Independent Bank Corp. Reports Second Quarter Net Income of $61.8 Million

Rhea-AI Summary

Independent Bank Corp. (Nasdaq: INDB) reported a strong second quarter for 2022, with net income rising to $61.8 million ($1.32 per diluted share), up from $53.1 million in the first quarter. Total loans increased by $95.7 million, or 2.8%, driven by strong consumer lending; however, total assets decreased by 0.9% from the previous quarter. Net interest income also rose by 5.4% to $144.9 million, reflecting asset repricing in a rising interest rate environment. The bank's commitment to disciplined growth and strong core fundamentals was highlighted by the decrease in noninterest expenses and stable credit quality metrics.

Positive

• Net income increased by 16.5% from the first quarter to $61.8 million.
• Total loans rose by $95.7 million, or 2.8%, indicating strong consumer demand.
• Net interest income increased by 5.4% to $144.9 million due to asset repricing.
• Noninterest expense decreased by 5.2%, reflecting improved cost management.
• Robust return on average common equity at 8.49%, up from 7.16% in the previous quarter.

Negative

• Total assets decreased by 0.9% compared to the previous quarter.
• Core deposits declined, with total deposit balances down by $123.8 million, or 0.7%.
• Book value per share decreased by $0.27, or 0.4%, to $62.32.
• Tangible book value per share declined by $0.84, or 2.0% from the prior quarter.

 Performance driven by higher revenues

ROCKLAND, Mass.--(BUSINESS WIRE)-- Independent Bank Corp. (Nasdaq Global Select Market: INDB), parent of Rockland Trust Company, today announced 2022 second quarter net income of $61.8 million, or $1.32 per diluted share, compared to 2022 first quarter net income of $53.1 million, or $1.12 per diluted share, and 2022 first quarter operating net income of $58.2 million, or $1.23 per diluted share, which excluded pre-tax merger-related costs of $7.1 million associated with the acquisition of Meridian Bancorp, Inc. ("Meridian") and its subsidiary, East Boston Savings Bank ("EBSB"). There were no such costs included in 2022 second quarter results. Please refer to "Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP)" below for a reconciliation of net income to operating net income.

“We generated solid results while continuing our focus on disciplined growth. Our core fundamentals were on full display this quarter as evidenced by revenue and loan growth along with a continuing sound balance sheet,” said Christopher Oddleifson, the Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company. “Our ongoing success is a testament to the dedication of my talented colleagues and the enduring relationships they forge with each other and with the customers and communities that Rockland Trust serves. In these uncertain economic times, we remain committed to serving the needs of all our constituents and being the bank Where Each Relationship Matters^®.”

BALANCE SHEET

Total assets of $20.0 billion at June 30, 2022 decreased by $176.7 million, or 0.9%, from the prior quarter due primarily to the decline in liquid assets, and increased by $5.8 billion, or 40.8%, as compared to the year ago period, inclusive of the 2021 fourth quarter acquisition of Meridian.

Total loans at June 30, 2022 of $13.7 billion increased by $95.7 million, or 2.8% on an annualized basis compared to the prior quarter level. Excluding $69.0 million of net paydowns associated with the Paycheck Protection Program ("PPP"), the loan portfolio increased by $164.7 million, or 4.9% on an annualized basis, compared to the prior quarter. Organic loan growth was driven primarily by strong consumer loan activity, as the majority of residential real estate loan closings were retained on the balance sheet, resulting in 8.1% growth (32.4% annualized) for the quarter in that portfolio, while increased demand and line utilization fueled 3.9% (15.5% annualized) growth in home equity balances. On the commercial side, increased line utilization and higher closing volumes drove solid growth in both the commercial and industrial and construction categories, while elevated attrition outpaced strong closing activity within commercial real estate. Robust small business origination activity led to solid 2.8% growth for the quarter.

Deposit balances of $16.6 billion at June 30, 2022 decreased by $123.8 million, or 0.7%, from the prior quarter primarily attributable to continued runoff in higher-cost time deposits, while growth in municipal deposits was offset by personal and business deposit declines within the core categories. Core deposits comprised 86.8% of total deposits at June 30, 2022, an increase from 85.8% at March 31, 2022. The total cost of deposits for the quarter remained at 0.05%.

The securities portfolio increased by $73.2 million, or 2.6%, when compared to the prior quarter, reflecting the Company's ongoing strategy to deploy a portion of excess cash balances into investment securities. Total purchases for the quarter were $196.7 million, offset by an unrealized loss of $30.7 million related to the available for sale portfolio, as well as paydowns, calls, and maturities. Total securities represented 14.7% of total assets as of June 30, 2022, as compared to 14.2% at March 31, 2022

Stockholders' equity at June 30, 2022 decreased 3.2% when compared to the prior quarter, which decrease is primarily attributable to the Company's repurchase of approximately 1.3 million in shares during the second quarter of 2022 under the Company's buyback program, which totaled $103.4 million, along with elevated levels of unrealized losses on available for sale investment securities included in other comprehensive income, which were partially offset by strong earnings retention. As a result of this decrease in stockholders' equity, book value per share decreased by $0.27, or 0.4%, to $62.32 during the second quarter as compared to the prior quarter. The Company's ratio of common equity to assets of 14.37% at June 30, 2022 represented a decrease of 34 basis points from the prior quarter and an increase of 210 basis points from the year ago period. The Company's tangible book value per share at June 30, 2022 declined by $0.84, or 2.0%, from the prior quarter to $40.31, but represented an increase of 9.6% from the year ago period inclusive of the accretive impact of the Meridian acquisition. The Company's ratio of tangible common equity to tangible assets of 9.79% at June 30, 2022 represents a decrease of 39 basis points from the prior quarter and an increase of 90 basis points from the year ago period. Please refer to Appendix A for a detailed reconciliation of Non-GAAP metrics.

NET INTEREST INCOME

Net interest income for the second quarter increased 5.4% to $144.9 million compared to $137.4 million for the prior quarter, primarily reflecting the positive impact of asset repricing in the rising interest rate environment in conjunction with relatively stable funding costs, offset by reduced net PPP fee income of $1.7 million. The reported net interest margin increased by 18 basis points from the prior quarter to 3.27%, and increased 23 basis points to 3.23% on a core basis when excluding PPP fees, purchase accounting, and other non-recurring items. Please refer to Appendix C for additional details regarding the net interest margin.

NONINTEREST INCOME

Noninterest income of $27.9 million for the second quarter of 2022 was $1.6 million, or 6.2% higher compared to the prior quarter. Significant changes in noninterest income for the second quarter compared to the prior quarter included the following:

• Deposit account fees and interchange and ATM fees increased by $335,000, or 6.1%, and $418,000, or 11.6%, respectively, both driven by increased transaction volume during the second quarter.
  

