Independent Bank (INDB) 8-K Independent Bank Corp. Reports Third Quarter 2008 Increase In Net Income, Deposits, and Loans

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 THIRD QUARTER 2008 INCREASE IN NET INCOME, DEPOSITS, AND LOANS

     Rockland, Massachusetts (October 23, 2008). Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced net income of $8.8 million and $20.9 million for the three and nine months ending September 30, 2008, respectively. This represents an increase of $503,000, or 6.1% for the quarter ended September 30, 2008 as compared to $8.3 million in the comparative 2007 period. For the nine months ended September 30, 2008 there was an increase of $292,000, or 1.4% as compared to $20.7 million for the same period last year.

     Total deposits increased by $63.9 million during the three month period from June 30, 2008 to September 30, 2008. Total deposits were $2.5 billion at September 30, 2008, a 25.2% increase when compared to $2.0 billion in total deposits at December 31, 2007. Of the year-to-date deposit increase, $410.8 million is a result of the March 2008 acquisition of Slade’s Ferry Bancorp (“Slades”). Excluding the impact of the Slades acquisition, total deposits have grown during 2008 at an annualized rate of 6.6%.

     Total loans grew by $542.6 million, or 26.6%, during the nine months ended September 30, 2008, with the Slades acquisition contributing $471.2 million to total loan growth. Excluding the Slades acquisition, loan growth achieved in the first nine months of 2008 amounted to $71.4 million, or 4.7%, on an annualized basis, and was concentrated in the commercial (7.8% annualized) and home equity (19.0% annualized) lending categories.

     Diluted earnings per share were $0.54 for the quarter ending September 30, 2008. For the nine months ended September 30, 2008, diluted earnings per share were $1.34. The $0.54 diluted earnings per share for the quarter ended September 30, 2008 represents a decrease of $0.06, or (10.0%), on a per share basis from the $0.60 in diluted earnings per share recorded in the same quarter in 2007. The $1.34 in diluted earnings per share recorded for the nine months ended September 30, 2008 represents a decrease of $0.11 per diluted share when compared to diluted earnings per share of $1.45 for the nine months ended September 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

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operating results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP information which may be presented by other companies.

Dollars in Thousands, Except Per Share Data

	Three Months Ending
	September 30,
	2008			2007		$ Variance			% Variance
RECONCILIATION TABLE — NON-GAAP FINANCIAL INFORMATION
NET INCOME (GAAP)	$	8,815		$	8,312	$	503			6.1	%
Non-Interest Expense Components
Add — Litigation Reserve Recovery, net of tax		(488	)		—		(488	)		n/a
NET OPERATING EARNINGS (NON-GAAP)	$	8,327		$	8,312	$	15			0.2	%
Diluted Operating Earnings Per Share	$	0.51		$	0.60	$	(0.09	)		-15.0	%

Dollars in Thousands, Except Per Share Data

	Nine Months Ending
	September 30,
	2008			2007		$ Variance			% Variance
RECONCILIATION TABLE — NON-GAAP FINANCIAL INFORMATION
NET INCOME (GAAP)	$	20,943		$	20,651	$	292			1.4	%
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 recovery), net of tax		488			885		(397	)		-44.9	%
Less — WorldCom Bond Loss Recovery, net of tax		(272	)		—		(272	)		n/a
NET OPERATING EARNINGS (NON-GAAP)	$	22,283		$	22,390	$	(107	)		-0.5	%
Diluted Operating Earnings Per Share	$	1.43		$	1.57	$	(0.14	)		-8.9	%

     As shown above, net operating earnings were $8.3 million, or $0.51 on a per diluted share basis, for the three months ending September 30, 2008, compared to net operating earnings and diluted earnings per share for the three months ended September 30, 2007 of $8.3 million and $0.60, respectively, which represents an increase of $15,000, or 0.2%, and a decrease of $.09 per diluted share. Net operating earnings were $22.3 million, or $1.43 on a per diluted share basis, for the nine months ending September 30, 2008 compared to net operating earnings and diluted earnings per share for the nine months ended September 30, 2007 of $22.4 million and $1.57, respectively, which represents a decrease of $107,000, or a decrease of $0.14 per diluted share.

