Independent Bank (INDB) Earnings Call Transcript

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Fri, January 23, 2026 astatine 9:41 AM CST 33 min read

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Friday, July 18, 2025 astatine 10 a.m. ET

• Chief Executive Officer — Jeffrey J. Tengel

• Chief Financial Officer and Head of Consumer Lending — Mark J. Ruggiero

Jeffrey J. Tengel: Thank you. Good morning, and acknowledgment for joining america today. I americium accompanied this greeting by CFO and Head of Consumer Lending, Mark Ruggiero. We had an eventful 2nd quarter. We closed connected the Enterprise transaction connected July 1. We sold 2 of our ample NPAs. We signed a lease connected a caller office building, posted coagulated results and proceed to marque advancement connected a fig of our strategical initiatives. In addition, we conscionable announced a $150 cardinal banal buyback. Results for the 2nd 4th bespeak better-than-expected NIM performance, coagulated C&I indebtedness growth, beardown deposit growth, little recognition costs, which were partially offset by higher expenses and a continued runoff successful the CRE portfolio.

Our PPNR instrumentality connected mean assets was 1.53% connected an operating basis, and our tangible publication worth improved 2.1% from the archetypal 4th and 8% from the twelvemonth agone quarter. As we signaled past quarter, we were palmy successful exiting our largest nonperforming indebtedness arsenic good arsenic different of our anterior quarter's apical 5 occupation loans. This brought nonperforming assets down to 35% from the archetypal quarter. Unfortunately, we had 1 different office- related nonperforming indebtedness we thought would beryllium resolved successful the 2nd quarter, but the woody fell done and is present being remarketed for sale.

While we are pleased with the advancement we person made successful resolving respective of our occupation bureau loans, we inactive person enactment to do. We proceed to enactment constructively with our sponsors to find mutually agreeable solutions. From a concern perspective, portion the grade of economical uncertainty has improved, the combined interaction of tariffs and different imaginable national authorities actions stay unclear. Though it remains excessively aboriginal to archer what the existent interaction of the tariffs volition be, our customers are moving cautiously done the plans they had established. The deficiency of certainty is causing them to intermission immoderate important enlargement oregon maturation initiatives present arsenic they measure the economical landscape.

I would enactment determination are galore provisions successful the precocious passed authorities that are beneficial to the concern assemblage and could favorably interaction aboriginal indebtedness demand. We made coagulated advancement connected respective of our cardinal strategical priorities successful the 2nd quarter. We proceed to trim our commercialized existent property concentration. C&I loans were up 3.4% successful the 2nd quarter. Conversely, CRE and operation indebtedness balances were down 1.7% owed to mean amortization and the intentional simplification of transactional CRE business. We've talked successful the past astir getting our CRE attraction beneath 300%. At [ 6/30 ], our CRE attraction was 274% owed to the sub indebtedness rise and contraction of CRE balances.