• Investment management income increased by $656,000, or 7.6%, compared to the prior quarter primarily due to seasonal tax preparation fees as well as strong retail and insurance performance, offset partially by depressed market valuations during the second quarter. As of June 30, 2022, total assets under administration had decreased $568.0 million, or 9.9% to $5.2 billion, primarily due to declines in market values.
  

• Mortgage banking income decreased by $320,000, or 23.5%, despite stronger origination volumes, as a greater portion of new originations were retained in the Company's portfolio versus being sold in the secondary market as compared to the prior quarter.
  

• Loan level derivative income decreased by $168,000, or 27.8%, to $436,000, due primarily to lower customer volume.
  

• Other noninterest income increased by $506,000, or 10.7%, primarily attributable to increases in rental income from equipment leases and discounted purchases of Massachusetts historical tax credits.

NONINTEREST EXPENSE

Noninterest expense of $90.6 million for the second quarter of 2022 represented a $4.9 million, or 5.2%, decrease compared to the prior quarter. Significant changes in noninterest expense for the second quarter compared to the prior quarter included the following:

• Salaries and employee benefits increased by $827,000, or 1.7%, primarily due to increases in general salary expenses and incentive programs, partially offset by decreases in payroll taxes and retirement costs.
  

• Occupancy and equipment decreased by $1.7 million, or 12.5%, due mostly to decreased snow removal costs from the prior quarter of $1.2 million, utility expenses, and reduced rent related to several terminated locations acquired from EBSB.
  

• The Company incurred merger related costs of $7.1 million associated with the Meridian acquisition during the first quarter of 2022. No such costs were recorded during the second quarter.
  

• Other noninterest expense increased by $3.2 million, or 14.3%, due primarily to increases in consultant fees, elevated unrealized losses on equity securities, director expenses related to equity compensation granted during the quarter, advertising costs, and recruitment expense.

The Company generated a return on average assets and a return on average common equity of 1.24% and 8.49%, respectively, for the second quarter of 2022, as compared to 1.06% and 7.16%, respectively, or 1.17% and 7.85%, respectively, on an operating basis, for the prior quarter.

The Company’s tax rate for the second quarter of 2022 was 24.8%, compared to 24.4% for the prior quarter.

ASSET QUALITY

During the second quarter of 2022, the Company recorded total net charge-offs of $199,000, equating to 0.01% of average loans on an annualized basis. Nonperforming loans declined slightly to $55.9 million, or 0.41% of total loans at June 30, 2022, as compared to $56.6 million, or 0.42% of total loans at March 31, 2022. Delinquency as a percentage of total loans increased 11 basis points from the prior quarter to 0.40% at June 30, 2022.

In addition, total loans subject to a COVID-19 related payment deferral decreased significantly to $197.4 million, or 1.4% of total loans, at June 30, 2022, as compared to $304.5 million, or 2.2% of total loans, at March 31, 2022. All loans subject to a payment deferral at June 30, 2022 were performing in accordance with the modified terms.

The Company recorded no provision for credit losses during the second quarter of 2022 as continued strong credit quality metrics countered additional provisioning for net loan growth. The allowance for credit losses on total loans was $144.3 million, or 1.06% of total loans, at June 30, 2022, as compared to $144.5 million, or 1.06% of total loans, at March 31, 2022.

CONFERENCE CALL INFORMATION

Christopher Oddleifson, Chief Executive Officer, Robert Cozzone, Chief Operating Officer, and Mark Ruggiero, Chief Financial Officer, will host a conference call to discuss second quarter earnings at 10:00 a.m. Eastern Time on Friday, July 22, 2022. Internet access to the call is available on the Company’s website at https://INDB.RocklandTrust.com or via telephonic access by dial-in at 1-888-336-7153 reference: INDB. A replay of the call will be available by calling 1-877-344-7529, Replay Conference Number: 9471677 and will be available through July 29, 2022. Additionally, a webcast replay will be available on the Company's website until July 22, 2023.

ABOUT INDEPENDENT BANK CORP.

Independent Bank Corp. (NASDAQ Global Select Market: INDB) is the holding company for Rockland Trust Company, a full-service commercial bank headquartered in Massachusetts. Rockland Trust was named to The Boston Globe's "Top Places to Work" 2021 list, an honor earned for the 13th consecutive year. *In 2022, Rockland Trust was ranked #1 in Customer Satisfaction with Retail Banking in New England. Rockland Trust has a longstanding commitment to equity and inclusion. This commitment is underscored by initiatives such as Diversity and Inclusion leadership training, a colleague Allyship mentoring program, and numerous Employee Resource Groups focused on providing colleague support and education, reinforcing a culture of mutual respect and advancing professional development, and Rockland Trust's sponsorship of diverse community organizations through charitable giving and employee-based volunteerism. In addition, Rockland Trust is deeply committed to the communities it serves, as reflected in the overall "Outstanding" rating in its most recent Community Reinvestment Act performance evaluation. Rockland Trust offers a wide range of banking, investment, and insurance services. The Bank serves businesses and individuals through over 120 retail branches, commercial and residential lending centers, and investment management offices in eastern Massachusetts, including Greater Boston, South Shore, North Shore, Cape Cod and Islands, Worcester County, and Rhode Island. Rockland Trust also offers a full suite of mobile, online, and telephone banking services. Rockland Trust is an FDIC member and an Equal Housing Lender. To find out why Rockland Trust is the bank "Where Each Relationship Matters®," please visit RocklandTrust.com.

*Rockland Trust received the highest score in a tie in the New England Region of the J.D. Power 2022 U.S. Retail Banking Satisfaction Study of customers’ satisfaction with their primary bank. Visit jdpower.com/awards for more details.

This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations and business of the Company. These statements may be identified by such forward-looking terminology as “expect,” “achieve,” “plan,” “believe,” “future,” “positioned,” “continued,” “will,” “would,” “potential,” or similar statements or variations of such terms. Actual results may differ from those contemplated by these forward-looking statements.

Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to:

• further weakening in the United States economy in general and the regional and local economies within the New England region and the Company’s market area, including any future weakening caused by the COVID-19 pandemic and any uncertainty regarding the length and extent of economic contraction as a result of the pandemic;
• the potential effects of inflationary pressures, labor market shortages and supply chain issues;
• the instability or volatility in financial markets and unfavorable general economic or business conditions, globally, nationally or regionally, caused by geopolitical concerns, including as a result of the conflict between Russia and Ukraine;
• unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather, pandemics or other external events;
• adverse changes or volatility in the local real estate market;
• adverse changes in asset quality and any unanticipated credit deterioration in our loan portfolio including those related to one or more large commercial relationships;
• acquisitions may not produce results at levels or within time frames originally anticipated and may result in unforeseen integration issues or impairment of goodwill and/or other intangibles;
• additional regulatory oversight and related compliance costs;
• changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System;
• higher than expected tax expense, resulting from failure to comply with general tax laws and changes in tax laws;
• changes in market interest rates for interest earning assets and/or interest bearing liabilities and changes related to the phase-out of LIBOR;
• increased competition in the Company’s market areas;
• adverse weather, changes in climate, natural disasters, geopolitical concerns, including those arising from the conflict between Russia and Ukraine;
• the emergence of widespread health emergencies or pandemics, including the magnitude and duration of the COVID-19 pandemic, other public health crises or man-made events, and their impact on the Company's local economies or the Company's operations;
• a deterioration in the conditions of the securities markets;
• a deterioration of the credit rating for U.S. long-term sovereign debt;
• inability to adapt to changes in information technology, including changes to industry accepted delivery models driven by a migration to the internet as a means of service delivery;
• electronic fraudulent activity within the financial services industry, especially in the commercial banking sector;
• adverse changes in consumer spending and savings habits;
• the effect of laws and regulations regarding the financial services industry;
• changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) generally applicable to the Company’s business;
• the Company's potential judgments, claims, damages, penalties, fines and reputational damage resulting from pending or future litigation and regulatory and government actions, including as a result of our participation in and execution of government programs related to the COVID-19 pandemic;
• changes in accounting policies, practices and standards, as may be adopted by the regulatory agencies as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters including, but not limited to, changes to how the Company accounts for credit losses;
• cyber security attacks or intrusions that could adversely impact our businesses; and
• other unexpected material adverse changes in our operations or earnings.

Further, the foregoing factors may be exacerbated by the ultimate impact of the COVID-19 pandemic, which remains unknown at this time due to factors and future developments that are uncertain, unpredictable and, in many cases, beyond the Company's control, including the scope, duration and extent of the pandemic and any further resurgences, the efficacy, availability and public acceptance of vaccines, boosters or other treatments, actions taken by governmental authorities in response to the pandemic and the direct and indirect impact of these actions and the pandemic generally on the Company’s employees, customers, business and third-parties with which the Company conducts business.

The Company wishes to caution readers not to place undue reliance on any forward-looking statements as the Company’s business and its forward-looking statements involve substantial known and unknown risks and uncertainties described in the Company’s Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q (“Risk Factors”). Except as required by law, the Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise. Any public statements or disclosures by the Company following this release which modify or impact any of the forward-looking statements contained in this release will be deemed to modify or supersede such statements in this release. In addition to the information set forth in this press release, you should carefully consider the Risk Factors.

This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). This information includes operating net income and operating earnings per share ("EPS"), operating return on average assets, operating return on average common equity, operating return on average tangible common equity, core net interest margin ("core margin"), tangible book value per share and the tangible common equity ratio.

Operating net income, operating EPS, operating return on average assets and operating return on average common equity, exclude items that management believes are unrelated to the Company's core banking business such as merger and acquisition expenses, provision for credit losses on acquired loan portfolios, and other items, if applicable. Management uses operating net income and related ratios and operating EPS to measure the strength of the Company’s core banking business and to identify trends that may to some extent be obscured by such items. Management reviews its core margin to determine any items that may impact the net interest margin that may be one-time in nature or not reflective of its core operating environment, such as out-sized cash balances, unique low-yielding loans originated through government programs in response to the pandemic, or significant purchase accounting adjustments. Management believes that adjusting for these items to arrive at a core margin provides additional insight into the operating environment and how management decisions impact the net interest margin. Similarly, management reviews certain loan metrics such as growth rates and allowance as a percentage of total loans, adjusted to exclude loans that are not considered part of its core portfolio, which includes loans originated in association with government sponsored and guaranteed programs in response to the pandemic, to arrive at adjusted numbers more representative of the core growth of the portfolio and core reserve to loan ratio.

Management also supplements its evaluation of financial performance with analysis of tangible book value per share (which is computed by dividing stockholders' equity less goodwill and identifiable intangible assets, or "tangible common equity", by common shares outstanding), the tangible common equity ratio (which is computed by dividing tangible common equity by "tangible assets", defined as total assets less goodwill and other intangibles), and return on average tangible common equity (which is computed by dividing net income by average tangible common equity). The Company has included information on tangible book value per share, the tangible common equity ratio and return on average tangible common equity because management believes that investors may find it useful to have access to the same analytical tools used by management. As a result of merger and acquisition activity, the Company has recognized goodwill and other intangible assets in conjunction with business combination accounting principles. Excluding the impact of goodwill and other intangibles in measuring asset and capital values for the ratios provided, along with other bank standard capital ratios, provides a framework to compare the capital adequacy of the Company to other companies in the financial services industry.

These non-GAAP measures should not be viewed as a substitute for operating results and other financial measures determined in accordance with GAAP. An item which management excludes when computing these non-GAAP measures can be of substantial importance to the Company’s results for any particular quarter or year. The Company’s non-GAAP performance measures, including operating net income, operating EPS, operating return on average assets, operating return on average common equity, core margin, tangible book value per share and the tangible common equity ratio, are not necessarily comparable to non-GAAP performance measures which may be presented by other companies.