     Comparing the three months ending September 30, 2008 to the same period last year, net interest income increased $6.8 million, or 28.2%. For the nine months ended September 30, 2008, net interest income increased $15.3 million, or 21.3%, from the year ago period, due to the Slades acquisition in the first quarter of this year and organic growth. The net interest margin for the three and nine month periods ended September 30, 2008 was 4.09% and 4.00%, respectively. The net interest margin was 3.98% and 3.89% for the three and nine months ended September 30, 2007.See the tables below for reconciliations of net interest income and the net interest margin as adjusted:

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	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2008		2007		2008		2007
	(Dollars in Thousands)
Net Interest Income GAAP	$	31,115	$	24,270	$	86,965	$	71,692
Add — Write-Off of Debt Issuance Cost		—		—		—		907	*
Net Interest Income as Adjusted	$	31,115	$	24,270	$	86,965	$	72,599

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2008			2007			2008			2007
Net Interest Margin GAAP		4.09	%		3.98	%		4.00	%		3.89	%
Add — Write-Off of Debt Issuance Cost		—			—			—			0.05	%*
Net Interest Margin as Adjusted		4.09	%		3.98	%		4.00	%		3.94	%

* April 2007 refinance of Trust Preferred Securities

     The Company’s allowance for loan losses as a percentage of loans was 1.29% at both September 30, 2008, and June 30, 2008. The provision for loan losses was $2.1 million and $5.3 million for the quarter and nine months ended September 30, 2008, respectively, as compared to $300,000 and $1.8 million for the year ago comparative periods. Net charge-offs were $2.0 million and $4.4 million for the three and nine month periods of 2008 as compared to $758,000 and $2.4 million for the three and nine month periods of 2007. Net charge-offs increased in the third quarter of 2008 primarily due to partial charge-offs in the home equity portfolio resulting from a thorough review of the portfolio conducted during the quarter.

     Non-interest income increased by $812,000, or 10.52%, and by $880,000, or 3.7%, during the three and nine months ended September 30, 2008, respectively, as compared to the same periods in the prior year. Excluding the net losses on sale of securities during the nine months ended September 30, 2008 and the loss on the other-than-temporary-impairment of certain performing pooled trust preferred securities with an investment grade rating of (BBB) during the three and nine months ended September 30, 2008, non-interest income grew by $1.5 million, or 19.8%, and $4.1 million, or 17.2% when compared to the three and nine months ended September 30, 2007.See the table below for a reconciliation of non-interest income as adjusted:

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	Three Months Ended
	September 30,
	2008		2007		$ Variance		% Variance
	(Dollars in Thousands)
Non-Interest Income GAAP	$	8,532	$	7,720	$	812		10.5	%
Add — Other-Than-Temporary-Impairment on Certain Pooled Trust Preferred Securities Rated (BBB)		720		—		720		n/a
Non-Interest Income as Adjusted	$	9,252	$	7,720	$	1,532		19.8	%

	Nine Months Ended
	September 30,
	2008		2007		$ Variance		% Variance
	(Dollars in Thousands)
Non-Interest Income GAAP	$	24,432	$	23,552	$	880		3.7	%
Add — Net Loss on Sale of Securities		609		—		609		n/a
Add — Other-Than-Temporary-Impairment on Certain Pooled Trust Preferred Securities Rated (BBB)		2,570		—		2,570		n/a
Non-Interest Income as Adjusted	$	27,611	$	23,552	$	4,059		17.2	%

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

Ø	Service charges on deposit accounts increased by $329,000, or 8.8%, and by $986,000, or 9.2% for the three and nine months ended September 30, 2008, as compared to the same periods in 2007, primarily due to the Slades acquisition.
Ø	Wealth management revenue increased by $888,000, or 47.3%, and $2.7 million, or 45.7%, for the three and nine months ended September 30, 2008, as compared to the same periods in 2007. Assets under management at September 30, 2008 were $1.3 billion.
Ø	Mortgage banking income decreased by $122,000, or (19.6%), and increased by $357,000, or 16.1%, for the three and nine months ended September 30, 2008, as compared to the same periods in 2007. The balance of the mortgage servicing asset was $1.9 million and loans serviced amounted to $254.5 million as of September 30, 2008, as compared to a mortgage servicing asset balance of $2.2 million and loans serviced amounting to $263.7 million at September 30, 2007.
Ø	There were no gains or losses on the sale of securities during the third 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 partially offset by gains on the sale of agency securities recorded in the first quarter. There were no gains or losses on the sale of securities during the nine months of 2007.
Ø	The Company recorded an other-than-temporary-impairment of certain performing pooled trust preferred securities rated (BBB), resulting in a negative charge to non-interest income of approximately $720,000 and $2.6 million for the three and nine month periods ending September 30, 2008.

