Independent Bank (INDB) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $81.8 million ($1.70 diluted EPS), up from $51.1 million ($1.20 EPS) in Q2 2025, driven by the Enterprise acquisition, net interest margin expansion, and strong operating leverage.

• Tangible book value per share rose to $48.34 at June 30, 2026, with book value per share at $73.76.

• Wealth management and business advisory services delivered excellent results, with AUA at $9.5 billion and strong fee income growth.

• Maintained a strong balance sheet and significant capital buffer, with a focus on organic capital generation and efficient cost structure.

• Asset quality remained stable, with net charge-offs at two basis points and provision for loan losses at $6.3 million.

Financial highlights

• Net income for Q2 2026 was $81.8 million; diluted EPS $1.70; operating EPS up from $1.20 year-over-year.

• Net interest margin was 3.85% for Q2 2026, up 48 bps year-over-year; core NIM increased four basis points to 3.76%.

• Deposits increased to $20.4 billion, up 1.3% from year-end 2025; core deposits grew $294.6 million (1.5%) from Q1 2026.

• Fee income rose over 5% from the prior quarter, led by wealth management and treasury services.

• Approximately 964,000 shares repurchased for $75 million in Q2 2026; new $200 million buyback plan announced.

Outlook and guidance

• Reaffirmed Q4 2026 targets: ROAA of 1.4% and return on average tangible capital of 15%.

• Guidance for 2026 anticipates mid-single digit growth in C&I loans, flat to low-single digit decrease in CRE and construction, and low-single digit increase in consumer loans.

• Core margin expected at low end of 3.9%-3.95% range; core operating expenses projected at $553–$557 million, with $5–$6 million in one-time core system upgrade costs.

• Full-year deposit growth and fee income guidance unchanged.

• Management continues to focus on organic growth and will consider acquisitions that provide satisfactory returns.