Independent Bank Corp. Reports Third Quarter Net Income of $71.9 Million

Rhea-AI Summary

Independent Bank Corp. (INDB) reported a net income of $71.9 million for Q3 2022, up from $61.8 million in Q2 2022, driven by improved net interest income that increased 12.2% to $162.6 million. The return on average assets and equity rose to 1.43% and 9.90%, respectively. Total assets decreased by 1.4% from the prior quarter to $19.7 billion. The company repurchased 443,000 shares in Q3, completing its repurchase program. A new stock buyback plan of $120 million is set to expire on October 19, 2023.

Positive

• Net income increased by 16.3% to $71.9 million compared to Q2 2022.
• Net interest income rose by 12.2% to $162.6 million.
• Return on average assets improved to 1.43% from 1.24% in the prior quarter.
• Core deposits increased, comprising 87.8% of total deposits.

Negative

• Total assets decreased by 1.4% from the prior quarter.
• Deposit balances fell by 1.8%, driven by runoff in higher-cost deposits.
• Stockholders' equity decreased by 1.9% primarily due to share repurchases.

Higher revenues drive earnings growth

ROCKLAND, Mass.--(BUSINESS WIRE)-- Independent Bank Corp. (Nasdaq Global Select Market: INDB), parent of Rockland Trust Company, today announced 2022 third quarter net income of $71.9 million, or $1.57 per diluted share, compared to 2022 second quarter net income of $61.8 million, or $1.32 per diluted share, driven primarily by strong net interest margin expansion and profitable deployment of liquid assets.

The Company generated a return on average assets and a return on average common equity of 1.43% and 9.90%, respectively, for the third quarter of 2022, as compared to 1.24% and 8.49%, respectively, for the prior quarter.

“The strength of our third quarter performance is attributable to our long-term, sustained focus on building core relationships and disciplined growth combined with astute balance sheet management,” said Christopher Oddleifson, the Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company. “Our results reflect the tireless commitment and dedication of our colleagues, who each day live out our shared mission of forging enduring relationships with each other and with the customers and communities that Rockland Trust serves.”

BALANCE SHEET

Total assets of $19.7 billion at September 30, 2022 decreased by $279.2 million, or 1.4% from the prior quarter due primarily to a decline in cash balances, and increased by $5.2 billion, or 35.6%, as compared to the year ago period, inclusive of the 2021 fourth quarter acquisition of Meridian Bancorp, Inc. ("Meridian") and its subsidiary, East Boston Savings Bank, which closed during the fourth quarter of 2021.

Total loans at September 30, 2022 of $13.7 billion increased by $24.6 million, or 0.7% on an annualized basis compared to the prior quarter level. Excluding $19.4 million of net paydowns associated with the Paycheck Protection Program ("PPP"), the loan portfolio increased by $44.0 million, or 1.3% on an annualized basis, compared to the prior quarter. Strong consumer loan activity continued to be the primary driver of organic loan growth, as the majority of residential real estate loan closings were retained on the balance sheet, resulting in 6.2% growth (24.8% annualized) for the quarter in that portfolio, while increased demand and line utilization fueled 2.0% (8.1% annualized) growth in home equity balances for the quarter. Excluding PPP loans, commercial and industrial balances increased 1.8% (7.0% annualized) during the quarter, driven primarily by increased line utilization and strong closing volumes, but were offset by attrition within the commercial real estate and construction categories resulting in a total commercial portfolio decrease of 1.0%.

Deposit balances of $16.3 billion at September 30, 2022 decreased by $300.6 million, or 1.8%, from the prior quarter primarily attributable to continued runoff in higher-cost time and certain rate sensitive deposits. Despite the reduction in total balances, non-interest bearing deposits rose by $60.1 million, or 1.1%, in the third quarter as new core account opening activity remained strong. Core deposits comprised 87.8% of total deposits at September 30, 2022, an increase from 86.8% at June 30, 2022, while the total cost of deposits for the quarter increased 10 basis points to 0.15%.

Total borrowings decreased by $25.0 million, or 18.1% when compared to the prior quarter reflecting primarily the maturity of a short-term Federal Home Loan Bank borrowing.

The securities portfolio increased by $212.2 million, or 7.2%, 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 $325.3 million, offset by an unrealized loss of $55.5 million related to the available for sale portfolio, as well as paydowns, calls, and maturities. Total securities represented 16.0% of total assets at September 30, 2022, as compared to 14.7% at June 30, 2022.

During the third quarter, the Company repurchased an additional 443,000 shares of its common stock for $34.6 million, marking the completion of its previously announced stock repurchase program. In total, the Company repurchased 1.8 million shares of its common stock under the program over the first three quarters of 2022 at an average price of $78.32 per share. Stockholders' equity at September 30, 2022 decreased 1.9% when compared to the prior quarter, primarily attributable to the aforementioned share repurchases executed during the third quarter, along with increased other comprehensive losses of $69.6 million, which were partially offset by strong earnings retention. As a result of this decrease in stockholders' equity, book value per share decreased by $0.59, or 0.9%, to $61.73 during the third quarter as compared to the prior quarter. The Company's ratio of common equity to assets of 14.3% at September 30, 2022 represented a decrease of 7 basis points from the prior quarter and an increase of 18.4% from the year ago period. The Company's tangible book value per share at September 30, 2022 declined by $0.75, or 1.9%, from the prior quarter to $39.56, but represented an increase of 6.2% 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 9.66% at September 30, 2022 represents a decrease of 13 basis points from the prior quarter and an increase of 9.9% from the year ago period. Please refer to Appendix A for a detailed reconciliation of Non-GAAP metrics.