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Ø Other non-interest income increased by $276,000, or 28.5%, and decreased by $371,000, or (11.1%), for the three and nine months ended September 30, 2008, as compared to the same period in 2007. The decrease year-to-date is primarily attributable to trading asset losses and declines in 1031 exchange income as a result of the slowdown in national commercial real estate markets.

          Non-interest expense increased by $4.3 million, or 20.1%, and by $11.6 million, or 17.6%, for the three and nine months ended September 30, 2008, as compared to the same periods in 2007. When adjusting the three and nine month periods for the items listed below, non-interest expense increased $5.0 million, or 23.6%, and $11.9 million, or 18.6%, 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
	September 30,
	2008		2007		$ Variance		% Variance
	(Dollars in Thousands)
Non-Interest Expense GAAP	$	25,459	$	21,206	$	4,253		20.1	%
Add – Litigation Reserve Recovery		750		—		750		n/a
Non-Interest Expense as Adjusted	$	26,209	$	21,206	$	5,003		23.6	%

	Nine Months Ended
	September 30,
	2008			2007			$ Variance			% Variance
	(Dollars in Thousands)
Non-Interest Expense GAAP	$	77,552		$	65,925		$	11,627			17.6	%
Less – Executive Early Retirement Costs		—			(406	)		406			n/a
Less – Merger & Acquisition Expenses		(1,120	)		—			(1,120	)		n/a
Less – Litigation Reserve (net of Recovery)		(750	)		(1,361	)		611			n/a
Add – WorldCom Bond Loss Recovery		418			—			418			n/a
Non-Interest Expense as Adjusted	$	76,100		$	64,158		$	11,942			18.6	%

Ø	Salaries and employee benefits increased by $1.6 million, or 12.3%, and $4.5 million, or 11.6%, for the three and nine months ended September 30, 2008, as compared to the same periods in 2007. The increase in salaries and benefits is primarily attributable to the Slades acquisition in the first quarter of 2008, annual merit increases, incentive programs, and the O’Connell Investment Services acquisition in the fourth quarter of 2007.
Ø	Occupancy and equipment expense increased by $805,000, or 33.6%, and $1.8 million, or 23.6%, for the three and nine month periods ending September 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 utility costs, and the effects of the Slades acquisition.
Ø	Data processing and facilities management expense increased by $387,000, or 35.9%, and $802,000, or 23.8%, for the three and nine month periods ending

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	September 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 primarily attributable to the Slades acquisition during the first quarter of 2008.
Ø	Merger and acquisition related expenditures totaled $1.1 million, for the nine month period ending September 30, 2008, associated with the Slades acquisition in March 2008. There were no merger and acquisition expenses for the comparable 2007 periods.
Ø	Other non-interest expense increased by $1.4 million, or 31.2%, and $3.8 million, or 24.2%, for the three and nine month periods ending September 30, 2008, as compared to the same periods in 2007. The increase in the nine-month period is primarily attributable to the amortization of intangible assets of $1.0 million, litigation reserve of $750,000 (net of recovery), FDIC assessment of $630,000, consulting fees of $479,000, legal loan collection fees of $441,000, and a write-down on other real estate owned of $154,000.

     The Company’s effective tax rate was 27% and 21% for the three months ended September 30, 2008 and 2007, respectively. The increase in the tax rate during the quarter is primarily due to timing, with respect to the recognition of federal tax credits received pursuant to the New Markets Tax Credit program.

     Total assets increased by $708.8 million, or 25.6%, to $3.5 billion at September 30, 2008 as compared to December 31, 2007. This increase is primarily a result of the Slades acquisition, which closed during the first quarter of 2008.

     Securities increased by $53.4 million, or 10.5%, during the nine months ended September 30, 2008. The increase was primarily attributable to the deployment of the proceeds associated with issuance of the subordinated debentures discussed below. The ratio of securities to total assets as of September 30, 2008 was 16.1%, compared to 18.3% at December 31, 2007. The Company does not own any common or preferred equity securities issued by either the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.

     The following table summarizes loan growth during the first nine months of 2008:

	September 30,		December 31,		Slades		Organic
	2008		2007		Acquisition		Growth/(Loss)
	(Dollars in Thousands)
Loans
Commercial and Commercial Real Estate Loans	$	1,493,895	$	1,121,310	$	306,824	$	65,761
Small Business		85,120		69,977		9,257		5,886
Residential Real Estate		439,188		341,090		114,432		(16,334	)
Consumer — Home Equity		391,416		308,744		38,723		43,949
Consumer — Other		175,939		201,831		2,009		(27,901	)
Total Loans	$	2,585,558	$	2,042,952	$	471,245	$	71,361

          Excluding the Slades acquisition, organic loan growth achieved in the nine months of 2008 amounted to $71.4 million, or 4.7%, on an annualized basis, and was concentrated in the commercial (7.8% annualized) and home equity (19.0% annualized)

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lending categories, while the residential real estate and consumer (primarily indirect automobile lending) categories were reduced. Total commercial loans (including small business loans) following the Slades acquisition now represent 61.1% of the total loan portfolio.

          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 $27.6 million in land and buildings with associated accumulated depreciation of $9.4 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 following table summarizes deposit growth during the first nine months of 2008:

	September 30,		December 31,		Slades		Organic
	2008		2007		Acquisition		Growth/(Loss)
			(Dollars in Thousands)
Deposits
Demand Deposits	$	573,904	$	471,164	$	74,584	$	28,156
Savings and Interest Checking Accounts		711,862		587,474		119,908		4,480
Money Market		464,983		435,792		38,668		(9,477	)
Time Certificates of Deposit		787,282		532,180		177,609		77,493
Total Deposits	$	2,538,031	$	2,026,610	$	410,769	$	100,652

          Borrowings increased by $92.8 million, or 18.4%, during the nine months ending September 30, 2008, as compared to December 31, 2007, attributable to the Slades acquisition and organic loan growth. Additionally, the Company issued $30.0 million of subordinated debt during the quarter ended September 30, 2008, which will be used to support additional loan growth, particularly in commercial lending. The subordinated debt, which qualifies as Tier 2 regulatory capital, has a 10 year maturity and may be called at the option of the Company after five years. The subordinated debt is priced at a fixed rate of 7.02% for the first five year period.

          The Company reported a return on average assets and a return on average equity in the third quarter of 2008 of 1.04% and 11.57%, respectively, as compared to 1.24% and 15.57% for the same periods in 2007. Operating return on average assets and return on average equity in the third quarter of 2008 was 0.99% and 10.93%, respectively, as compared to 1.24% and 15.57% for the same periods in 2007.

          Stockholders’ equity at September 30, 2008 totaled $304.7 million, as compared to $220.5 million at December 31, 2007. The Tier 1 leverage capital ratio at September 30, 2008 was 7.72%, maintaining the Company’s well-capitalized position.

          At September 30, 2008, the balance of goodwill was $116.6 million and other intangible assets, primarily core deposit intangibles, were $9.8 million. The amount of

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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 $33.3 million at September 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 $17.9 million at September 30, 2008, or 0.51% of total assets, and $8.3 million at December 31, 2007, or 0.30% of total assets. The primary increase on a linked quarter basis was in the commercial and commercial real estate categories of $4.1 million and residential real estate of $2.3 million.

          “I’m very happy with both our third-quarter performance and year-to-date earnings results, especially given the tumultuous market conditions,” Christopher Oddleifson, President and Chief Executive Officer stated. “Our conservative management philosophy, combined with the strong relationships we continue to build within the communities that we do business, positions us well for continued future growth. Many consumers and businesses realize that Rockland Trust is both safe and strong, and are turning to us to establish long-term relationships.”

          Christopher Oddleifson and Denis K. Sheahan, Chief Financial Officer, of Independent Bank Corp. and Rockland Trust Company, will host a conference call to discuss third quarter earnings at 8:30 a.m. Eastern Time on Friday, October 24, 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: 424032. The web cast replay will be available until October 24, 2009 and the telephone replay will be available until November 3, 2008.

          Independent Bank Corp.’s sole bank subsidiary, Rockland Trust Company, currently has $3.5 billion in assets. Rockland Trust Company is a full-service community bank serving southeastern Massachusetts, Cape Cod, and Rhode Island. To find out more about the products and services available at Rockland Trust Company, please visit our website at 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

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accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.

