Independent Bank (NASDAQ:IBCP) Announces Earnings Results, Misses Estimates By $0.03 EPS

Key Points

• Independent Bank reported $0.92 in quarterly EPS, missing analysts’ $0.95 estimate by $0.03, while revenue of $71.07 million exceeded the $68.86 million consensus.
• The company declared a quarterly dividend of $0.28 per share, or $1.12 annualized, representing a 3.1% yield and a 32.56% payout ratio.
• Analysts maintain a “Moderate Buy” consensus, with an average price target of $39.50; recent targets range from $38 to $42, including upgraded ratings from Hovde Group and Piper Sandler.

Independent Bank (NASDAQ:IBCP - Get Free Report) announced its earnings results on Tuesday. The financial services provider reported $0.92 earnings per share for the quarter, missing analysts' consensus estimates of $0.95 by ($0.03), FiscalAI reports. The firm had revenue of $71.07 million for the quarter, compared to the consensus estimate of $68.86 million. Independent Bank had a return on equity of 14.12% and a net margin of 22.32%.

Independent Bank Stock Performance

Shares of Independent Bank stock opened at $35.99 on Tuesday. Independent Bank has a one year low of $29.83 and a one year high of $39.24. The firm has a market capitalization of $799.09 million, a price-to-earnings ratio of 10.46 and a beta of 0.73. The business has a 50-day simple moving average of $36.34 and a 200 day simple moving average of $35.32. The company has a debt-to-equity ratio of 0.32, a current ratio of 0.95 and a quick ratio of 0.94.

Independent Bank Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Tuesday, November 3rd will be given a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date of this dividend is Tuesday, November 3rd. Independent Bank's payout ratio is presently 32.56%.

Analysts Set New Price Targets

A number of brokerages have weighed in on IBCP. Weiss Ratings reiterated a "buy (b)" rating on shares of Independent Bank in a report on Friday, September 4th. Hovde Group raised Independent Bank from a "market perform" rating to an "outperform" rating and raised their target price for the stock from $36.00 to $41.00 in a research note on Friday, July 10th. Keefe, Bruyette & Woods lifted their target price on Independent Bank from $37.00 to $38.00 and gave the stock a "market perform" rating in a report on Friday, July 24th. Finally, Piper Sandler raised Independent Bank from a "neutral" rating to an "overweight" rating and set a $42.00 price target on the stock in a research note on Friday, October 2nd. Three investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, Independent Bank currently has a consensus rating of "Moderate Buy" and an average price target of $39.50.

Insider Transactions at Independent Bank

In other Independent Bank news, CEO William Kessel sold 2,000 shares of the stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $37.28, for a total value of $74,560.00. Following the transaction, the chief executive officer owned 157,836 shares in the company, valued at approximately $5,884,126.08. This represents a 1.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 5.91% of the company's stock.

Independent Bank Company Profile

Independent Bank Corp. is the bank holding company for Independent Bank, a community banking institution headquartered in Ionia, Michigan. The bank serves individuals, families, farmers, small businesses and commercial customers through a network of branches and digital banking services across Michigan's Lower Peninsula.

Independent Bank offers a range of financial products, including checking and savings accounts, certificates of deposit, consumer loans, residential mortgages, home equity financing, agricultural loans and commercial lending.