Independent Bank Corp. Reports Fourth Quarter Net Income of $75.3 Million
ROCKLAND, Mass.--( BUSINESS WIRE)--Independent Bank Corp. (Nasdaq Global Select Market: INDB), parent of Rockland Trust Company, today announced 2025 fourth quarter net income of $75.3 million, or $1.52 per diluted share, as compared to 2025 third quarter net income of $34.3 million, or $0.69 per diluted share. Excluding merger-related costs and the one-time provision for credit losses associated with the Company’s third quarter acquisition of Enterprise Bancorp, Inc. (“Enterprise”) and its subsidiary, Enterprise Bank, and their related tax effects, operating net income was $84.4 million, or $1.70 per diluted share for the fourth quarter of 2025 compared to operating net income of $77.4 million, or $1.55 per diluted share for the third quarter of 2025 (1).
CEO STATEMENT
“Our fourth quarter results reflect ongoing growth in the Bank’s financial performance, bolstered by the successful integration of our recent Enterprise acquisition,” said Jeffrey Tengel, the Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company. “I am grateful to our colleagues for their exceptional teamwork and steadfast commitment to creating meaningful, lasting relationships with our customers. We are energized and well positioned to build on our momentum in the new year.”
FINANCIAL HIGHLIGHTS
BALANCE SHEET
Total assets of $24.9 billion at December 31, 2025 decreased $80.3 million, or 0.3%, compared to the prior quarter, driven primarily by decreased cash balances.
Total loans of $18.5 billion at December 31, 2025 increased $51.3 million, or 0.3%, compared to the prior quarter:
Total deposits decreased by $169.1 million, or 0.8%, to $20.1 billion at December 31, 2025, as compared to the prior quarter:
Total period end borrowings increased by $50.5 million, or 6.5%, during the fourth quarter of 2025, comprised of $50 million advanced on a working capital line of credit.
The Company’s total securities portfolio remained unchanged from the prior quarter at $3.3 billion:
Stockholders’ equity at December 31, 2025 increased $18.8 million, or 0.5%, compared to September 30, 2025, due primarily to strong earnings retention and unrealized gains on available for sale securities recognized in other comprehensive income, partially offset by the impact of dividends and share repurchases made during the quarter:
NET INTEREST INCOME
Net interest income for the fourth quarter of 2025 increased $9.2 million, or 4.5%, to $212.5 million, as compared to $203.3 million for the prior quarter:
NONINTEREST INCOME
Noninterest income of $41.4 million for the fourth quarter of 2025 represented an increase of $1.0 million, or 2.6%, as compared to the prior quarter. Significant changes in noninterest income for the fourth quarter of 2025 compared to the prior quarter included the following:
NONINTEREST EXPENSE
Noninterest expense of $154.4 million for the fourth quarter of 2025 represented a decrease of $6.5 million, or 4.0%, as compared to the prior quarter. The decrease was driven primarily by an $11.6 million reduction in merger and acquisition expenses, offset by approximately $5.1 million of elevated costs in certain expenses, as noted below:
The Company’s quarterly effective tax rate decreased to 20.54% for the fourth quarter of 2025 from 22.81% for the prior quarter. The decrease was due to one-time discrete adjustments combined with revised estimates based on full year results.
ASSET QUALITY
During the fourth quarter, the Company’s key asset quality activity and metrics were as follows:
(1)
Represents a non-GAAP measure. See Appendices B through D 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 fourth quarter earnings at 10:00 a.m. Eastern Time on Friday, January 23, 2026.
Participants may join the webcast by registering prior to the call via this link: https://events.q4inc.com/attendee/146435573. A replay of the webcast will be made available on the Company’s website at https://indb.rocklandtrust.com by selecting Fourth Quarter 2025 Earnings Conference Call. The webcast replay will be available until January 23, 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”), 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
% Change
December 31
2025
September 30
2025
December 31
2024
Dec 2025 vs.
Dec 2025 vs.
Sept 2025
Dec 2024
Assets
Cash and due from banks
$
229,770
$
203,388
$
187,849
12.97
%
22.32
%
Interest-earning deposits with banks
542,132
707,408
32,041
(23.36
)%
1,591.99
%
Securities
Trading
4,720
4,611
4,245
2.36
%
11.19
%
Equities
21,581
21,567
21,204
0.06
%
1.78
%
Available for sale
2,004,247
1,941,220
1,250,944
3.25
%
60.22
%
Held to maturity
1,279,027
1,357,617
1,434,956
(5.79
)%
(10.87
)%
Total securities
3,309,575
3,325,015
2,711,349
(0.46
)%
22.06
%
Loans held for sale
35,909
17,052
7,271
110.59
%
393.87
%
Loans
Commercial and industrial
4,611,789
4,532,294
3,246,455
1.75
%
42.06
%
Commercial real estate
8,275,408
8,241,458
6,839,705
0.41
%
20.99
%
Commercial construction
1,399,193
1,439,876
782,078
(2.83
)%
78.91
%
Total commercial
14,286,390
14,213,628
10,868,238
0.51
%
31.45
%
Residential real estate
2,873,443
2,917,101
2,460,600
(1.50
)%
16.78
%
Home equity - first position
506,764
511,482
490,115
(0.92
)%
3.40
%
Home equity - subordinate positions
790,898
772,657
650,053
2.36
%
21.67
%
Total consumer real estate
4,171,105
4,201,240
3,600,768
(0.72
)%
15.84
%
Other consumer
46,282
37,575
39,372
23.17
%
17.55
%
Total loans
18,503,777
18,452,443
14,508,378
0.28
%
27.54
%
Less: allowance for credit losses
(189,877
)
(190,476
)
(169,984
)
(0.31
)%
11.70
%
Net loans
18,313,900
18,261,967
14,338,394
0.28
%
27.73
%
Federal Home Loan Bank stock
21,835
21,835
31,573
—
%
(30.84
)%
Bank premises and equipment, net
218,190
221,165
193,320
(1.35
)%
12.86
%
Goodwill
1,090,610
1,090,610
985,072
—
%
10.71
%
Other intangible assets
133,576
140,632
12,284
(5.02
)%
987.40
%
Cash surrender value of life insurance policies
378,576
376,163
303,965
0.64
%
24.55
%
Other assets
638,823
628,004
570,447
1.72
%
11.99
%
Total assets
$
24,912,896
$
24,993,239
$
19,373,565
(0.32
)%
28.59
%
Liabilities and Stockholders’ Equity
Deposits
Noninterest-bearing demand deposits
$
5,600,955
$
5,635,911
$
4,390,703
(0.62
)%
27.56
%
Savings and interest checking (1)
6,482,970
6,492,791
5,207,548
(0.15
)%
24.49
%
Money market (1)
4,774,645
4,747,179
2,960,381
0.58
%
61.28
%
Time certificates of deposit
3,268,220
3,419,988
2,747,346
(4.44
)%
18.96
%
Total deposits
20,126,790
20,295,869
15,305,978
(0.83
)%
31.50
%
Borrowings
Federal Home Loan Bank and other borrowings
416,549
416,240
638,514
0.07
%
(34.76
)%
Line of credit, net
49,953
—
—
100.00
%
100.00
%
Junior subordinated debentures, net
62,862
62,862
62,860
—
%
—
%
Subordinated debentures, net
296,483
296,275
—
0.07
%
100.00
%
Total borrowings
825,847
775,377
701,374
6.51
%
17.75
%
Total deposits and borrowings
20,952,637
21,071,246
16,007,352
(0.56
)%
30.89
%
Other liabilities
394,531
375,106
373,093
5.18
%
5.75
%
Total liabilities
21,347,168
21,446,352
16,380,445
(0.46
)%
30.32
%
Stockholders’ equity
Common stock
490
495
423
(1.01
)%
15.84
%
Additional paid in capital
2,335,879
2,371,111
1,909,980
(1.49
)%
22.30
%
Retained earnings
1,269,113
1,222,843
1,172,724
3.78
%
8.22
%
Accumulated other comprehensive loss, net of tax
(39,754
)
(47,562
)
(90,007
)
(16.42
)%
(55.83
)%
Total stockholders' equity
3,565,728
3,546,887
2,993,120
0.53
%
19.13
%
Total liabilities and stockholders’ equity
$
24,912,896
$
24,993,239
$
19,373,565
(0.32
)%
28.59
%
(1)
Savings and interest checking and money market balances as of September 30, 2025 vary from amounts previously reported in the Company’s third quarter 2025 earnings release and quarterly report on Form 10-Q. The Company previously reported approximately $618.8 million of reciprocal deposits in the savings and interest category, which based upon further review by the Company subsequent to the system conversion of Enterprise, related to money market accounts and therefore should have been reported within the money market category. The Company determined that these corrections were not material to the previously issued interim consolidated financial statements. Reported amounts throughout this earnings release are reflective of this reclassification, where applicable.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, dollars in thousands, except per share data)
Three Months Ended
% Change
% Change
December 31
2025
September 30
2025
December 31
2024
Dec 2025 vs.
Dec 2025 vs.
Sept 2025
Dec 2024
Interest income
Interest on federal funds sold and short-term investments
$
6,690
$
7,245
$
3,154
(7.66
)%
112.11
%
Interest and dividends on securities
24,924
23,511
14,807
6.01
%
68.33
%
Interest and fees on loans
265,582
263,772
198,177
0.69
%
34.01
%
Interest on loans held for sale
339
225
182
50.67
%
86.26
%
Total interest income
297,535
294,753
216,320
0.94
%
37.54
%
Interest expense
Interest on deposits
74,378
80,739
64,188
(7.88
)%
15.88
%
Interest on borrowings
10,671
10,670
7,471
0.01
%
42.83
%
Total interest expense
85,049
91,409
71,659
(6.96
)%
18.69
%
Net interest income
212,486
203,344
144,661
4.50
%
46.89
%
Provision for credit losses
4,750
38,519
7,500
(87.67
)%
(36.67
)%
Net interest income after provision for credit losses
207,736
164,825
137,161
26.03
%
51.45
%
Noninterest income
Deposit account fees
9,100
8,847
7,116
2.86
%
27.88
%
Interchange and ATM fees
5,381
5,989
4,880
(10.15
)%
10.27
%
Investment management and advisory
13,793
13,652
10,783
1.03
%
27.91
%
Mortgage banking income
1,274
1,444
1,055
(11.77
)%
20.76
%
Increase in cash surrender value of life insurance policies
2,702
2,629
2,152
2.78
%
25.56
%
Gain on life insurance benefits
315
—
194
100.00
%
62.37
%
Loan level derivative income
1,232
1,224
439
0.65
%
180.64
%
Other noninterest income
7,648
6,613
5,572
15.65
%
37.26
%
Total noninterest income
41,445
40,398
32,191
2.59
%
28.75
%
Noninterest expenses
Salaries and employee benefits
81,580
81,132
59,209
0.55
%
37.78
%
Occupancy and equipment expenses
15,604
14,975
13,399
4.20
%
16.46
%
Data processing and facilities management
2,967
2,788
2,559
6.42
%
15.94
%
FDIC assessment
4,059
3,080
2,588
31.79
%
56.84
%
Amortization of intangible assets
7,054
7,315
1,417
(3.57
)%
397.81
%
Merger and acquisition expense
12,348
23,893
1,902
(48.32
)%
549.21
%
Other noninterest expenses
30,758
27,653
25,348
11.23
%
21.34
%
Total noninterest expenses
154,370
160,836
106,422
(4.02
)%
45.05
%
Income before income taxes
94,811
44,387
62,930
113.60
%
50.66
%
Provision for income taxes
19,476
10,125
12,897
92.36
%
51.01
%
Net Income
$
75,335
$
34,262
$
50,033
119.88
%
50.57
%
Weighted average common shares (basic)
49,452,717
49,934,574
42,494,409
Common share equivalents
23,623
22,433
20,432
Weighted average common shares (diluted)
49,476,340
49,957,007
42,514,841
Basic earnings per share
$
1.52
$
0.69
$
1.18
120.29
%
28.81
%
Diluted earnings per share
$
1.52
$
0.69
$
1.18
120.29
%
28.81
%
Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):
Net income
$
75,335
$
34,262
$
50,033
Provision for non-PCD acquired loans
—
34,519
—
Noninterest expense components
Add - merger and acquisition expenses
12,348
23,893
1,902
Noncore increases to income before taxes
12,348
58,412
1,902
Net taxes associated with noncore items (1)
(3,326
)
(15,320
)
(535
)
Noncore increases to net income
9,022
43,092
1,367
Operating net income (Non-GAAP)
$
84,357
$
77,354
$
51,400
9.05
%
64.12
%
Diluted earnings per share, on an operating basis (Non-GAAP)
$
1.70
$
1.55
$
1.21
9.68
%
40.50
%
(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)
3.77
%
3.62
%
3.33
%
Return on average assets (calculated by dividing net income by average assets) (GAAP)
1.20
%
0.55
%
1.02
%
Return on average assets on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average assets)
1.34
%
1.23
%
1.05
%
Return on average common equity (calculated by dividing net income by average common equity) (GAAP)
8.38
%
3.82
%
6.64
%
Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average common equity)
9.38
%
8.63
%
6.82
%
Return on average tangible common equity (Non-GAAP) (calculated by dividing net income by average tangible common equity)
12.77
%
5.85
%
9.96
%
Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average tangible common equity)
14.30
%
13.22
%
10.23
%
Noninterest income as a % of total revenue (GAAP) (calculated by dividing total noninterest income by net interest income plus total noninterest income)
16.32
%
16.57
%
18.20
%
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)
16.32
%
16.57
%
18.20
%
Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)
60.79
%
65.99
%
60.18
%
Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)
55.93
%
56.18
%
59.10
%
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, dollars in thousands, except per share data)
Years Ended
% Change
December 31
2025
December 31
2024
Dec 2025 vs.
Dec 2024
Interest income
Interest on federal funds sold and short-term investments
$
19,766
$
5,669
248.67
%
Interest and dividends on securities
79,613
57,098
39.43
%
Interest and fees on loans
922,225
789,274
16.84
%
Interest on loans held for sale
796
712
11.80
%
Total interest income
1,022,400
852,753
19.89
%
Interest expense
Interest on deposits
274,396
246,962
11.11
%
Interest on borrowings
39,173
44,062
(11.10
)%
Total interest expense
313,569
291,024
7.75
%
Net interest income
708,831
561,729
26.19
%
Provision for credit losses
65,469
36,250
80.60
%
Net interest income after provision for credit losses
643,362
525,479
22.43
%
Noninterest income
Deposit account fees
32,141
26,455
21.49
%
Interchange and ATM fees
20,989
19,055
10.15
%
Investment management and advisory
50,045
42,744
17.08
%
Mortgage banking income
4,531
4,143
9.37
%
Increase in cash surrender value of life insurance policies
9,434
8,086
16.67
%
Gain on life insurance benefits
1,965
457
329.98
%
Loan level derivative income
3,564
2,117
68.35
%
Other noninterest income
26,020
24,957
4.26
%
Total noninterest income
148,689
128,014
16.15
%
Noninterest expenses
Salaries and employee benefits
287,499
233,653
23.05
%
Occupancy and equipment expenses
57,596
52,072
10.61
%
Data processing and facilities management
11,180
9,957
12.28
%
FDIC assessment
12,500
10,892
14.76
%
Amortization of intangible assets
16,910
5,905
186.37
%
Merger and acquisition expense
39,635
1,902
1,983.86
%
Other noninterest expenses
104,561
91,985
13.67
%
Total noninterest expenses
529,881
406,366
30.40
%
Income before income taxes
262,170
247,127
6.09
%
Provision for income taxes
57,048
55,046
3.64
%
Net Income
$
205,122
$
192,081
6.79
%
Weighted average common shares (basic)
46,169,692
42,499,492
Common share equivalents
21,390
12,309
Weighted average common shares (diluted)
46,191,082
42,511,801
Basic earnings per share
$
4.44
$
4.52
(1.77
)%
Diluted earnings per share
$
4.44
$
4.52
(1.77
)%
Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):
Net Income
$
205,122
$
192,081
Provision for non-PCD acquired loans
34,519
—
Noninterest expense components
Add - merger and acquisition expenses
39,635
1,902
Noncore increases to income before taxes
74,154
1,902
Net taxes associated with noncore items (1)
(19,239
)
(535
)
Add - adjustment for tax effect of previously incurred merger and acquisition expenses
381
—
Total tax impact
(18,858
)
(535
)
Noncore increases to net income
55,296
1,367
Operating net income (Non-GAAP)
$
260,418
$
193,448
34.62
%
Diluted earnings per share, on an operating basis (Non-GAAP)
$
5.64
$
4.55
23.96
%
(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)
3.57
%
3.28
%
Return on average assets (GAAP) (calculated by dividing net income by average assets)
0.92
%
0.99
%
Return on average assets on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average assets)
1.17
%
1.00
%
Return on average common equity (GAAP) (calculated by dividing net income by average common equity)
6.20
%
6.53
%
Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average common equity)
7.87
%
6.57
%
Return on average tangible common equity (Non-GAAP) (calculated by dividing net income by average tangible common equity)
9.35
%
9.89
%
Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average tangible common equity)
11.87
%
9.96
%
Noninterest income as a % of total revenue (GAAP) (calculated by dividing total noninterest income by net interest income plus total noninterest income)
17.34
%
18.56
%
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)
17.34
%
18.56
%
Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)
61.79
%
58.92
%
Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)
57.17
%
58.64
%
ASSET QUALITY
(Unaudited, dollars in thousands)
Nonperforming Assets At
December 31
2025
September 30
2025
December 31
2024
Nonperforming loans
Commercial & industrial loans
$
9,160
$
23,173
$
14,454
Commercial real estate loans
50,515
29,216
74,343
Commercial construction loans
3,693
15,516
—
Residential real estate loans
15,043
14,406
10,243
Home equity
5,102
4,244
2,479
Other consumer
44
42
10
Total nonperforming loans
83,557
86,597
101,529
Other real estate owned
2,100
2,100
—
Total nonperforming assets
$
85,657
$
88,697
$
101,529
Nonperforming loans/gross loans
0.45
%
0.47
%
0.70
%
Nonperforming assets/total assets
0.34
%
0.35
%
0.52
%
Allowance for credit losses/nonperforming loans
227.24
%
219.96
%
167.42
%
Allowance for credit losses/total loans
1.03
%
1.03
%
1.17
%
Delinquent loans/total loans
0.32
%
0.49
%
0.60
%
Nonperforming Assets Reconciliation for the Three Months Ended
December 31
2025
September 30
2025
December 31
2024
Nonperforming assets beginning balance
$
88,697
$
58,317
$
104,358
Enterprise nonperforming assets at July 1, 2025
—
24,487
—
New to nonperforming
29,374
16,767
5,065
Loans charged-off
(5,768
)
(2,670
)
(1,652
)
Loans paid-off
(20,098
)
(6,983
)
(4,975
)
Loans restored to performing status
(4,350
)
(1,404
)
(1,234
)
Sale of other real estate owned
—
—
(110
)
Other
(2,198
)
183
77
Nonperforming assets ending balance
$
85,657
$
88,697
$
101,529
Net Charge-Offs (Recoveries)
Three Months Ended
Years Ended
December 31
2025
September 30
2025
December 31
2024
December 31
2025
December 31
2024
Net charge-offs (recoveries)
Commercial and industrial loans
$
4,555
$
1,178
$
325
$
8,678
$
6,399
Commercial real estate loans
28
21
—
43,392
—
Home equity
(15
)
(12
)
283
2
37
Other consumer
781
649
604
2,524
2,052
Total net charge-offs
$
5,349
$
1,836
$
1,212
$
54,596
$
8,488
Net charge-offs to average loans (annualized)
0.12
%
0.04
%
0.03
%
0.33
%
0.06
%
BALANCE SHEET AND CAPITAL RATIOS
December 31
2025
September 30
2025
December 31
2024
Gross loans/total deposits
91.94
%
90.92
%
94.79
%
Common equity tier 1 capital ratio (1)
12.85
%
12.84
%
14.65
%
Tier 1 leverage capital ratio (1)
10.15
%
10.11
%
11.32
%
Common equity to assets ratio GAAP
14.31
%
14.19
%
15.45
%
Tangible common equity to tangible assets ratio (2)
9.88
%
9.75
%
10.86
%
Book value per share GAAP
$
72.41
$
71.24
$
70.43
Tangible book value per share (2)
$
47.55
$
46.51
$
46.96
(1) Estimated number for December 31, 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
December 31, 2025
September 30, 2025
December 31, 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
$
673,878
$
6,690
3.94
%
$
688,394
$
7,245
4.18
%
$
270,603
$
3,154
4.64
%
Securities
Securities - trading
4,644
—
—
%
4,613
—
—
%
4,366
—
—
%
Securities - taxable investments
3,323,714
24,790
2.96
%
3,253,928
23,303
2.84
%
2,743,469
14,805
2.15
%
Securities - nontaxable investments (1)
14,047
169
4.77
%
34,803
263
3.00
%
195
2
4.08
%
Total securities
$
3,342,405
$
24,959
2.96
%
$
3,293,344
$
23,566
2.84
%
$
2,748,030
$
14,807
2.14
%
Loans held for sale
24,680
339
5.45
%
15,632
225
5.71
%
12,882
182
5.62
%
Loans
Commercial and industrial (1)
4,556,277
70,467
6.14
%
4,485,053
70,869
6.27
%
3,168,028
48,883
6.14
%
Commercial real estate (1)
8,263,339
115,746
5.56
%
8,270,774
112,855
5.41
%
6,827,896
89,779
5.23
%
Commercial construction (1)
1,397,668
24,618
6.99
%
1,446,615
24,750
6.79
%
777,094
13,805
7.07
%
Total commercial
14,217,284
210,831
5.88
%
14,202,442
208,474
5.82
%
10,773,018
152,467
5.63
%
Residential real estate
2,895,216
34,847
4.78
%
2,913,749
34,813
4.74
%
2,446,478
27,325
4.44
%
Home equity
1,288,744
20,498
6.31
%
1,275,945
21,173
6.58
%
1,134,521
18,901
6.63
%
Total consumer real estate
4,183,960