In consideration of the Company’s strong current capital position, the Company is announcing a new stock repurchase plan, which authorizes repurchases by the Company of up to $120 million in common stock and is scheduled to expire on October 19, 2023.

NET INTEREST INCOME

Net interest income for the third quarter increased 12.2% to $162.6 million compared to $144.9 million for the prior quarter, primarily reflecting the positive impact of asset repricing in the rising interest rate environment in conjunction with relatively modest deposit rate increases, partially offset by a reduction in net PPP fee income of $1.3 million. Average earning asset levels were essentially flat in the third quarter compared to the prior quarter. The reported net interest margin increased by 37 basis points from the prior quarter to 3.64%, and increased 36 basis points to 3.59% 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 $28.2 million for the third quarter of 2022 was $297,000, or 1.1% higher as compared to the prior quarter. Significant changes in noninterest income for the third quarter compared to the prior quarter included the following:

• Deposit account fees and interchange and ATM fees increased by $433,000, or 7.4%, and $304,000, or 7.5%, respectively, both driven primarily by increased transaction volume during the third quarter.

• Investment management income decreased by $893,000, or 9.6%, primarily driven by a reduction in seasonal tax preparation fees recognized during the second quarter and a decline in overall asset valuations during the third quarter. The decline in market valuations was mitigated by a healthy volume of new asset inflows, resulting in a modest $65.0 million, or 1.3% decrease in assets under administration to $5.1 billion as of September 30, 2022.

• Mortgage banking income decreased by $457,000, or 43.9%, primarily due to overall reduced activity, with the vast majority of originations being retained in portfolio.

• Other noninterest income increased by $509,000, or 9.7%, primarily attributable to a gain on the sale of a vacated office space recently acquired during the Meridian acquisition and increased foreign currency exchange fees.

NONINTEREST EXPENSE

Noninterest expense of $92.7 million for the third quarter of 2022 was $2.2 million, or 2.4%, higher as compared to the prior quarter. Significant changes in noninterest expense for the third quarter compared to the prior quarter included the following:

• Salaries and employee benefits increased by $3.2 million, or 6.4%, primarily due to increases in salaries and incentives.

• Occupancy and equipment increased by $679,000, or 5.8%, due mainly to increases in office equipment costs and equipment maintenance and repairs.

• Other noninterest expense decreased by $1.6 million, or 6.4%, due primarily to decreases in unrealized losses on equity securities, director expenses (which were incurred during the second quarter related primarily to grants of equity compensation), and reduced consultant fees.

The Company’s tax rate for the third quarter of 2022 remained relatively flat at 24.37%, compared to 24.84% for the prior quarter.

ASSET QUALITY

Nonperforming loans remained consistent at $56.0 million, or 0.41% of total loans at September 30, 2022, as compared to $55.9 million, or 0.41% of total loans at June 30, 2022, with minimal net charge-offs recorded during the third quarter of 2022. Delinquency as a percentage of total loans decreased 23 basis points from the prior quarter to 0.17% at September 30, 2022, due primarily to the resolution and full payoff of a non-performing commercial loan.

In conjunction with the category shifts on current nonperforming loans and no significant changes to the overall economic outlook, the Company recorded a $3.0 million provision for credit losses during the third quarter of 2022. The allowance for credit losses on total loans was $147.3 million, or 1.08% of total loans, at September 30, 2022, as compared to $144.3 million, or 1.06% of total loans, at June 30, 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 third quarter earnings and other matters at 10:00 a.m. Eastern Time on Friday, October 21, 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: 5395173 and will be available through October 28, 2022. Additionally, a webcast replay will be available on the Company's website until October 21, 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, any further resurgences or variants of the COVID-19 virus, the efficacy and availability of vaccines, boosters or other treatments, actions taken by governmental authorities in response thereto, 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.

