Independent Bank 8K Announces Net Income Growth of 21% for the Second Quarter of 2005 | INDB 21 Jul 05


Shareholder Relations		NEWS RELEASE

288 Union Street, Rockland, MA 02370		Contact:

Chris Oddleifson
President and
Chief Executive Officer
(781) 982-6660

Denis K. Sheahan
Chief Financial Officer
(781) 982-6341

INDEPENDENT BANK CORP. ANNOUNCES NET INCOME GROWTH OF 21% FOR
THE SECOND QUARTER OF 2005

Rockland, Massachusetts (July 21, 2005). Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced that net income for the quarter ended June 30, 2005 was $8.0 million, an increase of 21.5% from the same period last year and that diluted earnings per share for the quarter were $0.52, an increase of $0.07 diluted earnings per share compared to $0.45 for the quarter ended June 30, 2004. For the six months ended June 30, 2005, net income was $16.0 million and diluted earnings per share were $1.03, an increase of $2.6 million or $0.13 diluted earnings per share, respectively, when compared to net income of $13.3 million and diluted earnings per share of $0.90 for the six months ended June 30, 2004.

Comparing the three months ending June 30, 2005 to the same period last year, net interest income increased $3.4 million, or 14.7%, while net interest income for the six month ended June 30, 2005 increased $5.8 million, or 12.5% from the six months ended June 30, 2004. The net interest margin was 3.84% for both the three and six months ended June 30, 2005, as compared to 3.84% and 3.99%¹ for the three and six months ended June 30, 2004, respectively.

Non-interest income increased by $252,000, or 3.9%, and decreased by $417,000, or (3.0%) during the three and six months ended June 30, 2005, respectively, as compared to the same periods in the prior year.

Service charges on deposit accounts increased by $126,000, or 4.1%, and by $187,000, or 3.1% for the three and six months ended June 30, 2005, respectively, as compared to the same periods in 2004, reflecting growth in core deposits.

	Ø		Investment management services income increased by $165,000, or 13.2%, and $323,000, or 13.9%, for the three and six months ended June 30, 2005, compared to the same periods last year due to growth in managed assets. Assets under administration increased by 19.5% from the same period last year to $603.0 million.

	Ø		Mortgage banking income decreased by $273,000, or (31.9%), and by $80,000, or (5.0%) for the three and six months ended June 30, 2005 as compared to the same periods in 2004. Loan originations decreased in 2005 as compared to the prior year due, at least in part, to inclement weather that lasted well into spring.

	Ø		The balance of the mortgage servicing asset is $3.0 million and loans serviced amounted to $363.1 million as of June 30, 2005.

	Ø		Gains on sale of securities totaled $273,000 in the second quarter of 2005. There were no gains realized on sale of securities in the second quarter of 2004. For the six months ended June 30, 2005 the gain on sale of securities totaled $616,000 a decrease of $381,000, or (38.2%) from the $997,000 recorded in the six months ended June 30, 2004.

	Ø		Other non-interest income increased by $75,000, or 10.5%, and decreased by $393,000, or (21.1%) for the three and six months ended June 30, 2005, as compared to the same period in 2004. The decrease in the six month comparison is primarily due to a decrease in commercial loan prepayment fees.

Non-interest expense increased by $1.4 million, or 7.7%, and by $2.3 million, or 6.0% for the three and six months ended June 30, 2005, as compared to the same periods in the prior year.

	Ø		Salaries and employee benefits increased by $2.2 million, or 21.9%, and by $3.0 million, or 14.4% for the three and six months ended June 30, 2005, as compared to the same periods in the prior year. Salaries increased by $896,000, or 11.5%, and by $1.3 million, or 8.4%, respectively, for the three and six months ended June 30, 2005, compared to the same periods in 2004 as a result of annual merit increases for employees and select additions to staff to support strategic initiatives. Accruals for incentive compensation increased by $1.0 million and $1.2 million for the three months the six months ended June 30, 2005, respectively, as compared to the same periods last year due to improved operating performance.

	Ø		Occupancy and equipment related expense increased by $388,000 or 17.6%, and by $695,000, or 15.5% for the three and six months ended June 30, 2005 as compared to the same periods in the prior year. The increase in this expense is primarily driven by facility’s rent associated with the Falmouth Bancorp, Inc. acquisition which closed in mid 2004, lease buyout expense, twode novobranches, and increased depreciation expense related to a new phone system installed in 2004. Snow removal expense due to inclement weather also contributed to the increase in

			occupancy and equipment related expense for the six months ended June 30, 2005 as compared to the same period in 2004.