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

CONSOLIDATED BALANCE SHEETS

																June 30, 2008 vs.
	September 30,			December 31,			$			%			June 30,			September 30, 2008			%
	2008			2007			Variance			Change			2008			Variance			Change
Assets
Cash and Due From Banks	$	92,752		$	67,416			25,336			37.58	%	$	89,719		$	3,033			3.38	%
Fed Funds Sold and Short Term Investments		100			—			—			—			100			—			n/a
Securities
Trading Assets		3,048			1,687			1,361			80.68	%		3,185			(137	)		-4.30	%
Securities Available for Sale		499,879			444,258			55,621			12.52	%		426,894			72,985			17.10	%
Securities Held to Maturity		33,354			45,265			(11,911	)		-26.31	%		33,895			(541	)		-1.60	%
Federal Home Loan Bank Stock		24,603			16,260			8,343			51.31	%		24,603			—			n/a
Total Securities		560,884			507,470			53,414			10.53	%		488,577			72,307			14.80	%
Loans
Commercial and Industrial		250,469			190,522			59,947			31.46	%		261,384			(10,915	)		-4.18	%
Commercial Real Estate		1,092,811			797,416			295,395			37.04	%		1,062,902			29,909			2.81	%
Commercial Construction		150,615			133,372			17,243			12.93	%		170,373			(19,758	)		-11.60	%
Small Business		85,120			69,977			15,143			21.64	%		86,430			(1,310	)		-1.52	%
Residential Real Estate		420,809			323,847			96,962			29.94	%		417,304			3,505			0.84	%
Residential Construction		12,868			6,115			6,753			110.43	%		9,292			3,576			38.48	%
Residential Loans Held for Sale		5,511			11,128			(5,617	)		-50.48	%		9,171			(3,660	)		-39.91	%
Consumer — Home Equity		391,416			308,744			82,672			26.78	%		374,580			16,836			4.49	%
Consumer — Auto		134,866			156,006			(21,140	)		-13.55	%		141,046			(6,180	)		-4.38	%
Consumer — Other		41,073			45,825			(4,752	)		-10.37	%		42,783			(1,710	)		-4.00	%
Total Loans		2,585,558			2,042,952			542,606			26.56	%		2,575,265			10,293			0.40	%
Less — Allowance for Loan Losses		(33,287	)		(26,831	)		(6,456	)		24.06	%		(33,231	)		(56	)		0.17	%
Net Loans		2,552,271			2,016,121			536,150			26.59	%		2,542,034			10,237			0.40	%
Bank Premises and Equipment		35,246			39,085			(3,839	)		-9.82	%		34,749			497			1.43	%
Goodwill and Core Deposit Intangible		126,412			60,411			66,001			109.25	%		126,914			(502	)		-0.40	%
Other Assets		109,570			77,910			31,660			40.64	%		105,365			4,205			3.99	%
Total Assets	$	3,477,235		$	2,768,413			708,822			25.60	%	$	3,387,458		$	89,777			2.65	%
Liabilities and Stockholders’ Equity
Deposits
Demand Deposits	$	573,904		$	471,164			102,740			21.81	%	$	564,060		$	9,844			1.75	%
Savings and Interest Checking Accounts		711,862			587,474			124,388			21.17	%		696,457			15,405			2.21	%
Money Market		464,983			435,792			29,191			6.70	%		478,852			(13,869	)		-2.90	%
Time Certificates of Deposit		787,282			532,180			255,102			47.94	%		734,792			52,490			7.14	%
Total Deposits		2,538,031			2,026,610			511,421			25.24	%		2,474,161			63,870			2.58	%
Borrowings
Federal Home Loan Bank Borrowings		336,792			311,125			25,667			8.25	%		357,949			(21,157	)		-5.91	%
Fed Funds Purchased and Assets Sold Under Repurchase Agreements		166,417			138,603			27,814			20.07	%		157,114			9,303			5.92	%
Junior Subordinated Debentures		61,857			51,547			10,310			20.00	%		61,857			—			n/a
Subordinated Debentures		30,000			—			30,000			n/a			—			30,000			n/a
Other Borrowings		2,103			3,069			(966	)		-31.48	%		495			1,608			324.85	%
Total Borrowings		597,169			504,344			92,825			18.41	%		577,415			19,754			3.42	%
Total Deposits and Borrowings		3,135,200			2,530,954			604,246			23.87	%		3,051,576			83,624			2.74	%
Other Liabilities		37,295			16,994			20,301			119.46	%		35,880			1,415			3.94	%
Stockholders’ Equity		304,740			220,465			84,275			38.23	%		300,002			4,738			1.58	%
Total Liabilities and Stockholders’ Equity	$	3,477,235		$	2,768,413			708,822			25.60	%	$	3,387,458		$	89,777			2.65	%

