Independent Bank (INDB) 8-K INDEPENDENT BANK CORP. EARNS $24 MILLION IN 2008 Reports Fourth Quarter and Year-to-Date 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. EARNS $24 MILLION IN 2008
Reports Fourth Quarter and Year-to-Date Earnings

          Rockland, Massachusetts (January 26, 2009). Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced net income of $3.0 million, or $0.18 on a per diluted share basis, for the three months ending December 31, 2008, compared to net income and diluted earnings per share for the three months ended December 31, 2007 of $7.7 million and $0.56, respectively. Net income was $24.0 million, or $1.52 on a diluted earnings per share basis, for the year ending December 31, 2008 compared to net income and diluted earnings per share for the year ended December 31, 2007 of $28.4 million and $2.00, respectively.

          The decline in earnings from the prior period is primarily the result of Other-Than-Temporary Impairment (“OTTI”) losses recorded in the fourth quarter. The quarterly comparisons also reflect higher loan loss provisioning in the fourth quarter to increase loan loss reserves in light of economic weakening.

          Fourth quarter 2008 loan and deposit growth was strong, despite the challenging economic environment, as the Company took advantage of opportunities created by market turmoil. During the three month period which ended December 31, 2008 total deposits increased by $41.0 million and loans increased by $75.3 million, quarterly increases which equate to annualized growth rates of 6.5% and 11.7%, respectively.

          In the fourth quarter the Company recorded $4.6 million of OTTI on various trust preferred securities. The after tax impact of this charge was $3.0 million, or $0.18 on a diluted earnings per share basis for the quarter ending December 31, 2008. For the

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year ending December 31, 2008 the aggregate charges amounted to $4.7 million, net of tax, or $0.30 diluted earnings per share.

          “All in all, 2008 was a very successful year,” said Christopher Oddleifson, the Company’s President and Chief Executive Officer. “Our strong loan and deposit growth confirms that the current challenging economic climate has actually been a time of opportunity for us. The successful integration of Slade’s Ferry Bancorp. early in the year was a significant accomplishment and our franchise will continue to grow with the upcoming Benjamin Franklin Bancorp, Inc. acquisition, which we expect to close in the near future. While our fourth quarter earnings were restrained by security impairments and higher credit costs, we have a solid balance sheet and remain in a strong position to continue to expand our franchise and achieve long term growth in a disciplined manner.”

          Total deposits were $2.6 billion at December 31, 2008, a 27.3% 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 7.0%.

          Total loans grew by $617.9 million, or 30.3%, during the twelve months ended December 31, 2008, with the Slades acquisition contributing $471.2 million to total loan growth. Excluding the Slades acquisition, loan growth achieved in 2008 amounted to $146.7 million, or 7.2%, on an annualized basis, and was concentrated in the commercial (12.6%) and home equity (19.0%) lending categories.

          Certain non-core items are included in the computation of earnings in accordance with the United States of America’s 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.

RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION

	Twelve Months Ending
	December 31,
Dollars in Thousands, Except Per Share Data	2008			2007		$ Variance			% Variance
NET INCOME (GAAP)	$	23,964		$	28,381	$	(4,417	)		-15.6	%
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)	$	25,304		$	30,120	$	(4,816	)		-16.0	%
Diluted Operating Earnings Per Share	$	1.61		$	2.13	$	(0.52	)		-24.4	%

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          As shown above, net operating earnings were $25.3 million, or $1.61 on a per diluted share basis, for the year ending December 31, 2008 compared to net operating earnings and diluted earnings per share for the year ended December 31, 2007 of $30.1 million and $2.13, respectively. The $7.2 million in charges for OTTI of securities recognized during 2008 decreased net operating earnings on a diluted earnings per share basis by approximately $0.30. There were no non-core items for the fourth quarter of 2008.

          Comparing the three months ending December 31, 2008 to the same period last year, net interest income increased $6.0 million, or 24.5%. For the year ended December 31, 2008, net interest income increased $21.3 million, or 22.1%, 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 twelve month periods ended December 31, 2008 was 3.81% and 3.95%, respectively. The net interest margin was 3.94% and 3.90% for the three and twelve months ended December 31, 2007.See the tables below for reconciliations of net interest income and the net interest margin as adjusted:

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2008			2007			2008		2007
	(Dollars in Thousands)
Net Interest Income GAAP	$	30,495		$	24,491		$	117,462	$	96,183
Add — Write-Off of Debt Issuance Cost		—			—			—		907	*
Net Interest Income as Adjusted	$	30,495		$	24,491		$	117,462	$	97,090
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2008			2007			2008		2007
Net Interest Margin GAAP		3.81	%		3.94	%		3.95%		3.90	%
Add — Write-Off of Debt Issuance Cost		—			—			—		0.04	%*
Net Interest Margin as Adjusted		3.81	%		3.94	%		3.95%		3.94	%

* April 2007 refinance of Trust Preferred Securities

          On a linked quarter basis the net interest margin decreased from 4.09% in the third quarter of 2008 to 3.81% in the fourth quarter. The primary reason for this change is the drop in the Federal Funds rate, which caused asset yields to drop faster than liability costs. Deposit costs, in particular, did not decline as rapidly given the opportunity realized early in the fourth quarter to raise deposits at attractive rates to retain customers and attract prospects.

          Non-interest income decreased by $4.8 million, or (57.0%), and by $4.0 million, or (12.4%), during the three and twelve months ended December 31, 2008, respectively, as compared to the same periods in the prior year.See the table below for a run rate calculation of non-interest income:

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	Three Months Ended
	December 31,
	2008		2007		$ Variance			% Variance
	(Dollars in Thousands)
Non-Interest Income GAAP	$	3,652	$	8,499	$	(4,847	)		-57.0	%
Add — Other-Than-Temporary-Impairment on Certain Pooled Trust Preferred Securities		4,646		—		4,646			n/a
Non-Interest Income as Adjusted	$	8,298	$	8,499	$	(201	)		-2.4	%

	Twelve Months Ended
	December 31,
	2008		2007		$ Variance			% Variance
	(Dollars in Thousands)
Non-Interest Income GAAP	$	28,084	$	32,051		($3,967	)		-12.4	%
Add — Net Loss on Sale of Securities		609		—		609			n/a
Add — Other-Than-Temporary-Impairment on Certain Pooled Trust Preferred Securities		7,216		—		7,216			n/a
Non-Interest Income as Adjusted	$	35,909	$	32,051	$	3,858			12.0	%

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

Ø	Service charges on deposit accounts increased by $194,000, or 5.2%, and by $1.2 million, or 8.2% for the three and twelve months ended December 31, 2008, as compared to the same periods in 2007, primarily due to the Slades acquisition.
Ø	Wealth management revenue increased by $340,000, or 15.2%, and $3.0 million, or 37.3%, for the three and twelve months ended December 31, 2008, as compared to the same periods in 2007. Assets under management at December 31, 2008 and 2007 were $1.1 billion and $1.3 billion, respectively.
Ø	Mortgage banking income decreased by $452,000, or (47.6%), and by $94,000, or (3.0%), for the three and twelve months ended December 31, 2008, as compared to the same periods in 2007. The balance of the mortgage servicing asset was $1.5 million and loans serviced amounted to $250.5 million as of December 31, 2008, as compared to a mortgage servicing asset balance of $2.1 million and loans serviced amounting to $255.2 million at December 31, 2007.
Ø	There were no gains or losses on the sale of securities during the fourth quarter of 2008 or 2007. 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.
Ø	The Company recorded OTTI on certain investment grade pooled trust preferred securities, resulting in a negative charge to non-interest income of approximately $4.6 million and $7.2 million for the three and twelve month periods ending December 31, 2008.

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Ø Other non-interest income decreased by $431,000, or (43.1%), and by $803,000, or (18.4%), for the three and twelve months ended December 31, 2008, as compared to the same period in 2007. The decrease for the quarter-to-date and year-to-date periods is primarily attributable to trading asset losses due to the stock market decrease and declines in 1031 exchange income as a result of the slowdown in national commercial real estate markets.

          Non-interest expense increased by $4.6 million, or 20.8%, and by $16.2 million, or 18.4%, for the three and twelve months ended December 31, 2008, as compared to the same periods in 2007. When adjusting the twelve month period for the items listed below, non-interest expense increased $16.5 million, or 19.2%, as compared to the same periods in 2007. There were no adjustments for the three months ended December 31, 2008 and 2007.See the table below for a reconciliation of non-interest expense as adjusted:

	Twelve Months Ended
	December 31,
	2008			2007			$ Variance			% Variance
	(Dollars in Thousands)
Non-Interest Expense GAAP	$	104,143		$	87,932		$	16,211			18.4	%
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			-44.9	%
Add — WorldCom Bond Loss Recovery		418			—			418			n/a
Non-Interest Expense as Adjusted	$	102,691		$	86,165		$	16,526			19.2	%

Ø	Salaries and employee benefits increased by $1.2 million, or 9.2%, and $5.8 million, or 11.0%, for the three and twelve months ended December 31, 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 and annual merit and medical insurance increases.
Ø	Occupancy and equipment expense increased by $1.0 million, or 44.0%, and $2.8 million, or 28.4%, for the three and twelve month periods ending December 31, 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, depreciation expense and the effects of the Slades acquisition.
Ø	Data processing and facilities management expense increased by $187,000, or 15.4%, and $990,000, or 21.6%, for the three and twelve month periods ending December 31, 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 twelve month period ending December 31, 2008, associated with the Slades acquisition in March 2008. There were no merger and acquisition expenses for the comparable 2007 periods.

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Ø Other non-interest expense increased by $2.1 million, or 41.4%, and $5.9 million, or 28.4%, for the three and twelve month periods ending December 31, 2008, as compared to the same periods in 2007. The increase in the twelve-month period is primarily attributable to the amortization of intangible assets of $1.5 million, FDIC deposit insurance assessment of $1.1 million, consulting fees of $779,000, litigation settlement of $750,000, legal loan collection fees of $489,000 due to collection activity, and advertising expense of $299,000.

     Total assets increased by $860.1 million, or 31.1%, to $3.6 billion at December 31, 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 $152.9 million, or 30.1%, during the twelve months ended December 31, 2008. Securities represented approximately 18% of total assets at both December 31, 2008 and 2007. On a linked quarter basis, securities increased $99.5 million in anticipation of proceeds from the United States Treasury Capital Purchase Program (“CPP”). As previously mentioned, during 2008, the Company recorded OTTI on certain investment grade pooled trust preferred securities amounting to $4.6 million and $7.2 million for the three and twelve months ended December 31, 2008, respectively.See table below for details regarding the Company’s trust preferred securities and related other-than-temporary impairment charges as of December 31, 2008.

Trust Preferred Detail as of December 31, 2008

					Amortized
					Cost
	Amortized				After
	Cost		OTTI		Impairment
	(Dollars in Thousands)
Pooled Trust Preferred	$	18,677	$	7,216	$	11,461
Single Issuer Trust Preferred		14,803		—		14,803
Total Trust Preferred	$	33,480	$	7,216	$	26,264

          Certain BBB rated and two of the three A rated pooled trust preferred securities held by the Company were written down to prices of approximately 13% and 24% per dollar, respectively.

     The following table summarizes loan growth during the year ending December 31, 2008:

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	December 31,		December 31,		Slades		Organic
	2008		2007		Acquisition		Growth/(Loss)
	(Dollars in Thousands)
Loans
Commercial and Commercial Real Estate Loans	$	1,569,082	$	1,121,310	$	306,824	$	140,948
Small Business		86,670		69,977		9,257		7,436
Residential Real Estate		432,325		341,090		114,432		(23,197	)
Consumer — Home Equity		406,240		308,744		38,723		58,773
Consumer — Other		166,570		201,831		2,009		(37,270	)
Total Loans	$	2,660,887	$	2,042,952	$	471,245	$	146,690

          Excluding the Slades acquisition, organic loan growth achieved in the twelve months of 2008 amounted to $146.7 million, or 7.2%, on an annualized basis, and was concentrated in the commercial (12.6%) and home equity (19.0%) 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 62.2% of the total loan portfolio.

          The following table summarizes deposit growth during the year ending December 31, 2008:

	December 31,		December 31,		Slades		Organic
	2008		2007		Acquisition		Growth/(Loss)
	(Dollars in Thousands)
Deposits
Demand Deposits	$	519,326	$	471,164	$	74,584	$	(26,422	)
Savings and Interest Checking Accounts		725,313		587,474		119,908		17,931
Money Market		488,345		435,792		38,668		13,885
Time Certificates of Deposit		846,096		532,180		177,609		136,307
Total Deposits	$	2,579,080	$	2,026,610	$	410,769	$	141,701

          Borrowings increased by $191.0 million, or 37.9%, during the twelve months ending December 31, 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, and is priced at a fixed rate of 7.02% for the first five year period.

          As previously announced, on January 9, 2009 the Company raised $78,158,000 through the issuance of preferred stock and warrants associated with its participation in the CPP. The CPP funding strengthened the Company’s already strong capital position. On apro formabasis as of December 31, 2008, the CPP funding increased the Company’s Tier 1 leverage ratio from 7.58% to 9.63% and its total risk-based capital ratio from 11.79% to 14.58%.

          Management anticipates using CPP funds to expand lending to creditworthy consumers and businesses and, when appropriate, to modify residential mortgages.

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The Company’s fourth quarter 2008 loan growth was expanded in anticipation of successfully raising capital through CPP participation. The Company fully intends to deploy its CPP capital in a deliberate and responsible manner.

          The Company reported a return on average assets and a return on average equity in the fourth quarter of 2008 of 0.34% and 3.92%, respectively, as compared to 1.13% and 14.08% for the same periods in 2007.

          Stockholders’ equity at December 31, 2008 totaled $305.3 million, as compared to $220.5 million at December 31, 2007. The Tier 1 leverage capital ratio at December 31, 2008 was 7.58%, maintaining the Company’s well-capitalized position.

          At December 31, 2008, the balance of goodwill was $116.4 million and other intangible assets, primarily core deposit intangibles, were $9.3 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 $37.0 million at December 31, 2008 and $26.8 million at December 31, 2007. A portion of the increase in allowance for loan losses is due to the Slades acquisition with the remainder reflective of overall credit softening. Nonperforming assets totaled $29.9 million at December 31, 2008, or 0.82% 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 $7.4 million, residential real estate of $2.7 million, and non-accrual securities of $910,000. The Company’s allowance for loan losses as a percentage of loans was 1.39% at December 31, 2008 and 1.29% at September 30, 2008. The provision for loan losses was $5.6 million and $10.9 million for the quarter and year ended December 31, 2008, respectively, as compared to $1.4 million and $3.1 million for the year ago comparative periods. Net charge-offs were $1.8 million and $6.2 million for the three and twelve month periods of 2008 as compared to $717,000 and $3.1 million for the three and twelve month periods of 2007. The provision was increased in the fourth quarter to account for the significant loan growth experienced in the quarter in addition to the increase in non-performing loans, particularly in commercial real estate.

          Christopher Oddleifson and Denis K. Sheahan, Chief Financial Officer, of Independent Bank Corp. and Rockland Trust Company, will host a conference call to discuss fourth quarter earnings at 4:30 p.m. Eastern Time on Monday, January 26, 2009. Internet access to the call is available on the Company’s website at http://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: 426542. The web cast replay will be available until January 26, 2010 and the telephone replay will be available until February 10, 2009.

          Independent Bank Corp.’s sole bank subsidiary, Rockland Trust Company, currently has $3.6 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

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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.

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

CONSOLIDATED BALANCE SHEETS

													September 30, 2008 vs.
	December 31,			December 31,			$			%			September 30,			December 31, 2008			%
	2008			2007			Variance			Change			2008			Variance			Change
Assets
Cash and Due From Banks	$	50,007		$	67,416			(17,409	)		-25.82	%	$	92,752		$	(42,745	)		-46.09	%
Fed Funds Sold and Short Term Investments		100			—			100			n/a			100			—			n/a
Securities
Trading Assets		2,701			1,687			1,014			60.11	%		3,048			(347	)		-11.38	%
Securities Available for Sale		600,291			444,258			156,033			35.12	%		499,879			100,412			20.09	%
Securities Held to Maturity		32,789			45,265			(12,476	)		-27.56	%		33,354			(565	)		-1.69	%
Federal Home Loan Bank Stock		24,603			16,260			8,343			51.31	%		24,603			—			n/a
Total Securities		660,384			507,470			152,914			30.13	%		560,884			99,500			17.74	%
Loans
Commercial and Industrial		270,832			190,522			80,310			42.15	%		250,469			20,363			8.13	%
Commercial Real Estate		1,126,295			797,416			328,879			41.24	%		1,092,811			33,484			3.06	%
Commercial Construction		171,955			133,372			38,583			28.93	%		150,615			21,340			14.17	%
Small Business		86,670			69,977			16,693			23.85	%		85,120			1,550			1.82	%
Residential Real Estate		413,024			323,847			89,177			27.54	%		420,809			(7,785	)		-1.85	%
Residential Construction		10,950			6,115			4,835			79.07	%		12,868			(1,918	)		-14.91	%
Residential Loans Held for Sale		8,351			11,128			(2,777	)		-24.96	%		5,511			2,840			51.53	%
Consumer — Home Equity		406,240			308,744			97,496			31.58	%		391,416			14,824			3.79	%
Consumer — Auto		127,956			156,006			(28,050	)		-17.98	%		134,866			(6,910	)		-5.12	%
Consumer — Other		38,614			45,825			(7,211	)		-15.74	%		41,073			(2,459	)		-5.99	%
Total Loans		2,660,887			2,042,952			617,935			30.25	%		2,585,558			75,329			2.91	%
Less — Allowance for Loan Losses		(37,049	)		(26,831	)		(10,218	)		38.08	%		(33,287	)		(3,762	)		11.30	%
Net Loans		2,623,838			2,016,121			607,717			30.14	%		2,552,271			71,567			2.80	%
Bank Premises and Equipment		36,429			39,085			(2,656	)		-6.80	%		35,246			1,183			3.36	%
Goodwill and Core Deposit Intangible		125,710			60,411			65,299			108.09	%		126,412			(702	)		-0.56	%
Other Assets		132,001			77,910			54,091			69.43	%		109,570			22,431			20.47	%
Total Assets	$	3,628,469		$	2,768,413			860,056			31.07	%	$	3,477,235		$	151,234			4.35	%
Liabilities and Stockholders’ Equity
Deposits
Demand Deposits	$	519,326		$	471,164			48,162			10.22	%	$	573,904		$	(54,578	)		-9.51	%
Savings and Interest Checking Accounts		725,313			587,474			137,839			23.46	%		711,862			13,451			1.89	%
Money Market		488,345			435,792			52,553			12.06	%		464,983			23,362			5.02	%
Time Certificates of Deposit		846,096			532,180			313,916			58.99	%		787,282			58,814			7.47	%
Total Deposits		2,579,080			2,026,610			552,470			27.26	%		2,538,031			41,049			1.62	%
Borrowings
Federal Home Loan Bank Borrowings		429,634			311,125			118,509			38.09	%		336,792			92,842			27.57	%
Fed Funds Purchased and Assets Sold Under Repurchase Agreements		170,880			138,603			32,277			23.29	%		166,417			4,463			2.68	%
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		2,946			3,069			(123	)		-4.01	%		2,103			843			40.09	%
Total Borrowings		695,317			504,344			190,973			37.87	%		597,169			98,148			16.44	%
Total Deposits and Borrowings		3,274,397			2,530,954			743,443			29.37	%		3,135,200			139,197			4.44	%
Other Liabilities		48,798			16,994			31,804			187.15	%		37,295			11,503			30.84	%
Stockholders’ Equity		305,274			220,465			84,809			38.47	%		304,740			534			0.18	%
Total Liabilities and Stockholders’ Equity	$	3,628,469		$	2,768,413			860,056			31.07	%	$	3,477,235		$	151,234			4.35	%

10

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

CONSOLIDATED BALANCE SHEETS

	Three Months Ended												Twelve Months Ended
	December 31,						$			%			December 31,						$			%
	2008			2007			Variance			Change			2008			2007			Variance			Change
INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	51		$	56		$	(5	)		-8.93	%	$	148		$	1,468		$	(1,320	)		-89.92	%
Interest and Dividends on Securities		7,351			6,071			1,280			21.08	%		25,135			22,879			2,256			9.86	%
Interest on Loans		38,080			34,033			4,047			11.89	%		151,105			135,391			15,714			11.61	%
Total Interest Income		45,482			40,160			5,322			13.25	%		176,388			159,738			16,650			10.42	%
INTEREST EXPENSE
Interest on Deposits		9,964			10,611			(647	)		-6.10	%		38,896			43,639			(4,743	)		-10.87	%
Interest on Borrowed Funds		5,023			5,058			(35	)		-0.69	%		20,030			19,916			114			0.57	%
Total Interest Expense		14,987			15,669			(682	)		-4.35	%		58,926			63,555			(4,629	)		-7.28	%
Net Interest Income		30,495			24,491			6,004			24.52	%		117,462			96,183			21,279			22.12	%
Less — Provision for Loan Losses		5,575			1,355			4,220			311.44	%		10,888			3,130			7,758			247.86	%
Net Interest Income after Provision for Loan Losses		24,920			23,136			1,784			7.71	%		106,574			93,053			13,521			14.53	%
NON-INTEREST INCOME
Service Charges on Deposit Accounts		3,914			3,720			194			5.22	%		15,595			14,414			1,181			8.19	%
Wealth Management		2,580			2,240			340			15.18	%		11,133			8,110			3,023			37.27	%
Mortgage Banking Income		497			949			(452	)		-47.63	%		3,072			3,166			(94	)		-2.97	%
BOLI Income		739			591			148			25.04	%		2,555			2,004			551			27.50	%
Net Loss on Sale of Securities		—			—			—			n/a			(609	)		—			(609	)		n/a
Other-Than-Temporary-Impairment on Certain Pooled Trust Preferred Securities		(4,646	)		—			(4,646	)		n/a			(7,216	)		—			(7,216	)		n/a
Other Non-Interest (Loss)/Income		568			999			(431	)		-43.14	%		3,554			4,357			(803	)		-18.43	%
Total Non-Interest Income		3,652			8,499			(4,847	)		-57.03	%		28,084			32,051			(3,967	)		-12.38	%
NON-INTEREST EXPENSE
Salaries and Employee Benefits		14,468			13,252			1,216			9.18	%		58,275			52,520			5,755			10.96	%
Occupancy and Equipment Expenses		3,419			2,375			1,044			43.96	%		12,757			9,932			2,825			28.44	%
Data Processing and Facilities Management		1,403			1,216			187			15.38	%		5,574			4,584			990			21.60	%
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		7,300			5,164			2,136			41.36	%		26,835			20,896			5,939			28.42	%
Total Non-Interest Expense		26,590			22,007			4,583			20.83	%		104,143			87,932			16,211			18.44	%
INCOME BEFORE INCOME TAXES		1,982			9,628			(7,646	)		-79.41	%		30,515			37,172			(6,657	)		-17.91	%
PROVISION FOR INCOME TAXES		(1,039	)		1,898			(2,937	)		-154.74	%		6,551			8,791			(2,240	)		-25.48	%
NET INCOME	$	3,021		$	7,730		$	(4,709	)		-60.92	%	$	23,964		$	28,381		$	(4,417	)		-15.56	%
BASIC EARNINGS PER SHARE	$	0.19		$	0.56						-67.86	%	$	1.53		$	2.02						-24.26	%
DILUTED EARNINGS PER SHARE	$	0.18		$	0.56						-67.86	%	$	1.52		$	2.00						-24.00	%
BASIC AVERAGE SHARES		16,280,552			13,734,231						18.54	%		15,694,555			14,033,257						11.84	%
DILUTED AVERAGE SHARES		16,331,118			13,840,654						17.99	%		15,759,482			14,160,598						11.29	%
PERFORMANCE RATIOS:
Net Interest Margin (FTE)		3.81	%		3.94	%					-3.30	%		3.95	%		3.90	%					1.28	%
Return on Average Assets		0.34	%		1.13	%					-69.91	%		0.73	%		1.05	%					-30.48	%
Return on Average Equity		3.92	%		14.08	%					-72.09	%		8.20	%		12.93	%					-36.66	%
RECONCILIATION TABLE — NON-GAAP FINANCIAL INFORMATION
NET INCOME (GAAP)	$	3,021		$	7,730		$	(4,709	)		-60.92	%	$	23,964		$	28,381		$	(4,417	)		-15.56	%
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			885			(397	)
Less — WorldCom Bond Loss Recovery, net of tax		—			—			—						(272	)		—			(272	)
NET OPERATING EARNINGS	$	3,021		$	7,730		$	(4,709	)		-60.92	%	$	25,304		$	30,120		$	(4,816	)		-15.99	%
Diluted Earnings Per Share, on an Operating Basis	$	0.18		$	0.56		$	(0.38	)		-67.86	%	$	1.61		$	2.13		$	(0.52	)		-24.41	%

11

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

			Three Months Ended December 31,
			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	$	19,979	$	51		1.02	%	$	1,073	$	56		20.88	%
Securities:
Trading Assets		2,701		3,036		45		5.93	%		1,724		15		3.48	%
Taxable Investment Securities		619,213		558,345		6,937		4.97	%		458,080		5,552		4.85	%
Non-taxable Investment Securities (1)		38,470		38,461		568		5.91	%		49,449		776		6.28	%
Total Securities:		660,384		599,842		7,550		5.03	%		509,253		6,343		4.98	%
Loans (1)		2,660,887		2,617,938		38,200		5.84	%		2,015,811		34,154		6.78	%
Total Interest-Earning Assets	$	3,321,371	$	3,237,759	$	45,801		5.66	%	$	2,526,137	$	40,553		6.42	%
Cash and Due from Banks		50,007		65,772							57,305
Other Assets		257,091		244,772							147,935
Total Assets	$	3,628,469	$	3,548,303						$	2,731,377
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	725,313	$	720,695	$	1,490		0.83	%	$	574,727	$	1,865		1.30	%
Money Market		488,345		498,845		2,356		1.89	%		447,431		3,155		2.82	%
Time Deposits		846,096		859,894		6,118		2.85	%		521,902		5,591		4.29	%
Total interest-bearing deposits:		2,059,754		2,079,434		9,964		1.92	%		1,544,060		10,611		2.75	%
Borrowings:
Federal Home Loan Bank Borrowings	$	429,634	$	309,653	$	2,335		3.02	%	$	277,127	$	3,050		4.40	%
Federal Funds Purchased and Assets Sold Under Repurchase Agreement		170,880		168,343		1,144		2.72	%		136,040		1,107		3.25	%
Junior Subordinated Debentures		61,857		61,857		995		6.43	%		51,547		861		6.68	%
Subordinated Debentures		30,000		30,000		546		7.28	%		—		—		—
Other Borrowings		2,946		2,736		3		0.44	%		3,025		40		5.29	%
Total Borrowings:		695,317		572,589		5,023		3.51	%		467,739		5,058		4.33	%
Total Interest-Bearing Liabilities	$	2,755,071	$	2,652,023	$	14,987		2.26	%	$	2,011,799	$	15,669		3.12	%
Demand Deposits		519,326		550,073							485,923
Other Liabilities		48,798		38,261							14,017
Total Liabilities	$	3,323,195	$	3,240,357						$	2,511,739
Stockholders’ Equity		305,274		307,946							219,638
Total Liabilities and Stockholders’ Equity	$	3,628,469	$	3,548,303						$	2,731,377
Net Interest Income					$	30,814						$	24,884
Interest Rate Spread (2)								3.40	%						3.30	%
Net Interest Margin (3)								3.81	%						3.94	%
Supplemental Information:
Total Deposits, including Demand Deposits	$	2,579,080	$	2,629,507	$	9,964				$	2,029,983	$	10,611
Cost of Total Deposits								1.52	%						2.09	%
Total Funding Liabilities, including Demand Deposits	$	3,274,397	$	3,202,096	$	14,987				$	2,497,722	$	15,669
Cost of Total Funding Liabilities								1.87	%						2.51	%

(1)	The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $319 and $393 for the three months ended December 31, 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)

			Twelve Months Ended December 31,
			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	$	5,908	$	148		2.51	%	$	26,630	$	1,468		5.51	%
Securities:
Trading Assets		2,701		3,060		140		4.58	%		1,692		48		2.84	%
Taxable Investment Securities		619,213		470,668		23,307		4.95	%		433,186		20,694		4.78	%
Non-taxable Investment Securities (1)		38,470		41,203		2,597		6.30	%		51,181		3,288		6.42	%
Total Securities:		660,384		514,931		26,044		5.06	%		486,059		24,030		4.94	%
Loans (1)		2,660,887		2,489,028		151,572		6.09	%		1,994,273		135,874		6.81	%
Total Interest-Earning Assets	$	3,321,371	$	3,009,867	$	177,764		5.91	%	$	2,506,962	$	161,372		6.44	%
Cash and Due from Banks		50,007		65,992							59,009
Other Assets		257,091		219,517							148,494
Total Assets	$	3,628,469	$	3,295,376						$	2,714,465
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	725,313	$	688,336	$	6,229		0.90	%	$	575,269	$	7,731		1.34	%
Money Market		488,345		472,065		9,182		1.95	%		462,434		13,789		2.98	%
Time Deposits		846,096		740,779		23,485		3.17	%		531,016		22,119		4.17	%
Total interest-bearing deposits:		2,059,754		1,901,180		38,896		2.05	%		1,568,719		43,639		2.78	%
Borrowings:
Federal Home Loan Bank Borrowings	$	429,634	$	312,451	$	10,714		3.43	%	$	254,516	$	11,316		4.45	%
Federal Funds Purchased and Assets Sold Under Repurchase Agreement		170,880		154,440		4,663		3.02	%		109,344		3,395		3.10	%
Junior Subordinated Debentures		61,857		60,166		3,842		6.39	%		59,950		5,048		8.42	%
Subordinated Debentures		30,000		10,410		750		7.20	%		—		—		—
Other Borrowings		2,946		2,381		61		2.56	%		2,627		157		5.98	%
Total Borrowings:		695,317		539,848		20,030		3.71	%		426,437		19,916		4.67	%
Total Interest-Bearing Liabilities	$	2,755,071	$	2,441,028	$	58,926		2.41	%	$	1,995,156	$	63,555		3.19	%
Demand Deposits		519,326		533,543							485,922
Other Liabilities		48,798		28,692							13,914
Total Liabilities	$	3,323,195	$	3,003,263						$	2,494,992
Stockholders’ Equity		305,274		292,113							219,473
Total Liabilities and Stockholders’ Equity	$	3,628,469	$	3,295,376						$	2,714,465
Net Interest Income					$	118,838						$	97,817
Interest Rate Spread (2)								3.50	%						3.25	%
Net Interest Margin (3)								3.95	%						3.90	%
Supplemental Information:
Total Deposits, including Demand Deposits	$	2,579,080	$	2,434,723	$	38,896				$	2,054,641	$	43,639
Cost of Total Deposits								1.60	%						2.12	%
Total Funding Liabilities, including Demand Deposits	$	3,274,397	$	2,974,571	$	58,926				$	2,481,078	$	63,555
Cost of Total Funding Liabilities								1.98	%						2.56	%

(1)	The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $1,376 for the twelve months ended December 31, 2008 and $1,634 for the twelve months ended December 31, 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
	December 31,			December 31,			September 30,
	2008			2007			2008
	(Dollars in Thousands, Except Per Share Data)
Asset Quality
Nonperforming Loans
Commercial & Industrial Loans	$	1,942		$	306		$	1,481
Small Business Loans		1,111			439			773
Commercial Real Estate Loans		12,370			2,568			5,478
Residential Real Estate Loans		9,394			2,380			6,725
Installment Loans — Home Equity		1,090			872			1,106
Installment Loans — Auto		813			833			770
Installment Loans — Other		213			246			311
Total Nonperforming Loans		26,933			7,644			16,644
Non-Accrual Securities		910			—			—
Other Assets in Possession		231			—			—
Other Real Estate Owned		1,809			681			1,239
Nonperforming Assets		29,883			8,325			17,883
Net charge-offs (year to date)	$	6,194		$	3,114		$	4,381
Net charge-offs to average loans (annualized)		0.24	%		0.16	%		0.23	%
Nonperforming Loans/Gross Loans		1.01	%		0.37	%		0.64	%
Allowance for Loan Losses/Nonperforming Loans		137.56	%		351.01	%		199.99	%
Gross Loans/Total Deposits		103.17	%		100.81	%		101.87	%
Allowance for Loan Losses/Total Loans		1.39	%		1.31	%		1.29	%
Financial Ratios
Book Value per Share	$	18.75		$	16.04		$	18.72
Tangible Capital/Tangible Asset		5.67	%		5.91	%		5.32	%
Tangible Capital/Tangible Asset (proforma to include the deductibility of goodwill)		5.54	%		6.45	%		5.76	%
Tangible Book Value per Share	$	11.03		$	11.64		$	10.95
Tangible Book Value per Share (proforma to include the deductibility of goodwill)	$	12.19		$	12.70		$	11.85
Capital Adequacy
Tier one leverage capital ratio (1)		7.58	%		8.02	%		7.69	%

(1) Estimated number for December 31, 2008

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

14