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Independent Bank Corp. Reports Second Quarter Net Income of $81.8 Million

Independent Bank Corp. (Nasdaq Global Select Market: INDB), parent of Rockland Trust Company, today announced 2026 second quarter net income of $81.8 million, or $1.70 per diluted share, as compared to 2026 first quarter net income of $79.9 million, or $1.63 per diluted share. Excluding merger-related costs associated with the Company’s third quarter 2025 acquisition of Enterprise Bancorp, Inc. (“Enterprise”) and its subsidiary, Enterprise Bank, and their related tax effects, operating net income was $82.1 million, or $1.68 per diluted share for the first quarter of 2026(1). No merger-related costs were incurred during the second quarter of 2026.

CEO STATEMENT

“Our second quarter results reflect strong execution on many of our strategic priorities. Our low cost, core deposit funding source improved, commercial and industrial loan balances increased nicely, our fee income businesses continued to grow, and we prudently returned excess capital to our shareholders.” said Jeffrey Tengel, the Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company. “Our commitment to the communities we serve continues to pave the way for long-term growth and success for all our constituents.”

FINANCIAL HIGHLIGHTS

The Company generated a return on average assets and a return on average common equity of 1.34% and 9.24%, respectively, for the second quarter of 2026, as compared to 1.31% and 9.02%, 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 1.35% and 9.27%, respectively, for the first quarter of 2026(1). There were no operating adjustments for the second quarter of 2026.
The Company repurchased approximately 964,000 shares for $75.0 million during the second quarter of 2026.
The Company’s net interest margin of 3.85% decreased 5 basis points compared to the prior quarter, while the adjusted margin increased 4 basis points to 3.76%(1).
Deposit balances of $20.4 billion at June 30, 2026 increased $294.6 million, or 1.5%, compared to the prior quarter.
Loan balances of $18.4 billion at June 30, 2026 decreased $31.2 million, or 0.2%, compared to the prior quarter.
Wealth management assets under administration increased to $9.5 billion at June 30, 2026, compared to $9.2 billion at March 31, 2026.
The Company’s second quarter results included $2.1 million in one-time costs associated with its upcoming core conversion.
Tangible book value per share of $48.34 at June 30, 2026 grew by $0.48 from the prior quarter(1).

BALANCE SHEET

Total assets of $25.0 billion at June 30, 2026 increased $190.3 million, or 0.8%, compared to the prior quarter, driven primarily by increased cash balances from strong late quarter deposit growth.

Total loans of $18.4 billion at June 30, 2026 decreased $31.2 million, or 0.2%, compared to the prior quarter:

The commercial and industrial portfolio grew $79.4 million, or 1.7% (6.8% annualized), inclusive of $36.8 million in runoff attributable to the Company’s strategic exit from the dealer finance business.
Commercial real estate and construction decreased $176.4 million, or 1.8%, due to elevated payoffs and amortization of balances.
The total consumer real estate portfolio increased $63.2 million, or 1.5% (6.1% annualized), fueled by solid demand in both the residential and home equity portfolios. Residential balances increased $28.1 million, or 1.0% (4.0% annualized) while home equity balances increased by $35.1 million, or 2.7% (10.8% annualized).

Total deposits increased by $294.6 million, or 1.5%, to $20.4 billion at June 30, 2026, as compared to the prior quarter, while average balances were consistent at $19.9 billion:

Growth in period end deposits was fueled primarily by inflows in municipal and business accounts.
Overall core deposits comprised 84.1% of total deposits at June 30, 2026, as compared to 83.8% at March 31, 2026.
Total noninterest bearing demand deposits were 28.0% of total deposits at both June 30, 2026 and March 31, 2026.
The total cost of deposits for the second quarter remained flat compared to the prior quarter at 1.36%.

Total period end borrowings decreased by $74.8 million, or 9.6%, during the second quarter of 2026, reflecting approximately $100 million in net paydowns on Federal Home Loan Bank borrowings, partially offset by $25.0 million advanced on a working capital line of credit.

The Company’s total securities portfolio of $3.3 billion decreased by $59.3 million, or 1.8% (7.0% annualized), from the prior quarter:

New purchases of $69.7 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. Unrealized losses of $11.1 million recorded in the available for sale portfolio also contributed to the second quarter decrease.
Total securities represented 13.3% and 13.6% of total assets at June 30, 2026 and March 31, 2026, respectively.

Stockholders’ equity at June 30, 2026 decreased $29.7 million, or 0.8%, compared to March 31, 2026, as strong earnings were offset by the impact of share repurchases, dividends, and unrealized losses on available for sale securities recognized in other comprehensive income during the quarter:

The Company repurchased approximately 964,000 shares for $75.0 million during the second quarter of 2026 at an average price of $77.79 per share. As of June 30, 2026, the Company had approximately $151 million of remaining repurchase authorization under its previously announced $200 million stock buyback plan adopted as of April 30, 2026.
The Company’s ratio of common equity to assets of 14.06% at June 30, 2026 represented a decrease of 23 basis points from March 31, 2026.
The Company’s ratio of tangible common equity to tangible assets of 9.69% at June 30, 2026 represented a decrease of 17 basis points from the prior quarter and a decrease of 123 basis points from the year ago period(1).
The Company’s book value per share increased by $0.84, or 1.2%, to $73.76 at June 30, 2026 as compared to the prior quarter.
The Company’s tangible book value per share at June 30, 2026 grew by $0.48, or 1.0%, from the prior quarter to $48.34, and decreased by 0.9% from the year ago period(1).

NET INTEREST INCOME

Net interest income of $210.9 million for the second quarter of 2026 decreased $1.5 million, or 0.7%, when compared to the prior quarter:

The net interest margin of 3.85% decreased 5 basis points compared to the prior quarter, as the benefit of asset repricing was offset by a 9 basis point decrease in purchase accounting accretion. Excluding purchase accounting accretion and other non-core items, the adjusted margin of 3.76%(1) increased 4 basis points.
Total loan yields decreased 8 basis points to 5.69% from 5.77%, driven primarily by the impact of lower purchase accounting accretion compared to the prior quarter, partially offset by loan repricing benefit. Excluding purchase accounting accretion and other non-core items, the adjusted loan yield(1) increased 3 basis points during the quarter. Securities yields increased 5 basis points to 3.13% compared to the prior quarter, reflecting the impact of higher yielding new purchases throughout the first half of 2026.
The Company’s overall cost of funding remained flat at 1.52% for the second quarter of 2026.

NONINTEREST INCOME

Noninterest income of $42.4 million for the second quarter of 2026 represented an increase of $2.1 million, or 5.3%, as compared to the prior quarter. Significant changes in noninterest income for the second quarter of 2026 compared to the prior quarter included the following:

Interchange and ATM fees increased by $668,000, or 13.3%, driven by seasonally higher transaction volumes.
Overall investment and advisory income increased $796,000, or 5.6%, driven by seasonal tax preparation fees and higher asset-based fee revenue compared to the prior quarter, partially offset by lower insurance commissions. Total assets under administration increased by $298.0 million, or 3.2%, to $9.5 billion as of June 30, 2026 compared to March 31, 2026.
Loan level derivative income rose by $407,000, or 44.7%.

NONINTEREST EXPENSE

Noninterest expense of $140.3 million for the second quarter of 2026 represented a decrease of $2.6 million, or 1.9%, as compared to the prior quarter. Significant changes in noninterest expense for the second quarter of 2026 compared to the prior quarter included the following:

The Company incurred no merger and acquisition expenses in the second quarter of 2026, compared to $3.0 million in the first quarter of 2026, all of which were related to the Company’s acquisition of Enterprise.
Salaries and employee benefits decreased by $1.6 million, or 2.0%, driven primarily by decreased incentive compensation and lower payroll taxes, partially offset by increases in base salaries and retirement contributions.
Occupancy and equipment expenses decreased by $1.1 million, or 6.6%, driven primarily by lower snow removal and utilities costs during the quarter, partially offset by increases in general maintenance and repair costs.
Other noninterest expense increased by $3.5 million, or 12.3%, driven primarily by a $1.0 million increase in one-time costs associated with the Company’s upcoming core conversion, along with increases in annual director equity compensation of $878,000, legal fees of $807,000, and recruitment costs of $326,000.

TAX RATE

The Company’s quarterly effective tax rate remained relatively consistent at 23.37% for the second quarter of 2026.

ASSET QUALITY

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

Nonperforming loans increased to $103.6 million at June 30, 2026, as compared to $96.6 million at March 31, 2026, representing 0.56% and 0.52% of total loans, respectively.
Delinquencies as a percentage of total loans increased 2 basis points from the prior quarter to 0.43% at June 30, 2026.
Net charge-offs decreased to $0.9 million, as compared to $4.8 million for the prior quarter, representing 0.02% and 0.11%, respectively, of average loans annualized.
The second quarter provision for credit losses increased to $6.3 million, as compared to $5.5 million for the prior quarter.
Total criticized and classified commercial loans of $545.6 million, or 3.9% of total commercial loans, decreased $29.9 million, or 5.2%, as compared to the prior quarter.
The allowance for credit losses on total loans increased to $195.9 million at June 30, 2026, compared to $190.6 million at March 31, 2026, and represented 1.06% and 1.03% of total loans at June 30, 2026 and March 31, 2026, 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 17, 2026.

Participants may join the webcast by registering prior to the call via this link: . A replay of the webcast will be made available on the Company’s website at by selecting Second Quarter 2026 Earnings Call. The webcast replay will be available until July 17, 2027.

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, including international conflicts and hostilities, such as the ongoing conflict involving Israel, the U.S. and Iran;
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, including limitations on rent growth, increases in operating expenses, reductions in property cash flows, reductions in collateral values, and decreased investor demand, which may be exacerbated by legislative or regulatory actions such as rent control or tenant protection laws;
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 activities, 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; 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 (“AI”);
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;
risks related to the development and use of AI by the Company, its third-party vendors, clients and counterparties; 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, adjusted net interest margin (“adjusted margin”) and the associated adjusted loan yield (which is calculated by dividing annualized interest income on loans, plus or minus non-core or other adjustments, by average loans), 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 adjusted margin and adjusted loan yield to determine any items that may impact these metrics that may be one-time in nature or not reflective of the 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 an adjusted margin and adjusted loan yield 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, adjusted 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

June 30

2026

March 31

2026

June 30

2025

Jun 2026 vs.

Mar 2026

Jun 2025

Assets

Cash and due from banks

251,971

223,291

219,414

12.84

14.84

Interest-earning deposits with banks

749,255

505,687

681,820

48.17

9.89

Securities

Trading

4,835

5,525

4,801

(12.49

0.71

Equities

21,602

21,518

21,258

0.39

1.62

Available for sale

2,075,972

2,088,365

1,286,318

(0.59

61.39

Held to maturity

1,210,310

1,256,566

1,382,903

(3.68

(12.48

Total securities

3,312,719

3,371,974

2,695,280

(1.76

22.91

Loans held for sale

21,982

16,758

16,792

31.17

30.91

Loans

Commercial and industrial

4,730,827

4,651,453

3,426,938

1.71

38.05

Commercial real estate

7,944,099

8,181,340

6,614,523

(2.90

20.10

Commercial construction

1,464,449

1,403,613

798,808

4.33

83.33

Total commercial

14,139,375

14,236,406

10,840,269

(0.68

30.43

Residential real estate

2,870,277

2,842,144

2,489,166

0.99

15.31

Home equity

1,342,797

1,307,746

1,168,097

2.68

14.96

Total consumer real estate

4,213,074

4,149,890

3,657,263

1.52

15.20

Other consumer

41,878

39,182

36,296

6.88

15.38

Total loans

18,394,327

18,425,478

14,533,828

(0.17

26.56

Less: allowance for credit losses

(195,899

)

(190,560

)

(144,773

)

2.80

35.31

Net loans

18,198,428

18,234,918

14,389,055

(0.20

26.47

Federal Home Loan Bank stock

13,631

17,752

21,052

(23.21

(35.25

Bank premises and equipment, net

217,877

217,695

188,883

0.08

15.35

Goodwill

1,090,610

985,072

—

10.71

Other intangible assets

119,896

126,687

9,742

(5.36

1,130.71

Cash surrender value of life insurance policies

381,230

380,423

305,077

0.21

24.96

Other assets

616,295

597,785

536,747

3.10

14.82

Total assets

24,973,894

24,783,580

20,048,934

0.77

24.56

Liabilities and Stockholders’ Equity

Deposits

Noninterest-bearing demand deposits

5,709,647

5,633,079

4,525,907

1.36

26.15

Savings and interest checking

6,503,521

6,310,870

5,279,280

3.05

23.19

Money market

4,929,495

4,898,267

3,368,354

0.64

46.35

Time certificates of deposit

3,249,455

3,255,294

2,720,199

(0.18

19.46

Total deposits

20,392,118

20,097,510

15,893,740

1.47

28.30

Borrowings

Federal Home Loan Bank and other borrowings

216,719

316,734

400,500

(31.58

(45.89

Line of credit, net

124,984

99,969

—

25.02

100.00

Junior subordinated debentures, net

62,864

62,863

62,861

—

Subordinated debentures, net

296,898

296,690

296,067

0.07

0.28

Total borrowings

701,465

776,256

759,428

(9.63

(7.63

Total deposits and borrowings

21,093,583

20,873,766

16,653,168

1.05

26.66

Other liabilities

367,948

367,773

320,910

0.05

14.66

Total liabilities

21,461,531

21,241,539

16,974,078

1.04

26.44

Stockholders’ equity

Common stock

473

483

424

(2.07

11.56

Additional paid in capital

2,201,250

2,272,910

1,914,556

(3.15

14.97

Retained earnings

1,369,306

1,317,946

1,217,959

3.90

12.43

Accumulated other comprehensive loss, net of tax

(58,666

)

(49,298

)

(58,083

)

19.00

1.00

Total stockholders' equity

3,512,363

3,542,041

3,074,856

(0.84

14.23

Total liabilities and stockholders’ equity

24,973,894

24,783,580

20,048,934

0.77

24.56

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited, dollars in thousands, except per share data)

Three Months Ended

% Change

June 30

2026

March 31

2026

June 30

2025

Jun 2026 vs.

Mar 2026

Jun 2025

Interest income

Interest on federal funds sold and short-term investments

2,633

3,657

4,393

(28.00

(40.06

Interest and dividends on securities

26,200

25,374

15,881

3.26

64.98

Interest and fees on loans

260,249

260,982

197,778

(0.28

31.59

Interest on loans held for sale

210

252

140

(16.67

50.00

Total interest income

289,292

290,265

218,192

(0.34

32.59

Interest expense

Interest on deposits

67,641

66,935

59,843

1.05

13.03

Interest on borrowings

10,724

10,871

10,853

(1.35

(1.19

Total interest expense

78,365

77,806

70,696

0.72

10.85

Net interest income

210,927

212,459

147,496

(0.72

43.01

Provision for credit losses

6,250

5,500

7,200

13.64

(13.19

Net interest income after provision for credit losses

204,677

206,959

140,296

(1.10

45.89

Noninterest income

Deposit account fees

9,393

9,249

7,141

1.56

31.54

Interchange and ATM fees

5,686

5,018

4,997

13.31

13.79

Investment management and advisory

14,961

14,165

11,380

5.62

31.47

Mortgage banking income

1,174

1,270

1,072

(7.56

9.51

Increase in cash surrender value of life insurance policies

2,636

2,712

2,038

(2.80

29.34

Gain on life insurance benefits

672

346

1,650

94.22

(59.27

Loan level derivative income

1,317

910

44.73

1,895.45

Other noninterest income

6,552

6,592

5,964

(0.61

9.86

Total noninterest income

42,391

40,262

34,308

5.29

23.56

Noninterest expenses

Salaries and employee benefits

79,088

80,737

62,856

(2.04

25.82

Occupancy and equipment expenses

16,170

17,306

13,158

(6.56

22.89

Data processing and facilities management

3,208

3,259

2,783

(1.56

15.27

FDIC assessment

3,158

3,328

2,373

(5.11

33.08

Amortization of intangible assets

6,791

6,890

1,197

(1.44

467.34

Merger and acquisition expense

—

3,024

2,239

(100.00

Other noninterest expenses

31,857

28,374

24,192

12.28

31.68

Total noninterest expenses

140,272

142,918

108,798

(1.85

28.93

Income before income taxes

106,796

104,303

65,806

2.39

62.29

Provision for income taxes

24,958

24,384

14,705

2.35

69.72

Net Income

81,838

79,919

51,101

2.40

60.15

Weighted average common shares (basic)

48,054,411

48,970,060

42,623,978

Common share equivalents

22,344

29,685

17,153

Weighted average common shares (diluted)

48,076,755

48,999,745

42,641,131

Basic earnings per share

1.70

1.63

1.20

4.29

41.67

Diluted earnings per share

1.70

1.63

1.20

4.29

41.67

Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):

Net income

81,838

79,919

51,101

Noninterest expense components

Add - merger and acquisition expenses

—

3,024

2,239

Noncore increases to income before taxes

—

3,024

2,239

Net taxes associated with noncore items (1)

—

(830

)

(544

)

Add - adjustment for tax effect of previously incurred merger and acquisition expenses

—

657

Total tax impact

—

(830

)

113

Noncore increases to net income

—

2,194

2,352

Operating net income (Non-GAAP)

81,838

82,113

53,453

(0.33

53.10

Diluted earnings per share, on an operating basis (Non-GAAP)

1.70

1.68

1.25

1.19

36.00

(1) The net taxes 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)

3.85

3.90

3.37

Return on average assets (calculated by dividing annualized net income by average assets) (GAAP)

1.34

1.31

1.04

Return on average assets on an operating basis (Non-GAAP) (calculated by dividing annualized operating net income by average assets)

1.34

1.35

1.09

Return on average common equity (calculated by dividing annualized net income by average common equity) (GAAP)

9.24

9.02

6.68

Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing annualized operating net income by average common equity)

9.24

9.27

6.99

Return on average tangible common equity (Non-GAAP) (calculated by dividing annualized net income by average tangible common equity)

14.05

13.67

9.89

Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing annualized operating net income by average tangible common equity)

14.05

10.35

Noninterest income as a % of total revenue (GAAP) (calculated by dividing total noninterest income by net interest income plus total noninterest income)

16.73

15.93

18.87

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)

16.73

15.93

18.87

Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)

55.37

56.55

59.84

Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)

55.37

55.36

58.61

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited, dollars in thousands, except per share data)

Six Months Ended

% Change

June 30

2026

June 30

2025

Jun 2026 vs.

Jun 2025

Interest income

Interest on federal funds sold and short-term investments

6,290

5,831

7.87

Interest and dividends on securities

51,574

31,178

65.42

Interest and fees on loans

521,231

392,871

32.67

Interest on loans held for sale

462

232

99.14

Total interest income

579,557

430,112

34.75

Interest expense

Interest on deposits

134,576

119,279

12.82

Interest on borrowings

21,595

17,832

21.10

Total interest expense

156,171

137,111

13.90

Net interest income

423,386

293,001

44.50

Provision for credit losses

11,750

22,200

(47.07

Net interest income after provision for credit losses

411,636

270,801

52.01

Noninterest income

Deposit account fees

18,642

14,194

31.34

Interchange and ATM fees

10,704

9,619

11.28

Investment management and advisory

29,126

22,600

28.88

Mortgage banking income

2,444

1,813

34.80

Increase in cash surrender value of life insurance policies

5,348

4,103

30.34

Gain on life insurance benefits

1,018

1,650

(38.30

Loan level derivative income

2,227

1,108

100.99

Other noninterest income

13,143

11,760

11.76

Total noninterest income

82,652

66,847

23.64

Noninterest expenses

Salaries and employee benefits

159,825

124,787

28.08

Occupancy and equipment expenses

33,476

27,017

23.91

Data processing and facilities management

6,467

5,425

19.21

FDIC assessment

6,486

5,361

20.98

Amortization of intangible assets

13,681

2,541

438.41

Merger and acquisition expense

3,024

3,394

(10.90

Other noninterest expenses

60,230

46,151

30.51

Total noninterest expenses

283,189

214,676

31.91

Income before income taxes

211,099

122,972

71.66

Provision for income taxes

49,342

27,447

79.77

Net Income

161,757

95,525

69.33

Weighted average common shares (basic)

48,509,706

42,587,330

Common share equivalents

26,014

19,753

Weighted average common shares (diluted)

48,535,720

42,607,083

Basic earnings per share

3.33

2.24

48.66

Diluted earnings per share

3.33

2.24

48.66

Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):

Net Income

161,757

95,525

Noninterest expense components

Add - merger and acquisition expenses

3,024

3,394

Noncore increases to income before taxes

3,024

3,394

Net taxes associated with noncore items (1)

(830

)

(593

)

Add - adjustment for tax effect of previously incurred merger and acquisition expenses

—

381

Total tax impact

(830

)

(212

)

Noncore increases to net income

2,194

3,182

Operating net income (Non-GAAP)

163,951

98,707

66.10

Diluted earnings per share, on an operating basis (Non-GAAP)

3.38

2.32

45.69

Performance ratios

Net interest margin (FTE)

3.88

3.40

Return on average assets (GAAP) (calculated by dividing net income by average assets)

1.32

0.98

Return on average assets on an operating basis (Non-GAAP) (calculated by dividing operating net income by average assets)

1.34

1.02

Return on average common equity (GAAP) (calculated by dividing net income by average common equity)

9.13

6.32

Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing operating net income by average common equity)

9.26

6.53

Return on average tangible common equity (Non-GAAP) (calculated by dividing net income by average tangible common equity)

13.86

9.38

Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing operating net income by average tangible common equity)

14.05

9.69

Noninterest income as a % of total revenue (GAAP) (calculated by dividing total noninterest income by net interest income plus total noninterest income)

16.33

18.58

16.33

18.58

Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)

55.96

59.66

Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)

55.36

58.71

ASSET QUALITY

(Unaudited, dollars in thousands)

Nonperforming Assets At

June 30

2026

March 31

2026

June 30

2025

Nonperforming loans

Commercial & industrial loans

9,204

8,453

13,717

Commercial real estate loans

64,544

64,851

28,717

Commercial construction loans

2,925

698

—

Residential real estate loans

20,305

15,593

10,013

Home equity

6,648

7,011

3,765

Other consumer

Total nonperforming loans

103,642

96,643

56,217

Other real estate owned

206

2,100

Total nonperforming assets

103,848

98,743

58,317

Nonperforming loans/gross loans

0.56

0.52

0.39

Nonperforming assets/total assets

0.42

0.40

0.29

Allowance for credit losses/nonperforming loans

189.02

197.18

257.53

Allowance for credit losses/total loans

1.06

1.03

1.00

Delinquent loans/total loans

0.43

0.41

0.20

Nonperforming Assets Reconciliation for the Three Months Ended

June 30

2026

March 31

2026

June 30

2025

Nonperforming assets beginning balance

98,743

85,657

89,493

New to nonperforming

28,377

24,714

13,411

Loans charged-off

(1,865

)

(5,776

)

(6,966

)

Loans paid-off

(18,701

)

(5,272

)

(35,977

)

Loans transferred to other real estate owned

—

(2,100

)

Loans restored to performing status

(831

)

(608

)

(1,659

)

New to other real estate owned

206

—

2,100

Sale of other real estate owned

(2,100

)

—

Other

Nonperforming assets ending balance

103,848

98,743

58,317

Net Charge-Offs (Recoveries)

Three Months Ended

Six Months Ended

June 30

2026

March 31

2026

June 30

2025

June 30

2026

June 30

2025

Net charge-offs (recoveries)

Commercial and industrial loans

464

311

2,793

775

2,945

Commercial real estate loans

4,034

3,347

4,092

43,343

Home equity

(43

)

(12

)

(49

)

(55

)

Other consumer

432

484

428

916

1,094

Total net charge-offs

911

4,817

6,519

5,728

47,411

Net charge-offs to average loans (annualized)

0.02

0.11

0.18

0.06

0.66

BALANCE SHEET AND CAPITAL RATIOS

June 30

2026

March 31

2026

June 30

2025

Gross loans/total deposits

90.20

91.68

91.44

Common equity tier 1 capital ratio (1)

12.80

12.89

14.70

Tier 1 leverage capital ratio (1)

10.20

10.23

11.44

Common equity to assets ratio GAAP

14.06

14.29

15.34

Tangible common equity to tangible assets ratio (2)

9.69

9.86

10.92

Book value per share GAAP

73.76

72.92

72.13

Tangible book value per share (2)

48.34

47.86

48.80

(1) Estimated number for June 30, 2026.

