaranteed by the U.S. government.
2 Includes the impact of nonperforming small business lending loans, which are partially guaranteed by the U.S. government.

Total nonperforming loans increased $3.0 million, or 30.3%, to $13.0 million as of June 30, 2024 compared to $10.0 million as of December 31, 2023 due primarily to an increase in nonperforming loans in small business lending during the quarter. Total nonperforming assets increased $2.7 million, or 26.0%, to $13.1 million as of June 30, 2024, compared to $10.4 million as of December 31, 2023, due primarily to the increase in nonperforming loans in small business lending mentioned
57

above. As of June 30, 2024, the Company did not own any OREO. As of December 31, 2023, the Company had two residential mortgage properties in OREO with a carrying value of $0.4 million.

























































58

Allowance for Credit Losses - Loans

The following table provides a rollforward of the allowance for credit losses for the last five completed fiscal quarters and the six months ended June 30, 2024 and 2023.

Three Months EndedSix Months Ended
(dollars in thousands)June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023		June 30,
2024		June 30,
2023
Balance, beginning of period$40,891 $38,774 $36,452 $36,058 $36,879 $38,774 $31,737 
Adoption of ASU 2016-13 (CECL)— — — — — — 2,962 
Balance, beginning of period40,891 38,774 36,452 36,058 36,879 38,774 34,699 
Provision charged to expense3,920 2,582 3,478 1,850 753 6,502 10,126 
Losses charged off
Commercial and industrial— — — — — — 6,965 
Investor commercial real estate— — — 591 — — — 
Single tenant lease financing195 — — — — 195 — 
Healthcare finance— — 580 — 25 — 25 
Small business lending573 289 417 751 1,358 862 1,418 
Franchise finance577 — — — 331 577 331 
Residential mortgage— 69 84 56 — 69 — 
Other consumer160 175 164 120 150 335 382 
Total losses charged off1,505 533 1,245 1,518 1,864 2,038 9,121 
Recoveries
Commercial and industrial2 2 23 2 217 4 218 
Small business lending65 40 23 14 37 105 40 
Residential mortgage— 1 1 1 1 1 3 
Home equity1 2 1 2 2 3 3 
Other consumer31 23 41 43 33 54 90 
Total recoveries99 68 89 62 290 167 354 
Balance, end of period$43,405 $40,891 $38,774 $36,452 $36,058 $43,405 $36,058 
Net charge-offs$1,406 $465 $1,156 $1,456 $1,574 $1,871 $8,767 
Net charge-offs (recoveries) to average loans (annualized)
Commercial and industrial0.00 %(0.01 %)(0.02 %)0.00 %(0.46 %)(0.01 %)13.74 %
Investor commercial real estate0.00 %0.00 %0.00 %0.59 %0.00 %0.00 %0.00 %
Single tenant lease financing0.04 %0.00 %0.00 %0.00 %0.00 %0.04 %0.00 %
Healthcare finance0.00 %0.00 %0.25 %0.00 %0.02 %0.00 %0.02 %
Small business lending0.37 %0.40 %0.17 %0.50 %1.50 %0.57 %1.69 %
Franchise finance0.21 %0.00 %0.00 %0.00 %0.17 %0.21 %0.18 %
Total commercial net charge-offs0.08 %0.03 %0.03 %0.06 %0.10 %0.10 %0.61 %
Residential mortgage0.00 %0.07 %0.08 %0.06 %0.00 %0.04 %0.00 %
Home equity(0.01 %)(0.03 %)0.00 %(0.01 %)(0.02 %)(0.03 %)(0.02 %)
Other consumer0.20 %0.21 %0.22 %0.18 %0.21 %0.20 %0.28 %
Total consumer net charge-offs0.03 %0.11 %0.03 %0.02 %0.03 %0.09 %0.08 %
Total net charge-offs to average loans0.14 %0.05 %0.12 %0.16 %0.17 %0.10 %0.49 %
59

    The allowance for credit losses - loans (“ACL”) was $43.4 million as of June 30, 2024, compared to $38.8 million as of December 31, 2023. The increase in the ACL reflects growth and higher coverage ratios in certain portfolios, as well as additional reserves for nonperforming small business lending loans, partially offset by the positive impact of economic data on forecasted loss rates and qualitative factors for other portfolios. The ACL as a percentage of total loans was 1.10% at June 30, 2024, compared to 1.01% at December 31, 2023. The ACL as a percentage of nonperforming loans decreased to 334.5% as of June 30, 2024, compared to 389.2% as of December 31, 2023, due primarily to the increase in nonperforming loans.

