Independent Bank (INDB, Financial) reported an increase in financial performance for the second quarter of 2025. The company achieved a return on average assets of 1.04% and a return on average common equity of 6.68%, both higher than the previous quarter's figures of 0.93% and 5.94%, respectively. On an operational level, the return on average assets was 1.09%, and the return on average common equity reached 6.99%, up from 0.94% and 6.05% in the prior quarter.
The CEO, Jeffrey Tengel, expressed satisfaction with these results and the company's trajectory moving into the third quarter. Notably, Independent Bank successfully completed the acquisition of Enterprise Bancorp and integrated new team members at Rockland Trust at the beginning of the third quarter. The company is now concentrating on finalizing the core operational transition by October 2025.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Independent Bank Corp (INDB, Financial) is $74.75 with a high estimate of $81.00 and a low estimate of $68.00. The average target implies an upside of 13.79% from the current price of $65.69. More detailed estimate data can be found on the Independent Bank Corp (INDB) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Independent Bank Corp's (INDB, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Independent Bank Corp (INDB, Financial) in one year is $84.86, suggesting a upside of 29.18% from the current price of $65.69. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Independent Bank Corp (INDB) Summary page.
INDB Key Business Developments
Release Date: April 17, 2025
- GAAP Net Income: $44.4 million for Q1 2025.
- Diluted Earnings Per Share (EPS): $1.04.
- Return on Assets (ROA): 0.93%.
- Return on Average Common Equity: 5.94%.
- Return on Average Tangible Common Equity: 8.85%.
- Adjusted Operating Net Income: $45.3 million, excluding $1.2 million of merger and acquisition expenses.
- Adjusted Diluted EPS: $1.06.
- Adjusted ROA: 0.94%.
- Adjusted Return on Average Common Equity: 6.05%.
- Adjusted Return on Average Tangible Common Equity: 9.01%.
- Tangible Book Value Per Share: Increased by $0.85 during the quarter.
- Deposit Growth: Period-end balances increased by $370 million or 2.4% for the quarter.
- Cost of Deposits: 1.56% for Q1 2025.
- Net Interest Margin (NIM): Improved 9 basis points to 3.42%.
- Core Net Interest Margin: 3.37%, up 6 basis points.
- Provision for Loan Loss: $15 million for Q1 2025.
- Allowance for Loan Losses: 99 basis points of total loans at quarter end.
- Noninterest Income: Increased modestly in Q1 2025.
- Investment Management Revenues: Increased 4% from Q4 2024 and nearly 13% from Q1 2024.
- Assets Under Administration (AUA): Grew nearly 1% to $7 billion in Q1 2025.
- Loan Portfolio: Total loans stayed relatively flat; C&I balances increased by 2%.
- Commercial Real Estate (CRE) and Construction Loans: Decreased by 1.2%.
- Subordinated Debt Raise: $300 million in March 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Independent Bank Corp (INDB, Financial) reported solid pre-provision net revenue growth driven by net interest margin improvement and well-controlled expenses.
- The company's tangible book value improved by 1.8% from the fourth quarter and 7.8% from the previous year.
- C&I and small business loans increased by 2.1% and 2.6% respectively, reflecting a strategic shift towards these areas.
- The Wealth Management business grew its assets under administration by nearly 1% in the first quarter, with positive returns despite market volatility.
- Independent Bank Corp (INDB) was named a top place to work in Massachusetts for the 16th consecutive year and received high customer satisfaction rankings.
Negative Points
- Credit costs were elevated due to the resolution of several problem loans, impacting overall financial performance.
- The largest non-performing loan resolution was delayed to the second quarter, affecting credit quality metrics.
- Economic uncertainty due to tariffs and potential federal government actions has caused clients to pause expansion plans.
- The company experienced technical difficulties during the earnings call, which may have impacted the clarity of communication.
- Loan growth expectations were adjusted to low single-digit percentages due to a reduction in commercial real estate and mixed line utilization in C&I.
