Independent Bank Corp. Reports Third Quarter Net Income of $34.3 Million

ROCKLAND, Mass.--( BUSINESS WIRE)--Independent Bank Corp. (Nasdaq Global Select Market: INDB), parent of Rockland Trust Company, today announced 2025 third quarter net income of $34.3 million, or $0.69 per diluted share, as compared to 2025 second quarter net income of $51.1 million, or $1.20 per diluted share. The decrease in net income was primarily driven by higher merger-related costs and the current period provision for credit losses associated with the Company’s recently completed acquisition of Enterprise Bancorp, Inc. (“Enterprise”) and its subsidiary, Enterprise Bank. Specifically, these financial results include pre-tax merger-related costs of $23.9 million and $2.2 million for the third quarter of 2025 and second quarter of 2025, respectively. In addition, the current period provision for credit losses included $34.5 million that was attributable to the closing of the Enterprise acquisition. Excluding merger-related costs and the provision for credit losses associated with the acquisition, and their related tax effects, operating net income was $77.4 million, or $1.55 per diluted share for the third quarter of 2025 compared to operating net income of $53.5 million, or $1.25 per diluted share for the second quarter of 2025 (1).

CEO STATEMENT

“Our third quarter results were exactly what we are looking for as we continue to position the bank for sustainable improved financial performance. The combination of the Enterprise acquisition and solid business activity drove significant net interest margin improvement, improved fee income results, and a meaningful drop in our efficiency ratio. We achieved these results while remaining laser focused on improving asset quality metrics,” said Jeffrey Tengel, the Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company. "I can't thank my colleagues enough for the amazing efforts in completing a successful acquisition, including the conversion of Enterprise's core systems. The team is eager to take advantage of the potential opportunities that lie before us.”

ENTERPRISE BANCORP, INC.

Effective July 1, 2025, the Company completed its acquisition of Enterprise, which resulted in the addition of twenty-seven branch locations in northern Massachusetts and southern New Hampshire. The transaction included the acquisition of $3.9 billion in loans and the assumption of $4.4 billion in deposits, each at fair value. Total merger consideration was $503.1 million and consisted of $477.2 million of equity (7,478,906 shares) in Independent common stock plus $25.9 million in cash, including cash paid for stock option cancellations and fractional shares.

The following table provides the purchase price allocation of net assets acquired for this transaction:

Net Assets Acquired at Fair Value

(Dollars in thousands)

Assets

Cash

123,638

Investments

590,267

Loans (including loans held for sale)

3,913,112

Allowance for credit losses on purchased credit deteriorated (“PCD”) loans

(9,020

)

Bank premises and equipment

35,706

Goodwill

98,302

Core deposit and other intangibles

137,503

Other assets

164,908

Total assets acquired

5,054,416

Liabilities

Deposits

4,362,710

Borrowings

62,472

Subordinated debt

59,974

Other liabilities

66,116

Total liabilities assumed

4,551,272

Purchase price

503,144

Please refer to Appendix A for details on acquired loans and deposits along with organic changes for the periods presented.

FINANCIAL HIGHLIGHTS

BALANCE SHEET

Total assets of $25.0 billion at September 30, 2025 increased $4.9 billion, or 24.7% compared to the prior quarter, inclusive of the acquisition of Enterprise.

Total loans of $18.5 billion at September 30, 2025 increased $3.9 billion, or 27.0% compared to the prior quarter, inclusive of the acquired Enterprise loan portfolio, while net organic loan growth was relatively flat for the quarter:

Total deposits increased by $4.4 billion, or 27.7%, to $20.3 billion at September 30, 2025, as compared to the prior quarter, reflecting both the addition of Enterprise deposits and modest net organic growth during the quarter:

Total period end borrowings increased by $15.9 million, or 2.1%, during the third quarter of 2025, largely reflecting the modest net impact of borrowings assumed from Enterprise:

The Company’s securities portfolio increased by $629.7 million, or 23.4%, to $3.3 billion, at September 30, 2025, primarily attributable to the acquisition of the Enterprise available for sale securities portfolio:

Stockholders’ equity at September 30, 2025 increased $472.0 million, or 15.4%, compared to June 30, 2025, due primarily to the stock issuance associated with the Enterprise acquisition along with strong earnings retention, partially offset by the impact of share repurchases made during the quarter:

NET INTEREST INCOME

Net interest income for the third quarter of 2025 increased $55.8 million, or 37.9%, to $203.3 million, as compared to $147.5 million for the prior quarter, due primarily to the Enterprise acquisition.

NONINTEREST INCOME

Noninterest income of $40.4 million for the third quarter of 2025 represented an increase of $6.1 million, or 17.8%, as compared to the prior quarter. Significant changes in noninterest income for the third quarter of 2025 compared to the prior quarter included the following:

NONINTEREST EXPENSE

Noninterest expense of $160.8 million for the third quarter of 2025 represented an increase of $52.0 million, or 47.8%, as compared to the prior quarter. Significant changes in noninterest expense for the third quarter of 2025 compared to the prior quarter included the following:

The Company’s tax rate was 22.81% for the third quarter of 2025 compared to 22.35% for the prior quarter.

ASSET QUALITY

During the third quarter, the Company’s key asset quality activity and metrics were as follows:

(1)

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 third quarter earnings at 10:00 a.m. Eastern Time on Friday, October 17, 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: 5617042 and will be available through October 24, 2025. Additionally, a webcast replay will be available on the Company’s website until October 17, 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:

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, adjusted net interest margin (“adjusted 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 adjusted 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 an adjusted 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, adjusted 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

September 30

2025

June 30

2025

September 30

2024

Sept 2025 vs.

Jun 2025

Sept 2024

Assets

Cash and due from banks

203,388

219,414

198,987

(7.30

2.21

Interest-earning deposits with banks

707,408

681,820

225,465

3.75

213.76

Securities

Trading

4,611

4,801

4,410

(3.96

4.56

Equities

21,567

21,258

21,639

1.45

(0.33

Available for sale

1,941,220

1,286,318

1,247,211

50.91

55.64

Held to maturity

1,357,617

1,382,903

1,492,315

(1.83

(9.03

Total securities

3,325,015

2,695,280

2,765,575

23.36

20.23

Loans held for sale

17,052

16,792

16,259

1.55

4.88

Loans

Commercial and industrial

4,667,262

3,426,938

3,136,260

36.19

48.82

Commercial real estate

8,106,490

6,614,523

6,873,639

22.56

17.94

Commercial construction

1,439,876

798,808

742,042

80.25

94.04

Total commercial

14,213,628

10,840,269

10,751,941

31.12

32.20

Residential real estate

2,917,101

2,489,166

2,441,859

17.19

19.46

Home equity - first position

511,482

479,641

498,193

6.64

2.67

Home equity - subordinate positions

772,657

688,456

632,242

12.23

22.21

Total consumer real estate

4,201,240

3,657,263

3,572,294

14.87

17.61

Other consumer

37,575

36,296

36,572

3.52

2.74

Total loans

18,452,443

14,533,828

14,360,807

26.96

28.49

Less: allowance for credit losses

(190,476

)

(144,773

)

(163,696

)

31.57

16.36

Net loans

18,261,967

14,389,055

14,197,111

26.92

28.63

Federal Home Loan Bank stock

21,835

21,052

29,926

3.72

(27.04

Bank premises and equipment, net

221,165

188,883

192,197

17.09

15.07

Goodwill

1,083,374

985,072

9.98

Other intangible assets

141,732

9,742

13,701

1,354.86

934.46

Cash surrender value of life insurance policies

376,163

305,077

302,132

23.30

24.50

Other assets

634,140

536,747

481,692

18.15

31.65

Total assets

24,993,239

20,048,934

19,408,117

24.66

28.78

Liabilities and Stockholders’ Equity

Deposits

Noninterest-bearing demand deposits

5,635,911

4,525,907

4,519,492

24.53

24.70

Savings and interest checking

7,111,570

5,279,280

5,188,303

34.71

37.07

Money market

4,128,400

3,368,354

2,969,809

22.56

39.01

Time certificates of deposit

3,419,988

2,720,199

2,763,419

25.73

23.76

Total deposits

20,295,869

15,893,740

15,441,023

27.70

31.44

Borrowings

Federal Home Loan Bank and other borrowings

416,240

400,500

600,521

3.93

(30.69

Junior subordinated debentures, net

62,862

62,861

62,859

—

Subordinated debentures, net

296,275

296,067

—

0.07

100.00

Total borrowings

775,377

759,428

663,380

2.10

16.88

Total deposits and borrowings

21,071,246

16,653,168

16,104,403

26.53

30.84

Other liabilities

375,106

320,910

326,566

16.89

14.86

Total liabilities

21,446,352

16,974,078

16,430,969

26.35

30.52

Stockholders’ equity

Common stock

495

424

423

16.75

17.02

Additional paid in capital

2,371,111

1,914,556

1,907,012

23.85

24.34

Retained earnings

1,222,843

1,217,959

1,146,915

0.40

6.62

Accumulated other comprehensive loss, net of tax

(47,562

)

(58,083

)

(77,202

)

(18.11

(38.39

Total stockholders' equity

3,546,887

3,074,856

2,977,148

15.35

19.14

Total liabilities and stockholders’ equity

24,993,239

20,048,934

19,408,117

24.66

28.78

SUMMARY OF RECLASSIFICATION OF SMALL BUSINESS LOANS

June 30

2025

September 30

2024

Commercial and industrial previously reported

3,215,480

2,946,552

Reclassification of loans previously reported as small business, excluding loans which are secured by non-owner occupied real estate

211,458

189,708

Commercial and industrial after reclassification

3,426,938

3,136,260

Commercial real estate previously reported

6,525,438

6,793,329

Reclassification of loans previously reported as small business which are secured by non-owner occupied real estate

89,085

80,310

Commercial real estate after reclassification

6,614,523

6,873,639

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited, dollars in thousands, except per share data)

Three Months Ended

% Change

September 30

2025

June 30

2025

September 30

2024

Sept 2025 vs.

Jun 2025

Sept 2024

Interest income

Interest on federal funds sold and short-term investments

7,245

4,393

1,635

64.92

343.12

Interest and dividends on securities

23,511

15,881

14,065

48.04

67.16

Interest and fees on loans

263,772

197,778

200,597

33.37

31.49

Interest on loans held for sale

225

140

227

60.71

(0.88

Total interest income

294,753

218,192

216,524

35.09

36.13

Interest expense

Interest on deposits

80,739

59,843

66,985

34.92

20.53

Interest on borrowings

10,670

10,853

7,836

(1.69

36.17

Total interest expense

91,409

70,696

74,821

29.30

22.17

Net interest income

203,344

147,496

141,703

37.86

43.50

Provision for credit losses

38,519

7,200

19,500

434.99

97.53

Net interest income after provision for credit losses

164,825

140,296

122,203

17.48

34.88

Noninterest income

Deposit account fees

8,847

7,141

6,779

23.89

30.51

Interchange and ATM fees

5,989

4,997

4,970

19.85

20.50

Investment management and advisory

13,652

11,380

11,033

19.96

23.74

Mortgage banking income

1,444

1,072

972

34.70

48.56

Increase in cash surrender value of life insurance policies

2,629

2,038

2,006

29.00

31.06

Gain on life insurance benefits

—

1,650

—

(100.00

Loan level derivative income

1,224

1,125

1,754.55

8.80

Other noninterest income

6,613

5,964

6,664

10.88

(0.77

Total noninterest income

40,398

34,308

33,549

17.75

20.41

Noninterest expenses

Salaries and employee benefits

81,132

62,856

60,108

29.08

34.98

Occupancy and equipment expenses

14,975

13,158

12,734

13.81

17.60

Data processing and facilities management

2,788

2,783

2,510

0.18

11.08

FDIC assessment

3,080

2,373

2,628

29.79

17.20

Amortization of intangible assets

7,315

1,197

1,460

511.11

401.03

Merger and acquisition expense

23,893

2,239

—

967.13

100.00

Other noninterest expenses

27,653

24,192

21,003

14.31

31.66

Total noninterest expenses

160,836

108,798

100,443

47.83

60.13

Income before income taxes

44,387

65,806

55,309

(32.55

(19.75

Provision for income taxes

10,125

14,705

12,362

(31.15

(18.10

Net Income

34,262

51,101

42,947

(32.95

(20.22

Weighted average common shares (basic)

49,934,574

42,623,978

42,481,441

Common share equivalents

22,433

17,153

11,622

Weighted average common shares (diluted)

49,957,007

42,641,131

42,493,063

Basic earnings per share

0.69

1.20

1.01

(42.50

(31.68

Diluted earnings per share

0.69

1.20

1.01

(42.50

(31.68

Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):

Net income

34,262

51,101

42,947

Provision for non-PCD acquired loans

34,519

—

Noninterest expense components

Add - merger and acquisition expenses

23,893

2,239

—

Noncore increases to income before taxes

58,412

2,239

—

Net taxes associated with noncore items (1)

(15,320

)

(544

)

—

Add - adjustment for tax effect of previously incurred merger and acquisition expenses

—

657

—

Total tax impact

(15,320

)

113

—

Noncore increases to net income

43,092

2,352

—

Operating net income (Non-GAAP)

77,354

53,453

42,947

44.71

80.12

Diluted earnings per share, on an operating basis (Non-GAAP)

1.55

1.25

1.01

24.00

53.47

(1) The net taxes 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)

3.62

3.37

3.29

Return on average assets (calculated by dividing net income by average assets) (GAAP)

0.55

1.04

0.88

Return on average assets on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average assets)

1.23

1.09

0.88

Return on average common equity (calculated by dividing net income by average common equity) (GAAP)

3.82

6.68

5.75

Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average common equity)

8.63

6.99

5.75

Return on average tangible common equity (Non-GAAP) (calculated by dividing net income by average tangible common equity)

5.84

9.89

8.67

Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average tangible common equity)

13.18

10.35

8.67

Noninterest income as a % of total revenue (GAAP) (calculated by dividing total noninterest income by net interest income plus total noninterest income)

16.57

18.87

19.14

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)

16.57

18.87

19.14

Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)

65.99

59.84

57.31

Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)

56.18

58.61

57.31

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited, dollars in thousands, except per share data)

Nine Months Ended

% Change

September 30

2025

September 30

2024

Sept 2025 vs.

Sept 2024

Interest income

Interest on federal funds sold and short-term investments

13,076

2,515

419.92

Interest and dividends on securities

54,689

42,291

29.32

Interest and fees on loans

656,643

591,097

11.09

Interest on loans held for sale

457

530

(13.77

Total interest income

724,865

636,433

13.89

Interest expense

Interest on deposits

200,018

182,774

9.43

Interest on borrowings

28,502

36,591

(22.11

Total interest expense

228,520

219,365

4.17

Net interest income

496,345

417,068

19.01

Provision for credit losses

60,719

28,750

111.20

Net interest income after provision for credit losses

435,626

388,318

12.18

Noninterest income

Deposit account fees

23,041

19,339

19.14

Interchange and ATM fees

15,608

14,175

10.11

Investment management and advisory

36,252

31,961

13.43

Mortgage banking income

3,257

3,088

5.47

Increase in cash surrender value of life insurance policies

6,732

5,934

13.45

Gain on life insurance benefits

1,650

263

527.38

Loan level derivative income

2,332

1,678

38.97

Other noninterest income

18,373

19,385

(5.22

Total noninterest income

107,245

95,822

11.92

Noninterest expenses

Salaries and employee benefits

205,919

174,444

18.04

Occupancy and equipment expenses

41,992

38,673

8.58

Data processing and facilities management

8,213

7,398

11.02

FDIC assessment

8,441

8,304

1.65

Amortization of intangible assets

9,856

4,488

119.61

Merger and acquisition expense

27,287

—

100.00

Other noninterest expenses

73,804

66,637

10.76

Total noninterest expenses

375,512

299,944

25.19

Income before income taxes

167,359

184,196

(9.14

Provision for income taxes

37,572

42,149

(10.86

Net Income

129,787

142,047

(8.63

Weighted average common shares (basic)

45,063,324

42,501,199

Common share equivalents

20,646

9,602

Weighted average common shares (diluted)

45,083,970

42,510,801

Basic earnings per share

2.88

3.34

(13.77

Diluted earnings per share

2.88

3.34

(13.77

Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):

Net Income

129,787

142,047

Provision for non-PCD acquired loans

34,519

—

Noninterest expense components

Add - merger and acquisition expenses

27,287

—

Noncore increases to income before taxes

61,806

—

Net taxes associated with noncore items (1)

(15,913

)

—

Add - adjustment for tax effect of previously incurred merger and acquisition expenses

381

—

Total tax impact

(15,532

)

—

Noncore increases to net income

46,274

—

Operating net income (Non-GAAP)

176,061

142,047

23.95

Diluted earnings per share, on an operating basis (Non-GAAP)

3.91

3.34

17.07

Performance ratios

Net interest margin (FTE)

3.49

3.26

Return on average assets (GAAP) (calculated by dividing net income by average assets)

0.81

0.98

Return on average assets on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average assets)

1.10

0.98

Return on average common equity (GAAP) (calculated by dividing net income by average common equity)

5.39

6.49

Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average common equity)

7.31

6.49

Return on average tangible common equity (Non-GAAP) (calculated by dividing net income by average tangible common equity)

8.09

9.86

Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average tangible common equity)

10.97

9.86

Noninterest income as a % of total revenue (GAAP) (calculated by dividing total noninterest income by net interest income plus total noninterest income)

17.77

18.68

17.77

18.68

Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)

62.21

58.48

Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)

57.69

58.48

nm = not meaningful

ASSET QUALITY

(Unaudited, dollars in thousands)

Nonperforming Assets At

September 30

2025

June 30

2025

September 30

2024

Nonperforming loans

Commercial & industrial loans

23,173

13,717

12,772

Commercial real estate loans

29,216

28,717

77,707

Commercial construction loans

15,516

—

Residential real estate loans

14,406

10,013

9,744

Home equity

4,244

3,765

3,992

Other consumer

Total nonperforming loans

86,597

56,217

104,248

Other real estate owned

2,100

110

Total nonperforming assets

88,697

58,317

104,358

Nonperforming loans/gross loans

0.47

0.39

0.73

Nonperforming assets/total assets

0.35

0.29

0.54

Allowance for credit losses/nonperforming loans

219.96

257.53

157.03

Allowance for credit losses/total loans

1.03

1.00

1.14

Delinquent loans/total loans

0.49

0.20

0.33

Nonperforming Assets Reconciliation for the Three Months Ended

September 30

2025

June 30

2025

September 30

2024

Nonperforming assets beginning balance

58,317

89,493

57,561

Enterprise nonperforming assets at July 1, 2025

24,487

—

New to nonperforming

16,767

13,411

57,197

Loans charged-off

(2,670

)

