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First Internet Bancorp
(NASDAQ:INBK)
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Rating:52Neutral
Price Target:
$28.00
â–²(2.15% Upside)
Action:Reiterated
Date:09/22/26
INBK scores in the low-50s primarily because recent profitability deterioration and negative margins weigh heavily on financial performance, even with improved leverage and a strong TTM cash-flow rebound. The earnings call provides meaningful support via maintained EPS guidance and improving credit and margin trends, while technicals remain weak-to-neutral and valuation is constrained by a non-meaningful negative P/E with only a modest dividend yield.
Positive Factors
Fintech fee-income diversification
Rapid fintech payment and fee growth, alongside a growing partner and program base, broadens revenue beyond traditional spread income. This embedded-finance platform can improve recurring fee generation and deepen commercial relationships, supporting a more diversified earnings model over the next several quarters.
Negative Factors
Sustained recent losses
The recent move into sustained losses is the clearest fundamental weakness because revenue growth has not translated into positive earnings. Negative margins reduce internal capital generation, constrain strategic flexibility, and leave profitability dependent on continued improvement in credit costs and operating performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Fintech fee-income diversification
Rapid fintech payment and fee growth, alongside a growing partner and program base, broadens revenue beyond traditional spread income. This embedded-finance platform can improve recurring fee generation and deepen commercial relationships, supporting a more diversified earnings model over the next several quarters.
Read all positive factors
First Internet Bancorp (INBK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$233.27M
Dividend Yield0.9%
Average Volume (3M)41.35K
Price to Earnings (P/E)―
Beta (1Y)0.79
Revenue Growth-9.20%
EPS Growth-302.27%
CountryUS
Employees354
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)-3.59
Shares Outstanding8,733,574
10 Day Avg. Volume36,442
30 Day Avg. Volume41,355
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.51
Price to Sales (P/S)0.56
P/FCF Ratio82.03
Enterprise Value/Market Cap2.49
Enterprise Value/Revenue1.82
Enterprise Value/Gross Profit10.91
Enterprise Value/Ebitda-15.42
Forecast
1Y Price Target
$31.63Price Target Upside15.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)2.36
Revenue Forecast (FY)$180.29M
First Internet Bancorp Business Overview & Revenue Model
Company Description
First Internet Bancorp operates as the bank holding company for First Internet Bank of Indiana that provides various commercial, small business, consumer, and municipal banking products and services to individuals and commercial customers in the U...
How the Company Makes Money
First Internet Bancorp primarily makes money through its banking subsidiary by generating net interest income and noninterest (fee-based) income.
1) Net interest income (core earnings driver): The bank earns interest and fees on loans and other i...
First Internet Bancorp Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call emphasized clear and measurable improvement across credit metrics (lower provisions, declining delinquencies and non-accruals), strong revenue growth drivers (23% revenue growth, fintech fee acceleration, and NIM expansion) and disciplined capital deployment and expense management. Challenges remain — notably elevated net charge-offs concentrated in franchise finance, residual provisioning needs, early payoffs and a smaller balance sheet that reduced NII guidance — but management presented multiple actionable levers (deposit repricing, fintech deposit growth, higher-yield loan pipelines, and operational enhancements) that are already driving improvement and are expected to continue. On balance, the positive trends and concrete progress on credit and fee-income diversification materially outweigh the remaining headwinds.Positive Updates
Revenue and Operating Results
Total revenue of $41.1 million, up 23% year-over-year; pre-provision net revenue of $15.0 million, up 28% year-over-year; net income of $2.4 million and diluted EPS of $0.27, both materially higher year-over-year.
Negative Updates
Elevated Net Charge-offs and Franchise Losses
Total net charge-offs were $16.9 million in the quarter (up modestly sequentially); franchise finance net charge-offs totaled $11.6 million (with $6.7 million previously covered by specific reserves) and management charged off a meaningful amount of non-performing franchise loans during the quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and Operating Results
Total revenue of $41.1 million, up 23% year-over-year; pre-provision net revenue of $15.0 million, up 28% year-over-year; net income of $2.4 million and diluted EPS of $0.27, both materially higher year-over-year.