Category: Earnings Releases

INDEPENDENT BANK CORP. FINANCIAL SUMMARY
CONSOLIDATED BALANCE SHEETS
(Unaudited, dollars in thousands)													% Change			% Change
	June 30 2022				March 31 2022				June 30 2021				Jun 2022 vs.			Jun 2022 vs.
													Mar 2022			Jun 2021
Assets
Cash and due from banks	$	202,802			$	173,779			$	141,953			16.70	%		42.87	%
Interest-earning deposits with banks		1,273,465				1,666,580				2,114,477			(23.59	) %		(39.77	) %
Securities
Trading		3,637				3,956				3,439			(8.06	) %		5.76	%
Equities		21,181				22,611				22,975			(6.32	) %		(7.81	) %
Available for sale		1,501,949				1,552,731				794,516			(3.27	) %		89.04	%
Held to maturity		1,408,189				1,282,441				861,821			9.81	%		63.40	%
Total securities		2,934,956				2,861,739				1,682,751			2.56	%		74.41	%
Loans held for sale		2,358				6,144				25,561			(61.62	) %		(90.78	) %
Loans
Commercial and industrial		1,541,046				1,566,192				1,726,498			(1.61	) %		(10.74	) %
Commercial real estate		7,791,757				7,897,616				4,251,543			(1.34	) %		83.27	%
Commercial construction		1,194,577				1,153,945				496,539			3.52	%		140.58	%
Small business		205,953				200,405				182,863			2.77	%		12.63	%
Total commercial		10,733,333				10,818,158				6,657,443			(0.78	) %		61.22	%
Residential real estate		1,844,057				1,706,045				1,240,279			8.09	%		48.68	%
Home equity - first position		587,314				577,881				606,332			1.63	%		(3.14	) %
Home equity - subordinate positions		478,196				447,934				412,076			6.76	%		16.05	%
Total consumer real estate		2,909,567				2,731,860				2,258,687			6.50	%		28.82	%
Other consumer		32,864				30,009				22,858			9.51	%		43.77	%
Total loans		13,675,764				13,580,027				8,938,988			0.70	%		52.99	%
Less: allowance for credit losses		(144,319	)			(144,518	)			(102,357	)		(0.14	) %		41.00	%
Net loans		13,531,445				13,435,509				8,836,631			0.71	%		53.13	%
Federal Home Loan Bank stock		6,249				11,407				9,079			(45.22	) %		(31.17	) %
Bank premises and equipment, net		202,221				199,106				117,435			1.56	%		72.20	%
Goodwill		985,072				985,072				506,206			—	%		94.60	%
Other intangible assets		28,845				30,759				20,370			(6.22	) %		41.61	%
Cash surrender value of life insurance policies		292,807				291,192				242,963			0.55	%		20.52	%
Other assets		522,230				497,891				496,781			4.89	%		5.12	%
Total assets	$	19,982,450			$	20,159,178			$	14,194,207			(0.88	) %		40.78	%
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing demand deposits	$	5,562,174			$	5,537,156			$	4,370,852			0.45	%		27.26	%
Savings and interest checking accounts		6,347,601				6,247,806				4,445,903			1.60	%		42.77	%
Money market		3,419,170				3,579,820				2,352,897			(4.49	) %		45.32	%
Time certificates of deposit		1,310,603				1,398,610				817,319			(6.29	) %		60.35	%
Total deposits		16,639,548				16,763,392				11,986,971			(0.74	) %		38.81	%
Borrowings
Federal Home Loan Bank borrowings		25,652				25,660				35,693			(0.03	) %		(28.13	) %
Long-term borrowings, net		—				—				23,425			n/a			(100.00	) %
Junior subordinated debentures, net		62,854				62,854				62,852			—	%		—	%
Subordinated debentures, net		49,838				49,814				49,743			0.05	%		0.19	%
Total borrowings		138,344				138,328				171,713			0.01	%		(19.43	) %
Total deposits and borrowings		16,777,892				16,901,720				12,158,684			(0.73	) %		37.99	%
Other liabilities		333,373				292,019				293,901			14.16	%		13.43	%
Total liabilities		17,111,265				17,193,739				12,452,585			(0.48	) %		37.41	%
Stockholders' equity
Common stock		459				472				329			(2.75	) %		39.51	%
Additional paid in capital		2,146,333				2,247,518				948,130			(4.50	) %		126.38	%
Retained earnings		833,857				795,651				763,596			4.80	%		9.20	%
Accumulated other comprehensive income (loss), net of tax		(109,464	)			(78,202	)			29,567			39.98	%		(470.22	) %
Total stockholders' equity		2,871,185				2,965,439				1,741,622			(3.18	) %		64.86	%
Total liabilities and stockholders' equity	$	19,982,450			$	20,159,178			$	14,194,207			(0.88	) %		40.78	%

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, dollars in thousands, except per share data)
	Three Months Ended
													% Change			% Change
	June 30 2022				March 31 2022				June 30 2021				Jun 2022 vs.			Jun 2022 vs.
													Mar 2022			Jun 2021
Interest income
Interest on federal funds sold and short-term investments	$	2,817			$	886			$	513			217.95	%		449.12	%
Interest and dividends on securities		11,283				10,044				7,189			12.34	%		56.95	%
Interest and fees on loans		133,988				129,625				88,814			3.37	%		50.86	%
Interest on loans held for sale		35				64				186			(45.31	) %		(81.18	) %
Total interest income		148,123				140,619				96,702			5.34	%		53.17	%
Interest expense
Interest on deposits		2,111				2,107				2,017			0.19	%		4.66	%
Interest on borrowings		1,151				1,080				1,331			6.57	%		(13.52	) %
Total interest expense		3,262				3,187				3,348			2.35	%		(2.57	) %
Net interest income		144,861				137,432				93,354			5.41	%		55.17	%
Provision for credit losses		—				(2,000	)			(5,000	)		(100.00	) %		(100.00	) %
Net interest income after provision for credit losses		144,861				139,432				98,354			3.89	%		47.29	%
Noninterest income
Deposit account fees		5,828				5,493				3,822			6.10	%		52.49	%
Interchange and ATM fees		4,027				3,609				3,068			11.58	%		31.26	%
Investment management		9,329				8,673				8,872			7.56	%		5.15	%
Mortgage banking income		1,042				1,362				2,705			(23.49	) %		(61.48	) %
Increase in cash surrender value of life insurance policies		1,871				1,795				1,589			4.23	%		17.75	%
Gain on life insurance benefits		123				—				—			100.00	%		100.00	%
Loan level derivative income		436				604				116			(27.81	) %		275.86	%
Other noninterest income		5,242				4,736				4,795			10.68	%		9.32	%
Total noninterest income		27,898				26,272				24,967			6.19	%		11.74	%
Noninterest expenses
Salaries and employee benefits		49,538				48,711				42,635			1.70	%		16.19	%
Occupancy and equipment expenses		11,637				13,302				8,706			(12.52	) %		33.67	%
Data processing and facilities management		2,247				2,372				1,686			(5.27	) %		33.27	%
FDIC assessment		1,743				1,805				775			(3.43	) %		124.90	%
Merger and acquisition expense		—				7,100				1,731			(100.00	) %		(100.00	) %
Other noninterest expenses		25,397				22,210				17,769			14.35	%		42.93	%
Total noninterest expenses		90,562				95,500				73,302			(5.17	) %		23.55	%
Income before income taxes		82,197				70,204				50,019			17.08	%		64.33	%
Provision for income taxes		20,421				17,107				12,447			19.37	%		64.06	%
Net Income	$	61,776			$	53,097			$	37,572			16.35	%		64.42	%
Weighted average common shares (basic)		46,665,101				47,366,753				33,033,578
Common share equivalents		14,096				20,711				21,270
Weighted average common shares (diluted)		46,679,197				47,387,464				33,054,848
Basic earnings per share	$	1.32			$	1.12			$	1.14			17.86	%		15.79	%
Diluted earnings per share	$	1.32			$	1.12			$	1.14			17.86	%		15.79	%
Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):
Net income	$	61,776			$	53,097			$	37,572
Noninterest expense components
Add - merger and acquisition expenses		—				7,100				1,731
Noncore increases to income before taxes		—				7,100				1,731
Net tax benefit associated with noncore items (1)		—				(1,995	)			(487	)
Noncore increases to net income		—				5,105				1,244
Operating net income (Non-GAAP)	$	61,776			$	58,202			$	38,816			6.14	%		59.15	%
Diluted earnings per share, on an operating basis	$	1.32			$	1.23			$	1.17			7.32	%		12.82	%
(1) The net tax benefit associated with noncore items is determined by assessing whether each noncore item is included or excluded from net taxable income and applying the Company's combined marginal tax rate to only those items included in net taxable income.
Performance ratios
Net interest margin (FTE)		3.27	%			3.09	%			2.99	%
Return on average assets (GAAP) (calculated by dividing net income by average assets)		1.24	%			1.06	%			1.08	%
Return on average assets on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average assets)		1.24	%			1.17	%			1.12	%
Return on average common equity (GAAP) (calculated by dividing net income by average common equity)		8.49	%			7.16	%			8.70	%
Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average common equity)		8.49	%			7.85	%			8.98	%
Noninterest income as a % of total revenue (calculated by dividing total noninterest income by net interest income plus total noninterest income)		16.15	%			16.05	%			21.10	%
Noninterest income as a % of total revenue on an operating basis (Non-GAAP) (calculated by dividing total noninterest income on an operating basis by net interest income plus total noninterest income)		16.15	%			16.05	%			21.10	%
Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)		52.42	%			58.34	%			61.95	%
Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)		52.42	%			54.00	%			60.49	%
Return on average tangible common equity (Non-GAAP) (calculated by dividing net income by average tangible common equity)		13.01	%			10.82	%			12.50	%
Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average tangible common equity)		13.01	%			11.86	%			12.91	%

