What changed in this filing

/stocks — the workspaceLOADING

Item 9A. Controls and Procedures

2026-03-11 compared with 2025-03-12 · 458 added, 398 removed, 1914 unchanged (31% of the section changed)

77 unchanged sentences

Form of 3.75% Fixed-to-Floating Rate Subordinated Note due September 1, 2031 (incorporated by reference to Exhibit A-1 and Exhibit A-2 included in Exhibit 4.2 to current report on Form 8-K filed on August 16, 2021)

First Internet Bancorp 2013 Equity Incentive Plan (incorporated by reference to Appendix A to the definitive proxy statement on Schedule 14A filed April 9, 2013)*

First Internet Bancorp 2011 Directors’ Deferred Stock Plan (incorporated by reference to Exhibit 10.2 to registration statement on Form 10 filed November 30, 2012)*

9 unchanged sentences

Form of Subordinated Note Purchase Agreement, dated as of October 26, 2020, between First Internet Bancorp and the purchaser thereunder (incorporated by reference to Exhibit 10.1 to current report on Form 8-K filed October 26, 2020)

Form of Management Incentive Award Agreement - Restricted Stock Units under 2013 Equity Incentive Plan (incorporated by reference to Exhibit 10.2 to quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2022)*

Form of Management Incentive Award Agreement - Restricted Stock Units (performance based) under 2013 Equity Incentive Plan (incorporated by reference to Exhibit 10.2 to quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2021)*

Form of Subordinated Note Purchase Agreement, dated August 16,2021, by and among First Internet Bancorp and the Purchasers* (incorporated by reference to Exhibit 10.1 to current report on Form 8-K filed August 15, 2021)

2 unchanged sentences

Form of Management Incentive Award Agreement - Restricted Stock Units under 2022 Equity Incentive Plan (incorporated by reference to Exhibit 10.1 to quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2023)*

Insider Trading Policy

List of Subsidiaries

Insider Trading Policy (incorporated by reference to Exhibit 19 to Annual Report on Form 10-K for the year ended December 31, 2024)

List of Subsidiaries (incorporated by reference to Exhibit 21.1 to Annual Report on Form 10-K for the year ended December 31, 2024)

Consent of Independent Registered Public Accounting Firm

5 unchanged sentences

101 Financial statements from the Annual Report on Form 10-K of First Internet Bancorp for the period ended December 31, 2025, filed with the SEC on March 11, 2026, formatted in inline extensible Business Reporting Language (XBRL):

(i) the Consolidated Balance Sheets at December 31, 2024 and 2023, (ii) the Consolidated Statements of Income for the fiscal years ended December 31, 2024, 2023, and 2022, (iii) the Consolidated Statements of Comprehensive Income for the fiscal years ended December 31, 2024, 2023, and 2022, (iv) the Consolidated Statements of Shareholders’ Equity for the fiscal years ended December 31, 2024, 2023, and 2022, (v) Consolidated Statements of Cash Flows for the fiscal years ended December 31, 2024, 2023, and 2022, and (vi) Notes to Consolidated Financial Statements.

(i) the Consolidated Balance Sheets at December 31, 2025 and 2024, (ii) the Consolidated Statements of Operations for the fiscal years ended December 31, 2025, 2024, and 2023, (iii) the Consolidated Statements of Comprehensive (Loss) Income for the fiscal years ended December 31, 2025, 2024, and 2023, (iv) the Consolidated Statements of Shareholders’ Equity for the fiscal years ended December 31, 2025, 2024, and 2023, (v) Consolidated Statements of Cash Flows for the fiscal years ended December 31, 2025, 2024, and 2023, and (vi) Notes to Consolidated Financial Statements.

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

26 unchanged sentences

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of First Internet Bancorp (the “Company”) as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2024, and the related notes (collectively referred to as the “financial statements”).

We have audited the accompanying consolidated balance sheets of First Internet Bancorp (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive (loss) income, shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively referred to as the “financial statements”).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

3 unchanged sentences

Financial Instruments – Credit Losses .

Our opinion is not modified with respect to this matter.

Basis for Opinion

These financial statements are the responsibility of the Company’s management.

These consolidated financial statements are the responsibility of the Company’s management.

Our responsibility is to express an opinion on the Company’s financial statements based on our audits.

4 unchanged sentences

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Allowance for Credit Losses (ACL) – Loans – Qualitative Adjustments

Critical Audit Mater Description

Critical Audit Matter

The critical audit matters communicated below is a matter arising from the current-period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that:

(1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which they relate.

Allowance for Credit Losses on Loans – Qualitative Adjustment

Critical Audit Matter Description

As described in Note 4 to the consolidated financial statements, the Company’s consolidated allowance for credit losses (ACL) was $55,686,000 at December 31, 2025.

2 unchanged sentences

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.

The Company utilized a discounted cash flow (“DCF”) method to estimate the quantitative portion of the allowance for credit losses for loans evaluated on a collective pooled basis.

Due to its minimal loss history, the Company elected to use peer data for a more accurate calculation.

The Company also includes qualitative adjustments to the ACL based on factors and considerations that have not otherwise been fully accounted for.

The Company includes qualitative adjustments to the ACL based on factors and considerations that have not otherwise been fully accounted for.

We have identified auditing the qualitative adjustments as a critical audit matter as management’s determination of the qualitative adjustments used in the ACL is subjective and involves significant management judgments.

and our audit procedures related to the qualitative adjustments involved a high degree of auditor judgment and required significant audit effort.

Our audit procedures related to the qualitative adjustments involved a high degree of auditor judgment to determine the relevance and reliability of data used in the development of the qualitative framework utilized.

The primary procedures we performed to address this critical audit matter included:

• We obtained an understanding of the Company’s process for establishing the ACL, including the key qualitative factor adjustments applied to the ACL.

• Evaluated the design and tested the operating effectiveness of key controls over significant assumptions and judgments applied in the application of the qualitative adjustments used in the ACL calculation

• Assessed management’s process for developing the qualitative adjustments and determining the reasonableness of the qualitative adjustments applied in the ACL estimate which included assessing the relevance and reliability of data used to develop the qualitative adjustments.

Our evaluation considered evidence from internal and external sources.

• Evaluated the reasonableness of the overall ACL and related qualitative adjustments to determine whether the ACL appropriately reflects expected credit losses by assessing trends in relevant factors and evaluating the relationship of those trends to the overall ACL and related qualitative adjustments applied to the ACL.

• Evaluated the mathematical accuracy of the qualitative adjustments applied to the loan segments in the ACL calculation.

• We obtained an understanding of the Company’s model and process for determining the allowance for credit losses, evaluated the design and implementation, and tested operating effectiveness of controls related to this estimate applied within the qualitative framework.

• We evaluated management’s methodology for developing the qualitative factor adjustments, including the completeness and accuracy of the data utilized in the development of such adjustments.

• Our evaluation focused on the qualitative factor framework as a whole, including how management’s judgments collectively influence the allowance and adjust the quantitative model outputs.

We assessed whether the combined effect of these judgments was reasonable, internally consistent, and supported by relevant data and governance processes.

/s/ Forvis Mazars, LLP

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Retained earnings 193,320 230,622

Accumulated other comprehensive loss

( 32,653 ) ( 29,375 )

Accumulated other comprehensive loss, net of tax ( 20,130 ) ( 32,653 )

Total shareholders’ equity 359,767 384,063

2 unchanged sentences

First Internet Bancorp

Consolidated Statements of Income

Consolidated Statements of Operations

(Amounts in thousands except share and per share data)

14 unchanged sentences

Benefit for credit losses - debt securities held-to-maturity ( 53 ) ( 139 ) ( 42 )

(Benefit) provision for credit losses - off-balance sheet commitments ( 1,606 ) 1,241 —

Provision (benefit) for credit losses - off-balance sheet commitments 446 ( 1,606 ) 1,241

Net interest income after provision for credit losses 41,446 70,307 58,251

4 unchanged sentences

Mortgage banking activities — — 76

Gain on sale of loans 33,329 20,526 11,372

(Loss) gain on sale of loans ( 8,313 ) 33,329 20,526

Other 6,395 9,406 2,302

10 unchanged sentences

Total noninterest expense 95,027 90,110 79,436

Income before income taxes 27,542 4,940 40,100

Income tax provision (benefit) 2,266 ( 3,477 ) 4,559

Net income $ 25,276 $ 8,417 $ 35,541

Income per share of common stock

(Loss) Income Before Income Taxes ( 50,869 ) 27,542 4,940

Income Tax (Benefit) Provision ( 15,701 ) 2,266 ( 3,477 )

Net (Loss) Income $ ( 35,168 ) $ 25,276 $ 8,417

(Loss) Income Per Share of Common Stock

Basic $ ( 4.03 ) $ 2.91 $ 0.95

6 unchanged sentences

First Internet Bancorp

Consolidated Statements of Comprehensive Income

Consolidated Statements of Comprehensive (Loss) Income

(Amounts in thousands)

1 unchanged sentence

2025 2024 2023

Net income $ 25,276 $ 8,417 $ 35,541

Other comprehensive (loss) income

Net (loss) income $ ( 35,168 ) $ 25,276 $ 8,417

Other comprehensive income (loss)

Securities available-for-sale

Net unrealized holding (losses) gains on securities available-for-sale recorded within other comprehensive income before income tax ( 1,039 ) 7,339 ( 42,336 )

Income tax (benefit) provision ( 800 ) 1,682 ( 9,060 )

Net effect on other comprehensive (loss) income ( 239 ) 5,657 ( 33,276 )

Securities held-to-maturity

Reclassification of securities from available-for-sale to held-to-maturity — — ( 5,402 )

Amortization of net unrealized holding losses on securities transferred from available-for-sale to held-to-maturity 789 778 844

Net unrealized holding gains (losses) on securities available-for-sale recorded within other comprehensive income before income tax 15,764 ( 1,039 ) 7,339

