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Independent Bank

Nasdaq:IBCP
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IBCP
Nasdaq
$506M
Market Cap
  1. Home
  2. US
  3. Banks
Company description

Independent Bank Corporation operates as the holding company for Independent Bank that provides various banking services to individuals and businesses in Michigan. The last earnings update was 80 days ago. More info.


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IBCP Share Price and Events
7 Day Returns
-0.3%
NasdaqGS:IBCP
-0%
US Banks
-1.2%
US Market
1 Year Returns
-16.7%
NasdaqGS:IBCP
-8%
US Banks
3.3%
US Market
IBCP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Independent Bank (IBCP) -0.3% 0.4% 0.8% -16.7% 44.1% 69.3%
US Banks -0% 2.7% -0.8% -8% 45.6% 46.1%
US Market -1.2% 0.8% 0.9% 3.3% 35.9% 41.7%
1 Year Return vs Industry and Market
  • IBCP underperformed the Banks industry which returned -8% over the past year.
  • IBCP underperformed the Market in United States of America which returned 3.3% over the past year.
Price Volatility
IBCP
Industry
5yr Volatility vs Market

Value

 Is Independent Bank undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Independent Bank to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Independent Bank.

NasdaqGS:IBCP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 5 analysts.
= Stable Book Value * Return on Equity
= $16.20 * 13.2%
$2.14
Book Value of Equity per Share Weighted future Book Value estimates from 4 analysts. $16.20
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:IBCP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.6
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.597 (1 + (1- 21%) (13.32%))
0.772
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NasdaqGS:IBCP using Excess Returns Model Model

The calculations below outline how an intrinsic value for Independent Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:IBCP Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (13.2% – 7.5%) * $16.20)
$0.93
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.93 / (7.5% - 2.73%)
$19.41
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $16.20 + $19.41
$35.61
NasdaqGS:IBCP Discount to Share Price
Calculation Result
Value per share (USD) From above. $35.61
Current discount Discount to share price of $21.54
= -1 x ($21.54 - $35.61) / $35.61
39.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Independent Bank is available for.
Intrinsic value
40%
Share price is $21.54 vs Future cash flow value of $35.61
Current Discount Checks
For Independent Bank to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Independent Bank's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Independent Bank's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Independent Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Independent Bank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:IBCP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.67
NasdaqGS:IBCP Share Price ** NasdaqGS (2019-07-22) in USD $21.54
United States of America Banks Industry PE Ratio Median Figure of 595 Publicly-Listed Banks Companies 12.72x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.86x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Independent Bank.

NasdaqGS:IBCP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:IBCP Share Price ÷ EPS (both in USD)

= 21.54 ÷ 1.67

12.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Independent Bank is overvalued based on earnings compared to the US Banks industry average.
  • Independent Bank is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Independent Bank's expected growth come at a high price?
Raw Data
NasdaqGS:IBCP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.89x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
11.6%per year
United States of America Banks Industry PEG Ratio Median Figure of 271 Publicly-Listed Banks Companies 1.19x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NasdaqGS:IBCP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.89x ÷ 11.6%

1.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Independent Bank is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Independent Bank's assets?
Raw Data
NasdaqGS:IBCP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $14.63
NasdaqGS:IBCP Share Price * NasdaqGS (2019-07-22) in USD $21.54
United States of America Banks Industry PB Ratio Median Figure of 595 Publicly-Listed Banks Companies 1.2x
United States of America Market PB Ratio Median Figure of 5,248 Publicly-Listed Companies 1.79x
NasdaqGS:IBCP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:IBCP Share Price ÷ Book Value per Share (both in USD)

= 21.54 ÷ 14.63

1.47x

* Primary Listing of Independent Bank.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Independent Bank is overvalued based on assets compared to the US Banks industry average.
X
Value checks
We assess Independent Bank's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Independent Bank has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Independent Bank expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Independent Bank expected to grow at an attractive rate?
  • Independent Bank's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Independent Bank's earnings growth is positive but not above the United States of America market average.
  • Independent Bank's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:IBCP Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:IBCP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 11.6%
NasdaqGS:IBCP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts -3.3%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 1.8%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 3.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:IBCP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:IBCP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 134 49 5
2019-12-31 125 44 4
NasdaqGS:IBCP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 161 48 40
2018-12-31 157 45 40
2018-09-30 152 53 32
2018-06-30 143 39 27
2018-03-31 134 42 24
2017-12-31 131 39 20
2017-09-30 127 17 25
2017-06-30 126 22 24
2017-03-31 125 22 25
2016-12-31 122 24 23
2016-09-30 121 17 22
2016-06-30 119 31 21