Net charge-offs of $1.4 million were recognized during the second quarter 2024, resulting in net charge-offs to average loans of 0.14%, compared to net charge-offs of $1.6 million, or 0.17% of average loans, for the second quarter 2023. The decrease in net charge-offs was due primarily to a decrease in charge-offs for small business lending, partially offset by an increase in charge-offs for franchise finance loans.

During the six months ended June 30, 2024, the Company recorded net charge-offs of $1.9 million, compared to net charge-offs of $8.8 million during the six months ended June 30, 2023. The decrease in net charge-offs for the six months ended June 30, 2024 was driven primarily by a $6.9 million partial charge-off of a C&I participation loan that was placed on nonaccrual status and subsequently charged off during the first quarter 2023, as well as a decrease in net charge-offs in small business lending, partially offset by increases in net charge-offs in franchise finance and single tenant lease financing.

The provision for credit losses - loans in the second quarter 2024 was $3.9 million, compared to $0.8 million for the second quarter 2023. The increase in the provision for credit losses - loans for the second quarter 2024 was driven primarily by growth and higher coverage ratios in certain loan portfolios as well as additional reserves related to small business lending, partially offset by the positive impact of economic data on forecasted loss rates and qualitative factors on other portfolios.

Investment Securities Portfolio

The following tables present the amortized cost and approximate fair value of our investment securities portfolio by security type for the last five completed fiscal quarters.   
(in thousands)
Amortized CostJune 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023
Securities available-for-sale
U.S. Government-sponsored agencies$88,694 $93,323 $96,404 $98,594 $41,024 
Municipal securities68,057 69,289 69,494 69,031 68,931 
Agency mortgage-backed securities - residential262,758 253,181 237,798 235,468 239,263 
Agency mortgage-backed securities - commercial37,986 39,367 40,215 37,931 16,311 
Private label mortgage-backed securities - residential26,709 23,307 21,742 20,292 14,749 
Asset-backed securities8,383 7,417 8,071 6,713 1,000 
Corporate securities37,070 37,081 39,591 39,603 43,613 
Total available-for-sale529,657 522,965 513,315 507,632 424,891 
Securities held-to-maturity, net carrying value
Municipal securities13,368 13,381 13,889 13,900 13,913 
Agency mortgage-backed securities - residential213,440 178,800 166,750 170,524 169,186 
Agency mortgage-backed securities - commercial5,738 5,752 5,767 5,782 5,795 
Corporate securities37,803 37,805 40,747 41,722 41,711 
Total held-to-maturity, net carrying value270,349 235,738 227,153 231,928 230,605 
Total securities$800,006 $758,703 $740,468 $739,560 $655,496 
60

(in thousands)
Approximate Fair ValueJune 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023
Securities available-for-sale
U.S. Government-sponsored agencies$87,746 $92,101 $95,177 $97,178 $39,474 
Municipal securities64,412 67,415 68,446 62,772 67,209 
Agency mortgage-backed securities - residential230,045 220,484 206,649 193,096 204,141 
Agency mortgage-backed securities - commercial36,891 38,081 38,885 36,163 14,891 
Private label mortgage-backed securities - residential25,631 22,266 20,779 18,576 13,415 
Asset-backed securities8,429 7,459 8,081 6,703 1,000 
Corporate securities35,418 34,625 36,838 36,339 39,264 
Total available-for-sale488,572 482,431 474,855 450,827 379,394 
Securities held-to-maturity
Municipal securities12,326 12,450 13,040 12,449 12,950 
Agency mortgage-backed securities - residential195,337 161,915 152,642 147,412 153,593 
Agency mortgage-backed securities - commercial4,699 4,560 4,521 4,190 4,551 
Corporate securities35,068 35,295 37,369 37,599 37,549 
Total held-to-maturity247,430 214,220 207,572 201,650 208,643 
Total securities$736,002 $696,651 $682,427 $652,477 $588,037 

The approximate fair value of available-for-sale investment securities increased $13.7 million, or 2.9%, to $488.6 million as of June 30, 2024, compared to $474.9 million as of December 31, 2023. The increase was due primarily to increases of $23.4 million in agency mortgage-backed securities - residential, $4.9 million in private label mortgage-backed securities - residential, partially offset by decreases of $7.4 million in U.S. Government-sponsored agencies, $4.0 million in municipal securities, $2.0 million in agency mortgage-backed securities - commercial and $1.4 million in corporate securities. This increase was caused primarily by new purchase activity within certain available-for-sale portfolios, partially offset by net paydown activity. As of June 30, 2024, the Company had securities with a net carrying value of $270.3 million designated as held-to-maturity compared to $227.2 million as of December 31, 2023. The increase was due primarily to purchases of CRA-eligible agency mortgage-backed securities - residential.

Accrued Income and Other Assets

    Accrued income and other assets increased $11.9 million, or 23.2%, to $63.0 million at June 30, 2024 compared to $51.1 million at December 31, 2023. The increase was due primarily to increases of $9.6 million in equity investments and $2.5 million in prepaid assets, partially offset by a decrease of $0.6 million in derivative assets.

Accrued Expenses and Other Liabilities

    Accrued expenses and other liabilities decreased $0.2 million, or 1.2%, to $14.0 million at June 30, 2024, compared to $14.2 million at December 31, 2023.
61


Deposits  

The following table presents the composition of the Company’s deposit base for the last five completed fiscal quarters.
(dollars in thousands)June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023
Noninterest-bearing deposits$126,438 3.0 %$130,760 3.1 %$123,464 3.0 %$125,265 3.1 %$119,291 3.1 %
Interest-bearing demand deposits480,141 11.2 %423,529 9.9 %402,976 9.9 %374,915 9.2 %398,899 10.3 %
Savings accounts22,619 0.5 %23,554 0.6 %21,364 0.5 %23,811 0.6 %28,239 0.7 %
Money market accounts1,222,197 28.6 %1,251,230 29.2 %1,248,319 30.8 %1,222,511 29.9 %1,232,719 32.0 %
BaaS - brokered deposits140,180 3.3 %107,911 2.5 %74,401 1.8 %41,884 1.0 %25,549 0.7 %
Certificates of deposits1,829,644 42.8 %1,738,996 40.7 %1,605,156 39.5 %1,624,447 39.8 %1,366,409 35.5 %
Brokered deposits452,703 10.6 %597,788 14.0 %591,293 14.5 %670,712 16.4 %683,202 17.7 %
Total deposits$4,273,922 100.0 %$4,273,768 100.0 %$4,066,973 100.0 %$4,083,545 100.0 %$3,854,308 100.0 %
   
Total deposits increased $206.9 million, or 5.1%, to $4.3 billion as of June 30, 2024, compared to $4.1 billion as of December 31, 2023. The increase was due primarily to increases of $224.5 million, or 14.0%, in certificates of deposits, $77.2 million, or 19.2%, in interest-bearing demand deposits and $65.8 million, or 88.4%, in BaaS - brokered deposits, partially offset by decreases of $138.6 million, or 23.4%, in brokered deposits and $26.1 million, or 2.1%, in money market accounts. The increase in certificates of deposits was due primarily to strong consumer and small business demand throughout 2024. The increase in interest-bearing demand deposits was due primarily to growth in fintech partnership deposits. The increase in BaaS - brokered deposits was driven by higher payments volumes from our fintech partners. Using liquidity created by the growth in these deposit channels, the Company was able to pay down higher-cost brokered deposits during 2024.

Uninsured deposit balances represented 26% of total deposits at June 30, 2024, up from 25% at December 31, 2023. 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 20% as of June 30, 2024, compared to 19% as of December 31, 2023.

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.

62

The following tables present actual and required capital ratios as of June 30, 2024 and December 31, 2023 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 June 30, 2024 and December 31, 2023, 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.
ActualMinimum Capital Required - Basel III Minimum Required to be Considered Well Capitalized
(dollars in thousands)Capital AmountRatioCapital AmountRatioCapital AmountRatio
As of June 30, 2024:
Common equity tier 1 capital to risk-weighted assets
Consolidated $388,597 9.47 %$287,242 7.00 %N/AN/A
Bank468,594 11.47 %285,926 7.00 %$265,503 6.50 %
Tier 1 capital to risk-weighted assets
Consolidated 388,597 9.47 %348,793 8.50 %N/AN/A
Bank468,594 11.47 %347,196 8.50 %326,773 8.00 %
Total capital to risk-weighted assets
Consolidated 538,764 13.13 %430,862 10.50 %N/AN/A
Bank513,768 12.58 %428,890 10.50 %408,466 10.00 %
Leverage ratio
Consolidated 388,597 7.24 %214,553 4.00 %N/AN/A
Bank468,594 8.77 %213,822 4.00 %267,277 5.00 %


