Independent Bank (NASDAQ:IBCP) Announces Earnings Results

Independent Bank (NASDAQ:IBCP) issued its earnings results on Thursday. The financial services provider reported $0.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.83 by $0.06, Zacks reports. The business had revenue of $46.80 million during the quarter, compared to analysts’ expectations of $50.52 million. Independent Bank had a net margin of 21.25% and a return on equity of 14.54%.

Here are the key takeaways from Independent Bank’s conference call:

• Independent reported solid profitability with Q4 net income of $18.6M ($0.89/sh) and full-year net income of $68.5M ($3.27/sh), and management expects 7%-8% net interest income growth and meaningful NIM expansion in 2026.
• Loan growth was strong, with Q4 net loan growth of $78M (7.4% annualized) and commercial loans up 14.2% year-over-year; the bank expects continued low double-digit commercial growth and 4.5%-5.5% total loan growth in 2026.
• Capital and shareholder returns remain priorities—tangible common equity rose to 8.65%, the company repurchased ~407K shares for $12.4M in 2025, and the board authorized ~5% buybacks for 2026 (not modeled).
• Non-interest income declined materially to $12M in Q4 from $19.1M a year earlier, driven by the January 2025 sale of mortgage servicing rights and expected lower mortgage gain-on-sale volumes in 2026.
• Asset-quality metrics show a modest deterioration—non-performing loans rose to $23.1M (54 bps)

Independent Bank Stock Up 1.0%

Shares of Independent Bank stock opened at $35.39 on Friday. Independent Bank has a twelve month low of $26.75 and a twelve month high of $37.13. The company has a quick ratio of 0.90, a current ratio of 0.91 and a debt-to-equity ratio of 0.09. The company’s 50 day moving average is $33.20 and its 200 day moving average is $32.32. The company has a market cap of $732.22 million, a price-to-earnings ratio of 10.86 and a beta of 0.80.

Independent Bank Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, February 13th. Investors of record on Tuesday, February 3rd will be given a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a yield of 3.2%. This is a positive change from Independent Bank’s previous quarterly dividend of $0.26. The ex-dividend date is Tuesday, February 3rd. Independent Bank’s payout ratio is currently 31.90%.

Institutional Trading of Independent Bank

Hedge funds have recently bought and sold shares of the company. Quantinno Capital Management LP boosted its stake in shares of Independent Bank by 17.1% during the 2nd quarter. Quantinno Capital Management LP now owns 10,920 shares of the financial services provider’s stock worth $354,000 after acquiring an additional 1,594 shares during the last quarter. Qube Research & Technologies Ltd increased its stake in shares of Independent Bank by 22.9% in the 2nd quarter. Qube Research & Technologies Ltd now owns 128,701 shares of the financial services provider’s stock worth $4,171,000 after purchasing an additional 23,942 shares in the last quarter. First Trust Advisors LP raised its holdings in Independent Bank by 3.5% in the 2nd quarter. First Trust Advisors LP now owns 80,126 shares of the financial services provider’s stock worth $2,597,000 after purchasing an additional 2,728 shares during the period. EverSource Wealth Advisors LLC lifted its position in Independent Bank by 2,062.9% during the second quarter. EverSource Wealth Advisors LLC now owns 757 shares of the financial services provider’s stock valued at $25,000 after purchasing an additional 722 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its holdings in Independent Bank by 14.7% during the second quarter. Arrowstreet Capital Limited Partnership now owns 101,507 shares of the financial services provider’s stock valued at $3,290,000 after purchasing an additional 13,037 shares during the period. Hedge funds and other institutional investors own 79.43% of the company’s stock.

Analysts Set New Price Targets

Separately, Weiss Ratings raised shares of Independent Bank from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, January 12th. One investment analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $36.00.

Independent Bank Company Profile

Independent Bank Corporation (NASDAQ: IBCP) is a bank holding company headquartered in Grand Rapids, Michigan. Through its primary subsidiary, Independent Bank, the company offers a full range of commercial and personal banking services designed to meet the needs of individuals, small businesses and corporate clients. The company’s offerings span traditional branch-based banking as well as digital and mobile platforms.

Independent Bank provides deposit products such as checking and savings accounts, money market accounts and certificates of deposit.

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