Independent Bank Corp. posted third-quarter 2026 net income of $89.7 million, up from $81.8 million in the second quarter, while diluted earnings per share rose to $1.90 from $1.70.
Return on average assets improved to 1.42% from 1.34%, and return on average common equity climbed to 10.13% from 9.24%. Return on average tangible common equity reached 15.43%.
Net interest income increased $9.7 million to $220.7 million, and net interest margin widened 4 basis points to 3.89%. The adjusted margin held steady at 3.76%.
Loan balances rose $158.2 million, or 0.9%, to $18.6 billion. Commercial and industrial loans grew $49.0 million, commercial real estate and construction balances increased $30.8 million, and consumer real estate loans climbed $80.2 million.
Deposits increased $135.3 million, or 0.7%, to $20.5 billion. Core deposits rose $232.4 million, and core deposits made up 84.6% of total deposits, up from 84.1% in the prior quarter. Average deposit balances were up $633.8 million, or 3.2%.
The company repurchased about 679,000 shares for $57.4 million at an average price of $84.60 per share. It still had about $93 million remaining under its $200 million buyback authorization.
Total assets were $25.0 billion at quarter-end, up $38.2 million from June 30. Total securities increased $192.8 million to $3.5 billion.
Stockholders’ equity fell $60.0 million to reflect share repurchases, dividends, and unrealized losses on available-for-sale securities. Book value per share slipped to $73.54 from $73.76, while tangible book value per share fell to $47.89 from $48.34.
Noninterest income declined $1.1 million to $41.3 million. Service charges rose $555,000, but investment and advisory income fell $463,000, mortgage banking income dropped $243,000, and loan-level derivative income decreased $518,000.
Noninterest expense decreased $1.9 million to $138.4 million. FDIC assessment expense fell $623,000 and other noninterest expense dropped $1.5 million, partly offset by a $1.3 million increase in salaries and employee benefits.
Asset quality weakened modestly. Nonperforming loans increased to $125.7 million from $103.6 million, or 0.68% of total loans versus 0.56% a quarter earlier. Delinquencies rose to 0.73% from 0.43%. The allowance for credit losses increased to $201.2 million from $195.9 million.
The provision for credit losses rose slightly to $6.5 million from $6.3 million, while net charge-offs held at $1.2 million. As a result of these announcements, the company's shares have moved -0.94% on the market, and are now trading at a price of $76.04. If you want to know more, read the company's complete 8-K report here.
