I am a believer/investor in BOFI's business model. It is the future of banking. However, the stock is trading at nearly 3x book which, for a bank, is off the charts expensive. INBK is following in BOFI's footsteps and trades at just 1x book. I sold my BOFI stake to purchase INBK.
Inbk is so thinly tradede any large block of shares produce big swings.
i also closed my position in Bofi as it is too spendy for me after the motley fool pump.
Hmst has nearly 4x earnings per share and it is a brick and mortar bank.
I think hmst,inbk,gdot and bofi are all headed for 35$ once the hype factor is taken into account.
Book value is a reasonable metric for a business that is in the toilette. Like banks have been for the last 5 years. But PE or PEG is probably a better metric for a growth or value play when bankruptcy is an unlikely option. Both are quite reasonable/attractive for BOFI. INBK is 10x smaller and actually has branches (though perhaps they are going to try and phase them out).
INBK has no branch network, and never has. However, they are building a new and larger HQ in Fishers, a suburb of Indianapolis. David Becker, CEO, President and Chairman invested nearly $250000 last week. Other board members and senior officers have been doing the same for months.
Trade volume is increasing daily since recent 3:2 stock split. Stifel Nicholas & Company has been a longtime Institutional investor and owns about 5 percent of the shares. There are about 2.8 million shares trading at a reasonable 1.3 x BV. INBK pays a dividend. iNBK began to sell shares to public in January 2005. INBK is state chartered bank in Indiana, incorporating in 1998, and began operation February 1999. INBK never needed any TARP funding during the 2008 banking crisis. In fact, they acquired an Indianapolis mortgage company around the same time. As a shareholder, I appreciate the more measured growth strategy. Thus far, INBK has not sold any additional shares, avoiding any negative shareholder value dilution. INBK is an adequately capitalized FDIC institution. In addition to being a healthy investment, it's an outstanding consumer focused bank.
Totally agree, INBK looks like a better value. After reviewing both companies key statistics and fundamentals I invested in INBK. I think BOFI is more of a darling because it's bigger and better known than INBK.
Read you post on INBK (First Internet Bancorp) funny you dont hear about it much...II bought some after reading their customer reviews online and looking at their company. Seems like Wall Street only starts to pump stocks after they reach suborbital. Small market cap growing by leaps and a great internet only bank under the radar JMHO
Right, and if you look at the two charts overlapping, BOFI got off to a better start four years ago, but INBK is now on the exact same trajectory and margins are improving each quarter. INBK recently split 3-for-2, raising the float to just over 2M. Will it become a 700M company in four years like BOFI has? Seems quite possible. Go on Zillow or Trulia and read customer reviews - made me a believer.