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, dollars in thousands, except per share data)
		Six Months Ended
										% Change
		June 30 2022				June 30 2021				Jun 2022 vs.
										Jun 2021
Interest income
Interest on federal funds sold and short-term investments		$	3,703			$	839			341.36	%
Interest and dividends on securities			21,327				13,821			54.31	%
Interest and fees on loans			263,613				181,197			45.48	%
Interest on loans held for sale			99				482			(79.46	) %
Total interest income			288,742				196,339			47.06	%
Interest expense
Interest on deposits			4,218				4,728			(10.79	) %
Interest on borrowings			2,231				2,673			(16.54	) %
Total interest expense			6,449				7,401			(12.86	) %
Net interest income			282,293				188,938			49.41	%
Provision for credit losses			(2,000	)			(7,500	)		(73.33	) %
Net interest income after provision for credit losses			284,293				196,438			44.72	%
Noninterest income
Deposit account fees			11,321				7,406			52.86	%
Interchange and ATM fees			7,636				5,788			31.93	%
Investment management			18,002				17,176			4.81	%
Mortgage banking income			2,404				8,445			(71.53	) %
Increase in cash surrender value of life insurance policies			3,666				2,912			25.89	%
Gain on life insurance benefits			123				258			(52.33	) %
Loan level derivative income			1,040				289			259.86	%
Other noninterest income			9,978				7,939			25.68	%
Total noninterest income			54,170				50,213			7.88	%
Noninterest expenses
Salaries and employee benefits			98,249				82,524			19.06	%
Occupancy and equipment expenses			24,939				17,979			38.71	%
Data processing and facilities management			4,619				3,351			37.84	%
FDIC assessment			3,548				1,825			94.41	%
Merger and acquisition expense			7,100				1,731			310.17	%
Other noninterest expenses			47,607				35,574			33.83	%
Total noninterest expenses			186,062				142,984			30.13	%
Income before income taxes			152,401				103,667			47.01	%
Provision for income taxes			37,528				24,384			53.90	%
Net Income		$	114,873			$	79,283			44.89	%
Weighted average common shares (basic)			47,013,989				33,014,561
Common share equivalents			17,403				25,085
Weighted average common shares (diluted)			47,031,392				33,039,646
Basic earnings per share		$	2.44			$	2.40			1.67	%
Diluted earnings per share		$	2.44			$	2.40			1.67	%
Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):
Net Income		$	114,873			$	79,283
Noninterest expense components
Add - merger and acquisition expenses			7,100				1,731
Noncore increases to income before taxes			7,100				1,731
Net tax benefit associated with noncore items (1)			(1,995	)			(487	)
Noncore increases to net income		$	5,105			$	1,244
Operating net income (Non-GAAP)		$	119,978			$	80,527			48.99	%
Diluted earnings per share, on an operating basis		$	2.55			$	2.44			4.51	%
(1) The net tax benefit associated with noncore items is determined by assessing whether each noncore item is included or excluded from net taxable income and applying the Company's combined marginal tax rate to only those items included in net taxable income.
Performance ratios
Net interest margin (FTE)			3.18	%			3.12	%
Return on average assets (GAAP) (calculated by dividing net income by average assets)			1.15	%			1.17	%
Return on average assets on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average assets)			1.21	%			1.19	%
Return on average common equity (GAAP) (calculated by dividing net income by average common equity)			7.82	%			9.28	%
Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average common equity)			8.16	%			9.42	%
Return on average tangible common equity (GAAP) (calculated by dividing net income by average tangible common equity)			11.89	%			13.38	%
Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing Net operating net income by average tangible common equity)			12.42	%			13.59	%
Noninterest income as a % of total revenue (calculated by dividing total noninterest income by net interest income plus total noninterest income)			16.10	%			21.00	%
Noninterest income as a % of total revenue on an operating basis (Non-GAAP) (calculated by dividing total noninterest income on an operating basis by net interest income plus total noninterest income)			16.10	%			21.00	%
Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)			55.30	%			59.79	%
Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)			53.19	%			59.06	%
Return on average tangible common equity (Non-GAAP) (calculated by dividing net income by average tangible common equity)			11.89	%			13.38	%
Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average tangible common equity)			12.42	%			13.59	%

