Independent Bank (INDB) 8-K Independent Bank Corp. Reports Second Quarter Operating Net Income of $17.9 Million

Exhibit 99.1

Independent Bank Corp. Reports Second Quarter Operating Net Income of $17.9 Million

ROCKLAND, Mass.--(BUSINESS WIRE)--July 16, 2015--Independent Bank Corp. (NASDAQ: INDB), parent of Rockland Trust Company, today announced 2015 second quarter net income of $17.5 million, or $0.67 per diluted share as compared to $9.5 million, or $0.38 per diluted share in the prior quarter. The increase in the Company’s earnings was largely attributable to merger and acquisition costs recognized during the first quarter of $6.3 million, net of tax, relating to the February 20, 2015 acquisition of Peoples Federal Bancshares, Inc. (“Peoples”). When excluding these expenses and other items that the Company considers to be non-core, net operating earnings for the second quarter were $17.9 million, or $0.68 per diluted share, versus $15.8 million, or $0.63 per diluted share in the prior quarter, representing an increase of 12.9% and 7.9%, respectively.

“Due to the teamwork and extraordinary efforts of my many colleagues, Rockland Trust has performed very well during the first half of 2015,” said Christopher Oddleifson, the President and Chief Executive Officer of Independent and Rockland Trust. “While loan growth remains challenging due to intense competition, our disciplined and focused approach has resulted in strong deposit growth and continued pristine asset quality. Rockland Trust is well positioned for sustained organic growth and ready to take advantage of market opportunities.”

BALANCE SHEET

Total assets of $7.2 billion at June 30, 2015 increased by $284.8 million, or 4.1%, from the prior quarter and by $847.6 million, or 13.4%, as compared to the year ago period, inclusive of the acquisition of Peoples.

The commercial loan portfolio rose by $58.0 million or 1.5% (6.1% annualized) over the prior quarter, led by growth in the commercial and industrial and small business sectors. This reflected a pick up in business activity during the second quarter and the Company’s strong market presence and origination efforts. The home equity portfolio grew as well due to sustained promotional campaigns. These increases were countered by a reduction in the residential mortgage portfolio due to higher refinancing volumes and attrition in the acquired Peoples portfolio. These factors resulted in net growth in total loans at June 30, 2015 of $41.7 million, or 0.8% (3.0% annualized) over the prior quarter. Compared to the prior year period, total loans increased by $549.3 million, or 11.2%, inclusive of the Peoples acquisition.

Total deposits at June 30, 2015 grew sharply by $299.8 million, or 5.3% over the prior quarter and by $672.4 million, or 12.7% over the prior year period, inclusive of the acquisition of Peoples. Core deposits continued their steady growth with a rise of $320.6 million, or 26.2% on an annualized basis over the prior quarter, and as of June 30, 2015 represent 87.7% of total deposits. The growth in total and core deposits for the quarter was due in part to large short-term deposits related to the Company’s tax section 1031 exchange business. The increase in these short-term deposits also contributed to the increase in the Company’s short-term investments at quarter end. Total cost of deposits decreased by one basis point during the quarter to 20 basis points, reflecting the Company’s continued emphasis on core deposit growth.

The securities portfolio increased from the prior quarter to $803.8 million at June 30, 2015. The increase of $21.6 million was due primarily to the purchase of Small Business Administration pooled securities and mortgage backed securities, offset by sales of mortgage backed securities and certain pooled trust preferred securities. The securities portfolio comprised 11.2% of total assets as of June 30, 2015.

Stockholders’ equity at June 30, 2015 rose to $743.3 million, an increase of 1.4% from March 31, 2015. Compared to the year ago period, stockholders’ equity has increased by $126.8 million, or 20.6%. The strong growth in capital led to an increase in the Company’s tangible book value per share, which increased by $0.40, or 2.0%, during the second quarter, to $20.22, which is 11.1% above the prior year level. The Company’s tangible common ratio of 7.58% represents a decrease of 15 basis points from the prior quarter, as strong deposit growth drove a corresponding increase in total assets.

NET INTEREST INCOME

Net interest income increased to $53.7 million for the second quarter as compared to $51.2 million in the linked quarter, driven primarily by higher earning asset levels and a full quarter of income from the loans acquired in the Peoples acquisition. During the second quarter, the Company’s net interest margin decreased by seven basis points from the prior quarter to 3.43%. The decrease was driven by the benefit received in the prior quarter from purchase accounting adjustments, ongoing pressure on asset yields, and increased liquid asset levels.

