INBK Stock Forecast & Price Target

First Internet is a bank holding company with a single segment focused on commercial banking. While their nonperforming assets have increased and credit costs remain elevated, management expects these issues to decrease in the second half of 2026 as the company continues to work on troubled SBA loans. While there are no immediate catalysts, there is potential for upside if the company is acquired by larger entities. With a conservative outlook on credit and fee income, analysts have decreased their earnings per share estimates and have a price target of $23.50 based on the company's credit overhang and profitability concerns.

First Internet is facing challenges due to its sole reliance on internet-based operations and lack of physical branches, which could hinder its ability to attract and retain customers. In addition, the bank's heavy focus on commercial real estate lending poses a risk, as the CRE market is highly cyclical and vulnerable to economic downturns. The bank's high reliance on non-core funding sources, such as brokered deposits, also exposes it to potential liquidity issues in times of market stress.