Independent Bank (INDB) 8-K Independent Bank Corp. Reports Third Quarter Net Income of $11.6 Million

Exhibit 99.1

Independent Bank Corp. Reports Third Quarter Net Income of $11.6 Million

Strong Business Volumes Lead to Solid Operating EPS Growth

ROCKLAND, Mass.--(BUSINESS WIRE)--October 18, 2012--Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced net income of $11.6 million for the third quarter of 2012, or $0.53 on a diluted earnings per share basis.

The third quarter of 2012 contained various items which the Company considers to be non-core in nature. These items included $2.2 million of goodwill impairment associated with the Company’s 1031 Exchange business, $595,000 of merger-related expenses associated with the previously announced Central Bancorp, Inc. (NASDAQ: CEBK) acquisition and tax-exempt income of $1.3 million related to proceeds from life insurance policies. When excluding these non-core items, net income for the third quarter on an operating basis was $12.0 million, or $0.55 per diluted share.

Christopher Oddleifson, President and Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company, stated: “Our third quarter performance was a strong one and is driven by our strategy of disciplined growth. The steady growth in lending and core deposits evidences that the Rockland brand is resonating with consumers and businesses alike. Our customer-centric approach to deliver great products and service is meeting with much success in the marketplace which makes us confident about continuing to build franchise value.”

BALANCE SHEET

Total assets of $5.2 billion at September 30, 2012 are up $67.5 million from the prior quarter and $292.3 million, or 6.0%, as compared to the year ago period.

Total loans continued to trend upwards, rising to $4.1 billion at September 30, 2012, which represents an increase of 7.5%, on an annualized basis, from the prior quarter. The commercial loan portfolio continued to exhibit strong growth trends with an increase in outstanding balances of 11.4%, on an annualized basis, from the prior quarter. The commercial loan pipeline remains at strong levels. The first position home equity portfolio also sustained its track record of healthy growth in the third quarter, with an increase of 16.6%, on an annualized basis, from the prior quarter as customers continue to respond enthusiastically to the Company’s product offerings.

Deposits remained steady at $4.1 billion at September 30, 2012 as compared to the prior quarter. Core deposits increased by $53.8 million, or 6.3% on an annualized basis to $3.5 billion during the quarter with growth occurring in both consumer and business customer segments. Core deposits have now risen to 84.3% of total deposits. The Company’s cost of total deposits remained low at 0.26%, reflecting management’s continued emphasis on core deposits and profitable relationships.

The securities portfolio of $510.0 million decreased by $16.8 million during the quarter, as a result of paydowns as well as calls of $6.4 million in trust preferred securities, offset by additional purchases. The securities portfolio represents 9.8% of total assets at September 30, 2012.

Stockholders’ equity at September 30, 2012 increased to $493.0 million, an increase of 7.7%, on an annualized basis, when compared to June 30, 2012. The Tier 1 common ratio at September 30, 2012 remains strong and is estimated at 9.09%, as compared to 9.13% in the prior quarter. The Company’s tangible common ratio was 7.04% representing an increase from the prior quarter’s tangible common ratio of 6.89%.

NET INTEREST INCOME

Net interest income was $42.8 million for the third quarter of 2012, a slight increase from the linked quarter as robust loan growth served to counter the industry-wide pressure on interest margins caused by the prolonged low rate environment. The net interest margin was 3.72% in the third quarter of 2012, declining by eight basis points compared to the prior quarter, due to lower earning asset yields coupled with a limited ability to further reduce the Company’s overall cost of funds.

NONINTEREST INCOME

The Company recorded noninterest income of $16.1 million during the third quarter of 2012 which represents a $1.1 million, or 7.5%, increase from the prior quarter. Significant changes in noninterest income included the following:

• The Company received proceeds on life insurance policies in the amount of $1.3 million. The proceeds represent tax-exempt income to the Company.
• Income from loan level derivative activity associated with the Company’s commercial customers decreased by $324,000.

