Independent Bank (INDB) AI Stock Analysis

• Market Cap: $2.61B
• Dividend Yield: 3.85%
• Average Volume (3M): 262.58K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.04
• Revenue Growth: 4.22%
• EPS Growth: -14.27%
• Country: US
• Employees: 1,837
• Sector: Financial
• Sector Strength: 76
• Industry: Banks - Regional
• EPS (TTM): 1.06
• Shares Outstanding: 42,618,507
• 10 Day Avg. Volume: 282,914
• 30 Day Avg. Volume: 262,583
• PEG Ratio: -7.78
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.92
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 4.21
• Enterprise Value/Ebitda: 2.32
• 1Y Price Target: $70.00
• Price Target Upside: 14.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: $68.00 ▲(11.00%Upside)

Independent Bank's overall stock score reflects strong financial performance and strategic initiatives like the acquisition of Enterprise Bancorp. However, bearish technical signals, elevated credit costs, and economic uncertainties are notable risks. The bank's valuation is appealing with a good dividend yield, supporting the stock's attractiveness for income-focused investors.

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 Corp. generates revenue primarily through interest income from its loan portfolio and investment securities. Key revenue streams include interest earned on loans to individuals and businesses, as well as income from its investment securities. Additionally, the company earns non-interest income from service charges on deposit accounts, fees from loan origination, and transaction-based fees. Independent Bank Corp. also benefits from partnerships and relationships with local businesses and communities, contributing to its deposit base and lending activities.

Independent Bank Financial Statement Overview

Summary

Independent Bank shows strong financial health with consistent revenue growth and efficient profit margins, though there are slight declines in net profit margin and return on equity. The balance sheet is robust with moderate leverage, but cash flow management indicates room for improvement in free cash flow generation.

Income Statement

Independent Bank has shown consistent revenue growth over the years with a solid gross profit margin. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 66.2%, indicating strong operational efficiency. However, the net profit margin has slightly decreased to 19.2% in the TTM from 19.7% in 2024, suggesting increased costs or other expenses affecting bottom-line profitability. Revenue growth has been robust, showcasing the bank's ability to expand its operations effectively.

Balance Sheet

The bank maintains a healthy debt-to-equity ratio of 0.28 in the TTM, indicating moderate leverage, which is favorable for stability. The equity ratio stands at 15.3%, reflecting a solid capital base. However, the return on equity has decreased from 6.4% in 2024 to 6.2% in the TTM, suggesting a slight dip in profitability efficiency. Overall, the balance sheet remains strong with controlled debt levels and solid equity position.

Cash Flow

The free cash flow has decreased from 2024, indicating a -16.9% growth rate in the TTM, which could be a concern for liquidity management. The operating cash flow to net income ratio is approximately 1.02, reflecting effective conversion of net income into cash. The free cash flow to net income ratio is 0.92, showing that the bank is efficiently generating free cash flow relative to its net income, although there's room for improvement.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
982.39M	974.14M	916.38M	749.84M	515.98M	507.42M
	Gross Profit
650.18M	646.86M	698.88M	713.75M	484.06M	420.58M
	EBIT
241.80M	249.07M	315.13M	347.75M	156.68M	152.84M
	EBITDA
282.31M	288.02M	351.24M	386.55M	189.50M	180.10M
	Net Income Common Stockholders
188.74M	192.08M	239.50M	263.81M	120.99M	121.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.00B	367.16M	1.56B	1.75B	3.81B	1.71B
	Total Assets
19.89B	19.37B	19.35B	19.29B	20.42B	13.20B
	Total Debt
859.87M	701.37M	1.22B	113.38M	152.37M	181.06M
	Net Debt
143.03M	481.48M	994.05M	-239.56M	-2.09B	-1.12B
	Total Liabilities
16.85B	16.38B	16.45B	16.41B	17.40B	11.50B
	Stockholders Equity
3.03B	2.99B	2.90B	2.89B	3.02B	1.70B
Cash Flow		Free Cash Flow
174.12M	209.49M	261.15M	399.13M	165.02M	52.05M
	Operating Cash Flow
192.12M	229.92M	276.99M	421.20M	190.22M	64.64M
	Investing Cash Flow
-68.84M	-33.01M	-211.65M	-1.00B	-63.14M	-488.21M
	Financing Cash Flow
372.25M	-201.35M	-193.95M	-1.31B	816.96M	1.57B

