Indiana’s First Internet Bancorp (INBK)
is definitely taking the road less traveled. With no deposit-gathering
branch offices, First Internet lives up to its name as a bank that
provides its services through the internet. While that hasn’t stopped
the company from posting strong lending growth, with a clear focus on
niche categories that larger banks don’t serve well, it has proved to be
a challenging way to grow attractively-priced deposits and access to
affordable funding remains a challenge and growth-limiting issue.
Valuation
for First Internet is quite curious, in that it seems quite undervalued
relative to its growth. I realize it’s not a particularly well-covered
bank, nor very large, and the risks here are certainly above-average,
but even so the shares look curiously-priced next to other small,
fast-growing banks.
Read more here:
First Internet Bancorp Is Very Different, And Quite Possibly Meaningfully Undervalued
