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Independent Bank Corp. (INDB)
:INDB
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Independent Bank (INDB) AI Stock Analysis

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INDB

Independent Bank

(NASDAQ:INDB)

Rating:72Outperform
Price Target:
$71.00
â–²(10.73% Upside)
Independent Bank's overall score is driven by strong financial performance and strategic corporate events, such as the acquisition of Enterprise Bancorp and a stock buyback plan. While technical indicators suggest short-term bearish momentum, the company's reasonable valuation and positive earnings call highlights support a stable outlook.

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

Independent Bank Business Overview & Revenue Model

Company DescriptionIndependent Bank Corp. (INDB) is a bank holding company headquartered in Rockland, Massachusetts. It is the parent company of Rockland Trust Company, which offers a wide range of banking services. The company operates primarily in the community banking sector, providing personal and business banking solutions. Its core products and services include checking and savings accounts, commercial and consumer loans, mortgages, and investment management services.
How the Company Makes MoneyIndependent Bank Corp. generates revenue primarily through interest income from its loan portfolio and investment securities. Key revenue streams include interest earned on loans to individuals and businesses, as well as income from its investment securities. Additionally, the company earns non-interest income from service charges on deposit accounts, fees from loan origination, and transaction-based fees. Independent Bank Corp. also benefits from partnerships and relationships with local businesses and communities, contributing to its deposit base and lending activities.

Independent Bank Earnings Call Summary

Earnings Call Date:Jul 17, 2025
(Q2-2025)
|
% Change Since: -2.39%|
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive achievements such as the successful exit of nonperforming assets, C&I loan growth, and the completion of the Enterprise Bank acquisition. However, these were balanced by challenges such as increased expenses, unresolved office loans, and high CRE concentration. The economic uncertainty also poses a potential risk for future growth.
Q2-2025 Updates
Positive Updates
Successful Exit of Nonperforming Assets
The company successfully exited its largest nonperforming loan and another large problem loan, reducing nonperforming assets by 35% from the first quarter.
Stock Buyback Announcement
A $150 million stock buyback was announced, reflecting confidence in the company's financial position.
C&I Loan Growth
C&I loans increased by 3.4% in the second quarter, reflecting strong performance in relationship banking.
Improved Tangible Book Value
Tangible book value improved by 2.1% from the first quarter and 8% year-over-year.
Wealth Management Growth
Assets under administration in the Wealth Management business grew by 4% to $7.4 billion.
Enterprise Bank Acquisition
The acquisition of Enterprise Bank was completed with expectations of enhancing shareholder value and expanding market reach.
Negative Updates
Increased Expenses
Higher expenses partly offset gains from improved net interest margin and lower credit costs.
Challenges with Office Loans
Some office-related nonperforming loans remain unresolved, with one significant deal falling through.
CRE Concentration Concerns
CRE concentration increased to between 310% and 315% due to the Enterprise acquisition, with goals to reduce it to 290% by 2027.
Economic Uncertainty Impact
Economic uncertainty, including the impact of tariffs, caused customers to pause significant expansion or growth initiatives.
Company Guidance
During the INDB Second Quarter 2025 Earnings Conference Call, CEO Jeff Tengel highlighted several key financial metrics and strategic initiatives. The company closed the Enterprise transaction on July 1 and announced a $150 million stock buyback. The second quarter saw better-than-expected net interest margin (NIM) performance, with a core NIM of 3.37%, and improvements in tangible book value, which increased 2.1% from the first quarter and 8% year-over-year. Nonperforming assets decreased by 35% from the first quarter, although one office-related nonperforming loan remains unresolved. Commercial and industrial (C&I) loans grew by 3.4%, while commercial real estate (CRE) and construction loan balances declined by 1.7%. The company aims to reduce its CRE concentration to 290% by year-end 2027. Additionally, INDB reported a GAAP net income of $51.1 million, with a diluted EPS of $1.20, and a return on assets of 1.04%. The adjusted operating net income was $53.5 million, with an EPS of $1.25. The call also outlined plans for a systems conversion in mid-October and ongoing efforts to improve profitability metrics.

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 Price64.12
Price Trends
50DMA
64.00
Positive
100DMA
61.97
Positive
200DMA
63.89
Positive
Market Momentum
MACD
-0.15
Positive
RSI
46.83
Neutral
STOCH
25.83
Neutral
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 64.12 is below the 20-day moving average (MA) of 65.90, above the 50-day MA of 64.00, and above the 200-day MA of 63.89, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 46.83 is Neutral, neither overbought nor oversold. The STOCH value of 25.83 is Neutral, 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$2.64B12.8521.98%4.35%-5.14%-0.94%
72
Outperform
$3.21B14.486.29%3.74%3.67%-10.83%
72
Outperform
$2.58B15.5613.49%3.00%10.28%22.73%
70
Outperform
$3.12B13.216.91%6.62%-8.29%-8.95%
70
Outperform
$2.65B15.227.92%2.96%8.35%14.42%
67
Neutral
$17.01B11.659.80%3.95%10.59%1.50%
65
Neutral
$2.51B16.4110.20%4.56%2.74%7.24%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
INDB
Independent Bank
64.12
8.69
15.68%
BOH
Bank Of Hawaii
63.15
0.67
1.07%
CVBF
Cvb Financial
19.16
3.08
19.15%
FIBK
First Interstate Bancsystem
29.71
3.38
12.84%
PRK
Park National
160.67
7.86
5.14%
TOWN
TowneBank
35.23
5.02
16.62%

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.

The most recent analyst rating on (INDB) stock is a Hold with a $74.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

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.

The most recent analyst rating on (INDB) stock is a Hold with a $61.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

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.

The most recent analyst rating on (INDB) stock is a Hold with a $61.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

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.

The most recent analyst rating on (INDB) stock is a Hold with a $61.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

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.

The most recent analyst rating on (INDB) stock is a Hold with a $72.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

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.

The most recent analyst rating on (INDB) stock is a Hold with a $61.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Independent Bank Confirms Leadership at Annual Meeting
Positive
May 15, 2025

At the 2025 Annual Meeting held on May 15, 2025, Independent Bank‘s shareholders voted on several key proposals. The reelection of five Class II Directors was confirmed, with all nominees successfully reelected. Additionally, the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025 was ratified, and the advisory approval of executive compensation was also secured. These decisions reflect a continued confidence in the current leadership and strategic direction of the company.

The most recent analyst rating on (INDB) stock is a Hold with a $61.00 price target. To see the full list of analyst forecasts on Independent Bank stock, see the INDB Stock Forecast page.

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 07, 2025