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Independent Bank's earnings are expected to grow by 11.6% yearly, however this is not considered high growth (20% yearly).
  • Independent Bank's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:IBCP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Independent Bank Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:IBCP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 2.10 2.13 2.07 6.00
2019-12-31 1.88 1.90 1.86 5.00
NasdaqGS:IBCP Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.67
2018-12-31 1.70
2018-09-30 1.39
2018-06-30 1.20
2018-03-31 1.11
2017-12-31 0.96
2017-09-30 1.16
2017-06-30 1.13
2017-03-31 1.16
2016-12-31 1.06
2016-09-30 1.04
2016-06-30 0.96

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Independent Bank will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Independent Bank's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Independent Bank has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Independent Bank performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Independent Bank's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Independent Bank's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Independent Bank's 1-year earnings growth exceeds its 5-year average (69.3% vs -0.3%)
  • Independent Bank's earnings growth has exceeded the US Banks industry average in the past year (69.3% vs 37.8%).
Earnings and Revenue History
Independent Bank's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Independent Bank Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:IBCP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 160.80 40.06 92.94
2018-12-31 156.59 39.84 90.17
2018-09-30 151.93 31.61 87.87
2018-06-30 142.98 26.55 84.63
2018-03-31 133.69 23.66 81.45
2017-12-31 130.52 20.48 81.20
2017-09-30 127.23 24.62 80.21
2017-06-30 125.86 24.13 79.61
2017-03-31 124.89 24.64 78.08
2016-12-31 122.28 22.77 76.21
2016-09-30 121.45 22.48 76.44
2016-06-30 119.08 21.16 75.63
2016-03-31 117.28 20.34 75.95
2015-12-31 116.14 20.02 75.48
2015-09-30 114.70 18.35 75.23
2015-06-30 114.64 18.23 74.88
2015-03-31 116.98 18.66 74.79
2014-12-31 115.59 18.02 74.89
2014-09-30 114.65 18.93 74.95
2014-06-30 115.53 24.31 76.24
2014-03-31 119.99 80.49 76.76
2013-12-31 123.54 82.06 76.89
2013-09-30 131.02 88.06 79.94
2013-06-30 137.43 83.11 82.05
2013-03-31 136.78 24.12 85.05
2012-12-31 137.07 21.85 87.08
2012-09-30 130.43 1.27 85.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Independent Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Independent Bank used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if Independent Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Independent Bank's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Independent Bank has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Independent Bank's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Independent Bank's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Independent Bank Company Filings, last reported 3 months ago.