Income tax provision (benefit) 3,628 ( 800 ) 1,682

Net effect on other comprehensive income (loss) 12,136 ( 239 ) 5,657

Securities held-to-maturity

Amortization of net unrealized holding losses on securities transferred from available-for-sale to held-to-maturity 515 789 778

Income tax provision 128 90 198

Net effect on other comprehensive income 387 699 580

Cash flow hedges

Net unrealized holding losses on cash flow hedging derivatives recorded within other comprehensive income before income tax ( 1,082 ) ( 2,566 ) 19,091

Net unrealized holding losses on cash flow hedging derivatives recorded within other comprehensive income (loss) before income tax — ( 1,082 ) ( 2,566 )

Reclassification of gain on termination of interest rate swaps — ( 2,904 ) —

Income tax (benefit) provision ( 248 ) ( 590 ) 4,893

Net effect on other comprehensive (loss) income ( 3,738 ) ( 1,976 ) 14,198

Total other comprehensive (loss) income ( 3,278 ) 4,261 ( 22,597 )

Comprehensive income $ 21,998 $ 12,678 $ 12,944

Income tax benefit — ( 248 ) ( 590 )

Net effect on other comprehensive income (loss) — ( 3,738 ) ( 1,976 )

Total other comprehensive income (loss) 12,523 ( 3,278 ) 4,261

Comprehensive (loss) income $ ( 22,645 ) $ 21,998 $ 12,678

See Notes to Consolidated Financial Statements

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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 — 8,417 — 8,417

Other comprehensive loss — — ( 22,597 ) ( 22,597 )

Other comprehensive income — — 4,261 4,261

Dividends declared ($ 0.24 per share)

— ( 2,131 ) — ( 2,131 )

Repurchased shares of common stock ( 779,956 )

Repurchased shares of common stock ( 502,525 shares)

( 9,248 ) — — ( 9,248 )

Excise tax on repurchase of common stock ( 92 ) — — ( 92 )

Recognition of the fair value of share-based compensation 1,258 — — 1,258

2 unchanged sentences

Balance, December 31, 2023 $ 184,700 $ 207,470 $ ( 29,375 ) $ 362,795

Impact of adoption of new accounting standards (1)

— ( 4,491 ) — ( 4,491 )

Net income — 25,276 — 25,276

Other comprehensive income — — 4,261 4,261

Other comprehensive loss — — ( 3,278 ) ( 3,278 )

Dividends declared ($ 0.24 per share)

— ( 2,124 ) — ( 2,124 )

Repurchased shares of common stock ( 502,525 )

Repurchased shares of common stock ( 10,500 shares)

( 283 ) — — ( 283 )

Excise tax on repurchase of common stock ( 92 ) — — ( 92 )

Recognition of the fair value of share-based compensation 1,814 — — 1,814

2 unchanged sentences

Balance, December 31, 2024 $ 186,094 $ 230,622 $ ( 32,653 ) $ 384,063

Net income — 25,276 — 25,276

Other comprehensive loss — — ( 3,278 ) ( 3,278 )

Net loss — ( 35,168 ) — ( 35,168 )

Other comprehensive income — — 12,523 12,523

Dividends declared ($ 0.24 per share)

— ( 2,134 ) — ( 2,134 )

Repurchased shares of common stock ( 10,500 )

Repurchased shares of common stock ( 27,998 shares)

( 521 ) — — ( 521 )

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Operating activities

Net income $ 25,276 $ 8,417 $ 35,541

Adjustments to reconcile net income to net cash provided by operating activities:

Net (loss) income $ ( 35,168 ) $ 25,276 $ 8,417

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

Depreciation and amortization 6,192 8,460 5,748

4 unchanged sentences

Proceeds from sale of loans originated for sale 537,937 510,002 342,684

Gain on sale of loans ( 33,329 ) ( 20,997 ) ( 17,473 )

Gain on sale of other real estate owned ( 27 ) — —

Loss (gain) on sale of loans 8,313 ( 33,329 ) ( 20,997 )

Loss (gain) on sale of other real estate owned 260 ( 27 ) —

Decrease in fair value of loans held-for-sale — — 143

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Purchase of securities held-to-maturity ( 33,629 ) ( 53,977 ) ( 53,573 )

Redemption of Federal Home Loan Bank of Indianapolis stock — — 431

Purchase of Federal Home Loan Bank of Indianapolis stock — — ( 3,131 )

Proceeds from bank owned life insurance — 737 —

2 unchanged sentences

Purchase of equity investments ( 10,312 ) ( 13,583 ) ( 4,464 )

Net cash used in investing activities ( 496,170 ) ( 474,503 ) ( 601,033 )

Net cash provided by (used in) investing activities 128,681 ( 496,170 ) ( 474,503 )

Financing activities

Net change in deposits 866,233 623,818 262,286

Net (decrease) increase in deposits ( 93,393 ) 866,233 623,818

Cash dividends paid ( 2,087 ) ( 2,078 ) ( 2,156 )

3 unchanged sentences

Other, net ( 262 ) ( 182 ) ( 153 )

Net cash provided by financing activities 543,690 612,169 331,902

Net increase (decrease) in cash and cash equivalents 60,512 149,346 ( 186,408 )

Net cash (used in) provided by financing activities ( 141,763 ) 543,690 612,169

Net (decrease) increase in cash and cash equivalents ( 9,633 ) 60,512 149,346

Cash and cash equivalents, beginning of year 466,410 405,898 256,552

3 unchanged sentences

Cash paid during the year for taxes 99 684 939

Loan transferred to equity investment 5,000 — —

Loans transferred to other real estate owned 3,166 523 375

2 unchanged sentences

Securities purchases settled in subsequent period — — 2,632

Transfer of available-for-sale mortgage-backed securities to held-to-maturity mortgage-backed securities at fair value — — 96,220

See Notes to Consolidated Financial Statements

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The Company’s business activities are currently limited to one reporting unit and reportable segment, which is commercial banking.

The Company also evaluates its relationships with other entities to identify whether they represent a variable interest entity (“VIE”).

Variable Interest Entity (“VIE”)

The Company also evaluates its relationships with other entities to identify whether they represent a VIE.

The Company is considered to hold a controlling financial interest in a VIE when it is the primary beneficiary.

As described in applicable accounting standards, the primary beneficiary consolidates the VIE.

A primary beneficiary has both:

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Purchases and sales of securities are recorded in the consolidated balance sheets on the trade date.

Gains and losses from the sale or disposal of securities are recognized as of the trade date in the consolidated statements of income for the period in which securities are sold or otherwise disposed of.

Gains and losses from the sale or disposal of securities are recognized as of the trade date in the consolidated statements of operations for the period in which securities are sold or otherwise disposed of.

Gains and losses on sales of securities are determined using the specific-identification method.

Joint Ventures and Equity Security Accounting

The Company accounts for its investments in joint ventures using equity security accounting or proportional amortization method as appropriate.

The investments in the limited partnerships or LLCs are included in other assets on the consolidated balance sheets.

Investment in Limited Partnership

The investment in a limited partnership is recorded using equity security accounting.

Losses due to impairment are recorded when it is determined that the investment no longer has the ability to recover its carrying amount.

The benefits of low income housing tax credits associated with the investment are accrued when earned.

Loans Held-for-Sale

7 unchanged sentences

Interest on loans in nonaccrual status is recorded as a reduction of loan principal when received.

Premiums and discounts are amortized using the effective interest rate method.

Premiums and discounts are amortized using the effective interest method.

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

Loan fees, net of certain direct origination costs, primarily salaries and wages, are deferred and amortized to interest income as a yield adjustment over the life of the loan.

The Company also earns noninterest income through a variety of financial and transaction services provided to commercial and consumer clients such as sales of the government-guaranteed portion of U.S.

Small Business Administration loans, SBA servicing revenue, deposit account, debit card, mortgage banking and portfolio loan sales.

Small Business Administration loans, loan servicing revenue, deposit accounts, debit cards, mortgage banking and portfolio loan sales.

Revenue is recorded for noninterest income based on the contractual terms for the service or transaction performed.

In certain circumstances, noninterest income is reported net of associated expenses.

Loans that management intends to hold until maturity are reported at their outstanding principal balance adjusted for unearned income, charge-offs, the ACL, any unamortized deferred fees or costs on originated loans, unamortized premiums or discounts on purchased loans and any carrying value adjustments related to terminated interest rate swaps associated with loans.

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

Loans that management intends to hold until maturity are reported at their outstanding principal balance adjusted for unearned income, charge-offs, the ACL, any unamortized deferred fees or costs on originated loans, any unamortized premiums or discounts on purchased loans and any carrying value adjustments related to terminated interest rate swaps associated with loans.

For loans recorded at cost, interest income is accrued based on the unpaid principal balance.

9 unchanged sentences

The Company recorded a net decrease to retained earnings of $ 4.5 million as of January 1, 2023 for the cumulative effect of adopting ASC 326.

The net adjustment to allowance for credit losses (“ACL”) includes $ 2.3 million related to loans, $ 1.9 million related to off-balance sheet credit exposures and $ 0.3 million related to held-to-maturity debt securities.

The net adjustment to the ACL includes $ 2.3 million related to loans, $ 1.9 million related to off-balance sheet credit exposures and $ 0.3 million related to held-to-maturity debt securities.

ACL - Available-For-Sale (“AFS”) Debt Securities

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Accrued interest receivable on HTM debt securities are excluded from the estimate of credit losses.

The Company made the accounting policy election to not measure an ACL for accrued interest.

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

made the accounting policy election to not measure an ACL for accrued interest.

Accrued interest deemed uncollectible will be written off through interest income.

4 unchanged sentences

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

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

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.

7 unchanged sentences

In creating the DCF model, the Company has established a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average.

Due to its limited loss history, the Company elected to use peer data for a more accurate calculation.

