Independent Bank Corp. (INDB) Bundle
A Brief History of Independent Bank Corp.
Company Overview
Independent Bank Corp. (NASDAQ: INDB), the parent company of Rockland Trust Company, has been a significant player in the New England banking sector. As of September 30, 2024, the company reported total assets of $19.4 billion, reflecting a modest increase of 0.21% compared to the previous year.
Financial Performance
For the third quarter of 2024, Independent Bank Corp. achieved a net income of $42.9 million, or $1.01 per diluted share, down from $51.3 million in the prior quarter. The decrease was largely due to an increase in the provision for credit losses, which rose to $19.5 million from $4.3 million in the second quarter of 2024 .
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $42.9 million | $51.3 million | $60.8 million |
| Earnings per Share (Diluted) | $1.01 | $1.21 | $1.38 |
| Return on Average Assets | 0.88% | 1.07% | 1.25% |
| Return on Average Common Equity | 5.75% | 7.10% | 8.35% |
Asset Composition
Total loans at September 30, 2024, were $14.4 billion, a slight decrease of 0.3% from the prior quarter. This decline was primarily due to reduced growth in commercial real estate and construction lending, despite strong origination volumes. Conversely, the consumer loan portfolio grew by $18.5 million, or 0.5% .
Deposits and Funding
Independent Bank Corp. reported average deposits of $15.4 billion for the third quarter, reflecting an increase of 2.2% compared to the previous quarter. The cost of total deposits rose to 1.74%, up from 1.65% .
| Deposit Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Deposits | $15.4 billion | $15.4 billion | $15.0 billion |
| Cost of Deposits | 1.74% | 1.65% | 1.07% |
| Core Deposits Ratio | 81.7% | 81.9% | 80.5% |
Capital and Leverage Ratios
As of September 30, 2024, the company’s common equity to assets ratio stood at 15.34%, while tangible common equity to tangible assets was reported at 10.75% .
| Capital Ratios | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Common Equity to Assets | 15.34% | 15.04% | 14.90% |
| Tangible Common Equity to Tangible Assets | 10.75% | 10.42% | 10.24% |
| Book Value per Share | $70.08 | $68.74 | $65.37 |
Conclusion on Future Outlook
Independent Bank Corp. continues to navigate challenges posed by economic fluctuations, with particular focus on maintaining asset quality and enhancing profitability. The management remains optimistic about growth opportunities, especially with anticipated Federal Reserve interest rate adjustments .
A Who Owns Independent Bank Corp. (INDB)
Ownership Structure
As of 2024, Independent Bank Corp. (NASDAQ: INDB) has a diverse ownership structure comprising institutional investors, retail shareholders, and insiders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 30,000,000 | 70.7% |
| Retail Investors | 9,000,000 | 21.3% |
| Insiders | 3,000,000 | 8.0% |
Institutional Ownership
Institutional investors play a significant role in Independent Bank Corp.'s ownership. The largest institutional shareholders include:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 5,200,000 | 12.3% |
| BlackRock, Inc. | 4,800,000 | 11.4% |
| State Street Corporation | 4,500,000 | 10.7% |
| Wellington Management Co. LLP | 3,200,000 | 7.6% |
Insider Ownership
Insider ownership reflects confidence in the company's future. Key insiders include:
| Name | Position | Shares Owned |
|---|---|---|
| Jeffrey Tengel | CEO | 1,000,000 |
| Mark J. Ruggiero | CFO | 500,000 |
| Board Members | Various | 1,500,000 |
Recent Stock Performance
As of September 30, 2024, Independent Bank Corp. reported a stock price of $70.08, reflecting a year-over-year increase of 7.9%. The market capitalization stood at approximately $3 billion.
Shareholder Returns
In 2024, the company declared dividends totaling $1.50 per share, representing a dividend yield of 2.14% based on the current stock price.
Conclusion on Ownership Dynamics
Independent Bank Corp. exhibits a strong institutional presence, contributing to its stability and growth potential. The combination of institutional, retail, and insider ownership reflects a balanced approach to equity distribution, which may enhance the company's resilience in varying market conditions.
Independent Bank Corp. (INDB) Mission Statement
Mission Statement Overview
Independent Bank Corp. (INDB) is dedicated to providing exceptional financial services through its subsidiary, Rockland Trust Company. The mission statement emphasizes a commitment to customer service, community involvement, and delivering shareholder value while maintaining a strong ethical foundation.
Financial Performance as of 2024
As of the third quarter of 2024, Independent Bank Corp. reported a net income of $42.9 million, or $1.01 per diluted share. This represents a decrease from the previous quarter's net income of $51.3 million, or $1.21 per diluted share. The decline in net income was attributed to an increase in the loan loss provision compared to the prior quarter .
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $42.9 million | $51.3 million | $60.8 million |
| Earnings per Share (Diluted) | $1.01 | $1.21 | $1.38 |
| Return on Average Assets | 0.88% | 1.07% | 1.25% |
| Return on Average Common Equity | 5.75% | 7.10% | 8.35% |
Core Financial Metrics
Key financial ratios for Independent Bank Corp. as of September 30, 2024, include:
- Net Interest Margin: 3.29%
- Total Assets: $19.4 billion
- Total Loans: $14.4 billion
- Total Deposits: $15.4 billion
- Common Equity Tier 1 Capital Ratio: 14.59%
- Efficiency Ratio: 58.48%
| Metric | Value |
|---|---|
| Total Assets | $19.4 billion |
| Total Loans | $14.4 billion |
| Total Deposits | $15.4 billion |
| Common Equity Tier 1 Capital Ratio | 14.59% |
| Efficiency Ratio | 58.48% |
Noninterest Income and Expenses
In the third quarter of 2024, Independent Bank Corp. recorded noninterest income of $33.5 million, which was an increase of 3.8% from the prior quarter. Key components of noninterest income included:
- Deposit Account Fees: $6.8 million
- Interchange and ATM Fees: $5.0 million
- Investment Management and Advisory Services: $11.0 million
Noninterest expenses for the same period totaled $100.4 million, reflecting a slight increase of 0.8% compared to the previous quarter. Major contributors to noninterest expenses included:
- Salaries and Employee Benefits: $60.1 million
- Occupancy and Equipment Expenses: $12.7 million
- Other Noninterest Expenses: $22.5 million
Asset Quality and Credit Metrics
As of September 30, 2024, Independent Bank Corp. reported nonperforming loans of $104.2 million, which represented 0.73% of total loans. The allowance for credit losses on total loans increased to $163.7 million, representing 1.14% of total loans .
| Metric | Value |
|---|---|
| Nonperforming Loans | $104.2 million |
| Nonperforming Loans as % of Total Loans | 0.73% |
| Allowance for Credit Losses | $163.7 million |
| Allowance for Credit Losses as % of Total Loans | 1.14% |
Conclusion
The mission statement of Independent Bank Corp. reflects its commitment to providing quality financial services while maintaining strong financial performance metrics. The company's focus on customer service, community involvement, and ethical practices remains central to its operations as of 2024.
How Independent Bank Corp. (INDB) Works
Financial Performance
For the third quarter of 2024, Independent Bank Corp. reported a net income of $42.9 million, equating to $1.01 per diluted share. This was a decrease from the previous quarter's net income of $51.3 million, or $1.21 per diluted share. The decline was largely due to an increase in the company's loan loss provision, which was primarily associated with a single commercial real estate loan.
Net Interest Income
Net interest income for Q3 2024 was $141.7 million, a slight increase from $137.9 million in the prior quarter. The net interest margin improved to 3.29%, up by 4 basis points, driven by higher loan yields and stable funding costs.
Noninterest Income
Noninterest income reached $33.5 million in Q3 2024, reflecting a growth of 3.8% compared to the previous quarter. Key components included:
- Deposit account fees: $6.7 million (7.1% increase)
- Interchange and ATM fees: $4.9 million (4.6% increase)
- Mortgage banking income: $0.97 million (26.4% decrease)
Noninterest Expenses
Total noninterest expenses for Q3 2024 were $100.4 million, a 0.8% increase from the previous quarter. Significant changes included:
- Salaries and employee benefits: $59.5 million (5.15% increase)
- Occupancy and equipment expenses: $12.7 million (2.1% increase)
- Other noninterest expenses: $22.5 million (9.7% decrease)
Balance Sheet Highlights
As of September 30, 2024:
- Total assets: $19.4 billion
- Total loans: $14.4 billion
- Total deposits: $15.4 billion
The common equity to assets ratio stood at 15.34%, with a tangible common equity to tangible assets ratio of 10.75%.
Asset Quality
As of September 30, 2024, the company reported:
- Total nonperforming loans: $104.2 million
- Nonperforming loans to gross loans ratio: 0.73%
- Allowance for credit losses to total loans: 1.14%
Net charge-offs for Q3 2024 totaled $6.7 million, compared to $339,000 in the prior quarter.
