Independent Bank Corp. Reports Third Quarter Net Income of $89.7 Million
ROCKLAND, Mass.--( BUSINESS WIRE)--Independent Bank Corp. (Nasdaq Global Select Market: INDB), parent of Rockland Trust Company, today announced 2026 third quarter net income of $89.7 million, or $1.90 per diluted share, as compared to 2026 second quarter net income of $81.8 million, or $1.70 per diluted share.
CEO STATEMENT
“In an operating environment with many moving pieces, our disciplined approach and core fundamentals drove a 12% increase in our diluted earnings per share versus the prior quarter results,” said Jeffrey Tengel, Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company. “I want to thank my colleagues for their steadfast commitment to servicing our customers day in and day out. Our focus on strong community banking drove a 1.42% return on average assets and a 15.43% return on average tangible common equity, as loan and average deposit growth improved, we maintained our net interest margin while growing overall net interest income, credit quality remained stable, expenses were well managed, and we prudently returned excess capital to shareholders.”
FINANCIAL HIGHLIGHTS
BALANCE SHEET
Total assets of $25.0 billion at September 30, 2026 increased $38.2 million, or 0.2%, compared to the prior quarter.
Total loans of $18.6 billion at September 30, 2026 increased $158.2 million, or 0.9%, compared to the prior quarter:
Total deposits increased by $135.3 million, or 0.7%, to $20.5 billion at September 30, 2026, as compared to the prior quarter, while average balances rose by $633.8 million, or 3.2%, for the third quarter:
Total period end borrowings decreased by $74.3 million, or 10.6%, during the third quarter of 2026, primarily reflecting approximately $100 million in net paydowns on Federal Home Loan Bank borrowings and a $100 million repayment on a working capital line of credit, partially offset by a $125 million term loan advance.
The Company’s total securities portfolio increased by $192.8 million, or 5.8%, to $3.5 billion at September 30, 2026:
Stockholders’ equity at September 30, 2026 decreased $60.0 million, or 1.7%, compared to June 30, 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 $220.7 million for the third quarter of 2026 increased $9.7 million, or 4.6%, when compared to the prior quarter:
NONINTEREST INCOME
Noninterest income of $41.3 million for the third quarter of 2026 represented a decrease of $1.1 million, or 2.6%, as compared to the prior quarter. Significant changes in noninterest income for the third quarter of 2026 compared to the prior quarter included the following:
NONINTEREST EXPENSE
Noninterest expense of $138.4 million for the third quarter of 2026 represented a decrease of $1.9 million, or 1.3%, as compared to the prior quarter. Significant changes in noninterest expense for the third quarter of 2026 compared to the prior quarter included the following:
TAX RATE
The Company’s quarterly effective tax rate remained consistent at 23.31% for the third quarter of 2026, compared to 23.37% for the prior quarter.
ASSET QUALITY
During the third quarter, the Company’s key asset quality activity and metrics were as follows:
(1)
Represents a non-GAAP measure. See Appendices A through C for reconciliation of the corresponding GAAP measures.
CONFERENCE CALL INFORMATION
Jeffrey Tengel, President and 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 16, 2026.
Participants may join the webcast by registering prior to the call via this link: https://events.q4inc.com/attendee/687573325. A replay of the webcast will be made available on the Company’s website at https://indb.rocklandtrust.com by selecting Third Quarter 2026 Earnings Call. The webcast replay will be available until October 16, 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 and associated adjusted loan yield, 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
September 30 2026
June 30 2026
September 30 2025
Sept 2026 vs.
Sept 2026 vs.
