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