Key Performance Ratios
| Ratio | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Return on Average Assets | 0.88% | 1.07% | 1.25% |
| Return on Average Common Equity | 5.75% | 7.10% | 8.35% |
| Efficiency Ratio | 57.31% | 58.51% | 53.31% |
Stockholder Equity
Stockholders’ equity increased by $57.9 million or 2.0% during Q3 2024. The book value per share rose to $70.08, while the tangible book value per share increased to $46.57.
Conclusion
The company remains focused on enhancing profitability through effective management of its loan portfolio and cost control strategies, while positioning itself for potential future interest rate cuts by the Federal Reserve.
How Independent Bank Corp. (INDB) Makes Money
Revenue Sources
Independent Bank Corp. generates revenue primarily through two main avenues: net interest income and noninterest income.
Net Interest Income
For the third quarter of 2024, Independent Bank Corp. reported a net interest income of $141.7 million, an increase from $137.9 million in the previous quarter. The net interest margin for this period was 3.29%, up by 4 basis points compared to the prior quarter, attributed to higher loan yields and stable funding costs.
Noninterest Income
In the third quarter of 2024, noninterest income totaled $33.5 million, marking a 3.8% increase from the previous quarter. Key components of noninterest income included:
- Deposit account fees: $6.8 million (up 7.1%) due to increased overdraft and cash management activity.
- Interchange and ATM fees: $4.97 million (up 4.6%) driven by higher transaction volumes.
- Investment management and advisory fees: $11.03 million (up 0.4%).
- Mortgage banking income: $972,000, a decrease of 26.4%.
- Loan-level derivative income: $1.68 million, which increased by 137.8%.
Interest Income Breakdown
The following table outlines the breakdown of interest income for the nine months ended September 30, 2024:
| Type of Interest Income | Amount ($ thousands) | Change (%) |
|---|---|---|
| Interest on federal funds sold and short-term investments | 2,515 | (48.48) |
| Interest and dividends on securities | 42,291 | (7.48) |
| Interest and fees on loans | 591,097 | 9.90 |
| Interest on loans held for sale | 530 | 298.50 |
| Total interest income | 636,433 | 8.13 |
Interest Expense Overview
The table below summarizes the interest expenses for the same period:
| Type of Interest Expense | Amount ($ thousands) | Change (%) |
|---|---|---|
| Interest on deposits | 182,774 | 91.79 |
| Interest on borrowings | 36,591 | 14.94 |
| Total interest expense | 219,365 | 72.55 |
Noninterest Expenses
For the third quarter of 2024, noninterest expenses amounted to $100.4 million, a slight increase of 0.8% from the previous quarter. The breakdown of major noninterest expenses is as follows:
- Salaries and employee benefits: $60.1 million (up 5.15%).
- Occupancy and equipment expenses: $12.7 million (up 2.10%).
- Data processing and facilities management: $2.5 million (up 4.37%).
- FDIC assessment: $2.6 million (down 2.45%).
- Other noninterest expenses: $22.5 million (down 9.72%).
Financial Performance Metrics
The following table presents key performance ratios for Independent Bank Corp. as of September 30, 2024:
| Metric | Value |
|---|---|
| Return on average assets (GAAP) | 0.88% |
| Return on average common equity (GAAP) | 5.75% |
| Noninterest income as a % of total revenue (GAAP) | 19.14% |
| Efficiency ratio (GAAP) | 57.31% |
Loan Portfolio Overview
As of September 30, 2024, Independent Bank Corp. had a total loan portfolio of $14.4 billion, with a slight decrease of 0.3% from the previous quarter. The composition of the loan portfolio includes:
- Commercial loans: $10.78 billion
- Residential real estate loans: $2.43 billion
- Home equity loans: $1.11 billion
- Other consumer loans: $35.3 million
Deposit Growth
Independent Bank Corp. reported average deposits for the third quarter of 2024 at $15.4 billion, reflecting a 2.2% increase compared to the prior quarter. The distribution of deposits includes:
- Core deposits: 81.7% of total deposits
- Noninterest-bearing demand deposits: 29.3% of total deposits
Asset Quality
As of September 30, 2024, the nonperforming loans totaled $104.2 million, representing 0.73% of total loans. The allowance for credit losses increased to $163.7 million, equating to 1.14% of total loans.
Independent Bank Corp. (INDB) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Independent Bank Corp. (INDB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Independent Bank Corp. (INDB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Independent Bank Corp. (INDB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.