NONINTEREST EXPENSE

Inclusive of merger and integration costs and goodwill impairment, the Company recorded noninterest expense of $40.1 million during the third quarter of 2012 which represents a $3.1 million or an 8.3% increase from the prior quarter. Significant changes in noninterest expense included the following:

• Salaries and employee benefits increased by $929,000, or 4.7%, driven largely by an increase in incentive compensation of $1.2 million offset somewhat by lower pension expense.
• Merger and acquisition expenses were $595,000 for the third quarter relating to the previously announced acquisition of Central Bancorp, Inc., which is expected to close in the fourth quarter of 2012.
• During the third quarter of 2012 the Company recorded a $2.2 million goodwill impairment charge, which represented the total amount of goodwill relating to Compass Exchange Advisors, LLC (“Compass”) which was acquired in January 2007. Compass is a wholly-owned subsidiary of the Bank that provides like-kind exchange services pursuant to section 1031 of the Internal Revenue Code. The Company continues to offer these services and has not exited the business. However due to the prolonged low rate environment and the Federal Reserve Bank’s stated intent to maintain low rates for the foreseeable future, the Company determined the goodwill associated with this purchase to be impaired.

The Company generated a return on average assets and a return on average common equity in the third quarter of 2012 of 0.91% and 9.39% respectively, as compared to 0.71% and 7.34% for the quarter ended June 30, 2012. On a year to date basis the return on average assets and a return on average common equity was 0.87% and 9.01% at September 30, 2012 compared to 0.97% and 10.10% for the year ended September 30, 2011.

ASSET QUALITY

The provision for loan losses was $3.6 million for the third quarter compared to $8.5 million for the quarter ended June 30, 2012. The provision for loan loss exceeded net charge-offs in both periods as the Company continues to prudently add to loan loss reserves in line with strong loan growth trends. For the quarter, net charge-offs decreased to $2.3 million, or 0.22%, on an annualized basis of average loans compared to $8.4 million, or 0.86%, for the quarter ended June 30, 2012. The higher net charge-offs in the second quarter included $4.0 million related to a customer fraud. Delinquency as a percentage of loans decreased to 0.79% at September 30, 2012 compared to 0.82% at June 30, 2012. Nonperforming loans decreased slightly to $31.1 million, or 0.77% of total loans at September 30, 2012, from $31.3 million, or 0.79% of total loans at June 30, 2012. Nonperforming assets declined to $41.5 million at the end of the third quarter compared to $43.9 million in the linked quarter, primarily driven by a decrease in other real estate owned by the Bank.

The allowance for loan losses was $49.7 million, at September 30, 2012, an increase of $1.3 million from the prior quarter levels. The Company’s allowance for loan losses was 1.23% and 1.22% as a percentage of total loans at September 30, 2012 and June 30, 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 third quarter earnings at 10:00 a.m. Eastern Time on Friday, October 19, 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: 10019254. The webcast replay will be available until October 19, 2013.

Independent Bank Corp., which has Rockland Trust Company as a wholly-owned bank subsidiary, has approximately $5.2 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
										% Change		% Change
CONSOLIDATED BALANCE SHEETS	September 30,			June 30,			September 30,			Sept. 2012 vs.		Sept. 2012 vs.
	2012			2012			2011			June 2012		Sept. 2011
Assets
Cash and Due From Banks	$	66,690		$	65,826		$	53,821		1.31	%	23.91	%
Interest Earning Deposits with Banks		111,703			121,029			180,352		-7.71	%	-38.06	%
Fed Funds Sold		-			1,524			667		-100.00	%	-100.00	%
Securities
Trading Assets		-			-			7,984		n/a		-100.00	%
Securities Available for Sale		323,156			338,331			293,073		-4.49	%	10.26	%
Securities Held to Maturity		186,842			188,450			220,552		-0.85	%	-15.28	%
Total Securities		509,998			526,781			521,609		-3.19	%	-2.23	%
Loans Held for Sale		42,393			22,310			22,156		90.02	%	91.34	%
Loans
Commercial and Industrial		653,861			625,695			567,552		4.50	%	15.21	%
Commercial Real Estate		1,939,245			1,912,563			1,815,063		1.40	%	6.84	%
Commercial Construction		175,731			149,990			119,309		17.16	%	47.29	%
Small Business		78,794			79,738			77,230		-1.18	%	2.03	%
Total Commercial		2,847,631			2,767,986			2,579,154		2.88	%	10.41	%
Residential Real Estate		375,660			389,053			441,600		-3.44	%	-14.93	%
Residential Construction		9,288			14,960			6,306		-37.91	%	47.29	%
Home Equity - 1st Position		485,605			466,136			332,729		4.18	%	45.95	%
Home Equity - 2nd Position		308,770			310,717			315,746		-0.63	%	-2.21	%
Total Consumer Real Estate		1,179,323			1,180,866			1,096,381		-0.13	%	7.57	%
Total Other Consumer		29,181			31,937			47,590		-8.63	%	-38.68	%
Total Loans		4,056,135			3,980,789			3,723,125		1.89	%	8.94	%
Less - Allowance for Loan Losses		(49,746	)		(48,403	)		(47,278	)	2.77	%	5.22	%
Net Loans		4,006,389			3,932,386			3,675,847		1.88	%	8.99	%
Federal Home Loan Bank Stock		33,564			33,564			35,854		0.00	%	-6.39	%
Bank Premises and Equipment		49,100			49,384			47,646		-0.58	%	3.05	%
Goodwill and Core Deposit Intangible		137,293			139,924			141,103		-1.88	%	-2.70	%
Other Assets		234,964			231,836			220,711		1.35	%	6.46	%
Total Assets	$	5,192,094		$	5,124,564		$	4,899,766		1.32	%	5.97	%
Liabilities and Stockholders' Equity
Deposits
Demand Deposits	$	1,110,266		$	1,070,279		$	977,323		3.74	%	13.60	%
Savings and Interest Checking Accounts		1,536,439			1,560,523			1,424,060		-1.54	%	7.89	%
Money Market		840,723			807,796			744,682		4.08	%	12.90	%
Time Certificates of Deposit		630,419			639,535			641,468		-1.43	%	-1.72	%
Total Deposits		4,117,847			4,078,133			3,787,533		0.97	%	8.72	%
Borrowings
Federal Home Loan Bank and Other Borrowings		189,464			189,522			260,076		-0.03	%	-27.15	%
Wholesale Repurchase Agreements		50,000			50,000			50,000		0.00	%	0.00	%
Customer Repurchase Agreements		158,578			144,838			166,331		9.49	%	-4.66	%
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		489,899			476,217			568,264		2.87	%	-13.79	%
Total Deposits and Borrowings		4,607,746			4,554,350			4,355,797		1.17	%	5.78	%
Other Liabilities		91,383			86,622			82,903		5.50	%	10.23	%
Stockholders' Equity
Common Stock		214			214			212		0.00	%	0.94	%
Additional Paid in Capital		237,859			236,279			232,845		0.67	%	2.15	%
Retained Earnings		258,481			251,429			232,369		2.80	%	11.24	%
Accumulated Other Comprehensive Loss, Net of Tax		(3,589	)		(4,330	)		(4,360	)	-17.11	%	-17.68	%
Total Stockholders' Equity		492,965			483,592			461,066		1.94	%	6.92	%
Total Liabilities and Stockholders' Equity	$	5,192,094		$	5,124,564		$	4,899,766		1.32	%	5.97	%

CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended
										% Change		% Change
	September 30,			June 30,			September 30,			Sept. 2012 vs.		Sept. 2012 vs.
	2012			2012			2011			June 2012		Sept. 2011
INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	34		$	19		$	49		78.95	%	-30.61	%
Interest and Dividends on Securities		4,015			4,438			5,007		-9.53	%	-19.81	%
Interest on Loans		44,251			43,813			43,763		1.00	%	1.12	%
Interest on Loans Held for Sale		255			156			116		63.46	%	119.83	%
Total Interest Income		48,555			48,426			48,935		0.27	%	-0.78	%
INTEREST EXPENSE
Interest on Deposits		2,619			2,687			3,419		-2.53	%	-23.40	%
Interest on Borrowed Funds		3,098			3,111			3,842		-0.42	%	-19.36	%
Total Interest Expense		5,717			5,798			7,261		-1.40	%	-21.26	%
Net Interest Income		42,838			42,628			41,674		0.49	%	2.79	%
Less - Provision for Loan Losses		3,606			8,500			2,000		-57.58	%	80.30	%
Net Interest Income after Provision for Loan Losses		39,232			34,128			39,674		14.96	%	-1.11	%
NONINTEREST INCOME
Service Charges on Deposit Accounts		3,959			3,923			4,223		0.92	%	-6.25	%
Interchange and ATM Fees		2,422			2,399			2,005		0.96	%	20.80	%
Investment Management		3,723			3,827			3,491		-2.72	%	6.65	%
Mortgage Banking Income		1,445			1,463			907		-1.23	%	59.32	%
Increase in Cash Surrender Value of Life Insurance Policies		757			741			757		2.16	%	0.00	%
Proceeds from Life Insurance Policies		1,307			-			-		100.00	%	100.00	%
Loan Level Derivative Activity		1,047			1,371			295		-23.63	%	254.92	%
Gross Change on Write-Down of Certain Investments to Fair Value		403			(106	)		(318	)	-480.19	%	-226.73	%
Less: Portion of Other-Than-Temporary Impairment Losses Recognized in OCI		(403	)		30			290		-1443.33	%	-238.97	%
Net Loss on Write-Down of Certain Investments to Fair Value		-			(76	)		(28	)	-100.00	%	-100.00	%
Other Noninterest Income		1,448			1,335			665		8.46	%	117.74	%
Total Noninterest Income		16,108			14,983			12,315		7.51	%	30.80	%
NONINTEREST EXPENSE
Salaries and Employee Benefits		20,704			19,775			20,568		4.70	%	0.66	%
Occupancy and Equipment Expenses		4,218			4,234			4,107		-0.38	%	2.70	%
Data Processing and Facilities Management		1,144			1,099			1,152		4.09	%	-0.69	%
FDIC Assessment		775			830			691		-6.63	%	12.16	%
Merger and Acquisition Expenses		595			672			-		-11.46	%	100.00	%
Goodwill Impairment		2,227			-			-		100.00	%	100.00	%
Other Noninterest Expense		10,389			10,389			8,905		0.00	%	16.66	%
Total Noninterest Expense		40,052			36,999			35,423		8.25	%	13.07	%
INCOME BEFORE INCOME TAXES		15,288			12,112			16,566		26.22	%	-7.71	%
PROVISION FOR INCOME TAXES		3,687			3,238			4,607		13.87	%	-19.97	%
NET INCOME	$	11,601		$	8,874		$	11,959		30.73	%	-2.99	%
BASIC EARNINGS PER SHARE	$	0.54		$	0.41		$	0.56		31.71	%	-3.57	%
DILUTED EARNINGS PER SHARE	$	0.53		$	0.41		$	0.56		29.27	%	-5.36	%
BASIC AVERAGE SHARES		21,654,188			21,623,827			21,463,714
DILUTED AVERAGE SHARES		21,706,304			21,644,204			21,476,791
PERFORMANCE RATIOS:
Net Interest Margin (FTE)		3.72	%		3.80	%		3.84	%
Return on Average Assets		0.91	%		0.71	%		0.99	%
Return on Average Common Equity		9.39	%		7.34	%		10.28	%
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
NET INCOME	$	11,601		$	8,874		$	11,959		30.73	%	-2.99	%
Noninterest Income Components
Less - Proceeds from Life Insurance Policies, tax exempt		(1,307	)		-			-
Noninterest Expense Components
Add - Merger & Acquisition Expenses, net of tax		352			397			-
Add - Goodwill Impairment, net of tax		1,317			-			-
NET OPERATING EARNINGS	$	11,963		$	9,271		$	11,959		29.03	%	0.03	%
Diluted Earnings Per Share, on an Operating Basis	$	0.55		$	0.43		$	0.56		27.91	%	-1.79	%

