Independent Bank (INDB) 8-K Independent Bank Corp. Reports First Quarter 2009 Earnings

Exhibit 99.1

Shareholder Relations	NEWS RELEASE
288 Union Street,
Rockland, MA 02370

INDEPENDENT BANK CORP. REPORTS FIRST QUARTER 2009 EARNINGS

     Rockland, Massachusetts (April 29, 2009). Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced first quarter of 2009 net income of $6.4 million, and net income available to common shareholders of $5.2 million, or $0.32 on a per diluted share basis. This compares with net income of $3.0 million, or $0.18 on a diluted earnings per share basis for the fourth quarter 2008, and net income of $6.3 million, or $0.44 on a diluted earnings per share basis for the first quarter of 2008. The increase in earnings from the quarter which ended December 31, 2008 is primarily due to other-than-temporary impairment charges and higher loan provisions recorded during the fourth quarter of 2008.

     Loan and deposit balances grew during the first quarter of 2009, despite the challenging economic environment, as the Company took advantage of opportunities created by market turmoil. Total loans increased by $16.7 million and total deposits increased by $74.7 million during the first quarter of 2009 when compared to December 31, 2008.

     First quarter 2009 results included merger and acquisition expenses of $1.0 million after-tax and an after-tax gain of $0.9 million on the sale of securities. Excluding these items, net operating earnings were $5.3 million, or $0.33 on a per diluted share basis, for the quarter ended March 31, 2009 compared to net operating earnings and diluted earnings per share for the quarters which ended December 31, 2008 and March 31, 2008 of $3.0 million and $0.18, and $6.9 million and $0.48, respectively. A reconciliation table which sets forth the computation of net operating earnings is included in the financial statement schedules attached to this press release.

     “Rockland Trust had solid financial performance during the first quarter of 2009,” said Christopher Oddleifson, President and Chief Executive Officer. “The stability and safety of our organization has distinguished us from our competition in a challenging economic climate. Customers continue to turn to Rockland Trust as a secure place for their deposits and as a lender that is willing and able to meet their credit needs.”

     “We are eagerly looking forward to the upcoming integration of the Benjamin Franklin Bank,” added Oddleifson. “We are excited about expanding into new territory and welcoming Benjamin Franklin customers and employees to Rockland Trust next month.”

CAPITAL PURCHASE PROGRAM REPAYMENT

     On January 9, 2009, the Company raised approximately $78 million through the sale of preferred stock to the United States Treasury pursuant to the Capital Purchase Program (the “CPP”). All of the proceeds from that transaction have been treated as Tier 1 capital for regulatory purposes. The preferred dividend expense in the first quarter amounted to $1.2 million, or $0.07 on a per share basis.

1

     On April 22, 2009 the Company repaid all of the approximately $78 million CPP preferred stock investment. The Company and Rockland Trust both continue to be “well-capitalized” by applicable regulatory standards following that repayment. Management will discuss the impact of the repayment of CPP funding on the second quarter of 2009 and the remainder of the year on the earnings conference call.

NET INTEREST INCOME

     Comparing the quarter ended March 31, 2009 to the quarter ended December 31, 2008, net interest income decreased $506,000, or (1.7%). The net interest margin for the comparable periods was 3.55% and 3.81%, respectively. The primary reason for this decline is the steady lowering of rates by the Federal Reserve in the fourth quarter of 2008, which caused the Company’s asset yields to reprice faster than its liability costs. A significant additional factor in the margin compression was the Company’s large position in low-yielding, highly liquid short term assets, averaging $121.4 million in the quarter, primarily due to better than anticipated deposit growth during a period when the Company usually experiences seasonal declines in deposit levels.

NON-INTEREST INCOME

     The Company recorded non-interest income of $10.5 million during the first quarter of 2009, an increase of $6.8 million when compared to the quarter ended December 31, 2008. The change in non-interest income is attributable to the following:

Ø	Service charges on deposit accounts decreased by $266,000, or (6.8%), mainly due to declines in overdraft and insufficient fund fees.
Ø	Wealth management revenue decreased by $250,000, or (9.7%). Despite very weak stock market conditions in the first quarter, assets under management remain stable at $1.1 billion.
Ø	Mortgage banking income increased by $659,000, or 132.6%, as a result of increased originations. The balance of the mortgage servicing asset was $1.5 million at both March 31, 2009 and December 31, 2008 and loans serviced amounted to $237.9 million and $250.5 million, respectively.
Ø	During the first quarter of 2009, the Company recorded a $1.4 million gain on the sale of securities. There were no gains or losses on the sale of securities during the fourth quarter of 2008.
Ø	The Company recorded no Other-Than-Temporary Impairment (“OTTI”) charges in the first quarter of 2009. For the quarter and year ended December 31, 2008 the Company recorded OTTI on certain investment grade pooled trust preferred securities, which resulted in a negative charge to non-interest income of $4.6 million pre-tax and $7.2 million pre-tax, respectively. Pursuant to the recent Financial Accounting Standards Board pronouncements, which stated that previously recorded impairment charges which did not relate to credit loss should be reclassified from retained earnings to other comprehensive income (“OCI”), during the first quarter of 2009 the Company recorded a cumulative effect adjustment that increased retained earnings and decreased OCI by $6.0 million pre-tax or $3.8 million after-tax.

2

Ø Other non-interest income increased by $663,000, or 116.7%, due to increased trading asset gains and interest rate swap income.

NON-INTEREST EXPENSE

     The Company recorded non-interest expense of $28.3 million in the first quarter of 2009, an increase of $1.7 million, or 6.5%, when compared to the quarter which ended December 31, 2008.

Ø	Salaries and employee benefits increased by $391,000, or 2.7%, primarily attributable to an increase in payroll taxes and medical plan insurance.
Ø	Occupancy and equipment expense increased by $286,000, or 8.4%, mainly due to an increase in snow removal costs.
Ø	The Company recorded merger and acquisition expenses of $1.5 million for the quarter ended March 31, 2009, associated with the acquisition of Benjamin Franklin Bancorp, Inc., consistent with new accounting standards effective January 1, 2009 regarding business combinations. There were no merger and acquisition expenses for the quarter ended December 31, 2008.
Ø	Other non-interest expense decreased by $488,000, or (7.2%), which is primarily attributable to decreases in other losses and charge-offs of $132,000 and amortization of intangible assets of $108,000.

     The Company reported a return on average assets and a return on average common equity in the first quarter of 2009 of 0.56% and 6.59%, respectively, as compared to 0.34% and 3.92% for the quarter ended December 31, 2008.

BALANCE SHEET

     Total assets increased by $138.0 million, or 3.8%, to $3.8 billion at March 31, 2009 as compared to December 31, 2008.

     Total loans were $2.7 billion at both March 31, 2009 and December 31, 2008 compared to $2.5 billion at March 31, 2008. During the first quarter of 2009 loans grew by $16.7 million, or 2.5% on an annualized basis. The loan growth was concentrated in the commercial and industrial category. Total commercial loans (including small business) now represent 62.6% of the total loan portfolio. As compared to a year ago, total loans grew by $153.6 million, or 6.1%.

     Securities decreased by $43.9 million, or (6.6%), during the quarter ended March 31, 2009. The decrease is primarily attributable to pay downs of approximately $33.0 million.

     Total deposits increased by $74.7 million, or 2.9%, during the quarter ending March 31, 2009, as compared to December 31, 2008. The Company believes that this increase is attributable to customers retaining additional balances in deposit accounts due to the turbulent stock market.

     Borrowings decreased by $22.9 million, or 3.3%, during the quarter ending March 31, 2009, as compared to December 31, 2008, primarily attributable to scheduled pay downs of outstanding Federal Home Loan Bank borrowings.

3

     Stockholders’ equity at March 31, 2009 totaled $393.5 million as compared to $305.3 million at December 31, 2008, primarily due to the Company’s receipt of the CPP preferred stock investment during the quarter which has since been repaid. The Tier 1 leverage capital ratio at March 31, 2009 was 9.77%, maintaining the Company’s well-capitalized position. The following table shows the Company’s Capital Ratios at the dates indicated below.

Independent Capital Ratios

	Actual			Estimated
	Before CPP			with CPP
	12/31/2008			3/31/2009
Leverage Ratio		7.55	%		9.77	%
Tier 1 Capital to Risk Weighted Assets Ratio		9.50	%		12.59	%
Total Risk Weighted Assets Ratio		11.85	%		14.91	%

ASSET QUALITY

     The allowance for loan losses was $37.5 million at March 31, 2009 as compared to $37.0 million at December 31, 2008. Nonperforming loans totaled $29.0 million, or 1.08% of total loans at March 31, 2009, as compared to $26.9 million, or 1.01% of total loans at December 31, 2008. The Company’s allowance for loan losses as a percentage of loans was 1.40% and 1.39% at March 31, 2009 and December 31, 2008, respectively. The provision for loan losses was $4.0 million and $5.6 million, for the quarter ended March 31, 2009 and December 31, 2008, respectively. Net charge-offs were $3.6 million and $1.8 million for the periods ending March 31, 2009 and December 31, 2008, respectively. Of the $3.6 million in net charge-offs, $2.1 million was related to one commercial relationship that was provided for in the fourth quarter of 2008. The provision was increased in the first quarter of 2009 and fourth quarter of 2008 to account for loan growth experienced in the quarters in addition to the increase in non-performing loans.

     Christopher Oddleifson and Denis K. Sheahan, Chief Financial Officer, of Independent Bank Corp. and Rockland Trust Company, will host a conference call to discuss first quarter earnings at 4:45 p.m. Eastern Time on Wednesday, April 29, 2009. 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: 428956. The web cast replay will be available until April 29, 2010 and the telephone replay will be available until May 15, 2009.

     Independent Bank Corp., which has Rockland Trust Company as a wholly-owned bank subsidiary, currently has approximately $4.6 billion in assets. Rockland Trust offers a wide range of commercial banking products and services, retail banking products and services, business and consumer loans, insurance products and services, and investment management services. When the anticipated merger of Benjamin Franklin Bank into Rockland Trust is completed in May 2009, Rockland Trust will have: 71 retail branches, 10 commercial lending centers, and 2 mortgage banking centers located in eastern Massachusetts and on Cape Cod; and, 4 investment management offices located in southeastern Massachusetts, on Cape Cod, and in Rhode Island. To discover why Rockland Trust is the bank Where Each Relationship Matters^®, visit www.RocklandTrust.com.

4

     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.

Contacts:

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

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

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

										% Change			% Change
	March 31,			December 31,			March 31,			Mar. 2009 vs.			Mar. 2009 vs.
CONSOLIDATED BALANCE SHEETS	2009			2008			2008			Dec. 2008			Mar. 2008
Assets
Cash and Due From Banks	$	70,554		$	50,007		$	80,598			41.09	%		-12.46	%
Fed Funds Sold and Short Term Investments		149,729			100			—			149629.00	%		n/a
Securities
Trading Assets		2,580			2,701			3,305			-4.48	%		-21.94	%
Securities Available for Sale		558,541			600,291			419,491			-6.95	%		33.15	%
Securities Held to Maturity		30,804			32,789			39,335			-6.05	%		-21.69	%
Federal Home Loan Bank Stock		24,603			24,603			24,603			0.00	%		0.00	%
Total Securities		616,528			660,384			486,734			-6.64	%		26.67	%
Loans
Commercial and Industrial		286,178			270,832			259,430			5.67	%		10.31	%
Commercial Real Estate		1,136,411			1,126,295			1,030,085			0.90	%		10.32	%
Commercial Construction		166,272			171,955			163,785			-3.30	%		1.52	%
Small Business		87,137			86,670			73,853			0.54	%		17.99	%
Total Commercial		1,675,998			1,655,752			1,527,153			1.22	%		9.75	%
Residential Real Estate		406,119			413,024			426,674			-1.67	%		-4.82	%
Residential Construction		9,727			10,950			7,622			-11.17	%		27.62	%
Residential Loans Held for Sale		22,412			8,351			15,577			168.38	%		43.88	%
Total Residential		438,258			432,325			449,873			1.37	%		-2.58	%
Consumer — Home Equity		411,097			406,240			355,367			1.20	%		15.68	%
Consumer — Auto		116,375			127,956			147,232			-9.05	%		-20.96	%
Consumer — Other		35,847			38,614			44,317			-7.17	%		-19.11	%
Total Consumer		563,319			572,810			546,916			-1.66	%		3.00	%
Total Loans		2,677,575			2,660,887			2,523,942			0.63	%		6.09	%
Less — Allowance for Loan Losses		(37,488	)		(37,049	)		(32,609	)		1.18	%		14.96	%
Net Loans		2,640,087			2,623,838			2,491,333			0.62	%		5.97	%
Bank Premises and Equipment		36,733			36,429			51,559			0.83	%		-28.76	%
Goodwill and Core Deposit Intangible		125,726			125,710			127,391			0.01	%		-1.31	%
Other Assets		127,082			132,001			92,616			-3.73	%		37.21	%
Total Assets	$	3,766,439		$	3,628,469		$	3,330,231			3.80	%		13.10	%
Liabilities and Stockholders’ Equity
Deposits
Demand Deposits	$	541,038		$	519,326		$	549,581			4.18	%		-1.55	%
Savings and Interest Checking Accounts		765,258			725,313			686,808			5.51	%		11.42	%
Money Market		536,808			488,345			484,634			9.92	%		10.77	%
Time Certificates of Deposit		810,637			846,096			735,922			-4.19	%		10.15	%
Total Deposits		2,653,741			2,579,080			2,456,945			2.89	%		8.01	%
Borrowings
Federal Home Loan Bank Borrowings		408,480			429,634			332,105			-4.92	%		23.00	%
Fed Funds Purchased and Assets Sold
Under Repurchase Agreements		169,616			170,880			138,633			-0.74	%		22.35	%
Junior Subordinated Debentures		61,857			61,857			61,857			0.00	%		0.00	%
Subordinated Debentures		30,000			30,000			—			0.00	%		n/a
Other Borrowings		2,442			2,946			10,516			-17.11	%		-76.78	%
Total Borrowings		672,395			695,317			543,111			-3.30	%		23.80	%
Total Deposits and Borrowings		3,326,136			3,274,397			3,000,056			1.58	%		10.87	%
Other Liabilities		46,780			48,798			29,518			-4.14	%		58.48	%
Stockholders’ Equity
Preferred Stock		73,578			—			—			n/a			n/a
Common Stock		163			163			163			0.00	%		0.00	%
Additional Paid in Capital		142,140			137,488			137,054			3.38	%		3.71	%
Retained Earnings		184,387			177,493			168,383			3.88	%		9.50	%
Accumulated Other Comprehensive Loss, Net of Tax		(6,745	)		(9,870	)		(4,943	)		-31.66	%		36.46	%
Total Stockholders’ Equity		393,523			305,274			300,657			28.91	%		30.89	%
Total Liabilities and Stockholders’ Equity	$	3,766,439		$	3,628,469		$	3,330,231			3.80	%		13.10	%

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

	Three Months Ended
										% Change			% Change
	March 31,			December 31,			March 31,			Mar. 2009 vs.			Mar. 2009 vs.
CONSOLIDATED STATEMENTS OF INCOME	2009			2008			2008			Dec. 2008			Mar. 2008
INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	198		$	51		$	19			288.24	%		942.11	%
Interest and Dividends on Securities		7,267			7,351			5,892			-1.14	%		23.34	%
Interest on Loans		35,946			38,080			35,168			-5.60	%		2.21	%
Total Interest Income		43,411			45,482			41,079			-4.55	%		5.68	%
INTEREST EXPENSE
Interest on Deposits		8,407			9,964			10,315			-15.63	%		-18.50	%
Interest on Borrowed Funds		5,015			5,023			4,999			-0.16	%		0.32	%
Total Interest Expense		13,422			14,987			15,314			-10.44	%		-12.35	%
Net Interest Income		29,989			30,495			25,765			-1.66	%		16.39	%
Less — Provision for Loan Losses		4,000			5,575			1,342			-28.25	%		198.06	%
Net Interest Income after Provision for Loan Losses		25,989			24,920			24,423			4.29	%		6.41	%
NON-INTEREST INCOME
Service Charges on Deposit Accounts		3,648			3,914			3,635			-6.80	%		0.36	%
Wealth Management		2,330			2,580			2,676			-9.69	%		-12.93	%
Mortgage Banking Income		1,156			497			1,114			132.60	%		3.77	%
BOLI Income		729			739			520			-1.35	%		40.19	%
Net Gain/(Loss) on Sale of Securities		1,379			—			(609	)		n/a			-326.44	%
Other-Than-Temporary-Impairment on Certain Pooled Trust Preferred Securities		—			(4,646	)		—			-100.00	%		n/a
Other Non-Interest (Loss)/Income		1,231			568			902			116.73	%		36.47	%
Total Non-Interest Income		10,473			3,652			8,238			186.77	%		27.13	%
NON-INTEREST EXPENSE
Salaries and Employee Benefits		14,859			14,468			14,143			2.70	%		5.06	%
Occupancy and Equipment Expenses		3,705			3,419			2,903			8.37	%		27.63	%
Data Processing and Facilities Management		1,416			1,403			1,284			0.93	%		10.28	%
Merger & Acquisition Expense		1,538			—			744			n/a			n/a
WorldCom Bond Loss Recovery		—			—			(418	)		n/a			n/a
FDIC assessment		536			559			58			-4.11	%		824.14	%
Other Non-Interest Expense		6,253			6,741			5,318			-7.24	%		17.58	%
Total Non-Interest Expense		28,307			26,590			24,032			6.46	%		17.79	%
INCOME BEFORE INCOME TAXES		8,155			1,982			8,629			311.45	%		-5.49	%
PROVISION FOR INCOME TAXES		1,767			(1,039	)		2,321			-270.07	%		-23.87	%
NET INCOME	$	6,388		$	3,021		$	6,308			111.45	%		1.27	%
PREFERRED STOCK DIVIDEND	$	1,173		$	—		$	—			n/a			n/a
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	5,215		$	3,021		$	6,308			72.62	%		-17.33	%
BASIC EARNINGS PER SHARE	$	0.32		$	0.19		$	0.44			68.42	%		-27.27	%
DILUTED EARNINGS PER SHARE	$	0.32		$	0.18		$	0.44			77.78	%		-27.27	%
BASIC AVERAGE SHARES		16,285,955			16,280,552			14,386,845			0.03	%		13.20	%
DILUTED AVERAGE SHARES		16,303,836			16,331,118			14,459,978			-0.17	%		12.75	%
PERFORMANCE RATIOS:
Net Interest Margin (FTE)		3.55	%		3.81	%		3.90	%		-6.82	%		-8.97	%
Return on Average Assets		0.56	%		0.34	%		0.87	%		64.71	%		-35.63	%
Return on Average Common Equity		6.59	%		3.92	%		10.01	%		68.37	%		-34.07	%
RECONCILIATION TABLE — NON-GAAP FINANCIAL INFORMATION
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP)	$	5,215		$	3,021		$	6,308			72.62	%		-17.33	%
Non-Interest Income Components
(Less)/Add — Net (Gain)/ Loss on Sale of Securities, net of tax		(896	)		—			396
Non-Interest Expense Components
Add — Merger and Acquisition Expenses, net of tax		1,000			—			484
Less — WorldCom Bond Loss Recovery, net of tax		—			—			(272	)
NET OPERATING EARNINGS	$	5,319		$	3,021		$	6,916			76.07	%		-23.08	%
Diluted Earnings Per Share, on an Operating Basis	$	0.33		$	0.18		$	0.48			83.33	%		-31.25	%

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

RECONCILIATION TABLE — NON-GAAP FINANCIAL INFORMATION

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.

	Three Months Ended
									% Change			% Change
��	March 31,			December 31,		March 31,			Mar. 2009 vs.			Mar. 2009 vs.
	2009			2008		2008			Dec. 2008			Mar. 2008
Non-Interest Income GAAP	$	10,473		$	3,652	$	8,238			186.77	%		27.13	%
(Less)/Add — Net (Gain)/Loss on Sale of Securities		(1,379	)		—		609			n/a			n/a
Add — Other-Than-Temporary-Impairment on Certain Pooled Trust Preferred Securities		—			4,646		—			-100.00	%		n/a
Non-Interest Income as Adjusted	$	9,094		$	8,298	$	8,847			9.59	%		2.79	%
Non-Interest Expense GAAP	$	28,307		$	26,590	$	24,032			6.46	%		17.79	%
Less — Merger & Acquisition Expenses		(1,538	)		—		(744	)		n/a			106.72	%
Add — WorldCom Bond Loss Recovery		—			—		418			n/a			-100.00	%
Non-Interest Expense as Adjusted	$	26,769		$	26,590	$	23,706			0.67	%		12.92	%

ASSET QUALITY

	For the Period Ending
	March 31,			December 31,			March 31,
	2009			2008			2008
	(Dollars in Thousands, Except Per Share Data)
Nonperforming Loans
Commercial & Industrial Loans	$	3,884		$	1,942		$	516
Small Business Loans		1,638			1,111			584
Commercial Real Estate Loans		10,833			12,370			3,578
Residential Real Estate Loans		8,521			9,394			3,733
Installment Loans — Home Equity		2,940			1,090			1,208
Installment Loans — Auto		665			813			933
Installment Loans — Other		479			213			346
Total Nonperforming Loans	$	28,960			26,933			10,898
Non-Accrual Securities		1,698			910			—
Other Assets in Possession		224			231			—
Other Real Estate Owned		1,764			1,809			1,019
Nonperforming Assets		32,646			29,883			11,917
Nonperforming Loans/Gross Loans		1.08	%		1.01	%		0.43	%
Allowance for Loan Losses/Nonperforming Loans		129.45	%		137.56	%		299.22	%
Gross Loans/Total Deposits		100.90	%		103.17	%		102.73	%
Allowance for Loan Losses/Total Loans		1.40	%		1.39	%		1.29	%
Net charge-offs (quarter-to-date)	$	3,560		$	1,813		$	1,089
Net charge-offs to average loans (annualized)		0.53	%		0.28	%		0.20	%
Financial Ratios
Book Value per Common Share	$	19.64		$	18.75		$	18.48
Tangible Common Capital/Tangible Asset (proforma to include the tax deductibility of goodwill and exclude impact of CPP)		5.83	%		5.67	%		5.86	%
Tangible Common Book Value per Share (proforma to include the tax deductibility of goodwill and exclude impact of CPP)	$	12.81		$	12.19		$	11.54
Capital Adequacy
Tier one leverage capital ratio (1)		9.77	%		7.55	%		8.55	%

(1) Estimated number for March 31, 2009

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

	Three Months Ended
	March 31, 2009							December 31, 2008							March 31, 2008
			Interest							Interest							Interest
	Average		Earned/		Yield/			Average		Earned/		Yield/			Average		Earned/		Yield/
	Balance		Paid		Rate			Balance		Paid		Rate			Balance		Paid		Rate
Interest-Earning Assets:
Federal Funds Sold and Short Term Investments	$	121,394	$	198		0.65	%	$	19,979	$	51		1.02	%	$	624	$	19		12.18	%
Securities:
Trading Assets		2,706		25		3.70	%		3,036		45		5.93	%		2,579		28		4.34	%
Taxable Investment Securities		590,400		6,937		4.70	%		558,345		6,937		4.97	%		423,783		5,386		5.08	%
Non-taxable Investment Securities (1)		30,161		469		6.22	%		38,461		568		5.91	%		45,833		735		6.41	%
Total Securities:		623,267		7,431		4.77	%		599,842		7,550		5.03	%		472,195		6,149		5.21	%
Loans (1)		2,667,073		36,065		5.41	%		2,617,938		38,200		5.84	%		2,207,337		35,285		6.39	%
Total Interest-Earning Assets	$	3,411,734	$	43,694		5.12	%	$	3,237,759	$	45,801		5.66	%	$	2,680,156	$	41,453		6.19	%
Cash and Due from Banks		60,079							65,772							60,598
Other Assets		251,307							244,772							170,328
Total Assets	$	3,723,120						$	3,548,303						$	2,911,082
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	740,020	$	996		0.54	%	$	720,695	$	1,490		0.83	%	$	607,387	$	1,591		1.05	%
Money Market		518,438		1,696		1.31	%		498,845		2,356		1.89	%		454,460		2,578		2.27	%
Time Deposits		831,196		5,715		2.75	%		859,894		6,118		2.85	%		607,399		6,146		4.05	%
Total interest-bearing deposits:	$	2,089,654	$	8,407		1.61	%	$	2,079,434	$	9,964		1.92	%	$	1,669,246	$	10,315		2.47	%
Borrowings:
Federal Home Loan Bank Borrowings	$	410,126	$	2,675		2.61	%	$	309,653	$	2,335		3.02	%	$	300,577	$	2,942		3.92	%
Federal Funds Purchased and Assets Sold Under Repurchase Agreement		172,884		856		1.98	%		168,343		1,144		2.72	%		139,276		1,153		3.31	%
Junior Subordinated Debentures		61,857		947		6.12	%		61,857		995		6.43	%		55,059		860		6.25	%
Subordinated Debentures		30,000		537		7.16	%		30,000		546		7.28	%		—		—		—
Other Borrowings		1,772		—		0.00	%		2,736		3		0.44	%		4,439		44		3.96	%
Total Borrowings:		676,639		5,015		2.96	%		572,589		5,023		3.51	%		499,351		4,999		4.00	%
Total Interest-Bearing Liabilities	$	2,766,293	$	13,422		1.94	%	$	2,652,023	$	14,987		2.26	%	$	2,168,597	$	15,314		2.82	%
Demand Deposits		530,425							550,073							475,020
Other Liabilities		42,405							38,261							15,471
Total Liabilities	$	3,339,123						$	3,240,357						$	2,659,088
Stockholders’ Equity		383,997							307,946							251,994
Total Liabilities and Stockholders’ Equity	$	3,723,120						$	3,548,303						$	2,911,082
Net Interest Income			$	30,272						$	30,814						$	26,139
Interest Rate Spread (2)						3.18	%						3.40	%						3.37	%
Net Interest Margin (3)						3.55	%						3.81	%						3.90	%
Supplemental Information:
Total Deposits, including Demand Deposits	$	2,620,079	$	8,407				$	2,629,507	$	9,964				$	2,144,266	$	10,315
Cost of Total Deposits						1.28	%						1.52	%						1.92	%
Total Funding Liabilities, including Demand Deposits	$	3,296,718	$	13,422				$	3,202,096	$	14,987				$	2,643,617	$	15,314
Cost of Total Funding Liabilities						1.63	%						1.87	%						2.32	%

(1)	The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $283, $319, and $374 for the three months ended March 31, 2009, December 31, 2008, and March 31, 2008, 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.

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