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Independent Bank (INDB)
NASDAQ:INDB
US Market
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Independent Bank (INDB) AI Stock Analysis

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INDB

Independent Bank

(NASDAQ:INDB)

Rating:78Outperform
Price Target:
$76.00
â–²(5.64% Upside)
Independent Bank's overall stock score reflects strong financial performance, positive technical indicators, and strategic corporate actions. The bank's robust balance sheet and efficient profit margins are complemented by favorable market momentum and strategic initiatives like acquisitions and stock buybacks. While there are minor concerns in profitability and liquidity metrics, the overall outlook remains positive.

Independent Bank (INDB) vs. SPDR S&P 500 ETF (SPY)

Independent Bank Business Overview & Revenue Model

Company DescriptionIndependent 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 MoneyIndependent Bank generates revenue primarily through net interest income, which is earned from the difference between interest income on loans and interest expense on deposits. Additionally, the bank earns non-interest income from fees related to account services, transaction services, and wealth management services. Key revenue streams include commercial loans, consumer loans, and mortgage lending. Factors contributing to earnings include the bank's ability to manage its interest rate spread, maintain a strong loan portfolio, and effectively cross-sell its services to existing customers. Partnerships with local businesses and community organizations also enhance customer acquisition and retention, further supporting the bank’s financial performance.

Independent Bank Earnings Call Summary

Earnings Call Date:Jul 17, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Positive
The earnings call reflects a mix of positive achievements such as successful transaction closures, strong deposit growth, and reduction in nonperforming assets. However, challenges remain with economic uncertainties, increased criticized loans, and competitive pressures. The sentiment leans towards positive due to significant strategic progress and financial improvements.
Q2-2025 Updates
Positive Updates
Successful Enterprise Transaction
The company closed on the Enterprise transaction on July 1, indicating strong collaboration and synergies expected from the acquisition.
Significant Reduction in Nonperforming Assets
Nonperforming assets were reduced by 35% from the first quarter, showing effective management of problem loans.
Strong Deposit Growth
Non-time deposits grew by 3.6% year-over-year and 1.6% from the first quarter, showcasing the company's robust funding base.
Increase in Tangible Book Value
Tangible book value improved by 2.1% from the first quarter and 8% from the year-ago quarter.
Share Buyback Plan
The company announced a $150 million stock buyback plan, indicating confidence in its financial position.
C&I Loan Growth
Commercial & Industrial loans were up 3.4% in the second quarter, reflecting the company's focus on reducing CRE concentration.
Negative Updates
Continued Runoff in CRE Portfolio
The company continues to experience a runoff in the CRE portfolio, which is impacting loan growth.
Economic Uncertainty and Tariff Impact
Economic uncertainty due to tariffs and federal actions is causing customers to pause expansion and growth initiatives.
Unresolved Nonperforming Office Loan
One nonperforming office-related loan deal fell through and is being remarketed for sale.
Increase in Criticized and Classified Loans
There was an uptick in criticized and classified loans, raising concerns about asset quality.
Competitive Pressure on Loan Pricing
The competitive landscape is challenging, particularly in the C&I portfolio, affecting loan demand and pricing.
Company Guidance
During the INDB Second Quarter 2025 Earnings Conference Call, CEO Jeffrey J. Tengel provided guidance that highlighted several key metrics and strategic initiatives. The company reported a better-than-expected net interest margin (NIM) performance and noted solid commercial and industrial (C&I) loan growth of 3.4%, alongside strong deposit growth of 1.6% from the first quarter. Despite a continued runoff in the commercial real estate (CRE) portfolio, tangible book value improved by 2.1% from the previous quarter and 8% from the same quarter last year. Nonperforming assets were reduced by 35% from the first quarter, although one office-related nonperforming loan is still being remarketed. The company aims to reduce its CRE concentration ratio to 290% by 2027. Additionally, INDB announced a $150 million stock buyback plan and completed the acquisition of Enterprise Bank, which is expected to be 8% to 9% dilutive to tangible capital initially. The company continues to focus on growing its C&I segment, with planned loan growth in the mid-single-digit range, and improving its profitability metrics through prudent expense and capital management.