(2) See Appendix A for detailed reconciliation from GAAP to Non-GAAP ratios.

INDEPENDENT BANK CORP. SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited, dollars in thousands)

Three Months Ended

June 30, 2026

March 31, 2026

June 30, 2025

Interest

Average

Earned/

Yield/

Average

Earned/

Yield/

Average

Earned/

Yield/

Balance

Paid (1)

Rate

Balance

Paid (1)

Rate

Balance

Paid (1)

Rate

Interest-earning assets

Interest-earning deposits with banks, federal funds sold, and short term investments

304,850

2,633

3.46

415,532

3,657

3.57

406,108

4,393

4.34

Securities

Securities - trading

5,549

—

5,108

—

4,796

—

Securities - taxable investments

3,344,236

26,098

3.13

3,325,253

25,260

3.08

2,737,166

15,879

2.33

Securities - nontaxable investments (1)

10,334

129

5.01

11,634

144

5.02

195

4.11

Total securities

3,360,119

26,227

3.13

3,341,995

25,404

3.08

2,742,157

15,881

2.32

Loans held for sale

15,109

210

5.57

19,495

252

5.24

9,839

140

5.71

Loans

Commercial and industrial (1)

4,684,134

72,323

6.19

4,605,582

70,426

6.20

3,363,944

51,287

6.12

Commercial real estate (1)

8,096,126

111,044

5.50

8,240,241

112,466

5.54

6,672,633

87,096

5.24

Commercial construction (1)

1,455,154

24,051

6.63

1,404,278

23,926

6.91

809,839

13,766

6.82

Total commercial

14,235,414

207,418

5.84

14,250,101

206,818

5.89

10,846,415

152,149

5.63

Residential real estate

2,849,629

33,774

4.75

2,856,572

35,503

5.04

2,471,810

28,079

4.56

Home equity

1,327,930

19,847

5.99

1,300,202

19,429

6.06

1,160,123

18,144

6.27

Total consumer real estate

4,177,559

53,621

5.15

4,156,774

54,932

5.36

3,631,933

46,223

5.10

Other consumer

42,086

667

6.36

43,789

664

6.15

35,850

582

6.51

Total loans

18,455,059

261,706

5.69

18,450,664

262,414

5.77

14,514,198

198,954

5.50

Total interest-earning assets

22,135,137

290,776

5.27

22,227,686

291,727

5.32

17,672,302

219,368

4.98

Cash and due from banks

226,735

228,015

196,147

Federal Home Loan Bank stock

16,942

20,474

22,900

Other assets

2,196,868

2,226,216

1,852,397

Total assets

24,575,682

24,702,391

19,743,746

Interest-bearing liabilities

Deposits

Savings and interest checking accounts

6,318,590

16,121

1.02

6,333,509

15,883

1.02

5,214,871

16,553

1.27

Money market

4,830,122

25,328

2.10

4,862,134

24,672

2.06

3,295,080

19,090

2.32

Time deposits

3,231,355

26,192

3.25

3,269,232

26,380

3.27

2,705,299

24,200

3.59

Total interest-bearing deposits

14,380,067

67,641

1.89

14,464,875

66,935

1.88

11,215,250

59,843

2.14

Borrowings

Federal Home Loan Bank and other borrowings

296,624

2,780

3.76

380,062

3,596

3.84

432,392

4,233

3.93

Line of Credit

104,096

1,423

5.48

54,404

755

5.63

—

Junior subordinated debentures

62,863

876

5.59

62,863

874

5.64

62,861

976

6.23

Subordinated debentures

296,778

5,645

7.63

296,573

5,646

7.72

296,373

5,644

7.64

Total borrowings

760,361

10,724

5.66

793,902

10,871

5.55

791,626

10,853

5.50

Total interest-bearing liabilities

15,140,428

78,365

2.08

15,258,777

77,806

2.07

12,006,876

70,696

2.36

Noninterest-bearing demand deposits

5,552,302

5,498,339

4,372,122

Other liabilities

332,250

353,886

297,698

Total liabilities

21,024,980

21,111,002

16,676,696

Stockholders’ equity

3,550,702

3,591,389

3,067,050

Total liabilities and stockholders’ equity

24,575,682

24,702,391

19,743,746

Net interest income

212,411

213,921

148,672

Interest rate spread (2)

3.19

3.25

2.62

Net interest margin (3)

3.85

3.90

3.37

Supplemental Information

Total deposits, including demand deposits

19,932,369

67,641

19,963,214

66,935

15,587,372

59,843

Cost of total deposits

1.36

1.54

Total funding liabilities, including demand deposits

20,692,730

78,365

20,757,116

77,806

16,378,998

70,696

Cost of total funding liabilities

1.52

1.73

(1)

The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis was $1.5 million for both the three months ended June 30, 2026 and March 31, 2026, and $1.2 million for the three months ended June 30, 2025, determined by applying the Company’s marginal tax rates in effect during each respective quarter.

(2)

Interest rate spread represents the difference between weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(3)

Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

Six Months Ended

June 30, 2026

June 30, 2025

Interest

Average

Earned/

Yield/

Average

Earned/

Yield/

Balance

Paid

Rate

Balance

Paid

Rate

Interest-earning assets

Interest earning deposits with banks, federal funds sold, and short term investments

359,885

6,290

3.52

274,490

5,831

4.28

Securities

Securities - trading

5,330

—

4,655

—

Securities - taxable investments

3,334,797

51,358

3.11

2,742,075

31,175

2.29

Securities - nontaxable investments (1)

10,981

273

5.01

195

3.10

Total securities

3,351,108

51,631

3.11

2,746,925

31,178

2.29

Loans held for sale

17,290

462

5.39

8,127

232

5.76

Loans

Commercial and industrial (1)

4,645,075

142,749

6.20

3,307,764

102,181

6.23

Commercial real estate (1)

8,167,785

223,510

5.52

6,738,253

173,182

5.18

Commercial construction (1)

1,429,856

47,977

6.77

797,643

26,933

6.81

Total commercial

14,242,716

414,236

5.87

10,843,660

302,296

5.62

Residential real estate

2,853,081

69,277

4.90

2,468,158

55,795

4.56

Home equity

1,314,142

39,276

6.03

1,150,212

35,918

6.30

Total consumer real estate

4,167,223

108,553

5.25

3,618,370

91,713

5.11

Other consumer

42,934

1,331

6.25

37,227

1,175

6.36

Total loans

18,452,873

524,120

5.73

14,499,257

395,184

5.50

Total interest-earning assets

22,181,156

582,503

5.30

17,528,799

432,425

4.97

Cash and due from banks

227,372

196,838

Federal Home Loan Bank stock

18,698

25,260

Other assets

2,211,460

1,852,236

Total assets

24,638,686

19,603,133

Interest-bearing liabilities

Deposits

Savings and interest checking accounts

6,326,007

32,004

1.02

5,218,591

32,715

1.26

Money market

4,846,040

50,000

2.08

3,237,300

36,800

2.29

Time deposits

3,250,189

52,572

3.26

2,714,586

49,764

3.70

Total interest-bearing deposits

14,422,236

134,576

1.88

11,170,477

119,279

2.15

Borrowings

Federal Home Loan Bank and other borrowings

338,112

6,376

3.80

489,733

9,799

4.03

Line of Credit

79,388

2,178

5.53

—

Junior subordinated debentures

62,863

1,750

5.61

62,861

1,950

6.26

Subordinated debentures

296,676

11,291

7.67

160,477

6,083

7.64

Total borrowings

777,039

21,595

5.60

713,071

17,832

5.04

Total interest-bearing liabilities

15,199,275

156,171

2.07

11,883,548

137,111

2.33

Noninterest-bearing demand deposits

5,525,470

4,358,950

Other liabilities

343,008

310,641

Total liabilities

21,067,753

16,553,139

Stockholders’ equity

3,570,933

3,049,994

Total liabilities and stockholders’ equity

24,638,686

19,603,133

Net interest income

426,332

295,314

Interest rate spread (2)

3.23

2.64

Net interest margin (3)

3.88

3.40

Supplemental Information

Total deposits, including demand deposits

19,947,706

134,576

15,529,427

119,279

Cost of total deposits

1.36

1.55

Total funding liabilities, including demand deposits

20,724,745

156,171

16,242,498

137,111

Cost of total funding liabilities

1.52

1.70

(1)

The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis was $2.9 million and $2.3 million for the six months ended June 30, 2026 and 2025, respectively.

(2)

Interest rate spread represents the difference between weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(3)

Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

Certain amounts in prior year financial statements have been reclassified to conform to the current year’s presentation.

APPENDIX A: NON-GAAP Reconciliation of Balance Sheet Metrics (Unaudited, dollars in thousands, except per share data)

The following table summarizes the calculation of the Company’s tangible common equity to tangible assets ratio and tangible book value per share, at the dates indicated:

June 30

2026

March 31

2026

June 30

2025

Tangible common equity

(Dollars in thousands, except per share data)

Stockholders’ equity (GAAP)

3,512,363

3,542,041

3,074,856

(a)

Less: Goodwill and other intangibles

1,210,506

1,217,297

994,814

Tangible common equity (Non-GAAP)

2,301,857

2,324,744

2,080,042

(b)

Tangible assets

Assets (GAAP)

24,973,894

24,783,580

20,048,934

(c)

Less: Goodwill and other intangibles

1,210,506

1,217,297

994,814

Tangible assets (Non-GAAP)

23,763,388

23,566,283

19,054,120

(d)

Common Shares

47,618,626

48,572,237

42,627,286

(e)

Common equity to assets ratio (GAAP)

14.06

14.29

15.34

(a/c)

Tangible common equity to tangible assets ratio (Non-GAAP)

9.69

9.86

10.92

(b/d)

Book value per share (GAAP)

73.76

72.92

72.13

(a/e)

Tangible book value per share (Non-GAAP)

48.34

47.86

48.80

(b/e)

APPENDIX B: Non-GAAP Reconciliation of Earnings Metrics

The following table summarizes the impact of noncore items on the Company’s calculation of noninterest income and noninterest expense, the impact of noncore items on noninterest income as a percentage of total revenue and the efficiency ratio, as well as the average tangible common equity used to calculate return on average tangible common equity and operating return on tangible common equity for the periods indicated, and the average assets used to calculate return on average assets and operating return on average assets:

(Unaudited, dollars in thousands)

Three Months Ended

Six Months Ended

June 30

2026

March 31

2026

June 30

2025

June 30

2026

June 30

2025

Net interest income (GAAP)

210,927

212,459

147,496

423,386

293,001

Noninterest income (GAAP)

42,391

40,262

34,308

82,652

66,847

Total revenue (GAAP)

253,318

252,721

181,804

506,038

359,848

Noninterest expense (GAAP)

140,272

142,918

108,798

283,189

214,676

Less:

Merger and acquisition expense

—

3,024

2,239

3,024

3,394

Noninterest expense on an operating basis (Non-GAAP)

140,272

139,894

106,559

280,165

211,282

Average assets

24,575,682

24,702,391

19,743,746

24,638,686

19,603,133

Average common equity (GAAP)

3,550,702

3,591,389

3,067,050

3,570,933

3,049,994

Less: Average goodwill and other intangibles

1,214,434

1,221,201

995,380

1,217,799

996,067

Average tangible common equity (Non-GAAP)

2,336,268

2,370,188

2,071,670

2,353,134

2,053,927

Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP)

Net income (GAAP)

81,838

79,919

51,101

161,757

95,525

Noninterest expense components

Add - merger and acquisition expenses

—

3,024

2,239

3,024

3,394

Noncore increases to income before taxes

—

3,024

2,239

3,024

3,394

Net taxes associated with noncore items (1)

—

(830

)

(544

)

(830

)

(593

)

Add - adjustment for tax effect of previously incurred merger and acquisition expenses

—

657

—

381

Total tax impact

—

(830

)

113

(830

)

(212

)

Noncore increases to net income

—

2,194

2,352

2,194

3,182

Operating net income (Non-GAAP)

81,838

82,113

53,453

163,951

98,707

Ratios

Return on average assets (GAAP) (calculated by dividing annualized net income by average assets)

1.34

1.31

1.04

1.32

0.98

Return on average assets on an operating basis (Non-GAAP) (calculated by dividing annualized operating net income by average assets)

1.34

1.35

1.09

1.34

1.02

Return on average common equity (GAAP) (calculated by dividing annualized net income by average common equity)

9.24

9.02

6.68

9.13

6.32

Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing annualized operating net income by average common equity)

9.24

9.27

6.99

9.26

6.53

Return on average tangible common equity (Non-GAAP) (calculated by dividing annualized net income by average tangible common equity)

14.05

13.67

9.89

13.86

9.38

Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing annualized operating net income by average tangible common equity)

14.05

10.35

14.05

9.69

Noninterest income as a % of total revenue (GAAP) (calculated by dividing total noninterest income by total revenue)

16.73

15.93

18.87

16.33

18.58

Noninterest income as a % of total revenue on an operating basis (Non-GAAP) (calculated by dividing total noninterest income on an operating basis by total revenue)

16.73

15.93

18.87

16.33

18.58

Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)

55.37

56.55

59.84

55.96

59.66

Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)

55.37

55.36

58.61

55.36

58.71

APPENDIX C: Net Interest Margin Analysis & Non-GAAP Reconciliation of Adjusted Margin

(Unaudited, dollars in thousands)

Three Months Ended

June 30, 2026

March 31, 2026

Volume

Interest

Margin Impact

Volume

Interest

Margin Impact

Reported total interest earning assets

22,135,137

212,411

3.85

22,227,686

213,921

3.90

Acquisition fair value marks:

Loan accretion

(4,439

)

(0.08

(9,186

)

(0.17

Nonaccrual interest, net

143

—

(54

)

—

Other adjustments

(1,453

)

(497

)

(0.01

(1,626

)

(667

)

(0.01

Adjusted margin (Non-GAAP)

22,133,684

207,618

3.76

22,226,060

204,014

3.72

View source version on businesswire.com: https://www.businesswire.com/news/home/20260715089937/en/