(6,966

)

(7,006

)

Loans paid-off

(6,983

)

(35,977

)

(2,306

)

Loans transferred to other real estate owned

—

(2,100

)

—

Loans restored to performing status

(1,404

)

(1,659

)

(1,058

)

New to other real estate owned

—

2,100

—

Other

183

(30

)

Nonperforming assets ending balance

88,697

58,317

104,358

Net Charge-Offs (Recoveries)

Three Months Ended

Nine Months Ended

September 30

2025

June 30

2025

September 30

2024

September 30

2025

September 30

2024

Net charge-offs (recoveries)

Commercial and industrial loans

1,178

2,793

6,043

4,123

6,074

Commercial real estate loans

3,347

—

43,364

—

Home equity

(12

)

(49

)

(246

)

Other consumer

649

428

596

1,743

1,448

Total net charge-offs

1,836

6,519

6,663

49,247

7,276

Net charge-offs to average loans (annualized)

0.04

0.18

0.42

0.07

BALANCE SHEET AND CAPITAL RATIOS

September 30

2025

June 30

2025

September 30

2024

Gross loans/total deposits

90.92

91.44

93.00

Common equity tier 1 capital ratio (1)

12.94

14.70

14.57

Tier 1 leverage capital ratio (1)

10.15

11.44

11.22

Common equity to assets ratio GAAP

14.19

15.34

Tangible common equity to tangible assets ratio (2)

9.77

10.92

10.75

Book value per share GAAP

71.24

72.13

70.08

Tangible book value per share (2)

46.63

48.80

46.57

(1) Estimated number for September 30, 2025.

(2) See Appendix B for detailed reconciliation from GAAP to Non-GAAP ratios.

INDEPENDENT BANK CORP. SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited, dollars in thousands)

Three Months Ended

September 30, 2025

June 30, 2025

September 30, 2024

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

688,394

7,245

4.18

406,108

4,393

4.34

129,827

1,635

5.01

Securities

Securities - trading

4,613

—

4,796

—

4,366

—

Securities - taxable investments

3,253,928

23,303

2.84

2,737,166

15,879

2.33

2,761,758

14,064

2.03

Securities - nontaxable investments (1)

34,803

263

3.00

195

4.11

194

2.05

Total securities

3,293,344

23,566

2.84

2,742,157

15,881

2.32

2,766,318

14,065

2.02

Loans held for sale

15,632

225

5.71

9,839

140

5.71

15,208

227

5.94

Loans

Commercial and industrial (1)

4,596,789

73,347

6.33

3,363,944

51,287

6.12

3,187,701

50,157

6.26

Commercial real estate (1)

8,159,038

110,377

5.37

6,672,633

87,096

5.24

6,838,617

90,898

5.29

Commercial construction (1)

