8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8‑K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): July 22, 2020

First Internet Bancorp
(Exact Name of Registrant as Specified in Its Charter)
Indiana
(State or Other Jurisdiction of Incorporation)
001-35750	20-3489991
(Commission File Number)	(IRS Employer Identification No.)
11201 USA Parkway	46037
Fishers, Indiana
(Address of Principal Executive Offices)	(Zip Code)
(317) 532-7900
(Registrant's Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbols	Name of each exchange on which registered
Common Stock, without par value	INBK	The Nasdaq Stock Market LLC
6.0% Fixed to Floating Subordinated Notes due 2026	INBKL	The Nasdaq Stock Market LLC
6.0% Fixed to Floating Subordinated Notes due 2029	INBKZ	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

                 Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations and Financial Condition

On July 22, 2020, First Internet Bancorp (the "Company") issued a press release announcing financial results for the quarter ended June 30, 2020. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated by reference herein.

On July 23, at 12:00 p.m. (Eastern Time), the Company will host a conference call and webcast to discuss financial results for the quarter ended June 30, 2020. The electronic presentation slides, which will accompany the call and webcast, are furnished as Exhibit 99.2 and are incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits

Number	Description	Method of filing
99.1	Press release dated July 22, 2020	Furnished herewith
99.2	Presentation Slides dated July 22, 2020	Furnished herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated:	July 22, 2020
FIRST INTERNET BANCORP
By:	/s/ Kenneth J. Lovik
	Kenneth J. Lovik, Executive Vice President & Chief Financial Officer

EX-99.1

First Internet Bancorp Reports Second Quarter 2020 Results

Highlights for the second quarter include:

•Total revenue of $19.4 million, net income of $3.9 million and diluted earnings per share of $0.40

•Cost of interest-bearing deposits decreased 30 bps from the first quarter

•Accelerated SBA platform build-out through further sales and operations hires

•

•As of July 17, 2020, loan balances of $365.8 million, or 12.6% of total loans, remained on deferral programs, down from a peak of $647.2 million, or 22.4%, in late May

Fishers, Indiana, July 22, 2020 – First Internet Bancorp (the “Company”) (Nasdaq: INBK), the parent company of First Internet Bank (the “Bank”), announced today financial and operational results for the second quarter of 2020. Net income for the second quarter of 2020 was $3.9 million, or $0.40 diluted earnings per share. This compares to net income of $6.0 million, or $0.62 diluted earnings per share, for the first quarter of 2020, and net income of $6.1 million, or $0.60 diluted earnings per share, for the second quarter of 2019.

“Throughout the COVID-19 pandemic, we have focused on our customers whose families and businesses have been impacted by the virus,” said David Becker, Chairman, President and Chief Executive Officer. “For many borrowers, we were able to provide peace of mind in uncertain times by deferring loan payments for 60-90 days. And, because we have always served our nationwide customer base remotely, we were able to assist our customers when they needed us most, without missing a beat, even as we worked to transition our associates to telework. We have already seen a significant reduction in deferrals, and all of our borrowers coming off deferrals have resumed normal payment schedules.

“In the second quarter, our overall credit quality remained solid. Our direct-to-consumer mortgage business produced another quarter of strong results and has a healthy pipeline as we begin the third quarter. We continue to expand our national SBA platform, adding to our already strong and talented team of professionals, and we are excited about the near-term outlook for this government-guaranteed lending business.

“In addition, our efforts on the deposit side of our balance sheet continued to produce results as we shifted the mix of our deposits while reducing interest expense. We believe that we still have significant opportunities to reprice our deposits lower while maintaining relatively stable asset yields, and these bode well for our net interest income and net interest margin in future periods.

“We are well-capitalized and have the financial strength to serve our clients during this public health crisis. I would like to thank the entire First Internet team for their resilience and hard work during this challenging time,” Becker concluded.

Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2020 was $14.4 million, compared to $15.0 million for the first quarter of 2020 and $16.1 million for the second quarter of 2019. On a fully-taxable equivalent basis, net interest income for the second quarter was $15.9 million, compared to $16.6 million for the first quarter of 2020 and $17.7 million for the second quarter of 2019.

Total interest income for the second quarter of 2020 was $34.2 million, a decrease of 5.6%, compared to the first quarter of 2020, and a decrease of 7.1% compared to the second quarter of 2019. On a fully-taxable equivalent basis, total interest income for the second quarter was $35.7 million, a decrease of 5.6% compared to the first quarter of 2020, and a decrease of 7.3% compared to the second quarter of 2019.

Pandemic Impact: Interest income declined during the second quarter following the Federal Reserve rate cuts in the first quarter of 2020, which negatively impacted the yields earned on variable rate loans and securities as well as cash balances. Furthermore, market uncertainty encouraged a continued flight to safety for consumers and small businesses. Rapid growth in deposit balances led to an increase in average cash balances of $152.8 million quarter-over-quarter.

The decline in short term interest rates reduced the yield earned on the loan portfolio by 11 bps to 4.00% as compared to the prior quarter. In total, the yield on interest-earning assets for the second quarter of 2020 declined to 3.24% from 3.62% in the prior quarter.

Total interest expense for the second quarter of 2020 was $19.8 million, a decrease of 6.7% compared to the first quarter of 2020 and a decrease of 4.5% compared to the second quarter of 2019. The decrease compared to the linked quarter was due mainly to a decline of 30 bps in the cost of interest-bearing deposits, partially offset by an increase in the average balance of these deposits. The decrease in deposit costs reflects a continued decline in the rates paid on deposits as well as a shift in the deposit mix.

During the second quarter of 2020, the cost of money market deposits decreased by 43 bps while the average balance of these deposits grew $222.5 million, or 25.7%. The Company lowered money market rates 60-70 bps throughout the quarter.

Furthermore, the cost of certificates and brokered deposits decreased 18 bps while balances decreased by $62.2 million, or 3.0%. During the second quarter, new certificates and brokered deposits were originated at a weighted average cost of 1.08% while maturing deposits had a weighted average cost of 2.64%.

Net interest margin (“NIM”) was 1.37% for the second quarter of 2020, compared to 1.50% for the first quarter of 2020 and 1.73% for the second quarter of 2019. On a fully-taxable equivalent basis, NIM decreased 15 bps to 1.50% for the second quarter of 2020, from 1.65% for the first quarter of 2020, and was down 41 bps from 1.91% for the second quarter of 2019. The decrease in fully-taxable equivalent NIM compared to the linked quarter was due mainly to the decline in loan yields, which had a negative impact of 24 bps, as well as lower yields earned on securities and cash balances, which each had a negative impact of 7 bps. These were partially offset by deposit costs, which had a positive impact of 23 bps.

Noninterest Income

Noninterest income for the second quarter of 2020 was $5.0 million, down from $6.2 million for the first quarter of 2020, and up from $3.5 million for the second quarter of 2019. The decrease compared to the first quarter of 2020 was driven primarily by lower gain on sale of loans sold during the quarter and a modest decrease in revenue from mortgage banking activities.

Pandemic Impact: Due to market conditions, the Company did not sell any public finance, single tenant lease financing or portfolio residential mortgage loans in the second quarter. Secondary market volatility early in the quarter led to a modest decrease in mortgage banking revenue; however, the secondary market has stabilized and origination activity is strong going into the third quarter.

The Company sold $11.5 million of U.S. Small Business Administration (“SBA”) 7(a) guaranteed loans at a net gain of $0.8 million in the second quarter of 2020, representing continued growth in this line of business with a robust pipeline heading into the third quarter.

