Independent Bank (INDB) AI Stock Analysis

• Market Cap: $3.74B
• Dividend Yield: 3.05%
• Average Volume (3M): 311.82K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.93
• Revenue Growth: 11.05%
• EPS Growth: -10.78%
• Country: US
• Employees: 1,837
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.70
• Shares Outstanding: 48,985,294
• 10 Day Avg. Volume: 298,029
• 30 Day Avg. Volume: 311,817
• PEG Ratio: -11.38
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 3.10
• P/FCF Ratio: 15.09
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 3.71
• Enterprise Value/Gross Profit: 5.46
• Enterprise Value/Ebitda: 14.14
• 1Y Price Target: $85.33
• Price Target Upside: 11.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): 7.25
• Revenue Forecast (FY): $1.03B

• Rating: 65 Neutral
• Price Target: $82.00 ▲(7.26% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score reflects solid underlying financial performance and supportive valuation (low P/E and a ~3.1% yield), tempered by weak near-term technical momentum. Earnings-call guidance is generally positive (NII/NIM improvement and steady loan growth) but balanced by expense growth and some credit/noninterest-income pressures, while recent corporate events add modest mixed impact.

Positive Factors

NIM & NII expansion

Sustained NIM expansion and management guidance for mid-single-digit NII growth imply improving core net interest income. That durable margin leverage supports recurring earnings capacity across rate cycles, enhancing the bank’s ability to absorb credit costs and sustain profitability over the medium term.

Commercial loan & deposit franchise

Strong commercial loan production and steady deposit growth reflect relationship-driven origination and a stable funding base. Durable commercial momentum and core deposits reduce wholesale funding needs, helping yield-accretive asset growth and predictable funding costs over multiple quarters.

Capital strength & shareholder returns

A stronger tangible equity base, meaningful tangible book value growth and active capital returns provide financial flexibility. Improved capital ratios support organic loan growth, absorb potential credit volatility, and enable disciplined buybacks/dividends without materially constraining balance-sheet initiatives.

Negative Factors

Weakening cash generation

A marked decline in operating and free cash flow reduces internal funding capacity and increases reliance on securities runoff or external funding to support loan growth and capital actions. Persistently weaker cash conversion limits balance-sheet flexibility and heightens sensitivity to funding shocks.

Credit concentration & NPL pickup

Concentration of NPLs in one commercial development exposure creates idiosyncratic credit risk that can produce episodic losses and reserve volatility. Even with overall low historic NCOs, a concentrated workout could materially pressure provisions, earnings and capital over multiple quarters.

Decline in noninterest income (MSR sale)

The MSR sale materially reduced recurring mortgage servicing revenue, shrinking fee income diversification and increasing reliance on interest income. Lower noninterest income narrows earnings levers and makes reported results more sensitive to loan yields and funding costs over the medium term.

Independent Bank Business Overview & Revenue Model

Company Description

Independent Bank Corp. operates as the bank holding company for Rockland Trust Company that provides commercial banking products and services to individuals and small-to-medium sized businesses primarily in Massachusetts. The company accepts interest checking, money market, and savings accounts, as well as demand deposits and time certificates of deposit. It also offers commercial and industrial, commercial real estate and construction, small business, consumer real estate, and personal loans. In addition, the company provides investment management and trust services to individuals, institutions, small businesses, and charitable institutions; Internet and mobile banking services, as well as estate settlement, financial planning, tax services, and other services; automated teller machine and debit cards; and mutual fund and unit investment trust shares, general securities, fixed and variable annuities, and life insurance products. As of December 31, 2021, it operates one hundred nineteen retail branches, two limited-service retail branches, and one mobile branch located within Barnstable, Bristol, Dukes, Essex, Middlesex, Nantucket, Norfolk, Plymouth, Suffolk, and Worcester counties in Eastern Massachusetts. The company was founded in 1907 and is headquartered in Rockland, Massachusetts.

