Independent Bank (INDB) AI Stock Analysis

• Market Cap: $3.35B
• Dividend Yield: 3.48%
• Average Volume (3M): 272.05K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 1.06
• Revenue Growth: 11.09%
• EPS Growth: -10.78%
• Country: US
• Employees: 1,837
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.55
• Shares Outstanding: 49,915,916
• 10 Day Avg. Volume: 264,205
• 30 Day Avg. Volume: 272,049
• 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: 1.20
• Enterprise Value/Revenue: 4.06
• Enterprise Value/Gross Profit: 6.12
• Enterprise Value/Ebitda: 14.37
• 1Y Price Target: $81.00
• Price Target Upside: 20.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: $75.00 ▲(11.46% Upside)

Independent Bank's overall score reflects its solid financial performance and successful strategic initiatives, particularly the Enterprise acquisition. While the technical indicators suggest short-term bearish momentum, the company's valuation remains attractive with a reasonable P/E ratio and a strong dividend yield. The earnings call provided positive insights into future growth, although some challenges persist in the commercial real estate sector and economic conditions.

Independent Bank Business Overview & Revenue Model

Company Description

Independent Bank (INDB) is a regional bank headquartered in Michigan, offering a range of financial services to individuals, businesses, and municipalities. The bank operates through various sectors including commercial banking, retail banking, and wealth management. Core products and services include personal and business loans, checking and savings accounts, mortgages, investment services, and financial planning.

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 exhibits a solid financial position with strong revenue growth and effective cost management, as evidenced by its gross profit margin. The balance sheet is stable with low leverage, supporting long-term growth. While cash flow generation has improved, operational cash flow conversion remains an area for improvement. Overall, the company is well-positioned for future growth, though it should focus on enhancing profitability and cash flow efficiency.

Income Statement

Independent Bank has demonstrated consistent revenue growth, with a TTM revenue growth rate of 1.01%. The gross profit margin remains strong at 66.42%, indicating efficient cost management. However, there has been a decline in net profit margin from 26.28% in 2023 to 19.02% in TTM, suggesting increased expenses or reduced pricing power. EBIT and EBITDA margins have also decreased, reflecting potential operational challenges.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.25, indicating conservative leverage. Return on equity has slightly decreased to 6.24% in TTM, but the equity ratio remains healthy, showcasing strong capitalization. The gradual increase in total assets and stockholders' equity suggests stability and growth potential.

Cash Flow

Free cash flow growth has rebounded to 23.31% in TTM, indicating improved cash generation. However, the operating cash flow to net income ratio is low at 0.015, suggesting potential inefficiencies in converting income to cash. The free cash flow to net income ratio is strong at 0.92, reflecting effective cash management despite operational cash flow challenges.

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	757.90M	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: Negative
• Last Price: 67.29
• 50DMA: Negative
• 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 Negative. The current price of 67.29 is below the 20-day moving average (MA) of 68.06, below the 50-day MA of 69.29, and above the 200-day MA of 64.38, indicating a neutral trend. The MACD of -0.38 indicates Positive momentum. The RSI at 46.24 is Neutral, neither overbought nor oversold. The STOCH value of 44.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INDB.

Independent Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FBP	―	$3.13B	9.47	18.43%	3.41%	2.35%	13.72%
INDB	―	$3.35B	16.39	5.51%	3.48%	11.09%	-10.78%
TBBK	―	$3.01B	13.65	28.59%	―	22.90%	21.49%
FULT	―	$3.16B	9.11	10.92%	4.15%	9.58%	20.38%
FIBK	―	$3.28B	13.17	7.20%	5.97%	-11.22%	4.19%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CATY	―	$3.14B	10.49	10.63%	2.99%	-1.59%	9.34%

Independent Bank Corporate Events

Independent Bank Corp. Navigates Earnings Call Insights

The recent earnings call of Independent Bank Corp. conveyed a mixed sentiment, highlighting both achievements and challenges. The successful integration of the Enterprise acquisition was a significant positive, contributing to increased loan originations and strong financial performance. However, the company faces hurdles with commercial real estate loan balances and non-performing assets, compounded by economic uncertainties impacting clients.

Independent Bank Corp. Reports Q3 Earnings Amid Acquisition Impact

Independent Bank Corp., the parent company of Rockland Trust Company, operates as a full-service commercial bank in the financial services sector, offering a range of banking, investment, and insurance services across Massachusetts, New Hampshire, and Rhode Island.

Independent Bank Reports Q3 Income Amid Acquisition Costs

Independent Bank Corp. reported a third-quarter net income of $34.3 million in 2025, a decrease from the previous quarter, primarily due to merger-related costs and provisions for credit losses from its acquisition of Enterprise Bancorp, Inc. Despite these costs, the acquisition added significant assets and deposits, enhancing the company’s financial performance and market positioning. The acquisition, completed on July 1, 2025, included 27 new branch locations and increased the company’s loan and deposit portfolios significantly, contributing to a stronger net interest margin and improved asset quality metrics.

The most recent analyst rating on (INDB) stock is a Buy with a $78.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

Independent Bank Declares Quarterly Stock Dividend

On September 18, 2025, Independent Bank Corp. announced the declaration of a quarterly common stock dividend. This announcement may impact the company’s financial operations and provide insights into its financial health and shareholder value strategy.

The most recent analyst rating on (INDB) stock is a Buy with a $81.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

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.

The most recent analyst rating on (INDB) stock is a Buy with a $76.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.