Exhibit 99.1
Independent Bank Corp. Reports Second Quarter 2009 Earnings
Net Interest Income and Margin Increase; Strong Commercial Loan Growth; Company Closes on Benjamin Franklin Acquisition
ROCKLAND, Mass.--(BUSINESS WIRE)--July 23, 2009--Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced net income of $660,000 for the second quarter of 2009. This compares with net income of $6.4 million for the first quarter of 2009. The decrease in net income from the prior quarter is primarily due to merger and acquisition expenses associated with the Benjamin Franklin Bancorp. Inc. acquisition, increased FDIC deposit premium fees, and other-than-temporary impairment charges on investment securities partially offset by a gain realized on certain exited interest rate hedge positions.
On a diluted earnings per share basis the Company reported a loss of ($0.19) for the quarter as compared to earnings of $0.32 in the linked quarter period. The Company’s repayment of the United States Treasury Department’s (“Treasury”) Capital Purchase Program (“CPP”) preferred stock resulted in a one time $4.4 million deemed dividend charge, which decreased net income available to common shareholders by $0.22 per diluted share, negatively impacting the second quarter’s performance.
Second quarter 2009 results included certain items which management considers non-core. These items, net of tax, are merger and acquisition expenses of $8.7 million, a gain of $2.4 million on the sale of derivatives and the aforementioned deemed preferred stock dividend of $4.4 million. Excluding these items, net operating earnings were $6.8 million, or $0.33 on a per diluted share basis, for the quarter ended June 30, 2009 compared to net operating earnings and diluted earnings per share for the quarters which ended March 31, 2009 and June 30, 2008 of $5.3 million and $0.33, and $7.0 million and $0.43, 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.
Christopher Oddleifson, President and Chief Executive Officer, stated, “Rockland Trust produced solid operating earnings driven by our core businesses, most notably commercial loan growth. The second quarter was very eventful in terms of accomplishments and moving the Rockland Trust franchise forward. We finalized the Benjamin Franklin acquisition, uniting two healthy, growing banks. We also were among a select group to be awarded federal tax credits for community lending programs. While the overall economic environment remains challenging, our strong capital base and long-term disciplined management approach position us well going forward.”
BENJAMIN FRANKLIN ACQUISITION
On April 10, 2009 the Company announced it had successfully closed its acquisition of Benjamin Franklin Bancorp. (the “Acquisition”) adding 11 branches, $687.4 million in loans and $701.4 million in deposits to its franchise. Below is a summary of the net assets acquired, at fair value, from Ben Franklin.
| Net Assets Acquired | |||
| Assets: | |||
| Cash | $ | 98,089 | |
| Investments | 147,548 | ||
| Loans | 687,444 | ||
| Premises and Equipment | 5,919 | ||
| Goodwill | 12,193 | ||
| Core Deposit & Other Intangible | 7,616 | ||
| Other Assets | 47,639 | ||
| Total Assets Acquired | 1,006,448 | ||
| Liabilities: | |||
| Deposits | 701,407 | ||
| Borrowings | 196,105 | ||
| Other Liabilities | 24,433 | ||
| Total Liabilities Assumed | 921,945 | ||
| Purchase Price | $ | 84,503 | |
BALANCE SHEET
Total assets increased by $688.6 million, or 18.3%, to $4.5 billion at June 30, 2009 as compared to March 31, 2009. The acquired balance sheet was reduced as management determined it appropriate to de-lever most of the positions in investment securities and borrowings resulting in a smaller post-acquisition balance sheet.
Total loans were $3.4 billion and $2.7 billion at June 30, 2009 and March 31, 2009 compared to $2.6 billion at June 30, 2008. During the second quarter of 2009 loans grew by $700.4 million, or 26.2%. The Acquisition added $687.4 million in loan growth at the date of Acquisition. Organic loan growth was concentrated in the commercial and commercial real estate category, 15.5% on an annualized basis driven by strong commercial and industrial growth, while the residential and indirect auto lending portfolios contracted. The following table summarizes loan growth for the quarter.
| June 30, | March 31, | Ben | Organic | |||||||||
| 2009 | 2009 | Acquisition | Growth/(Loss) | |||||||||
| (Dollars in Thousands) | ||||||||||||
| Loans | ||||||||||||
| Commercial and Commercial Real Estate Loans | $ | 2,053,460 | $ | 1,588,861 | $ | 402,947 | $ | 61,652 | ||||
| Small Business | 86,378 | 87,137 | - | (759) | ||||||||
| Residential Real Estate | 639,355 | 438,258 | 241,239 | (40,142) | ||||||||
| Consumer - Home Equity | 458,435 | 411,097 | 41,125 | 6,213 | ||||||||
| Consumer - Other | 140,378 | 152,222 | 2,133 | (13,977) | ||||||||
| Total Loans | $ | 3,378,006 | $ | 2,677,575 | $ | 687,444 | $ | 12,987 | ||||
Securities increased by $82.5 million, or 13.9%, during the quarter ended June 30, 2009, primarily attributable to the Acquisition and purchases made during the quarter.
Total deposits increased by $671.2 million, or 25.3%, during the quarter ending June 30, 2009, as compared to March 31, 2009. Of the increase, $701.4 million is a result of the Benjamin Franklin acquired deposits before any anticipated run-off, partially offset by reductions in the time deposit category to manage the Company’s cost of funds. The following table summarizes deposit growth during the quarter ended June 30, 2009.
| June 30, | March 31, | Ben | Organic | ||||||||
| 2009 | 2009 | Acquisition | Growth/(Loss) | ||||||||
| (Dollars in Thousands) | |||||||||||
| Deposits | |||||||||||
| Demand Deposits | $ | 699,173 | $ | 541,038 | $ | 122,391 | $ | 35,744 | |||
| Savings and Interest Checking Accounts | 987,202 | 765,258 | 172,263 | 49,681 | |||||||
| Money Market | 667,665 | 536,808 | 164,369 | (33,512) | |||||||
| Time Certificates of Deposit | 970,903 | 810,637 | 242,384 | (82,118) | |||||||
| Total Deposits | $ | 3,324,943 | $ | 2,653,741 | $ | 701,407 | $ | (30,205) | |||
Borrowings decreased by $4.5 million, or (0.7%), during the quarter ending June 30, 2009, as compared to March 31, 2009.
