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Independent Bank (IBCP)
NASDAQ:IBCP
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Independent Bank
(NASDAQ:IBCP)
Rating:73Outperform
Price Target:
$35.00
▲( 11.32% Upside)
Independent Bank (IBCP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$651.47M
Dividend Yield3.1%
Average Volume (3M)92.39K
Price to Earnings (P/E)10.0
Beta (1Y)0.83
Revenue Growth5.59%
EPS Growth7.03%
CountryUS
Employees732
SectorFinancial
Sector Strength82
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.68
Shares Outstanding20,720,940
10 Day Avg. Volume66,976
30 Day Avg. Volume92,394
Financial Highlights & Ratios
PEG Ratio-10.66
Price to Book (P/B)1.42
Price to Sales (P/S)0.00
P/FCF Ratio11.88
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue0.51
Enterprise Value/Gross Profit1.97
Enterprise Value/Ebitda2.53
Forecast
1Y Price Target
$35.33Price Target Upside12.37% Upside
Rating ConsensusHold
Number of Analyst Covering3
Independent Bank Business Overview & Revenue Model
Company DescriptionIndependent 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 MoneyIndependent 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 shows stable financials with strong gross profit margins and positive net income, despite operational challenges like negative EBIT. A robust balance sheet and effective cash generation offset concerns about declining cash reserves.Income Statement
The income statement for Independent Bank shows a mixed performance. The gross profit margin is consistently strong as gross profit equals total revenue. However, the TTM (Trailing-Twelve-Months) EBIT margin is highly negative due to a significant negative EBIT, indicating operational challenges. The net profit margin has remained positive, which is a positive sign. Revenue growth was positive from 2023 to 2024, indicating some recovery in the business operations.65
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio, suggesting manageable leverage. The equity ratio is healthy, showing that a good portion of assets are financed by equity. Return on equity has been positive, reflecting decent profitability relative to shareholder investment. However, there is a decline in cash and cash equivalents over the years, which could be a concern if this trend continues.70
Positive
Cash Flow
Cash flow analysis indicates a stable free cash flow, but a declining trend in operating cash flow which may affect future liquidity. The free cash flow to net income ratio is positive, suggesting effective cash generation relative to net income. The operating cash flow to net income ratio also remains positive, supporting operational efficiency.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 215.80M | 200.50M | 204.57M | 199.03M | 197.52M | Gross Profit |
| 215.80M | 294.56M | 204.57M | 199.03M | 197.52M | EBIT |
| 83.05M | 91.53M | 97.23M | 77.31M | 69.48M | EBITDA |
| 0.00 | 79.42M | 83.87M | 83.68M | 78.64M | Net Income Common Stockholders |
| 66.79M | 59.07M | 63.35M | 62.90M | 56.15M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 145.27M | 169.48M | 853.72M | 1.52B | 1.19B | Total Assets |
| 5.34B | 5.26B | 5.00B | 4.70B | 4.20B | Total Debt |
| 124.39M | 129.26M | 226.10M | 108.96M | 108.82M | Net Debt |
| 4.51M | -40.52M | 151.73M | -515.00K | -9.89M | Total Liabilities |
| 4.88B | 4.86B | 4.65B | 108.96M | 108.82M | Stockholders Equity |
| 454.69M | 404.45M | 347.60M | 398.48M | 389.52M |
| Cash Flow | Free Cash Flow | |||
| 55.20M | 69.56M | 88.95M | 104.32M | 53.79M | Operating Cash Flow |
| 63.15M | 75.59M | 94.63M | 110.15M | 58.17M | Investing Cash Flow |
| -118.16M | -162.94M | -424.59M | -563.06M | -553.40M | Financing Cash Flow |
| 5.11M | 182.77M | 294.86M | 443.68M | 548.63M |
Independent Bank Technical Analysis
Negative
31.44
Price Trends
30.68
Positive
32.28
Negative
33.08
Negative
Market Momentum
0.38
Positive
49.89
Neutral
19.69
Positive
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 31.44 is below the 20-day moving average (MA) of 31.62, above the 50-day MA of 30.68, and below the 200-day MA of 33.08, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 49.89 is Neutral, neither overbought nor oversold. The STOCH value of 19.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IBCP.