NONINTEREST INCOME

The Company recorded noninterest income of $20.3 million during the second quarter, which represents a $3.7 million, or 22.4%, increase from the linked quarter. Significant changes in noninterest income in the second quarter compared to the prior quarter included the following:

• Deposit account fees and interchange and ATM fees increased by $966,000, or 13.3%, mainly due to the resumption of normal activity after the prior quarter’s seasonal and weather-related reductions in customer activity.
• Investment management income increased by $421,000, or 8.2%, primarily driven by seasonal tax preparation fees and continued growth in assets under administration, which increased by 1.3% to $2.6 billion.
• Loan level derivative income increased $1.0 million due to increased volume based on customer demand.
• Income from the cash surrender value of life insurance policies increased $171,000, or 22.0%, due primarily to the additional policies acquired from Peoples.
• The Company recorded gains on sale of fixed income securities during the quarter of $798,000. There were no such gains in the prior quarter.
• Other noninterest income increased $217,000, or 11.7%, mainly due to increases in asset based lending fee income, foreign currency exchange fees and affordable housing tax credits.

NONINTEREST EXPENSE

The Company recorded noninterest expense of $48.6 million during the second quarter, a $6.3 million, or 11.5%, decrease from the prior quarter. Significant changes in noninterest expense in the second quarter compared to the prior quarter included the following:

• Salaries and employee benefits increased $1.0 million, or 4.1%, due primarily to the full quarter’s impact of the Peoples acquisition along with increases in performance-based incentive compensation. These increases were partially offset by decreases in payroll taxes.
• Occupancy and equipment expense decreased $722,000, or 11.3%, mainly due to high snow removal costs incurred in the first quarter, partially offset by increases stemming from the addition of Peoples facilities as well as an impairment charge of $109,000 relating to an acquired facility.
• The Company incurred $271,000 and $10.2 million in merger and acquisition costs during the second and first quarter of 2015, respectively, related to the Peoples acquisition.
• The Company incurred a loss of $1.1 million on the sale of pooled trust preferred and mortgage backed securities during the second quarter. There was no such loss during the prior quarter.
• Other noninterest expenses increased by $2.0 million, or 18.4%, driven primarily by increased advertising costs, other losses and charge-offs, mortgage operations expenses, debit card expenses, and shareholder relations. These increases were partially offset by a decrease of $420,000 in loan workout costs.

The Company generated a return on average assets and a return on average common equity of 1.00% and 9.43%, respectively, in the second quarter, as compared to 0.58% and 5.58%, respectively, for the prior quarter. On an operating basis, the return on average assets and the return on average common equity for the three months ended June 30, 2015 were 1.03% and 9.65%, respectively, as compared to 0.97% and 9.33%, respectively, for the prior quarter.

ASSET QUALITY

Asset quality metrics remained strong during the second quarter with total net charge-offs totaling $220,000, or 0.02% of average loans on an annualized basis, compared to 0.01% for the quarter ending March 31, 2015. The provision for loan losses was $700,000 for the second quarter as compared to a negative provision of $500,000 in the first quarter. Nonperforming loans decreased during the second quarter by $4.2 million to $26.2 million, and represent 0.48% of total loans at June 30, 2015, as compared to 0.56% of total loans at March 31, 2015. In total, nonperforming assets declined to $31.3 million at the end of the second quarter, from $40.3 million at the end of the prior quarter, reflecting the aforementioned reduction in nonperforming loans, as well as the sale of the Company’s nonaccruing pooled trust preferred securities and a reduction in other real estate owned. Delinquency as a percentage of loans was 0.49% at June 30, 2015, a decrease of four basis points from the prior quarter.

The allowance for loan losses was $55.0 million at June 30, 2015, as compared to $54.5 million at March 31, 2015. The Company’s allowance for loan losses as a percentage of loans was 1.01% at both June 30, 2015 and March 31, 2015, inclusive of the recently acquired Peoples portfolio.

CONFERENCE CALL INFORMATION

Christopher Oddleifson, Chief Executive Officer and Robert Cozzone, Chief Financial Officer will host a conference call to discuss second quarter earnings at 10:00 a.m. Eastern Time on Friday, July 17, 2015. Internet access to the call is available on the Company’s website at www.rocklandtrust.com or via telephonic access by dial-in at 1-888-336-7153 reference: INDB. A replay of the call will be available by calling 1-877-344-7529. Replay Conference Number: 10067941 and will available through July 31, 2015. Additionally, a webcast replay will be available until July 17, 2016.

ABOUT INDEPENDENT BANK CORP.

Independent Bank Corp. has approximately $7.2 billion in assets and is the holding company for Rockland Trust Company, a full-service commercial bank headquartered in Massachusetts. Rockland Trust offers a wide range of banking, investment, and insurance services to businesses and individuals through retail branches, commercial lending offices, investment management offices, and residential lending centers located in Eastern Massachusetts and Rhode Island, as well as through telephone banking, mobile banking, and the Internet. Rockland Trust, which was named to Sandler 2014 Sm-All Stars list of top performing small-cap banks and thrifts in the country, is an FDIC Member and an Equal Housing Lender. To find out why Rockland Trust is the bank “Where Each Relationship Matters^®,” please 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. These statements may be identified by such forward-looking terminology as “expect,” “achieve,” “plan,” “believe,” “future,” “positioned,” “continued,” “will,” “would,” “potential,” or similar statements or variations of such terms. Actual results may differ from those contemplated by these forward-looking statements.

Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to:

• a weakening in the United States economy in general and the regional and local economies within the New England region and the Company’s market area;
• adverse changes in the local real estate market;
• acquisitions may not produce results at levels or within time frames originally anticipated and may result in unforeseen integration issues or impairment of goodwill and/or other intangibles;
• changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System;
• higher than expected tax rates and any changes in and any failure by the Company to comply with tax laws generally and requirements of the federal New Markets Tax Credit program;
• unexpected changes in market interest rates for interest earning assets and/or interest bearing liabilities;
• adverse changes in asset quality including an unanticipated credit deterioration in our loan portfolio;
• unexpected increased competition in the Company’s market area;
• unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather or other external events;
• a deterioration in the conditions of the securities markets;
• our inability to adapt to changes in information technology;
• electronic fraudulent activity within the financial services industry, especially in the commercial banking sector;
• adverse changes in consumer spending and savings habits;
• the inability to realize expected revenue synergies from the Peoples Federal Bancshares merger in the amounts or in the timeframe anticipated;
• inability to retain customers and employees, including those of Peoples Federal Bancshares;
• the effect of new laws and regulations regarding the financial services industry including, but not limited to, the Dodd-Frank Wall Street Reform and Consumer Protection Act;
• changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) generally applicable to the Company’s business;
• changes in accounting policies, practices and standards, as may be adopted by the regulatory agencies as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters; and
• other unexpected material adverse changes in our operations or earnings.

The Company wishes to caution readers not to place undue reliance on any forward-looking statements as the Company’s business and its forward-looking statements involve substantial known and unknown risks and uncertainties included in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q (“Risk Factors”). Except as required by law, 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. Any public statements or disclosures by the Company following this release which modify or impact any of the forward-looking statements contained in this release will be deemed to modify or supersede such statements in this release. In addition to the information set forth in this press release, you should carefully consider the Risk Factors.

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”). This information includes operating earnings and operating EPS, return on average assets and return on average common equity calculated on an operating basis. The non-GAAP financial measures, including operating earnings and operating EPS, exclude gain or loss due to items that management believes are unrelated to its core banking business and will not have a material financial impact on operating results in future periods, such as gains or losses on the sales of securities, merger and acquisition expenses, and other items. The Company’s management uses operating earnings and operating EPS to measure the strength of the Company’s core banking business and to identify trends that may to some extent be obscured by such excluded gains or losses. The Company has included information on these non-GAAP measures 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. These non-GAAP measures 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 these non-GAAP measures can be of substantial importance to the Company’s results for any particular quarter or year. The Company’s non-GAAP performance measures, including operating earnings and operating EPS, are not necessarily comparable to non-GAAP performance measures which may be presented by other companies.

INDEPENDENT BANK CORP. FINANCIAL SUMMARY
										% Change Jun 2015 vs. Mar 2015		% Change Jun 2015 vs. Jun 2014
CONSOLIDATED BALANCE SHEETS (Unaudited dollars in thousands)	June 30, 2015			March 31, 2015			June 30, 2014
Assets
Cash and due from banks	$	100,054		$	108,804		$	119,326		-8.04	%	-16.15	%
Interest-earning deposits with banks		295,722			47,470			151,538		522.97	%	95.15	%
Securities
Securities - trading		489			494			-		-1.01	%	100.00	%
Securities - available for sale		375,001			387,038			340,081		-3.11	%	10.27	%
Securities - held to maturity		428,339			394,745			373,888		8.51	%	14.56	%
Total securities		803,829			782,277			713,969		2.76	%	12.59	%
Loans held for sale		10,728			9,507			16,125		12.84	%	-33.47	%
Loans
Commercial and industrial		873,105			829,380			853,327		5.27	%	2.32	%
Commercial real estate		2,630,062			2,606,444			2,300,633		0.91	%	14.32	%
Commercial construction		278,692			291,666			252,222		-4.45	%	10.49	%
Small business		91,367			87,709			78,955		4.17	%	15.72	%
Total commercial		3,873,226			3,815,199			3,485,137		1.52	%	11.14	%
Residential real estate		653,370			681,379			541,601		-4.11	%	20.64	%
Home equity - 1st position		526,370			519,978			503,149		1.23	%	4.62	%
Home equity - subordinate positions		364,523			356,938			337,666		2.13	%	7.95	%
Total consumer real estate		1,544,263			1,558,295			1,382,416		-0.90	%	11.71	%
Other consumer		17,293			19,624			17,947		-11.88	%	-3.64	%
Total loans		5,434,782			5,393,118			4,885,500		0.77	%	11.24	%
Less - allowance for loan losses		(54,995	)		(54,515	)		(54,538	)	0.88	%	0.84	%
Net loans		5,379,787			5,338,603			4,830,962		0.77	%	11.36	%
Federal Home Loan Bank stock		37,485			37,485			37,350		0.00	%	0.36	%
Bank premises and equipment		74,143			73,315			64,166		1.13	%	15.55	%
Goodwill and core deposit intangible		214,331			215,058			181,460		-0.34	%	18.11	%
Other assets		279,842			298,566			233,422		-6.27	%	19.89	%
Total assets	$	7,195,921		$	6,911,085		$	6,348,318		4.12	%	13.35	%
Liabilities and Stockholders' Equity
Deposits
Demand deposits	$	1,832,971		$	1,603,124		$	1,462,761		14.34	%	25.31	%
Savings and interest checking accounts		2,285,968			2,232,832			2,096,029		2.38	%	9.06	%
Money market		1,125,888			1,088,223			1,036,513		3.46	%	8.62	%
Time certificates of deposit		725,703			746,533			702,858		-2.79	%	3.25	%
Total deposits		5,970,530			5,670,712			5,298,161		5.29	%	12.69	%
Borrowings
Federal Home Loan Bank borrowings		108,190			108,246			60,174		-0.05	%	79.80	%
Customer repurchase agreements and other short-term borrowings		119,439			128,138			131,766		-6.79	%	-9.36	%
Wholesale repurchase agreements		50,000			50,000			50,000		0.00	%	0.00	%
Junior subordinated debentures		73,576			73,631			73,797		-0.07	%	-0.30	%
Subordinated debentures		35,000			35,000			30,000		0.00	%	16.67	%
Total borrowings		386,205			395,015			345,737		-2.23	%	11.70	%
Total deposits and borrowings		6,356,735			6,065,727			5,643,898		4.80	%	12.63	%
Other liabilities		95,869			112,472			87,931		-14.76	%	9.03	%
Stockholders' equity
Common stock		259			259			236		0.00	%	9.75	%
Additional paid in capital		401,437			399,936			307,720		0.38	%	30.46	%
Retained earnings		343,757			333,104			310,226		3.20	%	10.81	%
Accumulated other comprehensive loss, net of tax		(2,136	)		(413	)		(1,693	)	417.19	%	26.17	%
Total stockholders' equity		743,317			732,886			616,489		1.42	%	20.57	%
Total liabilities and stockholders' equity	$	7,195,921		$	6,911,085		$	6,348,318		4.12	%	13.35	%

CONSOLIDATED STATEMENTS OF INCOME (Unaudited dollars in thousands)	Three Months Ended
							% Change Jun 2015 vs. Mar 2015	% Change Jun 2015 vs. Jun 2014
	June 30, 2015		March 31, 2015		June 30, 2014
Interest income
Interest on fed funds sold and short term investments	$	60	$	30	$	69	100.00%	-13.04%
Interest and dividends on securities		4,882		4,661		4,727	4.74%	3.28%
Interest on loans		54,016		51,687		49,393	4.51%	9.36%
Interest on loans held for sale		58		51		96	13.73%	-39.58%
Total interest income		59,016		56,429		54,285	4.58%	8.72%
Interest expense
Interest on deposits		2,922		2,763		2,789	5.75%	4.77%
Interest on borrowed funds		2,347		2,417		2,443	-2.90%	-3.93%
Total interest expense		5,269		5,180		5,232	1.72%	0.71%
Net interest income		53,747		51,249		49,053	4.87%	9.57%
Less - provision (benefit) for loan losses		700		(500)		2,250	-240.00%	-68.89%
Net interest income after provision (benefit) for loan losses		53,047		51,749		46,803	2.51%	13.34%
Noninterest income
Deposit account fees		4,465		4,166		4,463	7.18%	0.04%
Interchange and ATM fees		3,767		3,100		3,322	21.52%	13.40%
Investment management		5,528		5,107		5,136	8.24%	7.63%
Mortgage banking income		1,226		1,126		877	8.88%	39.79%
Increase in cash surrender value of life insurance policies		949		778		721	21.98%	31.62%
Gain on life insurance benefits		-		-		337	n/a	-100.00%
Gain on sale of fixed income securities		798		-		-	100.00%	100.00%
Gain (loss) on sale of equity securities		19		-		(20)	100.00%	-195.00%
Loan level derivative income		1,430		418		324	242.11%	341.36%
Other noninterest income		2,079		1,862		1,697	11.65%	22.51%
Total noninterest income		20,261		16,557		16,857	22.37%	20.19%
Noninterest expense
Salaries and employee benefits		26,318		25,288		22,843	4.07%	15.21%
Occupancy and equipment		5,672		6,394		5,301	-11.29%	7.00%
Data processing and facilities management		1,228		1,122		1,179	9.45%	4.16%
FDIC assessment		1,017		956		966	6.38%	5.28%
Merger and acquisition		271		10,230		-	-97.35%	100.00%
Loss on sale of fixed income securities		1,124		-		-	100.00%	100.00%
Loss on sale of equity securities		8		-		-	100.00%	100.00%
Loss on termination of derivatives		-		-		1,122	-n/a	-100.00%
Other noninterest expense		13,006		10,987		11,569	18.37%	12.41%
Total noninterest expense		48,644		54,977		42,980	-11.52%	13.18%
Income before income taxes		24,664		13,329		20,680	85.04%	19.26%
Provision for income taxes		7,213		3,869		5,934	86.43%	21.55%
Net income	$	17,451	$	9,460	$	14,746	84.47%	18.34%
Basic earnings per share	$	0.67	$	0.38	$	0.62	76.32%	8.06%
Diluted earnings per share	$	0.67	$	0.38	$	0.61	76.32%	9.84%
Basic average shares		26,149,593		24,959,865		23,897,413
Diluted average shares		26,221,412		25,040,080		23,991,973
Performance ratios
Net interest margin (FTE)		3.43%		3.50%		3.48%
Return on average assets		1.00%		0.58%		0.94%
Return on average common equity		9.43%		5.58%		9.65%
Reconciliation table - non-GAAP financial information
Net income	$	17,451	$	9,460	$	14,746	84.47%	18.34%
Noninterest income components
Less - gain on sale of fixed income securities, net of tax		(473)		-		-
Less - gain on life insurance benefits (tax exempt)		-		-		(337)
Noninterest expense components
Add - loss on termination of derivatives, net of tax		-		-		663
Add - loss on extinguishmnet of debt, net of tax		-		72		-
Add - loss on sale of fixed income securities, net of tax		667		-		-
Add - merger & acquisition expenses, net of tax		155		6,287		-
Add - impairment on acquired facilities, net of tax		65		-		-
Net operating earnings	$	17,865	$	15,819	$	15,072	12.94%	18.53%
Diluted earnings per share, on an operating basis	$	0.68	$	0.63	$	0.63	7.94%	7.94%