55,345
5.25
%
4,189,694
55,986
5.30
%
3,580,999
46,226
5.14
%
Other consumer
41,897
741
7.02
%
40,726
644
6.27
%
37,960
663
6.95
%
Total loans
$
18,443,141
$
266,917
5.74
%
$
18,432,862
$
265,104
5.71
%
$
14,391,977
$
199,356
5.51
%
Total interest-earning assets
$
22,484,104
$
298,905
5.27
%
$
22,430,232
$
296,140
5.24
%
$
17,423,492
$
217,499
4.97
%
Cash and due from banks
228,939
214,626
181,566
Federal Home Loan Bank stock
21,835
22,206
29,944
Other assets
2,230,165
2,263,385
1,801,204
Total assets
$
24,965,043
$
24,930,449
$
19,436,206
Interest-bearing liabilities
Deposits
Savings and interest checking accounts
$
6,355,726
$
15,118
0.94
%
$
6,333,611
$
18,927
1.19
%
$
5,181,107
$
17,171
1.32
%
Money market
4,829,717
29,949
2.46
%
4,749,763
30,019
2.51
%
3,012,556
17,612
2.33
%
Time deposits
3,336,280
29,311
3.49
%
3,466,139
31,793
3.64
%
2,779,704
29,405
4.21
%
Total interest-bearing deposits
$
14,521,723
$
74,378
2.03
%
$
14,549,513
$
80,739
2.20
%
$
10,973,367
$
64,188
2.33
%
Borrowings
Federal Home Loan Bank and other borrowings
416,368
3,973
3.79
%
416,074
3,946
3.76
%
601,842
6,396
4.23
%
Line of Credit
7,559
116
6.09
%
—
—
—
%
—
—
—
%
Junior subordinated debentures
62,862
936
5.91
%
62,861
981
6.19
%
62,860
1,075
6.80
%
Subordinated debentures
296,372
5,646
7.56
%
305,280
5,743
7.46
%
—
—
—
%
Total borrowings
$
783,161
$
10,671
5.41
%
$
784,215
$
10,670
5.40
%
$
664,702
$
7,471
4.47
%
Total interest-bearing liabilities
$
15,304,884
$
85,049
2.20
%
$
15,333,728
$
91,409
2.37
%
$
11,638,069
$
71,659
2.45
%
Noninterest-bearing demand deposits
5,751,348
5,699,765
4,481,669
Other liabilities
340,775
339,116
319,220
Total liabilities
$
21,397,007
$
21,372,609
$
16,438,958
Stockholders’ equity
3,568,036
3,557,840
2,997,248
Total liabilities and stockholders’ equity
$
24,965,043
$
24,930,449
$
19,436,206
Net interest income
$
213,856
$
204,731
$
145,840
Interest rate spread (2)
3.07
%
2.87
%
2.52
%
Net interest margin (3)
3.77
%
3.62
%
3.33
%
Supplemental Information
Total deposits, including demand deposits
$
20,273,071
$
74,378
$
20,249,278
$
80,739
$
15,455,036
$
64,188
Cost of total deposits
1.46
%
1.58
%
1.65
%
Total funding liabilities, including demand deposits
$
21,056,232
$
85,049
$
21,033,493
$
91,409
$
16,119,738
$
71,659
Cost of total funding liabilities
1.60
%
1.72
%
1.77
%
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis was $1.4 million for each of the three months ended December 31, 2025 and September 30, 2025, and $1.2 million for the three months ended December 31, 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.
Years Ended
December 31, 2025
December 31, 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
$
479,484
$
19,766
4.12
%
$
125,066
$
5,669
4.53
%
Securities
Securities - trading
4,642
—
—
%
4,562
—
—
%
Securities - taxable investments
3,017,694
79,268
2.63
%
2,791,246
57,092
2.05
%
Securities - nontaxable investments (1)
12,410
435
3.51
%
192
7
3.65
%
Total securities
$
3,034,746
$
79,703
2.63
%
$
2,796,000
$
57,099
2.04
%
Loans held for sale
14,191
796
5.61
%
11,960
712
5.95
%
Loans
Commercial and industrial (1)
3,919,199
243,517
6.21
%
3,166,715
195,751
6.18
%
Commercial real estate (1)
7,508,938
401,783
5.35
%
6,811,838
354,941
5.21
%
Commercial construction (1)
1,112,459
76,301
6.86
%
800,254
58,455
7.30
%
Total commercial
12,540,596
721,601
5.75
%
10,778,807
609,147
5.65
%
Residential real estate
2,688,113
125,455
4.67
%
2,434,114
106,797
4.39
%
Home equity
1,216,821
77,589
6.38
%
1,115,598
75,543
6.77
%
Total consumer real estate
3,904,934
203,044
5.20
%
3,549,712
182,340
5.14
%
Other consumer
39,286
2,560
6.52
%
33,761
2,530
7.49
%
Total loans
$
16,484,816
$
927,205
5.62
%
$
14,362,280
$
794,017
5.53
%
Total interest-earning assets
$
20,013,237
$
1,027,470
5.13
%
$
17,295,306
$
857,497
4.96
%
Cash and due from banks
209,413
179,955
Federal Home Loan Bank stock
23,627
37,155
Other assets
2,051,126
1,831,516
Total assets
$
22,297,403
$
19,343,932
Interest-bearing liabilities
Deposits
Savings and interest checking accounts
$
5,786,258
$
66,760
1.15
%
$
5,169,237
$
66,334
1.28
%
Money market
4,019,900
96,768
2.41
%
2,941,539
69,998
2.38
%
Time deposits
3,060,719
110,868
3.62
%
2,600,190
110,630
4.25
%
Total interest-bearing deposits
$
12,866,877
$
274,396
2.13
%
$
10,710,966
$
246,962
2.31
%
Borrowings
Federal Home Loan Bank and other borrowings
452,675
17,718
3.91
%
840,611
39,048
4.65
%
Line of Credit
1,905
116
6.09
%
—
—
—
%
Junior subordinated debentures
62,861
3,867
6.15
%
62,859
4,506
7.17
%
Subordinated debentures
231,228
17,472
7.56
%
10,107
508
5.03
%
Total borrowings
$
748,669
$
39,173
5.23
%
$
913,577
$
44,062
4.82
%
Total interest-bearing liabilities
$
13,615,546
$
313,569
2.30
%
$
11,624,543
$
291,024
2.50
%
Noninterest-bearing demand deposits
5,047,869
4,431,303
Other liabilities
325,414
345,286
Total liabilities
$
18,988,829
$
16,401,132
Stockholders’ equity
3,308,574
2,942,800
Total liabilities and stockholders’ equity
$
22,297,403
$
19,343,932
Net interest income
$
713,901
$
566,473
Interest rate spread (2)
2.83
%
2.46
%
Net interest margin (3)
3.57
%
3.28
%
Supplemental Information
Total deposits, including demand deposits
$
17,914,746
$
274,396
$
15,142,269
$
246,962
Cost of total deposits
1.53
%
1.63
%
Total funding liabilities, including demand deposits
$
18,663,415
$
313,569
$
16,055,846
$
291,024
Cost of total funding liabilities
1.68
%
1.81
%
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis was $5.1 million and $4.7 million for the years ended December 31, 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)
Year-over-Year
December 31
2025
December 31
2024
Enterprise
Balances Acquired
Organic
Growth/(Decline)
Organic
Growth/(Decline)%
Loans
Commercial and industrial
$
4,611,789
$
3,246,455
$
979,072
$
386,262
9.14
%
Commercial real estate
8,275,408
6,839,705
1,742,275
(306,572
)
(3.57
)%
Commercial construction
1,399,193
782,078
664,281
(47,166
)
(3.26
)%
Total commercial
14,286,390
10,868,238
3,385,628
32,524
0.23
%
Residential real estate
2,873,443
2,460,600
425,695
(12,852
)
(0.45
)%
Home equity
1,297,662
1,140,168
95,096
62,398
5.05
%
Total consumer real estate
4,171,105
3,600,768
520,791
49,546
1.20
%
Total other consumer
46,282
39,372
6,693
217
0.47
%
Total loans
$
18,503,777
$
14,508,378
$
3,913,112
$
82,287
0.45
%
Deposits
Noninterest-bearing demand deposits
$
5,600,955
$
4,390,703
$
1,040,758
$
169,494
3.12
%
Savings and interest checking
6,482,970
5,207,548
1,170,875
104,547
1.64
%
Money market
4,774,645
2,960,381
1,411,120
403,144
9.22
%
Time certificates of deposit
3,268,220
2,747,346
739,957
(219,083
)
(6.28
)%
Total deposits
$
20,126,790
$
15,305,978
$
4,362,710
$
458,102
2.33
%
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:
December 31
2025
September 30
2025
December 31
2024
Tangible common equity
(Dollars in thousands, except per share data)
Stockholders’ equity (GAAP)
$
3,565,728
$
3,546,887
$
2,993,120
(a)
Less: Goodwill and other intangibles
1,224,186
1,231,242
997,356
Tangible common equity (Non-GAAP)
$
2,341,542
$
2,315,645
$
1,995,764
(b)
Tangible assets
Assets (GAAP)
$
24,912,896
$
24,993,239
$
19,373,565
(c)
Less: Goodwill and other intangibles
1,224,186
1,231,242
997,356
Tangible assets (Non-GAAP)
$
23,688,710
$
23,761,997
$
18,376,209
(d)
Common Shares
49,243,813
49,787,305
42,500,611
(e)
Common equity to assets ratio (GAAP)
14.31
%
14.19
%
15.45
%
(a/c)
Tangible common equity to tangible assets ratio (Non-GAAP)
