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

Exhibit 99.1

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

Strong Loan and Deposit Growth Drives Performance

ROCKLAND, Mass.--(BUSINESS WIRE)--July 14, 2011--Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced net income of $11.1 million for the second quarter of 2011, or $0.52 on a diluted earnings per share basis. The results of the second quarter 2011 represent an increase of $0.14 or 36.8% on a diluted per share basis as compared to the second quarter of 2010 and were consistent with linked quarter results.

Christopher Oddleifson, the President and Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company, stated: “Our track record of delivering consistent, solid results continued in the second quarter, led by robust loan and deposit growth as well as ongoing momentum in our investment management business. Rockland Trust derives its success from acquiring new customers while deepening our existing customer relationships. We’re also pleased that Fitch noted our consistent financial performance amidst a difficult operating environment and recently upgraded its rating of Independent Bank Corp. and Rockland Trust to ‘BBB’ from ‘BBB’-.”

BALANCE SHEET

Total assets of $4.8 billion at June 30, 2011 are up $197.2 million from the prior quarter.

Total loans grew to $3.7 billion at June 30, 2011, an increase of $96.9 million, or 2.7%, compared with the prior quarter, or 10.7% on an annualized basis. The Company continued to drive robust growth in its commercial and industrial loan portfolio, which increased by $59.2 million, or 11.6%, in the second quarter, as the Company continued to grow its base of high-quality customers. Commercial real estate loan generation remained strong, as the portfolio increased by $30.7 million, or 1.7%. The home equity portfolio also sustained its steady growth, rising $13.0 million, or 2.1%. Residential real estate loans declined by $7.5 million, or 1.6%, as loans refinanced into longer-term, fixed-rate loans, which are not commonly held in portfolio by the Company.

Deposit volumes were especially strong in the second quarter as total deposits increased by $201.6 million, or 5.6%, during the three months ended June 30, 2011. Core deposits increased by $205.4 million, or 7.1%, driven by inflows in municipal deposits as well as increases in demand deposits due to both increased marketing efforts of the Company and seasonality within the deposit customer base. Time deposits continued to decline but at a more modest pace, decreasing by $3.8 million, or 0.6%, in the second quarter. Core deposits to total deposits rose to 82.3% and the total cost of deposits remained stable at 0.39% for the current quarter.

Securities decreased by $41.6 million compared to the linked quarter to $547.5 million due to paydowns on securities and the sale of $13.9 million of mortgage backed securities.

Stockholders’ equity at June 30, 2011 increased by 1.7% to $455.7 million as compared to the balance at March 31, 2011. The Tier 1 leverage capital ratio at June 30, 2011 remained consistent with prior quarter at 8.5%, maintaining the Company’s well-capitalized position.

NET INTEREST INCOME

Net interest income of $42.1 million was up from the prior quarter due to higher levels of earning assets. The net interest margin in the second quarter of 2011 declined to 3.97%, compared to 4.02% due primarily to lower loan yields.

NON-INTEREST INCOME

The Company recorded non-interest income of $13.5 million during the second quarter of 2011 which represents an $876,000, or 7.0%, increase from the prior quarter. The change in non-interest income is composed of the following:

• Service charges on deposit accounts increased $233,000, or 5.9%.

• Interchange and ATM fees increased by $272,000, or 16.0%, due primarily to increased debit card usage by customers.
• Investment management revenue increased by $387,000, or 12.0%. Assets under management in the investment management division rose to $1.7 billion at June 30, 2011, an increase of $ 26.1 million compared to March 31, 2011.
• Non-interest income benefited from the sale of securities in the second quarter, resulting in a gain of $723,000. There were no gains on sale of securities during the first quarter of the year.
• Mortgage banking income decreased by $364,000, or 34.8%, reflective of reduced volumes being experienced in the industry.
• Other non-interest income decreased by $433,000, or 21.6%, mainly due to fee revenue in the prior period associated with loan level interest rate derivatives.

