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| 8-K - INDEPENDENT BANK CORP. 8-K - INDEPENDENT BANK CORP | a6578992.htm |
Exhibit 99.1
Independent Bank Corp. Reports Fourth Quarter Net Income of $11.8 Million
Exceptional Commercial and Home Equity Loan Growth Combined With Solid Credit Quality
ROCKLAND, Mass.--(BUSINESS WIRE)--January 20, 2011--Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced net income of $11.8 million for the fourth quarter of 2010, compared to $11.1 million recorded in the third quarter. On a diluted earnings per share basis, the Company reported earnings of $0.56 for the quarter, an increase of 5.7% from the $0.53 in earnings recorded for the previous quarter.
For the year ended December 31, 2010, net income was $40.2 million. On a diluted earnings per share basis, the Company reported earnings of $1.90 for the year ended December 31, 2010, compared to $0.88 for the year ended December 31, 2009.
Christopher Oddleifson, the President and Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company, stated “Rockland Trust had an outstanding year in 2010. Our strength and stability in the market and the focused efforts of all my colleagues enabled us to earn new customer relationships and expand existing relationships. We are very pleased with our overall performance, especially during these difficult economic times.”
BALANCE SHEET
Total assets of $4.7 billion at December 31, 2010 are consistent with the prior quarter.
Total loans were $3.6 billion at December 31, 2010, an increase of $147.6 million, or 4.3%, compared with the prior quarter. The Company achieved very strong growth in its commercial and industrial loan portfolio, which increased by $64.1 million, or 14.6%, in the fourth quarter, as the Company continued to expand its base of high-quality corporate relationships. Commercial real estate loan generation remained robust, as total outstandings increased by $75.8 million, or 4.6%. The Company’s commercial construction portfolio declined by $14.7 million, or 10.2%, as projects transitioned to permanent financing. The home equity portfolio continued its upward trajectory, rising $61.3 million, or 11.8%. Residential real estate loans declined by $29.5 million, or 5.9%, as loans refinanced into longer-term, fixed-rate loans, which are not commonly held in portfolio by the Company.
Total deposits increased by $10.6 million, or 0.3%, during the quarter ending December 31, 2010 while core deposits (non-time deposits) grew by $83.8 million, or 2.9% during the same period. Savings and interest checking rose by $61.0 million, or 4.6%, and demand deposits increased by $36.6 million, or 4.5%. Partially offsetting those deposit increases were decreases in money market accounts of $13.8 million, or 1.9%. The Company’s emphasis on lower cost core deposits has led to a steady reduction in time deposits which declined by $73.1 million, or 9.5%, in the fourth quarter. Core deposits have risen to 80.9% of total deposits at December 31, 2010, while the total cost of deposits declined to 0.45% for the current quarter, down 8 basis points from the prior period.
Securities were $587.8 million, down $37.1 million from the prior quarter due to paydowns.
Stockholders’ equity at December 31, 2010 totaled $436.5 million as compared to $425.7 million at September 30, 2010. The Tier 1 leverage capital ratio at December 31, 2010 rose to 8.2% from 8.0% in the prior quarter, maintaining the Company’s well-capitalized position.
NET INTEREST INCOME
Net interest income of $41.4 million was up modestly from the prior quarter. The net interest margin in the fourth quarter of 2010 expanded slightly to 3.91%, compared to the linked quarter period of 3.89%, as a result of a reduction in funding costs.
NON-INTEREST INCOME
The Company recorded non-interest income of $14.3 million during the fourth quarter of 2010 which represents a $2.6 million, or 22.4%, increase from the prior quarter. The change in non-interest income is composed of the following:
- Service charges on deposit accounts increased by $1.1 million, or 24.5%, primarily due to debit card usage and overdraft privilege fees on free checking accounts.
- Wealth management revenue increased by $104,000. Assets under management in the wealth management division rose to nearly $1.6 billion at December 31, 2010, an increase of $107.6 million compared to September 30, 2010.
- Mortgage banking income increased by $481,000, due to increased originations in loans held for sale as a result of the low rate environment. The balance of the mortgage servicing rights asset was $1.6 million and represented 63 basis points of the servicing portfolio at December 31, 2010.
- Other non-interest income increased by $1.0 million, or 51.2%, mainly due to fee revenue associated with loan level interest rate derivatives.
NON-INTEREST EXPENSE
The Company recorded non-interest expense of $36.7 million in the fourth quarter of 2010, an increase of $2.1 million, or 6.2%, when compared to the quarter ended September 30, 2010. Significant changes of non-interest expense included the following:
- Salaries and Employee Benefits increased by $530,000, or 2.7%, mainly due to increases in incentive compensation.
- Other non-interest expense increased by $1.4 million, or 17.0%, which is primarily attributable to increases in credit-related loan workout expenses of $502,000, loan level derivative expenses of $168,000, and consultant fees of $120,000, as well as a computer software write-off of $560,000.
The Company reported a return on average assets and a return on average common equity in the fourth quarter of 2010 of 1.01% and 10.85%, respectively, as compared to 0.95% and 10.38% for the quarter ended September 30, 2010.
ASSET QUALITY
Net charge-offs decreased to $2.9 million, or 0.33% on an annualized basis of average loans, for the fourth quarter compared to $3.2 million, or 0.37% for the quarter ending September 30, 2010. The provision for loan losses was $3.6 million and $3.5 million for the quarters ended December 31, 2010 and September 30, 2010, respectively. Nonperforming loans decreased to $23.1 million, or 0.65% of total loans at December 31, 2010, from $24.7 million, or 0.72% of total loans at September 30, 2010. The amount of nonperforming loans at December 31, 2010 was 36.1% lower than the level of non-performing loans at December 31, 2009. Delinquency as a percent of loans remained steady with prior quarter at 1.11%.
The allowance for loan losses was $46.3 million at December 31, 2010, compared with the prior quarter of $45.6 million. The Company’s allowance for loan losses was 1.30%, as a percentage of total loans at December 31, 2010, compared to 1.34%, at September 30, 2010.
Christopher Oddleifson and Denis K. Sheahan, Chief Financial Officer, of Independent Bank Corp. and Rockland Trust Company, will host a conference call to discuss fourth quarter earnings at 10:00 a.m. Eastern Time on Friday, January 21, 2011. Internet access to the call is available on the Company’s website at www.RocklandTrust.com or by telephonic access by dial-in at 1-877-317-6789 reference: INDB. A replay of the call will be available by calling 1-877-344-7529, Replay Pass code: 447155. The web cast replay will be available until January 21, 2012.
