Independent Bank (INDB) 8-K Independent Bank Corp. Reports Fourth Quarter Net Income of $11.8 Million

Exhibit 99.1

Independent Bank Corp. Reports Fourth Quarter Net Income of $11.8 Million

Exceptional Commercial and Home Equity Loan Growth Combined With Solid Credit Quality

ROCKLAND, Mass.--(BUSINESS WIRE)--January 20, 2011--Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced net income of $11.8 million for the fourth quarter of 2010, compared to $11.1 million recorded in the third quarter. On a diluted earnings per share basis, the Company reported earnings of $0.56 for the quarter, an increase of 5.7% from the $0.53 in earnings recorded for the previous quarter.

For the year ended December 31, 2010, net income was $40.2 million. On a diluted earnings per share basis, the Company reported earnings of $1.90 for the year ended December 31, 2010, compared to $0.88 for the year ended December 31, 2009.

Christopher Oddleifson, the President and Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company, stated “Rockland Trust had an outstanding year in 2010. Our strength and stability in the market and the focused efforts of all my colleagues enabled us to earn new customer relationships and expand existing relationships. We are very pleased with our overall performance, especially during these difficult economic times.”

BALANCE SHEET

Total assets of $4.7 billion at December 31, 2010 are consistent with the prior quarter.

Total loans were $3.6 billion at December 31, 2010, an increase of $147.6 million, or 4.3%, compared with the prior quarter. The Company achieved very strong growth in its commercial and industrial loan portfolio, which increased by $64.1 million, or 14.6%, in the fourth quarter, as the Company continued to expand its base of high-quality corporate relationships. Commercial real estate loan generation remained robust, as total outstandings increased by $75.8 million, or 4.6%. The Company’s commercial construction portfolio declined by $14.7 million, or 10.2%, as projects transitioned to permanent financing. The home equity portfolio continued its upward trajectory, rising $61.3 million, or 11.8%. Residential real estate loans declined by $29.5 million, or 5.9%, as loans refinanced into longer-term, fixed-rate loans, which are not commonly held in portfolio by the Company.

Total deposits increased by $10.6 million, or 0.3%, during the quarter ending December 31, 2010 while core deposits (non-time deposits) grew by $83.8 million, or 2.9% during the same period. Savings and interest checking rose by $61.0 million, or 4.6%, and demand deposits increased by $36.6 million, or 4.5%. Partially offsetting those deposit increases were decreases in money market accounts of $13.8 million, or 1.9%. The Company’s emphasis on lower cost core deposits has led to a steady reduction in time deposits which declined by $73.1 million, or 9.5%, in the fourth quarter. Core deposits have risen to 80.9% of total deposits at December 31, 2010, while the total cost of deposits declined to 0.45% for the current quarter, down 8 basis points from the prior period.

Securities were $587.8 million, down $37.1 million from the prior quarter due to paydowns.

Stockholders’ equity at December 31, 2010 totaled $436.5 million as compared to $425.7 million at September 30, 2010. The Tier 1 leverage capital ratio at December 31, 2010 rose to 8.2% from 8.0% in the prior quarter, maintaining the Company’s well-capitalized position.

NET INTEREST INCOME

Net interest income of $41.4 million was up modestly from the prior quarter. The net interest margin in the fourth quarter of 2010 expanded slightly to 3.91%, compared to the linked quarter period of 3.89%, as a result of a reduction in funding costs.

NON-INTEREST INCOME

The Company recorded non-interest income of $14.3 million during the fourth quarter of 2010 which represents a $2.6 million, or 22.4%, increase from the prior quarter. The change in non-interest income is composed of the following:

• Service charges on deposit accounts increased by $1.1 million, or 24.5%, primarily due to debit card usage and overdraft privilege fees on free checking accounts.
• Wealth management revenue increased by $104,000. Assets under management in the wealth management division rose to nearly $1.6 billion at December 31, 2010, an increase of $107.6 million compared to September 30, 2010.
• Mortgage banking income increased by $481,000, due to increased originations in loans held for sale as a result of the low rate environment. The balance of the mortgage servicing rights asset was $1.6 million and represented 63 basis points of the servicing portfolio at December 31, 2010.
• Other non-interest income increased by $1.0 million, or 51.2%, mainly due to fee revenue associated with loan level interest rate derivatives.