Jun 2026
Sept 2025
Assets
Cash and due from banks
$
244,167
$
251,971
$
203,388
(3.10
)%
20.05
%
Interest-earning deposits with banks
415,213
749,255
707,408
(44.58
)%
(41.31
)%
Securities
Trading
4,897
4,835
4,611
1.28
%
6.20
%
Equities
21,315
21,602
21,567
(1.33
)%
(1.17
)%
Available for sale
2,316,597
2,075,972
1,941,220
11.59
%
19.34
%
Held to maturity
1,162,758
1,210,310
1,357,617
(3.93
)%
(14.35
)%
Total securities
3,505,567
3,312,719
3,325,015
5.82
%
5.43
%
Loans held for sale
10,865
21,982
17,052
(50.57
)%
(36.28
)%
Loans
Commercial and industrial
4,779,871
4,730,827
4,532,294
1.04
%
5.46
%
Commercial real estate
7,859,681
7,944,099
8,241,458
(1.06
)%
(4.63
)%
Commercial construction
1,579,695
1,464,449
1,439,876
7.87
%
9.71
%
Total commercial
14,219,247
14,139,375
14,213,628
0.56
%
0.04
%
Residential real estate
2,909,596
2,870,277
2,917,101
1.37
%
(0.26
)%
Home equity
1,383,719
1,342,797
1,284,139
3.05
%
7.75
%
Total consumer real estate
4,293,315
4,213,074
4,201,240
1.90
%
2.19
%
Other consumer
40,014
41,878
37,575
(4.45
)%
6.49
%
Total loans
18,552,576
18,394,327
18,452,443
0.86
%
0.54
%
Less: allowance for credit losses
(201,238
)
(195,899
)
(190,476
)
2.73
%
5.65
%
Net loans
18,351,338
18,198,428
18,261,967
0.84
%
0.49
%
Federal Home Loan Bank stock
9,527
13,631
21,835
(30.11
)%
(56.37
)%
Bank premises and equipment, net
218,521
217,877
221,165
0.30
%
(1.20
)%
Goodwill
1,090,610
1,090,610
1,090,610
—
%
—
%
Other intangible assets
113,668
119,896
140,632
(5.19
)%
(19.17
)%
Cash surrender value of life insurance policies
383,634
381,230
376,163
0.63
%
1.99
%
Other assets
668,989
616,295
628,004
8.55
%
6.53
%
Total assets
$
25,012,099
$
24,973,894
$
24,993,239
0.15
%
0.08
%
Liabilities and Stockholders’ Equity
Deposits
Noninterest-bearing demand deposits
$
5,760,506
$
5,709,647
$
5,635,911
0.89
%
2.21
%
Savings and interest checking
6,450,241
6,503,521
6,492,791
(0.82
)%
(0.66
)%
Money market
5,164,326
4,929,495
4,747,179
4.76
%
8.79
%
Time certificates of deposit
3,152,352
3,249,455
3,419,988
(2.99
)%
(7.83
)%
Total deposits
20,527,425
20,392,118
20,295,869
0.66
%
1.14
%
Borrowings
Federal Home Loan Bank and other borrowings
117,246
216,719
416,240
(45.90
)%
(71.83
)%
Line of credit, net
—
124,984
—
(100.00
)%
nm
Long-term borrowings, net
149,938
—
—
100.00
%
100.00
%
Junior subordinated debentures, net
62,864
62,864
62,862
—
%
—
%
Subordinated debentures, net
297,106
296,898
296,275
0.07
%
0.28
%
Total borrowings
627,154
701,465
775,377
(10.59
)%
(19.12
)%
Total deposits and borrowings
21,154,579
21,093,583
21,071,246
0.29
%
0.40
%
Other liabilities
405,184
367,948
375,106
10.12
%
8.02
%
Total liabilities
21,559,763
21,461,531
21,446,352
0.46
%
0.53
%
Stockholders’ equity
Common stock
467
473
495
(1.27
)%
(5.66
)%
Additional paid in capital
2,146,353
2,201,250
2,371,111
(2.49
)%
(9.48
)%
Retained earnings
1,429,011
1,369,306
1,222,843
4.36
%
16.86
%
Accumulated other comprehensive loss, net of tax
(123,495
)
(58,666
)
(47,562
)
110.51
%
159.65
%
Total stockholders’ equity
3,452,336
3,512,363
3,546,887
(1.71
)%
(2.67
)%
Total liabilities and stockholders’ equity
$
25,012,099
$
24,973,894
$
24,993,239
0.15
%
0.08
%
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, dollars in thousands, except per share data)
Three Months Ended
% Change
% Change
September 30 2026
June 30 2026
September 30 2025
Sept 2026 vs.
Sept 2026 vs.
