**First Internet Bancorp Targets Net Interest Margin of 2.4%-2.5% in Q4 2025 Following $837M Loan Sale**
*October 23, 2025 – 6:08 PM ET*
First Internet Bancorp (NASDAQ: INBK) announced its financial outlook and recent business developments during its Q3 2025 earnings call. The company reported significant progress in its core business operations and outlined strategies aimed at boosting profitability in the upcoming quarters.
**Q3 2025 Earnings Call Highlights**
CEO David Becker emphasized the company’s sustained strength, noting, “This marks our eighth consecutive quarter of net interest income growth with net interest margin expansion continuing as planned.” Becker highlighted ongoing efforts that have contributed to solid core earnings and margin improvement.
**Loan Sale and Financial Impact**
On October 23, 2025, First Internet Bancorp completed a loan sale totaling $837 million. This strategic move helped improve the bank’s interest rate risk profile, bolstered capital ratios, and optimized the interest-earning asset base.
While the sale resulted in a sizeable adjusted net loss for the quarter, management views it as a necessary step to position the bank for stronger future performance.
**Credit Risk and Provisions**
The bank’s credit risk remains concentrated primarily in small business lending and franchise finance sectors. Elevated levels of delinquency and nonperforming loans have led to higher provisions and charge-offs in Q3.
**Outlook for Q4 2025**
Looking ahead, management projects the net interest margin will increase to between 2.4% and 2.5% in Q4 2025. This improvement is expected to be driven by stronger core earnings, continued credit quality actions, ongoing investments in technology, and disciplined balance sheet management.
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*Disclaimer: The above summary is based on AI-generated insights from the First Internet Bancorp Q3 2025 earnings call. For full details and official disclosures, please refer to the complete earnings transcripts and filings.*
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