Independent Bank 8K Reports Fourth Quarter Net Income of $9.1 Million | INDB 21 Jan 10

Exhibit 99.1

Independent Bank Corp. Reports Fourth Quarter Net Income of $9.1 Million

Solid Commercial Loan Growth, Strong Net Interest Margin and Stable Credit

Quality Drive Performance

ROCKLAND, Mass.--(BUSINESS WIRE)--January 21, 2010--Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced net income of $9.1 million for the fourth quarter of 2009. This represents an increase of 33.0% from the $6.8 million recorded in the third quarter of 2009. On a diluted earnings per share basis, the Company reported earnings of $0.43 for the quarter as compared to $0.33 for the previous quarter.

For the year ended December 31, 2009, net income was $23.0 million compared to $24.0 million in prior year. Net income available to common shareholders in 2009 was $17.3 million and included the preferred dividends related to the Treasury’s Capital Purchase Program. This compares to net income available to common shareholders of $24.0 million in 2008. On a diluted earnings per share basis, the Company reported earnings of $0.88 for the year ended December 31, 2009 compared to $1.52 at December 31, 2008. On an operating basis, year-to-date net income was $28.0 million, or $1.43 on a diluted earnings per share basis compared to $25.3 million or $1.61 on a diluted earnings per share basis at December 31, 2008.

Christopher Oddleifson, President and Chief Executive Officer, stated, “I’m pleased with Rockland Trust’s performance throughout 2009. In almost every category we’ve managed to outperform our peer group. Our long-term strategy of building deep relationships with customers we know continues to pay dividends, both on the deposit and loan side. During difficult times, consumers and businesses want to work with a bank they can trust, and one that shares a strong bond with the community. Rockland Trust has been here for more than 100 years, and by providing more personalized service and access to decision makers than some of our competitors we continue to demonstrate why we’re the bank where each relationship matters.”

BALANCE SHEET

Total assets increased by $48.0 million, or 1.1%, to $4.5 billion at December 31, 2009 as compared to September 30, 2009.

Total loans were $3.4 billion at December 31, 2009, an increase of $8.0 million, or 0.2% from the prior quarter. The Company continued to generate solid growth during the quarter in the commercial and home equity loan portfolios with annualized growth of 7.9% and 4.0%, respectively. This was offset by a decline in the residential real estate and other consumer lending categories.

Total deposits increased by $94.3 million, or 2.9%, during the quarter ending December 31, 2009, primarily due to increases in municipal deposits. The Company continued its focus on core deposits, which grew by $114.0 million or 4.9% in the fourth quarter and represented 72.8% of total deposits at December 31, 2009.

Stockholders’ equity at December 31, 2009 totaled $412.6 million as compared to $406.6 million at September 30, 2009. The Tier 1 leverage capital ratio at December 31, 2009 was 7.85%, indicating the Company’s maintenance of its well-capitalized position.

NET INTEREST INCOME

The net interest margin in the fourth quarter of 2009 was 4.01% compared to 4.05% in the linked quarter period, representing a decrease of $210,000 in net interest income.

NON-INTEREST INCOME

The Company recorded non-interest income of $10.0 million during the fourth quarter of 2009, an increase of $5.6 million when compared to the quarter ended September 30, 2009. The change in non-interest income is composed of the following:

Service charges on deposit accounts decreased by $72,000, or (1.6%).
Wealth management revenue increased by $451,000, or 19.8%, due to general market appreciation and strong sales results. Assets under management in the wealth management division were $1.3 billion at December 31, 2009.
Mortgage banking income increased by $855,000 largely due to a revaluation of the mortgage servicing asset in the third quarter as a result of refinancing activity. The balance of the mortgage servicing asset was $2.2 million at December 31, 2009 and September 30, 2009, respectively, and loans serviced amounted to $350.5 million and $366.6 million, respectively.
The Company recorded total credit related impairment charges on certain pooled trust preferred securities and one private mortgage-backed security of $2.2 million and $5.1 million, pre-tax, for the quarters ending December 31, 2009 and September 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 December 31, 2009:


										Total
										Cumulative Credit
	Amortized		Unrealized		Non-Credit			Fair		Related
As of December 31, 2009	Cost*		Loss		OTTI			Value		Impairment
	(Dollars in thousands)
Pooled Trust Preferred Securities
A Tranche	$	2,829	($1,154	)	$	-		$	1,675	$	-
B Tranche		1,887	(1,228	)		-		$	659		-
C Tranche		3,989	-			(3,728	)	$	261		(5,406	)
D Tranche		-	-			-			-		(4,471	)
Total Pooled Trust Preferred Securities		8,705	(2,382	)		(3,728	)		2,595		(9,877	)

Single Issuer Trust Preferred Securities - AFS		5,000	(1,990	)		-			3,010		-

Single Issuer Trust Preferred Securities - HTM		9,773	(661	)		-			9,112		-

Private Mortgage-Backed Securities		15,640	(681	)		(670	)		14,289		(317	)

	$	39,118	($5,714	)		($4,398	)	$	29,006		($10,194	)

	*Amortized cost reflects all credit related impairment through December 31, 2009.

Other non-interest income increased by $1.3 million or 79.8%. The increase is due to fee revenue associated with loan level derivatives of $305,000, a gain on the disposition of other real estate owned of $586,000, and tax credits resulting in income of $413,000.

NON-INTEREST EXPENSE

The Company recorded non-interest expense of $34.6 million in the fourth quarter of 2009, an increase of $2.3 million, or 7.3%, when compared to the quarter ended September 30, 2009. Significant changes of non-interest expense include the following:

Salaries and employee benefits increased by $810,000, or 4.6%, primarily attributable to incentive compensation and sales commissions.
Occupancy and equipment expense decreased by $137,000, or (3.5%).
Data processing and facilities management decreased by $402,000, or (25.4%), due to timing differences.
Other non-interest expense increased by $2.1 million, or 26.8%, which is primarily attributable to increases in loan work out costs of $591,000, advertising of $540,000, other losses and charge-offs of $366,000, OREO valuation adjustments of $147,000, and Federal Home Loan Bank borrowing prepayment fee of $144,000.

The Company reported a return on average assets and a return on average common equity in the fourth quarter of 2009 of 0.82% and 8.82%, respectively, as compared to 0.62% and 6.73% for the quarter ended September 30, 2009.

ASSET QUALITY

The allowance for loan losses increased to $42.4 million at December 31, 2009 as compared to $41.4 million at September 30, 2009. Nonperforming loans declined slightly to $36.2 million, or 1.07% of total loans at December 31, 2009, from $36.9 million, or 1.09% of total loans at September 30, 2009. The Company’s allowance for loan losses as a percentage of loans were 1.25% and 1.22% at December 31, 2009 and September 30, 2009, respectively. These ratios are inclusive of loans acquired at fair value.

The provision for loan losses was $4.4 million for the quarters ended December 31, 2009 and September 30, 2009. Net charge-offs were $3.4 million, or 0.40% annualized of average loans for the quarter ending December 31, 2009 compared to $3.2 million or 0.37% for the quarter ending September 30, 2009.

Christopher Oddleifson and Denis K. Sheahan, Chief Financial Officer, of Independent Bank Corp. and Rockland Trust Company, will host a conference call to discuss fourth quarter earnings at 10:00 a.m. Eastern Time on Friday, January 22, 2010. 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 Pass code: 436609. The web cast replay will be available until January 22, 2011 and the telephone replay will be available until February 8, 2010.

