First Internet Bancorp (Nasdaq: INBK), the parent company of First Internet Bank, reported its financial results for the second quarter ended June 30, 2025. The company achieved a net income of $0.2 million with diluted earnings per share of $0.02. Pre-tax, pre-provision income (PTPP) was $11.7 million, representing a 1.8% decrease from the first quarter of 2025 but a 17.2% increase from the second quarter of 2024. Net interest income rose to $28.0 million, with fully-taxable net interest income at $29.1 million, marking increases of 11.5% and 11.0%, respectively, from the first quarter of 2025. The net interest margin was reported at 1.96%, with a fully-taxable equivalent net interest margin of 2.04%, showing increases of 14 and 13 basis points, respectively, from the previous quarter. In terms of credit updates, the company reported net charge-offs of $14.3 million, primarily in small business lending and franchise finance, with $7.3 million of specific reserves. Nonperforming loans increased by $9.3 million from the first quarter to $43.5 million as of June 30, 2025, representing 1.00% of total loans, mainly due to franchise finance loans moved to nonaccrual status. Looking ahead, First Internet Bancorp anticipates continued expansion in net interest income and net interest margin through a combination of higher loan origination yields and deposit repricing. The company expects normalized levels of gain on sale of SBA 7(a) loans as significant loan sale activity is set to resume in the third quarter of 2025. For the third quarter, the company forecasts loan growth of approximately 2% (not annualized), net interest income of around $33.5 million, and a net interest margin of 2.20% to 2.25%. The outlook for the full fiscal year 2026 includes a projected loan growth of 5% to 7%, net interest income between $158 million and $163 million, and a net interest margin ranging from 2.50% to 2.60%.