Independent Bank (INDB) AI Stock Analysis

• Market Cap: $3.57B
• Dividend Yield: 3.25%
• Average Volume (3M): 313.40K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.89
• Revenue Growth: 11.05%
• EPS Growth: -10.78%
• Country: US
• Employees: 1,837
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.55
• Shares Outstanding: 49,577,267
• 10 Day Avg. Volume: 330,772
• 30 Day Avg. Volume: 313,399
• 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: 1.13
• Enterprise Value/Revenue: 2.56
• Enterprise Value/Gross Profit: 3.85
• Enterprise Value/Ebitda: 10.20
• 1Y Price Target: $81.00
• Price Target Upside: 12.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 5.48
• Revenue Forecast (FY): $853.42M

• Rating: 78 Outperform
• Price Target: $80.00 ▲(11.03% Upside)

Independent Bank's overall score reflects strong financial performance and positive earnings call highlights, particularly the successful acquisition integration and improved financial metrics. Technical indicators suggest a positive trend, though short-term caution is advised. Valuation is fair, offering a reasonable dividend yield.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, positioning the bank for continued expansion and profitability.

Net Interest Margin Improvement

Improved net interest margin enhances profitability by increasing the spread between interest income and expenses, supporting long-term financial health.

Successful Acquisition Integration

Successful integration of acquisitions with high personnel retention strengthens operational capabilities and customer retention, boosting long-term growth.

Negative Factors

Commercial Real Estate Loan Challenges

Declining commercial real estate loans could impact revenue from this segment, indicating potential challenges in maintaining loan portfolio diversity.

Non-Performing Loans

Rising non-performing loans can strain financial resources and impact profitability, necessitating improved risk management and asset quality control.

Economic Uncertainty Impact

Economic uncertainty can affect client confidence and demand for banking services, potentially hindering growth and profitability in the medium term.

Independent Bank Business Overview & Revenue Model

Company Description

Independent Bank (INDB) is a regional bank headquartered in Michigan, offering a range of financial services to individuals, businesses, and municipalities. The bank operates through various sectors including commercial banking, retail banking, and wealth management. Core products and services include personal and business loans, checking and savings accounts, mortgages, investment services, and financial planning.

How the Company Makes Money

Independent 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 Financial Statement Overview

Summary

Independent Bank demonstrates strong revenue growth and a solid financial position, with effective cost management and prudent leverage. However, there are areas for improvement, particularly in net profit margins and operational cash flow generation.

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	1.57B	974.14M	911.33M	749.84M	515.98M	507.42M
Gross Profit	1.05B	646.86M	698.88M	713.75M	484.06M	420.58M
EBITDA	394.91M	288.02M	351.24M	386.55M	189.50M	180.10M
Net Income	275.35M	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: 72.05
• 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 72.05 is above the 20-day moving average (MA) of 69.35, above the 50-day MA of 68.95, and above the 200-day MA of 64.72, indicating a bullish trend. The MACD of 0.83 indicates Negative momentum. The RSI at 59.41 is Neutral, neither overbought nor oversold. The STOCH value of 82.15 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	78 Outperform	$3.57B	17.55	5.51%	3.25%	11.05%	-10.78%
FBP	74 Outperform	$3.12B	9.61	18.43%	3.64%	2.35%	13.72%
FULT	72 Outperform	$3.28B	9.50	10.92%	3.97%	9.60%	20.38%
FIBK	71 Outperform	$3.38B	13.84	7.20%	5.72%	-5.43%	4.19%
CATY	68 Neutral	$3.30B	11.18	10.63%	2.84%	-1.59%	9.34%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TBBK	65 Neutral	$2.81B	13.38	28.59%	―	29.24%	21.49%

Independent Bank Corporate Events

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.

Independent Bank Corp. Navigates Earnings Call Insights

The recent earnings call of Independent Bank Corp. conveyed a mixed sentiment, highlighting both achievements and challenges. The successful integration of the Enterprise acquisition was a significant positive, contributing to increased loan originations and strong financial performance. However, the company faces hurdles with commercial real estate loan balances and non-performing assets, compounded by economic uncertainties impacting clients.

Independent Bank Corp. Reports Q3 Earnings Amid Acquisition Impact

Independent Bank Corp., the parent company of Rockland Trust Company, operates as a full-service commercial bank in the financial services sector, offering a range of banking, investment, and insurance services across Massachusetts, New Hampshire, and Rhode Island.

Independent Bank Reports Q3 Income Amid Acquisition Costs

Independent Bank Corp. reported a third-quarter net income of $34.3 million in 2025, a decrease from the previous quarter, primarily due to merger-related costs and provisions for credit losses from its acquisition of Enterprise Bancorp, Inc. Despite these costs, the acquisition added significant assets and deposits, enhancing the company’s financial performance and market positioning. The acquisition, completed on July 1, 2025, included 27 new branch locations and increased the company’s loan and deposit portfolios significantly, contributing to a stronger net interest margin and improved asset quality metrics.

The most recent analyst rating on (INDB) stock is a Buy with a $78.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

Independent Bank Declares Quarterly Stock Dividend

On September 18, 2025, Independent Bank Corp. announced the declaration of a quarterly common stock dividend. This announcement may impact the company’s financial operations and provide insights into its financial health and shareholder value strategy.

The most recent analyst rating on (INDB) stock is a Buy with a $81.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

Independent Bank Completes Acquisition of Enterprise Bancorp

Independent Bank Corp. announced the completion of its acquisition of Enterprise Bancorp on July 1, 2025, with a systems conversion planned for mid-October. This acquisition expands Rockland Trust’s footprint into Northern Massachusetts and Southern New Hampshire, enhancing its market density and positioning it as a top-performing bank in the region. The company reported strong financial performance for Q2 2025, with notable growth in commercial and industrial loans, solid deposit growth, and robust capital levels, including a $150 million share repurchase authorization. The acquisition is expected to yield full cost savings by Q1 2026, and the company remains committed to sustainable value creation and maintaining its strong brand reputation.

The most recent analyst rating on (INDB) stock is a Buy with a $76.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.