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what it is
Independent Bank takes deposits, makes loans, and sells a few fee-based services across Michigan’s Lower Peninsula.
how it gets paid
Last year Indep Bank /Mi made $32M in revenue. commercial lending services was the main engine at $11.2M, or 35% of sales.
why it's growing
Revenue grew 0.3% last year. The real number was $0.89 of EPS, because a bank can post noisy revenue but shareholders still get paid from earnings.
what just happened
Revenue hit $24M and EPS reached $0.89.
At a glance
B+ balance sheet — decent shape, but not bulletproof
85/100 earnings predictability — you can trust these numbers
11.0x trailing p/e — the market's not buying it — or you found a deal
3.4% dividend yield — cash in your pocket every quarter
$3.28 fy2025 eps est
xvary composite: 66/100 — average
What they do
Independent Bank takes deposits, makes loans, and sells a few fee-based services across Michigan’s Lower Peninsula.
This is a local scale game. Independent Bank runs about 61 branches across Michigan’s Lower Peninsula with $5.42 billion in assets, which means your checking account, mortgage, and small-business loan can sit under one roof. Deposits → customer cash parked at the bank → so what: cheaper funding helps a bank keep more of each loan dollar.
How they make money
$32M
annual revenue · their business grew +0.3% last year
commercial lending services
$11.2M
consumer financing
$7.0M
mortgage lending services
$4.8M
deposit account and treasury fees
$4.2M
title, investment, and insurance services
$4.8M
The products that matter
makes the loan book work
Commercial & Consumer Lending
drives the $178M core income stream
this is the engine behind most of the bank's $178M in net interest income. if loan growth stays solid, it gives management room to absorb pressure elsewhere.
core revenue driver
funds the balance sheet
Deposit Services
supports a 31% net margin
deposits are the raw material. low-cost funding matters because a bank keeping 31 cents of every revenue dollar does not want its funding costs drifting the wrong way.
margin support
manages excess liquidity
Investment Securities Portfolio
$120M matures in 2026
this is the swing factor. a $120M portion is set to mature and run off in 2026, which means management gets a fresh shot at reinvestment — and no place to hide if the math gets worse.
2026 catalyst
Key numbers
$3.28
fy2025 eps
EPS → profit per share → so what: the FY2025 estimate is $3.28 versus $3.16 in FY2024, or about 3.8% growth while the stock trades at 11.0x earnings.
11.0x
trailing p/e
P/E → price compared with yearly profit → so what: you are paying 11 years of trailing earnings for a bank with a 3.4% dividend yield.
3.4%
dividend yield
Dividend yield → cash paid to you each year as a share of price → so what: you get paid while waiting for the market to rerate the stock.
$124M
long-term debt
Long-term debt → money owed beyond one year → so what: at 15% of capital, leverage looks restrained for a bank this size.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 2 — safer than 80% of stocks
- price stability 65 / 100
- long-term debt $124M (15% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for IBCP right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Revenue hit $24M and EPS reached $0.89.
Quarterly revenue rose 171% vs. prior year, while EPS increased 2% vs. prior year. That is a weird mix: sales surged, but profit barely moved, which tells you margins and funding costs still matter more than headline growth.
$24M
revenue
$0.89
eps
n/a
n/a
the number that mattered
The real number was $0.89 of EPS, because a bank can post noisy revenue but shareholders still get paid from earnings.
source: company earnings report, 2026
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What could go wrong
the #1 risk is reinvesting $120M of maturing securities at weaker yields. for IBCP, that is not a side issue — it sits right inside the earnings engine.
med
bond portfolio reinvestment
$120M of bonds mature in 2026. if that cash goes back to work at lower yields than the existing book, net interest income takes the hit first.
this directly pressures the revenue mix that is already 84% net interest income.
med
michigan economic concentration
this is a local bank with a local footprint. if Michigan credit conditions worsen, loan growth and credit quality can deteriorate together.
there is no geographic diversification story here to bail you out.
low
funding cost pressure
deposit pricing and Federal Reserve policy are outside management's control. if funding costs stay higher for longer, a 31% net margin gets harder to defend.
cheap stocks stay cheap when margins drift down a little at a time.
low
non-interest income softness
non-interest income fell 8.1% to $34M. it is only 16% of revenue, but it is one of the few pieces of the business not tied directly to spread income.
if fee income keeps shrinking, the bank becomes even more rate-sensitive.
your thesis depends on management protecting a 31% net margin while a meaningful chunk of the securities book resets. if that margin slips and the valuation discount stays, the stock can remain merely cheap.
source: institutional data · regulatory filings · risk analysis
Pay attention to
margin math
quarterly net interest income
net interest income is $178M, or 84% of revenue. if that line starts softening as the securities book rolls over, the market will notice before management finishes explaining it.
calendar
q4 2025 earnings release
this should give you the next read on loan growth, funding costs, and whether management is still sounding calm about the 2026 runoff.
runoff trend
quarterly securities runoff
management said the $120M runoff is spread roughly evenly across four quarters. that gives you a clean sequence to track, not one giant guess.
capital return
1.1M-share buyback execution
repurchasing stock near $36 can help if management stays disciplined. if they slow-walk it, that tells you something too.
Analyst rankings
earnings predictability
85 / 100
management has delivered fairly consistent numbers. in human-speak, analysts think this bank is easier to model than most small financial stocks.
risk rank
2
that means safer than about 80% of stocks in this framework. not risk-free — just lower drama than the average ticker.
source: institutional data
Institutional activity
institutional ownership data for IBCP is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$36
current price
n/a
target midpoint · n/a from current
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