Noninterest Expense

Noninterest expense for the second quarter of 2020 was $13.2 million, compared to $13.5 million for the first quarter of 2020 and $11.7 million for the second quarter of 2019. The decrease from the first quarter of 2020 was due primarily to lower consulting and professional fees, loan expenses and deposit insurance premium, partially offset by an increase in other expense.

Pandemic Impact: In an effort to prevent the spread of COVID-19 in its facilities, the Company incurred costs in the second quarter to enable its employees to work remotely and to promote social distancing and enhanced disinfection for those employees who continued to work from the Company’s offices. The majority of these costs will be amortized over future periods. The Company also made a $250,000 charitable contribution to assist small businesses and nonprofits address the economic challenges of the COVID-19 pandemic.

Income Taxes

The Company reported an income tax benefit of $0.3 million for the second quarter of 2020 compared to income tax expense of $0.3 million and an effective tax rate of 4.2% for the first quarter of 2020 and income tax expense of $0.3 million and an effective tax rate of 5.3% for the second quarter of 2019. The income tax benefit was primarily due to the decrease in pre-tax earnings compared to the linked quarter.

Loans and Credit Quality

Total loans as of June 30, 2020 were $3.0 billion, an increase of $81.6 million, or 2.8%, compared to March 31, 2020, and an increase of $112.5 million, or 3.9%, compared to June 30, 2019. Total commercial loan balances were $2.4 billion as of June 30, 2020, an increase of $98.8 million, or 4.3%, compared to March 31, 2020, and an increase of $203.5 million, or 9.3%, compared to June 30, 2019.

Pandemic Impact: The Company originated 449 SBA Paycheck Protection Plan (“PPP”) loans totaling $58.9 million in the second quarter, accounting for a significant portion of the quarterly growth. Pursuant to terms in the CARES Act and the PPP Flexibility Act, payments on these loans are currently deferred. PPP loans are fully guaranteed by the SBA.

Total consumer loan balances were $523.0 million as of June 30, 2020, a decrease of $16.2 million, or 3.0%, compared to March 31, 2020, and a decrease of $116.8 million, or 18.3%, compared to June 30,

2019. The decline in consumer loan balances from March 31, 2020 was due primarily to increased prepayment activity in the residential mortgage loan portfolio.

Total delinquencies 30 days or more past due decreased to 0.25% of total loans as of June 30, 2020, down from 0.32% as of March 31, 2020 and up slightly from 0.24% as of June 30, 2019. The decrease in delinquencies compared to the linked quarter was due primarily to a decline in delinquent residential mortgage loans. Overall credit quality remained relatively stable as nonperforming loans to total loans was 0.28% as of June 30, 2020, compared to 0.26% at March 31, 2020 and 0.19% as of June 30, 2019.

The allowance for loan losses as a percentage of total loans was 0.82% as of June 30, 2020, or 0.84% when excluding SBA PPP loans, compared to 0.79% as of March 31, 2020 and 0.70% as of June 30, 2019.

Pandemic Impact: During the quarter, the Company made additional adjustments to qualitative factors in its allowance model to reflect the continued economic uncertainty resulting from the COVID-19 pandemic. As a result, both the amount of the allowance for loan

losses and the allowance as a percentage of total loans increased compared to March 31, 2020.

Net charge-offs of $0.9 million were recognized during the second quarter of 2020, resulting in net charge-offs to average loans of 0.12%, compared to 0.06% for the first quarter of 2020 and 0.04% for the second quarter of 2019. Compared to the prior quarter, the increase in net charge-offs was due primarily to a $0.7 million charge-off in the healthcare finance portfolio, partially offset by an increase in recoveries.

The provision for loan losses in the second quarter of 2020 was $2.5 million, compared to $1.5 million for the first quarter of 2020 and $1.4 million for the second quarter of 2019. The increase of $1.0 million, or 70.5%, compared to the linked quarter was due primarily to the adjustments to the qualitative factors in the allowance model discussed above and, to a lesser extent, the charge-off in the healthcare finance portfolio.

Capital

As of June 30, 2020, total shareholders’ equity was $307.7 million, an increase of $2.6 million, or 0.8%, compared to March 31, 2020, primarily due to the net income earned during the quarter, partially offset by an increase in accumulated other comprehensive loss. Book value per common share increased to $31.40 as of June 30, 2020, up from $31.13 as of March 31, 2020, and up from $29.56 as of June 30, 2019. Tangible book value per share at June 30, 2020 was $30.92, up from $30.65 and up from $29.10, each as of the same reference dates.

The following table presents the Company’s and the Bank’s regulatory and other capital ratios as of June 30, 2020.

	As of June 30, 2020
	Company	Bank
Total shareholders’ equity to assets	7.12%	7.85%
Tangible common equity to tangible assets 1	7.01%	7.75%
Tier 1 leverage ratio 2	7.50%	8.22%
Common equity tier 1 capital ratio 2	10.97%	12.05%
Tier 1 capital ratio 2	10.97%	12.05%
Total risk-based capital ratio 2	14.16%	12.88%
1 This information represents a non-GAAP financial measure. For a discussion of non-GAAP financial measures, see the section below entitled "Non-GAAP Financial Measures."
2 Regulatory capital ratios are preliminary pending filing of the Company's and the Bank's regulatory reports.

Conference Call and Webcast

The Company will host a conference call and webcast at 12:00 p.m. Eastern Time on Thursday, July 23, 2020 to discuss its quarterly financial results. The call can be accessed via telephone at (888) 348-3664. A recorded replay can be accessed through August 23, 2020 by dialing (877) 344-7529; passcode: 10145915.

Additionally, interested parties can listen to a live webcast of the call on the Company's website at www.firstinternetbancorp.com. An archived version of the webcast will be available in the same location shortly after the live call has ended.

About First Internet Bancorp

First Internet Bancorp is a bank holding company with assets of $4.3 billion as of June 30, 2020. The Company’s subsidiary, First Internet Bank, opened for business in 1999 as an industry pioneer in the branchless delivery of banking services. The Bank provides consumer and small business deposit, consumer loan, residential mortgage, and specialty finance services nationally as well as commercial real estate loans,

commercial and industrial loans, SBA financing and treasury management services in select geographies. First Internet Bancorp’s common stock trades on the Nasdaq Global Select Market under the symbol “INBK” and is a component of the Russell 2000® Index. Additional information about the Company is available at www.firstinternetbancorp.com and additional information about the Bank, including its products and services, is available at www.firstib.com.

Forward-Looking Statements

This press release may contain forward-looking statements with respect to the financial condition, results of operations, trends in lending policies, plans, objectives, future performance or business of the Company. Forward-looking statements are generally identifiable by the use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “outlook,” “pending,” “plan,” “position,” “preliminary,” “remain,” “should,” “will,” “would” or other similar expressions. Forward-looking statements are not a guarantee of future performance or results, are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the information in the forward-looking statements. The COVID-19 pandemic crisis is adversely affecting us, our customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects remains uncertain. Continued deterioration in general business and economic conditions, including further increases in unemployment rates, or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, lead to a tightening of credit, and further increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to COVID-19, could affect us in substantial and unpredictable ways. Other factors that may cause such differences include: failures or breaches of or interruptions in the communications and information systems on which we rely to conduct our business; failure of our plans to grow our commercial real estate, commercial and industrial, public finance, SBA and healthcare finance loan portfolios; competition with national, regional and community financial institutions; the loss of any key members of senior management; fluctuations in interest rates; general economic conditions; risks relating to the regulation of financial institutions; and other factors identified in reports we file with the U.S. Securities and Exchange Commission. All statements in this press release, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, average tangible common equity and return on average tangible common equity, total interest income – FTE, net interest income – FTE, net interest margin – FTE and allowance for loan losses to loans, excluding PPP loans, are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the table at the end of this release under the caption “Reconciliation of Non-GAAP Financial Measures.”

