Independent Bank (INDB) 8-K Independent Bank Corp. Reports Second Quarter Net Income of $8.9 Million

Exhibit 99.1

Independent Bank Corp. Reports Second Quarter Net Income of $8.9 Million

Business Volume Growth Remains Strong

ROCKLAND, Mass.--(BUSINESS WIRE)--July 19, 2012--Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced net income of $8.9 million for the second quarter of 2012, or $0.41 on a diluted earnings per share basis.

The second quarter of 2012 included expenses of $672,000, pre-tax, associated with the previously announced Central Bancorp, Inc. (NASDAQ: CEBK) acquisition. When excluding these expenses, on an operating basis, net income for the quarter was $9.3 million, or $0.43 per diluted share.

The second quarter of 2012 also included a $4.0 million charge-off that reduced diluted earnings per share by approximately $0.11. The charge-off was taken in connection with a working capital loan to a commercial borrower that was unexpectedly placed into state court receivership in late June. The charge-off was taken upon receipt of information indicating material misstatements and potential borrower fraud, that included a material overstatement of accounts receivable and inventory collateral, as well as evidence of invalid and/or altered borrower records.

Christopher Oddleifson, President and Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company, stated: “Although we had an unpleasant surprise this quarter that detracted from our bottom line performance, our business momentum continues to build nicely and operating fundamentals are as strong as ever. Businesses and consumers are looking more closely at their finances and are willing to switch banks for the right reasons. Rockland Trust’s combination of convenience, breadth of products, fair pricing, and knowledgeable, committed bankers offers strong value and sets us apart from our competitors. As a result, we’ve continued to grow both deposits and loans.”

BALANCE SHEET

Total assets of $5.1 billion at June 30, 2012 are up $138.8 million from the prior quarter and $281.6 million, or 5.8%, as compared to the year ago period.

Total loans rose to $4.0 billion at June 30, 2012, an increase of 11.5%, on an annualized basis, from the prior quarter. The commercial loan portfolio continued its strong growth trend and is benefiting from recent expansion initiatives. Robust growth was also sustained in the first position home equity portfolio due to excellent customer response to the Company’s attractive product offerings and marketing efforts. The Company has consistently generated steady loan originations, as customers continue to realize that Rockland Trust’s high level of service, industry expertise, and flexible lending solutions are an attractive alternative to national banks.

Deposits grew across each major account category, increasing by 13.5%, on an annualized basis, to $4.1 billion at June 30, 2012 as compared to the prior quarter. Core deposits increased by $107.8 million to $3.4 billion, during the quarter and remained consistent at 83.8% of total deposits. The Company’s cost of total deposits fell further to 0.27%, down two basis points from the prior quarter, reflecting management’s continued emphasis on core deposits and profitable relationships.

The securities portfolio of $526.8 million decreased by $36.2 million during the quarter, primarily as a result of paydowns, and represents 10.3% of total assets.

Stockholders’ equity at June 30, 2012 increased by 4.0%, on an annualized basis, to $483.6 million, when compared to March 31, 2012. The Tier 1 leverage capital ratio at June 30, 2012 remained strong at 8.69%, maintaining the Company’s well-capitalized position.

NET INTEREST INCOME

Net interest income was $42.6 million for the second quarter of 2012, a slight increase from the linked quarter. The net interest margin was fairly resilient in the second quarter of 2012, declining by a modest two basis points to 3.80%, as the Company countered the strong ongoing pressure on earning asset yields caused by the prolonged low rate environment by continuing to reduce its overall cost of funds.

NONINTEREST INCOME

The Company recorded noninterest income of $15.0 million during the second quarter of 2012 which represents a $1.1 million, or 7.7%, increase from the prior quarter. Significant changes in noninterest income included the following:

• Investment management revenue increased by $264,000, or 7.4%, driven by tax preparation fees earned during the second quarter, combined with an increase in assets under administration in the investment management business. Assets under administration reached $2.0 billion at June 30, 2012, an increase of $21.9 million, or 1.1% as compared to the linked quarter.
• Mortgage banking income increased by $133,000, or 10.0%, due to higher volumes of mortgage originations.
• Other noninterest income increased by $660,000. This was largely due to an increase in loan level derivative fees associated with the Company’s commercial borrowers, which increased by $1.0 million.

