Independent Bank Corp. (INDB) | Investment Case

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on INDB

Independent Bank Corp.'s recent performance was driven by its strong Q3 earnings, with quarterly earnings of $1.55 per share beating the Zacks Consensus Estimate. The company's recent acquisition of Enterprise Bancorp in July contributed to significant increases in loans and deposits. The acquisition added 27% to the loan portfolio's size. Net interest margin improvement and adjusted EPS of $1.55 were also notable. Operational return metrics improved, and credit losses remain manageable despite a slight softening in asset quality.

1.c. Company Highlights

Last Price	73.64
Change Percentage	-0.12%
Open	73.35
Previous Close	73.73
Market Cap ( Millions)	3651
Volume	262528
Year High	74.66
Year Low	52.15
M A 50	69.32
M A 200	65.6

FCF Yield	5.72%
Dividend Yield	3.18%
ROE	8.71%
Debt / Equity	21.86%
Net Debt / EBIDTA	149.69%
Price To Book	0.94
Price Earnings Ratio	12.05
Price To FCF	17.49
Price To sales	2.32
EV / EBITDA	11.05

2. Strong Q3 Earnings with Integration Success

The company's financial performance in Q3 was robust, with GAAP net income of $34.3 million and diluted EPS of $0.69. However, on an adjusted operating basis, net income was $77.4 million, or $1.55 diluted EPS, beating estimates of $1.54. The reported net interest margin improved meaningfully to 3.62% for the quarter, driven by loan and securities cash flow repricing, payoff of acquired debt, purchase discount accretion, and purchase loan accretion. The adjusted operating return on average tangible common equity was 13.2%, a significant improvement.

Publication Date: Oct -27

                                    📋 Highlights
                                    PPNR Return on Assets::
                                                Operating ROAA improved to 1.7%, with ROATCE rising 283 bps to 13.2%.
Integration Success::
                                                Enterprise systems conversion completed successfully, retaining ~100% of commercial client-facing personnel.
AUA Growth::
                                                Wealth management AUA reached $9.2 billion, including $1.4 billion from the Enterprise acquisition.
Stock Repurchases::
                                                $23.4 million in share buybacks at $64.07/share executed in Q3 2025.

                                

Business Segment Performance

The commercial banking side retained almost 100% of client-facing personnel and experienced negligible customer loss post the Enterprise acquisition. The wealth management business continues to be a key value driver, with AUA growing to $9.2 billion in Q3. The company is seeing a clear path for loan growth to return to a rate more commensurate with its solid deposit growth. C&I balances increased organically by over 13% on an annualized basis for the quarter, driven by the middle market and specialty businesses.

Guidance and Outlook

The company anticipates a low single-digit percentage increase in loan and deposit growth off the September balances. It reaffirms its guidance of 4-6 basis points of expansion on an adjusted basis for the net interest margin. For non-interest income, it estimates flat to low single-digit percentage growth, and for non-interest expense, it anticipates a decrease of approximately $2 million in core expenses excluding merger-related costs. As Mark Ruggiero mentioned, "We're looking to maintain a spread basis above 200 basis points, especially for C&I, which translates to around 6% loan pricing."

Valuation and Capital Position

With a P/TBV ratio of 0.97, the stock is trading close to its tangible book value. The dividend yield is 3.38%, which is attractive for income investors. The company's CET1 ratio is 12%, and it is comfortable with this level, suggesting an opportunity to continue with buyback activity. Analysts estimate next year's revenue growth at 20.7%, indicating a positive outlook for the company's future performance.

3. NewsRoom

Fisher Asset Management LLC Sells 33,736 Shares of Independent Bank Corp. $INDB

Dec -04

Source: defenseworld.net

Head to Head Comparison: OFG Bancorp (NYSE:OFG) vs. Independent Bank (NASDAQ:INDB)

Nov -27

Source: defenseworld.net

Commonwealth of Pennsylvania Public School Empls Retrmt SYS Has $688,000 Stock Position in Independent Bank Corp. $INDB

Nov -25

Source: defenseworld.net

Independent Bank Corp. $INDB Stock Holdings Lowered by Cwm LLC

Oct -24

Source: defenseworld.net

Independent Bank: Merger Complete, Onward And Upward

Oct -17

Source: seekingalpha.com

Independent Bank Corp. (INDB) Q3 2025 Earnings Call Transcript

Oct -17

Source: seekingalpha.com

Compared to Estimates, Independent Bank Corp. (INDB) Q3 Earnings: A Look at Key Metrics

Oct -16

Source: zacks.com

Independent Bank Corp. (INDB) Q3 Earnings and Revenues Top Estimates

Oct -16

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.00%)

6. Segments

Community Banking

Expected Growth: 1.0%

Independent Bank Corp.'s Community Banking segment growth of 1.0 is driven by strategic branch expansion, increased commercial lending, and a focus on customer relationships. Additionally, investments in digital banking platforms and targeted marketing initiatives have contributed to the segment's growth.