NON-INTEREST EXPENSE

The Company recorded non-interest expense of $36.9 million in the second quarter of 2011, an increase of $374,000, or 1.0%, when compared to the quarter ended March 31, 2011. Significant changes of non-interest expense included the following:

• Salary and employee benefits decreased $490,000, or 2.4% primarily due to decreases in payroll taxes in the second quarter offset by merit increases in the second quarter.
• Occupancy and equipment decreased $312,000, or 6.8% primarily due to high costs of snow removal incurred during the first quarter.
• Data processing and facilities management decreased by $600,000, or 36.6% due to conversion costs associated with a change in the service provider incurred during the first quarter.
• FDIC assessment decreased $513,000, or 39.7% due to a lower assessment rate that was effective during the second quarter.
• Other non-interest expense increased by $2.3 million, or 26.2%, which is primarily attributable to higher credit-related loan workout expenses, which are inclusive of write-downs on OREO properties, of $832,000, increased marketing efforts, which resulted in an increase of $803,000, and increased exams and audit fees of $286,000.

The Company generated a return on average assets and a return on average common equity in the second quarter of 2011 of 0.95% and 9.78%, respectively, as compared to 0.98% and 10.24% for the quarter ended March 31, 2011.

ASSET QUALITY

The Company continued to maintain a solid credit profile during the quarter. Net charge-offs increased to $3.3 million, or 0.36% on an annualized basis of average loans, for the second quarter of 2011 compared to $2.0 million, or 0.23% for the quarter ended March 31, 2011. The provision for loan losses was $3.5 million and $2.2 million for the quarters ended June 30, 2011 and March 31, 2011, respectively. Nonperforming loans decreased to $21.9 million, or 0.59% of total loans at June 30, 2011, from $23.4 million, or 0.64% of total loans at March 31, 2011. Delinquency as a percent of loans declined to 0.83% at June 30, 2011 compared to 1.19% at March 31, 2011.

The allowance for loan losses was $46.6 million at June 30, 2011, compared with the prior quarter level of $46.4 million. The Company’s allowance for loan losses was 1.25%, as a percentage of total loans at June 30, 2011, compared to 1.28%, at March 31, 2011.

Christopher Oddleifson and Denis K. Sheahan, Chief Financial Officer, of Independent Bank Corp. and Rockland Trust Company, will host a conference call to discuss second quarter earnings at 10:00 a.m. Eastern Time on Friday, July 15, 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: 10001834. The web cast replay will be available until July 15, 2012.