Contact Information:
Investors/Analysts	Media
Paula Deemer	Nicole Lorch
Director of Corporate Administration	Executive Vice President & Chief Operating Officer
(317) 428-4628	(317) 532-7906
investors@firstib.com	nlorch@firstib.com

First Internet Bancorp
Summary Financial Information (unaudited)
Dollar amounts in thousands, except per share data
	Three Months Ended									Six Months Ended
	June 30, 2020			March 31, 2020			June 30, 2019			June 30, 2020			June 30, 2019
Net income	$	3,932		$	6,019		$	6,121		$	9,951		$	11,817
Per share and share information
Earnings per share - basic	$	0.40		$	0.62		$	0.60		$	1.02		$	1.16
Earnings per share - diluted	0.40			0.62			0.60			1.02			1.16
Dividends declared per share	0.06			0.06			0.06			0.12			0.12
Book value per common share	31.40			31.13			29.56			31.40			29.56
Tangible book value per common share 1	30.92			30.65			29.10			30.92			29.10
Common shares outstanding	9,799,047			9,801,825			10,016,458			9,799,047			10,016,458
Average common shares outstanding:
Basic	9,768,227			9,721,485			10,148,285			9,798,528			10,182,770
Diluted	9,768,227			9,750,528			10,148,285			9,802,427			10,186,833
Performance ratios
Return on average assets	0.37		%	0.59		%	0.65		%	0.47		%	0.64		%
Return on average shareholders' equity	5.15		%	7.78		%	8.26		%	6.48		%	8.09		%
Return on average tangible common equity 1	5.23		%	7.90		%	8.39		%	6.58		%	8.22		%
Net interest margin	1.37		%	1.50		%	1.73		%	1.43		%	1.79		%
Net interest margin - FTE 1,2	1.50		%	1.65		%	1.91		%	1.58		%	1.97		%
Capital ratios 3
Total shareholders' equity to assets	7.12		%	7.32		%	7.48		%	7.12		%	7.48		%
Tangible common equity to tangible assets 1	7.01		%	7.22		%	7.37		%	7.01		%	7.37		%
Tier 1 leverage ratio	7.50		%	7.82		%	8.06		%	7.50		%	8.06		%
Common equity tier 1 capital ratio	10.97		%	10.78		%	11.08		%	10.97		%	11.08		%
Tier 1 capital ratio	10.97		%	10.78		%	11.08		%	10.97		%	11.08		%
Total risk-based capital ratio	14.16		%	13.90		%	14.31		%	14.16		%	14.31		%
Asset quality
Nonperforming loans	$	8,195		$	7,443		$	5,386		$	8,195		$	5,386
Nonperforming assets	10,304			9,622			8,041			10,304			8,041
Nonperforming loans to loans	0.28		%	0.26		%	0.19		%	0.28		%	0.19		%
Nonperforming assets to total assets	0.24		%	0.23		%	0.20		%	0.24		%	0.20		%
Allowance for loan losses to:
Loans	0.82		%	0.79		%	0.70		%	0.82		%	0.70		%
Loans, excluding PPP loans	0.84		%	0.79		%	0.70		%	0.84		%	0.70		%
Nonperforming loans	298.5		%	307.1		%	370.9		%	298.5		%	370.9		%
Net charge-offs to average loans	0.12		%	0.06		%	0.04		%	0.09		%	0.04		%
Average balance sheet information
Loans	$	2,943,165		$	2,931,108		$	2,889,478		$	2,937,136		$	2,825,178
Total securities	657,622			630,879			558,352			644,251			540,905
Other earning assets	594,296			415,927			248,996			505,111			247,871
Total interest-earning assets	4,241,690			4,024,800			3,723,424			4,133,245			3,634,630
Total assets	4,330,174			4,099,932			3,805,021			4,215,053			3,716,755
Noninterest-bearing deposits	73,758			60,456			42,566			67,107			42,558
Interest-bearing deposits	3,270,720			3,089,045			2,879,007			3,179,882			2,804,257
Total deposits	3,344,478			3,149,501			2,921,573			3,246,989			2,846,815
Shareholders' equity	306,868			311,005			297,148			308,937			294,530

¹ Refer to "Non-GAAP Financial Measures" section above and "Reconciliation of Non-GAAP Financial Measures" below

² On a fully-taxable equivalent (“FTE”) basis assuming a 21% tax rate

³ Regulatory capital ratios are preliminary pending filing of the Company's regulatory reports

First Internet Bancorp
Condensed Consolidated Balance Sheets (unaudited)
Amounts in thousands
	June 30, 2020		March 31, 2020		June 30, 2019
Assets
Cash and due from banks	$	7,016	$	5,726	$	5,638
Interest-bearing deposits	491,603		345,542		342,660
Securities available-for-sale, at fair value	589,017		608,682		522,334
Securities held-to-maturity, at amortized cost	68,295		66,331		35,826
Loans held-for-sale	38,813		52,394		30,642
Loans	2,973,674		2,892,093		2,861,156
Allowance for loan losses	(24,465)		(22,857)		(19,976)
Net loans	2,949,209		2,869,236		2,841,180
Accrued interest receivable	21,093		16,960		18,887
Federal Home Loan Bank of Indianapolis stock	25,650		25,650		25,650
Cash surrender value of bank-owned life insurance	37,474		37,238		36,527
Premises and equipment, net	23,939		18,883		14,405
Goodwill	4,687		4,687		4,687
Servicing asset	2,522		2,415		—
Other real estate owned	2,065		2,065		2,619
Accrued income and other assets	63,217		112,337		77,774
Total assets	$	4,324,600	$	4,168,146	$	3,958,829
Liabilities
Noninterest-bearing deposits	$	82,864	$	70,562	$	44,040
Interest-bearing deposits	3,297,925		3,107,944		2,962,223
Total deposits	3,380,789		3,178,506		3,006,263
Advances from Federal Home Loan Bank	514,913		514,911		514,906
Subordinated debt	69,681		69,605		69,375
Accrued interest payable	1,073		3,293		2,930
Accrued expenses and other liabilities	50,433		96,704		69,235
Total liabilities	4,016,889		3,863,019		3,662,709
Shareholders' equity
Voting common stock	220,418		219,893		224,244
Retained earnings	108,431		105,100		87,454
Accumulated other comprehensive loss	(21,138)		(19,866)		(15,578)
Total shareholders' equity	307,711		305,127		296,120
Total liabilities and shareholders' equity	$	4,324,600	$	4,168,146	$	3,958,829