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 and the appendices attached to it contain 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 unique low-yielding loans originated through government programs in response to the pandemic, or significant purchase accounting adjustments, or other adjustments such as nonaccrual interest reversals/recoveries and prepayment penalties. 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
	September 30 2022				June 30 2022				September 30 2021				Sept 2022 vs.			Sept 2022 vs.
													Jun 2022			Sept 2021
Assets
Cash and due from banks	$	172,615			$	202,802			$	138,148			(14.88	) %		24.95	%
Interest-earning deposits with banks		763,681				1,273,465				1,869,683			(40.03	) %		(59.15	) %
Securities
Trading		3,538				3,637				3,504			(2.72	) %		0.97	%
Equities		20,439				21,181				22,794			(3.50	) %		(10.33	) %
Available for sale		1,425,511				1,501,949				1,427,210			(5.09	) %		(0.12	) %
Held to maturity		1,697,635				1,408,189				865,249			20.55	%		96.20	%
Total securities		3,147,123				2,934,956				2,318,757			7.23	%		35.72	%
Loans held for sale		5,100				2,358				33,553			116.28	%		(84.80	) %
Loans
Commercial and industrial		1,548,349				1,541,046				1,640,709			0.47	%		(5.63	) %
Commercial real estate		7,677,917				7,791,757				4,221,259			(1.46	) %		81.89	%
Commercial construction		1,185,157				1,194,577				515,415			(0.79	) %		129.94	%
Small business		209,567				205,953				184,138			1.75	%		13.81	%
Total commercial		10,620,990				10,733,333				6,561,521			(1.05	) %		61.87	%
Residential real estate		1,959,254				1,844,057				1,222,849			6.25	%		60.22	%
Home equity - first position		578,405				587,314				592,564			(1.52	) %		(2.39	) %
Home equity - subordinate positions		508,765				478,196				407,904			6.39	%		24.73	%
Total consumer real estate		3,046,424				2,909,567				2,223,317			4.70	%		37.02	%
Other consumer		32,936				32,864				23,175			0.22	%		42.12	%
Total loans		13,700,350				13,675,764				8,808,013			0.18	%		55.54	%
Less: allowance for credit losses		(147,313	)			(144,319	)			(92,246	)		2.07	%		59.70	%
Net loans		13,553,037				13,531,445				8,715,767			0.16	%		55.50	%
Federal Home Loan Bank stock		5,218				6,249				8,666			(16.50	) %		(39.79	) %
Bank premises and equipment, net		198,408				202,221				123,528			(1.89	) %		60.62	%
Goodwill		985,072				985,072				506,206			—	%		94.60	%
Other intangible assets		26,934				28,845				19,055			(6.63	) %		41.35	%
Cash surrender value of life insurance policies		293,126				292,807				244,573			0.11	%		19.85	%
Other assets		552,955				522,230				555,375			5.88	%		(0.44	) %
Total assets	$	19,703,269			$	19,982,450			$	14,533,311			(1.40	) %		35.57	%
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing demand deposits	$	5,622,260			$	5,562,174			$	4,590,492			1.08	%		22.48	%
Savings and interest checking accounts		6,094,493				6,347,601				4,484,208			(3.99	) %		35.91	%
Money market		3,443,622				3,419,170				2,399,878			0.72	%		43.49	%
Time certificates of deposit		1,178,619				1,310,603				785,562			(10.07	) %		50.04	%
Total deposits		16,338,994				16,639,548				12,260,140			(1.81	) %		33.27	%
Borrowings
Federal Home Loan Bank borrowings		643				25,652				25,675			(97.49	) %		(97.50	) %
Long-term borrowings, net		—				—				18,750			nm			(100.00	) %
Junior subordinated debentures, net		62,855				62,854				62,853			—	%		—	%
Subordinated debentures, net		49,862				49,838				49,767			0.05	%		0.19	%
Total borrowings		113,360				138,344				157,045			(18.06	) %		(27.82	) %
Total deposits and borrowings		16,452,354				16,777,892				12,417,185			(1.94	) %		32.50	%
Other liabilities		433,714				333,373				360,172			30.10	%		20.42	%
Total liabilities		16,886,068				17,111,265				12,777,357			(1.32	) %		32.16	%
Stockholders' equity
Common stock		454				459				329			(1.09	) %		37.99	%
Additional paid in capital		2,113,313				2,146,333				949,316			(1.54	) %		122.61	%
Retained earnings		882,503				833,857				787,742			5.83	%		12.03	%
Accumulated other comprehensive income (loss), net of tax		(179,069	)			(109,464	)			18,567			63.59	%		(1,064.45	) %
Total stockholders' equity		2,817,201				2,871,185				1,755,954			(1.88	) %		60.44	%
Total liabilities and stockholders' equity	$	19,703,269			$	19,982,450			$	14,533,311			(1.40	) %		35.57	%

