Independent Bank (INDB) 8-K Independent Bank Corp. Reports Third Quarter Net Income of $11.1 Million

Exhibit 99.1

Independent Bank Corp. Reports Third Quarter Net Income of $11.1 Million

Strong Commercial Loan Generation Continues

Solid Credit Quality

ROCKLAND, Mass.--(BUSINESS WIRE)--October 21, 2010--Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced net income of $11.1 million for the third quarter of 2010 compared to $8.0 million recorded in the second quarter. On a diluted earnings per share basis, the Company reported earnings of $0.53 for the quarter, an increase of 39.5% from $0.38 for the previous quarter.

Christopher Oddleifson, President and Chief Executive Officer, stated, “Our loan portfolios are weathering the difficult economic environment extremely well, leading to a reduction in credit losses. While overall loan growth was a challenge due to heavy commercial real estate paydowns and payoffs, our commercial and industrial and home equity loan portfolios both grew during the third quarter. All our loan origination pipelines remain strong. Another indication of our health is the growth of assets under management in our Investment Management Group, which reached nearly $1.5 billion, 10.4% over the second quarter level. Overall, we are very pleased with Rockland Trust’s third quarter performance.”

BALANCE SHEET

Total assets remained at $4.7 billion at September 30, 2010, consistent with the prior quarter ending June 30, 2010.

Total loans were $3.4 billion at September 30, 2010 and were essentially level with the prior quarter. The Company sustained strong growth in the commercial and industrial portfolio, which increased by $11.5 million, or 2.7%, in the third quarter, as it continued to add high-quality corporate customers. Commercial real estate origination volumes maintained a healthy pace but total outstandings remained flat with the prior quarter at $1.6 billion due to elevated levels of loan payoffs. The Company’s commercial construction portfolio declined by $13.9 million, or 8.8%, as projects transitioned to permanent financing. The home equity portfolio continued its steady upward trend, rising $19.2 million, or 3.8%. Residential real estate loans declined by $21.6 million, or 4.1%, as loans refinanced into longer-term, fixed-rate loans, which are not commonly held in portfolio by the Company.

Total deposits decreased by $62.7 million, or 1.7%, during the quarter ending September 30, 2010, primarily due to decreases in higher-cost time deposits of $58.6 million as a result of the Company’s strategy to create a funding mix that focuses on core deposits. Money market deposits decreased by $29.4 million, mainly due to the seasonal cash needs of municipalities. Partially offsetting those deposit decreases were strong increases in demand deposits of $16.5 million, or 2.1%, and a rise in savings and interest checking accounts of $8.8 million. Core deposits have risen to 78.8% of total deposits at September 30, 2010, while total cost of deposits declined further to 0.53% for the current quarter, down 9 basis points from the prior period.

Securities balances are at $624.9 million, up $31.3 million from the prior quarter, with purchases consisting of conservative, short duration agency mortgage backed securities.

Stockholders’ equity at September 30, 2010 totaled $425.7 million as compared to $422.1 million at June 30, 2010. The Tier 1 leverage capital ratio at September 30, 2010 rose to 8.0% from 7.9% in the prior quarter, maintaining the Company’s well-capitalized position.

NET INTEREST INCOME

Net interest income of $41.2 million was level with the prior quarter as higher average earning asset balances were offset by a lower net interest margin. The net interest margin in the third quarter of 2010 declined to 3.89%, compared to the linked quarter period of 3.96%. The margin in the third quarter declined 7 basis points due to ongoing pressure on asset yields from the low rate environment along with the reinvestment of excess cash into liquid, short-term assets. This was partly mitigated by the continued reduction in overall funding costs.

NON-INTEREST INCOME

The Company recorded non-interest income of $11.7 million during the third quarter of 2010 which represents a $716,000, or 6.6%, increase from the prior quarter. The change in non-interest income is composed of the following:

• Service charges on deposit accounts decreased by $74,000, or 1.6%.
• Wealth management revenue decreased by $338,000, mainly due to seasonal revenue associated with tax preparation and estate fees collected during the second quarter of 2010. Assets under management in the wealth management division rose to nearly $1.5 billion at September 30, 2010, an increase of $138.0 million compared to June 30, 2010.
• Mortgage banking income increased by $847,000, due to increased originations in for sale loans as a result of the low rate environment. The balance of the mortgage servicing asset was $1.7 million and represented 58 basis points of the servicing portfolio at September 30, 2010.
• Other non-interest income increased by $537,000, or 36.2%, mainly due to market driven unrealized gains on trading assets.