10

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

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended												Nine Months Ended
	September 30,						$			%			September 30,						$			%
	2008			2007			Variance			Change			2008			2007			Variance			Change
INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	62		$	679		$	(617	)		-90.87	%	$	96		$	1,412		$	(1,316	)		-93.20	%
Interest and Dividends on Securities		6,009			5,302			707			13.33	%		17,783			16,808			975			5.80	%
Interest on Loans		39,201			33,871			5,330			15.74	%		113,025			101,358			11,667			11.51	%
Total Interest Income		45,272			39,852			5,420			13.60	%		130,904			119,578			11,326			9.47	%
INTEREST EXPENSE
Interest on Deposits		9,078			11,119			(2,041	)		-18.36	%		28,933			33,029			(4,096	)		-12.40	%
Interest on Borrowed Funds		5,079			4,463			616			13.80	%		15,006			14,857			149			1.00	%
Total Interest Expense		14,157			15,582			(1,425	)		-9.15	%		43,939			47,886			(3,947	)		-8.24	%
Net Interest Income		31,115			24,270			6,845			28.20	%		86,965			71,692			15,273			21.30	%
Less — Provision for Loan Losses		2,068			300			1,768			589.33	%		5,312			1,775			3,537			199.27	%
Net Interest Income after Provision for Loan Losses		29,047			23,970			5,077			21.18	%		81,653			69,917			11,736			16.79	%
NON-INTEREST INCOME
Service Charges on Deposit Accounts		4,083			3,754			329			8.76	%		11,681			10,695			986			9.22	%
Wealth Management		2,764			1,876			888			47.33	%		8,554			5,870			2,684			45.72	%
Mortgage Banking Income		501			623			(122	)		-19.58	%		2,574			2,217			357			16.10	%
BOLI Income		659			498			161			32.33	%		1,816			1,413			403			28.52	%
Net Loss on Sale of Securities		—			—			—			n/a			(609	)		—			(609	)		n/a
Other-Than-Temporary-Impairment on Certain Pooled Trust Preferred Securities Rated (BBB)		(720	)		—			(720	)		n/a			(2,570	)		—			(2,570	)		n/a
Other Non-Interest Income		1,245			969			276			28.48	%		2,986			3,357			(371	)		-11.05	%
Total Non-Interest Income		8,532			7,720			812			10.52	%		24,432			23,552			880			3.74	%
NON-INTEREST EXPENSE
Salaries and Employee Benefits		14,719			13,103			1,616			12.33	%		43,806			39,269			4,537			11.55	%
Occupancy and Equipment Expenses		3,200			2,395			805			33.61	%		9,338			7,556			1,782			23.58	%
Data Processing and Facilities Management		1,465			1,078			387			35.90	%		4,170			3,368			802			23.81	%
Merger & Acquisition Expense		—			—			—			n/a			1,120			—			1,120			n/a
WorldCom Bond Loss Recovery		—			—			—			n/a			(418	)		—			(418	)		n/a
Other Non-Interest Expense		6,075			4,630			1,445			31.21	%		19,536			15,732			3,804			24.18	%
Total Non-Interest Expense		25,459			21,206			4,253			20.06	%		77,552			65,925			11,627			17.64	%
INCOME BEFORE INCOME TAXES		12,120			10,484			1,636			15.60	%		28,533			27,544			989			3.59	%
PROVISION FOR INCOME TAXES		3,305			2,172			1,133			52.16	%		7,590			6,893			697			10.11	%
NET INCOME	$	8,815		$	8,312		$	503			6.05	%	$	20,943		$	20,651		$	292			1.41	%
BASIC EARNINGS PER SHARE	$	0.54		$	0.60						-10.00	%	$	1.35		$	1.46						-7.53	%
DILUTED EARNINGS PER SHARE	$	0.54		$	0.60			��			-10.00	%	$	1.34		$	1.45						-7.59	%
BASIC AVERAGE SHARES		16,275,442			13,787,598						18.04	%		15,518,540			14,121,843						9.89	%
DILUTED AVERAGE SHARES		16,338,180			13,900,053						17.54	%		15,591,167			14,256,558						9.36	%
PERFORMANCE RATIOS:
Net Interest Margin (FTE)		4.09	%		3.98	%					2.76	%		4.00	%		3.89	%					2.83	%
Return on Average Assets		1.04	%		1.24	%					-16.13	%		0.87	%		1.02	%					-14.71	%
Return on Average Equity		11.57	%		15.57	%					-25.70	%		9.74	%		12.55	%					-22.39	%
RECONCILIATION TABLE — NON-GAAP FINANCIAL INFORMATION
NET INCOME (GAAP)	$	8,815		$	8,312		$	503			6.05	%	$	20,943		$	20,651		$	292			1.41	%
Net Interest Income Components
Add — Write-Off of Debt Issuance Cost, net of tax		—			—			—									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		—			—			—						728			—			728
(Less)/Add — Litigation Reserve/(Recovery), net of tax		(488	)		—			(488	)					488			885			(397	)
Less — WorldCom Bond Loss Recovery, net of tax		—			—			—						(272	)		—			(272	)
NET OPERATING EARNINGS	$	8,327		$	8,312		$	15			0.18	%	$	22,283		$	22,390		$	(107	)		-0.48	%
Diluted Earnings Per Share, on an Operating Basis	$	0.51		$	0.60		$	(0.09	)		-15.00	%	$	1.43		$	1.57		$	(0.14	)		-8.92	%