Jun 2026
Sept 2025
Interest income
Interest on federal funds sold and short-term investments
$
6,021
$
2,633
$
7,245
128.67
%
(16.89
)%
Interest and dividends on securities
29,591
26,200
23,511
12.94
%
25.86
%
Interest and fees on loans
268,527
260,249
263,772
3.18
%
1.80
%
Interest on loans held for sale
251
210
225
19.52
%
11.56
%
Total interest income
304,390
289,292
294,753
5.22
%
3.27
%
Interest expense
Interest on deposits
73,584
67,641
80,739
8.79
%
(8.86
)%
Interest on borrowings
10,145
10,724
10,670
(5.40
)%
(4.92
)%
Total interest expense
83,729
78,365
91,409
6.84
%
(8.40
)%
Net interest income
220,661
210,927
203,344
4.61
%
8.52
%
Provision for credit losses
6,500
6,250
38,519
4.00
%
(83.13
)%
Net interest income after provision for credit losses
214,161
204,677
164,825
4.63
%
29.93
%
Noninterest income
Deposit account fees
9,948
9,393
8,847
5.91
%
12.44
%
Interchange and ATM fees
5,719
5,686
5,989
0.58
%
(4.51
)%
Investment management and advisory
14,498
14,961
13,652
(3.09
)%
6.20
%
Mortgage banking income
931
1,174
1,444
(20.70
)%
(35.53
)%
Increase in cash surrender value of life insurance policies
2,739
2,636
2,629
3.91
%
4.18
%
Gain on life insurance benefits
180
672
—
(73.21
)%
100.00
%
Loan level derivative income
799
1,317
1,224
(39.33
)%
(34.72
)%
Other noninterest income
6,473
6,552
6,613
(1.21
)%
(2.12
)%
Total noninterest income
41,287
42,391
40,398
(2.60
)%
2.20
%
Noninterest expenses
Salaries and employee benefits
80,408
79,088
81,132
1.67
%
(0.89
)%
Occupancy and equipment expenses
15,831
16,170
14,975
(2.10
)%
5.72
%
Data processing and facilities management
3,035
3,208
2,788
(5.39
)%
8.86
%
FDIC assessment
2,535
3,158
3,080
(19.73
)%
(17.69
)%
Amortization of intangible assets
6,227
6,791
7,315
(8.31
)%
(14.87
)%
Merger and acquisition expense
—
—
23,893
nm
(100.00
)%
Other noninterest expenses
30,384
31,857
27,653
(4.62
)%
9.88
%
Total noninterest expenses
138,420
140,272
160,836
(1.32
)%
(13.94
)%
Income before income taxes
117,028
106,796
44,387
9.58
%
163.65
%
Provision for income taxes
27,279
24,958
10,125
9.30
%
169.42
%
Net Income
$
89,749
$
81,838
$
34,262
9.67
%
161.95
%
Weighted average common shares (basic)
47,229,350
48,054,411
49,934,574
Common share equivalents
27,262
22,344
22,433
Weighted average common shares (diluted)
47,256,612
48,076,755
49,957,007
Basic earnings per share
$
1.90
$
1.70
$
0.69
11.76
%
175.36
%
Diluted earnings per share
$
1.90
$
1.70
$
0.69
11.76
%
175.36
%
Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):
Net income
$
89,749
$
81,838
$
34,262
Provision for non-PCD acquired loans
—
—
34,519
Noninterest expense components
Add - merger and acquisition expenses
—
—
23,893
Noncore increases to income before taxes
—
—
58,412
Net taxes associated with noncore items (1)
—
—
(15,320
)
Noncore increases to net income
—
—
43,092
Operating net income (Non-GAAP)
$
89,749
$
81,838
$
77,354
9.67
%
16.02
%
Diluted earnings per share, on an operating basis (Non-GAAP)
$
1.90
$
1.70
$
1.55
11.76
%
22.58
%
(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)
3.89
%
3.85
%
3.62
%
Return on average assets (calculated by dividing annualized net income by average assets) (GAAP)
1.42
%
1.34
%
0.55
%
Return on average assets on an operating basis (Non-GAAP) (calculated by dividing annualized operating net income by average assets)
1.42
%
1.34
%
1.23
%
Return on average common equity (calculated by dividing annualized net income by average common equity) (GAAP)
10.13
%
9.24
%
3.82
%
Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing annualized operating net income by average common equity)
10.13
%
9.24
%
8.63
%
Return on average tangible common equity (Non-GAAP) (calculated by dividing annualized net income by average tangible common equity)
15.43
%
14.05
%
5.85
%
Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing annualized operating net income by average tangible common equity)
15.43
%
14.05
%
13.22
%
Noninterest income as a % of total revenue (GAAP) (calculated by dividing total noninterest income by net interest income plus total noninterest income)
15.76
%
16.73
%
16.57
%
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)
15.76
%
16.73
%
16.57
%
Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)
52.84
%
55.37
%
65.99
%
Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)
52.84
%
55.37
%
56.18
%
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, dollars in thousands, except per share data)
Nine Months Ended
% Change
September 30 2026
September 30 2025
Sept 2026 vs.
