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Independent Bank (INDB)
NASDAQ:INDB
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Independent Bank
(NASDAQ:INDB)
76Outperform
Independent Bank (INDB) vs. S&P 500 (SPY)
Market Cap
$2.60B
Dividend Yield3.75%
Average Volume (3M)259.14K
Price to Earnings (P/E)13.4
Beta (1Y)1.15
Revenue Growth6.21%
EPS Growth-16.59%
CountryUS
Employees1,787
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)4.52
Shares Outstanding42,605,297
10 Day Avg. Volume300,423
30 Day Avg. Volume259,141
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.96
Price to Cash Flow (P/CF)15.10
P/FCF Ratio6.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$77.33Price Target Upside26.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Independent Bank Business Overview & Revenue Model
Company DescriptionIndependent Bank Corp (INDB) is a publicly traded bank holding company headquartered in Rockland, Massachusetts. It operates through its primary subsidiary, Rockland Trust Company, which offers a wide range of banking and financial services. The bank provides personal and business banking solutions, including checking and savings accounts, mortgage and personal loans, commercial lending, cash management, and investment advisory services primarily in Massachusetts and Rhode Island.
How the Company Makes MoneyIndependent Bank Corp generates revenue through interest income and non-interest income. The bank primarily earns interest income from loans it provides to individuals and businesses, such as mortgages, personal loans, and commercial loans. This interest income is the largest revenue stream. On the other hand, non-interest income is derived from fees and service charges associated with banking services like account maintenance fees, transaction fees, and penalties. Additionally, the bank earns revenue from investment services and trust management fees. Partnerships with financial service providers for investment and insurance products also contribute to Independent Bank's earnings, enhancing its product offerings and cross-selling opportunities.
Independent Bank Financial Statement Overview
Summary
Independent Bank has demonstrated strong revenue growth and maintained a high gross profit margin, highlighting robust core operations. The absence of debt in recent years is a significant strength, providing substantial financial flexibility. However, the decline in net income and operating cash flow indicates potential profitability challenges. The company appears financially stable with a solid equity base, but improving cost management and cash flow are essential for enhanced financial performance.Income Statement
Independent Bank has shown solid revenue growth with a consistent increase from $477.5M in 2020 to $852.8M in 2024. The gross profit margin has remained consistently high at 100%, indicating strong profitability. However, net income decreased in 2024 despite increased revenue, suggesting rising costs or other financial pressures. The EBIT margin in 2023 was strong at 39.6%, but it was not available for 2024, which limits the analysis of operating efficiency.78
Positive
Balance Sheet
The company maintains a robust balance sheet with no total debt in 2024, enhancing its financial stability. The equity ratio has remained stable around 15% to 16% over the years, indicating a healthy level of equity financing. Return on equity was strong at 8.3% in 2024, although it declined from previous years, pointing to reduced profitability relative to shareholder equity.85
Very Positive
Cash Flow
Operating cash flow has fluctuated, with a notable decline from $421.2M in 2022 to $229.9M in 2024. Free cash flow remained positive but decreased in 2024, affecting financial flexibility. The operating cash flow to net income ratio was 1.20 in 2024, showing good cash generation relative to net income, despite the year-over-year decline.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 852.75M | 795.73M | 727.92M | 507.41M | 477.45M | Gross Profit |
| 852.75M | 795.73M | 727.92M | 507.41M | 477.45M | EBIT |
| -579.04M | 315.13M | 338.55M | 156.68M | 152.84M | EBITDA |
| 0.00 | 0.00 | 386.55M | 189.50M | 174.40M | Net Income Common Stockholders |
| 192.08M | 239.50M | 263.81M | 120.99M | 121.17M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 187.85M | 224.33M | 1.75B | 3.81B | 1.71B | Total Assets |
| 19.37B | 19.35B | 19.29B | 20.42B | 13.20B | Total Debt |
| 701.37M | 1.22B | 113.38M | 152.37M | 181.06M | Net Debt |
| 481.48M | 994.05M | -239.56M | -2.09B | -1.12B | Total Liabilities |
| 16.38B | 16.45B | 16.41B | 152.37M | 181.06M | Stockholders Equity |
| 2.99B | 2.90B | 2.89B | 3.02B | 1.70B |
| Cash Flow | Free Cash Flow | |||
| 229.92M | 261.15M | 399.13M | 165.02M | 52.05M | Operating Cash Flow |
| 229.92M | 276.99M | 421.20M | 190.22M | 64.64M | Investing Cash Flow |
| -33.01M | -211.65M | -1.00B | -63.14M | -488.21M | Financing Cash Flow |
| -201.35M | -193.95M | -1.31B | 816.96M | 1.57B |
Independent Bank Technical Analysis
Negative
61.04
Price Trends
66.31
Negative
67.07
Negative
61.01
Negative
Market Momentum
-1.18
Positive
26.18
Positive
8.05
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INDB, the sentiment is Negative. The current price of 61.04 is below the 20-day moving average (MA) of 67.43, below the 50-day MA of 66.31, and above the 200-day MA of 61.01, indicating a bearish trend. The MACD of -1.18 indicates Positive momentum. The RSI at 26.18 is Positive, neither overbought nor oversold. The STOCH value of 8.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INDB.