Independent Bank Corp., which has Rockland Trust Company as a wholly-owned bank subsidiary, has $4.7 billion in assets. Rockland Trust offers a wide range of commercial banking products and services, retail banking products and services, business and consumer loans, insurance products and services, and investment management services. To find out why Rockland Trust is the bank Where Each Relationship Matters®, visit www.RocklandTrust.com.
This press release contains certain “forward-looking statements” with respect to the financial condition, results of operations and business of the Company. Actual results may differ from those contemplated by these statements. The Company wishes to caution readers not to place undue reliance on any forward-looking statements. The Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise.
This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Operating earnings, which is a non-GAAP financial measure, excludes gain or loss due to items that management does not believe are related to its core banking business, such as gains or losses on the sales of securities, merger and acquisition expenses, and other items. The Company’s management uses operating earnings to measure the strength of the Company’s core banking business and to identify trends that may to some extent be obscured by gains or losses which management deems not to be core to the Company’s operations. The Company has included information on operating earnings because management believes that investors may find it useful to have access to the same analytical tool used by management and may also find that it facilitates the comparison of the Company to other companies in the financial services industry. Non-GAAP operating earnings should not be viewed as a substitute for operating results determined in accordance with GAAP. An item which management deems to be non-core and excludes when computing non-GAAP operating earnings can be of substantial importance to the Company’s results for any particular quarter or year. The Company’s non-GAAP operating earnings are not necessarily comparable to non-GAAP performance measures which may be presented by other companies.
|
INDEPENDENT BANK CORP. FINANCIAL SUMMARY |
||||||||||||||||||
| (Unaudited - Dollars in Thousands) | ||||||||||||||||||
| % Change | % Change | |||||||||||||||||
| CONSOLIDATED BALANCE SHEETS | December 31, | September 30, | December 31, | Dec 2010 vs. | Dec. 2010 vs. | |||||||||||||
| 2010 | 2010 | 2009 | Sept. 2010 | Dec. 2009 | ||||||||||||||
| Assets | ||||||||||||||||||
| Cash and Due From Banks | $ | 42,112 | $ | 54,207 | $ | 66,724 | -22.31 | % | -36.89 | % | ||||||||
| Interest Earning Deposits with Banks | 119,170 | 222,392 | 55,181 | -46.41 | % | 115.96 | % | |||||||||||
| Fed Funds Sold and Short Term Investments | - | 526 | - | -100.00 | % | n/a | ||||||||||||
| Securities | ||||||||||||||||||
| Trading Assets | 7,597 | 7,418 | 6,171 | 2.41 | % | 23.11 | % | |||||||||||
| Securities Available for Sale | 377,457 | 436,887 | 508,650 | -13.60 | % | -25.79 | % | |||||||||||
| Securities Held to Maturity | 202,732 | 180,623 | 93,410 | 12.24 | % | 117.03 | % | |||||||||||
| Total Securities | 587,786 | 624,928 | 608,231 | -5.94 | % | -3.36 | % | |||||||||||
| Loans Held for Sale | 27,917 | 21,321 | 13,466 | 30.94 | % | 107.31 | % | |||||||||||
| Loans | ||||||||||||||||||
| Commercial and Industrial | 502,952 | 438,873 | 373,531 | 14.60 | % | 34.65 | % | |||||||||||
| Commercial Real Estate | 1,717,118 | 1,641,356 | 1,614,474 | 4.62 | % | 6.36 | % | |||||||||||
| Commercial Construction | 129,421 | 144,109 | 175,312 | -10.19 | % | -26.18 | % | |||||||||||
| Small Business | 80,026 | 79,897 | 82,569 | 0.16 | % | -3.08 | % | |||||||||||
| Total Commercial | 2,429,517 | 2,304,235 | 2,245,886 | 5.44 | % | 8.18 | % | |||||||||||
| Residential Real Estate | 473,936 | 503,471 | 555,306 | -5.87 | % | -14.65 | % | |||||||||||
| Residential Construction | 4,175 | 5,449 | 10,736 | -23.38 | % | -61.11 | % | |||||||||||
| Consumer - Home Equity | 579,278 | 517,962 | 471,862 | 11.84 | % | 22.76 | % | |||||||||||
| Total Consumer Real Estate | 1,057,389 | 1,026,882 | 1,037,904 | 2.97 | % | 1.88 | % | |||||||||||
| Total Other Consumer | 68,773 | 76,926 | 111,725 | -10.60 | % | -38.44 | % | |||||||||||
| Total Loans | 3,555,679 | 3,408,043 | 3,395,515 | 4.33 | % | 4.72 | % | |||||||||||
| Less - Allowance for Loan Losses | (46,255 | ) | (45,619 | ) | (42,361 | ) | 1.39 | % | 9.19 | % | ||||||||
| Net Loans | 3,509,424 | 3,362,424 | 3,353,154 | 4.37 | % | 4.66 | % | |||||||||||
| Federal Home Loan Bank Stock | 35,854 | 35,854 | 35,854 | 0.00 | % | 0.00 | % | |||||||||||
| Bank Premises and Equipment | 45,712 | 45,420 | 44,235 | 0.64 | % | 3.34 | % | |||||||||||
| Goodwill and Core Deposit Intangible | 141,956 | 142,422 | 143,730 | -0.33 | % | -1.23 | % | |||||||||||