Sept 2025
Interest income
Interest on federal funds sold and short-term investments
$
12,311
$
13,076
(5.85
)%
Interest and dividends on securities
81,165
54,689
48.41
%
Interest and fees on loans
789,758
656,643
20.27
%
Interest on loans held for sale
713
457
56.02
%
Total interest income
883,947
724,865
21.95
%
Interest expense
Interest on deposits
208,160
200,018
4.07
%
Interest on borrowings
31,739
28,502
11.36
%
Total interest expense
239,899
228,520
4.98
%
Net interest income
644,048
496,345
29.76
%
Provision for credit losses
18,250
60,719
(69.94
)%
Net interest income after provision for credit losses
625,798
435,626
43.65
%
Noninterest income
Deposit account fees
28,590
23,041
24.08
%
Interchange and ATM fees
16,423
15,608
5.22
%
Investment management and advisory
43,624
36,252
20.34
%
Mortgage banking income
3,375
3,257
3.62
%
Increase in cash surrender value of life insurance policies
8,087
6,732
20.13
%
Gain on life insurance benefits
1,198
1,650
(27.39
)%
Loan level derivative income
3,026
2,332
29.76
%
Other noninterest income
19,616
18,373
6.77
%
Total noninterest income
123,939
107,245
15.57
%
Noninterest expenses
Salaries and employee benefits
240,233
205,919
16.66
%
Occupancy and equipment expenses
49,307
41,992
17.42
%
Data processing and facilities management
9,502
8,213
15.69
%
FDIC assessment
9,021
8,441
6.87
%
Amortization of intangible assets
19,908
9,856
101.99
%
Merger and acquisition expense
3,024
27,287
(88.92
)%
Other noninterest expenses
90,615
73,804
22.78
%
Total noninterest expenses
421,610
375,512
12.28
%
Income before income taxes
328,127
167,359
96.06
%
Provision for income taxes
76,621
37,572
103.93
%
Net Income
$
251,506
$
129,787
93.78
%
Weighted average common shares (basic)
48,078,231
45,063,324
Common share equivalents
26,430
20,646
Weighted average common shares (diluted)
48,104,661
45,083,970
Basic earnings per share
$
5.23
$
2.88
81.60
%
Diluted earnings per share
$
5.23
$
2.88
81.60
%
Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):
Net Income
$
251,506
$
129,787
Provision for non-PCD acquired loans
—
34,519
Noninterest expense components
Add - merger and acquisition expenses
3,024
27,287
Noncore increases to income before taxes
3,024
61,806
Net taxes associated with noncore items (1)
(830
)
(15,913
)
Add - adjustment for tax effect of previously incurred merger and acquisition expenses
—
381
Total tax impact
(830
)
(15,532
)
Noncore increases to net income
2,194
46,274
Operating net income (Non-GAAP)
$
253,700
$
176,061
44.10
%
Diluted earnings per share, on an operating basis (Non-GAAP)
$
5.27
$
3.91
34.78
%
(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
%
3.49
%
Return on average assets (GAAP) (calculated by dividing net income by average assets)
1.36
%
0.81
%
Return on average assets on an operating basis (Non-GAAP) (calculated by dividing operating net income by average assets)
1.37
%
1.10
%
Return on average common equity (GAAP) (calculated by dividing net income by average common equity)
9.47
%
5.39
%
Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing operating net income by average common equity)
9.55
%
7.31
%
Return on average tangible common equity (Non-GAAP) (calculated by dividing net income by average tangible common equity)
14.38
%
8.09
%
Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing operating net income by average tangible common equity)
14.51
%
10.98
%
