First Internet Bancorp (INBK) AI Stock Analysis

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First Internet Bancorp

(NASDAQ:INBK)

63Neutral

First Internet Bancorp shows strong financial growth and attractive valuation, supported by positive earnings call insights. However, bearish technical indicators and risks in asset quality, particularly in the SBA portfolio, weigh on the score.

First Internet Bancorp (INBK) vs. S&P 500 (SPY)

Market Cap

$206.64M

Dividend Yield1.01%

Average Volume (3M)33.75K

Price to Earnings (P/E)8.2

Beta (1Y)1.62

Revenue Growth27.55%

EPS Growth200.97%

CountryUS

Employees323

SectorFinancial

Sector Strength80

IndustryBanks - Regional

Share Statistics

EPS (TTM)2.89

Shares Outstanding8,697,085

10 Day Avg. Volume50,969

30 Day Avg. Volume33,750

Financial Highlights & Ratios

PEG Ratio0.04

Price to Book (P/B)N/A

Price to Sales (P/S)2.06

Price to Cash Flow (P/CF)-9.70

P/FCF Ratio0.50

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$40.50

Price Target Upside70.45% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering4

First Internet Bancorp Business Overview & Revenue Model

Company DescriptionFirst Internet Bancorp operates as the bank holding company for First Internet Bank of Indiana that provides commercial and retail banking products and services to individuals and commercial customers in the United States. The company accepts non-interest bearing and interest-bearing demand deposit, savings, money market, and brokered deposit accounts, as well as certificates of deposit. It also offers commercial and industrial, owner-occupied and investor commercial real estate, construction, residential mortgage, home equity and improvement, small installment, term, and other consumer loans, as well as single tenant lease financing, and public and healthcare finance; franchise finance; and small business lending. In addition, the company is involved in the purchase, manage, service, and safekeeping of municipal securities; and provision of municipal finance lending and leasing products to government entities. In addition, it offers corporate credit card and treasury management services. The company provides its services through its firstib.com Website. First Internet Bancorp was founded in 1999 and is headquartered in Fishers, Indiana.

How the Company Makes MoneyFirst Internet Bancorp makes money primarily through interest income generated from its loan portfolio, which includes residential mortgages, commercial real estate loans, consumer loans, and commercial and industrial loans. The net interest income, which is the difference between the interest earned on loans and the interest paid on deposits, is a significant contributor to the company's earnings. Additionally, the bank earns non-interest income from fees related to services such as loan origination, account maintenance, and transaction processing. First Internet Bancorp also benefits from its online-only model, which reduces overhead costs associated with physical branches, allowing for potentially higher margins. The company may establish partnerships with fintech companies or other financial institutions to expand its product offerings and customer base, further enhancing its revenue streams.

First Internet Bancorp Financial Statement Overview

Summary

First Internet Bancorp demonstrates strong financial performance with robust revenue growth and improved profitability. The elimination of total debt enhances financial flexibility. However, historical volatility in cash flow metrics suggests areas for improvement.

Income Statement

Positive

First Internet Bancorp has shown a robust revenue growth rate over the past year, with significant increases from 2023 to 2024. The gross profit margin and net profit margin are solid, indicating efficient cost management. However, the absence of EBITDA data limits a full margin analysis. The company has been able to increase its EBIT significantly, reflecting improved operational efficiency.

Balance Sheet

Positive

The company exhibits a strong balance sheet with no total debt as of 2024, significantly improving its leverage position. The equity ratio and return on equity are healthy, demonstrating a strong equity base and shareholder returns. However, fluctuations in total liabilities and stockholders' equity over the years highlight potential volatility in financial stability.

Cash Flow

Neutral

First Internet Bancorp's cash flow position is stable, with positive operating cash flow and free cash flow in 2024. The growth in free cash flow is a positive sign, although it remains relatively modest. The operating cash flow to net income ratio suggests effective conversion of earnings to cash, though it has shown variability in previous years.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
291.89M	84.38M	113.37M	118.37M	91.55M
	Gross Profit
291.89M	84.38M	113.37M	118.37M	91.55M
	EBIT
285.55M	8.82M	40.10M	56.57M	33.90M
	EBITDA
0.00	0.00	48.83M	65.35M	41.73M
	Net Income Common Stockholders
25.28M	8.42M	35.54M	48.11M	29.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
596.60M	880.75M	646.94M	1.05B	917.43M
	Total Assets
5.74B	5.17B	4.54B	4.21B	4.25B
	Total Debt
400.15M	719.77M	719.46M	619.15M	594.52M
	Net Debt
-66.26M	313.87M	462.91M	176.19M	174.71M
	Total Liabilities
5.35B	4.80B	4.18B	3.83B	3.92B
	Stockholders Equity
384.06M	362.80M	364.97M	380.34M	330.94M
Cash Flow		Free Cash Flow
12.99M	6.31M	65.21M	24.95M	-12.49M
	Operating Cash Flow
12.99M	11.68M	82.72M	54.84M	13.07M
	Investing Cash Flow
-496.17M	-474.50M	-601.03M	43.87M	-44.81M
	Financing Cash Flow
543.69M	612.17M	331.90M	-75.56M	124.19M

First Internet Bancorp Technical Analysis

Technical Analysis Sentiment

Negative

Last Price23.76

Price Trends

50DMA

29.65

Negative

100DMA

34.00

Negative

200DMA

33.70

Negative

Market Momentum

MACD

-0.97

Negative

RSI

41.27

Neutral

STOCH

20.44

Neutral

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 23.76 is below the 20-day moving average (MA) of 26.73, below the 50-day MA of 29.65, and below the 200-day MA of 33.70, indicating a bearish trend. The MACD of -0.97 indicates Negative momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of 20.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INBK.