How the Company Makes Money

Independent Bank generates revenue primarily through interest income and non-interest income. Interest income is derived from the interest earned on loans and leases extended to customers, which constitutes a significant portion of the bank's earnings. The bank also generates non-interest income from service fees, transaction fees, and wealth management services offered to clients. Additionally, Independent Bank may engage in investment activities that contribute to its overall profitability. Strategic partnerships with other financial services providers and investment firms can enhance its product offerings and attract more clients, thereby boosting revenue. Overall, the bank's diversified service portfolio and focus on customer relationships play a crucial role in sustaining its financial performance.

Independent Bank Financial Statement Overview

Summary

Solid revenue growth and still-healthy profitability, supported by moderate leverage and improving debt-to-equity. Offsetting factors include margin/ROE compression from 2022–2023 highs and a notable weakening trend in operating and free cash flow in 2023–2025.

Income Statement

Revenue has expanded meaningfully from 2020 to 2025, with a solid +8.6% increase in 2025 (annual). Profitability remains healthy (2025 net margin ~17.6%), but margins have compressed versus 2022–2023 levels, with net income down from 2022–2023 despite higher revenue—suggesting a less favorable earnings mix or higher costs/credit normalization.

Balance Sheet

Leverage looks moderate in the latest year (2025 debt-to-equity ~0.23) and improved substantially from 2023’s higher leverage (~0.42). Equity has grown, supporting a larger asset base, but return on equity has drifted down (from ~9.1% in 2022 to ~5.8% in 2025), indicating reduced balance-sheet efficiency and/or profitability pressure.

Cash Flow

Cash generation has weakened recently: operating cash flow fell to ~$138M in 2025 from ~$230M in 2024 and ~$421M in 2022, and free cash flow also declined with negative growth in 2023–2025. A positive offset is that free cash flow has remained roughly in line with net income in 2025 (about 1.0x), but the overall trend points to less consistent cash conversion versus earlier years.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.17B	974.14M	911.33M	749.84M	515.98M
Gross Profit	792.88M	646.86M	698.88M	713.75M	484.06M
EBITDA	306.23M	288.02M	351.24M	386.55M	189.50M
Net Income	205.12M	192.08M	239.50M	263.81M	120.99M
Balance Sheet
Total Assets	24.91B	19.37B	19.35B	19.29B	20.42B
Cash, Cash Equivalents and Short-Term Investments	234.49M	367.16M	1.56B	1.75B	3.81B
Total Debt	901.25M	701.37M	1.22B	113.38M	152.37M
Total Liabilities	21.35B	16.38B	16.45B	16.41B	17.40B
Stockholders Equity	3.57B	2.99B	2.90B	2.89B	3.02B
Cash Flow
Free Cash Flow	239.50M	209.49M	261.15M	399.13M	165.02M
Operating Cash Flow	138.19M	229.92M	276.99M	421.20M	190.22M
Investing Cash Flow	-246.10M	-33.01M	-211.65M	-1.00B	-63.14M
Financing Cash Flow	122.12M	-201.35M	-193.95M	-1.31B	816.96M

Independent Bank Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 76.45
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 76.45 is below the 20-day moving average (MA) of 80.78, below the 50-day MA of 79.16, and above the 200-day MA of 70.21, indicating a neutral trend. The MACD of -0.88 indicates Positive momentum. The RSI at 37.18 is Neutral, neither overbought nor oversold. The STOCH value of 28.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INDB.

Independent Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FBP	75 Outperform	$3.19B	9.62	18.37%	3.38%	2.35%	13.72%
CATY	74 Outperform	$3.20B	9.05	10.63%	2.72%	-1.59%	9.34%
FULT	70 Outperform	$3.60B	8.95	11.71%	3.52%	9.60%	20.38%
FIBK	68 Neutral	$3.44B	11.75	8.83%	5.24%	-5.43%	4.19%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TBBK	67 Neutral	$2.25B	13.54	28.91%	―	29.24%	21.49%
INDB	65 Neutral	$3.74B	17.62	6.21%	3.05%	11.05%	-10.78%

Independent Bank Corporate Events

Independent Bank Showcases 2025 Momentum at RBC Conference

Independent Bank Corp., parent of Rockland Trust, is a Massachusetts-based regional bank focused on New England, providing retail and commercial banking plus wealth management services, with $24.9 billion in assets and $20.1 billion in deposits at year-end 2025. The bank runs 151 branches with top-10 deposit share in each operating county and leverages a relationship-centric culture, conservative credit standards and a diversified funding base to support growth.

