Independent Bank
Market Cap
US$2.4b
Last Updated
2020/02/26 23:40 UTC
Data Sources
Company Financials +
Executive Summary
Independent Bank Corp. operates as the bank holding company for Rockland Trust Company that provides commercial banking products and services to individuals and small-to-medium sized businesses primarily in Massachusetts.
Rewards
Risk Analysis
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: INDB has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-8.3%
INDB
-9.0%
US Banks
-7.6%
US Market
1 Year Return
-16.9%
INDB
1.2%
US Banks
10.2%
US Market
Return vs Industry: INDB underperformed the US Banks industry which returned 2.3% over the past year.
Return vs Market: INDB underperformed the US Market which returned 10.5% over the past year.
Shareholder returns
| INDB | Industry | Market | |
|---|---|---|---|
| 7 Day | -8.3% | -9.0% | -7.6% |
| 30 Day | -5.5% | -6.9% | -4.5% |
| 90 Day | -16.9% | -8.9% | -0.6% |
| 1 Year | -15.0%-16.9% | 4.1%1.2% | 12.5%10.2% |
| 3 Year | 11.8%5.1% | 11.7%3.8% | 37.1%28.3% |
| 5 Year | 91.9%72.5% | 58.4%40.5% | 60.8%43.2% |
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
2 days ago | Simply Wall St
Independent Bank (NASDAQ:INDB) Shareholders Have Enjoyed A 83% Share Price Gain2 weeks ago | Simply Wall St
Have Insiders Sold Independent Bank Corp. (NASDAQ:INDB) Shares Recently?3 weeks ago | Simply Wall St
Do Directors Own Independent Bank Corp. (NASDAQ:INDB) Shares?Valuation
Is Independent Bank undervalued compared to its fair value and its price relative to the market?
37.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: INDB ($71.32) is trading below our estimate of fair value ($112.1)
Significantly Below Fair Value: INDB is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: INDB is poor value based on its PE Ratio (14.2x) compared to the Banks industry average (12.2x).
PE vs Market: INDB is good value based on its PE Ratio (14.2x) compared to the US market (17.2x).
Price to Earnings Growth Ratio
PEG Ratio: INDB is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: INDB is overvalued based on its PB Ratio (1.4x) 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 4 analysts?
6.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: INDB's forecast earnings growth (6.3% per year) is above the savings rate (1.7%).
Earnings vs Market: INDB's earnings (6.3% per year) are forecast to grow slower than the US market (13.2% per year).
High Growth Earnings: INDB's earnings are forecast to grow, but not significantly.
Revenue vs Market: INDB's revenue (3.8% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: INDB's revenue (3.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: INDB'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?
20.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: INDB has high quality earnings.
Growing Profit Margin: INDB's current net profit margins (32.9%) are higher than last year (31.9%).
Past Earnings Growth Analysis
Earnings Trend: INDB's earnings have grown significantly by 20.4% per year over the past 5 years.
Accelerating Growth: INDB's earnings growth over the past year (35.8%) exceeds its 5-year average (20.4% per year).
Earnings vs Industry: INDB earnings growth over the past year (35.8%) exceeded the Banks industry 12%.
Return on Equity
High ROE: INDB's Return on Equity (9.7%) 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: INDB has a low level of unsold assets or inventory.
Debt Coverage by Assets: INDB's debt is not covered by short term assets (assets are 0.8x debt).
Financial Institutions Analysis
Asset Level: INDB's level of assets compared to its equity is low.
Allowance for Bad Loans: INDB has a sufficient allowance for bad loans.
Low Risk Liabilities: INDB's liabilities are made up of primarily low risk sources of funding.
Loan Level: INDB has an acceptable proportion of non-loan assets held.
Low Risk Deposits: INDB's loans are broadly funded by customer deposits.
Level of Bad Loans: INDB has an appropriate level of bad loans (0.54%)
Next Steps
Dividend
What is Independent Bank's current dividend yield, its reliability and sustainability?
2.50%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: INDB's dividend (2.47%) is higher than the bottom 25% of dividend payers in the US market (1.52%).
High Dividend: INDB's dividend (2.47%) is low compared to the top 25% of dividend payers in the US market (3.9%).
Stability and Growth of Payments
Stable Dividend: INDB's dividends per share have been stable in the past 10 years.