ActualMinimum Capital Required - Basel III Minimum Required to be Considered Well Capitalized
(dollars in thousands)Capital AmountRatioCapital AmountRatioCapital AmountRatio
As of December 31, 2023:
Common equity tier 1 capital to risk-weighted assets
Consolidated $381,001 9.60 %$277,914 7.00 %N/AN/A
Bank464,390 11.73 %277,063 7.00 %$257,273 6.50 %
Tier 1 capital to risk-weighted assets
Consolidated 381,001 9.60 %337,467 8.50 %N/AN/A
Bank464,390 11.73 %336,434 8.50 %316,644 8.00 %
Total capital to risk-weighted assets
Consolidated 525,283 13.23 %416,870 10.50 %N/AN/A
Bank503,834 12.73 %415,595 10.50 %395,804 10.00 %
Leverage ratio
Consolidated 381,001 7.33 %207,929 4.00 %N/AN/A
Bank464,390 8.95 %207,479 4.00 %259,349 5.00 %

63

Shareholders’ Dividends

The Company’s Board of Directors declared a cash dividend of $0.06 per share of common stock payable July 15, 2024 to shareholders of record as of June 28, 2024. 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 June 30, 2024, 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 new stock repurchase program to replace the prior program. The new program 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 is scheduled to expire on December 31, 2024. Under this program, the Company repurchased 559,522 shares of common stock through June 30, 2024, at an average price of $19.06, for a total investment of $10.7 million.

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. See Part II, Item 2, of this report for information regarding recent repurchase activity and our remaining authority under the program.

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. 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 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 June 30, 2024, on a consolidated basis, the Company had $885.4 million in cash and cash equivalents and investment securities available-for-sale and $19.4 million in loans held-for-sale that were generally available for its cash needs. The Company can also generate funds from wholesale funding sources and collateralized borrowings. At June 30, 2024, the Bank had the ability to borrow an additional $1.3 billion from the FHLB, the Federal Reserve and correspondent bank Fed Funds lines of credit, which when combined with cash balances, totaled $1.7 billion and represented 197% of adjusted uninsured deposit balances.

64

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 June 30, 2024, the Company, on an unconsolidated basis, had $8.2 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 June 30, 2024, approved outstanding loan commitments, including unused lines of credit and standby letters of credit, amounted to $715.0 million. Certificates of deposits and brokered deposits scheduled to mature in one year or less at June 30, 2024 totaled $1.3 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.

65

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, adjusted total revenue, adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax provision (benefit), adjusted net income, adjusted diluted 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 the last five completed fiscal quarters.


(dollars in thousands, except share and per share data)Three Months EndedSix Months Ended
June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023		June 30,
2024		June 30,
2023
Total equity - GAAP$371,953 $366,739 $362,795 $347,744 $354,332 $371,953 $354,332 
Adjustments:
   Goodwill(4,687)(4,687)(4,687)(4,687)(4,687)(4,687)(4,687)
Tangible common equity$367,266 $362,052 $358,108 $343,057 $349,645 $367,266 $349,645 
Total assets - GAAP$5,343,302 $5,340,667 $5,167,572 $5,169,023 $4,947,049 $5,343,302 $4,947,049 
Adjustments:
   Goodwill(4,687)(4,687)(4,687)(4,687)(4,687)(4,687)(4,687)
Tangible assets$5,338,615 $5,335,980 $5,162,885 $5,164,336 $4,942,362 $5,338,615 $4,942,362 
Common shares outstanding8,667,894 8,655,854 8,644,451 8,669,673 8,774,507 8,667,894 8,774,507 
Book value per common share$42.91 $42.37 $41.97 $40.11 $40.38 $42.91 $40.38 
Effect of goodwill(0.54)(0.54)(0.54)(0.54)(0.53)(0.54)(0.53)
Tangible book value per common share$42.37 $41.83 $41.43 $39.57 $39.85 $42.37 $39.85 
Total shareholders’ equity to assets6.96 %6.87 %7.02 %6.73 %7.16 %6.96 %7.16 %
Effect of goodwill(0.08 %)(0.08 %)(0.08 %)(0.09 %)(0.09 %)(0.08 %)(0.09 %)
Tangible common equity to tangible assets6.88 %6.79 %6.94 %6.64 %7.07 %6.88 %7.07 %
Total average equity - GAAP$369,825 $369,371 $353,037 $356,701 $358,312 $369,598 $360,779 
Adjustments:
   Average goodwill(4,687)(4,687)(4,687)(4,687)(4,687)(4,687)(4,687)
Average tangible common equity$365,138 $364,684 $348,350 $352,014 $353,625 $364,911 $356,092 
Return on average shareholders’ equity6.28 %5.64 %4.66 %3.79 %4.35 %5.96 %0.48 %
Effect of goodwill0.08 %0.07 %0.06 %0.05 %0.05 %0.08 %0.01 %
Return on average tangible common equity6.36 %5.71 %4.72 %3.84 %4.40 %6.04 %0.49 %

