Independent Bank 8K Reports Third Quarter Net Income of $6.8 Million | INDB 22 Oct 09

Exhibit 99.1

Independent Bank Corp. Reports Third Quarter Net Income of $6.8 Million

Solid Commercial Loan Growth and Expanded Net Interest Margin Drive Performance

ROCKLAND, Mass.--(BUSINESS WIRE)--October 22, 2009--Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced net income of $6.8 million for the third quarter of 2009. This compares favorably with net income of $660,000 for the second quarter of 2009 in which the Company had large merger and acquisition expenses associated with the Benjamin Franklin Bancorp. Inc acquisition and a special FDIC deposit insurance premium fee. The strong increase in third quarter net income was reduced by other-than-temporary securities impairment charges on certain pooled trust preferred securities amounting to $5.1 million pre-tax, or $0.16 per diluted share, recorded in the current period.

On a diluted earnings per share basis, the Company reported earnings of $0.33 for the quarter as compared to a loss of ($0.19) for the previous quarter period. The Company’s repayment of the United States Treasury Department’s Capital Purchase Program 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.

Christopher Oddleifson, President and Chief Executive Officer, stated, “Rockland Trust had an outstanding third quarter despite very difficult economic conditions. While many financial services companies have considerably curtailed their lending activity, our disciplined commercial and home equity lending continues to drive strong growth for the Company. Our solid capital foundation continues to allow us to invest in the businesses and communities in which we operate. I’m also happy to report that we have fully integrated the former Benjamin Franklin franchise, and are looking forward to further increasing business with those customers in this new geographic territory for Rockland Trust.”

BALANCE SHEET

Total assets decreased by $21.1 million, or (0.5%), to $4.4 billion at September 30, 2009 as compared to June 30, 2009.

Total loans were $3.4 billion at September 30, 2009, an increase of $34.4 million, or 1.0% from the prior quarter. The Company continued to generate solid growth in the commercial and home equity loan portfolios with annualized growth of 11.7% and 7.7%, respectively. This was offset by a decline in the residential real estate and other consumer lending categories.

Total deposits decreased by $44.0 million, or (1.3%), during the quarter ending September 30, 2009, primarily due to decreases in municipal deposits and non-core time deposits. The Company continued its focus on core deposits, which represented 71.4% of total deposits at September 30, 2009.

Stockholders’ equity at September 30, 2009 totaled $406.6 million as compared to $397.6 million at June 30, 2009. The Tier 1 leverage capital ratio at September 30, 2009 was 7.66%, maintaining the Company’s well-capitalized position.

NET INTEREST INCOME

Comparing the quarter ended September 30, 2009 to the quarter ended June 30, 2009, net interest income increased $1.8 million, or 4.6%, attributable to an expanded net interest margin. The net interest margin for the period was 4.05% compared to 3.88% in the prior period.

NON-INTEREST INCOME

The Company recorded non-interest income of $4.5 million during the third quarter of 2009, a decrease of $8.8 million when compared to the quarter ended June 30, 2009. The change in non-interest income is composed of the following:

Service charges on deposit accounts increased by $355,000, or 8.3%.
Wealth management revenue decreased by $432,000, or (15.9%), as second quarter revenue included a seasonal increase related to tax preparation services. Assets under management in the wealth management division were $1.2 billion at September 30, 2009.
Mortgage banking income decreased by $1.6 million, or (78.7%), due to a decline in mortgage originations and a charge to the servicing asset, reflecting refinancing activity. The balance of the mortgage servicing asset was $2.2 million and $2.7 million at September 30, 2009 and June 30, 2009, respectively, and loans serviced amounted to $366.6 million and $380.9 million, respectively.
During the third quarter of 2009, there were no gains or losses on the sale of securities or derivatives. During the second quarter of 2009, the Company recorded a $3.8 million gain, associated with the unwinding of certain borrowings and their associated hedge positions as a result of strong balance sheet liquidity.
The Company deemed certain pooled trust preferred securities and one private mortgage-backed security to be other-than-temporarily impaired (“OTTI”) during the third quarter. The Company recorded total credit related impairment charges through earnings of $5.1 million and $1.7 million, pre-tax, for the quarters ending September 30, 2009 and June 30, 2009, respectively. The table below shows the remaining book value of pooled and single issuer trust preferred securities and private mortgage-backed securities as of September 30, 2009:



											Total Credit
	Amortized		Unrealized			Non-Credit			Fair		Related
As of September 30, 2009	Cost*		Loss			OTTI			Value		Impairment
	(Dollars in thousands)
Pooled Trust Preferred Securities
A Tranche	$	2,844		($1,171	)	$	-		$	1,673	$	-
B Tranche		1,887		(1,231	)		-			656		-
C Tranche		6,133		-			(5,656	)		477		(3,261	)
D Tranche		-		-			-			-		(4,471	)
Total Pooled Trust Preferred Securities		10,864		(2,402	)		(5,656	)		2,806		(7,732	)

Single Issuer Trust Preferred Securities - AFS		5,000		(1,858	)		-			3,142		-

Single Issuer Trust Preferred Securities - HTM		9,780		(806	)		-			8,974		-

Private Mortgage-Backed Securities		16,593		(811	)		(908	)		14,874		(298	)

	$	42,237	$	(5,877	)	$	(6,564	)	$	29,795	$	(8,030	)

	*Amortized cost reflects all credit related impairment through September 30, 2009.

Other non-interest income increased by $102,000 or 6.9%.

NON-INTEREST EXPENSE

The Company recorded non-interest expense of $32.3 million in the third quarter of 2009, a decrease of $14.3 million, or (30.6%), when compared to the quarter ended June 30, 2009. Significant changes of non-interest expense include the following:

Salaries and employee benefits increased by $593,000, or 3.5%, primarily attributable to annual salary increases and increased medical and pension expense.
Occupancy and equipment expense decreased by $151,000, or (3.7%).
The Company recorded merger and acquisition expenses associated with the Benjamin Franklin Bancorp. Inc. acquisition of $41,000 and $10.8 million for the quarters ended September 30, 2009 and June 30, 2009, respectively.
FDIC deposit insurance fees decreased by $2.6 million, as the Company recorded a $2.1 million special assessment imposed to replenish the Deposit Insurance Fund during the second quarter of 2009.
Other non-interest expense decreased by $1.3 million, or (14.3%), which is primarily attributable to the timing of advertising campaigns and a reduction in other losses and charge-offs.

The Company reported a return on average assets and a return on average common equity in the third quarter of 2009 of 0.62% and 6.73%, respectively, as compared to (0.35%) and (3.95%) for the quarter ended June 30, 2009.

ASSET QUALITY

The allowance for loan losses increased to $41.4 million at September 30, 2009 as compared to $40.1 million at June 30, 2009. Nonperforming loans totaled $36.9 million, or 1.09% of total loans at September 30, 2009, as compared to $31.5 million, or 0.94% of total loans at June 30, 2009. The increase in non-performing loans was driven by the commercial real estate category which increased $6.0 million from prior quarter and was primarily due to one relationship. The Company’s allowance for loan losses as a percentage of loans was 1.22% and 1.19% at September 30, 2009 and June 30, 2009, respectively. These ratios are inclusive of loans acquired at fair value.

The provision for loan losses was $4.4 million and $4.5 million for the quarters ended September 30, 2009 and June 30, 2009, respectively. Net charge-offs were $3.2 million and $1.9 million for the quarters ending September 30, 2009 and June 30, 2009, respectively.

Christopher Oddleifson and Denis K. Sheahan, Chief Financial Officer, of Independent Bank Corp. and Rockland Trust Company, will host a conference call to discuss third quarter earnings at 10:00 a.m. Eastern Time on Friday, October 23, 2009. Internet access to the call is available on the Company’s website at 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: 434060. The web cast replay will be available until October 23, 2010 and the telephone replay will be available until November 6, 2009.

