Regional banking company Independent Bank (NASDAQ: INDB) 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.
Is now the time to buy Independent Bank? Find out by accessing our full research report, it’s free.
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. (NASDAQ: INDB) 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. 
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 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).
