Independent Bank Corp (NASDAQ: IBCP) has authorized a 2026 share repurchase plan that allows the company to buy back up to 1,100,000 shares—about 5% of its common stock—throughout 2026, with the plan expiring on December 31, 2026. The board’s approval was announced on December 16, 2025 and the company will fund the buybacks from cash on hand, giving it flexibility to adjust the timing and volume of purchases based on market conditions and regulatory requirements.
The new plan follows the expiration of the 2025 program, which ended on December 31, 2025 after repurchasing 407,113 shares for $12.4 million. By extending the buyback authority, Independent Bank signals confidence in its liquidity position—total assets of roughly $5.5 billion and a debt‑to‑equity ratio of 0.08—while maintaining a strong return on equity of about 15%. The company’s cash‑on‑hand reserves provide a solid foundation for the program without the need for additional debt.
Independent Bank’s capital return strategy has been consistent over the past decade. The bank has increased its dividend for 12 consecutive years and has a dividend yield near 3%. The 2026 buyback plan complements this long‑standing dividend policy, reinforcing the company’s commitment to returning value to shareholders while preserving financial flexibility. The plan also follows a strategic acquisition earlier in 2025—Enterprise Bancorp—which expanded the bank’s footprint and contributed to a 3.2% annualized growth in loan balances and a 13% rise in total deposits, supporting the bank’s net interest income momentum for the ninth consecutive quarter.
The authorization reflects management’s view that the bank’s cash‑flow generation is robust enough to support both dividend payments and share repurchases. By reducing the share count, the company aims to enhance earnings per share and potentially support the share price, while also signaling confidence in its future earnings trajectory. The plan’s size—5% of outstanding equity—underscores the bank’s willingness to allocate capital to shareholders rather than pursuing new debt or large capital expenditures.
The announcement is a material event for investors, as it represents a significant change in the company’s capital structure and a clear indication of management’s confidence in the bank’s financial health and future cash‑flow generation. The plan’s approval, coupled with the bank’s strong balance sheet and consistent dividend history, provides a clear signal of ongoing shareholder value creation.
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