INDB Q4 CY2025 Deep Dive: Commercial Lending Growth and Deposit Mix Support Margin Outlook

Regional banking company Independent Bank reported revenue ahead of Wall Streets expectations in Q4 CY2025, with sales up 43.9% year on year to $253.9 million. Its non-GAAP profit of $1.70 per share was 2.8% above analysts’ consensus estimates.

Independent Bank (INDB) Q4 CY2025 Highlights:

• Net Interest Income: $212.5 million vs analyst estimates of $208 million (46.9% year-on-year growth, 2.1% beat)
• Net Interest Margin: 3.8% vs analyst estimates of 3.7% (9.7 basis point beat)
• Revenue: $253.9 million vs analyst estimates of $248.2 million (43.9% year-on-year growth, 2.3% beat)
• Efficiency Ratio: 60.8% vs analyst estimates of 55.8% (496.5 basis point miss)
• Adjusted EPS: $1.70 vs analyst estimates of $1.65 (2.8% beat)
• Tangible Book Value per Share: $47.55 vs analyst estimates of $47.67 (1.3% year-on-year growth, in line)
• Market Capitalization: $3.94 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. operates as the holding company for Rockland Trust, providing banking, investment, and financial services across Eastern Massachusetts and Rhode Island.

Sales Growth

From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Over the last five years, Independent Bank grew its revenue at a solid 12.3% compounded annual growth rate. 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 as its annualized revenue growth of 8.2% over the last two years was below its five-year trend.

This quarter, Independent Bank reported magnificent year-on-year revenue growth of 43.9%, and its $253.9 million of revenue beat Wall Street’s estimates by 2.3%.

Net interest income made up 82.1% 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.

Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.

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Tangible Book Value Per Share (TBVPS)

Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time.

Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.

Independent Bank’s TBVPS grew at a decent 6% annual clip over the last five years. However, TBVPS growth has recently decelerated a bit to 3.8% annual growth over the last two years (from $44.13 to $47.55 per share).

Over the next 12 months, Consensus estimates call for Independent Bank’s TBVPS to grow by 10% to $52.32, mediocre growth rate.

Key Takeaways from Independent Bank’s Q4 Results

It was encouraging to see Independent Bank beat analysts’ revenue expectations this quarter. We were also happy its net interest income outperformed Wall Street’s estimates. On the other hand, its EPS slightly beat. Overall, this print had some key positives. The stock remained flat at $80.61 immediately after reporting.

Is Independent Bank an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).

Regional banking company Independent Bank will be reporting earnings this Thursday afternoon. Here’s what to look for.

Independent Bank met analysts’ revenue expectations last quarter, reporting revenues of $243.7 million, up 39.1% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ tangible book value per share estimates but a narrow beat of analysts’ EPS estimates.

Is Independent Bank a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Independent Bank’s revenue to grow 40.6% year on year to $248.2 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.65 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Independent Bank has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.6% on average.

Looking at Independent Bank’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ServisFirst Bancshares delivered year-on-year revenue growth of 22.9%, beating analysts’ expectations by 6.8%, and Simmons First National reported revenues up 15.9%, topping estimates by 4.1%.

Read our full analysis of ServisFirst Bancshares’s results here and Simmons First National’s results here.

Investors in the regional banks segment have had steady hands going into earnings, with share prices flat over the last month. Independent Bank is down 2.3% during the same time and is heading into earnings with an average analyst price target of $83.40 (compared to the current share price of $75.39).

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the regional banks stocks, including Live Oak Bancshares and its peers.

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 101 regional banks stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3%.

Thankfully, share prices of the companies have been resilient as they are up 6.2% on average since the latest earnings results.

Live Oak Bancshares

Founded during the 2008 financial crisis with a vision to reimagine small business banking through technology, Live Oak Bancshares is a bank holding company that specializes in providing online banking services and SBA-guaranteed loans to small businesses across targeted industries nationwide.

