This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Expensive Bank Stocks Still Worth Buying (Update 3)

Stocks in this article: BAC C JPM WFC USB CYN TCBI OZRK INDB

5. Independent Bank Corp.

Shares of Independent Bank Corp. (INDB) of Rockland, Mass., closed at $28.97 Monday, rising 6% year-to-date. Based on a 19-cent quarterly payout, the shares have a dividend yield of 2.62%.

Independent Bank Corp. had $5.0 billion in total assets as of Dec. 30, operating 67 Rockland Trust Co. offices in Eastern Massachusetts, as well as a network of loan production offices and investment management offices in Massachusetts and Rhode Island.

The company reported fourth-quarter earnings of $11.2 million, or 52 cents a share, declining from $12.0 million, or 56 cents, the previous quarter, and $11.8 million, or $56 cents a share, a year earlier.

The fourth-quarter results included a $757,000 prepayment penalty "that resulted in a $0.02 per share charge arising from the Company's use of excess cash to pay down borrowings."

Independent Bank Corp.'s net revenue -- tax-adjusted net interest income, plus noninterest income, less noninterest expense, excluding provisions for loan losses -- totaled $19.6 million, increasing 3% from the third quarter, but just 1% from a year earlier.

The company's return on average assets (ROA) has ranged from 0.92% to 1.3% over the past five quarters.

Guggenheim Securities analyst David Darst has a neutral rating on Independent Bank Corp., and while he lowered his 2012 earnings estimate for the company by four cents to $2.13 and his 2013 estimate by a dime to $2.25 on Jan. 23, the analyst raised his price target for the shares to $28, "which represents 13x 2012E EPS and approximates INDB's 5-year median P/E."

The shares trade for 1.9 times tangible book value, according to HighlineFI, and for 14 times the consensus 2012 earnings estimate of $2.12 a share, among analysts polled by Thomson Reuters.

The shares rose 1% on Wednesday, to close at $29.27.

Interested in more on Independent Bank Corp.? See TheStreet Ratings' report card for this stock.

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs