Independent Bank Corp. (INDB) quarter year Financial Results Summary

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Independent Bank Corp. (INDB) Q3 2025 Financial Results Summary

Rockland, Massachusetts (October 16, 2025) – Independent Bank Corp. (INDB) reported its financial results for the third quarter of 2025. Below is a detailed summary of the key metrics and highlights from the release.

Financial Highlights

  • Net Income: $34.3 million ($0.69 per diluted share)
  • Decreased from $51.1 million ($1.20 per diluted share) in Q2 2025.
  • Decrease of 32.08% in earnings per share versus Q2 2025.
  • Operating Net Income (Non-GAAP): $77.4 million ($1.55 per diluted share)
  • Increased from $53.5 million ($1.25 per diluted share) in Q2 2025.
  • Increase of 44.71% in operating net income vs. Q2 2025.

Acquisition of Enterprise Bancorp, Inc.

  • The acquisition of Enterprise Bancorp completed on July 1, 2025, adding:
  • 27 branch locations.
  • $3.9 billion in loans and $4.4 billion in deposits at fair value.
  • Merger-related costs: $23.9 million incurred in Q3 2025 compared to $2.2 million in Q2 2025.

Key Financial Metrics

  • Return on Average Assets (GAAP): 0.55%
  • Decrease from 1.04% in Q2 2025.
  • Return on Average Common Equity (GAAP): 3.82%
  • Decrease from 6.68% in Q2 2025.
  • Net Interest Margin: 3.62%
  • Increased by 25 basis points from Q2 2025.

Balance Sheet Changes

  • Total Assets: $25.0 billion
  • Increased by $4.9 billion, or 24.7% compared to Q2 2025.
  • Total Loans: $18.5 billion
  • Increased by $3.9 billion, or 27.0% compared to Q2 2025.
  • Total Deposits: $20.3 billion
  • Increased by $4.4 billion, or 27.7% compared to Q2 2025.

Loan Portfolio

  • Commercial loans:
  • Increased by $148.7 million, or 3.3%, reflecting organic growth.
  • Consumer loans:
  • Increased by $17.8 million, or 0.4%.

Share Repurchase

  • Approximately 365,000 shares repurchased for $23.4 million at an average price of $64.07 during Q3 2025.

Noninterest Income and Expenses

  • Noninterest Income: $40.4 million
  • An increase of $6.1 million, or 17.8% compared to Q2 2025.
  • Noninterest Expense: $160.8 million
  • Increased by $52 million, or 47.8% compared to Q2 2025, largely due to:
    • Salaries and employee benefits rising by $18.3 million, or 29.1%.

Asset Quality

  • Nonperforming Loans: $86.6 million
  • Increased from $56.2 million in Q2 2025.
  • Delinquencies as a percentage of total loans: 0.49%
  • Increased from 0.20% in Q2 2025.
  • Net Charge-offs: $1.8 million
  • Decreased from $6.5 million in Q2 2025, representing 0.04% of average loans annualized.

Conclusion

The independent measures indicate a substantial impact from the acquisition of Enterprise Bancorp, including increases in total assets, loans, and deposits, along with notable changes in both income and expenses highlighting strong growth strategy execution.

For further details, refer to the full earnings release and financial statements available on the Independent Bank Corp. Investor Relations website.

Here are the extracted tables from the press release:

Three Months Ended Jun 2025 Sept 2024 % Change % Change
September 30 June 30 September 30
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% nm
Loan level derivative income 1,224 66 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%
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%
Other noninterest expenses 23,893 2,239 —
Total noninterest expenses

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