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| 8-K - INDEPENDENT BANK CORP. 8-K - INDEPENDENT BANK CORP | a6793026.htm |
Exhibit 99.1
Independent Bank Corp. Reports Second Quarter Net Income of $11.1 Million
Strong Loan and Deposit Growth Drives Performance
ROCKLAND, Mass.--(BUSINESS WIRE)--July 14, 2011--Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced net income of $11.1 million for the second quarter of 2011, or $0.52 on a diluted earnings per share basis. The results of the second quarter 2011 represent an increase of $0.14 or 36.8% on a diluted per share basis as compared to the second quarter of 2010 and were consistent with linked quarter results.
Christopher Oddleifson, the President and Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company, stated: “Our track record of delivering consistent, solid results continued in the second quarter, led by robust loan and deposit growth as well as ongoing momentum in our investment management business. Rockland Trust derives its success from acquiring new customers while deepening our existing customer relationships. We’re also pleased that Fitch noted our consistent financial performance amidst a difficult operating environment and recently upgraded its rating of Independent Bank Corp. and Rockland Trust to ‘BBB’ from ‘BBB’-.”
BALANCE SHEET
Total assets of $4.8 billion at June 30, 2011 are up $197.2 million from the prior quarter.
Total loans grew to $3.7 billion at June 30, 2011, an increase of $96.9 million, or 2.7%, compared with the prior quarter, or 10.7% on an annualized basis. The Company continued to drive robust growth in its commercial and industrial loan portfolio, which increased by $59.2 million, or 11.6%, in the second quarter, as the Company continued to grow its base of high-quality customers. Commercial real estate loan generation remained strong, as the portfolio increased by $30.7 million, or 1.7%. The home equity portfolio also sustained its steady growth, rising $13.0 million, or 2.1%. Residential real estate loans declined by $7.5 million, or 1.6%, as loans refinanced into longer-term, fixed-rate loans, which are not commonly held in portfolio by the Company.
Deposit volumes were especially strong in the second quarter as total deposits increased by $201.6 million, or 5.6%, during the three months ended June 30, 2011. Core deposits increased by $205.4 million, or 7.1%, driven by inflows in municipal deposits as well as increases in demand deposits due to both increased marketing efforts of the Company and seasonality within the deposit customer base. Time deposits continued to decline but at a more modest pace, decreasing by $3.8 million, or 0.6%, in the second quarter. Core deposits to total deposits rose to 82.3% and the total cost of deposits remained stable at 0.39% for the current quarter.
Securities decreased by $41.6 million compared to the linked quarter to $547.5 million due to paydowns on securities and the sale of $13.9 million of mortgage backed securities.
Stockholders’ equity at June 30, 2011 increased by 1.7% to $455.7 million as compared to the balance at March 31, 2011. The Tier 1 leverage capital ratio at June 30, 2011 remained consistent with prior quarter at 8.5%, maintaining the Company’s well-capitalized position.
NET INTEREST INCOME
Net interest income of $42.1 million was up from the prior quarter due to higher levels of earning assets. The net interest margin in the second quarter of 2011 declined to 3.97%, compared to 4.02% due primarily to lower loan yields.
NON-INTEREST INCOME
The Company recorded non-interest income of $13.5 million during the second quarter of 2011 which represents an $876,000, or 7.0%, increase from the prior quarter. The change in non-interest income is composed of the following:
- Service charges on deposit accounts increased $233,000, or 5.9%.
- Interchange and ATM fees increased by $272,000, or 16.0%, due primarily to increased debit card usage by customers.
- Investment management revenue increased by $387,000, or 12.0%. Assets under management in the investment management division rose to $1.7 billion at June 30, 2011, an increase of $ 26.1 million compared to March 31, 2011.
- Non-interest income benefited from the sale of securities in the second quarter, resulting in a gain of $723,000. There were no gains on sale of securities during the first quarter of the year.
- Mortgage banking income decreased by $364,000, or 34.8%, reflective of reduced volumes being experienced in the industry.
- Other non-interest income decreased by $433,000, or 21.6%, mainly due to fee revenue in the prior period associated with loan level interest rate derivatives.
