Independent Bank (INDB) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter net income for 2024 was $50.0 million, or$ 1.18 per diluted share, up from $42.9 million, or$ 1.01 per diluted share in the third quarter[1]. - Full year 2024 net income totaled $192.1 million, or$ 4.52 per diluted share, compared to $239.5 million, or$ 5.42 per diluted share in the prior year[1]. - Net income reached $50,033 thousand, representing a 16.50% increase compared to the same quarter last year[31]. - Basic earnings per share increased to$ 1.18, a rise of 16.83% year-over-year[31]. - Net income (GAAP) for Q4 2024 was $50,033,000, a decrease of 8.1% from$ 54,803,000 in Q4 2023[57]. - Operating net income (Non-GAAP) for the year ended December 31, 2024, was $193,448,000, down from$ 239,502,000 in 2023, a decline of 19.2%[57]. Loan and Deposit Growth - Total loans increased by $147.6 million, or 1.0% (4.1% annualized), to$ 14.5 billion compared to the prior quarter, driven by growth in commercial and industrial loans[5]. - Net loans increased by 1.00% year-over-year, reaching $14,338,394,000 as of December 31, 2024[27]. - Total deposits decreased by 0.87% from September 30, 2024, totaling$ 15,305,978,000[27]. - Nonperforming loans decreased to $101.5 million, representing 0.70% of total loans, down from 0.73% in the prior quarter[14]. Interest Income and Margin - Net interest income rose to$ 144.7 million in the fourth quarter, compared to $141.7 million in the prior quarter, with a net interest margin of 3.33%[10]. - Total interest income for the quarter was$ 216,320 thousand, showing a decrease of 0.09% from the prior quarter but an increase of 4.42% year-over-year[30]. - Total interest income increased by 7.17% to $852,753,000 compared to$ 795,726,000 in 2023[33]. - The interest rate spread improved to 2.52%, compared to 2.44% in the previous quarter[44]. - The interest rate spread decreased to 2.46% in 2024 from 2.94% in 2023, indicating a tighter margin environment[49]. Credit Quality - The provision for credit losses decreased to $7.5 million from$ 19.5 million in the third quarter, reflecting improved asset quality[14]. - Provision for credit losses decreased significantly by 61.54% from the previous quarter to $7,500 thousand[30]. - Provision for credit losses rose by 55.91% to$ 36,250,000, up from $23,250,000 in 2023[33]. - Nonperforming loans totaled$ 101,529,000, an increase from $54,383,000 in 2023[37]. Equity and Capital - Stockholders' equity increased by$ 16.0 million, or 0.5%, to $3.4 billion, with a book value per share of$ 70.43[9]. - Total stockholders' equity rose to $2,993,120 thousand, a slight increase of 0.54% compared to the previous quarter[28]. - Common equity tier 1 capital ratio improved to 14.64% from 14.19% in the previous year[40]. - Tangible common equity was reported at$ 1,995,764 for 2024, compared to $1,891,989 in 2023, reflecting a tangible common equity to tangible assets ratio of 10.86%[54]. Operational Efficiency - The efficiency ratio (GAAP) was reported at 60.18%, indicating an increase from 57.31% in the previous quarter[32]. - The efficiency ratio (GAAP) for Q4 2024 was 60.18%, up from 56.87% in Q4 2023, indicating increased operational costs relative to revenue[58]. - Noninterest expense on an operating basis (Non-GAAP) increased to$ 104,520,000 in Q4 2024, compared to $100,747,000 in Q4 2023, reflecting a 3.0% rise[57]. Market and Regulatory Environment - The company is facing risks related to regulatory changes and increased competition in the financial services market[25]. - The company emphasizes the importance of non-GAAP measures for evaluating financial performance, which may not be comparable to other companies[25].