Independent Bank (INDB) AI Stock Analysis

• Market Cap: $3.21B
• Dividend Yield: 3.68%
• Average Volume (3M): 408.09K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 1.07
• Revenue Growth: 4.22%
• EPS Growth: -14.27%
• Country: US
• Employees: 1,837
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 1.06
• Shares Outstanding: 50,107,000
• 10 Day Avg. Volume: 536,024
• 30 Day Avg. Volume: 408,089
• PEG Ratio: -8.28
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.69
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 5.17
• Enterprise Value/Ebitda: 2.83
• 1Y Price Target: $70.00
• Price Target Upside: 9.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: $74.00 ▲(15.37%Upside)

Independent Bank's stock is positively influenced by strong technical momentum and strategic progress from the merger with Enterprise Bancorp. While financial performance is robust, slight declines in profitability and liquidity are concerns. Valuation remains reasonable with a competitive dividend yield, and earnings call results are balanced but positive.

Independent Bank Business Overview & Revenue Model

Company Description

Independent Bank Corp. (INDB) is a bank holding company headquartered in Rockland, Massachusetts. It is the parent company of Rockland Trust Company, which offers a wide range of banking services. The company operates primarily in the community banking sector, providing personal and business banking solutions. Its core products and services include checking and savings accounts, commercial and consumer loans, mortgages, and investment management services.

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 exhibits strong financial health with consistent revenue growth and efficient profit margins. However, slight declines in net profit margin and return on equity, along with a decrease in free cash flow, suggest areas for improvement.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	974.14M	911.33M	749.84M	515.98M	507.42M
Gross Profit	646.86M	698.88M	713.75M	484.06M	420.58M
EBITDA	288.02M	351.24M	386.55M	189.50M	180.10M
Net Income	192.08M	239.50M	263.81M	120.99M	121.17M
Balance Sheet
Total Assets	19.37B	19.35B	19.29B	20.42B	13.20B
Cash, Cash Equivalents and Short-Term Investments	367.16M	1.56B	1.75B	3.81B	1.71B
Total Debt	701.37M	1.22B	113.38M	152.37M	181.06M
Total Liabilities	16.38B	16.45B	16.41B	17.40B	11.50B
Stockholders Equity	2.99B	2.90B	2.89B	3.02B	1.70B
Cash Flow
Free Cash Flow	209.49M	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

• Technical Analysis Sentiment: Positive
• Last Price: 64.14
• 50DMA: Positive
• 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 Positive. The current price of 64.14 is above the 20-day moving average (MA) of 64.09, above the 50-day MA of 63.06, and above the 200-day MA of 63.27, indicating a bullish trend. The MACD of 0.93 indicates Positive momentum. The RSI at 49.94 is Neutral, neither overbought nor oversold. The STOCH value of 36.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INDB.

Independent Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVBF	78 Outperform	$2.92B	14.58	9.35%	3.90%	-1.39%	-4.00%
PRK	78 Outperform	$2.85B	18.08	12.98%	2.43%	11.80%	23.34%
INDB	76 Outperform	$3.21B	14.45	6.38%	3.68%	4.22%	-14.27%
FIBK	72 Outperform	$3.15B	14.22	6.63%	6.27%	-0.05%	-15.66%
TOWN	70 Outperform	$2.61B	14.73	8.36%	3.11%	8.59%	17.97%
BOH	68 Neutral	$2.76B	19.52	10.03%	4.03%	2.95%	-7.85%
Sector *	67 Neutral	$16.64B	11.61	9.79%	3.78%	11.89%	-8.13%

Independent Bank Corporate Events

Independent Bank Completes Merger with Enterprise Bancorp

On July 1, 2025, Independent Bank Corp. completed its merger with Enterprise Bancorp, Inc., resulting in Enterprise merging into Independent and Enterprise Bank merging into Rockland Trust. As part of the merger, Enterprise shareholders received approximately 7.5 million shares of Independent common stock and $25.8 million in cash. Additionally, Independent assumed all outstanding $60 million of Enterprise’s subordinated notes due 2030 and plans to retire them on July 15, 2025. The merger strengthens Independent’s market position and includes the appointment of Kenneth Ansin and Joseph Lerner to the board, with George Duncan serving in a consultative role for a year to aid the transition.

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 Updates Bylaws for Virtual Meetings

On June 18, 2025, Independent Bank Corp.’s Board of Directors amended and restated the company’s by-laws to incorporate several changes. These changes include provisions for virtual shareholder meetings, requirements for preparing a list of eligible voting shareholders, and clarifications regarding the roles and removal of company officers. These amendments aim to align with Massachusetts law and streamline the company’s governance processes.

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 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.