Noninterest income as a % of total revenue (GAAP) (calculated by dividing total noninterest income by net interest income plus total noninterest income)
16.14
%
17.77
%
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)
16.14
%
17.77
%
Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)
54.90
%
62.21
%
Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)
54.50
%
57.69
%
nm = not meaningful
ASSET QUALITY
(Unaudited, dollars in thousands)
Nonperforming Assets At
September 30 2026
June 30 2026
September 30 2025
Nonperforming loans
Commercial & industrial loans
$
10,886
$
9,204
$
23,173
Commercial real estate loans
85,314
64,544
29,216
Commercial construction loans
2,569
2,925
15,516
Residential real estate loans
21,684
20,305
14,406
Home equity
5,249
6,648
4,244
Other consumer
12
16
42
Total nonperforming loans
125,714
103,642
86,597
Other real estate owned
455
206
2,100
Total nonperforming assets
$
126,169
$
103,848
$
88,697
Nonperforming loans/gross loans
0.68
%
0.56
%
0.47
%
Nonperforming assets/total assets
0.50
%
0.42
%
0.35
%
Allowance for credit losses/nonperforming loans
160.08
%
189.02
%
219.96
%
Allowance for credit losses/total loans
1.08
%
1.06
%
1.03
%
Delinquent loans/total loans
0.73
%
0.43
%
0.49
%
Nonperforming Assets Reconciliation for the Three Months Ended
September 30 2026
June 30 2026
September 30 2025
Nonperforming assets beginning balance
$
103,848
$
98,743
$
58,317
Enterprise nonperforming assets at July 1, 2025
—
—
24,487
New to nonperforming
31,105
28,377
16,767
Loans charged-off
(1,716
)
(1,865
)
(2,670
)
Loans paid-off
(6,542
)
(18,701
)
(6,983
)
Loans transferred to other real estate owned
(250
)
—
—
Loans restored to performing status
(629
)
(831
)
(1,404
)
New to other real estate owned
250
206
—
Sale of other real estate owned
—
(2,100
)
—
Other
103
19
183
Nonperforming assets ending balance
$
126,169
$
103,848
$
88,697
Net Charge-Offs (Recoveries)
Three Months Ended
Nine Months Ended
September 30 2026
June 30 2026
September 30 2025
September 30 2026
September 30 2025
Net charge-offs (recoveries)
Commercial and industrial loans
$
228
$
464
$
1,178
$
1,003
$
4,123
Commercial real estate loans
—
58
21
4,092
43,364
Commercial construction
498
—
—
498
—
Home equity
(12
)
(43
)
(12
)
(67
)
17
Other consumer
447
432
649
1,363
1,743
Total net charge-offs
$
1,161
$
911
$
1,836
$
6,889
$
49,247
Net charge-offs to average loans (annualized)
0.02
%
0.02
%
0.04
%
0.05
%
0.42
%
BALANCE SHEET AND CAPITAL RATIOS
September 30 2026
June 30 2026
September 30 2025
Gross loans/total deposits
90.38
%
90.20
%
90.92
%
Common equity tier 1 capital ratio (1)
12.69
%
12.81
%
12.84
%
Tier 1 leverage capital ratio (1)
10.01
%
10.20
%
10.11
%
Common equity to assets ratio GAAP
13.80
%
14.06
%
14.19
%
Tangible common equity to tangible assets ratio (2)
9.44
%
9.69
%
9.75
%
Book value per share GAAP
$
73.54
$
73.76
$
71.24
Tangible book value per share (2)
$
47.89
$
48.34
$
46.51
(1) Estimated number for September 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
September 30, 2026
June 30, 2026
September 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
$
662,081
$
6,021
3.61
%
$
304,850
$
2,633
3.46
%
$
688,394
$
7,245
4.18
%
Securities
Securities - trading
4,990
—
—
%
5,549
—
—
%
4,613
—
—
%
Securities - taxable investments
3,479,239
29,492
3.36
%
3,344,236
26,098
3.13
%
3,253,928
23,303
2.84
%
Securities - nontaxable investments (1)
9,942
126
5.03
%
10,334
129
5.01
%
34,803
263
3.00
%
Total securities
$
3,494,171
$
