First Internet Bancorp (NASDAQ:INBK) Announces Earnings Results

Key Points

• First Internet Bancorp beat quarterly earnings expectations: EPS was $0.27 versus the $0.15 consensus estimate, while revenue reached $41.12 million, below the $43.83 million forecast. Management maintained its FY 2026 EPS guidance of $2.35–$2.45.
• Credit quality improved materially: Provision expense fell to $13.4 million, non-performing loans declined, and total delinquencies dropped 26% to $29.1 million. Management expects credit costs to moderate further through 2026.
• The bank lowered its full-year loan-growth outlook to approximately 4%–6%, but expects lower funding costs, increased retention of high-yielding embedded-finance loans, and higher fee income to support results.

First Internet Bancorp (NASDAQ:INBK - Get Free Report) released its earnings results on Thursday. The bank reported $0.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.15 by $0.12, FiscalAI reports. First Internet Bancorp had a negative net margin of 9.60% and a negative return on equity of 1.14%. The firm had revenue of $41.12 million during the quarter, compared to analyst estimates of $43.83 million. 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 Stock Performance

First Internet Bancorp stock traded down $0.43 during midday trading on Thursday, reaching $26.29. 18,591 shares of the company traded hands, compared to its average volume of 51,098. The firm has a market capitalization of $229.25 million, a price-to-earnings ratio of -6.83 and a beta of 0.83. The business has a 50 day moving average of $25.94 and a two-hundred day moving average of $23.27. First Internet Bancorp has a 12 month low of $17.05 and a 12 month high of $28.88. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.88 and a quick ratio of 0.87.

First Internet Bancorp Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were issued a dividend of $0.06 per share. This represents a $0.24 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend was Tuesday, June 30th. First Internet Bancorp's payout ratio is presently -6.23%.

Wall Street Analysts Forecast Growth

INBK has been the subject of a number of analyst reports. Weiss Ratings raised First Internet Bancorp from a "sell (d)" rating to a "sell (d+)" rating in a research report on Wednesday, July 8th. Keefe, Bruyette & Woods increased their target price 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. Benchmark began coverage on First Internet Bancorp in a report on Wednesday, June 24th. They set a "buy" rating and a $33.00 price target for the company. Wall Street Zen upgraded First Internet Bancorp from a "hold" rating to a "buy" rating in a report on Saturday, June 6th. Finally, Piper Sandler lifted their price target on First Internet Bancorp from $24.00 to $26.00 and gave the stock a "neutral" rating in a research report on Friday, June 26th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $28.00.

Institutional Investors Weigh In On First Internet Bancorp

Large investors have recently added to or reduced their stakes in the stock. Patriot Financial Partners GP II L.P. bought a new position in shares of First Internet Bancorp during the 3rd quarter valued at $4,696,000. CSM Advisors LLC grew its holdings in shares of First Internet Bancorp by 35.9% in the fourth quarter. CSM Advisors LLC now owns 191,854 shares of the bank's stock worth $4,005,000 after acquiring an additional 50,695 shares during the period. Millennium Management LLC increased its position in First Internet Bancorp by 48.8% during the fourth quarter. Millennium Management LLC now owns 145,554 shares of the bank's stock valued at $3,038,000 after acquiring an additional 47,715 shares during the last quarter. Russell Investments Group Ltd. lifted its holdings in First Internet Bancorp by 59.1% in the third quarter. Russell Investments Group Ltd. now owns 90,470 shares of the bank's stock valued at $2,029,000 after acquiring an additional 33,622 shares during the period. Finally, Walleye Capital LLC boosted its position in First Internet Bancorp by 95.7% in the fourth quarter. Walleye Capital LLC now owns 54,916 shares of the bank's stock worth $1,146,000 after purchasing an additional 26,859 shares during the last quarter. Institutional investors own 65.46% of the company's stock.

About First Internet Bancorp

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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