INBK Stock Forecast & Price Target

First Internet is experiencing weaker financial performance due to elevated non-performing loans and credit costs, which are expected to remain high in the first half of 2026. While efforts to improve underwriting and origination processes may support better credit performance in the long term, limited near-term catalysts and potential risks from external entities approaching for acquisition may hinder the stock's upside potential. However, a potential upside opportunity may emerge from improved credit performance, higher fee income, and loan and deposit growth, coupled with better management of operating expenses and IT-related risks.

First Internet is highly dependent on its non-interest income, particularly from its fintech partners, and has a higher proportion of commercial real estate lending which could lead to potential credit delinquencies. With slower loan growth and elevated expenses, the efficiency ratio may also decrease in the long-term, potentially resulting in negative impacts on earnings. Additionally, the bank's asset quality is a concern, as it is dealing with elevated non-performing assets and loan charge-offs.