Independent Bank (INDB)
NASDAQ:INDB
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Independent Bank
(NASDAQ:INDB)
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Rating:64Neutral
Price Target:
$80.00
▼(-0.16% Downside)
Action:ReiteratedDate:03/20/26
The score is driven primarily by decent underlying financial performance but tempered by weakening cash flow and lower profitability/returns versus prior peaks. Technicals are a meaningful drag due to bearish momentum despite oversold readings, while valuation and a generally constructive 2026 outlook (NII/NIM growth and capital return) provide support.
Positive Factors
NIM and net interest income expansion
Management guides to 7%–8% NII growth and ~18–23 bps of NIM expansion for 2026, driven by lower deposit costs and funding mix improvements. Sustained NIM tailwinds materially strengthen core earnings power and cushion profitability across rate cycles.
Negative Factors
Weakening operating cash flow
Operating cash flow has declined sharply over recent years, reducing internal funds available for lending, investment, and buybacks. Lower cash conversion increases reliance on deposit and securities management to finance growth, raising execution risk if trends persist.
Read all positive and negative factors
Positive Factors
Negative Factors
NIM and net interest income expansion
Management guides to 7%–8% NII growth and ~18–23 bps of NIM expansion for 2026, driven by lower deposit costs and funding mix improvements. Sustained NIM tailwinds materially strengthen core earnings power and cushion profitability across rate cycles.
Read all positive factors
Independent Bank (INDB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.92B
Dividend Yield3.05%
Average Volume (3M)315.30K
Price to Earnings (P/E)17.6
Beta (1Y)0.92
Revenue Growth11.05%
EPS Growth-10.78%
CountryUS
Employees1,837
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.70
Shares Outstanding48,985,294
10 Day Avg. Volume246,144
30 Day Avg. Volume315,303
Financial Highlights & Ratios
PEG Ratio-11.38
Price to Book (P/B)1.01
Price to Sales (P/S)3.10
P/FCF Ratio15.09
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue3.87
Enterprise Value/Gross Profit5.70
Enterprise Value/Ebitda14.76
Forecast
1Y Price Target
$89.00Price Target Upside11.07% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)7.3
Revenue Forecast (FY)$1.04B
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 inter...
How the Company Makes Money
Independent Bank makes money primarily through (1) net interest income and (2) noninterest income.
1) Net interest income (core driver): The bank earns interest and fees on loans and other interest-earning assets (such as commercial loans, consum...
Independent Bank Earnings Call Summary
Earnings Call Date:Jan 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 16, 2026
Earnings Call Sentiment Positive
The call presented a generally positive operational and financial picture: core earnings improved, net interest margin expanded, loans (especially commercial) grew strongly, capital metrics strengthened, and the bank returned capital via dividends and buybacks. Offsetting these positives were a sizable decline in noninterest income (largely due to the one-time sale of mortgage servicing rights), a modest rise in net charge-offs and nonperforming loans (including one concentrated commercial development exposure), and guidance for more moderate loan growth and higher noninterest expense in 2026. On balance, the highlights (margin/loan growth/capital/returns) outweigh the lowlights tied primarily to the MSR sale and some credit expense pickup, resulting in a constructive outlook for 2026 with manageable risks.Positive Updates
Profitability and EPS Growth
Fourth quarter 2025 net income of $18.6M ($0.89 diluted EPS) vs $18.5M ($0.87) prior year; full year 2025 net income of $68.5M ($3.27 diluted EPS) vs $66.8M ($3.06) in 2024, reflecting year-over-year improvement in earnings and EPS.
Negative Updates
Material Decline in Noninterest Income
Noninterest income fell to $12.0M in 4Q25 from $19.1M in 4Q24. Mortgage servicing revenue dropped sharply to $0.9M from $7.8M year-over-year due to the sale of approximately $931M of mortgage servicing rights on 01/31/2025; net gains on mortgage loans also decreased (4Q25: $1.4M vs 4Q24: $1.7M).
