Independent Bank Corp. (Nasdaq Global Select Market: INDB), parent of Rockland Trust Company, today announced 2025 second quarter net income of $51.1 million, or $1.20 per diluted share, as compared to 2025 first quarter net income of $44.4 million, or $1.04 per diluted share. The increase in net income was primarily driven by higher revenues and a lower loan loss provision. These financial results include pre-tax merger-related costs of $2.2 million and $1.2 million for the second and first quarter of 2025, respectively, associated with the Company's recently completed acquisition of Enterprise Bancorp, Inc. ("Enterprise") and its subsidiary, Enterprise Bank. Excluding merger-related costs and the related tax effects, 2025 second quarter operating net income was $53.5 million, or $1.25 per diluted share, compared to $45.3 million, or $1.06 per diluted share for the first quarter of 2025⁽¹⁾.

In consideration of the Company's current strong capital position, the Company is announcing a new stock repurchase plan, which authorizes repurchases by the Company of up to $150 million in common stock and is scheduled to expire on July 16, 2026.

CEO STATEMENT

"We are pleased with our second quarter results and the momentum of our franchise heading into the third quarter," said Jeffrey Tengel, the Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company. "We closed the Enterprise Bancorp acquisition and welcomed many new colleagues to Rockland Trust on the first day of the third quarter, and are focused on completing the core operating conversion in October 2025."

FINANCIAL HIGHLIGHTS

The Company generated a return on average assets and a return on average common equity of 1.04% and 6.68%, respectively, for the second quarter of 2025, as compared to 0.93% and 5.94%, respectively, for the prior quarter. On an operating basis, the Company generated a return on average assets and a return on average common equity of 1.09% and 6.99%, respectively, for the second quarter of 2025, as compared to 0.94% and 6.05%, respectively, for the prior quarter⁽¹⁾.
The Company's net interest margin of 3.37% decreased 5 basis points compared to the prior quarter, while the core margin was unchanged from prior quarter at 3.37%⁽¹⁾.
Deposit balances of $15.9 billion at June 30, 2025 increased $217.7 million, or 1.4% (5.6% annualized), from the first quarter of 2025.
Loan balances of $14.5 billion at June 30, 2025 increased $41.9 million, or 0.3% (1.2% annualized), from the first quarter of 2025.
Tangible book value of $48.80 per share at June 30, 2025 grew by $0.99 from the prior quarter⁽¹⁾.

BALANCE SHEET

Total assets of $20.0 billion at June 30, 2025 increased $160.7 million, or 0.8% (3.2% annualized), compared to the prior quarter, driven primarily by increased cash balances from deposit inflows.

Total loans of $14.5 billion at June 30, 2025 increased $41.9 million, or 0.3% (1.2% annualized):

On the commercial side, solid growth within the commercial and industrial portfolio of $105.0 million, or 3.4% (13.5% annualized), was offset by a decreases in the commercial real estate category while construction remained relatively flat.
On the consumer side, the total loan portfolio grew by $48.8 million, or 1.3% (5.4% annualized), from the prior quarter, reflecting strong closing activity and increased home equity line utilization.

Total deposits increased by $217.7 million, or 1.4% (5.6% annualized), to $15.9 billion at June 30, 2025, as compared to the prior quarter, while average deposit balances increased by $116.5 million, or 0.8%, for the second quarter of 2025 to $15.6 billion as compared to the prior quarter:

Robust growth was driven by increases in the municipal and business categories, partially offset by a modest decrease in interest bearing consumer balances.
Overall core deposits stayed consistent at 82.8% of total deposits at June 30, 2025, as compared to 82.7% at March 31, 2025.
Total noninterest bearing demand deposits increased to 28.5% of total deposits at June 30, 2025, compared to 28.1% at March 31, 2025.
The total cost of deposits for the second quarter of 1.54% decreased 2 basis points compared to the prior quarter.

Total period end borrowings declined by $100.4 million, or 11.7%, during the second quarter of 2025:

The Company paid off $100.0 million in Federal Home Loan Bank borrowings during the quarter.

The Company's securities portfolio remained at $2.7 billion for the second quarter of 2025:

New purchases of $50.8 million and unrealized gains of $12.7 million in the available for sale portfolio were offset by maturities, calls, and paydowns in the combined available for sale and held to maturity portfolios during the quarter.
Total securities represented 13.4% and 13.7% of total assets at June 30, 2025 and March 31, 2025, respectively.

Stockholders' equity at June 30, 2025 increased $41.5 million, or 1.4%, compared to March 31, 2025, driven by strong earnings retention and unrealized gains on the available for sale investment securities portfolio included in other comprehensive income:

The Company's ratio of common equity to assets of 15.34% at June 30, 2025 represented an increase of 9 basis points from March 31, 2025.
The Company's ratio of tangible common equity to tangible assets of 10.92% at June 30, 2025 represented an increase of 14 basis points from the prior quarter and an increase of 50 basis points from the year ago period⁽¹⁾.
The Company's book value per share increased by $0.94, or 1.3%, to $72.13 at June 30, 2025 as compared to the prior quarter.
The Company's tangible book value per share at June 30, 2025 grew by $0.99, or 2.1%, from the prior quarter to $48.80, and grew by 8.0% from the year ago period⁽¹⁾.

NET INTEREST INCOME

Net interest income for the second quarter of 2025 increased to $147.5 million, as compared to $145.5 million for the prior quarter.

The net interest margin of 3.37% decreased 5 basis points when compared to the prior quarter, while the core margin of 3.37% remained consistent with the prior quarter⁽¹⁾. The second quarter margin was positively impacted by asset repricing benefit, time deposit repricing, and a favorable mix in overall funding, offset by a full quarter of expense related to the March 2025 subordinated debt raise.
Total loan yields increased to 5.50% from 5.49%, with the prior quarter yields reflecting a 5 basis point benefit from non-core adjustments. Securities yields increased 7 basis points to 2.32% for the current quarter as compared to the prior quarter.
The Company's overall cost of funding increased by 6 basis points to 1.73% for the second quarter of 2025, reflecting increased borrowing expense associated with the first quarter subordinated debt raise, offset by a 2 basis point reduction in the cost of deposits.

NONINTEREST INCOME

Noninterest income of $34.3 million for the second quarter of 2025 represented an increase of $1.8 million, or 5.4%, as compared to the prior quarter. Significant changes in noninterest income for the second quarter of 2025 compared to the prior quarter included the following:

Interchange and ATM fees increased by $375,000, or 8.1%, driven by increased transaction volume during the second quarter of 2025.
Overall investment and advisory income increased by $160,000, or 1.4%, driven by seasonal tax preparation fees, offset by slightly lower asset-based revenue as average assets under administration remained relatively consistent. However, recent market gains drove an increase in total assets under administration of $261.7 million, or 3.7%, during the quarter to $7.4 billion at June 30, 2025.
Mortgage banking income grew $331,000, or 44.7%, due to higher origination volume.
The Company received proceeds on life insurance policies resulting in a gain of $1.7 million for the second quarter of 2025. No such gains were recognized during the first quarter of 2025.
Loan level derivative income decreased by $976,000, or 93.7%, reflecting volatility in customer demand.

NONINTEREST EXPENSE

Noninterest expense of $108.8 million for the second quarter of 2025 represented an increase of $2.9 million, or 2.8%, as compared to the prior quarter. Significant changes in noninterest expense for the second quarter of 2025 compared to the prior quarter included the following:

Salaries and employee benefits increased by $925,000, or 1.5%, driven by annual merit increases in general salaries, medical insurance, equity compensation, and commissions, partially offset by decreased payroll taxes.
Occupancy and equipment expenses decreased by $701,000, or 5.1%, driven by decreased snow removal and utilities costs.
FDIC assessment decreased $615,000, or 20.6%, driven by improved metrics resulting in a reduced assessment rate as well as timing differences.
The Company incurred merger and acquisition expenses of $2.2 million in the second quarter of 2025 and $1.2 million in the first quarter of 2025, all of which were related to the Company's acquisition of Enterprise.
Other noninterest expense increased by $2.1 million, or 9.0%, driven primarily by director annual equity compensation of $832,000 granted during the quarter, and increases in check and fraud losses of $645,000, professional fees of $512,000, and advertising costs of $352,000.

The Company's tax rate of 22.35% for the second quarter of 2025 remained consistent with the prior quarter.

ASSET QUALITY

During the second quarter, the Company's key asset quality activity and metrics were as follows:

Nonperforming loans decreased to $56.2 million at June 30, 2025, as compared to $89.5 million at March 31, 2025, representing 0.39% and 0.62% of total loans, respectively, driven primarily by the resolution of two of its larger nonperforming balances from the prior quarter.
Delinquencies as a percentage of total loans decreased 27 basis points from the prior quarter to 0.20% at June 30, 2025, primarily driven by the modification of a large non-performing loan executed during the second quarter.
Net charge-offs decreased to $6.5 million, as compared to $40.9 million for the prior quarter, representing 0.18% and 1.14%, respectively, of average loans annualized. The 2025 first quarter charge-offs were primarily attributable to three classified commercial loans.
The second quarter provision for credit losses decreased to $7.2 million, as compared to $15.0 million for the prior quarter, driven by lower charge-off activity.
The allowance for credit losses on total loans increased slightly to $144.8 million at June 30, 2025 compared to $144.1 million at March 31, 2025, and represented 1.00% and 0.99% of total loans at June 30, 2025 and March 31, 2025, respectively.

(1)

Represents a non-GAAP measure. See Appendices A through C for reconciliation of the corresponding GAAP measures.

CONFERENCE CALL INFORMATION

Jeffrey Tengel, Chief Executive Officer, and Mark Ruggiero, Chief Financial Officer and Executive Vice President of Consumer Lending, will host a conference call to discuss second quarter earnings at 10:00 a.m. Eastern Time on Friday, July 18, 2025. Internet access to the call is available on the Company's website at https://INDB.RocklandTrust.com or via telephonic access by dial-in at 1-888-336-7153 reference: INDB. A replay of the call will be available by calling 1-877-344-7529, Replay Conference Number: 5907181 and will be available through July 25, 2025. Additionally, a webcast replay will be available on the Company's website until July 18, 2026.

ABOUT INDEPENDENT BANK CORP.

Independent Bank Corp. (Nasdaq Global Select Market: INDB) is the holding company for Rockland Trust Company, a full-service commercial bank headquartered in Massachusetts. With retail branches in Eastern Massachusetts, Worcester County, and Southern New Hampshire as well as commercial banking and investment management offices in Massachusetts, New Hampshire, and Rhode Island. Rockland Trust offers a wide range of banking, investment, and insurance services to individuals, families, and businesses. Rockland Trust also offers a full suite of mobile, online, and telephone banking services. Rockland Trust is an FDIC member and an Equal Housing Lender.

This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations and business of the Company. These statements may be identified by such forward-looking terminology as "expect," "achieve," "plan," "believe," "future," "positioned," "continued," "will," "would," "potential," or similar statements or variations of such terms. Actual results may differ from those contemplated by these forward-looking statements.

Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to:

adverse economic conditions in the regional and local economies within the New England region and the Company's market area;
events impacting the financial services industry, including high profile bank failures, and any resulting decreased confidence in banks among depositors, investors, and other counterparties, as well as competition for deposits and significant disruption, volatility and depressed valuations of equity and other securities of banks in the capital markets;
the effects to the Company of an increasingly competitive labor market, including the possibility that the Company will have to devote significant resources to attract and retain qualified personnel;
political and policy uncertainties, changes in U.S. and international trade policies, such as tariffs or other factors, and the potential impact of such factors on the Company and its customers, including the potential for decreases in deposits and loan demand, unanticipated loan delinquencies, loss of collateral and decreased service revenues;
the instability or volatility in financial markets and unfavorable domestic or global general economic, political or business conditions, whether caused by geopolitical concerns, including the Russia/Ukraine conflict, the conflicts in Israel, Iran and surrounding areas and the possible expansion of such conflicts;
unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on the Company's local economies or the Company's business caused by adverse weather conditions and natural disasters, changes in climate, public health crises or other external events and any actions taken by governmental authorities in response to any such events;
adverse changes or volatility in the local real estate market;
changes in interest rates and any resulting impact on interest earning assets and/or interest bearing liabilities, the level of voluntary prepayments on loans and the receipt of payments on mortgage-backed securities, decreased loan demand or increased difficulty in the ability of borrowers to repay variable rate loans;
risks related to the Company's acquisition of Enterprise and acquisitions generally, including disruption to current plans and operations; difficulties in customer and employee retention; fees, expenses and charges related to these transactions being significantly higher than anticipated; unforeseen integration issues or impairment of goodwill and/or other intangibles; and the Company's inability to achieve expected revenues, cost savings, synergies, and other benefits at levels or within the timeframes originally anticipated;
the effect of laws, regulations, new requirements or expectations, or additional regulatory oversight in the highly regulated financial services industry, and the resulting need to invest in technology to meet heightened regulatory expectations, increased costs of compliance or required adjustments to strategy;
changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System;
higher than expected tax expense, including as a result of failure to comply with general tax laws and changes in tax laws;
increased competition in the Company's market areas, including competition that could impact deposit gathering, retention of deposits and the cost of deposits, increased competition due to the demand for innovative products and service offerings, and competition from non-depository institutions which may be subject to fewer regulatory constraints and lower cost structures;
a deterioration in the conditions of the securities markets;
a deterioration of the credit rating for U.S. long-term sovereign debt or uncertainties surrounding the federal budget;
inability to adapt to changes in information technology, including changes to industry accepted delivery models driven by a migration to the internet as a means of service delivery, including any inability to effectively implement new technology-driven products, such as artificial intelligence;
electronic or other fraudulent activity within the financial services industry, especially in the commercial banking sector;
adverse changes in consumer spending and savings habits;
the effect of laws and regulations regarding the financial services industry, including the need to invest in technology to meet heightened regulatory expectations or the introduction of new requirements or expectations resulting in increased costs of compliance or required adjustments to strategy;
changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) generally applicable to the Company's business and the associated costs of such changes;
the Company's potential judgments, claims, damages, penalties, fines and reputational damage resulting from pending or future litigation and regulatory and government actions;
changes in accounting policies, practices and standards, as may be adopted by the regulatory agencies as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters;
operational risks related to the Company and its customers' reliance on information technology; cyber threats, attacks, intrusions, and fraud; and outages or other issues impacting the Company or its third party service providers which could lead to interruptions or disruptions of the Company's operating systems, including systems that are customer facing, and adversely impact the Company's business; and
any unexpected material adverse changes in the Company's operations or earnings.

The Company cautions readers not to place undue reliance on any forward-looking statements as the Company's business and its forward-looking statements involve substantial known and unknown risks and uncertainties described above and in the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q ("Risk Factors"). Except as required by law, the Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise. Any public statements or disclosures by the Company following this release which modify or impact any of the forward-looking statements contained in this release will be deemed to modify or supersede such statements in this release. In addition to the information set forth in this press release, you should carefully consider the Risk Factors.

This press release and the appendices attached to it contain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). This information may include operating net income and operating earnings per share ("EPS"), operating return on average assets, operating return on average common equity, operating return on average tangible common equity, core net interest margin ("core margin"), tangible book value per share and the tangible common equity ratio.

Operating net income, operating EPS, operating return on average assets and operating return on average common equity, exclude items that management believes are unrelated to the Company's core banking business such as merger and acquisition expenses, and other items, if applicable. Management uses operating net income and related ratios and operating EPS to measure the strength of the Company's core banking business and to identify trends that may to some extent be obscured by such items. Management reviews its core margin to determine any items that may impact the net interest margin that may be one-time in nature or not reflective of its core operating environment, such as significant purchase accounting adjustments or other adjustments such as nonaccrual interest reversals/recoveries and prepayment penalties. Management believes that adjusting for these items to arrive at a core margin provides additional insight into the operating environment and how management decisions impact the net interest margin.

Management also supplements its evaluation of financial performance with analysis of tangible book value per share (which is computed by dividing stockholders' equity less goodwill and identifiable intangible assets, or "tangible common equity," by common shares outstanding), the tangible common equity ratio (which is computed by dividing tangible common equity by "tangible assets," defined as total assets less goodwill and other intangibles), and return on average tangible common equity (which is computed by dividing net income by average tangible common equity). The Company has included information on tangible book value per share, the tangible common equity ratio and return on average tangible common equity because management believes that investors may find it useful to have access to the same analytical tools used by management. As a result of merger and acquisition activity, the Company has recognized goodwill and other intangible assets in conjunction with business combination accounting principles. Excluding the impact of goodwill and other intangibles in measuring asset and capital values for the ratios provided, along with other bank standard capital ratios, provides a framework to compare the capital adequacy of the Company to other companies in the financial services industry.

These non-GAAP measures should not be viewed as a substitute for operating results and other financial measures determined in accordance with GAAP. An item which management excludes when computing these non-GAAP measures can be of substantial importance to the Company's results for any particular quarter or year. The Company's non-GAAP performance measures, including operating net income, operating EPS, operating return on average assets, operating return on average common equity, core margin, tangible book value per share and the tangible common equity ratio, are not necessarily comparable to non-GAAP performance measures which may be presented by other companies.

Category: Earnings Releases

INDEPENDENT BANK CORP. FINANCIAL SUMMARY
CONSOLIDATED BALANCE SHEETS
(Unaudited, dollars in thousands)										% Change		% Change
	June 30 2025			March 31 2025			June 30 2024			Jun 2025 vs.		Jun 2025 vs.
	June 30 2025			March 31 2025			June 30 2024			Mar 2025		Jun 2024
Assets
Cash and due from banks	$	219,414		$	214,616		$	192,845		2.24	%	13.78	%
Interest-earning deposits with banks		681,820			502,228			121,036		35.76	%	463.32	%
Securities
Trading		4,801			4,816			4,384		(0.31	)%	9.51	%
Equities		21,258			21,250			21,028		0.04	%	1.09	%
Available for sale		1,286,318			1,283,767			1,220,656		0.20	%	5.38	%
Held to maturity		1,382,903			1,409,959			1,519,655		(1.92	)%	(9.00	)%
Total securities		2,695,280			2,719,792			2,765,723		(0.90	)%	(2.55	)%
Loans held for sale		16,792			8,524			17,850		97.00	%	(5.93	)%
Loans
Commercial and industrial		3,215,480			3,110,432			3,009,469		3.38	%	6.85	%
Commercial real estate		6,525,438			6,651,475			6,745,088		(1.89	)%	(3.26	)%
Commercial construction		798,808			796,162			786,743		0.33	%	1.53	%
Small business		300,543			289,148			269,270		3.94	%	11.61	%
Total commercial		10,840,269			10,847,217			10,810,570		(0.06	)%	0.27	%
Residential real estate		2,489,166			2,465,731			2,439,646		0.95	%	2.03	%
Home equity - first position		479,641			484,384			504,403		(0.98	)%	(4.91	)%
Home equity - subordinate positions		688,456			659,582			612,404		4.38	%	12.42	%
Total consumer real estate		3,657,263			3,609,697			3,556,453		1.32	%	2.83	%
Other consumer		36,296			35,055			33,919		3.54	%	7.01	%
Total loans		14,533,828			14,491,969			14,400,942		0.29	%	0.92	%
Less: allowance for credit losses		(144,773	)		(144,092	)		(150,859	)	0.47	%	(4.03	)%
Net loans		14,389,055			14,347,877			14,250,083		0.29	%	0.98	%
Federal Home Loan Bank stock		21,052			25,804			32,738		(18.42	)%	(35.70	)%
Bank premises and equipment, net		188,883			190,007			191,303		(0.59	)%	(1.27	)%
Goodwill		985,072			985,072			985,072		—	%	—	%
Other intangible assets		9,742			10,941			15,161		(10.96	)%	(35.74	)%
Cash surrender value of life insurance policies		305,077			306,077			300,111		(0.33	)%	1.65	%
Other assets		536,747			577,271			539,115		(7.02	)%	(0.44	)%
Total assets	$	20,048,934		$	19,888,209		$	19,411,037		0.81	%	3.29	%
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing demand deposits	$	4,525,907		$	4,409,878		$	4,418,891		2.63	%	2.42	%
Savings and interest checking		5,279,280			5,279,549			5,241,154		(0.01	)%	0.73	%
Money market		3,368,354			3,277,078			3,058,109		2.79	%	10.14	%
Time certificates of deposit		2,720,199			2,709,512			2,691,433		0.39	%	1.07	%
Total deposits		15,893,740			15,676,017			15,409,587		1.39	%	3.14	%
Borrowings
Federal Home Loan Bank borrowings		400,500			500,506			630,527		(19.98	)%	(36.48	)%
Junior subordinated debentures, net		62,861			62,861			62,859		—	%	—	%
Subordinated debentures, net		296,067			296,507			—		(0.15	)%	100.00	%
Total borrowings		759,428			859,874			693,386		(11.68	)%	9.52	%
Total deposits and borrowings		16,653,168			16,535,891			16,102,973		0.71	%	3.42	%
Other liabilities		320,910			318,926			388,815		0.62	%	(17.46	)%
Total liabilities		16,974,078			16,854,817			16,491,788		0.71	%	2.92	%
Stockholders' equity
Common stock		424			424			423		—	%	0.24	%
Additional paid in capital		1,914,556			1,911,162			1,904,869		0.18	%	0.51	%
Retained earnings		1,217,959			1,192,008			1,128,182		2.18	%	7.96	%
Accumulated other comprehensive loss, net of tax		(58,083	)		(70,202	)		(114,225	)	(17.26	)%	(49.15	)%
Total stockholders' equity		3,074,856			3,033,392			2,919,249		1.37	%	5.33	%
Total liabilities and stockholders' equity	$	20,048,934		$	19,888,209		$	19,411,037		0.81	%	3.29	%

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, dollars in thousands, except per share data)
	Three Months Ended
										% Change		% Change
	June 30 2025			March 31 2025			June 30 2024			Jun 2025 vs.		Jun 2025 vs.
	June 30 2025			March 31 2025			June 30 2024			Mar 2025		Jun 2024
Interest income
Interest on federal funds sold and short-term investments	$	4,393		$	1,438		$	397		205.49	%	1,006.55	%
Interest and dividends on securities		15,881			15,297			13,994		3.82	%	13.48	%
Interest and fees on loans		197,778			195,093			197,274		1.38	%	0.26	%
Interest on loans held for sale		140			92			199		52.17	%	(29.65	)%
Total interest income		218,192			211,920			211,864		2.96	%	2.99	%
Interest expense
Interest on deposits		59,843			59,436			61,469		0.68	%	(2.65	)%
Interest on borrowings		10,853			6,979			12,469		55.51	%	(12.96	)%
Total interest expense		70,696			66,415			73,938		6.45	%	(4.38	)%
Net interest income		147,496			145,505			137,926		1.37	%	6.94	%
Provision for credit losses		7,200			15,000			4,250		(52.00	)%	69.41	%
Net interest income after provision for credit losses		140,296			130,505			133,676		7.50	%	4.95	%
Noninterest income
Deposit account fees		7,141			7,053			6,332		1.25	%	12.78	%
Interchange and ATM fees		4,997			4,622			4,753		8.11	%	5.13	%
Investment management and advisory		11,380			11,220			10,987		1.43	%	3.58	%
Mortgage banking income		1,072			741			1,320		44.67	%	(18.79	)%
Increase in cash surrender value of life insurance policies		2,038			2,065			2,000		(1.31	)%	1.90	%
Gain on life insurance benefits		1,650			—			—		100.00	%	100.00	%
Loan level derivative income		66			1,042			473		(93.67	)%	(86.05	)%
Other noninterest income		5,964			5,796			6,465		2.90	%	(7.75	)%
Total noninterest income		34,308			32,539			32,330		5.44	%	6.12	%
Noninterest expenses
Salaries and employee benefits		62,856			61,931			57,162		1.49	%	9.96	%
Occupancy and equipment expenses		13,158			13,859			12,472		(5.06	)%	5.50	%
Data processing and facilities management		2,783			2,642			2,405		5.34	%	15.72	%
FDIC assessment		2,373			2,988			2,694		(20.58	)%	(11.92	)%
Merger and acquisition expense		2,239			1,155			—		93.85	%	100.00	%
Other noninterest expenses		25,389			23,303			24,881		8.95	%	2.04	%
Total noninterest expenses		108,798			105,878			99,614		2.76	%	9.22	%
Income before income taxes		65,806			57,166			66,392		15.11	%	(0.88	)%
Provision for income taxes		14,705			12,742			15,062		15.41	%	(2.37	)%
Net Income	$	51,101		$	44,424		$	51,330		15.03	%	(0.45	)%

Weighted average common shares (basic)		42,623,978			42,550,274			42,468,658
Common share equivalents		17,153			22,353			4,308
Weighted average common shares (diluted)		42,641,131			42,572,627			42,472,966

Basic earnings per share	$	1.20		$	1.04		$	1.21		15.38	%	(0.83	)%
Diluted earnings per share	$	1.20		$	1.04		$	1.21		15.38	%	(0.83	)%

Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):
Net income	$	51,101		$	44,424		$	51,330
Noninterest expense components
Add - merger and acquisition expenses		2,239			1,155			—
Noncore increases to income before taxes		2,239			1,155			—
Net tax benefit associated with noncore items (1)		(544	)		(325	)		—
Add - adjustment for tax effect of previously incurred merger and acquisition expenses		657			—			—
Total tax impact		113			(325	)		—
Noncore increases to net income		2,352			830			—
Operating net income (Non-GAAP)	$	53,453		$	45,254		$	51,330		18.12	%	4.14	%

Diluted earnings per share, on an operating basis (Non-GAAP)	$	1.25		$	1.06		$	1.21		17.92	%	3.31	%

(1) The net tax benefit associated with noncore items is determined by assessing whether each noncore item is included or excluded from net taxable income and applying the Company's combined marginal tax rate to only those items included in net taxable income.

Performance ratios
Net interest margin (FTE)		3.37	%		3.42	%		3.25	%
Return on average assets (calculated by dividing net income by average assets) (GAAP)		1.04	%		0.93	%		1.07	%
Return on average assets on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average assets)		1.09	%		0.94	%		1.07	%
Return on average common equity (calculated by dividing net income by average common equity) (GAAP)		6.68	%		5.94	%		7.10	%
Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average common equity)		6.99	%		6.05	%		7.10	%
Return on average tangible common equity (Non-GAAP) (calculated by dividing net income by average tangible common equity)		9.89	%		8.85	%		10.83	%
Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average tangible common equity)		10.35	%		9.01	%		10.83	%
Noninterest income as a % of total revenue (GAAP) (calculated by dividing total noninterest income by net interest income plus total noninterest income)		18.87	%		18.28	%		18.99	%
Noninterest income as a % of total revenue on an operating basis (Non-GAAP) (calculated by dividing total noninterest income on an operating basis by net interest income plus total noninterest income)		18.87	%		18.28	%		18.99	%
Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)		59.84	%		59.47	%		58.51	%
Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)		58.61	%		58.82	%		58.51	%

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, dollars in thousands, except per share data)
	Six Months Ended
							% Change
	June 30 2025			June 30 2024			Jun 2025 vs.
	June 30 2025			June 30 2024			Jun 2024

Interest income
Interest on federal funds sold and short-term investments	$	5,831		$	880		562.61	%
Interest and dividends on securities		31,178			28,226		10.46	%
Interest and fees on loans		392,871			390,500		0.61	%
Interest on loans held for sale		232			303		(23.43	)%
Total interest income		430,112			419,909		2.43	%
Interest expense
Interest on deposits		119,279			115,789		3.01	%
Interest on borrowings		17,832			28,755		(37.99	)%
Total interest expense		137,111			144,544		(5.14	)%
Net interest income		293,001			275,365		6.40	%
Provision for credit losses		22,200			9,250		140.00	%
Net interest income after provision for credit losses		270,801			266,115		1.76	%
Noninterest income
Deposit account fees		14,194			12,560		13.01	%
Interchange and ATM fees		9,619			9,205		4.50	%
Investment management and advisory		22,600			20,928		7.99	%
Mortgage banking income		1,813			2,116		(14.32	)%
Increase in cash surrender value of life insurance policies		4,103			3,928		4.46	%
Gain on life insurance benefits		1,650			263		527.38	%
Loan level derivative income		1,108			553		100.36	%
Other noninterest income		11,760			12,720		(7.55	)%
Total noninterest income		66,847			62,273		7.35	%
Noninterest expenses
Salaries and employee benefits		124,787			114,336		9.14	%
Occupancy and equipment expenses		27,017			25,939		4.16	%
Data processing and facilities management		5,425			4,888		10.99	%
FDIC assessment		5,361			5,676		(5.55	)%
Merger and acquisition expense		3,394			—		100.00	%
Other noninterest expenses		48,692			48,662		0.06	%
Total noninterest expenses		214,676			199,501		7.61	%
Income before income taxes		122,972			128,887		(4.59	)%
Provision for income taxes		27,447			29,787		(7.86	)%
Net Income	$	95,525		$	99,100		(3.61	)%

Weighted average common shares (basic)		42,587,330			42,511,186
Common share equivalents		19,753			8,592
Weighted average common shares (diluted)		42,607,083			42,519,778

Basic earnings per share	$	2.24		$	2.33		(3.86	)%
Diluted earnings per share	$	2.24		$	2.33		(3.86	)%

Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):
Net Income	$	95,525		$	99,100
Noninterest expense components
Add - merger and acquisition expenses		3,394			—
Noncore increases to income before taxes		3,394			—
Net tax benefit associated with noncore items (1)		(593	)		—
Add - adjustment for tax effect of previously incurred merger and acquisition expenses		381			—
Total tax impact		(212	)		—
Noncore increases to net income		3,182			—
Operating net income (Non-GAAP)	$	98,707		$	99,100		(0.40	)%

Diluted earnings per share, on an operating basis (Non-GAAP)	$	2.32		$	2.33		(0.43	)%

(1) The net tax benefit associated with noncore items is determined by assessing whether each noncore item is included or excluded from net taxable income and applying the Company's combined marginal tax rate to only those items included in net taxable income.

Performance ratios
Net interest margin (FTE)		3.40	%		3.24	%
Return on average assets (GAAP) (calculated by dividing net income by average assets)		0.98	%		1.03	%
Return on average assets on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average assets)		1.02	%		1.03	%
Return on average common equity (GAAP) (calculated by dividing net income by average common equity)		6.32	%		6.87	%
Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average common equity)		6.53	%		6.87	%
Return on average tangible common equity (Non-GAAP) (calculated by dividing net income by average tangible common equity)		9.38	%		10.49	%
Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average tangible common equity)		9.69	%		10.49	%
Noninterest income as a % of total revenue (GAAP) (calculated by dividing total noninterest income by net interest income plus total noninterest income)		18.58	%		18.44	%
Noninterest income as a % of total revenue on an operating basis (Non-GAAP) (calculated by dividing total noninterest income on an operating basis by net interest income plus total noninterest income)		18.58	%		18.44	%

Independent Bank Corp. Reports Second Quarter Net Income of $51.1 Million