Independent Bank Corp. Reports Second Quarter Net Income of $51.1 Million
In consideration of the Company's current strong capital position, the Company is announcing a new stock repurchase plan, which authorizes repurchases by the Company of up to $150 million in common stock and is scheduled to expire on July 16, 2026.
CEO STATEMENT
"We are pleased with our second quarter results and the momentum of our franchise heading into the third quarter," said Jeffrey Tengel, the Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company. "We closed the Enterprise Bancorp acquisition and welcomed many new colleagues to Rockland Trust on the first day of the third quarter, and are focused on completing the core operating conversion in October 2025."
FINANCIAL HIGHLIGHTS
The Company generated a return on average assets and a return on average common equity of 1.04% and 6.68%, respectively, for the second quarter of 2025, as compared to 0.93% and 5.94%, respectively, for the prior quarter. On an operating basis, the Company generated a return on average assets and a return on average common equity of 1.09% and 6.99%, respectively, for the second quarter of 2025, as compared to 0.94% and 6.05%, respectively, for the prior quarter(1).
The Company's net interest margin of 3.37% decreased 5 basis points compared to the prior quarter, while the core margin was unchanged from prior quarter at 3.37%(1).
Deposit balances of $15.9 billion at June 30, 2025 increased $217.7 million, or 1.4% (5.6% annualized), from the first quarter of 2025.
Loan balances of $14.5 billion at June 30, 2025 increased $41.9 million, or 0.3% (1.2% annualized), from the first quarter of 2025.
Tangible book value of $48.80 per share at June 30, 2025 grew by $0.99 from the prior quarter(1).
BALANCE SHEET
Total assets of $20.0 billion at June 30, 2025 increased $160.7 million, or 0.8% (3.2% annualized), compared to the prior quarter, driven primarily by increased cash balances from deposit inflows.
Total loans of $14.5 billion at June 30, 2025 increased $41.9 million, or 0.3% (1.2% annualized):
On the commercial side, solid growth within the commercial and industrial portfolio of $105.0 million, or 3.4% (13.5% annualized), was offset by a decreases in the commercial real estate category while construction remained relatively flat.
On the consumer side, the total loan portfolio grew by $48.8 million, or 1.3% (5.4% annualized), from the prior quarter, reflecting strong closing activity and increased home equity line utilization.
Total deposits increased by $217.7 million, or 1.4% (5.6% annualized), to $15.9 billion at June 30, 2025, as compared to the prior quarter, while average deposit balances increased by $116.5 million, or 0.8%, for the second quarter of 2025 to $15.6 billion as compared to the prior quarter:
Robust growth was driven by increases in the municipal and business categories, partially offset by a modest decrease in interest bearing consumer balances.
Overall core deposits stayed consistent at 82.8% of total deposits at June 30, 2025, as compared to 82.7% at March 31, 2025.
Total noninterest bearing demand deposits increased to 28.5% of total deposits at June 30, 2025, compared to 28.1% at March 31, 2025.
The total cost of deposits for the second quarter of 1.54% decreased 2 basis points compared to the prior quarter.
Total period end borrowings declined by $100.4 million, or 11.7%, during the second quarter of 2025:
The Company paid off $100.0 million in Federal Home Loan Bank borrowings during the quarter.
The Company's securities portfolio remained at $2.7 billion for the second quarter of 2025:
New purchases of $50.8 million and unrealized gains of $12.7 million in the available for sale portfolio were offset by maturities, calls, and paydowns in the combined available for sale and held to maturity portfolios during the quarter.
Total securities represented 13.4% and 13.7% of total assets at June 30, 2025 and March 31, 2025, respectively.
Stockholders' equity at June 30, 2025 increased $41.5 million, or 1.4%, compared to March 31, 2025, driven by strong earnings retention and unrealized gains on the available for sale investment securities portfolio included in other comprehensive income:
The Company's ratio of common equity to assets of 15.34% at June 30, 2025 represented an increase of 9 basis points from March 31, 2025.
The Company's ratio of tangible common equity to tangible assets of 10.92% at June 30, 2025 represented an increase of 14 basis points from the prior quarter and an increase of 50 basis points from the year ago period(1).
The Company's book value per share increased by $0.94, or 1.3%, to $72.13 at June 30, 2025 as compared to the prior quarter.
The Company's tangible book value per share at June 30, 2025 grew by $0.99, or 2.1%, from the prior quarter to $48.80, and grew by 8.0% from the year ago period(1).
NET INTEREST INCOME
Net interest income for the second quarter of 2025 increased to $147.5 million, as compared to $145.5 million for the prior quarter.
The net interest margin of 3.37% decreased 5 basis points when compared to the prior quarter, while the core margin of 3.37% remained consistent with the prior quarter(1). The second quarter margin was positively impacted by asset repricing benefit, time deposit repricing, and a favorable mix in overall funding, offset by a full quarter of expense related to the March 2025 subordinated debt raise.
Total loan yields increased to 5.50% from 5.49%, with the prior quarter yields reflecting a 5 basis point benefit from non-core adjustments. Securities yields increased 7 basis points to 2.32% for the current quarter as compared to the prior quarter.
The Company's overall cost of funding increased by 6 basis points to 1.73% for the second quarter of 2025, reflecting increased borrowing expense associated with the first quarter subordinated debt raise, offset by a 2 basis point reduction in the cost of deposits.
NONINTEREST INCOME
Noninterest income of $34.3 million for the second quarter of 2025 represented an increase of $1.8 million, or 5.4%, as compared to the prior quarter. Significant changes in noninterest income for the second quarter of 2025 compared to the prior quarter included the following:
Interchange and ATM fees increased by $375,000, or 8.1%, driven by increased transaction volume during the second quarter of 2025.
Overall investment and advisory income increased by $160,000, or 1.4%, driven by seasonal tax preparation fees, offset by slightly lower asset-based revenue as average assets under administration remained relatively consistent. However, recent market gains drove an increase in total assets under administration of $261.7 million, or 3.7%, during the quarter to $7.4 billion at June 30, 2025.
Mortgage banking income grew $331,000, or 44.7%, due to higher origination volume.
The Company received proceeds on life insurance policies resulting in a gain of $1.7 million for the second quarter of 2025. No such gains were recognized during the first quarter of 2025.
Loan level derivative income decreased by $976,000, or 93.7%, reflecting volatility in customer demand.
NONINTEREST EXPENSE
Noninterest expense of $108.8 million for the second quarter of 2025 represented an increase of $2.9 million, or 2.8%, as compared to the prior quarter. Significant changes in noninterest expense for the second quarter of 2025 compared to the prior quarter included the following:
Salaries and employee benefits increased by $925,000, or 1.5%, driven by annual merit increases in general salaries, medical insurance, equity compensation, and commissions, partially offset by decreased payroll taxes.
Occupancy and equipment expenses decreased by $701,000, or 5.1%, driven by decreased snow removal and utilities costs.
FDIC assessment decreased $615,000, or 20.6%, driven by improved metrics resulting in a reduced assessment rate as well as timing differences.
The Company incurred merger and acquisition expenses of $2.2 million in the second quarter of 2025 and $1.2 million in the first quarter of 2025, all of which were related to the Company's acquisition of Enterprise.
Other noninterest expense increased by $2.1 million, or 9.0%, driven primarily by director annual equity compensation of $832,000 granted during the quarter, and increases in check and fraud losses of $645,000, professional fees of $512,000, and advertising costs of $352,000.
The Company's tax rate of 22.35% for the second quarter of 2025 remained consistent with the prior quarter.
ASSET QUALITY
During the second quarter, the Company's key asset quality activity and metrics were as follows:
Nonperforming loans decreased to $56.2 million at June 30, 2025, as compared to $89.5 million at March 31, 2025, representing 0.39% and 0.62% of total loans, respectively, driven primarily by the resolution of two of its larger nonperforming balances from the prior quarter.
Delinquencies as a percentage of total loans decreased 27 basis points from the prior quarter to 0.20% at June 30, 2025, primarily driven by the modification of a large non-performing loan executed during the second quarter.
Net charge-offs decreased to $6.5 million, as compared to $40.9 million for the prior quarter, representing 0.18% and 1.14%, respectively, of average loans annualized. The 2025 first quarter charge-offs were primarily attributable to three classified commercial loans.
The second quarter provision for credit losses decreased to $7.2 million, as compared to $15.0 million for the prior quarter, driven by lower charge-off activity.
The allowance for credit losses on total loans increased slightly to $144.8 million at June 30, 2025 compared to $144.1 million at March 31, 2025, and represented 1.00% and 0.99% of total loans at June 30, 2025 and March 31, 2025, respectively.
(1)
Represents a non-GAAP measure. See Appendices A through C for reconciliation of the corresponding GAAP measures.
CONFERENCE CALL INFORMATION
Jeffrey Tengel, Chief Executive Officer, and Mark Ruggiero, Chief Financial Officer and Executive Vice President of Consumer Lending, will host a conference call to discuss second quarter earnings at 10:00 a.m. Eastern Time on Friday, July 18, 2025. Internet access to the call is available on the Company's website at https://INDB.RocklandTrust.com or via telephonic access by dial-in at 1-888-336-7153 reference: INDB. A replay of the call will be available by calling 1-877-344-7529, Replay Conference Number: 5907181 and will be available through July 25, 2025. Additionally, a webcast replay will be available on the Company's website until July 18, 2026.
ABOUT INDEPENDENT BANK CORP.
Independent Bank Corp. (Nasdaq Global Select Market: INDB) is the holding company for Rockland Trust Company, a full-service commercial bank headquartered in Massachusetts. With retail branches in Eastern Massachusetts, Worcester County, and Southern New Hampshire as well as commercial banking and investment management offices in Massachusetts, New Hampshire, and Rhode Island. Rockland Trust offers a wide range of banking, investment, and insurance services to individuals, families, and businesses. Rockland Trust also offers a full suite of mobile, online, and telephone banking services. Rockland Trust is an FDIC member and an Equal Housing Lender.
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations and business of the Company. These statements may be identified by such forward-looking terminology as "expect," "achieve," "plan," "believe," "future," "positioned," "continued," "will," "would," "potential," or similar statements or variations of such terms. Actual results may differ from those contemplated by these forward-looking statements.
Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to:
adverse economic conditions in the regional and local economies within the New England region and the Company's market area;
events impacting the financial services industry, including high profile bank failures, and any resulting decreased confidence in banks among depositors, investors, and other counterparties, as well as competition for deposits and significant disruption, volatility and depressed valuations of equity and other securities of banks in the capital markets;
the effects to the Company of an increasingly competitive labor market, including the possibility that the Company will have to devote significant resources to attract and retain qualified personnel;
political and policy uncertainties, changes in U.S. and international trade policies, such as tariffs or other factors, and the potential impact of such factors on the Company and its customers, including the potential for decreases in deposits and loan demand, unanticipated loan delinquencies, loss of collateral and decreased service revenues;
the instability or volatility in financial markets and unfavorable domestic or global general economic, political or business conditions, whether caused by geopolitical concerns, including the Russia/Ukraine conflict, the conflicts in Israel, Iran and surrounding areas and the possible expansion of such conflicts;
unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on the Company's local economies or the Company's business caused by adverse weather conditions and natural disasters, changes in climate, public health crises or other external events and any actions taken by governmental authorities in response to any such events;
adverse changes or volatility in the local real estate market;
changes in interest rates and any resulting impact on interest earning assets and/or interest bearing liabilities, the level of voluntary prepayments on loans and the receipt of payments on mortgage-backed securities, decreased loan demand or increased difficulty in the ability of borrowers to repay variable rate loans;
risks related to the Company's acquisition of Enterprise and acquisitions generally, including disruption to current plans and operations; difficulties in customer and employee retention; fees, expenses and charges related to these transactions being significantly higher than anticipated; unforeseen integration issues or impairment of goodwill and/or other intangibles; and the Company's inability to achieve expected revenues, cost savings, synergies, and other benefits at levels or within the timeframes originally anticipated;
the effect of laws, regulations, new requirements or expectations, or additional regulatory oversight in the highly regulated financial services industry, and the resulting need to invest in technology to meet heightened regulatory expectations, increased costs of compliance or required adjustments to strategy;
changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System;
higher than expected tax expense, including as a result of failure to comply with general tax laws and changes in tax laws;
increased competition in the Company's market areas, including competition that could impact deposit gathering, retention of deposits and the cost of deposits, increased competition due to the demand for innovative products and service offerings, and competition from non-depository institutions which may be subject to fewer regulatory constraints and lower cost structures;
a deterioration in the conditions of the securities markets;
a deterioration of the credit rating for U.S. long-term sovereign debt or uncertainties surrounding the federal budget;
inability to adapt to changes in information technology, including changes to industry accepted delivery models driven by a migration to the internet as a means of service delivery, including any inability to effectively implement new technology-driven products, such as artificial intelligence;
electronic or other fraudulent activity within the financial services industry, especially in the commercial banking sector;
adverse changes in consumer spending and savings habits;
the effect of laws and regulations regarding the financial services industry, including the need to invest in technology to meet heightened regulatory expectations or the introduction of new requirements or expectations resulting in increased costs of compliance or required adjustments to strategy;
changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) generally applicable to the Company's business and the associated costs of such changes;
the Company's potential judgments, claims, damages, penalties, fines and reputational damage resulting from pending or future litigation and regulatory and government actions;
changes in accounting policies, practices and standards, as may be adopted by the regulatory agencies as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters;
operational risks related to the Company and its customers' reliance on information technology; cyber threats, attacks, intrusions, and fraud; and outages or other issues impacting the Company or its third party service providers which could lead to interruptions or disruptions of the Company's operating systems, including systems that are customer facing, and adversely impact the Company's business; and
any unexpected material adverse changes in the Company's operations or earnings.
