Latest news with #INDB
Yahoo
19-07-2025
- Business
- Yahoo
Independent Bank Corp (INDB) Q2 2025 Earnings Call Highlights: Strong Loan Growth and Strategic ...
Net Income: $51.1 million for Q2 2025. Diluted EPS: $1.20 for Q2 2025. Return on Assets (ROA): 1.04% for Q2 2025. Return on Average Common Equity: 6.68% for Q2 2025. Return on Average Tangible Common Equity: 9.89% for Q2 2025. Adjusted Operating Net Income: $53.5 million, excluding merger expenses. Adjusted Diluted EPS: $1.25, excluding merger expenses. Net Interest Margin (NIM): 3.37% for Q2 2025. Deposit Growth: Non-time deposits up 3.6% year over year. Cost of Deposits: 1.54% for Q2 2025. Commercial & Industrial (C&I) Loan Growth: Up 3.4% in Q2 2025. Non-Performing Assets: Down 35% from Q1 2025. Tangible Book Value Per Share: Increased by $0.99 during Q2 2025. Assets Under Administration (AUA): Grew by 4% to $7.4 billion in Q2 2025. Investment Management Revenues: Increased 1.4% from Q1 2025 and nearly 4% from Q2 2024. Stock Buyback: Announced $150 million stock buyback plan. Release Date: July 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Independent Bank Corp (NASDAQ:INDB) reported better-than-expected net interest margin (NIM) performance for the second quarter. The company achieved solid commercial and industrial (C&I) loan growth of 3.4% during the quarter. There was a significant reduction in non-performing assets, down 35% from the first quarter. The acquisition of Enterprise Bank was completed successfully, with no branch closures or strategic mismatches. A $150 million stock buyback was announced, reflecting confidence in the company's financial position. Negative Points Higher expenses partly offset the positive financial performance in the second quarter. There is continued runoff in the commercial real estate (CRE) portfolio, impacting loan growth. Economic uncertainty, including the impact of tariffs and federal government actions, is causing customers to pause expansion plans. A significant non-performing office-related loan deal fell through and is being remarketed for sale. The CRE concentration is expected to rise temporarily due to the Enterprise acquisition, with efforts needed to reduce it back to target levels. Q & A Highlights Q: Where were new loan originations during the quarter, and how are competitive dynamics impacting loan pricing and demand? A: Jeffrey Tengel, CEO: We've seen good loan originations across most segments, with a conservative approach to our CRE portfolio. The competitive landscape remains challenging, especially in the C&I portfolio, with many banks interested in growth. Even in the commercial real estate space, some banks are becoming more aggressive. Mark Ruggiero, CFO: On the commercial side, second-quarter closings were in the high-sixes yield range, while the consumer book was in the mid-sixes. Q: Your small business lending continues to be a bright spot. Why have you seen so much success there, and do you expect it to continue? A: Jeffrey Tengel, CEO: We expect it to continue due to our experienced Rockland Trust bankers and a centralized underwriting unit that allows quick loan processing. This combination makes us more nimble than competitors. Q: Can you provide guidance on the third-quarter margin and the impact of potential Fed cuts? A: Mark Ruggiero, CFO: We expect the third-quarter margin to be in the mid-360s. If the Fed cuts rates, we are well-positioned to neutralize the impact on assets and deposits, maintaining margin expansion as long as the longer end of the curve stays elevated. Q: Are you seeing the worst behind for credit, similar to other New England banks? A: Jeffrey Tengel, CEO: It's hard to tell as it is property-specific. While we have made progress, we are not ready to say we are out of the woods. We continue to work constructively with borrowers, but challenges remain. Q: Can you share details on the large loan modification made this quarter? A: Mark Ruggiero, CFO: The large syndicated Downtown Boston loan was restructured into a Note A and Note B structure, with no cash payments until mid-2026. This allows the sponsor to invest in lease-up and tenant improvements, with expectations to return to performing status once cash flow improves. Q: What is your current appetite for M&A? A: Jeffrey Tengel, CEO: M&A is not a priority right now. We are focused on integrating Enterprise Bank, completing a major core conversion, and demonstrating organic growth while reducing office exposure. Q: How do you view the competitive pressures on deposits and their impact on NIM outlook? A: Mark Ruggiero, CFO: The NIM outlook is primarily driven by asset repricing. While competitive pressures on deposits remain, our focus on operating accounts helps maintain stable deposit costs. Margin benefits will mainly come from asset repricing. Q: Can you provide a pro forma CET1 ratio expectation? A: Mark Ruggiero, CFO: With current assumptions, including the CECL double count, we expect the pro forma CET1 ratio to be around 12.5%. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
18-07-2025
- Business
- Yahoo
Compared to Estimates, Independent Bank Corp. (INDB) Q2 Earnings: A Look at Key Metrics
