Independent Bank Corp. reported Q4 earnings with mixed results, showing slight revenue decline but beating EPS estimates.
Cambridge: Independent Bank Corp. (INDB) just released its Q4 earnings, and the numbers are a bit of a mixed bag. They reported $176.85 million in revenue, which is a tiny dip of 0.2% from last year. Their earnings per share (EPS) came in at $1.21, down from $1.26 a year ago.
Interestingly, they managed to surprise analysts a bit. The revenue was slightly above the expected $175.82 million, giving them a 0.59% surprise. And the EPS beat the consensus estimate of $1.16 by 4.31%.
Investors usually keep a close eye on these headline numbers, but there are other metrics that can give a clearer picture of how the company is really doing. These metrics help in understanding the overall performance and can guide investors in making decisions about the stock.
So, how did Independent Bank Corp. stack up against what analysts were predicting? Here are some key metrics: their efficiency ratio was 60.2%, which was a bit higher than the 58% that analysts expected. The net interest margin was right on target at 3.3%.
They also reported an average balance of $17.42 billion in interest-earning assets, slightly above the $17.37 billion estimate. However, total non-interest income came in lower than expected at $32.19 million, compared to the $33.16 million forecast.
On the bright side, they saw an increase in cash surrender value of life insurance policies, hitting $2.15 million, which was better than the $2.04 million estimate. Their net interest income was also strong at $144.66 million, beating the $142.43 million estimate.
However, not everything was rosy. They fell short on loan level derivative income and interchange fees compared to what analysts had predicted. But they did see a nice bump in mortgage banking income, coming in at $1.06 million, which was above the $0.83 million estimate.
Overall, shares of Independent Bank Corp. have dipped 1.4% over the past month, but they still hold a Zacks Rank #2 (Buy), suggesting they might outperform the market soon.