CONSOLIDATED STATEMENTS OF INCOME
	Nine Months Ended						% Change
	September 30,			September 30,			Sept. 2012 vs.
	2012			2011			Sept. 2011
INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	85		$	80		6.25	%
Interest and Dividends on Securities		13,010			16,065		-19.02	%
Interest on Loans		131,142			130,917		0.17	%
Interest on Loans Held for Sale		541			305		77.38	%
Total Interest Income		144,778			147,367		-1.76	%
INTEREST EXPENSE
Interest on Deposits		8,045			10,448		-23.00	%
Interest on Borrowed Funds		9,413			11,696		-19.52	%
Total Interest Expense		17,458			22,144		-21.16	%
Net Interest Income		127,320			125,223		1.67	%
Less - Provision for Loan Losses		13,706			7,682		78.42	%
Net Interest Income after Provision for Loan Losses		113,614			117,541		-3.34	%
NONINTEREST INCOME
Service Charges on Deposit Accounts		11,771			12,374		-4.87	%
Interchange and ATM Fees		7,189			5,681		26.54	%
Investment Management		11,113			10,310		7.79	%
Mortgage Banking Income		4,238			2,637		60.71	%
Increase in Cash Surrender Value of Life Insurance Policies		2,211			2,323		-4.82	%
Proceeds from Life Insurance Policies		1,307			-		100.00	%
Net Gain on Sale of Securities		-			723		-100.00	%
Loan Level Derivative Activity		2,747			1,241		121.35	%
Gross Change on Write-Down of Certain Investments to Fair Value		571			101		465.35	%
Less: Portion of Other-Than-Temporary Impairment Losses Recognize in OCI		(647	)		(305	)	112.13	%
Net Loss on Write-Down of Certain Investments to Fair Value		(76	)		(204	)	-62.75	%
Other Noninterest Income		4,500			3,301		36.32	%
Total Noninterest Income		45,000			38,386		17.23	%
NONINTEREST EXPENSE
Salaries and Employee Benefits		61,915			60,582		2.20	%
Occupancy and Equipment Expenses		12,752			12,946		-1.50	%
Data Processing and Facilities Management		3,418			3,828		-10.71	%
FDIC Assessment		2,354			2,760		-14.71	%
Merger and Acquisition Expenses		1,267			-		100.00	%
Goodwill Impairment		2,227			-		100.00	%
Other Noninterest Expense		30,477			28,644		6.40	%
Total Noninterest Expense		114,410			108,760		5.19	%
INCOME BEFORE INCOME TAXES		44,204			47,167		-6.28	%
PROVISION FOR INCOME TAXES		11,546			12,900		-10.50	%
NET INCOME	$	32,658		$	34,267		-4.70	%
BASIC EARNINGS PER SHARE	$	1.51		$	1.60		-5.63	%
DILUTED EARNINGS PER SHARE	$	1.51		$	1.60		-5.63	%
BASIC AVERAGE SHARES		21,613,157			21,401,885
DILUTED AVERAGE SHARES		21,644,457			21,434,337
Net Interest Margin (FTE)		3.78	%		3.94	%
Return on Average Assets		0.87	%		0.97	%
Return on Average Common Equity		9.01	%		10.10	%
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
NET INCOME	$	32,658		$	34,267		-4.70	%
Noninterest Income Components
Less - Net Gain on Sale of Securities, net of tax		-			(428	)
Less - Proceeds from Life Insurance Policies, tax exempt		(1,307	)		-
Noninterest Expense Components
Add - Merger & Acquisition Expenses, net of tax		749			-
Add - Goodwill Impairment, net of tax		1,317			-
NET OPERATING EARNINGS	$	33,417		$	33,839		-1.25	%
Diluted Earnings Per Share, on an Operating Basis	$	1.54		$	1.58		-2.53	%

RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
	Three Months Ended																		Nine Months Ended
										% Change			% Change												% Change
	September 30,			June 30,			September 30,			Sept. 2012 vs.			Sept. 2012 vs.						September 30,			September 30,			Sept. 2012 vs.
	2012			2012			2011			June 2012			Sept. 2011						2012			2011			Sept. 2011
Noninterest Income GAAP	$	16,108		$	14,983		$	12,315			7.51	%		30.80	%				$	45,000		$	38,386		17.23	%
Less - Net Gain on Sale of Securities		-			-			-			n/a			n/a						-			(723	)	-100.00	%
Add - Other-Than-Temporary-Impairment on Securities		-			76			28			-100.00	%		-100.00	%					76			204		-62.75	%
Less - Proceeds from Life Insurance Policies, tax exempt		(1,307	)		-			-			-100.00	%		-100.00	%					(1,307	)		-		100.00	%
Noninterest Income as Adjusted	$	14,801		$	15,059		$	12,343			-1.71	%		19.91	%				$	43,769		$	37,867		15.59	%
Noninterest Expense GAAP	$	40,052		$	36,999		$	35,423			8.25	%		13.07	%				$	114,410		$	108,760		5.19	%
Less - Merger and Acquisition Expenses		(595	)		(672	)		-			-11.46	%		n/a						(1,267	)		-		100.00	%
Less - Goodwill Impairment		(2,226	)		-			-			n/a			n/a						(2,226	)		-		100.00	%
Noninterest Expense as Adjusted	$	37,231		$	36,327		$	35,423			2.49	%		5.10	%				$	110,917		$	108,760		1.98	%
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,
	2012			2012			2011			2012			2012			2011			2012			2011
Nonperforming Loans
Commercial & Industrial Loans	$	2,981		$	4,404		$	1,836		$	1,145		$	4,594		$	672		$	5,554		$	2,107
Commercial Real Estate Loans		9,249			9,371			10,673			433			2,133			(281	)		3,170			1,557
Small Business Loans		604			588			1,032			77			90			368			285			898
Residential Real Estate Loans		10,383			9,939			10,420			148			105			88			362			490
Home Equity		7,643			6,768			2,009			329			1,373			320			2,439			882
Installment Loans - Other		221			252			655			131			142			192			410			725
Total Nonperforming Loans / Total Net Charge-offs	$	31,081		$	31,322		$	26,625		$	2,263		$	8,437		$	1,359		$	12,220		$	6,659
Nonaccrual Securities		1,521			1,259			1,255
Other Assets in Possession		176			1			270
Other Real Estate Owned		8,751			11,275			8,497
Nonperforming Assets	$	41,529		$	43,857		$	36,647
Nonperforming Loans/Gross Loans		0.77	%		0.79	%		0.72	%
Allowance for Loan Losses/Nonperforming Loans		160.05	%		154.53	%		177.57	%
Gross Loans/Total Deposits		98.50	%		97.61	%		98.30	%
Allowance for Loan Losses/Total Loans		1.23	%		1.22	%		1.27	%
Net charge-offs to average loans (quarter annualized)											0.22	%		0.86	%		0.15	%
Net charge-offs to average loans (year-to-date)																				0.42	%		0.24	%
	Troubled Debt Restructurings
	At
	September 30,			June 30,			September 30,
	2012			2012			2011
Troubled Debt Restructurings on Accrual Status	$	46,823		$	40,184		$	35,633
Troubled Debt Restructurings on Nonaccrual Status		5,962			4,561			8,520
Total Troubled Debt Restructurings	$	52,785		$	44,745		$	44,153
	Three Months Ending			Three Months Ending			Three Months Ending
	September 30,			June 30,			September 30,
Nonperforming Assets Reconciliation	2012			2012			2011
Nonperforming Assets Beginning Balance	$	43,857		$	40,736		$	30,963
New to Nonperforming		7,981			18,895			12,937
Loans Charged-Off		(2,826	)		(8,768	)		(2,171	)
Loans Paid-Off		(3,837	)		(2,934	)		(2,708	)
Loans Transferred to Other Real Estate Owned/Other Assets		(347	)		(3,579	)		(1,458	)
Loans Restored to Accrual Status		(1,081	)		(3,946	)		(1,415	)
New to Other Real Estate Owned		347			3,579			1,458
Sale of Other Real Estate Owned		(2,708	)		(383	)		(300	)
Other		143			257			(659	)
Nonperforming Assets Ending Balance	$	41,529		$	43,857		$	36,647
	September 30,			June 30,			September 30,
Financial Ratios	2012			2012			2011
Book Value per Common Share	$	22.75		$	22.36		$	21.48
Tangible Common Book Value per Share (proforma to include the tax deductibility of goodwill) - Non-GAAP	$	17.28		$	16.80		$	15.85
Tangible Common Capital/Tangible Assets		7.04	%		6.89	%		6.72	%
Tangible Common Capital/Tangible Asset (proforma to include the tax deductibility of goodwill) - Non-GAAP		7.38	%		7.26	%		7.12	%
Capital Adequacy
Tier one leverage capital ratio (1)		8.62	%		8.68	%		8.59	%
Tier one common ratio (1)		9.09	%		9.13	%		9.02	%
(1) Estimated number for September 30, 2012

