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IBCP

Independent Bank NasdaqGS:IBCP Stock Report

Last Price

US$19.67

Market Cap

US$414.2m

7D

-1.6%

1Y

-7.0%

Updated

23 Sep, 2022

Data

Company Financials +
IBCP fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends4/6

IBCP Stock Overview

Independent Bank Corporation operates as the bank holding company for Independent Bank that provides various banking services to individuals and businesses.

Independent Bank Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Independent Bank
Historical stock prices
Current Share PriceUS$19.67
52 Week HighUS$26.00
52 Week LowUS$17.87
Beta0.95
1 Month Change-6.73%
3 Month Change3.85%
1 Year Change-7.04%
3 Year Change-7.70%
5 Year Change-13.16%
Change since IPO39.94%

Recent News & Updates

Jul 26

Independent Bank GAAP EPS of $0.61 beats by $0.06, revenue of $50.69M

Independent Bank press release (NASDAQ:IBCP): Q2 GAAP EPS of $0.61 beats by $0.06. Revenue of $50.69M (+9.8% Y/Y).

Jul 19

Independent Bank declares $0.22 dividend

Independent Bank (NASDAQ:IBCP) declares $0.22/share quarterly dividend, in line with previous. Forward yield 4.42% Payable Aug. 16; for shareholders of record Aug. 5; ex-div Aug. 4. See IBCP Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

IBCPUS BanksUS Market
7D-1.6%-5.8%-5.2%
1Y-7.0%-21.7%-23.1%

Return vs Industry: IBCP exceeded the US Banks industry which returned -19.4% over the past year.

Return vs Market: IBCP exceeded the US Market which returned -21.6% over the past year.

Price Volatility

Is IBCP's price volatile compared to industry and market?
IBCP volatility
IBCP Average Weekly Movement3.2%
Banks Industry Average Movement3.4%
Market Average Movement6.9%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.8%

Stable Share Price: IBCP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: IBCP's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1864926Brad Kesselhttps://www.independentbank.com

Independent Bank Corporation operates as the bank holding company for Independent Bank that provides various banking services to individuals and businesses. 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 machine, and Internet and mobile banking services. It also provides title insurance, insurance brokerage, and investment services.

Independent Bank Fundamentals Summary

How do Independent Bank's earnings and revenue compare to its market cap?
IBCP fundamental statistics
Market CapUS$414.17m
Earnings (TTM)US$59.44m
Revenue (TTM)US$205.42m

7.0x

P/E Ratio

1.3x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IBCP income statement (TTM)
RevenueUS$205.42m
Cost of RevenueUS$0
Gross ProfitUS$205.42m
Other ExpensesUS$145.98m
EarningsUS$59.44m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.82
Gross Margin100.00%
Net Profit Margin28.94%
Debt/Equity Ratio36.1%

How did IBCP perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

31%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is IBCP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IBCP?

Other financial metrics that can be useful for relative valuation.

IBCP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio-2.4x

Price to Earnings Ratio vs Peers

How does IBCP's PE Ratio compare to its peers?

IBCP PE Ratio vs Peers
The above table shows the PE ratio for IBCP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.9x
RBB RBB Bancorp
6.5x3.3%US$398.7m
GNTY Guaranty Bancshares
10.3x-2.4%US$412.0m
BHB Bar Harbor Bankshares
10.2x12.4%US$413.3m
WBHC Wilson Bank Holding
8.7xn/aUS$458.3m
IBCP Independent Bank
7x-2.9%US$414.2m

Price-To-Earnings vs Peers: IBCP is good value based on its Price-To-Earnings Ratio (7x) compared to the peer average (8.9x).


Price to Earnings Ratio vs Industry

How does IBCP's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: IBCP is good value based on its Price-To-Earnings Ratio (7x) compared to the US Banks industry average (9.8x)


Price to Earnings Ratio vs Fair Ratio

What is IBCP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IBCP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7x
Fair PE Ratio10.2x

Price-To-Earnings vs Fair Ratio: IBCP is good value based on its Price-To-Earnings Ratio (7x) compared to the estimated Fair Price-To-Earnings Ratio (10.2x).


Share Price vs Fair Value

What is the Fair Price of IBCP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IBCP ($19.67) is trading below our estimate of fair value ($67.62)

Significantly Below Fair Value: IBCP is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Future Growth

How is Independent Bank forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-2.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IBCP's earnings are forecast to decline over the next 3 years (-2.9% per year).

Earnings vs Market: IBCP's earnings are forecast to decline over the next 3 years (-2.9% per year).

High Growth Earnings: IBCP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: IBCP's revenue is expected to decline over the next 3 years (-3.7% per year).

High Growth Revenue: IBCP's revenue is forecast to decline over the next 3 years (-3.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IBCP's Return on Equity is forecast to be low in 3 years time (15.3%).


Discover growth companies

Past Performance

How has Independent Bank performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


21.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IBCP has high quality earnings.

