Independent Bank (INDB) AI Stock Analysis

• Market Cap: $3.83B
• Dividend Yield: 3.05%
• Average Volume (3M): 277.54K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.86
• 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: 304,314
• 30 Day Avg. Volume: 277,541
• 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: 1.05
• Enterprise Value/Revenue: 2.56
• Enterprise Value/Gross Profit: 3.85
• Enterprise Value/Ebitda: 10.20
• 1Y Price Target: $80.75
• Price Target Upside: 4.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 5.55
• Revenue Forecast (FY): $853.42M

• Rating: 80 Outperform
• Price Target: $88.00 ▲(13.70% Upside)

Independent Bank's strong financial performance and successful strategic acquisitions are major strengths, driving the stock's positive outlook. Technical indicators support a bullish trend, while valuation metrics and corporate events further enhance investor confidence. However, challenges in operational cash flow and commercial real estate loans present areas for improvement.

Positive Factors

Successful Acquisition

The successful integration of Enterprise Bancorp expands market presence and enhances operational efficiency, supporting long-term growth.

Revenue Growth

Strong revenue growth indicates effective business strategies and market demand, supporting sustainable financial performance.

Loan and Deposit Growth

Robust loan and deposit growth reflects strong customer demand and effective banking operations, enhancing financial stability.

Negative Factors

Commercial Real Estate Loan Challenges

Declining commercial real estate loans may indicate market challenges, potentially affecting revenue from this segment.

Non-Performing Loans

Rising non-performing loans suggest asset quality concerns, which could impact profitability and require increased provisions.

Operational Cash Flow Issues

Weak operational cash flow generation may limit financial flexibility and investment capacity, affecting long-term growth potential.

Independent Bank Business Overview & Revenue Model

Company Description

Independent Bank (INDB) is a publicly traded financial institution based in the United States, primarily engaged in providing a wide range of banking services. The bank operates through various sectors, including commercial banking, consumer banking, and wealth management, catering to both individual and business clients. Its core products and services include checking and savings accounts, loans (including personal, mortgage, and business loans), investment services, and financial advisory, aimed at fostering financial growth and stability for its customers.

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

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: 77.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 77.4 is above the 20-day moving average (MA) of 74.59, above the 50-day MA of 70.69, and above the 200-day MA of 65.43, indicating a bullish trend. The MACD of 2.01 indicates Negative momentum. The RSI at 69.48 is Neutral, neither overbought nor oversold. The STOCH value of 77.55 is Neutral, 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	80 Outperform	$3.83B	18.86	5.51%	3.05%	11.05%	-10.78%
FBP	76 Outperform	$3.39B	10.44	18.43%	3.35%	2.35%	13.72%
FIBK	76 Outperform	$3.68B	15.07	7.20%	5.26%	-5.43%	4.19%
CATY	72 Outperform	$3.43B	11.64	10.63%	2.70%	-1.59%	9.34%
FULT	71 Outperform	$3.65B	10.57	10.92%	3.52%	9.60%	20.38%
TBBK	69 Neutral	$3.02B	14.38	28.59%	―	29.24%	21.49%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Independent Bank Corporate Events

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.

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.

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.

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.