Independent Bank (IBCP) AI Stock Analysis

• Market Cap: $685.94M
• Dividend Yield: 3.06%
• Average Volume (3M): 126.87K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.83
• Revenue Growth: 4.29%
• EPS Growth: 10.56%
• Country: US
• Employees: 732
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.86
• Shares Outstanding: 20,691,952
• 10 Day Avg. Volume: 154,234
• 30 Day Avg. Volume: 126,871
• PEG Ratio: 0.81
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 2.30
• P/FCF Ratio: 13.17
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 2.03
• Enterprise Value/Gross Profit: 2.97
• Enterprise Value/Ebitda: 6.82
• 1Y Price Target: $35.50
• Price Target Upside: 4.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 3.26
• Revenue Forecast (FY): $230.00M

• Rating: 79 Outperform
• Price Target: $38.00 ▲(11.80% Upside)

Independent Bank's overall stock score reflects its strong financial performance and positive earnings call sentiment. The technical analysis suggests bullish momentum, although caution is warranted due to overbought signals. The valuation is attractive, offering a reasonable P/E ratio and a solid dividend yield. These factors combined indicate a favorable outlook for the stock.

Positive Factors

Revenue Growth

Consistent growth in loans and deposits indicates strong demand for the bank's services, supporting long-term revenue expansion and market position.

Balance Sheet Health

A low debt-to-equity ratio reflects prudent financial management, providing stability and flexibility for future growth and investment opportunities.

Cash Generation

Strong free cash flow growth enhances the bank's ability to invest in new opportunities, pay dividends, and manage debt, supporting long-term financial health.

Negative Factors

Nonperforming Assets

Rising nonperforming assets could indicate potential credit quality issues, which may impact profitability and require increased provisions.

Net Interest Margin Decline

A declining net interest margin can pressure profitability, as it reduces the spread between interest income and expenses, affecting long-term earnings.

Operational Cash Flow

Challenges in converting accounting profits into cash flow may hinder the bank's ability to fund operations and growth without relying on external financing.

Independent Bank Business Overview & Revenue Model

Company Description

Independent Bank Corporation operates as the bank holding company for Independent Bank that provides various banking services to individuals and businesses. The company offers checking and savings accounts, commercial lending, direct and indirect consumer financing, mortgage lending, and safe deposit box services, as well as automatic teller machine, and Internet and mobile banking services. It also provides title insurance, insurance brokerage, and investment services. The company offers its services through approximately 59 branches, two drive-thru facilities, and seven loan production offices in Michigan; and two loan production offices in Ohio. Independent Bank Corporation was founded in 1864 and is based in Grand Rapids, Michigan.

How the Company Makes Money

Independent Bank generates revenue primarily through interest income from its loan portfolio, which includes personal loans, business loans, and mortgages. The bank earns interest on loans issued to customers while paying lower interest rates on deposits, creating a net interest margin. Additionally, IBCP earns income from fees associated with account services, ATM transactions, and other banking services. The bank may also engage in investment activities and financial advisory services to diversify its revenue streams. Significant partnerships with local businesses and municipalities enhance its lending portfolio while community engagement fosters customer loyalty, further contributing to its earnings.

Independent Bank Financial Statement Overview

Summary

Independent Bank demonstrates solid profitability and effective financial management, with strong margins and a reasonable debt profile. While revenue growth has been a concern recently, the bank's ability to maintain profitability and manage debt effectively positions it well in the regional banking sector. Cash flow conversion remains an area for improvement to ensure sustainable financial health.

Income Statement

Independent Bank shows strong profitability with a consistent gross profit margin around 67-68% and a net profit margin above 20% in recent years. However, the revenue growth rate has been negative in the TTM period, indicating a potential challenge in maintaining growth momentum. EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The bank maintains a moderate debt-to-equity ratio, which has improved over the years, indicating prudent financial management. Return on equity is strong, consistently above 14%, showcasing effective use of shareholder funds. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