Independent Bank Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 61.26
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 61.26 is below the 20-day moving average (MA) of 62.50, above the 50-day MA of 60.88, and below the 200-day MA of 63.32, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 43.29 is Neutral, neither overbought nor oversold. The STOCH value of 3.36 is Positive, 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
PRK	77 Outperform	$2.58B	16.34	12.98%	2.69%	11.80%	23.34%
CVBF	76 Outperform	$2.53B	12.64	9.35%	4.35%	-1.39%	-4.00%
INDB	74 Outperform	$2.61B	13.80	6.38%	3.85%	4.22%	-14.27%
BOH	73 Outperform	$2.59B	18.31	10.03%	4.29%	2.95%	-7.85%
FIBK	70 Outperform	$2.75B	12.43	6.63%	7.17%	-0.05%	-15.66%
Sector *	64 Neutral	$12.73B	9.92	7.90%	78.88%	12.06%	-7.95%
TOWN	64 Neutral	$2.46B	13.89	8.36%	3.05%	8.59%	17.97%

Independent Bank Corporate Events

Independent Bank Announces Quarterly Dividend Payment

On June 18, 2025, Independent Bank Corp., the parent company of Rockland Trust Company, announced a quarterly dividend of $0.59 per share. This dividend will be payable on July 7, 2025, to stockholders of record as of June 30, 2025, reflecting the company’s ongoing commitment to returning value to its shareholders.

The most recent analyst rating on (INDB) stock is a Hold with a $61.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

Independent Bank Receives Approval for Enterprise Acquisition

On June 4, 2025, Independent Bank Corp. and Enterprise Bancorp, Inc. announced the receipt of all regulatory approvals for Independent’s acquisition of Enterprise. The transaction is expected to be completed on July 1, 2025, pending customary closing conditions. This acquisition marks a significant milestone for both companies, emphasizing their shared values and commitment to community-oriented banking, which is expected to enhance opportunities and support for their customers and communities.

The most recent analyst rating on (INDB) stock is a Hold with a $72.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

Independent Bank Announces Acquisition of Enterprise Bancorp

In June 2025, Independent Bank Corp. announced the acquisition of Enterprise Bancorp, which is expected to enhance its market presence in the Boston area and expand its franchise into Northern Massachusetts and Southern New Hampshire. The acquisition is projected to be financially attractive, with a significant increase in earnings per share and a strong internal rate of return, positioning the company for continued growth and solidifying its standing as a top-performing bank in Massachusetts.

The most recent analyst rating on (INDB) stock is a Hold with a $61.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

Independent Bank Confirms Leadership at Annual Meeting

At the 2025 Annual Meeting held on May 15, 2025, Independent Bank‘s shareholders voted on several key proposals. The reelection of five Class II Directors was confirmed, with all nominees successfully reelected. Additionally, the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025 was ratified, and the advisory approval of executive compensation was also secured. These decisions reflect a continued confidence in the current leadership and strategic direction of the company.

The most recent analyst rating on (INDB) stock is a Hold with a $61.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

Independent Bank Reports Q1 2025 Financial Results

Independent Bank Corp. reported a first-quarter net income of $44.4 million for 2025, a decrease from the previous quarter, primarily due to a higher loan loss provision. Despite this, the company saw growth in deposits and maintained consistent loan balances, while also raising $300 million in subordinated debt. The company increased its quarterly dividend and continued to integrate its pending acquisition of Enterprise Bancorp, Inc. The financial results reflect solid fundamentals with a slight decline in noninterest income, but an increase in net interest margin and a decrease in overall funding costs.