Stockholders’ equity at June 30, 2009 totaled $397.6 million as compared to $393.5 million at March 31, 2009. The Tier 1 leverage capital ratio at June 30, 2009 was 7.60%, maintaining the Company’s well-capitalized position.
CAPITAL PURCHASE PROGRAM REPAYMENT
On April 22, 2009 the Company repaid $78.2 million in preferred stock to the U.S. Treasury in conjunction with its exit from the Capital Purchase Program. As a result, during the quarter the Company recorded a $4.4 million non-cash deemed dividend, amounting to $0.22 per diluted share, associated with the repayment of the preferred stock to the U.S. Treasury and the remaining $141,000 preferred stock dividend for the quarter. The Company also repurchased a common stock warrant issued to the Treasury for $2.2 million, the cost of which, is recorded as a reduction in capital, in accordance with Generally Accepted Accounting Principles.
NET INTEREST INCOME
Comparing the quarter ended June 30, 2009 to the quarter ended March 31, 2009, net interest income increased $9.1 million, or 30.4% attributable to a larger balance sheet and an expanded net interest margin. The net interest margin for the comparable periods was 3.88% and 3.57%, respectively. The primary reason for these increases is active management of deposit costs and purchase accounting adjustments.
NON-INTEREST INCOME
The Company recorded non-interest income of $13.2 million during the second quarter of 2009, an increase of $2.8 million when compared to the quarter ended March 31, 2009. The change in non-interest income is primarily attributable to the Acquisition and is composed of the following:
NON-INTEREST EXPENSE
The Company recorded non-interest expense of $46.6 million in the second quarter of 2009, an increase of $18.2 million, or 64.5%, when compared to the quarter ended March 31, 2009.
The Company reported a return on average assets and a return on average common equity in the second quarter of 2009 of (0.35%) and (3.95%), respectively, as compared to 0.56% and 6.59% for the quarter ended March 31, 2009.
ASSET QUALITY
The allowance for loan losses was $40.1 million at June 30, 2009 as compared to $37.5 million at March 31, 2009. Nonperforming loans totaled $31.5 million, or 0.93% of total loans at June 30, 2009, as compared to $29.0 million, or 1.08% of total loans at March 31, 2009. The Company’s allowance for loan losses as a percentage of loans was 1.19% and 1.40% at June 30, 2009 and March 31, 2009, respectively, the decrease resulted from the Acquisition and new accounting rules in effect in 2009.
Loans obtained in connection with the Acquisition have been accounted for in accordance with Statement of Financial accounting Standards No. 141 (revised 2007), “Business Combinations” (“SFAS No. 141R”), and/or Statement of Position 03-3, “Accounting for Certain Loans or Debt Securities Acquired in a Transfer” (“SOP 03-3”), if the loan experienced deterioration of credit quality at the time of Acquisition. Both SFAS No. 141R and SOP 03-3 require that acquired loans be recorded at fair value and prohibit the carry over of the related allowance for credit losses. Determining the fair value of the acquired loans required estimating cash flows expected to be collected on the loans.
Excluding loans acquired at fair value the reserve to loan ratio at June 30, 2009 was 1.49%, a 9 basis point increase from the quarter ended March 31, 2009. The provision for loan losses was $4.5 million and $4.0 million, for the quarter ended June 30, 2009 and March 31, 2009, respectively. Net charge-offs were $5.4 million and $3.6 million for the periods ending June 30, 2009 and March 31, 2009, respectively.
NEW MARKETS TAX CREDIT AWARD
On May 27, 2009 the United States Secretary of the Treasury announced that Rockland Trust Community Development Corporation, a wholly-owned, second-tier subsidiary of the Company, was awarded $50 million in tax credit allocation authority under the federal New Markets Tax Credit Program. The Company will be eligible to receive tax credits over a seven year period totaling 39% of its award, or $19.5 million, as it begins to invest capital into the subsidiary which will lend to qualifying businesses in low income communities.
Christopher Oddleifson and Denis K. Sheahan, Chief Financial Officer, of Independent Bank Corp. and Rockland Trust Company, will host a conference call to discuss second quarter earnings at 10:00 a.m. Eastern Time on Friday, July 24, 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: 431792. The web cast replay will be available until July 24, 2010 and the telephone replay will be available until August 4, 2009.
Independent Bank Corp., which has Rockland Trust Company as wholly-owned bank subsidiary, currently has approximately $4.5 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. To discover why Rockland Trust is the bank Where Each Relationship Matters®, visit www.RocklandTrust.com.
This press release contains certain “forward-looking statements” with respect to the financial condition, results of operations and business of the Company. Actual results may differ from those contemplated by these statements. The Company wishes to caution readers not to place undue reliance on any forward-looking statements. The Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise.
This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s management uses these non-GAAP measures in its analysis of the Company’s performance. These non-GAAP measures may exclude significant gains or losses that are unusual in nature, such as securities losses. Because these gains and losses and their impact on the Company’s performance are difficult to predict, management believes that presentations of adjusted financial measures excluding the impact of these gains and losses provide useful information that is essential to a proper understanding of the operating results of the Company. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.
