First Internet Bancorp (NASDAQ:INBK – Get Free Report) released its earnings results on Thursday. The bank reported $0.57 earnings per share for the quarter, missing analysts’ consensus estimates of $0.78 by ($0.21), FiscalAI reports. The firm had revenue of $43.94 million during the quarter, compared to analyst estimates of $46.17 million. First Internet Bancorp had a return on equity of 4.32% and a net margin of 4.27%.
Here are the key takeaways from First Internet Bancorp’s conference call:
- Core earnings improved significantly: Third-quarter adjusted EPS rose to $0.57 from $0.27 in the second quarter, while revenue reached a record $43.9 million and adjusted pre-provision net revenue increased 14% sequentially.
- Margin and balance-sheet repositioning remain favorable. Net interest margin expanded for the fourth consecutive quarter to 2.47%, supported by higher-yielding loan originations, lower-cost fintech deposits, and continued runoff of lower-yielding portfolios.
- Fintech is becoming a larger, diversified growth engine: Fintech deposits increased by more than $1 billion to $4.7 billion, fee revenue rose 13% sequentially and more than 190% year over year, and two new partners were added.
- A large franchise-finance credit relationship pressured results. The borrower was moved to non-accrual status, requiring a $2.6 million specific reserve and a $600,000 interest reversal; management said the relationship reduced pretax earnings by approximately $3.2 million, although broader delinquencies and charge-offs improved.
- Management expects a sharp fourth-quarter earnings rebound: Fourth-quarter EPS is projected at approximately $1.02–$1.07, with net interest margin of 2.75%–2.80% and lower provision expense, though SBA originations and gain-on-sale revenue are expected to remain subdued in the near term.
First Internet Bancorp Stock Down 5.4%
Shares of INBK traded down $1.46 during mid-day trading on Friday, reaching $25.81. The company’s stock had a trading volume of 71,449 shares, compared to its average volume of 35,466. The company has a market cap of $225.42 million, a price-to-earnings ratio of 15.18 and a beta of 0.87. The business has a fifty day moving average of $27.17 and a 200 day moving average of $24.72. The company has a quick ratio of 0.87, a current ratio of 0.88 and a debt-to-equity ratio of 0.95. First Internet Bancorp has a 1 year low of $17.05 and a 1 year high of $31.09.
First Internet Bancorp Announces Dividend
The company also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Thursday, October 1st were given a $0.06 dividend. This represents a $0.24 annualized dividend and a dividend yield of 0.9%. The ex-dividend date was Thursday, October 1st. First Internet Bancorp’s dividend payout ratio is 14.12%.
Key Headlines Impacting First Internet Bancorp
Here are the key news stories impacting First Internet Bancorp this week:
- Positive Sentiment: Improved operating performance and outlook: Third-quarter revenue reached a record $43.9 million, up 7% sequentially. Net interest income rose 7%, net interest margin expanded to 2.47%, deposits increased 7% to $5.15 billion, and net charge-offs declined to 0.82% from 1.77%. Management expects fourth-quarter diluted EPS of $1.02-$1.07 and net interest margin of 2.75%-2.80%. First Internet Bancorp Reports Record Third-Quarter Revenue
- Positive Sentiment: Keefe, Bruyette & Woods raised its price target to $29 from $27 while maintaining a “market perform” rating, implying roughly 12% upside from the referenced share price. The target increase reflects some confidence in the bank’s earnings outlook, though the neutral rating limits the bullish signal. Keefe, Bruyette and Woods Price Target Update
- Neutral Sentiment: Management’s earnings call will provide additional detail on credit quality, deposit growth, margins and the elevated fourth-quarter earnings forecast. Investors are likely to focus on whether the projected improvement is sustainable. First Internet Bancorp Q3 2026 Earnings Call Transcript
- Negative Sentiment: Third-quarter earnings missed expectations: EPS was reported at $0.57 versus the $0.78 consensus estimate, while revenue of $43.94 million came in below the $46.17 million forecast. The earnings miss, along with negative net margin and return on equity figures cited in the reports, likely contributed to the stock’s decline. First Internet Bancorp Lags Q3 Earnings and Revenue Estimates
- Negative Sentiment: Zacks Research downgraded INBK from “strong buy” to “hold,” adding to near-term investor caution following the earnings shortfall. Zacks Research Rating Update
Analyst Ratings Changes
INBK has been the topic of several research analyst reports. Piper Sandler lifted their price target on First Internet Bancorp from $26.00 to $29.50 and gave the company a “neutral” rating in a research report on Friday, July 31st. Keefe, Bruyette & Woods upped their price objective on First Internet Bancorp from $27.00 to $29.00 and gave the company a “market perform” rating in a report on Friday. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of First Internet Bancorp in a research note on Friday, October 2nd. Zacks Research cut First Internet Bancorp from a “strong-buy” rating to a “hold” rating in a research note on Tuesday. Finally, Wall Street Zen cut shares of First Internet Bancorp from a “buy” rating to a “hold” rating in a research report on Saturday. Two research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $30.62.
View Our Latest Analysis on INBK
About First Internet Bancorp
First Internet Bancorp is a bank holding company headquartered in Fishers, Indiana. Its principal subsidiary, First Internet Bank, provides a range of banking products and financial services to businesses, organizations and individual consumers.
First Internet Bank’s offerings include commercial and industrial lending, commercial real estate financing, small business and SBA loans, public finance, residential mortgage lending, consumer loans, deposit accounts and treasury management services.
Featured Stories
- Five stocks we like better than First Internet Bancorp
- 3 Robotics ETFs, 3 Different Ways to Bet on Humanoid Robots
- Can Microsoft Turn a Leaner Workforce and Record AI Spending Into Bigger Profits?
- Why JFrog Could Be the Software Infrastructure Company to Beat in the AI Boom
- The Factories Behind AI Servers Just Raised Their Outlooks—3 Contract Manufacturers to Watch
Receive News & Ratings for First Internet Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for First Internet Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.