The Company cautions readers not to place undue reliance on any forward-looking statements as the Company's business and its forward-looking statements involve substantial known and unknown risks and uncertainties described above and in the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q ("Risk Factors"). Except as required by law, the Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise. Any public statements or disclosures by the Company following this release which modify or impact any of the forward-looking statements contained in this release will be deemed to modify or supersede such statements in this release. In addition to the information set forth in this press release, you should carefully consider the Risk Factors.
This press release and the appendices attached to it contain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). This information may include operating net income and operating earnings per share ("EPS"), operating return on average assets, operating return on average common equity, operating return on average tangible common equity, core net interest margin ("core margin"), tangible book value per share and the tangible common equity ratio.
Operating net income, operating EPS, operating return on average assets and operating return on average common equity, exclude items that management believes are unrelated to the Company's core banking business such as merger and acquisition expenses, and other items, if applicable. Management uses operating net income and related ratios and operating EPS to measure the strength of the Company's core banking business and to identify trends that may to some extent be obscured by such items. Management reviews its core margin to determine any items that may impact the net interest margin that may be one-time in nature or not reflective of its core operating environment, such as significant purchase accounting adjustments or other adjustments such as nonaccrual interest reversals/recoveries and prepayment penalties. Management believes that adjusting for these items to arrive at a core margin provides additional insight into the operating environment and how management decisions impact the net interest margin.
Management also supplements its evaluation of financial performance with analysis of tangible book value per share (which is computed by dividing stockholders' equity less goodwill and identifiable intangible assets, or "tangible common equity," by common shares outstanding), the tangible common equity ratio (which is computed by dividing tangible common equity by "tangible assets," defined as total assets less goodwill and other intangibles), and return on average tangible common equity (which is computed by dividing net income by average tangible common equity). The Company has included information on tangible book value per share, the tangible common equity ratio and return on average tangible common equity because management believes that investors may find it useful to have access to the same analytical tools used by management. As a result of merger and acquisition activity, the Company has recognized goodwill and other intangible assets in conjunction with business combination accounting principles. Excluding the impact of goodwill and other intangibles in measuring asset and capital values for the ratios provided, along with other bank standard capital ratios, provides a framework to compare the capital adequacy of the Company to other companies in the financial services industry.
These non-GAAP measures should not be viewed as a substitute for operating results and other financial measures determined in accordance with GAAP. An item which management excludes when computing these non-GAAP measures can be of substantial importance to the Company's results for any particular quarter or year. The Company's non-GAAP performance measures, including operating net income, operating EPS, operating return on average assets, operating return on average common equity, core margin, tangible book value per share and the tangible common equity ratio, are not necessarily comparable to non-GAAP performance measures which may be presented by other companies.
Category: Earnings Releases
INDEPENDENT BANK CORP. FINANCIAL SUMMARY
CONSOLIDATED BALANCE SHEETS
(Unaudited, dollars in thousands)
% Change
% Change
June 30 2025
March 31 2025
June 30 2024
Jun 2025 vs.
Jun 2025 vs.
Mar 2025
Jun 2024
Assets
Cash and due from banks
$
219,414
$
214,616
$
192,845
2.24
%
13.78
%
Interest-earning deposits with banks
681,820
502,228
121,036
35.76
%
463.32
%
Securities
Trading
4,801
4,816
4,384
(0.31
)%
9.51
%
Equities
21,258
21,250
21,028
0.04
%
1.09
%
Available for sale
1,286,318
1,283,767
1,220,656
0.20
%
5.38
%
Held to maturity
1,382,903
1,409,959
1,519,655
(1.92
)%
(9.00
)%
Total securities
2,695,280
2,719,792
2,765,723
(0.90
)%
(2.55
)%
Loans held for sale
16,792
8,524
17,850
97.00
%
(5.93
)%
Loans
Commercial and industrial
3,215,480
3,110,432
3,009,469
3.38
%
6.85
%
Commercial real estate
6,525,438
6,651,475
6,745,088
(1.89
)%
(3.26
)%
Commercial construction
798,808
796,162
786,743
0.33
%
1.53
%
Small business
300,543
289,148
269,270
3.94
%
11.61
%
Total commercial
10,840,269
10,847,217
10,810,570
(0.06
)%
0.27
%
Residential real estate
2,489,166
2,465,731
2,439,646
0.95
%
2.03
%
Home equity - first position
479,641
484,384
504,403
(0.98
)%
(4.91
)%
Home equity - subordinate positions
688,456
659,582
612,404
4.38
%
12.42
%
Total consumer real estate
3,657,263
3,609,697
