Financial Performance - Net income for the three months ended September 30, 2025, was $34,262 thousand, down 20.2% from $42,947 thousand in the same quarter of 2024[15]. - Basic earnings per share decreased to $0.69 for the three months ended September 30, 2025, compared to $1.01 in the same period of 2024, a decline of 31.7%[15]. - Total comprehensive income for the three months ended September 30, 2025, was $44,783 thousand, down from $79,970 thousand in the same quarter of 2024, a decrease of 43.9%[19]. - The net income for the nine months ended September 30, 2025, was reported at $129,787,000, compared to $142,047,000 for the same period in 2024, indicating a decrease of about 8.6%[24]. - Net income for the nine months ended September 30, 2025, was $129.8 million, a decrease from $142.0 million in the same period of 2024, representing a decline of approximately 8.8%[27]. Asset Growth - Total assets increased to $24,993,239 thousand as of September 30, 2025, up from $19,373,565 thousand at December 31, 2024, representing a growth of 29.0%[12]. - Total deposits grew to $20,295,869 thousand, reflecting a 32.5% increase from $15,305,978 thousand at the end of 2024[12]. - The total assets as of September 30, 2025, were reported at $3,546,887,000, compared to $2,993,120,000 at the end of 2024, indicating a significant increase of approximately 18.5%[24]. - As of September 30, 2025, the total common stock outstanding increased to 49,787,305 shares, up from 42,500,611 shares at the end of 2024, representing a growth of approximately 17.1%[24]. Loan and Credit Quality - Net loans rose to $18,261,967 thousand, a 27.5% increase from $14,338,394 thousand year-over-year[12]. - Provision for credit losses increased significantly to $60.7 million compared to $28.8 million in the prior year, indicating a rise of over 111%[27]. - The Company reported a significant increase in loans classified as "Substandard," rising to $28,411,000 from $4,195,000 in the previous year[77]. - The "Pass" category loans reached $1,993,000,000, showing growth compared to $1,830,000,000 in 2024[77]. - Total non-accrual loans amounted to $86.6 million as of September 30, 2025, compared to $101.5 million at December 31, 2024[84]. Income and Expenses - Net interest income for the three months ended September 30, 2025, was $203,344 thousand, up 43.5% from $141,703 thousand in the same period of 2024[15]. - Total non-interest expenses increased to $160,836 thousand for the three months ended September 30, 2025, compared to $100,443 thousand in the same period of 2024, reflecting a 60.0% increase[15]. - Non-interest income totaled $40,398 thousand for the three months ended September 30, 2025, a 20.8% increase from $33,549 thousand in the same quarter of 2024[15]. - The common dividend declared for the nine months ended September 30, 2025, was $1.77 per share, totaling $79,668,000, compared to $1.71 per share totaling $72,620,000 in 2024, reflecting an increase of approximately 10% in total dividends[24]. Securities and Investments - Total available for sale securities amounted to $1,998,347 thousand as of September 30, 2025, with gross unrealized losses of $64,604 thousand[55]. - The total amortized cost of held to maturity securities was $1,357,617,000, with gross unrealized losses of $97,170,000 as of September 30, 2025[60]. - The fair value of agency mortgage-backed securities was $707,265 thousand as of September 30, 2025[146]. - The Company reported a total of 214 holdings in available for sale securities, with 160 holdings in a similar position as of December 31, 2024, indicating a decrease in the number of holdings[57]. Risk Management and Credit Losses - The allowance for credit losses increased by $20.5 million to $190.5 million as of September 30, 2025, compared to $170.0 million at December 31, 2024[66]. - The charge-offs for the three months ended September 30, 2025, totaled $2.67 million, while recoveries amounted to $834,000[65]. - The Company continues to monitor borrowers in the "Special Mention" category closely, as trends could weaken asset quality if not addressed[76]. - The Company retains an independent loan review firm to evaluate the credit quality of the commercial loan portfolio, reporting results to the Audit Committee quarterly[74]. Derivative Instruments and Fair Value - The total fair value of the Company's derivative financial instruments at September 30, 2025 was $37,777,000 after netting adjustments[122]. - The Company reported derivative instruments liabilities totaling $123,755,000 as of December 31, 2024[147]. - The Company has classified its derivative valuations as Level 2 within the fair value hierarchy, indicating that the majority of inputs used are observable[141]. - The Company does not offset fair value amounts recognized for derivative instruments, but it does net the amount recognized for the right to reclaim cash collateral against the obligation to return cash collateral[120]. Corporate Governance and Operations - The Company operates as a community-oriented commercial bank with a single reportable segment focused on community banking, primarily generating revenue from loans to individuals and small-to-medium sized businesses[183]. - The Chief Executive Officer and Chief Financial Officer assess performance based on consolidated net income and diluted earnings per share, which are critical for resource allocation and performance benchmarking[184]. - The Company is involved in pending lawsuits, but management believes the outcomes will not materially affect its financial position or results of operations[182].