| Other Assets | 185,807 | 194,297 | 161,446 | -4.37 | % | 15.09 | % | |||||||||||
| Total Assets | $ | 4,695,738 | $ | 4,703,791 | $ | 4,482,021 | -0.17 | % | 4.77 | % | ||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||
| Deposits | ||||||||||||||||||
| Demand Deposits | $ | 842,067 | $ | 805,491 | $ | 721,792 | 4.54 | % | 16.66 | % | ||||||||
| Savings and Interest Checking Accounts | 1,375,254 | 1,314,273 | 1,073,990 | 4.64 | % | 28.05 | % | |||||||||||
| Money Market | 717,286 | 731,091 | 661,731 | -1.89 | % | 8.40 | % | |||||||||||
| Time Certificates of Deposit | 693,176 | 766,303 | 917,781 | -9.54 | % | -24.47 | % | |||||||||||
| Total Deposits | 3,627,783 | 3,617,158 | 3,375,294 | 0.29 | % | 7.48 | % | |||||||||||
| Borrowings | ||||||||||||||||||
| Federal Home Loan Bank Borrowings | 302,414 | 302,545 | 362,936 | -0.04 | % | -16.68 | % | |||||||||||
| Fed Funds Purchased and Assets Sold | ||||||||||||||||||
| Under Repurchase Agreements | 168,119 | 180,326 | 190,452 | -6.77 | % | -11.73 | % | |||||||||||
| Junior Subordinated Debentures | 61,857 | 61,857 | 61,857 | 0.00 | % | 0.00 | % | |||||||||||
| Subordinated Debentures | 30,000 | 30,000 | 30,000 | 0.00 | % | 0.00 | % | |||||||||||
| Other Borrowings | 3,044 | 2,701 | 2,152 | 12.70 | % | 41.45 | % | |||||||||||
| Total Borrowings | 565,434 | 577,429 | 647,397 | -2.08 | % | -12.66 | % | |||||||||||
| Total Deposits and Borrowings | 4,193,217 | 4,194,587 | 4,022,691 | -0.03 | % | 4.24 | % | |||||||||||
| Other Liabilities | 66,049 | 83,543 | 46,681 | -20.94 | % | 41.49 | % | |||||||||||
| Stockholders' Equity | ||||||||||||||||||
| Common Stock | 210 | 210 | 209 | 0.00 | % | 0.48 | % | |||||||||||
| Additional Paid in Capital | 226,708 | 226,255 | 225,088 | 0.20 | % | 0.72 | % | |||||||||||
| Retained Earnings | 210,320 | 201,950 | 184,599 | 4.14 | % | 13.93 | % | |||||||||||
| Accumulated Other Comprehensive Income/(Loss), Net of Tax | (766 | ) | (2,754 | ) | 2,753 | -72.19 | % | -127.82 | % | |||||||||
| Total Stockholders' Equity | 436,472 | 425,661 | 412,649 | 2.54 | % | 5.77 | % | |||||||||||
| Total Liabilities and Stockholders' Equity | $ | 4,695,738 | $ | 4,703,791 | $ | 4,482,021 | -0.17 | % | 4.77 | % | ||||||||
|
INDEPENDENT BANK CORP. FINANCIAL SUMMARY |
||||||||||||||||||
| (Unaudited - Dollars in Thousands, Except Per Share Data) | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | |||||||||||||||||
| % Change | % Change | |||||||||||||||||
| December 31, | September 30, | December 31, | Dec 2010 vs. | Dec. 2010 vs. | ||||||||||||||
| 2010 | 2010 | 2009 | Sept. 2010 | Dec. 2009 | ||||||||||||||
| INTEREST INCOME | ||||||||||||||||||
| Interest on Fed Funds Sold and Short Term Investments | $ | 71 | $ | 135 | $ | 18 | -47.41 | % | 294.44 | % | ||||||||
| Interest and Dividends on Securities | 5,827 | 5,843 | 7,096 | -0.27 | % | -17.88 | % | |||||||||||
| Interest on Loans | 43,797 | 44,436 | 45,637 | -1.44 | % | -4.03 | % | |||||||||||
| Interest on Loans Held for Sale | 276 | 174 | 132 | 58.62 | % | 109.09 | % | |||||||||||
| Total Interest Income | 49,971 | 50,588 | 52,883 | -1.22 | % | -5.51 | % | |||||||||||
| INTEREST EXPENSE | ||||||||||||||||||
| Interest on Deposits | 4,029 | 4,801 | 6,869 | -16.08 | % | -41.35 | % | |||||||||||
| Interest on Borrowed Funds | 4,553 | 4,590 | 5,316 | -0.81 | % | -14.35 | % | |||||||||||
| Total Interest Expense | 8,582 | 9,391 | 12,185 | -8.61 | % | -29.57 | % | |||||||||||
| Net Interest Income | 41,389 | 41,197 | 40,698 | 0.47 | % | 1.70 | % | |||||||||||
| Less - Provision for Loan Losses | 3,575 | 3,500 | 4,424 | 2.14 | % | -19.19 | % | |||||||||||
| Net Interest Income after Provision for Loan Losses | 37,814 | 37,697 | 36,274 | 0.31 | % | 4.25 | % | |||||||||||
| NON-INTEREST INCOME | ||||||||||||||||||
| Service Charges on Deposit Accounts | 5,530 | 4,441 | 4,541 | 24.52 | % | 21.78 | % | |||||||||||
| Wealth Management | 2,955 | 2,851 | 2,729 | 3.65 | % | 8.28 | % | |||||||||||
| Mortgage Banking Income | 1,950 | 1,469 | 1,280 | 32.74 | % | 52.34 | % | |||||||||||
| BOLI Income | 839 | 901 | 813 | -6.88 | % | 3.20 | % | |||||||||||
| Net Gain/(Loss) on Sale of Securities | - | (22 | ) | - | -100.00 | % | n/a | |||||||||||
|
Other-Than-Temporary Impairment Losses on Available-for-Sale Debt Securities: |
||||||||||||||||||
| Gross Change on Write-Down of Certain Investments to Fair Value | 172 | 207 | 2 | -16.91 | % | 8500.00 | % | |||||||||||
| Less: Portion of Other-Than-Temporary Impairment Recognized in Other Comprehensive Income | (238 | ) | (214 | ) | (2,167 | ) | 11.21 | % | -89.02 | % | ||||||||
| Net Impairment Losses Recognized in Earnings on Available-for-Sale Debt Securities | (66 | ) | (7 | ) | (2,165 | ) | 842.86 | % | -96.95 | % | ||||||||
| Other Non-Interest /Income | 3,055 | 2,021 | 2,831 | 51.16 | % | 7.91 | % | |||||||||||
| Total Non-Interest Income | 14,263 | 11,654 | 10,029 | 22.39 | % | 42.22 | % | |||||||||||
