Independent Bank Corp. reported Q4 2025 net income of $75.3 million, or $1.52 per diluted share, up from $34.3 million, or $0.69 per diluted share, in Q3 2025. On an adjusted basis—excluding merger-related costs and the one-time provision for credit losses tied to the Enterprise Bancorp acquisition—the company delivered earnings per share of $1.70, beating the consensus estimate of $1.65. Return on average assets rebounded to 1.25%, while return on average tangible common equity reached 12.3%, reflecting strong leverage of the recent integration and cost-management initiatives.

Total revenues grew 44% year-over-year, driven primarily by the acquisition of Enterprise Bancorp. Net interest income expanded by 38%, while non-interest income rose 62% as fee revenue from wealth management and mortgage servicing jumped following the deal. Sequentially, net interest margin improved by 9 basis points to 3.77%, marking the second consecutive quarter of margin expansion as higher yielding assets from the acquired franchise offset modest funding cost increases.

Nonperforming loans declined to 0.42% of total loans, down from 0.55% in Q3, supported by geographic diversification and strengthened underwriting standards. However, net charge-offs increased to 0.12% of loans, compared with 0.08% in the prior quarter, driven by seasoning in certain commercial portfolios. The allowance for credit losses rose 15% sequentially to $180 million, representing 1.05% of total loans, a level management deems adequate given current economic indicators.

Since closing the Enterprise acquisition in October 2025, Independent Bank has realized $11 million in run-rate cost synergies through branch consolidations and back-office automation. Core deposits increased by $2.1 billion, while total loans expanded by $1.8 billion. At quarter end, the common equity tier 1 ratio stood at 9.6%, unchanged sequentially, reflecting disciplined capital deployment. Management reaffirmed its 2026 target of $25 million in additional annualized cost savings and plans to maintain a dividend payout ratio near 30% of adjusted earnings.