Independent Bank Corp. reported fourth-quarter net income of $75.3 million, or $1.52 per diluted share, compared with $34.3 million, or $0.69 per share, in the prior quarter. Adjusted earnings per share of $1.70 exceeded the consensus estimate of $1.65 and represented a year-over-year increase from $1.21 in Q4 2024. Total revenues rose 44% year-over-year, driven primarily by the contribution of the Enterprise Bancorp acquisition completed during the quarter.

The Enterprise Bancorp deal added approximately $1.8 billion in loans and $1.6 billion in deposits, contributing 28 percentage points of the revenue lift. The net interest margin improved sequentially to 3.77%, up from 3.65% in Q3, as higher yielding assets from the acquired portfolio more than offset funding cost increases. Average earning assets grew by $2.2 billion, or 35%, compared with the prior year quarter.

Nonperforming loans declined to 0.45% of total loans, improving from 0.52% in Q3, while net charge-offs rose to an annualized 0.12% of loans versus 0.08% in the previous quarter. The allowance for credit losses ended the period at 1.15% of loans, up from 1.02%, reflecting conservative provisioning for certain commercial and construction exposures.

Tangible common equity to tangible assets stood at 6.1%, modestly higher than the 5.8% reported at the end of Q3, following the issuance of $150 million in preferred equity in December. Return on tangible common equity rebounded to 18.4% in the quarter, compared with 9.2% in Q3, while the efficiency ratio improved to 58.2% from 64.7%, reflecting operating leverage from the expanded franchise.