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Sep 30
Independent Bank Q3 2025 Earnings Report
Independent Bank reported Q3 2025 results with net income of $34.3 million and strong operating performance driven by its recent acquisition.
Key Takeaways
Independent Bank delivered solid Q3 results, with operating net income rising due to the completed Enterprise Bancorp acquisition. Despite a decline in GAAP net income from the prior quarter due to merger-related costs and credit loss provisions, the company saw meaningful improvements in net interest income, fee income, and operational efficiency.
Reported net income of $34,262,000 or $0.69 per diluted share
Operating net income reached $77,354,000 or $1.55 per diluted share
Revenue rose to $243,742,000, driven by Enterprise acquisition
Net interest margin improved to 3.62%, up 25 bps from Q2
Independent Bank
Independent Bank
Independent Bank Revenue by Segment
Independent Bank Revenue by Geographic Location
Revenue by Segment
Deposit account fees Revenue
CapyFin.comInterchange and ATM fees Revenue
CapyFin.comInvestment management Revenue
CapyFin.comMortgage banking income Revenue
CapyFin.comLife insurance value inc. Revenue
CapyFin.comLoan derivative income Revenue
CapyFin.comOther noninterest income Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
The company is optimistic about leveraging the Enterprise acquisition to improve performance but remains cautious of integration risks and macroeconomic pressures.
Positive Outlook
- Completed Enterprise Bancorp acquisition and systems integration
- Net interest margin expanded to 3.62%
- Efficiency ratio improved on an operating basis to 56.18%
- Stronger fee income from higher volume and acquisition impact
- Solid wealth management growth with $9.2B AUA
Challenges Ahead
- GAAP net income declined from Q2 due to $23.9M in merger expenses
- Provision for credit losses increased to $38.5M
- Nonperforming loans rose to $86.6M, up from $56.2M in Q2
- Book value per share declined to $71.24 from $72.13
- Tangible book value per share decreased to $46.63 from $48.80