Independent Bank Corp., which has Rockland Trust Company as a wholly-owned bank subsidiary, has $4.8 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	June 30,			March 31,			June 30,			June 2011 vs.		June 2011 vs.
	2011			2011			2010			March 2011		June 2010
Assets
Cash and Due From Banks	$	56,679		$	49,242		$	69,221		15.10	%	-18.12	%
Interest Earning Deposits with Banks		129,420			17,042			268,187		659.42	%	-51.74	%
Fed Funds Sold		1,197			417			781		187.05	%	53.27	%
Securities
Trading Assets		8,539			8,521			7,163		0.21	%	19.21	%
Securities Available for Sale		305,895			341,362			482,989		-10.39	%	-36.67	%
Securities Held to Maturity		233,109			239,305			103,463		-2.59	%	125.31	%
Total Securities		547,543			589,188			593,615		-7.07	%	-7.76	%
Loans Held for Sale		12,255			8,643			16,365		41.79	%	-25.11	%
Loans
Commercial and Industrial		568,022			508,839			427,398		11.63	%	32.90	%
Commercial Real Estate		1,801,026			1,770,324			1,646,204		1.73	%	9.40	%
Commercial Construction		130,303			123,428			158,036		5.57	%	-17.55	%
Small Business		78,905			80,817			80,965		-2.37	%	-2.54	%
Total Commercial		2,578,256			2,483,408			2,312,603		3.82	%	11.49	%
Residential Real Estate		454,597			462,110			525,062		-1.63	%	-13.42	%
Residential Construction		6,404			3,256			4,594		96.68	%	39.40	%
Consumer - Home Equity		632,735			619,727			498,789		2.10	%	26.85	%
Total Consumer Real Estate		1,093,736			1,085,093			1,028,445		0.80	%	6.35	%
Total Other Consumer		53,239			59,873			87,864		-11.08	%	-39.41	%
Total Loans		3,725,231			3,628,374			3,428,912		2.67	%	8.64	%
Less - Allowance for Loan Losses		(46,637	)		(46,444	)		(45,291	)	0.42	%	2.97	%
Net Loans		3,678,594			3,581,930			3,383,621		2.70	%	8.72	%
Federal Home Loan Bank Stock		35,854			35,854			35,854		0.00	%	0.00	%
Bank Premises and Equipment		46,368			46,481			45,089		-0.24	%	2.84	%
Goodwill and Core Deposit Intangible		141,489			141,951			142,888		-0.33	%	-0.98	%
Other Assets		193,544			175,035			185,354		10.57	%	4.42	%
Total Assets	$	4,842,943		$	4,645,783		$	4,740,975		4.24	%	2.15	%
Liabilities and Stockholders' Equity
Deposits
Demand Deposits	$	913,960		$	837,705		$	789,019		9.10	%	15.83	%
Savings and Interest Checking Accounts		1,479,365			1,348,242			1,305,515		9.73	%	13.32	%
Money Market		722,234			724,203			760,471		-0.27	%	-5.03	%
Time Certificates of Deposit		671,003			674,776			824,868		-0.56	%	-18.65	%
Total Deposits		3,786,562			3,584,926			3,679,873		5.62	%	2.90	%
Borrowings
Federal Home Loan Bank Borrowings		258,012			277,285			302,677		-6.95	%	-14.76	%
Fed Funds Purchased and Assets Sold
Under Repurchase Agreements		183,166			184,738			178,476		-0.85	%	2.63	%
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		2,635			2,838			3,136		-7.15	%	-15.98	%
Total Borrowings		535,670			556,718			576,146		-3.78	%	-7.03	%
Total Deposits and Borrowings		4,322,232			4,141,644			4,256,019		4.36	%	1.56	%
Other Liabilities		65,009			56,154			62,894		15.77	%	3.36	%
Stockholders' Equity
Common Stock		212			212			210		0.00	%	0.95	%
Additional Paid in Capital		231,987			230,581			225,792		0.61	%	2.74	%
Retained Earnings		224,488			217,443			194,587		3.24	%	15.37	%
Accumulated Other Comprehensive Income/(Loss), Net of Tax		(985	)		(251	)		1,473		292.43	%	-166.87	%
Total Stockholders' Equity		455,702			447,985			422,062		1.72	%	7.97	%
Total Liabilities and Stockholders' Equity	$	4,842,943		$	4,645,783		$	4,740,975		4.24	%	2.15	%

INDEPENDENT BANK CORP. FINANCIAL SUMMARY
(Unaudited - Dollars in Thousands, Except Per Share Data)
CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended
										% Change		% Change
	June 30,			March 31,			June 30,			June 2011 vs.		June 2011 vs.
	2011			2011			2010			March 2011		June 2010
INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	14		$	17		$	108		-17.65	%	-87.04	%
Interest and Dividends on Securities		5,452			5,606			6,316		-2.75	%	-13.68	%
Interest on Loans		43,938			43,216			44,785		1.67	%	-1.89	%
Interest on Loans Held for Sale		70			119			110		-41.18	%	-36.36	%
Total Interest Income		49,474			48,958			51,319		1.05	%	-3.60	%
INTEREST EXPENSE
Interest on Deposits		3,544			3,485			5,485		1.69	%	-35.39	%
Interest on Borrowed Funds		3,854			4,000			4,667		-3.65	%	-17.42	%
Total Interest Expense		7,398			7,485			10,152		-1.16	%	-27.13	%
Net Interest Income		42,076			41,473			41,167		1.45	%	2.21	%
Less - Provision for Loan Losses		3,482			2,200			6,931		58.27	%	-49.76	%
Net Interest Income after Provision for Loan Losses		38,594			39,273			34,236		-1.73	%	12.73	%
NON-INTEREST INCOME
Service Charges on Deposit Accounts		4,192			3,959			3,257		5.89	%	28.71	%
Interchange and ATM Fees		1,974			1,702			1,258		15.98	%	56.92	%
Investment Management		3,603			3,216			3,189		12.03	%	12.98	%
Mortgage Banking Income		683			1,047			622		-34.77	%	9.81	%
BOLI Income		860			706			731		21.81	%	17.65	%
Net Gain/(Loss) on Sale of Securities		723			-			481		100.00	%	50.31	%
Gross Change on Write-Down of Certain Investments to Fair Value		170			249			(63	)	-31.73	%	-369.84	%
Less: Non-Credit Related Other-Than-Temporary Impairment		(306	)		(289	)		(21	)	5.88	%	1357.14	%
Net Loss on Write-Down of Certain Investments to Fair Value		(136	)		(40	)		(84	)	240.00	%	61.90	%
Other Non-Interest Income		1,575			2,008			1,484		-21.56	%	6.13	%
Total Non-Interest Income		13,474			12,598			10,938		6.95	%	23.19	%
NON-INTEREST EXPENSE
Salaries and Employee Benefits		19,762			20,252			18,406		-2.42	%	7.37	%
Occupancy and Equipment Expenses		4,263			4,575			4,094		-6.82	%	4.13	%
Data Processing and Facilities Management		1,038			1,638			1,497		-36.63	%	-30.66	%
FDIC Assessment		778			1,291			1,271		-39.74	%	-38.79	%
Other Non-Interest Expense		11,015			8,726			9,661		26.23	%	14.02	%
Total Non-Interest Expense		36,856			36,482			34,929		1.03	%	5.52	%
INCOME BEFORE INCOME TAXES		15,212			15,389			10,245		-1.15	%	48.48	%
PROVISION FOR INCOME TAXES		4,092			4,201			2,215		-2.59	%	84.74	%
NET INCOME	$	11,120		$	11,188		$	8,030		-0.61	%	38.48	%
BASIC EARNINGS PER SHARE	$	0.52		$	0.53		$	0.38		-1.89	%	36.84	%
DILUTED EARNINGS PER SHARE	$	0.52		$	0.52		$	0.38		0.00	%	36.84	%
BASIC AVERAGE SHARES		21,441,864			21,298,257			20,964,706
DILUTED AVERAGE SHARES		21,481,023			21,344,339			21,055,645
PERFORMANCE RATIOS:
Net Interest Margin (FTE)		3.97	%		4.02	%		3.96	%
Return on Average Assets		0.95	%		0.98	%		0.70	%
Return on Average Common Equity		9.78	%		10.24	%		7.60	%
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP)	$	11,120		$	11,188		$	8,030		-0.61	%	38.48	%
Non-Interest Income Components
Less - Gain on Sale of Securities, net of tax		(428	)		-			(285	)
Non-Interest Expense Components
Add - Fair Value Mark on a Terminated Hedging Relationship		-			-			328
NET OPERATING EARNINGS	$	10,692		$	11,188		$	8,073		-4.43	%	32.44	%
Diluted Earnings Per Share, on an Operating Basis	$	0.50		$	0.52		$	0.38		-3.85	%	31.58	%