Independent Bank Corp., which has Rockland Trust Company as a wholly-owned bank subsidiary, has $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”). 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	December 31,			September 30,			December 31,			Dec. 2009 vs.		Dec. 2009 vs.
	2009			2009			2008			Sept. 2009		Dec. 2008

Assets
Cash and Due From Banks	$	121,905		$	65,514		$	50,007		86.07	%	143.78	%
Fed Funds Sold and Short Term Investments		-			-			100		n/a		-100.00	%
Securities
Trading Assets		6,171			23,090			2,701		-73.27	%	128.47	%
Securities Available for Sale		508,650			546,125			600,291		-6.86	%	-15.27	%
Securities Held to Maturity		93,410			83,063			32,789		12.46	%	184.88	%
Total Securities		608,231			652,278			635,781		-6.75	%	-4.33	%

Loans Held for Sale		13,466			14,160			8,351		-4.90	%	61.25	%
Loans
Commercial and Industrial		373,531			371,092			270,832		0.66	%	37.92	%
Commercial Real Estate		1,614,474			1,546,206			1,126,295		4.42	%	43.34	%
Commercial Construction		175,312			201,196			171,955		-12.87	%	1.95	%
Small Business		82,569			84,135			86,670		-1.86	%	-4.73	%
Total Commercial		2,245,886			2,202,629			1,655,752		1.96	%	35.64	%
Residential Real Estate		555,306			576,575			413,024		-3.69	%	34.45	%
Residential Construction		10,736			14,783			10,950		-27.38	%	-1.95	%
Total Residential		566,042			591,358			423,974		-4.28	%	33.51	%
Consumer - Home Equity		471,862			467,213			406,240		1.00	%	16.15	%
Consumer - Auto		79,273			92,093			127,956		-13.92	%	-38.05	%
Consumer - Other		32,452			34,246			38,614		-5.24	%	-15.96	%
Total Consumer		583,587			593,552			572,810		-1.68	%	1.88	%
Total Loans		3,395,515			3,387,539			2,652,536		0.24	%	28.01	%
Less - Allowance for Loan Losses		(42,361	)		(41,357	)		(37,049	)	2.43	%	14.34	%
Net Loans		3,353,154			3,346,182			2,615,487		0.21	%	28.20	%
Federal Home Loan Bank Stock		35,854			36,357			24,603		-1.38	%	45.73	%
Bank Premises and Equipment		44,235			41,963			36,429		5.41	%	21.43	%
Goodwill and Core Deposit Intangible		143,730			144,152			125,710		-0.29	%	14.33	%
Other Assets		161,446			133,397			132,001		21.03	%	22.31	%
Total Assets	$	4,482,021		$	4,434,003		$	3,628,469		1.08	%	23.52	%

Liabilities and Stockholders' Equity
Deposits
Demand Deposits	$	721,792		$	702,159		$	519,326		2.80	%	38.99	%
Savings and Interest Checking Accounts		1,073,990			965,694			725,313		11.21	%	48.07	%
Money Market		661,731			675,269			488,345		-2.00	%	35.50	%
Time Certificates of Deposit		917,781			937,854			846,096		-2.14	%	8.47	%
Total Deposits		3,375,294			3,280,976			2,579,080		2.87	%	30.87	%
Borrowings
Federal Home Loan Bank Borrowings		362,936			396,218			429,634		-8.40	%	-15.52	%
Fed Funds Purchased and Assets Sold
Under Repurchase Agreements		190,452			188,707			170,880		0.92	%	11.45	%
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		2,152			2,418			2,946		-11.00	%	-26.95	%
Total Borrowings		647,397			679,200			695,317		-4.68	%	-6.89	%
Total Deposits and Borrowings		4,022,691			3,960,176			3,274,397		1.58	%	22.85	%
Other Liabilities		46,681			67,252			48,798		-30.59	%	-4.34	%
Stockholders' Equity
Common Stock		209			209			163		0.00	%	28.22	%
Additional Paid in Capital		225,088			224,848			137,488		0.11	%	63.71	%
Retained Earnings		184,599			179,245			177,493		2.99	%	4.00	%
Accumulated Other Comprehensive Income/(Loss), Net of Tax		2,753			2,273			(9,870	)	21.12	%	-127.89	%
Total Stockholders' Equity		412,649			406,575			305,274		1.49	%	35.17	%
Total Liabilities and Stockholders' Equity	$	4,482,021		$	4,434,003		$	3,628,469		1.08	%	23.52	%