NON-INTEREST EXPENSE

The Company recorded non-interest expense of $36.7 million in the fourth quarter of 2010, an increase of $2.1 million, or 6.2%, when compared to the quarter ended September 30, 2010. Significant changes of non-interest expense included the following:

• Salaries and Employee Benefits increased by $530,000, or 2.7%, mainly due to increases in incentive compensation.
• Other non-interest expense increased by $1.4 million, or 17.0%, which is primarily attributable to increases in credit-related loan workout expenses of $502,000, loan level derivative expenses of $168,000, and consultant fees of $120,000, as well as a computer software write-off of $560,000.

The Company reported a return on average assets and a return on average common equity in the fourth quarter of 2010 of 1.01% and 10.85%, respectively, as compared to 0.95% and 10.38% for the quarter ended September 30, 2010.

ASSET QUALITY

Net charge-offs decreased to $2.9 million, or 0.33% on an annualized basis of average loans, for the fourth quarter compared to $3.2 million, or 0.37% for the quarter ending September 30, 2010. The provision for loan losses was $3.6 million and $3.5 million for the quarters ended December 31, 2010 and September 30, 2010, respectively. Nonperforming loans decreased to $23.1 million, or 0.65% of total loans at December 31, 2010, from $24.7 million, or 0.72% of total loans at September 30, 2010. The amount of nonperforming loans at December 31, 2010 was 36.1% lower than the level of non-performing loans at December 31, 2009. Delinquency as a percent of loans remained steady with prior quarter at 1.11%.

The allowance for loan losses was $46.3 million at December 31, 2010, compared with the prior quarter of $45.6 million. The Company’s allowance for loan losses was 1.30%, as a percentage of total loans at December 31, 2010, compared to 1.34%, at September 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 fourth quarter earnings at 10:00 a.m. Eastern Time on Friday, January 21, 2011. Internet access to the call is available on the Company’s website at www.RocklandTrust.com or by telephonic access by dial-in at 1-877-317-6789 reference: INDB. A replay of the call will be available by calling 1-877-344-7529, Replay Pass code: 447155. The web cast replay will be available until January 21, 2012.

