Regional banking company Independent Bank (NASDAQ: INDB) met Wall Street’s revenue expectations in Q3 CY2025, with sales up 39.1% year on year to $243.7 million. Its GAAP profit of $0.69 per share was significantly above analysts’ consensus estimates.
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Independent Bank (INDB) Q3 CY2025 Highlights:
- Net Interest Income: $203.3 million vs analyst estimates of $177.7 million (43.5% year-on-year growth, 14.4% beat)
- Net Interest Margin: 3.6% vs analyst estimates of 3.6% (2.2 basis point miss)
- Revenue: $243.7 million vs analyst estimates of $243.6 million (39.1% year-on-year growth, in line)
- Efficiency Ratio: 66% vs analyst estimates of 85% (1,901 basis point beat)
- EPS (GAAP): $0.69 vs analyst estimates of -$0.16 (significant beat)
- Tangible Book Value per Share: $46.63 vs analyst estimates of $44.47 (flat year on year, 4.9% beat)
- Market Capitalization: $3.39 billion
Company Overview
Tracing its roots back to 1907 and serving as a financial cornerstone in New England for over a century, Independent Bank Corp. (NASDAQ: INDB) operates as the holding company for Rockland Trust, providing banking, investment, and financial services across Eastern Massachusetts and Rhode Island.
Sales Growth
In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Thankfully, Independent Bank’s 9.6% annualized revenue growth over the last five years was impressive. Its growth beat the average banking company and shows its offerings resonate with customers.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Independent Bank’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 1.6% over the last two years was well below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Independent Bank’s year-on-year revenue growth of 39.1% was wonderful, and its $243.7 million of revenue was in line with Wall Street’s estimates.
Net interest income made up 81.7% of the company’s total revenue during the last five years, meaning Independent Bank barely relies on non-interest income to drive its overall growth.
Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.
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Tangible Book Value Per Share (TBVPS)
Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.
This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
Independent Bank’s TBVPS grew at a decent 5.8% annual clip over the last five years. However, TBVPS growth has recently decelerated a bit to 4.6% annual growth over the last two years (from $42.60 to $46.63 per share).
Over the next 12 months, Consensus estimates call for Independent Bank’s TBVPS to grow by 4.6% to $48.79, paltry growth rate.
Key Takeaways from Independent Bank’s Q3 Results
It was good to see Independent Bank beat analysts’ EPS expectations this quarter. We were also excited its net interest income outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a good print with some key areas of upside. The stock remained flat at $65 immediately after reporting.
Independent Bank put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