Independent Bank Corp., which has Rockland Trust Company as a wholly-owned bank subsidiary, has more than $4.4 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”). Operating earnings, which is a non-GAAP financial measure, excludes gain or loss due to items that management does not believe are related to its core banking business, such as gains or losses on the sales of securities, merger and acquisition expenses, and other items. The Company’s management uses operating earnings to measure the strength of the Company’s core banking business and to identify trends that may to some extent be obscured by gains or losses which management deems not to be core to the Company’s operations. The Company has included information on operating earnings because management believes that investors may find it useful to have access to the same analytical tool used by management and may also find that it facilitates the comparison of the Company to other companies in the financial services industry. Non-GAAP operating earnings should not be viewed as a substitute for operating results determined in accordance with GAAP. An item which management deems to be non-core and excludes when computing non-GAAP operating earnings can be of substantial importance to the Company’s results for any particular quarter or year. The Company’s non-GAAP operating earnings are not 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	September 30,			June 30,			September 30,			Sept. 2009 vs.			Sept. 2009 vs.
	2009			2009			2008			June 2009			Sept. 2008

Assets
Cash and Due From Banks	$	65,514		$	75,905		$	92,752			-13.69	%		-29.37	%
Fed Funds Sold and Short Term Investments		-			6,159			100			-100.00	%		-100.00	%
Securities
Trading Assets		23,090			22,926			3,048			0.72	%		657.55	%
Securities Available for Sale		546,125			581,241			499,879			-6.04	%		9.25	%
Securities Held to Maturity		83,063			70,241			33,354			18.25	%		149.03	%
Total Securities		652,278			674,408			536,281			-3.28	%		21.63	%
Loans Held for Sale	14,160			24,866			5,511			-43.05		%	156.94		%
Loans
Commercial and Industrial		371,092			364,570			250,469			1.79	%		48.16	%
Commercial Real Estate		1,546,206			1,482,321			1,092,811			4.31	%		41.49	%
Commercial Construction		201,196			206,569			150,615			-2.60	%		33.58	%
Small Business		84,135			86,378			85,120			-2.60	%		-1.16	%
Total Commercial		2,202,629			2,139,838			1,579,015			2.93	%		39.49	%
Residential Real Estate		576,575			599,166			420,809			-3.77	%		37.02	%
Residential Construction		14,783			15,323			12,868			-3.52	%		14.88	%
Total Residential		591,358			614,489			433,677			-3.76	%		36.36	%
Consumer - Home Equity		467,213			458,435			391,416			1.91	%		19.36	%
Consumer - Auto		92,093			105,064			134,866			-12.35	%		-31.72	%
Consumer - Other		34,246			35,314			41,073			-3.02	%		-16.62	%
Total Consumer		593,552			598,813			567,355			-0.88	%		4.62	%
Total Loans		3,387,539			3,353,140			2,580,047			1.03	%		31.30	%
Less - Allowance for Loan Losses		(41,357	)		(40,068	)		(33,287	)		3.22	%		24.24	%
Net Loans		3,346,182			3,313,072			2,546,760			1.00	%		31.39	%
Federal Home Loan Bank Stock		36,357			36,357			24,603			0.00	%		47.77	%
Bank Premises and Equipment		41,963			42,145			35,246			-0.43	%		19.06	%
Goodwill and Core Deposit Intangible		144,152			144,865			126,412			-0.49	%		14.03	%
Other Assets		133,397			137,282			109,570			-2.83	%		21.75	%
Total Assets	$	4,434,003		$	4,455,059		$	3,477,235			-0.47	%		27.52	%

Liabilities and Stockholders' Equity
Deposits
Demand Deposits	$	702,159		$	699,173		$	573,904			0.43	%		22.35	%
Savings and Interest Checking Accounts		965,694			987,202			711,862			-2.18	%		35.66	%
Money Market		675,269			667,665			464,983			1.14	%		45.22	%
Time Certificates of Deposit		937,854			970,903			787,282			-3.40	%		19.13	%
Total Deposits		3,280,976			3,324,943			2,538,031			-1.32	%		29.27	%
Borrowings
Federal Home Loan Bank Borrowings		396,218			392,968			336,792			0.83	%		17.64	%
Fed Funds Purchased and Assets Sold
Under Repurchase Agreements		188,707			179,317			166,417			5.24	%		13.39	%
Junior Subordinated Debentures		61,857			61,857			61,857			0.00	%		0.00	%
Subordinated Debentures		30,000			30,000			30,000			0.00	%		0.00	%
Other Borrowings		2,418			3,772			2,103			-35.90	%		14.98	%
Total Borrowings		679,200			667,914			597,169			1.69	%		13.74	%
Total Deposits and Borrowings		3,960,176			3,992,857			3,135,200			-0.82	%		26.31	%
Other Liabilities		67,252			64,642			37,295			4.04	%		80.32	%
Stockholders' Equity
Common Stock		209			209			163			0.00	%		28.22	%
Additional Paid in Capital		224,848			224,594			137,347			0.11	%		63.71	%
Retained Earnings		179,245			176,012			177,338			1.84	%		1.08	%
Accumulated Other Comprehensive Income/(Loss), Net of Tax		2,273			(3,255	)		(10,108	)		-169.83	%		-122.49	%
Total Stockholders' Equity		406,575			397,560			304,740			2.27	%		33.42	%
Total Liabilities and Stockholders' Equity	$	4,434,003		$	4,455,059		$	3,477,235			-0.47	%		27.52	%