3,556,453
1.32
%
2.83
%
Other consumer
36,296
35,055
33,919
3.54
%
7.01
%
Total loans
14,533,828
14,491,969
14,400,942
0.29
%
0.92
%
Less: allowance for credit losses
(144,773
)
(144,092
)
(150,859
)
0.47
%
(4.03
)%
Net loans
14,389,055
14,347,877
14,250,083
0.29
%
0.98
%
Federal Home Loan Bank stock
21,052
25,804
32,738
(18.42
)%
(35.70
)%
Bank premises and equipment, net
188,883
190,007
191,303
(0.59
)%
(1.27
)%
Goodwill
985,072
985,072
985,072
—
%
—
%
Other intangible assets
9,742
10,941
15,161
(10.96
)%
(35.74
)%
Cash surrender value of life insurance policies
305,077
306,077
300,111
(0.33
)%
1.65
%
Other assets
536,747
577,271
539,115
(7.02
)%
(0.44
)%
Total assets
$
20,048,934
$
19,888,209
$
19,411,037
0.81
%
3.29
%
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing demand deposits
$
4,525,907
$
4,409,878
$
4,418,891
2.63
%
2.42
%
Savings and interest checking
5,279,280
5,279,549
5,241,154
(0.01
)%
0.73
%
Money market
3,368,354
3,277,078
3,058,109
2.79
%
10.14
%
Time certificates of deposit
2,720,199
2,709,512
2,691,433
0.39
%
1.07
%
Total deposits
15,893,740
15,676,017
15,409,587
1.39
%
3.14
%
Borrowings
Federal Home Loan Bank borrowings
400,500
500,506
630,527
(19.98
)%
(36.48
)%
Junior subordinated debentures, net
62,861
62,861
62,859
—
%
—
%
Subordinated debentures, net
296,067
296,507
—
(0.15
)%
100.00
%
Total borrowings
759,428
859,874
693,386
(11.68
)%
9.52
%
Total deposits and borrowings
16,653,168
16,535,891
16,102,973
0.71
%
3.42
%
Other liabilities
320,910
318,926
388,815
0.62
%
(17.46
)%
Total liabilities
16,974,078
16,854,817
16,491,788
0.71
%
2.92
%
Stockholders' equity
Common stock
424
424
423
—
%
0.24
%
Additional paid in capital
1,914,556
1,911,162
1,904,869
0.18
%
0.51
%
Retained earnings
1,217,959
1,192,008
1,128,182
2.18
%
7.96
%
Accumulated other comprehensive loss, net of tax
(58,083
)
(70,202
)
(114,225
)
(17.26
)%
(49.15
)%
Total stockholders' equity
3,074,856
3,033,392
2,919,249
1.37
%
5.33
%
Total liabilities and stockholders' equity
$
20,048,934
$
19,888,209
$
19,411,037
0.81
%
3.29
%
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, dollars in thousands, except per share data)
Three Months Ended
% Change
% Change
June 30 2025
March 31 2025
June 30 2024
Jun 2025 vs.
Jun 2025 vs.
Mar 2025
Jun 2024
Interest income
Interest on federal funds sold and short-term investments
$
4,393
$
1,438
$
397
205.49
%
1,006.55
%
Interest and dividends on securities
15,881
15,297
13,994
3.82
%
13.48
%
Interest and fees on loans
197,778
195,093
197,274
1.38
%
0.26
%
Interest on loans held for sale
140
92
199
52.17
%
(29.65
)%
Total interest income
218,192
211,920
211,864
2.96
%
2.99
%
Interest expense
Interest on deposits
59,843
59,436
61,469
0.68
%
(2.65
)%
Interest on borrowings
10,853
6,979
12,469
55.51
%
(12.96
)%
Total interest expense
70,696
66,415
73,938
6.45
%
(4.38
)%
Net interest income
147,496
145,505
137,926
1.37
%
6.94
%
Provision for credit losses
7,200
15,000
4,250
(52.00
)%
69.41
%
Net interest income after provision for credit losses
140,296
130,505
133,676
7.50
%
4.95
%
Noninterest income
Deposit account fees
7,141
7,053
6,332
1.25
%
12.78
%
Interchange and ATM fees
4,997
4,622
4,753
8.11
%
5.13
%
Investment management and advisory
11,380
11,220
10,987
1.43
%
3.58
%
Mortgage banking income
1,072
741
1,320
44.67
%
(18.79
)%
Increase in cash surrender value of life insurance policies
2,038
2,065
2,000
(1.31
)%
1.90
%
Gain on life insurance benefits
1,650
—
—
100.00
%
100.00
%
Loan level derivative income
66
1,042
473
(93.67
)%
(86.05
)%
Other noninterest income
5,964
5,796
6,465
2.90
%
(7.75
)%
Total noninterest income
34,308
32,539
32,330
5.44
%
6.12
%
Noninterest expenses
Salaries and employee benefits
62,856
61,931
57,162
1.49
%
9.96
%
Occupancy and equipment expenses
13,158
13,859
12,472
(5.06
)%
5.50
%
Data processing and facilities management
2,783
2,642
2,405
5.34
%
15.72
%
FDIC assessment
2,373
2,988
2,694
(20.58
)%
(11.92
)%
Merger and acquisition expense
2,239
1,155
—
93.85
%
100.00
%
Other noninterest expenses
25,389
23,303
24,881
8.95
%
2.04
%
Total noninterest expenses
108,798
105,878
99,614
2.76
%
9.22
%
Income before income taxes
65,806
57,166
66,392
15.11
%
(0.88
)%
Provision for income taxes
14,705
12,742
15,062
15.41
%
(2.37
)%
Net Income
$
51,101
$
44,424
$
51,330
15.03
%
(0.45
)%
Weighted average common shares (basic)
42,623,978
42,550,274
42,468,658
Common share equivalents
17,153
22,353
4,308
Weighted average common shares (diluted)
42,641,131
42,572,627
42,472,966
Basic earnings per share
$
1.20
$
1.04
$
1.21
15.38
%
(0.83
)%
Diluted earnings per share
$
1.20
$
1.04
$
1.21
15.38
%
(0.83
)%
Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):
Net income
$
51,101
$
44,424
$
51,330
Noninterest expense components
Add - merger and acquisition expenses
2,239
1,155
—
Noncore increases to income before taxes
2,239
1,155
—
Net tax benefit associated with noncore items (1)
(544
)
(325
)
—
Add - adjustment for tax effect of previously incurred merger and acquisition expenses
657
—
—
Total tax impact
113
(325
)
—
Noncore increases to net income
2,352
830
—
Operating net income (Non-GAAP)
$
53,453
$
45,254
$
51,330
18.12
%
4.14
%
Diluted earnings per share, on an operating basis (Non-GAAP)
$
1.25
$
1.06
$
1.21
17.92
%
3.31
%
(1) The net tax benefit associated with noncore items is determined by assessing whether each noncore item is included or excluded from net taxable income and applying the Company's combined marginal tax rate to only those items included in net taxable income.