NasdaqGS:IBCP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 344.73 67.34 76.82
2018-12-31 338.99 67.41 66.29
2018-09-30 345.20 121.76 61.50
2018-06-30 337.08 82.51 67.50
2018-03-31 267.92 65.47 48.91
2017-12-31 264.93 91.46 55.11
2017-09-30 267.71 112.49 53.41
2017-06-30 262.45 122.21 67.62
2017-03-31 255.48 46.30 77.64
2016-12-31 248.98 45.98 85.05
2016-09-30 250.90 49.60 125.09
2016-06-30 246.92 50.15 73.11
2016-03-31 239.55 49.47 157.61
2015-12-31 251.09 48.14 93.34
2015-09-30 252.98 48.85 120.07
2015-06-30 254.38 48.12 70.45
2015-03-31 253.63 48.70 114.61
2014-12-31 250.37 48.41 70.30
2014-09-30 247.07 67.05 81.41
2014-06-30 242.96 67.66 122.23
2014-03-31 236.59 53.67 149.82
2013-12-31 231.58 57.91 111.17
2013-09-30 226.60 68.12 148.89
2013-06-30 208.84 67.68 151.74
2013-03-31 144.09 70.14 229.96
2012-12-31 134.98 69.12 152.66
2012-09-30 121.53 70.59 463.37
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Independent Bank has an acceptable proportion of non-loan assets held.
  • Independent Bank's liabilities are made up of primarily low risk sources of funding.
  • Loans at Independent Bank are broadly funded by customer deposits.
  • Independent Bank's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Independent Bank has a sufficient allowance for bad loans.
  • Independent Bank has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Independent Bank's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Independent Bank has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Independent Bank's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.34%
Current annual income from Independent Bank dividends. Estimated to be 3.49% next year.
If you bought $2,000 of Independent Bank shares you are expected to receive $67 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Independent Bank's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Independent Bank's dividend is below the markets top 25% of dividend payers in United States of America (3.78%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:IBCP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 480 Stocks 3.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:IBCP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.78 3.00
2019-12-31 0.72 3.00
NasdaqGS:IBCP Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-23 0.720 3.334
2019-01-22 0.720 3.223
2018-10-23 0.600 2.720
2018-07-23 0.600 2.449
2018-04-24 0.600 2.364
2018-01-22 0.600 2.561
2017-10-24 0.480 2.115
2017-07-25 0.400 1.893
2017-04-25 0.400 1.876
2017-04-24 0.400 1.775
2017-03-07 0.400 1.938
2017-01-26 0.400 1.872
2016-11-03 0.400 2.014
2016-10-27 0.400 2.394
2016-07-26 0.320 1.966
2016-04-26 0.320 2.161
2016-01-22 0.320 2.186
2015-10-29 0.320 2.141
2015-07-27 0.240 1.669
2015-04-22 0.240 1.784
2015-01-21 0.240 1.878
2014-10-28 0.240 1.939
2014-07-22 0.240 1.972
2014-04-16 0.240 1.874
2011-08-09 0.000 0.000
2011-08-01 0.000 0.000
2011-05-09 0.000 0.000
2011-05-02 0.000 0.000
2011-03-10 0.000 0.000
2011-02-01 0.000 0.000
2010-11-04 0.000 0.000
2010-08-06 0.000 0.000
2010-08-05 0.000 0.000
2010-05-11 0.000 0.000
2010-05-10 0.000 0.000
2010-04-15 0.000 0.000
2010-04-12 0.000 0.000
2010-04-05 0.000 0.000
2010-03-12 0.000 0.000
2010-02-26 0.000 0.000
2010-02-24 0.000 0.000
2009-09-23 0.400 4.471
2009-06-23 0.400 2.483
2009-03-10 0.400 2.218
2008-12-23 0.400 2.609
2008-09-24 0.400 1.341

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Independent Bank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.7x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Independent Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Independent Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Independent Bank has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Independent Bank's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brad Kessel
COMPENSATION $1,103,298
AGE 55
TENURE AS CEO 6.5 years
CEO Bio

Mr. William Bradford Kessel has been the Chief Executive Officer at Independent Bank Corporation and its subsidiary, Independent Bank Grand Rapids, Michigan since January 1, 2013. Mr. Kessel has been the President of Independent Bank Corporation and Independent Bank Grand Rapids, Michigan since April 1, 2011. He served as the Chief Operating Officer at Independent Bank Corporation and Independent Bank Grand Rapids, Michigan from September 2007 to 2011. He served as an Executive Vice President of Independent Bank Corporation from September 2007 to April 1, 2011 and first elected as its Executive Officer in 2004. He served as an Executive Vice President of Independent Bank Grand Rapids, Michigan from September 2007 to April 1, 2011. He served as President and Chief Executive Officer of Rockland Trust Company since May 2004. He began his career with Independent Bank in 1994 as a Vice President of Finance and for the past eight years he has served as Senior Vice President of Branch Administration for Independent Bank. He served as Vice President of Commercial Loan Services Department of Independent Bank. Prior to being named Senior Vice President in 2002, he served as Vice President and Controller of Independent Bank. He worked with Crowe Chizek and Company for seven years. He serves as Director of Independent Bank Corporation since January 01, 2013. He served as Director of Independent Bank. He has been active in the community, serving in leadership positions with the Ionia County Community Foundation, Ionia County Economic Alliance and Trinity Lutheran Church. He is a Certified Public Accountant. He holds a Bachelor of Science Degree in Accounting from Miami (Ohio) University in 1987 and Master's in Business Administration from Grand Valley State University in 2000.