NON-INTEREST EXPENSE
The Company recorded non-interest expense of $36.9 million in the second quarter of 2011, an increase of $374,000, or 1.0%, when compared to the quarter ended March 31, 2011. Significant changes of non-interest expense included the following:
- Salary and employee benefits decreased $490,000, or 2.4% primarily due to decreases in payroll taxes in the second quarter offset by merit increases in the second quarter.
- Occupancy and equipment decreased $312,000, or 6.8% primarily due to high costs of snow removal incurred during the first quarter.
- Data processing and facilities management decreased by $600,000, or 36.6% due to conversion costs associated with a change in the service provider incurred during the first quarter.
- FDIC assessment decreased $513,000, or 39.7% due to a lower assessment rate that was effective during the second quarter.
- Other non-interest expense increased by $2.3 million, or 26.2%, which is primarily attributable to higher credit-related loan workout expenses, which are inclusive of write-downs on OREO properties, of $832,000, increased marketing efforts, which resulted in an increase of $803,000, and increased exams and audit fees of $286,000.
The Company generated a return on average assets and a return on average common equity in the second quarter of 2011 of 0.95% and 9.78%, respectively, as compared to 0.98% and 10.24% for the quarter ended March 31, 2011.
ASSET QUALITY
The Company continued to maintain a solid credit profile during the quarter. Net charge-offs increased to $3.3 million, or 0.36% on an annualized basis of average loans, for the second quarter of 2011 compared to $2.0 million, or 0.23% for the quarter ended March 31, 2011. The provision for loan losses was $3.5 million and $2.2 million for the quarters ended June 30, 2011 and March 31, 2011, respectively. Nonperforming loans decreased to $21.9 million, or 0.59% of total loans at June 30, 2011, from $23.4 million, or 0.64% of total loans at March 31, 2011. Delinquency as a percent of loans declined to 0.83% at June 30, 2011 compared to 1.19% at March 31, 2011.
The allowance for loan losses was $46.6 million at June 30, 2011, compared with the prior quarter level of $46.4 million. The Company’s allowance for loan losses was 1.25%, as a percentage of total loans at June 30, 2011, compared to 1.28%, at March 31, 2011.
Christopher Oddleifson and Denis K. Sheahan, Chief Financial Officer, of Independent Bank Corp. and Rockland Trust Company, will host a conference call to discuss second quarter earnings at 10:00 a.m. Eastern Time on Friday, July 15, 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: 10001834. The web cast replay will be available until July 15, 2012.
Independent Bank Corp., which has Rockland Trust Company as a wholly-owned bank subsidiary, has $4.8 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 |
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| (Unaudited - Dollars in Thousands) | ||||||||||||||||||||||||
| % Change | % Change | |||||||||||||||||||||||
| CONSOLIDATED BALANCE SHEETS | June 30, | March 31, | June 30, | June 2011 vs. | June 2011 vs. | |||||||||||||||||||
