Independent Bank (INDB) 8-K Independent Bank Corp. Reports Second Quarter 2008 Earnings

Exhibit 99.1

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. REPORTS SECOND QUARTER 2008 EARNINGS

          Rockland, Massachusetts (July 17, 2008). Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced net income of $8.1 million and diluted earnings per share of $0.50 for the quarter ending June 30, 2008. This represents an increase of $0.10, or 25.0%, on a per share basis, from the $0.40 diluted earnings per share recorded in the same quarter a year ago. Net income for the quarter increased $2.4 million as compared to the same period last year. For the six months ended June 30, 2008, net income was $14.4 million and diluted earnings per share were $0.94, an increase of $2.1 million, or $0.08 per diluted share, as compared to net income of $12.3 million and diluted earnings per share of $0.86 for the six months ended June 30, 2007.

          Certain non-core items are included in the computation of earnings in accordance with United States of America generally accepted accounting principles (“GAAP”) in both 2008 and 2007 as indicated by the table below. In an effort to provide investors with information regarding the Company’s results, the Company has disclosed the following non-GAAP information, which management believes provides useful information to the investor. This information should not be viewed as a substitute for operating results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP information which may be presented by other companies.

1

Dollars in Thousands, Except Per Share Data	Three Months Ending
	June 30,
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION	2008		2007		$ Variance			% Variance
NET INCOME (GAAP)	$	8,120	$	5,714	$	2,406			42.1	%
Net Interest Income Components
Add — Write-Off of Debt Issuance Cost, net of tax		—		590		(590	)		n/a
Non-Interest Expense Components
Add — Merger & Acquisition Expenses, net of tax		244		—		244			n/a
Add — Litigation Reserve, net of tax		—		885		(885	)		n/a
NET OPERATING EARNINGS (NON-GAAP)	$	8,364	$	7,189	$	1,175			16.3	%
Diluted Operating Earnings Per Share	$	0.51	$	0.51	$	0.00			0.0	%

Dollars in Thousands, Except Per Share Data	Six Months Ending
	June 30,
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION	2008			2007		$ Variance			% Variance
NET INCOME (GAAP)	$	14,428		$	12,339	$	2,089			16.9	%
Net Interest Income Components
Add — Write-Off of Debt Issuance Cost, net of tax		—			590		(590	)		n/a
Non-Interest Income Components
Add — Net Loss on Sale of Securities, net of tax		396			—		396			n/a
Non-Interest Expense Components
Add — Executive Early Retirement Costs, net of tax		—			264		(264	)		n/a
Add — Merger & Acquisition Expenses, net of tax		728			—		728			n/a
Add — Litigation Reserve, net of tax		—			885		(885	)		n/a
Less — WorldCom Bond Loss Recovery, net of tax		(272	)		—		(272	)		n/a
NET OPERATING EARNINGS (NON-GAAP)	$	15,280		$	14,078	$	1,202			8.5	%
Diluted Operating Earnings Per Share	$	1.00		$	0.98	$	0.02			2.0	%

          Net operating earnings were $8.4 million, or $0.51 on a per diluted share basis, for the three months ending June 30, 2008 compared to net operating earnings and diluted earnings per share for the three months ended June 30, 2007 of $7.2 million and $0.51, respectively, which represents an increase of $1.2 million, or 16.3%. Net operating earnings were $15.3 million, or $1.00 on a per diluted share basis, for the six months ending June 30, 2008 compared to net operating earnings and diluted earnings per share for the six months ended June 30, 2007 of $14.1 million and $0.98, respectively, which represents an increase of $1.2 million, or $0.02 per diluted share.

          Comparing the three months ending June 30, 2008 to the same period last year, net interest income increased $6.7 million, or 28.4%. For the six months ended June 30, 2008, net interest income increased $8.4 million, or 17.8%, from the year ago period, due to the acquisition of Slade’s Ferry Bancorp. (“Slades”) in the first quarter of this year and organic growth. In April 2007, the Company wrote-off approximately $907,000 of unamortized issuance costs related to the refinancing of $25.0 million of Trust Preferred securities. Excluding the write-off of the debt issuance costs, net interest income increased $5.7 million and $7.5 million from the comparative three and six month periods in 2007, respectively. The net interest margin for the three and six month periods ended June 30, 2008 was 4.01% and 3.96%, respectively. The net interest margin was 4.00% and 3.91% for the three and six months ended June 30, 2007, which excludes the write-off of the aforementioned debt issuance costs.See the tables below for reconciliations of net interest income and the net interest margin as adjusted:

2

	Three Months Ended				Six Months Ended
Dollars in Thousands	June 30,				June 30,
	2008		2007		2008		2007
Net Interest Income GAAP	$	30,087	$	23,433	$	55,853	$	47,421
Add — Write-Off of Debt Issuance Cost		—		907		—		907
Net Interest Income as Adjusted	$	30,087	$	24,340	$	55,853	$	48,328

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2008			2007			2008			2007
Net Interest Margin GAAP		4.01	%		3.85	%		3.96	%		3.84	%
Add — Write-Off of Debt Issuance Cost		—			0.15	%		—			0.07	%
Net Interest Margin as Adjusted		4.01	%		4.00	%		3.96	%		3.91	%

          The Company’s allowance for loan losses as a percentage of loans was 1.29% at June 30, 2008, 1.29% at March 31, 2008 and 1.35% June 30, 2007. The provision for loan losses was $1.9 million and $3.2 million for the quarter and six months ended June 30, 2008 compared to $584,000 and $1.5 million for the year ago comparative periods. Net charge-offs were $1.3 million and $2.4 million for the three and six month periods of 2008 as compared to $748,000 and $1.6 million for the three and six month periods of 2007.

          Non-interest income increased by $1.5 million, or 18.3%, and by $1.9 million, or 12.1%, during the three and six months ended June 30, 2008, respectively, as compared to the same periods in the prior year. Excluding the net losses on sale of securities during the six months ended June 30, 2008, non-interest income grew by $2.5 million, or 16.0%, when compared to the six months ended June 30, 2007.See the table below for a reconciliation of non-interest income as adjusted:

3

	Three Months Ended
	June 30,
	2008		2007		$ Variance		% Variance
	(Dollars in Thousands)
Non-Interest Income GAAP	$	9,512	$	8,039	$	1,473		18.3	%
Add — Net Loss on Sale of Securities		—		—		—		n/a
Non-Interest Income as Adjusted	$	9,512	$	8,039	$	1,473		18.3	%

	Six Months Ended
	June 30,
	2008		2007		$ Variance		% Variance
	(Dollars in Thousands)
Non-Interest Income GAAP	$	17,750	$	15,832	$	1,918		12.1	%
Add — Net Loss on Sale of Securities		609		—		609		n/a
Non-Interest Income as Adjusted	$	18,359	$	15,832	$	2,527		16.0	%

The change in non-interest income is attributable to the following:

Ø	Service charges on deposit accounts increased by $432,000, or 12.2%, and by $657,000, or 9.5% for the three and six months ended June 30, 2008, as compared to the same periods in 2007, primarily due to the Slades acquisition.
Ø	Wealth management revenue increased by $934,000, or 42.8%, and $1.8 million, or 45.0%, for the three and six months ended June 30, 2008, as compared to the same periods in 2007. Assets under management at June 30, 2008 were $1.3 billion, an increase of $355.5 million, or 39.7%, as compared to June 30, 2007. On November 1, 2007 Rockland Trust completed its acquisition of assets from the Lincoln, Rhode Island-based O’Connell Investment Services, Inc. The closing of this transaction added approximately $200 million to assets under management.
Ø	Mortgage banking income increased by $140,000, or 17.1%, and $479,000, or 30.1%, for the three and six months ended June 30, 2008, as compared to the same periods in 2007. The balance of the mortgage servicing asset was $2.0 million and loans serviced amounted to $259.3 million as of June 30, 2008, as compared to a mortgage servicing asset balance of $2.3 million and loans serviced amounting to $270.5 million at June 30, 2007.
Ø	There were no gains or losses on the sale of securities during the second quarter of 2008. There was a net loss on the sale of securities of $609,000 during the first quarter of 2008. Of this loss, $742,000 is associated with the sale of the majority of the Slades securities portfolio, which was offset by gains on the sale of agency securities recorded in the quarter. There were no gains or losses on the sale of securities during the first six months of 2007.
Ø	Other non-interest income decreased by $243,000, or (22.5%), and $648,000, or (27.1%), for the three and six months ended June 30, 2008, as compared to the same period in 2007. The decrease year-to-date is primarily attributable to declines in 1031 exchange income, which is due to the slowdown in national commercial real estate markets, and trading asset losses.

