Independent Bank Corp. (NASDAQ:INDB) Q2 2022 Earnings Conference Call July 22, 2022 10:00 AM ET
Company Participants
Christopher Oddleifson - President and CEO
Mark Ruggiero - CFO
Conference Call Participants
Mark Fitzgibbon - Sandler O'Neill
Laurie Hunsicker - Compass Point Research
Christopher O'Connell - KBW
Operator
Good morning and welcome to the Independent Bank Corp. Second Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]
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 discussion today may include references to certain non-GAAP financial measures. Information about these non-GAAP measures including reconciliation to GAAP measure 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 also note that this event is being recorded.
I would now like to turn the conference over to Chris Oddleifson, President and CEO. Please go ahead sir.
Christopher Oddleifson
Good morning everyone and thank you for joining us today. I'm once again accompanied by Mark Ruggiero, our Chief Financial Officer; and Rob Cozzone, our Chief Operating Officer.
Our second quarter performance is a strong one which is driven by the business fundamentals of our franchise. Net income for this past quarter came in at $61.8 million or $1.32 per share, nicely above both prior quarter and prior year results.
Mark will be covering the quarter in greater detail, but highlights include underlying loan activity remains encouraging with net growth of 5% on an annualized basis exclusive of PPP loan runoff.
My colleagues are quite active in meeting the credit needs of our customers. In fact, loan closings in the second quarter grew by 35% over the first quarter volumes to nearly $1 billion and loan pipeline stand at healthy levels as well.
Core deposits have now reached 87% of total deposits and remain a source of great strength and economic value. Higher cost CDs continued to iterate [ph] allowing us to maintain a very low five basis points total deposit costs.
Our balance sheet management has enabled us to clearly benefit from rising rates as evidenced by the notable increase in net interest margin this quarter. And we were positioned to continue to benefit from further rate increases that are widely expected. Mark will comment on this in a moment.