Independent Bank Corp. (INDB)
NASDAQ:INDB
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Independent Bank
(NASDAQ:INDB)
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Rating:71Outperform
Price Target:
$85.00
▲(9.04% Upside)
Action:Reiterated
Date:05/15/26
INDB scores well on financial strength and shareholder-return profile (improving cash generation, conservative leverage, buybacks/dividend, and supportive valuation), but the overall score is held back by weaker technical momentum and fundamental risks flagged in the latest update—muted loan growth and elevated CRE/office asset-quality pressure despite improved NIM guidance.
Positive Factors
Conservative leverage and capital base
Independent Bank’s low debt-to-equity (~0.22) and stable equity (mid-$3B) provide durable balance-sheet resilience. This conservative leverage supports loss absorption, funds buybacks/dividends and gives management flexibility to manage CRE headwinds without immediate capital raises, underpinning medium-term stability.
Negative Factors
Elevated CRE concentration
A CRE concentration near 283% of capital materially raises portfolio vulnerability to commercial property stress, especially office. High concentration can force higher reserves, constrain lending appetite, and limit capital-return flexibility if losses or downgrades accelerate over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage and capital base
Independent Bank’s low debt-to-equity (~0.22) and stable equity (mid-$3B) provide durable balance-sheet resilience. This conservative leverage supports loss absorption, funds buybacks/dividends and gives management flexibility to manage CRE headwinds without immediate capital raises, underpinning medium-term stability.
Read all positive factors
Independent Bank (INDB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.80B
Dividend Yield3.05%
Average Volume (3M)362.55K
Price to Earnings (P/E)11.5
Beta (1Y)0.91
Revenue Growth27.40%
EPS Growth13.49%
CountryUS
Employees1,837
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)5.04
Shares Outstanding48,327,110
10 Day Avg. Volume333,966
30 Day Avg. Volume362,553
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/Revenue3.59
Enterprise Value/Gross Profit5.16
Enterprise Value/Ebitda13.99
Forecast
1Y Price Target
$90.00Price Target Upside15.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)7.3
Revenue Forecast (FY)$1.05B
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:Apr 16, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Neutral
The call presented a mix of encouraging execution and emerging headwinds. Key positives include improved net interest margin (+13 bps reported, +8 bps adjusted), solid quarterly profitability (GAAP net income $79.9M; adjusted $82.1M), disciplined capital returns ($94M returned, CET1 12.87%) and resilient wealth and C&I relationship momentum (AUA $9.2B; C&I ex-floor-plan +7% annualized). Offsetting these strengths are muted loan growth, elevated CRE concentration (≈283%) and office-specific asset quality pressures (NPAs $98.7M, 0.52%), along with seasonal and competitive deposit pressures and some one-time expense items. Management reaffirmed 2026 profitability targets and updated NIM guidance while taking prudent steps on capital and portfolio rebalancing. Overall the tone was constructive but cautious given identifiable CRE and market uncertainties.Positive Updates
Strong Quarterly Profitability
GAAP net income of $79.9M and diluted EPS of $1.63. Adjusted operating net income (ex $3M M&A expenses) was $82.1M, or $1.68 diluted EPS. Key returns: 1.31% ROA (1.35% adjusted), 9.02% return on average common equity (9.27% adjusted), and 13.67% return on average tangible common equity (14.05% adjusted).
Negative Updates
Muted Overall Loan Growth and CRE Contraction
Total commercial loans declined $50M QoQ. Commercial real estate (CRE) balances fell $94M in the quarter with the office portfolio contributing $56M of the decline. CRE concentration remains elevated at ~283% (low-280% range) and CRE & construction full-year growth guidance was trimmed to flat to low single-digit percentages.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Quarterly Profitability
GAAP net income of $79.9M and diluted EPS of $1.63. Adjusted operating net income (ex $3M M&A expenses) was $82.1M, or $1.68 diluted EPS. Key returns: 1.31% ROA (1.35% adjusted), 9.02% return on average common equity (9.27% adjusted), and 13.67% return on average tangible common equity (14.05% adjusted).
