First Internet Bancorp raises $20.5M via subordinated notes offering

First Internet Bancorp (Nasdaq: INBK) completed a private placement of $20.5 million in subordinated notes due 2036, according to a press release from the company.

The notes carry a fixed interest rate of 8.0% per annum from September 10, 2026 through September 15, 2031, with interest payable semi-annually. After that date, the rate converts to a floating rate equal to the three-month term Secured Overnight Financing Rate (SOFR) plus 373.5 basis points, payable quarterly until maturity or earlier redemption.

The company may redeem the notes, in whole or in part, on or after September 15, 2031, or earlier upon the occurrence of certain specified events. The notes have been structured to qualify as Tier 2 capital for regulatory purposes.

First Internet Bancorp said it intends to use the net proceeds for general corporate purposes, which may include the redemption or retirement of existing debt currently accruing interest at higher rates.

Piper Sandler & Co. served as placement agent for the offering. Faegre Drinker Biddle & Reath LLP acted as counsel to the company, and Kilpatrick Townsend & Stockton LLP served as counsel to Piper Sandler & Co.

The notes have not been registered under the Securities Act of 1933 and are not insured by the Federal Deposit Insurance Corporation or any other government agency.

First Internet Bancorp, based in Fishers, Indiana, is the parent company of First Internet Bank and reported total assets of $5.6 billion as of June 30, 2026.

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