NasdaqGS:INBK

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

First Internet Bancorp

Executive Summary

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


Snowflake Analysis

Flawless balance sheet and undervalued.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: INBK's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-1.5%

INBK

-0.7%

US Banks

-0.5%

US Market


1 Year Return

16.6%

INBK

-21.9%

US Banks

18.3%

US Market

Return vs Industry: INBK exceeded the US Banks industry which returned -21.7% over the past year.

Return vs Market: INBK underperformed the US Market which returned 19.1% over the past year.


Shareholder returns

INBKIndustryMarket
7 Day-1.5%-0.7%-0.5%
30 Day16.6%10.1%3.6%
90 Day72.5%12.4%5.6%
1 Year18.2%16.6%-19.1%-21.9%21.0%18.3%
3 Year-28.2%-30.5%-4.4%-12.4%45.2%35.6%
5 Year-13.9%-18.1%29.2%13.1%89.8%68.8%

Long-Term 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?

27.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INBK ($26.4) is trading below our estimate of fair value ($36.46)

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 (10.2x) compared to the US Banks industry average (11.2x).

PE vs Market: INBK is good value based on its PE Ratio (10.2x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: INBK is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: INBK's PB Ratio (0.8x) is in line with the US Banks industry average.


Next Steps

Future Growth

How is First Internet Bancorp forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

23.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INBK's forecast earnings growth (23.1% per year) is above the savings rate (2.2%).

Earnings vs Market: INBK's earnings (23.1% per year) are forecast to grow faster than the US market (21.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: INBK's revenue (12.9% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: INBK's revenue (12.9% 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 (10.8%).


Next Steps

Past Performance

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

22.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INBK has high quality earnings.

Growing Profit Margin: INBK's current net profit margins (30.5%) are lower than last year (31.3%).


Past Earnings Growth Analysis

Earnings Trend: INBK's earnings have grown significantly by 22.1% per year over the past 5 years.

Accelerating Growth: INBK's earnings growth over the past year (17%) is below its 5-year average (22.1% per year).

Earnings vs Industry: INBK earnings growth over the past year (17%) exceeded the Banks industry -4.3%.


Return on Equity

High ROE: INBK's Return on Equity (8%) is considered low.


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


Financial Institutions Analysis

Asset Level: INBK's Assets to Equity ratio (13.6x) is moderate.

Allowance for Bad Loans: INBK has a sufficient allowance for bad loans (275%).

Low Risk Liabilities: 84% of INBK's liabilities are made up of primarily low risk sources of funding.

Loan Level: INBK has an appropriate level of Loans to Assets ratio (69%).

Low Risk Deposits: INBK's Loans to Deposits ratio (89%) is appropriate.

Level of Bad Loans: INBK has an appropriate level of bad loans (0.3%).


Next Steps

Dividend

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

0.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: INBK's dividend (0.91%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: INBK's dividend (0.91%) is low compared to the top 25% of dividend payers in the US market (4.2%).


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.3%), 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 (6.1% payout ratio).


Next Steps

Management

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

7.8yrs

Average management tenure


CEO

David Becker (67 yo)

15.83yrs

Tenure

US$1,616,866

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 ($USD1.62M) is above average for companies of similar size in the US market ($USD1.16M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Becker
Chairman15.83yrsUS$1.62m2.75%
$ 7.1m
Kenneth Lovik
Executive VP & CFO6.25yrsUS$634.88k0.22%
$ 564.2k
Nicole Lorch
Executive VP & COO3.83yrsUS$645.37k0.27%
$ 686.9k
C. Perfetti
Executive VP & Secretary8.83yrsUS$490.71k0.48%
$ 1.3m
Paula Deemer
Executive Assistant6.83yrsno datano data
Kevin Quinn
Senior Vice President of Retail Lending - First Internet Bank9.83yrsno datano data
Timothy Dusing
Senior Vice President of Public Finance - First Internet Bankno datano datano data

7.8yrs

Average Tenure

58.5yo

Average Age

Experienced Management: INBK's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Becker
Chairman15.83yrsUS$1.62m2.75%
$ 7.1m
Jean Wojtowicz
Independent Director14.83yrsUS$81.48k0.26%
$ 677.6k
John Keach
Independent Director8yrsUS$82.48k0.20%
$ 523.0k
Ralph Whitney
Independent Director14.83yrsUS$82.48k0.26%
$ 676.7k
Michael Smith
Independent Director0.50yrno data0.015%
$ 38.6k
David Lovejoy
Vice Chairman & Lead Independent Director14.83yrsUS$88.48k0.15%
$ 389.4k
Jerry Williams
Independent Director14.83yrsUS$81.48k0.90%
$ 2.3m
Ana Dutra
Independent Director0.50yrno data0.015%
$ 38.6k

14.8yrs

Average Tenure

69.5yo

Average Age

Experienced Board: INBK's board of directors are seasoned and experienced ( 14.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: INBK insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$258.735m
  • Shares outstanding: 9.80m
  • 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 the 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 sav...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 01:00
End of Day Share Price2020/11/20 00:00
Earnings2020/09/30
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.