Core Insights - BAD BEAT Investing, led by Quad 7 Capital, is a team of 7 analysts with nearly 12 years of experience in identifying investment opportunities [1] - The firm is recognized for its February 2020 recommendation to sell everything and go short, maintaining an average position of 95% long and 5% short since May 2020 [1] - The company emphasizes teaching investors to become proficient traders through a structured playbook, focusing on short- and medium-term investments, income generation, special situations, and momentum trades [1] Company Overview - Quad 7 Capital has expertise in various fields including business, policy, economics, mathematics, game theory, and sciences [1] - The firm shares both long and short trades and invests personally in equities discussed within their investing group [1] - The goal of BAD BEAT Investing is to provide in-depth, high-quality research with clear entry and exit targets to save investors time [1] Benefits of BAD BEAT Investing - Investors can learn to understand market dynamics and execute well-researched trade ideas weekly [2] - The service includes access to 4 chat rooms and daily summaries of key analyst upgrades and downgrades [2] - Participants can also learn basic options trading and utilize extensive trading tools [2]

Financial Data and Key Metrics Changes - The third quarter GAAP net income was $34.3 million, with diluted EPS at $0.69, resulting in a 0.55% return on assets and a 3.82% return on average common equity [12] - Adjusted operating net income for the quarter was $77.4 million, or $1.55 diluted EPS, representing a 1.23% return on assets and an 8.63% return on average common equity [13] - The net interest margin improved to 3.62%, a 25 basis point increase from the prior quarter [15] Business Line Data and Key Metrics Changes - Commercial and industrial (C&I) loans grew organically at a 13% annualized rate, while commercial real estate loan balances declined at a 6.7% annualized rate [9][17] - Demand deposit growth was 5% annualized in the third quarter, with demand deposits representing 28% of overall deposits [10] - The wealth management business grew assets under administration (AUA) to $9.2 billion, including $1.4 billion from the Enterprise acquisition [10] Market Data and Key Metrics Changes - The Massachusetts business confidence index remained in the high 40s, indicating a stable but uncertain economic environment [8] - The cost of deposits was reported at 1.58%, reflecting the value of the deposit franchise [10] Company Strategy and Development Direction - The company is focused on integrating the Enterprise acquisition, with no branches closed and all employees retained [6][7] - Future initiatives include cross-selling deeper into the Enterprise customer base and enhancing consumer lending offerings [7] - The company plans to prepare for a core conversion scheduled for May 2026, aimed at improving technology infrastructure and scalability [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of their client base despite economic uncertainties, including government shutdowns and inflation [8] - The company anticipates continued improvement in growth and profitability, driven by prudent expense management and realization of benefits from the Enterprise acquisition [11] Other Important Information - The company reported a tangible book value per share decrease of $2.17, or 4.5%, for the quarter, with a modest year-over-year increase [14] - Merger-related expenses totaled $23.9 million, primarily from severance and professional fees [21] Q&A Session Summary Question: Can you quantify the C&I growth and discuss the loan pipeline? - C&I growth has been strong, particularly in lower middle market segments, with healthy loan pipelines remaining stable [28] Question: How is the company addressing office credit concerns? - Management feels more positive about office credit, having resolved several larger issues, but acknowledges ongoing work is needed [34][36] Question: What are the expectations for loan growth next year? - Management is optimistic about potential loan growth, suggesting it could be in the low to mid-single digits if current trends continue [37] Question: What are the plans for the securities portfolio? - There are no immediate plans to restructure the securities portfolio, which is viewed as stable and yielding well [41] Question: How does the company view future M&A opportunities? - The company is currently focused on organic growth and integration of the Enterprise acquisition, with no immediate plans for further M&A [44]

Financial Data and Key Metrics Changes - The third quarter GAAP net income was $34.3 million, with diluted EPS at $0.69, resulting in a 0.55% return on assets and a 3.82% return on average common equity [12] - Adjusted operating net income for the quarter was $77.4 million, or $1.55 diluted EPS, representing a 1.23% return on assets and an 8.63% return on average common equity [13] - The net interest margin improved to 3.62%, a 25 basis point increase from the prior quarter [15] Business Line Data and Key Metrics Changes - Commercial and industrial (C&I) loans grew organically at a 13% annualized rate, while commercial real estate loan balances declined at a 6.7% annualized rate [9] - Demand deposit growth was 5% annualized in the third quarter, with demand deposits representing 28% of overall deposits [10] - The wealth management business grew assets under administration (AUA) to $9.2 billion, including $1.4 billion acquired from Enterprise [10] Market Data and Key Metrics Changes - The Massachusetts business confidence score was in the high 40s, indicating a stable but uncertain environment for clients [8] - The cost of deposits was reported at 1.58%, highlighting the value of the deposit franchise [10] Company Strategy and Development Direction - The company is focused on integrating the Enterprise acquisition, with a strong emphasis on retaining client-facing personnel and enhancing cross-selling opportunities [5][6] - Future initiatives include expanding consumer lending products and preparing for a core conversion scheduled for May 2026 [10][22] - The company aims to achieve 30% cost savings from the Enterprise acquisition by the first quarter of 2026 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of their client base despite external uncertainties such as tariffs and government shutdowns [8] - The company anticipates improved growth and profitability in the coming quarters, driven by prudent expense management and the realization of benefits from the Enterprise acquisition [11] Other Important Information - The tangible book value per share decreased by $2.17, or 4.5%, for the quarter, but is up modestly compared to the previous year [15] - Non-performing assets as of September 30, 2023, were 0.35% of total assets, with no material loss exposures identified [19] Q&A Session Summary Question: Can you quantify the C&I growth and discuss the loan pipeline? - C&I growth has been strong, particularly in lower middle market segments, with a healthy loan pipeline that remains stable [28] Question: What are your thoughts on office credit and classified loans? - Management feels more positive about office credit than six months ago, with several larger problems resolved and expectations for positive outcomes [34][36] Question: What is the guidance for margin expansion in the fourth quarter? - Guidance for margin expansion is 4 to 6 basis points, which is expected to remain stable regardless of Fed rate cuts [40] Question: How do you view the securities portfolio post-acquisition? - The securities portfolio is viewed positively, with no immediate plans for restructuring, as the yields are satisfactory [41] Question: What are the expectations for future M&A activity? - The company is currently focused on organic growth and integration of the Enterprise acquisition, with no immediate plans for further M&A [44] Question: Can you provide details on the criticized office loans maturing in the fourth quarter? - The criticized loans are primarily from two relationships, with one recently approved for a two-year renewal and the other potentially being sold [48]

Financial Data and Key Metrics Changes - For Q3 2025, the GAAP net income was $34.3 million, with diluted EPS at $0.69, resulting in a 0.55% return on assets and a 3.82% return on average common equity [18] - Adjusted operating net income for the quarter was $77.4 million or $1.55 diluted EPS, representing a 1.23% return on assets and an 8.63% return on average common equity [18] - The net interest margin improved to 3.62%, a 25 basis point increase from the prior quarter [20] Business Line Data and Key Metrics Changes - C and I loans grew organically at a 13% annualized rate, while commercial real estate loan balances declined at a 6.7% annualized rate [13][14] - The wealth management business saw assets under administration (AUA) grow to $9.2 billion, including $1.4 billion acquired from Enterprise [15][27] Market Data and Key Metrics Changes - Demand deposit growth was 5% annualized in Q3, with demand deposits representing 28% of overall deposits [14] - The cost of deposits was reported at 1.58% [15] Company Strategy and Development Direction - The company is focused on integrating the Enterprise acquisition, with a successful systems conversion completed [4][7] - There is an emphasis on cross-selling deeper into the Enterprise customer base and retaining client-facing personnel [8][9] - The company plans to prepare for a core conversion scheduled for May 2026, which is expected to enhance technology infrastructure and support future growth [15][28] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are experiencing uncertainty due to factors like government shutdowns, tariffs, and inflation, but the client base remains resilient [11][12] - The company expects to build on solid Q3 results for improved growth and profitability in the future [16] Other Important Information - The company anticipates achieving 30% cost savings on the acquired Enterprise expense base by 2026 [27] - The tangible book value per share decreased by $2.17 or 4.5% for the quarter, but is up modestly over the year-ago metric [19] Q&A Session Summary Question: Can you quantify the C and I growth and discuss the loan pipeline? - C and I growth has been strong, particularly in lower middle markets, with a healthy loan pipeline that remains stable [36][38] Question: How is loan pricing currently? - The company aims for a spread above 200 basis points on C and I loans, with pricing around 6% [39] Question: What is the outlook on office credit and classified loans? - Management feels better about office credit than six months ago, with several larger problems resolved [43][45] Question: What are the expectations for loan growth next year? - The company anticipates low to mid single-digit loan growth, contingent on continued positive trends [47] Question: How does the margin guidance relate to potential Fed rate cuts? - Margin guidance remains stable regardless of Fed actions, with expectations for 4 to 6 basis points of expansion [54] Question: What are the plans for the securities portfolio? - There are no immediate plans to restructure the securities portfolio, which is viewed as stable [55] Question: Can you provide details on new non-accruals? - The increase in non-accruals is primarily due to three loans, with no significant loss exposure expected [57][58] Question: What is the strategy regarding capital and buybacks? - The company is comfortable with a CET1 ratio around 12% and is open to buybacks if growth remains in the low to mid single-digit range [99][102]

Core Insights - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article suggests that users may face blocks if ad-blockers are enabled, indicating a need for users to disable them for better access [1]

Financial Performance - Net income for Q3 2025 was $343 million, or $069 per diluted share[6,7] - Operating net income was $774 million, or $155 per diluted share[6,7] - Return on average assets (ROAA) was 055%, while operating ROAA was 123%[7] - Net interest margin increased by 25 bps to 362%[9] Enterprise Bancorp Acquisition - The acquisition of Enterprise Bancorp closed on July 1, 2025[9,11] - Acquired balances from Enterprise included $51 billion in assets, $39 billion in loans, $44 billion in deposits, and $15 billion of wealth AUA[11] - Tangible book value dilution from the acquisition was 70%, less than the originally anticipated 98%[11] Balance Sheet and Loan Portfolio - Total deposits reached $20296 billion, including $4363 billion acquired from Enterprise, with organic growth of $39 million or 019%[13] - Total loans amounted to $18452 billion, including $3914 billion acquired from Enterprise, with organic growth of $6 million or 003%[15] - Commercial and industrial loans grew organically by $149 million, a 329% increase[15] Asset Quality - Nonperforming loans (NPLs) were $866 million, representing 047% of total loans[17] - Criticized and classified commercial loans totaled $5189 million, or 365% of total commercial loans[18] - Assets under administration increased to $92 billion, including $15 billion from the Enterprise acquisition and $360 million in organic growth[9,45]

Core Insights - Independent Bank Corp. (INDB) reported quarterly earnings of $1.55 per share, exceeding the Zacks Consensus Estimate of $1.54 per share, and showing a significant increase from $1.01 per share a year ago, representing an earnings surprise of +0.65% [1] - The company posted revenues of $243.74 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.59% and up from $175.25 million year-over-year [2] - The stock has gained approximately 5.8% since the beginning of the year, while the S&P 500 has increased by 13.4% [3] Earnings Outlook - The earnings outlook for Independent Bank Corp. is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $1.64 on revenues of $245.61 million, and for the current fiscal year, it is $5.49 on revenues of $847.01 million [7] Industry Context - The Zacks Industry Rank indicates that the Banks - Northeast sector is currently in the top 28% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Third Quarter 2025 Financial Performance Overview [Q3 2025 Key Financial Results](index=1&type=section&id=Q3%202025%20Key%20Financial%20Results) GAAP net income decreased to $34.3 million due to merger costs, while operating net income rose to $77.4 million Q3 2025 Key Financial Results (Millions of Dollars) | Metric | Q3 2025 (GAAP) (Millions of Dollars) | Q2 2025 (GAAP) (Millions of Dollars) | Q3 2025 (Operating) (Millions of Dollars) | Q2 2025 (Operating) (Millions of Dollars) | | :-------------------------------- | :------------- | :------------- | :------------------ | :------------------ | | Net Income | $34.3 million | $51.1 million | $77.4 million | $53.5 million | | Diluted EPS | $0.69 | $1.20 | $1.55 | $1.25 | | Pre-tax Merger-Related Costs | $23.9 million | $2.2 million | N/A | N/A | | Provision for Credit Losses (Acquisition-related) | $34.5 million | N/A | N/A | N/A | [CEO Statement](index=1&type=section&id=CEO%20Statement) CEO Jeffrey Tengel highlighted Q3 results aligned with sustainable financial goals, improving net interest margin, fee income, and efficiency - The **Enterprise acquisition** and solid business activity drove **significant net interest margin improvement**, **improved fee income results**, and a **meaningful drop in the efficiency ratio**[2](index=2&type=chunk) - The company remained focused on **improving asset quality metrics**[2](index=2&type=chunk) [Enterprise Bancorp, Inc. Acquisition](index=1&type=section&id=Enterprise%20Bancorp%2C%20Inc.%20Acquisition) The Enterprise Bancorp, Inc. acquisition completed July 1, 2025, adding **27** branches, **$3.9 billion** in loans, and **$4.4 billion** in deposits - **Acquisition** of Enterprise Bancorp, Inc. completed on July 1, 2025[3](index=3&type=chunk) - Added **twenty-seven branch locations** in northern Massachusetts and southern New Hampshire[3](index=3&type=chunk) - Acquired **$3.9 billion** in loans and assumed **$4.4 billion** in deposits at fair value[3](index=3&type=chunk) - Total merger consideration: **$503.1 million**, comprising **$477.2 million** in equity (**7,478,906 shares**) and **$25.9 million** in cash[3](index=3&type=chunk) Net Assets Acquired at Fair Value (Dollars in thousands) | Assets | Amount (Thousands of Dollars) | | :------------------------------------------ | :------- | | Cash | $123,638 | | Investments | $590,267 | | Loans (including loans held for sale) | $3,913,112 | | Allowance for credit losses on PCD loans | $(9,020) | | Bank premises and equipment | $35,706 | | Goodwill | $98,302 | | Core deposit and other intangibles | $137,503 | | Other assets | $164,908 | | **Total assets acquired** | **$5,054,416** | | Liabilities | | | Deposits | $4,362,710 | | Borrowings | $62,472 | | Subordinated debt | $59,974 | | Other liabilities | $66,116 | | **Total liabilities assumed** | **$4,551,272** | | **Purchase price** | **$503,144** | Financial Highlights [Balance Sheet Overview](index=2&type=section&id=Balance%20Sheet%20Overview) Balance sheet expanded significantly in Q3 2025 due to Enterprise acquisition, increasing total assets by **24.7%** to **$25.0 billion** Key Balance Sheet Metrics (QoQ Change) (Billions of Dollars) | Metric | Sep 30, 2025 (Billions of Dollars) | Jun 30, 2025 (Billions of Dollars) | Change (%) | | :-------------------------------- | :----------- | :----------- | :--------- | | Total Assets | $25.0 billion | $20.1 billion | 24.7% | | Total Deposits | $20.3 billion | $15.9 billion | 27.7% | | Total Loans | $18.5 billion | $14.5 billion | 27.0% | | Wealth Management AUA | $9.2 billion | N/A | N/A | Return Ratios (QoQ Comparison) | Metric | Q3 2025 (GAAP) | Q2 2025 (GAAP) | Q3 2025 (Operating) | Q2 2025 (Operating) | | :-------------------------- | :------------- | :------------- | :------------------ | :------------------ | | Return on Average Assets | 0.55% | 1.04% | 1.23% | 1.09% | | Return on Average Common Equity | 3.82% | 6.68% | 8.63% | 6.99% | [Assets and Liabilities](index=2&type=section&id=Assets%20and%20Liabilities) - Total assets increased by **$4.9 billion**, or **24.7%**, to **$25.0 billion** at September 30, 2025, primarily due to the **Enterprise acquisition**[7](index=7&type=chunk) - Deposit balances increased by **$4.4 billion**, or **27.7%**, to **$20.3 billion**, reflecting Enterprise deposits and strong business deposit growth, partially offset by municipal balance reductions[8](index=8&type=chunk) - Total period-end borrowings increased by **$15.9 million** (**2.1%**), largely due to assumed Enterprise borrowings, despite the redemption of **$60.0 million** in subordinated notes and **$50.0 million** of FHLB borrowings[10](index=10&type=chunk) [Loans and Deposits](index=2&type=section&id=Loans%20and%20Deposits) - Loan balances increased by **$3.9 billion**, or **27.0%**, to **$18.5 billion**, mainly from the Enterprise loan portfolio. Organic loan growth was relatively flat overall[8](index=8&type=chunk)[9](index=9&type=chunk) - **Commercial and industrial portfolio** saw strong organic growth of **$148.7 million** (**3.3%**), offset by decreases in commercial real estate and construction[11](index=11&type=chunk) - **Total consumer loan portfolio** grew organically by **$17.8 million** (**0.4%**), with **home equity** increasing by **$20.9 million** (**1.7%**)[11](index=11&type=chunk) - Overall **core deposits** comprised **83.1%** of total deposits at September 30, 2025, up from **82.8%** at June 30, 2025[11](index=11&type=chunk) - The **total cost of deposits** increased **4 basis points** to **1.58%**, driven by the **higher cost of the acquired Enterprise deposit base**[11](index=11&type=chunk) [Securities Portfolio](index=3&type=section&id=Securities%20Portfolio) - The Company's securities portfolio increased by **$629.7 million**, or **23.4%**, to **$3.3 billion**, primarily due to the **acquisition** of Enterprise's available-for-sale securities[10](index=10&type=chunk) - New purchases of **$204.6 million** in the available-for-sale portfolio were partially offset by sales, maturities, calls, and paydowns[12](index=12&type=chunk) [Stockholders' Equity and Capital Ratios](index=3&type=section&id=Stockholders'%20Equity%20and%20Capital%20Ratios) - Stockholders' equity increased by **$472.0 million** (**15.4%**) to September 30, 2025, mainly due to the stock issuance for the **Enterprise acquisition** and strong earnings retention, partially offset by share repurchases[10](index=10&type=chunk) - **Common equity to assets ratio** decreased by **115 basis points** to **14.19%**[14](index=14&type=chunk) - **Tangible common equity to tangible assets ratio** decreased by **115 basis points** to **9.77%**[14](index=14&type=chunk) - **Book value per share** decreased by **$0.89** (**1.2%**) to **$71.24**[14](index=14&type=chunk) - **Tangible book value per share** declined by **$2.17** (**4.4%**) to **$46.63**[14](index=14&type=chunk) [Net Interest Income](index=4&type=section&id=Net%20Interest%20Income) Net interest income increased **37.9%** to **$203.3 million** in Q3 2025, with net interest margin improving **25 basis points** to **3.62%** Net Interest Income & Margin (QoQ Comparison) (Millions of Dollars) | Metric | Q3 2025 (Millions of Dollars) | Q2 2025 (Millions of Dollars) | Change (%) | | :---------------- | :-------- | :-------- | :--------- | | Net Interest Income | $203.3 million | $147.5 million | 37.9% | | Net Interest Margin | 3.62% | 3.37% | +25 bps | - **Net interest margin increase** included an **8 basis point** lift from **acquired loan purchase accounting accretion**[14](index=14&type=chunk) - **Loan yields** increased **21 basis points** to **5.71%**, driven by **higher core yield from Enterprise** and **purchase accounting**[14](index=14&type=chunk) - **Securities yields** increased **52 basis points** to **2.84%** due to **purchase discount accretion and repricing**[14](index=14&type=chunk) - **Overall cost of funding** slightly decreased to **1.72%** despite a **slightly higher cost of deposits**[14](index=14&type=chunk) [Noninterest Income](index=4&type=section&id=Noninterest%20Income) Noninterest income rose **17.8%** to **$40.4 million** in Q3 2025, driven by Enterprise acquisition volume and asset-based revenue Noninterest Income (QoQ Comparison) (Millions of Dollars) | Metric | Q3 2025 (Millions of Dollars) | Q2 2025 (Millions of Dollars) | Change (%) | | :-------------------------- | :-------- | :-------- | :--------- | | Total Noninterest Income | $40.4 million | $34.3 million | 17.8% | | Deposit Account Fees | +$1.7 million | N/A | 23.9% | | Interchange and ATM Fees | +$992,000 | N/A | 19.9% | | Investment and Advisory Income | +$2.3 million | N/A | 20.0% | | Mortgage Banking Income | +$372,000 | N/A | 34.7% | - **Investment and advisory income** benefited from **$1.5 billion** of **Enterprise assets under administration**, increasing **total AUA** by **25.3%** to **$9.2 billion**[14](index=14&type=chunk)[16](index=16&type=chunk) - **Loan level derivative income** rose by **$1.2 million** due to **increased customer demand**[14](index=14&type=chunk) - **No gains on life insurance benefits** were recognized in Q3 2025, compared to **$1.7 million** in Q2 2025[16](index=16&type=chunk) [Noninterest Expense](index=5&type=section&id=Noninterest%20Expense) Noninterest expense increased **47.8%** to **$160.8 million** in Q3 2025, primarily due to merger expenses and expanded operations Noninterest Expense (QoQ Comparison) (Millions of Dollars) | Metric | Q3 2025 (Millions of Dollars) | Q2 2025 (Millions of Dollars) | Change (%) | | :-------------------------- | :-------- | :-------- | :--------- | | Total Noninterest Expense | $160.8 million | $108.8 million | 47.8% | | Merger and Acquisition Expenses | $23.9 million | $2.2 million | 967.13% | | Salaries and Employee Benefits | +$18.3 million | N/A | 29.1% | | Amortization of Intangible Assets | +$6.2 million | N/A | 511.11% | - **Increased workforce base** and **expanded branch network** from the **Enterprise acquisition** led to **higher salaries and occupancy expenses**[17](index=17&type=chunk) - **FDIC assessment** increased by **29.8%** due to an **increased assessment base** from the **acquisition**[17](index=17&type=chunk) - The **majority of merger expenses** related to **change in control**, **severance contracts**, **vendor/systems contract terminations**, and **legal/professional fees**[17](index=17&type=chunk) [Asset Quality](index=5&type=section&id=Asset%20Quality) Asset quality metrics showed increased nonperforming loans and delinquencies in Q3 2025, largely due to the acquired Enterprise loan portfolio Asset Quality Metrics (QoQ Comparison) (Millions of Dollars) | Metric | Sep 30, 2025 (Millions of Dollars) | Jun 30, 2025 (Millions of Dollars) | Change (Millions of Dollars) | | :-------------------------------- | :----------- | :----------- | :----- | | Nonperforming Loans | $86.6 million | $56.2 million | +$30.4 million | | Nonperforming Loans as % of Total Loans | 0.47% | 0.39% | +0.08% | | Delinquencies as % of Total Loans | 0.49% | 0.20% | +0.29% | | Provision for Credit Losses | $38.5 million | $7.2 million | +$31.3 million | | Allowance for Credit Losses on Total Loans | $190.5 million | $144.8 million | +$45.7 million | - Approximately **$24.5 million** of nonperforming loans were from the Enterprise acquired portfolio[17](index=17&type=chunk) - The third quarter provision for credit losses included **$34.5 million** related to non-purchased credit deteriorated loans acquired from Enterprise[21](index=21&type=chunk) Corporate Information [Conference Call Details](index=6&type=section&id=Conference%20Call%20Details) Independent Bank Corp. scheduled a conference call for October 17, 2025, to discuss third-quarter earnings - Conference call to discuss Q3 earnings hosted by CEO Jeffrey Tengel and CFO Mark Ruggiero on October 17, 2025, at 10:00 a.m. ET[18](index=18&type=chunk) - Internet access available at https://INDB.RocklandTrust.com; telephonic access at 1-888-336-7153 (reference: INDB)[18](index=18&type=chunk) [About Independent Bank Corp.](index=6&type=section&id=About%20Independent%20Bank%20Corp.) Independent Bank Corp. is the holding company for Rockland Trust Company, a full-service commercial bank operating across Massachusetts, New Hampshire, and Rhode Island - Independent Bank Corp. (Nasdaq Global Select Market: INDB) is the parent company of Rockland Trust Company[19](index=19&type=chunk) - Rockland Trust Company is a full-service commercial bank with retail branches in Eastern Massachusetts, Worcester County, and Southern New Hampshire, and commercial banking/investment management offices in Massachusetts, New Hampshire, and Rhode Island[19](index=19&type=chunk) [Forward-Looking Statements and Risk Factors](index=6&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) The report includes forward-looking statements, cautioning that actual results may differ due to various economic, industry, and acquisition-related risks - Statements identified by terms like "expect," "achieve," "plan," "believe," "future," "positioned," "continued," "will," "would," "potential," or similar variations are forward-looking[20](index=20&type=chunk) - **Adverse economic conditions** in New England and the Company's market area[22](index=22&type=chunk) - Events impacting the **financial services industry**, including **bank failures** and **competition for deposits**[22](index=22&type=chunk) - Risks related to the **Enterprise acquisition**, such as **integration difficulties**, **higher-than-anticipated fees**, and **inability to achieve expected synergies**[23](index=23&type=chunk) - **Changes in interest rates, laws, regulations, and increased competition**[23](index=23&type=chunk) - **Operational risks related to information technology, cyber threats, and fraud**[23](index=23&type=chunk) - Readers are cautioned not to place **undue reliance on forward-looking statements** and should consider **Risk Factors detailed in the Company's Form 10-K and 10-Q reports**[24](index=24&type=chunk) [Non-GAAP Financial Measures Explanation](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) The report uses non-GAAP measures like operating net income to provide insights into core banking business, excluding merger expenses, but not as GAAP substitutes - **Non-GAAP measures** include **operating net income**, **operating EPS**, operating return on average assets, operating return on average common equity, **adjusted net interest margin**, **tangible book value per share**, and the **tangible common equity ratio**[25](index=25&type=chunk) - Management uses these **non-GAAP measures** to assess the strength of the **core banking business**, identify trends, and compare **capital adequacy**, by excluding items like **merger and acquisition expenses** and **significant purchase accounting adjustments**[26](index=26&type=chunk)[27](index=27&type=chunk) - These **non-GAAP measures** are **not substitutes for GAAP results** and may **not be comparable to those presented by other companies**[28](index=28&type=chunk) Appendices: Detailed Financial Data [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) Consolidated balance sheets show significant growth in assets, liabilities, and equity from Q2 to Q3 2025, driven by the Enterprise acquisition Consolidated Balance Sheet Highlights (Dollars in thousands) | Metric | Sep 30, 2025 (Thousands of Dollars) | Jun 30, 2025 (Thousands of Dollars) | Sep 30, 2024 (Thousands of Dollars) | % Change (QoQ) | % Change (YoY) | | :-------------------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Total Assets | $24,993,239 | $20,048,934 | $19,408,117 | 24.66% | 28.78% | | Total Securities | $3,325,015 | $2,695,280 | $2,765,575 | 23.36% | 20.23% | | Total Loans (Gross) | $18,452,443 | $14,533,828 | $14,360,807 | 26.96% | 28.49% | | Total Deposits | $20,295,869 | $15,893,740 | $15,441,023 | 27.70% | 31.44% | | Total Borrowings | $775,377 | $759,428 | $663,380 | 2.10% | 16.88% | | Total Stockholders' Equity | $3,546,887 | $3,074,856 | $2,977,148 | 15.35% | 19.14% | [Summary of Reclassification of Small Business Loans](index=11&type=section&id=Summary%20of%20Reclassification%20of%20Small%20Business%20Loans) The company reclassified certain small business loans to align with updated definitions, impacting reported balances and yields across periods Reclassification of Small Business Loans (June 30, 2025) (Thousands of Dollars) | Category | Previously Reported (Thousands of Dollars) | Reclassification (Thousands of Dollars) | After Reclassification (Thousands of Dollars) | | :------------------------------------------------------------------------------------------------ | :------------------ | :--------------- | :--------------------- | | Commercial and industrial | $3,215,480 | $211,458 | $3,426,938 | | Commercial real estate | $6,525,438 | $89,085 | $6,614,523 | Reclassification of Small Business Loans (Three Months Ended June 30, 2025) (Thousands of Dollars) | Category | Average Balance (Previously Reported) (Thousands of Dollars) | Interest Earned/Paid (Thousands of Dollars) | Yield/Rate | Average Balance (After Reclassification) (Thousands of Dollars) | Interest Earned/Paid (After Reclassification) (Thousands of Dollars) | Yield/Rate (After Reclassification) | | :------------------------------------------------------------------------------------------------ | :------------------------------------ | :------------------- | :--------- | :--------------------------------------- | :-------------------------------------------- | :---------------------------------- | | Commercial and industrial | $3,156,455 | $47,583 | 6.05% | $3,363,944 | $51,287 | 6.12% | | Commercial real estate | $6,585,559 | $85,871 | 5.23% | $6,672,633 | $87,096 | 5.24% | Reclassification of Small Business Loans (Nine Months Ended September 30, 2024) (Thousands of Dollars) | Category | Average Balance (Previously Reported) (Thousands of Dollars) | Interest Earned/Paid (Thousands of Dollars) | Yield/Rate | Average Balance (After Reclassification) (Thousands of Dollars) | Interest Earned/Paid (After Reclassification) (Thousands of Dollars) | Yield/Rate (After Reclassification) | | :------------------------------------------------------------------------------------------------ | :------------------------------------ | :------------------- | :--------- | :--------------------------------------- | :-------------------------------------------- | :---------------------------------- | | Commercial and industrial | $2,982,147 | $137,099 | 6.14% | $3,166,270 | $146,867 | 6.20% | | Commercial real estate | $6,725,750 | $261,907 | 5.20% | $6,805,910 | $265,161 | 5.20% | [Consolidated Statements of Income](index=11&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated statements of income reflect increased net interest income due to the Enterprise acquisition, but GAAP net income decreased from higher provisions and merger expenses Consolidated Statements of Income (Three Months Ended) (Dollars in thousands) | Metric (Dollars in thousands) | Sep 30, 2025 (Thousands of Dollars) | Jun 30, 2025 (Thousands of Dollars) | Sep 30, 2024 (Thousands of Dollars) | % Change (QoQ) | % Change (YoY) | | :-------------------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Total Interest Income | $294,753 | $218,192 | $216,524 | 35.09% | 36.13% | | 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% | | Total Noninterest Income | $40,398 | $34,308 | $33,549 | 17.75% | 20.41% | | Total Noninterest Expenses | $160,836 | $108,798 | $100,443 | 47.83% | 60.13% | | Net Income (GAAP) | $34,262 | $51,101 | $42,947 | (32.95)% | (20.22)% | | Operating Net Income (Non-GAAP) | $77,354 | $53,453 | $42,947 | 44.71% | 80.12% | | Diluted EPS (GAAP) | $0.69 | $1.20 | $1.01 | (42.50)% | (31.68)% | | Diluted EPS (Operating, Non-GAAP) | $1.55 | $1.25 | $1.01 | 24.00% | 53.47% | Consolidated Statements of Income (Nine Months Ended) (Dollars in thousands) | Metric (Dollars in thousands) | Sep 30, 2025 (Thousands of Dollars) | Sep 30, 2024 (Thousands of Dollars) | % Change (YoY) | | :-------------------------------- | :----------- | :----------- | :------------- | | Total Interest Income | $724,865 | $636,433 | 13.89% | | Total Interest Expense | $228,520 | $219,365 | 4.17% | | Net Interest Income | $496,345 | $417,068 | 19.01% | | Provision for Credit Losses | $60,719 | $28,750 | 111.20% | | Total Noninterest Income | $107,245 | $95,822 | 11.92% | | Total Noninterest Expenses | $375,512 | $299,944 | 25.19% | | Net Income (GAAP) | $129,787 | $142,047 | (8.63)% | | Operating Net Income (Non-GAAP) | $176,061 | $142,047 | 23.95% | | Diluted EPS (GAAP) | $2.88 | $3.34 | (13.77)% | | Diluted EPS (Operating, Non-GAAP) | $3.91 | $3.34 | 17.07% | [Performance Ratios](index=12&type=section&id=Performance%20Ratios) Performance ratios for Q3 2025 show declining GAAP return metrics due to acquisition costs, while operating metrics demonstrate improved profitability and efficiency Performance Ratios (Three Months Ended) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------------------------------------------------------------------ | :----------- | :----------- | :----------- | | Net Interest Margin (FTE) | 3.62% | 3.37% | 3.29% | | Return on Average Assets (GAAP) | 0.55% | 1.04% | 0.88% | | Return on Average Assets (Operating, Non-GAAP) | 1.23% | 1.09% | 0.88% | | Return on Average Common Equity (GAAP) | 3.82% | 6.68% | 5.75% | | Return on Average Common Equity (Operating, Non-GAAP) | 8.63% | 6.99% | 5.75% | | Efficiency Ratio (GAAP) | 65.99% | 59.84% | 57.31% | | Efficiency Ratio (Operating, Non-GAAP) | 56.18% | 58.61% | 57.31% | Performance Ratios (Nine Months Ended) | Metric | Sep 30, 2025 | Sep 30, 2024 | | :------------------------------------------------------------------------------------------------ | :----------- | :----------- | | Net Interest Margin (FTE) | 3.49% | 3.26% | | Return on Average Assets (GAAP) | 0.81% | 0.98% | | Return on Average Assets (Operating, Non-GAAP) | 1.10% | 0.98% | | Return on Average Common Equity (GAAP) | 5.39% | 6.49% | | Return on Average Common Equity (Operating, Non-GAAP) | 7.31% | 6.49% | | Efficiency Ratio (GAAP) | 62.21% | 58.48% | | Efficiency Ratio (Operating, Non-GAAP) | 57.69% | 58.48% | [Asset Quality Details](index=15&type=section&id=Asset%20Quality%20Details) Detailed asset quality metrics show increased nonperforming loans and assets in Q3 2025, primarily due to the Enterprise acquisition Nonperforming Assets At (Dollars in thousands) | Metric | Sep 30, 2025 (Thousands of Dollars) | Jun 30, 2025 (Thousands of Dollars) | Sep 30, 2024 (Thousands of Dollars) | | :-------------------------------- | :----------- | :----------- | :----------- | | Total Nonperforming Loans | $86,597 | $56,217 | $104,248 | | Total Nonperforming Assets | $88,697 | $58,317 | $104,358 | | Nonperforming Loans/Gross Loans | 0.47% | 0.39% | 0.73% | | Nonperforming Assets/Total Assets | 0.35% | 0.29% | 0.54% | | Allowance for Credit Losses/Nonperforming Loans | 219.96% | 257.53% | 157.03% | | Allowance for Credit Losses/Total Loans | 1.03% | 1.00% | 1.14% | | Delinquent Loans/Total Loans | 0.49% | 0.20% | 0.33% | Net Charge-Offs (Recoveries) (Dollars in thousands) | Metric | Q3 2025 (Thousands of Dollars) | Q2 2025 (Thousands of Dollars) | Q3 2024 (Thousands of Dollars) | | :-------------------------------- | :------ | :------ | :------ | | Total Net Charge-Offs | $1,836 | $6,519 | $6,663 | | Net Charge-Offs to Average Loans (annualized) | 0.04% | 0.18% | 0.18% | - Nonperforming assets beginning balance was **$58,317 thousand**, with **$24,487 thousand** from Enterprise nonperforming assets at July 1, 2025[40](index=40&type=chunk) [Balance Sheet and Capital Ratios (Detailed)](index=16&type=section&id=Balance%20Sheet%20and%20Capital%20Ratios%20(Detailed)) Detailed balance sheet and capital ratios show a decrease in key capital ratios from Q2 to Q3 2025, reflecting the Enterprise acquisition's impact Balance Sheet and Capital Ratios | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Gross Loans/Total Deposits | 90.92% | 91.44% | 93.00% | | Common Equity Tier 1 Capital Ratio | 12.94% | 14.70% | 14.57% | | Tier 1 Leverage Capital Ratio | 10.15% | 11.44% | 11.22% | | Common Equity to Assets Ratio (GAAP) | 14.19% | 15.34% | 15.34% | | Tangible Common Equity to Tangible Assets Ratio (Non-GAAP) | 9.77% | 10.92% | 10.75% | | Book Value Per Share (GAAP) | $71.24 | $72.13 | $70.08 | | Tangible Book Value Per Share (Non-GAAP) | $46.63 | $48.80 | $46.57 | [Appendix: Supplemental Interest Rate Data](index=17&type=section&id=Appendix%3A%20Supplemental%20Interest%20Rate%20Data) This section details average balances, interest, and yields for assets and liabilities, highlighting the Enterprise acquisition's impact on net interest margin and funding costs Interest-Earning Assets and Liabilities (Three Months Ended Sep 30, 2025) (Thousands of Dollars) | Category | Average Balance (Thousands of Dollars) | Interest Earned/Paid (Thousands of Dollars) | Yield/Rate | | :------------------------------------------ | :-------------- | :------------------- | :--------- | | Interest-earning deposits with banks, federal funds sold, and short term investments | $688,394 | $7,245 | 4.18% | | Total securities | $3,293,344 | $23,566 | 2.84% | | Total loans | $18,432,862 | $265,104 | 5.71% | | **Total interest-earning assets** | **$22,430,232** | **$296,140** | **5.24%** | | Total interest-bearing deposits | $14,549,513 | $80,739 | 2.20% | | Total borrowings | $784,215 | $10,670 | 5.40% | | **Total interest-bearing liabilities** | **$15,333,728** | **$91,409** | **2.37%** | | Net interest income | N/A | $204,731 | N/A | | Interest rate spread | N/A | N/A | 2.87% | | Net interest margin | N/A | N/A | 3.62% | | Cost of total deposits | N/A | N/A | 1.58% | | Cost of total funding liabilities | N/A | N/A | 1.72% | Interest-Earning Assets and Liabilities (Nine Months Ended Sep 30, 2025) (Thousands of Dollars) | Category | Average Balance (Thousands of Dollars) | Interest Earned/Paid (Thousands of Dollars) | Yield/Rate | | :------------------------------------------ | :-------------- | :------------------- | :--------- | | Interest earning deposits with banks, federal funds sold, and short term investments | $413,974 | $13,076 | 4.22% | | Total securities | $2,931,066 | $54,744 | 2.50% | | Total loans | $15,824,867 | $660,288 | 5.58% | | **Total interest-earning assets** | **$19,180,563** | **$728,565** | **5.08%** | | Total interest-bearing deposits | $12,309,201 | $200,018 | 2.17% | | Total borrowings | $737,046 | $28,502 | 5.17% | | **Total interest-bearing liabilities** | **$13,046,247** | **$228,520** | **2.34%** | | Net interest income | N/A | $500,045 | N/A | | Interest rate spread | N/A | N/A | 2.74% | | Net interest margin | N/A | N/A | 3.49% | | Cost of total deposits | N/A | N/A | 1.56% | | Cost of total funding liabilities | N/A | N/A | 1.71% | [Appendix A: Organic Loan and Deposit Growth](index=21&type=section&id=Appendix%20A%3A%20Organic%20Loan%20and%20Deposit%20Growth) Appendix A details organic loan and deposit growth, showing that while the Enterprise acquisition boosted total balances, organic growth was modest Linked Quarter Organic Loan and Deposit Growth (Dollars in thousands) | Category | Sep 30, 2025 (Thousands of Dollars) | Jun 30, 2025 (Thousands of Dollars) | Enterprise Balances Acquired (Thousands of Dollars) | Organic Growth/(Decline) (Thousands of Dollars) | Organic Growth/(Decline)% | | :-------------------------- | :----------- | :----------- | :--------------------------- | :----------------------- | :------------------------ | | Total loans | $18,452,443 | $14,533,828 | $3,913,112 | $5,503 | 0.03% | | Total deposits | $20,295,869 | $15,893,740 | $4,362,710 | $39,419 | 0.19% | | Commercial and industrial loans | $4,667,262 | $3,426,938 | $1,091,649 | $148,675 | 3.29% | | Commercial real estate loans | $8,106,490 | $6,614,523 | $1,629,698 | $(137,731) | (1.67)% | | Noninterest-bearing demand deposits | $5,635,911 | $4,525,907 | $1,040,758 | $69,246 | 1.24% | | Money market deposits | $4,128,400 | $3,368,354 | $815,532 | $(55,486) | (1.33)% | Year-to-Date Organic Loan and Deposit Growth (Dollars in thousands) | Category | Sep 30, 2025 (Thousands of Dollars) | Dec 31, 2024 (Thousands of Dollars) | Enterprise Balances Acquired (Thousands of Dollars) | Organic Growth/(Decline) (Thousands of Dollars) | Organic Growth/(Decline)% | | :-------------------------- | :----------- | :----------- | :--------------------------- | :----------------------- | :------------------------ | | Total loans | $18,452,443 | $14,508,378 | $3,913,112 | $30,953 | 0.17% | | Total deposits | $20,295,869 | $15,305,978 | $4,362,710 | $627,181 | 3.19% | | Commercial and industrial loans | $4,667,262 | $3,246,455 | $1,091,649 | $329,158 | 7.59% | | Commercial real estate loans | $8,106,490 | $6,839,705 | $1,629,698 | $(362,913) | (4.28)% | | Noninterest-bearing demand deposits | $5,635,911 | $4,390,703 | $1,040,758 | $204,450 | 3.76% | | Money market deposits | $4,128,400 | $2,960,381 | $815,532 | $352,487 | 9.34% | [Appendix B: NON-GAAP Reconciliation of Balance Sheet Metrics](index=22&type=section&id=Appendix%20B%3A%20NON-GAAP%20Reconciliation%20of%20Balance%20Sheet%20Metrics) Appendix B reconciles GAAP to non-GAAP tangible balance sheet metrics, highlighting goodwill and intangible asset impact on capital adequacy Non-GAAP Reconciliation of Balance Sheet Metrics (Dollars in thousands, except per share data) | Metric | Sep 30, 2025 (Thousands of Dollars) | Jun 30, 2025 (Thousands of Dollars) | Sep 30, 2024 (Thousands of Dollars) | | :-------------------------------- | :----------- | :----------- | :----------- | | Stockholders' equity (GAAP) | $3,546,887 | $3,074,856 | $2,977,148 | | Less: Goodwill and other intangibles | $1,225,106 | $994,814 | $998,773 | | Tangible common equity (Non-GAAP) | $2,321,781 | $2,080,042 | $1,978,375 | | Assets (GAAP) | $24,993,239 | $20,048,934 | $19,408,116 | | Less: Goodwill and other intangibles | $1,225,106 | $994,814 | $998,773 | | Tangible assets (Non-GAAP) | $23,768,133 | $19,054,120 | $18,409,343 | | Common equity to assets ratio (GAAP) | 14.19% | 15.34% | 15.34% | | Tangible common equity to tangible assets ratio (Non-GAAP) | 9.77% | 10.92% | 10.75% | | Book value per share (GAAP) | $71.24 | $72.13 | $70.08 | | Tangible book value per share (Non-GAAP) | $46.63 | $48.80 | $46.57 | [Appendix C: Non-GAAP Reconciliation of Earnings Metrics](index=23&type=section&id=Appendix%20C%3A%20Non-GAAP%20Reconciliation%20of%20Earnings%20Metrics) Appendix C reconciles GAAP net income to operating net income, adjusting for non-core items like merger expenses, to show underlying operational performance Non-GAAP Reconciliation of Earnings Metrics (Three Months Ended, Dollars in thousands) | Metric | Sep 30, 2025 (Thousands of Dollars) | Jun 30, 2025 (Thousands of Dollars) | Sep 30, 2024 (Thousands of Dollars) | | :-------------------------------- | :----------- | :----------- | :----------- | | Net income (GAAP) | $34,262 | $51,101 | $42,947 | | Provision for non-PCD acquired loans | $34,519 | — | — | | Add - merger and acquisition expenses | $23,893 | $2,239 | — | | Operating net income (Non-GAAP) | $77,354 | $53,453 | $42,947 | | Return on average assets (GAAP) | 0.55% | 1.04% | 0.88% | | Return on average assets on an operating basis (Non-GAAP) | 1.23% | 1.09% | 0.88% | | Efficiency ratio (GAAP) | 65.99% | 59.84% | 57.31% | | Efficiency ratio on an operating basis (Non-GAAP) | 56.18% | 58.61% | 57.31% | Non-GAAP Reconciliation of Earnings Metrics (Nine Months Ended, Dollars in thousands) | Metric | Sep 30, 2025 (Thousands of Dollars) | Sep 30, 2024 (Thousands of Dollars) | | :-------------------------------- | :----------- | :----------- | | Net income (GAAP) | $129,787 | $142,047 | | Provision for non-PCD acquired loans | $34,519 | — | | Add - merger and acquisition expenses | $27,287 | — | | Operating net income (Non-GAAP) | $176,061 | $142,047 | | Return on average assets (GAAP) | 0.81% | 0.98% | | Return on average assets on an operating basis (Non-GAAP) | 1.10% | 0.98% | | Efficiency ratio (GAAP) | 62.21% | 58.48% | | Efficiency ratio on an operating basis (Non-GAAP) | 57.69% | 58.48% | [Appendix D: Net Interest Margin Analysis & Non-GAAP Reconciliation of Adjusted Margin](index=25&type=section&id=Appendix%20D%3A%20Net%20Interest%20Margin%20Analysis%20%26%20Non-GAAP%20Reconciliation%20of%20Adjusted%20Margin) Appendix D analyzes net interest margin and reconciles it to an adjusted non-GAAP margin, highlighting acquisition fair value marks and loan accretion impact Net Interest Margin Analysis & Non-GAAP Reconciliation (Three Months Ended, Dollars in thousands) | Metric | Sep 30, 2025 (Thousands of Dollars) | Jun 30, 2025 (Thousands of Dollars) | | :-------------------------------- | :----------- | :----------- | | Reported total interest earning assets | $22,430,232 | $17,672,302 | | Reported Net Interest Income | $204,731 | $148,672 | | Reported Net Interest Margin | 3.62% | 3.37% | | Loan accretion impact on margin | (0.08)% | — % | | Adjusted margin (Non-GAAP) | 3.54% | 3.37% | - The **adjusted margin** for Q3 2025 was **3.54%**, after accounting for **acquisition fair value marks**, including a negative impact of **0.08%** from **loan accretion**[59](index=59&type=chunk)

Core Insights - Independent Bank Corp. (INDB) is expected to report quarterly earnings of $1.54 per share, reflecting a year-over-year increase of 52.5% [1] - Revenues are anticipated to reach $242.33 million, which is a 38.3% increase from the same quarter last year [1] - There have been no revisions in the consensus EPS estimate over the last 30 days, indicating stability in analysts' forecasts [1] Earnings Estimates - The 'Efficiency Ratio' is projected to be 69.9%, up from 57.3% in the previous year [4] - 'Net interest margin (FTE)' is expected to be 3.6%, compared to 3.3% in the same quarter last year [4] - The 'Average Balance - Total interest-earning assets' is estimated at $22.51 billion, an increase from $17.29 billion year-over-year [4] Income Projections - 'Total Non-Interest Income' is forecasted to be $38.68 million, up from $33.55 million a year ago [5] - 'Net Interest Income' is expected to reach $204.35 million, compared to $141.70 million in the previous year [5] - 'Interchange and ATM fees' are projected at $5.05 million, slightly up from $4.97 million year-over-year [5] Additional Income Metrics - 'Deposit account fees' are estimated at $7.36 million, compared to $6.78 million in the same quarter last year [6] - 'Other noninterest income' is projected to be $11.64 million, up from $6.66 million year-over-year [6] - 'Investment management and advisory' is expected to reach $11.46 million, compared to $11.03 million in the previous year [7] Market Performance - Over the past month, Independent Bank Corp. shares have declined by 8.1%, while the Zacks S&P 500 composite has increased by 0.4% [7] - Based on its Zacks Rank 2 (Buy), INDB is expected to outperform the overall market in the upcoming period [7]