9.88
%
9.75
%
10.86
%
(b/d)
Book value per share (GAAP)
$
72.41
$
71.24
$
70.43
(a/e)
Tangible book value per share (Non-GAAP)
$
47.55
$
46.51
$
46.96
(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
Years Ended
December 31
2025
September 30
2025
December 31
2024
December 31
2025
December 31
2024
Net interest income (GAAP)
$
212,486
$
203,344
$
144,661
$
708,831
$
561,729
Noninterest income (GAAP)
$
41,445
$
40,398
$
32,191
$
148,689
$
128,014
Total revenue (GAAP)
$
253,931
$
243,742
$
176,852
$
857,520
$
689,743
Noninterest expense (GAAP)
$
154,370
$
160,836
$
106,422
$
529,881
$
406,366
Less:
Merger and acquisition expense
12,348
23,893
1,902
39,635
1,902
Noninterest expense on an operating basis (Non-GAAP)
$
142,022
$
136,943
$
104,520
$
490,246
$
404,464
Average assets
$
24,965,043
$
24,930,449
$
19,436,206
$
22,297,403
$
19,343,932
Average common equity (GAAP)
$
3,568,036
$
3,557,840
$
2,997,248
$
3,308,574
$
2,942,800
Less: Average goodwill and other intangibles
1,227,889
1,236,109
998,004
1,115,003
1,000,263
Tangible average tangible common equity (Non-GAAP)
$
2,340,147
$
2,321,731
$
1,999,244
$
2,193,571
$
1,942,537
Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP)
Net income (GAAP)
$
75,335
$
34,262
$
50,033
$
205,122
$
192,081
Provision for non-PCD acquired loans
—
34,519
—
34,519
—
Noninterest expense components
Add - merger and acquisition expenses
12,348
23,893
1,902
39,635
1,902
Noncore increases to income before taxes
12,348
58,412
1,902
74,154
1,902
Net taxes associated with noncore items (1)
(3,326
)
(15,320
)
(535
)
(19,239
)
(535
)
Add - adjustment for tax effect of previously incurred merger and acquisition expenses
—
—
—
381
—
Total tax impact
(3,326
)
(15,320
)
(535
)
(18,858
)
(535
)
Noncore increases to net income
9,022
43,092
1,367
55,296
1,367
Operating net income (Non-GAAP)
$
84,357
$
77,354
$
51,400
$
260,418
$
193,448
(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 net income by average assets)
1.20
%
0.55
%
1.02
%
0.92
%
0.99
%
Return on average assets on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average assets)
1.34
%
1.23
%
1.05
%
1.17
%
1.00
%
Return on average common equity (GAAP) (calculated by dividing net income by average common equity)
8.38
%
3.82
%
6.64
%
6.20
%
6.53
%
Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average common equity)
9.38
%
8.63
%
6.82
%
7.87
%
6.57
%
Return on average tangible common equity (Non-GAAP) (calculated by dividing annualized net income by average tangible common equity)
12.77
%
5.85
%
9.96
%
9.35
%
9.89
%
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)
14.30
%
13.22
%
10.23
%
11.87
%
9.96
%
Noninterest income as a % of total revenue (GAAP) (calculated by dividing total noninterest income by total revenue)
16.32
%
16.57
%
18.20
%
17.34
%
18.56
%
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)
16.32
%
16.57
%
18.20
%
17.34
%
18.56
%
Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)
60.79
%
65.99
%
60.18
%
61.79
%
58.92
%
Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)
55.93
%
56.18
%
59.10
%
57.17
%
58.64
%
APPENDIX D: Net Interest Margin Analysis & Non-GAAP Reconciliation of Adjusted Margin
(Unaudited, dollars in thousands)
Three Months Ended
December 31, 2025
September 30, 2025
Volume
Interest
Margin
Impact
Volume
Interest
Margin
Impact
Reported total interest earning assets
$
22,484,104
$
213,856
3.77
%
$
22,430,232
$
204,731
3.62
%
Acquisition fair value marks:
Loan accretion
(6,275
)
(0.11
)%
(4,729
)
(0.08
)%
Nonaccrual interest, net
(1,117
)
(0.02
)%
(84
)
—
%
Other adjustments
(1,842
)
(407
)
—
%
(2,088
)
129
—
%
Adjusted margin (Non-GAAP)
$
22,482,262
$
206,057
3.64
%
$
22,428,144
$
200,047
3.54
%