NONINTEREST EXPENSE

Inclusive of merger and integration costs, the Company recorded noninterest expense of $37.0 million during the second quarter of 2012 which represents a $359,000 or 1.0% decrease from the prior quarter. Excluding these costs, total expenses declined by $1.0 million. Significant changes in noninterest expense included the following:

• Salaries and employee benefits decreased by $1.7 million, or 7.8%, due to decreases in payroll taxes driven by the timing of incentive compensation payouts in the first quarter, as well as a decrease in accrued incentive compensation for 2012.
• Merger and acquisition expenses were $672,000 for the second quarter relating to the previously announced acquisition of Central Bancorp, Inc., which is expected to close in the fourth quarter of 2012.
• Other noninterest expense increased by $691,000, or 7.1%, due primarily to increases in advertising expenses of $734,000.

The Company generated a return on average assets and a return on average common equity in the second quarter of 2012 of 0.71% and 7.34% respectively, as compared to 1.00% and 10.31% for the quarter ended March 31, 2012. On a year to date basis, return on average assets and return on average common equity were 0.86% and 8.81%, respectively.

ASSET QUALITY

The provision for loan losses was $8.5 million for the second quarter compared to $1.6 million for the quarter ended March 31, 2012. The provision for loan loss exceeded net charge-offs in both periods. For the quarter, net charge-offs increased to $8.4 million, or 0.86%, on an annualized basis of average loans compared to $1.5 million, or 0.16%, for the quarter ended March 31, 2012. The higher net charge-offs in the second quarter included $4.0 million related to unforeseen developments in a commercial loan discussed previously. Delinquency as a percentage of loans decreased to 0.82% at June 30, 2012 compared to 0.92% at March 31, 2012. Nonperforming loans decreased to $31.3 million, or 0.79%, of total loans at June 30, 2012, from $31.6 million, or 0.82% of total loans, at March 31, 2012. Nonperforming assets totaled $43.9 million at the end of the second quarter compared to $40.7 million in the linked quarter.

The allowance for loan losses was $48.4 million at June 30, 2012, consistent with the prior quarter levels. The Company’s allowance for loan losses was 1.22% and 1.25% as a percentage of total loans at June 30, 2012 and March 31, 2012, respectively.

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 20, 2012. 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: 10015888. The webcast replay will be available until July 20, 2013.

Independent Bank Corp., which has Rockland Trust Company as a wholly-owned bank subsidiary, has approximately $5.1 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
CONSOLIDATED BALANCE SHEETS	June 30, 2012			March 31, 2012			June 30, 2011			% Change June 2012 vs. Mar. 2012		% Change June 2012 vs. June 2011
Assets
Cash and Due From Banks	$	65,826		$	57,658		$	56,679		14.17	%	16.14	%
Interest Earning Deposits with Banks		121,029			75,865			129,420		59.53	%	-6.48	%
Fed Funds Sold		1,524			2,269			1,197		-32.83	%	27.32	%
Securities
Trading Assets		-			-			8,539		n/a		-100.00	%
Securities Available for Sale		338,331			362,109			305,895		-6.57	%	10.60	%
Securities Held to Maturity		188,450			200,921			233,109		-6.21	%	-19.16	%
Total Securities		526,781			563,030			547,543		-6.44	%	-3.79	%
Loans Held for Sale		22,310			22,846			12,255		-2.35	%	82.05	%
Loans
Commercial and Industrial		625,695			599,603			568,022		4.35	%	10.15	%
Commercial Real Estate		1,912,563			1,853,711			1,801,026		3.17	%	6.19	%
Commercial Construction		149,990			148,034			130,303		1.32	%	15.11	%
Small Business		79,738			79,937			78,905		-0.25	%	1.06	%
Total Commercial		2,767,986			2,681,285			2,578,256		3.23	%	7.36	%
Residential Real Estate		389,053			402,910			454,597		-3.44	%	-14.42	%
Residential Construction		14,960			13,291			6,404		12.56	%	133.60	%
Consumer - Home Equity - 1st Position		466,136			425,245			319,274		9.62	%	46.00	%
Consumer - Home Equity - 2nd Position		310,717			310,578			313,461		0.04	%	-0.88	%
Total Consumer Real Estate		1,180,866			1,152,024			1,093,736		2.50	%	7.97	%
Total Other Consumer		31,937			36,447			53,239		-12.37	%	-40.01	%
Total Loans		3,980,789			3,869,756			3,725,231		2.87	%	6.86	%
Less - Allowance for Loan Losses		(48,403	)		(48,340	)		(46,637	)	0.13	%	3.79	%
Net Loans		3,932,386			3,821,416			3,678,594		2.90	%	6.90	%
Federal Home Loan Bank Stock		33,564			33,564			35,854		0.00	%	-6.39	%
Bank Premises and Equipment		49,384			49,678			46,368		-0.59	%	6.50	%
Goodwill and Core Deposit Intangible		139,924			140,323			141,489		-0.28	%	-1.11	%
Other Assets		231,836			219,090			193,544		5.82	%	19.78	%
Total Assets	$	5,124,564		$	4,985,739		$	4,842,943		2.78	%	5.82	%
Liabilities and Stockholders' Equity
Deposits
Demand Deposits	$	1,070,279		$	1,015,231		$	913,960		5.42	%	17.10	%
Savings and Interest Checking Accounts		1,560,523			1,501,826			1,479,365		3.91	%	5.49	%
Money Market		807,796			803,744			722,234		0.50	%	11.85	%
Time Certificates of Deposit		639,535			624,912			671,003		2.34	%	-4.69	%
Total Deposits		4,078,133			3,945,713			3,786,562		3.36	%	7.70	%
Borrowings
Federal Home Loan Bank and Other Borrowings		189,522			194,580			260,647		-2.60	%	-27.29	%
Wholesale Repurchase Agreements		50,000			50,000			50,000		0.00	%	0.00	%
Customer Repurchase Agreements		144,838			147,678			133,166		-1.92	%	8.77	%
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	%
Total Borrowings		476,217			484,115			535,670		-1.63	%	-11.10	%
Total Deposits and Borrowings		4,554,350			4,429,828			4,322,232		2.81	%	5.37	%
Other Liabilities		86,622			77,048			65,009		12.43	%	33.25	%
Stockholders' Equity
Common Stock		214			213			212		0.47	%	0.94	%
Additional Paid in Capital		236,279			235,381			231,987		0.38	%	1.85	%
Retained Earnings		251,429			247,097			224,488		1.75	%	12.00	%
Accumulated Other Comprehensive Loss, Net of Tax		(4,330	)		(3,828	)		(985	)	13.11	%	339.59	%
Total Stockholders' Equity		483,592			478,863			455,702		0.99	%	6.12	%
Total Liabilities and Stockholders' Equity	$	5,124,564		$	4,985,739		$	4,842,943		2.78	%	5.82	%

CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended
	June 30, 2012			March 31, 2012			June 30, 2011			% Change June 2012 vs. Mar. 2012		% Change June 2012 vs. June 2011
INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	19		$	33		$	14		-42.42	%	35.71	%
Interest and Dividends on Securities		4,438			4,556			5,452		-2.59	%	-18.60	%
Interest on Loans		43,813			43,077			43,938		1.71	%	-0.28	%
Interest on Loans Held for Sale		156			130			70		20.00	%	122.86	%
Total Interest Income		48,426			47,796			49,474		1.32	%	-2.12	%
INTEREST EXPENSE
Interest on Deposits		2,687			2,739			3,544		-1.90	%	-24.18	%
Interest on Borrowed Funds		3,111			3,204			3,854		-2.90	%	-19.28	%
Total Interest Expense		5,798			5,943			7,398		-2.44	%	-21.63	%
Net Interest Income		42,628			41,853			42,076		1.85	%	1.31	%
Less - Provision for Loan Losses		8,500			1,600			3,482		431.25	%	144.11	%
Net Interest Income after Provision for Loan Losses		34,128			40,253			38,594		-15.22	%	-11.57	%
NONINTEREST INCOME
Service Charges on Deposit Accounts		3,923			3,889			4,192		0.87	%	-6.42	%
Interchange and ATM Fees		2,399			2,368			1,974		1.31	%	21.53	%
Investment Management		3,827			3,563			3,603		7.41	%	6.22	%
Mortgage Banking Income		1,463			1,330			683		10.00	%	114.20	%
Increase in Cash Surrender Value of Life Insurance Policies		741			713			860		3.93	%	-13.84	%
Net Gain on Sale of Securities		-			-			723		n/a		-100.00	%
Gross Change on Write-Down of Certain Investments to Fair Value		(106	)		274			170		-138.69	%	-162.35	%
Less: Portion of Other-Than-Temporary Impairment Losses Recognized in OCI		30			(274	)		(306	)	-110.95	%	-109.80	%
Net Loss on Write-Down of Certain Investments to Fair Value		(76	)		-			(136	)	-100.00	%	-44.12	%
Other Noninterest Income		2,706			2,046			1,575		32.26	%	71.81	%
Total Noninterest Income		14,983			13,909			13,474		7.72	%	11.20	%
NONINTEREST EXPENSE
Salaries and Employee Benefits		19,775			21,436			19,762		-7.75	%	0.07	%
Occupancy and Equipment Expenses		4,234			4,300			4,263		-1.53	%	-0.68	%
Data Processing and Facilities Management		1,099			1,175			1,038		-6.47	%	5.88	%
FDIC Assessment		830			749			778		10.81	%	6.68	%
Merger and Acquisition Expenses		672			-			-		100.00	%	100.00	%
Other Noninterest Expense		10,389			9,698			11,015		7.13	%	-5.68	%
Total Noninterest Expense		36,999			37,358			36,856		-0.96	%	0.39	%
INCOME BEFORE INCOME TAXES		12,112			16,804			15,212		-27.92	%	-20.38	%
PROVISION FOR INCOME TAXES		3,238			4,621			4,092		-29.93	%	-20.87	%
NET INCOME	$	8,874		$	12,183		$	11,120		-27.16	%	-20.20	%
BASIC EARNINGS PER SHARE	$	0.41		$	0.57		$	0.52		-28.07	%	-21.15	%
DILUTED EARNINGS PER SHARE	$	0.41		$	0.56		$	0.52		-26.79	%	-21.15	%
BASIC AVERAGE SHARES		21,623,827			21,561,006			21,441,864
DILUTED AVERAGE SHARES		21,644,204			21,585,487			21,481,023
PERFORMANCE RATIOS:
Net Interest Margin (FTE)		3.80	%		3.82	%		3.97	%
Return on Average Assets		0.71	%		1.00	%		0.95	%
Return on Average Common Equity		7.34	%		10.31	%		9.78	%
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
NET INCOME	$	8,874		$	12,183		$	11,120		-27.16	%	-20.20	%
NonInterest Income Components
Less - Gain on Sale of Securities, net of tax		-			-			(428	)
Noninterest Expense Components
Add - Merger & Acquisition Expenses, net of tax		397			-			-
NET OPERATING EARNINGS	$	9,271		$	12,183		$	10,692		-23.90	%	-13.29	%
Diluted Earnings Per Share, on an Operating Basis	$	0.43		$	0.56		$	0.50		-23.21	%	-14.00	%

