NasdaqGS:INBK

Stock Analysis Report

First Internet Bancorp

Executive Summary

First Internet Bancorp operates as a bank holding company for First Internet Bank of Indiana that provides commercial and retail banking products and services in the United States.

Rewards

Trading at 23.4% below its fair value

Earnings are forecast to grow 11.43% per year

Earnings grew by 15.2% over the past year

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

Very undervalued with flawless balance sheet.


Similar Companies

Share Price & News

How has First Internet Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: INBK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.1%

INBK

0.3%

US Banks

0.9%

US Market


1 Year Return

28.5%

INBK

12.0%

US Banks

20.0%

US Market

Return vs Industry: INBK exceeded the US Banks industry which returned 12.1% over the past year.

Return vs Market: INBK exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

INBKIndustryMarket
7 Day3.1%0.3%0.9%
30 Day16.1%-1.3%1.4%
90 Day26.1%1.2%8.8%
1 Year30.0%28.5%15.3%12.0%22.5%20.0%
3 Year-10.1%-12.5%25.1%16.2%49.9%40.3%
5 Year81.1%72.8%76.7%56.6%73.2%54.1%

Price Volatility Vs. Market

How volatile is First Internet Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is First Internet Bancorp undervalued compared to its fair value and its price relative to the market?

23.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INBK ($28.08) is trading below our estimate of fair value ($36.66)

Significantly Below Fair Value: INBK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: INBK is good value based on its PE Ratio (11.2x) compared to the Banks industry average (12.6x).

PE vs Market: INBK is good value based on its PE Ratio (11.2x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: INBK is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: INBK is good value based on its PB Ratio (0.9x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is First Internet Bancorp forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INBK's forecast earnings growth (11.4% per year) is above the savings rate (1.7%).

Earnings vs Market: INBK's earnings (11.4% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: INBK's earnings are forecast to grow, but not significantly.

Revenue vs Market: INBK's revenue (3.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: INBK's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INBK's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has First Internet Bancorp performed over the past 5 years?

27.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INBK has high quality earnings.

Growing Profit Margin: INBK's current net profit margins (34.2%) are higher than last year (32.6%).


Past Earnings Growth Analysis

Earnings Trend: INBK's earnings have grown significantly by 27.8% per year over the past 5 years.

Accelerating Growth: INBK's earnings growth over the past year (15.2%) is below its 5-year average (27.8% per year).

Earnings vs Industry: INBK earnings growth over the past year (15.2%) exceeded the Banks industry 12.2%.


Return on Equity

High ROE: INBK's Return on Equity (8.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is First Internet Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: INBK has a low level of unsold assets or inventory.

Debt Coverage by Assets: INBK's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

Asset Level: INBK's level of assets compared to its equity is moderate.

Allowance for Bad Loans: INBK has a sufficient allowance for bad loans.

Low Risk Liabilities: INBK's liabilities are made up of primarily low risk sources of funding.

Loan Level: INBK has an acceptable proportion of non-loan assets held.

Low Risk Deposits: INBK's loans are broadly funded by customer deposits.

Level of Bad Loans: INBK has an appropriate level of bad loans (0.23%)


Next Steps

Dividend

What is First Internet Bancorp's current dividend yield, its reliability and sustainability?

0.85%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: INBK's dividend (0.85%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: INBK's dividend (0.85%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, INBK has been paying a dividend for less than 10 years.

Growing Dividend: INBK's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.5%), INBK's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: INBK's dividends in 3 years are forecast to be thoroughly covered by earnings (7.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.1yrs

Average management tenure


CEO

David Becker (66yo)

15.1yrs

Tenure

US$1,502,058

Compensation

Mr. David B. Becker is the Chairman, President and Chief Executive Officer of First Internet Bancorp (“Bancorp”) since 2006 and 2007 respectively. Mr. Becker is the founder of the First Internet Bank of In ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD1.50M) is above average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Becker
Chairman15.1yrsUS$1.50m2.7% $7.4m
Kenneth Lovik
Executive VP & CFO5.5yrsUS$564.83k0.17% $454.9k
Nicole Lorch
Executive VP & COO3.1yrsUS$551.76k0.20% $555.7k
C. Perfetti
Executive VP & Corporate Secretary8.1yrsUS$442.74k0.47% $1.3m
Paula Deemer
Executive Assistant6.1yrsno datano data
Stephen Farrell
Senior VP0yrsno datano data
Kevin Quinn
Senior Vice President of Retail Lending - First Internet Bank9.1yrsno datano data
Connie Shepherd
Senior Vice President of Commercial Banking - First Internet Bank8.3yrsno datano data
Christina Smith
Vice President of First Internet Bank and Relationship Manager of First Internet Bank0yrsno datano data
Anne Sharkey
Senior Vice President of Operations - First Internet Bank0yrsno datano data

8.1yrs

Average Tenure

57.5yo

Average Age

Experienced Management: INBK's management team is seasoned and experienced (8.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Becker
Chairman15.1yrsUS$1.50m2.7% $7.4m
Jean Wojtowicz
Independent Director14.1yrsUS$72.65k0.26% $720.7k
John Keach
Independent Director7.3yrsUS$62.65k0.18% $500.1k
Ralph Whitney
Independent Director14.1yrsUS$67.65k0.26% $719.7k
Ann Murtlow
Independent Director7.1yrsUS$57.65k0.13% $364.3k
David Lovejoy
Vice Chairman of the Board & lead Independent Director14.1yrsUS$74.65k0.15% $414.2k
Jerry Williams
Independent Director14.1yrsUS$66.65k0.71% $1.9m

14.1yrs

Average Tenure

67yo

Average Age

Experienced Board: INBK's board of directors are seasoned and experienced ( 14.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.8%.


Top Shareholders

Company Information

First Internet Bancorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Internet Bancorp
  • Ticker: INBK
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$273.550m
  • Shares outstanding: 9.74m
  • Website: https://www.firstinternetbancorp.com

Number of Employees


Location

  • First Internet Bancorp
  • 11201 USA Parkway
  • Fishers
  • Indiana
  • 46037
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INBKNasdaqGS (Nasdaq Global Select)YesVoting Common StockUSUSDDec 2004
45HDB (Deutsche Boerse AG)YesVoting Common StockDEEURDec 2004

Biography

First Internet Bancorp operates as a bank holding company for First Internet Bank of Indiana that provides commercial and retail banking products and services in the United States. The company offers savings and money market accounts, non-interest bearing and interest-bearing demand deposits, brokered deposit accounts, and certificates of deposit. It also provides commercial and industrial, owner-occupied commercial real estate, investor commercial real estate, construction, residential mortgage, term, small installment, home improvement, home equity, and other consumer loans, as well as single tenant lease financing, public and healthcare finance, lines of credit, and letters of credit to individuals and commercial customers. In addition, the company is involved in the purchase, manage, service, and safekeeping of municipal securities; and offers municipal lending and leasing products to government entities. In addition, it provides corporate credit card and treasury management services. The company offers its services through its Website, www.firstib.com. First Internet Bancorp was founded in 1999 and is based in Fishers, Indiana. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 00:07
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.