| NON-INTEREST EXPENSE | ||||||||||||||||||
| Salaries and Employee Benefits | 20,322 | 19,792 | 18,537 | 2.68 | % | 9.63 | % | |||||||||||
| Occupancy and Equipment Expenses | 3,943 | 3,839 | 3,848 | 2.71 | % | 2.47 | % | |||||||||||
| Data Processing and Facilities Management | 1,578 | 1,404 | 1,178 | 12.39 | % | 33.96 | % | |||||||||||
| FDIC Assessment | 1,303 | 1,352 | 1,320 | -3.62 | % | -1.29 | % | |||||||||||
| Other Non-Interest Expense | 9,542 | 8,153 | 9,765 | 17.04 | % | -2.28 | % | |||||||||||
| Total Non-Interest Expense | 36,688 | 34,540 | 34,648 | 6.22 | % | 5.89 | % | |||||||||||
| INCOME BEFORE INCOME TAXES | 15,389 | 14,811 | 11,655 | 3.90 | % | 32.04 | % | |||||||||||
| PROVISION FOR INCOME TAXES | 3,551 | 3,666 | 2,555 | -3.14 | % | 38.98 | % | |||||||||||
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ | 11,838 | $ | 11,145 | $ | 9,100 | 6.22 | % | 30.09 | % | ||||||||
| BASIC EARNINGS PER SHARE | $ | 0.56 | $ | 0.53 | $ | 0.43 | 5.66 | % | 30.23 | % | ||||||||
| DILUTED EARNINGS PER SHARE | $ | 0.56 | $ | 0.53 | $ | 0.43 | 5.66 | % | 30.23 | % | ||||||||
| BASIC AVERAGE SHARES | 21,208,509 | 20,981,372 | 20,931,154 | |||||||||||||||
| DILUTED AVERAGE SHARES | 21,238,482 | 21,034,165 | 20,975,807 | |||||||||||||||
|
PERFORMANCE RATIOS: |
||||||||||||||||||
| Net Interest Margin (FTE) | 3.91 | % | 3.89 | % | 3.98 | % | ||||||||||||
| Return on Average Assets | 1.01 | % | 0.95 | % | 0.81 | % | ||||||||||||
| Return on Average Common Equity | 10.85 | % | 10.38 | % | 8.75 | % | ||||||||||||
|
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION |
||||||||||||||||||
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP) | $ | 11,838 | $ | 11,145 | $ | 9,100 | 6.22 | % | 30.09 | % | ||||||||
| Non-Interest Income Components | ||||||||||||||||||
| (Less)/Add - Net (Gain)/Loss on Sale of Securities, net of tax | - | 13 | - | |||||||||||||||
| NET OPERATING EARNINGS | $ | 11,838 | $ | 11,158 | $ | 9,100 | 6.09 | % | 30.09 | % | ||||||||
| Diluted Earnings Per Share, on an Operating Basis | $ | 0.56 | $ | 0.53 | $ | 0.43 | 5.66 | % | 30.23 | % | ||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
| Twelve Months Ended | % Change | ||||||||||
| December 31, | December 31, | Dec. 2010 vs. | |||||||||
| 2010 | 2009 | Dec. 2009 | |||||||||
| INTEREST INCOME | |||||||||||
| Interest on Fed Funds Sold and Short Term Investments | $ | 337 | $ | 290 | 16.21 | % | |||||
| Interest and Dividends on Securities | 24,657 | 29,642 | -16.82 | % | |||||||
| Interest on Loans | 177,064 | 172,128 | 2.87 | % | |||||||
| Interest on Loans Held for Sale | 666 | 629 | 5.88 | % | |||||||
| Total Interest Income | 202,724 | 202,689 | 0.02 | % | |||||||
| INTEREST EXPENSE | |||||||||||
| Interest on Deposits | 20,254 | 31,163 | -35.01 | % | |||||||
| Interest on Borrowed Funds | 18,509 | 20,832 | -11.15 | % | |||||||
| Total Interest Expense | 38,763 | 51,995 | -25.45 | % | |||||||
| Net Interest Income | 163,961 | 150,694 | 8.80 | % | |||||||
| Less - Provision for Loan Losses | 18,655 | 17,335 | 7.61 | % | |||||||
| Net Interest Income after Provision for Loan Losses | 145,306 | 133,359 | 8.96 | % | |||||||
| NON-INTEREST INCOME | |||||||||||
| Service Charges on Deposit Accounts | 18,708 | 17,060 | 9.66 | % | |||||||
| Wealth Management | 11,723 | 10,047 | 16.68 | % | |||||||
| Mortgage Banking Income | 5,041 | 4,857 | 3.79 | % | |||||||
| BOLI Income | 3,192 | 2,939 | 8.61 | % | |||||||
| Net Gain on Sale of Securities | 458 | 1,354 | -66.17 | % | |||||||
| Gain Resulting From early Termination of Hedging Relationship | - | 3,778 | -100.00 | % | |||||||
| Gross Change on Write-Down of Certain Investments to Fair Value | 497 | (7,382 | ) | -106.73 | % | ||||||
| Less: Non-Credit Related Other-Than-Temporary Impairment | (831 | ) | (1,576 | ) | -47.27 | % | |||||
| Net Loss on Write-Down of Certain Investments to Fair Value | (334 | ) | (8,958 | ) | -96.27 | % | |||||
| Other Non-Interest Income | 8,118 | 7,115 | 14.10 | % | |||||||
| Total Non-Interest Income | 46,906 | 38,192 | 22.82 | % | |||||||
| NON-INTEREST EXPENSE | |||||||||||
| Salaries and Employee Benefits | 76,983 | 68,257 | 12.78 | % | |||||||
| Occupancy and Equipment Expenses | 16,011 | 15,673 | 2.16 | % | |||||||
| Data Processing and Facilities Management | 5,773 | 5,779 | -0.10 | % | |||||||
| Merger & Acquisition Expense | - | 12,423 | -100.00 | % | |||||||
| FDIC assessment | 5,247 | 6,975 | -24.77 | % | |||||||
| Other Non-Interest Expense | 35,731 | 32,708 | 9.24 | % | |||||||
| Total Non-Interest Expense | 139,745 | 141,815 | -1.46 | % | |||||||
| INCOME BEFORE INCOME TAXES | 52,467 | 29,736 | 76.44 | % | |||||||
| PROVISION FOR INCOME TAXES | 12,227 | 6,747 | 81.22 | % | |||||||
| NET INCOME | $ | 40,240 | $ | 22,989 | 75.04 | % | |||||
| PREFERRED STOCK DIVIDEND | $ | - | $ | 5,698 | - | ||||||
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ | 40,240 | $ | 17,291 | 132.72 | % | |||||