INDEPENDENT BANK CORP. FINANCIAL SUMMARY | ||||||||||||||||||
| (Unaudited - Dollars in Thousands) | ||||||||||||||||||
| % Change | % Change | |||||||||||||||||
| CONSOLIDATED BALANCE SHEETS | June 30, | March 31, | June 30, | June 2009 vs. | June 2009 vs. | |||||||||||||
| 2009 | 2009 | 2008 | March 2009 | June 2008 | ||||||||||||||
| Assets | ||||||||||||||||||
| Cash and Due From Banks | $ | 75,905 | $ | 70,554 | $ | 89,719 | 7.58 | % | -15.40 | % | ||||||||
| Fed Funds Sold and Short Term Investments | 6,159 | 149,729 | 100 | -95.89 | % | 6059.00 | % | |||||||||||
| Securities | ||||||||||||||||||
| Trading Assets | 22,926 | 2,580 | 3,185 | 788.60 | % | 619.81 | % | |||||||||||
| Securities Available for Sale | 581,241 | 558,541 | 426,894 | 4.06 | % | 36.16 | % | |||||||||||
| Securities Held to Maturity | 70,241 | 30,804 | 33,895 | 128.03 | % | 107.23 | % | |||||||||||
| Total Securities | 674,408 | 591,925 | 463,974 | 13.93 | % | 45.35 | % | |||||||||||
| Loans | ||||||||||||||||||
| Commercial and Industrial | 364,570 | 286,178 | 261,384 | 27.39 | % | 39.48 | % | |||||||||||
| Commercial Real Estate | 1,482,321 | 1,136,411 | 1,062,902 | 30.44 | % | 39.46 | % | |||||||||||
| Commercial Construction | 206,569 | 166,272 | 170,373 | 24.24 | % | 21.25 | % | |||||||||||
| Small Business | 86,378 | 87,137 | 86,430 | -0.87 | % | -0.06 | % | |||||||||||
| Total Commercial | 2,139,838 | 1,675,998 | 1,581,089 | 27.68 | % | 35.34 | % | |||||||||||
| Residential Real Estate | 599,166 | 406,119 | 417,304 | 47.53 | % | 43.58 | % | |||||||||||
| Residential Construction | 15,323 | 9,727 | 9,292 | 57.53 | % | 64.91 | % | |||||||||||
| Residential Loans Held for Sale | 24,866 | 22,412 | 9,171 | 10.95 | % | 171.14 | % | |||||||||||
| Total Residential | 639,355 | 438,258 | 435,767 | 45.89 | % | 46.72 | % | |||||||||||
| Consumer - Home Equity | 458,435 | 411,097 | 374,580 | 11.52 | % | 22.39 | % | |||||||||||
| Consumer - Auto | 105,064 | 116,375 | 141,046 | -9.72 | % | -25.51 | % | |||||||||||
| Consumer - Other | 35,314 | 35,847 | 42,783 | -1.49 | % | -17.46 | % | |||||||||||
| Total Consumer | 598,813 | 563,319 | 558,409 | 6.30 | % | 7.24 | % | |||||||||||
| Total Loans | 3,378,006 | 2,677,575 | 2,575,265 | 26.16 | % | 31.17 | % | |||||||||||
| Less - Allowance for Loan Losses | (40,068 | ) | (37,488 | ) | (33,231 | ) | 6.88 | % | 20.57 | % | ||||||||
| Net Loans | 3,337,938 | 2,640,087 | 2,542,034 | 26.43 | % | 31.31 | % | |||||||||||
| Federal Home Loan Bank Stock | 36,357 | 24,603 | 24,603 | 47.77 | % | 47.77 | % | |||||||||||
| Bank Premises and Equipment | 42,145 | 36,733 | 34,749 | 14.73 | % | 21.28 | % | |||||||||||
| Goodwill and Core Deposit Intangible | 144,865 | 125,726 | 126,914 | 15.22 | % | 14.14 | % | |||||||||||
| Other Assets | 137,282 | 127,082 | 105,365 | 8.03 | % | 30.29 | % | |||||||||||
| Total Assets | $ | 4,455,059 | $ | 3,766,439 | $ | 3,387,458 | 18.28 | % | 31.52 | % | ||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||
| Deposits | ||||||||||||||||||
| Demand Deposits | $ | 699,173 | $ | 541,038 | $ | 564,060 | 29.23 | % | 23.95 | % | ||||||||
| Savings and Interest Checking Accounts | 987,202 | 765,258 | 696,457 | 29.00 | % | 41.75 | % | |||||||||||
| Money Market | 667,665 | 536,808 | 478,852 | 24.38 | % | 39.43 | % | |||||||||||
| Time Certificates of Deposit | 970,903 | 810,637 | 734,792 | 19.77 | % | 32.13 | % | |||||||||||
| Total Deposits | 3,324,943 | 2,653,741 | 2,474,161 | 25.29 | % | 34.39 | % | |||||||||||
| Borrowings | ||||||||||||||||||
| Federal Home Loan Bank Borrowings | 392,968 | 408,480 | 357,949 | -3.80 | % | 9.78 | % | |||||||||||
| Fed Funds Purchased and Assets Sold | ||||||||||||||||||
| Under Repurchase Agreements | 179,317 | 169,616 | 157,114 | 5.72 | % | 14.13 | % | |||||||||||
| Junior Subordinated Debentures | 61,857 | 61,857 | 61,857 | 0.00 | % | 0.00 | % | |||||||||||
| Subordinated Debentures | 30,000 | 30,000 | - | 0.00 | % | 0.00 | % | |||||||||||
| Other Borrowings | 3,772 | 2,442 | 495 | 54.46 | % | 662.02 | % | |||||||||||
| Total Borrowings | 667,914 | 672,395 | 577,415 | -0.67 | % | 15.67 | % | |||||||||||
| Total Deposits and Borrowings | 3,992,857 | 3,326,136 | 3,051,576 | 20.04 | % | 30.85 | % | |||||||||||
| Other Liabilities | 64,642 | 46,780 | 35,880 | 38.18 | % | 80.16 | % | |||||||||||
| Stockholders' Equity | ||||||||||||||||||
| Preferred Stock | - | 73,578 | - | n/a | n/a | |||||||||||||
| Common Stock | 209 | 163 | 163 | 28.22 | % | 28.22 | % | |||||||||||
| Additional Paid in Capital | 224,594 | 142,140 | 137,201 | 58.01 | % | 63.70 | % | |||||||||||
| Retained Earnings | 176,012 | 184,387 | 171,337 | -4.54 | % | 2.73 | % | |||||||||||
| Accumulated Other Comprehensive Loss, Net of Tax | (3,255 | ) | (6,745 | ) | (8,699 | ) | -51.74 | % | -62.58 | % | ||||||||
| Total Stockholders' Equity | 397,560 | 393,523 | 300,002 | 1.03 | % | 32.52 | % | |||||||||||
| Total Liabilities and Stockholders' Equity | $ | 4,455,059 | $ | 3,766,439 | $ | 3,387,458 | 18.28 | % | 31.52 | % | ||||||||
| CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | |||||||||||||||||
% Change | % Change | |||||||||||||||||
| June 30, | March 31, | June 30, | Jun 09 vs | June 09 vs. | ||||||||||||||
| 2009 | 2009 | 2008 | Mar. 09 | June 08 | ||||||||||||||
| INTEREST INCOME | ||||||||||||||||||
| Interest on Fed Funds Sold and Short Term Investments | $ | 70 | $ | 198 | $ | 15 | -64.65 | % | 366.67 | % | ||||||||
| Interest and Dividends on Securities | 7,636 | 7,267 | 5,639 | 5.08 | % | 35.41 | % | |||||||||||
| Interest on Loans | 45,100 | 35,946 | 38,657 | 25.47 | % | 16.67 | % | |||||||||||
| Total Interest Income | 52,806 | 43,411 | 44,311 | 21.64 | % | 19.17 | % | |||||||||||
| INTEREST EXPENSE | ||||||||||||||||||
| Interest on Deposits | 8,441 | 8,407 | 9,539 | 0.40 | % | -11.51 | % | |||||||||||
| Interest on Borrowed Funds | 5,265 | 5,015 | 4,929 | 4.99 | % | 6.82 | % | |||||||||||
| Total Interest Expense | 13,706 | 13,422 | 14,468 | 2.12 | % | -5.27 | % | |||||||||||
| Net Interest Income | 39,100 | 29,989 | 29,843 | 30.38 | % | 31.02 | % | |||||||||||
| Less - Provision for Loan Losses | 4,468 | 4,000 | 1,902 | 11.70 | % | 134.91 | % | |||||||||||
| Net Interest Income after Provision for Loan Losses | 34,632 | 25,989 | 27,941 | 33.26 | % | 23.95 | % | |||||||||||
| NON-INTEREST INCOME | ||||||||||||||||||
| Service Charges on Deposit Accounts | 4,258 | 3,648 | 3,963 | 16.72 | % | 7.44 | % | |||||||||||
| Wealth Management | 2,710 | 2,330 | 3,114 | 16.31 | % | -12.97 | % | |||||||||||
| Mortgage Banking Income | 1,996 | 1,156 | 960 | 72.66 | % | 107.92 | % | |||||||||||
| BOLI Income | 683 | 729 | 637 | -6.31 | % | 7.22 | % | |||||||||||
| FHLB Stock | - | - | 244 | n/a | -100.00 | % | ||||||||||||
| Net Gain/(Loss) on Sale of Securities and Derivatives | 3,753 | 1,379 | - | 172.15 | % | n/a | ||||||||||||
| Other-Than-Temporary-Impairment on Securities | (1,653 | ) | - | (1,850 | ) | n/a | -10.65 | % | ||||||||||
| Other Non-Interest /Income | 1,476 | 1,231 | 838 | 19.90 | % | 76.13 | % | |||||||||||
| Total Non-Interest Income | 13,223 | 10,473 | 7,906 | 26.26 | % | 67.25 | % | |||||||||||
| NON-INTEREST EXPENSE | ||||||||||||||||||
| Salaries and Employee Benefits | 17,134 | 14,859 | 14,945 | 15.31 | % | 14.65 | % | |||||||||||
| Occupancy and Equipment Expenses | 4,136 | 3,705 | 3,235 | 11.63 | % | 27.85 | % | |||||||||||
| Data Processing and Facilities Management | 1,604 | 1,416 | 1,421 | 13.28 | % | 12.88 | % | |||||||||||
| Merger & Acquisition Expense | 10,844 | 1,538 | 376 | 605.07 | % | 2784.04 | % | |||||||||||
| FDIC assessment | 3,852 | 536 | 53 | 618.66 | % | 7167.92 | % | |||||||||||
| Other Non-Interest Expense | 8,986 | 6,253 | 8,032 | 43.71 | % | 11.88 | % | |||||||||||
| Total Non-Interest Expense | 46,556 | 28,307 | 28,062 | 64.47 | % | 65.90 | % | |||||||||||
| INCOME BEFORE INCOME TAXES | 1,299 | 8,155 | 7,785 | -84.07 | % | -83.31 | % | |||||||||||
| PROVISION FOR INCOME TAXES | 639 | 1,767 | 1,965 | -63.84 | % | -67.48 | % | |||||||||||
| NET INCOME | $ | 660 | $ | 6,388 | $ | 5,820 | -89.67 | % | -88.66 | % | ||||||||
| PREFERRED STOCK DIVIDEND | $ | 4,525 | $ | 1,173 | $ | - | 285.76 | % | n/a | |||||||||
| NET (LOSS)/INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ | (3,865 | ) | $ | 5,215 | $ | 5,820 | -174.11 | % | -166.41 | % | |||||||
| BASIC EARNINGS PER SHARE | $ | (0.19 | ) | $ | 0.32 | $ | 0.36 | -159.38 | % | -152.78 | % | |||||||
| DILUTED EARNINGS PER SHARE | $ | (0.19 | ) | $ | 0.32 | $ | 0.36 | -159.38 | % | -152.78 | % | |||||||
| BASIC AVERAGE SHARES | 20,360,046 | 16,285,955 | 16,268,009 | 25.02 | % | 25.15 | % | |||||||||||
| DILUTED AVERAGE SHARES | 20,385,609 | 16,303,836 | 16,346,749 | 25.04 | % | 24.71 | % | |||||||||||
PERFORMANCE RATIOS: | ||||||||||||||||||
| Net Interest Margin (FTE) | 3.88 | % | 3.57 | % | 4.01 | % | 8.68 | % | 3.24 | % | ||||||||
| Return on Average Assets | -0.35 | % | 0.56 | % | 0.70 | % | -162.50 | % | -150.00 | % | ||||||||
| Return on Average Common Equity | -3.95 | % | 6.59 | % | 7.67 | % | -159.94 | % | -151.50 | % | ||||||||
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION | ||||||||||||||||||
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP) | $ | (3,865 | ) | $ | 5,215 | $ | 5,820 | -174.11 | % | -166.41 | % | |||||||
| Non-Interest Income Components | ||||||||||||||||||
| (Less)/Add - Net (Gain)/ Loss on Sale of Securities and Derivatives, net of tax | (2,439 | ) | (896 | ) | - | |||||||||||||
| Non-Interest Expense Components | ||||||||||||||||||
| Add - Merger and Acquisition Expenses, net of tax | 8,676 | 1,000 | 244 | |||||||||||||||
| Add - Litigation Reserve, net of tax | - | - | 975 | |||||||||||||||
| Deemed Preferred Stock Dividend | 4,384 | - | - | |||||||||||||||
| NET OPERATING EARNINGS | $ | 6,756 | $ | 5,319 | $ | 7,039 | 27.02 | % | -4.02 | % | ||||||||
| Diluted Earnings Per Share, on an Operating Basis | $ | 0.33 | $ | 0.33 | $ | 0.43 | 0.00 | % | -23.26 | % | ||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
| Six Months | % Change | ||||||||||
| June 30, | June 30, | June 2009 vs. | |||||||||
| 2009 | 2008 | June-08 | |||||||||
| INTEREST INCOME | |||||||||||
| Interest on Fed Funds Sold and Short Term Investments | $ | 268 | $ | 35 | 665.71 | % | |||||
| Interest and Dividends on Securities | 14,902 | 11,169 | 33.42 | % | |||||||
| Interest on Loans | 81,046 | 73,825 | 9.78 | % | |||||||
| Total Interest Income | 96,216 | 85,029 | 13.16 | % | |||||||
| INTEREST EXPENSE | |||||||||||
| Interest on Deposits | 16,848 | 19,854 | -15.14 | % | |||||||
| Interest on Borrowed Funds | 10,280 | 9,928 | 3.55 | % | |||||||
| Total Interest Expense | 27,128 | 29,782 | -8.91 | % | |||||||
| Net Interest Income | 69,088 | 55,247 | 25.05 | % | |||||||
| Less - Provision for Loan Losses | 8,468 | 3,245 | 160.96 | % | |||||||
| Net Interest Income after Provision for Loan Losses | 60,620 | 52,002 | 16.57 | % | |||||||
| NON-INTEREST INCOME | |||||||||||
| Service Charges on Deposit Accounts | 7,905 | 7,598 | 4.04 | % | |||||||
| Wealth Management | 5,040 | 5,790 | -12.95 | % | |||||||
| Mortgage Banking Income | 3,153 | 2,073 | 52.10 | % | |||||||
| BOLI Income | 1,413 | 1,158 | 22.02 | % | |||||||
| FHLB Stock | - | 606 | -100.00 | % | |||||||
| Net Gain/(Loss) on Sale of Securities and Derivatives | 5,133 | (609 | ) | -942.86 | % | ||||||
| Other-Than-Temporary-Impairment on Securities | (1,653 | ) | (1,850 | ) | -10.65 | % | |||||
| Other Non-Interest (Loss)/Income | 2,706 | 1,740 | 55.52 | % | |||||||
| Total Non-Interest Income | 23,697 | 16,506 | 43.57 | % | |||||||
| NON-INTEREST EXPENSE | |||||||||||
| Salaries and Employee Benefits | 31,993 | 29,088 | 9.99 | % | |||||||
| Occupancy and Equipment Expenses | 7,841 | 6,138 | 27.75 | % | |||||||
| Data Processing and Facilities Management | 3,020 | 2,705 | 11.65 | % | |||||||
| Merger & Acquisition Expense | 12,382 | 1,120 | 1005.54 | % | |||||||
| WorldCom Bond Loss Recovery | - | (418 | ) | -100.00 | % | ||||||
| FDIC assessment | 4,388 | 111 | 3853.15 | % | |||||||
| Other Non-Interest Expense | 15,240 | 13,350 | 14.16 | % | |||||||
| Total Non-Interest Expense | 74,864 | 52,094 | 43.71 | % | |||||||
| INCOME BEFORE INCOME TAXES | 9,453 | 16,414 | -42.41 | % | |||||||
| PROVISION FOR INCOME TAXES | 2,406 | 4,286 | -43.86 | % | |||||||
| NET INCOME | $ | 7,047 | $ | 12,128 | -41.89 | % | |||||
| PREFERRED STOCK DIVIDEND | $ | 5,698 | $ | - | n/a | ||||||
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ | 1,349 | $ | 12,128 | -88.88 | % | |||||
| BASIC EARNINGS PER SHARE | $ | 0.07 | $ | 0.80 | -91.25 | % | |||||
| DILUTED EARNINGS PER SHARE | $ | 0.07 | $ | 0.79 | -91.14 | % | |||||
| BASIC AVERAGE SHARES | 18,345,457 | 15,193,327 |
|
| |||||||
| DILUTED AVERAGE SHARES | 18,366,798 | 15,269,941 | |||||||||
PERFORMANCE RATIOS: | |||||||||||
| Net Interest Margin (FTE) | 3.74 | % | 3.94 | % | -5.08 | % | |||||
| Return on Average Assets | 0.07 | % | 0.78 | % | -91.03 | % | |||||
| Return on Average Common Equity | 0.76 | % | 8.73 | % | -91.29 | % | |||||
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION | |||||||||||
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP) | $ | 1,349 | $ | 12,128 | -88.88 | % | |||||
| Non-Interest Income Components | |||||||||||
| (Less)/Add - Net (Gain)/ Loss on Sale of Securities and Derivatives, net of tax | (3,336 | ) | 396 | ||||||||
| Non-Interest Expense Components | |||||||||||
| Add - Merger and Acquisition Expenses, net of tax | 9,675 | 728 | |||||||||
| Add - Litigation Reserve, net of tax | - | 975 | |||||||||
| Less - WorldCom Bond Loss Recovery, net of tax | - | (272 | ) | ||||||||
