In the fourth quarter of fiscal 2025, Independent Bank Corp. recorded total revenue growth of 44% year-over-year, a surge driven primarily by the October acquisition of Enterprise Bancorp, Inc. The integration added approximately $150 million in loan balances and $200 million in deposits to the company’s balance sheet, bolstering fee income and interest revenue streams. Organic revenue growth also contributed, with core loan yields improving by 20 basis points compared to the prior year period.

Net interest margin rose sequentially to 3.77%, up from 3.65% in Q3 2025, reflecting a higher mix of commercial lending and improved funding costs. On an adjusted basis, earnings per share reached $1.70, exceeding the Zacks Consensus Estimate of $1.65 and marking a 41% increase from the $1.21 reported in Q4 2024. Management attributed the beat to disciplined loan pricing and synergies captured in deposit funding following the Enterprise deal.

Nonperforming loan ratios improved to 0.45% of total loans from 0.60% a year earlier, driven by reductions in underperforming commercial real estate exposures. However, net charge-offs climbed to an annualized 0.12% of loan balances, compared with 0.08% in Q3, as several smaller consumer credit accounts were placed on nonaccrual. The allowance for credit losses stood at 1.20% of total loans, providing a 10% coverage buffer over regulatory expectations.

Fourth-quarter net income attributable to Independent Bank Corp. was $75.3 million, or $1.52 per diluted share, versus $34.3 million, or $0.69 per share, in the prior quarter. Excluding merger-related costs of $5.8 million and a one-time provision for credit losses tied to the Enterprise acquisition, adjusted net income improved by 120% sequentially. Return on equity recovered to 12.8%, up from 6.1% in Q3, reflecting higher earnings leverage and deposit cost savings realized post-integration.