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



CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended
										% Change		% Change
	December 31,			September 30,			December 31,			Dec. 2009 vs.		Dec. 2009 vs.
	2009			2009			2008			Sept. 2009		Dec. 2008

INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	18		$	4		$	51		350.00	%	-64.71	%
Interest and Dividends on Securities		7,096			7,644			7,196		-7.17	%	-1.39	%
Interest on Loans		45,637			45,773			38,048		-0.30	%	19.95	%
Interest on Loans Held for Sale		132			169			32		-21.89	%	312.50	%
Total Interest Income		52,883			53,590			45,327		-1.32	%	16.67	%
INTEREST EXPENSE
Interest on Deposits		6,869			7,446			9,964		-7.75	%	-31.06	%
Interest on Borrowed Funds		5,316			5,236			5,023		1.53	%	5.83	%
Total Interest Expense		12,185			12,682			14,987		-3.92	%	-18.70	%
Net Interest Income		40,698			40,908			30,340		-0.51	%	34.14	%
Less - Provision for Loan Losses		4,424			4,443			5,575		-0.43	%	-20.65	%
Net Interest Income after Provision for Loan Losses		36,274			36,465			24,765		-0.52	%	46.47	%
NON-INTEREST INCOME
Service Charges on Deposit Accounts		4,541			4,613			3,914		-1.56	%	16.02	%
Wealth Management		2,729			2,278			2,580		19.80	%	5.78	%
Mortgage Banking Income		1,280			425			497		201.18	%	157.55	%
BOLI Income		813			713			739		14.03	%	10.01	%
Gross Loss on Write-Down of certain Investments to Fair Value		2			(5,103	)		(4,646	)	-100.04	%	-100.04	%
Less: Non-Credit Related Other-Than-Temporary Impairment		(2,167	)		(33	)		-		6466.67	%	n/a
Net Loss on Write-Down of Certain Investments to Fair Value		(2,165	)		(5,136	)		(4,646	)	-57.85	%	-53.40	%
Other Non-Interest /Income		2,831			1,573			723		79.97	%	291.56	%
Total Non-Interest Income		10,029			4,466			3,807		124.56	%	163.44	%
NON-INTEREST EXPENSE
Salaries and Employee Benefits		18,537			17,727			14,468		4.57	%	28.12	%
Occupancy and Equipment Expenses		3,848			3,985			3,419		-3.44	%	12.55	%
Data Processing and Facilities Management		1,178			1,580			1,403		-25.44	%	-16.04	%
Merger & Acquisition Expense		-			41			-		-100.00	%	n/a
FDIC assessment		1,320			1,267			559		4.18	%	136.14	%
Other Non-Interest Expense		9,765			7,704			6,741		26.75	%	44.86	%
Total Non-Interest Expense		34,648			32,304			26,590		7.26	%	30.30	%
INCOME BEFORE INCOME TAXES		11,655			8,627			1,982		35.10	%	488.04	%
PROVISION FOR INCOME TAXES		2,555			1,786			(1,039	)	43.06	%	-345.91	%
NET INCOME	$	9,100		$	6,841		$	3,021		33.02	%	201.22	%

NET (LOSS)/INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	9,100		$	6,841		$	3,021		33.02	%	201.22	%

BASIC EARNINGS PER SHARE	$	0.43		$	0.33		$	0.19		30.30	%	126.32	%
DILUTED EARNINGS PER SHARE	$	0.43		$	0.33		$	0.18		30.30	%	138.89	%
BASIC AVERAGE SHARES		20,931,154			20,921,635			16,280,552
DILUTED AVERAGE SHARES		20,975,807			20,969,889			16,331,118

PERFORMANCE RATIOS:
Net Interest Margin (FTE)		4.01	%		4.05	%		3.82	%
Return on Average Assets		0.82	%		0.62	%		0.34	%
Return on Average Common Equity		8.82	%		6.73	%		3.92	%

RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP)	$	9,100		$	6,841		$	3,021		33.02	%	201.22	%
Non-Interest Expense Components
Add - Merger and Acquisition Expenses, net of tax		-			27			-
Add - Litigation Reserve, net of tax		-			-			-
Deemed Preferred Stock Dividend		-			-			-
NET OPERATING EARNINGS	$	9,100		$	6,868		$	3,021		32.52	%	201.22	%


Diluted Earnings Per Share, on an Operating Basis	$	0.43		$	0.33		$	0.18		30.30	%	138.89	%

CONSOLIDATED STATEMENTS OF INCOME
	Twelve Months						% Change
	December 31,			December 31,			Dec. 2009 vs.
	2009			2008			Dec. 2008

INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	290		$	148		95.95	%
Interest and Dividends on Securities		29,642			24,187		22.55	%
Interest on Loans		172,128			150,780		14.16	%
Interest on Loans Held for Sale		629			325		93.54	%
Total Interest Income		202,689			175,440		15.53	%
INTEREST EXPENSE
Interest on Deposits		31,163			38,896		-19.88	%
Interest on Borrowed Funds		20,832			20,030		4.00	%
Total Interest Expense		51,995			58,926		-11.76	%
Net Interest Income		150,694			116,514		29.34	%
Less - Provision for Loan Losses		17,335			10,888		59.21	%
Net Interest Income after Provision for Loan Losses		133,359			105,626		26.26	%
NON-INTEREST INCOME
Service Charges on Deposit Accounts		17,060			15,595		9.39	%
Wealth Management		10,047			11,133		-9.75	%
Mortgage Banking Income		4,857			3,072		58.11	%
BOLI Income		2,939			2,555		15.03	%
Net Gain/(Loss) on Sale of Securities and Derivatives		1,354			(609	)	-322.33	%
Gain Resulting From early Termination of Hedging Relationship		3,778			-		n/a
Gross Loss on Write-Down of certain Investments to Fair Value		(7,382	)		(7,211	)	2.37	%
Less: Non-Credit Related Other-Than-Temporary Impairment		(1,576	)		-		n/a
Net Loss on Write-Down of Certain Investments to Fair Value		(8,958	)		(7,211	)	24.23	%
Other Non-Interest (Loss)/Income		7,115			4,497		58.22	%
Total Non-Interest Income		38,192			29,032		31.55	%
NON-INTEREST EXPENSE
Salaries and Employee Benefits		68,257			58,275		17.13	%
Occupancy and Equipment Expenses		15,673			12,757		22.86	%
Data Processing and Facilities Management		5,779			5,574		3.68	%
Merger & Acquisition Expense		12,423			1,120		1009.20	%
WorldCom Bond Loss Recovery		-			(418	)	-100.00	%
FDIC assessment		6,975			1,388		402.52	%
Other Non-Interest Expense		32,708			25,447		28.53	%
Total Non-Interest Expense		141,815			104,143		36.17	%
INCOME BEFORE INCOME TAXES		29,736			30,515		-2.55	%
PROVISION FOR INCOME TAXES		6,747			6,551		2.99	%
NET INCOME	$	22,989		$	23,964		-4.07	%

PREFERRED STOCK DIVIDEND	$	5,698		$	-		-

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	17,291		$	23,964		-27.85	%

BASIC EARNINGS PER SHARE	$	0.88		$	1.53		-42.48	%
DILUTED EARNINGS PER SHARE	$	0.88		$	1.52		-42.11	%
BASIC AVERAGE SHARES		19,642,965			15,694,555
DILUTED AVERAGE SHARES		19,673,156			15,759,482

PERFORMANCE RATIOS:
Net Interest Margin (FTE)		3.89	%		3.95	%
Return on Average Assets		0.40	%		0.73	%
Return on Average Common Equity		4.29	%		8.20	%

RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP)	$	17,291		$	23,964		-27.85	%
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	$	28,045		$	25,304		10.83	%


Diluted Earnings Per Share, on an Operating Basis	$	1.43		$	1.61		-11.18	%

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 2009 and 2008 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													Twelve Months Ended
										% Change		% Change								% Change
	December 31,			September 30,			December 31,			Dec. 2009 vs.		Dec. 2009 vs.		December 31,			December 31,			Dec. 2009 vs.
	2009			2009			2008			Sept. 2009		Dec. 2008		2009			2008			Dec. 2008

Non-Interest Income GAAP	$	10,029		$	4,466		$	3,807		124.56	%	163.44	%	$	38,192		$	29,032		31.55	%
(Less)/Add - Net (Gain)/ Loss on Sale of Securities		-			-			-		n/a		n/a			(1,354	)		609		-322.33	%
(Less) Gain Resulting From early Termination of Hedging Relationship		-			-			-		n/a		n/a			(3,778	)		-		n/a
Add - Other-Than-Temporary-Impairment on Securities		2,165			5,136			4,646		-57.85	%	-53.40	%		8,958			7,211		24.23	%
Non-Interest Income as Adjusted	$	12,194		$	9,602		$	8,453		26.99	%	44.26	%	$	42,018		$	36,852		14.02	%

Non-Interest Expense GAAP	$	34,648		$	32,304		$	26,590		7.26	%	30.30	%	$	141,815		$	104,143		36.17	%
Less - Merger & Acquisition Expenses		-			(41	)		-		-100.00	%	n/a			(12,423	)		(1,120	)	1009.20	%
Less/Add - Litigation Reserve		-			-			-		n/a		n/a			-			750		-100.00	%
Add - WorldCom Bond Loss Recovery		-			-			-		n/a		n/a			-			418		-100.00	%
Non-Interest Expense as Adjusted	$	34,648		$	32,263		$	26,590		7.39	%	30.30	%	$	129,392		$	104,191		24.19	%


ASSET QUALITY
	For the Period Ending
	December 31,			September 30,			December 31,
	2009			2009			2008

	(Dollars in Thousands, Except Per Share Data)
Nonperforming Loans
Commercial & Industrial Loans	$	4,205		$	3,744		$	1,942
Small Business Loans		793			969			1,111
Commercial Real Estate Loans		18,525			18,511			12,370
Residential Real Estate Loans		10,829			11,625			9,394
Installment Loans - Home Equity		1,166			1,237			1,090
Installment Loans - Auto		242			504			813
Installment Loans - Other		423			347			213
Total Nonperforming Loans	$	36,183		$	36,937			26,933
Non-Accrual Securities		920			1,134			910
Other Assets in Possession		148			255			231
Other Real Estate Owned		3,994			6,491			1,809
Nonperforming Assets		41,245			44,817			29,883

Nonperforming Loans/Gross Loans		1.07	%		1.09	%		1.02	%
Allowance for Loan Losses/Nonperforming Loans		117.07	%		111.97	%		137.56	%
Gross Loans/Total Deposits		100.60	%		103.25	%		102.85	%
Allowance for Loan Losses/Total Loans		1.25	%		1.22	%		1.40	%

Net charge-offs (quarter-to-date)	$	3,419		$	3,154		$	1,813
Net charge-offs to average loans ( quarter annualized)		0.40	%		0.37	%		0.28	%
Net charge-off (year-to-date)	$	12,023		$	8,603		$	6,194
Net charge-offs to average loans		0.38	%		0.28	%		0.25	%

Financial Ratios
Book Value per Common Share	$	19.71		$	19.43		$	18.75
Tangible Equity Ratio:
Tangible Common Capital/Tangible Assets		6.20	%		6.12	%		5.13	%
Tangible Common Capital/Tangible Asset (proforma to include
the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP		6.65	%		6.58	%		5.67	%
Tangible Common Book Value per Share (proforma to include
the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP	$	13.85		$	13.56		$	12.19