4

          Non-interest expense increased by $3.3 million, or 14.2%, and by $5.9 million, or 13.1%, for the three and six months ended June 30, 2008, as compared to the same periods in 2007. When adjusting the three and six month periods for the items listed below, non-interest expense increased $4.3 million, or 19.5%, and $6.9 million, or 16.2%, respectively, as compared to the same periods in 2007.See the table below for a reconciliation of non-interest expense as adjusted:

	Three Months Ended
	June 30,
	2008			2007			$ Variance			% Variance
	(Dollars in Thousands)
Non-Interest Expense GAAP	$	26,562		$	23,266		$	3,296			14.2	%
Less — Merger & Acquisition Expenses		(376	)		—			(376	)		n/a
Less — Litigation Reserve		—			(1,361	)		1,361			n/a
Non-Interest Expense as Adjusted	$	26,186		$	21,905		$	4,281			19.5	%

	Six Months Ended
	June 30,
	2008			2007			$ Variance			% Variance
	(Dollars in Thousands)
Non-Interest Expense GAAP	$	50,594		$	44,719		$	5,875			13.1	%
Less — Executive Early Retirement Costs		—			(406	)		406			n/a
Less — Merger & Acquisition Expenses		(1,120	)		—			(1,120	)		n/a
Less — Litigation Reserve		—			(1,361	)		1,361			n/a
Add — WorldCom Bond Loss Recovery		418			—			418			n/a
Non-Interest Expense as Adjusted	$	49,892		$	42,952		$	6,940			16.2	%

Ø	Salaries and employee benefits increased by $1.9 million, or 14.9%, and $2.9 million, or 11.2%, for the three and six months ended June 30, 2008, as compared to the same periods in 2007. The increase in salaries and benefits is attributable to the Slades acquisition in the first quarter of 2008, annual merit increases, incentive programs, and the O’Connell acquisition in the fourth quarter of 2007.
Ø	Occupancy and equipment expense increased by $628,000, or 24.1%, and $977,000, or 18.9%, for the three and six month periods ending June 30, 2008, as compared to the same periods in 2007. The increase is mainly due to an increase in rent expense due to two new branch locations, increased cost for snow removal for the year-to-date period, utility costs for the quarter-to-date period, and the effects of the Slades acquisition.
Ø	Data processing and facilities management expense increased by $219,000, or 18.2%, and $415,000, or 18.1%, for the three and six month periods ending June 30, 2008, as compared to the same periods in 2007. The increase is partially a result of new functionality as well as an increase in volume due, in part, to the Slades acquisition during the first quarter of 2008.

5

Ø

Merger and acquisition related expenditures totaled $376,000 and $1.1 million, for the three and six month periods ending June 30, 2008, associated with the Slades acquisition in March 2008.

Ø

Other non-interest expense increased by $141,000, or 2.2%, and $441,000, or 4.0%, for the three and six month periods ending June 30, 2008, as compared to the same periods in 2007. The increase in the six-month period is primarily attributable to advertising expenses of $358,000, consulting fees of $218,000, and the amortization of intangible assets of $607,000, partially offset by a recovery on the WorldCom bond loss of $418,000.

     The Company’s effective tax rate was 27% and 25% for the three months ended June 30, 2008 and 2007, respectively.

     Total assets increased by $619.0 million, or 22.4%, to $3.4 billion at June 30, 2008 as compared to December 31, 2007. This increase is primarily a result of the closing of the Slades acquisition during the first quarter of 2008.

Ø

Securities decreased by $18.9 million, or (3.7%), during the six months ended June 30, 2008, primarily due to the sale of approximately $50 million in Government Sponsored Entities’ securities resulting in a gain of $133,000 in January 2008. In addition, the Company sold the majority of Slades investment portfolio during the first quarter incurring a loss of $742,000. The ratio of securities to total assets as of June 30, 2008 was 14.4%, compared to 18.3% at December 31, 2007. The Company does not own any equity or debt issued by either the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.

Ø

Total loans grew by $532.3 million, or 26.1%, during the six months ended June 30, 2008. The Slades acquisition added $471.2 million in loan growth, as shown in the following table:

	June 30,		December 31,		Slades		Organic
	2008		2007		Acquisition		Growth/(Loss)
	(Dollars in Thousands)
Loans
Commercial and Commercial Real Estate Loans	$	1,494,659	$	1,121,310	$	316,081	$	57,268
Business Banking		86,430		69,977		—		16,453
Residential Real Estate		435,767		341,090		114,432		(19,755	)
Consumer — Home Equity		374,580		308,744		38,723		27,113
Consumer — Other		183,829		201,831		2,009		(20,011	)
Total Loans	$	2,575,265	$	2,042,952	$	471,245	$	61,068

Excluding the Slades acquisition, organic loan growth achieved in the first six months of 2008 amounted to $61.1 million, or 6.0% on an annualized basis, and was concentrated in the commercial and home equity lending categories, while the residential real estate and consumer (primarily indirect automobile lending) categories were reduced. Total commercial loans (including business banking) following the Slades acquisition now represent 61.4% of the total loan portfolio.

6

Ø During the second quarter of 2008, Rockland Trust completed a sale and leaseback transaction consisting of 17 branch properties and various individual office buildings. In total the Company sold and concurrently leased back $27.5 million in land and buildings with associated accumulated depreciation of $9.3 million. Net proceeds were $32.2 million, resulting in a gain of $13.2 million, net of transaction costs of $753,000. The gain will be deferred and amortized ratably over the lease terms of the individual buildings, which are either 10 or 15 years, through rent expense as a part of occupancy and equipment. The Company anticipates that the transaction will be immediately accretive to 2008 earnings.

