Independent Bank Corp. (NASDAQ:INDB) Q3 2024 Results Conference Call October 18, 2024 10:00 AM ET

Company Participants

Jeff Tengel - CEO
Mark Ruggiero - CFO & Head of Consumer Lending

Conference Call Participants

Steve Moss - Raymond James
Mark Fitzgibbon - Piper Sandler
Laurie Hunsicker - Seaport Research
Christopher O'Connell - KBW

Operator

Good day, and welcome to the Independent Bank Corp Third Quarter 2024 Earnings Call Conference Call. All participants will be in listen only mode. [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 our discussions 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 also note that this event is being recorded.

I would now like to turn the conference over to Jeff Tengel, CEO. Please go ahead.

Jeff Tengel

Thank you. Good morning, and thanks for joining us today. I'm accompanied this morning by CFO and Head of Consumer Lending, Mark Ruggiero. I'm pleased to report that our Q3 performance felt like a bit of an inflection point with margins improving and deposits showing continued growth.

This performance reflects our team's continued commitment to developing and deepening customer relationships. As we discussed last quarter, we have one large commercial real estate office loan that matures in the Q1 of 2025, which is experiencing stress. While this loan is current and continues to pay, we proactively moved it to NPA status given the uncertain outlook and lack of commitment from the sponsor.

Recall, this loan came over with the East Boston Savings acquisition and has been adversely rated since close. A sizable reserve was set up in the Q3 in anticipation of its ultimate resolution, and we are actively exploring all avenues, for resolution prior to maturity. Mark will have more on how this loan impacted our Q3 results. However, we believe it is a one-off situation and further demonstrates our long-standing position of addressing problem loans head on and not kicking the can down the road. Absent the elevated provision, our quarter was strong with all the fundamentals of our franchise intact and performing well.