| BASIC EARNINGS PER SHARE | $ | 1.90 | $ | 0.88 | 115.91 | % | |||||
| DILUTED EARNINGS PER SHARE | $ | 1.90 | $ | 0.88 | 115.91 | % | |||||
| BASIC AVERAGE SHARES | 21,178,117 | 19,642,965 | |||||||||
| DILUTED AVERAGE SHARES | 21,203,915 | 19,673,156 | |||||||||
|
PERFORMANCE RATIOS: |
|||||||||||
| Net Interest Margin (FTE) | 3.95 | % | 3.89 | % | |||||||
| Return on Average Assets | 0.88 | % | 0.40 | % | |||||||
| Return on Average Common Equity | 9.46 | % | 4.29 | % | |||||||
|
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION |
|||||||||||
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP) | $ | 40,240 | $ | 17,291 | 132.72 | % | |||||
| Non-Interest Income Components | |||||||||||
| Less - Net Gain on Sale of Securities, net of tax | (271 | ) | (880 | ) | |||||||
| Less - Gain Resulting From early Termination of Hedging Relationship | - | (2,456 | ) | ||||||||
| Non-Interest Expense Components | |||||||||||
| Add - Merger and Acquisition Expenses, net of tax | - | 9,706 | |||||||||
| Add - Fair Value Mark on a Terminated Hedging Relationship | 328 | - | |||||||||
| Deemed Preferred Stock Dividend | - | 4,384 | |||||||||
| NET OPERATING EARNINGS | $ | 40,297 | $ | 28,045 | 43.69 | % | |||||
| Diluted Earnings Per Share, on an Operating Basis | $ | 1.90 | $ | 1.43 | 32.87 | % | |||||
|
INDEPENDENT BANK CORP. FINANCIAL SUMMARY |
||||||||||||||||||||||||||||||||
| (Unaudited - Dollars in Thousands, Except Per Share Data) | ||||||||||||||||||||||||||||||||
| RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
| % Change | % Change | % Change | ||||||||||||||||||||||||||||||
| December 31, | September 30, | December 31, | Dec 2010 vs. | Dec. 2010 vs. | December 31, | December 31, | Dec. 2010 vs. | |||||||||||||||||||||||||
| 2010 | 2010 | 2009 | Sept. 2010 | Dec. 2009 | 2010 | 2009 | Dec. 2009 | |||||||||||||||||||||||||
| Non-Interest Income GAAP | $ | 14,263 | $ | 11,654 | $ | 10,029 | 22.39 | % | 42.22 | % | $ | 46,906 | $ | 38,192 | 22.82 | % | ||||||||||||||||
| Add/(less) - Net Loss/(Gain) on Sale of Securities | - | 22 | - | -100.00 | % | n/a | (458 | ) | (1,354 | ) | -66.17 | % | ||||||||||||||||||||
| Less - Gain Resulting From Early Termination of Hedging Relationship | - | - | - | n/a | n/a | - | (3,778 | ) | -100.00 | % | ||||||||||||||||||||||
| Add - Other-Than-Temporary-Impairment on Securities | 66 | 7 | 2,165 | 842.86 | % | -96.95 | % | 334 | 8,958 | -96.27 | % | |||||||||||||||||||||
| Non-Interest Income as Adjusted | $ | 14,329 | $ | 11,683 | $ | 12,194 | 22.65 | % | 17.51 | % | $ | 46,782 | $ | 42,018 | 11.34 | % | ||||||||||||||||
| Non-Interest Expense GAAP | $ | 36,688 | $ | 34,540 | $ | 34,648 | 6.22 | % | 5.89 | % | $ | 139,745 | $ | 141,815 | -1.46 | % | ||||||||||||||||
| Less - Merger & Acquisition Expenses | - | - | - | n/a | n/a | - | (12,423 | ) | -100.00 | % | ||||||||||||||||||||||
| Less - Fair Value Mark on a Terminated Hedging Relationship | - | - | - | n/a | n/a | (554 | ) | - | 100.00 | % | ||||||||||||||||||||||
| Non-Interest Expense as Adjusted | $ | 36,688 | $ | 34,540 | $ | 34,648 | 6.22 | % | 5.89 | % | $ | 139,191 | $ | 129,392 | 7.57 | % | ||||||||||||||||
| Certain non-core items are included in the computation of earnings in accordance with United States of America generally accepted accounting principles (“GAAP”) in both 2010 and 2009 as indicated by the table above. In an effort to provide investors with information regarding the Company's results, the Company has disclosed the following non-GAAP information, which management believes provides useful information to the investor. This information should not be viewed as a substitute for operating results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP information which may be presented by other companies. | ||||||||||||||||||||||||||||||||
|
ASSET QUALITY |
Nonperforming Assets | Net Charge-Offs | Net Charge-Offs | |||||||||||||||||||||||||||||
| For the Period Ending | For the Three Months Ending | For the Twelve Months Ending | ||||||||||||||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||
| 2010 | 2010 | 2009 | 2010 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||
| Nonperforming Loans | ||||||||||||||||||||||||||||||||
| Commercial & Industrial Loans | $ | 3,123 | $ | 4,417 | $ | 4,205 | $ | 1,037 | $ | 1,429 | $ | 1,705 | $ | 4,809 | $ | 2,989 | ||||||||||||||||
| Small Business Loans | 887 | 909 | 793 | 495 | 515 | 327 | 2,062 | 1,844 | ||||||||||||||||||||||||
| Commercial Real Estate Loans | 9,836 | 8,966 | 18,525 | 594 | 851 | 29 | 5,163 | 2,160 | ||||||||||||||||||||||||
| Residential Real Estate Loans | 6,728 | 7,863 | 10,829 | 46 | 24 | 150 | 498 | 725 | ||||||||||||||||||||||||
| Installment Loans - Home Equity | 1,756 | 1,881 | 1,166 | 378 | (38 | ) | 600 | 808 | 1,758 | |||||||||||||||||||||||
| Installment Loans - Other | 778 | 651 | 665 | 388 | 391 | 608 | 1,421 | 2,547 | ||||||||||||||||||||||||