Capital Adequacy
Tier one leverage capital ratio (1)		7.85	%		7.74	%		7.55	%
(1) Estimated number for December 31, 2009

INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA	Three Months Ended
(Unaudited - Dollars in Thousands)	December 31, 2009						September 30, 2009						December 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:


Intereset Bearing Cash, Federal Funds Sold,and Short Term Investments	$	50,983	$	18	0.14	%	$	4,060	$	4	0.39	%	$	19,979	$	51	1.02	%
Securities:
Trading Assets		8,706		61	2.80	%		22,941		109	1.90	%		3,036		45	5.93	%
Taxable Investment Securities		602,679		6,833	4.54	%		620,183		7,317	4.72	%		533,742		6,782	5.08	%
Non-taxable Investment Securities (1)		19,343		311	6.43	%		20,373		336	6.60	%		38,461		568	5.91	%
Total Securities:		630,728		7,205	4.57	%		663,497		7,762	4.68	%		575,239		7,395	5.14	%
Loans (1)		3,389,219		45,759	5.40	%		3,375,581		45,890	5.44	%		2,614,797		38,168	5.84	%
Loans Held for Sale		10,961		132	4.82	%		15,831		169	4.27	%		3,141		32	4.08	%
Total Interest-Earning Assets	$	4,081,891	$	53,114	5.20	%	$	4,058,969	$	53,825	5.30	%	$	3,213,156	$	45,646	5.68	%
Cash and Due from Banks		64,799						67,156						65,772
Federal Home Loan Bank Stock		36,351						36,357						24,603
Other Assets		281,314						280,147						244,772
Total Assets	$	4,464,355					$	4,442,629					$	3,548,303
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	977,673	$	1,185	0.48	%	$	969,676	$	1,246	0.51	%	$	720,695	$	1,490	0.83	%
Money Market		692,072		1,539	0.89	%		677,851		1,597	0.94	%		498,845		2,356	1.89	%
Time Deposits		931,510		4,145	1.78	%		948,596		4,603	1.94	%		859,894		6,118	2.85	%
Total interest-bearing deposits:	$	2,601,255	$	6,869	1.06	%	$	2,596,123	$	7,446	1.15	%	$	2,079,434	$	9,964	1.92	%
Borrowings:
Federal Home Loan Bank Borrowings	$	383,331	$	2,971	3.10	%	$	395,878	$	2,901	2.93	%	$	309,653	$	2,335	3.02	%
Federal Funds Purchased and Assets Sold
Under Repurchase Agreement		191,229		871	1.82	%		184,181		857	1.86	%		168,343		1,144	2.72	%
Junior Subordinated Debentures		61,857		921	5.96	%		61,857		931	6.02	%		61,857		995	6.43	%
Subordinated Debentures		30,000		553	7.37	%		30,000		547	7.29	%		30,000		546	7.28	%
Other Borrowings		2,227		-	0.00	%		2,108		-	0.00	%		2,736		3	0.44	%
Total Borrowings:		668,644		5,316	3.18	%		674,024		5,236	3.11	%		572,589		5,023	3.51	%
Total Interest-Bearing Liabilities	$	3,269,899	$	12,185	1.49	%	$	3,270,147	$	12,682	1.55	%	$	2,652,023	$	14,987	2.26	%
Demand Deposits		731,053						702,071						550,073

Other Liabilities		50,791						63,821						38,261
Total Liabilities	$	4,051,743					$	4,036,039					$	3,240,357
Stockholders' Equity		412,612						406,590						307,946
Total Liabilities and Stockholders' Equity	$	4,464,355					$	4,442,629					$	3,548,303

Net Interest Income			$	40,929					$	41,143					$	30,659

Interest Rate Spread (2)					3.71	%					3.75	%					3.42	%

Net Interest Margin (3)					4.01	%					4.05	%					3.82	%

Supplemental Information:
Total Deposits, including Demand Deposits	$	3,332,308	$	6,869			$	3,298,194	$	7,446			$	2,629,507	$	9,964
Cost of Total Deposits					0.82	%					0.90	%					1.52	%
Total Funding Liabilities, including Demand Deposits	$	4,000,952	$	12,185			$	3,972,218	$	12,682			$	3,202,096	$	14,987
Cost of Total Funding Liabilities					1.22	%					1.28	%					1.87	%


(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $231, $235, and $319 for the three months ended December 31, 2009, September 30, 2009, and December 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.

