INBK: A Digital Bank Trading Below Liquidation Value

First Internet Bancorp | NASDAQ: INBK | Published 10/14/2026

 

Introduction

First Internet Bancorp (INBK) is not a typical community bank. It has no branches, funds itself with online and fintech deposits, and has built a specialty commercial lending franchise alongside a Banking-as-a-Service platform that processed $314 billion in payments volume over the trailing twelve months. That combination produces a business model that looks nothing like the community bank peer group it gets measured against — which makes peer comparison both more interesting and more difficult to interpret.

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The past two years have been defined by credit stress in two portfolios: franchise finance and small business lending. Nonaccruals rose above peers, classified loan coverage thinned, and earnings fell to near zero. Q2 2026 produced the first multi-quarter improvement in nonaccrual loans since the credit cycle began, a 91% sequential decline in small business delinquencies, and the formal designation of the franchise finance portfolio as an exited line. Net interest margin expanded 43 basis points year-over-year. Whether those data points represent a durable inflection or a temporary improvement is the central question in the INBK investment case.

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The interactive report below — available to paid subscribers — tracks INBK across six categories against a community bank peer universe from September 2023 through April 2026, with management’s commentary and guidance clearly distinguished from the historical data.

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Full Analysis

The remainder of this analysis is available to paid subscribers. See the rest of the analysis here: INBK - First Internet Bancorp: Full Analysis