First Internet Bancorp Q4 2025 Earnings Call Highlights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Significant Revenue Growth: First Internet Bancorp reported a net income of $5.3 million for Q4 2025, translating to $0.60 per diluted share, with adjusted total revenue reaching $42.1 million, reflecting a robust 21% year-over-year increase that underscores the strength of its digital banking model.
- Interest Income Improvement: The bank experienced a 30% year-over-year increase in net interest income, with net interest margin rising to 2.22%, driven by effective expense management and a decrease in funding costs from 4.30% to 3.68%, laying a solid foundation for future profitability.
- Loan and Deposit Growth: As of December 31, 2025, total loans reached $3.7 billion, up $143 million from the linked quarter, while total deposits stood at $4.8 billion, with loan growth projected to remain between 15% and 17% in 2026, reflecting a strong commercial lending pipeline.
- Increased Credit Loss Provisions: Management anticipates an increase in provisions for credit losses to between $50 million and $53 million in 2026, primarily addressing specific credit issues in the SBA and franchise finance portfolios, indicating a cautious approach to future credit risks.
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Analyst Views on INBK
Wall Street analysts forecast INBK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for INBK is 27.33 USD with a low forecast of 22.00 USD and a high forecast of 35.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 21.220
Low
22.00
Averages
27.33
High
35.00
Current: 21.220
Low
22.00
Averages
27.33
High
35.00
About INBK
First Internet Bancorp is a bank holding company, which is engaged in conducting its primary business activities through its wholly owned subsidiary, First Internet Bank of Indiana (the Bank), an Indiana chartered bank. The Bank offers a range of commercial, small business, consumer and municipal banking products and services. The Bank conducts its consumer and small business deposit operations primarily through digital channels on a nationwide basis and have no traditional branch offices. Its consumer lending products are primarily originated on a nationwide basis through relationships with dealerships and financing partners. The Bank's commercial banking products and services are delivered through a relationship banking model and include commercial and industrial (C&I) banking, construction and investor commercial real estate, single tenant lease financing, public finance, healthcare finance, small business lending, commercial deposits, and treasury management.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
First Internet Bancorp Q4 2025 Earnings Call Highlights
- Significant Revenue Growth: First Internet Bancorp reported a net income of $5.3 million for Q4 2025, translating to $0.60 per diluted share, with adjusted total revenue reaching $42.1 million, reflecting a robust 21% year-over-year increase that underscores the strength of its digital banking model.
- Interest Income Improvement: The bank experienced a 30% year-over-year increase in net interest income, with net interest margin rising to 2.22%, driven by effective expense management and a decrease in funding costs from 4.30% to 3.68%, laying a solid foundation for future profitability.
- Loan and Deposit Growth: As of December 31, 2025, total loans reached $3.7 billion, up $143 million from the linked quarter, while total deposits stood at $4.8 billion, with loan growth projected to remain between 15% and 17% in 2026, reflecting a strong commercial lending pipeline.
- Increased Credit Loss Provisions: Management anticipates an increase in provisions for credit losses to between $50 million and $53 million in 2026, primarily addressing specific credit issues in the SBA and franchise finance portfolios, indicating a cautious approach to future credit risks.
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First Internet Bancorp (INBK) Earnings Transcript
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