First Internet Bancorp
Condensed Consolidated Statements of Income (unaudited)
Amounts in thousands, except per share data
	Three Months Ended						Six Months Ended
	June 30, 2020		March 31, 2020		June 30, 2019		June 30, 2020		June 30, 2019
Interest income
Loans	$	29,730	$	30,408	$	30,842	$	60,138	$	60,060
Securities - taxable	3,276		3,619		3,540		6,895		6,864
Securities - non-taxable	457		572		668		1,029		1,352
Other earning assets	759		1,645		1,794		2,404		3,567
Total interest income	34,222		36,244		36,844		70,466		71,843
Interest expense
Deposits	15,763		17,208		17,147		32,971		32,533
Other borrowed funds	4,033		4,018		3,592		8,051		6,961
Total interest expense	19,796		21,226		20,739		41,022		39,494
Net interest income	14,426		15,018		16,105		29,444		32,349
Provision for loan losses	2,491		1,461		1,389		3,952		2,674
Net interest income after provision for loan losses	11,935		13,557		14,716		25,492		29,675
Noninterest income
Service charges and fees	182		212		225		394		461
Loan servicing revenue	255		251		—		506		—
Loan servicing asset revaluation	(90)		(179)		—		(269)		—
Mortgage banking activities	3,408		3,668		2,664		7,076		4,281
Gain (loss) on sale of loans	762		1,801		(66)		2,563		(170)
Gain (loss) on sale of securities	—		41		(458)		41		(458)
Other	456		417		1,089		873		1,712
Total noninterest income	4,973		6,211		3,454		11,184		5,826
Noninterest expense
Salaries and employee benefits	7,789		7,774		6,642		15,563		12,963
Marketing, advertising and promotion	411		375		466		786		935
Consulting and professional fees	932		1,177		835		2,109		1,649
Data processing	339		375		328		714		645
Loan expenses	399		599		292		998		606
Premises and equipment	1,602		1,625		1,497		3,227		2,997
Deposit insurance premium	435		485		747		920		1,302
Other	1,337		1,076		902		2,413		1,721
Total noninterest expense	13,244		13,486		11,709		26,730		22,818
Income before income taxes	3,664		6,282		6,461		9,946		12,683
Income tax (benefit) provision	(268)		263		340		(5)		866
Net income	$	3,932	$	6,019	$	6,121	$	9,951	$	11,817
Per common share data
Earnings per share - basic	$	0.40	$	0.62	$	0.60	$	1.02	$	1.16
Earnings per share - diluted	$	0.40	$	0.62	$	0.60	$	1.02	$	1.16
Dividends declared per share	$	0.06	$	0.06	$	0.06	$	0.12	$	0.12

All periods presented have been reclassified to conform to the current period classification

First Internet Bancorp
Average Balances and Rates (unaudited)
Dollar amounts in thousands
	Three Months Ended
	June 30, 2020						March 31, 2020						June 30, 2019
	Average Balance		Interest / Dividends		Yield / Cost		Average Balance		Interest / Dividends		Yield / Cost		Average Balance		Interest / Dividends		Yield / Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale 1	$	2,989,772	$	29,730	4.00	%	$	2,977,994	$	30,408	4.11	%	$	2,916,076	$	30,842	4.24	%
Securities - taxable	560,947		3,276		2.35	%	531,046		3,619		2.74	%	460,816		3,540		3.08	%
Securities - non-taxable	96,675		457		1.90	%	99,833		572		2.30	%	97,536		668		2.75	%
Other earning assets	594,296		759		0.51	%	415,927		1,645		1.59	%	248,996		1,794		2.89	%
Total interest-earning assets	4,241,690		34,222		3.24	%	4,024,800		36,244		3.62	%	3,723,424		36,844		3.97	%
Allowance for loan losses	(23,388)						(22,059)						(19,275)
Noninterest-earning assets	111,872						97,191						100,872
Total assets	$	4,330,174					$	4,099,932					$	3,805,021
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits	$	137,487	$	237	0.69	%	$	122,925	$	219	0.72	%	$	117,665	$	214	0.73	%
Savings accounts	37,204		92		0.99	%	30,345		78		1.03	%	37,507		106		1.13	%
Money market accounts	1,089,063		3,541		1.31	%	866,605		3,743		1.74	%	592,106		2,995		2.03	%
Certificates and brokered deposits	2,006,966		11,893		2.38	%	2,069,170		13,168		2.56	%	2,131,729		13,832		2.60	%
Total interest-bearing deposits	3,270,720		15,763		1.94	%	3,089,045		17,208		2.24	%	2,879,007		17,147		2.39	%
Other borrowed funds	584,543		4,033		2.77	%	584,465		4,018		2.76	%	548,932		3,592		2.62	%
Total interest-bearing liabilities	3,855,263		19,796		2.07	%	3,673,510		21,226		2.32	%	3,427,939		20,739		2.43	%
Noninterest-bearing deposits	73,758						60,456						42,566
Other noninterest-bearing liabilities	94,285						54,961						37,368
Total liabilities	4,023,306						3,788,927						3,507,873
Shareholders' equity	306,868						311,005						297,148
Total liabilities and shareholders' equity	$	4,330,174					$	4,099,932					$	3,805,021
Net interest income			$	14,426					$	15,018					$	16,105
Interest rate spread					1.17	%					1.30	%					1.54	%
Net interest margin					1.37	%					1.50	%					1.73	%
Net interest margin - FTE 2,3					1.50	%					1.65	%					1.91	%

¹ Includes nonaccrual loans

² On a fully-taxable equivalent (“FTE”) basis assuming a 21% tax rate

³ Refer to "Non-GAAP Financial Measures" section above and "Reconciliation of Non-GAAP Financial Measures" below

First Internet Bancorp
Average Balances and Rates (unaudited)
Dollar amounts in thousands
	Six Months Ended
	June 30, 2020						June 30, 2019
	Average Balance		Interest / Dividends		Yield / Cost		Average Balance		Interest / Dividends		Yield / Cost
Assets
Interest-earning assets
Loans, including loans held-for-sale 1	$	2,983,883	$	60,138	4.05	%	$	2,845,854	$	60,060	4.26	%
Securities - taxable	545,997		6,895		2.54	%	445,006		6,864		3.11	%
Securities - non-taxable	98,254		1,029		2.11	%	95,899		1,352		2.84	%
Other earning assets	505,111		2,404		0.96	%	247,871		3,567		2.90	%
Total interest-earning assets	4,133,245		70,466		3.43	%	3,634,630		71,843		3.99	%
Allowance for loan losses	(22,724)						(18,755)
Noninterest-earning assets	104,532						100,880
Total assets	$	4,215,053					$	3,716,755
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits	$	130,206	$	456	0.70	%	$	113,582	$	427	0.76	%
Savings accounts	33,774		170		1.01	%	38,177		213		1.13	%
Money market accounts	977,834		7,284		1.50	%	577,686		5,747		2.01	%
Certificates and brokered deposits	2,038,068		25,061		2.47	%	2,074,812		26,146		2.54	%
Total interest-bearing deposits	3,179,882		32,971		2.09	%	2,804,257		32,533		2.34	%
Other borrowed funds	584,504		8,051		2.77	%	544,841		6,961		2.58	%
Total interest-bearing liabilities	3,764,386		41,022		2.19	%	3,349,098		39,494		2.38	%
Noninterest-bearing deposits	67,107						42,558
Other noninterest-bearing liabilities	74,623						30,569
Total liabilities	3,906,116						3,422,225
Shareholders' equity	308,937						294,530
Total liabilities and shareholders' equity	$	4,215,053					$	3,716,755
Net interest income			$	29,444					$	32,349
Interest rate spread					1.24	%					1.61	%
Net interest margin					1.43	%					1.79	%
Net interest margin - FTE 2,3					1.58	%					1.97	%

¹ Includes nonaccrual loans

² On a fully-taxable equivalent (“FTE”) basis assuming a 21% tax rate

³ Refer to "Non-GAAP Financial Measures" section above and "Reconciliation of Non-GAAP Financial Measures" below

