Independent Bank (INDB) investor relations material

Executive summary

• First quarter 2026 net income was $79.9 million ($1.63 per diluted share), with operating net income at $82.1 million ($1.68 per share); tangible book value per share increased to $47.86.

• Achieved margin expansion, disciplined pricing, and efficient cost structure, with a focus on prudent risk management and a diversified, low-cost deposit base.

• Expenses, excluding M&A charges, decreased 1.5% from the prior quarter, reflecting cost savings and absence of outsized prior expenses.

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

• 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); adjusted margin was 3.72% (up 8 bps); net interest income was $212.5 million.

• GAAP net income for Q1 2026 was $79.9 million; diluted EPS was $1.63; ROA 1.31%; ROE 9.02%; ROTCE 13.67%.

• Adjusted operating net income (excluding $3 million M&A expenses) was $82.1 million, or $1.68 EPS; adjusted ROA 1.35%; adjusted ROE 9.27%; adjusted ROTCE 14.05%.

• Loans decreased by $78.3 million (0.4%) sequentially, with C&I growth offset by CRE and residential runoff; deposits decreased by $29.3 million (0.1%) sequentially.

• Non-performing assets increased to $98.7 million (0.52% of loans); net charge-offs were $4.8 million (11 bps annualized); allowance for credit losses at 1.03% of total loans.

Outlook and guidance

• Profitability targets for Q4 2026 reaffirmed: ROA of 1.40% and ROTCE of 15%; NIM guidance for Q4 2026 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.

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

• Capital management and shareholder returns remain a priority, with further buyback authorization expected in Q2.