First Internet Bancorp Risk Analysis

First Internet Bancorp disclosed 33 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

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CUBI	75 Outperform	$1.37B	8.55	10.44%	―	-3.61%	-29.58%
TBBK	75 Outperform	$2.11B	10.23	27.24%	―	11.72%	23.37%
SFBS	70 Neutral	$3.86B	17.01	14.87%	1.75%	16.28%	9.61%
ALLY	69 Neutral	$9.87B	17.85	6.63%	3.74%	3.41%	-12.41%
AX	69 Neutral	$3.30B	7.77	18.81%	―	26.87%	10.56%
Sector *	63 Neutral	$12.86B	9.19	9.16%	4.78%	16.31%	-8.97%
INBK	63 Neutral	$206.64M	8.24	6.77%	1.01%	27.55%	200.97%

* Financial Sector Average

Performance Comparison

INBK

First Internet Bancorp

23.76

-9.25

-28.02%

Axos Financial

57.83

6.30

12.23%

CUBI

Customers Bancorp

43.46

-9.48

-17.91%

ALLY

Ally Financial

32.12

-5.29

-14.14%

TBBK

Bancorp

43.92

11.64

36.06%

SFBS

ServisFirst Bancshares

70.75

7.30

11.51%

First Internet Bancorp Earnings Call Summary

Earnings Call Date: Jan 22, 2025 | % Change Since: -32.48% | Next Earnings Date: Apr 23, 2025

Earnings Call Sentiment Positive

The earnings call reflected strong financial growth, driven by significant increases in net income, revenue, and loan originations, particularly in the SBA sector. However, there are notable challenges related to SBA charge-offs and an increase in non-performing loans, which the company is managing proactively.

Highlights

Significant Revenue Growth

Net income and diluted earnings per share tripled compared to 2023. Gain on sale revenue increased more than 60%, fueling non-interest income growth of 81% from 2023. Total adjusted revenue growth of almost 30% far outpaced the increase in expenses.

Strong Loan and Deposit Growth

Loan balances grew by $330 million, an increase of 9% over 2023, with strong growth in construction, investor commercial real estate, and small business lending. Deposit growth allowed for significant paydown of Federal Home Loan Bank borrowings while maintaining a solid liquidity position.

SBA Lending Success

SBA loan originations totaled almost $540 million, up 45% over 2023, making the bank the eighth largest SBA 7(a) lender in the nation for the SBA's 2024 fiscal year.

Positive Margin Trends

Net interest income increased 17% compared to the fourth quarter of 2023, marking the fifth consecutive quarter of growth. Net interest margin improved by 5 basis points.

Lowlights

SBA Portfolio Challenges

Recognized $9.4 million in net charge-offs, mostly related to the SBA portfolio. Net charge-offs to average loans totaled 91 basis points. Approximately $3.4 million of these charge-offs were related to loans with existing specific reserves.

Non-Performing Asset Increase

Non-performing loans increased, with non-performing loans to total loans at 68 basis points and non-performing assets to total assets at 50 basis points due to additions in franchise finance and small business lending.

Franchise Finance Concerns

There is some increase in non-performing loans within the franchise finance portfolio, with current originations offsetting paydowns rather than contributing to growth.

Company Guidance

During the First Internet Bancorp's Q4 2024 earnings call, executives highlighted a year of substantial growth, particularly in net income and diluted earnings per share, which tripled compared to 2023, reaching $25.3 million and $2.88, respectively. Net income for the year increased by 17% to $87.4 million. The company reported a 60% increase in gain on sale revenue, resulting in an 81% rise in non-interest income compared to 2023. Total adjusted revenue grew by nearly 30%, driven by strong loan growth and effective asset optimization. Deposit balances increased by 9% or $330 million due to growth in construction, investor commercial real estate, and small business lending, allowing the company to reduce Federal Home Loan Bank borrowings while maintaining liquidity. The loans-to-deposit ratio remained stable, reflecting continued balance sheet flexibility. The fourth quarter saw net income of $7.3 million, with a 5% increase in diluted earnings per share to $0.83. The company also experienced an 8% rise in net interest income, marking five consecutive quarters of growth, and a 17% decrease in deposit costs. Looking ahead to 2025, First Internet Bancorp anticipates further improvements in net interest income and margin, aiming for a 10-12% loan growth and projecting annual net interest income to increase by mid-30% over 2024.

First Internet Bancorp Corporate Events

DividendsBusiness Operations and Strategy

First Internet Bancorp Declares Quarterly Cash Dividend

Neutral

Mar 18, 2025

On March 18, 2025, First Internet Bancorp announced a quarterly cash dividend of $0.06 per common share, payable on April 15, 2025, to shareholders recorded by March 31, 2025. This decision reflects the company’s ongoing financial strategy, with future dividends subject to the Board’s discretion based on various factors such as financial performance and market conditions.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.