1,446,615

24,750

6.79

809,839

13,766

6.82

749,009

13,778

7.32

Total commercial

14,202,442

208,474

5.82

10,846,415

152,149

5.63

10,775,327

154,833

5.72

Residential real estate

2,913,749

34,813

4.74

2,471,810

28,079

4.56

2,443,488

26,917

4.38

Home equity

1,275,945

21,173

6.58

1,160,123

18,144

6.27

1,122,750

19,372

6.86

Total consumer real estate

4,189,694

55,986

5.30

3,631,933

46,223

5.10

3,566,238

46,289

5.16

Other consumer

40,726

644

6.27

35,850

582

6.51

35,331

665

7.49

Total loans

18,432,862

265,104

5.71

14,514,198

198,954

5.50

14,376,896

201,787

5.58

Total interest-earning assets

22,430,232

296,140

5.24

17,672,302

219,368

4.98

17,288,249

217,714

5.01

Cash and due from banks

214,626

196,147

182,151

Federal Home Loan Bank stock

22,206

22,900

30,513

Other assets

2,263,385

1,852,397

1,839,389

Total assets

24,930,449

19,743,746

19,340,302

Interest-bearing liabilities

Deposits

Savings and interest checking accounts

6,946,463

18,927

1.08

5,214,871

16,553

1.27

5,163,567

17,978

1.39

Money market

4,136,911

30,019

2.88

3,295,080

19,090

2.32

2,998,672

18,986

2.52

Time deposits

3,466,139

31,793

3.64

2,705,299

24,200

3.59

2,740,982

30,021

4.36

Total interest-bearing deposits

14,549,513

80,739

2.20

11,215,250

59,843

2.14

10,903,221

66,985

2.44

Borrowings

Federal Home Loan Bank and other borrowings

416,074

3,946

3.76

432,392

4,233

3.93

623,053

6,692

4.27

Junior subordinated debentures

62,861

981

6.19

62,861

976

6.23

62,859

1,144

7.24

Subordinated debentures

305,280

5,743

7.46

296,373

5,644

7.64

—

Total borrowings

784,215

10,670

5.40

791,626

10,853

5.50

685,912

7,836

4.54

Total interest-bearing liabilities

15,333,728

91,409

2.37

12,006,876

70,696

2.36

11,589,133

74,821

2.57

Noninterest-bearing demand deposits

5,699,765

4,372,122

4,442,858

Other liabilities

339,116

297,698

339,075

Total liabilities

21,372,609

16,676,696

16,371,066

Stockholders’ equity

3,557,840

3,067,050

2,969,236

Total liabilities and stockholders’ equity

24,930,449

19,743,746

19,340,302

Net interest income

204,731

148,672

142,893

Interest rate spread (2)

2.87

2.62

2.44

Net interest margin (3)

3.62

3.37

3.29

Supplemental Information

Total deposits, including demand deposits

20,249,278

80,739

15,587,372

59,843

15,346,079

66,985

Cost of total deposits

1.58

1.54

1.74

Total funding liabilities, including demand deposits

21,033,493

91,409

16,378,998

70,696

16,031,991

74,821

Cost of total funding liabilities

1.72

1.73

1.86

(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis was $1.4 million for the three months ended September 30, 2025, and $1.2 million for each of the three months ended June 30, 2025 and September 30, 2024, respectively, 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.

SUMMARY OF RECLASSIFICATION OF SMALL BUSINESS LOANS

June 30, 2025

September 30, 2024

Interest

Average

Earned/

Yield/

Average

Earned/

Yield/

Balance

Paid

Rate

Balance

Paid

Rate

Commercial and industrial previously reported

3,156,455

47,583

6.05

2,998,298

46,796

6.21

Reclassification of loans previously reported as small business, excluding loans which are secured by non-owner occupied real estate

207,489

3,704

7.16

189,403

3,361

7.06

Commercial and industrial after reclassification

3,363,944

51,287

6.12

3,187,701

50,157

6.26

Commercial real estate previously reported

6,585,559

85,871

5.23

6,757,534

89,773

5.29

Reclassification of loans previously reported as small business which are secured by non-owner occupied real estate

87,074

1,225

5.64

81,083

1,125

5.52

Commercial real estate after reclassification

6,672,633

87,096

5.24

6,838,617

90,898

5.29

Nine Months Ended

September 30, 2025

September 30, 2024

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

413,974

13,076

4.22

76,199

2,515

4.41

Securities

Securities - trading

4,641

—

4,627

—

Securities - taxable investments

2,914,567

54,478

2.50

2,807,287

42,287

2.01

Securities - nontaxable investments (1)

11,858

266

3.00

191

3.50

Total securities

2,931,066

54,744

2.50

2,812,105

42,292

2.01

Loans held for sale

10,656

457

5.73

11,651

530

6.08

Loans

Commercial and industrial (1)

3,742,161

175,528

6.27

3,166,270

146,867

6.20

Commercial real estate (1)

7,217,053

283,559

5.25

6,805,910

265,161

5.20

Commercial construction (1)

