Independent Bank Corp. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting a decrease in net income and net interest income compared to the same periods in 2023. For Q3 2024, net income was $42.9 million, or $1.01 per diluted share, down 29.4% from $60.8 million, or $1.38 per diluted share, in Q3 2023. The nine-month net income also decreased to $142.0 million from $184.7 million in the prior year.
The decline in profitability was primarily attributed to lower net interest income, which fell to $141.7 million in Q3 2024 from $149.9 million in Q3 2023, and a higher provision for credit losses, which increased significantly due to specific reserve allocations on commercial loans. The provision for credit losses for Q3 2024 was $19.5 million, compared to $5.5 million in Q3 2023.
Total interest and dividend income for Q3 2024 rose to $216.5 million, up from $202.9 million in Q3 2023, driven by increased interest from loans. However, net interest income after provision for credit losses decreased to $122.2 million from $144.4 million year-over-year. The net interest margin for Q3 2024 was reported at 3.29%.
Total assets as of September 30, 2024, increased slightly to $19.4 billion from $19.3 billion at the end of 2023, while total deposits rose to $15.4 billion, a 3.9% increase from $14.9 billion. The company experienced strong growth in business and retail deposits, which helped fund loans. However, total borrowings decreased significantly by $555 million, primarily due to a reduction in Federal Home Loan Bank borrowings.
Noninterest income for Q3 2024 was $33.5 million, slightly up from $33.5 million in Q3 2023, with notable increases in deposit account fees and investment management income. The company declared a quarterly cash dividend of $0.57 per share, reflecting a 3.6% increase from the previous year.
The allowance for credit losses increased to $163.7 million as of September 30, 2024, from $142.2 million at the end of 2023, reflecting the company's proactive approach to managing credit risk amid changing economic conditions. Nonperforming loans also rose to $104.2 million, representing 0.73% of gross loans, up from 0.38% at the end of 2023.
Overall, Independent Bank Corp. continues to focus on managing expenses while investing in growth initiatives, with a commitment to maintaining strong capital levels and liquidity.
About INDEPENDENT BANK CORP
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