Group 1 - First Internet Bancorp (INBK) closed at $33.35, with a 0.1% gain over the past four weeks, and a mean price target of $41.70 suggests a 25% upside potential [1] - The mean estimate includes five short-term price targets with a standard deviation of $2.91, indicating variability among analysts; the lowest estimate is $38.50 (15.4% increase), while the highest is $45 (34.9% increase) [2] - Analysts show strong agreement in revising earnings estimates higher, which correlates with potential stock price increases [9][10] Group 2 - The Zacks Consensus Estimate for the current year has increased by 2.3%, with one estimate moving higher and no negative revisions [10] - INBK holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] - While the consensus price target may not be a reliable indicator, the direction of price movement implied by it appears to be a good guide for potential upside [11]

Financial Data and Key Metrics Changes - The company reported net income of $7 million, up 21% from the previous quarter, and diluted earnings per share of $0.80, up over 19% [7][8] - Total operating revenue grew over 4% compared to the prior quarter and increased over 36% year-over-year [6][10] - Net interest income was $21.8 million, up 2.1% from the second quarter, and net interest margin was 1.62%, a decrease of 5 basis points from the previous quarter [18][20] Business Line Data and Key Metrics Changes - The small business lending team reported a 35% increase in year-to-date SBA loan originations and a nearly 60% increase in sold loan volume compared to 2023 [9][10] - Non-interest income for the quarter was $12 million, up 9% from the second quarter, with gain on sale of loans totaling $9.9 million, a 20% increase [22][23] - The overall credit quality remains sound, with nonperforming loans to total loans at 56 basis points and nonperforming assets to total assets at 39 basis points [10][24] Market Data and Key Metrics Changes - Total deposits increased by almost $524 million, or 12% from the prior quarter, driven by growth in CD production and fintech partnership deposits [14][15] - Deposits from fintech partners were up 35% from the second quarter, totaling $507 million at quarter end [15] - The weighted average cost of new CDs was 4.45%, which is over 30 basis points lower than the average cost of maturing CDs [17][18] Company Strategy and Development Direction - The company aims to continue diversifying revenue and improving the composition of its loan portfolio, focusing on small business lending and construction loans [9][14] - There is a strong emphasis on maintaining balance sheet flexibility and liquidity, with a loan-to-deposit ratio declining to 84% from 93% [18][20] - The management is optimistic about achieving higher earnings and improved profitability in the fourth quarter and into 2025 [14][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued earnings momentum and the potential for net interest margin to rebound as liquidity is deployed [14][27] - The company anticipates a solid loan pipeline and expects loan balances to increase by 1.5% to 2% in the fourth quarter [26][49] - Management noted that the economic environment is stabilizing, with inflation slowing and interest rates expected to decline, which should benefit small business owners [34][36] Other Important Information - The tangible book value per share increased by 3.6% in the third quarter and is up almost 11% year-over-year [11] - The allowance for credit losses as a percentage of total loans was 1.13%, reflecting growth in the loan portfolio [24] - The company plans to invest in technology to enhance the digital experience and add product features for consumers and small businesses [27][51] Q&A Session Summary Question: Can you provide details on the franchise finance and small business loans that were past due? - Management indicated that there were a few delinquencies in franchise finance due to certain brand closures, and they are working with borrowers to restructure loans [29][30] Question: What are the expectations for SBA origination growth? - The company targets $600 million in SBA originations for next year, with a strong team in place to support this growth [40][41] Question: How should we think about the NIM trajectory for 2025? - Management expects significant net interest income growth next year, with potential margin expansion driven by the deployment of excess liquidity [44][46] Question: What are the preliminary thoughts on expense growth in 2025? - Expense growth is expected to be around 7% to 8%, with potential increases if SBA revenue ramps up significantly [54][55] Question: What is the outlook for the tax rate going forward? - The tax rate is expected to range from high 8% to 11% to 12% by the end of the year, depending on pre-tax earnings growth [56]

First Internet Bancorp (INBK) reported $33.79 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 36.3%. EPS of $0.80 for the same period compares to $0.39 a year ago.The reported revenue represents a surprise of +3.98% over the Zacks Consensus Estimate of $32.5 million. With the consensus EPS estimate being $0.81, the EPS surprise was -1.23%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare ...