29,618
3.36
%
$
3,360,119
$
26,227
3.13
%
$
3,293,344
$
23,566
2.84
%
Loans held for sale
17,536
251
5.68
%
15,109
210
5.57
%
15,632
225
5.71
%
Loans
Commercial and industrial (1)
4,739,532
74,833
6.26
%
4,684,134
72,323
6.19
%
4,485,053
70,869
6.27
%
Commercial real estate (1)
7,914,965
113,376
5.68
%
8,096,126
111,044
5.50
%
8,270,774
112,855
5.41
%
Commercial construction (1)
1,532,316
25,710
6.66
%
1,455,154
24,051
6.63
%
1,446,615
24,750
6.79
%
Total commercial
14,186,813
213,919
5.98
%
14,235,414
207,418
5.84
%
14,202,442
208,474
5.82
%
Residential real estate
2,886,974
34,569
4.75
%
2,849,629
33,774
4.75
%
2,913,749
34,813
4.74
%
Home equity
1,361,625
20,873
6.08
%
1,327,930
19,847
5.99
%
1,275,945
21,173
6.58
%
Total consumer real estate
4,248,599
55,442
5.18
%
4,177,559
53,621
5.15
%
4,189,694
55,986
5.30
%
Other consumer
39,904
618
6.14
%
42,086
667
6.36
%
40,726
644
6.27
%
Total loans
$
18,475,316
$
269,979
5.80
%
$
18,455,059
$
261,706
5.69
%
$
18,432,862
$
265,104
5.71
%
Total interest-earning assets
$
22,649,104
$
305,869
5.36
%
$
22,135,137
$
290,776
5.27
%
$
22,430,232
$
296,140
5.24
%
Cash and due from banks
243,098
226,735
214,626
Federal Home Loan Bank stock
13,051
16,942
22,206
Other assets
2,205,241
2,196,868
2,263,385
Total assets
$
25,110,494
$
24,575,682
$
24,930,449
Interest-bearing liabilities
Deposits
Savings and interest checking accounts
$
6,502,323
$
17,517
1.07
%
$
6,318,590
$
16,121
1.02
%
$
6,333,611
$
18,927
1.19
%
Money market
5,133,027
29,370
2.27
%
4,830,122
25,328
2.10
%
4,749,763
30,019
2.51
%
Time deposits
3,204,614
26,697
3.31
%
3,231,355
26,192
3.25
%
3,466,139
31,793
3.64
%
Total interest-bearing deposits
$
14,839,964
$
73,584
1.97
%
$
14,380,067
$
67,641
1.89
%
$
14,549,513
$
80,739
2.20
%
Borrowings
Federal Home Loan Bank and other borrowings
200,435
1,888
3.74
%
296,624
2,780
3.76
%
416,074
3,946
3.76
%
Line of Credit
123,904
1,700
5.44
%
104,096
1,423
5.48
%
—
—
—
%
Long-term borrowings
1,359
20
5.84
%
—
—
—
%
—
—
—
%
Junior subordinated debentures
62,864
892
5.63
%
62,863
876
5.59
%
62,861
981
6.19
%
Subordinated debentures
296,995
5,645
7.54
%
296,778
5,645
7.63
%
305,280
5,743
7.46
%
Total borrowings
$
685,557
$
10,145
5.87
%
$
760,361
$
10,724
5.66
%
$
784,215
$
10,670
5.40
%
Total interest-bearing liabilities
$
15,525,521
$
83,729
2.14
%
$
15,140,428
$
78,365
2.08
%
$
15,333,728
$
91,409
2.37
%
Noninterest-bearing demand deposits
5,726,231
5,552,302
5,699,765
Other liabilities
344,041
332,250
339,116
Total liabilities
$
21,595,793
$
21,024,980
$
21,372,609
Stockholders’ equity
3,514,701
3,550,702
3,557,840
Total liabilities and stockholders’ equity
$
25,110,494
$
24,575,682
$
24,930,449
Net interest income
$
222,140
$
212,411
$
204,731
Interest rate spread (2)
3.22
%
3.19
%
2.87
%
Net interest margin (3)
3.89
%
3.85
%
3.62
%
Supplemental Information
Total deposits, including demand deposits
$
20,566,195
$
73,584
$
19,932,369
$
67,641
$
20,249,278
$
80,739
Cost of total deposits
1.42
%
1.36
%
1.58
%
Total funding liabilities, including demand deposits
$
21,251,752
$
83,729
$
20,692,730
$
78,365
$
21,033,493
$
91,409
Cost of total funding liabilities
1.56
%
1.52
%
1.72
%
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis was $1.5 million for each of the three months ended September 30, 2026 and June 30, 2026, respectively, and $1.4 million for the three months ended September 30, 2025, 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.
