First Internet Bancorp (NASDAQ:INBK) Issues Earnings Results, Misses Estimates By $0.21 EPS

First Internet Bancorp (NASDAQ:INBK) announced its quarterly 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 company had revenue of $43.94 million during the quarter, compared to analysts’ expectations of $46.17 million. First Internet Bancorp had a negative net margin of 9.01% and a negative return on equity of 0.55%.

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 Performance

Shares of First Internet Bancorp stock traded down $1.62 on Friday, reaching $25.64. 17,413 shares of the stock were exchanged, compared to its average volume of 49,855. First Internet Bancorp has a 1-year low of $17.05 and a 1-year high of $31.09. The business has a fifty day moving average price of $27.22 and a two-hundred day moving average price of $24.69. The firm has a market capitalization of $223.88 million, a PE ratio of -7.12 and a beta of 0.87. The company has a current ratio of 0.88, a quick ratio of 0.87 and a debt-to-equity ratio of 0.95.

First Internet Bancorp Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st were paid a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date was Thursday, October 1st. First Internet Bancorp’s payout ratio is -6.67%.

Analyst Ratings Changes

INBK has been the topic of a number of recent research reports. Benchmark lifted their target price on shares of First Internet Bancorp from $33.00 to $35.00 and gave the company a “buy” rating in a report on Friday, July 31st. Weiss Ratings restated a “sell (d+)” rating on shares of First Internet Bancorp in a research note on Friday, October 2nd. Keefe, Bruyette & Woods increased their target price on shares of First Internet Bancorp from $27.00 to $29.00 and gave the stock a “market perform” rating in a research note on Friday. Piper Sandler raised their price target on First Internet Bancorp from $26.00 to $29.50 and gave the stock a “neutral” rating in a report on Friday, July 31st. Finally, Zacks Research downgraded First Internet Bancorp from a “strong-buy” rating to a “hold” rating in a research note on Tuesday. Two analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $30.62.

First Internet Bancorp News Summary

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

• Positive Sentiment: Third-quarter revenue reached a record $43.9 million, up 7% sequentially, while net interest income increased 7% to $34.7 million. The net interest margin also expanded to 2.47%. First Internet Bancorp Reports Record $43.9 Million Third-Quarter Revenue
• Positive Sentiment: Deposits grew 7% sequentially to $5.15 billion, loans increased to $3.86 billion, and credit metrics improved: provisions for credit losses declined to $11.6 million and net charge-offs fell to 0.82% from 1.77%. Management projects fourth-quarter diluted EPS of $1.02–$1.07 and a net interest margin of 2.75%–2.80%. First Internet Bancorp Q3 2026 Earnings Call Transcript
• Neutral Sentiment: Net income was $4.8 million, and quarterly earnings improved substantially from the year-ago loss of $1.43 per share. However, reported EPS figures varied by measure, with basic EPS of $0.55 and diluted EPS of $0.54 in the company’s release. First Internet Q3 Earnings Snapshot
• Negative Sentiment: First Internet Bancorp reported quarterly EPS of $0.57, below the $0.78–$0.80 analyst consensus, while revenue of $43.94 million also missed the $46.17 million estimate. The earnings shortfall likely drove selling despite the year-over-year recovery. First Internet Bancorp Lags Q3 Earnings and Revenue Estimates
• Negative Sentiment: Zacks Research downgraded the stock from “Strong Buy” to “Hold,” adding further pressure to investor sentiment. Zacks Research Ratings

First Internet Bancorp Company Profile

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.