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Independent Bank (INDB)
NASDAQ:INDB
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Independent Bank
(NASDAQ:INDB)
70Outperform
Independent Bank (INDB) vs. S&P 500 (SPY)
Market Cap
$2.31B
Dividend Yield4.21%
Average Volume (3M)374.34K
Price to Earnings (P/E)12.0
Beta (1Y)1.05
Revenue Growth4.24%
EPS Growth-14.27%
CountryUS
Employees1,837
SectorFinancial
Sector Strength76
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.21
Shares Outstanding42,610,270
10 Day Avg. Volume397,272
30 Day Avg. Volume374,340
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.11
Price to Cash Flow (P/CF)15.70
P/FCF Ratio6.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$67.50Price Target Upside18.50% Upside
Rating ConsensusHold
Number of Analyst Covering2
Independent Bank Business Overview & Revenue Model
Company DescriptionIndependent Bank Corp. operates as the bank holding company for Rockland Trust Company that provides commercial banking products and services to individuals and small-to-medium sized businesses primarily in Massachusetts. The company accepts interest checking, money market, and savings accounts, as well as demand deposits and time certificates of deposit. It also offers commercial and industrial, commercial real estate and construction, small business, consumer real estate, and personal loans. In addition, the company provides investment management and trust services to individuals, institutions, small businesses, and charitable institutions; Internet and mobile banking services, as well as estate settlement, financial planning, tax services, and other services; automated teller machine and debit cards; and mutual fund and unit investment trust shares, general securities, fixed and variable annuities, and life insurance products. As of December 31, 2021, it operates one hundred nineteen retail branches, two limited-service retail branches, and one mobile branch located within Barnstable, Bristol, Dukes, Essex, Middlesex, Nantucket, Norfolk, Plymouth, Suffolk, and Worcester counties in Eastern Massachusetts. The company was founded in 1907 and is headquartered in Rockland, Massachusetts.
How the Company Makes MoneyIndependent Bank Corp generates revenue through interest income and non-interest income. The bank primarily earns interest income from loans it provides to individuals and businesses, such as mortgages, personal loans, and commercial loans. This interest income is the largest revenue stream. On the other hand, non-interest income is derived from fees and service charges associated with banking services like account maintenance fees, transaction fees, and penalties. Additionally, the bank earns revenue from investment services and trust management fees. Partnerships with financial service providers for investment and insurance products also contribute to Independent Bank's earnings, enhancing its product offerings and cross-selling opportunities.
Independent Bank Financial Statement Overview
Summary
Independent Bank has demonstrated strong revenue growth and a high gross profit margin, indicating robust core operations. The absence of debt enhances financial stability. However, declining net income and operating cash flow suggest potential profitability challenges.Income Statement
Independent Bank has shown solid revenue growth with a consistent increase from $477.5M in 2020 to $852.8M in 2024. The gross profit margin has remained consistently high at 100%, indicating strong profitability. However, net income decreased in 2024 despite increased revenue, suggesting rising costs or other financial pressures. The EBIT margin in 2023 was strong at 39.6%, but it was not available for 2024, which limits the analysis of operating efficiency.78
Positive
Balance Sheet
The company maintains a robust balance sheet with no total debt in 2024, enhancing its financial stability. The equity ratio has remained stable around 15% to 16% over the years, indicating a healthy level of equity financing. Return on equity was strong at 8.3% in 2024, although it declined from previous years, pointing to reduced profitability relative to shareholder equity.85
Very Positive
Cash Flow
Operating cash flow has fluctuated, with a notable decline from $421.2M in 2022 to $229.9M in 2024. Free cash flow remained positive but decreased in 2024, affecting financial flexibility. The operating cash flow to net income ratio was 1.20 in 2024, showing good cash generation relative to net income, despite the year-over-year decline.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 683.11M | 795.73M | 727.92M | 507.41M | 477.45M |
| Gross Profit | ||||
| 852.75M | 795.73M | 727.92M | 507.41M | 477.45M |
| EBIT | ||||
| -579.04M | 315.13M | 338.55M | 156.68M | 152.84M |
| EBITDA | ||||
| 0.00 | 0.00 | 386.55M | 189.50M | 174.40M |
| Net Income Common Stockholders | ||||
| 192.08M | 239.50M | 263.81M | 120.99M | 121.17M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 187.85M | 224.33M | 1.75B | 3.81B | 1.71B |
| Total Assets | ||||
| 19.37B | 19.35B | 19.29B | 20.42B | 13.20B |
| Total Debt | ||||
| 701.37M | 1.22B | 113.38M | 152.37M | 181.06M |
| Net Debt | ||||
| 481.48M | 994.05M | -239.56M | -2.09B | -1.12B |
| Total Liabilities | ||||
| 16.38B | 16.45B | 16.41B | 152.37M | 181.06M |
| Stockholders Equity | ||||
| 2.99B | 2.90B | 2.89B | 3.02B | 1.70B |
| Cash Flow | Free Cash Flow | |||
| 229.92M | 261.15M | 399.13M | 165.02M | 52.05M |
| Operating Cash Flow | ||||
| 229.92M | 276.99M | 421.20M | 190.22M | 64.64M |
| Investing Cash Flow | ||||
| -33.01M | -211.65M | -1.00B | -63.14M | -488.21M |
| Financing Cash Flow | ||||
| -201.35M | -193.95M | -1.31B | 816.96M | 1.57B |
Independent Bank Technical Analysis
Neutral
56.96
Price Trends
62.29
Negative
64.46
Negative
62.35
Negative
Market Momentum
-1.89
Negative
47.35
Neutral
58.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INDB, the sentiment is Neutral. The current price of 56.96 is below the 20-day moving average (MA) of 57.91, below the 50-day MA of 62.29, and below the 200-day MA of 62.35, indicating a bearish trend. The MACD of -1.89 indicates Negative momentum. The RSI at 47.35 is Neutral, neither overbought nor oversold. The STOCH value of 58.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for INDB.
Independent Bank Risk Analysis
Independent Bank disclosed 35 risk factors in its most recent earnings report. Independent Bank reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Independent Bank Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $2.31B | 12.02 | 6.38% | 4.21% | 4.24% | -14.27% | |
66 Neutral | $2.66B | 19.31 | 10.03% | 4.19% | 4.63% | -16.29% | |
66 Neutral | $2.56B | 12.80 | 9.35% | 4.34% | 2.84% | -9.63% | |
64 Neutral | $2.37B | 15.71 | 12.68% | 2.99% | 14.38% | 19.61% | |
63 Neutral | $2.42B | 14.94 | 7.74% | 3.11% | 8.97% | 4.82% | |
63 Neutral | $2.77B | 12.25 | 6.92% | 7.23% | 3.61% | -11.55% | |
63 Neutral | $12.07B | 9.35 | 8.15% | 79.57% | 12.85% | -5.13% |
* Financial Sector Average
Performance Comparison
INDB
Independent Bank
57.76
6.88
13.52%
BOH
Bank Of Hawaii
66.57
10.27
18.24%
CVBF
Cvb Financial
18.78
2.41
14.72%
FIBK
First Interstate Bancsystem
27.71
2.77
11.11%
PRK
Park National
146.39
12.75
9.54%
TOWN
TowneBank
32.58
5.69
21.16%
Independent Bank Earnings Call Summary
Earnings Call Date: Apr 17, 2025 | % Change Since: 2.01% | Next Earnings Date: Jul 17, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong revenue growth, strategic progress, and recognition in the market. However, the elevated credit costs and economic uncertainty present challenges. The highlights and lowlights are relatively balanced.Highlights
PPNR Growth and Improved Tangible Book Value
Pre-provision net revenue (PPNR) growth was strong, driven by net interest margin improvement and well-controlled expenses. Tangible book value improved by 1.8% from the fourth quarter and 7.8% from the year-ago quarter.
