FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
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Commission File Number: 1-9047
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Independent Bank Corp.
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(Exact name of registrant as specified in its charter)
Massachusetts 04-2870273
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
288 Union Street, Rockland, Massachusetts 02370
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(Address of principal executive offices, including zip code)
(617) 878-6100
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(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No __
As of May 1, 1996 there were 14,547,489 shares of the issuer's common
stock outstanding.
INDEPENDENT BANK CORP.
INDEX
PART I. FINANCIAL INFORMATION
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Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets - March 31, 1996 and
December 31, 1995
Consolidated Statements of Income - Three months ended
March 31, 1996 and 1995
Consolidated Statements of Cash Flows - Three months ended
March 31, 1996 and 1995
Notes to Consolidated Financial Statements - March 31, 1996
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
PART II. OTHER INFORMATION
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Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
INDEPENDENT BANK CORP.
INDEPENDENT BANK CORP.
CONSOLIDATED BALANCE SHEETS MARCH 31, DECEMBER 31,
(Unaudited - in thousands) 1996 1995
ASSETS
Cash and Due From Banks $40,968 $67,354
Federal Funds Sold and Assets Purchased
Under Resale Agreements - 13,000
Interest Bearing Deposits 296 296
Securities Held To Maturity 258,880 226,896
Securities Available For Sale 30,748 32,628
Federal Home Loan Bank Stock 3,876 3,462
Loans, Net of Unearned Discount 646,758 628,141
Less: Reserve for Possible Loan Losses (11,978) (12,088)
Net Loans 634,780 616,053
Bank Premises and Equipment 9,146 8,903
Other Real Estate Owned 450 638
Other Assets 19,707 18,359
TOTAL ASSETS $998,851 $987,589
LIABILITIES
Deposits
Demand Deposits $156,467 $166,453
Savings and NOW Accounts 255,170 259,729
Money Market and Super NOW Accounts 99,622 123,659
Time Certificates of Deposit over $100,000 28,387 30,086
Other Time Deposits 291,330 291,158
Total Deposits 830,976 871,085
Federal Funds Purchased and Assets
Sold Under Repurchase Agreements 3,220 4,060
Federal Home Loan Bank Borrowings 36,500 20,000
Other Borrowings 28,799 -
Treasury Tax and Loan Notes 4,154 4,031
Other Liabilities 16,276 10,998
Subordinated Capital Notes 4,834 4,843
Total Liabilities 924,759 915,017
INDEPENDENT BANK CORP.
STOCKHOLDERS' EQUITY
Common Stock, $.01 par value
Authorized: 30,000,000 Shares
Outstanding: 14,531,119 Shares at March 31, 1996
and 14,507,925 at December 31, 1995 145 145
Surplus 43,897 43,777
Retained Earnings 30,415 28,710
Unrealized Loss on Securities Available For Sale, Net of Tax (365) (60)
Total Stockholders' Equity 74,092 72,572
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $998,851 $987,589
INDEPENDENT BANK CORP.
INDEPENDENT BANK CORP. THREE MONTHS ENDED
CONSOLIDATED STATEMENT OF INCOME MARCH 31, MARCH 31,
(Unaudited - in thousands) 1996 1995
INTEREST INCOME
Interest on Loans $14,157 $13,307
Interest and Dividends on Securities 4,324 4,089
Interest on Federal Funds Sold
and Repurchase Agreements 78 57
Interest on Interest Bearing Deposits 5 6
Total Interest Income 18,564 17,459
INTEREST EXPENSE
Interest on Deposits 6,879 5,503
Interest on Borrowed Funds 820 1,057
Total Interest Expense 7,699 6,560
Net Interest Income 10,865 10,899
PROVISION FOR POSSIBLE LOAN LOSSES 250 250
Net Interest Income After Provision
For Possible Loan Losses 10,615 10,649
NON-INTEREST INCOME
Service Charges on Deposit Accounts 1,389 1,420
Trust and Investment Services Income 623 523
Mortgage Banking Income 724 514
Other Non-Interest Income 407 298
Total Non-Interest Income 3,143 2,755
NON-INTEREST EXPENSES
Salaries and Employee Benefits 5,455 5,441
Occupancy Expenses 878 774
Equipment Expenses 644 492
Other Non-Interest Expenses 2,710 3,208
Total Non-Interest Expenses 9,687 9,915
INCOME BEFORE INCOME TAXES 4,071 3,489
PROVISION FOR INCOME TAXES 1,494 1,099
NET INCOME $2,577 $2,390
NET INCOME PER SHARE $0.18 $0.17
Weighted average common and common
equivalent shares outstanding 14,688,060 14,449,892
INDEPENDENT BANK CORP.