Independent Bank Risk Analysis
Independent Bank disclosed 36 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.60B | 13.44 | 6.52% | 3.75% | 6.21% | -16.59% | |
76 Outperform | $7.83B | 14.29 | 15.13% | 2.98% | 7.81% | -2.49% | |
74 Outperform | $4.71B | 10.38 | 7.53% | 3.65% | 15.34% | -3.89% | |
74 Outperform | $8.15B | 11.69 | 8.54% | 3.13% | 5.86% | -10.72% | |
72 Outperform | $8.15B | 16.07 | 16.67% | 1.65% | -2.75% | 11.75% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
62 Neutral | $3.18B | 11.71 | 9.69% | 3.95% | 21.10% | -4.20% |
* Financial Sector Average
Performance Comparison
INDB
Independent Bank
61.04
12.34
25.34%
CBSH
Commerce Bancshares
59.57
10.76
22.04%
CFR
Cullen/Frost Bankers
121.84
17.31
16.56%
FNB
F.N.B.
13.08
0.02
0.15%
FULT
Fulton Financial
17.24
2.57
17.52%
WBS
Webster Financial
48.72
1.64
3.48%
Independent Bank Earnings Call Summary
Earnings Call Date: Jan 16, 2025 | % Change Since: -4.51% | Next Earnings Date: Apr 17, 2025
Earnings Call Sentiment Neutral
The earnings call presented a generally positive outlook with significant progress in loan growth and strategic initiatives, such as the planned acquisition of Enterprise Bancorp. However, challenges remain with nonperforming office loans and increased expenses impacting the quarter's results.Highlights
Net Interest Margin Improvement
The net interest margin improved by 4 basis points in the fourth quarter to 3.33%, with an expectation for continued expansion throughout 2025.
Loan Growth in C&I and Small Business Segments
C&I and small business loans were up 4% and 12%, respectively, in 2024, with a 28% increase in C&I loan production.
Tangible Book Value Increase
Tangible book value improved 1% from the third quarter and 6.4% from the year-ago quarter.
Wealth Management Growth
Assets under administration grew by 7.6% in 2024 to $7 billion.
Strategic Acquisition of Enterprise Bancorp
Agreement to acquire Enterprise Bancorp to expand the Rockland Trust franchise into Northern Massachusetts and Southern New Hampshire.
Lowlights
Nonperforming Loans and Office Loan Challenges
Total nonperforming loans were relatively stable at $101.5 million, with notable issues in office loans requiring increased reserves.
Increased Specific Reserves for Troubled Office Loans
Specific reserves increased for two large office loans, with a $3.9 million and $2.2 million increase, respectively, due to pending short sales.
Outsized Expenses Impact
Noninterest expenses increased during the quarter, driven by nonrecurring items and check fraud losses, impacting earnings.
Company Guidance
During the fourth quarter 2024 earnings call for Independent Bank Corp., CEO Jeff Tengel provided guidance underscoring several key financial metrics and strategic initiatives. The bank reported a net interest margin improvement and stable credit trends, with a 3% annualized growth in average deposits and a 1.48% pre-provision net revenue ROA. There was a notable increase in tangible book value, which rose by 1% from the third quarter and 6.4% year-over-year. The bank achieved double-digit growth in its C&I and small business loan segments, enhancing its commercial loan production by 28% to $785 million. The wealth management business also saw a 7.6% increase in assets under administration, reaching $7 billion. Looking towards 2025, Independent Bank Corp. plans to focus on closing the acquisition of Enterprise Bancorp, achieving low to mid-single-digit loan growth, and realizing an estimated 12 to 15 basis points of margin expansion over the year.Independent Bank Corporate Events
M&A TransactionsBusiness Operations and Strategy
Independent Bank Highlights Strategic Acquisition at KBW Conference
Positive
Feb 12, 2025
On February 13, 2025, Independent Bank Corp. presented at the KBW Winter Financial Services Conference, highlighting their strategic acquisition of Enterprise Bancorp. This acquisition is set to expand their market presence in Northern Massachusetts and Southern New Hampshire, enhance their franchise value, and offer significant financial benefits including EPS accretion and increased market cap. The company emphasized its commitment to risk management, technological advancements, and growth in commercial and industrial lending, aiming for long-term sustainable value creation.
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Independent Bank Reports Q4 Income Growth in 2024
Positive
Jan 16, 2025
Independent Bank Corp. reported a fourth-quarter net income of $50.0 million in 2024, showing an increase from the prior quarter. This growth was driven by increased net interest income and reduced tax rates, despite incurring merger-related costs due to the pending acquisition of Enterprise Bancorp, Inc. The bank maintained stable asset quality and demonstrated strategic growth through loan and deposit management, which included a healthy remix of assets and a cautious approach to commercial real estate lending.
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.