Independent Bank (INDB) investor relations material

Executive summary

• Achieved strong Q2 2026 results with net income of $81.8 million ($1.70 per diluted share), supported by solid deposit growth, C&I loan growth, and improved adjusted NIM, with no merger-related costs incurred.

• Maintained a diversified, low-cost deposit base and prudent risk management, with a strong balance sheet and significant capital buffer.

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

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

Financial highlights

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

• Adjusted net interest margin expanded 4 bps to 3.76% sequentially; reported NIM at 3.85%.

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

• Noninterest expense fell 1.9% to $140.3 million, with no merger expenses in Q2 2026.

• Efficiency ratio improved to 55.37% from 56.55% in Q1 2026.

Outlook and guidance

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

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

• Forward-looking statements caution on economic, regulatory, and market risks, including competition, interest rates, and geopolitical events.