First Internet Bancorp's Q4 revenue rises

Overview

• Digital bank's Q4 adjusted revenue grew 21% yr/yr, driven by net interest income increase

• Net income for Q4 was $5.3 mln, with adjusted EPS of $0.64

Outlook

• Company expects 2026 loan growth of 15% to 17% driven by strong pipelines

• First Internet Bancorp projects 2026 FTE net interest margin of 2.75% to 2.80%

• Company anticipates 2026 provision for credit losses of $50 mln to $53 mln

Result Drivers

• NET INTEREST INCOME - Co reported a 29% increase in net interest income, contributing to a 21% rise in adjusted revenue

• CREDIT TRENDS - Provision for credit losses declined significantly, reflecting improved credit trends and lower net charge-offs

• LOAN PRODUCTION - Robust commercial loan production, driven by single tenant lease financing and construction, supported net interest income growth

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 $25.00, about 17.8% above its January 28 closing price of $21.22

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nBw9cyFfHa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.