           Total deposits of $2.5 billion increased 22.1% at June 30, 2008 compared to $2.0 billion at December 31, 2007. Of the increase, $410.8 million is a result of the Slades acquisition. Excluding the impact of the acquisition, deposits grew at an annualized rate of 3.6%. See the table below regarding deposits derived from the Slades acquisition:

	June 30,		December 31,		Slades		Organic
	2008		2007		Acquisition		Growth/(Loss)
			(Dollars in Thousands)
Deposits
Demand Deposits	$	564,060	$	471,164	$	74,584	$	18,312
Savings and Interest Checking Accounts		696,457		587,474		119,908		(10,925	)
Money Market		478,852		435,792		38,668		4,392
Time Certificates of Deposit		734,792		532,180		177,609		25,003
Total Deposits	$	2,474,161	$	2,026,610	$	410,769	$	36,782

           Borrowings increased by $73.1 million, or 14.5%, during the six months ending June 30, 2008, compared to December 31, 2007, attributable to the Slades acquisition and organic loan growth.

          The Company reported a return on average assets and a return on average equity in the second quarter of 2008 of 0.97% and 10.70%, respectively, as compared to 0.85% and 10.44% for the same periods in 2007. Operating return on average assets and return on average equity in the second quarter of 2008 was 1.00% and 11.02%, respectively, as compared to 1.07% and 13.13% for the same periods in 2007.

          Stockholders’ equity at June 30, 2008 totaled $301.1 million, as compared to $220.5 million at December 31, 2007. The Tier 1 leverage capital ratio at June 30, 2008 was 7.70%, maintaining the Company’s well-capitalized position.

          At June 30, 2008, the balance of goodwill was $116.6 million and other intangible assets, primarily core deposit intangibles, were $10.3 million. The amount of goodwill and core deposit intangible assets derived from the Slades acquisition was $58.1 million and $9.0 million, respectively.

          The allowance for loan losses was $33.2 million at June 30, 2008 and $26.8 million at December 31, 2007. The majority of the increase in allowance for loan losses is due to the Slades acquisition. Nonperforming assets totaled $12.1 million at June 30, 2008, or 0.36% of total assets, as compared to $11.9 million reported at March 31, 2008, or 0.36% of total assets, and $8.3 million reported at December 31, 2007, or 0.30% of total assets.

7

          Christopher Oddleifson, President and Chief Executive Officer, and Denis K. Sheahan, Chief Financial Officer, of Independent Bank Corp. and Rockland Trust Company, will host a conference call to discuss second quarter earnings at 9:00 a.m. Eastern Time on Friday, July 18, 2008. Internet access to the call is available on the Company’s website athttp://www.RocklandTrust.com or by telephonic access by dial-in at 1-800-860-2442 reference: INDB. A replay of the call will be available by calling 1-877-344-7529, Replay Passcode: 420819. The web cast replay will be available until July 18, 2009 and the telephone replay will be available until July 25, 2008.

          Independent Bank Corp.’s sole bank subsidiary, Rockland Trust Company, currently has approximately $3.4 billion in assets. Rockland Trust offers commercial banking, retail banking, investment management, and insurance sales services from: 63 retail branches, 9 commercial lending centers, and 5 mortgage origination offices located throughout southeastern Massachusetts and on Cape Cod; and, from 4 investment management offices located throughout southeastern Massachusetts, on Cape Cod, and in Rhode Island. To find out more about the products and services available at Rockland Trust, please visit https://www.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.

          This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s management uses these non-GAAP measures in its analysis of the Company’s performance. These non-GAAP measures may exclude significant gains or losses that are unusual in nature, such as securities losses. Because these gains and losses and their impact on the Company’s performance are difficult to predict, management believes that presentations of adjusted financial measures excluding the impact of these gains and losses provide useful information that is essential to a proper understanding of the operating results of the Company. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.

8

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

																March 31, 2008 vs.
CONSOLIDATED BALANCE SHEETS	June 30,			December 31,			$			%			March 31,			June 30, 2008			%
	2008			2007			Variance			Change			2008			Variance			Change
Assets
Cash and Due From Banks	$	89,719		$	67,416			22,303			33.08	%	$	80,598		$	9,121			11.32	%
Fed Funds Sold and Short Term Investments		100			—			—			—			—			100			n/a
Securities
Trading Assets		3,185			1,687			1,498			88.80	%		3,305			(120	)		-3.63	%
Securities Available for Sale		426,894			444,258			(17,364	)		-3.91	%		419,491			7,403			1.76	%
Securities Held to Maturity		33,895			45,265			(11,370	)		-25.12	%		39,335			(5,440	)		-13.83	%
Federal Home Loan Bank Stock		24,603			16,260			8,343			51.31	%		24,603			—			0.00	%
Total Securities		488,577			507,470			(18,893	)		-3.72	%		486,734			1,843			0.38	%
Loans
Commercial and Industrial		261,384			190,522			70,862			37.19	%		259,430			1,954			0.75	%
Commercial Real Estate		1,062,902			797,416			265,486			33.29	%		1,030,085			32,817			3.19	%
Commercial Construction		170,373			133,372			37,001			27.74	%		163,785			6,588			4.02	%
Business Banking		86,430			69,977			16,453			23.51	%		73,853			12,577			17.03	%
Residential Real Estate		417,304			323,847			93,457			28.86	%		426,674			(9,370	)		-2.20	%
Residential Construction		9,292			6,115			3,177			51.95	%		7,622			1,670			21.91	%
Residential Loans Held for Sale		9,171			11,128			(1,957	)		-17.59	%		15,577			(6,406	)		-41.12	%
Consumer — Home Equity		374,580			308,744			65,836			21.32	%		355,367			19,213			5.41	%
Consumer — Auto		141,046			156,006			(14,960	)		-9.59	%		147,232			(6,186	)		-4.20	%
Consumer — Other		42,783			45,825			(3,042	)		-6.64	%		44,317			(1,534	)		-3.46	%
Total Loans		2,575,265			2,042,952			532,313			26.06	%		2,523,942			51,323			2.03	%
Less — Allowance for Loan Losses		(33,231	)		(26,831	)		(6,400	)		23.85	%		(32,609	)		(622	)		1.91	%
Net Loans		2,542,034			2,016,121			525,913			26.09	%		2,491,333			50,701			2.04	%
Bank Premises and Equipment		34,749			39,085			(4,336	)		-11.09	%		51,559			(16,810	)		-32.60	%
Goodwill and Core Deposit Intangible		126,914			60,411			66,503			110.08	%		127,391			(477	)		-0.37	%
Other Assets		104,981			77,910			27,071			34.75	%		92,616			12,365			13.35	%
Total Assets	$	3,387,074		$	2,768,413			618,661			22.35	%	$	3,330,231		$	56,843			1.71	%
Liabilities and Stockholders’ Equity
Deposits
Demand Deposits	$	564,060		$	471,164			92,896			19.72	%	$	549,581		$	14,479			2.63	%
Savings and Interest Checking Accounts		696,457			587,474			108,983			18.55	%		686,808			9,649			1.40	%
Money Market		478,852			435,792			43,060			9.88	%		484,634			(5,782	)		-1.19	%
Time Certificates of Deposit		734,792			532,180			202,612			38.07	%		735,922			(1,130	)		-0.15	%
Total Deposits		2,474,161			2,026,610			447,551			22.08	%		2,456,945			17,216			0.70	%
Borrowings
Federal Home Loan Bank Borrowings		357,949			311,125			46,824			15.05	%		332,105			25,844			7.78	%
Fed Funds Purchased and Assets Sold Under Repurchase Agreements		157,114			138,603			18,511			13.36	%		138,633			18,481			13.33	%
Junior Subordinated Debentures		61,857			51,547			10,310			20.00	%		61,857			—			0.00	%
Other Borrowings		495			3,069			(2,574	)		-83.87	%		10,516			(10,021	)		-95.29	%
Total Borrowings		577,415			504,344			73,071			14.49	%		543,111			34,304			6.32	%
Total Deposits and Borrowings		3,051,576			2,530,954			520,622			20.57	%		3,000,056			51,520			1.72	%
Other Liabilities		34,381			16,994			17,387			102.31	%		29,518			4,863			16.47	%
Stockholders’ Equity		301,117			220,465			80,652			36.58	%		300,657			460			0.15	%
Total Liabilities and Stockholders’ Equity	$	3,387,074		$	2,768,413			618,661			22.35	%	$	3,330,231		$	56,843			1.71	%

9

INDEPENDENT BANK CORP. FINANCIAL SUMMARY
(Unaudited — Dollars in Thousands, Except Per Share Data)

CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended												Six Months Ended
	June 30,						$			%			June 30,						$			%
	2008			2007			Variance			Change			2008			2007			Variance			Change
INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	15		$	289		$	(274	)		-94.81	%	$	35		$	733		$	(698	)		-95.23	%
Interest and Dividends on Securities		5,883			5,526			357			6.46	%		11,775			11,506			269			2.34	%
Interest on Loans		38,657			33,788			4,869			14.41	%		73,825			67,487			6,338			9.39	%
Total Interest Income		44,555			39,603			4,952			12.50	%		85,635			79,726			5,909			7.41	%
INTEREST EXPENSE
Interest on Deposits		9,539			10,816			(1,277	)		-11.81	%		19,854			21,910			(2,056	)		-9.38	%
Interest on Borrowed Funds		4,929			5,354			(425	)		-7.94	%		9,928			10,395			(467	)		-4.49	%
Total Interest Expense		14,468			16,170			(1,702	)		-10.53	%		29,782			32,305			(2,523	)		-7.81	%
Net Interest Income		30,087			23,433			6,654			28.40	%		55,853			47,421			8,432			17.78	%
Less — Provision for Loan Losses		1,902			584			1,318			225.68	%		3,245			1,475			1,770			120.00	%
Net Interest Income after Provision for Loan Losses		28,185			22,849			5,336			23.35	%		52,608			45,946			6,662			14.50	%
NON-INTEREST INCOME
Service Charges on Deposit Accounts		3,963			3,531			432			12.23	%		7,598			6,941			657			9.47	%
Wealth Management		3,114			2,180			934			42.84	%		5,790			3,994			1,796			44.97	%
Mortgage Banking Income		960			820			140			17.07	%		2,073			1,594			479			30.05	%
BOLI Income		637			427			210			49.18	%		1,158			915			243			26.56	%
Net Loss on Sale of Securities		—			—			—			n/a			(609	)		—			(609	)		n/a
Other Non-Interest Income		838			1,081			(243	)		-22.48	%		1,740			2,388			(648	)		-27.14	%
Total Non-Interest Income		9,512			8,039			1,473			18.32	%		17,750			15,832			1,918			12.11	%
NON-INTEREST EXPENSE
Salaries and Employee Benefits		14,945			13,013			1,932			14.85	%		29,088			26,166			2,922			11.17	%
Occupancy and Equipment Expenses		3,235			2,607			628			24.09	%		6,138			5,161			977			18.93	%
Data Processing and Facilities Management		1,421			1,202			219			18.22	%		2,705			2,290			415			18.12	%
Merger & Acquisition Expense		376			—			376			n/a			1,120			—			1,120			n/a
WorldCom Bond Loss Recovery		—			—			—			—			(418	)		—			(418	)		n/a
Other Non-Interest Expense		6,585			6,444			141			2.19	%		11,961			11,102			859			7.74	%
Total Non-Interest Expense		26,562			23,266			3,296			14.17	%		50,594			44,719			5,875			13.14	%
INCOME BEFORE INCOME TAXES		11,135			7,622			3,513			46.09	%		19,764			17,059			2,705			15.86	%
PROVISION FOR INCOME TAXES		3,015			1,908			1,107			58.02	%		5,336			4,720			616			13.05	%
NET INCOME	$	8,120		$	5,714		$	2,406			42.11	%	$	14,428		$	12,339		$	2,089			16.93	%
BASIC EARNINGS PER SHARE	$	0.50		$	0.41						21.95	%	$	0.95		$	0.86						10.47	%
DILUTED EARNINGS PER SHARE	$	0.50		$	0.40						25.00	%	$	0.94		$	0.86						9.30	%
BASIC AVERAGE SHARES		16,268,009			14,101,468						15.36	%		15,193,327			14,282,226						6.38	%
DILUTED AVERAGE SHARES		16,346,749			14,231,264						14.87	%		15,269,941			14,428,323						5.83	%
PERFORMANCE RATIOS:
Net Interest Margin (FTE)		4.01	%		3.85	%					4.16	%		3.96	%		3.84	%					3.13	%
Return on Average Assets		0.97	%		0.85	%					14.12	%		0.92	%		0.91	%					1.10	%
Return on Average Equity		10.70	%		10.44	%					2.49	%		10.39	%		11.09	%					-6.31	%
RECONCILIATION TABLE — NON-GAAP FINANCIAL INFORMATION
NET INCOME (GAAP)	$	8,120		$	5,714		$	2,406			42.11	%	$	14,428		$	12,339		$	2,089			16.93	%
Net Interest Income Components
Add — Write-Off of Debt Issuance Cost, net of tax		—			590			(590	)								590			(590	)
Non-Interest Income Components
Add — Net Loss on Sale of Securities, net of tax		—			—			—						396			—			396
Non-Interest Expense Components
Add — Executive Early Retirement Costs, net of tax		—			—			—						—			264			(264	)
Add — Merger and Acquisition Expenses, net of tax		244			—			244						728			—			728
Add — Litigation Reserve, net of tax		—			885			(885	)								885			(885	)
Less — WorldCom Bond Loss Recovery, net of tax		—			—			—						(272	)		—			(272	)
NET OPERATING EARNINGS	$	8,364		$	7,189		$	1,175			16.34	%	$	15,280		$	14,078		$	1,202			8.54	%
Diluted Earnings Per Share, on an Operating Basis	$	0.51		$	0.51		$	0.00			0.00	%	$	1.00		$	0.98		$	0.02			2.04	%