66


(dollars in thousands, except share and per share data)Three Months EndedSix Months Ended
June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023		June 30,
2024		June 30,
2023
Total interest income$70,961 $68,165 $66,272 $63,015 $58,122 $139,126 $110,155 
Adjustments:
   Fully-taxable equivalent adjustments 1
1,175 1,190 1,238 1,265 1,347 2,365 2,731 
Total interest income - FTE$72,136 $69,355 $67,510 $64,280 $59,469 $141,491 $112,886 
Net interest income$21,327 $20,734 $19,807 $17,378 $18,145 $42,061 $37,719 
Adjustments:
   Fully-taxable equivalent adjustments 1
1,175 1,190 1,238 1,265 1,347 2,365 2,731 
Net interest income - FTE$22,502 $21,924 $21,045 $18,643 $19,492 $44,426 $40,450 
Net interest margin1.67 %1.66 %1.58 %1.39 %1.53 %1.67 %1.64 %
   Effect of fully-taxable equivalent adjustments 1
0.09 %0.09 %0.10 %0.10 %0.11 %0.09 %0.12 %
Net interest margin - FTE1.76 %1.75 %1.68 %1.49 %1.64 %1.76 %1.76 %
1 Assuming a 21% tax rate

67

(dollars in thousands, except share and per share data)Three Months EndedSix Months Ended
June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023		June 30,
2024		June 30,
2023
Total Revenue- GAAP$32,360 $29,081 $27,208 $24,785 $24,016 $61,441 $49,036 
Adjustments:
   Mortgage-related revenue— — — — — — — 
Adjusted total revenue$32,360 $29,081 $27,208 $24,785 $24,016 $61,441 $49,036 
Noninterest income - GAAP$11,033 $8,347 $7,401 $7,407 $5,871 $19,380 $11,317 
Adjustments:
   Mortgage-related revenue— — — — — — (65)
Adjusted noninterest income$11,033 $8,347 $7,401 $7,407 $5,871 $19,380 $11,252 
Noninterest expense - GAAP$22,336 $21,023 $20,056 $19,756 $18,670 $43,359 $39,624 
Adjustments:
   Mortgage-related costs— — — — — — (3,052)
   IT Termination fees(452)— — — — (452)— 
   Anniversary expenses(120)— — — — (120)— 
Adjusted noninterest expense$21,764 $21,023 $20,056 $19,756 $18,670 $42,787 $36,572 
Income (loss) before income taxes - GAAP$5,993 $5,610 $3,558 $3,083 $3,648 $11,603 $(1,701)
Adjustments:1
   Mortgage-related revenue— — — — — — (65)
   Mortgage-related costs— — — — — — 3,052 
   Partial charge-off of C&I participation loan— — — — — — 6,914 
   IT Termination fees452 — — — — 452 — 
   Anniversary expenses120 — — — — 120 — 
Adjusted income before income taxes$6,565 $5,610 $3,558 $3,083 $3,648 $12,175 $8,200 
Income tax provision (benefit) - GAAP$218 $429 $(585)$(326)$(234)$647 $(2,566)
Adjustments:1
   Mortgage-related revenue— — — — — — (14)
   Mortgage-related costs— — — — — — 641 
   Partial charge-off of C&I participation loan— — — — — — 1,452 
   IT Termination fees95 — — — — 95 — 
   Anniversary expenses25 — — — — 25 — 
Adjusted income tax provision (benefit)$338 $429 $(585)$(326)$(234)$767 $(487)
1 Assuming a 21% tax rate
68

