First Internet Bancorp (INBK) AI Stock Analysis

• Market Cap: $171.89M
• Dividend Yield: 1.07%
• Average Volume (3M): 73.07K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.82
• Revenue Growth: 2.49%
• EPS Growth: -248.43%
• Country: US
• Employees: 323
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.64
• Shares Outstanding: 8,716,662
• 10 Day Avg. Volume: 54,354
• 30 Day Avg. Volume: 73,068
• PEG Ratio: 0.02
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 4.76
• Enterprise Value/Market Cap: 3.02
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 13.22
• Enterprise Value/Ebitda: -11.37
• 1Y Price Target: $26.38
• Price Target Upside: 33.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.17
• Revenue Forecast (FY): $190.32M

• Rating: 48 Neutral
• Price Target: $19.00 ▼(-3.65% Downside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is held down primarily by the sharp 2025 profitability decline and weakening cash-flow trend, reinforced by a bearish technical setup (below major moving averages with negative momentum). Offsetting factors include a low P/E and management’s 2026 improvement guidance, though elevated credit costs and near-term provisioning remain a key risk.

Positive Factors

Banking-as-a-Service scale

Large BaaS and payments scale is a durable structural advantage: partner-driven deposit acquisition and high payments volumes create diversified funding sources, recurring fee opportunities and cross-sell potential. This fosters sticky relationships and scale economics that support margin recovery over quarters.

Sustained revenue and NII growth

Consistent top-line and net interest income growth reflects durable demand and improving yields on earning assets. Persistent revenue/NII expansion supports reinvestment in technology, underwriting and product distribution, underpinning medium-term margin improvement if credit trends stabilize.

Reduced leverage and solid capital

Material reduction in debt versus prior years meaningfully improves financial flexibility and lowers interest expense sensitivity. A stronger leverage profile and regulatory capital above minima provide a durable cushion for absorbing loan losses while allowing measured shareholder returns and strategic investments.

Negative Factors

Concentrated credit stress

Concentration in SBA and franchise portfolios raises structural credit volatility: problem vintages and portfolio-specific stress can produce sustained elevated charge-offs and provisions. This concentration limits earnings predictability and requires ongoing reserve builds and closer underwriting remediation over multiple quarters.

Sharp 2025 profitability deterioration

A swing to material operating and net losses erodes retained capital and undermines return metrics. Persistent negative profitability constrains investment and growth options, increases sensitivity to additional credit stress, and means management must restore sustainable earnings before normalization of capital deployment.

Weakened cash-generation trend

Marked decline in operating and free cash flow reduces internal funding for lending, technology and shareholder returns. Lower cash generation increases reliance on external funding and limits buffers against loan losses, making execution of growth targets and reserve builds more challenging over the medium term.

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 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 Money

First Internet Bancorp generates earnings primarily through its banking subsidiary by (1) net interest income and (2) noninterest income. Net interest income is the spread between interest and fee income earned on interest-earning assets (such as commercial and consumer loans and investment securities) and the interest expense paid on funding sources (primarily customer deposits and, when used, other borrowings). Key drivers include loan growth and mix, yields on loans and securities, deposit mix and pricing (e.g., the balance between noninterest-bearing/low-cost deposits and higher-cost interest-bearing deposits), and the interest-rate environment. Noninterest income is generated from bank fees and service charges associated with providing banking services (for example, transaction-related fees and treasury/cash-management and payment-related services). The company’s profitability is also affected by credit performance (provision for credit losses and charge-offs), operating expenses, and the ability to acquire and retain deposits and loan customers via its digital distribution model. Specific material partnerships or program-level revenue arrangements: null.

First Internet Bancorp Financial Statement Overview

Summary

Despite strong multi-year revenue growth and improved leverage (debt down sharply vs. 2022–2023), 2025 profitability deteriorated materially (EBIT loss and net loss) with meaningful margin compression and negative ROE. Operating and free cash flow remained positive, but both weakened significantly versus 2022, signaling reduced earnings and cash-generation stability.