CONSOLIDATED STATEMENTS OF INCOME
	Six Months Ended				% Change
	June 30, 2015		June 30, 2014		Jun 2015 vs. Jun 2014
Interest income
Interest on fed funds sold and short term investments	$	91	$	106	-14.15%
Interest and dividends on securities		9,543		9,414	1.37%
Interest on loans		105,704		97,597	8.31%
Interest on loans held for sale		109		147	-25.85%
Total interest income		115,447		107,264	7.63%
Interest expense
Interest on deposits		5,685		5,579	1.90%
Interest on borrowed funds		4,765		5,026	-5.19%
Total interest expense		10,450		10,605	-1.46%
Net interest income		104,997		96,659	8.63%
Less - provision for loan losses		200		6,752	-97.04%
Net interest income after provision for loan losses		104,797		89,907	16.56%
Noninterest income
Deposit account fees		8,631		8,821	-2.15%
Interchange and ATM fees		6,868		6,298	9.05%
Investment management		10,635		9,739	9.20%
Mortgage banking income		2,352		1,364	72.43%
Increase in cash surrender value of life insurance policies		1,727		1,443	19.68%
Gain on life insurance benefits		-		1,964	-100.00%
Gain on sale of fixed income securities		798		-	100.00%
Gain on sale of equity securities		19		71	-73.24%
Loan level derivative income		1,848		1,070	72.71%
Other noninterest income		3,939		3,602	9.36%
Total noninterest income		36,817		34,372	7.11%
Noninterest expense
Salaries and employee benefits		51,606		45,923	12.38%
Occupancy and equipment expenses		12,066		11,447	5.41%
Data processing and facilities management		2,350		2,432	-3.37%
FDIC assessment		1,973		1,871	5.45%
Merger and acquisition expenses		10,501		77	13537.66%
Loss on sale of fixed income securities		1,124		-	100.00%
Loss on sale of equity securities		8		-	100.00%
Loss on termination of derivatives		-		1,122	-100.00%
Other noninterest expense		23,994		21,994	9.09%
Total noninterest expense		103,622		84,866	22.10%
Income before income taxes		37,992		39,413	-3.61%
Provision for income taxes		11,082		11,284	-1.79%
Net income	$	26,910	$	28,129	-4.33%
Basic earnings per share	$	1.05	$	1.18	-11.02%
Diluted earnings per share	$	1.05	$	1.17	-10.26%
Basic average shares		25,558,016		23,858,456
Diluted average shares		25,634,642		23,956,000
Performance ratios
Net interest margin (FTE)		3.47%		3.48%
Return on average assets		0.80%		0.91%
Return on average common equity		7.59%		9.34%
Reconciliation table - non-GAAP financial information
Net income	$	26,910	$	28,129	-4.33%
Noninterest income components
Less - gain on sale of fixed income securities, net of tax		(473)		-
Less - gain on life insurance benefits, tax exempt		-		(1,964)
Noninterest expense components
Add - loss on extinguishment of debt, net of tax		72		-
Add - loss on termination of derivatives, net of tax		-		663
Add - loss on sale of fixed income securities, net of tax		667		-
Add - merger & acquisition expenses, net of tax		6,442		66
Add - impairment on acquired facilities, net of tax		65		298
Net operating earnings	$	33,683	$	27,192	23.87%
Diluted earnings per share, on an operating basis	$	1.31	$	1.14	14.91%

Reconciliation table - non-GAAP financial information
(Unaudited dollars in thousands)	Three Months Ended															Six Months Ended
										% Change												% Change
	June 30, 2015			March 31, 2015			June 30, 2014			Jun 2015 vs. Mar 2015			Jun 2015 vs. Jun 2014			June 30, 2015			June 30, 2014			Jun 2015 vs. Jun 2014
Noninterest income GAAP	$	20,261		$	16,557		$	16,857			22.37	%		20.19	%	$	36,817		$	34,372			7.11	%
Less - gain on sale of fixed income securities		(798	)		-			-			100.00	%		100.00	%		(798	)		-			100.00	%
Less - gain on life insurance benefits		-			-			(337	)		n/a			-100.00	%		-			(1,964	)		-100.00	%
Total noninterest income as adjusted	$	19,463		$	16,557		$	16,520			17.55	%		17.81	%	$	36,019		$	32,408			11.14	%
Noninterest expense GAAP	$	48,644		$	54,977		$	42,980			-11.52	%		13.18	%	$	103,622		$	84,866			22.10	%
Less - loss on extinguishment of debt		-			(122	)		-			-100.00	%		n/a			(122	)		-			100.00	%
Less - loss on termination of derivatives		-			-			(1,122	)		n/a			-100.00	%		-			(1,122	)		-100.00	%
Less - loss on sale of fixed income securities		(1,124	)		-			-			100.00	%		100.00	%		(1,124	)		-			100.00	%
Less - merger and acquisition expenses		(271	)		(10,230	)		-			-97.35	%		100.00	%		(10,501	)		(77	)		13537.66	%
Less - impairment on acquired facilities		(109	)		-			-			100.00	%		100.00	%		(109	)		(503	)		-78.33	%
Total noninterest expense as adjusted	$	47,140		$	44,625		$	41,858			5.63	%		12.62	%	$	91,766		$	83,164			10.34	%
Asset quality	Nonperforming Assets At									Net Charge-Offs For the Three Months Ended									Net Charge-Offs For the Six Months Ended
	June 30,			March 31,			June 30,			June 30,			March 31,			June 30,			June 30,			June 30,
		2015			2015			2014			2015			2015			2014			2015			2014
Nonperforming loans
Commercial & industrial loans	$	3,767		$	4,542		$	2,368		$	(29	)	$	182		$	342		$	153		$	1,046
Commercial real estate loans		6,824			8,770			6,586			(102	)		(544	)		463			(646	)		3,317
Small business loans		198			267			433			(19	)		83			36			64			257
Residential real estate loans		8,086			8,693			10,812			16			140			136			156			264
Home equity		7,238			8,015			7,151			217			89			253			306			254
Other consumer		37			53			66			137			135			111			272			315
Total nonperforming loans / total net charge-offs	$	26,150		$	30,340		$	27,416		$	220		$	85		$	1,341		$	305		$	5,453
Nonaccrual securities		-			3,723			2,570
Other assets in possession		-			-			163
Other real estate owned		5,124			6,285			9,512
Total nonperforming assets	$	31,274		$	40,348		$	39,661
Nonperforming loans/gross loans		0.48	%		0.56	%		0.56	%
Nonperforming assets/total assets		0.43	%		0.58	%		0.62	%
Allowance for loan losses/nonperforming loans		210.31	%		179.68	%		198.93	%
Gross loans/total deposits		91.03	%		95.10	%		92.21	%
Allowance for loan losses/total loans		1.01	%		1.01	%		1.12	%
Net charge-offs to average loans (quarter annualized)											0.02	%		0.01	%		0.11	%
Net charge-offs to average loans (year-to-date)																				0.01	%		0.23	%
	Three Months Ended
	June 30, 2015			March 31, 2015			June 30, 2014
Nonperforming assets reconciliation
Nonperforming assets beginning balance	$	40,348		$	38,894		$	46,521
New to Nonperforming		4,326			11,523			5,109
Loans charged-off		(1,099	)		(1,525	)		(2,150	)
Loans paid-off		(4,264	)		(5,923	)		(7,615	)
Loans transferred to other real estate owned/other assets		(629	)		(354	)		(3,509	)
Loans restored to performing status		(2,566	)		(891	)		(491	)
New to other real estate owned		941			354			3,511
Sale of other real estate owned		(2,153	)		(1,633	)		(2,169	)
Capital improvements to other real estate owned		100			665			432
Net change in nonaccrual securities		(3,723	)		-			-
Other		(7	)		(762	)		22
Nonperforming assets ending balance	$	31,274		$	40,348		$	39,661
	Troubled Debt Restructurings At
	June 30, 2015			March 31, 2015			June 30, 2014
Troubled debt restructurings on accrual status	$	36,750		$	36,887		$	38,925
Troubled debt restructurings on nonaccrual status		5,623			4,899			7,499
Total troubled debt restructurings	$	42,373		$	41,786		$	46,424
	June 30, 2015			March 31, 2015			June 30, 2014
Financial ratios
Book value per common share	$	28.42		$	28.05		$	25.79
Tangible book value per share	$	20.22		$	19.82		$	18.20
Tangible common capital/tangible assets		7.58	%		7.73	%		7.05	%
Capital adequacy
Common equity tier 1 capital ratio (1)		10.24	%		10.08	%		n/a
Tier one leverage capital ratio (1)		9.21	%		9.53	%		8.62	%
(1) Estimated number for June 30, 2015.