Performance ratios
Net interest margin (FTE)
3.37
%
3.42
%
3.25
%
Return on average assets (calculated by dividing net income by average assets) (GAAP)
1.04
%
0.93
%
1.07
%
Return on average assets on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average assets)
1.09
%
0.94
%
1.07
%
Return on average common equity (calculated by dividing net income by average common equity) (GAAP)
6.68
%
5.94
%
7.10
%
Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average common equity)
6.99
%
6.05
%
7.10
%
Return on average tangible common equity (Non-GAAP) (calculated by dividing net income by average tangible common equity)
9.89
%
8.85
%
10.83
%
Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average tangible common equity)
10.35
%
9.01
%
10.83
%
Noninterest income as a % of total revenue (GAAP) (calculated by dividing total noninterest income by net interest income plus total noninterest income)
18.87
%
18.28
%
18.99
%
Noninterest income as a % of total revenue on an operating basis (Non-GAAP) (calculated by dividing total noninterest income on an operating basis by net interest income plus total noninterest income)
18.87
%
18.28
%
18.99
%
Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)
59.84
%
59.47
%
58.51
%
Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)
58.61
%
58.82
%
58.51
%
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, dollars in thousands, except per share data)
Six Months Ended
% Change
June 30 2025
June 30 2024
Jun 2025 vs.
Jun 2024
Interest income
Interest on federal funds sold and short-term investments
$
5,831
$
880
562.61
%
Interest and dividends on securities
31,178
28,226
10.46
%
Interest and fees on loans
392,871
390,500
0.61
%
Interest on loans held for sale
232
303
(23.43
)%
Total interest income
430,112
419,909
2.43
%
Interest expense
Interest on deposits
119,279
115,789
3.01
%
Interest on borrowings
17,832
28,755
(37.99
)%
Total interest expense
137,111
144,544
(5.14
)%
Net interest income
293,001
275,365
6.40
%
Provision for credit losses
22,200
9,250
140.00
%
Net interest income after provision for credit losses
270,801
266,115
1.76
%
Noninterest income
Deposit account fees
14,194
12,560
13.01
%
Interchange and ATM fees
9,619
9,205
4.50
%
Investment management and advisory
22,600
20,928
7.99
%
Mortgage banking income
1,813
2,116
(14.32
)%
Increase in cash surrender value of life insurance policies
4,103
3,928
4.46
%
Gain on life insurance benefits
1,650
263
527.38
%
Loan level derivative income
1,108
553
100.36
%
Other noninterest income
11,760
12,720
(7.55
)%
Total noninterest income
66,847
62,273
7.35
%
Noninterest expenses
Salaries and employee benefits
124,787
114,336
9.14
%
Occupancy and equipment expenses
27,017
25,939
4.16
%
Data processing and facilities management
5,425
4,888
10.99
%
FDIC assessment
5,361
5,676
(5.55
)%
Merger and acquisition expense
3,394
—
100.00
%
Other noninterest expenses
48,692
48,662
0.06
%
Total noninterest expenses
214,676
199,501
7.61
%
Income before income taxes
122,972
128,887
(4.59
)%
Provision for income taxes
27,447
29,787
(7.86
)%
Net Income
$
95,525
$
99,100
(3.61
)%
Weighted average common shares (basic)
42,587,330
42,511,186
Common share equivalents
19,753
8,592
Weighted average common shares (diluted)
42,607,083
42,519,778
Basic earnings per share
$
2.24
$
2.33
(3.86
)%
Diluted earnings per share
$
2.24
$
2.33
(3.86
)%
Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):
Net Income
$
95,525
$
99,100
Noninterest expense components
Add - merger and acquisition expenses
3,394
—
Noncore increases to income before taxes
3,394
—
Net tax benefit associated with noncore items (1)
(593
)
—
Add - adjustment for tax effect of previously incurred merger and acquisition expenses
381
—
Total tax impact
(212
)
—
Noncore increases to net income
3,182
—
Operating net income (Non-GAAP)
$
98,707
$
99,100
(0.40
)%
Diluted earnings per share, on an operating basis (Non-GAAP)
$
2.32
$
2.33
(0.43
)%
(1) The net tax benefit associated with noncore items is determined by assessing whether each noncore item is included or excluded from net taxable income and applying the Company's combined marginal tax rate to only those items included in net taxable income.
Performance ratios
Net interest margin (FTE)
3.40
%
3.24
%
Return on average assets (GAAP) (calculated by dividing net income by average assets)
0.98
%
1.03
%
Return on average assets on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average assets)
1.02
%
1.03
%
Return on average common equity (GAAP) (calculated by dividing net income by average common equity)
6.32
%
6.87
%
Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average common equity)
6.53
%
6.87
%
Return on average tangible common equity (Non-GAAP) (calculated by dividing net income by average tangible common equity)
9.38
%
10.49
%
Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average tangible common equity)
9.69
%
10.49
%
Noninterest income as a % of total revenue (GAAP) (calculated by dividing total noninterest income by net interest income plus total noninterest income)
18.58
%
18.44
%
Noninterest income as a % of total revenue on an operating basis (Non-GAAP) (calculated by dividing total noninterest income on an operating basis by net interest income plus total noninterest income)
18.58
%
18.44
%
Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)
59.66
%
59.09
%
Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)
58.71
%
59.09
%
ASSET QUALITY
(Unaudited, dollars in thousands)
Nonperforming Assets At
June 30 2025
March 31 2025
June 30 2024
Nonperforming loans
Commercial & industrial loans
$
13,544
$
9,683
$
17,897
Commercial real estate loans
28,717
65,840
23,375
Small business loans
173
156
437
Residential real estate loans
10,013
10,966
10,629
Home equity
3,765
2,840
5,090
Other consumer
5
8
23
Total nonperforming loans
56,217
89,493
57,451
Other real estate owned
2,100
—
110
Total nonperforming assets
$
58,317
$
89,493
$
57,561
Nonperforming loans/gross loans
0.39
%
0.62
%
0.40
%
Nonperforming assets/total assets
0.29
%
0.45
%
0.30
%
Allowance for credit losses/nonperforming loans
257.53
%
161.01
%
262.59
%
Allowance for credit losses/total loans
1.00
%
0.99
%
1.05
%
Delinquent loans/total loans
0.20
%
0.47
%
0.37
%
Nonperforming Assets Reconciliation for the Three Months Ended
June 30 2025
March 31 2025
June 30 2024
Nonperforming assets beginning balance
$
89,493
$
101,529
$
57,051
New to nonperforming
13,411
41,777
6,201
Loans charged-off
(6,966
)
(41,400
)
(808
)
Loans paid-off
(35,977
)
(10,932
)
(3,458
)
Loans transferred to other real estate owned
(2,100
)
—
—
Loans restored to performing status
(1,659
)
(1,356
)
(1,429
)
New to other real estate owned
2,100
—
—
Other
15
(125
)
4
Nonperforming assets ending balance
$
58,317
$
89,493
$
57,561
Net Charge-Offs (Recoveries)
Three Months Ended
Six Months Ended
June 30 2025
March 31 2025
June 30 2024
June 30 2025
June 30 2024
Net charge-offs (recoveries)
Commercial and industrial loans
$
2,742
$
53
$
(2
)
$
2,795
$
(87
)
Commercial real estate loans
3,347
39,996
—
43,343
—
Small business loans
51
99
48
150
118
Home equity
(49
)
78
(137
)
29
(270
)
Other consumer
428
666
430
1,094
852
Total net charge-offs
$
6,519
$
40,892
$
339
$
47,411
$
613
Net charge-offs to average loans (annualized)
0.18
%
1.14
%
0.01
%
0.66
%
0.01
%
BALANCE SHEET AND CAPITAL RATIOS
June 30 2025
March 31 2025
June 30 2024
Gross loans/total deposits
91.44
%
92.45
%
93.45
%
Common equity tier 1 capital ratio (1)
14.70
%
14.52
%
14.40
%
Tier 1 leverage capital ratio (1)
11.44
%
11.43
%
11.09
%
Common equity to assets ratio GAAP
15.34
%
15.25
%
15.04
%
Tangible common equity to tangible assets ratio (2)
10.92
%
10.78
%
10.42
%
Book value per share GAAP
$
72.13
$
71.19
$
68.74
Tangible book value per share (2)
$
48.80
$
47.81
$
45.19
(1) Estimated number for June 30, 2025.
(2) See Appendix A for detailed reconciliation from GAAP to Non-GAAP ratios.
INDEPENDENT BANK CORP. SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited, dollars in thousands)
Three Months Ended
June 30, 2025
March 31, 2025
June 30, 2024
Interest
Interest
Interest
Average
Earned/
Yield/
Average
Earned/
Yield/
Average
Earned/
Yield/
Balance
Paid (1)
Rate
Balance
Paid (1)
Rate
Balance
Paid (1)
Rate
Interest-earning assets
Interest-earning deposits with banks, federal funds sold, and short term investments
$
406,108
$
4,393
4.34
%
$
141,410
$
1,438
4.12
%
$
47,598
$
397
3.35
%
Securities
Securities - trading
4,796
—
—
%
4,513
—
—
%
4,739
—
—
%
Securities - taxable investments
2,737,166
15,879
2.33
%
2,747,039
15,296
2.26
%
2,793,145
13,992
2.01
%
Securities - nontaxable investments (1)
195
2
4.11
%
195
1
2.08
%
189
2
4.26
%
Total securities
$
2,742,157
$
15,881
2.32
%
$
2,751,747
$
15,297
2.25
%
$
2,798,073
$
13,994
2.01
%
Loans held for sale
9,839
140
5.71
%
6,396
92
5.83
%
12,610
199
6.35
%
Loans
Commercial and industrial (1)
3,156,455
47,583
6.05
%
3,045,816
47,283
6.30
%
2,998,465
45,707
6.13
%
Commercial real estate (1)
6,585,559
85,871
5.23
%
6,719,504
84,919
5.13
%
6,698,076
87,047
5.23
%
Commercial construction
809,839
13,766
6.82
%
785,312
13,167
6.80
%
834,876
15,451
7.44
%
Small business
294,562
4,929
6.71
%
290,245
4,778
6.68
%
265,273
4,376
6.63
%
Total commercial
10,846,415
152,149
5.63
%
10,840,877
150,147
5.62
%
10,796,690
152,581
5.68
%
Residential real estate
2,471,810
28,079
4.56
%
2,464,464
27,716
4.56
%
2,427,635
26,472
4.39
%
Home equity
1,160,123
18,144
6.27
%
1,140,190
17,774
6.32
%
1,109,979
18,826
6.82
%
Total consumer real estate
3,631,933
46,223
5.10
%
3,604,654
45,490
5.12
%
3,537,614
45,298
5.15
%
Other consumer
35,850
582
6.51
%
38,618
593
6.23
%
31,019
593
7.69
%
Total loans
$
14,514,198
$
198,954
5.50
%
$
14,484,149
$
196,230
5.49
%
$
14,365,323
$
198,472
5.56
%
Total interest-earning assets
$
17,672,302
$
219,368
4.98
%
$
17,383,702
$
213,057
4.97
%
$
17,223,604
$
213,062
4.98
%
Cash and due from banks
196,147
197,536
178,558
Federal Home Loan Bank stock
22,900
27,646
41,110
Other assets
1,852,397
1,852,073
1,876,081
Total assets
$
19,743,746
$
19,460,957
$
19,319,353
Interest-bearing liabilities
Deposits
Savings and interest checking accounts
$
5,214,871
$
16,553
1.27
%
$
5,222,353
$
16,162
1.26
%
$
5,166,340
$
16,329
1.27
%
Money market
3,295,080
19,090
2.32
%
3,178,879
17,710
2.26
%
2,909,503
17,409
2.41
%
Time deposits
2,705,299
24,200
3.59
%
2,723,975
25,564
3.81
%
2,579,336
27,731
4.32
%
Total interest-bearing deposits
$
11,215,250
$
59,843
2.14
%
$
11,125,207
$
59,436
2.17
%
$
10,655,179
$
61,469
2.32
%
Borrowings
Federal Home Loan Bank borrowings
432,392
4,233
3.93
%
547,713
5,566
4.12
%
957,268
11,329
4.76
%
Junior subordinated debentures
62,861
976
6.23
%
62,860
974
6.28
%
62,859
1,140
7.29
%
Subordinated debentures
296,373
5,644
7.64
%
23,070
439
7.72
%
—
—
—
%
Total borrowings
$
791,626
$
10,853
5.50
%
$
633,643
$
6,979
4.47
%
$
1,020,127
$
12,469
4.92
%
Total interest-bearing liabilities
$
12,006,876
$
70,696
2.36
%
$
11,758,850
$
66,415
2.29
%
$
11,675,306
$
73,938
2.55
%
Noninterest-bearing demand deposits
4,372,122
4,345,631
4,360,897
Other liabilities
297,698
323,728
375,629
Total liabilities
$
16,676,696
$
16,428,209
$
16,411,832
Stockholders' equity
3,067,050
3,032,748
2,907,521
Total liabilities and stockholders' equity
$
19,743,746
$
19,460,957
$
19,319,353
Net interest income
$
148,672
$
146,642
$
139,124
Interest rate spread (2)
2.62
%
2.68
%
2.43
%
Net interest margin (3)
3.37
%
3.42
%
3.25
%
Supplemental Information
Total deposits, including demand deposits
$
15,587,372
$
59,843
$
15,470,838
$
59,436
$
15,016,076
$
61,469
Cost of total deposits
1.54
%
1.56
%
1.65
%
Total funding liabilities, including demand deposits
$
16,378,998
$
70,696
$
16,104,481
$
66,415
$
16,036,203
$
73,938
Cost of total funding liabilities
1.73
%
1.67
%
1.85
%
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis was $1.2 million for the three months ended June 30, 2025, $1.1 million for the three months ended March 31, 2025, and $1.2 million for the three months ended June 30, 2024, determined by applying the Company's marginal tax rates in effect during each respective quarter.
