First Internet Bancorp (NASDAQ:INBK – Get Free Report) released its quarterly earnings results on Thursday. The bank reported $0.27 earnings per share for the quarter, topping the consensus estimate of $0.15 by $0.12, FiscalAI reports. The business had revenue of $41.12 million for the quarter, compared to the consensus estimate of $43.83 million. First Internet Bancorp had a negative net margin of 9.60% and a negative return on equity of 1.14%. First Internet Bancorp updated its FY 2026 guidance to 2.350-2.450 EPS.
Here are the key takeaways from First Internet Bancorp’s conference call:
- Credit trends improved materially: Provision expense declined to $13.4 million, non-performing loans fell sequentially, and total delinquencies dropped 26% to $29.1 million. Management expects credit costs to continue moderating through the remainder of 2026.
- Second-quarter revenue increased 23% year over year to $41.1 million, while pre-provision net revenue rose 28%; diluted EPS was $0.27. Management maintained its full-year EPS outlook of $2.35-$2.45.
- Funding costs are expected to decline: More than $445 million of higher-cost CDs mature in the third quarter and are increasingly being replaced with lower-cost fintech deposits. Management projects fully taxable equivalent net interest margin of 2.75%-2.80% by the fourth quarter.
- First Internet plans to retain all future originations from embedded-finance partner Jaris, compared with historically retaining roughly 10%-12%. Management expects these short-duration, high-yielding loans and growing fintech fees to support net interest income and non-interest revenue.
- The company reduced its full-year loan-growth outlook to approximately 4%-6% because of early payoffs, lighter first-half SBA production, and lower retention of guaranteed SBA balances. It offset the lower balance-sheet outlook by raising its non-interest income forecast to $40.5 million-$41 million and lowering its expense outlook to $106 million-$107 million.
First Internet Bancorp Price Performance
Shares of INBK traded down $0.43 during midday trading on Thursday, hitting $26.29. 18,591 shares of the company traded hands, compared to its average volume of 51,098. The stock has a market cap of $229.25 million, a price-to-earnings ratio of -6.83 and a beta of 0.83. The firm has a 50 day moving average of $25.94 and a 200-day moving average of $23.27. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.87 and a current ratio of 0.88. First Internet Bancorp has a 52 week low of $17.05 and a 52 week high of $28.88.
First Internet Bancorp Dividend Announcement
Analyst Upgrades and Downgrades
Several research firms have recently commented on INBK. Piper Sandler upped their price objective on First Internet Bancorp from $24.00 to $26.00 and gave the stock a “neutral” rating in a research note on Friday, June 26th. Benchmark initiated coverage on First Internet Bancorp in a research report on Wednesday, June 24th. They set a “buy” rating and a $33.00 target price on the stock. Wall Street Zen raised First Internet Bancorp from a “hold” rating to a “buy” rating in a report on Saturday, June 6th. Weiss Ratings upgraded First Internet Bancorp from a “sell (d)” rating to a “sell (d+)” rating in a research report on Wednesday, July 8th. Finally, Keefe, Bruyette & Woods raised their price objective on First Internet Bancorp from $23.00 to $24.00 and gave the stock a “market perform” rating in a research note on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, First Internet Bancorp currently has an average rating of “Hold” and a consensus price target of $28.00.
Read Our Latest Report on First Internet Bancorp
Institutional Investors Weigh In On First Internet Bancorp
A number of hedge funds have recently made changes to their positions in the company. Bridgeway Capital Management LLC lifted its position in shares of First Internet Bancorp by 1.3% in the third quarter. Bridgeway Capital Management LLC now owns 44,217 shares of the bank’s stock worth $992,000 after buying an additional 584 shares in the last quarter. Public Employees Retirement System of Ohio raised its holdings in shares of First Internet Bancorp by 19.9% during the 4th quarter. Public Employees Retirement System of Ohio now owns 6,024 shares of the bank’s stock worth $126,000 after acquiring an additional 1,000 shares in the last quarter. Empowered Funds LLC raised its holdings in shares of First Internet Bancorp by 7.1% during the 4th quarter. Empowered Funds LLC now owns 15,329 shares of the bank’s stock worth $320,000 after acquiring an additional 1,012 shares in the last quarter. Man Group plc boosted its position in shares of First Internet Bancorp by 5.1% during the 3rd quarter. Man Group plc now owns 21,818 shares of the bank’s stock valued at $489,000 after acquiring an additional 1,053 shares during the last quarter. Finally, Barclays PLC boosted its position in shares of First Internet Bancorp by 4.1% during the 4th quarter. Barclays PLC now owns 28,685 shares of the bank’s stock valued at $599,000 after acquiring an additional 1,141 shares during the last quarter. 65.46% of the stock is currently owned by hedge funds and other institutional investors.
First Internet Bancorp Company Profile
First Internet Bancorp is the bank holding company for First Internet Bank of Indiana, a pioneer in digital banking in the United States. Established with a focus on online-only operations, the company offers fully integrated, web-based financial solutions without the overhead of physical branches. Headquartered in Indianapolis, Indiana, First Internet Bancorp leverages technology to deliver streamlined banking services to customers across the country.
The company’s core offerings include a range of deposit products such as checking accounts, savings accounts, money market accounts, certificates of deposit (CDs) and individual retirement accounts (IRAs).
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