CONSOLIDATED STATEMENTS OF INCOME
	Six Months Ended						% Change
	June 30,			June 30,			June 2011 vs.
	2011			2010			June 2010
INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	31		$	132		-76.52	%
Interest and Dividends on Securities		11,058			12,987		-14.85	%
Interest on Loans		87,154			88,832		-1.89	%
Interest on Loans Held for Sale		189			216		-12.50	%
Total Interest Income		98,432			102,167		-3.66	%
INTEREST EXPENSE
Interest on Deposits		7,029			11,424		-38.47	%
Interest on Borrowed Funds		7,854			9,366		-16.14	%
Total Interest Expense		14,883			20,790		-28.41	%
Net Interest Income		83,549			81,377		2.67	%
Less - Provision for Loan Losses		5,682			11,580		-50.93	%
Net Interest Income after Provision for Loan Losses		77,867			69,797		11.56	%
NON-INTEREST INCOME
Service Charges on Deposit Accounts		8,151			6,388		27.60	%
Interchange and ATM Fees		3,676			2,348		56.56	%
Investment Management		6,819			5,918		15.22	%
Mortgage Banking Income		1,730			1,622		6.66	%
BOLI Income		1,566			1,452		7.85	%
Net Gain on Sale of Securities		723			481		50.31	%
Gross Change on Write-Down of Certain Investments to Fair Value		419			118		255.08	%
Less: Non-Credit Related Other-Than-Temporary Impairment		(595	)		(380	)	56.58	%
Net Loss on Write-Down of Certain Investments to Fair Value		(176	)		(262	)	-32.82	%
Other Non-Interest Income		3,583			3,041		17.82	%
Total Non-Interest Income		26,072			20,988		24.22	%
NON-INTEREST EXPENSE
Salaries and Employee Benefits		40,014			36,869		8.53	%
Occupancy and Equipment Expenses		8,838			8,229		7.40	%
Data Processing and Facilities Management		2,676			2,791		-4.12	%
FDIC Assessment		2,069			2,592		-20.18	%
Other Non-Interest Expense		19,741			18,037		9.45	%
Total Non-Interest Expense		73,338			68,518		7.03	%
INCOME BEFORE INCOME TAXES		30,601			22,267		37.43	%
PROVISION FOR INCOME TAXES		8,293			5,010		65.53	%
NET INCOME	$	22,308		$	17,257		29.27	%
BASIC EARNINGS PER SHARE	$	1.04		$	0.82		26.83	%
DILUTED EARNINGS PER SHARE	$	1.04		$	0.82		26.83	%
BASIC AVERAGE SHARES		21,370,457			20,951,264
DILUTED AVERAGE SHARES		21,414,232			21,034,553
PERFORMANCE RATIOS:
Net Interest Margin (FTE)		3.99	%		4.02	%
Return on Average Assets		0.96	%		0.77	%
Return on Average Common Equity		10.01	%		8.26	%
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP)	$	22,308		$	17,257		29.27	%
Non-Interest Income Components
Less - Net Gain on Sale of Securities, net of tax		(428	)		(285	)
Non-Interest Expense Components
Add - Fair Value Mark on a Terminated Hedging Relationship		-			328
NET OPERATING EARNINGS	$	21,880		$	17,300		26.47	%
Diluted Earnings Per Share, on an Operating Basis	$	1.02		$	0.82		24.39	%

INDEPENDENT BANK CORP. FINANCIAL SUMMARY
(Unaudited - Dollars in Thousands, Except Per Share Data)
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
	Three Months Ended															Six Months Ended
										% Change			% Change									% Change
	June 30,			March 31,			June 30,			June 2011 vs.			June 2011 vs.			June 30,			June 30,			June 2011 vs.
	2011			2011			2010			March 2011			June 2010			2011			2010			June 2010
Non-Interest Income GAAP	$	13,474		$	12,598		$	10,938			6.95	%		23.19	%	$	26,072		$	20,988			24.22	%
Less - Net Gain on Sale of Securities		(723	)		-			(481	)		n/a			50.31	%		(723	)		(481	)		50.31	%
Add - Other-Than-Temporary-Impairment on Securities		136			40			84			240.00	%		61.90	%		176			262			-32.82	%
Non-Interest Income as Adjusted	$	12,887		$	12,638		$	10,541			1.97	%		22.26	%	$	25,525		$	20,769			22.90	%
Non-Interest Expense GAAP	$	36,856		$	36,482		$	34,929			1.03	%		5.52	%	$	73,338		$	68,518			7.03	%
Less - Fair Value Mark on a Terminated Hedging Relationship		-			-			(554	)		n/a			n/a			-			(554	)		-100.00	%
Non-Interest Expense as Adjusted	$	36,856		$	36,482		$	34,375			1.03	%		7.22	%	$	73,338		$	67,964			7.91	%
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 2011 and 2010 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
	At									For the Three Months Ending									For the Six Months Ending
	June 30,			March 31,			June 30,			June 30,			March 31,			June 30,			June 30,			June 30,
	2011			2011			2010			2011			2011			2010			2011			2010
	(Dollars in Thousands)
Nonperforming Loans
Commercial & Industrial Loans	$	2,674		$	3,011		$	5,083		$	749		$	686		$	1,816		$	1,435		$	2,343
Small Business Loans		1,130			617			728			292			238			801			530			1,052
Commercial Real Estate Loans		7,007			9,229			8,007			1,236			602			3,520			1,838			3,718
Residential Real Estate Loans		8,546			7,299			8,012			280			122			293			402			428
Installment Loans - Home Equity		1,977			2,589			1,218			488			74			234			562			468
Installment Loans - Other		592			652			630			244			289			254			533			642
Total Nonperforming Loans / Total Net Charge-offs	$	21,926		$	23,397		$	23,678		$	3,289		$	2,011		$	6,918		$	5,300		$	8,651
Non-Accrual Securities		1,587			1,054			969
Other Assets in Possession		40			59			79
Other Real Estate Owned		7,410			9,346			7,357
Nonperforming Assets	$	30,963		$	33,856		$	32,083
Nonperforming Loans/Gross Loans		0.59	%		0.64	%		0.69	%
Allowance for Loan Losses/Nonperforming Loans		212.70	%		198.50	%		191.28	%
Gross Loans/Total Deposits		98.38	%		101.21	%		93.18	%
Allowance for Loan Losses/Total Loans		1.25	%		1.28	%		1.32	%
Net charge-offs to average loans (quarter annualized)											0.36	%		0.23	%		0.81	%
Net charge-offs to average loans (year-to-date annualized)																				0.29	%		0.51	%

	For the			For the
	Three Months Ending			Three Months Ending
	June 30,			March 31,
Nonperforming Assets Reconciliation	2011			2011
Nonperforming Assets Beginning Balance	$	33,856		$	31,493
New to Nonperforming		9,085			9,046
Loans Charged-Off		(3,587	)		(2,484	)
Loans Paid-Off		(5,130	)		(1,934	)
Loans Transferred to Other Real Estate Owned/Other Assets		(1,172	)		(3,061	)
Loans Restored to Accrual Status		(638	)		(1,116	)
New to Other Real Estate Owned		1,172			3,061
Sale of Other Real Estate Owned		(3,214	)		(457	)
Other		591			(692	)
Nonperforming Assets Ending Balance	$	30,963		$	33,856
	June 30,			March 31,			June 30,
Financial Ratios	2011			2010			2010
Book Value per Common Share	$	21.24		$	20.93		$	19.91
Tangible Common Book Value per Share (proforma to include the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP	$	15.60		$	15.26		$	14.14
Tangible Common Capital/Tangible Assets		6.68	%		6.79	%		6.07	%
Tangible Common Capital/Tangible Asset (proforma to include the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP		7.09	%		7.22	%		6.49	%
Capital Adequacy
Tier one leverage capital ratio (1)		8.54	%		8.48	%		7.86	%
Tier one common ratio (1)		8.87	%		8.83	%		8.24	%
(1) Estimated number for June 30, 2011

INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA	Three Months Ended
	June 30, 2011						March 31, 2011						June 30, 2010
			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	$	23,049	$	14	0.24	%	$	27,652	$	17	0.25	%	$	188,998	$	108	0.23	%
Securities:
Trading Assets		8,600		71	3.31	%		8,124		63	3.15	%		7,367		62	3.38	%
Taxable Investment Securities		556,301		5,286	3.81	%		568,933		5,430	3.87	%		557,554		6,067	4.36	%
Non-taxable Investment Securities (1)		8,610		161	7.50	%		10,175		191	7.61	%		17,718		316	7.15	%
Total Securities:		573,511		5,518	3.86	%		587,232		5,684	3.93	%		582,639		6,445	4.44	%
Loans Held for Sale		8,659		70	3.24	%		14,190		119	3.40	%		7,656		110	5.76	%
Loans
Commercial and Industrial		535,764		5,710	4.27	%		500,202		5,401	4.38	%		401,430		4,726	4.72	%
Commercial Real Estate		1,787,364		23,618	5.30	%		1,749,292		23,197	5.38	%		1,645,452		23,839	5.81	%
Commercial Construction		128,747		1,482	4.62	%		123,501		1,410	4.63	%		166,040		2,098	5.07	%
Small Business		79,834		1,151	5.78	%		80,286		1,179	5.96	%		81,319		1,202	5.93	%
Total Commercial		2,531,709		31,961	5.06	%		2,453,281		31,187	5.16	%		2,294,241		31,865	5.57	%
Residential Real Estate		457,651		5,167	4.53	%		468,146		5,399	4.68	%		537,475		6,485	4.84	%
Residential Construction		4,535		55	4.86	%		3,712		44	4.81	%		7,507		95	5.08	%
Consumer - Home Equity		627,832		5,920	3.78	%		601,624		5,622	3.79	%		490,197		4,704	3.85	%
Total Consumer Real Estate		1,090,018		11,142	4.10	%		1,073,482		11,065	4.18	%		1,035,179		11,284	4.37	%
Total Other Consumer		56,292		1,098	7.82	%		64,066		1,229	7.78	%		92,681		1,784	7.72	%
Total Loans		3,678,019		44,201	4.82	%		3,590,829		43,481	4.91	%		3,422,101		44,933	5.27	%
Total Interest-Earning Assets	$	4,283,238	$	49,803	4.66	%	$	4,219,903	$	49,301	4.74	%	$	4,201,394	$	51,596	4.93	%
Cash and Due from Banks		56,122						52,023						71,300
Federal Home Loan Bank Stock		35,854						35,854						35,854
Other Assets		322,033						320,658						305,041
Total Assets	$	4,697,247					$	4,628,438					$	4,613,589
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	1,365,892	$	850	0.25	%	$	1,289,201	$	760	0.24	%	$	1,182,343	$	1,297	0.44	%
Money Market		723,345		815	0.45	%		723,946		785	0.44	%		760,240		1,320	0.70	%
Time Deposits		669,941		1,879	1.12	%		672,893		1,940	1.17	%		842,539		2,868	1.37	%
Total interest-bearing deposits:	$	2,759,178	$	3,544	0.52	%	$	2,686,040	$	3,485	0.53	%	$	2,785,122	$	5,485	0.79	%
Borrowings:
Federal Home Loan Bank Borrowings	$	276,984	$	1,743	2.52	%	$	335,457	$	1,910	2.31	%	$	324,168	$	2,392	2.96	%
Federal Funds Purchased and Assets Sold
Under Repurchase Agreement		181,631		657	1.45	%		178,185		651	1.48	%		182,810		821	1.80	%
Junior Subordinated Debentures		61,857		913	5.92	%		61,857		904	5.93	%		61,857		913	5.92	%
Subordinated Debentures		30,000		541	7.23	%		30,000		535	7.23	%		30,000		541	7.23	%
Other Borrowings		2,541		-	0.00	%		2,761		-	0.00	%		3,148		-	0.00	%
Total Borrowings:		553,013		3,854	2.80	%		608,260		4,000	2.67	%		601,983		4,667	3.11	%
Total Interest-Bearing Liabilities	$	3,312,191	$	7,398	0.90	%	$	3,294,300	$	7,485	0.92	%	$	3,387,105	$	10,152	1.20	%
Demand Deposits		870,585						831,032						752,622
Other Liabilities		58,621						59,791						49,870
Total Liabilities	$	4,241,397					$	4,185,123					$	4,189,597
Stockholders' Equity		455,850						443,315						423,992
Total Liabilities and Stockholders' Equity	$	4,697,247					$	4,628,438					$	4,613,589
Net Interest Income			$	42,405					$	41,816					$	41,444
Interest Rate Spread (2)					3.76	%					3.82	%					3.72	%
Net Interest Margin (3)					3.97	%					4.02	%					3.96	%
Supplemental Information:
Total Deposits, including Demand Deposits	$	3,629,763	$	3,544			$	3,517,072	$	3,485			$	3,537,744	$	5,485
Cost of Total Deposits					0.39	%					0.40	%					0.62	%
Total Funding Liabilities, including Demand Deposits	$	4,182,776	$	7,398			$	4,125,332	$	7,485			$	4,139,727	$	10,152
Cost of Total Funding Liabilities					0.71	%					0.74	%					0.98	%
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $329, 343, and $277 for the three months ended June 30, 2011, March 31, 2011, and June 30, 2010, respectively.
(2) Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(3) Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

