First Internet Bancorp 6.0% Fixed-to-Floating Rate Subordinated Notes Due 2029 (INBKZ)

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Graham-style investor, I start with the security: these are First Internet Bancorp's 6.0% fixed-to-floating subordinated notes due 2029, so my first question is credit, not an earnings multiple. The issuer's record is volatile. In fiscal 2025 it lost $35.2 million, or $4.03 per diluted share, after earning $25.3 million, or $2.88, in fiscal 2024 and $8.4 million, or $0.95, in fiscal 2023. The fiscal Q3 2025 quarter alone lost $41.6 million, or $4.76 per diluted share. That explains FairStock's computed Lynch category of TURNAROUND—loss in the latest year after earlier profits. More recently, fiscal Q1 2026 net income was $2.5 million, or $0.29 per diluted share, and fiscal Q2 2026 was $2.4 million, or $0.27, so the trend has stabilized, but two small quarters do not erase a large annual loss. I cannot judge a moat or balance-sheet strength from these figures because revenue, equity, capital, and coverage data are not provided. The note trades at $25.30, close to the top of its 52-week range of $23.48 to $25.64; common valuation measures are N/A. For a subordinated note, that price leaves little visible cushion if credit deteriorates. A 6.0% coupon is attractive only if repayment is secure. I would want evidence of sustained profits and adequate capital before treating the recent recovery as durable. The key tension is a defined 2029 maturity and recent profitability against a serious fiscal 2025 loss and a junior claim.

In plain English: This security is a First Internet Bancorp bond that pays 6% interest and matures in 2029, ranking behind more senior obligations. The underlying bank lost $35.2 million in fiscal 2025 after earning $25.3 million in fiscal 2024, but it reported small profits in the first two quarters of fiscal 2026. The bond trades at $25.30, near the top of its 52-week range, and no standard valuation numbers are available.

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Data as of 2026-10-16 close · note generated 2026-10-20 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer