Latest news with #JeffreyTengel
Yahoo
21-07-2025
- Business
- Yahoo
INDB Q2 Deep Dive: Loan Mix Shift and Enterprise Acquisition Shape Outlook
Regional banking company Independent Bank (NASDAQ:INDB) reported Q2 CY2025 results topping the market's revenue expectations , with sales up 7.6% year on year to $183.2 million. Its non-GAAP profit of $1.25 per share was 3.3% above analysts' consensus estimates. Is now the time to buy INDB? Find out in our full research report (it's free). Independent Bank (INDB) Q2 CY2025 Highlights: Revenue: $183.2 million vs analyst estimates of $177.6 million (7.6% year-on-year growth, 3.2% beat) Adjusted EPS: $1.25 vs analyst estimates of $1.21 (3.3% beat) Market Capitalization: $3.48 billion StockStory's Take Independent Bank's second quarter was met with a positive market response, reflecting management's progress on key strategic initiatives. CEO Jeffrey Tengel attributed the results to stronger-than-expected net interest margin, continued commercial and industrial (C&I) loan growth, and robust deposit trends. The successful resolution of several nonperforming loans and a meaningful reduction in commercial real estate (CRE) exposure also contributed. Tengel noted, 'We were successful in exiting our largest nonperforming loan as well as another of our prior quarter's top 5 problem loans,' highlighting the company's work to de-risk its loan portfolio. Looking forward, Independent Bank's guidance centers on integrating the recently closed Enterprise Bank acquisition, further reducing CRE concentration, and driving organic growth in C&I lending. Management expects near-term headwinds from economic uncertainty and potential impacts of tariffs, with customers pausing significant expansion projects. CFO Mark Ruggiero stated, 'We expect to realize full cost save synergies during the first quarter of 2026,' as the company focuses on system conversions and operational efficiency. Management acknowledged that lowering CRE exposure remains a top priority before returning to higher loan growth rates. Key Insights from Management's Remarks Management highlighted a combination of asset repricing benefits, disciplined deposit management, and progress on strategic priorities as key factors shaping the quarter's performance. Asset repricing and margin improvement: The bank benefited from higher yields on its loan portfolio and managed deposit pricing, leading to a core net interest margin of 3.37%. Ruggiero noted this was supported by both asset repricing and 'another 2 basis points benefit from reduced deposit costs.' CRE concentration deliberately reduced: Independent Bank intentionally reduced its commercial real estate exposure, with balances down 1.7% and concentration at 274% before the Enterprise deal. Management emphasized ongoing efforts to accelerate this reduction, even as the acquisition temporarily increases the metric. C&I loan growth targeted: C&I loans grew 3.4% in the quarter, with management outlining plans to expand in both the community banking and middle market/specialty segments. Tengel described hiring a new executive and team to drive growth in Massachusetts-based C&I lending. Deposit growth and funding stability: Non-time deposits increased 3.6% year-over-year, and the cost of deposits remained low at 1.54%. Ruggiero credited a steady increase in core households for providing a 'differentiated funding base.' Wealth management momentum: Assets under administration in wealth management rose 4% to $7.4 billion, driven by market appreciation. Management sees cross-sell opportunities from the Enterprise acquisition, which adds $1.6 billion in assets to the platform. Drivers of Future Performance Management's outlook is shaped by the integration of Enterprise Bank, CRE reduction goals, and an uncertain economic backdrop, with a focus on operational efficiency and loan mix. Enterprise acquisition integration: The company is focused on system conversion and realizing approximately 30% cost savings from the Enterprise Bank expense base by the first quarter of 2026. Management expects full synergy benefits to support earnings accretion over time. CRE concentration and loan mix: Lowering CRE concentration remains a prerequisite for accelerating loan growth. Management expects loan growth to remain in the low single digits until the CRE ratio falls, with targeted sales and paydowns as drivers. Macro and regulatory headwinds: Management highlighted uncertainty from tariffs and federal policy changes, leading customers to delay expansion plans. This caution could moderate loan demand and influence asset quality, particularly in commercial real estate. Catalysts in Upcoming Quarters In the coming quarters, our analysts will be tracking (1) the pace of Enterprise Bank integration and realization of cost synergies, (2) progress on lowering CRE concentration through paydowns and loan sales, and (3) trends in C&I loan growth as the company seeks to shift its loan mix. Execution on technology system upgrades and successful cross-selling in wealth management will also be important markers. Independent Bank currently trades at $70.55, up from $65.60 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it's free). Now Could Be The Perfect Time To Invest In These Stocks Trump's April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines. Take advantage of the rebound 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. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Sign in to access your portfolio
Yahoo
17-07-2025
- Business
- Yahoo
Independent Bank Corp. Reports Second Quarter Net Income of $51.1 Million
ROCKLAND, Mass., July 17, 2025--(BUSINESS WIRE)--Independent Bank Corp. (Nasdaq Global Select Market: INDB), parent of Rockland Trust Company, today announced 2025 second quarter net income of $51.1 million, or $1.20 per diluted share, as compared to 2025 first quarter net income of $44.4 million, or $1.04 per diluted share. The increase in net income was primarily driven by higher revenues and a lower loan loss provision. These financial results include pre-tax merger-related costs of $2.2 million and $1.2 million for the second and first quarter of 2025, respectively, associated with the Company's recently completed acquisition of Enterprise Bancorp, Inc. ("Enterprise") and its subsidiary, Enterprise Bank. Excluding merger-related costs and the related tax effects, 2025 second quarter operating net income was $53.5 million, or $1.25 per diluted share, compared to $45.3 million, or $1.06 per diluted share for the first quarter of 2025(1). 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 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 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
Business Wire
17-07-2025
- Business
- Business Wire
Independent Bank Corp. Reports Second Quarter Net Income of $51.1 Million
ROCKLAND, Mass.--(BUSINESS WIRE)--Independent Bank Corp. (Nasdaq Global Select Market: INDB), parent of Rockland Trust Company, today announced 2025 second quarter net income of $51.1 million, or $1.20 per diluted share, as compared to 2025 first quarter net income of $44.4 million, or $1.04 per diluted share. The increase in net income was primarily driven by higher revenues and a lower loan loss provision. These financial results include pre-tax merger-related costs of $2.2 million and $1.2 million for the second and first quarter of 2025, respectively, associated with the Company's recently completed acquisition of Enterprise Bancorp, Inc. ('Enterprise') and its subsidiary, Enterprise Bank. Excluding merger-related costs and the related tax effects, 2025 second quarter operating net income was $53.5 million, or $1.25 per diluted share, compared to $45.3 million, or $1.06 per diluted share for the first quarter of 2025(1). 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. . 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. Expand 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 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 % Expand 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 % Expand 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 % Expand 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 Expand 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 % Expand 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. Expand 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. Expand 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. Expand 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) Expand 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 % Expand 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 % Expand
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. 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Business Wire
04-06-2025
- Business
- Business Wire
Independent Bank Corp. and Enterprise Bancorp, Inc. Announce the Receipt of All Regulatory Approvals and Anticipated Closing Date
ROCKLAND, Mass. & LOWELL, Mass.--(BUSINESS WIRE)--Independent Bank Corp. (NASDAQ: INDB) ('Independent'), parent of Rockland Trust Company ('Rockland Trust'), and Enterprise Bancorp, Inc. (NASDAQ: EBTC) ('Enterprise'), parent of Enterprise Bank and Trust Company ('Enterprise Bank'), jointly announce the following in connection with Independent's proposed acquisition of Enterprise: All required regulatory approvals relating to the proposed transaction have now been received. The proposed transaction is expected to be completed on July 1, 2025, subject to the satisfaction of the remaining customary closing conditions. 'Securing all required regulatory approvals is a significant milestone and the result of thoughtful collaboration between our two organizations,' said Jeffrey Tengel, Chief Executive Officer at Rockland Trust. 'The success of this combination will come from the people behind it, our colleagues, customers, and communities. We are excited to move forward and grow as a community-oriented bank that is deeply rooted in relationships and ready to meet the evolving needs of those we serve.' 'This integration brings together two banks with shared values and a commitment to serving others,' said Steven Larochelle, Chief Executive Officer at Enterprise Bank. 'I'm incredibly proud of what our Enterprise team has built and am confident that, as part of Rockland Trust, this next chapter will bring expanded opportunities and continued support to the customers and communities we are honored to serve.' 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 and Worcester County as well as commercial banking and investment management offices in Massachusetts 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. ABOUT ENTERPRISE BANCORP, INC. Enterprise Bancorp, Inc. is a Massachusetts corporation that conducts substantially all its operations through Enterprise Bank and Trust Company, commonly referred to as Enterprise Bank, and has reported 142 consecutive profitable quarters. Enterprise Bank is principally engaged in the business of attracting deposits from the general public and investing in commercial loans and investment securities. Through Enterprise Bank and its subsidiaries, Enterprise offers a range of commercial, residential and consumer loan products, deposit products and cash management services, electronic and digital banking options, as well as wealth management, and trust services. Enterprise's headquarters and Enterprise Bank's main office are located at 222 Merrimack Street in Lowell, Massachusetts. Enterprise's primary market area is the Northern Middlesex, Northern Essex, and Northern Worcester counties of Massachusetts and the Southern Hillsborough and Southern Rockingham counties in New Hampshire. Enterprise Bank has 27 full-service branches located in the Massachusetts communities of Acton, Andover, Billerica (2), Chelmsford (2), Dracut, Fitchburg, Lawrence, Leominster, Lexington, Lowell (2), Methuen, North Andover, Tewksbury (2), Tyngsborough and Westford and in the New Hampshire communities of Derry, Hudson, Londonderry, Nashua (2), Pelham, Salem and Windham. CAUTION REGARDING FORWARD-LOOKING STATEMENTS This communication may contain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements about the benefits of the proposed transaction, the plans, objectives, expectations and intentions of Independent and Enterprise, the expected timing of completion of the transaction, and other statements that are not historical facts. Such statements are subject to numerous assumptions, risks, and uncertainties. Statements that do not describe historical or current facts, including statements about beliefs and expectations, are forward-looking statements. Forward-looking statements may be identified by words such as expect, anticipate, believe, intend, estimate, plan, target, goal, or similar expressions, or future or conditional verbs such as will, may, might, should, would, could, or similar variations. The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. Independent and Enterprise caution that the forward-looking statements in this communication are not guarantees of future performance and involve a number of known and unknown risks, uncertainties and assumptions that are difficult to assess and are subject to change based on factors which are, in many instances, beyond Independent's and Enterprise's control. While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: (1) changes in general economic, political, or industry conditions; (2) uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Board of Governors of the Federal Reserve System; (3) volatility and disruptions in global capital and credit markets; (4) movements in interest rates; (5) the resurgence of elevated levels of inflation or inflationary pressures in the United States and the Enterprise and Independent market areas; (6) increased competition in the markets of Independent and Enterprise; (7) success, impact, and timing of business strategies of Independent and Enterprise; (8) the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations; (9) the expected impact of the proposed transaction between Enterprise and Independent on the combined entities' operations, financial condition, and financial results; (10) the failure to satisfy any of the conditions to the closing of transaction on a timely basis or at all or other delays in completing the proposed transaction; (11) the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement; (12) the outcome of any legal proceedings that may be instituted against Independent or Enterprise; (13) the possibility that the anticipated benefits of the proposed transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where Independent and Enterprise do business; (14) the possibility that the proposed transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (15) diversion of management's attention from ongoing business operations and opportunities; (16) potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; (17) the dilution caused by Independent's issuance of additional shares of its capital stock in connection with the proposed transaction; (18) a deterioration of the credit rating for U.S. long-term sovereign debt or uncertainty regarding U.S. fiscal debt, deficit and budget matters; (19) cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; (20) severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events, including as a result of changes in U.S. presidential administrations or Congress, including potential changes in U.S. and international trade and tariff policies and the resulting impact on Independent and Enterprise and their respective customers; and (21) other factors that may affect the future results of Independent and Enterprise. Additional factors that could cause results to differ materially from those described above can be found in Independent's Annual Report on Form 10-K for the year ended December 31, 2024 and in its subsequent Quarterly Reports on Form 10-Q, including in the respective 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' sections of such reports, as well as in subsequent SEC filings, each of which is on file with the U.S. Securities and Exchange Commission (the 'SEC') and available in the 'Investor Relations' section of Independent's website, under the heading 'SEC Filings' and in other documents Independent files with the SEC, and in Enterprise's Annual Report on Form 10-K for the year ended December 31, 2024 and in its subsequent Quarterly Reports on Form 10-Q, including in the respective 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' sections of such reports, as well as in subsequent SEC filings, each of which is on file with and available in the 'Investor Relations' section of Enterprise's website, under the heading 'SEC Filings' and in other documents Enterprise files with the SEC. All forward-looking statements speak only as of the date they are made and are based on information available at that time. Neither Independent nor Enterprise assumes any obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements. All forward-looking statements, express or implied, included in the document are qualified in their entirety by this cautionary statement.