Independent Bank Risk Analysis
Independent Bank disclosed 15 risk factors in its most recent earnings report. Independent Bank reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Independent Bank Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $651.47M | 10.00 | 15.04% | 3.10% | 5.59% | 7.03% | |
72 Outperform | $664.59M | 12.51 | 8.24% | 4.24% | 18.13% | 4.86% | |
71 Outperform | $642.32M | 10.01 | 11.13% | 2.85% | 7.98% | 10.16% | |
70 Neutral | $652.20M | 14.37 | 6.06% | 4.33% | 9.68% | 90.70% | |
64 Neutral | $12.64B | 9.78 | 7.67% | 17015.08% | 12.23% | -6.02% | |
55 Neutral | $626.31M | 14.25 | 6.26% | ― | 22.18% | 277.02% | |
55 Neutral | $530.69M | ― | -3.60% | 4.45% | 1.68% | -159.14% |
* Financial Sector Average
Performance Comparison
IBCP
Independent Bank
31.44
7.13
29.33%
CAC
Camden National
39.32
8.50
27.58%
EGBN
Eagle Bancorp
17.47
0.36
2.10%
GSBC
Great Southern Bancorp
56.01
6.04
12.09%
HBNC
Horizon Bancorp
14.70
3.22
28.05%
NBBK
NB Bancorp, Inc.
16.78
1.64
10.83%
Independent Bank Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 1.35%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The call reported strong loan growth, net interest margin expansion, and excellent credit quality, alongside technological advancements. However, there were declines in net income, non-interest income, and business deposits, alongside a loss on mortgage loan servicing. The positives and negatives were relatively balanced, highlighting both achievements and areas of concern.Q1-2025 Updates
Positive Updates
Positive Loan Growth
Overall loans increased by 3.4% annualized, with commercial loan growth strong at $54.8 million or an 11% annualized rate.
Net Interest Income and Margin Expansion
Net interest income increased by $3.5 million from the year-ago period, with a net interest margin expansion to 3.49% from 3.30%.
Strong Credit Quality
Continued excellent credit metrics with non-performing loans at 17 basis points of total loans and net charge-offs at just 1 basis point of average loans.
Increase in Tangible Book Value
Tangible book value per share increased by 13.2% compared to the prior year quarter.
Innovative Technology Investments
Launch of a redesigned website that is faster, easier to navigate, and more helpful for visitors, reflecting a people-first bank approach.
Negative Updates
Slight Decline in Net Income
Net income for Q1 2025 was $15.6 million or $0.74 per diluted share, down from $16 million or $0.76 per diluted share in the prior year period.
Non-Interest Income Decline
Non-interest income totaled $10.4 million, down from $12.6 million in the year-ago quarter.
Loss on Mortgage Loan Servicing
A $0.6 million loss on mortgage loan servicing, affected by a $1.5 million loss due to change in price and a $0.9 million decrease due to paydowns.
Business Deposits Decline
Business deposits declined by $44 million during the first quarter.
Company Guidance
During the Independent Bank Corporation's first quarter 2025 earnings call, the company reported a net income of $15.6 million or $0.74 per diluted share, slightly down from the previous year's $16 million or $0.76 per diluted share. Key metrics highlighted include a 3.4% annualized increase in loans and a 0.8% rise in core deposits. The company noted a four basis point margin expansion and a decrease in total cost of funds by 12 basis points to 1.80%. Credit quality remained strong with non-performing assets at 14 basis points of total assets and net charge-offs at one basis point of average loans annualized. The allowance for credit losses was 1.47% of total loans. Additionally, the bank's tangible book value per share grew by 13.2% compared to the prior year. Total deposits were $4.63 billion, with retail deposits up by $34.2 million and business deposits down by $44 million. The presentation also included an outlook on the company's strong regulatory capital position and an update on the cost of funds compared to the Federal Reserve's rates.Independent Bank Corporate Events
Shareholder MeetingsDividendsFinancial Disclosures
Independent Bank Reports Strong 2024 Financial Performance
Positive
Apr 22, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.