NON-INTEREST EXPENSE

The Company recorded non-interest expense of $34.5 million in the third quarter of 2010, a decrease of $389,000, or 1.1%, when compared to the quarter ended June 30, 2010. Significant changes of non-interest expense included the following:

• Salaries and Employee Benefits increased by $1.4 million, or 7.5%, mainly due to increases in incentive, sales commissions, pension, and medical expense.
• Occupancy and equipment decreased by $255,000, or 6.2%, in part due to the timing of building repairs and maintenance.
• Other non-interest expense decreased by $1.5 million, or 15.6%, which is primarily attributable to the timing of advertising expenses of $320,000, shareholder relations expense of $179,000, exam and audit fees of $161,000, and decreases in legal fees of $333,000 associated with loan work-outs, as well as prior quarter expense of $554,000 that was recognized relating to the change in fair value of an interest rate swap that was previously hedging borrowings.

The Company reported a return on average assets and a return on average common equity in the third quarter of 2010 of 0.95% and 10.38%, respectively, as compared to 0.70% and 7.60% for the quarter ended June 30, 2010.

ASSET QUALITY

Net charge-offs decreased to $3.2 million, or 0.37% on an annualized basis of average loans, for the third quarter compared to $6.9 million, or 0.81% for the quarter ending June 30, 2010. The provision for loan losses was $3.5 million and $6.9 million for the quarters ended September 30, 2010 and June 30, 2010, respectively. Nonperforming loans increased to $24.7 million, or 0.72% of total loans, at September 30, 2010 from $23.7 million, or 0.69% of total loans, at June 30, 2010. Delinquency levels have shown improvement with delinquencies as a percent of loans declining to 1.11% at September 30, 2010 compared to 1.32% at June 30, 2010.

The allowance for loan losses was $45.6 million at September 30, 2010 compared with the prior quarter of $45.3 million. The Company’s allowance for loan losses was 1.34%, as a percentage of total loans at September 30, 2010, compared to 1.32%, at June 30, 2010.

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 4:45 p.m. Eastern Time on Thursday, October 21, 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: 445054. The web cast replay will be available until November 1, 2010.