| Deemed Preferred Stock Dividend | 4,384 | - |
|
| |||||||
| NET OPERATING EARNINGS | $ | 12,072 | $ | 13,955 | -13.49 | % | |||||
| Diluted Earnings Per Share, on an Operating Basis | $ | 0.66 | $ | 0.91 | -27.47 | % | |||||
| 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 | Six Months Ended | ||||||||||||||||||||||||||||
| % Change | % Change | % Change | |||||||||||||||||||||||||||
| June 30, | March 31, | June 30, | June 2009 vs. | June 2009 vs. | June 30, | June 30, | June 2009 vs. | ||||||||||||||||||||||
| 2009 | 2009 | 2008 | March 2009 | June 2008 | 2009 | 2008 | June 2008 | ||||||||||||||||||||||
| Non-Interest Income GAAP | $ | 13,223 | $ | 10,473 | $ | 7,906 | 26.26 | % | 67.25 | % | $ | 23,697 | $ | 16,506 | 43.57 | % | |||||||||||||
| (Less)/Add - Net (Gain)/ Loss on Sale of Securities | (3,753 | ) | (1,379 | ) | - | 172.15 | % | n/a | (5,133 | ) | 609 | -942.86 | % | ||||||||||||||||
| Add - Other-Than-Temporary-Impairment on Securities | 1,653 | - | 1,850 | n/a | -10.65 | % | 1,653 | 1,850 | -10.65 | % | |||||||||||||||||||
| Non-Interest Income as Adjusted | $ | 11,123 | $ | 9,094 | $ | 9,756 | 22.31 | % | 14.01 | % | $ | 20,217 | $ | 18,965 | 6.60 | % | |||||||||||||
| Non-Interest Expense GAAP | $ | 46,556 | $ | 28,307 | $ | 28,062 | 64.47 | % | 65.90 | % | $ | 74,864 | $ | 52,094 | 43.71 | % | |||||||||||||
| Less - Merger & Acquisition Expenses | (10,844 | ) | (1,538 | ) | (376 | ) | 605.07 | % | 2784.04 | % | (12,382 | ) | (1,120 | ) | 1005.54 | % | |||||||||||||
| Less - Litigation Reserve | - | - | (1,500 | ) | n/a | n/a | - | (1,500 | ) | -100.00 | % | ||||||||||||||||||
| Add - WorldCom Bond Loss Recovery | - | - | - | n/a | n/a | - | 418 | -100.00 | % | ||||||||||||||||||||
| Non-Interest Expense as Adjusted | $ | 35,712 | $ | 26,769 | $ | 26,186 | 33.41 | % | 36.38 | % | $ | 62,482 | $ | 49,892 | 25.23 | % | |||||||||||||
ASSET QUALITY | |||||||||||||||||||||||||||||
| For the Period Ending | |||||||||||||||||||||||||||||
| June 30, | March 31, | June 30, | |||||||||||||||||||||||||||
| 2009 | 2009 | 2008 | |||||||||||||||||||||||||||
| (Dollars in Thousands, Except Per Share Data) | |||||||||||||||||||||||||||||
| Nonperforming Loans | |||||||||||||||||||||||||||||
| Commercial & Industrial Loans | $ | 4,808 | $ | 3,884 | $ | 403 | |||||||||||||||||||||||
| Small Business Loans | 1,743 | 1,638 | 935 | ||||||||||||||||||||||||||
| Commercial Real Estate Loans | 12,505 | 10,833 | 2,263 | ||||||||||||||||||||||||||
| Residential Real Estate Loans | 9,865 | 8,521 | 4,460 | ||||||||||||||||||||||||||
| Installment Loans - Home Equity | 1,695 | 2,940 | 1,380 | ||||||||||||||||||||||||||
| Installment Loans - Auto | 718 | 665 | 934 | ||||||||||||||||||||||||||
| Installment Loans - Other | 157 | 479 | 290 | ||||||||||||||||||||||||||
| Total Nonperforming Loans | $ | 31,491 | 28,960 | 10,665 | |||||||||||||||||||||||||
| Non-Accrual Securities | 3,120 | 1,698 | - | ||||||||||||||||||||||||||
| Other Assets in Possession | 270 | 224 | - | ||||||||||||||||||||||||||
| Other Real Estate Owned | 6,102 | 1,764 | 1,393 | ||||||||||||||||||||||||||
| Nonperforming Assets | 40,983 | 32,646 | 12,058 | ||||||||||||||||||||||||||
| Nonperforming Loans/Gross Loans | 0.93 | % | 1.08 | % | 0.41 | % | |||||||||||||||||||||||
| Allowance for Loan Losses/Nonperforming Loans | 127.24 | % | 129.45 | % | 311.59 | % | |||||||||||||||||||||||
| Gross Loans/Total Deposits | 101.60 | % | 100.90 | % | 104.09 | % | |||||||||||||||||||||||
| Allowance for Loan Losses/Total Loans | 1.19 | % | 1.40 | % | 1.29 | % | |||||||||||||||||||||||
| Net charge-offs (quarter-to-date) | $ | 1,882 | $ | 3,560 | $ | 1,280 | |||||||||||||||||||||||
| Net charge-offs to average loans (annualized) | 0.23 | % | 0.53 | % | 0.20 | % | |||||||||||||||||||||||
Financial Ratios | |||||||||||||||||||||||||||||
| Book Value per Common Share | $ | 19.01 | $ | 19.64 | $ | 18.44 | |||||||||||||||||||||||
| Tangible Equity Ratio: | |||||||||||||||||||||||||||||
| Tangible Common Capital/Tangible Assets | 5.86 | % | 5.33 | % | 5.31 | % | |||||||||||||||||||||||
| Tangible Common Capital/Tangible Asset (proforma to include | |||||||||||||||||||||||||||||
| the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP | 6.33 | % | 5.83 | % | 5.75 | % | |||||||||||||||||||||||
| Tangible Common Book Value per Share (proforma to include | |||||||||||||||||||||||||||||
| the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP | $ | 13.11 | $ | 12.81 | $ | 11.53 | |||||||||||||||||||||||
Capital Adequacy | |||||||||||||||||||||||||||||
| Tier one leverage capital ratio (1) | 7.60 | % | 9.77 | % | 7.61 | % | |||||||||||||||||||||||
| (1) Estimated number for June 30, 2009 | |||||||||||||||||||||||||||||
| INDEPENDENT BANK CORP. | ||||||||||||||||||||||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||||||||||||||||||||||
| CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA | Three Months Ended | |||||||||||||||||||||||||||
| (Unaudited - Dollars in Thousands) | June 30, 2009 | March 31, 2009 | June 30, 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 | $ | 86,883 | $ | 70 | 0.32 | % | $ | 121,394 | $ | 198 | 0.65 | % | $ | 754 | $ | 15 | 7.96 | % | ||||||||||
| Securities: | ||||||||||||||||||||||||||||
| Trading Assets | 13,965 | 44 | 1.26 | % | 2,706 | 25 | 3.70 | % | 3,446 | 39 | 4.53 | % | ||||||||||||||||
| Taxable Investment Securities | 632,587 | 7,370 | 4.66 | % | 565,797 | 6,937 | 4.90 | % | 420,204 | 5,126 | 4.88 | % | ||||||||||||||||
| Non-taxable Investment Securities (1) | 20,950 | 342 | 6.53 | % | 30,161 | 469 | 6.22 | % | 41,722 | 730 | 7.00 | % | ||||||||||||||||
| Total Securities: | 667,502 | 7,756 | 4.65 | % | 598,664 | 7,431 | 4.97 | % | 465,372 | 5,895 | 5.07 | % | ||||||||||||||||
| Loans (1) | 3,300,169 | 45,229 | 5.48 | % | 2,667,073 | 36,065 | 5.41 | % | 2,550,066 | 38,768 | 6.08 | % | ||||||||||||||||
| Total Interest-Earning Assets | $ | 4,054,554 | $ | 53,055 | 5.23 | % | $ | 3,387,131 | $ | 43,694 | 5.16 | % | $ | 3,016,192 | $ | 44,678 | 5.93 | % | ||||||||||
| Cash and Due from Banks | 77,263 | 60,079 | 67,974 | |||||||||||||||||||||||||
| Federal Home Loan Bank Stock | 35,065 | 24,603 | 24,603 | |||||||||||||||||||||||||
| Other Assets | 299,108 | 251,307 | 228,552 | |||||||||||||||||||||||||
| Total Assets | $ | 4,465,990 | $ | 3,723,120 | $ | 3,337,321 | ||||||||||||||||||||||
| Interest-bearing Liabilities: | ||||||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||||
| Savings and Interest Checking Accounts | $ | 964,929 | $ | 1,326 | 0.55 | % | $ | 740,020 | $ | 996 | 0.54 | % | $ | 691,150 | $ | 1,493 | 0.86 | % | ||||||||||
| Money Market | 666,232 | 1,713 | 1.03 | % | 518,438 | 1,696 | 1.31 | % | 482,638 | 2,124 | 1.76 | % | ||||||||||||||||
| Time Deposits | 974,449 | 5,402 | 2.22 | % | 831,196 | 5,715 | 2.75 | % | 739,389 | 5,922 | 3.20 | % | ||||||||||||||||
| Total interest-bearing deposits: | $ | 2,605,610 | $ | 8,441 | 1.30 | % | $ | 2,089,654 | $ | 8,407 | 1.61 | % | $ | 1,913,177 | $ | 9,539 | 1.99 | % | ||||||||||
| Borrowings: | ||||||||||||||||||||||||||||
| Federal Home Loan Bank Borrowings | $ | 449,311 | $ | 2,972 | 2.65 | % | $ | 410,126 | $ | 2,675 | 2.61 | % | $ | 330,881 | $ | 2,762 | 3.34 | % | ||||||||||
| Federal Funds Purchased and Assets Sold | ||||||||||||||||||||||||||||
| Under Repurchase Agreement | 173,992 | 812 | 1.87 | % | 172,884 | 856 | 1.98 | % | 144,012 | 1,116 | 3.10 | % | ||||||||||||||||
| Junior Subordinated Debentures | 61,857 | 940 | 6.08 | % | 61,857 | 947 | 6.12 | % | 61,857 | 989 | 6.40 | % | ||||||||||||||||
| Subordinated Debentures | 30,000 | 541 | 7.21 | % | 30,000 | 537 | 7.16 | % | - | - | - | |||||||||||||||||
| Other Borrowings | 2,105 | - | 0.00 | % | 1,772 | - | 0.00 | % | 10,757 | 62 | 2.31 | % | ||||||||||||||||
| Total Borrowings: | 717,265 | 5,265 | 2.94 | % | 676,639 | 5,015 | 2.96 | % | 547,507 | 4,929 | 3.60 | % | ||||||||||||||||
| Total Interest-Bearing Liabilities | $ | 3,322,875 | $ | 13,706 | 1.65 | % | $ | 2,766,293 | $ | 13,422 | 1.94 | % | $ | 2,460,684 | $ | 14,468 | 2.35 | % | ||||||||||
| Demand Deposits | 673,448 | 530,425 | 547,048 | |||||||||||||||||||||||||
| Other Liabilities | 61,582 | 42,405 | 26,114 | |||||||||||||||||||||||||
| Total Liabilities | $ | 4,057,905 | $ | 3,339,123 | $ | 3,033,846 | ||||||||||||||||||||||
| Stockholders' Equity | 408,085 | 383,997 | 303,475 | |||||||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 4,465,990 | $ | 3,723,120 | $ | 3,337,321 | ||||||||||||||||||||||
| Net Interest Income | $ | 39,349 | $ | 30,272 | $ | 30,210 | ||||||||||||||||||||||
| Interest Rate Spread (2) | 3.58 | % | 3.22 | % | 3.58 | % | ||||||||||||||||||||||
| Net Interest Margin (3) | 3.88 | % | 3.57 | % | 4.01 | % | ||||||||||||||||||||||
| Supplemental Information: | ||||||||||||||||||||||||||||
| Total Deposits, including Demand Deposits | $ | 3,279,058 | $ | 8,441 | $ | 2,620,079 | $ | 8,407 | $ | 2,460,225 | $ | 9,539 | ||||||||||||||||
| Cost of Total Deposits | 1.03 | % | 1.28 | % | 1.55 | % | ||||||||||||||||||||||
| Total Funding Liabilities, including Demand Deposits | $ | 3,996,323 | $ | 13,706 | $ | 3,296,718 | $ | 13,422 | $ | 3,007,732 | $ | 14,468 | ||||||||||||||||
| Cost of Total Funding Liabilities | 1.37 | % | 1.63 | % | 1.92 | % | ||||||||||||||||||||||
| (1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent | ||||||||||||||||||||||||||||
| basis is $249, $283, and $367 for the three months ended June 30, 2009, March 31, 2009, and June 30, 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. | ||||||||||||||||||||||||||||
| Six Months Ended | ||||||||||||||||||
| (Unaudited - Dollars in Thousands) | June 30, 2009 | June 30, 2008 | ||||||||||||||||
| Interest | Interest | |||||||||||||||||
| Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | |||||||||||||
| Balance | Paid | Rate | Balance | Paid | Rate | |||||||||||||
| Interest-Earning Assets: | ||||||||||||||||||
| ||||||||||||||||||
| Federal Funds Sold and Short Term Investments | $ | 104,043 | $ | 268 | 0.52 | % | $ | 689 | $ | 35 | 10.16 | % | ||||||
| Securities: | ||||||||||||||||||
| Trading Assets | 8,367 | 69 | 1.65 | % | 3,012 | 66 | 4.38 | % | ||||||||||
| Taxable Investment Securities | 599,376 | 14,307 | 4.77 | % | 412,262 | 10,150 | 4.92 | % | ||||||||||
| Non-taxable Investment Securities (1) | 25,530 | 809 | 6.34 | % | 43,778 | 1,466 | 6.70 | % | ||||||||||
| Total Securities: | 633,273 | 15,185 | 4.80 | % | 459,052 | 11,682 | 5.09 | % | ||||||||||
| Loans (1) | 2,985,370 | 81,294 | 5.45 | % | 2,378,702 | 74,053 | 6.23 | % | ||||||||||
| Total Interest-Earning Assets | $ | 3,722,686 | $ | 96,747 | 5.20 | % | $ | 2,838,443 | $ | 85,770 | 6.04 | % | ||||||
| Cash and Due from Banks | 68,718 | 64,286 | ||||||||||||||||
| Federal Home Loan Bank Stock | 29,863 | 22,033 | ||||||||||||||||
| Other Assets | 275,340 | 199,440 | ||||||||||||||||
| Total Assets | $ | 4,096,607 | $ | 3,124,202 | ||||||||||||||
| Interest-bearing Liabilities: | ||||||||||||||||||
| Deposits: | ||||||||||||||||||
| Savings and Interest Checking Accounts | $ | 853,096 | $ | 2,322 | 0.54 | % | $ | 643,469 | $ | 3,084 | 0.96 | % | ||||||
| Money Market | 592,743 | 3,409 | 1.15 | % | 474,349 | 4,702 | 1.98 | % | ||||||||||
| Time Deposits | 903,218 | 11,117 | 2.46 | % | 673,394 | 12,068 | 3.58 | % | ||||||||||
| Total interest-bearing deposits: | $ | 2,349,057 | $ | 16,848 | 1.43 | % | $ | 1,791,212 | $ | 19,854 | 2.22 | % | ||||||
| Borrowings: | ||||||||||||||||||
| Federal Home Loan Bank Borrowings | $ | 429,827 | $ | 5,647 | 2.63 | % | $ | 315,730 | $ | 5,704 | 3.61 | % | ||||||
| Federal Funds Purchased and Assets Sold | ||||||||||||||||||
| Under Repurchase Agreement | 173,441 | 1,668 | 1.92 | % | 141,644 | 2,270 | 3.21 | % | ||||||||||
| Junior Subordinated Debentures | 61,857 | 1,887 | 6.10 | % | 58,458 | 1,848 | 6.32 | % | ||||||||||
| Subordinated Debentures | 30,000 | 1,078 | 7.19 | % | - | - | n/a | |||||||||||
| Other Borrowings | 1,939 | - | 0.00 | % | 7,597 | 106 | 2.79 | % | ||||||||||
| Total Borrowings: | 697,064 | 10,280 | 2.95 | % | 523,429 | 9,928 | 3.79 | % | ||||||||||
| Total Interest-Bearing Liabilities | $ | 3,046,121 | $ | 27,128 | 1.78 | % | $ | 2,314,641 | $ | 29,782 | 2.57 | % | ||||||
| Demand Deposits | 602,331 | 511,033 | ||||||||||||||||
| Other Liabilities | 52,048 | 20,793 | ||||||||||||||||
| Total Liabilities | $ | 3,700,500 | $ | 2,846,467 | ||||||||||||||
| Stockholders' Equity | 396,107 | 277,735 | ||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 4,096,607 | $ | 3,124,202 | ||||||||||||||
| Net Interest Income | $ | 69,619 | $ | 55,988 | ||||||||||||||
| Interest Rate Spread (2) | 3.42 | % | 3.47 | % | ||||||||||||||
| Net Interest Margin (3) | 3.74 | % | 3.94 | % | ||||||||||||||
| Supplemental Information: | ||||||||||||||||||
| Total Deposits, including Demand Deposits | $ | 2,951,388 | $ | 16,848 | $ | 2,302,245 | $ | 19,854 | ||||||||||
| Cost of Total Deposits | 1.14 | % | 1.72 | % | ||||||||||||||
| Total Funding Liabilities, including Demand Deposits | $ | 3,648,452 | $ | 27,128 | $ | 2,825,674 | $ | 29,782 | ||||||||||
| Cost of Total Funding Liabilities | 1.49 | % | 2.11 | % | ||||||||||||||
| (1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent | ||||||||||||||||||
| basis is $531 and $741 for the six months ended June 30, 2009, and June 30, 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. | ||||||||||||||||||
CONTACT:
Independent Bank Corp.
Chris Oddleifson, 781-982-6660
President and
Chief Executive Officer
or
Denis K. Sheahan, 781-982-6341
Chief Financial Officer
