Independent Bank Corp (INDB) Announces Q3 2023 Earnings, Reports Net Income of $60.8 Million
Independent Bank Corp (NASDAQ:INDB) reported Q3 2023 net income of $60.8 million, a slight decrease from Q2 2023's $62.6 million.
Total assets remained consistent with the prior quarter at $19.4 billion, marking a 1.7% decrease compared to the prior year period.
The company announced a new stock repurchase plan authorizing repurchases of up to $100 million in common stock.
INDB's balance sheet showed a 1.1% increase in stockholders' equity compared to Q2 2023, primarily driven by strong earnings retention.
Independent Bank Corp (NASDAQ:INDB) announced its Q3 2023 earnings on October 19, 2023. The company reported a net income of $60.8 million, or $1.38 per diluted share, compared to Q2 2023's net income of $62.6 million, or $1.42 per diluted share. Despite a challenging environment, INDB's franchise strength continues to drive its performance.
Financial Highlights
INDB's total assets as of September 30, 2023, remained relatively consistent with the prior quarter at $19.4 billion. This marks a decrease of $335.2 million, or 1.7%, compared to the prior year period, primarily driven by lower cash and securities balances. Total loans increased by $84.3 million, or 0.6% (2.4% annualized), compared to the prior quarter, fueled primarily by consumer real estate.
Deposit balances decreased by $188.5 million, or 1.2%, from June 30, 2023, primarily due to seasonal declines in municipal deposits. The total cost of deposits for the quarter increased 22 basis points to 1.07%. Borrowings increased by $99.1 million, or 11.0%, during the third quarter of 2023, primarily due to net changes in loans, deposits, and securities for the quarter.
Stock Repurchase Plan and Equity
Given the company's strong current capital position, INDB announced a new stock repurchase plan, authorizing repurchases of up to $100 million in common stock. The plan is scheduled to expire on October 18, 2024. Stockholders' equity increased 1.1% compared to June 30, 2023, driven primarily by strong earnings retention. The company's ratio of common equity to assets of 14.90% at September 30, 2023, represented an increase of 18 basis points, or 1.2%, from June 30, 2023, and an increase of 60 basis points, or 4.2%, from September 30, 2022.
Looking Ahead
Jeffrey Tengel, the Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company, expressed pride in the company's commitment to its customers and communities. He stated,
Our strong balance sheet and capital levels position us well for continuing to successfully navigate forward in a challenging environment."
As the company moves forward, it will continue to focus on delivering strong business activity and solid financial results.This article first appeared on GuruFocus.