Independent Bank Corp., which has Rockland Trust Company as a wholly-owned bank subsidiary, has $4.7 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 find out 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. 2010 vs.		Sept. 2010 vs.
		2010			2010			2009		June 2010		Sept. 2009
Assets
Cash and Due From Banks	$	54,207		$	69,246		$	65,514		-21.72	%	-17.26	%
Interest Earning Deposits with Banks		222,392			268,162			-		-17.07	%	100.00	%
Fed Funds Sold and Short Term Investments		526			781			-		-32.65	%	100.00	%
Securities
Trading Assets		7,418			7,163			23,090		3.56	%	-67.87	%
Securities Available for Sale		436,887			482,989			546,125		-9.55	%	-20.00	%
Securities Held to Maturity		180,623			103,463			83,063		74.58	%	117.45	%
Total Securities		624,928			593,615			652,278		5.27	%	-4.19	%
Loans Held for Sale		21,321			16,365			14,160		30.28	%	50.57	%
Loans
Commercial and Industrial		438,873			427,398			371,092		2.68	%	18.27	%
Commercial Real Estate		1,641,356			1,646,204			1,546,206		-0.29	%	6.15	%
Commercial Construction		144,109			158,036			201,196		-8.81	%	-28.37	%
Small Business		79,897			80,965			84,135		-1.32	%	-5.04	%
Total Commercial		2,304,235			2,312,603			2,202,629		-0.36	%	4.61	%
Residential Real Estate		503,471			525,062			576,575		-4.11	%	-12.68	%
Residential Construction		5,449			4,594			14,783		18.61	%	-63.14	%
Consumer - Home Equity		517,962			498,789			467,213		3.84	%	10.86	%
Total Consumer Real Estate		1,026,882			1,028,445			1,058,571		-0.15	%	-2.99	%
Total Other Consumer		76,926			87,864			126,339		-12.45	%	-39.11	%
Total Loans		3,408,043			3,428,912			3,387,539		-0.61	%	0.61	%
Less - Allowance for Loan Losses		(45,619	)		(45,291	)		(41,357	)	0.72	%	10.31	%
Net Loans		3,362,424			3,383,621			3,346,182		-0.63	%	0.49	%
Federal Home Loan Bank Stock		35,854			35,854			36,357		0.00	%	-1.38	%
Bank Premises and Equipment		45,420			45,089			41,963		0.73	%	8.24	%
Goodwill and Core Deposit Intangible		142,422			142,888			144,152		-0.33	%	-1.20	%
Other Assets		194,297			185,354			133,397		4.82	%	45.65	%
Total Assets	$	4,703,791		$	4,740,975		$	4,434,003		-0.78	%	6.08	%
Liabilities and Stockholders' Equity
Deposits
Demand Deposits	$	805,491		$	789,019		$	702,159		2.09	%	14.72	%
Savings and Interest Checking Accounts		1,314,273			1,305,515			965,694		0.67	%	36.10	%
Money Market		731,091			760,471			675,269		-3.86	%	8.27	%
Time Certificates of Deposit		766,303			824,868			937,854		-7.10	%	-18.29	%
Total Deposits		3,617,158			3,679,873			3,280,976		-1.70	%	10.25	%
Borrowings
Federal Home Loan Bank Borrowings		302,545			302,677			396,218		-0.04	%	-23.64	%
Fed Funds Purchased and Assets Sold Under Repurchase Agreements		180,326			178,476			188,707		1.04	%	-4.44	%
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		2,701			3,136			2,418		-13.87	%	11.70	%
Total Borrowings		577,429			576,146			679,200		0.22	%	-14.98	%
Total Deposits and Borrowings		4,194,587			4,256,019			3,960,176		-1.44	%	5.92	%
Other Liabilities		83,543			62,894			67,252		32.83	%	24.22	%
Stockholders' Equity
Common Stock		210			210			209		0.00	%	0.48	%
Additional Paid in Capital		226,255			225,792			224,848		0.21	%	0.63	%
Retained Earnings		201,950			194,587			179,245		3.78	%	12.67	%
Accumulated Other Comprehensive Income/(Loss), Net of Tax		(2,754	)		1,473			2,273		-286.97	%	-221.16	%
Total Stockholders' Equity		425,661			422,062			406,575		0.85	%	4.69	%
Total Liabilities and Stockholders' Equity	$	4,703,791		$	4,740,975		$	4,434,003		-0.78	%	6.08	%

