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Independent Bank
(NASDAQ:INDB)
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Rating:75Outperform
Price Target:
$94.00
▲(10.95% Upside)
Action:Reiterated
Date:08/07/26
INDB scores well mainly on solid financial performance (profitability, improving leverage, and strong recent cash generation) and a constructive, guidance-reaffirming earnings call with continued buybacks and improving margin outlook. The score is moderated by only mixed/neutral near-term technicals and the key fundamental swing risks flagged by management (CRE paydowns, modestly higher NPAs, and deposit cost pressure).
Positive Factors
Cash generation
Consistent, strong free cash flow that slightly exceeds net income and has grown ~21.9% TTM indicates durable cash conversion. This supports sustained dividends, buybacks, organic investment, and loss-absorption through cycles, enhancing long-term financial flexibility.
Negative Factors
CRE paydowns
Concentrated CRE paydowns reduce earning assets and depress interest income while highlighting portfolio sensitivity to sponsor behavior. Protracted CRE runoff or market softness could structurally slow loan growth, lower yields, and force greater emphasis on lower-margin businesses.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent, strong free cash flow that slightly exceeds net income and has grown ~21.9% TTM indicates durable cash conversion. This supports sustained dividends, buybacks, organic investment, and loss-absorption through cycles, enhancing long-term financial flexibility.
Read all positive factors
Independent Bank (INDB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.96B
Dividend Yield2.94%
Average Volume (3M)429.52K
Price to Earnings (P/E)15.1
Beta (1Y)0.92
Revenue Growth34.13%
EPS Growth25.12%
CountryUS
Employees2,294
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)5.54
Shares Outstanding47,369,100
10 Day Avg. Volume457,083
30 Day Avg. Volume429,524
Financial Highlights & Ratios
PEG Ratio-10.60
Price to Book (P/B)1.01
Price to Sales (P/S)3.10
P/FCF Ratio15.09
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$92.00Price Target Upside8.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)7.2
Revenue Forecast (FY)$1.04B
Independent Bank Business Overview & Revenue Model
Company Description
Independent Bank Corp. functions as the parent company for Rockland Trust Company, delivering a wide array of commercial banking products and services. Its clientele primarily consists of private individuals and small to mid-sized businesses, larg...
How the Company Makes Money
Independent Bank primarily generates revenue through a banking model centered on (1) net interest income and (2) noninterest income. Net interest income is earned from the spread between interest income on earning assets—such as commercial loans, ...
Independent Bank Earnings Call Summary
Earnings Call Date:Jul 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 15, 2026
Earnings Call Sentiment Positive
The call reflected solid core profitability, a strong deposit franchise, meaningful capital returns and an improving margin environment, supported by a large commercial loan pipeline and wealth management momentum. Headwinds included lumpy CRE paydowns that reduced balances, modestly higher NPAs and transactional or promotional pressures on deposit costs, plus non-recurring systems conversion expenses. On balance, the positives around earnings, capital returns, margin improvement, and a sizable pipeline outweigh the near-term portfolio and expense pressures.Positive Updates
Solid Profitability Metrics
Q2 net income of $81.8M and diluted EPS of $1.70; return on assets 1.34%, return on average common equity 9.24%, and return on average tangible common equity 14.05%, reflecting strong core profitability.
Negative Updates
Commercial Real Estate Paydowns and Portfolio Decline
Investment CRE and construction balances declined (noted at $176M) amid elevated payoffs; two sponsor relationships accounted for ~$120M of paydowns in the quarter. Full-year CRE and construction guidance updated to flat to a low single-digit percentage decline.
Read all updates
Q2-2026 Updates
Positive
Negative
Solid Profitability Metrics
Q2 net income of $81.8M and diluted EPS of $1.70; return on assets 1.34%, return on average common equity 9.24%, and return on average tangible common equity 14.05%, reflecting strong core profitability.
