Core Insights - Independent Bank Corp. reported revenue of $176.85 million for Q4 2024, a slight year-over-year decline of 0.2% [1] - The earnings per share (EPS) for the same period was $1.21, down from $1.26 a year ago, but exceeded the consensus estimate of $1.16 by 4.31% [1] - The revenue surpassed the Zacks Consensus Estimate of $175.82 million by 0.59% [1] Financial Performance Metrics - Efficiency Ratio was reported at 60.2%, higher than the estimated 58% by analysts [4] - Net interest margin (FTE) matched the analyst estimate at 3.3% [4] - Average balance of total interest-earning assets was $17.42 billion, slightly above the $17.37 billion estimate [4] - Total Non-Interest Income was $32.19 million, below the average estimate of $33.16 million [4] - Net Interest Income was reported at $144.66 million, exceeding the estimate of $142.43 million [4] - Loan level derivative income was $0.44 million, lower than the estimated $0.90 million [4] - Interchange and ATM fees were $4.88 million, slightly below the estimate of $4.94 million [4] - Deposit account fees were $7.12 million, surpassing the estimate of $6.55 million [4] - Other noninterest income was $5.57 million, below the estimate of $6.67 million [4] - Mortgage banking income was $1.06 million, exceeding the estimate of $0.83 million [4] - Investment management income was $10.78 million, slightly below the estimate of $11.07 million [4] Stock Performance - Shares of Independent Bank Corp. returned -1.4% over the past month, compared to the Zacks S&P 500 composite's -1.6% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - BAD BEAT Investing, led by Quad 7 Capital, emphasizes a strategic approach to trading, focusing on both long and short positions while educating investors on market dynamics and trading proficiency [1][2] Group 1: Company Overview - Quad 7 Capital consists of a team of 7 analysts with diverse expertise in business, policy, economics, mathematics, game theory, and sciences [1] - The company has been operational for nearly 12 years and is recognized for its significant market calls, including a notable recommendation to sell everything and go short in February 2020 [1] - Since May 2020, the company has maintained an average position of 95% long and 5% short [1] Group 2: Investment Strategy - BAD BEAT Investing focuses on short- and medium-term investments, income generation, special situations, and momentum trades [1] - The company aims to provide in-depth, high-quality research with clear entry and exit targets to save investors time [1] Group 3: Educational Benefits - Investors can learn to understand market fluctuations, execute well-researched trade ideas weekly, and utilize various trading tools through BAD BEAT Investing [2] - The service includes access to 4 chat rooms and daily summaries of key analyst upgrades and downgrades [2] - Additionally, the program offers education on basic options trading [2]

Core Viewpoint - Independent Bank Corp. reported quarterly earnings of $1.21 per share, exceeding the Zacks Consensus Estimate of $1.16 per share, but down from $1.26 per share a year ago, indicating a 3.97% year-over-year decline in earnings [1][2] Financial Performance - The company achieved revenues of $176.85 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.59%, but slightly down from $177.16 million in the same quarter last year [2] - Over the last four quarters, Independent Bank Corp. has exceeded consensus EPS estimates three times and has also topped consensus revenue estimates three times [2] Stock Performance and Outlook - The stock has gained approximately 1% since the beginning of the year, compared to the S&P 500's gain of 1.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] Earnings Estimate Revisions - The trend for earnings estimate revisions for Independent Bank Corp. is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $1.20 on revenues of $177.83 million, and for the current fiscal year, it is $5.32 on revenues of $760.77 million [7] Industry Context - The Banks - Northeast industry, to which Independent Bank Corp. belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable industry outlook [8]

