First Internet Bancorp came into this earnings print with a stock that had already cooled, down over the past quarter and off modestly over the past month. Then Q3 2026 landed with record total revenue of US$43.9 million and net interest income of US$34.7 million, yet the shares dropped 5.4% on the first full trading day after the release.
That gap between a softer price and stronger core banking earnings, especially the expanding net interest margin, is the tension investors now have to price in.
We like the strong revenue at First Internet Bancorp, but we are uneasy about a stock that drifts lower despite solid net interest income. Compare that setup with banks screened for resilient balance sheets and earnings quality in our list of solid balance sheet and fundamentals stocks (25 results).
Q3 2026 Earnings Summary
- Total Revenue (Q3 2026 vs. Q3 2025): US$32.312 million vs. a loss of US$29.084 million in revenue (returned to positive top line)
- Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025): US$4.819 million vs. a loss of US$41.593 million (moved from loss to profit)
- Basic EPS (Q3 2026 vs. Q3 2025): US$0.55 vs. a loss of US$4.76 per share (shifted from loss to earnings)
- Net Interest Margin (NIM, Q3 2026 vs. Q3 2025): 2.47% vs. 2.12% (expanded by 0.35 percentage points)
Tired of skimming long earnings reports and raw figures trying to make sense of First Internet Bancorp? See the entire financial picture in clear charts, with an easy view of valuation in the company report for First Internet Bancorp.
First Internet Bancorp Starts To Deliver On Fintech Shift
The bullish pitch around First Internet Bancorp hinges on fintech deposits and fee streams becoming a real economic engine rather than a side project.
"Bullish analysts expect First Internet Bancorp to scale Banking-as-a-Service and embedded finance so that fintech-driven deposits and fee income become a larger, structurally important share of total revenue and funding."
Q3 moves this from story to evidence. Fintech deposits climbed by about US$1b to US$4.7b, and on-balance averages rose roughly 40%. Fee revenue from these programs increased 13% quarter on quarter and is very large versus a year ago. That helped support record net interest income and a wider NIM, even as traditional SBA activity stayed muted.
The price and this Narrative do not agree. → Uncover what this Narrative says First Internet Bancorp is actually worth.
First Internet Bancorp: Bear Risks Meet Mixed Progress
Critics argued that First Internet Bancorp might never fully work through credit headaches in SBA and franchise finance, keeping capital trapped and margins heavy.
"While credit metrics show some early improvement in SBA and franchise finance with moderating provisions, net charge-offs of $15.8 million and $16.9 million in Q1 and Q2 2026 and an allowance for credit losses at 1.50% of total loans with 122% coverage of nonperforming loans keep a large amount of capital tied up in problem credits."
Q3 partly validates that concern. A single franchise relationship triggered a US$3.2m pretax hit and swelled nonperformers, even as broader delinquencies and provision expense improved. The print shows progress, not a clean bill of health; the bearish credit overhang is weakened but not removed.
Hunt For Earnings Disconnects
First Internet Bancorp reports improving fundamentals while its share price has not kept pace. The real opportunity is spotting companies that could be undervalued before sentiment adjusts.
- Company 1 - 47% below our estimate - focuses massive AI infrastructure investment on ad tools, business messaging and consumer hardware for intelligent assistants.
- Company 2 - 48% below our estimate - co-designs complex hardware with clients so its engineering and manufacturing embed into long-lived industrial and AI programs.
- Company 3 - 38% below our estimate - expands a once-niche beverage into mainstream shelves through branded cartons and private label deals.
That is three of the list. See all 29 potentially undervalued companies →
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