(IBCP) Independent Bank - Overview
Sector: Financial Services | Industry: Banks - Regional | Exchange: NASDAQ (USA) | Market Cap: 674m USD | Total Return: 10.9% in 12m
Avg Turnover: 5.68M
EPS Trend: 92.2%
Qual. Beats: 0
Rev. Trend: 82.0%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Independent Bank Corporation (IBCP) is a bank holding company headquartered in Grand Rapids, Michigan, operating as Independent Bank. Established in 1864, the institution provides a full suite of retail and commercial banking services, including deposit accounts, residential mortgages, home equity lines, and consumer lending.
The company operates within the regional banking sector, where revenue is primarily generated through the net interest margin-the spread between interest earned on loans and interest paid on deposits. IBCP further diversifies its income streams through non-interest revenue sources, including cash management, investment services, trust administration, and the sale of insurance and annuity products.
Regional banks often face unique localized economic risks, making a review of IBCPs specific credit metrics on ValueRay a logical next step. Its service model integrates traditional physical infrastructure, such as safe deposit boxes and ATMs, with modern digital banking platforms to maintain its competitive position in the Michigan market.
- Net interest margin expansion driven by Michigan regional economic growth
- Residential mortgage origination volume sensitivity to Federal Reserve interest rate policy
- Asset quality stability across agricultural and commercial real estate loan portfolios
- Non-interest income growth through wealth management and payment processing services
- Efficiency ratio improvements via digital banking adoption and branch network optimization
| Net Income: 69.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -0.02 > 1.0 |
| NWC/Revenue: -1.52k% < 20% (prev -1.26k%; Δ -253.6% < -1%) |
| CFO/TA 0.01 > 3% & CFO 35.8m > Net Income 69.8m |
| Net Debt (69.5m) to EBITDA (92.3m): 0.75 < 3 |
| Current Ratio: 0.01 > 1.5 & < 3 |
| Outstanding Shares: last quarter (20.8m) vs 12m ago -1.75% < -2% |
| Gross Margin: 70.31% > 18% (prev 0.67%; Δ 6.96k% > 0.5%) |
| Asset Turnover: 5.69% > 50% (prev 5.91%; Δ -0.22% > 0%) |
| Interest Coverage Ratio: 0.95 > 6 (EBITDA TTM 92.3m / Interest Expense TTM 86.6m) |
| A: -0.84 (Total Current Assets 67.3m - Total Current Liabilities 4.76b) / Total Assets 5.56b |
| B: 0.05 (Retained Earnings 263.9m / Total Assets 5.56b) |
| C: 0.02 (EBIT TTM 82.4m / Avg Total Assets 5.44b) |
| D: 0.10 (Book Value of Equity 510.6m / Total Liabilities 5.05b) |
| Altman-Z'' = -5.18 = D |
As of May 24, 2026, the stock is trading at USD 34.03 with a total of 106,936 shares traded.
Over the past week, the price has changed by +3.61%,
over one month by +1.65%,
over three months by -3.73% and
over the past year by +10.92%.
Independent Bank has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold IBCP.
- StrongBuy: 0
- Buy: 0
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 36.7 | 7.8% |
P/E Forward = 12.0482
P/S = 3.0009
P/B = 1.3936
P/EG = 1.4017
Revenue TTM = 309.7m USD
EBIT TTM = 82.4m USD
EBITDA TTM = 92.3m USD
Long Term Debt = 116.9m USD (from longTermDebt, last fiscal year)
Short Term Debt = 1.09m USD (from shortTermDebt, last quarter)
Debt = 118.0m USD (corrected: LT Debt 116.9m + ST Debt 1.09m)
Net Debt = 69.5m USD (calculated: Debt 118.0m - CCE 48.5m)
Enterprise Value = 743.7m USD (674.2m + Debt 118.0m - CCE 48.5m)
Interest Coverage Ratio = 0.95 (Ebit TTM 82.4m / Interest Expense TTM 86.6m)
EV/FCF = 10.27x (Enterprise Value 743.7m / FCF TTM 72.4m)
FCF Yield = 9.74% (FCF TTM 72.4m / Enterprise Value 743.7m)
FCF Margin = 23.38% (FCF TTM 72.4m / Revenue TTM 309.7m)
Net Margin = 22.54% (Net Income TTM 69.8m / Revenue TTM 309.7m)
Gross Margin = 70.31% ((Revenue TTM 309.7m - Cost of Revenue TTM 92.0m) / Revenue TTM)
Gross Margin QoQ = 73.63% (prev 71.03%)
Tobins Q-Ratio = 0.13 (Enterprise Value 743.7m / Total Assets 5.56b)
Interest Expense / Debt = 73.40% (Interest Expense 86.6m / Debt 118.0m)
Taxrate = 16.58% (3.35m / 20.2m)
NOPAT = 68.7m (EBIT 82.4m * (1 - 16.58%))
Current Ratio = 0.01 (Total Current Assets 67.3m / Total Current Liabilities 9.31b)
Debt / Equity = 0.23 (Debt 118.0m / totalStockholderEquity, last quarter 510.6m)
Debt / EBITDA = 0.75 (Net Debt 69.5m / EBITDA 92.3m)
Debt / FCF = 0.96 (Net Debt 69.5m / FCF TTM 72.4m)
Total Stockholder Equity = 493.4m (last 4 quarters mean from totalStockholderEquity)
RoA = 1.28% (Net Income 69.8m / Total Assets 5.56b)
RoE = 14.15% (Net Income TTM 69.8m / Total Stockholder Equity 493.4m)
RoCE = 13.50% (EBIT 82.4m / Capital Employed (Equity 493.4m + L.T.Debt 116.9m))
RoIC = 1.24% (NOPAT 68.7m / Invested Capital 5.56b)
WACC = 7.05% (E(674.2m)/V(792.2m) * Re(8.28%) + (debt cost/tax rate unavailable))
Discount Rate = 8.28% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -33.33 | Cagr: -0.57%
[DCF] Terminal Value 75.82% ; FCFF base≈71.6m ; Y1≈73.6m ; Y5≈81.9m
[DCF] Fair Price = 58.13 (EV 1.27b - Net Debt 69.5m = Equity 1.20b / Shares 20.6m; r=8.35% [WACC [floored]]; 5y FCF grow 2.95% → 2.50% )
EPS Correlation: 92.19 | EPS CAGR: 6.52% | SUE: 0.20 | # QB: 0
Revenue Correlation: 82.00 | Revenue CAGR: 6.38% | SUE: 0.53 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.84 | Chg30d=-1.17% | Revisions=-20% | Analysts=5
EPS next Quarter (2026-09-30): EPS=0.86 | Chg30d=+1.54% | Revisions=+14% | Analysts=5
EPS current Year (2026-12-31): EPS=3.45 | Chg30d=+1.44% | Revisions=+50% | GrowthEPS=+5.6% | GrowthRev=+22.2%
EPS next Year (2027-12-31): EPS=3.83 | Chg30d=+1.07% | Revisions=+50% | GrowthEPS=+10.8% | GrowthRev=+10.1%
[Analyst] Revisions Ratio: +50%