Overview

* First Internet Bancorp ( INBK ) 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 ( INBK ) 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

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 EPS $0.02

Q2 Net $193,000

Income

Q2 CET1 8.9%

Capital

Ratio

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 ( INBK ) 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:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)