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



CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended
										% Change			% Change
	September 30,			June 30,			September 30,			Sept. 2009 vs.			Sept. 2009 vs.
	2009			2009			2008			June 2009			Sept. 2008

INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	4		$	70		$	62			-94.29	%		-93.55	%
Interest and Dividends on Securities		7,644			7,636			5,822			0.10	%		31.30	%
Interest on Loans		45,773			44,938			39,143			1.86	%		16.94	%
Interest on Loans Held for Sale		169			162			58			4.32	%		191.38	%
Total Interest Income		53,590			52,806			45,085			1.48	%		18.86	%
INTEREST EXPENSE
Interest on Deposits		7,446			8,441			9,078			-11.79	%		-17.98	%
Interest on Borrowed Funds		5,236			5,265			5,079			-0.55	%		3.09	%
Total Interest Expense		12,682			13,706			14,157			-7.47	%		-10.42	%
Net Interest Income		40,908			39,100			30,928			4.62	%		32.27	%
Less - Provision for Loan Losses		4,443			4,468			2,068			-0.56	%		114.85	%
Net Interest Income after Provision for Loan Losses		36,465			34,632			28,860			5.29	%		26.35	%
NON-INTEREST INCOME
Service Charges on Deposit Accounts		4,613			4,258			4,083			8.34	%		12.98	%
Wealth Management		2,278			2,710			2,764			-15.94	%		-17.58	%
Mortgage Banking Income		425			1,996			501			-78.71	%		-15.17	%
BOLI Income		713			683			659			4.39	%		8.19	%
Net Gain/(Loss) on Sale of Securities		-			(25	)		-			-100.00	%		n/a
Gain Resulting From early Termination of Hedging Relationship		-			3,778			-			-100.00	%		n/a
Gross Loss on Write-Down of certain Investments to Fair Value		(5,108	)		(2,174	)		(720	)		134.96	%		609.44	%
Less: Non-Credit Related Other-Than-Temporary Impairment		(33	)		521			-			-106.33	%		n/a
Net Loss on Write-Down of Certain Investments to Fair Value		(5,141	)		(1,653	)		(720	)	211.01		%	614.03		%
Other Non-Interest /Income		1,578			1,476			1,432			6.91	%		10.20	%
Total Non-Interest Income		4,466			13,223			8,719			-66.23	%		-48.78	%
NON-INTEREST EXPENSE
Salaries and Employee Benefits		17,727			17,134			14,719			3.46	%		20.44	%
Occupancy and Equipment Expenses		3,985			4,136			3,200			-3.65	%		24.53	%
Data Processing and Facilities Management		1,580			1,604			1,465			-1.50	%		7.85	%
Merger & Acquisition Expense		41			10,844			-			-99.62	%		n/a
FDIC assessment		1,267			3,852			719			-67.11	%		76.22	%
Other Non-Interest Expense		7,704			8,986			5,356			-14.27	%		43.84	%
Total Non-Interest Expense		32,304			46,556			25,459			-30.61	%		26.89	%
INCOME BEFORE INCOME TAXES		8,627			1,299			12,120			564.13	%		-28.82	%
PROVISION FOR INCOME TAXES		1,786			639			3,305			179.50	%		-45.96	%
NET INCOME	$	6,841		$	660		$	8,815			936.52	%		-22.39	%

PREFERRED STOCK DIVIDEND	$	-		$	4,525		$	-			-100.00	%		n/a

NET (LOSS)/INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	6,841		$	(3,865	)	$	8,815			-277.00	%		-22.39	%