(2) Interest rate spread represents the difference between weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(3) Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.
Six Months Ended
June 30, 2025
June 30, 2024
Interest
Interest
Average
Earned/
Yield/
Average
Earned/
Yield/
Balance
Paid
Rate
Balance
Paid
Rate
Interest-earning assets
Interest earning deposits with banks, federal funds sold, and short term investments
$
274,490
$
5,831
4.28
%
$
49,091
$
880
3.60
%
Securities
Securities - trading
4,655
—
—
%
4,759
—
—
%
Securities - taxable investments
2,742,075
31,175
2.29
%
2,830,302
28,223
2.01
%
Securities - nontaxable investments (1)
195
3
3.10
%
190
4
4.23
%
Total securities
$
2,746,925
$
31,178
2.29
%
$
2,835,251
$
28,227
2.00
%
Loans held for sale
8,127
232
5.76
%
9,853
303
6.18
%
Loans
Commercial and industrial (1)
3,101,441
94,866
6.17
%
2,973,982
90,302
6.11
%
Commercial real estate (1)
6,652,161
170,790
5.18
%
6,709,684
172,135
5.16
%
Commercial construction
797,643
26,933
6.81
%
838,678
30,872
7.40
%
Small business
292,415
9,707
6.69
%
261,147
8,536
6.57
%
Total commercial
10,843,660
302,296
5.62
%
10,783,491
301,845
5.63
%
Residential real estate
2,468,158
55,795
4.56
%
2,423,126
52,555
4.36
%
Home equity
1,150,212
35,918
6.30
%
1,102,418
37,270
6.80
%
Total consumer real estate
3,618,370
91,713
5.11
%
3,525,544
89,825
5.12
%
Other consumer
37,227
1,175
6.36
%
30,844
1,202
7.84
%
Total loans
$
14,499,257
$
395,184
5.50
%
$
14,339,879
$
392,872
5.51
%
Total interest-earning assets
$
17,528,799
$
432,425
4.97
%
$
17,234,074
$
422,282
4.93
%
Cash and due from banks
196,838
178,032
Federal Home Loan Bank stock
25,260
44,157
Other assets
1,852,236
1,842,859
Total assets
$
19,603,133
$
19,299,122
Interest-bearing liabilities
Deposits
Savings and interest checking accounts
$
5,218,591
$
32,715
1.26
%
$
5,166,103
$
31,185
1.21
%
Money market
3,237,300
36,800
2.29
%
2,876,759
33,400
2.33
%
Time deposits
2,714,586
49,764
3.70
%
2,438,277
51,204
4.22
%
Total interest-bearing deposits
$
11,170,477
$
119,279
2.15
%
$
10,481,139
$
115,789
2.22
%
Borrowings
Federal Home Loan Bank borrowings
489,733
9,799
4.03
%
1,071,282
25,960
4.87
%
Junior subordinated debentures
62,861
1,950
6.26
%
62,858
2,287
7.32
%
Subordinated debentures
160,477
6,083
7.64
%
20,326
508
5.03
%
Total borrowings
$
713,071
$
17,832
5.04
%
$
1,154,466
$
28,755
5.01
%
Total interest-bearing liabilities
$
11,883,548
$
137,111
2.33
%
$
11,635,605
$
144,544
2.50
%
Noninterest-bearing demand deposits
4,358,950
4,400,002
Other liabilities
310,641
361,601
Total liabilities
$
16,553,139
$
16,397,208
Stockholders' equity
3,049,994
2,901,914
Total liabilities and stockholders' equity
$
19,603,133
$
19,299,122
Net interest income
$
295,314
$
277,738
Interest rate spread (2)
2.64
%
2.43
%
Net interest margin (3)
3.40
%
3.24
%
Supplemental Information
Total deposits, including demand deposits
$
15,529,427
$
119,279
$
14,881,141
$
115,789
Cost of total deposits
1.55
%
1.56
%
Total funding liabilities, including demand deposits
$
16,242,498
$
137,111
$
16,035,607
$
144,544
Cost of total funding liabilities
1.70
%
1.81
%
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis was $2.3 million and $2.4 million for the six months ended June 30, 2025 and 2024, respectively.
(2) Interest rate spread represents the difference between weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(3) Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.
Certain amounts in prior year financial statements have been reclassified to conform to the current year's presentation.