Due to its limited loss history, the Company elected to use peer data in certain loan segments for a more accurate calculation.

Key inputs into the DCF model include loan-level detail, including the amortized cost basis of individual loans, payment structure, loss history, and forecasted loss drivers.

5 unchanged sentences

The Frye Jacobs method is a mathematical formula that traces the relationship between LGD and PD over time and projects the LGD based on the level of PD forecasted.

In all cases, the Frye Jacobs method is utilized to calculate LGDs during the forecast period, reversion period and long-term historical average.

In all cases, the Frye Jacobs method is utilized to calculate LGD during the forecast period, reversion period and long-term historical average.

Prepayment and curtailment rates were calculated through third party analysis of the Company’s own data.

1 unchanged sentence

• 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 international, national, regional and local economic conditions

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

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

4 unchanged sentences

• 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.

• The effect of other external factors (e.g.

competition, legal and regulatory requirements) on the level of estimated credit losses

1 unchanged sentence

Loans that do not share risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation.

The Company has determined that any loans which have been placed on nonaccrual status will be

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

individually evaluated.

Individual analysis will establish a specific reserve for loans, if necessary.

Specific reserves on nonaccrual loans are typically based on management’s best estimate of the fair value of collateral securing these loans, adjusted for selling costs as necessary.

Specific reserves on nonaccrual loans are typically based on management’s best estimate of the fair value of collateral securing these loans, adjusted for selling costs as necessary, assessment of guarantor strength, or the value of the government-guaranteed portion of U.S.

Small Business Administration loans.

ACL - Off-Balance Sheet Credit Exposures

10 unchanged sentences

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.

Such loans may be placed on nonaccrual status when there is doubt concerning the full repayment of principal and interest or the loan has been delinquent for a period of 90 days or more.

These loans may be returned to accrual status when all contractual amounts past due have been brought current, and the borrower’s performance under the modified terms of the loan agreement and the ultimate collectability of all contractual amounts due under the modified terms is no longer in doubt.

1 unchanged sentence

A provision for estimated credit losses 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 ACL adjustments may be necessary if economic conditions change substantially from the assumptions used in making the evaluations.

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, an assessment of guarantor strength, or the value of the government-guaranteed portion of U.S.

Small Business Administration loans, 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 ACL adjustments may be necessary if conditions change substantially from the assumptions used in making the evaluations.

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

Nonaccrual Loans

6 unchanged sentences

Payments with delays not exceeding 90 days outstanding generally are not individually evaluated.

Certain nonaccrual

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

and substantially all delinquent loans more than 90 days past due may be individually evaluated.

Certain nonaccrual and substantially all delinquent loans more than 90 days past due may be individually evaluated.

Generally, loans are placed on nonaccrual status at 90 days past due and accrued interest is reversed against earnings, unless the loan is well secured and in the process of collection.

15 unchanged sentences

Other Real Estate Owned

Other real estate owned represents real estate acquired through foreclosure or deed in lieu of foreclosure and is recorded at its fair value less estimated costs to sell.

When property is acquired, it is recorded at its fair value at the date of acquisition with any resulting write-down charged against the ACL.

Any subsequent deterioration of the property is charged directly to operating expense.

Costs relating to the development and improvement of other real estate owned are capitalized, whereas costs relating to holding and maintaining the property are charged to expense as incurred.

Other real estate owned represents real estate acquired through foreclosure or deed in lieu of foreclosure.

When property is acquired, it is recorded at its fair value, less estimated costs to sell, at the date of acquisition with any resulting write-down charged against the ACL.

A valuation allowance is recorded through noninterest expense for any subsequent deterioration of the property.

Costs relating to holding and maintaining the property are recorded to noninterest expense as incurred.

Upon the sale of other real estate owned the gain or loss, as applicable, is recorded to noninterest income.

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

Derivative Financial Instruments

5 unchanged sentences

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

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

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.

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 consolidated balance sheets while interest rate swaps with a negative fair value are reported in accrued expenses and other liabilities in the consolidated balance sheets.

The interest rate lock commitments (“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 in the 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 consolidated balance sheets, while derivative instruments with a negative fair value are reported in accrued expenses and other liabilities in the consolidated balance sheets.

The fair value of these derivative instruments with a positive fair value are reported in accrued income and other assets in the consolidated balance sheets, while derivative instruments with a negative fair value are reported in accrued expenses and other liabilities in the consolidated balance sheets.

Fair Value Measurements

16 unchanged sentences

federal, state and local examinations by tax authorities for years before 2022.

ASC Topic 740-10, Accounting for Uncertainty in Income Taxes , prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.

It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

The Company did not identify any material uncertain tax positions that it believes should be recognized in the consolidated financial statements.

First Internet Bancorp

1 unchanged sentence

(Tabular dollar amounts in thousands except per share data)

Earnings Per Share

Earnings per share of common stock is based on the weighted average number of basic shares and dilutive shares outstanding during the year.

The following is a reconciliation of the weighted average common shares for the basic and diluted earnings per share computations.

It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

The Company did not identify any material uncertain tax positions that it believes should be recognized in the consolidated financial statements.

(Loss) Earnings Per Share

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

The following is a reconciliation of the weighted average common shares for the basic and diluted (loss) earnings per share computations.

Year Ended December 31,

2025 2024 2023

Basic earnings per share

Net income available to common shareholders $ 25,276 $ 8,417 $ 35,541

Basic (loss) earnings per share

Net (loss) income available to common shareholders $ ( 35,168 ) $ 25,276 $ 8,417

Weighted average common shares 8,729,970 8,690,416 8,837,558

Basic earnings per common share $ 2.91 $ 0.95 $ 3.73

Diluted earnings per share

Net income available to common shareholders $ 25,276 $ 8,417 $ 35,541

Basic (loss) earnings per common share $ ( 4.03 ) $ 2.91 $ 0.95

Diluted (loss) earnings per share

Net (loss) income available to common shareholders $ ( 35,168 ) $ 25,276 $ 8,417

Weighted average common shares 8,729,970 8,690,416 8,837,558

1 unchanged sentence

Weighted average common and incremental shares 8,729,970 8,765,725 8,858,890

Diluted earnings per common share 1

Diluted (loss) earnings per common share 1

$ ( 4.03 ) $ 2.88 $ 0.95

1 Potential dilutive common shares are excluded from the computation of diluted earnings per share in the periods where the effect would be antidilutive.

There were no antidilutive shares for the year ended December 31, 2024.

Excluded from the computation of diluted earnings per share were weighted average antidilutive shares totaling 20,797 and 2,646 for the years ended December 31, 2023 and 2022, respectively.

1 Potential dilutive common shares are excluded from the computation of diluted (loss) earnings per share in the periods where the effect would be antidilutive.

There were no antidilutive shares for the years ended December 31, 2025 and December 31, 2024.

Excluded from the computation of diluted (loss) earnings per share were weighted average antidilutive shares totaling 20,797 for the year ended December 31, 2023.

Share-based Compensation

1 unchanged sentence

The plan is described more fully in Note 11.

Comprehensive Income

Comprehensive income consists of net income and other comprehensive income (loss).

Comprehensive (Loss) Income

Comprehensive (loss) income consists of net (loss) income and other comprehensive income (loss).

Other comprehensive income (loss) includes unrealized gains and losses on securities available-for-sale, unrealized gains and losses on the transfer of securities available-for-sale to securities held-to-maturity, and unrealized gains and losses on cash flow hedges.

4 unchanged sentences

The Company reports net cash flows for customer loan transactions and deposit transactions.

Bank-Owned Life Insurance

Bank-owned life insurance policies are carried at their cash surrender value.

The Company recognizes tax-free income from the periodic increases in the cash surrender value of these policies and from death benefits.

First Internet Bancorp

1 unchanged sentence

(Tabular dollar amounts in thousands except per share data)

Goodwill is tested at least annually for impairment.

If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value.

Subsequent increases in goodwill value are not recognized in the consolidated financial statements.

Bank-Owned Life Insurance

Bank-owned life insurance policies are carried at their cash surrender value.

The Company recognizes tax-free income from the periodic increases in the cash surrender value of these policies and from death benefits.

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.

Servicing Asset

The servicing asset is related to small business lending loans sold.

The servicing asset is related to small business lending and single tenant lease financing loans sold.

The servicing asset is recognized at the time of sale when servicing is retained and the income statement effect is recorded in loan servicing revenue.

1 unchanged sentence

Fair value is based on a third-party valuation model that calculates the present value of net servicing revenue.

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered.

Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company (put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership), (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets.

Reclassifications

Certain reclassifications of prior year disclosures within Note 13 have been made to conform to the current year presentation.

These reclassifications had no impact on the Company's consolidated financial position, results of operations or net change in cash and cash equivalents.

Cash and Cash Equivalents

At December 31, 2025, the Company’s interest-bearing and noninterest-bearing cash accounts at other institutions exceeded the limits for full FDIC insurance coverage by $ 1.5 million.

In addition, approximately $ 440.8 million and $ 15.7 million of cash was held at the Federal Reserve Bank of Chicago and the FHLB of Indianapolis, respectively, which are not federally insured.

In addition, approximately $ 442.4 million and $ 7.6 million of cash was held at the Federal Reserve Bank and the FHLB of Indianapolis, respectively, which are not federally insured.

The Federal Reserve Act authorizes the Federal Reserve Board to establish reserve requirements within specified ranges for the purpose of implementing monetary policy on certain types of deposits and other liabilities of depository institutions.

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As such, the Company is not currently required to maintain reserve funds in cash and/or on deposit with the Federal Reserve Bank.