Deposit Growth and Wealth Management Success
Non-time deposits increased by 3.2% from the fourth quarter, showcasing the strength of the deposit franchise. Wealth Management business grew AUA by nearly 1% in the first quarter to $7 billion, with organic growth totaling $41 million.
Strategic Progress and Enterprise Acquisition
Continued progress on strategic priorities with a reduction in commercial real estate concentration and a shift towards C&I. The pending acquisition of Enterprise is on track, with most customer-facing employees accepting offers to remain post-close.
Recognition and Market Position
Rockland Trust was named a top place to work in Massachusetts for the 16th consecutive year and ranked number two in New England in the 2025 J.D. Power Retail Banking Satisfaction Study.
Lowlights
Elevated Credit Costs and Problem Loans
Credit costs were high due to the resolution of several problem loans, with some non-performing loans (NPLs) slipping in resolution timeline. A large problem loan moved to non-performing status in the first quarter.
Economic Uncertainty
Uncertainty from tariffs and potential federal actions has increased, causing clients to pause significant expansion or growth initiatives.
Company Guidance
During the first quarter of 2025, Independent Bank Corp reported solid pre-provision net revenue (PPNR) growth, driven by improvements in net interest margin, strong fee revenue, and well-controlled expenses. The PPNR return on average assets (ROAA) was 1.52% on an operating basis, with tangible book value increasing by 1.8% from the previous quarter and 7.8% year-over-year. Despite these positive results, elevated credit costs were noted due to ongoing resolutions of non-performing loans (NPLs), with significant progress expected in the second quarter. The company continued its strategic focus on reducing commercial real estate concentration, resulting in a 2.1% increase in commercial and industrial loans and a 1.2% decrease in commercial real estate and construction loan balances. The bank also reported a 2.8% year-over-year increase in non-time deposits and maintained a cost of deposits at 1.56%. Wealth Management saw nearly 1% growth in assets under administration (AUA), reaching $7 billion, with investment management revenues up 4% from the prior quarter. Additionally, the anticipated acquisition of Enterprise Bancorp is on track to close in the third quarter, expected to add $1.5 billion in AUA and further enhance cross-sell opportunities.Independent Bank Corporate Events
Private Placements and FinancingM&A TransactionsDividendsFinancial Disclosures
Independent Bank Reports Q1 2025 Financial Results
Neutral
Apr 17, 2025
Independent Bank Corp. reported a first-quarter net income of $44.4 million for 2025, a decrease from the previous quarter, primarily due to a higher loan loss provision. Despite this, the company saw growth in deposits and maintained consistent loan balances, while also raising $300 million in subordinated debt. The company increased its quarterly dividend and continued to integrate its pending acquisition of Enterprise Bancorp, Inc. The financial results reflect solid fundamentals with a slight decline in noninterest income, but an increase in net interest margin and a decrease in overall funding costs.
Spark’s Take on INDB Stock
According to Spark, TipRanks’ AI Analyst, INDB is a Outperform.
Independent Bank’s robust revenue growth, high gross margins, and debt-free balance sheet are significant strengths, but declining net income and cash flow pose challenges. The strategic acquisition is a positive development, boosting the outlook despite technical indicators showing bearish sentiment. Fair valuation with a reasonable dividend yield supports a moderately positive stock evaluation.
To see Spark’s full report on INDB stock, click here.
M&A TransactionsBusiness Operations and Strategy
Independent Bank Highlights Strategic Acquisition at KBW Conference
Positive
Feb 12, 2025
On February 13, 2025, Independent Bank Corp. presented at the KBW Winter Financial Services Conference, highlighting their strategic acquisition of Enterprise Bancorp. This acquisition is set to expand their market presence in Northern Massachusetts and Southern New Hampshire, enhance their franchise value, and offer significant financial benefits including EPS accretion and increased market cap. The company emphasized its commitment to risk management, technological advancements, and growth in commercial and industrial lending, aiming for long-term sustainable value creation.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.