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
78
Positive
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
75
Positive
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
70
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue974.14M911.33M749.84M515.98M507.42M
Gross Profit646.86M698.88M713.75M484.06M420.58M
EBITDA288.02M351.24M386.55M189.50M180.10M
Net Income192.08M239.50M263.81M120.99M121.17M
Balance Sheet
Total Assets19.37B19.35B19.29B20.42B13.20B
Cash, Cash Equivalents and Short-Term Investments367.16M1.56B1.75B3.81B1.71B
Total Debt701.37M1.22B113.38M152.37M181.06M
Total Liabilities16.38B16.45B16.41B17.40B11.50B
Stockholders Equity2.99B2.90B2.89B3.02B1.70B
Cash Flow
Free Cash Flow209.49M261.15M399.13M165.02M52.05M
Operating Cash Flow229.92M276.99M421.20M190.22M64.64M
Investing Cash Flow-33.01M-211.65M-1.00B-63.14M-488.21M
Financing Cash Flow-201.35M-193.95M-1.31B816.96M1.57B

Independent Bank Technical Analysis

Technical Analysis Sentiment
Positive
Last Price71.94
Price Trends
50DMA
65.61
Positive
100DMA
62.78
Positive
200DMA
64.33
Positive
Market Momentum
MACD
1.53
Negative
RSI
68.79
Neutral
STOCH
91.98
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 71.94 is above the 20-day moving average (MA) of 66.50, above the 50-day MA of 65.61, and above the 200-day MA of 64.33, indicating a bullish trend. The MACD of 1.53 indicates Negative momentum. The RSI at 68.79 is Neutral, neither overbought nor oversold. The STOCH value of 91.98 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 35 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$3.55B15.936.29%3.22%3.67%-10.83%
76
Outperform
$2.79B16.7313.49%2.73%10.28%22.73%
75
Outperform
$2.79B13.719.30%3.92%-5.14%-0.70%
73
Outperform
$3.35B14.336.91%5.84%-2.11%-8.95%
71
Outperform
$2.72B17.9710.20%4.08%2.74%7.24%
70
Outperform
$2.77B15.938.07%2.77%8.34%14.44%
68
Neutral
$17.84B12.0310.32%3.73%9.70%0.76%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
INDB
Independent Bank
71.94
11.10
18.24%
BOH
Bank Of Hawaii
68.71
4.23
6.56%
CVBF
Cvb Financial
20.43
2.82
16.01%
FIBK
First Interstate Bancsystem
32.20
3.40
11.81%
PRK
Park National
174.76
4.66
2.74%
TOWN
TowneBank
36.87
3.48
10.42%

Independent Bank Corporate Events

M&A TransactionsStock BuybackBusiness Operations and StrategyFinancial Disclosures
Independent Bank Announces Q2 Income Surge
Positive
Jul 17, 2025

On July 17, 2025, Independent Bank Corp. announced a significant increase in its second-quarter net income to $51.1 million, up from $44.4 million in the first quarter, driven by higher revenues and a lower loan loss provision. The company also revealed a new stock buyback plan authorizing the repurchase of up to $150 million in common stock, set to expire on July 16, 2026. This move, alongside the completed acquisition of Enterprise Bancorp, positions Independent Bank Corp. for strategic growth, enhancing its market presence and operational capabilities.

Executive/Board ChangesM&A Transactions
Independent Bank Completes Merger with Enterprise Bancorp
Positive
Jul 1, 2025

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.

Shareholder MeetingsBusiness Operations and StrategyRegulatory Filings and Compliance
Independent Bank Updates Bylaws for Virtual Meetings
Neutral
Jun 25, 2025

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.

Dividends
Independent Bank Announces Quarterly Dividend Payment
Positive
Jun 18, 2025

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.

M&A Transactions
Independent Bank Receives Approval for Enterprise Acquisition
Positive
Jun 4, 2025

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.

M&A Transactions
Independent Bank Announces Acquisition of Enterprise Bancorp
Positive
Jun 3, 2025

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.

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.Date of analysis: Aug 19, 2025