First Internet Bancorp (NASDAQ:INBK) Issues Quarterly Earnings Results

First Internet Bancorp (NASDAQ:INBK) released its quarterly earnings data on Thursday. The bank reported $0.27 EPS for the quarter, topping analysts’ consensus estimates of $0.15 by $0.12, FiscalAI reports. First Internet Bancorp had a negative return on equity of 1.14% and a negative net margin of 9.60%.The company had revenue of $41.12 million for the quarter, compared to the consensus estimate 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 Down 1.6%

NASDAQ INBK traded down $0.43 during trading hours on Thursday, reaching $26.29. 18,591 shares of the company traded hands, compared to its average volume of 32,337. The stock has a market capitalization of $229.25 million, a PE ratio of -6.83 and a beta of 0.83. The company has a current ratio of 0.88, a quick ratio of 0.87 and a debt-to-equity ratio of 0.96. First Internet Bancorp has a 12 month low of $17.05 and a 12 month high of $28.88. The company has a 50 day moving average of $25.98 and a two-hundred day moving average of $23.30.

First Internet Bancorp Announces Dividend

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

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the company. Tower Research Capital LLC TRC raised its position in shares of First Internet Bancorp by 202.7% during the 2nd quarter. Tower Research Capital LLC TRC now owns 1,789 shares of the bank’s stock valued at $48,000 after acquiring an additional 1,198 shares in the last quarter. Deutsche Bank AG raised its holdings in shares of First Internet Bancorp by 4,390.4% during the fourth quarter. Deutsche Bank AG now owns 5,164 shares of the bank’s stock worth $108,000 after purchasing an additional 5,049 shares during the period. Public Employees Retirement System of Ohio lifted its position in shares of First Internet Bancorp by 19.9% in the 4th quarter. Public Employees Retirement System of Ohio now owns 6,024 shares of the bank’s stock worth $126,000 after buying an additional 1,000 shares during the last quarter. Wells Fargo & Company MN lifted its holdings in shares of First Internet Bancorp by 62.8% in the 4th quarter. Wells Fargo & Company MN now owns 8,759 shares of the bank’s stock worth $183,000 after purchasing an additional 3,379 shares during the last quarter. Finally, XTX Topco Ltd bought a new position in First Internet Bancorp during the 4th quarter worth $206,000. Institutional investors own 65.46% of the company’s stock.

Analyst Ratings Changes

Several research analysts recently commented on the stock. Keefe, Bruyette & Woods raised their price target on shares of First Internet Bancorp from $23.00 to $24.00 and gave the company a “market perform” rating in a report on Friday, May 1st. Weiss Ratings upgraded shares of First Internet Bancorp from a “sell (d)” rating to a “sell (d+)” rating in a report on Wednesday, July 8th. Benchmark started coverage on shares of First Internet Bancorp in a research report on Wednesday, June 24th. They set a “buy” rating and a $33.00 price target for the company. Piper Sandler increased their target price on First Internet Bancorp from $24.00 to $26.00 and gave the company a “neutral” rating in a research note on Friday, June 26th. Finally, Wall Street Zen raised First Internet Bancorp from a “hold” rating to a “buy” rating in a research report on Saturday, June 6th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $28.00.

More First Internet Bancorp News

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

• Positive Sentiment: First Internet Bancorp reported second-quarter net income of $2.4 million, or $0.27 per diluted share, compared with $0.2 million, or $0.02 per share, a year earlier. Earnings exceeded the analyst consensus of $0.15 per share. First Internet Bancorp Earnings Results
• Positive Sentiment: The bank raised its full-year 2026 diluted EPS outlook to $2.35-$2.45, above the $2.10 consensus estimate. The improved guidance suggests management expects earnings momentum to continue.
• Positive Sentiment: Credit trends improved: the provision for credit losses fell to $13.4 million from $16.3 million in the first quarter, while nonperforming loans declined to 1.58% of total loans from 1.63%. Loan balances also increased approximately 1% sequentially to $3.8 billion. First Internet Bancorp Reports Second Quarter 2026 Results
• Positive Sentiment: Revenue grew 23% year over year to $41.1 million, driven by 16% growth in net interest income to $32.4 million and 56% growth in noninterest income to $8.7 million.
• Neutral Sentiment: Recent coverage highlighted First Internet Bank’s focus on AI-powered financial intelligence and AI-enabled banking tools. The initiatives could support customer engagement over time, but no immediate financial contribution was provided. First Internet Bank AI-Powered Financial Intelligence
• Negative Sentiment: Quarterly revenue of $41.1 million fell short of the $43.83 million analyst estimate, indicating that the strong EPS result did not reflect an across-the-board revenue beat.
• Negative Sentiment: Total deposits declined $150.3 million, or 3%, from the prior quarter to $4.8 billion. The bank also continued to report a negative net margin and negative return on equity, underscoring ongoing profitability and funding pressures.

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).