Independent Bank Corp. Reports Q1 2025 Financial Results with $44.4 Million Net Income

Independent Bank Corp. reported its financial results for the first quarter of 2025, revealing a net income of $44.4 million, or $1.04 per diluted share, compared to $47.8 million, or $1.12 per diluted share, in the same period last year. This represents a decrease of approximately 7% in both net income and earnings per share. The decline was primarily attributed to a significant increase in the provision for credit losses, which rose to $15 million from $5 million in the prior year, driven by elevated charge-off activity and specific reserve allocations.

Total assets for the company increased to $19.9 billion as of March 31, 2025, up from $19.4 billion at the end of 2024. The growth in assets was supported by a rise in total deposits, which reached $15.7 billion, reflecting an increase of $370 million, or 2.4%, from the previous quarter. This growth was largely driven by increases in non-maturity consumer and business deposits, although there was a decline in higher-cost time deposits. The company’s net interest margin improved to 3.42%, up from 3.23% in the prior year, aided by higher yields on interest-earning assets and reduced funding costs.

In terms of operational developments, Independent Bank Corp. completed a $300 million subordinated debt issuance in March 2025, which is expected to enhance its capital position. The company also announced its pending acquisition of Enterprise Bancorp, Inc., valued at approximately $562 million, which is anticipated to close in the third quarter of 2025, pending regulatory approvals. This strategic move is expected to bolster the company’s market presence and operational scale.

The company’s loan portfolio remained stable at $14.5 billion, with notable growth in the commercial and industrial segment, which increased by $62.8 million, or 2.1%. However, this was offset by declines in the commercial real estate and construction categories. The allowance for credit losses decreased to $144.1 million, or 0.99% of total loans, down from $170 million at the end of 2024, reflecting management's ongoing efforts to manage credit risk effectively.

Looking ahead, Independent Bank Corp. remains focused on organic growth while also pursuing strategic acquisitions. The company is optimistic about its ability to navigate the current economic environment, leveraging its strong deposit base and improving net interest margins to drive future profitability. The management emphasized its commitment to maintaining a disciplined approach to credit underwriting and risk management as it continues to adapt to changing market conditions.