Independent Bank (INDB) AI Stock Analysis

• Market Cap: $3.46B
• Dividend Yield: 3.38%
• Average Volume (3M): 282.54K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 1.00
• Revenue Growth: 3.67%
• EPS Growth: -10.83%
• Country: US
• Employees: 1,837
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.25
• Shares Outstanding: 49,915,916
• 10 Day Avg. Volume: 308,896
• 30 Day Avg. Volume: 282,540
• PEG Ratio: -0.86
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 2.80
• P/FCF Ratio: 13.02
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 3.25
• Enterprise Value/Gross Profit: 4.89
• Enterprise Value/Ebitda: 11.49
• 1Y Price Target: $76.33
• Price Target Upside: 10.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 79 Outperform
• Price Target: $81.00 ▲(17.17% Upside)

Independent Bank's overall stock score reflects strong financial performance and positive technical indicators. The earnings call provided a positive outlook with strategic initiatives supporting future growth. Valuation is reasonable, though not significantly undervalued. The company's robust balance sheet and strategic acquisitions further enhance its growth potential.

Independent Bank Business Overview & Revenue Model

Company Description

Independent 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 Money

Independent Bank generates revenue primarily through net interest income, which is earned from the difference between interest income on loans and interest expense on deposits. Additionally, the bank earns non-interest income from fees related to account services, transaction services, and wealth management services. Key revenue streams include commercial loans, consumer loans, and mortgage lending. Factors contributing to earnings include the bank's ability to manage its interest rate spread, maintain a strong loan portfolio, and effectively cross-sell its services to existing customers. Partnerships with local businesses and community organizations also enhance customer acquisition and retention, further supporting the bank’s financial performance.

Independent Bank Financial Statement Overview

Summary

Independent Bank demonstrates strong financial health with consistent revenue growth and efficient profit margins, although slight declines in net profit margin and return on equity are areas to monitor. The balance sheet is robust with moderate leverage, while cash flow management shows some room for improvement in free cash flow generation.

Income Statement

Independent Bank has shown consistent revenue growth over the years with a solid gross profit margin. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 66.2%, indicating strong operational efficiency. However, the net profit margin has slightly decreased to 19.2% in the TTM from 19.7% in 2024, suggesting increased costs or other expenses affecting bottom-line profitability. Revenue growth has been robust, showcasing the bank's ability to expand its operations effectively.

Balance Sheet

The bank maintains a healthy debt-to-equity ratio of 0.28 in the TTM, indicating moderate leverage, which is favorable for stability. The equity ratio stands at 15.3%, reflecting a solid capital base. However, the return on equity has decreased from 6.4% in 2024 to 6.2% in the TTM, suggesting a slight dip in profitability efficiency. Overall, the balance sheet remains strong with controlled debt levels and solid equity position.

Cash Flow

The free cash flow has decreased from 2024, indicating a -16.9% growth rate in the TTM, which could be a concern for liquidity management. The operating cash flow to net income ratio is approximately 1.02, reflecting effective conversion of net income into cash. The free cash flow to net income ratio is 0.92, showing that the bank is efficiently generating free cash flow relative to its net income, although there's room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	991.06M	974.14M	911.33M	749.84M	515.98M	507.42M
Gross Profit	658.27M	646.86M	698.88M	713.75M	484.06M	420.58M
EBITDA	280.37M	288.02M	351.24M	386.55M	189.50M	180.10M
Net Income	188.51M	192.08M	239.50M	263.81M	120.99M	121.17M
Balance Sheet
Total Assets	20.05B	19.37B	19.35B	19.29B	20.42B	13.20B
Cash, Cash Equivalents and Short-Term Investments	2.19B	367.16M	1.56B	1.75B	3.81B	1.71B
Total Debt	759.43M	701.37M	1.22B	113.38M	152.37M	181.06M
Total Liabilities	16.97B	16.38B	16.45B	16.41B	17.40B	11.50B
Stockholders Equity	3.07B	2.99B	2.90B	2.89B	3.02B	1.70B
Cash Flow
Free Cash Flow	214.70M	209.49M	261.15M	399.13M	165.02M	52.05M
Operating Cash Flow	233.19M	229.92M	276.99M	421.20M	190.22M	64.64M
Investing Cash Flow	-99.64M	-33.01M	-211.65M	-1.00B	-63.14M	-488.21M
Financing Cash Flow	453.81M	-201.35M	-193.95M	-1.31B	816.96M	1.57B