Income Statement

Revenue growth has been strong over the last few years (2022–2025 annual revenue rising from $173.7M to $322.9M), but profitability deteriorated sharply in 2025 with operating losses (EBIT of -$50.9M) and a net loss (-$35.2M) versus solid profits in 2024 (net income $25.3M). Margins compressed meaningfully, swinging from positive net profit in 2024 (7.6%) to negative in 2025 (-10.9%), which raises concerns about earnings stability despite the top-line expansion.

Balance Sheet

Leverage has improved versus 2022–2023 as total debt declined (from ~$719.8M in 2023 to ~$355.0M in 2025), bringing debt roughly in line with equity (debt-to-equity ~1.0 in 2024–2025 versus ~2.0 in 2022–2023). However, profitability on equity turned negative in 2025 (return on equity about -9.8%) and equity is only modestly higher than 2020 levels, suggesting the balance sheet is more conservative than before but currently under pressure from losses.

Cash Flow

Operating cash flow remained positive in 2024–2025 (~$13.0M and ~$12.1M), and free cash flow was positive in 2025 (~$12.1M). However, cash generation weakened materially versus 2022 (operating cash flow ~$82.7M; free cash flow ~$65.2M), and free cash flow growth in 2025 was sharply negative. Cash flow still compares favorably to the 2025 net loss (free cash flow remained positive), but the overall trend signals reduced cash-producing capacity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	322.87M	333.42M	259.85M	173.73M	162.09M
Gross Profit	44.16M	111.70M	78.62M	108.94M	113.73M
EBITDA	-50.87M	36.00M	10.69M	48.83M	65.35M
Net Income	-35.17M	25.28M	8.42M	35.54M	48.11M
Balance Sheet
Total Assets	5.57B	5.74B	5.17B	4.54B	4.21B
Cash, Cash Equivalents and Short-Term Investments	784.83M	879.71M	880.75M	646.94M	1.05B
Total Debt	354.96M	400.15M	719.77M	719.46M	619.15M
Total Liabilities	5.21B	5.35B	4.80B	4.18B	3.83B
Stockholders Equity	359.77M	384.06M	362.80M	364.97M	380.34M
Cash Flow
Free Cash Flow	38.30M	10.40M	6.31M	65.21M	24.95M
Operating Cash Flow	12.10M	12.99M	11.68M	82.72M	54.84M
Investing Cash Flow	-7.72M	-496.17M	-474.50M	-601.03M	43.87M
Financing Cash Flow	-2.87M	543.69M	612.17M	331.90M	-75.56M

First Internet Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 19.72 is below the 20-day moving average (MA) of 20.06, below the 50-day MA of 21.05, and below the 200-day MA of 22.20, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 41.94 is Neutral, neither overbought nor oversold. The STOCH value of 40.45 is Neutral, 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
OPBK	69 Neutral	$187.92M	7.44	11.75%	3.32%	9.10%	12.36%
VABK	69 Neutral	$206.50M	11.15	11.02%	3.41%	1.11%	14.44%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FXNC	66 Neutral	$229.42M	12.82	9.98%	2.49%	48.94%	11.61%
BLFY	54 Neutral	$258.06M	-24.20	-2.84%	―	9.02%	17.85%
EFSI	53 Neutral	$173.36M	12.33	6.63%	3.11%	-1.45%	-31.32%
INBK	48 Neutral	$171.89M	8.61	-9.44%	1.07%	2.49%	-248.43%

First Internet Bancorp Corporate Events

First Internet Bancorp Declares Quarterly Cash Dividend Payment

On March 17, 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 April 15, 2026, to shareholders of record as of the close of business on March 31, 2026.

The decision underscores the company’s continued return of capital to shareholders while signaling confidence in its financial position and earnings capacity. Management noted that future dividend declarations and amounts will remain at the board’s discretion and will depend on operating results, capital needs, regulatory constraints and broader strategic considerations, factors that could influence the stability and growth of shareholder distributions over time.

The most recent analyst rating on (INBK) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on First Internet Bancorp stock, see the INBK Stock Forecast page.