Independent Bank Corp. Reports Q2 2025 Financial Results with $51.1 Million Net Income

Independent Bank Corp. reported its financial results for the second quarter of 2025, revealing a net income of $51.1 million, or $1.20 per diluted share, compared to $51.3 million, or $1.21 per diluted share, for the same period in 2024. The slight decrease in net income reflects a challenging economic environment, although the bank experienced a steady net interest margin of 3.37%. Total interest income for the quarter was $218.2 million, up from $211.9 million a year earlier, while interest expense decreased to $70.7 million from $73.9 million, contributing to a net interest income of $147.5 million, an increase from $137.9 million in the prior year.

The bank's total assets grew to $20.05 billion as of June 30, 2025, up from $19.37 billion at the end of 2024. This increase was primarily driven by a rise in total deposits, which reached $15.89 billion, reflecting a $587.8 million increase from the previous period. The bank's loan portfolio remained stable at $14.53 billion, with notable growth in commercial and industrial loans, which increased by $167.8 million, or 5.5%. However, the commercial real estate portfolio saw a decline of $231.3 million, or 3.42%, during the same period.

In terms of operational developments, Independent Bank Corp. completed its merger with Enterprise Bancorp on July 1, 2025, which added 27 branch locations and approximately $3.9 billion in loans and $4.4 billion in deposits. This strategic acquisition is expected to enhance the bank's market presence and operational scale. The bank also announced a $150 million share repurchase program in July 2025, indicating a commitment to returning value to shareholders.

The allowance for credit losses decreased to $144.8 million as of June 30, 2025, from $170.0 million at the end of 2024, primarily due to charge-offs on classified commercial loans. The bank's nonperforming loans decreased to $56.2 million, representing 0.39% of gross loans, down from 0.70% at the end of the previous year. The bank's capital ratios remained strong, with a total capital ratio of 18.08% and a common equity tier 1 capital ratio of 14.70%, both exceeding regulatory requirements.

Looking ahead, Independent Bank Corp. anticipates continued growth driven by its recent acquisition and a focus on organic growth strategies. The bank remains committed to managing its interest rate risk and maintaining strong asset quality, while also navigating the challenges posed by the current economic landscape.