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	December 31,			September 30,			December 31,			Dec 2010 vs.		Dec. 2010 vs.
	2010			2010			2009			Sept. 2010		Dec. 2009
Assets
Cash and Due From Banks	$	42,112		$	54,207		$	66,724		-22.31	%	-36.89	%
Interest Earning Deposits with Banks		119,170			222,392			55,181		-46.41	%	115.96	%
Fed Funds Sold and Short Term Investments		-			526			-		-100.00	%	n/a
Securities
Trading Assets		7,597			7,418			6,171		2.41	%	23.11	%
Securities Available for Sale		377,457			436,887			508,650		-13.60	%	-25.79	%
Securities Held to Maturity		202,732			180,623			93,410		12.24	%	117.03	%
Total Securities		587,786			624,928			608,231		-5.94	%	-3.36	%
Loans Held for Sale		27,917			21,321			13,466		30.94	%	107.31	%
Loans
Commercial and Industrial		502,952			438,873			373,531		14.60	%	34.65	%
Commercial Real Estate		1,717,118			1,641,356			1,614,474		4.62	%	6.36	%
Commercial Construction		129,421			144,109			175,312		-10.19	%	-26.18	%
Small Business		80,026			79,897			82,569		0.16	%	-3.08	%
Total Commercial		2,429,517			2,304,235			2,245,886		5.44	%	8.18	%
Residential Real Estate		473,936			503,471			555,306		-5.87	%	-14.65	%
Residential Construction		4,175			5,449			10,736		-23.38	%	-61.11	%
Consumer - Home Equity		579,278			517,962			471,862		11.84	%	22.76	%
Total Consumer Real Estate		1,057,389			1,026,882			1,037,904		2.97	%	1.88	%
Total Other Consumer		68,773			76,926			111,725		-10.60	%	-38.44	%
Total Loans		3,555,679			3,408,043			3,395,515		4.33	%	4.72	%
Less - Allowance for Loan Losses		(46,255	)		(45,619	)		(42,361	)	1.39	%	9.19	%
Net Loans		3,509,424			3,362,424			3,353,154		4.37	%	4.66	%
Federal Home Loan Bank Stock		35,854			35,854			35,854		0.00	%	0.00	%
Bank Premises and Equipment		45,712			45,420			44,235		0.64	%	3.34	%
Goodwill and Core Deposit Intangible		141,956			142,422			143,730		-0.33	%	-1.23	%
Other Assets		185,807			194,297			161,446		-4.37	%	15.09	%
Total Assets	$	4,695,738		$	4,703,791		$	4,482,021		-0.17	%	4.77	%
Liabilities and Stockholders' Equity
Deposits
Demand Deposits	$	842,067		$	805,491		$	721,792		4.54	%	16.66	%
Savings and Interest Checking Accounts		1,375,254			1,314,273			1,073,990		4.64	%	28.05	%
Money Market		717,286			731,091			661,731		-1.89	%	8.40	%
Time Certificates of Deposit		693,176			766,303			917,781		-9.54	%	-24.47	%
Total Deposits		3,627,783			3,617,158			3,375,294		0.29	%	7.48	%
Borrowings
Federal Home Loan Bank Borrowings		302,414			302,545			362,936		-0.04	%	-16.68	%
Fed Funds Purchased and Assets Sold
Under Repurchase Agreements		168,119			180,326			190,452		-6.77	%	-11.73	%
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		3,044			2,701			2,152		12.70	%	41.45	%
Total Borrowings		565,434			577,429			647,397		-2.08	%	-12.66	%
Total Deposits and Borrowings		4,193,217			4,194,587			4,022,691		-0.03	%	4.24	%
Other Liabilities		66,049			83,543			46,681		-20.94	%	41.49	%
Stockholders' Equity
Common Stock		210			210			209		0.00	%	0.48	%
Additional Paid in Capital		226,708			226,255			225,088		0.20	%	0.72	%
Retained Earnings		210,320			201,950			184,599		4.14	%	13.93	%
Accumulated Other Comprehensive Income/(Loss), Net of Tax		(766	)		(2,754	)		2,753		-72.19	%	-127.82	%
Total Stockholders' Equity		436,472			425,661			412,649		2.54	%	5.77	%
Total Liabilities and Stockholders' Equity	$	4,695,738		$	4,703,791		$	4,482,021		-0.17	%	4.77	%