Growing Profit Margin: IBCP's current net profit margins (28.9%) are lower than last year (32.8%).


Past Earnings Growth Analysis

Earnings Trend: IBCP's earnings have grown significantly by 21.7% per year over the past 5 years.

Accelerating Growth: IBCP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IBCP had negative earnings growth (-16.3%) over the past year, making it difficult to compare to the Banks industry average (8.6%).


Return on Equity

High ROE: IBCP's Return on Equity (17.9%) is considered low.


Discover strong past performing companies

Financial Health

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

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: IBCP's Assets to Equity ratio (14.6x) is moderate.

Allowance for Bad Loans: IBCP has a sufficient allowance for bad loans (1064%).

Low Risk Liabilities: 95% of IBCP's liabilities are made up of primarily low risk sources of funding.

Loan Level: IBCP has an appropriate level of Loans to Assets ratio (67%).

Low Risk Deposits: IBCP's Loans to Deposits ratio (75%) is appropriate.

Level of Bad Loans: IBCP has an appropriate level of bad loans (0.1%).


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.47%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: IBCP's dividend (4.47%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: IBCP's dividend (4.47%) is in the top 25% of dividend payers in the US market (4.45%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, IBCP has been paying a dividend for less than 10 years.

Growing Dividend: IBCP's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (30.8%), IBCP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IBCP's dividends in 3 years are forecast to be well covered by earnings (34.9% payout ratio).


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

8.3yrs

Average management tenure


CEO

Brad Kessel (58 yo)

11.42yrs

Tenure

US$1,340,891

Compensation

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 P...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD1.34M) is below average for companies of similar size in the US market ($USD2.80M).

Compensation vs Earnings: Brad's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: IBCP's management team is seasoned and experienced (8.3 years average tenure).


Board Members

Experienced Board: IBCP's board of directors are considered experienced (7.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: IBCP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NasdaqGS:IBCP Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
22 Aug 22BuyUS$42,609Gavin MohrIndividual2,000US$21.31
17 May 22SellUS$43,499Stefanie KimballIndividual2,239US$19.53
28 Apr 22BuyUS$40,327Dennis ArcherIndividual2,000US$20.16

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 64.5% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
14.37%
BlackRock, Inc.
3,026,490$59.5m10.81%no data
6.32%
FJ Capital Management, LLC
1,331,000$26.2m-11.19%2.5%
5.02%
The Vanguard Group, Inc.
1,057,866$20.8m-0.85%no data
3.71%
Dimensional Fund Advisors LP
781,471$15.4m10.8%no data
3.32%
LSV Asset Management
698,270$13.7m-1.06%0.03%
3.26%
Renaissance Technologies LLC
685,600$13.5m-9.69%0.02%
2.94%
State Street Global Advisors, Inc.
619,547$12.2m-15.09%no data
2.58%
FMR LLC
542,768$10.7m0.06%no data
2.47%
Manulife Asset Management
519,294$10.2m-1.41%0.01%
2.31%
J.P. Morgan Asset Management, Inc.
485,516$9.6m0.36%no data
1.81%
Geode Capital Management, LLC
381,614$7.5m1.49%no data
1.71%
PL Capital Advisors, LLC
359,985$7.1m0%1.89%
1.65%
Hotchkis and Wiley Capital Management, LLC
346,850$6.8m6.06%0.03%
1.4%
Thrivent Investment Management, Inc.
295,702$5.8m6.15%0.02%
1.37%
Columbia Management Investment Advisers, LLC
288,013$5.7m0.33%no data
1.26%
Allspring Global Investments, LLC
265,097$5.2m-3.84%0.01%
1.24%
Principal Global Investors, LLC
260,218$5.1m-16.25%no data
1.11%
Northern Trust Global Investments
234,630$4.6m-2.28%no data
1.08%
Acadian Asset Management LLC
227,306$4.5m-3.79%0.02%
1.04%
Foundry Partners, LLC
218,880$4.3m0%0.27%
0.96%
Goldman Sachs Asset Management, L.P.
202,608$4.0m56.6%no data
0.95%
Bank of America Corporation, Asset Management Arm
199,751$3.9m-0.15%no data
0.9%
Seizert Capital Partners, LLC
189,998$3.7m-0.13%0.21%
0.89%
Peregrine Capital Management, LLC
187,505$3.7m0%0.1%
0.83%
BNY Mellon Asset Management
174,086$3.4m-5.09%no data

Company Information

Independent Bank Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Independent Bank Corporation
  • Ticker: IBCP
  • Exchange: NasdaqGS
  • Founded: 1864
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$414.167m
  • Shares outstanding: 21.06m
  • Website: https://www.independentbank.com

Number of Employees


Location

  • Independent Bank Corporation
  • 4200 East Beltline
  • Grand Rapids
  • Michigan
  • 49525
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IBCPNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 1985

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/23 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.