Independent Bank (IBCP) AI Stock Analysis

• Market Cap: $679.69M
• Dividend Yield: 3.11%
• Average Volume (3M): 85.39K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.90
• Revenue Growth: 3.17%
• EPS Growth: -1.53%
• Country: US
• Employees: 732
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Regional
• EPS (TTM): 0.80
• Shares Outstanding: 20,709,510
• 10 Day Avg. Volume: 94,249
• 30 Day Avg. Volume: 85,394
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 2.54
• Enterprise Value/Gross Profit: 3.77
• Enterprise Value/Ebitda: 8.85
• 1Y Price Target: $36.00
• Price Target Upside: 9.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: $36.00 ▲(9.69% Upside)

Independent Bank's overall stock score is driven by its solid financial performance and attractive valuation. The positive sentiment from the recent earnings call, highlighting strong loan growth and net interest margin expansion, further supports the score. Technical analysis indicates stable trends, though potential short-term bearish momentum is noted. The corporate events, while notable, do not significantly alter the company's outlook.

Independent Bank Business Overview & Revenue Model

Company Description

Independent Bank Corporation (IBCP) is a financial institution based in Michigan that offers a wide range of banking services aimed at individuals, businesses, and communities. As a full-service community bank, IBCP provides products such as personal and commercial banking, mortgage lending, and investment services. The bank operates through a network of branches and ATMs, focusing on delivering personalized customer service and fostering strong community relationships.

How the Company Makes Money

Independent Bank primarily generates revenue through net interest income, which is derived from the difference between the interest earned on loans and the interest paid on deposits. Key revenue streams include residential and commercial loan origination, mortgage services, and fees associated with deposit accounts. Additionally, the bank earns non-interest income through service charges, wealth management, and investment advisory services. Strategic partnerships with local businesses and community organizations further enhance customer loyalty and expand the bank's customer base, contributing to its overall earnings.

Independent Bank Financial Statement Overview

Summary

Independent Bank exhibits strong financial performance with robust revenue growth, healthy profitability margins, and solid cash flow generation. The balance sheet is conservative with low leverage, enhancing financial stability. However, there is room for improving operational efficiency as indicated by the EBIT margin.

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	311.63M	316.33M	283.83M	224.23M	207.12M	214.19M
Gross Profit	210.14M	211.68M	193.83M	198.79M	199.52M	185.25M
EBITDA	89.61M	93.05M	83.69M	88.61M	89.44M	78.64M
Net Income	64.74M	66.79M	59.07M	63.35M	62.90M	56.15M
Balance Sheet
Total Assets	5.42B	5.34B	5.26B	5.00B	4.70B	4.20B
Cash, Cash Equivalents and Short-Term Investments	583.87M	145.27M	849.13M	853.72M	1.52B	1.19B
Total Debt	181.46M	124.39M	129.26M	226.10M	108.96M	108.82M
Total Liabilities	4.95B	4.88B	4.86B	4.65B	4.31B	3.81B
Stockholders Equity	469.25M	454.69M	404.45M	347.60M	398.48M	389.52M
Cash Flow
Free Cash Flow	75.34M	55.20M	69.56M	88.95M	104.32M	54.30M
Operating Cash Flow	84.24M	63.15M	75.59M	94.63M	110.15M	58.68M
Investing Cash Flow	-220.01M	-118.16M	-162.94M	-424.59M	-563.06M	-553.91M
Financing Cash Flow	67.58M	5.11M	182.77M	294.86M	443.68M	548.63M

Independent Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 32.82 is above the 20-day moving average (MA) of 32.12, above the 50-day MA of 32.38, and above the 200-day MA of 32.61, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 56.24 is Neutral, neither overbought nor oversold. The STOCH value of 62.26 is Neutral, 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
GSBC	81 Outperform	$719.24M	10.83	11.48%	2.52%	4.55%	16.84%
NBBK	78 Outperform	$691.15M	14.22	6.92%	0.37%	17.31%	251.27%
HBNC	76 Outperform	$853.08M	14.15	6.84%	3.84%	7.86%	170.93%
CAC	75 Outperform	$686.29M	12.86	8.47%	4.14%	22.21%	6.20%
IBCP	72 Outperform	$679.69M	10.69	14.39%	3.11%	3.17%	-1.53%
Sector *	68 Neutral	$17.81B	11.87	10.24%	3.74%	9.75%	1.30%
EGBN	55 Neutral	$601.91M	―	-2.63%	3.33%	-2.45%	15.35%

Independent Bank Corporate Events

Independent Bank Mourns Passing of Board Member

Independent Bank Corporation announced the passing of Michael M. Magee, Jr., a current Board member and past Chairman of the Board of Directors, on August 3, 2025. Magee, who served the bank for 38 years in various leadership roles, including CEO and Chairman, was remembered for his strong leadership and dedication, leaving a significant impact on the bank’s operations and community.

Independent Bank to Present at KBW Investor Conference

On July 29, 2025, Independent Bank Corporation’s management, including CEO William B. Kessel and CFO Gavin A. Mohr, will engage with institutional investors and analysts at the KBW Community Bank Investor Conference to discuss the company’s strategies and recent financial performance. The bank’s investor presentation, available on its website, highlights its commitment to digital advancements and team investment for sustained growth, aiming to drive further revenue and earnings increases. The announcement underscores Independent Bank’s strategic focus on improving efficiencies, expanding into higher growth markets, and maintaining a strong market position, which is expected to have positive implications for stakeholders.