(dollars in thousands, except share and per share data)Three Months EndedSix Months Ended
June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023		June 30,
2024		June 30,
2023
Net income - GAAP$5,775 $5,181 $4,143 $3,409 $3,882 $10,956 $865 
Adjustments:
   Mortgage-related revenue— — — — — — (51)
   Mortgage-related costs— — — — — — 2,411 
    Partial charge-off of C&I participation loan— — — — — — 5,462 
   IT Termination fees357 — — — — 357 — 
   Anniversary expenses95 — — — — 95 — 
Adjusted net income$6,227 $5,181 $4,143 $3,409 $3,882 $11,408 $8,687 
Diluted average common shares outstanding8,656,215 8,750,297 8,720,078 8,767,217 8,908,180 8,750,017 8,980,262 
Diluted earnings per share - GAAP$0.67 $0.59 $0.48 $0.39 $0.44 $1.25 $0.10 
Adjustments:
   Mortgage-related revenue— — — — — — (0.01)
   Mortgage-related costs— — — — — — 0.27 
   Effect of partial charge-off of C&I participation loan— — — — — — 0.61 
   Effect of IT termination fees0.04 — — — — 0.04 — 
   Effect of anniversary expenses0.01 — — — — 0.01 — 
Adjusted diluted earnings per share$0.72 $0.59 $0.48 $0.39 $0.44 $1.30 $0.97 
Return on average assets0.44 %0.40 %0.32 %0.26 %0.32 %0.42 %0.04 %
   Effect of mortgage-related revenue— — — — — — — 
   Effect of mortgage-related costs— — — — — — 0.10 %
   Effect of partial charge-off of C&I participation loan— — — — — — 0.23 %
   Effect of IT termination fees0.03 %— — — — 0.01 %0.00 %
   Effect of anniversary expenses0.01 %— — — — 0.00 %— 
Adjusted return on average assets0.48 %0.40 %0.32 %0.26 %0.32 %0.43 %0.37 %
Return on average shareholders' equity6.28 %5.64 %4.66 %3.79 %4.35 %5.96 %0.48 %
   Effect of mortgage-related revenue— — — — — — (0.03 %)
   Effect of mortgage-related costs— — — — — — 1.35 %
   Effect of partial charge-off of C&I participation loan— — — — — — 3.05 %
   Effect of IT termination fees0.39 %— — — — 0.19 %— 
   Effect of anniversary expenses0.10 %— — — — 0.05 %— 
Adjusted return on average shareholders' equity6.77 %5.64 %4.66 %3.79 %4.35 %6.20 %4.85 %
69

(dollars in thousands, except share and per share data)Three Months EndedSix Months Ended
June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023		June 30,
2024		June 30,
2023
Return on average tangible common equity6.36 %5.71 %4.72 %3.84 %4.40 %6.04 %0.49 %
   Effect of mortgage-related revenue— — — — — — (0.03 %)
   Effect of mortgage-related costs— — — — — — 1.37 %
   Effect of partial charge-off of C&I participation loan— — — — — — 3.09 %
   Effect of IT termination fees0.39 %— — — — 0.20 %0.00 %
   Effect of anniversary expenses0.10 %— — — — 0.05 %0.00 %
Adjusted return on average tangible common equity6.85 %5.71 %4.72 %3.84 %4.40 %6.29 %4.92 %



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, 2023.
 
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. The Company had interest rate swaps with notional amounts of $180.0 million at June 30, 2024, and $200.0 million at December 31, 2023. Refer to Note 13 to the condensed consolidated financial statements for additional information about derivative financial instruments.
70

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 as its base case scenario which reflects market expectations for rate increases over the next 24 months. Presented below is the estimated impact on our NII and EVE position as of June 30, 2024, 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 PointsImplied Forward Curve -100 Basis Points Base Implied Forward CurveImplied Forward Curve +50 Basis PointsImplied Forward Curve +100 Basis Points
NII - Year 116.60 %9.25 %N/A(3.66 %)(7.32 %)
NII - Year 244.46 %41.04 %32.79 %28.82 %24.67 %
EVE21.68 %13.96 %N/A(6.65 %)(13.44 %)

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 June 30, 2024, 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 PointsImplied Forward Curve -100 Basis PointsBase Implied Forward CurveImplied Forward Curve +50 Basis PointsImplied Forward Curve +100 Basis Points
NII - Year 17.21 %3.78 %N/A(2.23 %)(4.60 %)
NII - Year 246.28 %41.67 %32.79 %27.28 %21.52 %
EVE19.91 %12.95 %N/A(7.48 %)(15.10 %)

71

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 June 30, 2024.