Nine Months Ended
September 30, 2026
September 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
$
461,724
$
12,311
3.56
%
$
413,974
$
13,076
4.22
%
Securities
Securities - trading
5,215
—
—
%
4,641
—
—
%
Securities - taxable investments
3,383,473
80,850
3.19
%
2,914,567
54,478
2.50
%
Securities - nontaxable investments (1)
10,631
399
5.02
%
11,858
266
3.00
%
Total securities
$
3,399,319
$
81,249
3.20
%
$
2,931,066
$
54,744
2.50
%
Loans held for sale
17,373
713
5.49
%
10,656
457
5.73
%
Loans
Commercial and industrial (1)
4,676,906
217,582
6.22
%
3,704,506
173,050
6.25
%
Commercial real estate (1)
8,082,586
336,886
5.57
%
7,254,708
286,037
5.27
%
Commercial construction (1)
1,464,385
73,687
6.73
%
1,016,344
51,683
6.80
%
Total commercial
14,223,877
628,155
5.90
%
11,975,558
510,770
5.70
%
Residential real estate
2,864,503
103,846
4.85
%
2,618,320
90,608
4.63
%
Home equity
1,330,144
60,149
6.05
%
1,192,583
57,091
6.40
%
Total consumer real estate
4,194,647
163,995
5.23
%
3,810,903
147,699
5.18
%
Other consumer
41,913
1,949
6.22
%
38,406
1,819
6.33
%
Total loans
$
18,460,437
$
794,099
5.75
%
$
15,824,867
$
660,288
5.58
%
Total interest-earning assets
$
22,338,853
$
888,372
5.32
%
$
19,180,563
$
728,565
5.08
%
Cash and due from banks
232,671
202,833
Federal Home Loan Bank stock
16,795
24,231
Other assets
2,209,365
1,990,792
Total assets
$
24,797,684
$
21,398,419
Interest-bearing liabilities
Deposits
Savings and interest checking accounts
$
6,385,424
$
49,521
1.04
%
$
5,594,350
$
51,642
1.23
%
Money market
4,942,753
79,370
2.15
%
3,746,995
66,819
2.38
%
Time deposits
3,234,831
79,269
3.28
%
2,967,856
81,557
3.67
%
Total interest-bearing deposits
$
14,563,008
$
208,160
1.91
%
$
12,309,201
$
200,018
2.17
%
Borrowings
Federal Home Loan Bank and other borrowings
291,716
8,263
3.79
%
464,910
13,745
3.95
%
Line of Credit
94,389
3,878
5.49
%
—
—
—
%
Long-term borrowings
458
20
5.84
%
—
—
—
%
Junior subordinated debentures
62,863
2,642
5.62
%
62,861
2,931
6.23
%
Subordinated debentures
296,784
16,936
7.63
%
209,275
11,826
7.56
%
Total borrowings
$
746,210
$
31,739
5.69
%
$
737,046
$
28,502
5.17
%
Total interest-bearing liabilities
$
15,309,218
$
239,899
2.10
%
$
13,046,247
$
228,520
2.34
%
Noninterest-bearing demand deposits
5,593,126
4,810,799
Other liabilities
343,357
320,237
Total liabilities
$
21,245,701
$
18,177,283
Stockholders’ equity
3,551,983
3,221,136
Total liabilities and stockholders’ equity
$
24,797,684
$
21,398,419
Net interest income
$
648,473
$
500,045
Interest rate spread (2)
3.22
%
2.74
%
Net interest margin (3)
3.88
%
3.49
%
Supplemental Information
Total deposits, including demand deposits
$
20,156,134
$
208,160
$
17,120,000
$
200,018
Cost of total deposits
1.38
%
1.56
%
Total funding liabilities, including demand deposits
$
20,902,344
$
239,899
$
17,857,046
$
228,520
Cost of total funding liabilities
1.53
%
1.71
%
(2) Interest rate spread represents the difference between weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
Certain amounts in prior year financial statements have been reclassified to conform to the current year’s presentation.
