How did INBK's Q4 earnings surprise impact investor confidence?

**First Internet Bancorp's (INBK) Q4 earnings surprise had a positive impact on investor confidence**, as evidenced by several key indicators: 1. **Strong Earnings Growth**: INBK reported its fourth consecutive quarter of double-digit earnings growth, with a 21% increase in net income. This consistent performance likely bolstered investor confidence in the company's financial health and future prospects. 2. **Revenue Growth**: The bank reported a year-over-year revenue increase of 36.3% for Q3 2024, reaching $33.79 million. This significant growth in revenues, coupled with earnings growth, would have likely contributed to enhanced investor confidence. 3. **Positive Market Reaction**: INBK's stock soared to a 52-week high of $42.89 following the earnings report, indicating a positive market reaction to the news. This price increase reflects investor optimism about the company's future performance. 4. **Analyst Expectations**: Analysts had expected earnings of $0.81 per share for the quarter, and while INBK missed this estimate slightly, with earnings of $0.80 per share, the close alignment of actual and expected earnings likely minimized concerns about underperformance. 5. **Return on Equity (ROE)**: INBK reported a return on equity of 6.12%, which, although modest, indicates the company's ability to generate profits from shareholders' equity. A positive ROE can enhance investor confidence in the company's efficiency and profitability. Overall, while there was a slight miss in earnings expectations, the positive aspects of INBK's Q4 performance, including strong earnings growth, revenue increase, and positive market reaction, likely outweighed the impact of the slight miss, thereby enhancing investor confidence.