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 June 30, 2024 that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.
72

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, 2023.


ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 
Repurchases of Common Stock

In December 2022, the Company’s Board of Directors approved a stock repurchase program authorizing the repurchase of up to $25.0 million of the Company’s outstanding stock from time to time on the open market or in privately negotiated transactions. The stock repurchase program is scheduled to expire on December 31, 2024. Under this program, the Company has repurchased 559,522 shares of common stock through June 30, 2024, at an average price of $19.06, for a total investment of $10.7 million.

The following table presents information with respect to purchases of the Company’s common stock made by or on behalf of the Company or any “affiliated purchaser,” as defined in Rule 10b-18(a)(3), during the second quarter 2024.

(dollars in thousands, except per share data)Total Number of Shares PurchasedAverage Price Paid Per ShareTotal Number of Shares Purchased As Part of Publicly Announced ProgramsApproximate Dollar Value Of Shares That May Yet Be Purchased Under The Program
April 1, 2024 - April 30, 2024— $— — $14,334 
May 1, 2024 - May 31, 2024— $— — $14,334 
June 1, 2024 - June 30, 2024— $— — $14,334 
  Total— — 

Limitations on the Payment of Dividends

The ability of the Company to make capital distributions, including paying dividends and repurchasing shares, depends upon our receipt of dividends from the Bank. The ability of the Bank to pay dividends is limited by state and federal laws and regulations, including the requirement for the Bank to obtain the prior approval of the Indiana Department of Financial Institutions (“DFI”) before paying a dividend that, together with other dividends it has paid during a calendar year, would exceed the sum of its net income for the year to date combined with its retained net income for the previous two years. The ability of the Bank to pay dividends is further affected by the requirement to maintain adequate capital pursuant to applicable capital adequacy guidelines and regulations, and it is generally prohibited from paying any dividends if, following payment thereof, it would be undercapitalized. Notwithstanding the availability of funds for dividends, the FDIC and the DFI may prohibit the payment of dividends by the Bank if either or both determine such payment would constitute an unsafe or unsound practice. In addition, under the Basel III Capital Rules, institutions that seek the freedom to pay dividends have to maintain 2.5% in Common Equity Tier 1 Capital attributable to the capital conservation buffer.

ITEM 3.    DEFAULTS UPON SENIOR SECURITIES
 
None.
 
ITEM 4.    MINE SAFETY DISCLOSURES
 
Not Applicable.
73

 
ITEM 5.    OTHER INFORMATION

None.
 
ITEM 6.    EXHIBITS 
Exhibit No.DescriptionMethod 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
31.1
Filed Electronically
31.2
Filed Electronically
32.1
Filed Electronically
101Inline XBRL Instance Document (does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document)Filed Electronically
101.SCHInline XBRL Taxonomy Extension SchemaFiled Electronically
101.CALInline XBRL Taxonomy Extension Calculation LinkbaseFiled Electronically
101.DEFInline XBRL Taxonomy Extension Definition LinkbaseFiled Electronically
101.LABInline XBRL Taxonomy Extension Label LinkbaseFiled Electronically
101.PREInline XBRL Taxonomy Extension Presentation LinkbaseFiled Electronically
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)Filed Electronically



74

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
   
8/7/2024By/s/ David B. Becker
  
David B. Becker,
Chairman and Chief Executive Officer
(on behalf of Registrant)
   
8/7/2024By/s/ Kenneth J. Lovik
  
Kenneth J. Lovik,
Executive Vice President and Chief Financial Officer (principal financial officer)
 
75

What is the market capitalization of a company?

The market capitalization sometimes referred as Marketcap, is the value of a publicly listed company.
In most cases it can be easily calculated by multiplying the share price with the amount of outstanding shares.

DISCLAIMER

CompaniesMarketCap is not associated in any way with CoinMarketCap.com
Stock prices are delayed, the delay can range from a few minutes to several hours.
Company logos are from the CompaniesLogo.com logo database and belong to their respective copyright holders. Companies Marketcap displays them for editorial purposes only.

Contact

For inquiries or if you want to report a problem write to hello@8marketcap.com

Links

- Privacy policy

- Terms and conditions

© 2025 CompaniesMarketcap.com