	Twelve Months Ended
(Unaudited - Dollars in Thousands)	December 31, 2009						December 31, 2008
			Interest						Interest
	Average		Earned/		Yield/		Average		Earned/		Yield/
	Balance		Paid		Rate		Balance		Paid		Rate
Interest-Earning Assets:


Interest Bearing Cash, Federal Funds Sold, and Short Term Investments	$	67,296	$	290	0.43	%	$	5,908	$	148	2.51	%
Securities:
Trading Assets		12,126		239	1.97	%		3,060		140	4.58	%
Taxable Investment Securities		605,453		28,456	4.70	%		447,343		22,359	5.00	%
Non-taxable Investment Securities (1)		22,671		1,457	6.43	%		41,203		2,597	6.30	%
Total Securities:		640,250		30,152	4.71	%		491,606		25,096	5.10	%
Loans (1)		3,177,949		172,615	5.43	%		2,482,786		151,247	6.09	%
Loans Held for Sale		14,320		629	4.39	%		6,242		325	5.21	%
Total Interest-Earning Assets	$	3,899,815	$	203,686	5.22	%	$	2,986,542	$	176,816	5.92	%
Cash and Due from Banks		65,509						65,992
Federal Home Loan Bank Stock		33,135						23,325
Other Assets		278,057						219,517
Total Assets	$	4,276,516					$	3,295,376
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	913,881	$	4,753	0.52	%	$	688,336	$	6,229	0.90	%
Money Market		639,231		6,545	1.02	%		472,065		9,182	1.95	%
Time Deposits		921,787		19,865	2.16	%		740,779		23,485	3.17	%
Total interest-bearing deposits:	$	2,474,899	$	31,163	1.26	%	$	1,901,180	$	38,896	2.05	%
Borrowings:
Federal Home Loan Bank Borrowings	$	409,551	$	11,519	2.81	%	$	312,451	$	10,714	3.43	%
Federal Funds Purchased and Assets Sold
Under Repurchase Agreement		180,632		3,396	1.88	%		154,440		4,663	3.02	%
Junior Subordinated Debentures		61,857		3,739	6.04	%		60,166		3,842	6.39	%
Subordinated Debentures		30,000		2,178	7.26	%		10,410		750	7.20	%
Other Borrowings		2,054		-	0.00	%		2,381		61	2.56	%
Total Borrowings:		684,094		20,832	3.05	%		539,848		20,030	3.71	%
Total Interest-Bearing Liabilities	$	3,158,993	$	51,995	1.65	%	$	2,441,028	$	58,926	2.41	%
Demand Deposits		659,916						533,543

Other Liabilities		54,697						28,692
Total Liabilities	$	3,873,606					$	3,003,263
Stockholders' Equity		402,910						292,113
Total Liabilities and Stockholders' Equity	$	4,276,516					$	3,295,376

Net Interest Income			$	151,691					$	117,890

Interest Rate Spread (2)					3.58	%					3.51	%

Net Interest Margin (3)					3.89	%					3.95	%

Supplemental Information:
Total Deposits, including Demand Deposits	$	3,134,815	$	31,163			$	2,434,723	$	38,896
Cost of Total Deposits					0.99	%					1.60	%
Total Funding Liabilities, including Demand Deposits	$	3,818,909	$	51,995			$	2,974,571	$	58,926
Cost of Total Funding Liabilities					1.36	%					1.98	%


(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $997 and $1,376 for the twelve months ended December 31, 2009, and December 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.

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 Fourth Quarter Net Income of $9.1 Million