First Internet Bancorp Q2 profit jumps as revenue rises

First Internet Bancorp

30/07/2026 21:18

Overview
US digital bank holding company reported Q2 net income and EPS up sharply from prior year
Company Q2 revenue rose 23% yr/yr, supported by strong noninterest income and net interest growth
Credit quality improved as nonaccrual loans and delinquencies declined sequentially

Outlook
Company sees 2026 diluted EPS of $2.35 to $2.45
First Internet Bancorp expects loan growth of 4% to 6% for 2026
Company expects FTE net interest margin to reach 2.75% to 2.80% by Q4 2026

Result Drivers
CREDIT QUALITY IMPROVEMENT - Co said provision for credit losses fell and nonaccrual loans and delinquencies declined, led by small business lending
FEE REVENUE GROWTH - Noninterest income rose 56% yr/yr, driven by growth in Banking-as-a-Service platform and expanded fintech partnerships
COMMERCIAL LOAN PRODUCTION - Commercial loan balances grew, led by construction and investor commercial real estate and single tenant lease financing, though early payoffs tempered overall growth

Company press release: ID:nBw75MJ7ja

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 EPS
 
$0.27
 
Q2 Net Income
 
$2.37 mln
 
Q2 CET1 Capital Ratio
 
8.90%
 

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 $28.00, about 4.8% above its July 29 closing price of $26.72
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads
July 29 - SoFi's unchanged profit forecast tempers record quarter, revenue outlook lift
July 30 - Coastal Financial posts Q2 loss on $68.8 mln credit charge
July 29 - PSQ Holdings Q2 revenue jumps on Fintech growth

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(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.)