BASIC EARNINGS PER SHARE	$	0.33		$	(0.19	)	$	0.54			-273.68	%		-38.89	%
DILUTED EARNINGS PER SHARE	$	0.33		$	(0.19	)	$	0.54			-273.68	%		-38.89	%
BASIC AVERAGE SHARES		20,921,635			20,360,046			16,275,442
DILUTED AVERAGE SHARES		20,969,889			20,385,609			16,338,180

PERFORMANCE RATIOS:
Net Interest Margin (FTE)		4.05	%		3.88	%		4.09	%		4.38	%		-1.00	%
Return on Average Assets		0.62	%		-0.35	%		1.04	%		280.00	%		-39.42	%
Return on Average Common Equity		6.73	%		-3.95	%		11.57	%		273.67	%		-40.79	%

RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP)	$	6,841		$	(3,865	)	$	8,815			-277.00	%		-22.39	%
Non-Interest Income Components
(Less)/Add - Net (Gain)/ Loss on Sale of Securities, net of tax		-			16			-
Less - Gain Resulting From early Termination of Hedging Relationship		-			(2,456	)		-
Non-Interest Expense Components
Add - Merger and Acquisition Expenses, net of tax		27			8,676			-
Add - Litigation Reserve, net of tax		-			-			(488	)
Deemed Preferred Stock Dividend		-			4,384			-
NET OPERATING EARNINGS	$	6,868		$	6,756		$	8,327			1.66	%		-17.52	%


Diluted Earnings Per Share, on an Operating Basis	$	0.33		$	0.33		$	0.51			0.00	%		-35.29	%


CONSOLIDATED STATEMENTS OF INCOME
	Nine Months						% Change
	September 30,			September 30,			Sept. 2009 vs.
	2009			2008			Sept. 2008

INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	272		$	96			183.33	%
Interest and Dividends on Securities		22,546			16,990			32.70	%
Interest on Loans		126,491			112,732			12.21	%
Interest on Loans Held for Sale		497			293			69.62	%
Total Interest Income		149,806			130,111			15.14	%
INTEREST EXPENSE
Interest on Deposits		24,293			28,933			-16.04	%
Interest on Borrowed Funds		15,517			15,006			3.41	%
Total Interest Expense		39,810			43,939			-9.40	%
Net Interest Income		109,996			86,172			27.65	%
Less - Provision for Loan Losses		12,911			5,312			143.05	%
Net Interest Income after Provision for Loan Losses		97,085			80,860			20.07	%
NON-INTEREST INCOME
Service Charges on Deposit Accounts		12,518			11,681			7.17	%
Wealth Management		7,318			8,554			-14.45	%
Mortgage Banking Income		3,578			2,574			39.01	%
BOLI Income		2,126			1,816			17.07	%
Net Gain/(Loss) on Sale of Securities and Derivatives		1,355			(609	)		-322.50	%
Gain Resulting From early Termination of Hedging Relationship		3,778			-			n/a
Gross Loss on Write-Down of certain Investments to Fair Value		(7,384	)		(2,570	)		187.32	%
Less: Non-Credit Related Other-Than-Temporary Impairment		590			-			n/a
Net Loss on Write-Down of Certain Investments to Fair Value		(6,794	)		(2,570	)		164.36	%
Other Non-Interest (Loss)/Income		4,283			3,779			13.34	%
Total Non-Interest Income		28,162			25,225			11.64	%
NON-INTEREST EXPENSE
Salaries and Employee Benefits		49,720			43,806			13.50	%
Occupancy and Equipment Expenses		11,826			9,338			26.64	%
Data Processing and Facilities Management		4,600			4,170			10.31	%
Merger & Acquisition Expense		12,423			1,120			1009.20	%
WorldCom Bond Loss Recovery		-			(418	)		-100.00	%
FDIC assessment		5,655			830			581.33	%
Other Non-Interest Expense		22,943			18,706			22.65	%
Total Non-Interest Expense		107,167			77,552			38.19	%
INCOME BEFORE INCOME TAXES		18,080			28,533			-36.63	%
PROVISION FOR INCOME TAXES		4,192			7,590			-44.77	%
NET INCOME	$	13,888		$	20,943			-33.69	%

