Independent Bank/MA | 8-K: FY2026 Q1 Revenue: USD 252.72 M

Revenue: As of FY2026 Q1, the actual value is USD 252.72 M.EPS: As of FY2026 Q1, the actual value is USD 1.63, missing the estimate of USD 1.64.EBIT: As of FY2026 Q1, the actual value is USD -108.16 M.Net IncomeNet income for the first quarter of 2026 was $79.9 million, compared to $75.3 million for the fourth quarter of 2025, representing a 6.08% increase . Compared to the first quarter of 2025, net income increased by 79.90% from $44.424 million .Operating net income (Non-GAAP) for the first quarter of 2026 was $82.1 million, compared to $84.4 million for the fourth quarter of 2025, a decrease of -2.66% . Compared to the first quarter of 2025, operating net income increased by 81.45% from $45.254 million .Net Interest IncomeNet interest income for the first quarter of 2026 was $212.5 million, which was flat compared to the prior quarter, but increased by 46.01% from $145.505 million in the first quarter of 2025 .The net interest margin was 3.90% for the first quarter of 2026, an increase of 13 basis points compared to the prior quarter . The adjusted margin (Non-GAAP) increased 8 basis points to 3.72% . Net Interest Margin has shown consistent growth from 3.42% in Q1 2025 to 3.90% in Q1 2026 .Noninterest IncomeNoninterest income for the first quarter of 2026 was $40.3 million, a decrease of $1.2 million or -2.9% compared to the prior quarter . This figure increased by 23.73% from $32.539 million in the first quarter of 2025 . Total noninterest income for Q1 2026 was $40,262 thousand, a decrease from $41,445 thousand in Q4 2025 .Interchange and ATM fees decreased by $363,000, or -6.7%, due to seasonally lower transaction volumes . Major categories include deposit account fees ($9,249 thousand), interchange and ATM fees ($5,018 thousand), and investment management and advisory fees ($14,165 thousand) .Overall investment and advisory income increased $372,000, or 2.7%, driven by higher asset-based fee revenue and insurance commissions . Investment management and advisory revenue increased by 2.7% to $14,165 thousand in Q1 2026 .Loan level derivative income decreased by $322,000, or -26.1%, reflecting volatility in customer demand .Other noninterest income decreased by $1.1 million, or -13.8%, primarily due to a decrease in investment income on equity securities .Noninterest ExpenseNoninterest expense for the first quarter of 2026 was $142.9 million, a decrease of $11.5 million or -7.4% compared to the prior quarter . This represents a 34.98% increase from $105.878 million in the first quarter of 2025 . Total noninterest expenses for Q1 2026 were $142,918 thousand, down from $154,370 thousand in Q4 2025 . Operating noninterest expense (Non-GAAP) was $139,894 thousand in Q1 2026, compared to $142,022 thousand in Q4 2025 .Merger and acquisition expenses were $3.0 million in Q1 2026, down from $12.3 million in Q4 2025 . Merger and acquisition expense was $3,024 thousand .Salaries and employee benefits decreased by $843,000, or -1.0%, mainly due to decreased incentive compensation, retirement benefits, and lower base salaries . Salaries and employee benefits were $80,737 thousand .Occupancy and equipment expenses increased by $1.7 million, or 10.9%, driven by a $1.9 million increase in snow removal costs .FDIC assessment decreased $731,000, or -18.0%, due to quarterly timing differences .Other noninterest expense decreased by $2.4 million, or -7.8%, primarily due to decreases in consultant fees ($790,000), legal fees ($755,000), and net valuation decreases on equity securities ($384,000) .Total AssetsTotal assets were $24.8 billion at March 31, 2026, a decrease of $129.3 million or -0.5% compared to the prior quarter, primarily due to decreased loan and cash balances . This marks a 24.61% increase from $19.888 billion at March 31, 2025 .Deposit BalancesDeposit balances were $20.1 billion at March 31, 2026, a decrease of $29.3 million or -0.1% compared to the prior quarter . Total deposits increased by 28.21% from $15.676 billion at March 31, 2025 . Total deposits decreased by -$29.3 million, or 0.1%, to $20,097 million as of March 30, 2026, from $20,127 million on December 31, 2025 .Average deposits decreased $309.9 million, or -1.5%, compared to the prior quarter, driven by seasonality .Core deposits comprised 83.8% of total deposits at March 31, 2026, up from 83.7% at December 31, 2025 .The total cost of deposits for Q1 2026 was 1.36%, a decrease of 10 basis points compared to the prior quarter . The cost of deposits was 1.36% in Q1 2026 .Noninterest-bearing demand deposits increased by $32 million (0.6%) to $5,633 million, while savings and interest checking decreased by -$172 million (-2.7%) to $6,311 million .Loan BalancesLoan balances were $18.4 billion at March 31, 2026, a decrease of $78.3 million or -0.4% compared to the prior quarter . Total loans increased by 27.14% from $14.492 billion at March 