First Internet Bancorp (NASDAQ:INBK) Announces Earnings Results

First Internet Bancorp (NASDAQ:INBK) posted its quarterly earnings results on Thursday. The bank reported $0.64 earnings per share for the quarter, beating analysts’ consensus estimates of $0.59 by $0.05, FiscalAI reports. The company had revenue of $42.11 million for the quarter, compared to the consensus estimate of $32.80 million. First Internet Bancorp had a negative net margin of 10.05% and a negative return on equity of 1.52%.

Here are the key takeaways from First Internet Bancorp’s conference call:

• Quarterly results showed meaningful core growth with net interest income up ~29% YoY and net interest margin expanding to 2.22%, while management guides NII of $155M–$160M and NIM to 2.75%–2.80% by Q4 2026.
• Management completed a strategic sale of ~$850 million of single-tenant lease loans to Blackstone, which strengthened capital, improved rate-risk, reduced low-yield fixed assets, and boosted balance-sheet flexibility.
• Banking-as-a-service momentum is strong: >$1.3 billion in new fintech deposits in 2025, >$165 billion in payments processed (including $65B in Q4), and growing recurring fee and servicing revenue streams.
• Credit stress is concentrated in the SBA and franchise finance portfolios—Q4 provision was $12M, non-performing loans rose to $58.5M (1.56% of loans)—and management is guiding a higher 2026 provision of $50M–$53M, largely front‑loaded in H1.
• Management is investing in AI, predictive analytics, tighter underwriting, and staffing to improve credit monitoring and operations; this is expected to reduce gain-on-sale SBA revenue (guide $19M–$20M) but be accretive to long‑term NII and margin.

First Internet Bancorp Price Performance

INBK opened at $21.79 on Friday. First Internet Bancorp has a fifty-two week low of $17.05 and a fifty-two week high of $34.21. The firm has a 50-day moving average of $21.06 and a 200 day moving average of $21.93. The firm has a market cap of $189.70 million, a P/E ratio of -5.41 and a beta of 0.81. The company has a debt-to-equity ratio of 1.01, a quick ratio of 0.88 and a current ratio of 0.91.

First Internet Bancorp Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, January 15th. Investors of record on Wednesday, December 31st were issued a $0.06 dividend. This represents a $0.24 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend was Wednesday, December 31st. First Internet Bancorp’s payout ratio is -5.96%.

Insider Buying and Selling

In other news, COO Nicole S. Lorch acquired 2,000 shares of First Internet Bancorp stock in a transaction on Monday, November 17th. The stock was acquired at an average cost of $17.96 per share, with a total value of $35,920.00. Following the completion of the acquisition, the chief operating officer owned 70,206 shares in the company, valued at approximately $1,260,899.76. This trade represents a 2.93% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 8.00% of the company’s stock.

Institutional Investors Weigh In On First Internet Bancorp

Several institutional investors have recently added to or reduced their stakes in INBK. Tower Research Capital LLC TRC lifted its position in shares of First Internet Bancorp by 202.7% during the second quarter. Tower Research Capital LLC TRC now owns 1,789 shares of the bank’s stock worth $48,000 after acquiring an additional 1,198 shares in the last quarter. BNP Paribas Financial Markets increased its holdings in shares of First Internet Bancorp by 92.1% in the 3rd quarter. BNP Paribas Financial Markets now owns 9,261 shares of the bank’s stock worth $208,000 after buying an additional 4,439 shares during the last quarter. Jump Financial LLC purchased a new stake in First Internet Bancorp during the second quarter valued at about $236,000. Jane Street Group LLC purchased a new position in shares of First Internet Bancorp during the 1st quarter valued at about $297,000. Finally, Empowered Funds LLC grew its position in First Internet Bancorp by 81.4% during the first quarter. Empowered Funds LLC now owns 13,135 shares of the bank’s stock valued at $352,000 after acquiring an additional 5,893 shares during the last quarter. 65.46% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

INBK has been the subject of a number of recent research reports. Weiss Ratings reaffirmed a “sell (d)” rating on shares of First Internet Bancorp in a report on Monday, December 29th. Wall Street Zen lowered shares of First Internet Bancorp from a “hold” rating to a “sell” rating in a research note on Saturday. Piper Sandler lowered their price objective on First Internet Bancorp from $24.00 to $23.50 and set a “neutral” rating for the company in a research report on Friday. Keefe, Bruyette & Woods reduced their price objective on shares of First Internet Bancorp from $25.00 to $23.00 and set a “market perform” rating for the company in a research report on Friday. Finally, Zacks Research raised First Internet Bancorp from a “strong sell” rating to a “hold” rating in a research report on Thursday, December 25th. One analyst has rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $25.17.

First Internet Bancorp News Summary

Here are the key news stories impacting First Internet Bancorp this week:

• Positive Sentiment: Q4 beat — INBK reported $0.64 EPS vs. $0.59 expected and revenue of $42.1M vs. $32.8M consensus; management highlighted strong net interest income (up ~29%) and revenue momentum. This is the primary bullish catalyst supporting upside. Business Wire – Q4 Results
• Positive Sentiment: Analyst upgrade/raise — Hovde Group raised its price target from $26 to $29 and moved to an “outperform” rating, implying material upside from current levels and giving fundamental validation to the quarter’s strength. The Fly – Hovde Raise
• Neutral Sentiment: Earnings call/transcript available — Analysts and investors can review management’s commentary on revenue mix, margin outlook and deposit/loan trends in the call transcript and highlights to gauge sustainability of the quarter’s growth. These details could swing sentiment once parsed. Yahoo Finance – Q4 Highlights
• Neutral Sentiment: Short interest data shows no meaningful short position (reporting shows 0 shares), which appears anomalous and shouldn’t be treated as a clear signal until corrected by exchanges.
• Negative Sentiment: Analyst downgrade/price-target cut — Keefe, Bruyette & Woods lowered its target from $25 to $23 and set a “market perform” rating, reducing a portion of the street’s upside and likely contributing to intraday selling pressure. Benzinga – KBW Cut
• Negative Sentiment: Profitability concerns — despite revenue growth, INBK still reported a negative net margin and negative return on equity for the quarter; longer-term profitability and ROE normalization will be required to justify higher multiples. MarketBeat – Earnings Summary

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).