PREFERRED STOCK DIVIDEND	$	5,698		$	-			-

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	8,190		$	20,943			-60.89	%

BASIC EARNINGS PER SHARE	$	0.43		$	1.35			-68.15	%
DILUTED EARNINGS PER SHARE	$	0.43		$	1.34			-67.91	%
BASIC AVERAGE SHARES		19,210,431			15,518,540
DILUTED AVERAGE SHARES		19,236,612			15,591,167

PERFORMANCE RATIOS:
Net Interest Margin (FTE)		3.85	%		4.00	%		-3.75	%
Return on Average Assets		0.26	%		0.87	%		-70.11	%
Return on Average Common Equity		2.73	%		9.74	%		-71.56	%

RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP)	$	8,190		$	20,943			-60.89	%
Non-Interest Income Components
(Less)/Add - Net (Gain)/ Loss on Sale of Securities, net of tax		(880	)		396
Less - Gain Resulting From early Termination of Hedging Relationship		(2,456	)		-
Non-Interest Expense Components
Add - Merger and Acquisition Expenses, net of tax		9,706			728
Add - Litigation Reserve, net of tax		-			488
Less - WorldCom Bond Loss Recovery, net of tax		-			(272	)
Deemed Preferred Stock Dividend		4,384			-
NET OPERATING EARNINGS	$	18,944		$	22,283			-14.98	%


Diluted Earnings Per Share, on an Operating Basis	$	0.98		$	1.43			-31.47	%


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															Nine Months Ended
										% Change			% Change									% Change
	September 30,			June 30,			September 30,			Sept. 2009 vs.			Sept. 2009 vs.			September 30,			September 30,			Sept. 2009 vs.
	2009			2009			2008			June 2009			Sept. 2008			2009			2008			Sept. 2008

Non-Interest Income GAAP	$	4,466		$	13,223		$	8,719			-66.23	%		-48.78	%	$	28,162		$	25,225			11.64	%
(Less)/Add - Net (Gain)/ Loss on Sale of Securities		-			25			-			-100.00	%		n/a			(1,355	)		609			-322.50	%
(Less) Gain Resulting From early Termination of Hedging Relationship		-			(3,778	)		-			-100.00	%		n/a			(3,778	)		-			n/a
Add - Other-Than-Temporary-Impairment on Securities		5,141			1,653			720			211.01	%		614.03	%		6,794			2,570			164.36	%
Non-Interest Income as Adjusted	$	9,607		$	11,123		$	9,439			-13.63	%		1.78	%	$	29,823		$	28,404			5.00	%

Non-Interest Expense GAAP	$	32,304		$	46,556		$	25,459			-30.61	%		26.89	%	$	107,167		$	77,552			38.19	%
Less - Merger & Acquisition Expenses		(41	)		(10,844	)		-			-99.62	%		n/a			(12,423	)		(1,120	)		1009.20	%
Less/Add - Litigation Reserve		-			-			(750	)		n/a			n/a			-			750			-100.00	%
Add - WorldCom Bond Loss Recovery		-			-			-			n/a			n/a			-			418			-100.00	%
Non-Interest Expense as Adjusted	$	32,263		$	35,712		$	24,709			-9.66	%		30.57	%	$	94,744		$	77,600			22.09	%


ASSET QUALITY
	For the Period Ending
	September 30,			June 30,			September 30,
	2009			2009			2008

	(Dollars in Thousands, Except Per Share Data)
Nonperforming Loans
Commercial & Industrial Loans	$	3,744		$	4,808		$	1,481
Small Business Loans		969			1,743			773
Commercial Real Estate Loans		18,511			12,505			5,478
Residential Real Estate Loans		11,625			9,865			6,725
Installment Loans - Home Equity		1,237			1,695			1,106
Installment Loans - Auto		504			718			770
Installment Loans - Other		347			157			311
Total Nonperforming Loans	$	36,937		$	31,491			16,644
Non-Accrual Securities		1,134			1,844			-
Other Assets in Possession		255			270			-
Other Real Estate Owned		6,491			6,102			1,239
Nonperforming Assets		44,817			39,707			17,883