Independent Bank Corp. (INDB) reported $181.8 million in revenue for the quarter ended June 2025, representing a year-over-year increase of 6.8%. EPS of $1.25 for the same period compares to $1.21 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $179.81 million, representing a surprise of +1.11%. The company delivered an EPS surprise of +4.17%, with the consensus EPS estimate being $1.20. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Independent Bank Corp. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Efficiency Ratio: 59.8% versus the three-analyst average estimate of 59.6%. Net interest margin (FTE): 3.4% compared to the 3.3% average estimate based on three analysts. Average Balance - Total interest-earning assets: $17.67 billion versus $17.77 billion estimated by two analysts on average. Total Non-Interest Income: $34.31 million versus the three-analyst average estimate of $32.97 million. Increase in cash surrender value of life insurance policies: $2.04 million versus the two-analyst average estimate of $2.07 million. Net Interest Income: $147.5 million versus $146.94 million estimated by two analysts on average. Loan level derivative income: $0.07 million compared to the $0.87 million average estimate based on two analysts. Interchange and ATM fees: $5 million versus the two-analyst average estimate of $4.76 million. Deposit account fees: $7.14 million compared to the $6.76 million average estimate based on two analysts. Other noninterest income: $5.96 million versus the two-analyst average estimate of $6.18 million. Mortgage banking income: $1.07 million versus the two-analyst average estimate of $0.93 million. Investment management: $11.38 million versus the two-analyst average estimate of $11.35 million. View all Key Company Metrics for Independent Bank Corp. here>>> Shares of Independent Bank Corp. have returned +4.8% over the past month versus the Zacks S&P 500 composite's +4.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Independent Bank Corp. (INDB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
14-07-2025
- Business
- Yahoo
Countdown to Independent Bank Corp. (INDB) Q2 Earnings: A Look at Estimates Beyond Revenue and EPS
The upcoming report from Independent Bank Corp. (INDB) is expected to reveal quarterly earnings of $1.20 per share, indicating a decline of 0.8% compared to the year-ago period. Analysts forecast revenues of $179.81 million, representing an increase of 5.6% year over year. The consensus EPS estimate for the quarter has been revised 4.2% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe. Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock. While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding. In light of this perspective, let's dive into the average estimates of certain Independent Bank Corp. metrics that are commonly tracked and forecasted by Wall Street analysts. The collective assessment of analysts points to an estimated 'Efficiency Ratio' of 59.6%. The estimate is in contrast to the year-ago figure of 58.5%. It is projected by analysts that the 'Net interest margin (FTE)' will reach 3.3%. Compared to the present estimate, the company reported 3.3% in the same quarter last year. Based on the collective assessment of analysts, 'Average Balance - Total interest-earning assets' should arrive at $17.77 billion. The estimate compares to the year-ago value of $17.22 billion. The consensus estimate for 'Total Non-Interest Income' stands at $32.97 million. The estimate compares to the year-ago value of $32.33 million. According to the collective judgment of analysts, 'Net Interest Income' should come in at $146.94 million. The estimate compares to the year-ago value of $137.93 million. The consensus among analysts is that 'Interchange and ATM fees' will reach $4.76 million. The estimate compares to the year-ago value of $4.75 million. The average prediction of analysts places 'Deposit account fees' at $6.76 million. The estimate compares to the year-ago value of $6.33 million. Analysts forecast 'Other noninterest income' to reach $6.18 million. The estimate is in contrast to the year-ago figure of $6.47 million. Analysts predict that the 'Investment management' will reach $11.35 million. The estimate compares to the year-ago value of $10.99 million. View all Key Company Metrics for Independent Bank Corp. here>>> Independent Bank Corp. shares have witnessed a change of +4% in the past month, in contrast to the Zacks S&P 500 composite's +4% move. With a Zacks Rank #3 (Hold), INDB is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Independent Bank Corp. (INDB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-06-2025
- Business
- Yahoo
INDB Q1 Deep Dive: Credit Resolution and Strategic Shift Shape Outlook