	Ø		Data processing and facilities management expense has decreased $162,000, or (14.1%) and $257,000, or (11.6%), for the three and six months ended June 30, 2005 compared to the same period in 2004, respectively, as a result of a new data processing contract finalized in the latter part of 2004.

	Ø		Other non-interest expenses decreased by $746,000, or (14.0%), and by $959,000, or (9.6%), for the three and six months ended June 30, 2005, as compared to the same periods in the prior year. The decrease in other non-interest expenses for the year is primarily attributable to decreases in telephone expense of $321,000 due to the implementation of the aforementioned new phone system, lower consultant fees of $534,000 associated with commercial lending process improvement and data warehousing studies in 2004, and the timing of advertising campaigns of $377,000.

Total assets increased by $46.5 million, or 1.6%, from December 31, 2004 to $3.0 billion at June 30, 2005.

	Ø		Securities decreased by $65.9 million, or (8.1%), during the six months ended June 30, 2005. This resulted from the sale of $53.3 million in longer duration securities for the three months ended June 30, 2005 and $62.9 million for the six months ended June 30, 2005. The ratio of securities to total assets as of June 30, 2005 is 25.2%.

	Ø		Total loans increased by $93.8 million, or 4.9%, during the six months ended June 30, 2005. Commercial loans increased by $50.5 million, or 5.6%. Consumer loans in total increased $36.4 million, or 6.9%, primarily due to promotional growth in variable rate Home Equity lines of credit. The Consumer – Auto loan portfolio decreased by $2.4 million, or (0.9%), during the first six months as production in this segment of the loan portfolio was de-emphasized due to narrowing spreads. Business banking loans totaled $48.7 million, representing growth of 11.6% during the first six months of 2005. Residential loans increased $1.9 million, or 0.4%, during the first six months of 2005.

Total deposits of $2.1 billion at June 30, 2005 increased $89.2 million, or 4.3%, compared to December 31, 2004. The Company experienced growth in core deposits of $41.5 million, or 2.6%, partially attributable to seasonal inflows. Time deposits increased by $47.7 million, or 10.6%, due to promotional certificate offerings. Borrowings decreased by $52.8 million, or (8.1%), during the six months ended June 30, 2005.

Stockholders’ equity as of June 30, 2005 totaled $220.5 million, as compared to $210.7 million at December 31, 2004. The Tier 1 leverage capital ratio at June 30, 2005 was 7.28%, maintaining the Company’s well-capitalized position.

Nonperforming assets totaled $2.1 million at June 30, 2005 (0.07% of total assets), as compared to $2.7 million (0.09% of total assets) reported at December 31, 2004. The allowance for loan losses increased slightly to $26.1 million at June 30, 2005

compared to $25.2 million at December 31, 2004. The Company’s allowance for loan losses covered nonperforming loans 12.4 times at June 30, 2005 compared to 9.3 times coverage at December 31, 2004. The Company maintained a reserve to loan ratio of 1.30% at June 30, 2005.

Chris Oddleifson, Chief Executive Officer and President of Independent Bank Corp. and Rockland Trust Company, stated that; “I am pleased with the earnings growth experienced in the second quarter. I remain confident that our commitment to customers, the expansion of our product offerings, our focus on continuous process improvement, and our prudent underwriting practices will continue to deliver strong financial performance.”

Christopher Oddleifson, Chief Executive Officer and President, and Denis K. Sheahan, Chief Financial Officer, of Independent Bank Corp., will host a conference call to discuss second quarter earnings at 10:00 a.m. Eastern Time on Friday, July 22, 2005. Internet access to the call is available on the Company’s website athttp://www.RocklandTrust.com or by telephonic access by dial-in at 1-877-407-8031 reference: INDB. A replay of the call will be available until 11:59 p.m. on July 27, 2005 by calling 1-877-660-6853 Account Number: 286, Conference ID: 159129. The webcast replay will be available until October 22, 2005.

Independent Bank Corp.’s sole bank subsidiary, Rockland Trust Company, currently has $3.0 billion in assets. Rockland Trust Company is a full-service community bank serving southeastern Massachusetts and Cape Cod. To find our more about the products and services available at Rockland Trust Company, please visit our website atwww.RocklandTrust.com.

