First Internet Bancorp (NASDAQ:INBK) Announces Earnings Results

First Internet Bancorp (NASDAQ:INBK) issued its quarterly earnings results on Thursday. The bank reported $0.27 earnings per share 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 firm had revenue of $41.12 million during 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%

First Internet Bancorp stock opened at $26.29 on Friday. The firm has a market capitalization of $229.17 million, a price-to-earnings ratio of -6.83 and a beta of 0.83. The firm’s fifty day moving average price is $25.98 and its two-hundred day moving average price is $23.30. First Internet Bancorp has a 1-year low of $17.05 and a 1-year high of $28.88. 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 Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th were paid a $0.06 dividend. This represents a $0.24 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend was Tuesday, June 30th. First Internet Bancorp’s dividend payout ratio (DPR) is -6.23%.

Analysts Set New Price Targets

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

First Internet Bancorp News Roundup

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. The result exceeded analyst expectations and reflected a 23% increase in revenue to $41.1 million. First Internet Bancorp Q2 net income rises to $2.4 million
• Positive Sentiment: Management raised or reaffirmed full-year 2026 diluted EPS guidance at $2.35-$2.45, above the approximately $2.10 analyst consensus, which may support estimates and investor confidence. First Internet Bancorp earnings and guidance
• Positive Sentiment: Credit trends improved: provision for credit losses declined to $13.4 million from $16.3 million in the first quarter, while nonperforming loans fell to 1.58% of total loans from 1.63%. Loans also increased about 1% sequentially to $3.8 billion. First Internet Bancorp Reports Second Quarter 2026 Results
• Neutral Sentiment: The earnings call provided management’s discussion of the second-quarter results, credit performance and 2026 outlook, giving investors additional context for the updated guidance. First Internet Bancorp Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Recent coverage highlighted First Internet Bank’s efforts to bring artificial-intelligence-powered financial intelligence and banking tools directly to customers. The initiative could improve customer engagement over time, but its near-term financial effect is unclear. First Internet Bank Puts AI-Powered Financial Intelligence Directly in Customers’ Hands
• Negative Sentiment: Quarterly revenue of $41.1 million fell short of the roughly $43.8 million consensus estimate. Deposits declined $150.3 million, or 3%, from the prior quarter, which could increase funding pressure. First Internet Bancorp quarterly earnings results

Institutional Investors Weigh In On First Internet Bancorp

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Bridgeway Capital Management LLC raised its holdings in shares of First Internet Bancorp by 1.3% in the third quarter. Bridgeway Capital Management LLC now owns 44,217 shares of the bank’s stock valued at $992,000 after purchasing an additional 584 shares during the last quarter. Public Employees Retirement System of Ohio boosted its holdings in First Internet Bancorp by 19.9% during the fourth quarter. Public Employees Retirement System of Ohio now owns 6,024 shares of the bank’s stock worth $126,000 after purchasing an additional 1,000 shares during the last quarter. Empowered Funds LLC grew its position in 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 purchasing an additional 1,012 shares in the last quarter. Man Group plc grew its position in First Internet Bancorp by 5.1% in the 3rd quarter. Man Group plc now owns 21,818 shares of the bank’s stock worth $489,000 after purchasing an additional 1,053 shares in the last quarter. Finally, Barclays PLC increased its stake in 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 buying an additional 1,141 shares during the last quarter. Institutional investors and hedge funds own 65.46% of the company’s stock.

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).