The EPS and revenue miss vs consensus, combined with rising NPLs and a modestly higher provision, are likely to weigh on the stock near-term. Monitor the Q4 earnings call for commentary on credit trends in the office portfolio and the trajectory of deposit costs, which are key swing factors for margin stability.
Price Chart
Executive Summary
Independent Bank Corp. reported Q3 2026 net income of $89.7M ($1.90/diluted share), a record quarter, with EPS up 12% sequentially. Revenue (net interest income + noninterest income) of $262M missed the $264.4M consensus, while EPS of $1.90 missed the $1.96 consensus by 3.1%. The miss was driven by higher deposit costs and a modest increase in nonperforming loans, partially offset by strong loan and deposit growth and a stable net interest margin. Management guided for modest NII growth and a stable NIM in Q4.
Key Financial Metrics
Key Facts
- Q3 2026 net income of $89.7M, up 9.7% from Q2 2026 ($81.8M) and up 162% from Q3 2025 ($34.3M).
- Diluted EPS of $1.90, up 11.8% from Q2 2026 ($1.70) and up 175% from Q3 2025 ($0.69).
- EPS of $1.90 missed consensus estimate of $1.96 by 3.1%.
- Total revenue (net interest income + noninterest income) of $262M missed consensus of $264.4M.
- Net interest income of $220.7M, up 4.6% from Q2 2026 ($210.9M). Net interest margin of 3.89%, up 4 bps from prior quarter.
- Total loans of $18.6B, up $158.2M (0.9%) from Q2 2026. Total deposits of $20.5B, up $135.3M (0.7%).
- Nonperforming loans increased to $125.7M (0.68% of loans) from $103.6M (0.56%) in Q2 2026, driven by one office real estate loan.
- Provision for credit losses of $6.5M, up from $6.3M in Q2 2026. Net charge-offs of $1.2M (0.02% annualized).
- Company repurchased ~679,000 shares for $57.4M during Q3 2026. Remaining authorization of ~$93M under $200M buyback plan.
- Q4 2026 guidance: modest increase in NII, NIM in low 3.90% range, stable credit quality, low-single-digit annualized expense growth.
Financial Impact
EPS miss of 3.1% vs consensus ($1.90 vs $1.96) and revenue miss of ~$2.4M vs consensus ($262M vs $264.4M).
Risk Factors
- NPLs increased 21% QoQ to $125.7M, driven by one office real estate loan, signaling potential further credit deterioration in the CRE office portfolio.
- Deposit costs rose 6 bps to 1.42% in Q3, pressuring NIM if the trend continues.
- Tangible common equity ratio declined 25 bps to 9.44%, reducing capital flexibility.
- Core conversion costs of ~$1-1.5M expected in Q4 2026 add expense headwinds.
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000776901-26-000152 |
| Document: q32026erpresentation-fin.htm | 0000776901-26-000152 |
| Document: indb-20261015.htm | 0000776901-26-000152 |
| Document: 0000776901-26-000152-index-headers.html | 0000776901-26-000152 |
| Document: 0000776901-26-000152-index.html | 0000776901-26-000152 |
| Document: 0000776901-26-000152.txt | 0000776901-26-000152 |
| 8-K Data (Synthetic) | 0000776901-26-000152 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 4d ago | S-3ASR | $83.70 | awaiting T+5 | — | $83.25 (−0.54%) |
Oct 15, 2026 12d ago | 8-K | $79.88 $83.72 | ▼ −4.81% | ▼ −5.24% | $83.25 (−4.22%) |
Jul 27, 2026 13w ago | 8-K | $86.14 $85.00 | ▼ −1.32% | ▼ −3.59% | $83.25 (−3.36%) |
Jun 18, 2026 18w ago | 8-K | $81.40 $85.19 | ▲ +4.66% | ▲ +6.72% | $83.25 (+2.27%) |
Apr 16, 2026 27w ago | 8-K | $77.95 $77.75 | ▼ −0.26% | ▼ −0.81% | $83.25 (+6.80%) |
Apr 13, 2026 28w ago | 8-K | $80.04 $77.67 | ▼ −2.96% | ▼ −4.36% | $83.25 (+4.01%) |
Apr 1, 2026 29w ago | DEFA14A | $76.78 $79.62 | ▲ +3.70% | ▲ +0.08% | $83.25 (+8.43%) |
Mar 4, 2026 33w ago | 8-K | $77.62 $74.43 | ▼ −4.11% | ▼ −1.87% | $83.25 (+7.25%) |
US Market Status
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