Form 4: First Internet Bancorp CFO Receives RSU Grant

First Internet Bancorp's Executive Vice President and CFO, Kenneth J. Lovik, was granted 4,620 Restricted Stock Units and acquired 328 shares through an employee stock purchase plan.

Summary

• Kenneth J. Lovik, Executive Vice President & CFO of First Internet Bancorp, received a grant of 4,620 Restricted Stock Units (RSUs).
• The RSUs were granted under the First Internet Bancorp 2022 Equity Incentive Plan.
• These RSUs are scheduled to vest in substantially equal annual installments on January 31, 2027, January 31, 2028, and January 31, 2029.
• Lovik also acquired 328 shares of common stock between February 28, 2025, and January 15, 2026, through the First Internet Bancorp Employee Stock Purchase Plan.
• Following these transactions, Lovik beneficially owns 52,849 shares of common stock.

Sentiment

Score: 7

Explanation: The filing reflects routine executive compensation and share acquisition, indicating stability and alignment of executive interests with the company's long-term performance. It's a positive for executive retention and motivation.

Positives

• The grant of 4,620 RSUs aligns the Executive Vice President & CFO's interests with long-term shareholder value.
• The acquisition of 328 shares through the Employee Stock Purchase Plan demonstrates continued confidence in the company by a key executive.
• The equity incentive plan serves as a retention tool for executive talent.

Future Outlook

The vesting schedule for the RSUs extends through January 2029, indicating a long-term incentive structure for the Executive Vice President & CFO.

Management Comments

• The filing indicates a transaction made pursuant to a contract, instruction, or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).

Industry Context

Executive compensation, particularly through equity grants like RSUs, is a standard practice in the financial services industry to align management incentives with shareholder interests and promote long-term retention. Employee Stock Purchase Plans are also common benefits.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) as a component of executive compensation is a widely adopted practice across the financial sector, comparable to compensation structures at regional banks and financial technology companies.
• Employee Stock Purchase Plans (ESPPs) are also a common benefit offered by publicly traded companies, including those in the banking industry, to encourage employee ownership and align interests.

Corporate Governance

Stakeholder Impact

• Shareholders: The RSU grant represents a form of dilution over time as shares vest, but it also serves to align executive interests with long-term shareholder value. The ESPP encourages broader employee ownership.
• Employees: The Employee Stock Purchase Plan provides an opportunity for employees to acquire company stock, fostering a sense of ownership.
• Management: The RSU grant provides a significant long-term incentive and retention mechanism for the Executive Vice President & CFO.

Next Steps

• First RSU vesting installment on January 31, 2027.
• Second RSU vesting installment on January 31, 2028.
• Third RSU vesting installment on January 31, 2029.

Key Dates

Keywords

First Internet Bancorp, INBK, Kenneth J. Lovik, RSU, Restricted Stock Units, Employee Stock Purchase Plan, ESPP, insider transaction, executive compensation, equity incentive plan, beneficial ownership, CFO