INDEPENDENT BANK CORP. SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited - Dollars in Thousands)	Three Months Ended
	September 30, 2012						June 30, 2012						September 30, 2011
			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	$	53,650	$	34	0.25	%	$	30,890	$	19	0.25	%	$	78,285	$	49	0.25	%
Securities:
Trading Assets		-		-	-			-		-	-			8,437		72	3.39	%
Taxable Investment Securities		513,712		3,995	3.09	%		544,822		4,415	3.26	%		526,509		4,856	3.66	%
Nontaxable Investment Securities (1)		1,649		34	8.20	%		1,938		39	8.09	%		7,104		133	7.43	%
Total Securities:		515,361		4,029	3.11	%		546,760		4,454	3.28	%		542,050		5,061	3.70	%
Loans Held for Sale		34,106		255	2.97	%		20,079		156	3.12	%		12,422		116	3.70	%
Loans:
Commercial and Industrial		636,533		6,447	4.03	%		620,364		6,294	4.08	%		555,745		5,840	4.17	%
Commercial Real Estate (1)		1,920,905		23,173	4.80	%		1,896,941		22,973	4.87	%		1,800,914		23,496	5.18	%
Commercial Construction		162,150		1,695	4.16	%		149,627		1,578	4.24	%		129,540		1,495	4.58	%
Small Business		78,629		1,121	5.67	%		80,324		1,132	5.67	%		77,850		1,141	5.81	%
Total Commercial		2,798,217		32,436	4.61	%		2,747,256		31,977	4.68	%		2,564,049		31,972	4.95	%
Residential Real Estate		381,247		4,060	4.24	%		393,377		4,267	4.36	%		450,225		4,915	4.33	%
Residential Construction		11,567		104	3.58	%		15,041		161	4.31	%		6,735		73	4.30	%
Home Equity		787,052		7,236	3.66	%		757,850		6,939	3.68	%		638,991		6,103	3.79	%
Total Consumer Real Estate		1,179,866		11,400	3.84	%		1,166,268		11,367	3.92	%		1,095,951		11,091	4.01	%
Total Other Consumer		30,155		669	8.83	%		34,261		728	8.55	%		49,864		978	7.78	%
Total Loans		4,008,238		44,505	4.42	%		3,947,785		44,072	4.49	%		3,709,864		44,041	4.71	%
Total Interest-Earning Assets	$	4,611,355	$	48,823	4.21	%	$	4,545,514	$	48,701	4.31	%	$	4,342,621	$	49,267	4.50	%
Cash and Due from Banks		75,876						63,703						57,103
Federal Home Loan Bank Stock		33,564						33,564						35,854
Other Assets		374,208						362,746						345,400
Total Assets	$	5,095,003					$	5,005,527					$	4,780,978
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	1,482,213	$	707	0.19	%	$	1,482,889	$	687	0.19	%	$	1,364,307	$	839	0.24	%
Money Market		801,921		615	0.31	%		799,831		621	0.31	%		723,736		763	0.42	%
Time Deposits		635,729		1,297	0.81	%		627,250		1,379	0.88	%		659,154		1,817	1.09	%
Total interest-bearing deposits:	$	2,919,863	$	2,619	0.36	%	$	2,909,970	$	2,687	0.37	%	$	2,747,197	$	3,419	0.49	%
Borrowings:
Federal Home Loan Bank and Other Borrowings	$	198,212	$	1,255	2.52	%	$	219,846	$	1,280	2.34	%	$	264,066	$	1,814	2.73	%
Wholesale Repurchase Agreements		50,000		292	2.32	%		50,000		289	2.32	%		50,000		412	3.27	%
Customer Repurchase Agreements		161,097		76	0.19	%		145,963		83	0.23	%		151,588		147	0.38	%
Junior Subordinated Debentures		61,857		928	5.97	%		61,857		918	5.97	%		61,857		922	5.91	%
Subordinated Debentures		30,000		547	7.25	%		30,000		541	7.25	%		30,000		547	7.23	%
Total Borrowings	$	501,166	$	3,098	2.46	%	$	507,666	$	3,111	2.46	%	$	557,511	$	3,842	2.73	%
Total Interest-Bearing Liabilities	$	3,421,029	$	5,717	0.66	%	$	3,417,636	$	5,798	0.68	%	$	3,304,708	$	7,261	0.87	%
Demand Deposits		1,093,387						1,023,048						944,518
Other Liabilities		89,157						78,430						70,380
Total Liabilities	$	4,603,573					$	4,519,114					$	4,319,606
Stockholders' Equity		491,430						486,413						461,372
Total Liabilities and Stockholders' Equity	$	5,095,003					$	5,005,527					$	4,780,978
Net Interest Income			$	43,106					$	42,903					$	42,006
Interest Rate Spread (2)					3.55	%					3.63	%					3.63	%
Net Interest Margin (3)					3.72	%					3.80	%					3.84	%
Supplemental Information:
Total Deposits, including Demand Deposits	$	4,013,250	$	2,619			$	3,933,018	$	2,687			$	3,691,715	$	3,419
Cost of Total Deposits					0.26	%					0.27	%					0.37	%
Total Funding Liabilities, including Demand Deposits	$	4,514,416	$	5,717			$	4,440,684	$	5,798			$	4,249,226	$	7,261
Cost of Total Funding Liabilities					0.50	%					0.53	%					0.68	%

(1)	The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $268,000, $275,000, and $332,000 for the three months ended September 30, 2012, June 30, 2012, and September 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.