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. 2010 vs.		Sept. 2010 vs.
		2010			2010			2009		June 2010		Sept. 2009
INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	135		$	108		$	4		25.00	%	3275.00	%
Interest and Dividends on Securities		5,843			6,316			7,644		-7.49	%	-23.56	%
Interest on Loans		44,436			44,785			45,773		-0.78	%	-2.92	%
Interest on Loans Held for Sale		174			110			169		58.18	%	2.96	%
Total Interest Income		50,588			51,319			53,590		-1.42	%	-5.60	%
INTEREST EXPENSE
Interest on Deposits		4,801			5,485			7,446		-12.47	%	-35.52	%
Interest on Borrowed Funds		4,590			4,667			5,236		-1.65	%	-12.34	%
Total Interest Expense		9,391			10,152			12,682		-7.50	%	-25.95	%
Net Interest Income		41,197			41,167			40,908		0.07	%	0.71	%
Less - Provision for Loan Losses		3,500			6,931			4,443		-49.50	%	-21.22	%
Net Interest Income after Provision for Loan Losses		37,697			34,236			36,465		10.11	%	3.38	%
NON-INTEREST INCOME
Service Charges on Deposit Accounts		4,441			4,515			4,613		-1.64	%	-3.73	%
Wealth Management		2,851			3,189			2,278		-10.60	%	25.15	%
Mortgage Banking Income		1,469			622			425		136.17	%	245.65	%
BOLI Income		901			731			713		23.26	%	26.37	%
Net Gain/(Loss) on Sale of Securities		(22	)		481			-		-104.57	%	n/a
Gain Resulting From Early Termination of Hedging Relationship		-			-			-		n/a		n/a
Other-Than-Temporary Impairment Losses on Available-for-Sale Debt Securities:
Gross Change on Write-Down of Certain Investments to Fair Value		207			(63	)		(5,108	)	-428.57	%	-104.05	%
Less: Portion of Other-Than-Temporary Impairment Recognized in Other Comprehensive Income		(214	)		(21	)		(33	)	919.05	%	548.48	%
Net Impairment Losses Recognized in Earnings on Available-for-Sale Debt Securities		(7	)		(84	)		(5,141	)	-91.67	%	-99.86	%
Other Non-Interest /Income		2,021			1,484			1,578		36.19	%	28.07	%
Total Non-Interest Income		11,654			10,938			4,466		6.55	%	160.95	%
NON-INTEREST EXPENSE
Salaries and Employee Benefits		19,792			18,406			17,727		7.53	%	11.65	%
Occupancy and Equipment Expenses		3,839			4,094			3,985		-6.23	%	-3.66	%
Data Processing and Facilities Management		1,404			1,497			1,580		-6.21	%	-11.14	%
Merger & Acquisition Expense		-			-			41		n/a		n/a
FDIC Assessment		1,352			1,271			1,267		6.37	%	6.71	%
Other Non-Interest Expense		8,153			9,661			7,704		-15.61	%	5.83	%
Total Non-Interest Expense		34,540			34,929			32,304		-1.11	%	6.92	%
INCOME BEFORE INCOME TAXES		14,811			10,245			8,627		44.57	%	71.68	%
PROVISION FOR INCOME TAXES		3,666			2,215			1,786		65.51	%	105.26	%
NET INCOME	$	11,145		$	8,030		$	6,841		38.79	%	62.91	%
PREFERRED STOCK DIVIDEND	$	-		$	-		$	-
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	11,145		$	8,030		$	6,841		38.79	%	62.91	%
BASIC EARNINGS PER SHARE	$	0.53		$	0.38		$	0.33		39.47	%	60.61	%
DILUTED EARNINGS PER SHARE	$	0.53		$	0.38		$	0.33		39.47	%	60.61	%
BASIC AVERAGE SHARES		20,981,372			20,964,706			20,921,635
DILUTED AVERAGE SHARES		21,034,165			21,055,645			20,969,889
PERFORMANCE RATIOS:
Net Interest Margin (FTE)		3.89	%		3.96	%		4.02	%
Return on Average Assets		0.95	%		0.70	%		0.61	%
Return on Average Common Equity		10.38	%		7.60	%		6.68	%
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP)	$	11,145		$	8,030		$	6,841		38.79	%	62.91	%
Non-Interest Income Components
(Less)/Add - Net (Gain)/Loss on Sale of Securities, net of tax		13			(285	)		-
Less - Gain Resulting From early Termination of Hedging Relationship		-			-			-
Non-Interest Expense Components
Add - Merger and Acquisition Expenses, net of tax		-			-			27
Add - Fair Value Mark on a Terminated Hedging Relationship		-			328			-
Deemed Preferred Stock Dividend		-			-			-
NET OPERATING EARNINGS	$	11,158		$	8,073		$	6,868		38.21	%	62.47	%
Diluted Earnings Per Share, on an Operating Basis	$	0.53		$	0.38		$	0.33		39.47	%	60.61	%

