NasdaqGS:IBCP

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with proven 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


Market Performance


7 Day Return

12.2%

NasdaqGS:IBCP

6.7%

US Banks

1.3%

US Market


1 Year Return

-11.8%

NasdaqGS:IBCP

-3.7%

US Banks

2.0%

US Market

IBCP underperformed the Banks industry which returned -3.7% over the past year.

IBCP underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

IBCPIndustryMarket
7 Day12.2%6.7%1.3%
30 Day7.6%9.9%3.9%
90 Day-1.1%7.1%3.4%
1 Year-8.9%-11.8%-1.0%-3.7%4.2%2.0%
3 Year41.8%31.4%57.4%46.6%47.2%37.6%
5 Year92.2%71.1%62.8%45.1%60.5%42.9%

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 based on future cash flows and its price relative to the stock market?

39%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

Independent Bank is good value 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

Independent Bank is poor value based on expected growth next year.


Price Based on Value of Assets

Independent Bank is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

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

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Independent Bank's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Independent Bank's earnings are expected to grow by 8% yearly, however this is not considered high growth (20% yearly).

Independent Bank's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Independent Bank's earnings growth is positive but not above the United States of America market average.

Independent Bank's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Independent Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Independent Bank performed over the past 5 years?

15.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Independent Bank's year on year earnings growth rate has been positive over the past 5 years.

Independent Bank's 1-year earnings growth exceeds its 5-year average (58.1% vs 15.3%)

Independent Bank's earnings growth has exceeded the US Banks industry average in the past year (58.1% vs 31.7%).


Return on Equity

Independent Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Independent Bank used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

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.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

Independent Bank has an acceptable proportion of non-loan assets held.

Independent Bank has a sufficient allowance for bad loans.

Independent Bank's liabilities are made up of primarily low risk sources of funding.

Independent Bank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at Independent Bank are broadly funded by customer deposits.

Independent Bank has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

3.50%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Independent Bank's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Independent Bank's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

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

Dividends paid are well covered by earnings (2.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).


Next Steps

Management

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

12.0yrs

Average management tenure


CEO

Brad Kessel (55yo)

6.7yrs

Tenure

US$1,103,298

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

Brad's remuneration is lower than average for companies of similar size in United States of America.

Brad's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

12.0yrs

Average Tenure

59.5yo

Average Age

The average tenure for the Independent Bank management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.9yrs

Average Tenure

58.5yo

Average Age

The tenure for the Independent Bank board of directors is about average.


Insider Trading

More shares have been bought than sold by Independent Bank individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUS$19,56506 Sep 19
Patrick Ervin
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Mortgage Banking
Shares1,000
Max PriceUS$19.56
SellUS$14,520,00022 May 19
PL Capital Advisors, LLC
EntityCompany
Shares660,000
Max PriceUS$22.00
SellUS$122,19326 Feb 19
Robert Shuster
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares5,255
Max PriceUS$23.25
BuyUS$89,42210 Dec 18
Michael Magee
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares3,892
Max PriceUS$23.00
BuyUS$21,89930 Oct 18
Patrick Ervin
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Mortgage Banking
Shares1,000
Max PriceUS$21.90

Ownership Breakdown


Management Team

  • David Reglin (60yo)

    Executive Vice President of Retail Banking

    • Tenure: 12yrs
    • Compensation: US$158.40k
  • Rob Shuster (61yo)

    Executive VP

    • Tenure: 18.7yrs
    • Compensation: US$560.04k
  • Peter Graves (62yo)

    Chief Information Officer & Senior VP of Commercial Loans

    • Tenure: 20.7yrs
  • Brad Kessel (55yo)

    President

    • Tenure: 6.7yrs
    • Compensation: US$1.10m
  • Laurinda Neve (67yo)

    Senior Vice President of Human Resources

    • Tenure: 0yrs
  • Charles Schadler (70yo)

    Senior Vice President of Corporate Auditor

    • Tenure: 14.7yrs
  • Stefanie Kimball (59yo)

    Executive VP & Chief Risk Officer

    • Tenure: 12.4yrs
    • Compensation: US$543.61k
  • Pat Ervin (53yo)

    Executive Vice President of Mortgage Banking

    • Tenure: 3.1yrs
    • Compensation: US$550.49k
  • Jim Mack (57yo)

    Executive VP & Chief Lending Officer

    • Tenure: 7.2yrs
    • Compensation: US$534.88k
  • Larry Daniel (55yo)

    Executive Vice President of Operations & Digital Banking

    • Tenure: 1.8yrs

Board Members

  • Mike Magee (63yo)

    Chairman of the Board

    • Tenure: 8.4yrs
    • Compensation: US$72.00k
  • Stephen Gulis (62yo)

    Director

    • Tenure: 14.8yrs
    • Compensation: US$65.00k
  • Matt Missad (58yo)

    Director

    • Tenure: 4.9yrs
    • Compensation: US$57.00k
  • Terry Haske (71yo)

    Director

    • Tenure: 23.7yrs
    • Compensation: US$57.00k
  • Bill Boer (64yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$63.00k
  • Brad Kessel (55yo)

    President

    • Tenure: 6.7yrs
    • Compensation: US$1.10m
  • Joan Budden (57yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: US$63.00k
  • Terry Beia (59yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$42.75k
  • Christina Keller (37yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$57.00k
  • Mike Cok (57yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$57.00k

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$484.414m
  • Shares outstanding: 22.50m
  • 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 in Michigan. The company offers checking and savings a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 23:38
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.