First Internet Bancorp (INBK) AI Stock Analysis

• Market Cap: $154.05M
• Dividend Yield: 1.36%
• Average Volume (3M): 39.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: 2.49%
• EPS Growth: -248.43%
• Country: US
• Employees: 323
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): -1.43
• Shares Outstanding: 8,713,094
• 10 Day Avg. Volume: 42,896
• 30 Day Avg. Volume: 39,126
• PEG Ratio: 0.06
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 30.07
• Enterprise Value/Market Cap: 3.87
• Enterprise Value/Revenue: 1.71
• Enterprise Value/Gross Profit: 5.86
• Enterprise Value/Ebitda: 27.46
• 1Y Price Target: $28.50
• Price Target Upside: 43.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 50 Neutral
• Price Target: $17.50 ▼(-11.88% Downside)

First Internet Bancorp's overall stock score reflects strong revenue growth and promising fintech partnerships, but is weighed down by significant challenges in profitability, cash flow, and credit quality. The technical analysis indicates bearish momentum, and the valuation metrics suggest the stock is not currently attractive. The earnings call provided some positive insights, but the net loss and credit issues remain concerns.

First Internet Bancorp Business Overview & Revenue Model

Company Description

First Internet Bancorp (INBK) is a financial institution primarily engaged in providing a wide range of banking products and services to consumers and businesses. Headquartered in Fishers, Indiana, the company operates as a bank holding company for First Internet Bank, which offers services such as savings and checking accounts, mortgage loans, commercial loans, and various other banking solutions. Leveraging its online banking platform, First Internet Bancorp aims to provide convenient and efficient financial services to customers across the United States, focusing on a digital-first approach.

How the Company Makes Money

First Internet Bancorp generates revenue primarily through interest income earned from loans and investments, which constitutes the bulk of its earnings. The company offers various types of loans, including residential mortgages, commercial real estate loans, and consumer loans, which accrue interest over the life of the loan. Additionally, it earns non-interest income from fees associated with deposit accounts, transaction services, and other banking products. The bank's online banking model allows it to operate with lower overhead costs compared to traditional brick-and-mortar banks, enhancing its profitability. Furthermore, partnerships with fintech companies and strategic initiatives in digital banking contribute to customer acquisition and retention, further bolstering its revenue streams.

First Internet Bancorp Financial Statement Overview

Summary

First Internet Bancorp demonstrates strong revenue growth but faces challenges in profitability and cash flow management. The high leverage and declining margins pose risks, while the negative cash flow trends highlight operational inefficiencies. The company needs to focus on improving profitability and managing debt levels to enhance financial stability.

Income Statement

First Internet Bancorp shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) revenue growth rate is strong at 31.8%, indicating robust top-line growth. However, profitability margins have declined over time, with the TTM net profit margin at 4.43%, down from 7.58% in the previous year. The gross profit margin has also decreased from 33.5% to 28.8%. These trends suggest pressure on profitability despite revenue growth.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 0.95 in the TTM, which is an improvement from previous years but still indicates significant leverage. The return on equity has decreased to 3.99% in the TTM, showing reduced efficiency in generating returns from equity. The equity ratio is stable, suggesting a balanced asset structure, but the high leverage remains a concern.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow growth of -258.05% in the TTM, indicating cash flow issues. The operating cash flow to net income ratio is negative, reflecting operational inefficiencies. However, the free cash flow to net income ratio is slightly positive at 1.03, suggesting some ability to convert net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	348.58M	333.42M	259.85M	173.73M	162.09M	171.16M
Gross Profit	101.78M	111.70M	78.62M	108.94M	113.73M	89.52M
EBITDA	21.71M	36.00M	10.69M	48.83M	65.35M	41.73M
Net Income	15.46M	25.28M	8.42M	35.54M	48.11M	29.45M
Balance Sheet
Total Assets	6.07B	5.74B	5.17B	4.54B	4.21B	4.25B
Cash, Cash Equivalents and Short-Term Investments	653.92M	879.71M	880.75M	646.94M	1.05B	917.43M
Total Debt	369.81M	400.15M	719.77M	719.46M	619.15M	594.52M
Total Liabilities	5.68B	5.35B	4.80B	4.18B	3.83B	3.92B
Stockholders Equity	390.24M	384.06M	362.80M	364.97M	380.34M	330.94M
Cash Flow
Free Cash Flow	-65.10M	10.40M	6.31M	65.21M	24.95M	-12.49M
Operating Cash Flow	-63.17M	12.99M	11.68M	82.72M	54.84M	13.07M
Investing Cash Flow	-599.28M	-496.17M	-474.50M	-601.03M	43.87M	-44.81M
Financing Cash Flow	712.02M	543.69M	612.17M	331.90M	-75.56M	124.19M