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 2010 vs.		Dec. 2010 vs.
	2010			2010			2009			Sept. 2010		Dec. 2009
INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	71		$	135		$	18		-47.41	%	294.44	%
Interest and Dividends on Securities		5,827			5,843			7,096		-0.27	%	-17.88	%
Interest on Loans		43,797			44,436			45,637		-1.44	%	-4.03	%
Interest on Loans Held for Sale		276			174			132		58.62	%	109.09	%
Total Interest Income		49,971			50,588			52,883		-1.22	%	-5.51	%
INTEREST EXPENSE
Interest on Deposits		4,029			4,801			6,869		-16.08	%	-41.35	%
Interest on Borrowed Funds		4,553			4,590			5,316		-0.81	%	-14.35	%
Total Interest Expense		8,582			9,391			12,185		-8.61	%	-29.57	%
Net Interest Income		41,389			41,197			40,698		0.47	%	1.70	%
Less - Provision for Loan Losses		3,575			3,500			4,424		2.14	%	-19.19	%
Net Interest Income after Provision for Loan Losses		37,814			37,697			36,274		0.31	%	4.25	%
NON-INTEREST INCOME
Service Charges on Deposit Accounts		5,530			4,441			4,541		24.52	%	21.78	%
Wealth Management		2,955			2,851			2,729		3.65	%	8.28	%
Mortgage Banking Income		1,950			1,469			1,280		32.74	%	52.34	%
BOLI Income		839			901			813		-6.88	%	3.20	%
Net Gain/(Loss) on Sale of Securities		-			(22	)		-		-100.00	%	n/a
Other-Than-Temporary Impairment Losses on Available-for-Sale Debt Securities:
Gross Change on Write-Down of Certain Investments to Fair Value		172			207			2		-16.91	%	8500.00	%
Less: Portion of Other-Than-Temporary Impairment Recognized in Other Comprehensive Income		(238	)		(214	)		(2,167	)	11.21	%	-89.02	%
Net Impairment Losses Recognized in Earnings on Available-for-Sale Debt Securities		(66	)		(7	)		(2,165	)	842.86	%	-96.95	%
Other Non-Interest /Income		3,055			2,021			2,831		51.16	%	7.91	%
Total Non-Interest Income		14,263			11,654			10,029		22.39	%	42.22	%
NON-INTEREST EXPENSE
Salaries and Employee Benefits		20,322			19,792			18,537		2.68	%	9.63	%
Occupancy and Equipment Expenses		3,943			3,839			3,848		2.71	%	2.47	%
Data Processing and Facilities Management		1,578			1,404			1,178		12.39	%	33.96	%
FDIC Assessment		1,303			1,352			1,320		-3.62	%	-1.29	%
Other Non-Interest Expense		9,542			8,153			9,765		17.04	%	-2.28	%
Total Non-Interest Expense		36,688			34,540			34,648		6.22	%	5.89	%
INCOME BEFORE INCOME TAXES		15,389			14,811			11,655		3.90	%	32.04	%
PROVISION FOR INCOME TAXES		3,551			3,666			2,555		-3.14	%	38.98	%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	11,838		$	11,145		$	9,100		6.22	%	30.09	%
BASIC EARNINGS PER SHARE	$	0.56		$	0.53		$	0.43		5.66	%	30.23	%
DILUTED EARNINGS PER SHARE	$	0.56		$	0.53		$	0.43		5.66	%	30.23	%
BASIC AVERAGE SHARES		21,208,509			20,981,372			20,931,154
DILUTED AVERAGE SHARES		21,238,482			21,034,165			20,975,807
PERFORMANCE RATIOS:
Net Interest Margin (FTE)		3.91	%		3.89	%		3.98	%
Return on Average Assets		1.01	%		0.95	%		0.81	%
Return on Average Common Equity		10.85	%		10.38	%		8.75	%
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP)	$	11,838		$	11,145		$	9,100		6.22	%	30.09	%
Non-Interest Income Components
(Less)/Add - Net (Gain)/Loss on Sale of Securities, net of tax		-			13			-
NET OPERATING EARNINGS	$	11,838		$	11,158		$	9,100		6.09	%	30.09	%
Diluted Earnings Per Share, on an Operating Basis	$	0.56		$	0.53		$	0.43		5.66	%	30.23	%

CONSOLIDATED STATEMENTS OF INCOME
	Twelve Months Ended						% Change
	December 31,			December 31,			Dec. 2010 vs.
	2010			2009			Dec. 2009
INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	337		$	290		16.21	%
Interest and Dividends on Securities		24,657			29,642		-16.82	%
Interest on Loans		177,064			172,128		2.87	%
Interest on Loans Held for Sale		666			629		5.88	%
Total Interest Income		202,724			202,689		0.02	%
INTEREST EXPENSE
Interest on Deposits		20,254			31,163		-35.01	%
Interest on Borrowed Funds		18,509			20,832		-11.15	%
Total Interest Expense		38,763			51,995		-25.45	%
Net Interest Income		163,961			150,694		8.80	%
Less - Provision for Loan Losses		18,655			17,335		7.61	%
Net Interest Income after Provision for Loan Losses		145,306			133,359		8.96	%
NON-INTEREST INCOME
Service Charges on Deposit Accounts		18,708			17,060		9.66	%
Wealth Management		11,723			10,047		16.68	%
Mortgage Banking Income		5,041			4,857		3.79	%
BOLI Income		3,192			2,939		8.61	%
Net Gain on Sale of Securities		458			1,354		-66.17	%
Gain Resulting From early Termination of Hedging Relationship		-			3,778		-100.00	%
Gross Change on Write-Down of Certain Investments to Fair Value		497			(7,382	)	-106.73	%
Less: Non-Credit Related Other-Than-Temporary Impairment		(831	)		(1,576	)	-47.27	%
Net Loss on Write-Down of Certain Investments to Fair Value		(334	)		(8,958	)	-96.27	%
Other Non-Interest Income		8,118			7,115		14.10	%
Total Non-Interest Income		46,906			38,192		22.82	%
NON-INTEREST EXPENSE
Salaries and Employee Benefits		76,983			68,257		12.78	%
Occupancy and Equipment Expenses		16,011			15,673		2.16	%
Data Processing and Facilities Management		5,773			5,779		-0.10	%
Merger & Acquisition Expense		-			12,423		-100.00	%
FDIC assessment		5,247			6,975		-24.77	%
Other Non-Interest Expense		35,731			32,708		9.24	%
Total Non-Interest Expense		139,745			141,815		-1.46	%
INCOME BEFORE INCOME TAXES		52,467			29,736		76.44	%
PROVISION FOR INCOME TAXES		12,227			6,747		81.22	%
NET INCOME	$	40,240		$	22,989		75.04	%
PREFERRED STOCK DIVIDEND	$	-		$	5,698		-
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	40,240		$	17,291		132.72	%
BASIC EARNINGS PER SHARE	$	1.90		$	0.88		115.91	%
DILUTED EARNINGS PER SHARE	$	1.90		$	0.88		115.91	%
BASIC AVERAGE SHARES		21,178,117			19,642,965
DILUTED AVERAGE SHARES		21,203,915			19,673,156
PERFORMANCE RATIOS:
Net Interest Margin (FTE)		3.95	%		3.89	%
Return on Average Assets		0.88	%		0.40	%
Return on Average Common Equity		9.46	%		4.29	%
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP)	$	40,240		$	17,291		132.72	%
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	$	40,297		$	28,045		43.69	%
Diluted Earnings Per Share, on an Operating Basis	$	1.90		$	1.43		32.87	%

