Independent Bank Corp. Reports Second Quarter Net Income of $81.8 Million
ROCKLAND, Mass.--( BUSINESS WIRE)--Independent Bank Corp. (Nasdaq Global Select Market: INDB), parent of Rockland Trust Company, today announced 2026 second quarter net income of $81.8 million, or $1.70 per diluted share, as compared to 2026 first quarter net income of $79.9 million, or $1.63 per diluted share. Excluding merger-related costs associated with the Company’s third quarter 2025 acquisition of Enterprise Bancorp, Inc. (“Enterprise”) and its subsidiary, Enterprise Bank, and their related tax effects, operating net income was $82.1 million, or $1.68 per diluted share for the first quarter of 2026 (1). No merger-related costs were incurred during the second quarter of 2026.
CEO STATEMENT
“Our second quarter results reflect strong execution on many of our strategic priorities. Our low cost, core deposit funding source improved, commercial and industrial loan balances increased nicely, our fee income businesses continued to grow, and we prudently returned excess capital to our shareholders.” said Jeffrey Tengel, the Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company. “Our commitment to the communities we serve continues to pave the way for long-term growth and success for all our constituents.”
FINANCIAL HIGHLIGHTS
BALANCE SHEET
Total assets of $25.0 billion at June 30, 2026 increased $190.3 million, or 0.8%, compared to the prior quarter, driven primarily by increased cash balances from strong late quarter deposit growth.
Total loans of $18.4 billion at June 30, 2026 decreased $31.2 million, or 0.2%, compared to the prior quarter:
Total deposits increased by $294.6 million, or 1.5%, to $20.4 billion at June 30, 2026, as compared to the prior quarter, while average balances were consistent at $19.9 billion:
Total period end borrowings decreased by $74.8 million, or 9.6%, during the second quarter of 2026, reflecting approximately $100 million in net paydowns on Federal Home Loan Bank borrowings, partially offset by $25.0 million advanced on a working capital line of credit.
The Company’s total securities portfolio of $3.3 billion decreased by $59.3 million, or 1.8% (7.0% annualized), from the prior quarter:
Stockholders’ equity at June 30, 2026 decreased $29.7 million, or 0.8%, compared to March 31, 2026, as strong earnings were offset by the impact of share repurchases, dividends, and unrealized losses on available for sale securities recognized in other comprehensive income during the quarter:
NET INTEREST INCOME
Net interest income of $210.9 million for the second quarter of 2026 decreased $1.5 million, or 0.7%, when compared to the prior quarter:
NONINTEREST INCOME
Noninterest income of $42.4 million for the second quarter of 2026 represented an increase of $2.1 million, or 5.3%, as compared to the prior quarter. Significant changes in noninterest income for the second quarter of 2026 compared to the prior quarter included the following:
NONINTEREST EXPENSE
Noninterest expense of $140.3 million for the second quarter of 2026 represented a decrease of $2.6 million, or 1.9%, as compared to the prior quarter. Significant changes in noninterest expense for the second quarter of 2026 compared to the prior quarter included the following:
TAX RATE
The Company’s quarterly effective tax rate remained relatively consistent at 23.37% for the second quarter of 2026.
ASSET QUALITY
During the second quarter, the Company’s key asset quality activity and metrics were as follows:
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 17, 2026.
Participants may join the webcast by registering prior to the call via this link: https://events.q4inc.co m/attendee/641707448. A replay of the webcast will be made available on the Company’s website at https://indb.rocklandtrust.com by selecting Second Quarter 2026 Earnings Call. The webcast replay will be available until July 17, 2027.
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”) and the associated adjusted loan yield (which is calculated by dividing annualized interest income on loans, plus or minus non-core or other adjustments, by average loans), 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 and adjusted loan yield to determine any items that may impact these metrics that may be one-time in nature or not reflective of the 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 and adjusted loan yield 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
% Change
June 30
2026
March 31
2026
June 30
2025
Jun 2026 vs.
Jun 2026 vs.
