Capital guidelines adopted by federal and state regulatory agencies and restrictions imposed by law limit the amount of cash dividends our Bank can pay to us. Under these guidelines, the amount of dividends that may be paid in any calendar year is limited to the Bank’s current year net profits, combined with the retained net profits of the preceding two years. Further, the Bank cannot pay a dividend at any time that it has negative undivided profits. As of June 30, 2025, the Bank had positive undivided profits of $236.3 million. It is not our intent to have dividends paid in amounts that would reduce the capital of our Bank to levels below those which we consider prudent or that would not be in accordance with guidelines of regulatory authorities.

We are also subject to various regulatory capital requirements. The prompt corrective action regulations establish quantitative measures to ensure capital adequacy and require minimum amounts and ratios of total, Tier 1, and common equity Tier 1 capital to risk-weighted assets and Tier 1 capital to average assets. Failure to meet minimum capital requirements can result in certain mandatory, and possibly discretionary, actions by regulators that could have a material effect on our interim condensed consolidated financial statements. In addition, capital adequacy rules include a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets that applies to all supervised financial institutions. To avoid limits on capital distributions and certain discretionary bonus payments we must meet the minimum ratio for adequately capitalized institutions plus the buffer. Under capital adequacy guidelines, we must meet specific capital requirements that involve quantitative measures as well as qualitative judgments by the regulators. The most recent regulatory filings as of June 30, 2025 and December 31, 2024, categorized our Bank as well capitalized and exceeding the minimum ratio for adequately capitalized institutions plus the capital conservation buffer. Management is not aware of any conditions or events that would have changed the most recent Federal Deposit Insurance Corporation (“FDIC”) categorization.


	Actual				Minimum for Adequately Capitalized Institutions				Minimum for Well-Capitalized Institutions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
June 30, 2025
Total capital to risk-weighted assets
Consolidated	$	629,972	14.20	%	$	354,803	8.00	%	NA		NA
Independent Bank	582,441		13.15		354,204		8.00		$	442,755	10.00	%

Tier 1 capital to risk-weighted assets
Consolidated	$	542,401	12.23	%	$	266,102	6.00	%	NA		NA
Independent Bank	526,962		11.90		265,653		6.00		$	354,204	8.00	%

Common equity tier 1 capital to risk-weighted assets
Consolidated	$	503,795	11.36	%	$	199,577	4.50	%	NA		NA
Independent Bank	526,962		11.90		199,240		4.50		$	287,790	6.50	%

Tier 1 capital to average assets
Consolidated	$	542,401	10.07	%	$	215,510	4.00	%	NA		NA
Independent Bank	526,962		9.79		215,217		4.00		$	269,022	5.00	%

December 31, 2024
Total capital to risk-weighted assets
Consolidated	$	622,444	14.22	%	$	350,113	8.00	%	NA		NA
Independent Bank	567,254		12.99		349,335		8.00		$	436,668	10.00	%

Tier 1 capital to risk-weighted assets
Consolidated	$	527,616	12.06	%	$	262,585	6.00	%	NA		NA
Independent Bank	512,546		11.74		262,001		6.00		$	349,335	8.00	%

Common equity tier 1 capital to risk-weighted assets
Consolidated	$	489,044	11.17	%	$	196,939	4.50	%	NA		NA
Independent Bank	512,546		11.74		196,501		4.50		$	283,834	6.50	%

Tier 1 capital to average assets
Consolidated	$	527,616	9.85	%	$	214,332	4.00	%	NA		NA
Independent Bank	512,546		9.58		214,112		4.00		$	267,640	5.00	%


	Consolidated				Independent Bank
	June 30, 2025		December 31, 2024		June 30, 2025		December 31, 2024
	(In thousands)
Total shareholders' equity	$	469,250	$	454,686	$	492,417	$	478,188
Add (deduct)
Accumulated other comprehensive loss for regulatory purposes	64,089		64,146		64,089		64,146
Goodwill and other intangibles	(29,544)		(29,788)		(29,544)		(29,788)
Common equity tier 1 capital	503,795		489,044		526,962		512,546
Qualifying trust preferred securities	38,606		38,572		—		—
Tier 1 capital	542,401		527,616		526,962		512,546
Subordinated debt	32,000		40,000		—		—
Allowance for credit losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets	55,571		54,828		55,479		54,708
Total risk-based capital	$	629,972	$	622,444	$	582,441	$	567,254