| 2011 | 2011 | 2010 | March 2011 | June 2010 | ||||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Cash and Due From Banks | $ | 56,679 | $ | 49,242 | $ | 69,221 | 15.10 | % | -18.12 | % | ||||||||||||||
| Interest Earning Deposits with Banks | 129,420 | 17,042 | 268,187 | 659.42 | % | -51.74 | % | |||||||||||||||||
| Fed Funds Sold | 1,197 | 417 | 781 | 187.05 | % | 53.27 | % | |||||||||||||||||
| Securities | ||||||||||||||||||||||||
| Trading Assets | 8,539 | 8,521 | 7,163 | 0.21 | % | 19.21 | % | |||||||||||||||||
| Securities Available for Sale | 305,895 | 341,362 | 482,989 | -10.39 | % | -36.67 | % | |||||||||||||||||
| Securities Held to Maturity | 233,109 | 239,305 | 103,463 | -2.59 | % | 125.31 | % | |||||||||||||||||
| Total Securities | 547,543 | 589,188 | 593,615 | -7.07 | % | -7.76 | % | |||||||||||||||||
| Loans Held for Sale | 12,255 | 8,643 | 16,365 | 41.79 | % | -25.11 | % | |||||||||||||||||
| Loans | ||||||||||||||||||||||||
| Commercial and Industrial | 568,022 | 508,839 | 427,398 | 11.63 | % | 32.90 | % | |||||||||||||||||
| Commercial Real Estate | 1,801,026 | 1,770,324 | 1,646,204 | 1.73 | % | 9.40 | % | |||||||||||||||||
| Commercial Construction | 130,303 | 123,428 | 158,036 | 5.57 | % | -17.55 | % | |||||||||||||||||
| Small Business | 78,905 | 80,817 | 80,965 | -2.37 | % | -2.54 | % | |||||||||||||||||
| Total Commercial | 2,578,256 | 2,483,408 | 2,312,603 | 3.82 | % | 11.49 | % | |||||||||||||||||
| Residential Real Estate | 454,597 | 462,110 | 525,062 | -1.63 | % | -13.42 | % | |||||||||||||||||
| Residential Construction | 6,404 | 3,256 | 4,594 | 96.68 | % | 39.40 | % | |||||||||||||||||
| Consumer - Home Equity | 632,735 | 619,727 | 498,789 | 2.10 | % | 26.85 | % | |||||||||||||||||
| Total Consumer Real Estate | 1,093,736 | 1,085,093 | 1,028,445 | 0.80 | % | 6.35 | % | |||||||||||||||||
| Total Other Consumer | 53,239 | 59,873 | 87,864 | -11.08 | % | -39.41 | % | |||||||||||||||||
| Total Loans | 3,725,231 | 3,628,374 | 3,428,912 | 2.67 | % | 8.64 | % | |||||||||||||||||
| Less - Allowance for Loan Losses | (46,637 | ) | (46,444 | ) | (45,291 | ) | 0.42 | % | 2.97 | % | ||||||||||||||
| Net Loans | 3,678,594 | 3,581,930 | 3,383,621 | 2.70 | % | 8.72 | % | |||||||||||||||||
| Federal Home Loan Bank Stock | 35,854 | 35,854 | 35,854 | 0.00 | % | 0.00 | % | |||||||||||||||||
| Bank Premises and Equipment | 46,368 | 46,481 | 45,089 | -0.24 | % | 2.84 | % | |||||||||||||||||
| Goodwill and Core Deposit Intangible | 141,489 | 141,951 | 142,888 | -0.33 | % | -0.98 | % | |||||||||||||||||
| Other Assets | 193,544 | 175,035 | 185,354 | 10.57 | % | 4.42 | % | |||||||||||||||||
| Total Assets | $ | 4,842,943 | $ | 4,645,783 | $ | 4,740,975 | 4.24 | % | 2.15 | % | ||||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||
| Demand Deposits | $ | 913,960 | $ | 837,705 | $ | 789,019 | 9.10 | % | 15.83 | % | ||||||||||||||
| Savings and Interest Checking Accounts | 1,479,365 | 1,348,242 | 1,305,515 | 9.73 | % | 13.32 | % | |||||||||||||||||
| Money Market | 722,234 | 724,203 | 760,471 | -0.27 | % | -5.03 | % | |||||||||||||||||
| Time Certificates of Deposit | 671,003 | 674,776 | 824,868 | -0.56 | % | -18.65 | % | |||||||||||||||||
| Total Deposits | 3,786,562 | 3,584,926 | 3,679,873 | 5.62 | % | 2.90 | % | |||||||||||||||||
| Borrowings | ||||||||||||||||||||||||
| Federal Home Loan Bank Borrowings | 258,012 | 277,285 | 302,677 | -6.95 | % | -14.76 | % | |||||||||||||||||
| Fed Funds Purchased and Assets Sold | ||||||||||||||||||||||||
| Under Repurchase Agreements | 183,166 | 184,738 | 178,476 | -0.85 | % | 2.63 | % | |||||||||||||||||
| 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 | 2,635 | 2,838 | 3,136 | -7.15 | % | -15.98 | % | |||||||||||||||||
| Total Borrowings | 535,670 | 556,718 | 576,146 | -3.78 | % | -7.03 | % | |||||||||||||||||
| Total Deposits and Borrowings | 4,322,232 | 4,141,644 | 4,256,019 | 4.36 | % | 1.56 | % | |||||||||||||||||
| Other Liabilities | 65,009 | 56,154 | 62,894 | 15.77 | % | 3.36 | % | |||||||||||||||||
| Stockholders' Equity | ||||||||||||||||||||||||
| Common Stock | 212 | 212 | 210 | 0.00 | % | 0.95 | % | |||||||||||||||||
| Additional Paid in Capital | 231,987 | 230,581 | 225,792 | 0.61 | % | 2.74 | % | |||||||||||||||||
| Retained Earnings | 224,488 | 217,443 | 194,587 | 3.24 | % | 15.37 | % | |||||||||||||||||
| Accumulated Other Comprehensive Income/(Loss), Net of Tax | (985 | ) | (251 | ) | 1,473 | 292.43 | % | -166.87 | % | |||||||||||||||
| Total Stockholders' Equity | 455,702 | 447,985 | 422,062 | 1.72 | % | 7.97 | % | |||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 4,842,943 | $ | 4,645,783 | $ | 4,740,975 | 4.24 | % | 2.15 | % | ||||||||||||||
|
INDEPENDENT BANK CORP. FINANCIAL SUMMARY |
||||||||||||||||||||||||
| (Unaudited - Dollars in Thousands, Except Per Share Data) | ||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | |||||||||||||||||||||||
| % Change | % Change | |||||||||||||||||||||||
| June 30, | March 31, | June 30, | June 2011 vs. | June 2011 vs. | ||||||||||||||||||||
| 2011 | 2011 | 2010 | March 2011 | June 2010 | ||||||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||||||
| Interest on Fed Funds Sold and Short Term Investments | $ | 14 | $ | 17 | $ | 108 | -17.65 | % | -87.04 | % | ||||||||||||||
| Interest and Dividends on Securities | 5,452 | 5,606 | 6,316 | -2.75 | % | -13.68 | % | |||||||||||||||||
| Interest on Loans | 43,938 | 43,216 | 44,785 | 1.67 | % | -1.89 | % | |||||||||||||||||
| Interest on Loans Held for Sale | 70 | 119 | 110 | -41.18 | % | -36.36 | % | |||||||||||||||||
| Total Interest Income | 49,474 | 48,958 | 51,319 | 1.05 | % | -3.60 | % | |||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||
| Interest on Deposits | 3,544 | 3,485 | 5,485 | 1.69 | % | -35.39 | % | |||||||||||||||||
| Interest on Borrowed Funds | 3,854 | 4,000 | 4,667 | -3.65 | % | -17.42 | % | |||||||||||||||||
| Total Interest Expense | 7,398 | 7,485 | 10,152 | -1.16 | % | -27.13 | % | |||||||||||||||||
| Net Interest Income | 42,076 | 41,473 | 41,167 | 1.45 | % | 2.21 | % | |||||||||||||||||
| Less - Provision for Loan Losses | 3,482 | 2,200 | 6,931 | 58.27 | % | -49.76 | % | |||||||||||||||||
| Net Interest Income after Provision for Loan Losses | 38,594 | 39,273 | 34,236 | -1.73 | % | 12.73 | % | |||||||||||||||||
| NON-INTEREST INCOME | ||||||||||||||||||||||||
| Service Charges on Deposit Accounts | 4,192 | 3,959 | 3,257 | 5.89 | % | 28.71 | % | |||||||||||||||||
