First Internet Bancorp to Pay Cash Dividend; Extends Stock Repurchase Program

Rhea-AI Summary

First Internet Bancorp (INBK) declares $0.06 quarterly cash dividend and extends stock repurchase program through December 31, 2024

Financial Analyst

The declaration of a quarterly cash dividend and the extension of the stock repurchase program by First Internet Bancorp signify a commitment to shareholder returns, a factor often scrutinized by market analysts and investors. The cash dividend of $0.06 per common share is a direct return on investment for shareholders and may influence the stock's attractiveness, particularly for income-focused investors.

The continuation of the stock repurchase program, with an authorization to acquire up to $25.0 million in shares, suggests that the company believes its stock is undervalued or that it is seeking to return capital to shareholders in an efficient manner. This can be interpreted as a positive signal about the company's financial health and future prospects. However, the caveat that the program does not obligate the company to repurchase shares and may be modified or discontinued at any time adds a layer of uncertainty.

Investors should consider the company's performance, including its results of operations and financial condition, as well as the broader market conditions. While dividends and buybacks can be appealing, they should not overshadow the fundamental analysis of the company's ongoing business and potential for growth.

Industry Analyst

From an industry perspective, the actions taken by First Internet Bancorp align with common practices in the banking sector to enhance shareholder value. The financial industry is heavily regulated and the mention of regulatory and contractual restrictions highlights the importance of compliance in these capital return programs.

The company’s strategy, as reflected in the dividend and repurchase program, must be weighed against capital requirements and the competitive landscape. Investors may compare the dividend yield and repurchase activity with peer institutions to gauge relative performance. It is also important to monitor economic conditions, as interest rate changes and economic cycles can significantly impact the banking sector.

Legal Expert

Legally, the extension of the stock repurchase program and the payment of dividends are subject to stringent regulatory scrutiny. The company must navigate complex laws and regulations that govern such transactions to ensure compliance. The repurchase program's flexibility, including the possibility of its modification, suspension, or discontinuation, is a standard precaution that provides the company with the necessary legal leeway to adapt to changing circumstances.

Shareholders and potential investors should be aware that while these programs are intended to provide value, they are also bound by legal constraints that could affect their execution. For instance, market and economic conditions, as well as the company's financial and regulatory condition, are all factors that could limit the company's ability to follow through on repurchases or continue paying dividends at the same rate.

FISHERS, Ind.--(BUSINESS WIRE)-- The Board of Directors of First Internet Bancorp (the “Company”) (Nasdaq: INBK) has declared a quarterly cash dividend of $0.06 per common share. The dividend will be payable on January 16, 2024 to shareholders of record at the close of business on December 29, 2023.

The declaration and amount of any future cash dividends will be subject to the sole discretion of the Board of Directors and will depend upon many factors, including the Company’s results of operations, financial condition, capital requirements, regulatory and contractual restrictions, business strategy and other factors deemed relevant by the Board of Directors.

In addition, the Board of the Company has extended the term of the Company’s existing stock repurchase program (the “Program”) through December 31, 2024. The Program, which was previously set to expire on December 31, 2023, was announced in December 2022 and authorized the Company to acquire up to $25.0 million in shares of its common stock from time to time in the open market or in privately negotiated transactions. The Program does not obligate the Company to repurchase shares of its common stock, and there is no assurance that it will do so. Any repurchases are subject to compliance with applicable laws and regulations. Repurchases will be conducted in consideration of general market and economic conditions as well as the financial and regulatory condition of the Company and First Internet Bank. The Program may be modified, suspended or discontinued at any time.

About First Internet Bancorp

First Internet Bancorp is a financial holding company with assets of $5.2 billion as of September 30, 2023. The Company’s subsidiary, First Internet Bank, opened for business in 1999 as an industry pioneer in the branchless delivery of banking services. First Internet Bank provides consumer and small business deposit, SBA financing, franchise finance, consumer loans, and specialty finance services nationally as well as commercial real estate loans, construction loans, commercial and industrial loans, and treasury management services on a regional basis. First Internet Bancorp’s common stock trades on the Nasdaq Global Select Market under the symbol “INBK”. Additional information about the Company is available at www.firstinternetbancorp.com and additional information about First Internet Bank, including its products and services, is available at www.firstib.com.

Forward-Looking Statements

This press release contains forward-looking statements, including statements with respect to the Company’s stock repurchase program and timing and methods of executing the same. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the Company’s control. The Company cautions you that the forward-looking statements presented in this release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this release. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Factors that may cause actual results to differ materially from those made or suggested by the forward-looking statements contained in this release include those identified in the Company’s most recent annual report on Form 10-K and subsequent filings with the Securities and Exchange Commission. All statements in this press release, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231219221126/en/

Investors/Analysts

Paula Deemer

Director of Corporate Administration

(317) 428-4628

investors@firstib.com

Media

BLASTmedia for First Internet Bank

Ryan Hecker

firstib@blastmedia.com

Source: First Internet Bancorp

What is the dividend declared by First Internet Bancorp (INBK)?

The Board of Directors of First Internet Bancorp (INBK) has declared a quarterly cash dividend of $0.06 per common share.

When will the dividend be payable for First Internet Bancorp (INBK)?

The dividend will be payable on January 16, 2024 to shareholders of record at the close of business on December 29, 2023.

What is the extended term of the stock repurchase program for First Internet Bancorp (INBK)?

The Board of the Company has extended the term of the Company’s existing stock repurchase program (the “Program”) through December 31, 2024.

How much in shares of its common stock can the Company acquire through the stock repurchase program?

The Program authorized the Company to acquire up to $25.0 million in shares of its common stock from time to time in the open market or in privately negotiated transactions.

Is the Company obligated to repurchase shares of its common stock through the Program?

The Program does not obligate the Company to repurchase shares of its common stock, and there is no assurance that it will do so.

What factors determine the repurchases of shares of its common stock through the Program for First Internet Bancorp (INBK)?

Repurchases will be conducted in consideration of general market and economic conditions as well as the financial and regulatory condition of the Company and First Internet Bank.