1,016,344

51,683

6.80

808,570

44,650

7.38

Total commercial

11,975,558

510,770

5.70

10,780,750

456,678

5.66

Residential real estate

2,618,320

90,608

4.63

2,429,963

79,472

4.37

Home equity

1,192,583

57,091

6.40

1,109,245

56,642

6.82

Total consumer real estate

3,810,903

147,699

5.18

3,539,208

136,114

5.14

Other consumer

38,406

1,819

6.33

32,350

1,867

7.71

Total loans

15,824,867

660,288

5.58

14,352,308

594,659

5.53

Total interest-earning assets

19,180,563

728,565

5.08

17,252,263

639,996

4.96

Cash and due from banks

202,833

179,414

Federal Home Loan Bank stock

24,231

39,576

Other assets

1,990,792

1,841,696

Total assets

21,398,419

19,312,949

Interest-bearing liabilities

Deposits

Savings and interest checking accounts

5,800,879

51,642

1.19

5,165,252

49,163

1.27

Money market

3,540,466

66,819

2.52

2,917,693

52,386

2.40

Time deposits

2,967,856

81,557

3.67

2,539,915

81,225

4.27

Total interest-bearing deposits

12,309,201

200,018

2.17

10,622,860

182,774

2.30

Borrowings

Federal Home Loan Bank and other borrowings

464,910

13,745

3.95

920,781

32,652

4.74

Junior subordinated debentures

62,861

2,931

6.23

62,859

3,431

7.29

Subordinated debentures

209,275

11,826

7.56

13,501

508

5.03

Total borrowings

737,046

28,502

5.17

997,141

36,591

4.90

Total interest-bearing liabilities

13,046,247

228,520

2.34

11,620,001

219,365

2.52

Noninterest-bearing demand deposits

4,810,799

4,414,392

Other liabilities

320,237

354,038

Total liabilities

18,177,283

16,388,431

Stockholders’ equity

3,221,136

2,924,518

Total liabilities and stockholders’ equity

21,398,419

19,312,949

Net interest income

500,045

420,631

Interest rate spread (2)

2.74

2.44

Net interest margin (3)

3.49

3.26

Supplemental Information

Total deposits, including demand deposits

17,120,000

200,018

15,037,252

182,774

Cost of total deposits

1.56

1.62

Total funding liabilities, including demand deposits

17,857,046

228,520

16,034,393

219,365

Cost of total funding liabilities

1.71

1.83

SUMMARY OF RECLASSIFICATION OF SMALL BUSINESS LOANS

September 30, 2024

Interest

Average

Earned/

Yield/

Balance

Paid

Rate

Commercial and industrial previously reported

2,982,147

137,099

6.14

Reclassification of loans previously reported as small business, excluding loans which are secured by non-owner occupied real estate

184,123

9,768

7.09

Commercial and industrial after reclassification

3,166,270

146,867

6.20

Commercial real estate previously reported

6,725,750

261,907

5.20

Reclassification of loans previously reported as small business which are secured by non-owner occupied real estate

80,160

3,254

5.42

Commercial real estate after reclassification

6,805,910

265,161

5.20

(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis was $3.7 million and $3.6 million for the nine months ended September 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: Organic Loan and Deposit Growth

(Unaudited, dollars in thousands)

Linked Quarter

September 30

2025

June 30 2025

Enterprise Balances Acquired

Organic Growth/(Decline)

Organic Growth/(Decline)%

Loans

Commercial and industrial

4,667,262

3,426,938

1,091,649

148,675

3.29

Commercial real estate

8,106,490

6,614,523

1,629,698

(137,731

)

(1.67

Commercial construction

1,439,876

798,808

664,281

(23,213

)

(1.59

Total commercial

14,213,628

10,840,269

3,385,628

(12,269

)

(0.09

Residential real estate

2,917,101

2,489,166

425,695

2,240

0.08

Home equity

1,284,139

1,168,097

95,096

20,946

1.66

Total consumer real estate

4,201,240

3,657,263

520,791

23,186

0.55

Total other consumer

37,575

36,296

6,693

(5,414

)

(12.59

Total loans

18,452,443

14,533,828

3,913,112

5,503

0.03

Deposits

Noninterest-bearing demand deposits

5,635,911

4,525,907

1,040,758

69,246

1.24

Savings and interest checking

7,111,570

5,279,280

1,766,463

65,827

0.93

Money market

4,128,400

3,368,354

815,532

(55,486

)

(1.33

Time certificates of deposit

3,419,988

2,720,199

739,957

(40,168

)

(1.16

Total deposits

20,295,869

15,893,740

4,362,710

39,419

0.19

Year-to-date

September 30

2025

December 31

2024

Enterprise Balances Acquired

Organic Growth/(Decline)

Organic Growth/(Decline)%

Loans

Commercial and industrial

4,667,262

3,246,455

1,091,649

329,158

7.59

Commercial real estate

8,106,490

6,839,705

1,629,698

(362,913

)

(4.28

Commercial construction

1,439,876

782,078

664,281

(6,483

)

(0.45

Total commercial

14,213,628

10,868,238

3,385,628

(40,238

)

(0.28

Residential real estate

2,917,101

2,460,600

425,695

30,806

1.07

Home equity

1,284,139

1,140,168

95,096

48,875

3.96

Total consumer real estate

4,201,240

3,600,768

520,791

79,681

1.93

Total other consumer

37,575

39,372

6,693

(8,490

)

(18.43

Total loans

18,452,443

14,508,378

3,913,112

30,953

0.17

Deposits

Noninterest-bearing demand deposits

5,635,911

4,390,703

1,040,758

204,450

3.76

Savings and interest checking

7,111,570

5,207,548

1,766,463

137,559

1.97

Money market

4,128,400

2,960,381

815,532

352,487

9.34

Time certificates of deposit

3,419,988

2,747,346

739,957

(67,315

)