CONSOLIDATED STATEMENTS OF INCOME
	Six Months Ended
	June 30, 2012			June 30, 2011			% Change June 2012 vs. June 2011
INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	51		$	31		64.52	%
Interest and Dividends on Securities		8,994			11,058		-18.67	%
Interest on Loans		86,891			87,154		-0.30	%
Interest on Loans Held for Sale		286			189		51.32	%
Total Interest Income		96,222			98,432		-2.25	%
INTEREST EXPENSE
Interest on Deposits		5,426			7,029		-22.81	%
Interest on Borrowed Funds		6,316			7,854		-19.58	%
Total Interest Expense		11,742			14,883		-21.10	%
Net Interest Income		84,480			83,549		1.11	%
Less - Provision for Loan Losses		10,100			5,682		77.75	%
Net Interest Income after Provision for Loan Losses		74,380			77,867		-4.48	%
NONINTEREST INCOME
Service Charges on Deposit Accounts		7,812			8,151		-4.16	%
Interchange and ATM Fees		4,767			3,676		29.68	%
Investment Management		7,390			6,819		8.37	%
Mortgage Banking Income		2,793			1,730		61.45	%
Increase in Cash Surrender Value of Life Insurance Policies		1,454			1,566		-7.15	%
Net Gain on Sale of Securities		-			723		-100.00	%
Gross Change on Write-Down of Certain Investments to Fair Value		168			419		-59.90	%
Less: Portion of Other-Than-Temporary Impairment Losses Recognize in OCI		(244	)		(595	)	-58.99	%
Net Loss on Write-Down of Certain Investments to Fair Value		(76	)		(176	)	-56.82	%
Other Noninterest Income		4,753			3,583		32.65	%
Total Noninterest Income		28,893			26,072		10.82	%
NONINTEREST EXPENSE
Salaries and Employee Benefits		41,211			40,014		2.99	%
Occupancy and Equipment Expenses		8,534			8,838		-3.44	%
Data Processing and Facilities Management		2,274			2,676		-15.02	%
FDIC Assessment		1,579			2,069		-23.68	%
Merger and Acquision Expenses		672			-		100.00	%
Other Noninterest Expense		20,086			19,741		1.75	%
Total Noninterest Expense		74,356			73,338		1.39	%
INCOME BEFORE INCOME TAXES		28,917			30,601		-5.50	%
PROVISION FOR INCOME TAXES		7,860			8,293		-5.22	%
NET INCOME	$	21,057		$	22,308		-5.61	%
BASIC EARNINGS PER SHARE	$	0.98		$	1.04		-5.77	%
DILUTED EARNINGS PER SHARE	$	0.97		$	1.04		-6.73	%
BASIC AVERAGE SHARES		21,592,416			21,370,457
DILUTED AVERAGE SHARES		21,614,667			21,414,232
Net Interest Margin (FTE)		3.81	%		3.99	%
Return on Average Assets		0.86	%		0.96	%
Return on Average Common Equity		8.81	%		10.01	%
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
NET INCOME	$	21,057		$	22,308		-5.61	%
Noninterest Income Components
Less - Net Gain on Sale of Securities, net of tax		-			(428	)
Noninterest Expense Components
Add - Merger & Acquisition Expenses, net of tax		397			-
NET OPERATING EARNINGS	$	21,454		$	21,880		-1.95	%
Diluted Earnings Per Share, on an Operating Basis	$	0.99		$	1.02		-2.94	%

RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
	Three Months Ended												Six Months Ended
	June 30, 2012			March 31, 2012		June 30, 2011			% Change June 2012 vs. Mar. 2012		% Change June 2012 vs. June 2011		June 30, 2012			June 30, 2011			% Change June 2012 vs. June 2011
Noninterest Income GAAP	$	14,983		$	13,909	$	13,474		7.72	%	11.20	%	$	28,893		$	26,072		10.82	%
Less - Net Gain on Sale of Securities		-			-		(723	)	n/a		100.00	%		-			(723	)	-100.00	%
Add - Other-Than-Temporary-Impairment on Securities		76			-		136		100.00	%	-44.12	%		76			176		-56.82	%
Noninterest Income as Adjusted	$	15,059		$	13,909	$	12,887		8.27	%	16.85	%	$	28,969		$	25,525		13.49	%
Noninterest Expense GAAP	$	36,999		$	37,358	$	36,856		-0.96	%	0.39	%	$	74,356		$	73,338		1.39	%
Less - Merger and Acquisition Expenses		(672	)		-		-		100.00	%	100.00	%		(672	)		-		100.00	%
Noninterest Expense as Adjusted	$	36,327		$	37,358	$	36,856		-2.76	%	-1.44	%	$	73,684		$	73,338		0.47	%

