First Internet Bancorp Q3 revenue rises 7% to record, helped by fintech partnerships

First Internet Bancorp

Yesterday 20:31

Overview
US digital bank's Q3 revenue rose 7% quarter-over-quarter to a record high
Adjusted EPS for Q3 increased from prior quarter and prior year
Net interest margin expanded 8 bps to 2.47% in Q3

Outlook
Company sees Q4 diluted EPS of $1.02 to $1.07
Company expects Q4 FTE net interest margin of 2.75% to 2.80%
Company forecasts Q4 FTE net interest income of around $38.5 mln

Result Drivers
REVENUE GROWTH - Co said record revenue was driven by higher net interest income and noninterest income
FINTECH PARTNERSHIPS - Growth in embedded finance and fintech fee revenue contributed to higher net interest and noninterest income
CREDIT QUALITY IMPROVEMENT - Co said lower net charge-offs and declining delinquencies contributed to improved credit quality

Company press release: ID:nBw3K9m9Xa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
 
$0.54
 
Q3 Net Income
 
$4.82 mln
 
Q3 Net Interest Income
 
$34.7 mln
 

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 $28.75, about 7.8% above its October 28 closing price of $26.66
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
Oct 29 - Bankwell Financial Q3 revenue rises as asset quality improves
Oct 29 - West Bancorporation Q3 net income rises on higher net interest income
Oct 29 - First Mid Bancshares Q3 profit tops estimates on deposit growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)