This press release contains certain “forward-looking statements” with respect to the financial condition, results of operations and business of the Company. Actual results may differ from those contemplated by these statements. The Company wishes to caution readers not to place undue reliance on any forward-looking statements. The Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise.

Footnote:

1. A major reason for the variance in the net interest margin between the six months ended June 30, 2005 and June 30, 2004 was the implementation, during the first quarter of 2004, of FIN 46R: Financial Accounting Standards Board (“FASB”) Interpretation (“FIN”) No. 46 Revised, “Consolidation of Variable Interest Entities - an Interpretation of Accounting Research Bulletin No. 51”. FIN 46R addresses limited purpose trusts formed to issue trust preferred securities. FIN 46R required the Company to deconsolidate its two subsidiary trusts (Independent Capital Trust III and Independent Capital Trust IV) on March 31, 2004. The result of deconsolidating these subsidiary trusts is that trust preferred securities of the trusts, which were classified between liabilities and equity on the balance sheet (mezzanine section), no longer appear on the consolidated balance sheet of the Company. The related minority interest expense also is no longer included in the consolidated statement of income. Due to FIN 46R, the junior subordinated debentures of the parent company that were previously eliminated in consolidation are now included on the consolidated balance sheet within total borrowings. The interest expense on the junior subordinated debentures is included in the calculation of net interest margin of the consolidated company, negatively impacting the net interest margin by approximately 0.19% on an annualized basis. There is no impact on net income as the amount of interest previously recognized as minority interest is equal to the amount of interest expense that is recognized currently in the net interest margin offset by the dividend income on the subsidiary trusts common stock recognized in other non-interest income.

INDEPENDENT BANK CORP. FINANCIAL SUMMARY
(Unaudited — Dollars in Thousands)



CONSOLIDATED BALANCE SHEETS	June 30,			December 31,			$			%
	2005			2004			Variance			Change

Assets
Cash and Due From Banks	$	76,454		$	62,961			13,493			21.43	%
Fed Funds Sold and Short Term Investments		3,564			2,735			829			30.31	%
Securities
Trading Assets		1,539			1,572			(33	)		-2.10	%
Securities Available for Sale		614,760			680,286			(65,526	)		-9.63	%
Securities Held to Maturity		106,724			107,967			(1,243	)		-1.15	%
Federal Home Loan Bank Stock		29,287			28,413			874			3.08	%

Total Securities		752,310			818,238			(65,928	)		-8.06	%

Loans
Commercial and Industrial		160,345			156,260			4,085			2.61	%
Commercial Real Estate		635,977			613,300			22,677			3.70	%
Commercial Construction		150,340			126,632			23,708			18.72	%
Business Banking		48,742			43,673			5,069			11.61	%
Residential Real Estate		426,753			427,556			(803	)		-0.19	%
Residential Construction		9,423			7,316			2,107			28.80	%
Residential Loans Held for Sale		11,511			10,933			578			5.29	%
Consumer — Home Equity		229,899			194,458			35,441			18.23	%
Consumer — Auto		281,564			283,964			(2,400	)		-0.85	%
Consumer — Other		55,583			52,266			3,317			6.35	%

Total Loans		2,010,137			1,916,358			93,779			4.89	%
Less — Allowance for Loan Losses		(26,050	)		(25,197	)		(853	)		3.39	%

Net Loans		1,984,087			1,891,161			92,926			4.91	%

Bank Premises and Equipment		36,303			36,449			(146	)		-0.40	%
Goodwill and Core Deposit Intangible		57,127			57,288			(161	)		-0.28	%
Other Assets		80,539			75,094			5,445			7.25	%

Total Assets	$	2,990,384		$	2,943,926			46,458			1.58	%


Liabilities and Stockholders’ Equity
Deposits
Demand Deposits	$	528,295		$	495,500			32,795			6.62	%
Savings and Interest Checking Accounts		611,050			614,481			(3,431	)		-0.56	%
Money Market		513,181			501,065			12,116			2.42	%
Time Certificates of Deposit		496,871			449,189			47,682			10.62	%

Total Deposits		2,149,397			2,060,235			89,162			4.33	%

Federal Home Loan Bank Borrowings		460,784			537,919			(77,135	)		-14.34	%
Fed Funds Purchased and Assets Sold Under Repurchase Agreements		86,976			61,533			25,443			41.35	%
Junior Subordinated Debentures		51,546			51,546			0			0.00	%
Treasury Tax and Loan Notes		3,047			4,163			(1,116	)		-26.81	%

