Independent Bank Corp. reported first-quarter 2026 net income of $16.9 million, up from $15.6 million a year earlier, as diluted earnings per share rose to $0.81 from $0.74.
Net interest income climbed to $46.9 million, an increase of $3.2 million, or 7.3%, from the first quarter of 2025, and up $0.5 million, or 1.1%, from the fourth quarter of 2025. The net interest margin widened to 3.65% from 3.49% a year ago and 3.62% in the prior quarter.
Average interest-earning assets increased to $5.21 billion from $5.08 billion a year earlier and $5.16 billion in the fourth quarter.
Non-interest income rose to $12.0 million from $10.4 million in the year-ago quarter. Mortgage loan servicing, net, swung to income of $1.6 million from an expense of $0.6 million a year earlier, while net gains on mortgage loans fell to about $1.3 million from $2.3 million.
Non-interest expense increased to $38.3 million from $34.3 million. The company said the rise was driven by compensation and employee benefits, advertising, merger-related costs and $1.5 million of litigation expense.
The provision for credit losses declined to $0.36 million from $0.72 million, while net charge-offs increased to $0.27 million from $0.07 million.
Non-performing loans rose to $27.6 million at March 31, 2026, from $23.1 million at Dec. 31, 2025, and from $7.1 million a year earlier. The ratio of non-performing loans to total portfolio loans increased to 0.64% from 0.54% at year-end and 0.17% a year earlier.
Loans, excluding loans held for sale, grew to $4.31 billion from $4.28 billion at Dec. 31, 2025. Deposits increased to $4.88 billion from $4.76 billion, a gain of $119.0 million. Cash and cash equivalents rose to $174.9 million from $138.4 million, while securities available for sale fell to $482.3 million from $495.9 million.
Total assets increased to $5.56 billion from $5.51 billion. Total shareholders’ equity rose to $510.6 million from $503.0 million, and tangible common equity increased to $481.4 million from $473.7 million. Tangible common equity per share improved to $23.38 from $23.05.
The tangible common equity ratio increased to 8.7% from the prior quarter. The company’s regulatory capital ratios also edged higher, with tier 1 capital to average total assets at 9.43% versus 9.36% at year-end, and common equity tier 1 capital to risk-weighted assets at 11.43% versus 11.24%.
During the quarter, the company paid a quarterly dividend of $0.28 per share and did not repurchase any shares under its 2026 buyback plan. As a result of these announcements, the company's shares have moved -0.06% on the market, and are now trading at a price of $32.68. Check out the company's full 8-K submission here.
