INBK Stock Forecast & Price Target

First Internet is set to benefit from its niche market of online banking and its strong focus on CRE and C&I lending, which have shown consistent growth and profitability. The company's efficient operations through internet-based services and lack of physical branches allow for cost savings and potential for increased profitability. This, combined with its solid financial metrics and a single segment business model, make First Internet a strong investment choice with potential for future growth and stability.

First Internet is facing elevated non-performing loans and NPAs, primarily due to issues in their SBA and franchise finance portfolios. While management has optimistic expectations for an inflection point in 2026, there are still potential risks to achieving their targets, including slower loan and deposit growth, IT-related risks, and credit quality deterioration. Additionally, their P/E multiples are lower than their peer group, and core deposits make up a smaller percentage of their non-equity funding, which may limit their ability to weather economic challenges.