Independent Bank (INDB) 8-K Independent Bank Corp. Reports Third Quarter Net Income of $12.0 Million

Exhibit 99.1

Independent Bank Corp. Reports Third Quarter Net Income of $12.0 Million

Continued Strong Performance Leads to 8% Increase in Earnings Per Share

ROCKLAND, Mass.--(BUSINESS WIRE)--October 20, 2011--Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced net income of $12.0 million for the third quarter of 2011, or $0.56 on a diluted earnings per share basis. The results of the third quarter 2011 represent increases of $0.04 or 7.7% on a diluted per share basis as compared to the linked quarter results and $0.03 or 5.7% versus prior year results. Net income for the year-to-date period improved by 20.7%, or 18.5% on a diluted earnings per share basis as compared to the year ago period.

Christopher Oddleifson, the President and Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company, stated: “Despite the challenging operating environment, we continue to deliver quality results. Our strong focus on the customer is a winning strategy, as consumers and businesses demonstrate that they value Rockland Trust’s knowledgeable, accessible bankers; innovative products and services; and fair, transparent pricing. Our balance sheet remains in excellent shape with solid credit quality and capital levels, and the recent expansion of our commercial lending and wealth management franchises will help us sustain our momentum.”

BALANCE SHEET

Total assets of $4.9 billion at September 30, 2011 are up $56.8 million from the prior quarter.

Total loans remained consistent at $3.7 billion at September 30, 2011, compared with the prior quarter and have grown by 6.3% since December 31, 2010 on an annualized basis. The economic uncertainty combined with a seasonally slow summer produced flat loan growth, but the Company’s pipeline continues to remain robust, as companies continue to find the value proposition of high service and flexible solutions, offered by the Company, an attractive alternative to the national banks.

Deposits remained consistent at $3.8 billion at September 30, 2011, as compared to the prior quarter. Core deposits increased by $30.5 million to $3.1 billion and grew to 83.1% of total deposits. The Company’s cost of deposits continued its steady decline to 0.37% for the quarter. The Company is experiencing robust organic household growth as seen in the core deposit growth of 10.4% compared to the year ago period.

The securities portfolio of $521.6 million decreased by $25.9 million compared to the linked quarter primarily due to pay-downs and reduced reinvestment activity due to unattractive yields.

Stockholders’ equity at September 30, 2011 increased by 1.2% to $461.1 million as compared to the balance at June 30, 2011. The Tier 1 leverage capital ratio at September 30, 2011 increased slightly to 8.59% compared with prior quarter at 8.54%, maintaining the Company’s well-capitalized position.

NET INTEREST INCOME

Net interest income of $41.7 million was down slightly as compared to the prior quarter primarily due to the impact of the prolonged low rate environment. The net interest margin in the third quarter of 2011 declined to 3.84%, compared to 3.97%, in the linked quarter, due to the continued reduction in interest rates driven by the global economic conditions and a modestly asset sensitive interest rate position.

NON-INTEREST INCOME

The Company recorded non-interest income of $12.3 million during the third quarter of 2011 which represents a $1.2 million, or 8.6%, decrease from the prior quarter. Significant changes in non-interest income included the following:

• Investment management revenue decreased by $112,000, or 3.1%, reflective of lower stock market valuations. Assets under management in the investment management division were $1.6 billion at September 30, 2011, a decrease of $109.7 million compared to June 30, 2011.
• Non-interest income in the second quarter benefited from the sale of securities, resulting in a gain of $723,000. There were no gains on sale of securities during the third quarter of the year.
• Mortgage banking income increased by $224,000, or 32.8%, reflective of increased volumes of mortgage originations, due to the lower rate environment.
• Other non-interest income decreased by $615,000, or 39.1%, mainly due to higher unrealized losses on the Company’s trading assets of $569,000.