10

INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION			Three Months Ended June 30,
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA			2008							2007
(Unaudited - Dollars in Thousands)					Interest							Interest
	Ending		Average		Earned/		Yield/			Average		Earned/		Yield/
	Balance		Balance		Paid		Rate			Balance		Paid		Rate
Interest-Earning Assets:
Federal Funds Sold and Short Term Investments	$	100	$	754	$	15		7.96	%	$	20,962	$	289		5.51	%
Securities:
Trading Assets		3,185		3,446		39		4.53	%		1,647		9		2.19	%
Taxable Investment Securities		446,303		444,807		5,370		4.83	%		418,893		4,975		4.75	%
Non-taxable Investment Securities (1)		39,089		41,722		730		7.00	%		51,893		834		6.43	%
Total Securities:		488,577		489,975		6,139		5.01	%		472,433		5,818		4.93	%
Loans (1)		2,575,265		2,550,066		38,768		6.08	%		1,987,156		33,911		6.83	%
Total Interest-Earning Assets	$	3,063,942	$	3,040,795	$	44,922		5.91	%	$	2,480,551	$	40,018		6.45	%
Cash and Due from Banks		89,719		67,974							60,949
Other Assets		233,413		228,548							148,885
Total Assets	$	3,387,074	$	3,337,317						$	2,690,385
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	696,457	$	691,150	$	1,493		0.86	%	$	580,449	$	1,994		1.37	%
Money Market		478,852		482,638		2,124		1.76	%		467,846		3,509		3.00	%
Time Deposits		734,792		739,389		5,922		3.20	%		522,282		5,313		4.07	%
Total interest-bearing deposits:		1,910,101		1,913,177		9,539		1.99	%		1,570,577		10,816		2.75	%
Borrowings:
Federal Home Loan Bank Borrowings	$	357,949	$	330,881	$	2,762		3.34	%	$	238,246	$	2,668		4.48	%
Federal Funds Purchased and Assets Sold Under Repurchase Agreement		157,114		144,012		1,116		3.10	%		99,300		733		2.95	%
Junior Subordinated Debentures		61,857		61,857		989		6.40	%		59,760		1,935		12.95	%
Other Borrowings		495		10,757		62		2.31	%		997		18		7.22	%
Total Borrowings:		577,415		547,507		4,929		3.60	%		398,303		5,354		5.38	%
Total Interest-Bearing Liabilities	$	2,487,516	$	2,460,684	$	14,468		2.35	%	$	1,968,880	$	16,170		3.29	%
Demand Deposits		564,060		547,048							488,571
Other Liabilities		34,381		26,098							13,908
Total Liabilities	$	3,085,957	$	3,033,830						$	2,471,359
Stockholders’ Equity		301,117		303,487							219,026
Total Liabilities and Stockholders’ Equity	$	3,387,074	$	3,337,317						$	2,690,385
Net Interest Income					$	30,454						$	23,848
Interest Rate Spread (2)								3.56	%						3.16	%
Net Interest Margin (3)								4.01	%						3.85	%
Supplemental Information:
Total Deposits, including Demand Deposits	$	2,474,161	$	2,460,225	$	9,539				$	2,059,148	$	10,816
Cost of Total Deposits								1.55	%						2.10	%
Total Funding Liabilities, including Demand Deposits	$	3,051,576	$	3,007,732	$	14,468				$	2,457,451	$	16,170
Cost of Total Funding Liabilities								1.92	%						2.63	%

(1)	The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $367 and $415 for the three months ended June 30, 2008 and 2007, respectively.
(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.
(3)	Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

