First Internet Bancorp (INBK) announced a quarterly cash dividend of $0.06 per common share, payable on January 15, 2026 to shareholders of record as of December 31, 2025. The dividend is part of the bank’s long‑standing payout policy, which has included regular payments for the past 14 years, rather than being the first dividend since the company’s inception.
The dividend follows a challenging third‑quarter 2025 earnings report in which the bank posted a net loss of $41.6 million, or an adjusted earnings per share of –$1.43, well below the consensus estimate of $0.63. The loss was largely driven by a strategic sale of $836.9 million in single‑tenant lease‑financing loans, which removed a concentration of risk from the portfolio but also eliminated a significant source of income for the quarter.
Despite the loss, management highlighted that adjusted revenue grew 30% year‑over‑year, driven by stronger performance in construction, investor commercial real‑estate, public‑finance, and residential‑mortgage segments. The bank’s guidance for the remainder of 2025 projects earnings that will comfortably cover the dividend, with analysts projecting a payout ratio of roughly 4.8% based on expected earnings of $4.95 per share next year.
The dividend declaration signals confidence in the bank’s future cash‑flow generation and a commitment to returning value to shareholders. However, the timing—immediately after a sizable loss—raises questions about sustainability. The bank’s management has emphasized that the dividend will be reviewed annually and will be adjusted if financial conditions change, indicating a cautious approach to payout policy.
The announcement also reflects a broader strategic shift. By selling the single‑tenant lease‑financing portfolio, the bank has diversified its loan mix, reducing concentration risk and positioning itself for more stable, diversified income streams. The dividend, therefore, is not only a return to shareholders but also a marker of the bank’s evolving risk profile and capital allocation strategy.
Overall, the dividend declaration is a material event that provides new insight into First Internet Bancorp’s financial health, strategic priorities, and shareholder‑return policy, warranting publication and inclusion in investor coverage.
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