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First Internet Bancorp (INBK)
NASDAQ:INBK
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First Internet Bancorp (INBK) AI Stock Analysis

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INBK

First Internet Bancorp

(NASDAQ:INBK)

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Neutral 59 (OpenAI - 5.2)
Rating:59Neutral
Price Target:
$31.00
â–²(17.20% Upside)
Action:Reiterated
Date:08/06/26
INBK scores in the mid-range primarily because profitability has deteriorated into recent losses (major financial-performance drag) despite improved leverage and a strong TTM cash-flow rebound. Offsetting factors include constructive technical momentum and a generally upbeat earnings-call outlook with improving credit trends and maintained EPS/NIM guidance, while valuation remains limited by the negative P/E and only modest dividend yield.
Positive Factors
Improved leverage
Leverage moving to roughly 1.0x from prior higher levels materially improves balance-sheet resilience. A more conservative capital structure increases loss-absorbing capacity, preserves regulatory flexibility, and supports continued lending and strategic investments without immediate reliance on costly external funding.
Negative Factors
Swing to sustained losses
The transition from consistent profits to sustained losses erodes retained earnings and ROE, limiting organic capital generation. Persistently negative margins constrain capacity to absorb credit losses, invest in growth initiatives, or maintain dividends without either capital raises or prolonged expense cuts.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved leverage
Leverage moving to roughly 1.0x from prior higher levels materially improves balance-sheet resilience. A more conservative capital structure increases loss-absorbing capacity, preserves regulatory flexibility, and supports continued lending and strategic investments without immediate reliance on costly external funding.
Read all positive factors

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

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
INBK primarily makes money through its banking subsidiary by earning net interest income and generating noninterest income. Net interest income is the largest driver for most banks and comes from the spread between (1) interest earned on interest-...

First Internet Bancorp Earnings Call Summary

Earnings Call Date:Jul 30, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Oct 28, 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
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
Financials are mixed. The income statement is the key drag due to a sharp swing from profitability (2022–2024) to losses in 2025 and TTM despite ~12% TTM revenue growth and meaningfully negative margins. Offsetting that, leverage has improved versus 2022–2023 (debt-to-equity just under 1.0 in 2025/TTM) and TTM operating/free cash flow rebounded strongly, though cash-flow volatility reduces confidence in durability.
Income Statement
38
Negative
Balance Sheet
55
Neutral
Cash Flow
66
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue319.97M322.87M333.42M259.85M173.73M162.09M
Gross Profit53.30M44.16M111.70M78.62M108.94M113.73M
EBITDA-39.75M-44.68M36.00M10.69M48.83M65.35M
Net Income-31.43M-35.17M25.28M8.42M35.54M48.11M
Balance Sheet
Total Assets5.56B5.57B5.74B5.17B4.54B4.21B
Cash, Cash Equivalents and Short-Term Investments795.37M1.07B879.71M880.75M646.94M1.05B
Total Debt345.13M354.96M400.15M719.77M719.46M619.15M
Total Liabilities5.19B5.21B5.35B4.80B4.18B3.83B
Stockholders Equity363.55M359.77M384.06M362.80M364.97M380.34M
Cash Flow
Free Cash Flow235.46M2.22M10.40M6.31M65.21M24.95M
Operating Cash Flow236.17M3.45M12.99M11.68M82.72M54.84M
Investing Cash Flow237.57M128.68M-496.17M-474.50M-601.03M43.87M
Financing Cash Flow-364.11M-141.76M543.69M612.17M331.90M-75.56M

First Internet Bancorp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price26.45
Price Trends
50DMA
26.51
Positive
100DMA
24.60
Positive
200DMA
22.41
Positive
Market Momentum
MACD
0.78
Negative
RSI
62.18
Neutral
STOCH
64.32
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 26.45 is below the 20-day moving average (MA) of 27.44, below the 50-day MA of 26.51, and above the 200-day MA of 22.41, indicating a bullish trend. The MACD of 0.78 indicates Negative momentum. The RSI at 62.18 is Neutral, neither overbought nor oversold. The STOCH value of 64.32 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$248.32M10.0013.36%3.21%5.91%37.89%
72
Outperform
$219.47M11.729.83%3.06%20.33%59.91%
70
Outperform
$232.35M8.0012.59%3.19%7.20%31.23%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
66
Neutral
$287.05M13.2311.51%2.49%7.42%141.95%
59
Neutral
$256.79M-8.21-8.75%0.91%-9.20%-302.27%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
INBK
First Internet Bancorp
29.21
7.30
33.29%
OPBK
OP Bancorp
15.63
3.21
25.88%
FXNC
First National
31.78
10.97
52.70%
EFSI
Eagle Financial Services
41.72
9.81
30.73%
VABK
Virginia National Bankshares
47.91
12.25
34.37%

First Internet Bancorp Corporate Events

Dividends
First Internet Bancorp Declares Quarterly Cash Dividend
Positive
Jun 16, 2026
On June 16, 2026, First Internet Bancorp’s board declared a quarterly cash dividend of $0.06 per common share, reaffirming a return of capital to shareholders. The dividend will be paid on July 15, 2026, to shareholders of record as of the c...
Executive/Board ChangesShareholder Meetings
First Internet Bancorp Shareholders Back Board, Pay and Auditor
Positive
May 20, 2026
At its annual meeting of shareholders held on May 18, 2026, First Internet Bancorp’s investors elected eight directors to serve one-year terms, with all board nominees receiving sufficient support despite some variation in withheld votes. Sh...
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.Date of analysis: Aug 06, 2026