ASSET QUALITY	Nonperforming Assets At									Net Charge-Offs For the Three Months Ending									Net Charge-Offs For the Six Months Ending
	June 30, 2012			March 31, 2012			June 30, 2011			June 30, 2012			March 31, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Nonperforming Loans
Commercial & Industrial Loans	$	4,404		$	2,429		$	2,674		$	4,594			($185	)	$	749		$	4,409		$	1,435
Small Business Loans		588			544			1,130			90			118			292			208			530
Commercial Real Estate Loans		9,371			15,015			7,007			2,133			604			1,236			2,737			1,838
Residential Real Estate Loans		9,939			10,465			8,546			105			109			280			214			402
Installment Loans - Home Equity		6,768			2,773			1,977			1,373			737			488			2,110			562
Installment Loans - Other		252			420			592			142			137			244			279			533
Total Nonperforming Loans / Total Net Charge-offs	$	31,322		$	31,646		$	21,926		$	8,437		$	1,520		$	3,289		$	9,957		$	5,300
Nonaccrual Securities		1,259			1,400			1,587
Other Assets in Possession		1			92			40
Other Real Estate Owned		11,275			7,598			7,410
Nonperforming Assets	$	43,857		$	40,736		$	30,963
Nonperforming Loans/Gross Loans		0.79	%		0.82	%		0.59	%
Allowance for Loan Losses/Nonperforming Loans		154.53	%		152.75	%		212.70	%
Gross Loans/Total Deposits		97.61	%		98.07	%		98.38	%
Allowance for Loan Losses/Total Loans		1.22	%		1.25	%		1.25	%
Net charge-offs to average loans (quarter annualized)											0.86	%		0.16	%		0.36	%
Net charge-offs to average loans (year-to-date)																				0.52	%		0.29	%

Nonperforming Assets Reconciliation	Three Months Ending June 30, 2012			Three Months Ending March 31, 2012			Three Months Ending June 30, 2011
Nonperforming Assets Beginning Balance	$	40,736		$	37,149		$	33,856
New to Nonperforming		18,895			8,803			9,085
Loans Charged-Off		(8,768	)		(1,944	)		(3,587	)
Loans Paid-Off		(2,934	)		(1,172	)		(5,130	)
Loans Transferred to Other Real Estate Owned/Other Assets		(3,579	)		(1,503	)		(1,172	)
Loans Restored to Accrual Status		(3,946	)		(1,870	)		(638	)
New to Other Real Estate Owned		3,579			1,503			1,172
Sale of Other Real Estate Owned		(383	)		(1,587	)		(3,214	)
Other		257			1,357			591
Nonperforming Assets Ending Balance	$	43,857		$	40,736		$	30,963

Financial Ratios	June 30, 2012			March 31, 2012			June 30, 2011
Book Value per Common Share	$	22.36		$	22.16		$	21.24
Tangible Common Book Value per Share (proforma to include
the tax deductibility of goodwill) - Non-GAAP	$	16.80		$	16.59		$	15.60
Tangible Common Capital/Tangible Assets		6.89	%		6.99	%		6.68	%
Tangible Common Capital/Tangible Asset (proforma to include
the tax deductibility of goodwill) - Non-GAAP		7.26	%		7.37	%		7.09	%
Capital Adequacy
Tier one leverage capital ratio (1)		8.69	%		8.77	%		8.54	%
Tier one common ratio (1)		9.03	%		9.18	%		8.85	%
(1) Estimated number for June 30, 2012