11

INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION			Six Months Ended June 30,
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA			2008							2007
(Unaudited - Dollars in Thousands)					Interest							Interest
	Ending		Average		Earned/		Yield/			Average		Earned/		Yield/
	Balance		Balance		Paid		Rate			Balance		Paid		Rate
Interest-Earning Assets:
Federal Funds Sold and Short Term Investments	$	100	$	689	$	35		10.16	%	$	27,265	$	733		5.38	%
Securities:
Trading Assets		3,185		3,012		66		4.38	%		1,669		23		2.76	%
Taxable Investment Securities		446,303		434,295		10,756		4.95	%		433,625		10,377		4.79	%
Non-taxable Investment Securities (1)		39,089		43,778		1,466		6.70	%		52,722		1,701		6.45	%
Total Securities:		488,577		481,085		12,288		5.11	%		488,016		12,101		4.96	%
Loans (1)		2,575,265		2,378,702		74,053		6.23	%		1,995,143		67,727		6.79	%
Total Interest-Earning Assets	$	3,063,942	$	2,860,476	$	86,376		6.04	%	$	2,510,424	$	80,561		6.42	%
Cash and Due from Banks		89,719		64,286							60,142
Other Assets		233,413		199,438							148,565
Total Assets	$	3,387,074	$	3,124,200						$	2,719,131
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	696,457	$	643,469	$	3,084		0.96	%	$	576,067	$	3,794		1.32	%
Money Market		478,852		474,349		4,702		1.98	%		468,603		7,049		3.01	%
Time Deposits		734,792		673,394		12,068		3.58	%		540,289		11,067		4.10	%
Total interest-bearing deposits:		1,910,101		1,791,212		19,854		2.22	%		1,584,959		21,910		2.76	%
Borrowings:
Federal Home Loan Bank Borrowings	$	357,949	$	315,730	$	5,704		3.61	%	$	245,471	$	5,459		4.45	%
Federal Funds Purchased and Assets Sold Under Repurchase Agreement		157,114		141,644		2,270		3.21	%		102,483		1,585		3.09	%
Junior Subordinated Debentures		61,857		58,458		1,848		6.32	%		68,492		3,326		9.71	%
Other Borrowings		495		7,597		106		2.79	%		792		25		6.31	%
Total Borrowings:		577,415		523,429		9,928		3.79	%		417,238		10,395		4.98	%
Total Interest-Bearing Liabilities	$	2,487,516	$	2,314,641	$	29,782		2.57	%	$	2,002,197	$	32,305		3.23	%
Demand Deposits		564,060		511,033							480,671
Other Liabilities		34,381		20,785							13,831
Total Liabilities	$	3,085,957	$	2,846,459						$	2,496,699
Stockholders’ Equity		301,117		277,741							222,432
Total Liabilities and Stockholders’ Equity	$	3,387,074	$	3,124,200						$	2,719,131
Net Interest Income					$	56,594						$	48,256
Interest Rate Spread (2)								3.47	%						3.19	%
Net Interest Margin (3)								3.96	%						3.84	%
Supplemental Information:
Total Deposits, including Demand Deposits	$	2,474,161	$	2,302,245	$	19,854				$	2,065,630	$	21,910
Cost of Total Deposits								1.72	%						2.12	%
Total Funding Liabilities, including Demand Deposits	$	3,051,576	$	2,825,674	$	29,782				$	2,482,868	$	32,305
Cost of Total Funding Liabilities								2.11	%						2.60	%

(1)	The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $741 for the six months ended June 30, 2008 and $835 for the six months ended June 30, 2007.
(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.
(3)	Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

12

	As Of
	June 30,			December 31,			June 30,
	2008			2007			2007
	(Dollars in Thousands, Except Per Share Data)
Asset Quality
Nonperforming Loans
Commercial & Industrial Loans	$	403		$	306		$	301
Business Banking Loans		935			439			343
Commercial Real Estate Loans		2,263			2,568			2,013
Residential Real Estate Loans		4,460			2,380			1,927
Installment Loans — Home Equity		1,380			872			373
Installment Loans — Auto		934			833			810
Installment Loans — Other		290			246			91
Total Nonperforming Loans		10,665			7,644			5,858
Other Real Estate Owned		1,393			681			305
Nonperforming Assets	$	12,058		$	8,325		$	6,163
Net charge-offs (year to date)	$	2,369		$	3,114		$	1,639
Net charge-offs to average loans (annualized)		0.19	%		0.16	%		0.16	%
Nonperforming Loans/Gross Loans		0.41	%		0.37	%		0.30	%
Allowance for Loan Losses/Nonperforming Loans		311.59	%		351.01	%		454.93	%
Loans/Total Deposits		104.09	%		100.81	%		96.53	%
Allowance for Loan Losses/Total Loans		1.29	%		1.31	%		1.35	%
Financial Ratios
Book Value per Share	$	18.51		$	16.04		$	15.25
Tangible Capital/Tangible Asset		5.34	%		5.91	%		5.91	%
Tangible Capital/Tangible Asset (proforma to include the deductibility of goodwill)		5.79	%		6.45	%		6.47	%
Tangible Book Value per Share	$	10.71		$	11.64		$	11.05
Tangible Book Value per Share (proforma to include the deductibility of goodwill)	$	11.60		$	12.70		$	12.09
Capital Adequacy
Tier one leverage capital ratio (1)		7.70	%		8.02	%		7.94	%

(1) Estimated number for June 30, 2008

Certain amounts in prior year financial statement have been reclassified to conform to the current year’s presentation.

13