CONSOLIDATED STATEMENTS OF INCOME
	Nine Months						% Change
	September 30,			September 30,			Sept. 2010 vs.
		2010			2009		Sept. 2009
INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	267		$	272		-1.84	%
Interest and Dividends on Securities		18,830			22,546		-16.48	%
Interest on Loans		133,267			126,491		5.36	%
Interest on Loans Held for Sale		390			497		-21.53	%
Total Interest Income		152,754			149,806		1.97	%
INTEREST EXPENSE
Interest on Deposits		16,225			24,293		-33.21	%
Interest on Borrowed Funds		13,955			15,517		-10.07	%
Total Interest Expense		30,180			39,810		-24.19	%
Net Interest Income		122,574			109,996		11.43	%
Less - Provision for Loan Losses		15,081			12,911		16.81	%
Net Interest Income after Provision for Loan Losses		107,493			97,085		10.72	%
NON-INTEREST INCOME
Service Charges on Deposit Accounts		13,177			12,518		5.26	%
Wealth Management		8,768			7,318		19.81	%
Mortgage Banking Income		3,091			3,578		-13.61	%
BOLI Income		2,353			2,126		10.68	%
Net Gain on Sale of Securities		458			1,355		-66.20	%
Gain Resulting From early Termination of Hedging Relationship		-			3,778		-100.00	%
Gross Change on Write-Down of Certain Investments to Fair Value		325			(7,384	)	-104.40	%
Less: Non-Credit Related Other-Than-Temporary Impairment		(594	)		590		-200.68	%
Net Loss on Write-Down of Certain Investments to Fair Value		(269	)		(6,794	)	-96.04	%
Other Non-Interest Income		5,065			4,283		18.26	%
Total Non-Interest Income		32,643			28,162		15.91	%
NON-INTEREST EXPENSE
Salaries and Employee Benefits		56,662			49,720		13.96	%
Occupancy and Equipment Expenses		12,068			11,826		2.05	%
Data Processing and Facilities Management		4,195			4,600		-8.80	%
Merger & Acquisition Expense		-			12,423		-100.00	%
FDIC assessment		3,944			5,655		-30.26	%
Other Non-Interest Expense		26,189			22,943		14.15	%
Total Non-Interest Expense		103,058			107,167		-3.83	%
INCOME BEFORE INCOME TAXES		37,078			18,080		105.08	%
PROVISION FOR INCOME TAXES		8,676			4,192		106.97	%
NET INCOME	$	28,402		$	13,888		104.51	%
PREFERRED STOCK DIVIDEND	$	-		$	5,698		-
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	28,402		$	8,190		246.79	%
BASIC EARNINGS PER SHARE	$	1.35		$	0.43		213.95	%
DILUTED EARNINGS PER SHARE	$	1.35		$	0.43		213.95	%
BASIC AVERAGE SHARES		20,961,378			19,210,431
DILUTED AVERAGE SHARES		21,035,914			19,236,612
PERFORMANCE RATIOS:
Net Interest Margin (FTE)		3.97	%		3.86	%
Return on Average Assets		0.83	%		0.26	%
Return on Average Common Equity		8.98	%		2.74	%
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP)	$	28,402		$	8,190		246.79	%
Non-Interest Income Components
Less - Net Gain on Sale of Securities, net of tax		(271	)		(880	)
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
Add - Fair Value Mark on a Terminated Hedging Relationship		328			-
Deemed Preferred Stock Dividend		-			4,384
NET OPERATING EARNINGS	$	28,459		$	18,944		50.22	%
Diluted Earnings Per Share, on an Operating Basis	$	1.35		$	0.98		37.76	%

INDEPENDENT BANK CORP. FINANCIAL SUMMARY
(Unaudited - Dollars in Thousands, Except Per Share Data)
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
	Three Months Ended												Nine Months Ended
									% Change		% Change								% Change
	September 30,		June 30,			September 30,			Sept. 2010 vs.		Sept. 2010 vs.		September 30,			September 30,			Sept. 2010 vs.
		2010		2010			2009		June 2010		Sept. 2009			2010			2009		Sept. 2009
Non-Interest Income GAAP	$	11,654	$	10,938		$	4,466		6.55	%	160.95	%	$	32,643		$	28,162		15.91	%
Add/(less) - Net Loss/(Gain) on Sale of Securities		22		(481	)		-		-104.57	%	n/a			(458	)		(1,355	)	-66.20	%
Less - Gain Resulting From Early Termination of Hedging Relationship		-		-			-		n/a		n/a			-			(3,778	)	-100.00	%
Add - Other-Than-Temporary-Impairment on Securities		7		84			5,141		-91.67	%	-99.86	%		269			6,794		-96.04	%
Non-Interest Income as Adjusted	$	11,683	$	10,541		$	9,607		10.83	%	21.61	%	$	32,454		$	29,823		8.82	%
Non-Interest Expense GAAP	$	34,540	$	34,929		$	32,304		-1.11	%	6.92	%	$	103,058		$	107,167		-3.83	%
Less - Merger & Acquisition Expenses		-		-			(41	)	n/a		-100.00	%		-			(12,423	)	-100.00	%
Less - Fair Value Mark on a Terminated Hedging Relationship		-		(554	)		-		100.00	%	n/a			(554	)		-		100.00	%
Non-Interest Expense as Adjusted	$	34,540	$	34,375		$	32,263		0.48	%	7.06	%	$	102,504		$	94,744		8.19	%
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 2010 and 2009 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.

