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Independent Bank
(NASDAQ:IBCP)
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Rating:71Outperform
Price Target:
$41.00
▲(11.69% Upside)
Action:Reiterated
Date:10/27/26
The score is driven primarily by solid profitability and returns but held back by a sharp deterioration in operating and free cash flow and a recent rise in debt. Technicals are supportive with positive trend and momentum, and valuation appears attractive (low P/E with a ~3% dividend). The latest earnings call adds a modest positive tilt via growth and margin guidance, tempered by elevated credit costs and merger-related expense/cost-savings timing risk.
Positive Factors
Strong profitability
Sustained profitability and respectable returns indicate that Independent Bank’s community-banking model is generating meaningful earnings without relying on excessive leverage. This provides internal capital to support lending, technology investment, integration needs, and shareholder distributions over the coming quarters.
Negative Factors
Weaker cash generation
The sharp reduction in operating and free cash flow weakens near-term financial flexibility despite solid reported earnings. Less reliable cash conversion can constrain internally funded investment, acquisitions, or distributions and leaves the bank with less room to absorb unexpected balance-sheet pressures.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability
Sustained profitability and respectable returns indicate that Independent Bank’s community-banking model is generating meaningful earnings without relying on excessive leverage. This provides internal capital to support lending, technology investment, integration needs, and shareholder distributions over the coming quarters.
Read all positive factors
Independent Bank (IBCP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$824.26M
Dividend Yield2.96%
Average Volume (3M)199.57K
Price to Earnings (P/E)10.8
Beta (1Y)0.77
Revenue Growth0.24%
EPS Growth12.12%
CountryUS
Employees781
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.48
Shares Outstanding22,199,295
10 Day Avg. Volume200,903
30 Day Avg. Volume199,566
Financial Highlights & Ratios
PEG Ratio3.15
Price to Book (P/B)1.34
Price to Sales (P/S)2.13
P/FCF Ratio9.58
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue2.41
Enterprise Value/Gross Profit3.39
Enterprise Value/Ebitda8.09
Forecast
1Y Price Target
$40.00Price Target Upside8.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)3.56
Revenue Forecast (FY)$256.94M
Independent Bank Business Overview & Revenue Model
Company Description
As the holding company for Independent Bank, Independent Bank Corporation provides diverse banking services to both individual consumers and businesses. Its comprehensive suite of offerings includes checking and savings accounts, commercial lendin...
How the Company Makes Money
Independent Bank Corporation primarily earns money through traditional banking revenue streams generated by its bank subsidiary. The largest driver is typically net interest income: the bank collects interest on loans (such as commercial loans, co...
Independent Bank Earnings Call Summary
Earnings Call Date:Oct 27, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
The call was predominantly positive. The company reported strong organic commercial loan and deposit growth, expanding net interest income and margin, above-forecast noninterest income, strong capital levels, and progress on the HighPoint integration. The main challenges were higher nonperforming loans, a provision above forecast, elevated merger-related expenses, delayed realization of cost savings, and rate-related pressure on mortgage activity. Management remained optimistic about continued loan growth, margin expansion, acquisition savings, and the overall direction of the business.Positive Updates
Adjusted Earnings Growth
Third-quarter 2026 net income was $17.9 million, or $0.80 per diluted share, compared with $17.5 million, or $0.84 per diluted share, in the prior-year period. Excluding $2.7 million of after-tax merger-related expenses, adjusted net income was $20.6 million, or $0.92 per diluted share.
Negative Updates
Diluted EPS Declined Year Over Year
Despite higher net income, diluted earnings per share declined to $0.80 from $0.84 in the prior-year period.
Read all updates
Q3-2026 Updates
Positive
Negative
Adjusted Earnings Growth
Third-quarter 2026 net income was $17.9 million, or $0.80 per diluted share, compared with $17.5 million, or $0.84 per diluted share, in the prior-year period. Excluding $2.7 million of after-tax merger-related expenses, adjusted net income was $20.6 million, or $0.92 per diluted share.
