Independent Bank Corp. reported a 44% year-over-year increase in fourth-quarter revenues, driven primarily by the integration of Enterprise Bancorp, Inc. The company’s adjusted earnings per share of $1.70 surpassed consensus estimates of $1.65 and compared favorably with the prior-year quarter’s $1.21. This performance reflects synergistic cost savings recognized post-acquisition and stronger net interest income as the combined loan portfolio expanded by more than $1.2 billion since closing.

Net interest margin improved sequentially to 3.77%, up 15 basis points from the third quarter, reflecting both higher loan yields on newly acquired assets and optimized funding costs. Return on average assets climbed to 1.42%, while return on tangible common equity rose to 15.8%, marking a sharp rebound from last quarter’s 6.3% and underscoring the bank’s ability to generate incremental returns on its enlarged balance sheet.

Nonperforming loan ratios declined to 0.35% of total loans, a 10-basis-point improvement year over year, aided by disciplined underwriting and targeted workouts in the commercial portfolio. Net charge-offs increased to 0.12% of loans, reflecting elevated provisions for select retail segments. The allowance for credit losses stands at 1.05% of total loans, providing ample coverage against potential future delinquencies.

The Enterprise Bancorp transaction contributed approximately $18 million of pre-tax merger gains and is expected to deliver $12 million of annualized cost synergies by the end of next year. Management reiterated guidance for mid-single-digit revenue growth in 2026, alongside modest margin compression of up to 5 basis points as funding mix normalizes. Capital ratios remain solid, with a common equity Tier 1 ratio of 9.8%, supporting further strategic investments and potential bolt-on acquisitions.