Independent Bank Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 69.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 69.13 is below the 20-day moving average (MA) of 70.01, above the 50-day MA of 67.89, and above the 200-day MA of 63.84, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 48.68 is Neutral, neither overbought nor oversold. The STOCH value of 20.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for INDB.

Independent Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDB	79 Outperform	$3.46B	15.68	6.29%	3.38%	3.67%	-10.83%
FIBK	73 Outperform	$3.33B	14.35	6.71%	5.92%	-2.11%	-8.95%
PRK	73 Outperform	$2.59B	15.80	12.17%	2.96%	10.28%	22.73%
CVBF	72 Outperform	$2.58B	12.94	9.09%	4.28%	-5.14%	-0.70%
BOH	71 Outperform	$2.58B	17.22	9.82%	4.31%	2.74%	7.24%
TOWN	69 Neutral	$2.77B	14.99	7.56%	3.04%	8.34%	14.44%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Independent Bank Corporate Events

Independent Bank Completes Acquisition of Enterprise Bancorp

Independent Bank Corp. announced the completion of its acquisition of Enterprise Bancorp on July 1, 2025, with a systems conversion planned for mid-October. This acquisition expands Rockland Trust’s footprint into Northern Massachusetts and Southern New Hampshire, enhancing its market density and positioning it as a top-performing bank in the region. The company reported strong financial performance for Q2 2025, with notable growth in commercial and industrial loans, solid deposit growth, and robust capital levels, including a $150 million share repurchase authorization. The acquisition is expected to yield full cost savings by Q1 2026, and the company remains committed to sustainable value creation and maintaining its strong brand reputation.

Independent Bank Announces Q2 Income Surge

On July 17, 2025, Independent Bank Corp. announced a significant increase in its second-quarter net income to $51.1 million, up from $44.4 million in the first quarter, driven by higher revenues and a lower loan loss provision. The company also revealed a new stock buyback plan authorizing the repurchase of up to $150 million in common stock, set to expire on July 16, 2026. This move, alongside the completed acquisition of Enterprise Bancorp, positions Independent Bank Corp. for strategic growth, enhancing its market presence and operational capabilities.

Independent Bank Completes Merger with Enterprise Bancorp

On July 1, 2025, Independent Bank Corp. completed its merger with Enterprise Bancorp, Inc., resulting in Enterprise merging into Independent and Enterprise Bank merging into Rockland Trust. As part of the merger, Enterprise shareholders received approximately 7.5 million shares of Independent common stock and $25.8 million in cash. Additionally, Independent assumed all outstanding $60 million of Enterprise’s subordinated notes due 2030 and plans to retire them on July 15, 2025. The merger strengthens Independent’s market position and includes the appointment of Kenneth Ansin and Joseph Lerner to the board, with George Duncan serving in a consultative role for a year to aid the transition.

Independent Bank Updates Bylaws for Virtual Meetings

On June 18, 2025, Independent Bank Corp.’s Board of Directors amended and restated the company’s by-laws to incorporate several changes. These changes include provisions for virtual shareholder meetings, requirements for preparing a list of eligible voting shareholders, and clarifications regarding the roles and removal of company officers. These amendments aim to align with Massachusetts law and streamline the company’s governance processes.

Independent Bank Announces Quarterly Dividend Payment

On June 18, 2025, Independent Bank Corp., the parent company of Rockland Trust Company, announced a quarterly dividend of $0.59 per share. This dividend will be payable on July 7, 2025, to stockholders of record as of June 30, 2025, reflecting the company’s ongoing commitment to returning value to its shareholders.