First Internet Bancorp (45H) AI Stock Analysis

Company Guidance

For the fourth quarter, management expects fully taxable equivalent net interest margin of 2.75% to 2.80%, fully taxable equivalent net interest income of around $38.5 million assuming a 25 basis point increase in the Fed funds rate in December, noninterest income of around $7.5 million, noninterest expense of around $26.5 million, provision expense of $7.5 million to $8 million, and diluted earnings per share of approximately $1.02 to $1.07; average loan balances should be up low- to mid-single digits, period-end balances might be flattish, average cash may be down about $100 million or so, and loan growth should be higher than deposit growth. For 2027, management expects net interest income to be up substantially over 2026, believes fourth-quarter 2027 net interest margin could be up 20 basis points versus fourth-quarter 2026 absent rate hikes, with that increase cut in half to perhaps 10 basis points under the modeled hikes, expects SBA origination volume to be stronger than it has been in 2026, loan growth of “let’s just call it to 10%,” and expense growth much less than 10%; a conservative approach to provision expense is to take the fourth-quarter amount and run rate that for the year.