	Nine Months Ended
	September 30, 2012						September 30, 2011
			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	$	45,951	$	85	0.25	%	$	43,181	$	80	0.25	%
Securities:
Trading Assets		1,823		38	2.78	%		8,388		206	3.28	%
Taxable Investment Securities		529,560		12,900	3.25	%		550,425		15,573	3.78	%
Nontaxable Investment Securities (1)		2,026		121	7.98	%		8,619		484	7.50	%
Total Securities:		533,409		13,059	3.27	%		567,432		16,263	3.83	%
Loans Held for Sale		23,829		541	3.03	%		11,750		305	3.47	%
Loans:
Commercial and Industrial		612,084		18,642	4.07	%		530,774		16,951	4.27	%
Commercial Real Estate (1)		1,888,773		68,881	4.87	%		1,779,379		70,310	5.28	%
Commercial Construction		151,541		4,816	4.25	%		127,285		4,388	4.61	%
Small Business		79,218		3,390	5.72	%		79,314		3,471	5.85	%
Total Commercial		2,731,616		95,729	4.68	%		2,516,752		95,120	5.05	%
Residential Real Estate		395,026		12,793	4.33	%		458,609		15,481	4.51	%
Residential Construction		12,739		395	4.14	%		5,005		172	4.59	%
Home Equity		754,294		20,835	3.69	%		622,952		17,645	3.79	%
Total Consumer Real Estate		1,162,059		34,023	3.91	%		1,086,566		33,298	4.10	%
Total Other Consumer		34,355		2,168	8.43	%		56,688		3,305	7.79	%
Total Loans		3,928,030		131,920	4.49	%		3,660,006		131,723	4.81	%
Total Interest-Earning Assets	$	4,531,219	$	145,605	4.29	%	$	4,282,369	$	148,371	4.63	%
Cash and Due from Banks		65,972						55,101
Federal Home Loan Bank Stock		34,133						35,854
Other Assets		368,140						329,456
Total Assets	$	4,999,464					$	4,702,780
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	1,463,255	$	2,091	0.19	%	$	1,340,077	$	2,449	0.24	%
Money Market		790,589		1,875	0.32	%		723,675		2,362	0.44	%
Time Deposits		629,840		4,079	0.87	%		667,279		5,636	1.13	%
Total interest-bearing deposits:	$	2,883,684	$	8,045	0.37	%	$	2,731,031	$	10,447	0.51	%
Borrowings:
Federal Home Loan Bank and Other Borrowings	$	214,747	$	3,879	2.41	%	$	293,664	$	5,468	2.49	%
Wholesale Repurchase Agreements		50,000		870	2.32	%		50,000		1,455	3.89	%
Customer Repurchase Agreements		155,205		268	0.23	%		137,221		412	0.40	%
Junior Subordinated Debentures		61,857		2,766	5.97	%		61,857		2,738	5.92	%
Subordinated Debentures		30,000		1,630	7.26	%		30,000		1,624	7.24	%
Total Borrowings	$	511,809	$	9,413	2.46	%	$	572,742	$	11,697	2.73	%
Total Interest-Bearing Liabilities	$	3,395,493	$	17,458	0.69	%	$	3,303,773	$	22,144	0.90	%
Demand Deposits		1,034,180						882,460
Other Liabilities		85,410						62,968
Total Liabilities	$	4,515,083					$	4,249,201
Stockholders' Equity		484,381						453,579
Total Liabilities and Stockholders' Equity	$	4,999,464					$	4,702,780
Net Interest Income			$	128,147					$	126,227
Interest Rate Spread (2)					3.60	%					3.73	%
Net Interest Margin (3)					3.78	%					3.94	%
Supplemental Information:
Total Deposits, including Demand Deposits	$	3,917,864	$	8,045			$	3,613,491	$	10,447
Cost of Total Deposits					0.27	%					0.39	%
Total Funding Liabilities, including Demand Deposits	$	4,429,673	$	17,458			$	4,186,233	$	22,144
Cost of Total Funding Liabilities					0.53	%					0.71	%

(1)	The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $827,000 and $1.0 million for the nine months ended September 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