INDEPENDENT BANK CORP. SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited - dollars in thousands)	Three Months Ended
	June 30, 2015						March 31, 2015						June 30, 2014
			Interest Earned/ Paid						Interest Earned/ Paid							Interest Earned/ Paid
	Average Balance				Yield/ Rate		Average Balance				Yield/ Rate			Average Balance				Yield/ Rate
Interest-earning assets
Interest-earning deposits with banks, federal funds sold, and short term investments	$	97,274	$	60	0.25	%	$	48,698	$	30	0.25	%		$	110,631	$	69	0.25	%
Securities
Securities - trading		500		-	0.00	%		179		-	0.00	%			-		-	-
Securities - taxable investments		787,023		4,852	2.47	%		745,242		4,627	2.52	%			718,971		4,690	2.62	%
Securities - nontaxable investments (1)		5,044		47	3.74	%		5,585		52	3.78	%			6,107		63	4.14	%
Total securities		792,567		4,899	2.48	%		751,006		4,679	2.53	%			725,078		4,753	2.63	%
Loans held for sale		9,726		58	2.39	%		7,603		51	2.72	%			9,548		96	4.03	%
Loans
Commercial and industrial		860,242		8,499	3.96	%		855,462		8,207	3.89	%			845,848		8,140	3.86	%
Commercial real estate (1)		2,613,347		26,762	4.11	%		2,454,630		25,720	4.25	%			2,284,621		24,723	4.34	%
Commercial construction		291,658		3,204	4.41	%		280,049		2,900	4.20	%			242,465		2,617	4.33	%
Small business		88,884		1,219	5.50	%		86,498		1,172	5.50	%			78,852		1,087	5.53	%
Total commercial		3,854,131		39,684	4.13	%		3,676,639		37,999	4.19	%			3,451,786		36,567	4.25	%
Residential real estate		666,325		6,750	4.06	%		602,490		6,211	4.18	%			540,178		5,320	3.95	%
Home equity		885,618		7,541	3.42	%		869,688		7,419	3.46	%			835,134		7,345	3.53	%
Total consumer real estate		1,551,943		14,291	3.69	%		1,472,178		13,630	3.75	%			1,375,312		12,665	3.69	%
Other consumer		18,016		399	8.88	%		17,893		412	9.34	%			17,819		449	10.11	%
Total loans		5,424,090		54,374	4.02	%		5,166,710		52,041	4.08	%			4,844,917		49,681	4.11	%
Total interest-earning assets	$	6,323,657	$	59,391	3.77	%	$	5,974,017	$	56,801	3.86	%		$	5,690,174	$	54,599	3.85	%
Cash and due from banks		91,479						114,974							114,797
Federal Home Loan Bank stock		37,485						35,076							38,228
Other assets		525,239						494,042							422,739
Total assets	$	6,977,860					$	6,618,109						$	6,265,938
Interest-bearing liabilities
Deposits
Savings and interest checking accounts	$	2,232,790	$	883	0.16	%	$	2,134,044	$	862	0.16	%		$	2,041,213	$	918	0.18	%
Money market		1,113,748		742	0.27	%		1,049,472		676	0.26	%			1,003,485		607	0.24	%
Time deposits		730,825		1,297	0.71	%		689,530		1,225	0.72	%			715,481		1,264	0.71	%
Total interest-bearing deposits	$	4,077,363	$	2,922	0.29	%	$	3,873,046	$	2,763	0.29	%		$	3,760,179	$	2,789	0.30	%
Borrowings
Federal Home Loan Bank borrowings	$	117,557	$	565	1.93	%	$	97,596	$	502	2.09	%		$	131,561	$	862	2.63	%
Customer repurchase agreements and other short-term borrowings		125,495		50	0.16	%		138,836		63	0.18	%			135,831		44	0.13	%
Wholesale repurchase agreements		50,000		298	2.39	%		50,000		286	2.32	%			50,000		289	2.32	%
Junior subordinated debentures		73,604		1,003	5.47	%		73,661		992	5.46	%			73,824		994	5.40	%
Subordinated debentures		35,000		431	4.94	%		51,667		574	4.51	%			30,000		254	3.40	%
Total borrowings	$	401,656	$	2,347	2.34	%	$	411,760	$	2,417	2.38	%		$	421,216	$	2,443	2.33	%
Total interest-bearing liabilities	$	4,479,019	$	5,269	0.47	%	$	4,284,806	$	5,180	0.49	%		$	4,181,395	$	5,232	0.50	%
Demand deposits		1,653,485						1,536,919							1,387,906
Other liabilities		102,901						108,855							83,903
Total liabilities	$	6,235,405					$	5,930,580						$	5,653,204
Stockholders' equity		742,455						687,529							612,734
Total liabilities and stockholders' equity	$	6,977,860					$	6,618,109						$	6,265,938
Net interest income			$	54,122					$	51,621						$	49,367
Interest rate spread (2)					3.30	%					3.37	%						3.35	%
Net interest margin (3)					3.43	%					3.50	%						3.48	%
Supplemental Information
