Independent Bank (IBCP) AI Stock Analysis

• Market Cap: $633.44M
• Dividend Yield: 3.4%
• Average Volume (3M): 64.50K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.82
• Revenue Growth: 5.59%
• EPS Growth: 7.03%
• Country: US
• Employees: 732
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.68
• Shares Outstanding: 20,720,940
• 10 Day Avg. Volume: 64,502
• 30 Day Avg. Volume: 64,502
• PEG Ratio: 2.58
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.67
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 2.71
• Enterprise Value/Ebitda: 1.59
• 1Y Price Target: $35.33
• Price Target Upside: 15.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 71 Outperform
• Price Target: $35.00 ▲(14.49%Upside)

Independent Bank's overall stock score reflects a strong financial performance with robust revenue growth and a conservative balance sheet. Technical analysis shows mixed signals, while the valuation appears attractive due to a low P/E ratio and high dividend yield. The earnings call highlighted both strengths and areas needing improvement, contributing to a stable but not outstanding stock score.

Independent Bank Business Overview & Revenue Model

Company Description

Independent Bank Corporation (IBCP) is a bank holding company headquartered in Grand Rapids, Michigan. It operates through its subsidiary, Independent Bank, which provides a range of commercial banking services to individuals and businesses. The bank's core offerings include personal and business checking and savings accounts, loans, mortgages, and other financial services. Independent Bank primarily serves customers in Michigan, focusing on community-oriented banking and delivering personalized customer service.

How the Company Makes Money

Independent Bank Corporation makes money primarily through the spread between the interest it earns on loans and the interest it pays on deposits, known as the net interest margin. Key revenue streams include interest income from various loan products such as commercial loans, residential mortgages, and consumer loans. Additionally, the bank generates non-interest income from service charges on deposit accounts, transaction fees, and investment services. The bank also benefits from its strategic partnerships with financial service providers, enhancing its product offerings and customer reach. Factors such as local economic conditions, interest rate fluctuations, and regulatory changes can significantly impact the bank's earnings.

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
318.69M	215.80M	200.50M	234.13M	207.12M	197.52M
	Gross Profit
214.07M	211.68M	193.83M	198.79M	199.03M	197.52M
	EBIT
88.09M	83.05M	91.53M	77.79M	77.31M	88.10M
	EBITDA
92.20M	93.05M	79.42M	83.87M	83.68M	78.64M
	Net Income Common Stockholders
66.39M	66.79M	59.07M	63.35M	62.90M	56.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
590.24M	145.27M	849.13M	853.72M	1.52B	1.19B
	Total Assets
5.33B	5.34B	5.26B	5.00B	4.70B	4.20B
	Total Debt
124.43M	124.39M	129.26M	226.10M	108.96M	108.82M
	Net Debt
-3.71M	4.51M	-40.52M	151.73M	-515.00K	-9.89M
	Total Liabilities
4.86B	4.88B	4.86B	4.65B	4.31B	3.83B
	Stockholders Equity
467.28M	454.69M	404.45M	347.60M	398.48M	389.52M
Cash Flow		Free Cash Flow
70.00M	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: 30.57
• 50DMA: Negative
• 100DMA: Negative
• 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 30.57 is below the 20-day moving average (MA) of 31.63, below the 50-day MA of 30.84, and below the 200-day MA of 33.07, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.61 is Neutral, neither overbought nor oversold. The STOCH value of 37.35 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
CAC	71 Outperform	$654.11M	12.31	8.24%	4.34%	18.13%	4.86%
IBCP	71 Outperform	$633.44M	9.73	15.04%	3.40%	5.59%	7.03%
HBNC	70 Outperform	$643.82M	14.18	6.06%	4.38%	9.55%	90.70%
GSBC	69 Neutral	$637.85M	9.94	11.13%	2.88%	7.98%	10.16%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.05%	12.07%	-7.97%
NBBK	55 Neutral	$605.41M	13.77	6.26%	―	22.18%	277.02%
EGBN	55 Neutral	$533.73M	―	-3.60%	3.76%	1.68%	-159.14%

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.