First Internet Bancorp (NASDAQ:INBK) Releases Quarterly Earnings Results, Beats Expectations By $0.05 EPS

First Internet Bancorp (NASDAQ:INBK) announced its quarterly earnings results on Thursday. The bank reported $0.64 EPS for the quarter, beating analysts’ consensus estimates of $0.59 by $0.05, FiscalAI reports. The company had revenue of $42.11 million for the quarter, compared to analysts’ expectations of $32.80 million. First Internet Bancorp had a negative net margin of 9.35% and a negative return on equity of 2.05%.

Here are the key takeaways from First Internet Bancorp’s conference call:

• Quarterly results showed meaningful core growth with net interest income up ~29% YoY and net interest margin expanding to 2.22%, while management guides NII of $155M–$160M and NIM to 2.75%–2.80% by Q4 2026.
• Management completed a strategic sale of ~$850 million of single-tenant lease loans to Blackstone, which strengthened capital, improved rate-risk, reduced low-yield fixed assets, and boosted balance-sheet flexibility.
• Banking-as-a-service momentum is strong: >$1.3 billion in new fintech deposits in 2025, >$165 billion in payments processed (including $65B in Q4), and growing recurring fee and servicing revenue streams.
• Credit stress is concentrated in the SBA and franchise finance portfolios—Q4 provision was $12M, non-performing loans rose to $58.5M (1.56% of loans)—and management is guiding a higher 2026 provision of $50M–$53M, largely front?loaded in H1.
• Management is investing in AI, predictive analytics, tighter underwriting, and staffing to improve credit monitoring and operations; this is expected to reduce gain-on-sale SBA revenue (guide $19M–$20M) but be accretive to long?term NII and margin.

First Internet Bancorp Price Performance

Shares of NASDAQ:INBK opened at $22.24 on Friday. The company’s fifty day moving average price is $21.01 and its 200-day moving average price is $21.97. The firm has a market capitalization of $193.71 million, a price-to-earnings ratio of -5.85 and a beta of 0.81. First Internet Bancorp has a one year low of $17.05 and a one year high of $34.21. The company has a debt-to-equity ratio of 1.01, a current ratio of 0.91 and a quick ratio of 0.88.

First Internet Bancorp Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, January 15th. Shareholders of record on Wednesday, December 31st were paid a $0.06 dividend. This represents a $0.24 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend was Wednesday, December 31st. First Internet Bancorp’s payout ratio is currently -6.32%.

Insider Activity

In related news, COO Nicole S. Lorch bought 2,000 shares of the business’s stock in a transaction that occurred on Monday, November 17th. The stock was bought at an average cost of $17.96 per share, for a total transaction of $35,920.00. Following the completion of the transaction, the chief operating officer owned 70,206 shares of the company’s stock, valued at approximately $1,260,899.76. The trade was a 2.93% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 8.00% of the company’s stock.

Institutional Investors Weigh In On First Internet Bancorp

Several hedge funds have recently added to or reduced their stakes in the company. Victory Capital Management Inc. lifted its holdings in shares of First Internet Bancorp by 9.9% in the 3rd quarter. Victory Capital Management Inc. now owns 35,167 shares of the bank’s stock worth $789,000 after acquiring an additional 3,167 shares during the last quarter. Thrivent Financial for Lutherans grew its holdings in shares of First Internet Bancorp by 18.8% during the 2nd quarter. Thrivent Financial for Lutherans now owns 30,298 shares of the bank’s stock worth $815,000 after acquiring an additional 4,800 shares during the period. First Trust Advisors LP increased its stake in shares of First Internet Bancorp by 4.9% in the 2nd quarter. First Trust Advisors LP now owns 31,683 shares of the bank’s stock worth $852,000 after acquiring an additional 1,474 shares in the last quarter. Bridgeway Capital Management LLC grew its stake in shares of First Internet Bancorp by 1.3% in the 3rd 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 last quarter. Finally, Ancora Advisors LLC increased its stake in First Internet Bancorp by 28.0% during the 3rd quarter. Ancora Advisors LLC now owns 50,708 shares of the bank’s stock valued at $1,137,000 after purchasing an additional 11,095 shares in the last quarter. Institutional investors own 65.46% of the company’s stock.

Wall Street Analysts Forecast Growth

INBK has been the topic of several recent research reports. Hovde Group increased their target price on First Internet Bancorp from $26.00 to $29.00 and gave the stock an “outperform” rating in a research report on Friday. Piper Sandler dropped their price objective on First Internet Bancorp from $25.50 to $22.00 and set a “neutral” rating on the stock in a report on Monday, October 27th. Wall Street Zen raised First Internet Bancorp from a “sell” rating to a “hold” rating in a report on Saturday, January 10th. Keefe, Bruyette & Woods decreased their price target on First Internet Bancorp from $27.00 to $25.00 and set a “market perform” rating on the stock in a research report on Friday, October 24th. Finally, Zacks Research raised shares of First Internet Bancorp from a “strong sell” rating to a “hold” rating in a report on Thursday, December 25th. One research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, First Internet Bancorp presently has an average rating of “Hold” and a consensus target price of $25.33.

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).