The company is experiencing revenue momentum with net interest income growth of 26% and a fully-taxable equivalent net interest margin of 2.45%, driving quarterly revenue up 21% year-over-year to $43.1 million. Noninterest income of $11.5 million was helped by $7.4 million of gains on loan sales and higher servicing revenue, though the company faces credit pressures reflected in an elevated provision for credit losses of $16.6 million and stress in segments such as small business and franchise finance.
Cyborg Score Rationale
First Internet Bancorp demonstrates strong operational momentum with 26% net interest income growth, 21% revenue growth, and 51% pre-provision net revenue growth year-over-year in Q1 2026. However, elevated credit losses of $16.6 million and stress in small business and franchise finance segments present ongoing challenges.
Top Insights
Net income grew 166% year-over-year to $2.5 million in Q1 2026 with significant margin expansion
The Banking-as-a-Service and fintech deposit channels are driving rapid growth momentum
Net interest margins are expected to reach 2.75%-2.8% by year-end 2026, up from 2.45% in Q1 2026
Credit stress in small business and franchise lending segments is driving elevated provisioning costs through 2026
Named Competitors
Digital Lending — Small business lending platform
Business Banking Platform — Banking-as-a-Service for startups and SMBs
Commercial Banking — Regional bank with fintech partnerships
Recent Developments
(April 2026) Reported Q1 2026 net income of $2.5 million, up 166% year-over-year with 21% revenue growth
(January 2026) Full year 2025 results showed net income of $5.3 million with strong margin momentum
(February 2026) Updated 2026 guidance projecting net interest margins of 2.75%-2.8% by year-end and loan loss provisions of $50-$53 million
Open the full interactive First Internet Bancorp report
Strategic research, analyst-debate audio, full Cyborg Score breakdown across 11 dimensions, and saved-company audio playlists.