Independent Bank Corp. (INDB) Q3 Earnings Analysis

Independent Bank Corp. (INDB) has recently disclosed its financial results for the third quarter of 2024. The bank reported a total revenue of $175.25 million for the quarter, reflecting a decline of 4.5% compared to the same period last year. The earnings per share (EPS) stood at $1.01, down from $1.38 reported a year earlier.

When looking at the revenue figures, the reported amount surpassed the Wall Street expectations, which had set the Zacks Consensus Estimate at $173.24 million. This resulted in a positive surprise of +1.16%. The EPS also exceeded analyst predictions, with a surprise of +2.02%, as the consensus EPS estimate was $0.99.

Investors often analyze year-over-year revenue and earnings changes alongside Wall Street estimates to gauge a company's performance and guide their investment choices. However, certain key metrics provide a clearer understanding of a company's financial health. These metrics can play an essential role in influencing both revenue and profit margins.

To provide more insight into Independent Bank Corp.'s performance, below is a breakdown of some critical metrics for the latest quarter, compared to estimates and prior year data:

• Efficiency Ratio: The efficiency ratio for INDB stood at 57.3%, which is better than the average estimate of 58.1% based on three analysts.
• Net Interest Margin (FTE): This metric remained stable at 3.3%, aligning perfectly with the consensus estimate of 3.3% from three analysts.
• Average Balance - Total Interest-Earning Assets: The average balance reported was $17.29 billion, slightly below the estimated $17.37 billion average calculated by two analysts.
• Total Non-Interest Income: INDB generated $33.55 million, surpassing the average estimate of $32.26 million from three analysts.
• Increase in Cash Surrender Value of Life Insurance Policies: The increase recorded was $2.01 million, matching the average projection from two analysts.
• Net Interest Income: This stood at $141.70 million, exceeding the estimated $141 million again calculated by two analysts.
• Loan Level Derivative Income: The reported income was $1.13 million, which is higher than the estimate of $0.85 million by two analysts.
• Interchange and ATM Fees: The bank earned $4.97 million from fees, outpacing the expected $4.83 million based on the average estimates of two analysts.
• Deposit Account Fees: This revenue stream generated $6.78 million compared to the estimate of $6.35 million from two analysts.
• Other Non-Interest Income: The company recorded $6.66 million, exceeding the estimated $6.52 million average from two analysts.
• Mortgage Banking Income: This was reported at $0.97 million against the estimated $0.95 million by two analysts.
• Investment Management: The income from this segment was $11.03 million, higher than the two-analyst estimate of $10.75 million.

Investors monitoring Independent Bank Corp.'s stock have observed a return of +3.4% over the past month. This is slightly below the S&P 500 composite's return of +3.8% during the same period. Currently, the stock holds a Zacks Rank of #3 (Hold), suggesting it may perform in line with the market in the near future.

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