Independent Bank stock climbs on earnings, revenue beat

Investing.com -- Independent Bank (NASDAQ: INDB) reported third quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $1.90 beating the consensus estimate of $1.85 by $0.05. Revenue of $345.67 million surpassed analyst estimates of $261.27 million.

The company posted net income of $89.7 million for the third quarter, up from $81.8 million in the second quarter. Net interest income increased $9.7 million, or 4.6%, to $220.7 million compared to the prior quarter. Shares rose 3.8% in after-hours trading Thursday following the results.

"In an operating environment with many moving pieces, our disciplined approach and core fundamentals drove a 12% increase in our diluted earnings per share versus the prior quarter results," said Jeffrey Tengel, Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company.

The company's net interest margin expanded 4 basis points to 3.89% compared to the prior quarter. Loan balances increased $158.2 million, or 0.9%, to $18.6 billion at September 30, while deposits grew $135.3 million, or 0.7%, to $20.5 billion. Core deposits increased $232.4 million, or 1.4%, compared to the prior quarter.

Independent Bank generated a return on average assets of 1.42% and return on average common equity of 10.13% for the third quarter, compared to 1.34% and 9.24%, respectively, in the prior quarter.

The company repurchased approximately 679,000 shares for $57.4 million during the third quarter at an average price of $84.60 per share. As of September 30, Independent Bank had approximately $93 million remaining under its $200 million stock buyback plan.

Nonperforming loans increased to $125.7 million, or 0.68% of total loans, from $103.6 million, or 0.56%, in the prior quarter, driven primarily by one office real estate loan. The provision for credit losses was $6.5 million, compared to $6.3 million in the second quarter.

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