Regional banking company Independent Bank (NASDAQ:INDB) announced better-than-expected revenue in Q1 CY2025, with sales up 6.5% year on year to $178 million. Its non-GAAP profit of $1.06 per share was 9% below analysts' consensus estimates. Is now the time to buy INDB? Find out in our full research report (it's free). Revenue: $178 million vs analyst estimates of $176.6 million (6.5% year-on-year growth, 0.8% beat) Adjusted EPS: $1.06 vs analyst expectations of $1.17 (9% miss) Market Capitalization: $2.6 billion Independent Bank's first quarter results drew a muted market response, with management attributing the underperformance to elevated credit costs stemming from the resolution of several problem commercial loans. CEO Jeffrey Tengel explained, "Credit costs for the first quarter were elevated as we continue to move through the resolution of several previously identified problem loans." Despite these headwinds, pre-provision net revenue growth was supported by improved net interest margin, solid fee revenue, and disciplined expense management. The bank's tangible book value increased, reflecting earnings retention and a focus on capital strength, even as the quarter's profitability was weighed down by loan charge-offs tied to legacy credits. Looking ahead, management's guidance emphasizes the bank's ongoing shift away from commercial real estate and toward commercial and industrial lending, as well as the anticipated closing of the Enterprise Bancorp acquisition. CFO Mark Ruggiero reaffirmed expectations for modest loan and deposit growth, noting, "We anticipate resolution of the larger non-performing assets already discussed, with provision for loan loss driven by any loss emergence not already identified." The company remains cautious regarding broader economic uncertainty, particularly the impact of tariffs and the evolving interest rate environment, which could affect both credit quality and net interest margins in the coming quarters. Management highlighted the impact of credit cleanup, strategic loan portfolio changes, and capital actions on the quarter's results. Elevated credit costs: The quarter's profitability was affected by charge-offs related to a handful of large, previously identified non-performing loans, mainly in the commercial real estate office sector. These charge-offs followed prior reserve build-ups but were necessary to align loan values with current appraisals and market realities. Strategic loan portfolio shift: Management is deliberately reducing exposure to commercial real estate and construction loans, while expanding commercial and industrial (C&I) and small business lending. C&I and small business loans grew over 2% each in the quarter, driven by new banker hires and targeted relationship-building. Deposit franchise resilience: Independent Bank grew core deposits despite seasonal headwinds, with non-maturity consumer, business, and municipal balances all increasing. The cost of deposits remained low relative to peers, underlining the strength of the bank's franchise. Capital raise and flexibility: The company successfully completed a $300 million subordinated debt raise to support both organic growth and the pending Enterprise Bancorp acquisition. Management views this capital buffer as important for future M&A, share repurchases, and balance sheet management. Wealth management contribution: The wealth management division continued to grow, adding assets under administration and delivering positive flows despite market volatility. This business is expected to benefit from the integration of Enterprise Bancorp, which will add approximately $1.5 billion in assets and new cross-sell opportunities. Independent Bank's outlook is shaped by ongoing credit resolution efforts, a shift toward C&I lending, and integration of the Enterprise acquisition, all amid economic uncertainty. Credit risk management: Management stressed that resolving non-performing assets remains a top priority, with a detailed action plan for each stressed loan. While most problem credits are expected to be resolved in the near term, the broader economic backdrop and potential tariff impacts could create new challenges for asset quality. Loan portfolio repositioning: The bank's continued transition away from commercial real estate toward C&I lending is expected to support more stable, diversified growth. However, this shift may limit headline loan growth in the short term as CRE balances decline offset C&I expansion. Enterprise Bancorp integration: The pending acquisition is anticipated to close in the third quarter. Management expects the deal to enhance the bank's scale, expand its product set, and provide cost and revenue synergies, though near-term expenses and integration risks remain. In upcoming quarters, the StockStory team will watch (1) the resolution and charge-off process for remaining non-performing loans, (2) measurable progress on the shift to C&I and small business lending as CRE exposure declines, and (3) updates on the timeline and integration of the Enterprise Bancorp acquisition. Execution on expense control, margin management, and progress toward technology platform upgrades will also be key signposts. Independent Bank currently trades at $61.93, up from $55.75 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-04-2025
- Business
- Yahoo
Independent Bank Corp.: Q1 Earnings Snapshot
HANOVER, Mass. (AP) — HANOVER, Mass. (AP) — Independent Bank Corp. (INDB) on Thursday reported first-quarter net income of $44.4 million. The Hanover, Massachusetts-based bank said it had earnings of $1.04 per share. Earnings, adjusted for one-time gains and costs, came to $1.06 per share. The results missed Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of $1.18 per share. The holding company for Rockland Trust posted revenue of $244.5 million in the period. Its revenue net of interest expense was $178 million, also falling short of Street forecasts. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on INDB at Sign in to access your portfolio
