Independent Bank (IBCP) AI Stock Analysis

• Market Cap: $672.60M
• Dividend Yield: 3.08%
• Average Volume (3M): 78.40K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.89
• Revenue Growth: 3.13%
• EPS Growth: -1.53%
• Country: US
• Employees: 732
• Sector: Financial
• Sector Strength: 75
• Industry: Banks - Regional
• EPS (TTM): 0.80
• Shares Outstanding: 20,720,940
• 10 Day Avg. Volume: 67,003
• 30 Day Avg. Volume: 78,398
• PEG Ratio: -10.23
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.60
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 2.95
• Enterprise Value/Ebitda: 1.71
• 1Y Price Target: $36.00
• Price Target Upside: 10.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 71 Outperform
• Price Target: $36.00 ▲(10.91%Upside)

Independent Bank's overall score reflects strong financial performance and a reasonable valuation. Key strengths include robust revenue growth and a solid balance sheet. Some technical indicators show neutrality, while the earnings call presented a mixed view with both positive growth metrics and areas needing attention. The valuation supports attractiveness for income investors, balancing the overall score.

Independent Bank Business Overview & Revenue Model

Company Description

Independent Bank Corporation (IBCP) is a financial institution headquartered in Grand Rapids, Michigan. It operates in the financial services sector, offering a comprehensive range of banking products and services. The company provides traditional banking services such as checking and savings accounts, consumer loans, mortgages, and business banking solutions. Additionally, Independent Bank offers investment and insurance services to meet the diverse needs of its customers.

How the Company Makes Money

Independent Bank Corporation generates revenue primarily through interest income from loans and investment securities. The bank earns interest by lending money to consumers and businesses in the form of mortgages, personal loans, auto loans, and commercial loans. Additionally, Independent Bank earns non-interest income through service charges on deposit accounts, fees from various banking services, and investment advisory fees. The bank also benefits from partnerships with financial service providers to offer insurance and investment products, which contribute to its earnings. Effective risk management and a strong focus on customer relationships are key factors that support its financial performance.

Independent Bank Financial Statement Overview

Summary

Independent Bank exhibits strong financial performance with robust revenue growth of 46.85%, healthy profitability margins, and solid cash flow generation. The balance sheet is conservative with a low debt-to-equity ratio of 0.27, enhancing financial stability. However, there is room for improving operational efficiency as indicated by the EBIT margin of 25.57%.

Income Statement

The TTM gross profit margin stands at 76.21%, indicating strong profitability. The net profit margin is 20.94%, showing healthy bottom-line profitability. Revenue growth over the past year is robust at 46.85%, indicating strong upward trajectory. However, the EBIT margin of 25.57% suggests room for improving operational efficiency. EBITDA margin is strong at 35.45%, reflecting good cash flow generation from operations.

Balance Sheet

The debt-to-equity ratio is low at 0.27, indicating a conservative leverage position, which is positive for financial stability. Return on Equity (ROE) at 14.20% signals efficient use of equity for generating profits. The equity ratio is reasonable at 8.77%, showing that a modest portion of assets is financed by equity. While the leverage is low, the equity ratio suggests that the company is somewhat reliant on liabilities to finance its operations.

Cash Flow

The free cash flow growth rate is strong at 26.82%, indicating improved cash generation capability. The operating cash flow to net income ratio is 1.11, suggesting that the company generates sufficient cash from operations relative to its net income. The free cash flow to net income ratio is 1.05, reflecting adequate free cash flow generation relative to profits. The strong cash flow metrics support the company’s operational and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	315.05M	316.33M	283.83M	224.23M	207.12M	214.19M
Gross Profit	212.05M	211.68M	193.83M	198.79M	199.52M	185.25M
EBITDA	92.20M	93.05M	83.69M	88.61M	89.44M	78.64M
Net Income	66.39M	66.79M	59.07M	63.35M	62.90M	56.15M
Balance Sheet
Total Assets	5.33B	5.34B	5.26B	5.00B	4.70B	4.20B
Cash, Cash Equivalents and Short-Term Investments	657.82M	145.27M	849.13M	853.72M	1.52B	1.19B
Total Debt	124.43M	124.39M	129.26M	226.10M	108.96M	108.82M
Total Liabilities	4.86B	4.88B	4.86B	4.65B	4.31B	3.81B
Stockholders Equity	467.28M	454.69M	404.45M	347.60M	398.48M	389.52M
Cash Flow
Free Cash Flow	65.62M	55.20M	69.56M	88.95M	104.32M	53.79M
Operating Cash Flow	74.02M	63.15M	75.59M	94.63M	110.15M	58.68M
Investing Cash Flow	-132.52M	-118.16M	-162.94M	-424.59M	-563.06M	-553.91M
Financing Cash Flow	24.80M	5.11M	182.77M	294.86M	443.68M	548.63M

Independent Bank Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBCP, the sentiment is Negative. The current price of 32.46 is below the 20-day moving average (MA) of 33.78, above the 50-day MA of 32.41, and below the 200-day MA of 33.14, indicating a neutral trend. The MACD of 0.34 indicates Positive momentum. The RSI at 43.56 is Neutral, neither overbought nor oversold. The STOCH value of 27.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IBCP.

Independent Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NBBK	78 Outperform	$651.57M	13.93	6.92%	―	17.31%	251.27%
GSBC	78 Outperform	$680.51M	10.12	11.48%	2.70%	4.50%	16.92%
IBCP	71 Outperform	$672.60M	10.56	14.39%	3.08%	3.13%	-1.53%
CAC	71 Outperform	$692.99M	13.04	8.24%	4.10%	18.13%	4.86%
HBNC	70 Outperform	$688.80M	13.26	6.84%	4.10%	7.82%	170.93%
Sector *	68 Neutral	$17.21B	11.20	9.71%	3.57%	11.12%	-4.52%
EGBN	51 Neutral	$493.63M	―	-2.63%	5.82%	-2.37%	15.33%

Independent Bank Corporate Events

Independent Bank Reports Strong 2024 Financial Performance

During the 2025 Annual Meeting of Shareholders held on April 22, Independent Bank Corporation presented its financial performance for 2024, highlighting a net income of $66.8 million and a 5% increase in cash dividends per share. The meeting included voting on the election of directors, ratification of auditors, and an advisory vote on executive compensation. The company reported strong loan growth, particularly in commercial loans, and maintained a solid balance sheet with a loan-to-deposit ratio of 86.8%. These results underscore Independent Bank’s consistent growth and profitability, reinforcing its strong position in the financial market.