Growing Dividend: INDB's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (35%), INDB's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: INDB's dividends in 3 years are forecast to be well covered by earnings (32.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.4yrs
Average management tenure
CEO
Chris Oddleifson (60yo)
17yrs
Tenure
US$2,347,885
Compensation
Mr. Christopher Oddleifson, also known as Chris, is the Chief Executive Officer of Rockland Trust Company since 2003 and the President and Chief Executive Officer of its parent, Independent Bank Corp. Mr. ...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($USD2.35M) is below average for companies of similar size in the US market ($USD4.93M).
Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 17yrs | US$2.35m | 0.26% $6.3m | |
| Executive VP & COO | 0.8yrs | US$1.02m | 0.067% $1.6m | |
| Chief Technology Officer | 6.4yrs | US$655.88k | 0.046% $1.1m | |
| General Counsel & Corporate Secretary | 19.6yrs | US$699.26k | 0.035% $856.9k | |
| Chief Accounting Officer & CFO | 0.8yrs | no data | 0.0087% $209.8k | |
| Executive Assistant | 0yrs | no data | no data | |
| Chief Internal Auditor & Senior VP | 0yrs | no data | no data | |
| Senior VP & Director of Banking & Digital Operations - Rockland Trust Company | 2.7yrs | no data | no data | |
| Senior VP | 15.1yrs | no data | no data | |
| Senior Vice President & Chief Marketing & Customer Officer of Rockland Trust Company | 0yrs | no data | no data |
6.4yrs
Average Tenure
54yo
Average Age
Experienced Management: INDB's management team is seasoned and experienced (6.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 17yrs | US$2.35m | 0.26% $6.3m | |
| Independent Director | 20.1yrs | US$153.62k | 0.27% $6.6m | |
| Independent Director | 14.8yrs | US$123.92k | 0.046% $1.1m | |
| Independent Director | 7.3yrs | no data | 0.022% $521.2k | |
| Independent Director | 10.8yrs | US$109.87k | 0.047% $1.1m | |
| Independent Director | 10.8yrs | US$118.17k | 0.070% $1.7m | |
| Chairperson of the Board | 7.9yrs | US$158.62k | 0.030% $731.3k | |
| Director | 2.9yrs | US$1.07m | 0.071% $1.7m | |
| Independent Director | 4.6yrs | US$100.00k | 0.028% $675.9k | |
| Independent Director | 3.3yrs | US$104.43k | 0.0066% $158.5k |
9.4yrs
Average Tenure
62yo
Average Age
Experienced Board: INDB's board of directors are considered experienced (9.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: INDB insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.9%.
Top Shareholders
Company Information
Independent Bank Corp.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Independent Bank Corp.
- Ticker: INDB
- Exchange: NasdaqGS
- Founded: 1907
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$2.420b
- Shares outstanding: 34.38m
- Website: https://www.rocklandtrust.com
Number of Employees
Location
- Independent Bank Corp.
- 288 Union Street
- Rockland
- Massachusetts
- 2370
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| INDB | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | May 1986 |
Biography
Independent Bank Corp. operates as the bank holding company for Rockland Trust Company that provides commercial banking products and services to individuals and small-to-medium sized businesses primarily in Massachusetts. Its products and services include demand deposits and time certificates of deposit, as well as checking, money market, and savings accounts. The company’s loan portfolio includes commercial loans, such as commercial and industrial, asset-based, commercial real estate, commercial construction, and small business loans; consumer real estate loans, including residential mortgages, home equity loans, and loans for the construction of residential properties; and other consumer loans, such as personal loans. Its commercial and industrial loans cover loans for working capital, other business-related purposes, and floor plan financing; asset-based loans consist primarily of revolving lines of credit and term loans; commercial real estate loans include commercial mortgages for construction purposes that are secured by nonresidential properties, multifamily properties, or one-to-four family rental properties; and small business loans comprise businesses with commercial credit needs. The company also provides investment management and trust services to individuals, institutions, small businesses, and charitable institutions; Internet and mobile banking services, as well as automated teller machine cards and debit cards; and mutual fund shares, unit investment trust shares, general securities, fixed and variable annuities, and life insurance. It operates through 87 full service and 2 limited service retail branches, 13 commercial banking centers, 8 investment management offices, and 1 mortgage lending center in Eastern Massachusetts; and an investment management group/commercial lending office in Rhode Island. The company was founded in 1907 and is headquartered in Rockland, Massachusetts.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/26 23:40 |
| End of Day Share Price | 2020/02/26 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.