APPENDIX A: NON-GAAP Reconciliation of Balance Sheet Metrics
(Unaudited, dollars in thousands, except per share data)
The following table summarizes the calculation of the Company's tangible common equity to tangible assets ratio and tangible book value per share, at the dates indicated:
June 30 2025
March 31 2025
June 30 2024
Tangible common equity
(Dollars in thousands, except per share data)
Stockholders' equity (GAAP)
$
3,074,856
$
3,033,392
$
2,919,249
(a)
Less: Goodwill and other intangibles
994,814
996,013
1,000,233
Tangible common equity (Non-GAAP)
$
2,080,042
$
2,037,379
$
1,919,016
(b)
Tangible assets
Assets (GAAP)
$
20,048,934
$
19,888,209
$
19,411,037
(c)
Less: Goodwill and other intangibles
994,814
996,013
1,000,233
Tangible assets (Non-GAAP)
$
19,054,120
$
18,892,196
$
18,410,804
(d)
Common Shares
42,627,286
42,610,271
42,469,867
(e)
Common equity to assets ratio (GAAP)
15.34
%
15.25
%
15.04
%
(a/c)
Tangible common equity to tangible assets ratio (Non-GAAP)
10.92
%
10.78
%
10.42
%
(b/d)
Book value per share (GAAP)
$
72.13
$
71.19
$
68.74
(a/e)
Tangible book value per share (Non-GAAP)
$
48.80
$
47.81
$
45.19
(b/e)
APPENDIX B: Non-GAAP Reconciliation of Earnings Metrics
The following table summarizes the impact of noncore items on the Company's calculation of noninterest income and noninterest expense, the impact of noncore items on noninterest income as a percentage of total revenue and the efficiency ratio, as well as the average tangible common equity used to calculate return on average tangible common equity and operating return on tangible common equity for the periods indicated and the average assets used to calculate return on average assets and operating return on average assets:
(Unaudited, dollars in thousands)
Three Months Ended
Six Months Ended
June 30 2025
March 31 2025
June 30 2024
June 30 2025
June 30 2024
Net interest income (GAAP)
$
147,496
$
145,505
$
137,926
$
293,001
$
275,365
Noninterest income (GAAP)
$
34,308
$
32,539
$
32,330
$
66,847
$
62,273
Total revenue (GAAP)
$
181,804
$
178,044
$
170,256
$
359,848
$
337,638
Noninterest expense (GAAP)
108,798
$
105,878
$
99,614
$
214,676
$
199,501
Less:
Merger and acquisition expense
2,239
1,155
—
3,394
—
Noninterest expense on an operating basis (Non-GAAP)
$
106,559
$
104,723
$
99,614
$
211,282
$
199,501
Average assets
$
19,743,746
$
19,460,957
$
19,319,353
$
19,603,133
$
19,299,122
Average common equity (GAAP)
$
3,067,050
$
3,032,748
$
2,907,521
$
3,049,994
$
2,901,914
Less: Average goodwill and other intangibles
995,380
996,762
1,000,972
996,067
1,001,739
Tangible average tangible common equity (Non-GAAP)
$
2,071,670
$
2,035,986
$
1,906,549
$
2,053,927
$
1,900,175
Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP)
Net income (GAAP)
$
51,101
$
44,424
$
51,330
$
95,525
$
99,100
Noninterest expense components
Add - merger and acquisition expenses
2,239
1,155
—
3,394
—
Noncore increases to income before taxes
2,239
1,155
—
3,394
—
Net tax benefit associated with noncore items (1)
(544
)
(325
)
—
(593
)
—
Add - adjustment for tax effect of previously incurred merger and acquisition expenses
657
—
—
381
—
Total tax impact
113
(325
)
—
(212
)
—
Noncore increases to net income
2,352
830
—
3,182
—
Operating net income (Non-GAAP)
$
53,453
$
45,254
$
51,330
$
98,707
$
99,100
(1) The net tax benefit associated with noncore items is determined by assessing whether each noncore item is included or excluded from net taxable income and applying the Company's combined marginal tax rate to only those items included in net taxable income.
Ratios
Return on average assets (GAAP) (calculated by dividing net income by average assets)
1.04
%
0.93
%
1.07
%
0.98
%
1.03
%
Return on average assets on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average assets)
1.09
%
0.94
%
1.07
%
1.02
%
1.03
%
Return on average common equity (GAAP) (calculated by dividing net income by average common equity)
6.68
%
5.94
%
7.10
%
6.32
%
6.87
%
Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average common equity)
6.99
%
6.05
%
7.10
%
6.53
%
6.87
%
Return on average tangible common equity (Non-GAAP) (calculated by dividing annualized net income by average tangible common equity)
9.89
%
8.85
%
10.83
%
9.38
%
10.49
%
Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing annualized net operating net income by average tangible common equity)
10.35
%
9.01
%
10.83
%
9.69
%
10.49
%
Noninterest income as a % of total revenue (GAAP) (calculated by dividing total noninterest income by total revenue)
18.87
%
18.28
%
18.99
%
18.58
%
18.44
%
Noninterest income as a % of total revenue on an operating basis (Non-GAAP) (calculated by dividing total noninterest income on an operating basis by total revenue)
18.87
%
18.28
%
18.99
%
18.58
%
18.44
%
Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)
59.84
%
59.47
%
58.51
%
59.66
%
59.09
%
Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)
58.61
%
58.82
%
58.51
%
58.71
%
59.09
%
APPENDIX C: Net Interest Margin Analysis & Non-GAAP Reconciliation of Core Margin
(Unaudited, dollars in thousands)
Three Months Ended
June 30, 2025
March 31, 2025
Volume
Interest
Margin Impact
Volume
Interest
Margin Impact
Reported total interest earning assets
$
17,672,302
$
148,672
3.37
%
$
17,383,702
$
146,642
3.42
%
Acquisition fair value marks:
Loan accretion
(235
)
—
%
(410
)
(0.01
)%
Nonaccrual interest, net
(5
)
—
%
(1,689
)
(0.04
)%
Other noncore adjustments
(2,291
)
135
—
%
(2,670
)
(222
)
—
%
Core margin (Non-GAAP)
$
17,670,011
$
148,567
3.37
%
$
17,381,032
$
144,321
3.37
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20250716559214/en/
Contacts
Jeffrey Tengel President and Chief Executive Officer (781) 982-6144Mark J. Ruggiero Chief Financial Officer and Executive Vice President of Consumer Lending (781) 982-6281Investor Relations: Gerry Cronin Director of Investor Relations (774) 363-9872 Gerard.Cronin@rocklandtrust.com
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