Independent Bank (US:INDB)2025-11-05 21:12Financial 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].