Independent Bank earnings rose to $17.9 million in the third quarter of 2026 from $17.5 million a year earlier, as net interest income grew for a 13th consecutive quarter. Diluted earnings per share fell to $0.80 from $0.84.

Key Takeaways

  • Net interest income increased 15.4% from the second quarter and 21.8% from a year earlier.
  • Loans grew by $116.6 million excluding the acquired High Point portfolio.
  • Management expects about $3 million in additional merger-related expenses in the fourth quarter.

Independent Bank earnings and interest income

The company reported adjusted net income of $20.6 million, or $0.92 per diluted share, excluding $2.7 million in after-tax merger-related expenses. Results were released on October 27, 2026.

The tax-equivalent net interest margin rose 11 basis points from the second quarter to 3.82%. Excluding purchase accounting accretion, the margin was 3.76%, up 5 basis points.

Noninterest expense increased to $44.8 million from $34.1 million a year earlier, including $3.5 million in merger-related expenses. Noninterest income rose to $15.8 million from $11.9 million.

Loan growth and credit costs

Excluding High Point loans, net loans increased by $116.6 million from June 30, an annualized growth rate of 10.5%. Total loans grew by $483.1 million during the quarter, including the acquired portfolio. Deposits reached $5.5 billion, with the quarterly increase including $543.5 million from High Point.

The provision for credit losses was $4.8 million. Nonperforming loans rose to $39.2 million, or 80 basis points of total loans, from 74 basis points at June 30.

Joel Rahn, head of commercial banking, said a roughly $30 million commercial development credit remained in bankruptcy proceedings. He said approximately $8 million was backed by government guarantees and management believed the bank was fully reserved for potential loss exposure.

High Point integration and outlook

Chief Financial Officer Gavin Mohr said integration cost savings had lagged the original plan because the bank kept both organizations fully staffed through the transition. He expects approximately $3 million in additional merger-related costs in the fourth quarter.

The bank’s High Point customer transition guidance says accounts and services will move from November 6 through November 9, 2026. Digital banking is scheduled to be unavailable over the weekend, with access through Independent Bank beginning Monday morning.

Mohr said the previous forecast for quarterly margin expansion of 2 to 4 basis points remained reasonable. Rahn said he expected low double-digit commercial loan growth to continue into 2027. These are management expectations, not reported results.

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