Read all positive updates
Company Guidance
Management guided full-year 2026 EPS of $2.35–$2.45 with loan growth of ~4%–6%, a fourth‑quarter fully taxable‑equivalent net interest margin of 2.75%–2.80% and fully taxable‑equivalent net interest income of $141M–$142M; they raised non‑interest income guidance to $40.5M–$41M, lowered non‑interest expense to $106M–$107M, and expect provision for credit losses of $47M–$48M with provision expense improving sequentially Q2→Q3→Q4. Q2 results that underpin the outlook included total revenue $41.1M (+23% YoY), pre‑provision net revenue $15M (+28% YoY), NII $32.4M ($33.6M FTE, +15–16% YoY), NIM 2.39% (2.47% FTE), provision $13.4M (down from $16.3M Q1), net charge‑offs $16.9M (SBA $4.8M, franchise $11.6M with $6.7M previously reserved), non‑performing loans $60.1M (1.58% of loans), delinquencies 78 bps ($29.1M, −26% QoQ) and non‑performing loans ex‑government 1.07% (down from 1.22% Q1). Key balance‑sheet drivers cited: ~42% of loans variable‑rate; interest‑bearing deposit cost 3.38% (from 3.92% a year ago); CD maturities of $445M in Q3 at a 4.04% weighted average cost and $700M in H2 at a 3.94% WAC (Q2 maturing CDs averaged ~4.11%), with fintech/on‑balance deposits at ~3.15%–3.20%—a dynamic the company expects will expand NII and margin; static balance‑sheet sensitivity is roughly ±$2.2–$2.4M per 25 bps, and an implied full‑year tax rate in the mid‑teens.First Internet Bancorp Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
55
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 319.97M | 322.87M | 333.42M | 259.85M | 173.73M | 162.09M |
| Gross Profit | 53.30M | 44.16M | 111.70M | 78.62M | 108.94M | 113.73M |
| EBITDA | -37.73M | -44.68M | 36.00M | 10.69M | 48.83M | 65.35M |
| Net Income | -31.43M | -35.17M | 25.28M | 8.42M | 35.54M | 48.11M |
Balance Sheet | ||||||
| Total Assets | 5.56B | 5.57B | 5.74B | 5.17B | 4.54B | 4.21B |
| Cash, Cash Equivalents and Short-Term Investments | 8.69M | 1.07B | 879.71M | 880.75M | 646.94M | 1.05B |
| Total Debt | 345.13M | 354.96M | 400.15M | 719.77M | 719.46M | 619.15M |
| Total Liabilities | 5.19B | 5.21B | 5.35B | 4.80B | 4.18B | 3.83B |
| Stockholders Equity | 363.55M | 359.77M | 384.06M | 362.80M | 364.97M | 380.34M |
Cash Flow | ||||||
| Free Cash Flow | 160.21M | 2.22M | 10.40M | 6.31M | 65.21M | 24.95M |
| Operating Cash Flow | 160.62M | 3.45M | 12.99M | 11.68M | 82.72M | 54.84M |
| Investing Cash Flow | 299.22M | 128.68M | -496.17M | -474.50M | -601.03M | 43.87M |
| Financing Cash Flow | -495.24M | -141.76M | 543.69M | 612.17M | 331.90M | -75.56M |
First Internet Bancorp Technical Analysis
Positive
27.41
Price Trends
27.35
Negative
27.10
Negative
24.51
Positive
Market Momentum
-0.30
Negative
51.48
Neutral
77.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INBK, the sentiment is Positive. The current price of 27.41 is above the 20-day moving average (MA) of 26.30, above the 50-day MA of 27.35, and above the 200-day MA of 24.51, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 51.48 is Neutral, neither overbought nor oversold. The STOCH value of 77.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INBK.
First Internet Bancorp Risk Analysis
First Internet Bancorp disclosed 34 risk factors in its most recent earnings report. First Internet Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
First Internet Bancorp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $269.58M | 10.85 | 13.36% | 2.90% | 5.91% | 37.89% | |
71 Outperform | $271.10M | 11.80 | 12.06% | 2.27% | 0.88% | 103.52% | |
71 Outperform | $254.04M | 14.22 | 9.27% | 2.64% | 17.02% | 47.37% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $219.81M | 7.29 | 12.79% | 3.53% | 7.57% | 28.18% | |
52 Neutral | $233.27M | -7.44 | -8.75% | 0.90% | -9.20% | -302.27% |
* Financial Sector Average
INBK
First Internet Bancorp
26.71
7.67
40.28%
OPBK
OP Bancorp
14.72
1.52
11.52%
FXNC
First National
29.98
7.83
35.33%
EFSI
Eagle Financial Services
46.93
10.78
29.81%
VABK
Virginia National Bankshares
49.69
11.42
29.83%
First Internet Bancorp Corporate Events
Dividends
First Internet Bancorp Declares Quarterly Cash Dividend
Positive
Sep 21, 2026
On September 21, 2026, First Internet Bancorp announced that its Board of Directors declared a quarterly cash dividend of $0.06 per common share. The dividend is scheduled to be paid on October 15, 2026, to shareholders of record as of the close o...
Business Operations and StrategyPrivate Placements and Financing
First Internet Bancorp Completes Subordinated Notes Private Placement
Positive
Sep 10, 2026
On September 10, 2026, First Internet Bancorp completed a private placement of $20.5 million in 8.0% fixed-to-floating rate subordinated notes due 2036 sold to institutional investors. The notes carry a fixed 8.0% coupon with semi-annual payments ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.