| Interchange and ATM Fees | 1,974 | 1,702 | 1,258 | 15.98 | % | 56.92 | % | |||||||||||||||||
| Investment Management | 3,603 | 3,216 | 3,189 | 12.03 | % | 12.98 | % | |||||||||||||||||
| Mortgage Banking Income | 683 | 1,047 | 622 | -34.77 | % | 9.81 | % | |||||||||||||||||
| BOLI Income | 860 | 706 | 731 | 21.81 | % | 17.65 | % | |||||||||||||||||
| Net Gain/(Loss) on Sale of Securities | 723 | - | 481 | 100.00 | % | 50.31 | % | |||||||||||||||||
| Gross Change on Write-Down of Certain Investments to Fair Value | 170 | 249 | (63 | ) | -31.73 | % | -369.84 | % | ||||||||||||||||
| Less: Non-Credit Related Other-Than-Temporary Impairment | (306 | ) | (289 | ) | (21 | ) | 5.88 | % | 1357.14 | % | ||||||||||||||
| Net Loss on Write-Down of Certain Investments to Fair Value | (136 | ) | (40 | ) | (84 | ) | 240.00 | % | 61.90 | % | ||||||||||||||
| Other Non-Interest Income | 1,575 | 2,008 | 1,484 | -21.56 | % | 6.13 | % | |||||||||||||||||
| Total Non-Interest Income | 13,474 | 12,598 | 10,938 | 6.95 | % | 23.19 | % | |||||||||||||||||
| NON-INTEREST EXPENSE | ||||||||||||||||||||||||
| Salaries and Employee Benefits | 19,762 | 20,252 | 18,406 | -2.42 | % | 7.37 | % | |||||||||||||||||
| Occupancy and Equipment Expenses | 4,263 | 4,575 | 4,094 | -6.82 | % | 4.13 | % | |||||||||||||||||
| Data Processing and Facilities Management | 1,038 | 1,638 | 1,497 | -36.63 | % | -30.66 | % | |||||||||||||||||
| FDIC Assessment | 778 | 1,291 | 1,271 | -39.74 | % | -38.79 | % | |||||||||||||||||
| Other Non-Interest Expense | 11,015 | 8,726 | 9,661 | 26.23 | % | 14.02 | % | |||||||||||||||||
| Total Non-Interest Expense | 36,856 | 36,482 | 34,929 | 1.03 | % | 5.52 | % | |||||||||||||||||
| INCOME BEFORE INCOME TAXES | 15,212 | 15,389 | 10,245 | -1.15 | % | 48.48 | % | |||||||||||||||||
| PROVISION FOR INCOME TAXES | 4,092 | 4,201 | 2,215 | -2.59 | % | 84.74 | % | |||||||||||||||||
| NET INCOME | $ | 11,120 | $ | 11,188 | $ | 8,030 | -0.61 | % | 38.48 | % | ||||||||||||||
| BASIC EARNINGS PER SHARE | $ | 0.52 | $ | 0.53 | $ | 0.38 | -1.89 | % | 36.84 | % | ||||||||||||||
| DILUTED EARNINGS PER SHARE | $ | 0.52 | $ | 0.52 | $ | 0.38 | 0.00 | % | 36.84 | % | ||||||||||||||
| BASIC AVERAGE SHARES | 21,441,864 | 21,298,257 | 20,964,706 | |||||||||||||||||||||
| DILUTED AVERAGE SHARES | 21,481,023 | 21,344,339 | 21,055,645 | |||||||||||||||||||||
|
PERFORMANCE RATIOS: |
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| Net Interest Margin (FTE) | 3.97 | % | 4.02 | % | 3.96 | % | ||||||||||||||||||
| Return on Average Assets | 0.95 | % | 0.98 | % | 0.70 | % | ||||||||||||||||||
| Return on Average Common Equity | 9.78 | % | 10.24 | % | 7.60 | % | ||||||||||||||||||
|
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION |
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| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP) | $ | 11,120 | $ | 11,188 | $ | 8,030 | -0.61 | % | 38.48 | % | ||||||||||||||
| Non-Interest Income Components | ||||||||||||||||||||||||
| Less - Gain on Sale of Securities, net of tax | (428 | ) | - | (285 | ) | |||||||||||||||||||
| Non-Interest Expense Components | ||||||||||||||||||||||||