11

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

			Three Months Ended September 30,
			2008							2007
					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	$	2,162	$	62		11.47	%	$	50,936	$	679		5.33	%
Securities:
Trading Assets		3,048		3,179		30		3.77	%		1,704		10		2.35	%
Taxable Investment Securities		519,113		454,945		5,613		4.94	%		407,429		4,765		4.68	%
Non-taxable Investment Securities (1)		38,723		38,854		563		5.80	%		49,882		811		6.50	%
Total Securities:		560,884		496,978		6,206		4.99	%		459,015		5,586		4.87	%
Loans (1)		2,585,558		2,578,373		39,320		6.10	%		1,971,023		33,993		6.90	%
Total Interest-Earning Assets	$	3,146,542	$	3,077,513	$	45,588		5.93	%	$	2,480,974	$	40,258		6.49	%
Cash and Due from Banks		92,752		69,587							58,484
Other Assets		237,941		233,978							148,915
Total Assets	$	3,477,235	$	3,381,078						$	2,688,373
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	711,862	$	711,818	$	1,578		0.89	%	$	574,239	$	2,072		1.44	%
Money Market		464,983		473,685		2,203		1.86	%		465,302		3,585		3.08	%
Time Deposits		787,282		754,969		5,297		2.81	%		521,884		5,462		4.19	%
Total interest-bearing deposits:		1,964,127		1,940,472		9,078		1.87	%		1,561,425		11,119		2.85	%
Borrowings:
Federal Home Loan Bank Borrowings	$	336,792	$	299,631	$	2,781		3.71	%	$	249,698	$	2,806		4.50	%
Federal Funds Purchased and Assets Sold Under Repurchase Agreement		166,417		165,852		1,249		3.01	%		96,145		703		2.92	%
Junior Subordinated Debentures		61,857		61,857		842		5.44	%		51,547		862		6.69	%
Subordinated Debentures		30,000		11,413		204		7.15	%		—		—		—
Other Borrowings		2,103		834		3		1.44	%		5,839		92		6.30	%
Total Borrowings:		597,169		539,587		5,079		3.77	%		403,229		4,463		4.43	%
Total Interest-Bearing Liabilities	$	2,561,296	$	2,480,059	$	14,157		2.28	%	$	1,964,654	$	15,582		3.17	%
Demand Deposits		573,904		561,542							496,253
Other Liabilities		37,295		34,754							13,978
Total Liabilities	$	3,172,495	$	3,076,355						$	2,474,885
Stockholders’ Equity		304,740		304,723							213,448
Total Liabilities and Stockholders’ Equity	$	3,477,235	$	3,381,078						$	2,688,333
Net Interest Income					$	31,431						$	24,676
Interest Rate Spread (2)								3.65	%						3.32	%
Net Interest Margin (3)								4.09	%						3.98	%
Supplemental Information:
Total Deposits, including Demand Deposits	$	2,538,031	$	2,502,014	$	9,078				$	2,057,678	$	11,119
Cost of Total Deposits								1.45	%						2.16	%
Total Funding Liabilities, including Demand Deposits	$	3,135,200	$	3,041,601	$	14,157				$	2,460,907	$	15,582
Cost of Total Funding Liabilities								1.86	%						2.53	%

(1)	The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $316 and $406 for the three months ended September 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.