7. Detailed Products

Personal Banking

Independent Bank Corp. offers a range of personal banking services, including checking and savings accounts, credit cards, loans, and investment products.

Business Banking

Independent Bank Corp. provides business banking services, including commercial loans, cash management, and treasury management solutions.

Mortgage Lending

Independent Bank Corp. offers a range of mortgage loan options, including fixed-rate and adjustable-rate mortgages, refinancing, and home equity loans.

Wealth Management

Independent Bank Corp. provides wealth management services, including investment advice, portfolio management, and retirement planning.

Insurance Services

Independent Bank Corp. offers insurance products, including life insurance, disability insurance, and long-term care insurance.

Online Banking

Independent Bank Corp. provides online banking services, including account access, bill pay, and fund transfer.

Mobile Banking

Independent Bank Corp. offers mobile banking services, including mobile deposit, account access, and bill pay.

8. Independent Bank Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Independent Bank Corp. operates in a highly competitive industry, and customers have various alternatives to choose from. However, the bank's strong brand reputation and customer loyalty programs help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Independent Bank Corp. has a large customer base, and customers have significant bargaining power due to the availability of alternative banking services. The bank needs to focus on customer retention and satisfaction to maintain its market share.

Bargaining Power Of Suppliers

Independent Bank Corp. has a diversified supplier base, and suppliers have limited bargaining power. The bank has a strong negotiating position, which enables it to secure favorable terms and conditions.

Threat Of New Entrants

The banking industry has significant barriers to entry, including regulatory hurdles and high capital requirements. Independent Bank Corp. has a strong market position, and new entrants are unlikely to pose a significant threat in the short term.

Intensity Of Rivalry

The banking industry is highly competitive, and Independent Bank Corp. operates in a crowded market. The bank needs to focus on differentiating itself through innovative products and services to maintain its market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	29.86%
Debt Cost	8.18%
Equity Weight	70.14%
Equity Cost	8.18%
WACC	8.18%
Leverage	42.56%

11. Quality Control: Independent Bank Corp. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Bar Harbor Bank

A-Score: 6.3/10

Value: 5.5

Growth: 5.9

Quality: 6.4

Yield: 8.0

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

Ohio Valley Banc

A-Score: 6.3/10

Value: 4.4

Growth: 4.7

Quality: 6.8

Yield: 6.0

Momentum: 9.5

Volatility: 6.3

1-Year Total Return ->

Independent Bank

A-Score: 6.0/10

Value: 4.5

Growth: 4.9

Quality: 6.8

Yield: 6.0

Momentum: 7.0

Volatility: 6.7

1-Year Total Return ->

First Mid Bancshares

A-Score: 6.0/10

Value: 6.8

Growth: 5.8

Quality: 5.2

Yield: 6.0

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

Orange County Bancorp

A-Score: 5.3/10

Value: 6.5

Growth: 6.3

Quality: 7.1

Yield: 4.0

Momentum: 2.5

Volatility: 5.3

1-Year Total Return ->

Primis Financial

A-Score: 5.0/10

Value: 5.0

Growth: 3.9

Quality: 4.3

Yield: 8.0

Momentum: 2.5

Volatility: 6.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

2.51%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.18%

Independent Bank Corp. - US4538361084

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on INDB

1.c. Company Highlights

Average Yield

Average Quality

Stable Momentum

Earnings Miss

Revenues Beats

Earnings Beats

Weak Momentum

Medium Volatility

Revenues Miss

Fairly Valued

Average Growth

2. Strong Q3 Earnings with Integration Success

Business Segment Performance

Guidance and Outlook

Valuation and Capital Position

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.00%)

6. Segments

Community Banking

Expected Growth: 1.0%

7. Detailed Products

Personal Banking

Business Banking

Mortgage Lending

Wealth Management

Insurance Services

Online Banking

Mobile Banking

8. Independent Bank Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Independent Bank Corp. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

73.64$

Current Price

73.64$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA