Independent Bank Corp. has reported a third-quarter net income of $34.3 million, or $0.69 per diluted share, a decrease from the second quarter's net income of $51.1 million, or $1.20 per diluted share. The decrease in net income was primarily driven by higher merger-related costs and the current period provision for credit losses associated with the company’s recently completed acquisition of Enterprise Bancorp, Inc. and its subsidiary, Enterprise Bank. Excluding these costs, operating net income was $77.4 million, or $1.55 per diluted share for the third quarter of 2025 compared to operating net income of $53.5 million, or $1.25 per diluted share for the second quarter of 2025.
The company's total assets increased to $25.0 billion at September 30, 2025, a 24.7% increase from the prior quarter, inclusive of the acquisition of Enterprise. Total loans increased by 27.0% to $18.5 billion, and deposit balances increased by 27.7% to $20.3 billion. Wealth management assets under administration also increased to $9.2 billion at September 30, 2025, inclusive of the acquired Enterprise portfolio.
The net interest margin increased to 3.62%, a 25 basis points increase from the prior quarter, and the company repurchased approximately 365,000 shares for $23.4 million during the third quarter.
Noninterest income of $40.4 million for the third quarter of 2025 represented an increase of $6.1 million, or 17.8%, as compared to the prior quarter. Noninterest expense of $160.8 million for the third quarter of 2025 represented an increase of $52.0 million, or 47.8%, as compared to the prior quarter.
Asset quality metrics showed an increase in nonperforming loans to $86.6 million at September 30, 2025, compared to $56.2 million at June 30, 2025, and an increase in delinquencies as a percentage of total loans to 0.49% at September 30, 2025, from the prior quarter. The provision for credit losses also increased to $38.5 million, compared to $7.2 million for the prior quarter.
The company's CEO, Jeffrey Tengel, expressed satisfaction with the third-quarter results, attributing them to the Enterprise acquisition and solid business activity, which drove significant net interest margin improvement, improved fee income results, and a meaningful drop in the efficiency ratio. Following these announcements, the company's shares moved -5.2%, and are now trading at a price of $64.39. Check out the company's full 8-K submission here.