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

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

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Total available-for-sale $ 802,422 $ 2,220 $ ( 25,955 ) $ 778,687

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

December 31, 2025

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

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

December 31, 2024

12 unchanged sentences

These securities are either explicitly or implicitly guaranteed by the U.S.

government and have a long history of no credit losses;

government and have a long history of no credit losses and it is expected that the securities will not be settled at prices less than the amortized cost bases of the securities as such securities are backed by the full faith and credit of and/or guaranteed by the U.S.

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

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

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.

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Actual maturities will differ because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

Available-for-Sale

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Government-Sponsored Agencies, Municipal Securities and Corporate Securities

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

The unrealized losses on the Company’s investments in securities issued by U.S.

2 unchanged sentences

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

The unrealized losses on the Company’s investments in agency mortgage-backed, private label mortgage-backed securities and asset-backed securities were caused primarily by interest rate changes.

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

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

The unrealized losses on the Company’s investments in agency mortgage-backed securities, private label mortgage-backed securities and asset-backed securities were caused primarily by interest rate changes.

The Company expects to recover the amortized cost basis over the terms of the securities.

55 unchanged sentences

Aa2/AA 2,175 — — — 2,175

A1/A+ 1,794 — — — 1,794

Aa3/AA- 1,793 — — — 1,793

A2/A — — — 5,000 5,000

5 unchanged sentences

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

There were no amounts reclassified from accumulated other comprehensive loss to the consolidated statements of income during the twelve months ended December 31, 2024, 2023 and 2022.

There were no amounts reclassified from accumulated other comprehensive loss to the consolidated statements of operations during the twelve months ended December 31, 2025, 2024 and 2023.

Equity Investments

Equity investments, largely comprised of non-marketable equity investments, are generally accounted for under equity security accounting and is included within accrued income and other assets on the consolidated balance sheet.

Equity investments, largely comprised of non-marketable equity investments, are generally accounted for under equity security accounting and are included within accrued income and other assets on the consolidated balance sheet.

The Company’s non-marketable equity investments consist of limited partner interests in venture capital and Small Business Investment Company (“SBIC”) funds.

After the initial commitment and over the course of the investment period, the Company will make capital contributions and receive profit and return of capital distributions as a result of fund performance until the funds wind down.

After the initial commitment and over the course of the investment period, the Company will make capital contributions and receive a proportional share of profit and return of capital distributions as a result of fund performance until the funds wind down.

While the partnership agreements allow the Company to remove the general partner, this right is not considered to be substantive as the general partner can only be removed for cause.

All of these investments are generally non-redeemable and distributions are generally expected to be received through the

All of these investments are generally non-redeemable and distributions are generally expected to

First Internet Bancorp

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(Tabular dollar amounts in thousands except per share data)

liquidation of the underlying investments throughout the life of the investment fund.

be received through the liquidation of the underlying investments throughout the life of the investment fund.

Investments may only be sold or transferred subject to the notice and approval provisions of the underlying investment agreements.

The above investments meet the criteria of a VIE.

However, the Company is not the primary beneficiary of the entities as it does not have the power to direct the activities that most significantly impact the economic performance of the entities.

The Company’s maximum exposure to loss from unconsolidated VIEs includes the value of the investment recorded on the Company’s consolidated balance sheets.

The following tables provide additional information related to equity investments accounted for under equity security accounting.

11 unchanged sentences

1 Excludes $ 14.6 million and $ 9.1 million in unfunded commitments as of December 31, 2025 and 2024, respectively.

Variable Interest Entities

The above investments meet the criteria of a VIE.

However, the Company is not the primary beneficiary of the entities as it does not have the power to direct the activities that most significantly impact the economic performance of the entities.

The Company’s maximum exposure to loss from unconsolidated VIEs includes the value of the investment recorded on the Company’s consolidated balance sheets and unfunded commitment.

The Company believes the potential for loss from these investments is remote, the maximum exposure for the affordable housing investment was determined by assuming a scenario where related tax credits were recaptured.

The following table provides a summary of VIEs that the Company has not consolidated as December 31, 2025 and 2024:

December 31, 2025

Carrying Amount Maximum Exposure to Loss Liability Recognized Classification

Private equity and venture capital funds $ 13,685 $ 20,208 $ — Other assets (1)

Hedge funds 2,876 2,876 — Other assets (2)

SBIC 7,292 13,000 — Other assets (3)

Affordable housing 7,634 12,519 — Other assets (4)

Non-marketable and other equity investments 10,000 10,000 — Other assets (5)

First Internet Bancorp

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(Tabular dollar amounts in thousands except per share data)

December 31, 2024

Carrying Amount Maximum Exposure to Loss Liability Recognized Classification

Private equity and venture capital funds $ 10,811 $ 20,057 $ — Other assets (6)

Hedge funds 2,724 2,724 — Other assets (7)

SBIC 4,931 8,000 — Other assets (8)

Affordable housing 5,073 11,519 — Other assets (9)

Non-marketable and other equity investments 5,000 5,000 — Other assets (10)

(1) Maximum exposure to loss includes $ 13.7 million of current investments and $ 6.5 million in unfunded commitments.

(2) Maximum exposure to loss includes $ 2.9 million of current investments.

(3) Maximum exposure to loss includes $ 7.3 million of current investments and $ 5.7 million in unfunded commitments.

(4) Maximum exposure to loss includes $ 7.6 million of current investments, $ 2.4 million in unfunded commitments and a scenario in which related tax credits of $ 2.5 million are recaptured, totaling $ 12.5 million.

(5) Maximum exposure to loss includes $ 10.0 million of current investments.

(6) Maximum exposure to loss includes $ 10.8 million of current investments and $ 9.3 million in unfunded commitments.

(7) Maximum exposure to loss includes $ 2.7 million of current investments.

(8) Maximum exposure to loss includes $ 4.9 million of current investments and $ 3.1 million in unfunded commitments.

(9) Maximum exposure to loss includes $ 5.1 million of current investments, $ 4.9 million in unfunded commitments and a scenario in which related tax credits of $ 1.5 million are recaptured, totaling $ 11.5 million.

(10) Maximum exposure to loss includes $ 5.0 million of current investments and $ 5.0 million in unfunded commitments.

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

Loans and Allowance for Credit Losses

Categories of loans include:

22 unchanged sentences

Net loans $ 3,691,042 $ 4,125,877

1 Balances include $ 34.0 million and $ 33.5 million that is guaranteed by the U.S.

1 Balances include $ 52.2 million and $ 34.0 million that are guaranteed by the U.S.

government as of December 31, 2025 and December 31, 2024, respectively.

2 Includes carrying value adjustment of $ 19.1 million and $ 22.9 million related to terminated interest rate swaps associated with public finance loans as of December 31, 2025 and December 31, 2024, respectively.

During the twelve months ended December 31, 2025, the Company sold a total of $ 851.2 million of single tenant lease financing loans from which the Company recognized a pre-tax loss on sale of $ 38.2 million recorded within non-interest income.

The transaction was executed as part of an initiative to strengthen the Company’s regulatory capital ratios and improve its interest rate risk position.

Unrelated to this transaction, the Company also sold $ 35.0 million of single tenant lease financing loans which resulted in a gain on sale of $ 0.3 million recorded within non-interest income.

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

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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.

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

Investor Commercial Real Estate:

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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.

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

properties securing the Company’s investor commercial real estate portfolio tend to be diverse in terms of property type.

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.

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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.

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

Franchise Finance:

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Residential Mortgage:

With respect to residential loans that are secured by 1-to-4 family residences and are generally owner occupied, the Company typically established 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

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

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 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 offered 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.

Residential mortgage loans are secured by one‑to‑four family residential properties, which are generally owner‑occupied.

The Company establishes maximum loan‑to‑value ratios and requires private mortgage insurance when those thresholds are exceeded.

Repayment performance is primarily dependent on the financial condition of the borrowers and may be adversely affected by broader economic factors, including employment conditions and changes in residential real estate values.

While the portfolio is concentrated within the Company’s primary market area, risk is mitigated by the relatively small size of individual loans and the dispersion of borrowers across the residential communities served.

Home equity loans and lines of credit are typically secured by a subordinate lien on one‑to‑four family residential properties.

Repayment is primarily dependent upon the borrowers’ financial capacity and may be adversely affected by unemployment levels, changes in residential property values, and other economic conditions within the relevant market areas.

Although the Company has historically offered these products on a nationwide basis, credit risk is evaluated based on borrower characteristics, collateral valuation, and lien position.

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

These loans primarily consist of secured consumer credit products, including loans collateralized by horse trailers or recreational vehicles.

Some other consumer loans also includes credit cards and unsecured loans, such as small installment loans, home improvement loans and certain lines of credit.

Repayment performance is dependent on borrowers’ personal income and overall financial condition, which may be adversely affected by economic factors such as unemployment levels and broader market conditions.

Risk is partially mitigated by the presence of collateral, the relatively small loan size and broad distribution of individual exposures across the markets served.

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.

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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 ACL based on factors and considerations that have not otherwise been fully accounted for.

Qualitative adjustments include, but are not limited to:

The Company includes these as qualitative adjustments to the ACL which 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 international, national, regional and local economic conditions

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

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• 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.

• The effect of other external factors (e.g.

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.

First Internet Bancorp

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(Tabular dollar amounts in thousands except per share data)

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 has not been utilized to identify groups of loans with unique risk characteristics relative to the rest of the portfolio.

Loans that do not share similar risk characteristics are evaluated on an individual basis.

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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.

Modifications may include changes in the amortization terms of the loan, other-than-insignificant payment delays, reductions in interest rates, acceptance of interest only payments, and/or reductions to the outstanding loan balance.

Such loans may be placed on nonaccrual status when there is doubt concerning the full repayment of principal and interest or the loan has been delinquent for a period of 90 days or more.

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.

The calculation 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.

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Policy for Charging Off Loans

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A home improvement loan generally is charged off no later than when it is 90 days past due as to principal or interest.

The following tables present changes in the balance of the ACL during the twelve months ended December 31, 2024 and December 31, 2023, respectively.