First Internet Bancorp
Loans and Deposits (unaudited)
Dollar amounts in thousands
	June 30, 2020				March 31, 2020				June 30, 2019
	Amount		Percent		Amount		Percent		Amount		Percent
Commercial loans
Commercial and industrial	$	81,687	2.7	%	$	95,227	3.3	%	$	106,517	3.7	%
Owner-occupied commercial real estate	86,897		2.9	%	87,956		3.0	%	82,148		2.8	%
Investor commercial real estate	13,286		0.4	%	13,421		0.5	%	21,179		0.7	%
Construction	77,591		2.6	%	64,581		2.2	%	47,849		1.7	%
Single tenant lease financing	980,292		33.0	%	972,275		33.6	%	1,001,196		35.1	%
Public finance	647,107		21.8	%	627,678		21.7	%	706,161		24.7	%
Healthcare finance	380,956		12.8	%	372,266		12.9	%	212,351		7.4	%
Small business lending	118,526		4.0	%	54,056		1.9	%	5,457		0.2	%
Total commercial loans	2,386,342		80.2	%	2,287,460		79.1	%	2,182,858		76.3	%
Consumer loans
Residential mortgage	208,728		7.0	%	218,730		7.6	%	318,678		11.1	%
Home equity	22,640		0.8	%	23,855		0.8	%	26,825		0.9	%
Trailers	147,326		5.0	%	148,700		5.1	%	144,704		5.1	%
Recreational vehicles	102,088		3.4	%	103,868		3.6	%	100,518		3.6	%
Other consumer loans	42,218		1.4	%	44,037		1.5	%	49,029		1.7	%
Total consumer loans	523,000		17.6	%	539,190		18.6	%	639,754		22.4	%
Net deferred loan fees, premiums, discounts and other 1	64,332		2.2	%	65,443		2.3	%	38,544		1.3	%
Total loans	$	2,973,674	100.0	%	$	2,892,093	100.0	%	$	2,861,156	100.0	%
	June 30, 2020				March 31, 2020				June 30, 2019
	Amount		Percent		Amount		Percent		Amount		Percent
Deposits
Noninterest-bearing deposits	$	82,864	2.5	%	$	70,562	2.2	%	$	44,040	1.5	%
Interest-bearing demand deposits	152,391		4.5	%	123,233		3.9	%	126,669		4.2	%
Savings accounts	43,366		1.3	%	32,485		1.0	%	31,445		1.0	%
Money market accounts	1,241,874		36.7	%	930,698		29.3	%	607,849		20.3	%
Certificates of deposits	1,470,905		43.5	%	1,493,644		47.0	%	1,629,886		54.2	%
Brokered deposits	389,389		11.5	%	527,884		16.6	%	566,374		18.8	%
Total deposits	$	3,380,789	100.0	%	$	3,178,506	100.0	%	$	3,006,263	100.0	%

¹ Includes carrying value adjustments of $46.0 million related to terminated interest rate swaps associated with public finance loans as of June 30, 2020 and $44.6 million and $22.2 million as of March 31, 2020 and June 30, 2019, respectively, related to interest rate swaps associated with public finance loans.

First Internet Bancorp
Reconciliation of Non-GAAP Financial Measures
Dollar amounts in thousands, except per share data
	Three Months Ended									Six Months Ended
	June 30, 2020			March 31, 2020			June 30, 2019			June 30, 2020			June 30, 2019
Total equity - GAAP	$	307,711		$	305,127		$	296,120		$	307,711		$	296,120
Adjustments:
Goodwill	(4,687)			(4,687)			(4,687)			(4,687)			(4,687)
Tangible common equity	$	303,024		$	300,440		$	291,433		$	303,024		$	291,433
Total assets - GAAP	$	4,324,600		$	4,168,146		$	3,958,829		$	4,324,600		$	3,958,829
Adjustments:
Goodwill	(4,687)			(4,687)			(4,687)			(4,687)			(4,687)
Tangible assets	$	4,319,913		$	4,163,459		$	3,954,142		$	4,319,913		$	3,954,142
Common shares outstanding	9,799,047			9,801,825			10,016,458			9,799,047			10,016,458
Book value per common share	$	31.40		$	31.13		$	29.56		$	31.40		$	29.56
Effect of goodwill	(0.48)			(0.48)			(0.46)			(0.48)			(0.46)
Tangible book value per common share	$	30.92		$	30.65		$	29.10		$	30.92		$	29.10
Total shareholders' equity to assets	7.12		%	7.32%			7.48		%	7.12		%	7.48		%
Effect of goodwill	(0.11		%)	(0.10		%)	(0.11		%)	(0.11)		%	(0.11)		%
Tangible common equity to tangible assets	7.01		%	7.22%			7.37		%	7.01		%	7.37		%
Total average equity - GAAP	$	306,868		$	311,005		$	297,148		$	308,937		$	294,530
Adjustments:
Average goodwill	(4,687)			(4,687)			(4,687)			(4,687)			(4,687)
Average tangible common equity	$	302,181		$	306,318		$	292,461		$	304,250		$	289,843
Return on average shareholders' equity	5.15		%	7.78%			8.26		%	6.48		%	8.09		%
Effect of goodwill	0.08		%	0.12%			0.13		%	0.10		%	0.13		%
Return on average tangible common equity	5.23		%	7.90		%	8.39		%	6.58		%	8.22		%
Total interest income	$	34,222		$	36,244		$	36,844		$	70,466		$	71,843
Adjustments:
Fully-taxable equivalent adjustments 1	1,437			1,535			1,612			2,972			3,169
Total interest income - FTE	$	35,659		$	37,779		$	38,456		$	73,438		$	75,012
Net interest income	$	14,426		$	15,018		$	16,105		$	29,444		$	32,349
Adjustments:
Fully-taxable equivalent adjustments 1	1,437			1,535			1,612			2,972			3,169
Net interest income - FTE	$	15,863		$	16,553		$	17,717		$	32,416		$	35,518
Net interest margin	1.37		%	1.50		%	1.73		%	1.43		%	1.79		%
Effect of fully-taxable equivalent adjustments 1	0.13		%	0.15		%	0.18		%	0.15		%	0.18		%
Net interest margin - FTE	1.50		%	1.65		%	1.91		%	1.58		%	1.97		%
Allowance for loan losses	$	24,465		$	22,857		$	19,976		$	24,465		$	19,976
Loans	2,973,674			2,892,093			2,861,156			2,973,674			2,861,156
Adjustments:
PPP loans	(58,948)			—			—			(58,948)			—
Loans, excluding PPP loans	$	2,914,726		$	2,892,093		$	2,861,156		$	2,914,726		$	2,861,156
Allowance for loan losses to loans	0.82		%	0.79		%	0.70		%	0.82		%	0.70		%
Effect of PPP loans	0.02		%	0.00		%	0.00		%	0.02		%	0.00		%
Allowance for loan losses to loans, excluding PPP loans	0.84		%	0.79		%	0.70		%	0.84		%	0.70		%