Cash flow metrics reveal a positive trend in free cash flow growth in the TTM period, although previous years showed declines. The operating cash flow to net income ratio is low, indicating potential challenges in converting income into cash. The free cash flow to net income ratio remains robust, reflecting good cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	314.98M	316.33M	283.83M	224.23M	207.12M	214.19M
Gross Profit	215.66M	211.68M	193.83M	198.79M	199.52M	185.25M
EBITDA	93.75M	93.05M	83.69M	88.61M	89.44M	78.64M
Net Income	68.43M	66.79M	59.07M	63.35M	62.90M	56.15M
Balance Sheet
Total Assets	5.49B	5.34B	5.26B	5.00B	4.70B	4.20B
Cash, Cash Equivalents and Short-Term Investments	392.62M	145.27M	849.13M	853.72M	1.52B	1.19B
Total Debt	41.85M	124.39M	129.26M	226.10M	108.96M	108.82M
Total Liabilities	5.00B	4.88B	4.86B	4.65B	4.31B	3.81B
Stockholders Equity	490.74M	454.69M	404.45M	347.60M	398.48M	389.52M
Cash Flow
Free Cash Flow	76.17M	55.20M	69.56M	88.95M	104.32M	54.30M
Operating Cash Flow	85.24M	63.15M	75.59M	94.63M	110.15M	58.68M
Investing Cash Flow	-162.16M	-118.16M	-162.94M	-424.59M	-563.06M	-553.91M
Financing Cash Flow	164.05M	5.11M	182.77M	294.86M	443.68M	548.63M

Independent Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBCP, the sentiment is Positive. The current price of 33.99 is above the 20-day moving average (MA) of 31.19, above the 50-day MA of 31.09, and above the 200-day MA of 31.18, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 68.76 is Neutral, neither overbought nor oversold. The STOCH value of 89.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IBCP.

Independent Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBCP	79 Outperform	$685.94M	10.19	14.51%	3.06%	4.29%	10.56%
HTBK	76 Outperform	$660.02M	15.32	6.26%	4.68%	8.23%	-0.07%
SMBC	73 Outperform	$642.21M	10.42	11.54%	1.64%	9.34%	25.21%
FCBC	72 Outperform	$614.47M	12.52	9.57%	9.79%	-0.40%	-1.43%
SPFI	72 Outperform	$616.93M	10.83	12.97%	1.60%	5.87%	37.99%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EGBN	52 Neutral	$603.48M	―	-10.24%	2.43%	-8.51%	-185.08%

Independent Bank Corporate Events

Independent Bank to Discuss Strategies at November Conferences

Independent Bank Corporation announced that its executives will meet with institutional investors and analysts at two financial services conferences in November 2025 to discuss the company’s strategies and recent financial performance. The meetings aim to reinforce the bank’s market position and communicate its growth strategies, which include digital advancements and team investments, to stakeholders. The bank’s consistent growth and profitability, highlighted by 12 consecutive years of dividend increases, underscore its strong market positioning and commitment to shareholder value.

The most recent analyst rating on (IBCP) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the IBCP Stock Forecast page.

Independent Bank Corporation Reports Strong Q3 2025 Results

Independent Bank Corporation, a Michigan-based bank holding company, operates a branch network across Michigan’s Lower Peninsula providing a full range of financial services including commercial banking, mortgage lending, consumer banking, investments, and insurance. In its third quarter of 2025, Independent Bank Corporation reported a net income of $17.5 million, or $0.84 per diluted share, marking a significant increase from the previous year’s $13.8 million, or $0.65 per diluted share. The bank also saw a 1.7% increase in net interest income over the second quarter of 2025, alongside a 20% annualized increase in tangible common equity per share. Key financial metrics for the quarter included a 3.2% annualized growth in loan balances and a 13% annualized increase in total deposits, excluding brokered time deposits. The bank’s net interest margin was stable at 3.54%, despite a slight decline from the previous quarter due to specific debt-related costs. Non-interest income rose to $11.9 million, driven by mortgage banking revenues, while non-interest expenses increased to $34.1 million. Looking ahead, Independent Bank Corporation remains optimistic about its growth prospects, with management expressing confidence in finishing 2025 strong and expanding its customer base and earnings in 2026.

Independent Bank Corp Reports Strong Q3 Growth

Independent Bank Corporation’s recent earnings call conveyed a positive sentiment, underscored by strong financial performance and significant growth in net income, loans, and deposits. Despite minor challenges such as a rise in nonperforming assets and a slight decline in the net interest margin, the overall outlook remains optimistic due to the bank’s robust growth and efficiency improvements.