Read all updates
Q4-2025 Updates
Positive
Negative
Profitability and EPS Growth
Fourth quarter 2025 net income of $18.6M ($0.89 diluted EPS) vs $18.5M ($0.87) prior year; full year 2025 net income of $68.5M ($3.27 diluted EPS) vs $66.8M ($3.06) in 2024, reflecting year-over-year improvement in earnings and EPS.
Read all positive updates
Company Guidance
For 2026 the company guided to mid‑single‑digit loan growth (targeting 4.5%–5.5% FY 2026) with low‑double‑digit commercial loan growth expected, net interest income growth of 7%–8% year‑over‑year, and net interest margin expansion of 5–7 basis points in Q1 followed by 3–5 bps each quarter thereafter (implying roughly 18–23 bps of NIM improvement y/y), assuming two 25‑bp Fed cuts (March and August) and slightly higher long‑term rates; management expects about $120 million of securities runoff to fund loans, a provision for credit losses of roughly 20–25 bps of average loans, quarterly noninterest income of $11.3M–$12.3M (noninterest income +3%–4% for the year; mortgage origination volumes down 6%–7%; net gain on sale down 14%–16%), quarterly noninterest expense of $36M–$37M (annual expense +5%–6%), an effective tax rate near 17%, and a board authorization for share repurchases of ~5% (though no buybacks are currently modeled).Independent Bank Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
68
Positive
Cash Flow
56
Neutral
| 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 | 251.16M | 229.92M | 276.99M | 421.20M | 190.22M |
| Investing Cash Flow | 5.05M | -33.01M | -211.65M | -1.00B | -63.14M |
| Financing Cash Flow | 295.80M | -201.35M | -193.95M | -1.31B | 816.96M |
Independent Bank Technical Analysis
Positive
80.13
Price Trends
78.47
Positive
75.83
Positive
71.06
Positive
Market Momentum
0.12
Negative
67.65
Neutral
88.00
Negative
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 80.13 is above the 20-day moving average (MA) of 75.01, above the 50-day MA of 78.47, and above the 200-day MA of 71.06, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 67.65 is Neutral, neither overbought nor oversold. The STOCH value of 88.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.53B | 9.62 | 18.37% | 3.38% | 2.35% | 13.72% | |
74 Outperform | $3.54B | 9.05 | 10.89% | 2.72% | -1.59% | 9.34% | |
69 Neutral | $4.10B | 9.05 | 11.60% | 3.52% | 9.60% | 20.38% | |
68 Neutral | $3.44B | 11.75 | 8.83% | 5.24% | -5.43% | 4.19% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $2.43B | 13.54 | 28.91% | ― | 29.24% | 21.49% | |
64 Neutral | $3.92B | 17.62 | 6.21% | 3.05% | 11.05% | -10.78% |
* Financial Sector Average
INDB
Independent Bank
80.13
23.48
41.45%
CATY
Cathay General Bancorp
52.90
13.90
35.63%
FBP
First Bancorp Puerto Rico
22.57
4.82
27.18%
FIBK
First Interstate Bancsystem
34.04
9.56
39.04%
FULT
Fulton Financial
21.33
5.68
36.29%
TBBK
Bancorp
57.53
10.54
22.43%
Independent Bank Corporate Events
DividendsFinancial Disclosures
Independent Bank Raises Quarterly Dividend, Signals Earnings Strength
Positive
Mar 19, 2026
On March 19, 2026, Independent Bank Corp., parent of Rockland Trust Company, announced that its Board of Directors approved a quarterly common stock dividend of $0.64 per share, up $0.05 from the prior quarter, representing an 8.5% increase. The d...
Business Operations and StrategyFinancial Disclosures
Independent Bank Showcases 2025 Momentum at RBC Conference
Positive
Mar 9, 2026
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...
Business Operations and Strategy
Independent Bank CEO Begins Treatment, Plans to Continue Leading
Negative
Mar 4, 2026
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 chemotherap...
Business Operations and Strategy
Independent Bank Highlights Strategy at KBW Winter Conference
Neutral
Feb 11, 2026
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...
Business Operations and StrategyStock BuybackFinancial Disclosures
Independent Bank posts strong Q4 2025 earnings growth
Positive
Jan 22, 2026
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 mill...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.