CEO Compensation
  • Brad's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Brad's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Independent Bank management team in years:

11.8
Average Tenure
59.5
Average Age
  • The average tenure for the Independent Bank management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Brad Kessel

TITLE
President
COMPENSATION
$1M
AGE
55
TENURE
6.5 yrs

Rob Shuster

TITLE
Executive VP
COMPENSATION
$560K
AGE
61
TENURE
18.5 yrs

Stefanie Kimball

TITLE
Executive VP & Chief Risk Officer
COMPENSATION
$544K
AGE
59
TENURE
12.3 yrs

Pat Ervin

TITLE
Executive Vice President of Mortgage Banking
COMPENSATION
$550K
AGE
53
TENURE
2.9 yrs

Jim Mack

TITLE
Executive VP & Chief Lending Officer
COMPENSATION
$535K
AGE
57
TENURE
7 yrs

Larry Daniel

TITLE
Executive Vice President of Operations & Digital Banking
AGE
55
TENURE
1.7 yrs

Peter Graves

TITLE
Chief Information Officer & Senior VP of Commercial Loans
AGE
62
TENURE
20.5 yrs

Laurinda Neve

TITLE
Senior Vice President of Human Resources
AGE
67

David Reglin

TITLE
Executive Vice President of Retail Banking
COMPENSATION
$462K
AGE
60
TENURE
11.8 yrs

Charles Schadler

TITLE
Senior Vice President of Corporate Auditor
AGE
70
TENURE
14.5 yrs
Board of Directors Tenure

Average tenure and age of the Independent Bank board of directors in years:

4.8
Average Tenure
58.5
Average Age
  • The tenure for the Independent Bank board of directors is about average.
Board of Directors

Mike Magee

TITLE
Chairman of the Board
COMPENSATION
$72K
AGE
63
TENURE
8.3 yrs

Brad Kessel

TITLE
President
COMPENSATION
$1M
AGE
55
TENURE
6.5 yrs

Stephen Gulis

TITLE
Director
COMPENSATION
$65K
AGE
62
TENURE
14.7 yrs

Bill Boer

TITLE
Lead Director
COMPENSATION
$63K
AGE
64

Joan Budden

TITLE
Director
COMPENSATION
$63K
AGE
57
TENURE
4 yrs

Terry Haske

TITLE
Director
COMPENSATION
$57K
AGE
71
TENURE
23.5 yrs

Matt Missad

TITLE
Director
COMPENSATION
$57K
AGE
58
TENURE
4.8 yrs

Christina Keller

TITLE
Director
COMPENSATION
$57K
AGE
37
TENURE
2.6 yrs

Mike Cok

TITLE
Director
COMPENSATION
$57K
AGE
57
TENURE
2.1 yrs

Terry Beia

TITLE
Director
COMPENSATION
$43K
AGE
59
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
22. May 19 Sell PL Capital Advisors, LLC Company 20. May 19 20. May 19 -660,000 $22.00 $-14,520,000
26. Feb 19 Sell Robert Shuster Individual 25. Feb 19 25. Feb 19 -5,255 $23.25 $-122,193
10. Dec 18 Buy Michael Magee Individual 30. Nov 18 30. Nov 18 3,892 $23.00 $89,422
30. Oct 18 Buy Patrick Ervin Individual 29. Oct 18 29. Oct 18 1,000 $21.90 $21,899
07. Sep 18 Sell Michael Magee Individual 06. Sep 18 06. Sep 18 -15,000 $24.85 $-371,938
X
Management checks
We assess Independent Bank's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Independent Bank has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Independent Bank (NASDAQ:IBCP) Shareholders Have Enjoyed A 70% Share Price Gain

To wit, the Independent Bank share price has climbed 70% in five years, easily topping the market return of 42% (ignoring dividends). … We note that for Independent Bank the TSR over the last 5 years was 90%, which is better than the share price return mentioned above. … A Different Perspective Investors in Independent Bank had a tough year, with a total loss of 14% (including dividends), against a market gain of about 5.6%.

Simply Wall St -

Read This Before Buying Independent Bank Corporation (NASDAQ:IBCP) For Its Dividend

Dividend paying stocks like Independent Bank Corporation (NASDAQ:IBCP) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. … Conclusion When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. … Independent Bank might not be a bad business, but it doesn't show all of the characteristics we look for in a dividend stock.

