INBK Stock Forecast & Price Target

First Internet is expected to have a positive outlook on its stock, driven by factors such as its strong pipeline for commercial lending, increasing core fee income through its partnerships with FinTech companies, and effective cost controls leading to steady growth. With a solid loan growth target of mid-teens in 2026 and a focus on organic growth, the company's net Loans to Deposits ratio is expected to steadily increase. The recent strong results, including an operating EPS above consensus and improvement in TBV and TCE ratios, also contribute to the positive outlook.

First Internet is facing several challenges, including lower fee income, slow loan and deposit growth, increasing operating expenses, and below-average profitability. These issues have resulted in a heightened level of credit risk and could potentially lead to a shortfall in management's guidance for 2026. The company has also faced difficulties in its asset quality, with elevated non-performing loans and a decline in its allowance for loan losses. A potential upside for the company could come through partnerships with larger entities, but it is unclear when that may occur.