Read all positive updates
Company Guidance
The company reaffirmed its 2026 targets of 1.4% return on average assets and roughly 15% return on average tangible capital, and reiterated fourth‑quarter core net interest margin guidance of 3.90%–3.95% (likely the low end) including a 10‑basis‑point purchase‑accounting accretion impact; it updated loan growth outlook to CRE and construction flat to down low‑single‑digits, C&I landing at the high end of mid‑single‑digit growth, and total consumer up low‑single‑digits, with full‑year deposit growth unchanged; capital deployment remains active with a new $200 million buyback authorization and $75 million repurchased in Q2 (CET1 12.8%, tangible capital ratio 9.7%), fee income and tax guidance unchanged, core expenses (ex‑systems conversion) still expected at $553M–$557M and one‑time systems conversion costs of $5M–$6M for the year.Independent Bank Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.25B | 1.17B | 974.14M | 911.33M | 749.84M | 515.98M |
| Gross Profit | 882.54M | 792.88M | 646.86M | 698.88M | 713.75M | 484.06M |
| EBITDA | 320.71M | 306.23M | 288.02M | 351.24M | 386.55M | 189.50M |
| Net Income | 271.35M | 205.12M | 192.08M | 239.50M | 263.81M | 120.99M |
Balance Sheet | ||||||
| Total Assets | 24.97B | 24.91B | 19.37B | 19.35B | 19.29B | 20.42B |
| Cash, Cash Equivalents and Short-Term Investments | 251.97M | 234.49M | 367.16M | 1.56B | 1.75B | 3.81B |
| Total Debt | 701.47M | 901.25M | 701.37M | 1.22B | 113.38M | 152.37M |
| Total Liabilities | 21.46B | 21.35B | 16.38B | 16.45B | 16.41B | 17.40B |
| Stockholders Equity | 3.51B | 3.57B | 2.99B | 2.90B | 2.89B | 3.02B |
Cash Flow | ||||||
| Free Cash Flow | 424.14M | 239.50M | 209.49M | 261.15M | 399.13M | 165.02M |
| Operating Cash Flow | 438.94M | 251.16M | 229.92M | 276.99M | 421.20M | 190.22M |
| Investing Cash Flow | 136.92M | 5.05M | -33.01M | -211.65M | -1.00B | -63.14M |
| Financing Cash Flow | -358.65M | 295.80M | -201.35M | -193.95M | -1.31B | 816.96M |
Independent Bank Risk Analysis
Independent Bank disclosed 36 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $4.25B | 12.31 | 11.71% | 2.30% | 1.22% | 23.49% | |
81 Outperform | $4.38B | 12.00 | 19.03% | 2.64% | 2.45% | 26.38% | |
79 Outperform | $2.84B | 12.92 | 32.32% | ― | 2.66% | 13.98% | |
75 Outperform | $3.96B | 15.11 | 7.66% | 2.89% | 34.13% | 25.12% | |
73 Outperform | $4.63B | 11.60 | 11.15% | 3.05% | 0.31% | 22.36% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $3.58B | 11.55 | 9.55% | 4.93% | -5.41% | 45.98% |
* Financial Sector Average
INDB
Independent Bank
83.73
21.44
34.43%
CATY
Cathay General Bancorp
63.41
19.17
43.34%
FBP
First Bancorp Puerto Rico
28.67
8.70
43.56%
FIBK
First Interstate Bancsystem
37.53
10.15
37.07%
FULT
Fulton Financial
24.24
7.06
41.11%
TBBK
Bancorp
69.64
5.48
8.54%
Independent Bank Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Independent Bank Highlights Strong Q2 2026 Performance
Positive
Jul 27, 2026
Independent Bank Corp. used its investor presentation for the KBW Summer Bank Conference on July 28, 2026, to highlight recent financial performance and franchise strength. For the second quarter of 2026, the company reported operating earnings pe...
Business Operations and StrategyStock BuybackFinancial Disclosures
Independent Bank posts stronger Q2 earnings and buybacks
Positive
Jul 17, 2026
Independent Bank Corp. reported second quarter 2026 net income of $81.8 million, or $1.70 per diluted share, up from $79.9 million, or $1.63 per diluted share, in the first quarter. Returns on average assets and common equity edged higher to 1.34%...
Dividends
Independent Bank Declares Quarterly Dividend, Reaffirming Shareholder Returns
Positive
Jun 18, 2026
Independent Bank Corp., the parent of Rockland Trust Company, operates as a full-service commercial bank across Massachusetts, New Hampshire, and Rhode Island, offering retail banking, commercial lending, investment management, and insurance servi...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Independent Bank Highlights Profitability, Capital Actions in Presentation
Positive
Jun 16, 2026
Independent Bank Corp., the parent of Rockland Trust, is a Massachusetts-based bank holding company focused on the New England market, offering a full suite of retail and commercial banking services as well as wealth management. As of March 31, 20...
Executive/Board ChangesShareholder Meetings
Independent Bank Shareholders Back Board, Pay at 2026 Meeting
Positive
May 14, 2026
Independent Bank shareholders convened for the company’s 2026 Annual Meeting on May 14, 2026, where investors voted on board composition, auditor ratification, and executive pay matters. The reelection of directors and approval of key govern...
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.