ASSET QUALITY	Nonperforming Assets									Net Charge-Offs									Net Charge-Offs
	For the Period Ending									For the Three Months Ending									For the Nine Months Ending
	September 30,			June 30,			September 30,			September 30,			June 30,			September 30,			September 30,			September 30,
		2010			2010			2009			2010			2010			2009			2010			2009
	(Dollars in Thousands, Except Per Share Data)									(Dollars in Thousands, Except Per Share Data)									(Dollars in Thousands, Except Per Share Data)
Nonperforming Loans
Commercial & Industrial Loans	$	4,417		$	5,083		$	3,744		$	1,429		$	1,816		$	1,241		$	3,772		$	1,284
Small Business Loans		909			728			969			515			801			762			1,567			1,517
Commercial Real Estate Loans		8,966			8,007			18,511			851			3,520			-			4,569			2,131
Residential Real Estate Loans		7,863			8,012			11,625			24			293			379			452			575
Installment Loans - Home Equity		1,881			1,218			1,237			(38	)		234			298			430			1,158
Installment Loans - Other		651			630			851			391			254			474			1,033			1,938
Total Nonperforming Loans / Total Net Charge-offs	$	24,687		$	23,678		$	36,937		$	3,172		$	6,918		$	3,154		$	11,823		$	8,603
Non-Accrual Securities		1,017			969			1,134
Other Assets in Possession		74			79			255
Other Real Estate Owned		9,011			7,357			6,491
Nonperforming Assets	$	34,789		$	32,083		$	44,817
Nonperforming Loans/Gross Loans		0.72	%		0.69	%		1.09	%
Allowance for Loan Losses/Nonperforming Loans		184.79	%		191.28	%		111.97	%
Gross Loans/Total Deposits		94.22	%		93.18	%		103.25	%
Allowance for Loan Losses/Total Loans		1.34	%		1.32	%		1.22	%
Net charge-offs to average loans (quarter annualized)											0.37	%		0.81	%		0.37	%
Net charge-offs to average loans (year-to-date annualized)																				0.46	%		0.37	%
	QTD			YTD
	September 30,			September 30,
Nonperforming Loans Reconciliation		2010			2010
Nonperforming Loans Beginning Balance	$	23,678		$	36,183
New to Nonperforming		12,910			36,130
Loans Charged-Off		(3,172	)		(11,823	)
Loans Paid-Off		(3,803	)		(17,749	)
Loans Transferred to Other Real Estate Owned/Other Assets		(2,514	)		(9,979	)
Loans Restored to Accrual Status		(2,496	)		(8,003	)
Other		84			(72	)
Nonperforming Loans Ending Balance	$	24,687		$	24,687
	September 30,			June 30,			September 30,
Financial Ratios		2010			2010			2009
Book Value per Common Share	$	20.08		$	19.91		$	19.43
Tangible Common Book Value per Share (proforma to include the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP	$	14.34		$	14.14		$	13.56
Tangible Common Capital/Tangible Assets		6.21	%		6.07	%		6.12	%
Tangible Common Capital/Tangible Asset (proforma to include the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP		6.64	%		6.49	%		6.58	%
Capital Adequacy
Tier one leverage capital ratio (1)		7.96	%		7.86	%		7.74	%
Tier one common ratio (1)		8.55	%		8.15	%		7.90	%
(1) Estimated number for September 30, 2010

INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA	Three Months Ended
	September 30, 2010						June 30, 2010						September 30, 2009
			Interest						Interest						Interest
	Average		Earned/		Yield/		Average		Earned/		Yield/		Average		Earned/		Yield/
	Balance		Paid		Rate		Balance		Paid		Rate		Balance		Paid		Rate
	(Unaudited - Dollars in Thousands)
Interest-Earning Assets:
Interest Earning Deposits with Banks, Federal Funds Sold, and Short Term Investments	$	200,862	$	135	0.27	%	$	188,976	$	108	0.23	%	$	4,060	$	4	0.39	%
Securities:
Trading Assets		7,257		61	3.33	%		7,367		62	3.38	%		22,941		109	1.89	%
Taxable Investment Securities		561,240		5,618	3.97	%		557,554		6,067	4.36	%		620,183		7,317	4.68	%
Non-taxable Investment Securities (1)		15,953		277	6.89	%		17,718		316	7.15	%		20,373		336	6.54	%
Total Securities:		584,450		5,956	4.04	%		582,639		6,445	4.44	%		663,497		7,762	4.64	%
Loans Held for Sale		15,738		174	4.39	%		7,656		110	5.76	%		15,831		169	4.24	%
Loans
Commercial and Industrial		440,539		5,211	4.69	%		401,430		4,874	4.87	%		361,809		4,395	4.82	%
Commercial Real Estate		1,641,627		23,602	5.70	%		1,645,452		23,691	5.77	%		1,524,246		23,083	6.01	%
Commercial Construction		148,151		1,792	4.80	%		166,040		2,098	5.07	%		205,653		2,537	4.89	%
Small Business		80,740		1,221	6.00	%		81,319		1,202	5.93	%		85,370		1,305	6.06	%
Total Commercial		2,311,057		31,826	5.46	%		2,294,241		31,865	5.57	%		2,177,078		31,320	5.71	%
Residential Real Estate		525,003		6,174	4.67	%		537,475		6,485	4.84	%		589,702		7,319	4.92	%
Residential Construction		4,874		63	5.13	%		7,507		95	5.08	%		15,077		228	6.00	%
Consumer - Home Equity		507,308		4,914	3.84	%		490,197		4,704	3.85	%		460,500		4,510	3.89	%
Total Consumer Real Estate		1,037,185		11,151	4.27	%		1,035,179		11,284	4.37	%		1,065,279		12,057	4.49	%
Total Other Consumer		82,130		1,593	7.70	%		92,681		1,784	7.72	%		133,224		2,513	7.48	%
Total Loans		3,430,372		44,570	5.15	%		3,422,101		44,933	5.27	%		3,375,581		45,890	5.39	%
Total Interest-Earning Assets	$	4,231,422	$	50,835	4.77	%	$	4,201,372	$	51,596	4.93	%	$	4,058,969	$	53,825	5.26	%
Cash and Due from Banks		55,357						71,322						67,156
Federal Home Loan Bank Stock		35,854						35,854						36,357
Other Assets		323,523						305,041						280,147
Total Assets	$	4,646,156					$	4,613,589					$	4,442,629
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	1,220,073	$	1,040	0.34	%	$	1,182,343	$	1,297	0.44	%	$	969,676	$	1,246	0.51	%
Money Market		757,154		1,058	0.55	%		760,240		1,320	0.70	%		677,851		1,597	0.93	%
Time Deposits		805,825		2,703	1.33	%		842,539		2,868	1.37	%		948,596		4,603	1.93	%
Total interest-bearing deposits:	$	2,783,052	$	4,801	0.68	%	$	2,785,122	$	5,485	0.79	%	$	2,596,123	$	7,446	1.14	%
Borrowings:
Federal Home Loan Bank Borrowings	$	302,610	$	2,372	3.11	%	$	324,168	$	2,392	2.96	%	$	395,878	$	2,901	2.91	%
Federal Funds Purchased and Assets Sold Under Repurchase Agreement		179,983		740	1.63	%		182,810		821	1.80	%		184,181		857	1.85	%
Junior Subordinated Debentures		61,857		931	5.97	%		61,857		913	5.92	%		61,857		931	5.97	%
Subordinated Debentures		30,000		547	7.23	%		30,000		541	7.23	%		30,000		547	7.23	%
Other Borrowings		2,602		-	0.00	%		3,148		-	0.00	%		2,108		-	0.00	%
Total Borrowings:		577,052		4,590	3.16	%		601,983		4,667	3.11	%		674,024		5,236	3.08	%
Total Interest-Bearing Liabilities	$	3,360,104	$	9,391	1.11	%	$	3,387,105	$	10,152	1.20	%	$	3,270,147	$	12,682	1.54	%
Demand Deposits		796,205						752,622						702,071
Other Liabilities		63,790						49,870						63,821
Total Liabilities	$	4,220,099					$	4,189,597					$	4,036,039
Stockholders' Equity		426,057						423,992						406,590
Total Liabilities and Stockholders' Equity	$	4,646,156					$	4,613,589					$	4,442,629
Net Interest Income			$	41,444					$	41,444					$	41,143
Interest Rate Spread (2)					3.66	%					3.72	%					3.72	%
Net Interest Margin (3)					3.89	%					3.96	%					4.02	%
Supplemental Information:
