First Internet Bancorp Q2 net income falls

Overview

• First Internet Bancorp Q2 net income $0.2 mln, diluted EPS $0.02

• Net interest income rises 11.5% from Q1, driven by higher loan yields

Outlook

• Company expects 3Q25 loan growth of ~2% (not annualized)

• Company projects 3Q25 net interest income of ~$33.5 mln

• Company anticipates FY 2026 net interest margin of 2.50% - 2.60%

• First Internet Bancorp sees FY 2026 loan growth of 5% - 7%

Result Drivers

• NET INTEREST INCOME - Driven by increased yields on earning assets and lower funding costs, per CEO David Becker

• LOAN AND DEPOSIT GROWTH - Loans grew by $108.2 mln and deposits by $353.2 mln from Q1, enhancing balance sheet liquidity

• CREDIT QUALITY ISSUES - Elevated net charge-offs and nonperforming loans primarily in franchise finance and small business lending portfolios

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for First Internet Bancorp is $30.00, about 7.8% above its July 22 closing price of $27.66

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nBwbpX6fGa