The following tables present changes in the balance of the ACL during the twelve months ended December 31, 2025, 2024 and 2023, respectively.

First Internet Bancorp

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Twelve Months Ended December 31, 2025

Balance, Beginning of Period (Credit) Provision Charged to Expense Losses Charged Off Recoveries Balance, End of Period

Allowance for credit losses:

Balance, Beginning of Period Provision (Credit) Charged to Expense Charge-Offs Recoveries Balance, End of Period

Commercial and industrial $ 1,265 $ 809 $ ( 153 ) $ 21 $ 1,942

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Total $ 44,769 $ 71,921 $ ( 63,089 ) $ 2,085 $ 55,686

The ACL was established based on historical loss experience, current conditions, and reasonable and supportable economic forecasts.

These inputs did not indicate emerging credit deterioration within the small business lending or franchise finance portfolios as of December 31, 2024.

However, during 2025, credit performance in these portfolios declined at a pace that exceeded prior expectations, resulting in higher-than-anticipated charge‑offs.

In response to the observed deterioration, the Company increased the allowance allocated to these loan segments and implemented more stringent underwriting and lending standards to address the heightened credit risk.

Twelve Months Ended December 31, 2024

Balance, Beginning of Period Adoption of CECL Provision (Credit) Charged to Expense Losses Charged Off Recoveries Balance, End of Period

Allowance for credit losses:

Balance, Beginning of Period (Credit) Provision Charged to Expense Charge-Offs Recoveries Balance, End of Period

Commercial and industrial $ 2,185 $ ( 928 ) $ — $ 8 $ 1,265

11 unchanged sentences

Total $ 38,774 $ 18,815 $ ( 13,270 ) $ 450 $ 44,769

Prior to the adoption of ASU 2016-13 on January 1, 2023, the Company calculated the allowance for loan losses using the incurred loss methodology.

The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2022.

First Internet Bancorp

2 unchanged sentences

Twelve Months Ended December 31, 2023

Balance, Beginning of Period (Credit) Provision Charged to Expense Losses Charged Off Recoveries Balance, End of Period

Allowance for loan losses:

Allowance for credit losses:

Balance, Beginning of Period Adoption of CECL Provision (Credit) Charged to Expense Losses Charged Off Recoveries Balance, End of Period

Commercial and industrial $ 1,711 $ ( 120 ) $ 7,400 $ ( 7,049 ) $ 243 $ 2,185

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Total $ 31,737 $ 2,962 $ 15,454 $ ( 11,884 ) $ 505 $ 38,774

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.

Accrued interest receivable on loans totaled $ 23.1 million and $ 23.8 million at December 31, 2025 and December 31, 2024, respectively, and is excluded from the estimate of credit losses.

The Company made the accounting policy election to not measure an ACL for accrued interest receivable.

Accrued interest deemed uncollectible will be written off through interest income.

In addition to the ACL, the Company maintains a reserve for off-balance sheet commitments, classified in other liabilities.

This reserve is at a level management believes to be sufficient to absorb losses arising from unfunded loan commitments.

The adequacy of the reserve for unfunded commitments is determined quarterly based on methodology similar to the methodology for determining the ACL.

The following tables details activity in the provision for credit losses on off-balance sheet commitments for the twelve months ended December 31, 2024 and December 31, 2023.

December 31, 2023 Provision for credit losses Balance

The following tables details activity in the provision for credit losses on off-balance sheet commitments for the twelve months ended December 31, 2025, 2024 and 2023.

December 31, 2024 (Benefit) Provision for Credit Losses Balance

December 31, 2025

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(Tabular dollar amounts in thousands except per share data)

Pre-ASC 326 Adoption Impact of ASC 326 Adoption Provision for credit losses Balance

December 31, 2023 Provision (Benefit) for Credit Losses Balance

December 31, 2024

5 unchanged sentences

Construction 2,889 ( 1,321 ) 1,568

Single tenant lease financing — 19 19

Small business lending 541 ( 278 ) 263

Total commercial loans 3,678 ( 1,583 ) 2,095

Consumer loans

Residential mortgage 11 ( 10 ) 1

Home equity 45 ( 10 ) 35

Other consumer 11 ( 3 ) 8

Total consumer loans 67 ( 23 ) 44

Total allowance for off-balance sheet commitments $ 3,745 $ ( 1,606 ) $ 2,139

Pre-ASC 326 Adoption Impact of ASC 326 Adoption (Benefit) Provision for Credit Losses Balance

December 31, 2023

Off-balance sheet commitments

Commercial loans

Commercial and industrial $ — $ 110 $ 123 $ 233

Owner-occupied commercial real estate — — 9 9

Investor commercial real estate — 9 ( 3 ) 6

Construction — 2,193 696 2,889

Healthcare finance — 2 ( 2 ) —

7 unchanged sentences

Total allowance for off-balance sheet commitments $ — $ 2,504 $ 1,241 $ 3,745

The Company utilizes a risk grading matrix to assign a risk grade to each of its commercial loans, which are evaluated annually.

The Company utilizes a risk grading matrix to assign a risk grade to each of its commercial loans, which are evaluated on a continual basis.

A description of the general characteristics of the risk grades is as follows:

4 unchanged sentences

Loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any.

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

• “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 which lacks clear certainty.

1 unchanged sentence

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.

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(Tabular dollar amounts in thousands except per share data)

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

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

December 31, 2025

11 unchanged sentences

Small business lending

20,325 4,277 9,445 34,047 395,977 430,024

Franchise finance 11,641 1,110 24,912 37,663 379,382 417,045

34 unchanged sentences

Commercial and industrial $ 240 $ — $ — $ — $ — $ —

Owner-occupied commercial real estate — — — — — —

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

Healthcare finance 2,596 2,596 — — — —

Small business lending

4 unchanged sentences

Total loans $ 56,387 $ 31,114 $ 2,151 $ 25,955 $ 8,922 $ 2,466

1 Balances include $13.6 million and $4.9 million that are guaranteed by the U.S.

government as of December 31, 2025 and December 31, 2024, respectively.

There was $ 2.4 million and $ 0.7 million in interest income recognized on nonaccrual loans for the twelve months ended December 31, 2025 and December 31, 2024, respectively.

11 unchanged sentences

6,732 — 7,681 14,413 411

Franchise finance — — 3,468 3,468 679

Residential mortgage — 4,893 — 4,893 —

10 unchanged sentences

723 — 8,571 9,294 4,167

Franchise finance — — 3,468 3,468 679

Residential mortgage — 4,083 — 4,083 —

3 unchanged sentences

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, other-than-insignificant payment delays, term extensions and other actions intended to minimize loss and to avoid foreclosure or repossession of collateral.

The Company may agree to modify the contractual terms of a loan to a borrower experiencing financial difficulty as a part of ongoing loss mitigation strategies.

These modifications may include interest rate reductions, principal or interest forgiveness, other-than-insignificant payment delays, term extensions and other actions intended to minimize loss and to avoid foreclosure or repossession of collateral.

The Company had twelve loan modifications made to borrowers experiencing financial difficulty during the twelve months ended December 31, 2025.

The Company had five loan modifications made to borrowers experiencing financial difficulty during the twelve months ended December 31, 2024.

The Company did no t have any loan modifications made to borrowers experiencing financial difficulty during the twelve months ended December 31, 2023.

The following table present loans that were both experiencing financial difficulty and modified during the twelve months ended December 31, 2024.

Twelve Months Ended December 31, 2024 Payment Delay Total Modification by Loan Class % of Class of Loans

The following tables present loans that were both experiencing financial difficulty and modified during the twelve months ended December 31, 2025 and December 31, 2024.

Twelve Months Ended December 31, 2025

Other-Than-Insignificant Payment Delay Total Modification by Loan Class % of Class of Loans

Commercial and industrial $ 350 $ 350 0.2 %

Single tenant lease financing 4,672 4,672 2.1 %

Healthcare finance 2,726 2,726 2.0 %

Small business lending 3,022 3,022 0.7 %

Franchise finance 510 510 0.1 %

Total loans $ 11,280 $ 11,280

Twelve Months Ended December 31, 2024

Other-Than-Insignificant Payment Delay Total Modification by Loan Class % of Class of Loans

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

1 unchanged sentence

Total loans $ 9,297 $ 9,297

The following table describe the financial effect of the modifications made to borrowers experiencing financial difficulty.

As of December 31, 2024, the Company had no commitments to lend additional funds to these borrowers included in the table below.

Twelve Months Ended December 31, 2024 - Payment Delay

Loan Type Financial Effect

Investor commercial real estate Forbearance average of 9 months.

Franchise finance Forbearance average of 7 months.

First Internet Bancorp

2 unchanged sentences

The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

The following table presents the performance of such loans that have been modified in the last twelve months as of December 31, 2024.

The following tables present the performance of such loans that have been modified in the last twelve months as of December 31, 2025 and December 31, 2024.

Twelve Months Ended December 31, 2025

Current 30 - 89 Days

Past Due 90+ Days

Commercial and industrial $ 350 $ — $ —

Single tenant lease financing 4,672 — —

Healthcare finance 1,280 1,446 —

Small business lending 3,022 — —

Franchise finance 510 — —

Total loans $ 9,834 $ 1,446 $ —

Twelve Months Ended December 31, 2024

Current 30 - 89 Days

Past Due 90+ Days

Investor commercial real estate $ 3,731 $ — $ —

1 unchanged sentence

Total loans $ 9,297 $ — $ —

There were four Franchise Finance loans and one Investor CRE loan classified as modifications to borrowers experiencing financial difficulty during the twelve months ended December 31, 2024 with total book balance of $ 9.3 million.

There were no loans classified as modifications to borrowers experiencing financial difficulty during the twelve months ended December 31, 2023.

Other Real Estate Owned

The Company had $ 2.6 million in other real estate owned (“OREO”) as of December 31, 2025, which consisted of three small business lending properties.