| Add - Fair Value Mark on a Terminated Hedging Relationship | - | - | 328 | |||||||||||||||||||||
| NET OPERATING EARNINGS | $ | 10,692 | $ | 11,188 | $ | 8,073 | -4.43 | % | 32.44 | % | ||||||||||||||
| Diluted Earnings Per Share, on an Operating Basis | $ | 0.50 | $ | 0.52 | $ | 0.38 | -3.85 | % | 31.58 | % | ||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
| Six Months Ended | % Change | ||||||||||||||
| June 30, | June 30, | June 2011 vs. | |||||||||||||
| 2011 | 2010 | June 2010 | |||||||||||||
| INTEREST INCOME | |||||||||||||||
| Interest on Fed Funds Sold and Short Term Investments | $ | 31 | $ | 132 | -76.52 | % | |||||||||
| Interest and Dividends on Securities | 11,058 | 12,987 | -14.85 | % | |||||||||||
| Interest on Loans | 87,154 | 88,832 | -1.89 | % | |||||||||||
| Interest on Loans Held for Sale | 189 | 216 | -12.50 | % | |||||||||||
| Total Interest Income | 98,432 | 102,167 | -3.66 | % | |||||||||||
| INTEREST EXPENSE | |||||||||||||||
| Interest on Deposits | 7,029 | 11,424 | -38.47 | % | |||||||||||
| Interest on Borrowed Funds | 7,854 | 9,366 | -16.14 | % | |||||||||||
| Total Interest Expense | 14,883 | 20,790 | -28.41 | % | |||||||||||
| Net Interest Income | 83,549 | 81,377 | 2.67 | % | |||||||||||
| Less - Provision for Loan Losses | 5,682 | 11,580 | -50.93 | % | |||||||||||
| Net Interest Income after Provision for Loan Losses | 77,867 | 69,797 | 11.56 | % | |||||||||||
| NON-INTEREST INCOME | |||||||||||||||
| Service Charges on Deposit Accounts | 8,151 | 6,388 | 27.60 | % | |||||||||||
| Interchange and ATM Fees | 3,676 | 2,348 | 56.56 | % | |||||||||||
| Investment Management | 6,819 | 5,918 | 15.22 | % | |||||||||||
| Mortgage Banking Income | 1,730 | 1,622 | 6.66 | % | |||||||||||
| BOLI Income | 1,566 | 1,452 | 7.85 | % | |||||||||||
| Net Gain on Sale of Securities | 723 | 481 | 50.31 | % | |||||||||||
| Gross Change on Write-Down of Certain Investments to Fair Value | 419 | 118 | 255.08 | % | |||||||||||
| Less: Non-Credit Related Other-Than-Temporary Impairment | (595 | ) | (380 | ) | 56.58 | % | |||||||||
| Net Loss on Write-Down of Certain Investments to Fair Value | (176 | ) | (262 | ) | -32.82 | % | |||||||||
| Other Non-Interest Income | 3,583 | 3,041 | 17.82 | % | |||||||||||
| Total Non-Interest Income | 26,072 | 20,988 | 24.22 | % | |||||||||||
| NON-INTEREST EXPENSE | |||||||||||||||
| Salaries and Employee Benefits | 40,014 | 36,869 | 8.53 | % | |||||||||||
| Occupancy and Equipment Expenses | 8,838 | 8,229 | 7.40 | % | |||||||||||
| Data Processing and Facilities Management | 2,676 | 2,791 | -4.12 | % | |||||||||||
| FDIC Assessment | 2,069 | 2,592 | -20.18 | % | |||||||||||
| Other Non-Interest Expense | 19,741 | 18,037 | 9.45 | % | |||||||||||
| Total Non-Interest Expense | 73,338 | 68,518 | 7.03 | % | |||||||||||
| INCOME BEFORE INCOME TAXES | 30,601 | 22,267 | 37.43 | % | |||||||||||
| PROVISION FOR INCOME TAXES | 8,293 | 5,010 | 65.53 | % | |||||||||||
| NET INCOME | $ | 22,308 | $ | 17,257 | 29.27 | % | |||||||||
| BASIC EARNINGS PER SHARE | $ | 1.04 | $ | 0.82 | 26.83 | % | |||||||||
| DILUTED EARNINGS PER SHARE | $ | 1.04 | $ | 0.82 | 26.83 | % | |||||||||
| BASIC AVERAGE SHARES | 21,370,457 | 20,951,264 | |||||||||||||