12

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

			Nine Months Ended September 30,
			2008							2007
					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	$	1,184	$	96		10.81	%	$	35,242	$	1,412		5.34	%
Securities:
Trading Assets		3,048		3,068		95		4.13	%		1,681		33		2.62	%
Taxable Investment Securities		519,113		441,228		16,369		4.95	%		424,797		15,143		4.75	%
Non-taxable Investment Securities (1)		38,723		42,124		2,029		6.42	%		51,765		2,511		6.47	%
Total Securities:		560,884		486,420		18,493		5.07	%		478,243		17,687		4.93	%
Loans (1)		2,585,558		2,445,745		113,371		6.18	%		1,987,015		101,720		6.83	%
Total Interest-Earning Assets	$	3,146,542	$	2,933,349	$	131,960		6.00	%	$	2,500,500	$	120,819		6.44	%
Cash and Due from Banks		92,752		66,066							59,583
Other Assets		237,941		211,037							148,683
Total Assets	$	3,477,235	$	3,210,452						$	2,708,766
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	711,862	$	677,470	$	4,740		0.93	%	$	575,451	$	5,866		1.36	%
Money Market		464,983		463,074		6,827		1.97	%		467,490		10,635		3.03	%
Time Deposits		787,282		700,784		17,366		3.30	%		534,087		16,528		4.13	%
Total interest-bearing deposits:		1,964,127		1,841,328		28,933		2.10	%		1,577,028		33,029		2.79	%
Borrowings:
Federal Home Loan Bank Borrowings	$	336,792	$	313,390	$	8,743		3.72	%	$	246,896	$	8,266		4.46	%
Federal Funds Purchased and Assets Sold Under Repurchase Agreement		166,417		149,772		3,519		3.13	%		100,347		2,288		3.04	%
Junior Subordinated Debentures		61,857		59,599		2,483		5.55	%		62,781		4,187		8.89	%
Subordinated Debentures		30,000		3,832		204		7.10	%		—		—		—
Other Borrowings		2,103		2,262		57		3.36	%		2,493		116		6.20	%
Total Borrowings:		597,169		528,855		15,006		3.78	%		412,517		14,857		4.80	%
Total Interest-Bearing Liabilities	$	2,561,296	$	2,370,183	$	43,939		2.47	%	$	1,989,545	$	47,886		3.21	%
Demand Deposits		573,904		527,993							485,922
Other Liabilities		37,295		25,480							13,881
Total Liabilities	$	3,172,495	$	2,923,656						$	2,489,348
Stockholders’ Equity		304,740		286,796							219,418
Total Liabilities and Stockholders’ Equity	$	3,477,235	$	3,210,452						$	2,708,766
Net Interest Income					$	88,021						$	72,933
Interest Rate Spread (2)								3.53	%						3.23	%
Net Interest Margin (3)								4.00	%						3.89	%
Supplemental Information:
Total Deposits, including Demand Deposits	$	2,538,031	$	2,369,321	$	28,933				$	2,062,950	$	33,029
Cost of Total Deposits								1.63	%						2.13	%
Total Funding Liabilities, including Demand Deposits	$	3,135,200	$	2,898,176	$	43,939				$	2,475,467	$	47,886
Cost of Total Funding Liabilities								2.02	%						2.58	%

(1)	The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $1,056 for the nine months ended September 30, 2008 and $1,241 for the nine months ended September 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.

13

	As Of
	September 30,			December 31,			September 30,
	2008			2007			2007
	(Dollars in Thousands, Except Per Share Data)
Asset Quality
Nonperforming Loans
Commercial & Industrial Loans	$	1,481		$	306		$	562
Small Business Loans		773			439			342
Commercial Real Estate Loans		5,478			2,568			2,677
Residential Real Estate Loans		6,725			2,380			1,224
Installment Loans — Home Equity		1,106			872			747
Installment Loans — Auto		770			833			651
Installment Loans — Other		311			246			148
Total Nonperforming Loans		16,644			7,644			6,351
Other Real Estate Owned		1,239			681			245
Nonperforming Assets		17,883			8,325			6,596
Net charge-offs (year to date)	$	4,381		$	3,114		$	2,397
Net charge-offs to average loans (annualized)		0.23	%		0.16	%		0.16	%
Nonperforming Loans/Gross Loans		0.64	%		0.37	%		0.32	%
Allowance for Loan Losses/Nonperforming Loans		199.99	%		351.01	%		412.41	%
Loans/Total Deposits		101.87	%		100.81	%		98.71	%
Allowance for Loan Losses/Total Loans		1.29	%		1.31	%		1.32	%
Financial Ratios
Book Value per Share	$	18.72		$	16.04		$	15.61
Tangible Capital/Tangible Asset		5.32	%		5.91	%		5.95	%
Tangible Capital/Tangible Asset (proforma to include the deductibility of goodwill)		5.76	%		6.45	%		6.51	%
Tangible Book Value per Share	$	10.95		$	11.64		$	11.35
Tangible Book Value per Share (proforma to include the deductibility of goodwill)	$	11.85		$	12.70		$	12.41
Capital Adequacy
Tier one leverage capital ratio (1)		7.72	%		8.02	%		7.98	%

(1) Estimated number for September 30, 2008

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

14