| Total Nonperforming Loans / Total Net Charge-offs | $ | 23,108 | $ | 24,687 | $ | 36,183 | $ | 2,938 | $ | 3,172 | $ | 3,419 | $ | 14,761 | $ | 12,023 | ||||||||||||||||
| Non-Accrual Securities | 1,051 | 1,017 | 920 | |||||||||||||||||||||||||||||
| Other Assets in Possession | 61 | 74 | 148 | |||||||||||||||||||||||||||||
| Other Real Estate Owned | 7,273 | 9,011 | 3,994 | |||||||||||||||||||||||||||||
| Nonperforming Assets | $ | 31,493 | $ | 34,789 | $ | 41,245 | ||||||||||||||||||||||||||
| Nonperforming Loans/Gross Loans | 0.65 | % | 0.72 | % | 1.07 | % | ||||||||||||||||||||||||||
| Allowance for Loan Losses/Nonperforming Loans | 200.17 | % | 184.79 | % | 117.07 | % | ||||||||||||||||||||||||||
| Gross Loans/Total Deposits | 98.01 | % | 94.22 | % | 100.60 | % | ||||||||||||||||||||||||||
| Allowance for Loan Losses/Total Loans | 1.30 | % | 1.34 | % | 1.25 | % | ||||||||||||||||||||||||||
| Net charge-offs to average loans (quarter annualized) | 0.33 | % | 0.37 | % | 0.40 | % | ||||||||||||||||||||||||||
| Net charge-offs to average loans (year-to-date annualized) | 0.43 | % | 0.38 | % | ||||||||||||||||||||||||||||
| QTD | YTD | |||||||||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||||||||
|
Nonperforming Loans Reconciliation |
2010 | 2010 | ||||||||||||||||||||||||||||||
| Nonperforming Loans Beginning Balance | $ | 24,687 | $ | 36,183 | ||||||||||||||||||||||||||||
| New to Nonperforming | 10,569 | 46,699 | ||||||||||||||||||||||||||||||
| Loans Charged-Off | (3,231 | ) | (15,054 | ) | ||||||||||||||||||||||||||||
| Loans Paid-Off | (2,735 | ) | (20,484 | ) | ||||||||||||||||||||||||||||
| Loans Transferred to Other Real Estate Owned/Other Assets | (1,482 | ) | (11,461 | ) | ||||||||||||||||||||||||||||
| Loans Restored to Accrual Status | (3,875 | ) | (11,878 | ) | ||||||||||||||||||||||||||||
| Other | (825 | ) | (897 | ) | ||||||||||||||||||||||||||||
| Nonperforming Loans Ending Balance | $ | 23,108 | $ | 23,108 | ||||||||||||||||||||||||||||
| December 31, | September 30, | December 31, | ||||||||||||||||||||||||||||||
|
Financial Ratios |
2010 | 2010 | 2009 | |||||||||||||||||||||||||||||
| Book Value per Common Share | $ | 20.57 | $ | 20.08 | $ | 19.58 | ||||||||||||||||||||||||||
| Tangible Common Book Value per Share (proforma to include | ||||||||||||||||||||||||||||||||
| the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP | $ | 14.86 | $ | 14.34 | $ | 13.85 | ||||||||||||||||||||||||||
| Tangible Common Capital/Tangible Assets | 6.47 | % | 6.21 | % | 6.20 | % | ||||||||||||||||||||||||||
| Tangible Common Capital/Tangible Asset (proforma to include | ||||||||||||||||||||||||||||||||
| the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP | 6.89 | % | 6.64 | % | 6.65 | % | ||||||||||||||||||||||||||
|
Capital Adequacy |
||||||||||||||||||||||||||||||||
| Tier one leverage capital ratio (1) | 8.16 | % | 7.99 | % | 7.87 | % | ||||||||||||||||||||||||||
| Tier one common ratio (1) | 8.54 | % | 8.63 | % | 8.09 | % | ||||||||||||||||||||||||||
| (1) Estimated number for December 31, 2010 | ||||||||||||||||||||||||||||||||
| INDEPENDENT BANK CORP. | |||||||||||||||||||||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION | |||||||||||||||||||||||||||
| CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA | Three Months Ended | ||||||||||||||||||||||||||
| December 31, 2010 | September 30, 2010 | December 31, 2009 | |||||||||||||||||||||||||
| Interest | Interest | Interest | |||||||||||||||||||||||||
| Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | |||||||||||||||||||
| Balance | Paid | Rate | Balance | Paid | Rate | Balance | Paid | Rate | |||||||||||||||||||
| (Unaudited - Dollars in Thousands) | |||||||||||||||||||||||||||
| Interest-Earning Assets: | |||||||||||||||||||||||||||
| Interest Earning Deposits with Banks, Federal Funds Sold, and Short Term Investments | $ | 113,325 | $ | 71 | 0.25 | % | $ | 200,862 | $ | 135 | 0.27 | % | $ | 50,983 | $ | 18 | 0.14 | % | |||||||||
| Securities: | |||||||||||||||||||||||||||
| Trading Assets | 7,469 | 80 | 4.25 | % | 7,257 | 61 | 3.33 | % | 8,706 | 61 | 2.78 | % | |||||||||||||||
| Taxable Investment Securities | 588,797 | 5,627 | 3.79 | % | 561,240 | 5,618 | 3.97 | % | 602,679 | 6,833 | 4.50 | % | |||||||||||||||
| Non-taxable Investment Securities (1) | 10,816 | 203 | 7.45 | % | 15,953 | 277 | 6.89 | % | 19,343 | 311 | 6.38 | % | |||||||||||||||
| Total Securities: | 607,082 | 5,910 | 3.86 | % | 584,450 | 5,956 | 4.04 | % | 630,728 | 7,205 | 4.53 | % | |||||||||||||||
| Loans Held for Sale | 34,252 | 276 | 3.20 | % | 15,738 | 174 | 4.39 | % | 10,961 | 132 | 4.78 | % | |||||||||||||||
| Loans | |||||||||||||||||||||||||||
| Commercial and Industrial | 486,845 | 5,405 | 4.40 | % | 440,539 | 5,077 | 4.57 | % | 372,174 | 4,647 | 4.95 | % | |||||||||||||||
| Commercial Real Estate | 1,667,304 | 23,384 | 5.56 | % | 1,641,627 | 23,736 | 5.74 | % | 1,572,599 | 23,421 | 5.91 | % | |||||||||||||||
| Commercial Construction | 136,831 | 1,540 | 4.47 | % | 148,151 | 1,792 | 4.80 | % | 190,354 | 2,389 | 4.98 | % | |||||||||||||||
| Small Business | 79,863 | 1,190 | 5.91 | % | 80,740 | 1,221 | 6.00 | % | 82,568 | 1,250 | 6.01 | % | |||||||||||||||
| Total Commercial | 2,370,843 | 31,519 | 5.27 | % | 2,311,057 | 31,826 | 5.46 | % | 2,217,695 | 31,707 | 5.67 | % | |||||||||||||||
| Residential Real Estate | 490,439 | 5,810 | 4.70 | % | 525,003 | 6,174 | 4.67 | % | 570,546 | 7,045 | 4.90 | % | |||||||||||||||
| Residential Construction | 4,842 | 59 | 4.83 | % | 4,874 | 63 | 5.13 | % | 12,309 | 172 | 5.54 | % | |||||||||||||||
| Consumer - Home Equity | 542,979 | 5,229 | 3.82 | % | 507,308 | 4,914 | 3.84 | % | 470,121 | 4,576 | 3.86 | % | |||||||||||||||
| Total Consumer Real Estate | 1,038,260 | 11,098 | 4.24 | % | 1,037,185 | 11,151 | 4.27 | % | 1,052,976 | 11,793 | 4.44 | % | |||||||||||||||
| Total Other Consumer | 72,781 | 1,412 | 7.70 | % | 82,130 | 1,593 | 7.70 | % | 118,548 | 2,259 | 7.56 | % | |||||||||||||||
| Total Loans | 3,481,884 | 44,029 | 5.02 | % | 3,430,372 | 44,570 | 5.15 | % | 3,389,219 | 45,759 | 5.36 | % | |||||||||||||||
| Total Interest-Earning Assets | $ | 4,236,543 | $ | 50,286 | 4.71 | % | $ | 4,231,422 | $ | 50,835 | 4.77 | % | $ | 4,081,891 | $ | 53,114 | 5.16 | % | |||||||||
| Cash and Due from Banks | 55,541 | 55,357 | 64,799 | ||||||||||||||||||||||||
| Federal Home Loan Bank Stock | 35,854 | 35,854 | 36,351 | ||||||||||||||||||||||||
| Other Assets | 331,791 | 323,523 | 281,314 | ||||||||||||||||||||||||
| Total Assets | $ | 4,659,729 | $ | 4,646,156 | $ | 4,464,355 | |||||||||||||||||||||
| Interest-bearing Liabilities: | |||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||
| Savings and Interest Checking Accounts | $ | 1,271,639 | $ | 876 | 0.27 | % | $ | 1,220,073 | $ | 1,040 | 0.34 | % | $ | 977,673 | $ | 1,185 | 0.48 | % | |||||||||
| Money Market | 736,700 | 866 | 0.47 | % | 757,154 | 1,058 | 0.55 | % | 692,072 | 1,539 | 0.88 | % | |||||||||||||||
| Time Deposits | 721,970 | 2,287 | 1.26 | % | 805,825 | 2,703 | 1.33 | % | 931,510 | 4,145 | 1.77 | % | |||||||||||||||
| Total interest-bearing deposits: | $ | 2,730,309 | $ | 4,029 | 0.59 | % | $ | 2,783,052 | $ | 4,801 | 0.68 | % | $ | 2,601,255 | $ | 6,869 | 1.05 | % | |||||||||
| Borrowings: | |||||||||||||||||||||||||||
| Federal Home Loan Bank Borrowings | $ | 306,075 | $ | 2,391 | 3.10 | % | $ | 302,610 | $ | 2,372 | 3.11 | % | $ | 383,331 | $ | 2,971 | 3.07 | % | |||||||||
| Federal Funds Purchased and Assets Sold | |||||||||||||||||||||||||||
| Under Repurchase Agreement | 182,501 | 693 | 1.51 | % | 179,983 | 740 | 1.63 | % | 191,229 | 871 | 1.81 | % | |||||||||||||||
| Junior Subordinated Debentures | 61,857 | 922 | 5.91 | % | 61,857 | 931 | 5.97 | % | 61,857 | 921 | 5.91 | % | |||||||||||||||
| Subordinated Debentures | 30,000 | 547 | 7.23 | % | 30,000 | 547 | 7.23 | % | 30,000 | 553 | 7.31 | % | |||||||||||||||
| Other Borrowings | 3,093 | - | 0.00 | % | 2,602 | - | 0.00 | % | 2,227 | - | 0.00 | % | |||||||||||||||
| Total Borrowings: | 583,526 | 4,553 | 3.10 | % | 577,052 | 4,590 | 3.16 | % | 668,644 | 5,316 | 3.15 | % | |||||||||||||||
| Total Interest-Bearing Liabilities | $ | 3,313,835 | $ | 8,582 | 1.03 | % | $ | 3,360,104 | $ | 9,391 | 1.11 | % | $ | 3,269,899 | $ | 12,185 | 1.48 | % | |||||||||
| Demand Deposits | 841,440 | 796,205 | 731,053 | ||||||||||||||||||||||||
| Other Liabilities | 71,785 | 63,790 | 50,791 | ||||||||||||||||||||||||
| Total Liabilities | $ | 4,227,060 | $ | 4,220,099 | $ | 4,051,743 | |||||||||||||||||||||
| Stockholders' Equity | 432,669 | 426,057 | 412,612 | ||||||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 4,659,729 | $ | 4,646,156 | $ | 4,464,355 | |||||||||||||||||||||
| Net Interest Income | $ | 41,704 | $ | 41,444 | $ | 40,929 | |||||||||||||||||||||
| Interest Rate Spread (2) | 3.68 | % | 3.66 | % | 3.68 | % | |||||||||||||||||||||
| Net Interest Margin (3) | 3.91 | % | 3.89 | % | 3.98 | % | |||||||||||||||||||||
| Supplemental Information: | |||||||||||||||||||||||||||
| Total Deposits, including Demand Deposits | $ | 3,571,749 | $ | 4,029 | $ | 3,579,257 | $ | 4,801 | $ | 3,332,308 | $ | 6,869 | |||||||||||||||
| Cost of Total Deposits | 0.45 | % | 0.53 | % | 0.82 | % | |||||||||||||||||||||
| Total Funding Liabilities, including Demand Deposits | $ | 4,155,275 | $ | 8,582 | $ | 4,156,309 | $ | 9,391 | $ | 4,000,952 | $ | 12,185 | |||||||||||||||
| Cost of Total Funding Liabilities | 0.82 | % | 0.90 | % | 1.21 | % | |||||||||||||||||||||
| (1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $315, $247, and $231 for the three months ended December 31, 2010, September 30, 2010, and December 31, 2009, 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. | |||||||||||||||||||||||||||
| Twelve Months Ended | ||||||||||||||||||
| December 31, 2010 | December 31, 2009 | |||||||||||||||||
| Interest | Interest | |||||||||||||||||
| Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | |||||||||||||
| Balance | Paid | Rate | Balance | Paid | Rate | |||||||||||||
| (Unaudited - Dollars in Thousands) | ||||||||||||||||||
| Interest-Earning Assets: | ||||||||||||||||||
| Interest Earning Deposits with Banks, Federal Funds Sold, and Short Term Investments | $ | 132,019 | $ | 337 | 0.26 | % | $ | 67,296 | $ | 290 | 0.43 | % | ||||||
| Securities: | ||||||||||||||||||
| Trading Assets | 7,225 | 262 | 3.63 | % | 12,126 | 239 | 1.97 | % | ||||||||||
| Taxable Investment Securities | 569,069 | 23,722 | 4.17 | % | 605,453 | 28,456 | 4.70 | % | ||||||||||
| Non-taxable Investment Securities (1) | 15,877 | 1,138 | 7.17 | % | 22,671 | 1,457 | 6.43 | % | ||||||||||
| Total Securities: | 592,171 | 25,122 | 4.24 | % | 640,250 | 30,152 | 4.71 | % | ||||||||||
| Loans Held for Sale | 16,266 | 666 | 4.09 | % | 14,320 | 629 | 4.39 | % | ||||||||||
| Loans | ||||||||||||||||||
| Commercial and Industrial | 427,004 | 19,457 | 4.56 | % | 336,776 | 15,955 | 4.74 | % | ||||||||||
| Commercial Real Estate | 1,646,419 | 94,217 | 5.72 | % | 1,418,997 | 86,016 | 6.06 | % | ||||||||||
| Commercial Construction | 155,524 | 7,507 | 4.83 | % | 193,498 | 9,502 | 4.91 | % | ||||||||||
| Small Business | 81,091 | 4,829 | 5.96 | % | 85,567 | 5,143 | 6.01 | % | ||||||||||
| Total Commercial | 2,310,038 | 126,010 | 5.45 | % | 2,034,838 | 116,616 | 5.73 | % | ||||||||||
| Residential Real Estate | 525,203 | 25,235 | 4.80 | % | 542,758 | 27,333 | 5.04 | % | ||||||||||
| Residential Construction | 6,565 | 334 | 5.09 | % | 12,798 | 805 | 6.29 | % | ||||||||||
| Consumer - Home Equity | 504,886 | 19,369 | 3.84 | % | 447,890 | 17,523 | 3.91 | % | ||||||||||
| Total Consumer Real Estate | 1,036,654 | 44,938 | 4.33 | % | 1,003,446 | 45,661 | 4.55 | % | ||||||||||
| Total Other Consumer | 88,077 | 6,799 | 7.72 | % | 139,665 | 10,338 | 7.40 | % | ||||||||||
| Total Loans | 3,434,769 | 177,747 | 5.17 | % | 3,177,949 | 172,615 | 5.43 | % | ||||||||||
| Total Interest-Earning Assets | $ | 4,175,225 | $ | 203,872 | 4.88 | % | $ | 3,899,815 | $ | 203,686 | 5.22 | % | ||||||
| Cash and Due from Banks | 62,103 | 65,509 | ||||||||||||||||
| Federal Home Loan Bank Stock | 35,854 | 33,135 | ||||||||||||||||
| Other Assets | 316,234 | 278,057 | ||||||||||||||||
| Total Assets | $ | 4,589,416 | $ | 4,276,516 | ||||||||||||||
| Interest-bearing Liabilities: | ||||||||||||||||||
| Deposits: | ||||||||||||||||||
| Savings and Interest Checking Accounts | $ | 1,183,247 | $ | 4,397 | 0.37 | % | $ | 913,881 | $ | 4,753 | 0.52 | % | ||||||
| Money Market | 739,264 | 4,565 | 0.62 | % | 639,231 | 6,545 | 1.02 | % | ||||||||||
| Time Deposits | 814,462 | 11,292 | 1.39 | % | 921,787 | 19,865 | 2.16 | % | ||||||||||
| Total interest-bearing deposits: | $ | 2,736,973 | $ | 20,254 | 0.74 | % | $ | 2,474,899 | $ | 31,163 | 1.26 | % | ||||||
| Borrowings: | ||||||||||||||||||
| Federal Home Loan Bank Borrowings | $ | 318,151 | $ | 9,589 | 3.01 | % | $ | 409,551 | $ | 11,519 | 2.81 | % | ||||||
| Federal Funds Purchased and Assets Sold | ||||||||||||||||||
| Under Repurchase Agreement | 182,467 | 3,084 | 1.69 | % | 180,632 | 3,396 | 1.88 | % | ||||||||||
| Junior Subordinated Debentures | 61,857 | 3,666 | 5.93 | % | 61,857 | 3,739 | 6.04 | % | ||||||||||
| Subordinated Debentures | 30,000 | 2,170 | 7.23 | % | 30,000 | 2,178 | 7.26 | % | ||||||||||
| Other Borrowings | 2,802 | - | 0.00 | % | 2,054 | - | 0.00 | % | ||||||||||
| Total Borrowings: | 595,277 | 18,509 | 3.11 | % | 684,094 | 20,832 | 3.05 | % | ||||||||||
| Total Interest-Bearing Liabilities | $ | 3,332,250 | $ | 38,763 | 1.16 | % | $ | 3,158,993 | $ | 51,995 | 1.65 | % | ||||||
| Demand Deposits | 773,718 | 659,916 | ||||||||||||||||
| Other Liabilities | 58,199 | 54,697 | ||||||||||||||||
| Total Liabilities | $ | 4,164,167 | $ | 3,873,606 | ||||||||||||||
| Stockholders' Equity | 425,249 | 402,910 | ||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 4,589,416 | $ | 4,276,516 | ||||||||||||||
| Net Interest Income | $ | 165,109 | $ | 151,691 | ||||||||||||||
| Interest Rate Spread (2) | 3.72 | % | 3.58 | % | ||||||||||||||
| Net Interest Margin (3) | 3.95 | % | 3.89 | % | ||||||||||||||
| Supplemental Information: | ||||||||||||||||||
| Total Deposits, including Demand Deposits | $ | 3,510,691 | $ | 20,254 | $ | 3,134,815 | $ | 31,163 | ||||||||||
| Cost of Total Deposits | 0.58 | % | 0.99 | % | ||||||||||||||
| Total Funding Liabilities, including Demand Deposits | $ | 4,105,968 | $ | 38,763 | $ | 3,818,909 | $ | 51,995 | ||||||||||
| Cost of Total Funding Liabilities | 0.94 | % | 1.36 | % | ||||||||||||||
| (1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $1,148 and $997 for the twelve months ended December 31, 2010, and December 31, 2009, 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