Independent Bank (INDB) AI Stock Analysis

• Market Cap: $4.00B
• Dividend Yield: 3.05%
• Average Volume (3M): 315.79K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.87
• Revenue Growth: 11.05%
• EPS Growth: -10.78%
• Country: US
• Employees: 1,837
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.70
• Shares Outstanding: 49,577,267
• 10 Day Avg. Volume: 340,578
• 30 Day Avg. Volume: 315,794
• PEG Ratio: -0.86
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 2.80
• P/FCF Ratio: 13.02
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 3.51
• Enterprise Value/Gross Profit: 5.34
• Enterprise Value/Ebitda: 13.88
• 1Y Price Target: $85.33
• Price Target Upside: 5.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $92.00 ▲(14.24% Upside)

The score is led by strong underlying financial performance (notably revenue growth and a solid balance sheet) and bullish technical trend signals. Earnings call guidance supports continued NII/NIM improvement and capital returns, partially offset by expense growth and some credit/noninterest-income headwinds. Valuation is fair rather than clearly cheap, keeping the overall score from moving higher.

Positive Factors

Strong revenue growth and NII expansion

Sustained, large TTM revenue growth indicates durable franchise expansion (organic plus acquisition) and broadening interest income sources. With management guiding continued NII/NIM improvement, higher recurring interest income should support earnings durability and reinvestment over the next 2–6 months.

Prudent balance sheet and low leverage

Low leverage and a solid equity ratio provide a stable capital foundation that supports lending growth, cushions credit volatility, and preserves flexibility for buybacks/dividends. This prudent structure reduces refinancing and solvency risk through economic cycles.

Commercial loan growth and stable deposit funding

Robust commercial loan origination delivers higher-yield assets and diversifies the loan mix away from volatile consumer channels. Coupled with a stable, improving deposit mix, this supports net interest income resilience and lowers reliance on wholesale funding over the medium term.

Negative Factors

Weak operating cash flow conversion and slight FCF decline

A modest FCF decline and weak operating cash conversion signal potential limits on internally funded growth, higher sensitivity to working capital swings, and reduced flexibility for sustained buybacks or large accretive investments without using capital markets.

Concentrated credit exposure and rising NPLs

A sizeable portion of NPLs tied to one commercial development creates concentration risk; resolution delays or further deterioration could force additional provisions, stress earnings and capital ratios, and increase volatility in credit costs over upcoming quarters.

Decline in noninterest income and rising expense guidance

A structural reduction in fee-related income (MSR sale and lower mortgage gains) makes earnings more dependent on interest margins. At the same time management expects noninterest expense to rise (guidance +5%–6%), which reduces operating leverage and compresses durable net income growth unless new fee streams replace lost revenue.

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 generates revenue primarily through interest income and non-interest income. Interest income is derived from the interest earned on loans and leases extended to customers, which constitutes a significant portion of the bank's earnings. The bank also generates non-interest income from service fees, transaction fees, and wealth management services offered to clients. Additionally, Independent Bank may engage in investment activities that contribute to its overall profitability. Strategic partnerships with other financial services providers and investment firms can enhance its product offerings and attract more clients, thereby boosting revenue. Overall, the bank's diversified service portfolio and focus on customer relationships play a crucial role in sustaining its financial performance.

Independent Bank Financial Statement Overview

Summary

Income statement strength (Income Statement Score 85) is driven by strong TTM revenue growth and solid gross margin, but net margin softened. Balance sheet is healthy (Score 78) with low leverage and a stable capital structure, though ROE is only moderate. Cash flow is the main drag (Score 70) due to slightly negative FCF growth and weaker operating cash flow conversion despite strong FCF-to-net-income.

Income Statement

Independent Bank has demonstrated strong revenue growth, particularly with a 58.79% increase in TTM (Trailing-Twelve-Months). The gross profit margin remains robust at 66.47%, indicating efficient cost management. However, the net profit margin has slightly decreased to 17.50% in TTM, suggesting some pressure on profitability. Overall, the income statement reflects solid growth and profitability, albeit with some margin compression.