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, dollars in thousands, except per share data)
	Three Months Ended
													% Change			% Change
	September 30 2022				June 30 2022				September 30 2021				Sept 2022 vs.			Sept 2022 vs.
													Jun 2022			Sept 2021
Interest income
Interest on federal funds sold and short-term investments	$	6,519			$	2,817			$	815			131.42	%		699.88	%
Interest and dividends on securities		13,244				11,283				7,796			17.38	%		69.88	%
Interest and fees on loans		150,157				133,988				84,212			12.07	%		78.31	%
Interest on loans held for sale		51				35				193			45.71	%		(73.58	) %
Total interest income		169,971				148,123				93,016			14.75	%		82.73	%
Interest expense
Interest on deposits		6,109				2,111				1,633			189.39	%		274.10	%
Interest on borrowings		1,261				1,151				1,292			9.56	%		(2.40	) %
Total interest expense		7,370				3,262				2,925			125.94	%		151.97	%
Net interest income		162,601				144,861				90,091			12.25	%		80.49	%
(Release of) provision for credit losses		3,000				—				(10,000	)		100.00	%		(130.00	) %
Net interest income after provision for credit losses		159,601				144,861				100,091			10.18	%		59.46	%
Noninterest income
Deposit account fees		6,261				5,828				4,298			7.43	%		45.67	%
Interchange and ATM fees		4,331				4,027				3,441			7.55	%		25.86	%
Investment management		8,436				9,329				9,174			(9.57	) %		(8.04	) %
Mortgage banking income		585				1,042				2,825			(43.86	) %		(79.29	) %
Increase in cash surrender value of life insurance policies		1,883				1,871				1,596			0.64	%		17.98	%
Gain on life insurance benefits		477				123				—			287.80	%		100.00	%
Loan level derivative income		471				436				586			8.03	%		(19.62	) %
Other noninterest income		5,751				5,242				4,537			9.71	%		26.76	%
Total noninterest income		28,195				27,898				26,457			1.06	%		6.57	%
Noninterest expenses
Salaries and employee benefits		52,708				49,538				42,235			6.40	%		24.80	%
Occupancy and equipment expenses		12,316				11,637				8,564			5.83	%		43.81	%
Data processing and facilities management		2,259				2,247				1,673			0.53	%		35.03	%
FDIC assessment		1,677				1,743				980			(3.79	) %		71.12	%
Merger and acquisition expense		—				—				1,943			nm			(100.00	) %
Other noninterest expenses		23,768				25,397				17,024			(6.41	) %		39.61	%
Total noninterest expenses		92,728				90,562				72,419			2.39	%		28.04	%
Income before income taxes		95,068				82,197				54,129			15.66	%		75.63	%
Provision for income taxes		23,171				20,421				14,122			13.47	%		64.08	%
Net Income	$	71,897			$	61,776			$	40,007			16.38	%		79.71	%
Weighted average common shares (basic)		45,839,555				46,665,101				33,043,716
Common share equivalents		16,856				14,096				15,554
Weighted average common shares (diluted)		45,856,411				46,679,197				33,059,270
Basic earnings per share	$	1.57			$	1.32			$	1.21			18.94	%		29.75	%
Diluted earnings per share	$	1.57			$	1.32			$	1.21			18.94	%		29.75	%
Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):
Net income	$	71,897			$	61,776			$	40,007
Noninterest expense components
Add - merger and acquisition expenses		—				—				1,943
Noncore increases to income before taxes		—				—				1,943
Net tax benefit associated with noncore items (1)		—				—				(546	)
Noncore increases to net income		—				—				1,397
Operating net income (Non-GAAP)	$	71,897			$	61,776			$	41,404			16.38	%		73.65	%
Diluted earnings per share, on an operating basis	$	1.57			$	1.32			$	1.25			18.94	%		25.60	%
(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)		3.64	%			3.27	%			2.78	%
Return on average assets (GAAP) (calculated by dividing net income by average assets)		1.43	%			1.24	%			1.11	%
Return on average assets on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average assets)		1.43	%			1.24	%			1.15	%
Return on average common equity (GAAP) (calculated by dividing net income by average common equity)		9.90	%			8.49	%			9.04	%
Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average common equity)		9.90	%			8.49	%			9.35	%
Noninterest income as a % of total revenue (calculated by dividing total noninterest income by net interest income plus total noninterest income)		14.78	%			16.15	%			22.70	%
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)		14.78	%			16.15	%			22.70	%
Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)		48.60	%			52.42	%			62.14	%
Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)		48.60	%			52.42	%			60.47	%
Return on average tangible common equity (Non-GAAP) (calculated by dividing net income by average tangible common equity)		15.26	%			13.01	%			12.90	%
Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average tangible common equity)		15.26	%			13.01	%			13.35	%