First Internet Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INBK, the sentiment is Negative. The current price of 19.86 is below the 20-day moving average (MA) of 20.89, below the 50-day MA of 22.83, and below the 200-day MA of 25.44, indicating a bearish trend. The MACD of -1.25 indicates Positive momentum. The RSI at 25.91 is Positive, neither overbought nor oversold. The STOCH value of 6.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INBK.

First Internet Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VABK	―	$216.97M	12.21	10.41%	3.43%	1.11%	14.44%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EFSI	―	$200.97M	16.72	6.63%	3.32%	-1.45%	-31.32%
OPBK	―	$199.32M	8.52	10.99%	3.52%	9.12%	12.36%
FXNC	―	$202.44M	22.72	5.43%	2.78%	43.39%	-21.38%
INBK	―	$154.05M	-4.66	-8.99%	1.36%	2.49%	-248.43%
BLFY	―	$185.29M	―	-2.82%	―	9.02%	17.85%

First Internet Bancorp Corporate Events

First Internet Bancorp’s Mixed Earnings Call Insights

The recent earnings call for First Internet Bancorp presented a mixed outlook. While the company celebrated strong growth in net interest income and fruitful fintech partnerships, challenges in credit quality and a reported net loss due to strategic loan sales were notable concerns. Despite these challenges, the company is taking proactive steps to address credit issues and is strategically positioned for future growth, although uncertainty from the government shutdown remains a lingering concern.

First Internet Bancorp Reports Strong Revenue Growth

First Internet Bancorp, a pioneering bank holding company in branchless banking, operates in the financial services sector, offering a range of consumer and business banking services. In its third quarter of 2025, First Internet Bancorp reported a significant 30% year-over-year increase in adjusted revenue, reaching $43.5 million. The company also saw an expansion in its net interest margin and took strategic actions to improve its credit profile and regulatory capital ratios. Key financial highlights include a 54% increase in adjusted pre-tax, pre-provision income and a notable improvement in net interest margin to 2.12%. Despite these positive developments, the company reported a net loss of $41.6 million, primarily due to a pre-tax loss on a major loan sale. Looking ahead, First Internet Bancorp’s management remains optimistic about future performance, with a focus on enhancing asset quality and shareholder value.

First Internet Bancorp Sells $836.9M in Loans

On September 18, 2025, First Internet Bancorp completed the sale of $836.9 million in performing single-tenant lease financing loans to entities affiliated with Blackstone Real Estate Debt Strategies, generating net proceeds of $794.2 million. The company will continue to service the loans sold, maintaining its involvement in the management of these assets, while $27.9 million of the portfolio remains under review for potential future sale.

The most recent analyst rating on (INBK) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on First Internet Bancorp stock, see the INBK Stock Forecast page.

First Internet Bancorp Declares Quarterly Cash Dividend

On September 16, 2025, First Internet Bancorp announced a quarterly cash dividend of $0.06 per common share, payable on October 15, 2025, to shareholders of record as of September 30, 2025. This decision reflects the company’s ongoing financial strategy and operational results, impacting shareholders and potentially influencing the company’s market positioning.

The most recent analyst rating on (INBK) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on First Internet Bancorp stock, see the INBK Stock Forecast page.

First Internet Bancorp Sells Loan Portfolio to Blackstone

On September 5, 2025, First Internet Bancorp‘s subsidiary, First Internet Bank, entered into a Loan Portfolio Purchase Agreement to sell up to $869 million of performing single-tenant lease financing loans to Blackstone Real Estate Debt Strategies. The sale, expected to close on September 18, 2025, is anticipated to be at approximately 95% of the unpaid principal balance. This transaction aims to strengthen the bank’s capital position, enhance net interest margin, and provide balance sheet flexibility. As a result of the agreement, the bank will recognize an after-tax charge of approximately $33.5 million in the quarter ending September 30, 2025, due to the difference between the sale price and the book value of the loans. The transaction is expected to improve the company’s tangible common equity ratio and fund near-term loan growth opportunities.

The most recent analyst rating on (INBK) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on First Internet Bancorp stock, see the INBK Stock Forecast page.