NasdaqGS:IBCP

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Independent Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IBCP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: IBCP's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

5.8%

IBCP

5.7%

US Banks

2.1%

US Market


1 Year Return

-19.5%

IBCP

-17.0%

US Banks

19.8%

US Market

Return vs Industry: IBCP underperformed the US Banks industry which returned -17% over the past year.

Return vs Market: IBCP underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

IBCPIndustryMarket
7 Day5.8%5.7%2.1%
30 Day24.0%23.3%8.1%
90 Day21.8%18.5%6.0%
1 Year-15.4%-19.5%-14.0%-17.0%22.5%19.8%
3 Year-9.8%-19.1%-3.3%-11.4%46.5%36.8%
5 Year37.6%18.5%40.4%22.9%96.9%75.3%

Long-Term Price Volatility Vs. Market

How volatile is Independent Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Independent Bank undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IBCP ($18.12) is trading below our estimate of fair value ($39.54)

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


Price To Earnings Ratio

PE vs Industry: IBCP is good value based on its PE Ratio (7.6x) compared to the US Banks industry average (11.5x).

PE vs Market: IBCP is good value based on its PE Ratio (7.6x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: IBCP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: IBCP is overvalued based on its PB Ratio (1.1x) compared to the US Banks industry average (0.9x).


Next Steps

Future Growth

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

-14.3%

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 (-14.3% per year).

Earnings vs Market: IBCP's earnings are forecast to decline over the next 3 years (-14.3% 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 (-5.9% per year).

High Growth Revenue: IBCP's revenue is forecast to decline over the next 3 years (-5.9% 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 (10%).


Next Steps

Past Performance

How has Independent Bank performed over the past 5 years?

21.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IBCP has high quality earnings.

Growing Profit Margin: IBCP's current net profit margins (28.7%) are higher than last year (26.2%).


Past Earnings Growth Analysis

Earnings Trend: IBCP's earnings have grown significantly by 21.3% per year over the past 5 years.

Accelerating Growth: IBCP's earnings growth over the past year (24.7%) exceeds its 5-year average (21.3% per year).

Earnings vs Industry: IBCP earnings growth over the past year (24.7%) exceeded the Banks industry -4.3%.


Return on Equity

High ROE: IBCP's Return on Equity (14.2%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: IBCP's Assets to Equity ratio (11.2x) is moderate.

Allowance for Bad Loans: IBCP has a sufficient allowance for bad loans (349%).

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 (68%).

Low Risk Deposits: IBCP's Loans to Deposits ratio (78%) is appropriate.

Level of Bad Loans: IBCP has an appropriate level of bad loans (0.4%).


Next Steps

Dividend

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

4.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IBCP's dividend (4.42%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: IBCP's dividend (4.42%) is in the top 25% of dividend payers in the US market (4.05%)


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.5%), 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 (46% payout ratio).


Next Steps

Management

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

13.2yrs

Average management tenure


CEO

Brad Kessel (56 yo)

7.83yrs

Tenure

US$1,100,995

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 ($USD1.10M) is below average for companies of similar size in the US market ($USD1.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Kessel
President7.83yrsUS$1.10m0.58%
$ 2.3m
Stefanie Kimball
Executive VP & Chief Risk Officer13.58yrsUS$538.15k0.29%
$ 1.2m
Patrick Ervin
Executive Vice President of Mortgage Banking4.25yrsUS$502.38k0.083%
$ 330.6k
Gavin Mohr
CFO, Executive VP0.17yrno data0.014%
$ 54.4k
Larry Daniel
Executive Vice President of Operations & Digital Banking3yrsno data0.079%
$ 313.1k
Peter Graves
Chief Information Officer & Senior VP of Commercial Loans21.83yrsno datano data
Laurinda Neve
Senior Vice President of Human Resourcesno datano datano data
David Reglin
Executive Vice President of Retail Banking13.17yrsUS$462.45kno data
Charles Schadler
Senior Vice President of Corporate Auditor15.83yrsno datano data
James Twarozynski
Senior VP & Controllerno datano data0.045%
$ 177.2k
Scott Petersen
VP & Assistant Corporate Auditor15.25yrsno datano data
Keith Lightbody
Senior Officer of Independent Bankno datano datano data

13.2yrs

Average Tenure

60yo

Average Age

Experienced Management: IBCP's management team is seasoned and experienced (13.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Kessel
President7.83yrsUS$1.10m0.58%
$ 2.3m
Michael Magee
Independent Chairman of the Board9.58yrsUS$81.75k0.17%
$ 672.5k
Stephen Gulis
Independent Director16yrsUS$67.25kno data
Matthew Missad
Independent Director6.08yrsUS$59.25k0.036%
$ 141.8k
William Boer
Lead Independent Directorno dataUS$65.25k0.16%
$ 648.7k
Joan Budden
Independent Director5.33yrsUS$65.25k0.031%
$ 121.8k
Terance Beia
Independent Director2.58yrsUS$59.25k0.17%
$ 657.6k
Christina Keller
Independent Director3.92yrsUS$59.25k0.048%
$ 191.3k
Ronia Kruse
Independent Director1.08yrsUS$15.00kno data
Dennis Archer
Director0.083yrno datano data
Michael Cok
Independent Director3.42yrsUS$59.25kno data

4.6yrs

Average Tenure

58.5yo

Average Age

Experienced Board: IBCP's board of directors are considered experienced (4.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Independent Bank Corporation
  • Ticker: IBCP
  • Exchange: NasdaqGS
  • Founded: 1864
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$396.547m
  • Shares outstanding: 21.88m
  • 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

Biography

Independent Bank Corporation operates as the holding company for Independent Bank that provides various banking services to individuals and businesses. The company offers checking and savings accounts, com...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 23:46
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.