INDEPENDENT BANK CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31,
(Unaudited - in thousands) 1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income 2,577 2,390
ADJUSTMENTS TO RECONCILE NET INCOME TO
NET CASH PROVIDED FROM OPERATING ACTIVITIES:
Depreciation and amortization 821 641
Provision for loan losses 250 250
Loans originated for resale (11,104) (2,716)
Proceeds from mortgage loan sales 11,118 2,713
Gain on sale of mortgages (14) 3
Gain on sale of mortgage servicing rights FAS 122 (115) -
Changes in assets and liabilities:
Increase in other assets 456 964
Increase in other liabilities 3,732 1,573
TOTAL ADJUSTMENTS 5,144 3,428
NET CASH PROVIDED FROM OPERATING ACTIVITIES 7,721 5,818
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of Investment Securities 24,833 5,514
Purchase of Investment Securities (56,094) (3,616)
Net increase in Loans (19,175) (20,648)
Proceeds from sale of OREO 188 2,308
Investment in Bank Premises and Equipment (719) (766)
NET CASH PROVIDED USED IN INVESTING ACTIVITIES (50,967) (17,208)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in Deposits (40,109) (14,407)
Net increase in Federal Funds Purchased
and Assets Sold Under Repurchase Agreements 27,959 18,687
Net increase in FHLB Borrowings 16,500 -
Net increase (decrease) in TT&L Notes 124 (2,071)
Net decrease in Capital Notes (9) -
Dividends Paid (725) (578)
Proceeds from stock issuance 120 118
NET CASH PROVIDED FROM FINANCING ACTIVITIES 3,860 1,749
NET DECREASE IN CASH AND CASH EQUIVALENTS (39,386) (9,641)
CASH AND CASH EQUIVALENTS AT THE BEGINNING
OF THE YEAR 80,354 58,555
CASH AND CASH EQUIVALENTS AS OF MARCH 31, 40,968 48,914
INDEPENDENT BANK CORP.
PART I. FINANCIAL INFORMATION
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Item 1. Financial Statements
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements include
the accounts of Independent Bank Corp. (the "Company") and its wholly-owned
subsidiary, Rockland Trust Company ("Rockland" or the "Bank"). These
consolidated financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments considered necessary for a fair
presentation of the financial statements, primarily consisting of normal
recurring adjustments, have been included. Certain amounts in prior year
financial statements have been reclassified to conform to the current year's
presentation. Operating results for the three months ended March 31, 1996 are
not necessarily indicative of the results that may be expected for the year
ended December 31, 1996 or any other interim period. For further information,
refer to the consolidated financial statements and footnotes thereto included in
the Company's annual report on Form 10-K for the year ended December 31, 1995.
RECENT ACCOUNTING DEVELOPMENTS
On January 1, 1996, the Company adopted Statement of Financial
Accounting Standards (SFAS) No. 122, "Accounting For Mortgage Servicing Rights."
SFAS No. 122 requires that a bank recognize the rights to service mortgage loans
for others, regardless of the manner in which the servicing rights are acquired,
as separate assets. In addition, capitalized mortgage servicing rights are
required to be assessed for impairment based on the fair value of those rights.
The Company expects that the adoption of SFAS No. 122 will have a positive
impact on income in 1996, the significance of which will depend on the volume of
loans sold during the year. During the quarter ended March 31, 1996, the Company
recognized servicing rights of $115,000 which is reflected as additional gain on
the sale of loans.
INDEPENDENT BANK CORP.
COMMITMENTS
During 1995, management commenced a study to review its data processing
environment. As a result of that study, a decision was made to outsource the
data processing operations. In February, 1996, the Bank executed an agreement
with an independent third party for a facilities management arrangement for a
term of 70 months.
INDEPENDENT BANK CORP.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1996
SUMMARY
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For the three months ended March 31, 1996, Independent Bank Corp.
earned $2,577,000. These earnings are an improvement over the operating results
for the first three months of the prior year when the Company recorded net
income of $2,390,000. Higher non-interest income and lower non-interest expenses
were the primary factors behind the improved 1996 results.