ASSET QUALITY
(Unaudited, dollars in thousands)		Nonperforming Assets At
		June 30 2022				March 31 2022				June 30 2021
Nonperforming loans
Commercial & industrial loans		$	3,518			$	3,517			$	20,831
Commercial real estate loans			40,074				40,470				9,031
Small business loans			31				20				558
Residential real estate loans			8,563				8,457				12,786
Home equity			3,514				3,761				4,517
Other consumer			215				393				95
Total nonperforming loans			55,915				56,618				47,818
Total nonperforming assets		$	55,915			$	56,618			$	47,818
Nonperforming loans/gross loans			0.41	%			0.42	%			0.53	%
Nonperforming assets/total assets			0.28	%			0.28	%			0.34	%
Allowance for credit losses/nonperforming loans			258.10	%			255.25	%			214.06	%
Allowance for credit losses/total loans			1.06	%			1.06	%			1.15	%
Delinquent loans/total loans			0.40	%			0.29	%			0.11	%
		Nonperforming Assets Reconciliation for the Three Months Ended
		June 30 2022				March 31 2022				June 30 2021
Nonperforming assets beginning balance		$	56,618			$	27,820			$	59,201
New to nonperforming			2,822				33,754				2,233
Loans charged-off			(545	)			(706	)			(481	)
Loans paid-off /sold			(2,239	)			(1,485	)			(10,364	)
Loans restored to performing status			(738	)			(2,702	)			(2,771	)
Other			(3	)			(63	)			—
Nonperforming assets ending balance		$	55,915			$	56,618			$	47,818

		Net Charge-Offs (Recoveries)
		Three Months Ended												Six Months Ended
		June 30 2022				March 31 2022				June 30 2021				June 30 2022				June 30 2021
Net charge-offs (recoveries)
Commercial and industrial loans		$	(29	)		$	(13	)		$	107			$	(42	)		$	3,374
Commercial real estate loans			—				(3	)			—				(3	)			(57	)
Small business loans			(22	)			22				31				—				86
Residential real estate loans			—				—				—				—				(1	)
Home equity			84				(2	)			24				82				11
Other consumer			166				400				30				566				122
Total net charge-offs		$	199			$	404			$	192			$	603			$	3,535
Net charge-offs to average loans (annualized)			0.01	%			0.01	%			0.01	%			0.01	%			0.08	%

		Troubled Debt Restructurings At
		June 30 2022				March 31 2022				June 30 2021
Troubled debt restructurings on accrual status		$	11,734			$	13,288			$	19,495
Troubled debt restructurings on nonaccrual status			1,677				1,972				20,212
Total troubled debt restructurings		$	13,411			$	15,260			$	39,707
BALANCE SHEET AND CAPITAL RATIOS
		June 30 2022				March 31 2022				June 30 2021
Gross loans/total deposits			82.19	%			81.01	%			74.57	%
Common equity tier 1 capital ratio (1)			13.90	%			14.45	%			13.31	%
Tier 1 leverage capital ratio (1)			10.42	%			10.62	%			9.41	%
Common equity to assets ratio GAAP			14.37	%			14.71	%			12.27	%
Tangible common equity to tangible assets ratio (2)			9.79	%			10.18	%			8.89	%
Book value per share GAAP		$	62.32			$	62.59			$	52.72
Tangible book value per share (2)		$	40.31			$	41.15			$	36.78

(1) Estimated number for June 30, 2022.

(2) See Appendix A for detailed reconciliation from GAAP to Non-GAAP ratios.

INDEPENDENT BANK CORP. SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited, dollars in thousands)		Three Months Ended
		June 30, 2022									March 31, 2022									June 30, 2021
					Interest									Interest									Interest
		Average			Earned/			Yield/			Average			Earned/			Yield/			Average			Earned/			Yield/
		Balance			Paid (1)			Rate			Balance			Paid (1)			Rate			Balance			Paid (1)			Rate
Interest-earning assets
Interest-earning deposits with banks, federal funds sold, and short term investments		$	1,377,286		$	2,817		0.82	%		$	1,906,164		$	886		0.19	%		$	1,882,285		$	513		0.11	%
Securities
Securities - trading			3,863			—		—	%			3,732			—		—	%			3,359			—		—	%
Securities - taxable investments			2,889,245			11,281		1.57	%			2,726,281			10,043		1.49	%			1,514,336			7,184		1.90	%
Securities - nontaxable investments (1)			197			3		6.11	%			201			1		2.02	%			555			6		4.34	%
Total securities		$	2,893,305		$	11,284		1.56	%		$	2,730,214		$	10,044		1.49	%		$	1,518,250		$	7,190		1.90	%
Loans held for sale			3,842			35		3.65	%			9,475			64		2.74	%			28,279			186		2.64	%
Loans
Commercial and industrial (1)			1,537,883			17,496		4.56	%			1,535,619			17,031		4.50	%			1,944,026			20,351		4.20	%
Commercial real estate (1)			7,827,442			76,771		3.93	%			7,911,349			76,030		3.90	%			4,196,171			41,532		3.97	%
Commercial construction			1,193,353			13,456		4.52	%			1,190,659			12,268		4.18	%			514,935			4,777		3.72	%
Small business			203,947			2,656		5.22	%			194,819			2,416		5.03	%			178,525			2,302		5.17	%
Total commercial			10,762,625			110,379		4.11	%			10,832,446			107,745		4.03	%			6,833,657			68,962		4.05	%
Residential real estate			1,761,986			14,879		3.39	%			1,649,157			13,697		3.37	%			1,226,520			11,058		3.62	%
Home equity			1,046,933			9,178		3.52	%			1,032,308			8,662		3.40	%			1,024,798			8,591		3.36	%
Total consumer real estate			2,808,919			24,057		3.44	%			2,681,465			22,359		3.38	%			2,251,318			19,649		3.50	%
Other consumer			31,554			507		6.44	%			29,814			489		6.65	%			22,471			411		7.34	%
Total loans		$	13,603,098		$	134,943		3.98	%		$	13,543,725		$	130,593		3.91	%		$	9,107,446		$	89,022		3.92	%
Total interest-earning assets		$	17,877,531		$	149,079		3.34	%		$	18,189,578		$	141,587		3.16	%		$	12,536,260		$	96,911		3.10	%
Cash and due from banks			190,501									171,533									142,198
Federal Home Loan Bank stock			6,249									11,407									9,410
Other assets			1,855,351									1,851,196									1,258,056
Total assets		$	19,929,632								$	20,223,714								$	13,945,924
Interest-bearing liabilities
Deposits
Savings and interest checking accounts		$	6,192,761		$	710		0.05	%		$	6,255,843		$	598		0.04	%		$	4,339,645		$	384		0.04	%
Money market			3,486,017			607		0.07	%			3,608,793			559		0.06	%			2,347,852			429		0.07	%
Time deposits			1,356,507			794		0.23	%			1,466,651			950		0.26	%			843,090			1,204		0.57	%
Total interest-bearing deposits		$	11,035,285		$	2,111		0.08	%		$	11,331,287		$	2,107		0.08	%		$	7,530,587		$	2,017		0.11	%
Borrowings
Federal Home Loan Bank borrowings			25,654			123		1.92	%			25,696			133		2.10	%			35,704			191		2.15	%
Long-term borrowings			—			—		—	%			9,063			31		1.39	%			23,417			94		1.61	%
Junior subordinated debentures			62,854			410		2.62	%			62,853			299		1.93	%			62,852			429		2.74	%
Subordinated debentures			49,825			618		4.97	%			49,800			617		5.02	%			49,730			618		4.98	%
Total borrowings		$	138,333		$	1,151		3.34	%		$	147,412		$	1,080		2.97	%		$	171,703		$	1,332		3.11	%
Total interest-bearing liabilities		$	11,173,618		$	3,262		0.12	%		$	11,478,699		$	3,187		0.11	%		$	7,702,290		$	3,349		0.17	%
Noninterest-bearing demand deposits			5,546,041									5,443,465									4,237,135
Other liabilities			290,467									293,597									273,449
Total liabilities		$	17,010,126								$	17,215,761								$	12,212,874
Stockholders' equity			2,919,506									3,007,953									1,733,050
Total liabilities and stockholders' equity		$	19,929,632								$	20,223,714								$	13,945,924
Net interest income					$	145,817								$	138,400								$	93,562
Interest rate spread (2)								3.22	%								3.05	%								2.93	%
Net interest margin (3)								3.27	%								3.09	%								2.99	%
Supplemental Information
Total deposits, including demand deposits		$	16,581,326		$	2,111					$	16,774,752		$	2,107					$	11,767,722		$	2,017
Cost of total deposits								0.05	%								0.05	%								0.07	%
Total funding liabilities, including demand deposits		$	16,719,659		$	3,262					$	16,922,164		$	3,187					$	11,939,425		$	3,349
Cost of total funding liabilities								0.08	%								0.08	%								0.11	%

