First Internet Bancorp plunges as credit issues persist

First Internet Bancorp

23/10/2025 18:06

** Community lender First Internet Bancorp's INBK.O shares plunge 14.6% to $18.72

** Late Wednesday, INBK reported profit below Wall Street expectations for the seventh straight quarter as higher rainy day funds weighed, according to data compiled by LSEG

** "Took decisive action to address credit issues in our small business lending and franchise finance portfolios, which provides us with a cleaner credit profile and sets the stage for improved performance in future quarters" - CEO David Becker

     ** Piper Sandler says it was another disappointing quarter from INBK given higher non-performing assets as well as a continuation of elevated net charge-offs tied to SBA and franchise finance

** "We remain hopeful a capital raise is not in the cards. The shares are priced for a potential dilutive capital raise, but each continued quarter of credit stress has provided fresh concern," brokerage Hovde Group says

** Two of five brokerages rate the stock "buy" and three "hold"; median PT $27 - LSEG

** As of last close, INBK stock was down 39% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)

 ((ArasuKannagi.Basil@thomsonreuters.com;))