Substantial loan growth resulted in an increase in interest income of
$1,105,000 for the first quarter of 1996 as compared to the first quarter of
1995. During this period, interest expense grew by $1,139,000. The provision for
possible loan losses of $250,000 for the first quarter of 1996 was unchanged
from the first quarter of 1995. Non-interest income for the first quarter of
1996 was $388,000 higher than for the comparable 1995 time frame due primarily
to an increase in fees on commercial and residential mortgage loan originations
plus the adoption of SFAS No. 122. First quarter 1996 non-interest expense was
$228,000 lower than for the first quarter of 1995 due to a decline in consultant
fees, foreclosure expenses, FDIC insurance premiums, and other losses and
charge-offs.
The Company earned $0.18 per share for the first three months of 1996,
based on 14,688,060 average shares of common stock outstanding. These earnings
compare to $0.17 per share for the first three months of 1995, based on
14,449,892 average shares of common stock outstanding.
The annualized consolidated returns on average assets and average
equity for the first three months of 1996 were 1.06% and 14.05%, respectively.
This compares to annualized consolidated returns on average assets and average
equity for the first three months of 1995 of 1.04% and 14.78%, respectively.
INDEPENDENT BANK CORP.
As of March 31, 1996, total assets amounted to $998.9 million, an
increase of $11.3 million over the 1995 year-end balance. Loans, net of unearned
discount, increased $18.6 million, or 3.0%, since year-end 1995 with strong
growth noted in the real estate and installment loan categories. The Company
experienced its traditional first quarter seasonal decline in deposit balances.
Loan demand and an increase in the investment portfolio were funded with
borrowings and repurchase agreements.
Nonperforming assets totaled $6.6 million as of March 31, 1996, $.7
million, or 12.5%, higher than the 1995 year-end balance. Management believes
that the level of these assets, which currently represent 0.67% of total assets,
has reached an inherent base level, given the risks in the industry and in the
environment in which the Bank operates.
NET INTEREST INCOME
- - --- -------- ------
The discussion of net interest income which follows is presented on a
fully tax-equivalent basis. Net interest income for the three months ended March
31, 1996 amounted to $10,976,000, a decrease of $23,000, or 0.2%, from the
comparable 1995 time frame. The Company's interest rate spread (the difference
between the weighted average yield on interest-earning assets and the weighted
average cost of interest-bearing liabilities) decreased by 45 basis points as
rates paid on interest-bearing liabilities increased more than rates earned on
interest-earning assets. The average balance of interest-earning assets for the
first three months of 1996 was $53.0 million or 6.1% higher than the comparable
1995 time frame, while the average volume of interest-bearing liabilities was
$30.8 million, or 4.4%, higher. As a result, the Company's net interest margin
(net interest income as a percent of average interest-earning assets) for the
first three months of 1996 was 4.79% as compared to 5.10% for the comparable
1995 time frame.
Income from interest-earning assets amounted to $18,675,000 for the
three months ended March 31, 1996, an increase of approximately $1.1 million, or
6.4%, from the first three months of 1995. The average balance of taxable
investment securities increased more than $8.8 million as the Company
selectively took advantage of attractive yields in the bond market. The average
balance of non-taxable investment securities increased $2.9 million as the
Company increased its holdings of tax-advantaged securities. The average balance
of loans, net of unearned discount, increased $39.9 million, or 6.7%. For the
first three months of 1996, the average balance of federal funds purchased were
higher and the average balance of interest bearing deposits were lower than the
comparable 1995 time frame.
Interest income is impacted by changes in market rates of interest due
to variable and floating rate loans in the Company's portfolio. At March 31,
1996, loans having interest rates which adjust in accordance with changes in the
Company's base lending rate or other market indices amounted to approximately
$302.7 million, or 46.8% of loans, net of unearned discount.
INDEPENDENT BANK CORP.
Interest income is also impacted by the amount of nonperforming loans.
The amount of interest due but not recognized on nonperforming loans amounted to
approximately $135,000 for the three months ended March 31, 1996 compared to
$174,000 for the three months ended March 31, 1995.
An increase in the average balance of interest-bearing deposits was the
primary factor behind the increase in interest bearing liabilities. The average
balance of interest-bearing deposits for the first three months of 1996 was
$43.4 million, or 6.9%, higher than the comparable 1995 time frame. Transaction
account balances declined during this time period while time deposit balances
increased. For the three months ended March 31, 1996, average borrowings were
$12.6 million lower than the first quarter of 1995.