Balance Sheet

The balance sheet shows a healthy debt-to-equity ratio of 0.22 in TTM, indicating prudent leverage management. The return on equity is moderate at 8.71%, reflecting decent profitability relative to shareholder equity. The equity ratio stands at 14.19%, suggesting a stable capital structure. While the company maintains a strong financial position, there is room for improvement in equity utilization.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth at -2.78% in TTM, indicating potential challenges in cash generation. The free cash flow to net income ratio is strong at 0.92, showing effective conversion of earnings into cash. However, the operating cash flow to net income ratio is low, suggesting potential issues in operational cash flow generation. Overall, cash flow management is stable but could benefit from enhanced operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.07B	974.14M	911.33M	749.84M	515.98M	507.42M
Gross Profit	706.37M	646.86M	698.88M	713.75M	484.06M	420.58M
EBITDA	271.94M	288.02M	351.24M	386.55M	189.50M	180.10M
Net Income	179.82M	192.08M	239.50M	263.81M	120.99M	121.17M
Balance Sheet
Total Assets	24.99B	19.37B	19.35B	19.29B	20.42B	13.20B
Cash, Cash Equivalents and Short-Term Investments	1.29B	367.16M	1.56B	1.75B	3.81B	1.71B
Total Debt	775.38M	701.37M	1.22B	113.38M	152.37M	181.06M
Total Liabilities	21.45B	16.38B	16.45B	16.41B	17.40B	11.50B
Stockholders Equity	3.55B	2.99B	2.90B	2.89B	3.02B	1.70B
Cash Flow
Free Cash Flow	208.73M	209.49M	261.15M	399.13M	165.02M	52.05M
Operating Cash Flow	215.12M	229.92M	276.99M	421.20M	190.22M	64.64M
Investing Cash Flow	-89.63M	-33.01M	-211.65M	-1.00B	-63.14M	-488.21M
Financing Cash Flow	360.85M	-201.35M	-193.95M	-1.31B	816.96M	1.57B

Independent Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 80.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 80.53 is above the 20-day moving average (MA) of 76.49, above the 50-day MA of 74.51, and above the 200-day MA of 67.12, indicating a bullish trend. The MACD of 1.55 indicates Negative momentum. The RSI at 64.99 is Neutral, neither overbought nor oversold. The STOCH value of 85.20 is Negative, 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
INDB	79 Outperform	$4.00B	18.14	6.25%	3.05%	11.05%	-10.78%
FBP	77 Outperform	$3.49B	10.30	18.97%	3.38%	2.35%	13.72%
FULT	75 Outperform	$3.71B	9.92	10.92%	3.52%	9.60%	20.38%
CATY	74 Outperform	$3.48B	11.17	10.63%	2.72%	-1.59%	9.34%
FIBK	73 Outperform	$3.65B	12.29	8.95%	5.24%	-5.43%	4.19%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TBBK	65 Neutral	$2.61B	12.08	28.59%	―	29.24%	21.49%

Independent Bank Corporate Events

Independent Bank posts strong Q4 2025 earnings growth

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 million, or $1.70 per diluted share, reflecting the successful integration of its recent acquisition of Enterprise Bancorp. The bank delivered higher returns on assets and equity, an expanded net interest margin driven by lower deposit costs, modest loan growth led by commercial and industrial lending, slightly higher average deposits despite seasonal period-end outflows, and stable asset composition, while also enhancing shareholder value through stock repurchases, growth in book and tangible book value per share, and a stronger common equity-to-assets position despite ongoing merger-related expenses.

The most recent analyst rating on (INDB) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

Independent Bank Highlights Acquisition Benefits to Investors

In December 2025, Independent Bank Corp. management presented to investors highlighting the successful acquisition of Enterprise Bancorp, which closed on July 1, 2025. The acquisition expanded the bank’s market presence into Northern Massachusetts and Southern New Hampshire, contributing to a stable loan and deposit base. The company reported a net interest margin increase to 3.62% and achieved significant cost savings from the acquisition, enhancing operating efficiency. The strategic move is expected to strengthen Independent Bank’s market positioning and support continued growth in key markets.

The most recent analyst rating on (INDB) stock is a Buy with a $88.00 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 Declaration

On December 10, 2025, Independent Bank Corp. announced a quarterly dividend of $0.59 per share, payable on January 7, 2026, to stockholders of record as of December 29, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact its market positioning by reinforcing investor confidence.

The most recent analyst rating on (INDB) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

Independent Bank Expands with Enterprise Bancorp Acquisition

In the third quarter of 2025, Independent Bank Corp. successfully closed its acquisition of Enterprise Bancorp on July 1, which expanded its market presence into Northern Massachusetts and Southern New Hampshire. The acquisition contributed to a stable loan and deposit base, with key personnel retention and cost savings on track. The company’s net interest margin increased to 3.62%, and it reported strong organic growth in commercial and industrial loans. The acquisition and strategic growth have positioned Independent Bank Corp. as a top-performing bank in Massachusetts, with a significant capital buffer and a diversified, low-cost deposit base.

The most recent analyst rating on (INDB) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.