First Internet Bancorp (NASDAQ:INBK) Announces Earnings Results

First Internet Bancorp (NASDAQ:INBK) issued its earnings results on Thursday. The bank reported $0.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.15 by $0.12, FiscalAI reports. The business had revenue of $41.12 million for the quarter, compared to analysts’ expectations of $43.83 million. First Internet Bancorp had a negative net margin of 9.01% and a negative return on equity of 0.55%. 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

Shares of NASDAQ:INBK opened at $29.46 on Friday. The company has a current ratio of 0.88, a quick ratio of 0.87 and a debt-to-equity ratio of 0.96. The company has a 50-day moving average price of $26.10 and a 200-day moving average price of $23.35. The company has a market cap of $256.89 million, a price-to-earnings ratio of -8.18 and a beta of 0.83. First Internet Bancorp has a 12 month low of $17.05 and a 12 month high of $30.05.

First Internet Bancorp Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th were issued a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date was Tuesday, June 30th. First Internet Bancorp’s dividend payout ratio is currently -6.23%.

Trending Headlines about First Internet Bancorp

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

• Positive Sentiment: Quarterly earnings significantly exceeded expectations. First Internet Bancorp reported second-quarter net income of $2.4 million, or $0.27 per diluted share, compared with $0.02 a year earlier and ahead of the roughly $0.15 consensus estimate. Revenue increased 23% year over year to $41.1 million, driven by higher net interest and noninterest income. First Internet Bancorp Reports Second Quarter 2026 Results
• Positive Sentiment: Full-year guidance was raised above Wall Street expectations. Management now expects 2026 diluted EPS of $2.35 to $2.45, compared with the prior consensus estimate of $2.10, providing a meaningful catalyst for the stock.
• Positive Sentiment: Credit quality improved. The provision for credit losses declined to $13.4 million from $16.3 million in the first quarter, while nonperforming loans improved to 1.58% of total loans from 1.63%. Loan balances also grew about 1% sequentially. First Internet Bancorp Q2 net income rises to $2.4 million
• Positive Sentiment: Analyst sentiment improved. Benchmark raised its price target from $33 to $35 and maintained a “buy” rating. Piper Sandler also increased its target from $26 to $29.50, though it retained a neutral rating. Analyst price target updates
• Neutral Sentiment: Unusually heavy options activity included purchases of 4,968 call contracts versus typical volume of about 22. This signals increased speculative interest but does not guarantee further gains.
• Negative Sentiment: Revenue of $41.1 million was below the $43.8 million consensus estimate, deposits declined by $150.3 million, or 3%, sequentially, and profitability metrics remain pressured, including a negative reported net margin and return on equity.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. Benchmark increased their price target on shares of First Internet Bancorp from $33.00 to $35.00 and gave the stock a “buy” rating in a report on Friday. Keefe, Bruyette & Woods upped their target price on shares of First Internet Bancorp from $23.00 to $24.00 and gave the stock a “market perform” rating in a report on Friday, May 1st. Wall Street Zen upgraded shares of First Internet Bancorp from a “hold” rating to a “buy” rating in a research note on Saturday, June 6th. Piper Sandler raised their price target on shares of First Internet Bancorp from $26.00 to $29.50 and gave the company a “neutral” rating in a report on Friday. Finally, Weiss Ratings upgraded shares of First Internet Bancorp from a “sell (d)” rating to a “sell (d+)” rating in a research report on Wednesday, July 8th. Two analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $29.38.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Bridgeway Capital Management LLC lifted its holdings in 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 during the period. Public Employees Retirement System of Ohio grew 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 during the period. Empowered Funds LLC raised its position in shares of First Internet Bancorp by 7.1% in 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 lifted its stake in shares of First Internet Bancorp by 5.1% in the 3rd quarter. Man Group plc now owns 21,818 shares of the bank’s stock valued at $489,000 after purchasing an additional 1,053 shares during the period. Finally, Barclays PLC lifted its stake in shares of First Internet Bancorp by 4.1% in the 4th quarter. Barclays PLC now owns 28,685 shares of the bank’s stock valued at $599,000 after purchasing an additional 1,141 shares during the period. Hedge funds and other institutional investors own 65.46% of the company’s stock.

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).