PROVISION FOR POSSIBLE LOAN LOSSES
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The provision for possible loan losses represents the charge to expense
that is required to fund the reserve for possible loan losses. The level of the
reserve for possible loan losses is determined by management of the Company
based upon known and anticipated circumstances and conditions. An analysis of
individual loans and the overall risk characteristics and size of the different
loan portfolios is conducted on an ongoing basis. In addition, the Company
considers industry trends, regional and national economic conditions, past
estimates of possible losses as compared to actual losses, and historical loan
loss patterns. This ongoing assessment is reviewed periodically by a third-party
loan review consultant and annually by the Company's independent public
accountants. Adjustments are reported in the earnings of the period in which
they become known.
For the three months ended March 31, 1996, the provision for possible
loan losses amounted to $250,000, unchanged from the loan loss provision for the
comparable 1995 period. For the first three months of 1996, loans charged-off,
net of recoveries of loans previously charged-off, amounted to $360,000, as
compared to $63,000 for the comparable 1995 time frame.
As of March 31, 1996, the ratio of the reserve for possible loan losses
to loans, net of unearned discount, was 1.85%, slightly below the 1995 year-end
level of 1.92%. The ratio of the reserve for possible loan losses to
nonperforming loans was 193.3% at March 31, 1996, slightly lower than the 205.7%
coverage recorded a year earlier.
INDEPENDENT BANK CORP.
NON-INTEREST INCOME
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Non-interest income for the three months ended March 31, 1996 was
$3,143,000, an increase of $388,000, or 14.1%, from the comparable 1995 time
period. Service charges on deposit accounts for the first three months of 1996
showed a slight decrease from the first three months of 1995. Trust and
Investment Services income was $100,000 higher due to an increase in funds under
management and a strong securities market. Mortgage banking income increased
approximately $210,000, or 40.9%, due to strong commercial and residential
mortgage origination activity plus the impact of the adoption of SFAS No. 122.
Other non-interest income increased approximately $109,000, or 36.6%, primarily
due to a settlement received from a dispute of former OREO property.
NON-INTEREST EXPENSES
- - ------------ --------
Non-interest expenses totaled $9,687,000 for the three months ended
March 31, 1996, a $228,000 or 2.3% decrease from the comparable 1995 period.
Salaries and employee benefits increased slightly due to the impact of merit
increases and higher payroll taxes and medical insurance premiums. Occupancy
expenses showed an increase over the first three months of 1995 as the Company
felt the effects of a record-breaking winter in the form of higher heating and
snow removal costs. Equipment expenses for the first three months of 1996 showed
an increase over the first three months of 1995 due to higher equipment lease
costs.
Other non-interest expenses for the first three months of 1996 declined
$498,000, or 15.5%, from the first three months of 1995. The Company recorded a
decline in expenses incurred in connection with foreclosed properties. The
Company also realized a reduction in FDIC insurance premiums due to the FDIC's
declaration of a premium moratorium for the first six months of 1996. In
addition, consulting fees and software maintenance costs for the first quarter
of 1996 were lower than the first quarter of 1995.
INCOME TAXES
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The Company records income tax expense pursuant to Statement of
Financial Accounting Standards No. 109, "Accounting For Income Taxes". The
Company evaluates the deferred tax asset and its offsetting valuation reserve on
a quarterly basis. The Company's effective tax rates for the three months ended
March 31, 1996 and 1995 were 36.7% and 31.5%, respectively.
INDEPENDENT BANK CORP.
ASSET/LIABILITY MANAGEMENT
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The principal objective of the Company's asset/liability management
strategy is to reduce the vulnerability of the Company to changes in interest
rates. This is done by managing the volume of assets and liabilities maturing,
or subject to repricing, and by adjusting rates in relation to market conditions
to influence volumes and spreads.
The effect of interest rate volatility on net interest income is
minimized when the difference between assets and liabilities that reprice within
a given time period (the interest sensitivity gap) is the smallest. Given the
inherent uncertainty of future interest rates, the Asset/Liability Management
Committee evaluates the interest sensitivity gap and executes strategies, which
may include off-balance sheet activities, in an effort to minimize the Company's
exposure to interest rate movements while providing adequate earnings in most
plausible future interest rate environments.
Beginning in 1992, Rockland has entered into interest rate swap
agreements as a hedge against stable or declining interest rates. As of March
31, 1996, Rockland had interest rate swap agreements with a total notional value
of $90 million. These swaps were arranged through two international banking
institutions and remaining maturities range from three months to two years. The
Bank receives fixed rate payments and pays a variable rate of interest tied to
3-month LIBOR.