The Company had $ 0.3 million in other real estate owned (“OREO”) as of December 31, 2024, which consisted of one residential mortgage property.

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 nine loans totaling $ 2.1 million and one loan totaling $ 0.8 million, in the process of foreclosure at December 31, 2024 and December 31, 2023, respectively.

Accrued Interest Receivable

Accrued interest receivable on loans totaled $ 23.8 million and $ 22.0 million at December 31, 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.

There were eight loans totaling $ 2.5 million and nine loans totaling $ 2.1 million, in the process of foreclosure at December 31, 2025 and December 31, 2024, respectively.

First Internet Bancorp

12 unchanged sentences

There have been no changes in the carrying amount of goodwill for the three years ended December 31, 2025, 2024 and 2023.

Goodwill is tested for impairment on an annual basis as of August 31, or whenever events or changes in circumstances indicate the carrying amount of goodwill exceeds its implied fair value.

The annual test indicated no impairment existed as of August 31, 2024.

No events or changes in circumstances have occurred since the August 31, 2024 annual impairment test that would suggest it was more likely than not goodwill impairment existed.

Goodwill is assessed for impairment annually as of August 31, or more frequently if events occur or circumstances change that indicate an impairment may exist.

When assessing goodwill for impairment, first, a qualitative assessment can be made to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its estimated carrying value.

If the results of the qualitative assessment are not conclusive, a quantitative goodwill test is performed.

Alternatively, a quantitative goodwill test can be performed without performing a qualitative assessment.

Goodwill was assessed for impairment using a quantitative test performed as of August 31, 2025.

The estimated fair value of the reporting unit exceeded the net carrying value, and therefore no goodwill impairment existed as of that date.

However, there is a risk for impairment in the event of declines in general economic, market or business conditions and the resultant effect on forecasted growth rates, or any significant unfavorable change in the Company’s forecasted operations resulting from elevated levels of net charge-offs in the franchise finance and small business lending portfolios.

If current and long-term projections decrease materially, the Company may be required to recognize impairment charges, which could be material to the results of operations.

Servicing Asset

3 unchanged sentences

Beginning balance $ 16,389 $ 10,567 $ 6,255

Originated and purchased servicing 8,359 5,775 3,192

11,870 8,359 5,775

Subtractions:

4 unchanged sentences

Ending balance $ 22,793 $ 16,389 $ 10,567

1 Balance includes $4.1 million of originated servicing asset related to the sale of single tenant lease financing loans sold during 2025.

Loans serviced for others are not included in the consolidated balance sheets.

The unpaid principal balances of these loans serviced for others as of December 31, 2025, 2024 and 2023 are shown in the table below.

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

December 31, 2025 December 31, 2024 December 31, 2023

1 unchanged sentence

SBA guaranteed loans $ 1,120,553 $ 862,089 $ 531,927

Single tenant lease financing 825,207 — —

Total $ 1,945,760 $ 862,089 $ 531,927

Loan servicing revenue totaled $ 8.7 million, $ 6.2 million and $ 3.8 million during the twelve months ended December 31, 2025, 2024 and 2023, respectively.

Loan servicing asset revaluation, which represents paydowns and the

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

change in fair value of the servicing asset, resulted in a $ 2.5 million, $ 1.5 million and $ 1.6 million downward valuation for twelve months ended December 31, 2024, 2023 and 2022, respectively.

Loan servicing asset revaluation, which represents paydowns and the change in fair value of the servicing asset, resulted in a $ 5.5 million, $ 2.5 million and $ 1.5 million downward valuation for the twelve months ended December 31, 2025, 2024 and 2023, respectively.

The fair value of servicing rights is highly sensitive to changes in underlying assumptions.

6 unchanged sentences

Interest-bearing demand deposits 1,120,850 896,661

896,661 402,976

Savings accounts 18,991 19,823

Money market accounts 1,272,845 1,183,789

Fintech - brokered deposits 1

Certificates of deposits 2,004,909 2,133,455

2 unchanged sentences

Time deposits greater than $250 $ 605,255 $ 776,788

1 Fintech - brokered deposits that had been previously classified as brokered deposits were reclassified to interest-bearing demand deposits as of December 31, 2024.

The following table presents time deposit maturities by year as of December 31, 2025.

16 unchanged sentences

The fair value of investment securities pledged to the FHLB was approximately $ 835.2 million and $ 795.0 million as of December 31, 2025 and 2024, respectively.

Based on this collateral and the Company’s holding of FHLB stock, the Company is eligible to borrow up to an additional $ 1.1 billion at year-end 2024.

Based on this collateral and the Company’s holding of FHLB stock, the Company is eligible to borrow up to an additional $ 815.2 million at year-end 2025.

As of December 31, 2025, the Company had $ 150.0 million of putable advance structures with the FHLB in which the FHLB holds a one-time option to put certain advances on a stated exercise date prior to maturity.

Among the Company’s putable advance structures, $ 60.0 million have passed their one-time exercise date, with the next exercise date occurring in 2027.

The Company’s FHLB advances are scheduled to mature according to the following schedule:

Among the Company’s putable advance structures, none have passed their one-time exercise date, with the next exercise date occurring in 2027.

The Company’s FHLB advances are shown below by their contractual maturity dates.

Actual maturities may differ due to the putable advance structures discussed above.

2026 $ 10,000

8 unchanged sentences

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 initially accrued interest at a fixed rate of 6.0 % per year to, but excluding, November 1, 2025, and thereafter at a floating rate equal to three-month Term SOFR plus 5.795 %.

The 2030 Note is scheduled to mature on November 1, 2030.

25 unchanged sentences

The Company has elected to match contributions equal to 100 % up to the first 2 % of employee deferrals and 50 % for employee deferrals above 2 % up to a maximum of 6 %, equating to a maximum match of 4 % of an individual’s eligible earnings, as defined in the plan.

The company match vests immediately.

Discretionary employer-matching contributions begin vesting immediately at a rate of 50 % per year of employment and are fully vested after the completion of two years of employment.

Contributions totaled approximately $ 1.4 million, $ 1.1 million and $ 0.9 million for the twelve months ended December 31, 2025, 2024 and 2023, respectively.

13 unchanged sentences

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”).

Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at grant date.

Forfeitures are recognized as they occur.

Award Activity Under 2022 Plan

4 unchanged sentences

Granted 54,948 34.72 16,009 24.72 — —

Forfeited ( 2,534 ) 24.37 — — — —

Vested ( 28,192 ) 24.32 ( 12,404 ) 31.46 — —

3 unchanged sentences

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.

No awards under the 2013 Plan remain outstanding and our authority to grant new awards under the 2013 Plan terminated upon shareholder approval of the 2022 Plan.

Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at grant date.

Forfeitures are recognized as they occur.

Award Activity Under 2013 Plan

The Company recorded $ 0.3 million, $ 0.4 million and $ 2.0 million of share-based compensation expense for the years ended December 31, 2024, 2023 and 2022, respectively, related to stock-based awards under the 2013 Plan.

The Company recorded less than $ 0.1 million, $ 0.3 million and $ 0.4 million of share-based compensation expense for the years ended December 31, 2025, 2024 and 2023, respectively, related to stock-based awards under the 2013 Plan.

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

The following table summarizes the stock-based award activity under the 2013 Plan for the year ended December 31, 2025:

4 unchanged sentences

Unvested at December 31, 2025 — $ — — $ — — $ —

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

As of December 31, 2024, the total unrecognized compensation cost related to unvested awards was less than $ 0.1 million with a weighted-average expense recognition period of 0.1 years.

At December 31, 2025, there were no unrecognized compensation costs related to unvested stock-based awards under the 2013 Plan.

Directors Deferred Stock Plan

Until January 1, 2014, the Company had a stock compensation plan for non-employee members of the Board of Directors (“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.

11 unchanged sentences

Total $ ( 15,701 ) $ 2,266 $ ( 3,477 )

Income tax provision is reconciled to the statutory 21 % rate applied to pre-tax income.

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

In December 2023, the FASB issued ASU 2023-09, which expands income tax disclosure requirements to include additional information related to the rate reconciliation of our effective tax rates to statutory rates.

The Company adopted ASU 2023-09 on a prospective basis for the year ended December 31, 2025.

December 31, 2025

Amount Percent

federal statutory tax rate $ ( 10,682 ) ( 21.0 %)

State and local income tax, net of federal tax effect 1

( 1,189 ) ( 2.3 %)

Tax credits ( 206 ) ( 0.4 %)

Nontaxable or nondeductible items:

Income from tax-exempt securities and loans ( 3,497 ) ( 6.9 %)

Other ( 127 ) ( 0.3 %)

Total $ ( 15,701 ) ( 30.9 %)

1 The states that contribute to the majority (greater than 50%) of the tax effect in the category include Indiana and Florida for 2025.

The reconciliation of taxes at the federal statutory rate to our provision for income taxes for the years ended December 31, 2024 and 2023, in accordance with the guidance prior to the adoption of ASU 2023-09, was as follows:

Statutory rate times pre-tax income $ 5,784 $ 1,037

22 unchanged sentences

Total deferred tax assets, net $ 27,511 $ 13,053

As of December 31, 2024 and 2023 the Company had federal net operating loss (“NOL”) carryforwards of approximately $ 54.0 million and $ 57.2 million, respectively, and no state NOL carryforwards for December 31, 2024 and $ 8.5 million for December 31, 2023.

As of December 31, 2025 and 2024 the Company had federal net operating loss (“NOL”) carryforwards of approximately $ 102.0 million and $ 54.0 million, respectively, and state NOL carryforwards of $ 31.9 million and $ 0 , respectively.