Nonperforming Loans/Gross Loans		1.09	%		0.94	%		0.65	%
Allowance for Loan Losses/Nonperforming Loans		111.97	%		127.24	%		199.99	%
Gross Loans/Total Deposits		103.25	%		100.85	%		101.66	%
Allowance for Loan Losses/Total Loans		1.22	%		1.19	%		1.29	%

Net charge-offs (quarter-to-date)	$	3,154		$	1,882		$	2,012
Net charge-offs to average loans (annualized)		0.37	%		0.23	%		0.31	%

Financial Ratios
Book Value per Common Share	$	19.43		$	19.01		$	18.72
Tangible Equity Ratio:
Tangible Common Capital/Tangible Assets		6.12	%		5.86	%		5.32	%
Tangible Common Capital/Tangible Asset (proforma to include the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP		6.58	%		6.33	%		5.76	%
Tangible Common Book Value per Share (proforma to include the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP	$	13.56		$	13.11		$	11.85

Capital Adequacy
Tier one leverage capital ratio (1)		7.66	%		7.60	%		7.69	%
(1) Estimated number for September 30, 2009

INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA	Three Months Ended
(Unaudited - Dollars in Thousands)	September 30, 2009									June 30, 2009									September 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	$	4,060		$	4			0.39	%	$	86,883		$	70			0.32	%	$	2,162		$	62		11.47	%
Securities:
Trading Assets		22,941			109			1.90	%		13,965			44			1.26	%		3,179			30		3.77	%
Taxable Investment Securities		620,183			7,317			4.72	%		632,587			7,370			4.66	%		430,342			5,426		5.04	%
Non-taxable Investment Securities (1)		20,373			336			6.60	%		20,950			342			6.53	%		38,854			563		5.80	%
Total Securities:		663,497			7,762			4.68	%		667,502			7,756			4.65	%		472,375			6,019		5.10	%
Loans (1)		3,375,581			45,890			5.44	%		3,284,763			45,067			5.49	%		2,573,808			39,262		6.10	%
Loans Held for Sale		15,831			169			4.27	%		15,406			162			4.21	%		4,565			58		5.08	%
Total Interest-Earning Assets	$	4,058,969		$	53,825			5.30	%	$	4,054,554		$	53,055			5.23	%	$	3,052,910		$	45,401		5.95	%
Cash and Due from Banks		67,156									77,263									69,587
Federal Home Loan Bank Stock		36,357									35,065									24,603
Other Assets		280,147									299,108									233,978
Total Assets	$	4,442,629								$	4,465,990								$	3,381,078
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	969,676		$	1,246			0.51	%	$	964,929		$	1,326			0.55	%	$	711,818		$	1,578		0.89	%
Money Market		677,851			1,597			0.94	%		666,232			1,713			1.03	%		473,685			2,203		1.86	%
Time Deposits		948,596			4,603			1.94	%		974,449			5,402			2.22	%		754,969			5,297		2.81	%
Total interest-bearing deposits:	$	2,596,123		$	7,446			1.15	%	$	2,605,610		$	8,441			1.30	%	$	1,940,472		$	9,078		1.87	%
Borrowings:
Federal Home Loan Bank Borrowings	$	395,878		$	2,901			2.93	%	$	449,311		$	2,972			2.65	%	$	299,631		$	2,781		3.71	%
Federal Funds Purchased and Assets Sold
Under Repurchase Agreement		184,181			857			1.86	%		173,992			812			1.87	%		165,852			1,249		3.01	%
Junior Subordinated Debentures		61,857			931			6.02	%		61,857			940			6.08	%		61,857			842		5.44	%
Subordinated Debentures		30,000			547			7.29	%		30,000			541			7.21	%		11,413			204		7.15	%
Other Borrowings		2,108			-			0.00	%		2,105			-			0.00	%		834			3		1.44	%
Total Borrowings:		674,024			5,236			3.11	%		717,265			5,265			2.94	%		539,587			5,079		3.77	%
Total Interest-Bearing Liabilities	$	3,270,147		$	12,682			1.55	%	$	3,322,875		$	13,706			1.65	%	$	2,480,059		$	14,157		2.28	%
Demand Deposits		702,071									673,448									561,542

Other Liabilities		63,821									61,582									34,754
Total Liabilities	$	4,036,039								$	4,057,905								$	3,076,355
Stockholders' Equity		406,590									408,085									304,723
Total Liabilities and Stockholders' Equity	$	4,442,629								$	4,465,990								$	3,381,078

