Independent Bank (US:INDB)2026-01-22 21:18Financial Performance - Fourth quarter net income for 2025 was $75.3 million, or $1.52 per diluted share, compared to $34.3 million, or $0.69 per diluted share in the third quarter[3]. - Operating net income for the fourth quarter was $84.4 million, or $1.70 per diluted share, up from $77.4 million, or $1.55 per diluted share in the prior quarter[3]. - Net income for Q4 2025 was $75,335, reflecting a 119.88% increase from Q4 2024[29]. - Basic earnings per share for Q4 2025 were $1.52, up 120.29% from $0.69 in Q4 2024[30]. - Operating net income (Non-GAAP) for Q4 2025 was $84,357, a 64.12% increase from Q4 2024[30]. - Total revenue for the year ended December 31, 2025, was $857,520,000, representing a 24.4% increase from $689,743,000 in 2024[50]. Income and Expenses - Net interest income increased by $9.2 million, or 4.5%, to $212.5 million in the fourth quarter compared to $203.3 million in the prior quarter[9]. - Noninterest income for the fourth quarter was $41.4 million, an increase of $1.0 million, or 2.6%, from the prior quarter[9]. - Noninterest expense decreased by $6.5 million, or 4.0%, to $154.4 million in the fourth quarter, driven by a reduction in merger and acquisition expenses[10]. - Total noninterest expenses decreased by 4.02% to $154,370 in Q4 2025 compared to Q3 2025[29]. - The company incurred merger and acquisition expenses of $12,348,000 in Q4 2025, down from $23,893,000 in Q3 2025[50]. Asset Quality - Nonperforming loans decreased to $83.6 million, representing 0.45% of total loans, down from 0.47% in the prior quarter[13]. - The fourth quarter provision for credit losses decreased to $4.8 million, compared to $38.5 million in the prior quarter[13]. - Nonperforming loans totaled $83,557 thousand, down from $86,597 thousand, indicating improved asset quality[35]. - Total nonperforming assets decreased to $85,657 thousand from $88,697 thousand, showing a positive trend in asset management[35]. Capital and Ratios - Return on average assets and return on average common equity for the fourth quarter were 1.20% and 8.38%, respectively, compared to 0.55% and 3.82% in the prior quarter[5]. - The common equity tier 1 capital ratio stood at 12.85%, slightly up from 12.84% in the previous quarter[37]. - The efficiency ratio (GAAP) increased to 61.79%, compared to 58.92% in the prior quarter, indicating higher operational costs[34]. - The efficiency ratio (GAAP) improved to 60.79% in Q4 2025 from 65.99% in Q3 2025, indicating better cost management[51]. Loans and Deposits - Total loans increased by $51.3 million, or 0.3%, to $18.5 billion at December 31, 2025, from the third quarter[7]. - Total deposits decreased by 0.83% from September 30, 2025, to $20,126,790,000, but increased by 31.50% compared to December 31, 2024[27]. - Total loans reached $18,503,777 thousand in 2025, up from $14,508,378 thousand in 2024, representing a year-over-year growth of 27.4%[47]. - Total deposits increased to $20,126,790 thousand in 2025, compared to $15,305,978 thousand in 2024, marking a growth of 31.0%[47]. Interest Income and Margin - Total interest income for Q4 2025 reached $297,535, a 37.54% increase compared to Q4 2024[29]. - Net interest income after provision for credit losses increased to $207,736, a 51.45% rise compared to Q4 2024[29]. - The net interest margin (FTE) improved to 3.77% in Q4 2025, up from 3.33% in Q4 2024[31]. - The interest rate spread improved to 3.07% for the quarter ended December 31, 2025, compared to 2.87% in the previous quarter[40]. - The average yield on interest-earning assets was 5.27% for the quarter ended December 31, 2025, compared to 5.24% in the previous quarter[40]. Growth and Trends - The Company reported a 3.78% increase in retained earnings from September 30, 2025, to $1,269,113,000, and an 8.22% increase year-over-year[28]. - The tangible common equity ratio is calculated by dividing tangible common equity by tangible assets, providing insight into capital adequacy compared to industry peers[23]. - The total assets of the company reached $24,912,896 thousand in 2025, up from $19,373,565 thousand in 2024, reflecting a growth of 28.7%[48]. - Tangible common equity increased to $2,341,542 thousand in 2025 from $1,995,764 thousand in 2024, a growth of 17.3%[48].