First Internet Bancorp announced its financial results for the fourth quarter and full year ended December 31, 2024. For the full year 2024, net income and diluted earnings per share tripled compared to 2023, driven by growth in net interest income and increased gain on sale revenue from small business lending. Total adjusted revenue growth for the year was almost 30%, outpacing expense increases.
In the fourth quarter of 2024, net interest income rose to $23.6 million, up from $21.8 million in the third quarter, with the net interest margin (NIM) expanding to 1.67% from 1.62%. The weighted-average cost of new CDs was 4.23%, 78 basis points lower than maturing CDs, contributing to declining deposit costs. Noninterest income reached $15.9 million, including $4.7 million from prepayment and terminated interest rate swap gains related to FHLB advance paydowns.
Total loans grew to $4.2 billion as of December 31, 2024, an increase of 3.3% from the prior quarter, with strong commercial loan growth. However, asset quality deteriorated further, with nonperforming loans increasing to $28.4 million, or 0.68% of total loans, up from $22.5 million. Net charge-offs were significantly elevated at $9.4 million, primarily due to actions taken to resolve problem small business lending loans, leading to a provision for credit losses of $7.2 million for the quarter.
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