Independent Bank (INDB) investor relations material

Executive summary

• Net income for Q1 2026 was $79.9 million ($1.63 diluted EPS), with operating net income at $82.1 million ($1.68 EPS), reflecting growth from the Enterprise Bancorp acquisition and improved net interest margin.

• Tangible book value per share increased to $47.86, up $0.31 sequentially.

• Maintained strong profitability, disciplined expense management, and efficient cost structure, with a focus on margin expansion and prudent risk management.

• $94 million was returned to shareholders, including $63 million in share repurchases; quarterly dividend was raised by 8.5% to $0.64 per share.

• Preparing for a core operating platform conversion in October and established an Office of Digital Innovation and AI governance framework.

Financial highlights

• Net interest margin rose to 3.90% (up 13 bps sequentially), with adjusted/core margin at 3.72% (up 8 bps); net interest income was $213.9 million.

• Total assets were $24.8 billion; total loans $18.4 billion; total deposits $20.1 billion.

• Allowance for credit losses was $190.6 million (1.03% of loans); non-performing loans were 0.52% of gross loans.

• Noninterest expense was $142.9 million, down 7.4% sequentially, mainly due to lower merger expenses.

• Provision for credit losses was $5.5 million; net charge-offs were $4.8 million (0.11% of average loans annualized).

Outlook and guidance

• Profitability targets reaffirmed for Q4 2026: ROA of 1.40% and ROTCE of 15%; NIM guidance raised to 3.90%-3.95%.

• C&I loans expected to grow mid-single digits; CRE and construction flat to low-single digit growth; core deposits projected to increase low to mid-single digits.

• Capital management and shareholder returns remain a priority, with a new $200 million stock buyback plan announced and further buyback authorization expected.

• Core operating expenses guided to $550–$555 million; stable asset quality metrics anticipated.