Rockland also purchased two 2-year interest rate caps with a total
notional value of $70 million in May 1995. The caps will pay the Bank the
difference between LIBOR and the cap level if LIBOR exceeds the cap level at any
of the quarterly reset dates. If LIBOR remains below the cap level, no payment
is made to the Bank.
LIQUIDITY AND CAPITAL
- - --------- --- -------
Liquidity, as it pertains to financial institutions, is the ability to
economically generate cash for the institution to meet its ongoing obligations
to pay deposit withdrawals and to fund loan commitments. The Company's primary
sources of funds are deposits, borrowings, and the amortization, prepayment, and
maturities of loans and investments.
A strong source of liquidity is the Company's core deposits, those
deposits which management considers, based on experience, are not likely to be
withdrawn in the near term. The Company utilizes its extensive branch banking
network to attract retail customers who provide a stable source of core
deposits. In addition, the Company has established four $100 million repurchase
agreement lines with major brokerage firms as potential sources of liquidity. On
March 31, 1996 the Company had $28.8 million outstanding under such lines
classified on the Balance Sheet as "Federal Funds Purchased and Assets Sold
Under Repurchase Agreements." In addition, as a member of the Federal Home Loan
Bank, Rockland has access to approximately $300 million of borrowing capacity.
On March 31, 1996 the Company had $36.5 million outstanding under such lines
classified on the Balance Sheet as "Federal Home Loan Bank Borrowings."
INDEPENDENT BANK CORP.
The Company actively manages its liquidity position under the direction
of the Asset/Liability Management Committee. Periodic review of formal policies
and procedures is intended to ensure that the Company will maintain access to
adequate levels of available funds. At March 31, 1996, the Company's liquidity
position was well above the Company's policy guidelines.
CAPITAL RESOURCES AND DIVIDENDS
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The Company and Rockland are subject to capital requirements
established by the Federal Reserve Board and the Federal Deposit Insurance
Corporation (FDIC), respectively. One key measure of capital adequacy is the
risk-based capital ratio for which the regulatory agencies have established
minimum requirements of 4.00% and 8.00% for Tier 1 risk-based capital and total
risk-based capital, respectively. As of March 31, 1996, the Company had a Tier 1
risk-based capital ratio of 10.86% and a total risk-based capital ratio of
12.11%. Rockland had a Tier 1 risk-based capital ratio of 10.51% and a total
risk-based capital ratio of 11.76% as of the same date.
An additional capital requirement of a minimum 3.00% Tier 1 leverage
capital is mandated by the regulatory agencies, unless higher amounts are
required by these agencies. As of March 31, 1996, the Company and the Bank had
Tier 1 leverage capital ratios of 7.47% and 7.23%, respectively.
In March, the Company's Board of Directors declared a cash dividend of
$.06 per share to shareholders of record on March 29, 1996. This dividend was
paid on April 12, 1996. On an annualized basis, the dividend payout ratio
amounted to 33.8% of the trailing four quarters earnings.
INDEPENDENT BANK CORP.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information
The financial information detailed below is included hereafter in this
report:
Consolidated Average Balance Sheet and Average Rate Data -
Three months ended March 31, 1996 and 1995.
Item 6. Exhibits and Reports on Form 8-K
(a) None
(b) The Company did not file any reports on Form 8-K during the
quarter ended March 31, 1996.
INDEPENDENT BANK CORP.
INDEPENDENT BANK CORP. UNREALIZED
CONSOLIDATED STATEMENTS OF CHANGES LOSS
IN STOCKHOLDERS' EQUITY COMMON RETAINED INVESTMENTS
(Unaudited - in thousands) STOCK SURPLUS EARNINGS AVAILABLE TOTAL
Balance, January 1, 1995 $144 $43,381 $20,931 ($254) $64,202
Net Income 10,387 10,387
Dividends Declared (2,608) (2,608)
Common Stock Sold Under Dividend
Reinvestment & Stock Purchase Plan 44 44
Stock Option exercised, 10,000 shares 1 352 353
Change in Unrealized Loss on Securities
Available for Sale, Net of Tax 194 194
Balance, December 31, 1995 $145 $43,777 $28,710 ($60) $72,572
Net Income 2,577 2,577
Dividends Declared (872) (872)
Common Stock Sold Under Dividend 104
Reinvestment & Stock Purchase Plan 104
Stock Option exercised, 8,000 shares 16 16
Change in Unrealized Loss on Securities
Available for Sale, Net of Tax (305) (305)
Balance, March 31, 1996 $145 $43,897 $30,415 ($365) $74,092
INDEPENDENT BANK CORP.
INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEET AND AVERAGE RATE DATA
(Unaudited - in thousands)
AVERAGE INTEREST
OUTSTANDING EARNED/ AVERAGE
BALANCE PAID YIELD
FOR THE THREE MONTHS ENDED MARCH 31, 1996 1996 1996
Interest-Earning Assets
Taxable Investment Securities $267,492 $4,245 6.35%
Non-taxable Investment Securities 7,686 114 5.93%
Loans, net of Unearned Discount 635,272 14,233 8.96%
Federal Funds Sold and Assets
Purchased Under Resale Agreements 5,539 78 5.63%
Interest Bearing Deposits 296 5 6.76%
Total Interest-Earning Assets 916,285 $18,675 8.15%
Cash and Due From Banks 44,016
Other Assets 14,133
Total Assets $974,434
Interest-Bearing Liabilities
Savings and NOW Accounts $257,080 $1,385 2.15%
Money Market & Super NOW Accounts 102,628 706 2.75%
Other Time Deposits 317,357 4,788 6.03%
Federal Funds Purchased and Assets
Sold Under Repurchase Agreements 20,523 284 5.54%
Federal Home Loan Bank Borrowings 26,038 383 5.88%
Treasury Tax and Loan Notes 3,119 34 4.36%
Subordinated Capital Notes 4,840 119 9.83%
Total Interest-Bearing Liabilities 731,585 $7,699 4.21%
Demand Deposits 156,253
Other Liabilities 13,219
Total Liabilities $901,057
Stockholders' Equity $73,377
Total Liabilities and Stockholders'
Equity $974,434
Net Interest Income $10,976
Interest Rate Spread 3.94%
Net Interest Margin 4.79%
Interest income and yield are stated on a fully tax-equivalent basis.
The total amount of adjustment is $111 in 1996.
INDEPENDENT BANK CORP.
INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEET AND AVERAGE RATE DATA
(Unaudited - in thousands)
AVERAGE INTEREST
OUTSTANDING EARNED/ AVERAGE
BALANCE PAID YIELD
1995 1995 1995
Interest-Earning Assets
Taxable Investment Securities $258,682 $4,038 6.24%
Non-taxable Investment Securities 4,744 74 6.24%
Loans, net of Unearned Discount 595,346 13,385 8.99%
Federal Funds Sold and Assets
Purchased Under Resale Agreements 3,977 56 5.63%
Interest Bearing Deposits 502 6 4.78%
Total Interest-Earning Assets 863,251 $17,559 8.14%
Cash and Due From Banks 42,482
Other Assets 14,701
Total Assets $920,434
Interest-Bearing Liabilities
Savings and NOW Accounts $271,970 $1,485 2.18%
Money Market & Super NOW Accounts 115,144 757 2.63%
Other Time Deposits 246,528 3,261 5.29%
Federal Funds Purchased and Assets
Sold Under Repurchase Agreements 40,232 602 5.99%
Federal Home Loan Bank Borrowings 18,111 285 -
Treasury Tax and Loan Notes 3,850 48 4.99%
Subordinated Capital Notes 4,965 122 9.83%
Total Interest-Bearing Liabilities 700,800 $6,560 3.74%
Demand Deposits 145,682
Other Liabilities 9,012
Total Liabilities $855,494
Stockholders' Equity $64,940
Total Liabilities and Stockholders'
Equity $920,434
Net Interest Income 10,999
Interest Rate Spread 4.39%
Net Interest Margin 5.10%
Interest income and yield are stated on a fully tax-equivalent basis.
The total amount of adjustment is $100 1995.
INDEPENDENT BANK CORP.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
INDEPENDENT BANK CORP.
----------------------
(registrant)
Date: May 2, 1996
---------------------
John F. Spence, Jr.
Chairman of the Board and
Chief Executive Officer
Date: May 2, 1996
---------------------
Richard J. Seaman
Chief Financial Officer
and Treasurer
INDEPENDENT BANK CORP.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
INDEPENDENT BANK CORP.
----------------------
(registrant)
Date: May 2, 1996 /s/ John F. Spence, Jr.
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John F. Spence, Jr.
Chairman of the Board and
Chief Executive Officer
Date: May 2, 1996 /s/ Richard J. Seaman
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Richard J. Seaman
Chief Financial Officer
and Treasurer