This Internet bank beat earnings estimates by two cents last quarter, and two analysts have increased their forecasts for 2016’s earnings in the past week.
First Internet Bancorp (INBK)
From The Oberweis Report
First Internet Bancorp (INBK), offers a full complement of products and services on a nationwide basis. The company conducts its deposit operations primarily over the Internet and have no traditional branch offices, providing a scalable banking infrastructure based upon technology providing improving operational efficiencies, rather than a traditional branch network.
The company’s data processing systems run on a “real-time” basis, unlike many banks that run a “batch system”, so customers benefit from an up-to-the-minute picture of their financial position, particularly commercial customers who complete numerous transactions in a single day.
The company recently added commercial real estate (CRE) lending, including nationwide single tenant lease financing, and commercial and industrial (C&I) lending, including asset-based lending and business banking/treasury management services to meet the needs of high-quality commercial borrowers and depositors.
First Internet Bank maintains a high quality loan portfolio due to the company’s emphasis on a strong credit culture, conservative underwriting standards, and a diverse national and local customer base.
At December 31, 2014, the bank’s nonperforming assets to total assets was 0.50%. In addition, INBK has no significant customer concentrations within its loan portfolio. In the company’s latest reported third quarter, revenues increased approximately 34% to $10.2 million from $7.6 million in the third quarter of last year. INBK reported earnings per share of $.51 versus $.28 in the same quarter of last year.
Jim Oberweis, CFA, The Oberweis Report, www.oberweisreport.com, 800-323-6166, January 2016