Total Deposits, including Demand Deposits	$	3,579,257	$	4,801			$	3,537,744	$	5,485			$	3,298,194	$	7,446
Cost of Total Deposits					0.53	%					0.62	%					0.90	%
Total Funding Liabilities, including Demand Deposits	$	4,156,309	$	9,391			$	4,139,727	$	10,152			$	3,972,218	$	12,682
Cost of Total Funding Liabilities					0.90	%					0.98	%					1.27	%
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $247, $277, and $235 for the three months ended September 30, 2010, June 30, 2010, and September 30, 2009, 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
	September 30, 2010						September 30, 2009
			Interest						Interest
	Average		Earned/		Yield/		Average		Earned/		Yield/
	Balance		Paid		Rate		Balance		Paid		Rate
	(Unaudited - Dollars in Thousands)
Interest-Earning Assets:
Interest Earning Deposits with Banks, Federal Funds Sold, and Short Term Investments	$	138,319	$	267	0.26	%	$	70,349	$	272	0.52	%
Securities:
Trading Assets		7,143		183	3.43	%		13,278		178	1.79	%
Taxable Investment Securities		562,422		18,093	4.30	%		606,388		21,624	4.77	%
Non-taxable Investment Securities (1)		17,582		936	7.12	%		23,792		1,145	6.43	%
Total Securities:		587,147		19,212	4.37	%		643,458		22,947	4.77	%
Loans Held for Sale		10,204		390	5.11	%		15,453		497	4.30	%
Loans
Commercial and Industrial		406,838		14,502	4.77	%		324,847		11,673	4.80	%
Commercial Real Estate		1,639,380		70,382	5.74	%		1,367,234		62,230	6.09	%
Commercial Construction		161,823		5,967	4.93	%		194,558		7,113	4.89	%
Small Business		81,506		3,639	5.97	%		86,577		3,893	6.01	%
Total Commercial		2,289,547		94,490	5.52	%		1,973,216		84,909	5.75	%
Residential Real Estate		536,918		19,424	4.84	%		533,394		20,288	5.09	%
Residential Construction		7,146		276	5.16	%		12,963		633	6.53	%
Consumer - Home Equity		492,048		14,140	3.84	%		440,398		12,947	3.93	%
Total Consumer Real Estate		1,036,112		33,840	4.37	%		986,755		33,868	4.59	%
Total Other Consumer		93,232		5,388	7.73	%		146,781		8,079	7.36	%
Total Loans		3,418,891		133,718	5.23	%		3,106,752		126,856	5.46	%
Total Interest-Earning Assets	$	4,154,561	$	153,587	4.94	%	$	3,836,012	$	150,572	5.25	%
Cash and Due from Banks		64,314						68,192
Federal Home Loan Bank Stock		35,854						32,051
Other Assets		310,992						276,960
Total Assets	$	4,565,721					$	4,213,215
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	1,153,459	$	3,521	0.41	%	$	892,383	$	3,567	0.53	%
Money Market		740,128		3,699	0.67	%		621,424		5,006	1.08	%
Time Deposits		845,631		9,005	1.42	%		918,510		15,720	2.29	%
Total interest-bearing deposits:	$	2,739,218	$	16,225	0.79	%	$	2,432,317	$	24,293	1.34	%
Borrowings:
Federal Home Loan Bank Borrowings	$	322,221	$	7,196	2.99	%	$	418,386	$	8,548	2.73	%
Federal Funds Purchased and Assets Sold Under Repurchase Agreement		182,456		2,391	1.75	%		177,061		2,525	1.91	%
Junior Subordinated Debentures		61,857		2,744	5.93	%		61,857		2,819	6.09	%
Subordinated Debentures		30,000		1,624	7.24	%		30,000		1,625	7.24	%
Other Borrowings		2,704		-	0.00	%		1,996		-	0.00	%
Total Borrowings:		599,238		13,955	3.11	%		689,300		15,517	3.01	%
Total Interest-Bearing Liabilities	$	3,338,456	$	30,180	1.21	%	$	3,121,617	$	39,810	1.71	%
Demand Deposits		750,895						635,943
Other Liabilities		53,622						56,015
Total Liabilities	$	4,142,973					$	3,813,575
Stockholders' Equity		422,748						399,640
Total Liabilities and Stockholders' Equity	$	4,565,721					$	4,213,215
Net Interest Income			$	123,407					$	110,762
Interest Rate Spread (2)					3.73	%					3.54	%
Net Interest Margin (3)					3.97	%					3.86	%
Supplemental Information:
Total Deposits, including Demand Deposits	$	3,490,113	$	16,225			$	3,068,260	$	24,293
Cost of Total Deposits					0.62	%					1.06	%
Total Funding Liabilities, including Demand Deposits	$	4,089,351	$	30,180			$	3,757,560	$	39,810
Cost of Total Funding Liabilities					0.99	%					1.42	%
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $833 and $766 for the nine months ended September 30, 2010, and June 30, 2009, 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