Total Borrowings		602,353			655,161			(52,808	)		-8.06	%

Total Deposits and Borrowings		2,751,750			2,715,396			36,354			1.34	%
Other Liabilities		18,106			17,787			319			1.79	%
Stockholders’ Equity		220,528			210,743			9,785			4.64	%

Total Liabilities and Stockholders’ Equity	$	2,990,384		$	2,943,926			46,458			1.58	%

INDEPENDENT BANK CORP. FINANCIAL SUMMARY
(Unaudited — Dollars in Thousands)


CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended									Six Months ended
	June 30,						Percent			June 30,						Percent
	2005			2004			Change			2005			2004			Change

INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	36		$	0			100.00	%	$	66		$	0			100.00	%
Interest and Dividends on Securities		8,821			8,602			2.55	%		17,638			16,397			7.57	%
Interest on Loans		29,769			23,540			26.46	%		57,897			46,819			23.66	%

Total Interest Income		38,626			32,142			20.17	%		75,601			63,216			19.59	%

INTEREST EXPENSE
Interest on Deposits		6,080			4,589			32.49	%		11,333			8,886			27.54	%
Interest on Borrowed Funds		6,202			4,584			35.30	%		12,056			7,927			52.09	%

Total Interest Expense		12,282			9,173			33.89	%		23,389			16,813			39.11	%

Net Interest Income		26,344			22,969			14.69	%		52,212			46,403			12.52	%
Less — Provision for Loan Losses		1,105			744			48.52	%		2,035			1,488			36.76	%

Net Interest Income after Provision for Loan Losses		25,239			22,225			13.56	%		50,177			44,915			11.72	%

NON-INTEREST INCOME
Service Charges on Deposit Accounts		3,178			3,052			4.13	%		6,149			5,962			3.14	%
Investment Management Services Income		1,413			1,248			13.22	%		2,651			2,328			13.87	%
Mortgage Banking Income		583			856			-31.89	%		1,512			1,592			-5.03	%
BOLI Income		474			588			-19.39	%		897			970			-7.53	%
Net Gain on Sale of Securities		273			—			100.00	%		616			997			-38.21	%
Other Non-Interest Income		788			713			10.52	%		1,470			1,863			-21.10	%

Total Non-Interest Income		6,709			6,457			3.90	%		13,295			13,712			-3.04	%

NON-INTEREST EXPENSE
Salaries and Employee Benefits		12,162			9,976			21.91	%		23,953			20,942			14.38	%
Occupancy and Equipment Expenses		2,597			2,209			17.56	%		5,192			4,497			15.45	%
Data Processing and Facilities Management		991			1,153			-14.05	%		1,953			2,210			-11.63	%
Merger and Acquisition Expense		—			221			-100.00	%		—			221			-100.00	%
Other Non-Interest Expense		4,586			5,332			-13.99	%		9,027			9,986			-9.60	%

Total Non-Interest Expense		20,336			18,891			7.65	%		40,125			37,856			5.99	%

Minority Interest		—			—			—			—			1,072			-100.00	%

INCOME BEFORE INCOME TAXES		11,612			9,791			18.60	%		23,347			19,699			18.52	%

PROVISION FOR INCOME TAXES		3,571			3,170			12.65	%		7,392			6,378			15.90	%

NET INCOME	$	8,041		$	6,621			21.45	%	$	15,955		$	13,321			19.77	%


BASIC EARNINGS PER SHARE	$	0.52		$	0.45			15.56	%	$	1.04		$	0.91			14.29	%
DILUTED EARNINGS PER SHARE	$	0.52		$	0.45			15.56	%	$	1.03		$	0.90			14.44	%
BASIC AVERAGE SHARES		15,372,253			14,688,789			4.65	%		15,359,374			14,670,858			4.69	%
DILUTED AVERAGE SHARES		15,504,976			14,853,750			4.38	%		15,508,024			14,856,008			4.39	%

PERFORMANCE RATIOS:
Net Interest Margin (FTE)		3.84	%		3.84	%		0.00	%		3.84	%		3.99	%		-3.76	%
Return on Average Assets		1.07	%		1.01	%		5.94	%		1.07	%		1.05	%		1.90	%
Return on Average Equity		14.85	%		15.00	%		-1.00	%		14.86	%		15.08	%		-1.46	%

INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA
(Unaudited — Dollars in Thousands)