¹ Assuming a 21% tax rate

EX-99.2

Financial Results Second Quarter 2020 Exhibit 99.2

Forward-Looking Statements & Non-GAAP Financial Measures This presentation may contain forward-looking statements with respect to the financial condition, results of operations, trends in lending policies, plans, objectives, future performance or business of the Company. Forward-looking statements are generally identifiable by the use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “opportunity,” “outlook,” “pending,” “plan,” “position,” “preliminary,” “remain,” “should,” “will,” “would” or other similar expressions. Forward-looking statements are not a guarantee of future performance or results, are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the information in the forward-looking statements. The COVID-19 pandemic crisis is adversely affecting us, our customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects remains uncertain. Continued deterioration in general business and economic conditions, including further increases in unemployment rates, or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, lead to a tightening of credit, and further increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to COVID-19, could affect us in substantial and unpredictable ways. Other factors that may cause such differences include: failures or breaches of or interruptions in the communications and information systems on which we rely to conduct our business; failure of our plans to grow our commercial real estate, commercial and industrial, public finance, SBA and healthcare finance loan portfolios; competition with national, regional and community financial institutions; the loss of any key members of senior management; fluctuations in interest rates; general economic conditions; risks relating to the regulation of financial institutions; and other factors identified in reports we file with the U.S. Securities and Exchange Commission. All statements made in this presentation, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events. This presentation contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, net interest income – FTE, net interest margin – FTE and allowance for loan losses to loans, excluding PPP loans, are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included on the slide at the end of this presentation entitled “Reconciliation of Non-GAAP Financial Measures.” 2

Second Quarter 2020 Highlights . Diluted EPS of $0.40 Earnings . Net income of $3.9 million . Total revenue of $19.4 million . Cost of interest-bearing deposits declined 30 bps from 1Q20 to 1.94% 1 Key Operating . Allowance for loan losses / total loans, excluding PPP, increased to 0.84% Trends . Accelerated SBA platform build-out through sales and operations hires . Asset quality remained solid with NPAs to total assets of 0.24% Disciplined . Loan balances increased by $81.6 million from 1Q20, driven by $58.9 Balance Sheet million of PPP balances Management . Sold $11.5 million of SBA 7(a) guaranteed loans . Continued strong on- and off-balance sheet liquidity to manage impact of COVID-19 environment Liquidity and Capital . Deposit balances up $202.8 million from 1Q20 . Regulatory capital ratios remained strong 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix 3 3

Loan Portfolio Overview . Total loans increased $81.6 million, or 2.8%, compared to 1Q20, and increased $112.5 million, or 3.9%, year-over-year . Commercial loan balances increased $98.9 million, or 4.3%, compared to 1Q20 as growth in small business (PPP loans), public finance, and construction lending was partially offset by lower commercial and industrial loan balances . Consumer loan balances declined $16.2 million, or 3.0%, due primarily to increased residential mortgage prepayment activity Loan Portfolio Mix Dollars in millions $2,963.5 $2,973.7 $2,716.2 6% 6% 3% 7% 2% 1 2% Commercial and Industrial Commercial Real Estate $2,091.0 34% 33% 9% 34% Single Tenant Lease Financing 2% Public Finance Healthcare Finance 38% $1,250.8 23% 22% Small Business Lending 13% 26% 5% Residential Mortgage/HE/HELOCs 22% 4% 10% 13% Consumer 49% 1% 2% 2% 4% 16% 16% 11% 8% 19% 14% 11% 10% 10% 10% 2016 2017 2018 2019 2Q20 4 1 Includes commercial and industrial and owner-occupied commercial real estate balances

Deposit Composition . Total deposits increased $202.3 million, or 6.4%, compared to 1Q20, and $374.5 million, or 12.5%, year- over-year . Quarterly money market growth of $311.2 million, including $219.3 million in small business . CD and brokered deposit balances decreased $161.2 million compared to 1Q20 . Cost of interest-bearing deposits declined 30 bps from 1Q20 to 1.94% Total Deposits - $3.4 Billion Total Non-Time Deposits - $1.5 Billion As of June 30, 2020 As of June 30, 20201 $82.9 2% $265.0 $152.4 $43.4 17% 5% 1% $498.5 $1,860.2 33% $107.9 55% 7% $1,241.9 37% $649.1 43% Noninterest-bearing deposits Interest-bearing demand deposits Savings accounts Money market accounts Commercial Public funds Small business Consumer Certificates and brokered deposits 1 Total non-time deposits excludes brokered non-time deposits 5

Net Interest Income and Net Interest Margin . Interest income earned on loans, securities and Net Interest Income – GAAP and FTE1 cash balances declined primarily due to the Dollars in millions impact of lower interest rates following the GAAP FTE $17.7 $16.8 $16.9 Federal Reserve rate cuts in March $16.6 $15.9 . Interest expense on deposits declined as: 1) higher cost CDs matured and were replaced $16.1 $15.2 $15.4 $15.0 $14.4 with deposits at lower rates; and 2) money market rates were lowered substantially 2Q19 3Q19 4Q19 1Q20 2Q20 Yield on Loans and Cost of Deposits NIM – GAAP and FTE1 GAAP FTE 4.24% 4.18% 4.20% 4.11% 4.00% 1.91% 1.70% 1.67% 1.65% 1.50% 2.39% 2.40% 2.35% 2.24% 1.94% 1.73% 1.54% 1.51% 1.50% 1.37% 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 Yield on loans Cost of interest-bearing deposits 6 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix

Net Interest Margin Drivers . Linked quarter NIM decline primarily attributable to the impact of significantly lower short-term interest rates on loan and securities yields as well as cash balances, which remained elevated during the quarter . Interest-earning asset yields expected to stabilize . Significant opportunity to continue lowering deposit costs . $1.0 billion of CDs with a weighted average cost of 2.18% mature in the next twelve months – replacement cost is currently in the range of 1.00% - 1.05% . Lowered money market rates 60 – 70 bps during 2Q20 and another 10 bps so far in 3Q20 NIM – FTE1 Linked-Quarter Change Monthly Rate Paid on Interest-Bearing Deposits +23 bps 2.33% 1.65% 2.30% 2.27% -24 bps 2.16% 2.10% 1.50% -7 bps 1.93% -7 bps 1.80% Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 7 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix

Noninterest Income . Noninterest income of $5.0 million compared to $6.2 million in 1Q20 and $3.5 million in 2Q19 . Continued strong mortgage banking revenue of $3.4 million . Gain on sale of loans of $0.8 million, down from 1Q20 . Sold $11.5 million of SBA 7(a) guaranteed loans in 2Q20 . No portfolio loan sales during 2Q20 due to market conditions Noninterest Income Noninterest Income 2Q20 Dollars in millions $0.4 $6.2 $0.2 $5.6 $5.4 $0.2 $5.0 $0.8 $3.5 $3.4 Mortgage banking activities Gain on sale of loans Service charges and fees Net loan servicing revenue 2Q19 3Q19 4Q19 1Q20 2Q20 Other 8

Noninterest Expense . Noninterest expense of $13.2 million compared to $13.5 million in 1Q20 . Lower consulting and professional fees, loan expenses and deposit insurance premium were partially offset by higher other expenses . Increase in other expenses driven by $250,000 charitable contribution to help small businesses and nonprofits address the economic challenges of the COVID-19 pandemic . Noninterest expense / average assets remains well below the industry average Noninterest Expense Noninterest Expense / Average Assets Dollars in millions $13.5 $13.2 1.32% $12.6 1.23% 1.22% 1.22% $11.7 $11.2 1.11% 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 9

Asset Quality . Asset quality metrics remain among the industry’s best, driven by a strong credit culture and lower-risk asset classes . Allowance for loan losses to total loans increased to 0.82% in 2Q20, or 0.84% excluding PPP loans1, from 0.79% in 1Q20, due primarily to adjustments to qualitative factors . Quarterly provision for loan losses of $2.5 million, up from $1.5 million in 1Q20 . Net charge-offs to average loans of 0.12%, up from 0.06% in 1Q20, due primarily to one charge-off in the healthcare finance portfolio, partially offset by increased recoveries NPLs / Total Loans NPAs / Total Assets Net Charge-Offs / Average Loans 0.26% 0.27% 0.23% 0.24% 0.22% 0.23% 0.20% 0.21% 0.19% 0.20% 0.15% 0.12% 0.06% 0.04% 0.04% 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix 10