Simply Wall St -

I Ran A Stock Scan For Earnings Growth And Independent Bank (NASDAQ:IBCP) Passed With Ease

In contrast to all that, I prefer to spend time on companies like Independent Bank (NASDAQ:IBCP), which has not only revenues, but also profits. … Check out our latest analysis for Independent Bank Independent Bank's Earnings Per Share Are Growing. … For growth investors like me, Independent Bank's raw rate of earnings growth is a beacon in the night.

Simply Wall St -

Is Independent Bank Corporation (NASDAQ:IBCP) Overpaying Its CEO?

Brad Kessel has been the CEO of Independent Bank Corporation (NASDAQ:IBCP) since 2013. … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Brad Kessel's Compensation Compare With Similar Sized Companies?

Simply Wall St -

What Kind Of Shareholders Own Independent Bank Corporation (NASDAQ:IBCP)?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Independent Bank is a smaller company with a market capitalization of US$519m, so it may still be flying under the radar of many institutional investors.

Simply Wall St -

Who Has Been Selling Independent Bank Corporation (NASDAQ:IBCP) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Independent Bank Corporation (NASDAQ:IBCP). … In the last twelve months, the biggest single sale by an insider was when the Chairman of the Board, Michael Magee, sold US$372k worth of shares at a price of US$24.85 per share. … That means that an insider was selling shares at around the current price of US$22.18.

Simply Wall St -

Why Independent Bank Corporation’s (NASDAQ:IBCP) Risk Control Makes It Attractive

As a small-cap bank with a market capitalisation of US$488m, Independent Bank Corporation’s (NASDAQ:IBCP) profit and value are directly affected by economic activity. … Risk associate with repayment is measured by the level of bad debt which is an expense written off Independent Bank’s bottom line. … Today we will analyse Independent Bank’s level of bad debt and liabilities in order to understand the risk involved with investing in the bank.

Simply Wall St -

The Independent Bank (NASDAQ:IBCP) Share Price Has Gained 75% And Shareholders Are Hoping For More

To wit, the Independent Bank share price has climbed 75% in five years, easily topping the market return of 41% (ignoring dividends). … During five years of share price growth, Independent Bank actually saw its EPS drop 22% per year. … In that case, the company may be sacrificing current earnings per share to drive growth.

Simply Wall St -

Can Independent Bank Corporation (NASDAQ:IBCP) Survive The Next Financial Crisis?

As a small-cap bank stock with a market capitalisation of US$549m, Independent Bank Corporation’s (NASDAQ:IBCP) risk and profitability are largely determined by the underlying economic growth of the US regions in which it operates. … Basel III target banking regulations to improve the sector’s ability to absorb shocks resulting from economic stress which may expose financial institutions like Independent Bank to vulnerabilities. … Unpredictable macro events such as political instability could weaken its financial position which is why it is important to understand how well the bank manages its risk levels.

Simply Wall St -

Is Independent Bank Corporation (NASDAQ:IBCP) Expensive For A Reason? A Look At The Intrinsic Value

IBCP operates in the banking industry, which has characteristics that make it unique compared to other sectors. … Understanding these differences is crucial when it comes to putting a value on the bank stock. … The tiered capital structure is common for banks to abide by, in order to ensure they maintain a sufficient level of cash for their customers.

Simply Wall St -

Company Info

Description

Independent Bank Corporation operates as the holding company for Independent Bank that provides various banking services to individuals and businesses in Michigan. The company offers checking and savings accounts, commercial lending, direct and indirect consumer financing, mortgage lending, and safe deposit box services, as well as automatic teller machines, and Internet and mobile banking services. It also provides title insurance, investment, and insurance brokerage services. The company offers its services through approximately 67 branches, 1 drive-thru facility, and 12 loan production offices. Independent Bank Corporation was founded in 1864 and is based in Grand Rapids, Michigan.

Details
Name: Independent Bank Corporation
IBCP
Exchange: NasdaqGS
Founded: 1864
$505,606,567
23,472,914
Website: http://www.independentbank.com
Address: Independent Bank Corporation
4200 East Beltline,
Grand Rapids,
Michigan, 49525,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS IBCP Common Stock Nasdaq Global Select US USD 04. Sep 1985
Number of employees
Current staff
Staff numbers
903
Independent Bank employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 23:37
End of day share price update: 2019/07/22 00:00
Last estimates confirmation: 2019/07/07
Last earnings filing: 2019/05/03
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.