INDEPENDENT BANK CORP. FINANCIAL SUMMARY
(Unaudited - Dollars in Thousands, Except Per Share Data)
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
	Three Months Ended															Twelve Months Ended
										% Change			% Change									% Change
	December 31,			September 30,			December 31,			Dec 2010 vs.			Dec. 2010 vs.			December 31,			December 31,			Dec. 2010 vs.
	2010			2010			2009			Sept. 2010			Dec. 2009			2010			2009			Dec. 2009
Non-Interest Income GAAP	$	14,263		$	11,654		$	10,029			22.39	%		42.22	%	$	46,906		$	38,192			22.82	%
Add/(less) - Net Loss/(Gain) on Sale of Securities		-			22			-			-100.00	%		n/a			(458	)		(1,354	)		-66.17	%
Less - Gain Resulting From Early Termination of Hedging Relationship		-			-			-			n/a			n/a			-			(3,778	)		-100.00	%
Add - Other-Than-Temporary-Impairment on Securities		66			7			2,165			842.86	%		-96.95	%		334			8,958			-96.27	%
Non-Interest Income as Adjusted	$	14,329		$	11,683		$	12,194			22.65	%		17.51	%	$	46,782		$	42,018			11.34	%
Non-Interest Expense GAAP	$	36,688		$	34,540		$	34,648			6.22	%		5.89	%	$	139,745		$	141,815			-1.46	%
Less - Merger & Acquisition Expenses		-			-			-			n/a			n/a			-			(12,423	)		-100.00	%
Less - Fair Value Mark on a Terminated Hedging Relationship		-			-			-			n/a			n/a			(554	)		-			100.00	%
Non-Interest Expense as Adjusted	$	36,688		$	34,540		$	34,648			6.22	%		5.89	%	$	139,191		$	129,392			7.57	%
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 above. 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 Twelve Months Ending
	December 31,			September 30,			December 31,			December 31,			September 30,			December 31,			December 31,			December 31,
	2010			2010			2009			2010			2010			2009			2010			2009
Nonperforming Loans
Commercial & Industrial Loans	$	3,123		$	4,417		$	4,205		$	1,037		$	1,429		$	1,705		$	4,809		$	2,989
Small Business Loans		887			909			793			495			515			327			2,062			1,844
Commercial Real Estate Loans		9,836			8,966			18,525			594			851			29			5,163			2,160
Residential Real Estate Loans		6,728			7,863			10,829			46			24			150			498			725
Installment Loans - Home Equity		1,756			1,881			1,166			378			(38	)		600			808			1,758
Installment Loans - Other		778			651			665			388			391			608			1,421			2,547
Total Nonperforming Loans / Total Net Charge-offs	$	23,108		$	24,687		$	36,183		$	2,938		$	3,172		$	3,419		$	14,761		$	12,023
Non-Accrual Securities		1,051			1,017			920
Other Assets in Possession		61			74			148
Other Real Estate Owned		7,273			9,011			3,994
Nonperforming Assets	$	31,493		$	34,789		$	41,245
Nonperforming Loans/Gross Loans		0.65	%		0.72	%		1.07	%
Allowance for Loan Losses/Nonperforming Loans		200.17	%		184.79	%		117.07	%
Gross Loans/Total Deposits		98.01	%		94.22	%		100.60	%
Allowance for Loan Losses/Total Loans		1.30	%		1.34	%		1.25	%
Net charge-offs to average loans (quarter annualized)											0.33	%		0.37	%		0.40	%
Net charge-offs to average loans (year-to-date annualized)																				0.43	%		0.38	%
	QTD			YTD
	December 31,			December 31,
Nonperforming Loans Reconciliation	2010			2010
Nonperforming Loans Beginning Balance	$	24,687		$	36,183
New to Nonperforming		10,569			46,699
Loans Charged-Off		(3,231	)		(15,054	)
Loans Paid-Off		(2,735	)		(20,484	)
Loans Transferred to Other Real Estate Owned/Other Assets		(1,482	)		(11,461	)
Loans Restored to Accrual Status		(3,875	)		(11,878	)
Other		(825	)		(897	)
Nonperforming Loans Ending Balance	$	23,108		$	23,108
	December 31,			September 30,			December 31,
Financial Ratios	2010			2010			2009
Book Value per Common Share	$	20.57		$	20.08		$	19.58
Tangible Common Book Value per Share (proforma to include
the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP	$	14.86		$	14.34		$	13.85
Tangible Common Capital/Tangible Assets		6.47	%		6.21	%		6.20	%
Tangible Common Capital/Tangible Asset (proforma to include
the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP		6.89	%		6.64	%		6.65	%
Capital Adequacy
Tier one leverage capital ratio (1)		8.16	%		7.99	%		7.87	%
Tier one common ratio (1)		8.54	%		8.63	%		8.09	%
(1) Estimated number for December 31, 2010

INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA	Three Months Ended
	December 31, 2010						September 30, 2010						December 31, 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	$	113,325	$	71	0.25	%	$	200,862	$	135	0.27	%		$	50,983	$	18	0.14	%
Securities:
Trading Assets		7,469		80	4.25	%		7,257		61	3.33	%			8,706		61	2.78	%
Taxable Investment Securities		588,797		5,627	3.79	%		561,240		5,618	3.97	%			602,679		6,833	4.50	%
Non-taxable Investment Securities (1)		10,816		203	7.45	%		15,953		277	6.89	%			19,343		311	6.38	%
Total Securities:		607,082		5,910	3.86	%		584,450		5,956	4.04	%			630,728		7,205	4.53	%
Loans Held for Sale		34,252		276	3.20	%		15,738		174	4.39	%			10,961		132	4.78	%
Loans
Commercial and Industrial		486,845		5,405	4.40	%		440,539		5,077	4.57	%			372,174		4,647	4.95	%
Commercial Real Estate		1,667,304		23,384	5.56	%		1,641,627		23,736	5.74	%			1,572,599		23,421	5.91	%
Commercial Construction		136,831		1,540	4.47	%		148,151		1,792	4.80	%			190,354		2,389	4.98	%
Small Business		79,863		1,190	5.91	%		80,740		1,221	6.00	%			82,568		1,250	6.01	%
Total Commercial		2,370,843		31,519	5.27	%		2,311,057		31,826	5.46	%			2,217,695		31,707	5.67	%
Residential Real Estate		490,439		5,810	4.70	%		525,003		6,174	4.67	%			570,546		7,045	4.90	%
Residential Construction		4,842		59	4.83	%		4,874		63	5.13	%			12,309		172	5.54	%
Consumer - Home Equity		542,979		5,229	3.82	%		507,308		4,914	3.84	%			470,121		4,576	3.86	%
Total Consumer Real Estate		1,038,260		11,098	4.24	%		1,037,185		11,151	4.27	%			1,052,976		11,793	4.44	%
Total Other Consumer		72,781		1,412	7.70	%		82,130		1,593	7.70	%			118,548		2,259	7.56	%
Total Loans		3,481,884		44,029	5.02	%		3,430,372		44,570	5.15	%			3,389,219		45,759	5.36	%
Total Interest-Earning Assets	$	4,236,543	$	50,286	4.71	%	$	4,231,422	$	50,835	4.77	%		$	4,081,891	$	53,114	5.16	%
Cash and Due from Banks		55,541						55,357							64,799
Federal Home Loan Bank Stock		35,854						35,854							36,351
Other Assets		331,791						323,523							281,314
Total Assets	$	4,659,729					$	4,646,156						$	4,464,355
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	1,271,639	$	876	0.27	%	$	1,220,073	$	1,040	0.34	%		$	977,673	$	1,185	0.48	%
Money Market		736,700		866	0.47	%		757,154		1,058	0.55	%			692,072		1,539	0.88	%
Time Deposits		721,970		2,287	1.26	%		805,825		2,703	1.33	%			931,510		4,145	1.77	%
Total interest-bearing deposits:	$	2,730,309	$	4,029	0.59	%	$	2,783,052	$	4,801	0.68	%		$	2,601,255	$	6,869	1.05	%
Borrowings:
Federal Home Loan Bank Borrowings	$	306,075	$	2,391	3.10	%	$	302,610	$	2,372	3.11	%		$	383,331	$	2,971	3.07	%
Federal Funds Purchased and Assets Sold
Under Repurchase Agreement		182,501		693	1.51	%		179,983		740	1.63	%			191,229		871	1.81	%
Junior Subordinated Debentures		61,857		922	5.91	%		61,857		931	5.97	%			61,857		921	5.91	%
Subordinated Debentures		30,000		547	7.23	%		30,000		547	7.23	%			30,000		553	7.31	%
Other Borrowings		3,093		-	0.00	%		2,602		-	0.00	%			2,227		-	0.00	%
Total Borrowings:		583,526		4,553	3.10	%		577,052		4,590	3.16	%			668,644		5,316	3.15	%
Total Interest-Bearing Liabilities	$	3,313,835	$	8,582	1.03	%	$	3,360,104	$	9,391	1.11	%		$	3,269,899	$	12,185	1.48	%
Demand Deposits		841,440						796,205							731,053
Other Liabilities		71,785						63,790							50,791
Total Liabilities	$	4,227,060					$	4,220,099						$	4,051,743
Stockholders' Equity		432,669						426,057							412,612
Total Liabilities and Stockholders' Equity	$	4,659,729					$	4,646,156						$	4,464,355
Net Interest Income			$	41,704					$	41,444						$	40,929
Interest Rate Spread (2)					3.68	%					3.66	%						3.68	%
Net Interest Margin (3)					3.91	%					3.89	%						3.98	%
Supplemental Information:
Total Deposits, including Demand Deposits	$	3,571,749	$	4,029			$	3,579,257	$	4,801				$	3,332,308	$	6,869
Cost of Total Deposits					0.45	%					0.53	%						0.82	%
Total Funding Liabilities, including Demand Deposits	$	4,155,275	$	8,582			$	4,156,309	$	9,391				$	4,000,952	$	12,185
Cost of Total Funding Liabilities					0.82	%					0.90	%						1.21	%
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $315, $247, and $231 for the three months ended December 31, 2010, September 30, 2010, and December 31, 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.