(1.93

Total deposits

20,295,869

15,305,978

4,362,710

627,181

3.19

APPENDIX B: 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:

September 30

2025

June 30

2025

September 30

2024

Tangible common equity

(Dollars in thousands, except per share data)

Stockholders’ equity (GAAP)

3,546,887

3,074,856

2,977,148

(a)

Less: Goodwill and other intangibles

1,225,106

994,814

998,773

Tangible common equity (Non-GAAP)

2,321,781

2,080,042

1,978,375

(b)

Tangible assets

Assets (GAAP)

24,993,239

20,048,934

19,408,116

(c)

Less: Goodwill and other intangibles

1,225,106

994,814

998,773

Tangible assets (Non-GAAP)

23,768,133

19,054,120

18,409,343

(d)

Common Shares

49,787,305

42,627,286

42,480,765

(e)

Common equity to assets ratio (GAAP)

14.19

15.34

(a/c)

Tangible common equity to tangible assets ratio (Non-GAAP)

9.77

10.92

10.75

(b/d)

Book value per share (GAAP)

71.24

72.13

70.08

(a/e)

Tangible book value per share (Non-GAAP)

46.63

48.80

46.57

(b/e)

APPENDIX C: 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

Nine Months Ended

September 30

2025

June 30

2025

September 30

2024

September 30

2025

September 30

2024

Net interest income (GAAP)

203,344

147,496

141,703

496,345

417,068

Noninterest income (GAAP)

40,398

34,308

33,549

107,245

95,822

Total revenue (GAAP)

243,742

181,804

175,252

603,590

512,890

Noninterest expense (GAAP)

160,836

108,798

100,443

375,512

299,944

Less:

Merger and acquisition expense

23,893

2,239

—

27,287

—

Noninterest expense on an operating basis (Non-GAAP)

136,943

106,559

100,443

348,225

299,944

Average assets

24,930,449

19,743,746

19,340,302

21,398,419

19,312,949

Average common equity (GAAP)

3,557,840

3,067,050

2,969,236

3,221,136

2,924,518

Less: Average goodwill and other intangibles

1,229,973

995,380

999,604

1,074,892

1,001,022

Tangible average tangible common equity (Non-GAAP)

2,327,867

2,071,670

1,969,632

2,146,244

1,923,496

Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP)

Net income (GAAP)

34,262

51,101

42,947

129,787

142,047

Provision for non-PCD acquired loans

34,519

—

34,519

—

Noninterest expense components

Add - merger and acquisition expenses

23,893

2,239

—

27,287

—

Noncore increases to income before taxes

58,412

2,239

—

61,806

—

Net taxes associated with noncore items (1)

(15,320

)

(544

)

—

(15,913

)

—

Add - adjustment for tax effect of previously incurred merger and acquisition expenses

—

657

—

381

—

Total tax impact

(15,320

)

113

—

(15,532

)

—

Noncore increases to net income

43,092

2,352

—

46,274

—

Operating net income (Non-GAAP)

77,354

53,453

42,947

176,061

142,047

Ratios

Return on average assets (GAAP) (calculated by dividing net income by average assets)

0.55

1.04

0.88

0.81

0.98

Return on average assets on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average assets)

1.23

1.09

0.88

1.10

0.98

Return on average common equity (GAAP) (calculated by dividing net income by average common equity)

3.82

6.68

5.75

5.39

6.49

Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average common equity)

8.63

6.99

5.75

7.31

6.49

Return on average tangible common equity (Non-GAAP) (calculated by dividing annualized net income by average tangible common equity)

5.84

9.89

8.67

8.09

9.86

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)

13.18

10.35

8.67

10.97

9.86

Noninterest income as a % of total revenue (GAAP) (calculated by dividing total noninterest income by total revenue)

16.57

18.87

19.14

17.77

18.68

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)

16.57

18.87

19.14

17.77

18.68

Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)

65.99

59.84

57.31

62.21

58.48

Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)

56.18

58.61

57.31

57.69

58.48

APPENDIX D: Net Interest Margin Analysis & Non-GAAP Reconciliation of Adjusted Margin

(Unaudited, dollars in thousands)

Three Months Ended

September 30, 2025

June 30, 2025

Volume

Interest

Margin Impact

Volume

Interest

Margin Impact

Reported total interest earning assets

22,430,232

204,731

3.62

17,672,302

148,672

3.37

Acquisition fair value marks:

Loan accretion

(4,729

)

(0.08

(235

)

—

Nonaccrual interest, net

(84

)

—

)

—

Other adjustments

(2,088

)

129

—

(2,291

)

135

—

Adjusted margin (Non-GAAP)

22,428,144

200,047

3.54

17,670,011

148,567

3.37