Independent Bank's Q3 profit beats estimates on Enterprise Bancorp acquisition boost
Independent Bank reported Q3 net income fell due to merger costs and credit loss provisions, but adjusted EPS of $1.55 beat analyst expectations of $1.53. The acquisition of Enterprise Bancorp significantly boosted loan and deposit balances, improving net interest margin and fee income. Analysts maintain a "buy" rating, with a median 12-month price target of $81.50, reflecting a 16.7% upside from the recent closing price of $67.92.
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Overview
- Independent Bank Q3 net income fell due to merger costs and credit loss provisions
- Adjusted EPS for Q3 beats analyst expectations
- Company’s acquisition of Enterprise Bancorp increased loan and deposit balances significantly
Outlook
- Company did not provide specific future financial guidance
Result Drivers
- MERGER IMPACT - Acquisition of Enterprise Bancorp drove significant increases in loan and deposit balances
- NET INTEREST MARGIN - Improved net interest margin due to Enterprise acquisition and long-term asset repricing
- FEE INCOME - Increased fee income from Enterprise acquisition and higher transaction volumes
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q3 Beat $1.55 $1.53 (4
Adjusted Analysts
EPS )
Q3 EPS $0.69
Q3 Net $34.26
Income mln
Q3 Net $203.34
Interest mln
Income
Q3 Net 3.62%
Interest
Margin
Analyst Coverage
- The current average analyst rating on the shares is “buy” and the breakdown of recommendations is 2 “strong buy” or “buy”, 2 “hold” and no “sell” or “strong sell”
- The average consensus recommendation for the banks peer group is “buy”
- Wall Street’s median 12-month price target for Independent Bank Corp (Massachusetts) is $81.50, about 16.7% above its October 15 closing price of $67.92
- The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