Mar 2026
Jun 2025
Assets
Cash and due from banks
$
251,971
$
223,291
$
219,414
12.84
%
14.84
%
Interest-earning deposits with banks
749,255
505,687
681,820
48.17
%
9.89
%
Securities
Trading
4,835
5,525
4,801
(12.49
)%
0.71
%
Equities
21,602
21,518
21,258
0.39
%
1.62
%
Available for sale
2,075,972
2,088,365
1,286,318
(0.59
)%
61.39
%
Held to maturity
1,210,310
1,256,566
1,382,903
(3.68
)%
(12.48
)%
Total securities
3,312,719
3,371,974
2,695,280
(1.76
)%
22.91
%
Loans held for sale
21,982
16,758
16,792
31.17
%
30.91
%
Loans
Commercial and industrial
4,730,827
4,651,453
3,426,938
1.71
%
38.05
%
Commercial real estate
7,944,099
8,181,340
6,614,523
(2.90
)%
20.10
%
Commercial construction
1,464,449
1,403,613
798,808
4.33
%
83.33
%
Total commercial
14,139,375
14,236,406
10,840,269
(0.68
)%
30.43
%
Residential real estate
2,870,277
2,842,144
2,489,166
0.99
%
15.31
%
Home equity
1,342,797
1,307,746
1,168,097
2.68
%
14.96
%
Total consumer real estate
4,213,074
4,149,890
3,657,263
1.52
%
15.20
%
Other consumer
41,878
39,182
36,296
6.88
%
15.38
%
Total loans
18,394,327
18,425,478
14,533,828
(0.17
)%
26.56
%
Less: allowance for credit losses
(195,899
)
(190,560
)
(144,773
)
2.80
%
35.31
%
Net loans
18,198,428
18,234,918
14,389,055
(0.20
)%
26.47
%
Federal Home Loan Bank stock
13,631
17,752
21,052
(23.21
)%
(35.25
)%
Bank premises and equipment, net
217,877
217,695
188,883
0.08
%
15.35
%
Goodwill
1,090,610
1,090,610
985,072
—
%
10.71
%
Other intangible assets
119,896
126,687
9,742
(5.36
)%
1,130.71
%
Cash surrender value of life insurance policies
381,230
380,423
305,077
0.21
%
24.96
%
Other assets
616,295
597,785
536,747
3.10
%
14.82
%
Total assets
$
24,973,894
$
24,783,580
$
20,048,934
0.77
%
24.56
%
Liabilities and Stockholders’ Equity
Deposits
Noninterest-bearing demand deposits
$
5,709,647
$
5,633,079
$
4,525,907
1.36
%
26.15
%
Savings and interest checking
6,503,521
6,310,870
5,279,280
3.05
%
23.19
%
Money market
4,929,495
4,898,267
3,368,354
0.64
%
46.35
%
Time certificates of deposit
3,249,455
3,255,294
2,720,199
(0.18
)%
19.46
%
Total deposits
20,392,118
20,097,510
15,893,740
1.47
%
28.30
%
Borrowings
Federal Home Loan Bank and other borrowings
216,719
316,734
400,500
(31.58
)%
(45.89
)%
Line of credit, net
124,984
99,969
—
25.02
%
100.00
%
Junior subordinated debentures, net
62,864
62,863
62,861
—
%
—
%
Subordinated debentures, net
296,898
296,690
296,067
0.07
%
0.28
%
Total borrowings
701,465
776,256
759,428
(9.63
)%
(7.63
)%
Total deposits and borrowings
21,093,583
20,873,766
16,653,168
1.05
%
26.66
%
Other liabilities
367,948
367,773
320,910
0.05
%
14.66
%
Total liabilities
21,461,531
21,241,539
16,974,078
1.04
%
26.44
%
Stockholders’ equity
Common stock
473
483
424
(2.07
)%
11.56
%
Additional paid in capital
2,201,250
2,272,910
1,914,556
(3.15
)%
14.97
%
Retained earnings
1,369,306
1,317,946
1,217,959
3.90
%
12.43
%
Accumulated other comprehensive loss, net of tax
(58,666
)
(49,298
)
(58,083
)
19.00
%
1.00
%
Total stockholders' equity
3,512,363
3,542,041
3,074,856
(0.84
)%
14.23
%
Total liabilities and stockholders’ equity
$
24,973,894
$
24,783,580
$
20,048,934
0.77
%
24.56
%
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, dollars in thousands, except per share data)
Three Months Ended
% Change
% Change
June 30
2026
March 31
2026
June 30
2025
Jun 2026 vs.
Jun 2026 vs.
Mar 2026
Jun 2025
Interest income
Interest on federal funds sold and short-term investments
$
2,633
$
3,657
$
4,393
(28.00
)%
(40.06
)%
Interest and dividends on securities
26,200
25,374
15,881
3.26
%
64.98
%
Interest and fees on loans
260,249
260,982
197,778
(0.28
)%
31.59
%
Interest on loans held for sale
210
252
140
(16.67
)%
50.00
%
Total interest income
289,292
290,265
218,192
(0.34
)%
32.59
%
Interest expense
Interest on deposits
67,641
66,935
59,843
1.05
%
13.03
%
Interest on borrowings
10,724
10,871
10,853
(1.35
)%
(1.19
)%
Total interest expense
78,365
77,806
70,696
0.72
%
10.85
%
Net interest income
210,927
212,459
147,496
(0.72
)%
43.01
%
Provision for credit losses
6,250
5,500
7,200
13.64
%
(13.19
)%
Net interest income after provision for credit losses
204,677
206,959
140,296
(1.10
)%
45.89
%
Noninterest income
Deposit account fees
9,393
9,249
7,141
1.56
%
31.54
%
Interchange and ATM fees
5,686
5,018
4,997
13.31
%
13.79
%
Investment management and advisory
14,961
14,165
11,380
5.62
%
31.47
%
Mortgage banking income
1,174
1,270
1,072
(7.56
)%
9.51
%
Increase in cash surrender value of life insurance policies
2,636
2,712
2,038
(2.80
)%
29.34
%
Gain on life insurance benefits
672
346
1,650
94.22
%
(59.27
)%
Loan level derivative income
1,317
910
66
44.73
%
1,895.45
%
Other noninterest income
6,552
6,592
5,964
(0.61
)%
9.86
%
Total noninterest income
42,391
40,262
34,308
5.29
%
23.56
%
Noninterest expenses
Salaries and employee benefits
79,088
80,737
62,856
(2.04
)%
25.82
%
Occupancy and equipment expenses
16,170
17,306
13,158
(6.56
)%
22.89
%
Data processing and facilities management
3,208
3,259
2,783
(1.56
)%
15.27
%
FDIC assessment
3,158
3,328
2,373
(5.11
)%
33.08
%
Amortization of intangible assets
6,791
6,890
1,197
(1.44
)%
467.34
%
Merger and acquisition expense
—
3,024
2,239
(100.00
)%
(100.00
)%
Other noninterest expenses
31,857
28,374
24,192
12.28
%
31.68
%
Total noninterest expenses
140,272
142,918
108,798
(1.85
)%
28.93
%
Income before income taxes
106,796
104,303
65,806
2.39
%
62.29
%
Provision for income taxes
24,958
24,384
14,705
2.35
%
69.72
%
Net Income
$
81,838
$
79,919
$
51,101
2.40
%
60.15
%
Weighted average common shares (basic)
48,054,411
48,970,060
42,623,978
Common share equivalents
22,344
29,685
17,153
Weighted average common shares (diluted)
48,076,755
48,999,745
42,641,131
Basic earnings per share
$
1.70
$
1.63
$
1.20
4.29
%
41.67
%
Diluted earnings per share
$
1.70
$
1.63
$
1.20
4.29
%
41.67
%
Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):
Net income
$
81,838
$
79,919
$
51,101
Noninterest expense components
Add - merger and acquisition expenses
—
3,024
2,239
Noncore increases to income before taxes
—
3,024
2,239
Net taxes associated with noncore items (1)
—
(830
)
(544
)
Add - adjustment for tax effect of previously incurred merger and acquisition expenses
—
—
657
Total tax impact
—
(830
)
113
Noncore increases to net income
—
2,194
2,352
Operating net income (Non-GAAP)
$
81,838
$
82,113
$
53,453
(0.33
)%
53.10
%
Diluted earnings per share, on an operating basis (Non-GAAP)
$
1.70
$
1.68
$
1.25
1.19
%
36.00
%
(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)
3.85
%
3.90
%
3.37
%
Return on average assets (calculated by dividing annualized net income by average assets) (GAAP)
1.34
%
1.31
%
1.04
%
Return on average assets on an operating basis (Non-GAAP) (calculated by dividing annualized operating net income by average assets)
1.34
%
1.35
%
1.09
%
Return on average common equity (calculated by dividing annualized net income by average common equity) (GAAP)
9.24
%
9.02
%
6.68
%
Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing annualized operating net income by average common equity)
9.24
%
9.27
%
6.99
%
Return on average tangible common equity (Non-GAAP) (calculated by dividing annualized net income by average tangible common equity)
14.05
%
13.67
%
9.89
%
Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing annualized operating net income by average tangible common equity)
14.05
%
14.05
%
10.35
%
Noninterest income as a % of total revenue (GAAP) (calculated by dividing total noninterest income by net interest income plus total noninterest income)
16.73
%
15.93
%
18.87
%
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)
16.73
%
15.93
%
18.87
%
Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)
55.37
%
56.55
%
59.84
%
Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)
55.37
%
55.36
%
58.61
%
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, dollars in thousands, except per share data)
Six Months Ended
% Change
June 30
2026
June 30
2025
Jun 2026 vs.
Jun 2025
Interest income
Interest on federal funds sold and short-term investments
$
6,290
$
5,831
7.87
%
Interest and dividends on securities
51,574
31,178
65.42
%
Interest and fees on loans
521,231
392,871
32.67
%
Interest on loans held for sale
462
232
99.14
%
Total interest income
579,557
430,112
34.75
%
Interest expense
Interest on deposits
134,576
119,279
12.82
%
Interest on borrowings
21,595
17,832
21.10
%
Total interest expense
156,171
137,111
13.90
%
Net interest income
423,386
293,001
44.50
%
Provision for credit losses
11,750
22,200
(47.07
)%
Net interest income after provision for credit losses
411,636
270,801
52.01
%
Noninterest income
Deposit account fees
18,642
14,194
31.34
%
Interchange and ATM fees
10,704
9,619
11.28
%
Investment management and advisory
29,126
22,600
28.88
%
Mortgage banking income
2,444
1,813
34.80
%
Increase in cash surrender value of life insurance policies
5,348
4,103
30.34
%
Gain on life insurance benefits
1,018
1,650
(38.30
)%
Loan level derivative income
2,227
1,108
100.99
%
Other noninterest income
13,143
11,760
11.76
%
Total noninterest income
82,652
66,847
23.64
%
Noninterest expenses
Salaries and employee benefits
159,825
124,787
28.08
%
Occupancy and equipment expenses
33,476
27,017
23.91
%
Data processing and facilities management
6,467
5,425
19.21
%
FDIC assessment
6,486
5,361
20.98
%
Amortization of intangible assets
13,681
2,541
438.41
%
Merger and acquisition expense
3,024
3,394
(10.90
)%
Other noninterest expenses
60,230
46,151
30.51
%
Total noninterest expenses
283,189
214,676
31.91
%
Income before income taxes
211,099
122,972
71.66
%
Provision for income taxes
49,342
27,447
79.77
%
Net Income
$
161,757
$
95,525
69.33
%
Weighted average common shares (basic)
48,509,706
42,587,330
Common share equivalents
26,014
19,753
Weighted average common shares (diluted)
48,535,720
42,607,083
Basic earnings per share
$
3.33
$
2.24
48.66
%
Diluted earnings per share
$
3.33
$
2.24
48.66
%
Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):
Net Income
$
161,757
$
95,525
Noninterest expense components
Add - merger and acquisition expenses
3,024
3,394
Noncore increases to income before taxes
3,024
3,394
Net taxes associated with noncore items (1)
(830
)
(593
)
Add - adjustment for tax effect of previously incurred merger and acquisition expenses
—
381
Total tax impact
(830
)
(212
)
Noncore increases to net income
2,194
3,182
Operating net income (Non-GAAP)
$
163,951
$
98,707
66.10
%
Diluted earnings per share, on an operating basis (Non-GAAP)
$
3.38
$
2.32
45.69
%
(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)
3.88
%
3.40
%
Return on average assets (GAAP) (calculated by dividing net income by average assets)
1.32
%
0.98
%
Return on average assets on an operating basis (Non-GAAP) (calculated by dividing operating net income by average assets)
1.34
%
1.02
%
Return on average common equity (GAAP) (calculated by dividing net income by average common equity)
9.13
%
6.32
%
Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing operating net income by average common equity)
9.26
%
6.53
%
Return on average tangible common equity (Non-GAAP) (calculated by dividing net income by average tangible common equity)
13.86
%
9.38
%
Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing operating net income by average tangible common equity)
14.05
%
9.69
%
Noninterest income as a % of total revenue (GAAP) (calculated by dividing total noninterest income by net interest income plus total noninterest income)
16.33
%
18.58
%
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)
16.33
%
18.58
%
Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)
55.96
%
59.66
%
Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)
55.36
%
58.71
%
ASSET QUALITY
(Unaudited, dollars in thousands)
Nonperforming Assets At
June 30
2026
March 31
2026
June 30
2025
Nonperforming loans
Commercial & industrial loans
$
9,204
$
8,453
$
13,717
Commercial real estate loans
64,544
64,851
28,717
Commercial construction loans
2,925
698
—
Residential real estate loans
20,305
15,593
10,013
Home equity
6,648
7,011
3,765
Other consumer
16
37
5
Total nonperforming loans
103,642
96,643
56,217
Other real estate owned
206
2,100
2,100
Total nonperforming assets
$
103,848
$
98,743
$
58,317
Nonperforming loans/gross loans
0.56
%
0.52
%
0.39
%
Nonperforming assets/total assets
0.42
%
0.40
%
0.29
%
Allowance for credit losses/nonperforming loans
189.02
%
197.18
%
257.53
%
Allowance for credit losses/total loans
1.06
%
1.03
%
1.00
%
Delinquent loans/total loans
0.43
%
0.41
%
0.20
%
Nonperforming Assets Reconciliation for the Three Months Ended
June 30
2026
March 31
2026
June 30
2025
Nonperforming assets beginning balance
$
98,743
$
85,657
$
89,493
New to nonperforming
28,377
24,714
13,411
Loans charged-off
(1,865
)
(5,776
)
(6,966
)
Loans paid-off
(18,701
)
(5,272
)
(35,977
)
Loans transferred to other real estate owned
—
—
(2,100
)
Loans restored to performing status
(831
)
(608
)
(1,659
)
New to other real estate owned
206
—
2,100
Sale of other real estate owned
(2,100
)
—
—
Other
19
28
15
Nonperforming assets ending balance
$
103,848
$
98,743
$
58,317
Net Charge-Offs (Recoveries)
Three Months Ended
Six Months Ended
June 30
2026
March 31
2026
June 30
2025
June 30
2026
June 30
2025
Net charge-offs (recoveries)
Commercial and industrial loans
$
464
$
311
$
2,793
$
775
$
2,945
Commercial real estate loans
58
4,034
3,347
4,092
43,343
Home equity
(43
)
(12
)
(49
)
(55
)
29
Other consumer
432
484
428
916
1,094
Total net charge-offs
$
911
$
4,817
$
6,519
$
5,728
$
47,411
Net charge-offs to average loans (annualized)
0.02
%
0.11
%
0.18
%
0.06
%
0.66
%
BALANCE SHEET AND CAPITAL RATIOS
June 30
2026
March 31
2026
June 30
2025
Gross loans/total deposits
90.20
%
91.68
%
91.44
%
Common equity tier 1 capital ratio (1)
12.80
%
12.89
%
14.70
%
Tier 1 leverage capital ratio (1)
10.20
%
10.23
%
11.44
%
Common equity to assets ratio GAAP
14.06
%
14.29
%
15.34
%
Tangible common equity to tangible assets ratio (2)
9.69
%
9.86
%
10.92
%
Book value per share GAAP
$
73.76
$
72.92
$
72.13
Tangible book value per share (2)
$
48.34
$
47.86
$
48.80
(1) Estimated number for June 30, 2026.
(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, 2026
March 31, 2026
June 30, 2025
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
$
304,850
$
2,633
3.46
%
$
415,532
$
3,657
3.57
%
$
406,108
$
4,393
4.34
%
Securities
Securities - trading
5,549
—
—
%
5,108
—
—
%
4,796
—
—
%
Securities - taxable investments
3,344,236
26,098
3.13
%
3,325,253
25,260
3.08
%
2,737,166
15,879
2.33
%
Securities - nontaxable investments (1)
10,334
129
5.01
%
11,634
144
5.02
%
195
2
4.11
%
Total securities
$
3,360,119
$
26,227
3.13
%
$
3,341,995
$
25,404
3.08
%
$
2,742,157
$
15,881
2.32
%
Loans held for sale
15,109
210
5.57
%
19,495
252
5.24
%
9,839
140
5.71
%
Loans
Commercial and industrial (1)
4,684,134
72,323
6.19
%
4,605,582
70,426
6.20
%
3,363,944
51,287
6.12
%
Commercial real estate (1)
8,096,126
111,044
5.50
%
8,240,241
112,466
5.54
%
6,672,633
87,096
5.24
%
Commercial construction (1)
1,455,154
24,051
6.63
%
1,404,278
23,926
6.91
%
809,839
13,766
6.82
%
Total commercial
14,235,414
207,418
5.84
%
14,250,101
206,818
5.89
%
10,846,415
152,149
5.63
%
Residential real estate
2,849,629
33,774
4.75
%
2,856,572
35,503
5.04
%
2,471,810
28,079
4.56
%
Home equity
1,327,930
19,847
5.99
%
1,300,202
19,429
6.06
%
1,160,123
18,144
6.27
%
Total consumer real estate
4,177,559
53,621
5.15
%
4,156,774
54,932
5.36
%
3,631,933
46,223
5.10
%
Other consumer
42,086
667
6.36
%
43,789
664
6.15
%
35,850
582
6.51
%
Total loans
$
18,455,059
$
261,706
5.69
%
$
18,450,664
$
262,414
5.77
%
$
14,514,198
$
198,954
5.50
%
Total interest-earning assets
$
22,135,137
$
290,776
5.27
%
$
22,227,686
$
291,727
5.32
%
$
17,672,302
$
219,368
4.98
%
Cash and due from banks
226,735
228,015
196,147
Federal Home Loan Bank stock
16,942
20,474
22,900
Other assets
2,196,868
2,226,216
1,852,397
Total assets
$
24,575,682
$
24,702,391
$
19,743,746
Interest-bearing liabilities
Deposits
Savings and interest checking accounts
$
6,318,590
$
16,121
1.02
%
$
6,333,509
$
15,883
1.02
%
$
5,214,871
$
16,553
1.27
%
Money market
4,830,122
25,328
2.10
%
4,862,134
24,672
2.06
%
3,295,080
19,090
2.32
%
Time deposits
3,231,355
26,192
3.25
%
3,269,232
26,380
3.27
%
2,705,299
24,200
3.59
%
Total interest-bearing deposits
$
14,380,067
$
67,641
1.89
%
$
14,464,875
$
66,935
1.88
%
$
11,215,250
$
59,843
2.14
%
Borrowings
Federal Home Loan Bank and other borrowings
296,624
2,780
3.76
%
380,062
3,596
3.84
%
432,392
4,233
3.93
%
Line of Credit
104,096
1,423
5.48
%
54,404
755
5.63
%
—
—
—
%
Junior subordinated debentures
62,863
876
5.59
%
62,863
874
5.64
%
62,861
976
6.23
%
Subordinated debentures
296,778
5,645
7.63
%
296,573
5,646
7.72
%
296,373
5,644
7.64
%
Total borrowings
$
760,361
$
10,724
5.66
%
$
793,902
$
10,871
5.55
%
$
791,626
$
10,853
5.50
%
Total interest-bearing liabilities
$
15,140,428
$
78,365
2.08
%
$
15,258,777
$
77,806
2.07
%
$
12,006,876
$
70,696
2.36
%
Noninterest-bearing demand deposits
5,552,302
5,498,339
4,372,122
Other liabilities
332,250
353,886
297,698
Total liabilities
$
21,024,980
$
21,111,002
$
16,676,696
Stockholders’ equity
3,550,702
3,591,389
3,067,050
Total liabilities and stockholders’ equity
$
24,575,682
$
24,702,391
$
19,743,746
Net interest income
$
212,411
$
213,921
$
148,672
Interest rate spread (2)
3.19
%
3.25
%
2.62
%
Net interest margin (3)
3.85
%
3.90
%
3.37
%
Supplemental Information
Total deposits, including demand deposits
$
19,932,369
$
67,641
$
19,963,214
$
66,935
$
15,587,372
$
59,843
Cost of total deposits
1.36
%
1.36
%
1.54
%
Total funding liabilities, including demand deposits
$
20,692,730
$
78,365
$
20,757,116
$
77,806
$
16,378,998
$
70,696
Cost of total funding liabilities
1.52
%
1.52
%
1.73
%
(1)
(2)
(3)
Six Months Ended
June 30, 2026
June 30, 2025
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
$
359,885
$
6,290
3.52
%
$
274,490
$
5,831
4.28
%
Securities
Securities - trading
5,330
—
—
%
4,655
—
—
%
Securities - taxable investments
3,334,797
51,358
3.11
%
2,742,075
31,175
2.29
%
Securities - nontaxable investments (1)
10,981
273
5.01
%
195
3
3.10
%
Total securities
$
3,351,108
$
51,631
3.11
%
$
2,746,925
$
31,178
2.29
%
Loans held for sale
17,290
462
5.39
%
8,127
232
5.76
%
Loans
Commercial and industrial (1)
4,645,075
142,749
6.20
%
3,307,764
102,181
6.23
%
Commercial real estate (1)
8,167,785
223,510
5.52
%
6,738,253
173,182
5.18
%
Commercial construction (1)
1,429,856
47,977
6.77
%
797,643
26,933
6.81
%
Total commercial
14,242,716
414,236
5.87
%
10,843,660
302,296
5.62
%
Residential real estate
2,853,081
69,277
4.90
%
2,468,158
55,795
4.56
%
Home equity
1,314,142
39,276
6.03
%
1,150,212
35,918
6.30
%
Total consumer real estate
4,167,223
108,553
5.25
%
3,618,370
91,713
5.11
%
Other consumer
42,934
1,331
6.25
%
37,227
1,175
6.36
%
Total loans
$
18,452,873
$
524,120
5.73
%
$
14,499,257
$
395,184
5.50
%
Total interest-earning assets
$
22,181,156
$
582,503
5.30
%
$
17,528,799
$
432,425
4.97
%
Cash and due from banks
227,372
196,838
Federal Home Loan Bank stock
18,698
25,260
Other assets
2,211,460
1,852,236
Total assets
$
24,638,686
$
19,603,133
Interest-bearing liabilities
Deposits
Savings and interest checking accounts
$
6,326,007
$
32,004
1.02
%
$
5,218,591
$
32,715
1.26
%
Money market
4,846,040
50,000
2.08
%
3,237,300
36,800
2.29
%
Time deposits
3,250,189
52,572
3.26
%
2,714,586
49,764
3.70
%
Total interest-bearing deposits
$
14,422,236
$
134,576
1.88
%
$
11,170,477
$
119,279
2.15
%
Borrowings
Federal Home Loan Bank and other borrowings
338,112
6,376
3.80
%
489,733
9,799
4.03
%
Line of Credit
79,388
2,178
5.53
%
—
—
—
%
Junior subordinated debentures
62,863
1,750
5.61
%
62,861
1,950
6.26
%
Subordinated debentures
296,676
11,291
7.67
%
160,477
6,083
7.64
%
Total borrowings
$
777,039
$
21,595
5.60
%
$
713,071
$
17,832
5.04
%
Total interest-bearing liabilities
$
15,199,275
$
156,171
2.07
%
$
11,883,548
$
137,111
2.33
%
Noninterest-bearing demand deposits
5,525,470
4,358,950
Other liabilities
343,008
310,641
Total liabilities
$
21,067,753
$
16,553,139
Stockholders’ equity
3,570,933
3,049,994
Total liabilities and stockholders’ equity
$
24,638,686
$
19,603,133
Net interest income
$
426,332
$
295,314
Interest rate spread (2)
3.23
%
2.64
%
Net interest margin (3)
3.88
%
3.40
%
Supplemental Information
Total deposits, including demand deposits
$
19,947,706
$
134,576
$
15,529,427
$
119,279
Cost of total deposits
1.36
%
1.55
%
Total funding liabilities, including demand deposits
$
20,724,745
$
156,171
$
16,242,498
$
137,111
Cost of total funding liabilities
1.52
%
1.70
%
(1)
(2)
(3)
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
2026
March 31
2026
June 30
2025
Tangible common equity
(Dollars in thousands, except per share data)
Stockholders’ equity (GAAP)
$
3,512,363
$
3,542,041
$
3,074,856
(a)
Less: Goodwill and other intangibles
1,210,506
1,217,297
994,814
Tangible common equity (Non-GAAP)
$
2,301,857
$
2,324,744
$
2,080,042
(b)
Tangible assets
Assets (GAAP)
$
24,973,894
$
24,783,580
$
20,048,934
(c)
Less: Goodwill and other intangibles
1,210,506
1,217,297
994,814
Tangible assets (Non-GAAP)
$
23,763,388
$
23,566,283
$
19,054,120
(d)
Common Shares
47,618,626
48,572,237
42,627,286
(e)
Common equity to assets ratio (GAAP)
14.06
%
14.29
%
15.34
%
(a/c)
Tangible common equity to tangible assets ratio (Non-GAAP)
9.69
%
9.86
%
10.92
%
(b/d)
Book value per share (GAAP)
$
73.76
$
72.92
$
72.13
(a/e)
Tangible book value per share (Non-GAAP)
$
48.34
$
47.86
$
48.80
(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
2026
March 31
2026
June 30
2025
June 30
2026
June 30
2025
Net interest income (GAAP)
$
210,927
$
212,459
$
147,496
$
423,386
$
293,001
Noninterest income (GAAP)
$
42,391
$
40,262
$
34,308
$
82,652
$
66,847
Total revenue (GAAP)
$
253,318
$
252,721
$
181,804
$
506,038
$
359,848
Noninterest expense (GAAP)
$
140,272
$
142,918
$
108,798
$
283,189
$
214,676
Less:
Merger and acquisition expense
—
3,024
2,239
3,024
3,394
Noninterest expense on an operating basis (Non-GAAP)
$
140,272
$
139,894
$
106,559
$
280,165
$
211,282
Average assets
$
24,575,682
$
24,702,391
$
19,743,746
$
24,638,686
$
19,603,133
Average common equity (GAAP)
$
3,550,702
$
3,591,389
$
3,067,050
$
3,570,933
$
3,049,994
Less: Average goodwill and other intangibles
1,214,434
1,221,201
995,380
1,217,799
996,067
Average tangible common equity (Non-GAAP)
$
2,336,268
$
2,370,188
$
2,071,670
$
2,353,134
$
2,053,927
Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP)
Net income (GAAP)
$
81,838
$
79,919
$
51,101
$
161,757
$
95,525
Noninterest expense components
Add - merger and acquisition expenses
—
3,024
2,239
3,024
3,394
Noncore increases to income before taxes
—
3,024
2,239
3,024
3,394
Net taxes associated with noncore items (1)
—
(830
)
(544
)
(830
)
(593
)
Add - adjustment for tax effect of previously incurred merger and acquisition expenses
—
—
657
—
381
Total tax impact
—
(830
)
113
(830
)
(212
)
Noncore increases to net income
—
2,194
2,352
2,194
3,182
Operating net income (Non-GAAP)
$
81,838
$
82,113
$
53,453
$
163,951
$
98,707
(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.
Ratios
Return on average assets (GAAP) (calculated by dividing annualized net income by average assets)
1.34
%
1.31
%
1.04
%
1.32
%
0.98
%
Return on average assets on an operating basis (Non-GAAP) (calculated by dividing annualized operating net income by average assets)
1.34
%
1.35
%
1.09
%
1.34
%
1.02
%
Return on average common equity (GAAP) (calculated by dividing annualized net income by average common equity)
9.24
%
9.02
%
6.68
%
9.13
%
6.32
%
Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing annualized operating net income by average common equity)
9.24
%
9.27
%
6.99
%
9.26
%
6.53
%
Return on average tangible common equity (Non-GAAP) (calculated by dividing annualized net income by average tangible common equity)
14.05
%
13.67
%
9.89
%
13.86
%
9.38
%
Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing annualized operating net income by average tangible common equity)
14.05
%
14.05
%
10.35
%
14.05
%
9.69
%
Noninterest income as a % of total revenue (GAAP) (calculated by dividing total noninterest income by total revenue)
16.73
%
15.93
%
18.87
%
16.33
%
18.58
%
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)
16.73
%
15.93
%
18.87
%
16.33
%
18.58
%
Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)
55.37
%
56.55
%
59.84
%
55.96
%
59.66
%
Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)
55.37
%
55.36
%
58.61
%
55.36
%
58.71
%
APPENDIX C: Net Interest Margin Analysis & Non-GAAP Reconciliation of Adjusted Margin
(Unaudited, dollars in thousands)
Three Months Ended
June 30, 2026
March 31, 2026
Volume
Interest
Margin Impact
Volume
Interest
Margin Impact
Reported total interest earning assets
$
22,135,137
$
212,411
3.85
%
$
22,227,686
$
213,921
3.90
%
Acquisition fair value marks:
Loan accretion
(4,439
)
(0.08
)%
(9,186
)
(0.17
)%
Nonaccrual interest, net
143
—
%
(54
)
—
%
Other adjustments
(1,453
)
(497
)
(0.01
)%
(1,626
)
(667
)
(0.01
)%
Adjusted margin (Non-GAAP)
$
22,133,684
$
207,618
3.76
%
$
22,226,060
$
204,014
3.72
%