First Internet Bancorp Stock Hits 52-Week High at $43.06

First Internet Bancorp (NASDAQ:INBK) stock soared to a 52-week high, reaching a price level of $43.06 USD. This milestone reflects a significant surge in the company's stock value, marking an impressive 113.68% change over the past year. Investors have shown increased confidence in the financial institution, as it outperforms expectations and continues to grow amidst a dynamic banking industry. The 52-week high serves as a testament to First Internet Bancorp's robust performance and the positive sentiment surrounding its growth prospects and financial health.

In other recent news, First Internet Bancorp has reported significant financial growth for the third quarter of 2024, marking its fourth consecutive quarter of double-digit earnings growth. The bank experienced a 21% increase in net income quarter-over-quarter, buoyed by a substantial rise in revenue and robust loan performance. Key takeaways from the earnings report include a net income rise to $7 million and a 4% increase in operating revenue from the previous quarter.

The bank also reported a 36% year-over-year rise in revenue, driven by net interest income and non-interest income, particularly from Small Business Administration (SBA (LON:SBA)) lending. A noteworthy development was the 35% year-to-date jump in SBA loan originations, positioning First Internet Bancorp as the eighth largest SBA 7(a) lender in the U.S.

Looking ahead, the bank's management anticipates continued earnings momentum into the fourth quarter, supported by a favorable loan portfolio composition and lower deposit costs. They project a 1.5% to 2% increase in loan balances and a 10% to 15% rise in net interest income for Q4 2024. The bank also expects net interest margin to be between 1.8% and 1.85%, with SBA originations forecasted to grow 15% to 20% in 2025. These recent developments underscore the bank's strong financial performance and future growth prospects.

InvestingPro Insights

First Internet Bancorp's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's stock has demonstrated remarkable strength, with a 112.52% price total return over the past year, corroborating the 113.68% change mentioned in the article. This impressive growth is further supported by strong returns over shorter periods, including a 19.29% return in the last month and a 37.47% return over the past six months.

InvestingPro data reveals that INBK is trading at a P/E ratio of 16.39, which is considered low relative to its near-term earnings growth potential. This suggests that the stock may still have room for further appreciation. Additionally, the company's revenue growth of 26.53% over the last twelve months indicates robust business expansion, contributing to investor confidence.

InvestingPro Tips highlight that INBK has maintained dividend payments for 13 consecutive years, showcasing financial stability and commitment to shareholder returns. Moreover, analysts have revised their earnings upwards for the upcoming period, signaling positive expectations for the company's future performance.

For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for First Internet Bancorp, providing a deeper understanding of the company's financial position and growth prospects.

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