Financial Performance - Fourth quarter net income for 2024 was $50.0 million, or $1.18 per diluted share, up from $42.9 million, or $1.01 per diluted share in the third quarter[1]. - Full year 2024 net income totaled $192.1 million, or $4.52 per diluted share, compared to $239.5 million, or $5.42 per diluted share in the prior year[1]. - Net income reached $50,033 thousand, representing a 16.50% increase compared to the same quarter last year[31]. - Basic earnings per share increased to $1.18, a rise of 16.83% year-over-year[31]. - Net income (GAAP) for Q4 2024 was $50,033,000, a decrease of 8.1% from $54,803,000 in Q4 2023[57]. - Operating net income (Non-GAAP) for the year ended December 31, 2024, was $193,448,000, down from $239,502,000 in 2023, a decline of 19.2%[57]. Loan and Deposit Growth - Total loans increased by $147.6 million, or 1.0% (4.1% annualized), to $14.5 billion compared to the prior quarter, driven by growth in commercial and industrial loans[5]. - Net loans increased by 1.00% year-over-year, reaching $14,338,394,000 as of December 31, 2024[27]. - Total deposits decreased by 0.87% from September 30, 2024, totaling $15,305,978,000[27]. - Nonperforming loans decreased to $101.5 million, representing 0.70% of total loans, down from 0.73% in the prior quarter[14]. Interest Income and Margin - Net interest income rose to $144.7 million in the fourth quarter, compared to $141.7 million in the prior quarter, with a net interest margin of 3.33%[10]. - Total interest income for the quarter was $216,320 thousand, showing a decrease of 0.09% from the prior quarter but an increase of 4.42% year-over-year[30]. - Total interest income increased by 7.17% to $852,753,000 compared to $795,726,000 in 2023[33]. - The interest rate spread improved to 2.52%, compared to 2.44% in the previous quarter[44]. - The interest rate spread decreased to 2.46% in 2024 from 2.94% in 2023, indicating a tighter margin environment[49]. Credit Quality - The provision for credit losses decreased to $7.5 million from $19.5 million in the third quarter, reflecting improved asset quality[14]. - Provision for credit losses decreased significantly by 61.54% from the previous quarter to $7,500 thousand[30]. - Provision for credit losses rose by 55.91% to $36,250,000, up from $23,250,000 in 2023[33]. - Nonperforming loans totaled $101,529,000, an increase from $54,383,000 in 2023[37]. Equity and Capital - Stockholders' equity increased by $16.0 million, or 0.5%, to $3.4 billion, with a book value per share of $70.43[9]. - Total stockholders' equity rose to $2,993,120 thousand, a slight increase of 0.54% compared to the previous quarter[28]. - Common equity tier 1 capital ratio improved to 14.64% from 14.19% in the previous year[40]. - Tangible common equity was reported at $1,995,764 for 2024, compared to $1,891,989 in 2023, reflecting a tangible common equity to tangible assets ratio of 10.86%[54]. Operational Efficiency - The efficiency ratio (GAAP) was reported at 60.18%, indicating an increase from 57.31% in the previous quarter[32]. - The efficiency ratio (GAAP) for Q4 2024 was 60.18%, up from 56.87% in Q4 2023, indicating increased operational costs relative to revenue[58]. - Noninterest expense on an operating basis (Non-GAAP) increased to $104,520,000 in Q4 2024, compared to $100,747,000 in Q4 2023, reflecting a 3.0% rise[57]. Market and Regulatory Environment - The company is facing risks related to regulatory changes and increased competition in the financial services market[25]. - The company emphasizes the importance of non-GAAP measures for evaluating financial performance, which may not be comparable to other companies[25].

Core Viewpoint - Independent Bank Corp. (INDB) is expected to report a decline in quarterly earnings and revenues compared to the previous year, with earnings per share projected at $1.16, down 7.9%, and revenues forecasted at $175.82 million, down 0.8% [1] Earnings Estimates - The consensus EPS estimate for the quarter has not changed in the past 30 days, indicating that analysts have not revised their projections [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3] Key Metrics - Analysts estimate an 'Efficiency Ratio' of 58.0%, up from 56.9% in the same quarter last year [5] - The 'Net Interest Margin (FTE)' is projected at 3.3%, slightly down from 3.4% year-over-year [5] - The 'Average Balance - Total Interest-Earning Assets' is expected to be $17.37 billion, an increase from $17.18 billion a year ago [6] - 'Total Non-Interest Income' is forecasted to reach $33.16 million, up from $32.07 million in the same quarter last year [6] Income Projections - 'Net Interest Income' is projected at $142.43 million, down from $145.10 million year-over-year [7] - 'Interchange and ATM Fees' are expected to be $4.94 million, up from $4.64 million in the same quarter last year [7] - 'Deposit Account Fees' are estimated at $6.55 million, compared to $6.13 million a year ago [7] - 'Other Noninterest Income' is projected at $6.67 million, down from $7.80 million year-over-year [8] - 'Investment Management' income is expected to reach $11.07 million, up from $9.82 million in the previous year [8] Stock Performance - Shares of Independent Bank Corp. have decreased by 14.8% over the past month, contrasting with a 2.2% decline in the Zacks S&P 500 composite [9] - With a Zacks Rank 2 (Buy), INDB is anticipated to outperform the overall market in the near future [9]