Live Oak Bancshares reported revenues of $153.1 million, up 17% year on year. This print exceeded analysts’ expectations by 3%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

“Live Oak’s third quarter results reflect the strength of our core banking operations and our continued commitment to serving small businesses across the country. We delivered strong loan production, were again named the SBA’s leading 7(a) lender by dollar amount, had significant deposit growth, and drove total assets to $14.67 billion—a 16% increase year-over-year,” said Live Oak Chairman and CEO James S. (Chip) Mahan III.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $34.70.

Best Q3: Customers Bancorp

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $231.8 million, up 38.3% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 13.7% since reporting. It currently trades at $74.50.

Weakest Q3: The Bancorp

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.7 million, up 38.8% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and net interest income estimates.

The Bancorp delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 12.4% since the results and currently trades at $67.65.

Read our full analysis of The Bancorp’s results here.

Independent Bank

Tracing its roots back to 1907 and serving as a financial cornerstone in New England for over a century, Independent Bank Corp. operates as the holding company for Rockland Trust, providing banking, investment, and financial services across Eastern Massachusetts and Rhode Island.

Independent Bank reported revenues of $243.7 million, up 39.1% year on year. This result was in line with analysts’ expectations. Aside from that, it was a mixed quarter as it also logged a solid beat of analysts’ tangible book value per share estimates but a narrow beat of analysts’ EPS estimates.

The stock is up 13.7% since reporting and currently trades at $73.19.

Read our full, actionable report on Independent Bank here, it’s free for active Edge members.

Byline Bancorp

Ranking as the fifth most active Small Business Administration lender in the country, Byline Bancorp is a Chicago-based bank that provides banking services to small and medium-sized businesses, commercial real estate developers, and consumers.

Byline Bancorp reported revenues of $115.7 million, up 13.6% year on year. This print surpassed analysts’ expectations by 4.5%. It was an exceptional quarter as it also put up an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ net interest income estimates.

The stock is up 9% since reporting and currently trades at $29.05.

Read our full, actionable report on Byline Bancorp here, it’s free for active Edge members.

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the regional banks industry, including SouthState and its peers.

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 99 regional banks stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3%.

Thankfully, share prices of the companies have been resilient as they are up 5.6% on average since the latest earnings results.

SouthState

With roots dating back to the Great Depression era of 1933, SouthState is a financial holding company that provides banking services, wealth management, and correspondent banking services across six southeastern states.

SouthState reported revenues of $698.8 million, up 63.9% year on year. This print exceeded analysts’ expectations by 6.6%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $93.80.

We think SouthState is a good business, but is it a buy today? Read our full report here, it’s free for active Edge members.

Best Q3: Customers Bancorp

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $231.8 million, up 38.3% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 10% since reporting. It currently trades at $72.14.

Weakest Q3: The Bancorp

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.7 million, up 38.8% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.

The Bancorp delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 13% since the results and currently trades at $67.17.

Read our full analysis of The Bancorp’s results here.

TowneBank

Founded in 1998 with a commitment to community-centered banking in the Hampton Roads region, TowneBank is a community-focused financial institution providing banking, lending, and wealth management services to individuals and businesses in Virginia and North Carolina.

TowneBank reported revenues of $215.7 million, up 23.6% year on year. This result was in line with analysts’ expectations. More broadly, it was a mixed quarter as it also recorded a solid beat of analysts’ tangible book value per share estimates but a miss of analysts’ net interest income estimates.

The stock is flat since reporting and currently trades at $33.39.

Read our full, actionable report on TowneBank here, it’s free for active Edge members.

Independent Bank

Tracing its roots back to 1907 and serving as a financial cornerstone in New England for over a century, Independent Bank Corp. operates as the holding company for Rockland Trust, providing banking, investment, and financial services across Eastern Massachusetts and Rhode Island.

Independent Bank reported revenues of $243.7 million, up 39.1% year on year. This print met analysts’ expectations. Taking a step back, it was a mixed quarter as it also logged an impressive beat of analysts’ tangible book value per share estimates but a narrow beat of analysts’ EPS estimates.

The stock is up 13.5% since reporting and currently trades at $73.08.

Read our full, actionable report on Independent Bank here, it’s free for active Edge members.