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, dollars in thousands, except per share data)
		Nine Months Ended
										% Change
		September 30 2022				September 30 2021				Sept 2022 vs.
										Sept 2021
Interest income
Interest on federal funds sold and short-term investments		$	10,222			$	1,654			518.02	%
Interest and dividends on securities			34,571				21,617			59.93	%
Interest and fees on loans			413,770				265,409			55.90	%
Interest on loans held for sale			150				675			(77.78	) %
Total interest income			458,713				289,355			58.53	%
Interest expense
Interest on deposits			10,327				6,361			62.35	%
Interest on borrowings			3,492				3,965			(11.93	) %
Total interest expense			13,819				10,326			33.83	%
Net interest income			444,894				279,029			59.44	%
(Release of) provision for credit losses			1,000				(17,500	)		(105.71	) %
Net interest income after provision for credit losses			443,894				296,529			49.70	%
Noninterest income
Deposit account fees			17,582				11,704			50.22	%
Interchange and ATM fees			11,967				9,229			29.67	%
Investment management			26,438				26,350			0.33	%
Mortgage banking income			2,989				11,270			(73.48	) %
Increase in cash surrender value of life insurance policies			5,549				4,508			23.09	%
Gain on life insurance benefits			600				258			132.56	%
Loan level derivative income			1,511				875			72.69	%
Other noninterest income			15,729				12,476			26.07	%
Total noninterest income			82,365				76,670			7.43	%
Noninterest expenses
Salaries and employee benefits			150,957				124,759			21.00	%
Occupancy and equipment expenses			37,255				26,543			40.36	%
Data processing and facilities management			6,878				5,024			36.90	%
FDIC assessment			5,225				2,805			86.27	%
Merger and acquisition expense			7,100				3,674			93.25	%
Other noninterest expenses			71,375				52,598			35.70	%
Total noninterest expenses			278,790				215,403			29.43	%
Income before income taxes			247,469				157,796			56.83	%
Provision for income taxes			60,699				38,506			57.64	%
Net Income		$	186,770			$	119,290			56.57	%
Weighted average common shares (basic)			46,618,209				33,024,386
Common share equivalents			17,221				18,238
Weighted average common shares (diluted)			46,635,430				33,042,624
Basic earnings per share		$	4.01			$	3.61			11.08	%
Diluted earnings per share		$	4.00			$	3.61			10.80	%
Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):
Net Income		$	186,770			$	119,290
Noninterest expense components
Add - merger and acquisition expenses			7,100				3,674
Noncore increases to income before taxes			7,100				3,674
Net tax benefit associated with noncore items (1)			(1,995	)			(1,033	)
Noncore increases to net income		$	5,105			$	2,641
Operating net income (Non-GAAP)		$	191,875			$	121,931			57.36	%
Diluted earnings per share, on an operating basis		$	4.11			$	3.69			11.38	%
(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)			3.33	%			3.00	%
Return on average assets (GAAP) (calculated by dividing net income by average assets)			1.25	%			1.15	%
Return on average assets on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average assets)			1.28	%			1.17	%
Return on average common equity (GAAP) (calculated by dividing net income by average common equity)			8.51	%			9.20	%
Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average common equity)			8.74	%			9.40	%
Return on average tangible common equity (GAAP) (calculated by dividing net income by average tangible common equity)			13.00	%			13.21	%
Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing Net operating net income by average tangible common equity)			13.35	%			13.51	%
Noninterest income as a % of total revenue (calculated by dividing total noninterest income by net interest income plus total noninterest income)			15.62	%			21.55	%
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)			15.62	%			21.55	%
Efficiency ratio (GAAP) (calculated by dividing total noninterest expense by total revenue)			52.88	%			60.56	%
Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total noninterest expense on an operating basis by total revenue)			51.53	%			59.52	%
Return on average tangible common equity (Non-GAAP) (calculated by dividing net income by average tangible common equity)			13.00	%			13.21	%
Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average tangible common equity)			13.35	%			13.51	%

ASSET QUALITY
(Unaudited, dollars in thousands)		Nonperforming Assets At
		September 30 2022				June 30 2022				September 30 2021
Nonperforming loans
Commercial & industrial loans		$	27,393			$	3,518			$	19,275
Commercial real estate loans			15,982				40,074				11,788
Small business loans			50				31				46
Residential real estate loans			8,891				8,563				10,872
Home equity			3,485				3,514				3,746
Other consumer			216				215				83
Total nonperforming loans			56,017				55,915				45,810
Total nonperforming assets		$	56,017			$	55,915			$	45,810
Nonperforming loans/gross loans			0.41	%			0.41	%			0.52	%
Nonperforming assets/total assets			0.28	%			0.28	%			0.32	%
Allowance for credit losses/nonperforming loans			262.98	%			258.10	%			201.37	%
Allowance for credit losses/total loans			1.08	%			1.06	%			1.05	%
Delinquent loans/total loans			0.17	%			0.40	%			0.21	%
		Nonperforming Assets Reconciliation for the Three Months Ended
		September 30 2022				June 30 2022				September 30 2021
Nonperforming assets beginning balance		$	55,915			$	56,618			$	47,818
New to nonperforming			30,650				2,822				4,613
Loans charged-off			(741	)			(545	)			(332	)
Loans paid-off /sold			(29,450	)			(2,239	)			(3,488	)
Loans restored to performing status			(366	)			(738	)			(2,813	)
Other			9				(3	)			12
Nonperforming assets ending balance		$	56,017			$	55,915			$	45,810

		Net Charge-Offs (Recoveries)
		Three Months Ended												Nine Months Ended
		September 30 2022				June 30 2022				September 30 2021				September 30 2022				September 30 2021
Net charge-offs (recoveries)
Commercial and industrial loans		$	(2	)		$	(29	)		$	—			$	(44	)		$	3,374
Commercial real estate loans			(268	)			—				—				(271	)			(57	)
Small business loans			(88	)			(22	)			33				(88	)			119
Residential real estate loans			—				—				—				—				(1	)
Home equity			(65	)			84				(49	)			17				(38	)
Other consumer			429				166				127				995				249
Total net charge-offs		$	6			$	199			$	111			$	609			$	3,646
Net charge-offs to average loans (annualized)		nm					0.01	%			0.00	%			0.01	%			0.05	%

		Troubled Debt Restructurings At
		September 30 2022				June 30 2022				September 30 2021
Troubled debt restructurings on accrual status		$	11,549			$	11,734			$	15,950
Troubled debt restructurings on nonaccrual status			1,538				1,677				21,104
Total troubled debt restructurings		$	13,087			$	13,411			$	37,054
BALANCE SHEET AND CAPITAL RATIOS
		September 30 2022				June 30 2022				September 30 2021
Gross loans/total deposits			83.85	%			82.19	%			71.84	%
Common equity tier 1 capital ratio (1)			13.98	%			13.90	%			13.53	%
Tier 1 leverage capital ratio (1)			10.51	%			10.42	%			9.36	%
Common equity to assets ratio GAAP			14.30	%			14.37	%			12.08	%
Tangible common equity to tangible assets ratio (2)			9.66	%			9.79	%			8.79	%
Book value per share GAAP		$	61.73			$	62.32			$	53.14
Tangible book value per share (2)		$	39.56			$	40.31			$	37.24

(1) Estimated number for September 30, 2022.

