Overview

• US regional bank's Q1 net income and EPS rose yr/yr

• Net interest income for Q1 increased 7% from a year ago

• Non-interest expenses rose, driven by higher compensation, advertising, and litigation costs

Outlook

• Company says it continues to monitor geopolitical uncertainty but has not seen direct customer impact

• Independent Bank expects merger with HCB Financial Corp. to enhance shareholder value

Result Drivers

• NET INTEREST INCOME - Growth in net interest income was driven by higher average interest-earning assets and a modest expansion in net interest margin, supported by a decrease in the cost of deposits

• MORTGAGE BANKING REVENUES - Non-interest income rose due to changes in mortgage banking-related revenues, especially a positive swing in the fair value of mortgage servicing rights, despite lower gains on mortgage loan sales

• LOAN AND DEPOSIT GROWTH - Continued growth in loans and core deposits contributed to balance sheet expansion

Company press release: ID:nGNX2BHD2R

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 EPS		$0.81
Q1 Net Income		$16.90 mln
Q1 Net Interest Income		$46.90 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "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 is $37.00, about 10% above its April 22 closing price of $33.63

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

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