INDEPENDENT BANK CORP. SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited - Dollars in Thousands)
	Three Months Ended
	June 30, 2012						March 31, 2012						June 30, 2011
	Average Balance		Interest Earned/ Paid		Yield/ Rate		Average Balance		Interest Earned/ Paid		Yield/ Rate		Average Balance		Interest Earned/ Paid		Yield/ Rate
Interest-Earning Assets:
Interest Earning Deposits with Banks, Federal Funds Sold, and Short Term Investments	$	30,890	$	19	0.25	%	$	53,228	$	33	0.25	%	$	23,049	$	14	0.24	%
Securities:
Trading Assets		-		-	n/a			5,490		38	2.78	%		8,600		71	3.31	%
Taxable Investment Securities		544,822		4,415	3.26	%		530,323		4,489	3.40	%		556,301		5,286	3.81	%
Nontaxable Investment Securities (1)		1,938		39	8.09	%		2,493		49	7.91	%		8,610		161	7.50	%
Total Securities:		546,760		4,454	3.28	%		538,306		4,576	3.42	%		573,511		5,518	3.86	%
Loans Held for Sale		20,079		156	3.12	%		17,189		130	3.04	%		8,659		70	3.24	%
Loans:
Commercial and Industrial		620,364		6,294	4.08	%		579,087		5,901	4.10	%		535,764		5,710	4.27	%
Commercial Real Estate (1)		1,896,941		22,973	4.87	%		1,848,121		22,734	4.95	%		1,787,364		23,618	5.30	%
Commercial Construction		149,627		1,578	4.24	%		142,729		1,543	4.35	%		128,747		1,482	4.62	%
Small Business		80,324		1,132	5.67	%		78,706		1,137	5.81	%		79,834		1,151	5.78	%
Total Commercial		2,747,256		31,977	4.68	%		2,648,643		31,315	4.76	%		2,531,709		31,961	5.06	%
Residential Real Estate		393,377		4,267	4.36	%		410,604		4,466	4.37	%		457,651		5,167	4.53	%
Residential Construction		15,041		161	4.31	%		11,622		130	4.50	%		4,535		55	4.86	%
Consumer - Home Equity		757,850		6,939	3.68	%		717,620		6,660	3.73	%		627,832		5,920	3.78	%
Total Consumer Real Estate		1,166,268		11,367	3.92	%		1,139,846		11,256	3.97	%		1,090,018		11,142	4.10	%
Total Other Consumer		34,261		728	8.55	%		38,698		771	8.01	%		56,292		1,098	7.82	%
Total Loans		3,947,785		44,072	4.49	%		3,827,187		43,342	4.55	%		3,678,019		44,201	4.82	%
Total Interest-Earning Assets	$	4,545,514	$	48,701	4.31	%	$	4,435,910	$	48,081	4.36	%	$	4,283,238	$	49,803	4.66	%
Cash and Due from Banks		63,703						58,226						56,122
Federal Home Loan Bank Stock		33,564						35,275						35,854
Other Assets		362,746						367,401						322,033
Total Assets	$	5,005,527					$	4,896,812					$	4,697,247
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	1,482,889	$	687	0.19	%	$	1,424,455	$	697	0.20	%	$	1,365,892	$	850	0.25	%
Money Market		799,831		621	0.31	%		769,891		639	0.33	%		723,345		815	0.45	%
Time Deposits		627,250		1,379	0.88	%		626,478		1,403	0.90	%		669,941		1,879	1.12	%
Total interest-bearing deposits:	$	2,909,970	$	2,687	0.37	%	$	2,820,824	$	2,739	0.39	%	$	2,759,178	$	3,544	0.52	%
Borrowings:
Federal Home Loan Bank and Other Borrowings	$	219,846	$	1,280	2.34	%	$	226,365	$	1,344	2.39	%	$	279,525	$	1,743	2.50	%
Wholesale Repurchase Agreements		50,000		289	2.32	%		50,000		289	2.32	%		50,000		525	4.21	%
Customer Repurchase Agreements		145,963		83	0.23	%		158,489		110	0.28	%		131,631		132	0.40	%
Junior Subordinated Debentures		61,857		918	5.97	%		61,857		920	5.98	%		61,857		913	5.92	%
Subordinated Debentures		30,000		541	7.25	%		30,000		541	7.25	%		30,000		541	7.23	%
Total Borrowings	$	507,666	$	3,111	2.46	%	$	526,711	$	3,204	2.45	%	$	553,013	$	3,854	2.80	%
Total Interest-Bearing Liabilities	$	3,417,636	$	5,798	0.68	%	$	3,347,535	$	5,943	0.71	%	$	3,312,191	$	7,398	0.90	%
Demand Deposits		1,023,048						985,455						870,585
Other Liabilities		78,430						88,598						58,621
Total Liabilities	$	4,519,114					$	4,421,588					$	4,241,397
Stockholders' Equity		486,413						475,224						455,850
Total Liabilities and Stockholders' Equity	$	5,005,527					$	4,896,812					$	4,697,247
Net Interest Income			$	42,903					$	42,138					$	42,405
Interest Rate Spread (2)					3.63	%					3.65	%					3.76	%
Net Interest Margin (3)					3.80	%					3.82	%					3.97	%
Supplemental Information:
Total Deposits, including Demand Deposits	$	3,933,018	$	2,687			$	3,806,279	$	2,739			$	3,629,763	$	3,544
Cost of Total Deposits					0.27	%					0.29	%					0.39	%
Total Funding Liabilities, including Demand Deposits	$	4,440,684	$	5,798			$	4,332,990	$	5,943			$	4,182,776	$	7,398
Cost of Total Funding Liabilities					0.53	%					0.55	%					0.71	%

(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $275, $285, and $329 for the three months ended June 30, 2012, March 31, 2012, and June 30, 2011, 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, 2012						June 30, 2011
	Average Balance		Interest Earned/ Paid		Yield/ Rate		Average Balance		Interest Earned/ Paid		Yield/ Rate
Interest-Earning Assets:
Interest Earning Deposits with Banks, Federal Funds Sold, and Short Term Investments	$	42,059	$	51	0.24	%	$	25,338	$	31	0.25	%
Securities:
Trading Assets		2,745		38	2.78	%		8,363		134	3.23	%
Taxable Investment Securities		537,572		8,904	3.33	%		562,582		10,717	3.84	%
Nontaxable Investment Securities (1)		2,216		88	7.99	%		9,388		351	7.54	%
Total Securities:		542,533		9,030	3.35	%		580,333		11,202	3.89	%
Loans Held for Sale		18,634		286	3.09	%		11,409		189	3.34	%
Loans:
Commercial and Industrial		599,726		12,196	4.09	%		518,081		11,111	4.32	%
Commercial Real Estate (1)		1,872,531		45,706	4.91	%		1,768,433		46,815	5.34	%
Commercial Construction		146,178		3,121	4.29	%		126,139		2,892	4.62	%
Small Business		79,515		2,268	5.74	%		80,058		2,329	5.87	%
Total Commercial		2,697,950		63,291	4.72	%		2,492,711		63,147	5.11	%
Residential Real Estate		401,991		8,733	4.37	%		462,870		10,567	4.60	%
Residential Construction		13,331		291	4.39	%		4,126		98	4.79	%
Consumer - Home Equity		737,735		13,599	3.71	%		614,800		11,542	3.79	%
Total Consumer Real Estate		1,153,057		22,623	3.95	%		1,081,796		22,207	4.14	%
Total Other Consumer		36,479		1,500	8.27	%		60,157		2,328	7.80	%
Total Loans		3,887,486		87,414	4.52	%		3,634,664		87,682	4.86	%
Total Interest-Earning Assets	$	4,490,712	$	96,781	4.33	%	$	4,251,744	$	99,104	4.70	%
Cash and Due from Banks		60,965						54,084
Federal Home Loan Bank Stock		34,420						35,854
Other Assets		365,073						321,350
Total Assets	$	4,951,170					$	4,663,032
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	1,453,672	$	1,384	0.19	%	$	1,327,759	$	1,610	0.24	%
Money Market		784,861		1,260	0.32	%		723,644		1,600	0.45	%
Time Deposits		626,864		2,782	0.89	%		671,409		3,819	1.15	%
Total interest-bearing deposits:	$	2,865,397	$	5,426	0.38	%	$	2,722,812	$	7,029	0.52	%
Borrowings:
Federal Home Loan Bank and Other Borrowings	$	223,105	$	2,624	2.37	%	$	308,709	$	3,653	2.39	%
Wholesale Repurchase Agreements		50,000		578	2.32	%		50,000		1,043	4.21	%
Customer Repurchase Agreements		152,226		193	0.25	%		129,918		265	0.41	%
Junior Subordinated Debentures		61,857		1,838	5.98	%		61,857		1,816	5.92	%
Subordinated Debentures		30,000		1,083	7.26	%		30,000		1,077	7.24	%
Total Borrowings	$	517,188	$	6,316	2.46	%	$	580,484	$	7,854	2.73	%
Total Interest-Bearing Liabilities	$	3,382,585	$	11,742	0.70	%	$	3,303,296	$	14,883	0.91	%
Demand Deposits		1,004,251						850,918
Other Liabilities		83,516						59,201
Total Liabilities	$	4,470,352					$	4,213,415
Stockholders' Equity		480,818						449,617
Total Liabilities and Stockholders' Equity	$	4,951,170					$	4,663,032
Net Interest Income			$	85,039					$	84,221
Interest Rate Spread (2)					3.64	%					3.79	%
Net Interest Margin (3)					3.81	%					3.99	%
Supplemental Information:
Total Deposits, including Demand Deposits	$	3,869,648	$	5,426			$	3,573,730	$	7,029
Cost of Total Deposits					0.28	%					0.40	%
Total Funding Liabilities, including Demand Deposits	$	4,386,836	$	11,742			$	4,154,214	$	14,883
Cost of Total Funding Liabilities					0.54	%					0.72	%

(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $559 and $672 for the six months ended June 30, 2012 and 2011, 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