(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $956,000, $968,000, and $209,000 for the three months ended June 30, 2022, March 31, 2022, and June 30, 2021, respectively, determined by applying the Company's marginal tax rates in effect during each respective quarter.

(2) Interest rate spread represents the difference between weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(3) Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

		Six Months Ended
		June 30, 2022									June 30, 2021
					Interest									Interest
		Average			Earned/			Yield/			Average			Earned/			Yield/
		Balance			Paid			Rate			Balance			Paid			Rate
Interest-earning assets
Interest earning deposits with banks, federal funds sold, and short term investments		$	1,640,264		$	3,703		0.46	%		$	1,603,407		$	839		0.11	%
Securities
Securities - trading			3,798			—		—	%			3,150			—		—	%
Securities - taxable investments			2,808,213			21,324		1.53	%			1,383,122			13,811		2.01	%
Securities - nontaxable investments (1)			199			4		4.05	%			599			12		4.04	%
Total securities		$	2,812,210		$	21,328		1.53	%		$	1,386,871		$	13,823		2.01	%
Loans held for sale			6,643			99		3.01	%			38,907			482		2.50	%
Loans
Commercial and industrial (1)			1,536,757			34,527		4.53	%			2,029,075			43,397		4.31	%
Commercial real estate (1)			7,869,164			152,800		3.92	%			4,176,202			81,908		3.96	%
Commercial construction			1,192,013			25,724		4.35	%			534,933			10,060		3.79	%
Small business			199,408			5,072		5.13	%			176,434			4,583		5.24	%
Total commercial			10,797,342			218,123		4.07	%			6,916,644			139,948		4.08	%
Residential real estate			1,705,883			28,576		3.38	%			1,248,778			23,494		3.79	%
Home equity			1,039,661			17,840		3.46	%			1,037,446			17,348		3.37	%
Total consumer real estate			2,745,544			46,416		3.41	%			2,286,224			40,842		3.60	%
Other consumer			30,690			996		6.54	%			22,087			843		7.70	%
Total loans		$	13,573,576		$	265,535		3.94	%		$	9,224,955		$	181,633		3.97	%
Total interest-earning assets		$	18,032,693		$	290,665		3.25	%		$	12,254,140		$	196,777		3.24	%
Cash and due from banks			181,069									148,499
Federal Home Loan Bank stock			8,814									9,828
Other assets			1,853,285									1,249,898
Total assets		$	20,075,861								$	13,662,365
Interest-bearing liabilities
Deposits
Savings and interest checking accounts		$	6,224,128		$	1,308		0.04	%		$	4,225,331		$	807		0.04	%
Money market			3,547,066			1,166		0.07	%			2,318,106			950		0.08	%
Time deposits			1,411,275			1,744		0.25	%			874,676			2,971		0.68	%
Total interest-bearing deposits		$	11,182,469		$	4,218		0.08	%		$	7,418,113		$	4,728		0.13	%
Borrowings
Federal Home Loan Bank borrowings			25,675			256		2.01	%			35,746			379		2.14	%
Long-term borrowings			4,506			31		1.39	%			25,818			205		1.60	%
Junior subordinated debentures			62,854			709		2.27	%			62,851			855		2.74	%
Subordinated debentures			49,813			1,235		5.00	%			49,717			1,235		5.01	%
Total borrowings		$	142,848		$	2,231		3.15	%		$	174,132		$	2,674		3.10	%
Total interest-bearing liabilities		$	11,325,317		$	6,449		0.11	%		$	7,592,245		$	7,402		0.20	%
Noninterest-bearing demand deposits			5,495,036									4,067,235
Other liabilities			292,023									279,620
Total liabilities		$	17,112,376								$	11,939,100
Stockholders' equity			2,963,485									1,723,265
Total liabilities and stockholders' equity		$	20,075,861								$	13,662,365
Net interest income					$	284,216								$	189,375
Interest rate spread (2)								3.14	%								3.04	%
Net interest margin (3)								3.18	%								3.12	%
Supplemental Information
Total deposits, including demand deposits		$	16,677,505		$	4,218					$	11,485,348		$	4,728
Cost of total deposits								0.05	%								0.08	%
Total funding liabilities, including demand deposits		$	16,820,353		$	6,449					$	11,659,480		$	7,402
Cost of total funding liabilities								0.08	%								0.13	%

(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $1.9 million and $438,000 for the six months ended June 30, 2022 and 2021, respectively.

(2) Interest rate spread represents the difference between weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(3) Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

Certain amounts in prior year financial statements have been reclassified to conform to the current year's presentation.

