First Internet Bancorp announced its financial and operational results for the third quarter ended September 30, 2024. The company reported net interest income of $21.8 million, an increase from $21.3 million in the second quarter of 2024 and $17.4 million in the third quarter of 2023. Total interest income for the quarter reached $75.0 million, marking a 5.7% increase compared to the second quarter of 2024 and a 19.0% increase compared to the third quarter of 2023.
The net interest margin (NIM) for the third quarter was 1.62%, a decrease from 1.67% in the prior quarter, but an increase from 1.39% in the third quarter of 2023. This decline was attributed to carrying higher cash balances, which negatively impacted NIM by 6 basis points, and early loan payoff activity, which also had a negative impact of 6 basis points. Noninterest income saw an increase to $12.0 million, up from $11.0 million in the second quarter, primarily driven by a 19.8% increase in gain on sale of loans, totaling $9.9 million, mostly from SBA 7(a) guaranteed loans.
Total loans as of September 30, 2024, grew to $4.0 billion, an increase of 1.9% from June 30, 2024. However, asset quality showed signs of deterioration, with total delinquencies 30 days or more past due rising to 0.75% of total loans, up from 0.56% in the linked quarter, mainly in franchise finance and small business lending. Nonperforming loans increased to $22.5 million, or 0.56% of total loans, from $13.0 million in the second quarter of 2024, with net charge-offs of $1.5 million primarily from small business lending.
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