First Internet Bancorp (NASDAQ:INBK) Issues Earnings Results

First Internet Bancorp (NASDAQ:INBK) released its quarterly earnings data 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 business 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 Up 2.3%

Shares of INBK stock traded up $0.61 during mid-day trading on Thursday, reaching $27.27. 55,532 shares of the company’s stock traded hands, compared to its average volume of 50,080. First Internet Bancorp has a 12 month low of $17.05 and a 12 month high of $31.09. The company has a quick ratio of 0.87, a current ratio of 0.88 and a debt-to-equity ratio of 0.95. The company’s 50-day moving average price is $27.25 and its 200-day moving average price is $24.66. The company has a market cap of $238.07 million, a P/E ratio of -7.57 and a beta of 0.87.

First Internet Bancorp Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st were issued 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%.

Analysts Set New Price Targets

A number of research analysts have weighed in on INBK shares. Zacks Research lowered First Internet Bancorp from a “strong-buy” rating to a “hold” rating in a report on Tuesday. Weiss Ratings restated a “sell (d+)” rating on shares of First Internet Bancorp in a research report on Friday, October 2nd. Benchmark boosted their price objective on shares of First Internet Bancorp from $33.00 to $35.00 and gave the stock a “buy” rating in a report on Friday, July 31st. Finally, Piper Sandler boosted their target price on First Internet Bancorp from $26.00 to $29.50 and gave the company a “neutral” rating in a research note on Friday, July 31st. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $29.38.

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.