First Internet Bancorp (NASDAQ:INBK) Posts Quarterly Earnings Results, Misses Expectations By $0.21 EPS

First Internet Bancorp (NASDAQ:INBK) released its quarterly earnings results on Thursday. The bank reported $0.57 EPS for the quarter, missing the consensus estimate of $0.78 by ($0.21), FiscalAI reports. First Internet Bancorp had a negative net margin of 9.01% and a negative return on equity of 0.55%. The firm had revenue of $43.94 million for the quarter, compared to analysts’ expectations of $46.17 million.

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 Trading Up 2.3%

Shares of INBK stock traded up $0.61 during trading hours on Thursday, hitting $27.27. The company had a trading volume of 55,532 shares, compared to its average volume of 50,080. The company has a debt-to-equity ratio of 0.95, a current ratio of 0.88 and a quick ratio of 0.87. The stock has a market capitalization of $238.07 million, a PE ratio of -7.57 and a beta of 0.87. The company’s fifty day moving average is $27.25 and its 200 day moving average is $24.66. First Internet Bancorp has a fifty-two week low of $17.05 and a fifty-two week high of $31.09.

First Internet Bancorp Announces Dividend

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

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the company. Benchmark raised their target price on First Internet Bancorp from $33.00 to $35.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. Zacks Research lowered First Internet Bancorp from a “strong-buy” rating to a “hold” rating in a research note on Tuesday. Weiss Ratings reiterated a “sell (d+)” rating on shares of First Internet Bancorp in a report on Friday, October 2nd. Finally, Piper Sandler increased 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. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, First Internet Bancorp currently has an average rating of “Hold” and an average target price of $29.38.

About First Internet Bancorp

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.