Independent Bank Corp. Posts Q1 Net Income of $44.4M; Operating Metrics Weaken on Elevated Loan Loss Provision


Independent Bank Corp. (NASDAQ: INDB), parent company of Rockland Trust, reported net income of $44.4 million for the first quarter of 2025, or $1.04 per diluted share, down from $50.0 million ($1.18 per share) in the previous quarter. The decline was primarily attributed to an increased loan loss provision of $15.0 million, up from $7.5 million in Q4 2024. On a non-GAAP basis, excluding $1.2 million in merger-related expenses, operating net income was $45.3 million ($1.06 per share), compared to $51.4 million ($1.21 per share) in the prior quarter.

Key Performance Metrics:

Return on average assets declined to 0.93% (GAAP) and 0.94% (operating), from 1.02% and 1.05%, respectively.

Net interest margin improved to 3.42% from 3.33%, supported by a 10 bps decline in cost of funds.

Deposit growth was solid, increasing 2.4% to $15.7 billion, with gains in non-maturity categories.

Loan portfolio remained flat at $14.5 billion, as commercial and small business growth was offset by a decline in real estate and consumer lending.

Tangible book value per share rose $0.85 to $47.81, and the bank increased its quarterly dividend by 4%.

Balance Sheet Highlights:

Total assets reached $19.9 billion, up 2.7% from Q4 2024.

The bank issued $300 million in subordinated debt in March 2025 to support capital and liquidity.

Tangible common equity to tangible assets decreased slightly to 10.78%, though it improved 51 basis points year-over-year.

Asset Quality Deterioration:

Net charge-offs surged to $40.9 million (1.14% of average loans annualized), compared to $1.2 million last quarter, primarily due to three commercial loans.

Nonperforming loans dropped to $89.5 million, down from $101.5 million.

Allowance for credit losses decreased to $144.1 million, representing 0.99% of total loans.

Outlook and Strategy:

CEO Jeffrey Tengel cited stable core performance amid broader economic uncertainty and highlighted strong deposit inflows, margin expansion, and ongoing integration of the pending Enterprise Bancorp acquisition. The bank continues to emphasize disciplined expense management and capital strength as part of its forward strategy.

Independent Bank Corp. Updates Principal Executive Office Address

HANOVER, Mass. – March 20, 2025 – Independent Bank Corp. (NASDAQ: INDB) has updated its principal executive office location. The new physical office is at 2036 Washington Street, Hanover, MA 02339, while the official mailing address remains 288 Union Street, Rockland, MA 02370. The company's phone number is unchanged at (781) 878-6100. There were no other significant disclosures in the filing.

Independent Bank Corp. filed an amended Form 8-K/A on January 16, 2025, to correct an error in its original earnings presentation for the quarter ended December 31, 2024. The amendment addressed a misreported Pro Forma ROAA (Return on Average Assets) for 2026, which was stated as 1.14% instead of the corrected value of 1.41%. Additionally, the note at the bottom of slide 16 in the earnings presentation was updated.

The updated exhibit, labeled as Exhibit 99.2, replaces the original earnings presentation and is part of this amended filing. Other disclosures and exhibits from the original filing remain unchanged.

Independent Bank Corp., parent company of Rockland Trust Company, reported a net income of $50.0 million for Q4 2024, up from $42.9 million in Q3 2024. Earnings per diluted share were $1.18, compared to $1.01 in the previous quarter. Excluding $1.9 million in merger-related costs tied to the pending acquisition of Enterprise Bancorp, the adjusted net income was $51.4 million, or $1.21 per diluted share. Annual net income for 2024 totaled $192.1 million, reflecting a decline from $239.5 million in 2023.

Key drivers of the quarterly performance included growth in net interest income, a lower provision for credit losses, and a reduced tax rate. The company achieved a return on average assets of 1.02% and a return on average common equity of 6.64% for the quarter. Total assets remained steady at $19.4 billion as of December 31, 2024.

Loan balances grew by 1.0% quarter-over-quarter, driven by commercial and industrial, construction, and small business loans. However, deposits declined by 0.9%, attributed to seasonal reductions in business and municipal deposits.

Net interest income rose to $144.7 million, with a slight increase in net interest margin to 3.33%. Noninterest income declined by 4.0% to $32.2 million, reflecting lower investment and advisory fees and reduced loan derivative income. Operating expenses increased by 6.0%, driven by merger-related costs and higher card issuance and consulting fees.

The provision for credit losses decreased to $7.5 million from $19.5 million in the prior quarter, with nonperforming loans slightly declining to $101.5 million, representing 0.70% of total loans.

CEO Jeffrey Tengel highlighted the company's strategic focus on fundamentals and anticipated benefits from the pending acquisition of Enterprise Bancorp. The acquisition is expected to enhance profitability through synergies and expanded market opportunities.