Read all positive updates
Company Guidance
Management reaffirmed 2026 targets of 1.4% return on average assets and 15% return on average tangible capital, updated CRE and construction loan growth to flat to low‑single‑digit percent (all other loan and deposit estimates unchanged), and raised its NIM outlook to a reported Q4‑2026 margin of 3.90%–3.95% (assuming ~10 bps of purchase‑accounting accretion, implying core NIM ≈3.80%), while emphasizing capital return and flexibility — CET1 was 12.87% at quarter‑end, the bank repurchased $63.3M of stock in Q1 (≈802k shares) with ~$24M remaining on the authorization and expects a new repurchase program in Q2, and it increased the quarterly dividend 8.5% to $0.64.Independent Bank Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.21B | 1.17B | 974.14M | 911.33M | 749.84M | 515.98M |
| Gross Profit | 844.23M | 792.88M | 646.86M | 698.88M | 713.75M | 484.06M |
| EBITDA | 311.34M | 306.23M | 288.02M | 351.24M | 386.55M | 189.50M |
| Net Income | 240.62M | 205.12M | 192.08M | 239.50M | 263.81M | 120.99M |
Balance Sheet | ||||||
| Total Assets | 24.78B | 24.91B | 19.37B | 19.35B | 19.29B | 20.42B |
| Cash, Cash Equivalents and Short-Term Investments | 223.29M | 234.49M | 367.16M | 1.56B | 1.75B | 3.81B |
| Total Debt | 776.26M | 901.25M | 701.37M | 1.22B | 113.38M | 152.37M |
| Total Liabilities | 21.24B | 21.35B | 16.38B | 16.45B | 16.41B | 17.40B |
| Stockholders Equity | 3.54B | 3.57B | 2.99B | 2.90B | 2.89B | 3.02B |
Cash Flow | ||||||
| Free Cash Flow | 348.06M | 239.50M | 209.49M | 261.15M | 399.13M | 165.02M |
| Operating Cash Flow | 355.04M | 251.16M | 229.92M | 276.99M | 421.20M | 190.22M |
| Investing Cash Flow | 37.67M | 5.05M | -33.01M | -211.65M | -1.00B | -63.14M |
| Financing Cash Flow | -380.57M | 295.80M | -201.35M | -193.95M | -1.31B | 816.96M |
Independent Bank Technical Analysis
Positive
77.95
Price Trends
77.06
Positive
77.77
Positive
73.40
Positive
Market Momentum
0.13
Negative
55.82
Neutral
84.91
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 77.95 is above the 20-day moving average (MA) of 77.69, above the 50-day MA of 77.06, and above the 200-day MA of 73.40, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 55.82 is Neutral, neither overbought nor oversold. The STOCH value of 84.91 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.84B | 9.62 | 11.37% | 2.72% | 0.18% | 22.52% | |
75 Outperform | $3.73B | 9.34 | 18.53% | 3.38% | 1.43% | 22.08% | |
71 Outperform | $3.80B | 11.52 | 7.01% | 3.05% | 27.40% | 13.49% | |
71 Outperform | $4.10B | 9.64 | 11.45% | 3.52% | -0.24% | 23.07% | |
71 Outperform | $2.30B | 9.42 | 30.56% | ― | 13.52% | 15.83% | |
68 Neutral | $3.45B | 13.72 | 9.13% | 5.24% | -5.29% | 45.44% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
INDB
Independent Bank
78.82
20.08
34.19%
CATY
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57.27
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37.58%
FBP
First Bancorp Puerto Rico
24.11
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23.43%
FIBK
First Interstate Bancsystem
35.49
10.33
41.04%
FULT
Fulton Financial
21.44
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TBBK
Bancorp
55.32
3.01
5.75%
Independent Bank Corporate Events
Executive/Board ChangesShareholder Meetings
Independent Bank Shareholders Back Board, Pay at 2026 Meeting
Positive
May 14, 2026
Independent Bank shareholders convened for the company’s 2026 Annual Meeting on May 14, 2026, where investors voted on board composition, auditor ratification, and executive pay matters. The reelection of directors and approval of key govern...
Business Operations and StrategyStock Buyback
Independent Bank Announces New $200 Million Share Repurchase
Positive
May 1, 2026
Independent Bank’s board has approved a new stock repurchase program, effective April 30, 2026, authorizing the buyback of up to $200 million of its common shares. The new authorization is set to follow the completion of the existing July 20...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Independent Bank Delivers Strong First-Quarter 2026 Earnings Growth
Positive
Apr 16, 2026
Independent Bank Corp. reported first-quarter 2026 net income of $79.9 million, or $1.63 per diluted share, up from $75.3 million, or $1.52 per share, in the fourth quarter of 2025, with operating net income of $82.1 million reflecting merger-rela...
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...
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.