NON-INTEREST EXPENSE

The Company recorded non-interest expense of $35.4 million in the third quarter of 2011, a decrease of $1.4 million, or 3.9%, when compared to the quarter ended June 30, 2011. Significant changes in non-interest expense included the following:

• Salary and employee benefits increased $806,000, or 4.1% primarily related to incremental hiring and expansion of the commercial banking business to support growth initiatives.
• Other non-interest expense decreased by $2.1 million, or 19.2%, which is primarily attributable to reductions in credit-related loan workout expenses and OREO property write-downs of $667,000, and decreases in advertising expense of $903,000.

The Company generated a return on average assets and a return on average common equity in the third quarter of 2011 of 0.99% and 10.28%, respectively, as compared to 0.95% and 9.78% for the quarter ended June 30, 2011.

ASSET QUALITY

The Company continued to maintain a solid credit profile during the quarter. Net charge-offs decreased to $1.4 million, or 0.15%, on an annualized basis of average loans for the third quarter of 2011 compared to $3.3 million, or 0.36%, for the quarter ended June 30, 2011. The provision for loan losses was $2.0 million and $3.5 million for the quarters ended September 30, 2011 and June 30, 2011, respectively. Nonperforming loans increased to $26.6 million, or 0.72% of total loans at September 30, 2011, from $21.9 million, or 0.59% of total loans at June 30, 2011. Delinquency as a percentage of loans increased to 0.89% at September 30, 2011 compared to 0.83% at June 30, 2011.

The allowance for loan losses was $47.3 million at September 30, 2011, compared with the prior quarter level of $46.6 million. The Company’s allowance for loan losses was 1.27%, as a percentage of total loans at September 30, 2011, compared to 1.25%, at June 30, 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 third quarter earnings at 10:00 a.m. Eastern Time on Friday, October 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: 10005109. The webcast replay will be available until October 21, 2012.

Independent Bank Corp., which has Rockland Trust Company as a wholly-owned bank subsidiary, has $4.9 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. 2011 vs.		Sept. 2011 vs.
	2011			2011			2010			June 2011		Sept. 2010
Assets
Cash and Due From Banks	$	53,821		$	56,679		$	54,207		-5.04	%	-0.71	%
Interest Earning Deposits with Banks		180,352			129,420			222,392		39.35	%	-18.90	%
Fed Funds Sold		667			1,197			526		-44.28	%	26.81	%
Securities
Trading Assets		7,984			8,539			7,418		-6.50	%	7.63	%
Securities Available for Sale		293,073			305,895			436,887		-4.19	%	-32.92	%
Securities Held to Maturity		220,552			233,109			180,623		-5.39	%	22.11	%
Total Securities		521,609			547,543			624,928		-4.74	%	-16.53	%
Loans Held for Sale		22,156			12,255			21,321		80.79	%	3.92	%
Loans
Commercial and Industrial		567,552			568,022			438,873		-0.08	%	29.32	%
Commercial Real Estate		1,815,063			1,801,026			1,641,356		0.78	%	10.58	%
Commercial Construction		119,309			130,303			144,109		-8.44	%	-17.21	%
Small Business		77,230			78,905			79,897		-2.12	%	-3.34	%
Total Commercial		2,579,154			2,578,256			2,304,235		0.03	%	11.93	%
Residential Real Estate		441,600			454,597			503,471		-2.86	%	-12.29	%
Residential Construction		6,306			6,404			5,449		-1.53	%	15.73	%
Consumer - Home Equity		648,475			632,735			517,962		2.49	%	25.20	%
Total Consumer Real Estate		1,096,381			1,093,736			1,026,882		0.24	%	6.77	%
Total Other Consumer		47,590			53,239			76,926		-10.61	%	-38.14	%
Total Loans		3,723,125			3,725,231			3,408,043		-0.06	%	9.25	%
Less - Allowance for Loan Losses		(47,278	)		(46,637	)		(45,619	)	1.37	%	3.64	%
Net Loans		3,675,847			3,678,594			3,362,424		-0.07	%	9.32	%
Federal Home Loan Bank Stock		35,854			35,854			35,854		0.00	%	0.00	%
Bank Premises and Equipment		47,646			46,368			45,420		2.76	%	4.90	%
Goodwill and Core Deposit Intangible		141,103			141,489			142,422		-0.27	%	-0.93	%
Other Assets		220,711			193,544			194,297		14.04	%	13.59	%
Total Assets	$	4,899,766		$	4,842,943		$	4,703,791		1.17	%	4.17	%
Liabilities and Stockholders' Equity
Deposits
Demand Deposits	$	977,323		$	913,960		$	805,491		6.93	%	21.33	%
Savings and Interest Checking Accounts		1,424,060			1,479,365			1,314,273		-3.74	%	8.35	%
Money Market		744,682			722,234			731,091		3.11	%	1.86	%
Time Certificates of Deposit		641,468			671,003			766,303		-4.40	%	-16.29	%
Total Deposits		3,787,533			3,786,562			3,617,158		0.03	%	4.71	%
Borrowings
Federal Home Loan Bank Borrowings		257,873			258,012			302,545		-0.05	%	-14.77	%
Fed Funds Purchased and Assets Sold
Under Repurchase Agreements		216,331			183,166			180,326		18.11	%	19.97	%
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		2,203			2,635			2,701		-16.39	%	-18.44	%
Total Borrowings		568,264			535,670			577,429		6.08	%	-1.59	%
Total Deposits and Borrowings		4,355,797			4,322,232			4,194,587		0.78	%	3.84	%
Other Liabilities		82,903			65,009			83,543		27.53	%	-0.77	%
Stockholders' Equity
Common Stock		212			212			210		0.00	%	0.95	%
Additional Paid in Capital		232,845			231,987			226,255		0.37	%	2.91	%
Retained Earnings		232,369			224,488			201,950		3.51	%	15.06	%
Accumulated Other Comprehensive Income/(Loss), Net of Tax		(4,360	)		(985	)		(2,754	)	342.64	%	58.32	%
Total Stockholders' Equity		461,066			455,702			425,661		1.18	%	8.32	%
Total Liabilities and Stockholders' Equity	$	4,899,766		$	4,842,943		$	4,703,791		1.17	%	4.17	%

CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended
										% Change		% Change
	September 30,			June 30,			September 30,			Sept. 2011 vs.		Sept. 2011 vs.
	2011			2011			2010			June 2011		Sept. 2010
INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	49		$	14		$	135		250.00	%	-63.70	%
Interest and Dividends on Securities		5,007			5,452			5,843		-8.16	%	-14.31	%
Interest on Loans		43,763			43,938			44,436		-0.40	%	-1.51	%
Interest on Loans Held for Sale		116			70			174		65.71	%	-33.33	%
Total Interest Income		48,935			49,474			50,588		-1.09	%	-3.27	%
INTEREST EXPENSE
Interest on Deposits		3,419			3,544			4,801		-3.53	%	-28.79	%
Interest on Borrowed Funds		3,842			3,854			4,590		-0.31	%	-16.30	%
Total Interest Expense		7,261			7,398			9,391		-1.85	%	-22.68	%
Net Interest Income		41,674			42,076			41,197		-0.96	%	1.16	%
Less - Provision for Loan Losses		2,000			3,482			3,500		-42.56	%	-42.86	%
Net Interest Income after Provision for Loan Losses		39,674			38,594			37,697		2.80	%	5.24	%
NON-INTEREST INCOME
Service Charges on Deposit Accounts		4,223			4,192			3,178		0.74	%	32.88	%
Interchange and ATM Fees		2,005			1,974			1,263		1.57	%	58.75	%
Investment Management		3,491			3,603			2,851		-3.11	%	22.45	%
Mortgage Banking Income		907			683			1,469		32.80	%	-38.26	%
BOLI Income		757			860			901		-11.98	%	-15.98	%
Net Gain/(Loss) on Sale of Securities		-			723			(22	)	100.00	%	-100.00	%
Gross Change on Write-Down of Certain Investments to Fair Value		(318	)		170			207		-287.06	%	-253.62	%
Less: Portion of Other-Than-Temporary Impairment Losses Recognized in Other Comprehensive Income		290			(306	)		(214	)	-194.77	%	-235.51	%
Net Loss on Write-Down of Certain Investments to Fair Value		(28	)		(136	)		(7	)	-79.41	%	300.00	%
Other Non-Interest Income		960			1,575			2,021		-39.05	%	-52.50	%
Total Non-Interest Income		12,315			13,474			11,654		-8.60	%	5.67	%
NON-INTEREST EXPENSE
Salaries and Employee Benefits		20,568			19,762			19,792		4.08	%	3.92	%
Occupancy and Equipment Expenses		4,107			4,263			3,839		-3.66	%	6.98	%
Data Processing and Facilities Management		1,152			1,038			1,404		10.98	%	-17.95	%
FDIC Assessment		691			778			1,352		-11.18	%	-48.89	%
Other Non-Interest Expense		8,905			11,015			8,153		-19.16	%	9.22	%
Total Non-Interest Expense		35,423			36,856			34,540		-3.89	%	2.56	%
INCOME BEFORE INCOME TAXES		16,566			15,212			14,811		8.90	%	11.85	%
PROVISION FOR INCOME TAXES		4,607			4,092			3,666		12.59	%	25.67	%
NET INCOME	$	11,959		$	11,120		$	11,145		7.54	%	7.30	%
BASIC EARNINGS PER SHARE	$	0.56		$	0.52		$	0.53		7.69	%	5.66	%
DILUTED EARNINGS PER SHARE	$	0.56		$	0.52		$	0.53		7.69	%	5.66	%
BASIC AVERAGE SHARES		21,463,714			21,441,864			20,981,372
DILUTED AVERAGE SHARES		21,476,791			21,481,023			21,034,165
PERFORMANCE RATIOS:
Net Interest Margin (FTE)		3.84	%		3.97	%		3.89	%
Return on Average Assets		0.99	%		0.95	%		0.95	%
Return on Average Common Equity		10.28	%		9.78	%		10.38	%
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP)	$	11,959		$	11,120		$	11,145		7.54	%	7.30	%
Non-Interest Income Components
(Less)/Add - (Gain)/Loss on Sale of Securities, net of tax		-			(428	)		13
NET OPERATING EARNINGS	$	11,959		$	10,692		$	11,158		11.85	%	7.18	%
Diluted Earnings Per Share, on an Operating Basis	$	0.56		$	0.50		$	0.53		12.00	%	5.66	%