	Six Months Ended
	June 30, 2011						June 30, 2010
			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	$	25,338	$	31	0.25	%	$	106,529	$	132	0.25	%
Securities:
Trading Assets		8,363		134	3.23	%		7,085		122	3.47	%
Taxable Investment Securities		562,582		10,717	3.84	%		563,021		12,476	4.47	%
Non-taxable Investment Securities (1)		9,388		351	7.53	%		18,411		658	7.21	%
Total Securities:		580,333		11,202	3.89	%		588,517		13,256	4.54	%
Loans Held for Sale		11,409		189	3.34	%		7,392		216	5.89	%
Loans
Commercial and Industrial		518,081		11,111	4.32	%		389,708		8,974	4.64	%
Commercial Real Estate		1,768,433		46,815	5.34	%		1,638,238		47,097	5.80	%
Commercial Construction		126,139		2,892	4.62	%		168,773		4,174	4.99	%
Small Business		80,058		2,329	5.87	%		81,894		2,419	5.96	%
Total Commercial		2,492,711		63,147	5.11	%		2,278,613		62,664	5.55	%
Residential Real Estate		462,870		10,567	4.60	%		542,974		13,250	4.92	%
Residential Construction		4,126		98	4.79	%		8,300		213	5.18	%
Consumer - Home Equity		614,800		11,542	3.79	%		484,293		9,226	3.84	%
Total Consumer Real Estate		1,081,796		22,207	4.14	%		1,035,567		22,689	4.42	%
Total Other Consumer		60,157		2,328	7.80	%		98,875		3,796	7.74	%
Total Loans		3,634,664		87,682	4.86	%		3,413,055		89,149	5.27	%
Total Interest-Earning Assets	$	4,251,744	$	99,104	4.70	%	$	4,115,493	$	102,753	5.03	%
Cash and Due from Banks		54,084						68,867
Federal Home Loan Bank Stock		35,854						35,854
Other Assets		321,350						304,622
Total Assets	$	4,663,032					$	4,524,836
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	1,327,759	$	1,610	0.24	%	$	1,119,598	$	2,481	0.45	%
Money Market		723,644		1,600	0.45	%		731,475		2,641	0.73	%
Time Deposits		671,409		3,819	1.15	%		865,864		6,302	1.47	%
Total interest-bearing deposits:	$	2,722,812	$	7,029	0.52	%	$	2,716,937	$	11,424	0.85	%
Borrowings:
Federal Home Loan Bank Borrowings	$	306,059	$	3,653	2.41	%	$	332,190	$	4,823	2.93	%
Federal Funds Purchased and Assets Sold
Under Repurchase Agreement		179,918		1,308	1.47	%		183,712		1,651	1.81	%
Junior Subordinated Debentures		61,857		1,816	5.92	%		61,857		1,815	5.92	%
Subordinated Debentures		30,000		1,077	7.24	%		30,000		1,077	7.24	%
Other Borrowings		2,650		-	0.00	%		2,756		-	0.00	%
Total Borrowings:		580,484		7,854	2.73	%		610,515		9,366	3.09	%
Total Interest-Bearing Liabilities	$	3,303,296	$	14,883	0.91	%	$	3,327,452	$	20,790	1.26	%
Demand Deposits		850,918						727,865
Other Liabilities		59,201						48,453
Total Liabilities	$	4,213,415					$	4,103,770
Stockholders' Equity		449,617						421,066
Total Liabilities and Stockholders' Equity	$	4,663,032					$	4,524,836
Net Interest Income			$	84,221					$	81,963
Interest Rate Spread (2)					3.79	%					3.77	%
Net Interest Margin (3)					3.99	%					4.02	%
Supplemental Information:
Total Deposits, including Demand Deposits	$	3,573,730	$	7,029			$	3,444,802	$	11,424
Cost of Total Deposits					0.40	%					0.67	%
Total Funding Liabilities, including Demand Deposits	$	4,154,214	$	14,883			$	4,055,317	$	20,790
Cost of Total Funding Liabilities					0.72	%					1.03	%
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $672 and $586 for the six months ended June 30, 2011, and June 30, 2010, 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