First Internet Bancorp (NASDAQ:INBK) has been a casualty of last year's long-term interest rate spike, which triggered a nationwide refinance meltdown. As a result, its noninterest income all but disappeared since 3Q13. The pain was compounded by (NYSE:A) an unusually high proportion of noninterest income in the revenue right before the meltdown, and (NYSE:B) an ongoing expansion initiative that increased noninterest expense significantly.
In 2Q13 (before refinance crush), noninterest income accounted for 47% of revenue. In the most recent quarter, 2Q14, noninterest income declined to 23% of revenue.
In a previous article, I argued that INBK is nearing an inflection point and both top line and bottom line growth will return in Q3....
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