31, 2025 . Total loans decreased by -$78.3 million, or 0.4%, to $18,426 million as of March 31, 2026, compared to $18,504 million on December 31, 2025 .The commercial and industrial portfolio grew $39.7 million, or 0.9% . Commercial and industrial loans increased by $39 million (0.85%) to $4,651 million .Commercial real estate and construction decreased $89.6 million, or -0.9% . Commercial real estate decreased by -$94 million (-1.14%) to $8,181 million .The total consumer portfolio decreased $28.3 million, or -0.7% .Stockholders’ EquityStockholders’ equity at March 31, 2026 decreased $23.7 million, or -0.7%, compared to December 31, 2025 . This represents a 16.77% increase from $3.033 billion at March 31, 2025 .The Company repurchased approximately 802,000 shares for $63.3 million during Q1 2026 . Approximately 802,000 shares were repurchased for $63.3 million .The quarterly dividend increased by 8.5% from $0.59 to $0.64 per share in Q1 2026 . A quarterly dividend of $0.64 was declared, reflecting an 8.5% increase over the prior quarter .Tangible book value per share (Non-GAAP) was $47.86 at March 31, 2026, an increase of $0.31 from the prior quarter and 0.1% from the year-ago period . Tangible book value per share grew by $0.31, or 0.7%, in Q1 2026 . As of March 31, 2026, tangible book value per share was $47.86, up from $47.55 on December 31, 2025, and $47.81 on March 31, 2025 .The Company’s ratio of common equity to assets was 14.29% at March 31, 2026, a decrease of 2 basis points from December 31, 2025 .The Company’s ratio of tangible common equity to tangible assets (Non-GAAP) was 9.86% at March 31, 2026, a decrease of 2 basis points from the prior quarter .Asset QualityNonperforming loans increased to $96.6 million at March 31, 2026, from $83.6 million at December 31, 2025, representing 0.52% and 0.45% of total loans, respectively . NPLs increased to $96.6 million in Q1 2026 from $83.6 million in Q4 2025 . As a percentage of total loans, NPLs were 0.52% in Q1 2026, up from 0.45% in Q4 2025 .Delinquencies as a percentage of total loans increased 9 basis points from the prior quarter to 0.41% at March 31, 2026 . Delinquent loans as a percentage of total loans increased to 0.41% in Q1 2026 from 0.32% in Q4 2025 .Net charge-offs decreased slightly to $4.8 million, compared to $5.3 million for the prior quarter, representing 0.11% and 0.12%, respectively, of average loans annualized .The first quarter provision for credit losses increased to $5.5 million, compared to $4.8 million for the prior quarter . The provision for loan loss was stable at $5.5 million .Total criticized and classified commercial loans of $575.5 million, or 4.0% of total commercial loans, increased $102.7 million, or 21.7%, compared to the prior quarter . Criticized & Classified Loans rose to $575.5 million in Q1 2026 from $472.9 million in Q4 2025 . As a percentage of total commercial loans, these were 4.04% in Q1 2026, up from 3.31% in Q4 2025 .The allowance for credit losses on total loans increased to $190.6 million at March 31, 2026, compared to $189.9 million at December 31, 2025, representing 1.03% of total loans at both dates . The Allowance for Credit Losses/Total Loans ratio remained stable at 1.03% in Q1 2026, consistent with Q4 2025 and Q3 2025 .Other Key Financial MetricsReturn on Average Assets (ROAA): Reported ROAA was 1.31% for Q1 2026, and Operating ROAA was 1.35% . This is an increase from Q4 2025 reported ROAA of 1.20% (Operating: 1.34%) and Q1 2025 reported ROAA of 0.93% (Operating: 0.94%) . Operating ROAA has consistently increased from 0.94% in Q1 2025 to 1.35% in Q1 2026 .Return on Average Common Equity (ROACE): ROACE was 9.02% for Q1 2026, and Operating ROACE was 9.27% . For Q4 2025, ROACE was 8.38% (Operating: 9.38%), and for Q1 2025, it was 5.94% (Operating: 6.05%) .Return on Average Tangible Common Equity (ROATCE): ROATCE stood at 13.67% for Q1 2026, with Operating ROATCE at 14.05% . This compares to Q4 2025 ROATCE of 12.77% (Operating: 14.30%) and Q1 2025 ROATCE of 8.85% (Operating: 9.01%) . Operating ROATCE has shown strong growth from 9.01% in Q1 2025 to 14.05% in Q1 2026 .Assets Under Administration: Assets under administration were $9,172,082 thousand as of Q1 2026, a -0.5% decrease from $9,217,333 thousand in Q4 2025 .Outlook / GuidanceIndependent Bank Corp. anticipates a mid-single digit percentage increase in Commercial and Industrial loans for 2026, alongside flat to low-single digit percentage increases for Commercial real estate, Construction, and Consumer loans . Core deposits are expected to see a low to mid-single digit percentage increase, while time deposits are projected to have a flat to low-single digit percentage decrease . The company targets a Net Interest Margin of 3.90%-3.95% by the fourth quarter of 2026, with core operating expenses projected to be in the $550 - $555 million range and an expected tax rate between 23.50% and 24.00% .