			Three Months Ended June 30,
					2005							2004
					Interest							Interest
	Ending		Average		Earned/		Yield/			Average		Earned/		Yield/
	Balance		Balance		Paid		Rate			Balance		Paid		Rate

Interest-Earning Assets:

Federal Funds Sold and Assets Purchased Under Resale Agreement	$	3,564	$	5,028	$	36		2.86	%	$	—	$	—		—
Securities:
Trading Assets		1,539		1,527		5		1.31	%		1,530		5		1.31	%
Taxable Investment Securities		688,250		741,518		8,142		4.39	%		719,125		7,902		4.40	%
Non-taxable Investment Securities (1)		62,521		62,444		1,037		6.64	%		64,369		1,069		6.64	%

Total Securities:		752,310		805,489		9,184		4.56	%		785,024		8,976		4.57	%
Loans (1)		2,010,137		1,983,148		29,855		6.02	%		1,657,043		23,620		5.70	%

Total Interest-Earning Assets	$	2,766,011	$	2,793,665	$	39,075		5.59	%	$	2,442,067	$	32,596		5.34	%

Cash and Due from Banks		76,454		65,267							67,175
Other Assets		147,919		144,838							107,780

Total Assets	$	2,990,384	$	3,003,770						$	2,617,022

Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	611,050	$	597,232	$	662		0.44	%	$	542,451	$	753		0.56	%
Money Market and Super Interest Checking Accounts		513,181		533,563		2,334		1.75	%		432,485		1,255		1.16	%
Time Deposits		496,871		502,743		3,084		2.45	%		471,974		2,582		2.19	%

Total interest-bearing deposits:		1,621,102		1,633,538		6,080		1.49	%		1,446,910		4,590		1.27	%
Borrowings:
Federal Home Loan Bank Borrowings	$	460,784	$	502,255	$	4,804		3.83	%	$	388,976	$	3,278		3.37	%
Federal Funds Purchased and Assets Sold Under Repurchase Agreement		86,976		69,992		270		1.54	%		75,907		207		1.09	%
Junior Subordinated Debentures		51,546		51,546		1,118		8.68	%		51,546		1,095		8.50	%
Treasury Tax and Loan Notes		3,047		1,681		10		2.38	%		3,526		4		0.45	%

Total Borrowings:		602,353		625,474		6,202		3.97	%		519,955		4,584		3.53	%

Total Interest-Bearing Liabilities	$	2,223,455	$	2,259,012	$	12,282		2.17	%	$	1,966,865	$	9,174		1.87	%

Demand Deposits		528,295		510,879							458,660

Company-Obligated Mandatorily Redeemable Securities of Subsidiary Holding Solely Parent Company Debentures of the Corporation		—		—							—
Other Liabilities		18,106		17,230							14,879

Total Liabilities	$	2,769,856	$	2,787,121						$	2,440,404
Stockholders’ Equity		220,528		216,649							176,618

Total Liabilities and Stockholders’ Equity	$	2,990,384	$	3,003,770						$	2,617,022


Net Interest Income					$	26,793						$	23,422


Interest Rate Spread (2)								3.42	%						3.47	%


Net Interest Margin (2)								3.84	%						3.84	%


Supplemental Information:
Total Deposits, including Demand Deposits	$	2,149,397	$	2,144,417	$	6,080				$	1,905,570	$	4,590
Cost of Total Deposits								1.13	%						0.96	%
Total Funding Liabilities, including Demand Deposits	$	2,751,750	$	2,769,891	$	12,282				$	2,425,525	$	9,174
Cost of Total Funding Liabilities								1.77	%						1.51	%


(1)		The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $449 for the three months ended June 30, 2005 and $453 for the three months ended June 30, 2004.

(2)		Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA
(Unaudited — Dollars in Thousands)


			Six Months Ended June 30,
					2005							2004
					Interest							Interest
	Ending		Average		Earned/		Yield/			Average		Earned/		Yield/
	Balance		Balance		Paid		Rate			Balance		Paid		Rate

Interest-earning Assets:

Federal Funds Sold and Assets Purchased Under Resale Agreement	$	3,564	$	4,957	$	66		2.66	%	$	—	$	—		—
Securities:
Trading Assets		1,539		1,549		16		2.07	%		1,518		19		2.50	%
Taxable Investment Securities		688,250		740,721		16,283		4.40	%		678,262		14,937		4.40	%
Non-taxable Investment Securities (1)		62,521		62,549		2,059		6.58	%		65,592		2,218		6.76	%