APPENDIX A: NON-GAAP Reconciliation of Balance Sheet Metrics

(Unaudited, dollars in thousands, except per share data)

The following table summarizes the calculation of the Company's tangible common equity to tangible assets ratio and tangible book value per share, at the dates indicated:

		June 30 2022				March 31 2022				June 30 2021
Tangible common equity		(Dollars in thousands, except per share data)
Stockholders' equity (GAAP)		$	2,871,185			$	2,965,439			$	1,741,622		(a)
Less: Goodwill and other intangibles			1,013,917				1,015,831				526,576
Tangible common equity		$	1,857,268			$	1,949,608			$	1,215,046		(b)
Tangible assets
Assets (GAAP)		$	19,982,450			$	20,159,178			$	14,194,207		(c)
Less: Goodwill and other intangibles			1,013,917				1,015,831				526,576
Tangible assets		$	18,968,533			$	19,143,347			$	13,667,631		(d)
Common Shares			46,069,761				47,377,125				33,037,859		(e)
Common equity to assets ratio (GAAP)			14.37	%			14.71	%			12.27	%	(a/c)
Tangible common equity to tangible assets ratio (Non-GAAP)			9.79	%			10.18	%			8.89	%	(b/d)
Book value per share (GAAP)		$	62.32			$	62.59			$	52.72		(a/e)
Tangible book value per share (Non-GAAP)		$	40.31			$	41.15			$	36.78		(b/e)

APPENDIX B: Non-GAAP Reconciliation of Earnings Metrics

(Unaudited, dollars in thousands)

The following table summarizes the impact of noncore items on the Company's calculation of noninterest income and noninterest expense, the impact of noncore items on noninterest income as a percentage of total revenue and the efficiency ratio, as well as the average tangible common equity used to calculate return on average tangible common equity and operating return on tangible common equity for the periods indicated:

	Three Months Ended												Six Months Ended
	June 30 2022				March 31 2022				June 30 2021				June 30 2022				June 30 2021
Net interest income (GAAP)	$	144,861			$	137,432			$	93,354			$	282,293			$	188,938		(a)
Noninterest income (GAAP)	$	27,898			$	26,272			$	24,967			$	54,170			$	50,213		(b)
Noninterest income on an operating basis (Non-GAAP)	$	27,898			$	26,272			$	24,967			$	54,170			$	50,213		(c)
Noninterest expense (GAAP)	$	90,562			$	95,500			$	73,302			$	186,062			$	142,984		(d)
Less:
Merger and acquisition expense		—				7,100				1,731				7,100				1,731
Noninterest expense on an operating basis (Non-GAAP)	$	90,562			$	88,400			$	71,571			$	178,962			$	141,253		(e)
Total revenue (GAAP)	$	172,759			$	163,704			$	118,321			$	336,463			$	239,151		(a+b)
Total operating revenue (Non-GAAP)	$	172,759			$	163,704			$	118,321			$	336,463			$	239,151		(a+c)
Net income (GAAP)	$	61,776			$	53,097			$	37,572			$	114,873			$	79,283
Operating net income (Non-GAAP) (See income statement for reconciliation of GAAP to Non-GAAP)	$	61,776			$	58,202			$	38,816			$	119,978			$	80,527
Average common equity (GAAP)	$	2,919,506			$	3,007,953			$	1,733,050			$	2,963,485			$	1,723,265
Less: Average goodwill and other intangibles		1,014,953				1,017,040				527,337				1,015,991				528,050
Tangible average tangible common equity (Non-GAAP)	$	1,904,553			$	1,990,913			$	1,205,713			$	1,947,494			$	1,195,215
Ratios
Noninterest income as a % of total revenue (GAAP)		16.15	%			16.05	%			21.10	%			16.10	%			21.00	%	(b/(a+b))
Noninterest income as a % of total revenue on an operating basis (Non-GAAP)		16.15	%			16.05	%			21.10	%			16.10	%			21.00	%	(c/(a+c))
Efficiency ratio (GAAP)		52.42	%			58.34	%			61.95	%			55.30	%			59.79	%	(d/(a+b))
Efficiency ratio on an operating basis (Non-GAAP)		52.42	%			54.00	%			60.49	%			53.19	%			59.06	%	(e/(a+c))
Return on average tangible common equity (Non-GAAP) (calculated by dividing net income by average tangible common equity)		13.01	%			10.82	%			12.50	%			11.89	%			13.38	%
Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average tangible common equity)		13.01	%			11.86	%			12.91	%			12.42	%			13.59	%

APPENDIX C: Net Interest Margin Analysis & Non-GAAP Reconciliation of Core Margin

	Three Months Ended
	June 30, 2022									March 31, 2022
	Volume			Interest			Margin Impact			Volume			Interest			Margin Impact
	(Dollars in thousands)
Reported total interest earning assets	$	17,877,531		$	145,817		3.27	%		$	18,189,578		$	138,403		3.09	%
Core adjustments:
PPP volume @ 1%		(60,969	)		(149	)					(148,384	)		(362	)
PPP fee amortization					(1,762	)								(3,486	)
Total PPP impact		(60,969	)		(1,911	)	(0.03	) %			(148,384	)		(3,848	)	(0.07	) %
Acquisition related:
Loan fair value amortization (accretion)					823									(83	)
CD fair market accretion					(437	)								(684	)
					386		0.01	%						(767	)	(0.02	) %
Nonaccrual interest					205		—	%						310		0.01	%
Other noncore adjustments					(1,106	)	(0.02	) %						(773	)	(0.01	) %
Core margin (Non-GAAP)	$	17,816,562		$	143,391		3.23	%		$	18,041,194		$	133,325		3.00	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220720006050/en/

Chris Oddleifson

President and Chief Executive Officer

(781) 982-6660

Mark J. Ruggiero

Chief Financial Officer and

Chief Accounting Officer

(781) 982-6281

Source: Independent Bank Corp.

FAQ

What were Independent Bank Corp.'s earnings for Q2 2022?

Independent Bank Corp. reported earnings of $61.8 million, or $1.32 per diluted share, for Q2 2022.

How much did total loans increase for Independent Bank Corp. in Q2 2022?

Total loans increased by $95.7 million, or 2.8%, in Q2 2022.

What is the stock symbol for Independent Bank Corp.?

The stock symbol for Independent Bank Corp. is INDB.

What was the net interest income for Independent Bank Corp. in Q2 2022?

Net interest income for Q2 2022 was $144.9 million, a 5.4% increase from the previous quarter.

Did Independent Bank Corp. experience any changes in asset quality in Q2 2022?

Yes, the company recorded net charge-offs of $199,000, equating to 0.01% of average loans, with nonperforming loans declining slightly.