Core Viewpoint - Independent Bank Corp. (INDB) has experienced significant selling pressure, resulting in a 12.9% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously predicted, indicating potential for recovery [1]. Group 1: Technical Analysis - The stock is currently in oversold territory, with a Relative Strength Index (RSI) reading of 22.19, suggesting that the heavy selling may be exhausting itself and a price reversal could occur soon [5]. - RSI is a momentum oscillator that helps identify whether a stock is oversold, typically when the RSI falls below 30, indicating potential entry opportunities for investors [2][3]. Group 2: Fundamental Indicators - There is a consensus among sell-side analysts that earnings estimates for INDB have increased by 1% over the last 30 days, which often correlates with price appreciation in the near term [6]. - INDB holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [7].

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Independent Bank Corp. (INDB) due to lower revenues, with a focus on how actual results will compare to these estimates [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on January 16, 2025, with a consensus EPS estimate of $1.16, reflecting a -7.9% change year-over-year. Revenues are projected at $175.82 million, down 0.8% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly reassessed their initial estimates during this period [4]. Earnings Surprise Prediction - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, suggesting that recent analyst revisions may provide more accurate insights into earnings expectations [6][5]. Earnings ESP Analysis - Independent Bank Corp. has an Earnings ESP of -0.86%, indicating a bearish outlook from analysts. However, the stock holds a Zacks Rank of 2, complicating predictions of an earnings beat [10][11]. Historical Performance - In the last reported quarter, Independent Bank Corp. exceeded the expected EPS of $0.99 by delivering $1.01, resulting in a surprise of +2.02%. Over the last four quarters, the company has beaten consensus EPS estimates three times [12][13]. Conclusion - While the company does not appear to be a strong candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [16].