Net Interest Income				$	41,143								$	39,349								$	31,244

Interest Rate Spread (2)								3.75	%								3.58	%							3.67	%

Net Interest Margin (3)								4.05	%								3.88	%							4.09	%

Supplemental Information:
Total Deposits, including Demand Deposits	$	3,298,194		$	7,446					$	3,279,058		$	8,441					$	2,502,014		$	9,078
Cost of Total Deposits								0.90	%								1.03	%							1.45	%
Total Funding Liabilities, including Demand Deposits	$	3,972,218		$	12,682					$	3,996,323		$	13,706					$	3,041,601		$	14,157
Cost of Total Funding Liabilities								1.28	%								1.37	%							1.86	%


(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $235, $249, and $316 for the three months ended September 30, 2009, June 30, 2009, and September 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.



	Nine Months Ended
(Unaudited - Dollars in Thousands)	September 30, 2009									September 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	$	70,349		$	272			0.52	%	$	1,184		$	96			10.81	%
Securities:
Trading Assets		13,278			178			1.79	%		3,068			95			4.13	%
Taxable Investment Securities		606,388			21,624			4.75	%		418,332			15,576			4.96	%
Non-taxable Investment Securities (1)		23,792			1,145			6.42	%		42,124			2,029			6.42	%
Total Securities:		643,458			22,947			4.75	%		463,524			17,700			5.09	%
Loans (1)		3,106,752			126,856			5.44	%		2,438,462			113,078			6.18	%
Loans Held for Sale		15,453			497			4.29	%		7,283			293			5.36	%
Total Interest-Earning Assets	$	3,836,012		$	150,572			5.23	%	$	2,910,453		$	131,167			6.01	%
Cash and Due from Banks		68,192									66,066
Federal Home Loan Bank Stock		32,051									22,896
Other Assets		276,960									211,037
Total Assets	$	4,213,215								$	3,210,452
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	892,383		$	3,567			0.53	%	$	677,470		$	4,740			0.93	%
Money Market		621,424			5,006			1.07	%		463,074			6,827			1.97	%
Time Deposits		918,510			15,720			2.28	%		700,784			17,366			3.30	%
Total interest-bearing deposits:	$	2,432,317		$	24,293			1.33	%	$	1,841,328		$	28,933			2.10	%
Borrowings:
Federal Home Loan Bank Borrowings	$	418,386		$	8,548			2.72	%	$	313,390		$	8,743			3.72	%
Federal Funds Purchased and Assets Sold
Under Repurchase Agreement		177,061			2,525			1.90	%		149,772			3,519			3.13	%
Junior Subordinated Debentures		61,857			2,819			6.08	%		59,599			2,483			5.55	%
Subordinated Debentures		30,000			1,625			7.22	%		3,832			204			7.10	%
Other Borrowings		1,996			-			0.00	%		2,262			57			3.36	%
Total Borrowings:		689,300			15,517			3.00	%		528,855			15,006			3.78	%
Total Interest-Bearing Liabilities	$	3,121,617		$	39,810			1.70	%	$	2,370,183		$	43,939			2.47	%
Demand Deposits		635,943									527,993

Other Liabilities		56,015									25,480
Total Liabilities	$	3,813,575								$	2,923,656
Stockholders' Equity		399,640									286,796
Total Liabilities and Stockholders' Equity	$	4,213,215								$	3,210,452

Net Interest Income				$	110,762								$	87,228

Interest Rate Spread (2)								3.53	%								3.54	%

Net Interest Margin (3)								3.85	%								4.00	%

Supplemental Information:
Total Deposits, including Demand Deposits	$	3,068,260		$	24,293					$	2,369,321		$	28,933
Cost of Total Deposits								1.06	%								1.63	%
Total Funding Liabilities, including Demand Deposits	$	3,757,560		$	39,810					$	2,898,176		$	43,939
Cost of Total Funding Liabilities								1.41	%								2.02	%


(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $766 and $1,056 for the nine months ended September 30, 2009, and September 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

Independent Bank (INDB) 8-KIndependent Bank Corp. Reports Third Quarter Net Income of $6.8 Million