Welcome to our dedicated page for First Internet B news (Ticker: INBK), a resource for investors and traders seeking the latest updates and insights on First Internet B stock.
Overview of First Internet Bancorp
First Internet Bancorp (NASDAQ: INBK) is a bank holding company headquartered in the United States. It operates primarily through its wholly-owned subsidiary, First Internet Bank of Indiana, which provides a wide range of commercial and retail banking services. Established as a branchless, internet-only bank, First Internet Bancorp has positioned itself as a pioneer in leveraging technology to deliver banking services efficiently and cost-effectively. This innovative model allows the company to operate without the overhead costs associated with maintaining physical branch networks, offering a streamlined and convenient banking experience to its customers.
Core Business Model
First Internet Bancorp’s business model is centered around its single operating segment, Commercial Banking. The company generates revenue through a combination of interest income from loans and investments, as well as non-interest income from fees associated with its various financial services. By focusing on a branchless banking approach, the company caters to both individuals and businesses seeking a modern, technology-driven banking experience. Its operations are supported by a robust digital platform that facilitates seamless account management, loan applications, and treasury services.
Product and Service Offerings
First Internet Bancorp offers a diverse portfolio of banking products and services, including:
- Deposit Accounts: Savings accounts, money market accounts, certificates of deposit, and both interest-bearing and non-interest-bearing demand deposits.
- Lending Services: The company provides a wide range of loans, including commercial and industrial loans, owner-occupied and investor commercial real estate loans, construction loans, residential mortgages, home equity loans, and consumer loans such as small installment and home improvement loans.
- Specialized Financing: Single-tenant lease financing, municipal lending and leasing products, and public and healthcare finance solutions.
- Corporate Services: Treasury management, corporate credit cards, lines of credit, and letters of credit tailored for commercial customers.
Market Position and Differentiation
Operating within the highly competitive financial services industry, First Internet Bancorp distinguishes itself through its internet-only banking model. This approach enables the company to serve customers nationwide without the geographic limitations imposed by physical branch networks. Its focus on niche markets such as single-tenant lease financing and municipal securities further sets it apart from traditional banks. By targeting these specialized segments, the company aims to build expertise and establish a competitive edge in areas with potentially less direct competition.
Challenges and Competitive Landscape
First Internet Bancorp faces several challenges inherent to the banking industry, including interest rate volatility, regulatory compliance, and competition from both traditional banks and emerging fintech companies. The branchless model, while cost-efficient, may limit the company’s ability to attract customers who prefer in-person interactions. Additionally, its reliance on a single operating segment could expose it to risks associated with market fluctuations in the commercial banking sector. Key competitors include regional banks, national financial institutions, and fintech firms offering similar digital-first banking solutions.
Conclusion
First Internet Bancorp represents a modern approach to banking, leveraging technology to provide efficient and accessible financial services. Its branchless model, combined with a focus on niche lending markets, positions it as a unique player in the financial services industry. While challenges such as competition and regulatory pressures persist, the company’s innovative approach and specialized offerings underscore its commitment to meeting the evolving needs of its customers.
First Internet Bancorp (Nasdaq: INBK) will release its fourth quarter 2021 financial results on
First Internet Bancorp (NASDAQ: INBK) has announced an extension of its exchange offer for up to $60 million of 3.75% Fixed-to-Floating Rate Subordinated Notes due 2031 until December 30, 2021, at 11:59 p.m. New York City time. As of December 22, 2021, approximately $53.3 million, or 88.83%, of the original notes had been tendered. The exchange notes are now registered under the Securities Act of 1933, allowing for unrestricted transferability. This extension aims to facilitate more participation from existing noteholders.
The Board of Directors of First Internet Bancorp (NASDAQ: INBK) has declared a quarterly cash dividend of
First Internet Bancorp (NASDAQ: INBK) appointed Justin P. Christian and Ann Colussi Dee to its Board of Directors. Christian, CEO of BCforward, has a proven track record, guiding the firm to projected revenues of $600MM for FY2021. Dee, an Executive VP at Duke Realty, brings over 26 years of legal and executive experience. These appointments are expected to enhance the board's diversity and strategic thinking, aligning with the company's innovative approach to banking. First Internet Bancorp has assets of $4.3 billion as of September 30, 2021.
First Internet Bank has been recognized as one of the Best Banks to Work For for the ninth consecutive year by American Banker and Best Companies Group, highlighting its strong employee engagement and positive corporate culture. CEO David Becker attributed this achievement to a dedicated leadership team and a supportive work environment that fosters a diverse workforce. The evaluation involved a review of workplace policies and employee surveys. As of September 30, 2021, the bank holds assets of $4.3 billion.
First Internet Bank has appointed Clayton Baker as Senior Business Development Officer, expanding its Small Business Administration (SBA) Lending team. Baker brings over 17 years of banking experience, previously serving at Atlantic Capital Bank among others. His role aims to enhance SBA loan accessibility for small business clients. As of September 30, 2021, the bank reported assets of $4.3 billion, offering a range of financial services including consumer loans and commercial real estate loans.
First Internet Bank has appointed Ryan Hasher as the new Vice President of Commercial Banking. Based in Arizona, Hasher will report to Neil Barna, the Regional Vice President. Hasher's prior role was with BBVA USA, where he was a Business Banking Relationship Manager. The bank, with assets of $4.3 billion as of September 30, 2021, aims to enhance client services in the Phoenix area by offering flexible financing solutions. The appointment reflects First Internet Bank's commitment to supporting business growth and providing essential banking services.
First Internet Bancorp (NASDAQ: INBK) has announced its definitive agreement to acquire First Century Bancorp for $80 million in cash. This acquisition will enhance First Internet's growth opportunities and diversify its revenue streams by incorporating First Century's technology-driven services, including payments and HOA services. The deal is anticipated to be 21% accretive to 2023 earnings per share and slightly dilutive to tangible book value per share with a three-year earnback period. Both boards approved the merger, expected to close in Q1 2022, subject to regulatory and shareholder approvals.
First Internet Bank has appointed Tyler Maragh as Vice President, Senior Business Development Officer in its SBA Lending team. With extensive experience in small business lending, Maragh aims to enhance the bank's presence as a leading SBA preferred lender. Previously, he held a similar role at Byline Bank and has worked with Liberty SBF and Marcus & Millichap. The Bank, founded in 1999, has $4.3 billion in assets as of September 30, 2021, providing a range of banking services including SBA financing and commercial loans.
First Internet Bancorp (Nasdaq: INBK) reported a net income of $12.1 million for Q3 2021, a 43.7% increase from Q3 2020, with diluted earnings per share rising to $1.21. Total revenue reached $28.7 million, reflecting a 2.8% growth year-over-year. The company authorized a $30 million stock repurchase plan through 2022. Despite strong financial performance, net interest income fell to $20.9 million, down from the previous quarter. Loan balances decreased slightly, but credit quality remained solid.
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