APPENDIX A: NON-GAAP Reconciliation of Balance Sheet Metrics
(Unaudited, dollars in thousands, except per share data)
The following table summarizes the calculation of the Company’s tangible common equity to tangible assets ratio and tangible book value per share, at the dates indicated:
September 30 2026
June 30 2026
September 30 2025
Tangible common equity
(Dollars in thousands, except per share data)
Stockholders’ equity (GAAP)
$
3,452,336
$
3,512,363
$
3,546,887
(a)
Less: Goodwill and other intangibles
1,204,278
1,210,506
1,231,242
Tangible common equity (Non-GAAP)
$
2,248,058
$
2,301,857
$
2,315,645
(b)
Tangible assets
Assets (GAAP)
$
25,012,099
$
24,973,894
$
24,993,239
(c)
Less: Goodwill and other intangibles
1,204,278
1,210,506
1,231,242
Tangible assets (Non-GAAP)
$
23,807,821
$
23,763,388
$
23,761,997
(d)
Common Shares
46,944,467
47,618,626
49,787,305
(e)
Common equity to assets ratio (GAAP)
13.80
%
14.06
%
14.19
%
(a/c)
Tangible common equity to tangible assets ratio (Non-GAAP)
9.44
%
9.69
%
9.75
%
(b/d)
Book value per share (GAAP)
$
73.54
$
73.76
$
71.24
(a/e)
Tangible book value per share (Non-GAAP)
$
47.89
$
48.34
$
46.51
(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
Nine Months Ended
September 30 2026
June 30 2026
September 30 2025
September 30 2026
September 30 2025
Net interest income (GAAP)
$
220,661
$
210,927
$
203,344
$
644,048
$
496,345
Noninterest income (GAAP)
$
41,287
$
42,391
$
40,398
$
123,939
$
107,245
Total revenue (GAAP)
$
261,948
$
253,318
$
243,742
$
767,987
$
603,590
Noninterest expense (GAAP)
$
138,420
$
140,272
$
160,836
$
421,610
$
375,512
Less:
Merger and acquisition expense
—
—
23,893
3,024
27,287
Noninterest expense on an operating basis (Non-GAAP)
$
138,420
$
140,272
$
136,943
$
418,586
$
348,225
Average assets
$
25,110,494
$
24,575,682
$
24,930,449
$
24,797,684
$
21,398,419
Average common equity (GAAP)
$
3,514,701
$
3,550,702
$
3,557,840
$
3,551,983
$
3,221,136
Less: Average goodwill and other intangibles
1,207,596
1,214,434
1,236,109
1,214,360
1,076,960
Average tangible common equity (Non-GAAP)
$
2,307,105
$
2,336,268
$
2,321,731
$
2,337,623
$
2,144,176
Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP)
Net income (GAAP)
$
89,749
$
81,838
$
34,262
$
251,506
$
129,787
Provision for non-PCD acquired loans
—
—
34,519
—
34,519
Noninterest expense components
Add - merger and acquisition expenses
—
—
23,893
3,024
27,287
Noncore increases to income before taxes
—
—
58,412
3,024
61,806
Net taxes associated with noncore items (1)
—
—
(15,320
)
(830
)
(15,913
)
Add - adjustment for tax effect of previously incurred merger and acquisition expenses
—
—
—
—
381
Total tax impact
—
—
(15,320
)
(830
)
(15,532
)
Noncore increases to net income
—
—
43,092
2,194
46,274
Operating net income (Non-GAAP)
$
89,749
$
81,838
$
77,354
$
253,700
$
176,061
(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)
1.42
%
1.34
%
0.55
%
1.36
%
0.81
%
Return on average assets on an operating basis (Non-GAAP) (calculated by dividing annualized operating net income by average assets)
1.42
%
1.34
%
1.23
%
1.37
%
1.10
%
Return on average common equity (GAAP) (calculated by dividing annualized net income by average common equity)
10.13
%
9.24
%
3.82
%
9.47
%
5.39
%
Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing annualized operating net income by average common equity)
10.13
%
9.24
%
8.63
%
9.55
%
7.31
%
Return on average tangible common equity (Non-GAAP) (calculated by dividing annualized net income by average tangible common equity)
15.43
%
14.05
%
5.85
%
14.38
%
8.09
%
Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing annualized operating net income by average tangible common equity)
15.43
%
14.05
%
13.22
%
14.51
%
10.98
%
Noninterest income as a % of total revenue (GAAP) (calculated by dividing total noninterest income by total revenue)
15.76
%
16.73
%
16.57
%
16.14
%
17.77
%
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)
15.76
%
16.73
%
16.57
%
16.14
%
17.77
%
Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)
52.84
%
55.37
%
65.99
%
54.90
%
62.21
%
Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)
52.84
%
55.37
%
56.18
%
54.50
%
57.69
%
APPENDIX C: Net Interest Margin Analysis & Non-GAAP Reconciliation of Adjusted Margin
(Unaudited, dollars in thousands)
Three Months Ended
September 30, 2026
June 30, 2026
Volume
Interest
Margin Impact
Volume
Interest
Margin Impact
Reported total interest earning assets
$
22,649,104
$
222,140
3.89
%
$
22,135,137
$
212,411
3.85
%
Acquisition fair value marks:
Loan accretion
(6,800
)
(0.12
)%
(4,439
)
(0.08
)%
Nonaccrual interest, net
(516
)
(0.01
)%
143
—
%
Other adjustments
(1,308
)
(243
)
—
%
(1,453
)
(497
)
(0.01
)%
Adjusted margin (Non-GAAP)
$
22,647,796
$
214,581
3.76
%
$
22,133,684
$
207,618
3.76
%