CONSOLIDATED STATEMENTS OF INCOME
	Nine Months Ended						% Change
	September 30,			September 30,			Sept. 2011 vs.
	2011			2010			Sept. 2010
INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	80		$	267		-70.04	%
Interest and Dividends on Securities		16,065			18,830		-14.68	%
Interest on Loans		130,917			133,267		-1.76	%
Interest on Loans Held for Sale		305			390		-21.79	%
Total Interest Income		147,367			152,754		-3.53	%
INTEREST EXPENSE
Interest on Deposits		10,448			16,225		-35.61	%
Interest on Borrowed Funds		11,696			13,955		-16.19	%
Total Interest Expense		22,144			30,180		-26.63	%
Net Interest Income		125,223			122,574		2.16	%
Less - Provision for Loan Losses		7,682			15,081		-49.06	%
Net Interest Income after Provision for Loan Losses		117,541			107,493		9.35	%
NON-INTEREST INCOME
Service Charges on Deposit Accounts		12,374			9,566		29.35	%
Interchange and ATM Fees		5,681			3,611		57.32	%
Investment Management		10,310			8,768		17.59	%
Mortgage Banking Income		2,637			3,091		-14.69	%
BOLI Income		2,323			2,353		-1.27	%
Net Gain on Sale of Securities		723			458		57.86	%
Gross Change on Write-Down of Certain Investments to Fair Value		101			325		-68.92	%
Less: Portion of Other-Than-Temporary Impairment Losses Recognized in Other Comprehensive Income		(305	)		(594	)	-48.65	%
Net Loss on Write-Down of Certain Investments to Fair Value		(204	)		(269	)	-24.16	%
Other Non-Interest Income		4,542			5,065		-10.33	%
Total Non-Interest Income		38,386			32,643		17.59	%
NON-INTEREST EXPENSE
Salaries and Employee Benefits		60,582			56,662		6.92	%
Occupancy and Equipment Expenses		12,946			12,068		7.28	%
Data Processing and Facilities Management		3,828			4,195		-8.75	%
FDIC Assessment		2,760			3,944		-30.02	%
Other Non-Interest Expense		28,644			26,189		9.37	%
Total Non-Interest Expense		108,760			103,058		5.53	%
INCOME BEFORE INCOME TAXES		47,167			37,078		27.21	%
PROVISION FOR INCOME TAXES		12,900			8,676		48.69	%
NET INCOME	$	34,267		$	28,402		20.65	%
BASIC EARNINGS PER SHARE	$	1.60		$	1.35		18.52	%
DILUTED EARNINGS PER SHARE	$	1.60		$	1.35		18.52	%
BASIC AVERAGE SHARES		21,401,885			20,961,378
DILUTED AVERAGE SHARES		21,434,337			21,035,914
PERFORMANCE RATIOS:
Net Interest Margin (FTE)		3.94	%		3.97	%
Return on Average Assets		0.97	%		0.83	%
Return on Average Common Equity		10.10	%		8.98	%
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP)	$	34,267		$	28,402		20.65	%
Non-Interest Income Components
Less - Net Gain on Sale of Securities, net of tax		(428	)		(271	)
Non-Interest Expense Components
Add - Fair Value Mark on a Terminated Hedging Relationship		-			328
NET OPERATING EARNINGS	$	33,839		$	28,459		18.91	%
Diluted Earnings Per Share, on an Operating Basis	$	1.58		$	1.35		17.04	%

RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
	Three Months Ended															Nine Months Ended
										% Change			% Change									% Change
	September 30,			June 30,			September 30,			Sept. 2011 vs.			Sept. 2011 vs.			September 30,			September 30,			Sept. 2011 vs.
	2011			2011			2010			June 2011			Sept. 2010			2011			2010			Sept. 2010
Non-Interest Income GAAP	$	12,315		$	13,474		$	11,654			-8.60	%		5.67	%	$	38,386		$	32,643			17.59	%
(Less)/Add - Net (Gain)/Loss on Sale of Securities		-			(723	)		22			-100.00	%		-100.00	%		(723	)		(458	)		57.86	%
Add - Other-Than-Temporary-Impairment on Securities		28			136			7			-79.41	%		300.00	%		204			269			-24.16	%
Non-Interest Income as Adjusted	$	12,343		$	12,887		$	11,683			-4.22	%		5.65	%	$	37,867		$	32,454			16.68	%
Non-Interest Expense GAAP	$	35,423		$	36,856		$	34,540			-3.89	%		2.56	%	$	108,760		$	103,058			5.53	%
Less - Fair Value Mark on a Terminated Hedging Relationship		-			-			-			n/a			n/a			-			(554	)		-100.00	%
Non-Interest Expense as Adjusted	$	35,423		$	36,856		$	34,540			-3.89	%		2.56	%	$	108,760		$	102,504			6.10	%
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 Nine Months Ending
	September 30,			June 30,			September 30,			September 30,			June 30,			September 30,			September 30,			September 30,
	2011			2011			2010			2011			2011			2010			2011			2010
Nonperforming Loans
Commercial & Industrial Loans	$	1,836		$	2,674		$	4,417		$	672		$	749		$	1,429		$	2,107		$	3,772
Small Business Loans		1,032			1,130			909			368			292			515			898			1,567
Commercial Real Estate Loans		10,673			7,007			8,966			(281	)		1,236			851			1,557			4,569
Residential Real Estate Loans		10,420			8,546			7,863			88			280			24			490			452
Installment Loans - Home Equity		2,009			1,977			1,881			320			488			(38	)		882			430
Installment Loans - Other		655			592			651			192			244			391			725			1,033
Total Nonperforming Loans / Total Net Charge-offs	$	26,625		$	21,926		$	24,687		$	1,359		$	3,289		$	3,172		$	6,659		$	11,823
Non-Accrual Securities		1,255			1,587			1,017
Other Assets in Possession		270			40			74
Other Real Estate Owned		8,497			7,410			9,011
Nonperforming Assets	$	36,647		$	30,963		$	34,789
Nonperforming Loans/Gross Loans		0.72	%		0.59	%		0.72	%
Allowance for Loan Losses/Nonperforming Loans		177.57	%		212.70	%		184.79	%
Gross Loans/Total Deposits		98.30	%		98.38	%		94.22	%
Allowance for Loan Losses/Total Loans		1.27	%		1.25	%		1.34	%
Net charge-offs to average loans (quarter annualized)											0.15	%		0.36	%		0.37	%
Net charge-offs to average loans (year-to-date annualized)																				0.24	%		0.46	%
	For the			For the
	Three Months Ending			Three Months Ending
	September 30,			June 30,
Nonperforming Assets Reconciliation	2011			2011
Nonperforming Assets Beginning Balance	$	30,963		$	33,856
New to Nonperforming		12,937			9,085
Loans Charged-Off		(2,171	)		(3,587	)
Loans Paid-Off		(2,708	)		(5,130	)
Loans Transferred to Other Real Estate Owned/Other Assets		(1,458	)		(1,172	)
Loans Restored to Accrual Status		(1,415	)		(638	)
New to Other Real Estate Owned		1,458			1,172
Sale of Other Real Estate Owned		(300	)		(3,214	)
Other		(659	)		591
Nonperforming Assets Ending Balance	$	36,647		$	30,963
	September 30,			June 30,			September 30,
Financial Ratios	2011			2011			2010
Book Value per Common Share	$	21.48		$	21.24		$	20.08
Tangible Common Book Value per Share (proforma to include
the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP	$	15.85		$	15.60		$	14.34
Tangible Common Capital/Tangible Assets		6.72	%		6.68	%		6.21	%
Tangible Common Capital/Tangible Asset (proforma to include
the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP		7.12	%		7.09	%		6.64	%
Capital Adequacy
Tier one leverage capital ratio (1)		8.59	%		8.54	%		7.99	%
Tier one common ratio (1)		9.03	%		8.85	%		8.63	%