For federal income tax purposes, the NOL has no expiration period;

12 unchanged sentences

Balance at the beginning of period $ 47,671 $ 45,926

New term loans — 19,139

Additions 1,753 4,956

Repayment of term loans ( 13 ) ( 12 )

New loans and advances 1,875 1,753

Repayment of loans ( 458 ) ( 13 )

Changes in balances of revolving lines of credit ( 6 ) 5

24 unchanged sentences

As permitted by the federal banking regulatory agencies, the Company has elected the option to delay the impact of the day one adoption of ASC 326.

The transition adjustments of $ 4.5 million are 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.

The transition adjustment of $ 4.5 million is phased into the regulatory capital calculations over a three-year period, with 25% of the adjustment recognized in 2023, 50% of the adjustment recognized in 2024, 75% of the adjustment recognized in 2025 and 100% of the adjustment recognized in 2026.

Actual Minimum Capital Required - Basel III Minimum Required to be Considered Well Capitalized

60 unchanged sentences

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.

Fair value is based on a loan-by-loan basis taking into consideration the origination 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 its 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 Swaps

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).

Interest Rate Swap Agreements Back-to-Back

5 unchanged sentences

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).

First Internet Bancorp

34 unchanged sentences

Servicing asset 16,389 — — 16,389

Interest rate swaps assets 5,139 — 5,139 —

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

39 unchanged sentences

Collateral dependent loans $ 336 $ — $ — $ 336

Other real estate owned 2,631 — — 2,631

December 31, 2024

16 unchanged sentences

Discount rate

Other real estate owned 2,631 Fair value of collateral Discount to reflect current market conditions 30 % - 35 %

Fair Value at

5 unchanged sentences

Discount rate 0 % - 25 %

The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying 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.

First Internet Bancorp

1 unchanged sentence

(Tabular dollar amounts in thousands except per share data)

The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying 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.

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.

2 unchanged sentences

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

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 December 31, 2024 or December 31, 2023.

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 December 31, 2025 or December 31, 2024.

Loans Held-for-Sale

11 unchanged sentences

The carrying value of variable rate advances approximates fair value.

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

Subordinated Debt

3 unchanged sentences

The fair value of these financial instruments approximates carrying value.

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 December 31, 2025 and 2024.

First Internet Bancorp

1 unchanged sentence

(Tabular dollar amounts in thousands except per share data)

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 December 31, 2024 and 2023.

The following tables provide the carrying amounts and estimated fair values of the Company's financial instruments at December 31, 2025 and 2024:

31 unchanged sentences

Accrued interest payable 2,495 2,495 2,495 — —

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

Mortgage Banking Activities

4 unchanged sentences

Refer to Note 18 for further information on derivative financial instruments.

During the year ended December 31, 2024, the Company had no mortgage loans held-for-sale or sold into the secondary market.

During the years ended December 31, 2023 and 2022, the Company originated mortgage loans held-for-sale of $ 36.3 million, and $ 388.0 million, respectively, and received $ 46.5 million, and $ 411.5 million from the sale of mortgage loans, respectively, into the secondary market.

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

During the years ended December 31, 2025 and 2024, the Company originated no mortgage loans held-for-sale and did not sell any mortgage loans into the secondary market.

During the year ended December 31, 2023, the Company originated mortgage loans held-for-sale of $ 36.3 million and received $ 46.5 million from the sale of mortgage loans into the secondary market.

During the first quarter 2023, the Company made the decision to exit the residential mortgage business.

10 unchanged sentences

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 uses derivative financial instruments from time to time to help manage exposure to interest rate risk and the effects that changes in interest rates may have on net income and the fair value of assets and liabilities.

The Company enters into interest rate swap agreements as part of its asset/liability management strategy to help manage its interest rate risk position.

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 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 consolidated balance sheets, while interest rate swaps with a negative fair value are reported in accrued expenses and other liabilities in the 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.

4 unchanged sentences

The fair value of these derivatives is based on a discounted cash flow approach.

The IRLCs and forward contracts are not designated as accounting hedges and were recorded at fair value with changes in fair value reflected in noninterest income on the consolidated statements of income.

The fair value of derivative instruments with a positive fair value were reported in accrued income and other assets in the consolidated balance sheets, while derivative instruments with a negative fair value were reported in accrued expenses and other liabilities in the consolidated balance sheets.

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

Carrying amount of the hedged assets Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets

Line item in the consolidated balance sheet in which the hedged item is included

December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023

Securities available-for-sale 1

$ — $ 69,504 $ — $ ( 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.

No amounts were hedged as of December 31, 2024.

The amount of the designated hedged items was $ 50.0 million as of December 31, 2023.

In December 2024, the Company terminated interest rate swaps utilized as cash flow hedges against Federal Home Loan Bank advances, which resulted in swap termination receipts from counterparties of $ 2.9 million.

As the Company had no further liability exposure to the underlying index hedged, the Company reclassified this amount from accumulated other comprehensive loss to the consolidated statements of operations and recognized a gain on termination of interest rate swaps for the year ended December 31, 2024.

In November 2024, the Company’s interest rate swap derivative designated as fair value hedges matured.

As a result, the Company has no remaining fair value hedge exposure at December 31, 2024.

The following table presents 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 December 31, 2023, identified by the underlying interest rate-sensitive instruments

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

December 31, 2023 Weighted Average Remaining Maturity (years) Weighted-Average Rate

Instruments Associated With

Notional Value Fair Value Receive Pay

Securities available-for-sale $ 50,000 0.8 $ 1,153 3 month SOFR 2.33 %

Total swap portfolio at December 31, 2023

$ 50,000 0.8 $ 1,153 3 month SOFR 2.33 %

Given the Company had no further liability exposure to the underlying index hedged, the Company reclassified this amount from accumulated other comprehensive loss to the consolidated statements of income and recognized a gain on termination of interest rate swaps for the year ended December 31, 2024.

In March 2021, the Company terminated the last of layer 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 $ 0.1 million and $ 0.4 million for the years ended December 31, 2024 and 2023, respectively, which was recognized as a reduction to interest income on securities.

The Company had amortization expense totaling less than $ 0.1 million for the years ended December 31, 2025 and 2024, which was recognized as a reduction to interest income on securities.

In June 2020, the Company terminated all fair value hedging relationships associated with loans, which resulted in swap termination payments to counterparties totaling $ 46.1 million.

1 unchanged sentence

During the years ended December 31, 2025 and 2024, amortization expense totaling $ 3.8 million and $ 4.9 million, respectively, related to these previously terminated fair value hedges was recognized as a reduction to interest income on loans.

The following table presents 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 December 31, 2023.

December 31, 2023 Weighted Average Remaining Maturity (years) Weighted-Average Rate

Cash Flow Hedges

Notional Value Fair Value Receive Pay

Interest rate swaps $ 110,000 3.1 $ 3,596 3 month SOFR 2.88 %

Interest rate swaps 40,000 0.4 390 Fed Funds Effective 2.78 %

These derivative financial instruments were entered into for the purpose of managing the interest rate risk of certain assets and liabilities.

As of December 31, 2024, the Company received no cash collateral from counterparties as security for their obligations related to these swap transactions.

As of December 31, 2023, the Company received $ 5.2 million of cash collateral from counterparties as security for their obligations related to these swap transactions.

The Company had no pledged cash collateral as of December 31, 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.

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

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

December 31, 2025 December 31, 2024

(amounts in thousands) Notional

Value Notional

Asset Derivatives

Derivatives designated as hedging instruments

Interest rate swaps associated with securities available-for-sale $ — $ — $ 50,000 $ 1,153

Interest rate swaps associated with liabilities — — 150,000 3,986

Derivatives not designated as hedging instruments

5 unchanged sentences

Total contracts $ 45,050 $ ( 210 ) $ 27,214 $ ( 200 )

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

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

2 unchanged sentences

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 consolidated statements of comprehensive income during the twelve months ended December 31, 2024, 2023 and 2022.

Amount of (Loss) / Gain Recognized in Other Comprehensive Income in the Twelve Months Ended

December 31, 2024 December 31, 2023 December 31, 2022

The Company received no cash collateral from counterparties as security for their obligations related to these swap transactions at December 31, 2025 and 2024.

The Company pledged cash collateral of $ 0.3 million and $ 0 as of December 31, 2025 and 2024, respectively, to counterparties as security for its obligations related to these agreements.

Collateral posted and received is dependent on the market valuation of the underlying hedges.

The following table presents the effects of the Company's cash flow hedge relationships on the consolidated statements of comprehensive (loss) income during the twelve months ended December 31, 2025, 2024 and 2023.

Amount of Loss Recognized in Other Comprehensive (Loss) Income in the Twelve Months Ended

(amounts in thousands) December 31, 2025 December 31, 2024 December 31, 2023

Interest rate swap agreements $ — $ — $ ( 2,566 )

The following table summarizes the periodic changes in the fair value of derivatives not designated as hedging instruments on the consolidated statements of income for the twelve months ended December 31, 2024, 2023 and 2022.

Amount of (Loss) / Gain Recognized in the Twelve Months Ended

December 31, 2024 December 31, 2023 December 31, 2022

Asset Derivatives

Derivatives not designated as hedging instruments

Forward contracts $ — $ — $ 127

The Company had no changes in the fair value of derivatives not designated as hedging instruments on the condensed consolidated statements of operations during the twelve months ended December 31, 2025 and 2024.

The following table summarizes the effect of periodic changes in the fair value of derivatives not designated as hedging instruments on the condensed consolidated statements of operations for the twelve months ended December 31, 2025, 2024 and 2023.

Amount of Loss Recognized in the Twelve Months Ended

(amounts in thousands) December 31, 2025 December 31, 2024 December 31, 2023

Liability Derivatives

2 unchanged sentences

Forward contracts — — ( 119 )

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

The following table presents the effects of the Company's interest rate swap agreements on the consolidated statements of income during the twelve months ended December 31, 2024, 2023 and 2022.

