First Internet Bancorp (INBK) AI Stock Analysis

• Market Cap: $183.26M
• Dividend Yield: 1.07%
• Average Volume (3M): 73.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• 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: 8,706,094
• 10 Day Avg. Volume: 54,354
• 30 Day Avg. Volume: 73,068
• 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: 2.95
• Enterprise Value/Revenue: 1.68
• Enterprise Value/Gross Profit: 13.35
• Enterprise Value/Ebitda: -13.37
• 1Y Price Target: $27.33
• Price Target Upside: 31.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -1.69
• Revenue Forecast (FY): $149.25M

• Rating: 48 Neutral
• Price Target: $18.00 ▼(-13.38% Downside)

First Internet Bancorp's overall stock score is primarily impacted by its financial performance challenges, including declining revenue and profitability. Technical analysis indicates bearish momentum, further weighing on the score. The valuation is affected by a negative P/E ratio, though the dividend yield provides some support. The earnings call offered a mixed outlook with some positive growth indicators, but credit quality issues and strategic losses remain concerns.

Positive Factors

Net Interest Income Growth

Consistent growth in net interest income over eight consecutive quarters indicates strong core banking operations and effective asset-liability management, which are crucial for long-term profitability.

Fintech Partnerships

Strong performance in fintech partnerships enhances digital capabilities and customer reach, positioning the company well in the evolving financial services landscape.

Improved Credit Quality

Improved credit quality with reduced delinquencies strengthens the bank's risk profile, supporting sustainable growth and financial stability.

Negative Factors

Net Loss

The significant net loss impacts financial health and indicates challenges in managing loan portfolios, which could affect future profitability and strategic flexibility.

Provision for Credit Losses

High provisions for credit losses reflect underlying credit risk issues, potentially straining financial resources and impacting future earnings.

Increase in Nonperforming Loans

Rising nonperforming loans indicate deteriorating asset quality, posing risks to financial stability and requiring focused management attention.

First Internet Bancorp Business Overview & Revenue Model

Company Description

First Internet Bancorp (INBK) is a financial services holding company headquartered in Fishers, Indiana, that operates primarily through its wholly-owned subsidiary, First Internet Bank. The bank offers a range of banking products and services, including personal and business checking and savings accounts, mortgage loans, personal loans, commercial loans, and treasury management services. The company is known for its focus on online banking, providing customers with convenient access to their accounts and financial services through digital platforms.

How the Company Makes Money

First Internet Bancorp generates revenue primarily through the interest income earned on loans and investments, as well as non-interest income from various banking services. The company's key revenue streams include interest income from mortgage loans, commercial loans, and consumer loans, which are funded through customer deposits and borrowed funds. Additionally, the bank earns non-interest income from fees associated with account maintenance, transaction services, and other banking activities. The company also benefits from partnerships with fintech firms and other service providers that enhance its product offerings and reach, contributing to its overall earnings.

First Internet Bancorp Financial Statement Overview

Summary

First Internet Bancorp is facing financial challenges, particularly in revenue and profitability, as reflected in the income statement and cash flow metrics. The balance sheet shows moderate leverage, which is typical for the industry but could become a concern if profitability does not improve. Overall, the company needs to address declining revenue and profitability to stabilize its financial position.

Income Statement

The income statement shows a concerning trend with declining revenue and profitability. The TTM data indicates a significant revenue decline of 32.6% and a negative net profit margin of -9.9%. The gross profit margin has also decreased sharply compared to previous years. These factors suggest challenges in maintaining revenue and controlling costs.

Balance Sheet

The balance sheet reflects a stable but leveraged position. The debt-to-equity ratio is slightly over 1, indicating moderate leverage, which is typical for banks but could pose risks if profitability continues to decline. The return on equity has turned negative in the TTM period, highlighting profitability challenges.

Cash Flow

Cash flow analysis reveals a negative trend with a significant decline in free cash flow growth and negative operating cash flow in the TTM period. The free cash flow to net income ratio is slightly above 1, indicating cash flow challenges relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	320.94M	333.42M	259.85M	173.73M	162.09M	171.16M
Gross Profit	40.45M	111.70M	78.62M	108.94M	113.73M	89.52M
EBITDA	-40.38M	36.00M	10.69M	48.83M	65.35M	41.73M
Net Income	-33.13M	25.28M	8.42M	35.54M	48.11M	29.45M
Balance Sheet
Total Assets	5.64B	5.74B	5.17B	4.54B	4.21B	4.25B
Cash, Cash Equivalents and Short-Term Investments	1.26B	879.71M	880.75M	646.94M	1.05B	917.43M
Total Debt	354.89M	400.15M	719.77M	719.46M	619.15M	594.52M
Total Liabilities	5.29B	5.35B	4.80B	4.18B	3.83B	3.92B
Stockholders Equity	352.17M	384.06M	362.80M	364.97M	380.34M	330.94M
Cash Flow
Free Cash Flow	-27.86M	10.40M	6.31M	65.21M	24.95M	-12.49M
Operating Cash Flow	-26.43M	12.99M	11.68M	82.72M	54.84M	13.07M
Investing Cash Flow	251.73M	-496.17M	-474.50M	-601.03M	43.87M	-44.81M
Financing Cash Flow	-150.12M	543.69M	612.17M	331.90M	-75.56M	124.19M

First Internet Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.78
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 20.78 is above the 20-day moving average (MA) of 20.71, above the 50-day MA of 19.74, and below the 200-day MA of 23.16, indicating a neutral trend. The MACD of 0.62 indicates Negative momentum. The RSI at 51.50 is Neutral, neither overbought nor oversold. The STOCH value of 29.33 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
EFSI	77 Outperform	$215.86M	17.84	6.63%	3.11%	-1.45%	-31.32%
VABK	77 Outperform	$227.05M	12.53	10.41%	3.41%	1.11%	14.44%
OPBK	74 Outperform	$214.50M	9.19	10.99%	3.32%	9.10%	12.36%
FXNC	73 Outperform	$230.68M	20.37	7.36%	2.49%	48.94%	11.61%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BLFY	61 Neutral	$264.91M	-28.00	-2.82%	―	9.02%	17.85%
INBK	48 Neutral	$183.26M	-5.48	-8.99%	1.07%	2.49%	-248.43%

First Internet Bancorp Corporate Events

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.

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.

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.