Liquidity and Capital . Regulatory capital ratios remained strong at the Company and Bank levels . Expect to have sufficient liquidity, supplemented by access to multiple funding sources, to handle the current economic impact of COVID-19 . Increase in cash balances and PPP loans impacted the Company’s tangible common equity to tangible assets by approximately 35 bps Tangible Book Value Per Share1 Regulatory Capital Ratios – June 30, 20202 Company Bank $30.82 $30.92 Total shareholders' equity to assets 7.12% 7.85% $27.93 $26.09 Tangible common equity to tangible assets1 7.01% 7.75% $23.04 Tier 1 leverage ratio 7.50% 8.22% $22.24 $20.74 Common equity tier 1 capital ratio 10.97% 12.05% $19.38 Tier 1 capital ratio 10.97% 12.05% Total risk-based capital ratio 14.16% 12.88% 2013 2014 2015 2016 2017 2018 2019 2Q20 1 See Reconciliation of Non-GAAP Financial Measures 2 Regulatory capital ratios are preliminary pending filing of the Company’s and Bank’s regulatory reports 11

Exposure to COVID-19 Impacted Industries Small Loan exposure to impacted industries Single Tenant C&I & Business (As of June 30, 2020, dollars in millions) Lease Financing OOCRE Lending Construction Quick service restaurants $227.1 $2.7 Full service restaurants $214.3 $3.3 $4.5 Hotels / accommodations $10.1 $6.7 Healthcare and social assistance1 $9.0 $1.9 $11.3 Consumer services (education, childcare, $26.9 $6.4 $2.4 religious orgs., arts and entertainment) Total $441.4 $39.2 $25.6 $20.4 Percentage on deferral programs 53% 44% 6% 0% No exposure to airlines, cruise ships, oil & gas, multifamily, shopping malls and office buildings 1 Represents loans separate from healthcare finance portfolio 12

Loan Deferral Summary . Loan deferral balances have moved lower since peaking in late-May at $647.2 million . All borrowers coming off deferral programs have resumed making scheduled loan payments . Significant portion of single tenant deferrals are scheduled to resume payments in August Deferrals As of As of As of As of % of Balances (Dollars in millions) April 17, 2020 May 15, 2020 June 19, 2020 July 17, 2020 with Deferrals1 Commercial and industrial $15.4 $15.9 $15.9 $1.7 2.1% Single tenant lease financing $11.8 $259.0 $273.7 $276.8 28.2% Owner-occupied CRE $6.0 $16.2 $16.2 $19.3 22.2% Investor CRE $0.0 $0.4 $0.4 $0.4 3.1% Healthcare finance $289.1 $297.0 $192.0 $57.8 15.2% Small business $21.7 $23.7 $23.8 $1.8 1.5% Total commercial $344.0 $612.2 $522.0 $357.8 15.0% Residential mortgage $8.9 $12.0 $10.2 $5.6 3.0% Home equity $0.3 $0.4 $0.4 $0.2 1.0% Other consumer $7.8 $9.0 $4.6 $2.2 0.8% Total consumer $17.0 $21.4 $15.2 $8.0 1.6% Total loans with deferrals $361.0 $633.6 $537.2 $365.8 12.6% As a % of total loans 12.5% 21.9% 18.6% 12.6% 1 As of July 17, 2020 13

Single Tenant Lease Financing Portfolio mix by major tenant . $980.3 million in balances as of June 30, 2020 Red Lobster . Long term financing of single tenant properties occupied 7% ICWG by historically strong national and regional tenants 7% Wendy's . Weighted-average portfolio LTV of 54% (55% for loans 6% Burger King on deferral) Walgreens 5% . Average loan size of $1.4 million 55% Bob Evans 4% Dollar General . Strong historical credit performance 4% CVS . Restaurant properties account for 85% of deferrals 3% Kum & Go . 4% No delinquencies for performing loans not on deferral 3% 7-Eleven 2% programs Other Portfolio mix by major vertical Portfolio mix by geography 2% 1% 1% Quick Service Restaurants Full Service 6% Restaurants 9% 23% Auto Parts/ Repair/Car Wash 12% 6% Convenience/Fuel 21% Pharmacies 9% Specialty Retailers Dollar Stores 23% 38% 11% 22% Medical Bank Branches 16% Other 14

Public Finance Borrower mix by credit rating . $647.1 million in balances as of June 30, 2020 1% . Provides a range of credit solutions for government and 3% 5% AAA/Aaa 5% not-for-profit entities AA+/Aa1 . Borrowers’ needs include short-term financing, debt AA/Aa2 AA-/Aa3 refinancing, infrastructure improvements, economic 46% A+/A1 development and equipment financing 21% A/A2 . Federal stimulus funds provide relief from tax revenue A-/A3 declines and/or delays caused by the COVID-19 crisis BBB+/Baa1 6% BBB/Baa2 . No delinquencies or losses since inception 6% BB+/Ba1 BB/Ba2 . No borrowers currently receiving payment deferrals 3% 1% Non-Rated 1% 2% Portfolio mix by repayment source Portfolio mix by state General Obligation 6% 3% IN OK 3% Essential use equipment 19% loans 3% Utilities Revenue 1% OH MO Lease rental revenue 5% 31% 2% Tax Incremental Financing 3% MI GA (TIF) districts 3% 56% 6% Public higher ed facilities - Revenue 4% Sales tax, food and bev tax, LA WI 6% hotel tax Municipally owned health 5% care facilities 10% Income Tax supported loans 7% Other 16% Public higher ed facilities - 11% G.O. Others 15

Healthcare Finance Portfolio mix by borrower . $381.0 million in balances as of June 30, 2020 1% . Loan portfolio focused primarily on dental practices with 6% some exposure to veterinary practices and other specialties Dentists . Borrowers’ needs include practice finance or acquisition, acquiring or refinancing owner-occupied CRE, equipment purchases and project loans 93% Veterinarians . Average loan size of $612,000 . Balances on deferral programs down over 80% from late- May peak with additional improvement expected in August Other Portfolio mix by borrower use Portfolio mix by State 1% <1% CA 5% Practice Refi or Acquisition TX 14% Owner 28% Occupied NY 80% CRE 46% Projects AZ Equipment 12% OR All others Start Up 6% 3% 5% 16

C&I and Owner-Occupied Commercial Real Estate . $168.6 million in combined balances as of June 30, 2020 Portfolio Mix by State . Current C&I LOC utilization of 34% 2% 5% IN . Average loan sizes 5% AZ . C&I: $346,000 5% . Owner-occupied CRE: $1.0 million IL 56% . Exited relationships totaling in excess of $50 million over the 27% OH last two years to de-risk the portfolio MD . 12.5% of balances are on payment deferral programs as of July 17, 2020 All others Portfolio by Loan Type Portfolio Mix by Major Industry Services 27% C&I - Term 29% 35% Construction C&I - Line of Real Estate 52% credit Owner-occupied Manufacturing 9% CRE 14% 10% Retail 13% 11% All others 17