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

nm = not meaningful

INDEPENDENT BANK CORP. SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited, dollars in thousands)		Three Months Ended
		September 30, 2022									June 30, 2022									September 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		$	1,156,143		$	6,519		2.24	%		$	1,377,286		$	2,817		0.82	%		$	2,135,031		$	815		0.15	%
Securities
Securities - trading			3,730			—		—	%			3,863			—		—	%			3,498			—		—	%
Securities - taxable investments			3,024,802			13,243		1.74	%			2,889,245			11,281		1.57	%			1,880,863			7,792		1.64	%
Securities - nontaxable investments (1)			196			1		2.02	%			197			3		6.11	%			468			5		4.24	%
Total securities		$	3,028,728		$	13,244		1.73	%		$	2,893,305		$	11,284		1.56	%		$	1,884,829		$	7,797		1.64	%
Loans held for sale			4,263			51		4.75	%			3,842			35		3.65	%			30,143			193		2.54	%
Loans
Commercial and industrial (1)			1,520,924			19,289		5.03	%			1,537,883			17,496		4.56	%			1,640,422			15,309		3.70	%
Commercial real estate (1)			7,760,470			85,284		4.36	%			7,827,442			76,771		3.93	%			4,232,575			41,469		3.89	%
Commercial construction			1,157,876			14,875		5.10	%			1,193,353			13,456		4.52	%			507,393			4,916		3.84	%
Small business			207,546			2,819		5.39	%			203,947			2,656		5.22	%			181,953			2,341		5.10	%
Total commercial			10,646,816			122,267		4.56	%			10,762,625			110,379		4.11	%			6,562,343			64,035		3.87	%
Residential real estate			1,909,066			16,533		3.44	%			1,761,986			14,879		3.39	%			1,231,606			10,955		3.53	%
Home equity			1,076,040			11,869		4.38	%			1,046,933			9,178		3.52	%			1,007,371			9,043		3.56	%
Total consumer real estate			2,985,106			28,402		3.77	%			2,808,919			24,057		3.44	%			2,238,977			19,998		3.54	%
Other consumer			31,883			523		6.51	%			31,554			507		6.44	%			25,929			398		6.09	%
Total loans		$	13,663,805		$	151,192		4.39	%		$	13,603,098		$	134,943		3.98	%		$	8,827,249		$	84,431		3.79	%
Total interest-earning assets		$	17,852,939		$	171,006		3.80	%		$	17,877,531		$	149,079		3.34	%		$	12,877,252		$	93,236		2.87	%
Cash and due from banks			192,003									190,501									144,556
Federal Home Loan Bank stock			5,745									6,249									8,904
Other assets			1,854,870									1,855,351									1,268,199
Total assets		$	19,905,557								$	19,929,632								$	14,298,911
Interest-bearing liabilities
Deposits
Savings and interest checking accounts		$	6,224,690		$	2,110		0.13	%		$	6,192,761		$	710		0.05	%		$	4,426,106		$	338		0.03	%
Money market			3,459,212			3,025		0.35	%			3,486,017			607		0.07	%			2,375,492			443		0.07	%
Time deposits			1,246,841			974		0.31	%			1,356,507			794		0.23	%			795,943			852		0.42	%
Total interest-bearing deposits		$	10,930,743		$	6,109		0.22	%		$	11,035,285		$	2,111		0.08	%		$	7,597,541		$	1,633		0.09	%
Borrowings
Federal Home Loan Bank borrowings			12,876			55		1.69	%			25,654			123		1.92	%			31,118			165		2.10	%
Long-term borrowings			—			—		—	%			—			—		—	%			18,742			77		1.63	%
Junior subordinated debentures			62,854			589		3.72	%			62,854			410		2.62	%			62,852			432		2.73	%
Subordinated debentures			49,847			617		4.91	%			49,825			618		4.97	%			49,753			617		4.92	%
Total borrowings		$	125,577		$	1,261		3.98	%		$	138,333		$	1,151		3.34	%		$	162,465		$	1,291		3.15	%
Total interest-bearing liabilities		$	11,056,320		$	7,370		0.26	%		$	11,173,618		$	3,262		0.12	%		$	7,760,006		$	2,924		0.15	%
Noninterest-bearing demand deposits			5,641,742									5,546,041									4,502,045
Other liabilities			325,507									290,467									280,754
Total liabilities		$	17,023,569								$	17,010,126								$	12,542,805
Stockholders' equity			2,881,988									2,919,506									1,756,106
Total liabilities and stockholders' equity		$	19,905,557								$	19,929,632								$	14,298,911
Net interest income					$	163,636								$	145,817								$	90,312
Interest rate spread (2)								3.54	%								3.22	%								2.72	%
Net interest margin (3)								3.64	%								3.27	%								2.78	%
Supplemental Information
Total deposits, including demand deposits		$	16,572,485		$	6,109					$	16,581,326		$	2,111					$	12,099,586		$	1,633
Cost of total deposits								0.15	%								0.05	%								0.05	%
Total funding liabilities, including demand deposits		$	16,698,062		$	7,370					$	16,719,659		$	3,262					$	12,262,051		$	2,924
Cost of total funding liabilities								0.18	%								0.08	%								0.09	%