Read all positive updates
Company Guidance
Management’s outlook includes full year loan growth of 4.5% to 5.5%, net interest income growth of 7% to 8%, provision for credit losses of 0.2% to 0.25% of loans annualized, noninterest income of $11.3 million to $12.3 million, and noninterest expense of 36 to 37 million dollars, excluding HighPoint and merger-related costs; the provision is expected to track loan growth and credit migration, with year to date provision about 0.23% of average loans annualized, within the forecasted range. Net interest margin is expected to continue to benefit from asset repricing in the September fed rate increase, partially offset by competitive deposit pricing, with a forecast of 2 to 4 basis points per quarter over the next 12 months, a range management would not change, though it may move to the higher end. Following the November 9 conversion, cost savings are expected to be largely reflected in the 2027 expense run rate, remaining merger and conversion related expenses are expected to be approximately $3 million primarily realized in the fourth quarter of 26, and the original pro forma included about a 40% cost save, while management said it was not quite at the communicated 50% in 2026 for half a year. Commercial loans are expected to grow at a low double digit rate into 2027, and the bank expects to continue targeting a 35% to 40% range through the cycle for total deposit beta.Independent Bank Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
49
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 316.02M | 315.38M | 316.33M | 283.83M | 224.23M | 207.12M |
| Gross Profit | 225.32M | 219.52M | 211.68M | 193.83M | 198.79M | 199.52M |
| EBITDA | 94.34M | 91.20M | 93.05M | 83.69M | 88.61M | 89.44M |
| Net Income | 71.75M | 68.54M | 66.79M | 59.07M | 63.35M | 62.90M |
Balance Sheet | ||||||
| Total Assets | 5.66B | 5.51B | 5.34B | 5.26B | 5.00B | 4.70B |
| Cash, Cash Equivalents and Short-Term Investments | 558.04M | 161.60M | 145.27M | 849.13M | 853.72M | 1.52B |
| Total Debt | 166.90M | 116.87M | 124.39M | 129.26M | 226.10M | 108.96M |
| Total Liabilities | 5.14B | 5.00B | 4.88B | 4.86B | 4.65B | 4.31B |
| Stockholders Equity | 528.41M | 502.95M | 454.69M | 404.45M | 347.60M | 398.48M |
Cash Flow | ||||||
| Free Cash Flow | 34.72M | 70.17M | 55.20M | 69.56M | 88.95M | 104.32M |
| Operating Cash Flow | 37.81M | 76.66M | 63.15M | 75.59M | 94.63M | 110.15M |
| Investing Cash Flow | -176.93M | -122.50M | -118.16M | -162.94M | -424.59M | -563.06M |
| Financing Cash Flow | 158.94M | 64.34M | 5.11M | 182.77M | 294.86M | 443.68M |
Independent Bank Technical Analysis
Positive
36.71
Price Trends
36.29
Positive
36.34
Positive
35.06
Positive
Market Momentum
0.22
Negative
58.79
Neutral
79.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBCP, the sentiment is Positive. The current price of 36.71 is above the 20-day moving average (MA) of 35.98, above the 50-day MA of 36.29, and above the 200-day MA of 35.06, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 58.79 is Neutral, neither overbought nor oversold. The STOCH value of 79.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IBCP.
Independent Bank Risk Analysis
Independent Bank disclosed 21 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $824.40M | 11.16 | 12.36% | 1.55% | 10.22% | 7.30% | |
71 Outperform | $824.26M | 10.79 | 10.24% | 2.96% | 0.24% | 12.12% | |
71 Outperform | $1.05B | 10.82 | 12.91% | 2.57% | 5.40% | 6.38% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $710.55M | 14.70 | 10.47% | 3.77% | -21.18% | ― | |
64 Neutral | $887.82M | 14.14 | 10.07% | 2.11% | -10.14% | -3.90% | |
63 Neutral | $794.91M | 10.65 | 12.91% | 1.41% | 3.10% | 24.24% |
* Financial Sector Average
IBCP
Independent Bank
37.13
7.32
24.55%
GSBC
Great Southern Bancorp
81.47
26.60
48.47%
MBWM
Mercantile Bank
60.68
18.66
44.40%
SMBC
Southern Missouri Bancorp
72.30
20.25
38.91%
MSBI
Midland States Bancrop
34.24
18.96
124.05%
SPFI
South Plains Financial
43.76
8.26
23.27%
Independent Bank Corporate Events
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Independent Bank adds new director amid HCB integration
Positive
Jul 27, 2026
Independent Bank Corporation announced on July 22, 2026, that it expanded its Board of Directors from 10 to 11 members and appointed attorney Nathan E. Tagg to fill the new seat, effective July 21, 2026. Tagg also joined the boards of Independent ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.