INBK Stock Forecast & Price Target

First Internet is forecasted to have a strong financial performance in 2026, with net interest margin expected to expand and loan growth reaching the mid-teens. The company's core fee income is also expected to increase through FinTech partnerships, while operating expenses remain well-controlled. Additionally, First Internet's focus on organic growth, supported by steady profitability and potential share repurchases, can drive positive earnings results compared to expectations.

First Internet is facing challenges as a bank holding company, with elevated non-credit opportunities (NCOs) and non-performing assets (NPAs) that have increased significantly. While management is projecting a decrease in NCOs and credit costs in the second half of 2026, there is limited visibility for near-term catalysts. Furthermore, recent underwriting enhancements may not be enough to offset the ongoing credit overhang, tighter capital levels, and suboptimal profitability, making it difficult for the company to meet its price target.