INDEPENDENT BANK CORP. SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA
(Unaudited - Dollars in Thousands)	Three Months Ended
	September 30, 2011						June 30, 2011						September 30, 2010
			Interest						Interest							Interest
	Average		Earned/		Yield/		Average		Earned/		Yield/			Average		Earned/		Yield/
	Balance		Paid		Rate		Balance		Paid		Rate			Balance		Paid		Rate
Interest-Earning Assets:
Interest Earning Deposits with Banks, Federal Funds Sold, and Short Term Investments	$	78,285	$	49	0.25	%	$	23,049	$	14	0.24	%		$	200,862	$	135	0.27	%
Securities:
Trading Assets		8,437		72	3.39	%		8,600		71	3.31	%			7,257		61	3.33	%
Taxable Investment Securities		526,509		4,856	3.66	%		556,301		5,286	3.81	%			561,240		5,618	3.97	%
Non-taxable Investment Securities (1)		7,104		133	7.43	%		8,610		161	7.50	%			15,953		277	6.89	%
Total Securities:		542,050		5,061	3.70	%		573,511		5,518	3.86	%			584,450		5,956	4.04	%
Loans Held for Sale		12,422		116	3.70	%		8,659		70	3.24	%			15,738		174	4.39	%
Loans
Commercial and Industrial		555,745		5,840	4.17	%		535,764		5,710	4.27	%			440,539		5,077	4.57	%
Commercial Real Estate		1,800,914		23,496	5.18	%		1,787,364		23,618	5.30	%			1,641,627		23,736	5.74	%
Commercial Construction		129,540		1,495	4.58	%		128,747		1,482	4.62	%			148,151		1,792	4.80	%
Small Business		77,850		1,141	5.81	%		79,834		1,151	5.78	%			80,740		1,221	6.00	%
Total Commercial		2,564,049		31,972	4.95	%		2,531,709		31,961	5.06	%			2,311,057		31,826	5.46	%
Residential Real Estate		450,225		4,915	4.33	%		457,651		5,167	4.53	%			525,003		6,174	4.67	%
Residential Construction		6,735		73	4.30	%		4,535		55	4.86	%			4,874		63	5.13	%
Consumer - Home Equity		638,991		6,103	3.79	%		627,832		5,920	3.78	%			507,308		4,914	3.84	%
Total Consumer Real Estate		1,095,951		11,091	4.01	%		1,090,018		11,142	4.10	%			1,037,185		11,151	4.27	%
Total Other Consumer		49,864		978	7.78	%		56,292		1,098	7.82	%			82,130		1,593	7.70	%
Total Loans:		3,709,864		44,041	4.71	%		3,678,019		44,201	4.82	%			3,430,372		44,570	5.15	%
Total Interest-Earning Assets	$	4,342,621	$	49,267	4.50	%	$	4,283,238	$	49,803	4.66	%		$	4,231,422	$	50,835	4.77	%
Cash and Due from Banks		57,103						56,122							55,357
Federal Home Loan Bank Stock		35,854						35,854							35,854
Other Assets		345,400						322,033							323,523
Total Assets	$	4,780,978					$	4,697,247						$	4,646,156
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	1,364,307	$	839	0.24	%	$	1,365,892	$	850	0.25	%		$	1,220,073	$	1,040	0.34	%
Money Market		723,736		763	0.42	%		723,345		815	0.45	%			757,154		1,058	0.55	%
Time Deposits		659,154		1,817	1.09	%		669,941		1,879	1.12	%			805,825		2,703	1.33	%
Total interest-bearing deposits:	$	2,747,197	$	3,419	0.49	%	$	2,759,178	$	3,544	0.52	%		$	2,783,052	$	4,801	0.68	%
Borrowings:
Federal Home Loan Bank Borrowings	$	261,681	$	1,814	2.75	%	$	276,984	$	1,743	2.52	%		$	302,610	$	2,372	3.11	%
Federal Funds Purchased and Assets Sold
Under Repurchase Agreement		201,588		559	1.10	%		181,631		657	1.45	%			179,983		740	1.63	%
Junior Subordinated Debentures		61,857		922	5.91	%		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		2,385		-	0.00	%		2,541		-	0.00	%			2,602		-	0.00	%
Total Borrowings:		557,511		3,842	2.73	%		553,013		3,854	2.80	%			577,052		4,590	3.16	%
Total Interest-Bearing Liabilities	$	3,304,708	$	7,261	0.87	%	$	3,312,191	$	7,398	0.90	%		$	3,360,104	$	9,391	1.11	%
Demand Deposits		944,518						870,585							796,205
Other Liabilities		70,380						58,621							63,790
Total Liabilities	$	4,319,606					$	4,241,397						$	4,220,099
Stockholders' Equity		461,372						455,850							426,057
Total Liabilities and Stockholders' Equity	$	4,780,978					$	4,697,247						$	4,646,156
Net Interest Income			$	42,006					$	42,405						$	41,444
Interest Rate Spread (2)					3.63	%					3.76	%						3.66	%
Net Interest Margin (3)					3.84	%					3.97	%						3.89	%
Supplemental Information:
Total Deposits, including Demand Deposits	$	3,691,715	$	3,419			$	3,629,763	$	3,544				$	3,579,257	$	4,801
Cost of Total Deposits					0.37	%					0.39	%						0.53	%
Total Funding Liabilities, including Demand Deposits	$	4,249,226	$	7,261			$	4,182,776	$	7,398				$	4,156,309	$	9,391
Cost of Total Funding Liabilities					0.68	%					0.71	%						0.90	%
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $332, 329, and $247 for the three months ended September 30, 2011, June 30, 2011, and September 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.

