Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ___________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-9047 Independent Bank Corp. (Exact name of registrant as specified in i ...

| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change | | --- | --- | --- | --- | --- | | EPS (Non-GAAP) | $1.25 | $1.21 | $1.21 | 3.3% | | Revenue (GAAP) | $181.8 million | $178.2 million | $170.3 million | 6.7% | | Net Interest Income | $147.5 million | | $137.9 million | 6.9% | | Net Interest Margin | 3.37% | | 3.25% | 0.12 pp | | Noninterest Income | $34.3 million | | $32.3 million | 6.1% | | Efficiency Ratio | 59.84% | | 58.51% | 1.33 pp | Company Overview and Business Focus Independent Bank ope ...

Company Overview - Independent Bank Corp. (INDB) is headquartered in Hanover and operates in the Finance sector, specifically within the Banks - Northeast industry [3] - The company has experienced a price change of 7.07% so far this year [3] Dividend Information - INDB currently pays a dividend of $0.59 per share, resulting in a dividend yield of 3.43%, which is higher than the industry average of 2.67% and the S&P 500's yield of 1.51% [3] - The annualized dividend of $2.36 represents a 3.5% increase from the previous year [4] - Over the past 5 years, INDB has increased its dividend 5 times, achieving an average annual increase of 5.67% [4] - The current payout ratio is 52%, indicating that the company pays out 52% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for 2025 projects earnings of $5.26 per share, reflecting a year-over-year growth rate of 15.60% [5] Investment Appeal - INDB is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 1 (Strong Buy) [6]

Financial Data and Key Metrics Changes - The company reported a GAAP net income of $51.1 million for Q2 2025, with diluted EPS of $1.20, resulting in a 1.04% return on assets and a 6.68% return on average common equity [21] - Adjusted operating net income for the quarter was $53.5 million or $1.25 diluted EPS, representing a 1.09% return on assets [21] - Tangible book value per share increased by $0.99 during the quarter, reflecting solid earnings retention [22] Business Line Data and Key Metrics Changes - C&I loans increased by 3.4% in the second quarter, while CRE and construction loan balances decreased by 1.7% [8][10] - Total loans increased modestly, with C&I balances driving growth, while transactional CRE balances experienced attrition [24] - Wealth Management business grew AUA by 4% to $7.4 billion, driven mostly by market appreciation [17] Market Data and Key Metrics Changes - Non-performing loans decreased significantly from $89.5 million to $56.2 million, representing 39 basis points of total loans [24] - The cost of deposits was reported at 1.54%, highlighting the value of the deposit franchise [16] Company Strategy and Development Direction - The company aims to reduce its CRE concentration below 300%, with a current concentration of 274% expected to rise to 310-315% post-acquisition of Enterprise Bank [10] - The strategic focus includes growing C&I loans to reduce dependence on CRE and drive deposit and fee income growth [10][20] - The company is preparing for a core conversion scheduled for May 2026, which is expected to enhance technology infrastructure and support future growth [16] Management's Comments on Operating Environment and Future Outlook - Management noted that while economic uncertainty has improved, the impact of tariffs and federal government actions remains unclear, causing customers to pause significant expansion initiatives [7] - The management expressed confidence in the ability to unlock earnings power through prudent expense and capital management, alongside the benefits from the Enterprise acquisition [20] Other Important Information - The company announced a $150 million stock buyback plan to be opportunistic in buying back stock [5] - The acquisition of Enterprise Bank is expected to enhance shareholder value and provide cross-sell opportunities [15][19] Q&A Session Summary Question: Where were new loan originations during the quarter? - Management indicated good loan originations across most segments, with a competitive landscape remaining challenging [37][38] Question: Why has small business lending been successful? - The success is attributed to experienced bankers and a centralized underwriting unit that enables quick loan request turnaround [40] Question: What is the outlook for the net interest margin? - Management expects the margin to gradually rise, particularly if the Fed cuts rates, with a focus on asset repricing [49] Question: Is the worst behind for credit? - Management is cautious, acknowledging progress but not ready to declare that the worst is over [50][51] Question: Can you provide details on a large loan modification? - A large syndicated loan was restructured into a Note A and Note B structure, with no cash payments until mid-2026 [55][56] Question: What is the expected pro forma CET1 ratio? - The pro forma CET1 ratio is expected to be in the mid-12% range, around 12.5% [92]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported GAAP net income of $51.1 million and diluted EPS of $1.20, resulting in a 1.04% return on assets and a 6.68% return on average common equity [21] - Adjusted operating net income was $53.5 million or $1.25 diluted EPS, reflecting a 1.09% return on assets and a 6.99% return on average tangible common equity [21] - Tangible book value per share increased by $0.99 during the quarter, driven by solid earnings retention [22] Business Line Data and Key Metrics Changes - C&I loans increased by 3.4% in Q2, while CRE and construction loan balances decreased by 1.7% [8][24] - The Wealth Management business grew AUA by 4% to $7.4 billion, with total Investment Management revenues increasing by 1.4% from the previous quarter [17] Market Data and Key Metrics Changes - Non-performing loans decreased from $89.5 million to $56.2 million, representing 39 basis points of total loans [24] - Core deposit growth remained strong, with period-end balances up $218 million or 1.39% for the quarter [23] Company Strategy and Development Direction - The company aims to reduce its CRE concentration below 300%, with current levels at 274% and expectations to reach 290% by year-end 2027 [9] - The acquisition of Enterprise Bank is expected to enhance shareholder value and provide synergies from a broader product set [14][15] Management's Comments on Operating Environment and Future Outlook - Management noted that while economic uncertainty has improved, the impact of tariffs and federal government actions remains unclear, causing customers to pause significant expansion plans [7] - The company recognizes the need to improve profitability metrics and believes that prudent expense and capital management will unlock inherent earnings power [19] Other Important Information - The company announced a $150 million stock buyback plan to be opportunistic in buying back stock [5][22] - The core conversion of the entire bank is scheduled for May 2026, which is expected to improve technology infrastructure and support future growth [16] Q&A Session Summary Question: Where were new loan originations during the quarter? - Management indicated good loan originations across most segments, with a competitive landscape remaining challenging [37][38] Question: Why has small business lending been successful? - The success is attributed to experienced bankers and a centralized underwriting unit that allows for quick loan request turnaround [40][41] Question: What is the outlook for net interest margin (NIM)? - Management expects NIM to gradually rise if the Fed cuts rates, with a projected margin in the mid-3.6% range for Q3 [47][48] Question: Is the worst behind for credit issues? - Management is cautious, stating that while progress has been made, it is not ready to declare that the worst is over [49][50] Question: Can you provide details on a large loan modification? - A large syndicated loan was restructured into a Note A and Note B structure, with no cash payments until mid-2026 [53][55] Question: What is the expected CET1 ratio? - The expected CET1 ratio is projected to be in the mid-12% range, around 12.5% [89]

Core Insights - Independent Bank Corp. reported $181.8 million in revenue for Q2 2025, a year-over-year increase of 6.8% [1] - The EPS for the same period was $1.25, compared to $1.21 a year ago, exceeding the consensus estimate of $1.20 by 4.17% [1] - The revenue surpassed the Zacks Consensus Estimate of $179.81 million, resulting in a surprise of +1.11% [1] Financial Performance Metrics - Efficiency Ratio stood at 59.8%, slightly above the three-analyst average estimate of 59.6% [4] - Net interest margin (FTE) was reported at 3.4%, compared to the average estimate of 3.3% [4] - Total interest-earning assets averaged $17.67 billion, below the estimated $17.77 billion [4] - Total Non-Interest Income reached $34.31 million, exceeding the average estimate of $32.97 million [4] - Net Interest Income was $147.5 million, slightly above the estimated $146.94 million [4] - Interchange and ATM fees totaled $5 million, surpassing the average estimate of $4.76 million [4] - Deposit account fees were reported at $7.14 million, compared to the average estimate of $6.76 million [4] - Mortgage banking income was $1.07 million, exceeding the average estimate of $0.93 million [4] Stock Performance - Shares of Independent Bank Corp. returned +4.8% over the past month, outperforming the Zacks S&P 500 composite's +4.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Independent Bank Corp. reported strong Q2 2025 results, with net income of **$51.1 million** and a new **$150 million** stock repurchase plan Q2 2025 Key Earnings Metrics (Millions) | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Income | $51.1 | $44.4 | | Diluted EPS | $1.20 | $1.04 | | Operating Net Income (Non-GAAP) | $53.5 | $45.3 | | Operating Diluted EPS (Non-GAAP) | $1.25 | $1.06 | Q2 2025 Key Performance Ratios (%) | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Return on Average Assets (ROA) | 1.04 | 0.93 | | Return on Average Common Equity (ROE) | 6.68 | 5.94 | | Net Interest Margin (NIM) | 3.37 | 3.42 | - A new stock repurchase plan was announced, authorizing up to **$150 million** in common stock repurchases, scheduled to expire on July 16, 2026[1](index=1&type=chunk) - The acquisition of Enterprise Bancorp was completed, with the core operating system conversion expected in October 2025, and merger-related costs were **$2.2 million** in Q2 2025[1](index=1&type=chunk)[2](index=2&type=chunk) [Balance Sheet](index=2&type=section&id=Balance%20Sheet) Total assets grew to **$20.0 billion** in Q2 2025, driven by deposit and loan growth, while borrowings decreased and equity strengthened Balance Sheet Changes (Q2 2025 vs Q1 2025) | Account | Q2 2025 Balance | QoQ Change (Millions) | QoQ Change (Annualized) | | :--- | :--- | :--- | :--- | | Total Assets | $20.0 billion | +$160.7 | +3.2% | | Total Loans | $14.5 billion | +$41.9 | +1.2% | | Total Deposits | $15.9 billion | +$217.7 | +5.6% | | Total Borrowings | $759.4 million | -$100.4 | -11.7% (not annualized) | - Loan growth was driven by a **$105.0 million** (**13.5% annualized**) increase in the commercial and industrial portfolio and a **$48.8 million** (**5.4% annualized**) rise in consumer loans[6](index=6&type=chunk) - Deposit growth was led by increases in municipal and business categories, with core deposits remaining stable at **82.8%** of total deposits[6](index=6&type=chunk) - The company paid off **$100.0 million** in Federal Home Loan Bank borrowings during the quarter[5](index=5&type=chunk) - Tangible book value per share grew by **$0.99**, or **2.1%**, from the prior quarter to **$48.80**[3](index=3&type=chunk)[7](index=7&type=chunk) [Income Statement Analysis](index=3&type=section&id=Income%20Statement%20Analysis) Q2 2025 income statement shows increased net interest income to **$147.5 million** and noninterest income to **$34.3 million**, despite a rise in noninterest expenses to **$108.8 million** [Net Interest Income](index=3&type=section&id=Net%20Interest%20Income) Net interest income rose to **$147.5 million** in Q2 2025, while the net interest margin slightly decreased by **5 basis points** to **3.37%**, with the core margin remaining stable Net Interest Income and Margin | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Interest Income (Millions) | $147.5 | $145.5 | | Net Interest Margin (%) | 3.37 | 3.42 | | Core Net Interest Margin (%) | 3.37 | 3.37 | - Total loan yields increased to **5.50%** from **5.49%** in Q1[8](index=8&type=chunk) - The overall cost of funding increased by **6 basis points** to **1.73%**, while the cost of deposits decreased by **2 basis points** to **1.54%**[6](index=6&type=chunk)[8](index=8&type=chunk) [Noninterest Income](index=3&type=section&id=Noninterest%20Income) Noninterest income increased by **$1.8 million** to **$34.3 million** in Q2 2025, primarily due to a **$1.7 million** gain on life insurance proceeds, despite a drop in derivative income - Key drivers of the QoQ increase in noninterest income included: - **Gain on life insurance:** +**$1.7 million** - **Mortgage banking income:** +**$331,000** (**44.7%**) - **Interchange and ATM fees:** +**$375,000** (**8.1%**) - Offset by a decrease in Loan level derivative income: -**$976,000** (**93.7%**)[8](index=8&type=chunk) - Assets under administration grew by **$261.7 million** (**3.7%**) during the quarter to **$7.4 billion**, driven by market gains[8](index=8&type=chunk) [Noninterest Expense](index=4&type=section&id=Noninterest%20Expense) Noninterest expense rose by **$2.9 million** to **$108.8 million** in Q2 2025, driven by higher other expenses, merger costs, and salaries, partially offset by lower occupancy and FDIC costs - Significant changes in noninterest expense compared to Q1 2025: - **Salaries and employee benefits:** +**$925,000** (**1.5%**) - **Merger and acquisition expenses:** +**$1.0 million** (to **$2.2 million**) - **Other noninterest expense:** +**$2.1 million** (**9.0%**) - **Occupancy and equipment expenses:** -**$701,000** (**5.1%**) - **FDIC assessment:** -**$615,000** (**20.6%**)[10](index=10&type=chunk) [Asset Quality](index=4&type=section&id=Asset%20Quality) Asset quality improved significantly in Q2 2025, with nonperforming loans decreasing to **$56.2 million** and net charge-offs falling sharply to **$6.5 million**, leading to a lower provision for credit losses Asset Quality Metrics (Q2 2025 vs Q1 2025) | Metric | Q2 2025 (Millions) | Q1 2025 (Millions) | | :--- | :--- | :--- | | Nonperforming Loans | $56.2 | $89.5 | | Nonperforming Loans / Total Loans (%) | 0.39 | 0.62 | | Net Charge-offs | $6.5 | $40.9 | | Net Charge-offs to Avg. Loans (Ann.) (%) | 0.18 | 1.14 | | Provision for Credit Losses | $7.2 | $15.0 | | Allowance for Credit Losses / Total Loans (%) | 1.00 | 0.99 | - The decrease in nonperforming loans was primarily due to the resolution of two of the larger nonperforming balances from the prior quarter[10](index=10&type=chunk) [Forward-Looking Statements and Non-GAAP Measures](index=5&type=section&id=Forward-Looking%20Statements%20and%20Non-GAAP%20Measures) The report contains forward-looking statements subject to economic and acquisition risks, and utilizes non-GAAP measures like operating net income and core margin for clearer financial insight - The press release contains forward-looking statements subject to risks including adverse economic conditions, competition, interest rate changes, and risks related to the Enterprise acquisition[13](index=13&type=chunk)[14](index=14&type=chunk)[16](index=16&type=chunk) - The report uses non-GAAP measures such as operating net income, operating EPS, core margin, and tangible book value per share to provide insight into the core banking business, excluding items like merger and acquisition expenses[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) [Consolidated Financial Statements](index=9&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements detail Q2 2025 performance, showing total assets of **$20.05 billion**, net income of **$51.1 million**, and improved asset quality with reduced nonperforming assets [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) Consolidated balance sheets show total assets at **$20.05 billion** and total stockholders' equity at **$3.07 billion** as of June 30, 2025, reflecting quarter-over-quarter growth Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total Assets | $20,048,934 | $19,888,209 | $19,411,037 | | Net Loans | $14,389,055 | $14,347,877 | $14,250,083 | | Total Deposits | $15,893,740 | $15,676,017 | $15,409,587 | | Total Borrowings | $759,428 | $859,874 | $693,386 | | Total Stockholders' Equity | $3,074,856 | $3,033,392 | $2,919,249 | [Consolidated Statements of Income](index=10&type=section&id=Consolidated%20Statements%20of%20Income) Q2 2025 net income was **$51.1 million** from **$147.5 million** net interest income and **$34.3 million** noninterest income, while six-month net income was **$95.5 million** Consolidated Income Statement (Three Months Ended, in thousands) | Account | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income | $147,496 | $145,505 | $137,926 | | Provision for Credit Losses | $7,200 | $15,000 | $4,250 | | Total Noninterest Income | $34,308 | $32,539 | $32,330 | | Total Noninterest Expenses | $108,798 | $105,878 | $99,614 | | Net Income | $51,101 | $44,424 | $51,330 | Consolidated Income Statement (Six Months Ended, in thousands) | Account | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Net Interest Income | $293,001 | $275,365 | | Provision for Credit Losses | $22,200 | $9,250 | | Net Income | $95,525 | $99,100 | [Asset Quality and Capital Ratios](index=14&type=section&id=Asset%20Quality%20and%20Capital%20Ratios) Asset quality tables show nonperforming assets decreased to **$58.3 million**, with strong capital ratios including a **14.70%** Common Equity Tier 1 ratio and **10.92%** Tangible Common Equity to Tangible Assets Nonperforming Assets (in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total Nonperforming Loans | $56,217 | $89,493 | $57,451 | | Total Nonperforming Assets | $58,317 | $89,493 | $57,561 | | NPLs / Gross Loans (%) | 0.39 | 0.62 | 0.40 | Key Capital Ratios (%) | Ratio | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Common Equity Tier 1 (CET1) | 14.70 (Est.) | 14.52 | 14.40 | | Tangible Common Equity / Tangible Assets | 10.92 | 10.78 | 10.42 | | Tangible Book Value Per Share | $48.80 | $47.81 | $45.19 | [Appendices: Non-GAAP Reconciliations](index=19&type=section&id=Appendices%3A%20Non-GAAP%20Reconciliations) Appendices provide detailed reconciliations of GAAP to non-GAAP financial measures, including tangible common equity, operating net income, and core net interest margin analysis [Appendix A: Non-GAAP Reconciliation of Balance Sheet Metrics](index=19&type=section&id=Appendix%20A%3A%20Non-GAAP%20Reconciliation%20of%20Balance%20Sheet%20Metrics) Appendix A reconciles GAAP to non-GAAP balance sheet metrics, showing Q2 2025 tangible common equity of **$2.08 billion** and tangible book value per share of **$48.80** Tangible Book Value Per Share Reconciliation (Q2 2025, in thousands) | Metric | Amount | | :--- | :--- | | Stockholders' equity (GAAP) | $3,074,856 | | Less: Goodwill and other intangibles | $994,814 | | **Tangible common equity (Non-GAAP)** | **$2,080,042** | | Common Shares Outstanding | 42,627,286 | | **Tangible book value per share (Non-GAAP)** | **$48.80** | [Appendix B: Non-GAAP Reconciliation of Earnings Metrics](index=20&type=section&id=Appendix%20B%3A%20Non-GAAP%20Reconciliation%20of%20Earnings%20Metrics) Appendix B reconciles GAAP net income to operating net income, showing Q2 2025 operating net income of **$53.5 million** after adjusting for **$2.2 million** in merger expenses Operating Net Income Reconciliation (Q2 2025, in thousands) | Description | Amount | | :--- | :--- | | Net income (GAAP) | $51,101 | | Add: Merger and acquisition expenses | $2,239 | | Total tax impact | $113 | | **Operating net income (Non-GAAP)** | **$53,453** | [Appendix C: Net Interest Margin Analysis & Non-GAAP Reconciliation of Core Margin](index=22&type=section&id=Appendix%20C%3A%20Net%20Interest%20Margin%20Analysis%20%26%20Non-GAAP%20Reconciliation%20of%20Core%20Margin) Appendix C analyzes net interest margin, showing the Q2 2025 reported NIM and core margin both at **3.37%**, unchanged from the prior quarter's core margin Core Margin Reconciliation (Q2 2025 vs Q1 2025) | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Reported Net Interest Margin (%) | 3.37 | 3.42 | | Impact of Non-core Adjustments (%) | 0.00 | -0.05 | | **Core Margin (Non-GAAP) (%)** | **3.37** | **3.37** |

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited consolidated financial statements for Independent Bank Corp. as of and for the periods ended March 31, 2025, and 2024, including detailed notes on presentation and policies [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $19.89 billion, an increase from $19.37 billion at December 31, 2024, driven primarily by a $370.0 million increase in total deposits to $15.68 billion, while net loans remained stable at $14.35 billion and total stockholders' equity increased to $3.03 billion Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Total Assets | $19,888,209 | $19,373,565 | | Net Loans | $14,347,877 | $14,338,394 | | Total Securities | $2,719,792 | $2,711,349 | | Goodwill | $985,072 | $985,072 | | **Liabilities & Equity** | | | | Total Deposits | $15,676,017 | $15,305,978 | | Total Borrowings | $859,874 | $701,374 | | Total Liabilities | $16,854,817 | $16,380,445 | | Total Stockholders' Equity | $3,033,392 | $2,993,120 | [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) For the three months ended March 31, 2025, net income was $44.4 million, or $1.04 per diluted share, a decrease from $47.8 million, or $1.12 per diluted share, in the prior-year period, primarily due to a higher provision for credit losses and increased noninterest expenses Consolidated Income Statement Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest Income | $145,505 | $137,439 | | Provision for Credit Losses | $15,000 | $5,000 | | Noninterest Income | $32,539 | $29,943 | | Noninterest Expenses | $105,878 | $99,887 | | **Net Income** | **$44,424** | **$47,770** | | Diluted Earnings Per Share | $1.04 | $1.12 | | Cash Dividends Declared per Share | $0.59 | $0.57 | [Consolidated Statements of Comprehensive Income](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for Q1 2025 significantly increased to $64.2 million from $43.3 million in Q1 2024, driven by a positive $19.8 million swing in other comprehensive income, primarily from a $16.4 million net change in the fair value of available-for-sale securities Comprehensive Income Summary (in thousands) | Component | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $44,424 | $47,770 | | Other Comprehensive Income (Loss) | $19,805 | $(4,511) | | **Total Comprehensive Income** | **$64,229** | **$43,259** | [Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity increased from $2.99 billion at year-end 2024 to $3.03 billion at March 31, 2025, primarily due to net income and other comprehensive income, partially offset by common dividends - Total stockholders' equity grew to **$3.03 billion** at March 31, 2025, up from **$2.99 billion** at December 31, 2024[22](index=22&type=chunk) - Key changes in Q1 2025 included **$44.4 million** in net income, **$19.8 million** in other comprehensive income, and **$25.1 million** in common dividends declared (**$0.59 per share**)[22](index=22&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2025, net cash provided by financing activities was $503.5 million, primarily from a $296.5 million subordinated debenture issuance and increased deposits, resulting in a net increase in cash and cash equivalents of $497.0 million Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $13,342 | $51,145 | | Net Cash from Investing Activities | $(19,913) | $15,915 | | Net Cash from Financing Activities | $503,525 | $(70,074) | | **Net Increase (Decrease) in Cash** | **$496,954** | **$(3,014)** | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed disclosures supporting the consolidated financial statements, covering the basis of presentation, recent accounting standards, and in-depth information on various financial statement line items [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and results of operations for Q1 2025, highlighting a decrease in net income due to a higher loan loss provision, expansion of net interest margin, strong deposit growth, and the pending acquisition of Enterprise Bancorp - The company announced the signing of a definitive merger agreement to acquire Enterprise Bancorp, Inc., with the transaction expected to close in Q3 2025[177](index=177&type=chunk) - Q1 2025 net income was **$44.4 million** (**$1.04/share**), down from **$47.8 million** (**$1.12/share**) in Q1 2024, mainly due to a **$15.0 million** loan loss provision[178](index=178&type=chunk) - Positive performance drivers in Q1 2025 included net interest margin expansion to **3.42%**, strong fee income, robust deposit growth of **$370.0 million**, and a **$300 million** subordinated debt issuance[178](index=178&type=chunk) [Non-GAAP Measures](index=57&type=section&id=Non-GAAP%20Measures) Management uses non-GAAP measures such as operating net income, tangible book value per share, and operating efficiency ratio to evaluate core banking performance by excluding items like merger expenses, with Q1 2025 operating net income at $45.3 million ($1.06/share) and tangible book value per share at $47.81 Reconciliation of Net Income to Operating Net Income (Non-GAAP) for Q1 2025 (in thousands, except per share) | Description | Net Income | Diluted EPS | | :--- | :--- | :--- | | Net income available to common shareholders (GAAP) | $44,424 | $1.04 | | Add: Merger and acquisition expenses | $1,155 | $0.03 | | Less: Net tax benefit of noncore items | $(325) | $(0.01) | | **Operating net income (Non-GAAP)** | **$45,254** | **$1.06** | Tangible Book Value Per Share (Non-GAAP) | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Book value per share (GAAP) | $71.19 | $67.94 | | **Tangible book value per share (Non-GAAP)** | **$47.81** | **$44.34** | [Financial Position](index=60&type=section&id=Financial%20Position) As of March 31, 2025, the company's financial position remained strong with total assets growing to $19.9 billion, a stable securities portfolio at $2.7 billion, a consistent total loan portfolio at $14.5 billion, and increased deposits of $370.0 million to $15.7 billion, alongside a rise in borrowings to $859.9 million due to a $300 million subordinated debt issuance - Total securities remained stable at **$2.7 billion**, representing **13.7%** of total assets at March 31, 2025[210](index=210&type=chunk) - The total loan portfolio was **$14.5 billion**, with commercial and industrial loans growing by **$62.8 million** (**8.4% annualized**) and small business loans growing by **$7.4 million** (**10.6% annualized**)[218](index=218&type=chunk) - Total deposits increased by **$370.0 million** (**2.4%**) to **$15.7 billion**, with noninterest-bearing deposits comprising **28.1%** of the total[261](index=261&type=chunk) - Borrowings increased by **$158.5 million** to **$859.9 million**, driven by a new **$300.0 million** subordinated debt issuance[264](index=264&type=chunk) [Asset Quality](index=65&type=section&id=Asset%20Quality) Asset quality metrics showed some stress in Q1 2025, with nonperforming assets decreasing to $89.5 million (0.45% of total assets) from $101.5 million at year-end 2024, but net charge-offs significantly increased to $40.9 million, primarily from three commercial loans, leading to a decrease in the allowance for credit losses to $144.1 million, or 0.99% of total loans Nonperforming Assets (in thousands) | Metric | March 31, 2025 | Dec 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Total nonperforming loans | $89,493 | $101,529 | $56,941 | | Total nonperforming assets | $89,493 | $101,529 | $57,051 | | NPA as % of total assets | 0.45% | 0.52% | 0.30% | - Net charge-offs for Q1 2025 were **$40.9 million**, a sharp increase from **$274,000** in Q1 2024, mainly due to three previously classified commercial loans[249](index=249&type=chunk) - The allowance for credit losses was **$144.1 million**, or **0.99%** of total loans, at March 31, 2025, down from **1.17%** at December 31, 2024, primarily due to the charge-offs[49](index=49&type=chunk)[292](index=292&type=chunk) [Results of Operations](index=73&type=section&id=Results%20of%20Operations) For Q1 2025, net interest income (FTE) increased 5.8% YoY to $146.6 million, with the net interest margin expanding 19 basis points to 3.42%, while a $15.0 million provision for credit losses was recorded, noninterest income grew 8.7% to $32.5 million, and noninterest expense rose 6.0% to $105.9 million, including $1.2 million in merger costs Key Operating Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest Income (FTE) | $146.6M | $138.6M | | Net Interest Margin | 3.42% | 3.23% | | Provision for Credit Losses | $15.0M | $5.0M | | Noninterest Income | $32.5M | $29.9M | | Noninterest Expense | $105.9M | $99.9M | - The increase in net interest income was primarily due to higher yields on interest-earning assets and decreased funding costs[281](index=281&type=chunk) - Noninterest expense was driven higher by salaries and benefits, software costs, and **$1.2 million** in merger and acquisition expenses related to the pending Enterprise acquisition[298](index=298&type=chunk) [Capital Resources](index=71&type=section&id=Capital%20Resources) The company maintained a strong capital position, with all regulatory capital ratios exceeding 'well-capitalized' minimums, as the Total risk-based capital ratio increased to 17.91% at March 31, 2025, bolstered by the subordinated debt issuance, and the Board declared a quarterly cash dividend of $0.59 per share Regulatory Capital Ratios (Company) | Ratio | March 31, 2025 | Dec 31, 2024 | Requirement (Well-Capitalized) | | :--- | :--- | :--- | :--- | | Common Equity Tier 1 | 14.52% | 14.65% | 6.5% (Bank) | | Tier 1 Risk-Based | 14.52% | 14.65% | 8.0% (Bank) | | Total Risk-Based | 17.91% | 16.04% | 10.0% (Bank) | | Tier 1 Leverage | 11.43% | 11.32% | 5.0% (Bank) | - The Board of Directors declared a cash dividend of **$0.59 per share** for Q1 2025, paid in April 2025[265](index=265&type=chunk) [Risk Management](index=80&type=section&id=Risk%20Management) The company manages risk through a 'three lines of defense' framework overseen by the Board's Risk Committee, identifying key risks including credit, liquidity, market/interest rate, operational, and strategic risks, maintaining a neutral interest rate risk position, and possessing approximately $6.4 billion in total available liquidity capacity as of March 31, 2025 - The company identifies nine major risk categories: strategic, culture, credit, liquidity, market/interest rate, operational, reputation, regulatory/compliance, and technology/cyber risk[304](index=304&type=chunk) Liquidity Sources (in thousands) | Source | Outstanding (Mar 31, 2025) | Additional Capacity (Mar 31, 2025) | | :--- | :--- | :--- | | Federal Home Loan Bank | $500,506 | $2,159,925 | | Federal Reserve Bank | $0 | $3,670,070 | | Unpledged Securities | $0 | $528,723 | | Line of Credit | $0 | $50,000 | | **Total Assessed Capacity** | | **~$6.4B** | Net Interest Income Sensitivity (Year 1) | Rate Shock (bps) | % Change (Mar 31, 2025) | | :--- | :--- | | -200 | (4.6)% | | -100 | (1.7)% | | +100 | 1.5% | | +200 | 2.8% | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=85&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section incorporates by reference the information provided in the 'Risk Management' section of Management's Discussion and Analysis (Item 2), detailing the company's exposure to market risk, particularly interest rate risk, and its management strategies - Information regarding market risk is detailed in the 'Risk Management' section of the MD&A[335](index=335&type=chunk) [Item 4. Controls and Procedures](index=85&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the first quarter of 2025 - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of the end of the reporting period[336](index=336&type=chunk) - No material changes in internal control over financial reporting occurred during the first quarter of 2025[337](index=337&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=85&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in pending lawsuits arising in the ordinary course of business, which management believes will not have a material adverse effect on its financial position or results of operations - The company is involved in ordinary course of business lawsuits which are not expected to have a material adverse effect on its financial condition[338](index=338&type=chunk) [Item 1A. Risk Factors](index=85&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes have occurred regarding the Risk Factors disclosed in the 2024 Form 10-K[339](index=339&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=85&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of 2025, the company repurchased 19,753 shares of its common stock at an average price of $68.39 per share, which were surrendered by employees to satisfy tax withholding obligations related to equity compensation grants and were not part of a publicly announced repurchase plan Issuer Purchases of Equity Securities for Q1 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Jan 2025 | 0 | $0.00 | | Feb 2025 | 16,989 | $69.09 | | Mar 2025 | 2,764 | $64.07 | | **Total** | **19,753** | **$68.39** | - The repurchased shares were surrendered in connection with vesting equity compensation to satisfy tax withholding obligations[340](index=340&type=chunk) [Item 6. Exhibits](index=86&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including indentures related to the March 2025 subordinated notes issuance, forms of stock award agreements, and Sarbanes-Oxley Act certifications - Exhibits filed include indentures for the **7.25%** Fixed-to-Floating Rate Subordinated Notes due **2035**, various stock award agreements, and required CEO/CFO certifications[344](index=344&type=chunk)

Group 1 - The article discusses the Q1 earnings report of Independent Bank Corp. (NASDAQ: INDB), which is the holding company of Rockland [1] - The coverage highlights the performance of regional banks during the current market selloff, indicating that some firms are thriving despite the downturn [1] - The commentary suggests that there are opportunities for investment and hedging strategies during market corrections, emphasizing a blended trading and income approach [1]

Q1 2025 Earnings Presentation April 17, 2025 Exhibit 99.2 Company Overview Strong, Resilient Franchise; Well Positioned for Growth Safe & Sound Customer Centric Attractive Market High Performing 2 • Strong balance sheet • Prudent interest rate and liquidity risk management • Significant capital buffer • Diversified, low-cost deposit base • Experienced commercial lender with conservative credit culture • Proven operator and acquiror • Full suite of retail banking, commercial banking, and wealth product offer ...