(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $1.0 million, $956,000, and $220,000 for the three months ended September 30, 2022, June 30, 2022, and September 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.

		Nine Months Ended
		September 30, 2022									September 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		$	1,477,117		$	10,222		0.93	%		$	1,782,463		$	1,654		0.12	%
Securities
Securities - trading			3,775			—		—	%			3,267			—		—	%
Securities - taxable investments			2,881,203			34,567		1.60	%			1,550,859			21,603		1.86	%
Securities - nontaxable investments (1)			198			5		3.38	%			555			17		4.10	%
Total securities		$	2,885,176		$	34,572		1.60	%		$	1,554,681		$	21,620		1.86	%
Loans held for sale			5,841			150		3.43	%			35,953			675		2.51	%
Loans
Commercial and industrial (1)			1,531,421			53,816		4.70	%			1,898,100			58,706		4.14	%
Commercial real estate (1)			7,832,534			238,085		4.06	%			4,195,200			123,377		3.93	%
Commercial construction			1,180,509			40,599		4.60	%			525,652			14,976		3.81	%
Small business			202,151			7,891		5.22	%			178,294			6,924		5.19	%
Total commercial			10,746,615			340,391		4.23	%			6,797,246			203,983		4.01	%
Residential real estate			1,774,355			45,109		3.40	%			1,242,991			34,449		3.71	%
Home equity			1,051,921			29,709		3.78	%			1,027,311			26,391		3.43	%
Total consumer real estate			2,826,276			74,818		3.54	%			2,270,302			60,840		3.58	%
Other consumer			31,092			1,519		6.53	%			23,382			1,241		7.10	%
Total loans		$	13,603,983		$	416,728		4.10	%		$	9,090,930		$	266,064		3.91	%
Total interest-earning assets		$	17,972,117		$	461,672		3.43	%		$	12,464,027		$	290,013		3.11	%
Cash and due from banks			184,754									147,269
Federal Home Loan Bank stock			7,780									9,516
Other assets			1,853,818									1,256,066
Total assets		$	20,018,469								$	13,876,878
Interest-bearing liabilities
Deposits
Savings and interest checking accounts		$	6,224,317		$	3,418		0.07	%		$	4,292,992		$	1,145		0.04	%
Money market			3,517,459			4,191		0.16	%			2,337,445			1,393		0.08	%
Time deposits			1,355,861			2,718		0.27	%			848,143			3,823		0.60	%
Total interest-bearing deposits		$	11,097,637		$	10,327		0.12	%		$	7,478,580		$	6,361		0.11	%
Borrowings
Federal Home Loan Bank borrowings			21,361			311		1.95	%			34,185			544		2.13	%
Long-term borrowings			2,988			31		1.39	%			23,434			282		1.61	%
Junior subordinated debentures			62,854			1,298		2.76	%			62,852			1,287		2.74	%
Subordinated debentures			49,824			1,852		4.97	%			49,729			1,852		4.98	%
Total borrowings		$	137,027		$	3,492		3.41	%		$	170,200		$	3,965		3.11	%
Total interest-bearing liabilities		$	11,234,664		$	13,819		0.16	%		$	7,648,780		$	10,326		0.18	%
Noninterest-bearing demand deposits			5,544,476									4,213,764
Other liabilities			303,308									280,002
Total liabilities		$	17,082,448								$	12,142,546
Stockholders' equity			2,936,021									1,734,332
Total liabilities and stockholders' equity		$	20,018,469								$	13,876,878
Net interest income					$	447,853								$	279,687
Interest rate spread (2)								3.27	%								2.93	%
Net interest margin (3)								3.33	%								3.00	%
Supplemental Information
Total deposits, including demand deposits		$	16,642,113		$	10,327					$	11,692,344		$	6,361
Cost of total deposits								0.08	%								0.07	%
Total funding liabilities, including demand deposits		$	16,779,140		$	13,819					$	11,862,544		$	10,326
Cost of total funding liabilities								0.11	%								0.12	%

(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $3.0 million and $658,000 for the nine months ended September 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:

		September 30 2022				June 30 2022				September 30 2021
Tangible common equity		(Dollars in thousands, except per share data)
Stockholders' equity (GAAP)		$	2,817,201			$	2,871,185			$	1,755,954		(a)
Less: Goodwill and other intangibles			1,012,006				1,013,917				525,261
Tangible common equity		$	1,805,195			$	1,857,268			$	1,230,693		(b)
Tangible assets
Assets (GAAP)		$	19,703,269			$	19,982,450			$	14,533,311		(c)
Less: Goodwill and other intangibles			1,012,006				1,013,917				525,261
Tangible assets		$	18,691,263			$	18,968,533			$	14,008,050		(d)
Common Shares			45,634,626				46,069,761				33,043,812		(e)
Common equity to assets ratio (GAAP)			14.30	%			14.37	%			12.08	%	(a/c)
Tangible common equity to tangible assets ratio (Non-GAAP)			9.66	%			9.79	%			8.79	%	(b/d)
Book value per share (GAAP)		$	61.73			$	62.32			$	53.14		(a/e)
Tangible book value per share (Non-GAAP)		$	39.56			$	40.31			$	37.24		(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												Nine Months Ended
	September 30 2022				June 30 2022				September 30 2021				September 30 2022				September 30 2021
Net interest income (GAAP)	$	162,601			$	144,861			$	90,091			$	444,894			$	279,029		(a)
Noninterest income (GAAP)	$	28,195			$	27,898			$	26,457			$	82,365			$	76,670		(b)
Noninterest income on an operating basis (Non-GAAP)	$	28,195			$	27,898			$	26,457			$	82,365			$	76,670		(c)
Noninterest expense (GAAP)	$	92,728			$	90,562			$	72,419			$	278,790			$	215,403		(d)
Less:
Merger and acquisition expense		—				—				1,943				7,100				3,674
Noninterest expense on an operating basis (Non-GAAP)	$	92,728			$	90,562			$	70,476			$	271,690			$	211,729		(e)
Total revenue (GAAP)	$	190,796			$	172,759			$	116,548			$	527,259			$	355,699		(a+b)
Total operating revenue (Non-GAAP)	$	190,796			$	172,759			$	116,548			$	527,259			$	355,699		(a+c)
Net income (GAAP)	$	71,897			$	61,776			$	40,007			$	186,770			$	119,290
Operating net income (Non-GAAP) (See income statement for reconciliation of GAAP to Non-GAAP)	$	71,897			$	61,776			$	41,404			$	191,875			$	121,931
Average common equity (GAAP)	$	2,881,988			$	2,919,506			$	1,756,106			$	2,936,021			$	1,734,332
Less: Average goodwill and other intangibles		1,013,169				1,014,953				526,032				1,015,040				527,370
Tangible average tangible common equity (Non-GAAP)	$	1,868,819			$	1,904,553			$	1,230,074			$	1,920,981			$	1,206,962
Ratios
Noninterest income as a % of total revenue (GAAP)		14.78	%			16.15	%			22.70	%			15.62	%			21.55	%	(b/(a+b))
Noninterest income as a % of total revenue on an operating basis (Non-GAAP)		14.78	%			16.15	%			22.70	%			15.62	%			21.55	%	(c/(a+c))
Efficiency ratio (GAAP)		48.60	%			52.42	%			62.14	%			52.88	%			60.56	%	(d/(a+b))
Efficiency ratio on an operating basis (Non-GAAP)		48.60	%			52.42	%			60.47	%			51.53	%			59.52	%	(e/(a+c))
Return on average tangible common equity (Non-GAAP) (calculated by dividing net income by average tangible common equity)		15.26	%			13.01	%			12.90	%			13.00	%			13.21	%
Return on average tangible common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average tangible common equity)		15.26	%			13.01	%			13.35	%			13.35	%			13.51	%

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

	Three Months Ended
	September 30, 2022									June 30, 2022
	Volume			Interest			Margin Impact			Volume			Interest			Margin Impact
	(Dollars in thousands)
Reported total interest earning assets	$	17,852,939		$	163,636		3.64	%		$	17,877,531		$	145,817		3.27	%
Core adjustments:
PPP volume @ 1%		(20,071	)		(46	)					(60,969	)		(149	)
PPP fee amortization					(443	)								(1,762	)
Total PPP impact		(20,071	)		(489	)	(0.01	) %			(60,969	)		(1,911	)	(0.03	) %
Acquisition fair value marks:
Loan amortization (accretion)					(624	)								823
CD accretion					(97	)								(437	)
					(721	)	(0.02	) %						386		0.01	%
Nonaccrual interest, net					(556	)	(0.01	) %						205		—	%
Other noncore adjustments					(637	)	(0.01	) %						(1,106	)	(0.02	) %
Core margin (Non-GAAP)	$	17,832,868		$	161,233		3.59	%		$	17,816,562		$	143,391		3.23	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221019006151/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 Q3 2022 earnings?

Independent Bank Corp. reported a net income of $71.9 million, or $1.57 per diluted share, for Q3 2022.

How much did Independent Bank Corp. increase its net interest income?

Net interest income increased by 12.2% to $162.6 million for Q3 2022.

What drove the growth in net income for Independent Bank Corp. in Q3 2022?

The growth in net income was primarily driven by strong net interest margin expansion.

What is the new stock repurchase plan for Independent Bank Corp.?

A new stock repurchase plan authorizing up to $120 million in common stock is set to expire on October 19, 2023.

How did Independent Bank Corp.'s total assets change in Q3 2022?

Total assets decreased by 1.4% from the prior quarter to $19.7 billion.