Full Transcript: Independent Bank Q2 2026 Earnings Call

On Friday, Independent Bank (NASDAQ: INDB ) discussed second-quarter financial results during its earnings call. The full transcript is provided below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

Access the full call at Summary Independent Bank reported solid deposit growth and strong C&I loan growth, despite a smaller average balance sheet and lower loan accretion income. The company announced a new $200 million share repurchase plan and completed $75 million in buybacks during the quarter. The adjusted net interest margin improved by 4 basis points, driven by pricing discipline across loan and deposit portfolios. The wealth management business continues to be a strong fee income driver, with positive results in traditional asset management and business advisory services.

Management remains vigilant on expense levels and is preparing for a core operating platform transition set for October. The commercial loan pipeline increased significantly, positioning the company for positive loan growth in the second half of the year. CEO Jeff Tangle announced he is cancer-free, a positive personal update that bolstered the overall sentiment of the call. Full Transcript OPERATOR Joining me on today's call is Jeff Tangle, CEO, and Mark Ruggiero, CFO.

After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press Star one to raise your hand. To withdraw your question, press Star one again. Before proceeding, please note that during this call we will be making forward-looking statements.

Actual results may differ materially from these statements due to a number of factors including those described in our earnings release and other SEC filings. We undertake no obligation to publicly update any such statements. In addition, some of our discussion today may include references to certain non-GAAP financial measures. Information about these non-GAAP measures, including reconciliation to GAAP measures, may be found in our earnings release and other SEC filings.

These SEC filings can be accessed via the Investor Relations section of our website. Finally, please note that this event is being recorded. I would now like to turn the conference over to Jeff Tangle, CEO. Please go ahead.

Jeff Tangle, CEO Thank you. Good morning and thanks for joining us today. I'm accompanied this morning by CFO and Head of Consumer Lending Mark Ruggiero. Before we discuss our quarterly results, I wanted to share an update on my health.

We released an 8K in February disclosing that I had been diagnosed with non-Hodgkin's Lymphoma. I'm happy to report that I have finished my treatments and learned last Friday that I am cancer-free and in remission. So on that good note, I'd like to turn to our quarterly results. While activity was slow early in the second quarter, momentum accelerated as the quarter progressed resulting in solid deposit growth, strong CNI loan growth, continued improvement in the adjusted nimble, aggressive buyback activity, and excellent results in our wealth management business.

These positives were offset by a smaller average balance sheet and lower loan accretion income. Our deposit franchise continued to differentiate itself, producing over $300 million of non-time deposits representing 7% annualized growth while maintaining a stable cost of deposits of 136. These results were achieved in an environment of heightened competition and expectations that the Fed will keep rates higher for longer. On the lending front, we experienced robust growth in the CNI and home equity portfolios offset by heavy loan payoffs within the CREE Book.

With respect to CNI, excluding the impact of the $37 million decrease in our dealer floor plan business, which we have now largely exited, our C and I loans rose by 116 million, a healthy 10% on an annualized basis. This growth was broad-based across all of our market segments, investment, CRE, and construction loans. Conversely, declined 176 million during the quarter, primarily reflecting elevated payoffs due to a variety of factors including asset sales, refinancing done away from US construction, loans maturing, and going to the permanent market. We like the CREE asset class and will continue to support our clients in this space the way we always have.

This is evidenced by the $203 million in new relationship-based CREE loans we funded in the quarter, up 11% from the first quarter, and the $300 million of new Cree commitments we added. Our CREE concentration now stands at 278. On June 30, our approved commercial loan pipeline totaled 510 million, up from 313 million on March 31. This strong loan pipeline together with continued strong origination activity and an expected normalization of payoff activity positions us well to return to positive commercial loan growth.

The second quarter also saw continued improvement in the adjusted NIM which rose by 4 basis points right in line with our guidance. This reflects pricing discipline across both our loan and deposit portfolios. Mark will elaborate on our NIM during his comments as Mark will also further expand on we maintained a proactive posture in returning excess capital to shareholders with expected further improvement in our profitability and moderate balance sheet growth. Capital management will remain a key priority for the balance of the year.

Our wealth management business continues to be a key fee income driver for us. Second quarter results benefited from strength in our traditional asset management business as well as inroads we have made in the enterprise footprint. I would also highlight momentum in our business advisory services segment where we assist business owners to prepare for and manage the sale of their companies which has shown early signs of being a real positive catalyst for potential AUM inflows with respect to asset quality. W