Total Securities:		752,310		804,819		18,358		4.56	%		745,372		17,174		4.61	%
Loans (1)		2,010,137		1,958,097		58,070		5.93	%		1,629,941		46,980		5.76	%

Total Interest-Earning Assets	$	2,766,011	$	2,767,873	$	76,494		5.53	%	$	2,375,313	$	64,154		5.40	%

Cash and Due from Banks		76,454		63,450							66,263
Other Assets		147,919		142,710							105,921

Total Assets	$	2,990,384	$	2,974,033						$	2,547,497	$

Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	611,050	$	597,979		1,320		0.44	%	$	531,527	$	1,440		0.54	%
Money Market and Super Interest Checking Accounts		513,181		516,610		4,164		1.61	%		399,424		2,325		1.16	%
Time Deposits		496,871		500,050		5,849		2.34	%		470,578		5,121		2.18	%

Total interest-bearing deposits:		1,621,102		1,614,639		11,333		1.40	%		1,401,529		8,886		1.27	%
Borrowings:
Federal Home Loan Bank borrowings	$	460,784	$	505,597	$	9,342		3.70	%	$	391,465	$	6,511		3.33	%
Federal Funds Purchased and Assets Sold Under Repurchase Agreement		86,976		67,372		464		1.38	%		59,703		300		1.00	%
Junior Subordinated Debentures		51,546		51,546		2,235		8.67	%		26,056		1,107		8.50	%
Treasury Tax and Loan Notes		3,047		1,848		15		1.62	%		3,682		8		0.43	%

Total borrowings:		602,353		626,363		12,056		3.85	%		480,906		7,926		3.30	%

Total Interest-Bearing Liabilities	$	2,223,455	$	2,241,002	$	23,389		2.09	%	$	1,882,435	$	16,812		1.79	%

Demand Deposits		528,295		501,041							448,063

Company-Obligated Mandatorily Redeemable Securities of Subsidiary Holding Solely Parent Company Debentures of the Corporation		—		—							23,668
Other Liabilities		18,106		17,217							16,669

Total Liabilities	$	2,769,856	$	2,759,260						$	2,370,835
Stockholders’ Equity		220,528		214,773							176,662

Total Liabilities and Stockholders’ Equity	$	2,990,384	$	2,974,033						$	2,547,497


Net Interest Income					$	53,105						$	47,342


Interest Rate Spread (2)								3.44	%						3.61	%


Net Interest Margin (2)								3.84	%						3.99	%


Supplemental Information:
Total Deposits, including Demand Deposits	$	2,149,397	$	2,115,680	$	11,333				$	1,849,592	$	8,886
Cost of Total Deposits								1.07	%						0.96	%
Total Funding Liabilities, including Demand Deposits	$	2,751,750	$	2,742,043	$	23,389				$	2,330,498	$	16,812
Cost of Total Funding Liabilities								1.71	%						1.44	%


(1)		The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $893 for the six months ended June 30, 2005 and $939 for the six months ended June 30, 2004.

(2)		Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.


	As Of
	June 30,			December 31,
	2005			2004

Asset Quality
Nonperforming Loans		2,099			2,702
Nonperforming Assets		2,099			2,702
Net charge-offs (year to date)		1,182			1,853
Net charge-offs to average loans (annualized)		0.12	%		0.11	%
Loans 90 days past due & still accruing		218			245
Nonperforming Loans/Gross Loans		0.10	%		0.14	%
Allowance for Loan Losses/Nonperforming Loans		1241.07	%		932.53	%
Loans/Total Deposits		93.52	%		93.02	%
Allowance for Loan Losses/Total Loans		1.30	%		1.31	%

Financial Ratios
Book Value per Share	$	14.34		$	13.75
Tangible Capital/Tangible Asset		5.57	%		5.32	%
Tangible Capital/Tangible Asset (proforma to include the deductibility of goodwill)		6.07	%		5.82	%
Tangible Book Value per Share	$	10.62		$	10.01
Tangible Book Value per Share (proforma to include the deductibility of goodwill)	$	11.57		$	10.96

Capital Adequacy
Tier one leverage capital ratio (1)		7.28	%		7.06	%


(1)		Estimated number for June 30, 2005

Independent Bank (INDB) 8-KIndependent Bank Corp. Announces Net Income Growth of 21% for the Second Quarter of 2005