First Internet Bancorp (INBK) came out with quarterly earnings of $0.80 per share, missing the Zacks Consensus Estimate of $0.81 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.23%. A quarter ago, it was expected that this internet bank would post earnings of $0.72 per share when it actually produced earnings of $0.72, delivering no surprise.Over the last four quarters, the comp ...

First Internet Bancorp Reports Third Quarter 2024 Results Fishers, Indiana, October 23, 2024 – First Internet Bancorp (the "Company") (Nasdaq: INBK), the parent company of First Internet Bank (the "Bank"), announced today financial and operational results for the third quarter ended September 30, 2024. Third Quarter 2024 Financial Highlights ▪ Net income of $7.0 million, an increase of 21.0% from the second quarter of 2024 ▪ Diluted earnings per share of $0.80, an increase of 19.4% from the second quarter o ...

Shares of First Internet Bancorp (INBK, Financial) fell 3.46% in mid-day trading on Oct 2. The stock reached an intraday low of $32.06, down from its previous close of $33.21. This places INBK 18.75% below its 52-week high of $39.46 and 127.21% above its 52-week low of $14.11. Trading volume was 5,915 shares, 17.3% of the average daily volume of 34,200. Wall Street Analysts Forecast Based on the one-year price targets offered by 5 analysts, the average target price for First Internet Bancorp (INBK, Financia ...

Core Insights - Investors in First Internet Bancorp (INBK) should monitor the stock closely due to significant movements in the options market, particularly the Aug 16, 2024 $12.50 Put, which has high implied volatility [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectation of future stock movement, with high levels suggesting potential for a significant price change or an upcoming event that could trigger a rally or sell-off [2] - The current high implied volatility for First Internet Bancorp suggests that options traders anticipate a notable price movement [4] Group 2: Analyst Sentiment - First Internet Bancorp holds a Zacks Rank 3 (Hold) in the Banks - Northeast industry, which is in the top 13% of the Zacks Industry Rank [3] - Over the past 30 days, one analyst has raised earnings estimates for the current quarter while another has lowered them, resulting in a slight increase in the Zacks Consensus Estimate from 83 cents to 84 cents per share [3] Group 3: Trading Strategies - The high implied volatility may indicate a developing trading opportunity, as seasoned options traders often seek to sell premium on such options to capture decay, hoping the stock does not move as much as expected by expiration [4]

Financial Data and Key Metrics Changes - The company reported net income of $5.8 million, an increase of 11.5%, and diluted earnings per share of $0.67, up 11.7% from the first quarter [101] - Net interest income for the quarter was $21.3 million, up 2.9% from the first quarter, with a fully taxable equivalent net interest margin increasing by 1 basis point [30][117] - The tangible book value per share increased over 1% during the quarter and is up over 6% year-over-year [6] Business Line Data and Key Metrics Changes - The SBA business saw year-to-date originations up 15% and solid loan volume up 58% compared to the first half of 2023 [4] - Non-interest income for the quarter was $11 million, up 32% from the first quarter, driven by record gains on sale revenue [108] - The construction team originated over $115 million in new commitments, with average construction loan balances up 16% compared to the first quarter [7] Market Data and Key Metrics Changes - Deposits from FinTech partners increased by 34% from the first quarter, totaling $375 million at quarter-end [10] - Average interest-bearing deposits were up over $185 million during the quarter, while average loan balances increased by only $44 million [12] - The company’s exposure to office commercial real estate remains less than 1% of the total loan portfolio [119] Company Strategy and Development Direction - The company is focused on optimizing the loan portfolio and diversifying revenue streams while maintaining deposit costs [3] - FinTech partnerships are seen as vital for developing innovative solutions and enhancing shareholder returns, with total revenue from this line of business up 300% for the first half of 2024 compared to the same period last year [8] - The company aims to achieve annual net interest income growth of 20% for 2024, with loan growth projected between 7.5% to 10% [110] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of net interest income and net interest margin, anticipating a stable environment for deposit costs [13][117] - The company is optimistic about the outlook for the remainder of 2024, citing strong pipelines and a focus on high-quality sales personnel [145] - Management noted that regulatory scrutiny in the fintech space has increased, but the company is well-prepared to navigate these challenges [131] Other Important Information - The allowance for credit losses as a percentage of total loans was 1.10% at the end of the second quarter, reflecting growth in the loan portfolio [62] - The company has reduced its outstanding balances related to Red Lobster by $3 million, with no delinquencies reported [100] - Non-interest expense for the quarter was $22.3 million, up 3.5% from the first quarter, including almost $600,000 of non-recurring expenses [127] Q&A Session Summary Question: How do you view the revenue trajectory for SBA in the second half of the year? - Management indicated that while it may be difficult to replicate the production in Q2, they expect to continue seeing growth in SBA revenue [42] Question: Can you provide insights on the technology contracts mentioned? - Management clarified that the termination of some tech contracts was due to finding better alternatives and does not indicate a reduction in capabilities [24][25] Question: What are the expectations for loan growth in the back half of the year? - Management forecasted loan balances to be up between 7.5% to 10%, with a focus on maintaining a higher level of originations [142]