Line item in the consolidated statements of income

The following table presents the effects of the Company's interest rate swap agreements on the condensed consolidated statements of operations during the twelve months ended December 31, 2025, 2024 and 2023.

Line Item in the Condensed Consolidated Statements of Operations

December 31, 2025 December 31, 2024 December 31, 2023

14 unchanged sentences

1 The Company recognized a gain on termination of interest rate swaps for the year ended December 31, 2024.

First Internet Bancorp

Notes to Consolidated Financial Statements

(Tabular dollar amounts in thousands except per share data)

Shareholders’ Equity

2 unchanged sentences

Under the program, the Company repurchased 559,522 shares of common stock, at an average price of $ 19.06 , for a total investment of $ 10.7 million.

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

Under the program, the Company repurchased 27,998 shares of common stock, at an average price of $ 18.64 , for a total investment of $ 0.5 million as of December 31, 2025.

The stock repurchase authorization is scheduled to expire on September 30, 2027.

The stock repurchase authorization may be modified, suspended, or discontinued at any time and does not commit the Company to repurchase shares of its common stock.

The actual number and value of the shares to be purchased, if any, will depend on the performance of the Company’s stock price and other market conditions.

First Internet Bancorp

1 unchanged sentence

(Tabular dollar amounts in thousands except per share data)

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss, included in stockholders' equity, are presented in the table below.

1 unchanged sentence

Balance, January 1, 2023 $ ( 35,831 ) $ ( 3,519 ) $ 5,714 $ ( 33,636 )

Net unrealized holding (losses) gains recorded within other comprehensive income before income tax ( 42,336 ) — 19,091 ( 23,245 )

Reclassification of securities available-for-sale to held-to-maturity — ( 5,402 ) — ( 5,402 )

Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity — 844 — 844

Other comprehensive (loss) income before tax ( 42,336 ) ( 4,558 ) 19,091 ( 27,803 )

Income tax (benefit) provision ( 9,060 ) ( 1,039 ) 4,893 ( 5,206 )

Other comprehensive (loss) income- net of tax ( 33,276 ) ( 3,519 ) 14,198 ( 22,597 )

Balance, December 31, 2022 $ ( 35,831 ) $ ( 3,519 ) $ 5,714 $ ( 33,636 )

Net unrealized holding gains (losses) recorded within other comprehensive income before income tax 7,339 — ( 2,566 ) 4,773

11 unchanged sentences

Balance, December 31, 2024 $ ( 30,413 ) $ ( 2,240 ) $ — $ ( 32,653 )

Net unrealized holding gains recorded within other comprehensive income before income tax $ 15,764 $ — $ — $ 15,764

Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity — 515 — 515

Other comprehensive income before tax 15,764 515 — 16,279

Income tax provision 3,628 128 — 3,756

Other comprehensive income - net of tax 12,136 387 — 12,523

Balance, December 31, 2025 $ ( 18,277 ) $ ( 1,853 ) $ — $ ( 20,130 )

First Internet Bancorp

2 unchanged sentences

Condensed Financial Information (Parent Company Only)

Presented below is condensed financial information as to financial position, results of operations, and cash flows of the Company on a non-consolidated basis:

Presented below is condensed financial information as to the financial position, results of operations, and cash flows of the Company on a non-consolidated basis:

Condensed Balance Sheets

14 unchanged sentences

(Tabular dollar amounts in thousands except per share data)

Condensed Statements of Income

Condensed Statements of Operations

Year Ended December 31,

9 unchanged sentences

Total expenses 9,966 9,476 8,557

Income (loss) before income tax and equity in undistributed net income of subsidiaries 7,429 3,631 ( 382 )

Income before income tax and equity in undistributed net income of subsidiaries 7,808 7,429 3,631

Income tax benefit ( 1,831 ) ( 2,080 ) ( 1,817 )

Income before equity in undistributed net income of subsidiaries 9,639 9,509 5,448

Equity in undistributed net income of subsidiaries 15,767 2,969 34,049

Net income $ 25,276 $ 8,417 $ 35,541

Equity in undistributed net (loss) income of subsidiaries ( 44,807 ) 15,767 2,969

Net (loss) income $ ( 35,168 ) $ 25,276 $ 8,417

First Internet Bancorp

1 unchanged sentence

(Tabular dollar amounts in thousands except per share data)

Condensed Statements of Comprehensive Income

Condensed Statements of Comprehensive (Loss) Income

Year Ended December 31,

2025 2024 2023

Net income $ 25,276 $ 8,417 $ 35,541

Net (loss) income $ ( 35,168 ) $ 25,276 $ 8,417

Other comprehensive income (loss)

Securities available-for-sale

Net unrealized holding (losses) gains on securities available-for-sale recorded within other comprehensive income before income tax ( 1,039 ) 7,339 ( 42,336 )

Income tax (benefit) provision ( 800 ) 1,682 ( 9,060 )

Net effect on other comprehensive (loss) income ( 239 ) 5,657 ( 33,276 )

Net unrealized holding gains (losses) on securities available-for-sale recorded within other comprehensive income before income tax 15,764 ( 1,039 ) 7,339

Income tax provision (benefit) 3,628 ( 800 ) 1,682

Net effect on other comprehensive income (loss) 12,136 ( 239 ) 5,657

Securities held-to-maturity

Reclassification of securities from available-for-sale to held-to-maturity — — ( 5,402 )

Amortization of net unrealized holding losses on securities transferred from available-for-sale to held-to-maturity 515 789 778

Income tax provision (benefit) 90 198 ( 1,039 )

Income tax provision 128 90 198

Net effect on other comprehensive income (loss) 387 699 580

Cash flow hedges

Net unrealized holding (losses) gains on cash flow hedging derivatives recorded within other comprehensive income before income tax ( 1,082 ) ( 2,566 ) 19,091

Net unrealized holding losses on cash flow hedging derivatives recorded within other comprehensive income (loss) before income tax — ( 1,082 ) ( 2,566 )

Reclassification of gain on termination of interest rate swaps — ( 2,904 ) —

Income tax (benefit) provision ( 248 ) ( 590 ) 4,893

Net effect on other comprehensive (loss) income ( 3,738 ) ( 1,976 ) 14,198

Total other comprehensive (loss) income ( 3,278 ) 4,261 ( 22,597 )

Comprehensive income $ 21,998 $ 12,678 $ 12,944

Income tax benefit — ( 248 ) ( 590 )

Net effect on other comprehensive loss — ( 3,738 ) ( 1,976 )

Total other comprehensive income (loss) 12,523 ( 3,278 ) 4,261

Comprehensive (loss) income $ ( 22,645 ) $ 21,998 $ 12,678

First Internet Bancorp

5 unchanged sentences

Operating activities

Net income $ 25,276 $ 8,417 $ 35,541

Net (loss) income $ ( 35,168 ) $ 25,276 $ 8,417

Adjustments to reconcile net income to net cash provided by operating activities:

7 unchanged sentences

Purchase of equity investments ( 7,723 ) ( 7,221 ) ( 3,578 )

Net cash (used in) provided by investing activities ( 7,221 ) ( 3,578 ) ( 2,727 )

Net cash used in investing activities ( 7,723 ) ( 7,221 ) ( 3,578 )

Financing activities

2 unchanged sentences

Other, net ( 262 ) ( 182 ) ( 153 )

Net cash (used in) provided by financing activities ( 2,543 ) ( 11,649 ) ( 30,347 )

Net cash used in by financing activities ( 2,870 ) ( 2,543 ) ( 11,649 )

Net increase (decrease) in cash and cash equivalents 1,511 1,404 ( 10,666 )

10 unchanged sentences

Additionally, the CODM reviews budget-to-actual variances to analyze these profit measures as a single operating segment.

The function of CODM is performed by the Finance Committee.

The function of the CODM is performed by the Finance Committee.

This Committee consists of the highest level of management that is responsible for the Company’s overall resource allocation and performance.

4 unchanged sentences

Recent Accounting Pronouncements

Recently Adopted Accounting Standards

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)

Accounting for Investments in Tax Credit

Structures Using the Proportional Amortization Method (March 2023)

In March 2023, the FASB issued ASU No.

1 unchanged sentence

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 adopted this guidance in 2024 and it did not have a material impact on its consolidated financial statements.

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 2023-09 - Income Taxes (Topic 740):

3 unchanged sentences

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 consolidated financial statements.

The Company adopted this guidance on January 1, 2025 and it did not have a material impact on its consolidated financial statements.

Newly Issued But Not Yet Effective Accounting Standards

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

7 unchanged sentences

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

ASU 2025-08 - Financial Instruments - Credit Losses (Topic 326) - Purchased Loans (November 2025)

In November 2025, the FASB issued ASU No.

2025-08, Financial Instruments - Credit Losses (Topic 326) - Purchased Loans.

This ASU changes the accounting for certain acquired purchased seasoned loans ("PSL") by applying the gross‑up method, which records an allowance for expected credit losses at acquisition as an adjustment to amortized cost basis rather than a day one provision through earnings.

The guidance is intended to simplify post‑acquisition accounting, reduce inconsistency between PCD and non-PCD loans, and eliminate day one credit loss expense for in‑scope PSLs.

The amendments are effective for public business entities for annual periods beginning after December 15, 2026, with early adoption permitted.

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

ASU 2025-09 - Derivatives and Hedging (Topic 815) - Hedge Accounting Improvements (November 2025)

In November 2025, the FASB issued ASU No.

2025-09 Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements.

This ASU intends to better align hedge accounting with entities’ risk management activities.

Key amendments include expanding the ability to group forecasted transactions with similar (rather than identical) risk exposure, establishing a model for hedging interest payments on choose‑your‑rate debt, expanding hedge accounting for certain forecasted nonfinancial transactions, and updating guidance on net written options and foreign‑currency‑denominated debt.

The amendments are effective for public business entities for annual periods beginning after December 15, 2026, with early adoption permitted.

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

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 9A. Controls and Procedures