First Internet Bancorp Q1 net income jumps 166%

Overview

• U.S. digital bank's Q1 revenue rose 21% yr/yr, net income up 166%

• Diluted EPS for Q1 rose 164% yr/yr

• Provision for credit losses increased due to CECL re-measurement, but credit trends improved

Outlook

• Company maintains 2026 guidance but notes heightened macroeconomic and geopolitical uncertainty

• First Internet Bancorp says full-year loan growth target of 15-17% may be ambitious

Result Drivers

• NET INTEREST INCOME AND MARGIN - Co said growth in net interest income and expansion of net interest margin drove revenue higher, attributed to disciplined balance sheet repositioning and proactive liability management

• LOAN PRODUCTION - Strong commercial loan production led by construction and single tenant lease financing, with robust loan pipelines setting stage for continued growth

• CREDIT TRENDS - Improved credit performance and enhanced underwriting standards led to declines in nonaccrual unguaranteed SBA and franchise finance balances

Company press release: ID:nBw5CLktPa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "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 $23.25, about 3% above its April 29 closing price of $22.58

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 5 three months ago

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