Financial Performance - Net income reached $5.8 million, with diluted EPS at $0.67, showing increases of 11.5% and 13.6% respectively compared to 1Q24 [6] - Adjusted net income was $6.2 million, a 20.2% increase from 1Q24 [6] - Adjusted diluted EPS increased by 22.0% to $0.72 [6] - Total revenue increased by 11.3% from 1Q24, reaching $32.4 million [6] Loan Portfolio - Total portfolio loan balances increased by 1.3% from 1Q24 [7, 10] - Commercial loan balances increased by $46.9 million, or 1.5%, from 1Q24 [10] - Consumer loan balances increased by $7.0 million, or 0.9%, from 1Q24 [10] - The weighted average yield on new loans funded in 2Q24 was 8.88% [7, 10] Deposits and Liquidity - Total deposits remained stable compared to 1Q24, reaching $4.3 billion as of June 30, 2024, and are up 10.9% from 2Q23 [12] - Cash and unused borrowing capacity totaled $1.7 billion at June 30, 2024 [20] - The loan to deposits ratio is 92.7% [7, 20] Asset Quality and Capital - NPAs to total assets ratio is 0.24% [7] - TCE / TA ratio is 6.88%, and the CET1 ratio is 9.47% [8] - Tangible book value per share increased by 1.3% to $42.37 [8] Net Interest Margin - Net interest margin was 1.67%, and FTE NIM was 1.76%, both improving by 1 bp from 1Q24 [7] - Deposit costs increased 4 bps from 1Q24 to 4.29% for 2Q24 [28] Noninterest Income and Expense - Noninterest income increased by 32.2% to $11.0 million from $8.3 million in 1Q24 [30] - Gain on sale of loans increased by 26.9% to $8.3 million from $6.5 million in 1Q24 [30] - Noninterest expense increased by 6.2% to $22.3 million from $21.0 million in 1Q24 [36]

Core Insights - First Internet Bancorp (INBK) reported revenue of $32.36 million for the quarter ended June 2024, marking a year-over-year increase of 34.7% [5] - The reported revenue exceeded the Zacks Consensus Estimate of $30.55 million, resulting in a surprise of +5.93% [1] - Earnings per share (EPS) for the quarter was $0.72, compared to $0.44 a year ago, indicating significant growth [5] Financial Metrics - Net Interest Margin was reported at 1.7%, matching the average estimate from two analysts [3] - Net Interest Income (FTE) was $22.50 million, slightly below the average estimate of $23.11 million [3] - Total noninterest income reached $11.03 million, surpassing the average estimate of $8.64 million [3] - Net Interest Income was $21.33 million, compared to the average estimate of $21.91 million [3] Stock Performance - Shares of First Internet Bancorp have returned +47.9% over the past month, significantly outperforming the Zacks S&P 500 composite, which changed by +1.8% [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]