Total deposits, including demand deposits	$	5,730,848	$	2,922			$	5,409,965	$	2,763				$	5,148,085	$	2,789
Cost of total deposits					0.20	%					0.21	%						0.22	%
Total funding liabilities, including demand deposits	$	6,132,504	$	5,269			$	5,821,725	$	5,180				$	5,569,301	$	5,232
Cost of total funding liabilities					0.34	%					0.36	%						0.38	%
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $375,000, $372,000, and $314,000 for the three months ended June 30, 2015, March 31, 2015, and June 30, 2014, 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, 2015					June 30, 2014
			Interest Earned/ Paid					Interest Earned/ Paid
	Average Balance				Yield/ Rate	Average Balance				Yield/ Rate
Interest-earning assets
Interest earning deposits with banks, federal funds sold, and short term investments	$	73,120	$	91	0.25%	$	86,130	$	106	0.25%
Securities
Securities - trading		340		-	0.00%		-		-	-
Securities - taxable investments		766,248		9,479	2.49%		712,698		9,340	2.64%
Securities - nontaxable investments (1)		5,313		99	3.76%		6,125		126	4.15%
Total securities		771,901		9,578	2.50%		718,823		9,466	2.66%
Loans held for sale		8,670		109	2.54%		7,805		147	3.80%
Loans
Commercial and industrial		857,865		16,707	3.93%		831,239		16,083	3.90%
Commercial real estate (1)		2,534,427		52,481	4.18%		2,283,207		48,925	4.32%
Commercial construction		285,886		6,104	4.31%		235,679		4,963	4.25%
Small business		87,698		2,391	5.50%		78,181		2,156	5.56%
Total commercial		3,765,876		77,683	4.16%		3,428,306		72,127	4.24%
Residential real estate		634,583		12,962	4.12%		540,280		10,486	3.91%
Home equity		877,697		14,960	3.44%		829,543		14,603	3.55%
Total consumer real estate		1,512,280		27,922	3.72%		1,369,823		25,089	3.69%
Other consumer		17,955		811	9.11%		18,519		934	10.17%
Total loans		5,296,111		106,416	4.05%		4,816,648		98,150	4.11%
Total interest-earning assets	$	6,149,802	$	116,194	3.81%	$	5,629,406	$	107,869	3.86%
Cash and due from banks		103,161					127,721
Federal Home Loan Bank stock		36,287					39,072
Other assets		509,728					414,099
Total assets	$	6,798,978				$	6,210,298
Interest-bearing liabilities
Deposits
Savings and interest checking accounts	$	2,183,690	$	1,744	0.16%	$	2,002,314	$	1,808	0.18%
Money market		1,081,788		1,418	0.26%		1,000,667		1,226	0.25%
Time deposits		710,292		2,523	0.72%		724,201		2,546	0.71%
Total interest-bearing deposits	$	3,975,770	$	5,685	0.29%	$	3,727,182	$	5,580	0.30%
Borrowings
Federal Home Loan Bank borrowings	$	107,632	$	1,066	2.00%	$	141,362	$	1,864	2.66%
Customer repurchase agreements and other short-term borrowings		132,129		113	0.17%		137,176		99	0.15%
Wholesale repurchase agreements		50,000		584	2.36%		50,000		574	2.32%
Junior subordinated debentures		73,632		1,996	5.47%		73,854		1,986	5.42%
Subordinated debentures		43,287		1,006	4.69%		30,000		502	3.37%
Total borrowings	$	406,680	$	4,765	2.36%	$	432,392	$	5,025	2.34%
Total interest-bearing liabilities	$	4,382,450	$	10,450	0.48%	$	4,159,574	$	10,605	0.51%
Demand deposits		1,595,523					1,367,844
Other liabilities		105,862					75,627
Total liabilities	$	6,083,835				$	5,603,045
Stockholders' equity		715,143					607,253
Total liabilities and stockholders' equity	$	6,798,978				$	6,210,298
Net interest income			$	105,744				$	97,264
Interest rate spread (2)					3.33%					3.35%
Net interest margin (3)					3.47%					3.48%
Supplemental Information
Total deposits, including demand deposits	$	5,571,293	$	5,685		$	5,095,026	$	5,580
Cost of total deposits					0.21%					0.22%
Total funding liabilities, including demand deposits	$	5,977,973	$	10,450		$	5,527,418	$	10,605
Cost of total funding liabilities					0.35%					0.39%
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $747,000 and $605,000 for the six months ended June 30, 2015 and 2014, 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
Robert Cozzone, 781-982-6723
Chief Financial Officer and Treasurer