Financial Position - Total assets increased to $19,408,117 thousand as of September 30, 2024, compared to $19,347,373 thousand on December 31, 2023, reflecting a growth of approximately 0.31%[10] - Total deposits rose to $15,441,023 thousand, up from $14,865,547 thousand, marking an increase of about 3.86%[10] - Net loans reached $14,197,111 thousand, a slight increase from $14,135,848 thousand, representing a growth of approximately 0.43%[10] - Total liabilities decreased slightly to $16,430,969 thousand from $16,452,122 thousand, a decline of approximately 0.13%[12] - Stockholders' equity increased to $2,977,148 thousand from $2,895,251 thousand, reflecting a growth of about 2.83%[12] - The company reported a total of $2,765,575 thousand in securities, down from $2,930,860 thousand, indicating a decrease of approximately 5.63%[10] - Federal Home Loan Bank borrowings decreased significantly to $600,521 thousand from $1,105,541 thousand, a reduction of about 45.40%[12] - The company’s cash and due from banks increased to $198,987 thousand from $178,861 thousand, representing an increase of approximately 11.83%[10] - The total noninterest-bearing demand deposits decreased to $4,519,492 thousand from $4,567,083 thousand, a decline of about 1.04%[12] Income and Earnings - Net income for the three months ended September 30, 2024, was $42,947,000, a decrease of 29.5% from $60,808,000 in the same period of 2023[17] - Net interest income after provision for credit losses was $122,203,000 for the three months ended September 30, 2024, compared to $144,380,000 for the same period in 2023, reflecting a decrease of 15.4%[15] - Total noninterest income for the nine months ended September 30, 2024, was $95,822,000, an increase of 3.5% from $92,542,000 in the same period of 2023[15] - Basic earnings per share for the three months ended September 30, 2024, was $1.01, down from $1.38 in the same period of 2023, representing a decline of 26.8%[15] - Total noninterest expenses for the three months ended September 30, 2024, were $100,443,000, an increase of 2.7% from $97,782,000 in the same period of 2023[15] Credit Losses and Provisions - The allowance for credit losses increased to $163,696 thousand from $142,222 thousand, indicating a rise of about 15.16%[10] - Provision for credit losses increased to $19,500,000 for the three months ended September 30, 2024, compared to $5,500,000 in the same period of 2023, indicating a significant rise in credit loss expectations[15] - The provision for credit losses increased to $28,750 in 2024 from $17,750 in 2023, indicating a rise of 62%[23] - Charge-offs for the three months ended September 30, 2024, totaled $6.018 million, with recoveries amounting to $440, resulting in a net charge-off of $5.578 million[50] Securities and Investments - The total available for sale securities amounted to $1.334 billion as of September 30, 2024, with gross unrealized losses of $87.590 million[34] - U.S. Treasury securities held by the company were valued at $640.913 million as of September 30, 2024, reflecting a gross unrealized loss of $34.007 million[34] - The company reported net gains of $685,000 on equity securities for the three months ended September 30, 2024, compared to a loss of $363,000 for the same period in 2023[32] - The company had no sales of securities available for sale during the three and nine months ended September 30, 2024, and 2023, resulting in no realized gains or losses[35] Loan Portfolio and Quality - The company monitors asset quality using various indicators, categorizing loans based on payment issues and risk ratings[57] - The commercial loan portfolio's pass rating increased to $282,973,000 in 2024 from $188,687,000 in 2023, reflecting a growth of 49.9%[65] - The total commercial and industrial loans reported a loss of $296,851,000 in 2024, compared to $189,042,000 in 2023, indicating a significant increase in losses[65] - The company employs a 10-point credit risk-rating system to assess the risk associated with commercial loans, enhancing its risk management framework[58] Future Strategies and Developments - The company indicated a focus on market expansion and new product development as part of its future strategy[67] - The company plans to enhance its technology research and development efforts to drive growth[67] - The company is exploring potential mergers and acquisitions to strengthen its market position[67] Derivatives and Risk Management - The Company has a total notional amount of $1,400,000,000 in interest rate derivatives, with a fair value loss of $(17,106,000) as of September 30, 2024[102] - The Company utilizes interest rate derivatives to manage interest rate risk associated with its borrowings and loan portfolios[100] - The fair value of the Company's derivative valuations is classified as Level 2, indicating that the majority of inputs used are observable in the market[132] Other Comprehensive Income - The total other comprehensive income (loss) for the three months ended September 30, 2024, was $48,704, with an after-tax amount of $37,023[166] - The total accumulated other comprehensive income (loss) as of September 30, 2024, was $(77,202), compared to $(160,746) as of September 30, 2023[168]

Independent Bank Corp. (NASDAQ:INDB) Q3 2024 Results Conference Call October 18, 2024 10:00 AM ET Company Participants Jeff Tengel - CEO Mark Ruggiero - CFO & Head of Consumer Lending Conference Call Participants Steve Moss - Raymond James Mark Fitzgibbon - Piper Sandler Laurie Hunsicker - Seaport Research Christopher O'Connell - KBW Operator Good day, and welcome to the Independent Bank Corp Third Quarter 2024 Earnings Call Conference Call. All participants will be in listen only mode. [Operator Instructio ...

Independent Bank Corp. (INDB) reported $175.25 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 4.5%. EPS of $1.01 for the same period compares to $1.38 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $173.24 million, representing a surprise of +1.16%. The company delivered an EPS surprise of +2.02%, with the consensus EPS estimate being $0.99. While investors scrutinize revenue and earnings changes year-over-year and how they com ...