	Nine Months Ended
	September 30, 2011						September 30, 2010
			Interest						Interest
	Average		Earned/		Yield/		Average		Earned/		Yield/
	Balance		Paid		Rate		Balance		Paid		Rate
Interest-Earning Assets:
Interest Earning Deposits with Banks, Federal Funds Sold, and Short Term Investments	$	43,181	$	80	0.25	%	$	138,319	$	267	0.26	%
Securities:
Trading Assets		8,388		206	3.28	%		7,143		183	3.43	%
Taxable Investment Securities		550,425		15,573	3.78	%		562,422		18,093	4.30	%
Non-taxable Investment Securities (1)		8,619		484	7.50	%		17,582		936	7.12	%
Total Securities:		567,432		16,263	3.83	%		587,147		19,212	4.37	%
Loans Held for Sale		11,750		305	3.47	%		10,204		390	5.11	%
Loans
Commercial and Industrial		530,774		16,951	4.27	%		406,838		14,051	4.62	%
Commercial Real Estate		1,779,379		70,310	5.28	%		1,639,380		70,833	5.78	%
Commercial Construction		127,285		4,388	4.61	%		161,823		5,967	4.93	%
Small Business		79,314		3,471	5.85	%		81,506		3,639	5.97	%
Total Commercial		2,516,752		95,120	5.05	%		2,289,547		94,490	5.52	%
Residential Real Estate		458,609		15,481	4.51	%		536,918		19,424	4.84	%
Residential Construction		5,005		172	4.59	%		7,146		276	5.16	%
Consumer - Home Equity		622,952		17,645	3.79	%		492,048		14,140	3.84	%
Total Consumer Real Estate		1,086,566		33,298	4.10	%		1,036,112		33,840	4.37	%
Total Other Consumer		56,688		3,305	7.79	%		93,232		5,388	7.73	%
Total Loans:		3,660,006		131,723	4.81	%		3,418,891		133,718	5.23	%
Total Interest-Earning Assets	$	4,282,369	$	148,371	4.63	%	$	4,154,561	$	153,587	4.94	%
Cash and Due from Banks		55,101						64,314
Federal Home Loan Bank Stock		35,854						35,854
Other Assets		329,456						310,992
Total Assets	$	4,702,780					$	4,565,721
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	1,340,077	$	2,449	0.24	%	$	1,153,459	$	3,521	0.41	%
Money Market		723,675		2,362	0.44	%		740,128		3,699	0.67	%
Time Deposits		667,279		5,636	1.13	%		845,631		9,005	1.42	%
Total interest-bearing deposits:	$	2,731,031	$	10,447	0.51	%	$	2,739,218	$	16,225	0.79	%
Borrowings:
Federal Home Loan Bank Borrowings	$	291,103	$	5,468	2.51	%	$	322,221	$	7,196	2.99	%
Federal Funds Purchased and Assets Sold
Under Repurchase Agreement		187,221		1,867	1.33	%		182,456		2,391	1.75	%
Junior Subordinated Debentures		61,857		2,738	5.92	%		61,857		2,744	5.93	%
Subordinated Debentures		30,000		1,624	7.24	%		30,000		1,624	7.24	%
Other Borrowings		2,561		-	0.00	%		2,704		-	0.00	%
Total Borrowings:		572,742		11,697	2.73	%		599,238		13,955	3.11	%
Total Interest-Bearing Liabilities	$	3,303,773	$	22,144	0.90	%	$	3,338,456	$	30,180	1.21	%
Demand Deposits		882,460						750,895
Other Liabilities		62,968						53,622
Total Liabilities	$	4,249,201					$	4,142,973
Stockholders' Equity		453,579						422,748
Total Liabilities and Stockholders' Equity	$	4,702,780					$	4,565,721
Net Interest Income			$	126,227					$	123,407
Interest Rate Spread (2)					3.73	%					3.73	%
Net Interest Margin (3)					3.94	%					3.97	%
Supplemental Information:
Total Deposits, including Demand Deposits	$	3,613,491	$	10,447			$	3,490,113	$	16,225
Cost of Total Deposits					0.39	%					0.62	%
Total Funding Liabilities, including Demand Deposits	$	4,186,233	$	22,144			$	4,089,351	$	30,180
Cost of Total Funding Liabilities					0.71	%					0.99	%
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $1,004 and $833 for the nine months ended September 30, 2011, and September 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