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.



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

Stable Share Price: IBCP has not had significant price volatility in the past 3 months.

Market Performance

7 Day Return




US Banks


US Market

1 Year Return




US Banks


US Market

Return vs Industry: IBCP underperformed the US Banks industry which returned 9.2% over the past year.

Return vs Market: IBCP underperformed the US Market which returned 15.5% over the past year.

Shareholder returns

7 Day-0.6%-0.4%0.9%
30 Day5.4%6.7%4.7%
90 Day13.6%17.4%6.6%
1 Year1.6%-1.7%12.4%9.2%18.1%15.5%
3 Year29.6%19.8%39.2%29.5%48.0%38.5%
5 Year107.2%84.0%71.5%52.5%62.1%44.2%

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


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


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: IBCP ($22.41) is trading below our estimate of fair value ($22.93)

Significantly Below Fair Value: IBCP is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: IBCP is good value based on its PE Ratio (12.3x) compared to the Banks industry average (12.6x).

PE vs Market: IBCP is good value based on its PE Ratio (12.3x) compared to the US market (18.2x).

Price to Earnings Growth Ratio

PEG Ratio: IBCP is poor value based on its PEG Ratio (5.8x)

Price to Book Ratio

PB vs Industry: IBCP is overvalued based on its PB Ratio (1.5x) compared to the US Banks industry average (1.2x).

Next Steps

Future Growth

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


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: IBCP's forecast earnings growth (2.1% per year) is below the savings rate (2.7%).

Earnings vs Market: IBCP's earnings (2.1% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: IBCP's earnings are forecast to grow, but not significantly.

Revenue vs Market: IBCP's revenue (0.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: IBCP's revenue (0.1% per year) is forecast to grow slower than 20% 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 (12.5%).

Next Steps

Past Performance

How has Independent Bank performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IBCP has a high level of non-cash earnings.

Growing Profit Margin: IBCP's current net profit margins (26.2%) are higher than last year (20.8%).

Past Earnings Growth Analysis

Earnings Trend: IBCP's earnings have grown by 18.3% per year over the past 5 years.

Accelerating Growth: IBCP's earnings growth over the past year (34.4%) exceeds its 5-year average (18.3% per year).

Earnings vs Industry: IBCP earnings growth over the past year (34.4%) exceeded the Banks industry 27.5%.

Return on Equity

High ROE: IBCP's Return on Equity (12.5%) is considered low.

Return on Assets

Return on Capital Employed

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

Inventory Level: IBCP has a low level of unsold assets or inventory.

Debt Coverage by Assets: IBCP's debt is covered by short term assets (assets are 2.1x debt).

Financial Institutions Analysis

Asset Level: IBCP's level of assets compared to its equity is moderate.

Allowance for Bad Loans: IBCP has a sufficient allowance for bad loans.

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

Loan Level: IBCP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: IBCP's loans are broadly funded by customer deposits.

Level of Bad Loans: IBCP has an appropriate level of bad loans (0.24%)

Next Steps


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


Current Dividend Yield

Dividend Yield vs Market


Current dividend yield vs market & industry

Notable Dividend: IBCP's dividend (3.21%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: IBCP's dividend (3.21%) is low compared to the top 25% of dividend payers in the US market (3.65%).

Stability and Growth of Payments

Stable Dividend: IBCP's dividend payments have been volatile in the past 10 years.

Growing Dividend: IBCP's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.8%), 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 (40.9% payout ratio).

Next Steps

  • Explore strong dividend paying companies in the Banks industry.


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


Average management tenure


Brad Kessel (55yo)





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 ($USD1.10M) is below average for companies of similar size in the US market ($USD1.73M).

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

Management Age and Tenure


Average Tenure


Average Age

Experienced Management: IBCP's management team is seasoned and experienced (12.2 years average tenure).

Board Age and Tenure


Average Tenure


Average Age

Experienced Board: IBCP's board of directors are considered experienced (4.3 years average tenure).

Insider Trading

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

Recent Insider Transactions

BuyUS$19,56506 Sep 19
Patrick Ervin
Senior Key Executive
Executive Vice President of Mortgage Banking
Max PriceUS$19.56
SellUS$14,520,00022 May 19
PL Capital Advisors, LLC
Max PriceUS$22.00
SellUS$122,19326 Feb 19
Robert Shuster
Chief Financial Officer
Executive VP
Max PriceUS$23.25
BuyUS$89,42210 Dec 18
Michael Magee
Chairman of the Board
Chairman of the Board
Max PriceUS$23.00

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.

Management Team

  • David Reglin (60yo)

    Executive Vice President of Retail Banking

    • Tenure: 12.2yrs
    • Compensation: US$462.45k
  • Rob Shuster (61yo)

    Executive VP

    • Tenure: 18.8yrs
    • Compensation: US$560.04k
  • Peter Graves (62yo)

    Chief Information Officer & Senior VP of Commercial Loans

    • Tenure: 20.8yrs
  • Brad Kessel (55yo)


    • Tenure: 6.8yrs
    • 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: 14.8yrs
  • Stefanie Kimball (59yo)

    Executive VP & Chief Risk Officer

    • Tenure: 12.6yrs
    • Compensation: US$543.61k
  • Pat Ervin (53yo)

    Executive Vice President of Mortgage Banking

    • Tenure: 3.3yrs
    • Compensation: US$550.49k
  • Jim Mack (57yo)

    Executive VP & Chief Lending Officer

    • Tenure: 7.3yrs
    • Compensation: US$534.88k
  • Larry Daniel (55yo)

    Executive Vice President of Operations & Digital Banking

    • Tenure: 2yrs

Board Members

  • Mike Magee (63yo)

    Chairman of the Board

    • Tenure: 8.6yrs
    • Compensation: US$72.00k
  • Stephen Gulis (62yo)

    Independent Director

    • Tenure: 15yrs
    • Compensation: US$65.00k
  • Matt Missad (58yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$57.00k
  • Bill Boer (64yo)

    Lead Director

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


    • Tenure: 6.8yrs
    • Compensation: US$1.10m
  • Joan Budden (57yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$63.00k
  • Terry Beia (59yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$42.75k
  • Christina Keller (37yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$57.00k
  • Ronia Kruse


    • Tenure: 0.08yrs
  • Mike Cok (57yo)

    Independent Director

    • Tenure: 2.4yrs
    • 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$503.810m
  • Shares outstanding: 22.48m
  • Website:

Number of Employees


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


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


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 Analysis2019/11/18 23:39
End of Day Share Price2019/11/18 00:00
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.