	Twelve Months Ended
	December 31, 2010						December 31, 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	$	132,019	$	337	0.26	%	$	67,296	$	290	0.43	%
Securities:
Trading Assets		7,225		262	3.63	%		12,126		239	1.97	%
Taxable Investment Securities		569,069		23,722	4.17	%		605,453		28,456	4.70	%
Non-taxable Investment Securities (1)		15,877		1,138	7.17	%		22,671		1,457	6.43	%
Total Securities:		592,171		25,122	4.24	%		640,250		30,152	4.71	%
Loans Held for Sale		16,266		666	4.09	%		14,320		629	4.39	%
Loans
Commercial and Industrial		427,004		19,457	4.56	%		336,776		15,955	4.74	%
Commercial Real Estate		1,646,419		94,217	5.72	%		1,418,997		86,016	6.06	%
Commercial Construction		155,524		7,507	4.83	%		193,498		9,502	4.91	%
Small Business		81,091		4,829	5.96	%		85,567		5,143	6.01	%
Total Commercial		2,310,038		126,010	5.45	%		2,034,838		116,616	5.73	%
Residential Real Estate		525,203		25,235	4.80	%		542,758		27,333	5.04	%
Residential Construction		6,565		334	5.09	%		12,798		805	6.29	%
Consumer - Home Equity		504,886		19,369	3.84	%		447,890		17,523	3.91	%
Total Consumer Real Estate		1,036,654		44,938	4.33	%		1,003,446		45,661	4.55	%
Total Other Consumer		88,077		6,799	7.72	%		139,665		10,338	7.40	%
Total Loans		3,434,769		177,747	5.17	%		3,177,949		172,615	5.43	%
Total Interest-Earning Assets	$	4,175,225	$	203,872	4.88	%	$	3,899,815	$	203,686	5.22	%
Cash and Due from Banks		62,103						65,509
Federal Home Loan Bank Stock		35,854						33,135
Other Assets		316,234						278,057
Total Assets	$	4,589,416					$	4,276,516
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	1,183,247	$	4,397	0.37	%	$	913,881	$	4,753	0.52	%
Money Market		739,264		4,565	0.62	%		639,231		6,545	1.02	%
Time Deposits		814,462		11,292	1.39	%		921,787		19,865	2.16	%
Total interest-bearing deposits:	$	2,736,973	$	20,254	0.74	%	$	2,474,899	$	31,163	1.26	%
Borrowings:
Federal Home Loan Bank Borrowings	$	318,151	$	9,589	3.01	%	$	409,551	$	11,519	2.81	%
Federal Funds Purchased and Assets Sold
Under Repurchase Agreement		182,467		3,084	1.69	%		180,632		3,396	1.88	%
Junior Subordinated Debentures		61,857		3,666	5.93	%		61,857		3,739	6.04	%
Subordinated Debentures		30,000		2,170	7.23	%		30,000		2,178	7.26	%
Other Borrowings		2,802		-	0.00	%		2,054		-	0.00	%
Total Borrowings:		595,277		18,509	3.11	%		684,094		20,832	3.05	%
Total Interest-Bearing Liabilities	$	3,332,250	$	38,763	1.16	%	$	3,158,993	$	51,995	1.65	%
Demand Deposits		773,718						659,916
Other Liabilities		58,199						54,697
Total Liabilities	$	4,164,167					$	3,873,606
Stockholders' Equity		425,249						402,910
Total Liabilities and Stockholders' Equity	$	4,589,416					$	4,276,516
Net Interest Income			$	165,109					$	151,691
Interest Rate Spread (2)					3.72	%					3.58	%
Net Interest Margin (3)					3.95	%					3.89	%
Supplemental Information:
Total Deposits, including Demand Deposits	$	3,510,691	$	20,254			$	3,134,815	$	31,163
Cost of Total Deposits					0.58	%					0.99	%
Total Funding Liabilities, including Demand Deposits	$	4,105,968	$	38,763			$	3,818,909	$	51,995
Cost of Total Funding Liabilities					0.94	%					1.36	%
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $1,148 and $997 for the twelve months ended December 31, 2010, and December 31, 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