Small Business Lending . $118.5 million in balances as of June 30, 2020 Portfolio Mix by State . Approved and funded 449 loans totaling $58.9 million to date IN under the Paycheck Protection Program 21% . SBA will be making scheduled loan payments for 7(a) IL program borrowers for a six month period 49% 5% CA . These payments will be made following deferral programs offered to borrowers impacted by COVID-19 9% AZ 16% All others PPP Loans by Customer Type Portfolio Mix by Major Industry 7% Food and C&I 15% Lodging Services 28% 42% 5% 21% SMB/Commercial Retail Deposits 7% Real Estate Healthcare 9% Manufacturing Finance 30% 21% 15% Construction SBA All others 18

Residential Mortgage . $231.3 million in balances as of June 30, 2020 National Portfolio with (includes home equity balances) Midwest Concentration . Direct-to-consumer originations centrally located at corporate headquarters . Focused on high quality borrowers 24% 10% 55% . Avg. loan size of $183,500 . Avg. credit score at orig. of 763 . Avg. LTV at origination of 70% . Strong historical credit performance 4% 7% . 2.5% of balances are on payment deferral programs as of July 17, 2020 Concentration by State Concentration by Loan Type State Percentage Loan Type Percentage Indiana 52% Single Family Residential 74% California 18% SFR Construction to New York 4% Permanent 16% Florida 3% Home Equity – LOC 8% Arizona 2% Home Equity – Closed End 2% All other states 21% 19

Specialty Consumer . $291.6 million in balances as of June 30, 2020 Geographically Diverse Portfolio . Direct-to-consumer and nationwide dealer network originations . Focused on high quality borrowers 22% 10% . Avg. credit score at orig. of 779 18% . Avg. loan size of $19,300 . Strong historical credit performance . Less than 1% of balances are on payment deferral 22% 28% programs as of July 17, 2020 Concentration by State Concentration by Loan Type State Percentage Loan Type Percentage Texas 15% Trailers 50% California 12% Recreational Vehicles 35% Florida 6% Other consumer 15% North Carolina 4% Colorado 4% All other states 59% 20

Near-term Profitability Drivers . Continued deposit repricing opportunity combined with stabilized asset yields provides significant opportunity to increase net interest income and net interest margin . Accelerated build-out of SBA platform – sales and operations hiring has increased due to competitor dislocation in the marketplace – six months ahead of original plan . Residential mortgage originations expected to remain strong in the continued low interest rate environment . Continue to remain cautiously optimistic regarding the impact of the COVID-19 pandemic on the credit quality of the loan portfolio . Expecting to manage cash balances downwards to target a smaller balance sheet by year end 21

Long-term Strategy . Manage balance sheet growth and deploy excess liquidity to fund loan growth and/or higher-cost deposit runoff . Continued loan production combined with loan sales to enhance noninterest income and improve the mix of earning assets . Build capital through improved profitability and disciplined balance sheet management . Net interest margin expansion through lower deposit costs, managing loan pricing and portfolio composition . Continue to build out nationwide SBA platform, capitalizing on opportunities on both sides of the balance sheet . Increase noninterest income through SBA gain on sale and loan servicing revenue . Retain higher yielding loan balances . Continue to grow small business deposits . Following successful results in mortgage, implement technology to enhance the customer experience and workflow process in commercial and small business lending . Maintain top quartile asset quality 22

Appendix 23

Loan Portfolio Composition Dollars in thousands 2017 2018 2019 1Q20 2Q20 Commercial loans Commerical and industrial $ 122,940 $ 107,405 $ 96,420 $ 95,227 $ 81,687 Owner-occupied commercial real estate 75,768 77,569 86,726 87,956 86,897 Investor commerical real estate 7,273 5,391 12,567 13,421 13,286 Construction 49,213 39,916 60,274 64,581 77,591 Single tenant lease financing 803,299 919,440 995,879 972,275 980,292 Public finance 438,341 706,342 687,094 627,678 647,107 Healthcare finance 31,573 117,007 300,612 372,266 380,956 Small business lending 4,870 17,370 47,787 54,056 118,526 Total commercial loans 1,528,407 1,990,440 2,287,359 2,287,460 2,386,342 Consumer loans Residential mortgage 299,935 399,898 313,849 218,730 208,728 Home equity 30,554 28,735 24,306 23,855 22,640 Trailers 101,369 136,620 146,734 148,700 147,326 Recreational vehicles 69,196 91,912 102,702 103,868 102,088 Other consumer loans 56,968 51,239 45,873 44,037 42,218 Total consumer loans 558,022 708,404 633,464 539,190 523,000 Net def. loan fees, prem., disc. and other 1 4,764 17,384 42,724 65,443 64,332 Total Loans $ 2,091,193 $ 2,716,228 $ 2,963,547 $ 2,892,093 $ 2,973,674 1 Includes carrying value adjustments of $46.0 million related to terminated interest rate swaps associated with public finance loans as of June 30, 2020 and $44.6 million, $21.4 million, $5.0 million and $0.3 million as of March 31, 2020, December 31, 2019, December 31, 2018 and December 31, 2017, respectively, related to interest rate swaps associated with public finance loans. 24

Reconciliation of Non-GAAP Financial Measures Dollars in thousands 2Q19 3Q19 4Q19 1Q20 2Q20 Total equity - GAAP $296,120 $295,140 $304,913 $305,127 $307,711 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) Tangible common equity $291,433 $290,453 $300,226 $300,440 $303,024 Tota l a sse ts - GAAP $3,958,829 $4,095,491 $4,100,083 $4,168,146 $4,324,600 Adjustments: Goodwill (4,687) (4,687) (4,687) (4,687) (4,687) Tangible assets $3,954,142 $4,090,804 $4,095,396 $4,163,459 $4,319,913 Common shares outstanding 10,016,458 9,741,800 9,741,800 9,801,825 9,799,047 Book value per common share $29.56 $30.30 $31.30 $31.13 $31.40 Effect of goodwill (0.46) (0.48) (0.48) (0.48) (0.48) Tangible book value per common share $29.10 $29.82 $30.82 $30.65 $30.92 Total shareholders' equity to assets 7.48% 7.21% 7.44% 7.32% 7.12% Effect of goodwill (0.11%) (0.11%) (0.11%) (0.10%) (0.11%) Tangible common equity to tangible assets 7.37% 7.10% 7.33% 7.22% 7.01% Net interest income $16,105 $15,244 $15,374 $15,018 $14,426 Adjustments: Fully-taxable equivalent adjustments 1 1,612 1,595 1,570 1,535 1,437 Net interest income - FTE $17,717 $16,839 $16,944 $16,553 $15,863 Net interest margin 1.73% 1.54% 1.51% 1.50% 1.37% Adjustments: Effect of fully-taxable equivalent adjustments 1 0.18% 0.16% 0.16% 0.15% 0.13% Net interest margin - FTE 1.91% 1.70% 1.67% 1.65% 1.50% Allowance for loan losses $19,976 $21,683 $21,840 $22,857 $24,465 Loans $2,861,156 $2,881,272 $2,963,547 $2,892,093 $2,973,674 Adjustments: PPP loans - - - - (58,948) Loans, excluding PPP loans $2,861,156 $2,881,272 $2,963,547 $2,892,093 $2,914,726 Allowance for loan losses to loans 0.70% 0.75% 0.74% 0.79% 0.82% Effect of PPP loans 0.00% 0.00% 0.00% 0.00% 0.02% Allowance for loan losses to loans, excluding PPP loans 0.70% 0.75% 0.74% 0.79% 0.84% 1 Assuming a 21% tax rate 25