INBK - First Internet Bancorp: Bottoming Net Interest Margin Bodes Well For The Future

2024-07-04 10:30:00 ET

Summary

• First Internet Bancorp's net interest margin is improving, hopefully leading to increased net interest income and profitability.
• The bank's loan book shows decent diversification with minimal exposure to past due loans, particularly in commercial real estate - a pleasant surprise.
• I maintain a long position in the bank's fix-to-float debt securities due to attractive yield and potential for increasing profitability.

Introduction

In the fixed income portion of my investment portfolio, I still have a long position in the publicly traded fix-to-float debt security issued by First Internet Bancorp ( INBK ). Over a year ago, I was wondering if First Internet Bancorp was just an innocent victim of the banking crisis , and I argued the fix-to-float debt security was an interesting investment idea given its steep discount to the $25 principal value at the time and the anticipated interest increase due to the floating nature of the coupon from this summer on....

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