Independent Bank (INDB) investor relations material

Executive summary

• Q3 net income was $89.7M and diluted EPS was a quarterly-record $1.90, up 12% QoQ; operating PPNR return on average assets reached 1.95%.

• Relationship-led growth, disciplined underwriting, stable adjusted core margin and controlled expenses supported results; management reaffirmed returning at least 100% of profits through dividends and buybacks.

Financial highlights

• Total revenue was $261.9M, including $220.7M net interest income and $41.3M noninterest income; noninterest expense was $138.4M.

• Reported NIM was 3.89%, up 4 bps QoQ; adjusted core NIM was unchanged at 3.76%.

• Q3 provision for credit losses was $6.5M, versus $38.5M a year earlier; prior-year provision included acquired-loan credit costs.

• Noninterest expense fell 1.3% QoQ; Q3 included $2.2M of core conversion costs and a $1M benefit from fair valuation of life-insurance split-dollar benefits.

• 9M net income was $251.5M and adjusted operating net income was $253.7M, versus $176.1M in 9M 2025.

Outlook and guidance

• Q4 loan growth outlook: CRE and construction low-single-digit annualized; C&I mid-single-digit; home equity high-single-digit; residential mortgage flat to low-single-digit.

• Q4 period-end deposits expected to grow flat to low-single-digit annualized; net interest income expected to increase modestly QoQ.

• Assuming unchanged rates, Q4 reported NIM expected in the low 3.90% range, including ~10 bps from purchase-loan accretion; a Q4 Fed hike could reduce NIM by a couple of bps.

• Q4 noninterest income expected to rise low-single-digit; expenses excluding conversion costs expected to rise low-single-digit, with $1.0M–$1.5M of conversion costs.

• Management sees a path to 4% NIM by year-end 2027, supported by back-book repricing and more than $500M of securities cash flows; full-year 2027 guidance planned with Q4 results.