At the March 10, 2026 RBC Capital Markets Global Financial Institutions Conference, Independent Bank highlighted strong 2025 operating momentum, with operating EPS rising to $1.70 in Q4 2025, higher net interest margin, modest loan growth and stable asset quality. Management also underscored steady core deposit trends, controlled credit metrics in commercial real estate and office exposures, and tangible book value per share growth, positioning the franchise as a resilient, well-capitalized regional player for investors and other stakeholders.

The most recent analyst rating on (INDB) stock is a Buy with a $88.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

Independent Bank CEO Begins Treatment, Plans to Continue Leading

On March 4, 2026, Independent Bank Corp. and Rockland Trust President and CEO Jeffrey Tengel informed employees that he has been diagnosed with lymphoma, describing it as a highly treatable form of cancer for which he has already begun chemotherapy and expects a full recovery. Tengel said he plans to continue in his role with schedule adjustments, may limit attendance at large in-person events due to treatment, and stressed that the bank’s strategy, mission, and leadership strength remain unchanged, signaling continuity for employees and stakeholders despite his health challenges.

The most recent analyst rating on (INDB) stock is a Hold with a $84.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

Independent Bank Highlights Strategy at KBW Winter Conference

Independent Bank has prepared an investor presentation for use at the 2026 KBW Winter Financial Services Conference, a gathering focused on banking and financial institutions. The materials are structured as a slide-based deck, indicating a formal communication of the bank’s current positioning and outlook to the investment community.

The presentation will be delivered on Thursday, February 12, 2026, underscoring the company’s ongoing efforts to engage with analysts and investors at a prominent industry forum. By participating in this conference, Independent Bank is seeking to maintain visibility in the financial services sector and potentially influence market perceptions of its performance and strategy.

The most recent analyst rating on (INDB) stock is a Sell with a $80.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

Independent Bank posts strong Q4 2025 earnings growth

Independent Bank Corp. reported strong fourth-quarter 2025 results on January 22, 2026, with net income rising to $75.3 million, or $1.52 per diluted share, from $34.3 million in the prior quarter, and operating net income increasing to $84.4 million, or $1.70 per diluted share, reflecting the successful integration of its recent acquisition of Enterprise Bancorp. The bank delivered higher returns on assets and equity, an expanded net interest margin driven by lower deposit costs, modest loan growth led by commercial and industrial lending, slightly higher average deposits despite seasonal period-end outflows, and stable asset composition, while also enhancing shareholder value through stock repurchases, growth in book and tangible book value per share, and a stronger common equity-to-assets position despite ongoing merger-related expenses.

The most recent analyst rating on (INDB) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

Independent Bank Highlights Acquisition Benefits to Investors

In December 2025, Independent Bank Corp. management presented to investors highlighting the successful acquisition of Enterprise Bancorp, which closed on July 1, 2025. The acquisition expanded the bank’s market presence into Northern Massachusetts and Southern New Hampshire, contributing to a stable loan and deposit base. The company reported a net interest margin increase to 3.62% and achieved significant cost savings from the acquisition, enhancing operating efficiency. The strategic move is expected to strengthen Independent Bank’s market positioning and support continued growth in key markets.

The most recent analyst rating on (INDB) stock is a Buy with a $88.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

Independent Bank Announces Quarterly Dividend Declaration

On December 10, 2025, Independent Bank Corp. announced a quarterly dividend of $0.59 per share, payable on January 7, 2026, to stockholders of record as of December 29, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact its market positioning by reinforcing investor confidence.

The most recent analyst rating on (INDB) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.