# First Internet Bancorp

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/First Internet Bancorp).

## Overview

First Internet Bancorp is an Indiana-based bank holding company that operates through First Internet Bank of Indiana, a digital-first FDIC-insured bank founded in 1999. It offers commercial, small business, consumer, and municipal banking products, with deposits and much of its lending originated through online channels and partner networks rather than branch offices.

## Products & services

• Digital consumer and small business deposit accounts
• SBA 7(a) small business lending
• Commercial and industrial (C&I) loans
• Construction, investor CRE, and single-tenant lease financing
• Public finance lending and leasing
• Specialty finance: healthcare, franchise, equipment finance
• Treasury management and commercial deposits

- **Deposit products** (25%) — Consumer, small business, commercial, and municipal deposit accounts gathered primarily through digital channels.
- **Small business lending** (20%) — SBA 7(a) loans and other small business credit products for entrepreneurs and emerging businesses.
- **Commercial lending** (30%) — C&I, construction, investor commercial real estate, and single-tenant lease financing.
- **Public finance** (10%) — Lending and leasing products to governmental entities and municipal securities-related activities.
- **Specialty finance** (10%) — Healthcare, franchise finance, and equipment finance portfolios plus related lending services.
- **Treasury and fee-based services** (5%) — Treasury management, card, payment, and partner-enabled banking services.

- Digital consumer and small business deposit accounts
- SBA 7(a) small business lending
- Commercial and industrial (C&I) loans
- Construction, investor CRE, and single-tenant lease financing
- Public finance lending and leasing
- Specialty finance: healthcare, franchise, equipment finance
- Treasury management and commercial deposits

## Customers

The bank serves small businesses, entrepreneurs, commercial borrowers, municipalities, and consumers, with a strong emphasis on digitally acquired relationships. Its lending mix also includes specialized borrowers such as healthcare, franchise, equipment finance, and real estate customers, while public finance serves governmental entities across the United States.

- **Small businesses and entrepreneurs** (primary) — Buy SBA 7(a) loans, checking, deposits, and related banking services to fund growth and manage cash flow.
- **Commercial borrowers** (primary) — Buy C&I loans, owner-occupied CRE, construction, and lease financing for operating and expansion needs.
- **Municipal and governmental entities** (secondary) — Buy public finance lending and leasing products and related municipal deposit services.
- **Consumers** (secondary) — Use digital deposit and consumer lending products sourced through online channels and partners.
- **Fintech and platform partners** (emerging) — Distribute deposit, payment, card, and lending products to broaden reach and acquire low-cost relationships.

- Small businesses and entrepreneurs seeking SBA and deposit products
- Commercial borrowers needing C&I and CRE credit solutions
- Municipal and governmental entities using public finance products
- Consumers and small businesses preferring digital banking
- Dealership and financing-partner sourced consumer borrowers
- Fintech partners distributing payment, deposit, card, and lending products

## Geography

First Internet Bancorp is headquartered in Fishers, Indiana and operates without traditional branch offices, using digital channels for nationwide deposit gathering and much of its lending. Commercial lending is concentrated in the Midwest and Southwest for C&I borrowers, while construction, investor CRE, single-tenant lease financing, public finance, and small business lending are largely national in scope.

- Headquartered in Fishers, Indiana
- No traditional branch network; digital distribution is nationwide
- C&I lending is focused on the Midwest and Southwest
- Construction, CRE, lease, public finance, and SBA lending are national
- Public finance serves governmental entities throughout the United States

## Strategy

The company is building around a digital-first banking model that combines nationwide deposit gathering with relationship-based commercial lending. Its stated priorities are to deepen small business relationships, scale SBA lending, and use fintech partnerships to diversify funding, acquire deposits, and expand asset generation.

- **Scale SBA 7(a) lending** (short-term) — Supports the bank's positioning with entrepreneurs and can broaden fee and interest income.
- **Deepen fintech partnerships** (medium-term) — Partnerships can improve customer acquisition, deposit gathering, and product distribution without branches.
- **Grow digital deposits and commercial relationships** (medium-term) — A larger deposit base supports lending growth and reduces reliance on wholesale funding.

- Expand SBA 7(a) lending to strengthen small business franchise
- Use fintech partnerships to acquire deposits and new customers
- Grow digital deposit gathering without branch overhead
- Maintain relationship banking in core commercial markets
- Diversify revenue through payments, cards, and partner channels

## Risks

The business depends heavily on technology, third-party systems, and digital channels, so outages, cyberattacks, or obsolescence could disrupt deposits, loan servicing, and customer acquisition. Credit performance is also exposed to economic conditions, commercial real estate cycles, and the success of newer products and fintech partnerships, all of which can create earnings volatility and regulatory scrutiny.

- **Technology and cybersecurity disruption** [high] — Deposits and lending are heavily dependent on communications and information systems.
- **Credit deterioration from economic conditions** [high] — Loan performance can weaken if borrowers face recession, rate pressure, or sector stress.
- **Execution risk in new products and fintech partnerships** [medium] — New channels and products can strain controls, require regulatory approval, and fail to scale profitably.
- **Competitive pressure from digital banks and larger lenders** [medium] — Competitors may have greater funding capacity, technology budgets, and lending limits.

- Technology outages or cyber incidents could interrupt digital banking operations
- Economic weakness could pressure credit quality and loan demand
- New products and fintech partnerships may create control and compliance risk
- Competitive pressure is intense across digital banking and commercial lending
- Regulatory oversight can slow product launches and constrain growth

## Accounting

Goodwill impairment is a key judgment area because the company tests goodwill annually and whenever triggering events occur, and any impairment would flow through operating expenses. Investors should also watch fair value and estimate sensitivity in loan-related valuations, plus the impact of gains or losses from FHLB advance prepayments and swap terminations, which can materially distort period-to-period comparability.

- **Goodwill impairment** — A write-down would reduce earnings and equity
- **Fair value estimates for loans and securities** — Can affect reported asset values and gains/losses
- **Derivative and funding-related gains** — Creates comparability issues across periods

- Goodwill impairment testing can create non-cash charges if assumptions weaken
- Loan and securities valuations depend on market and model inputs
- Swap and FHLB-related gains can distort reported earnings
- Digital and partner-driven growth may create timing differences in fee recognition
- Quarterly results can be volatile due to interest-rate and funding mix changes

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*Last updated: 2026-04-28T20:08:18.019787+00:00*