| DILUTED AVERAGE SHARES | 21,414,232 | 21,034,553 | |||||||||||||
|
PERFORMANCE RATIOS: |
|||||||||||||||
| Net Interest Margin (FTE) | 3.99 | % | 4.02 | % | |||||||||||
| Return on Average Assets | 0.96 | % | 0.77 | % | |||||||||||
| Return on Average Common Equity | 10.01 | % | 8.26 | % | |||||||||||
|
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION |
|
||||||||||||||
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP) | $ | 22,308 | $ | 17,257 | 29.27 | % | |||||||||
| Non-Interest Income Components | |||||||||||||||
| Less - Net Gain on Sale of Securities, net of tax | (428 | ) | (285 | ) | |||||||||||
| Non-Interest Expense Components | |||||||||||||||
| Add - Fair Value Mark on a Terminated Hedging Relationship | - | 328 | |||||||||||||
| NET OPERATING EARNINGS | $ | 21,880 | $ | 17,300 | 26.47 | % | |||||||||
| Diluted Earnings Per Share, on an Operating Basis | $ | 1.02 | $ | 0.82 | 24.39 | % | |||||||||
|
INDEPENDENT BANK CORP. FINANCIAL SUMMARY |
|||||||||||||||||||||||||||||||||||||||||
| (Unaudited - Dollars in Thousands, Except Per Share Data) | |||||||||||||||||||||||||||||||||||||||||
| RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION | |||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
| % Change | % Change | % Change | |||||||||||||||||||||||||||||||||||||||
| June 30, | March 31, | June 30, | June 2011 vs. | June 2011 vs. | June 30, | June 30, | June 2011 vs. | ||||||||||||||||||||||||||||||||||
| 2011 | 2011 | 2010 | March 2011 | June 2010 | 2011 | 2010 | June 2010 | ||||||||||||||||||||||||||||||||||
| Non-Interest Income GAAP | $ | 13,474 | $ | 12,598 | $ | 10,938 | 6.95 | % | 23.19 | % | $ | 26,072 | $ | 20,988 | 24.22 | % | |||||||||||||||||||||||||
| Less - Net Gain on Sale of Securities | (723 | ) | - | (481 | ) | n/a | 50.31 | % | (723 | ) | (481 | ) | 50.31 | % | |||||||||||||||||||||||||||
| Add - Other-Than-Temporary-Impairment on Securities | 136 | 40 | 84 | 240.00 | % | 61.90 | % | 176 | 262 | -32.82 | % | ||||||||||||||||||||||||||||||
| Non-Interest Income as Adjusted | $ | 12,887 | $ | 12,638 | $ | 10,541 | 1.97 | % | 22.26 | % | $ | 25,525 | $ | 20,769 | 22.90 | % | |||||||||||||||||||||||||
| Non-Interest Expense GAAP | $ | 36,856 | $ | 36,482 | $ | 34,929 | 1.03 | % | 5.52 | % | $ | 73,338 | $ | 68,518 | 7.03 | % | |||||||||||||||||||||||||
| Less - Fair Value Mark on a Terminated Hedging Relationship | - | - | (554 | ) | n/a | n/a | - | (554 | ) | -100.00 | % | ||||||||||||||||||||||||||||||
| Non-Interest Expense as Adjusted | $ | 36,856 | $ | 36,482 | $ | 34,375 | 1.03 | % | 7.22 | % | $ | 73,338 | $ | 67,964 | 7.91 | % | |||||||||||||||||||||||||
| 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 2011 and 2010 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 | ||||||||||||||||||||||||||||||||||||||
| At | For the Three Months Ending | For the Six Months Ending | |||||||||||||||||||||||||||||||||||||||
| June 30, |
March 31, |
June 30, | June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||||||||||||||||||||
| 2011 | 2011 | 2010 | 2011 |
|
2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||||||||||||||||||||||||||
| Nonperforming Loans | |||||||||||||||||||||||||||||||||||||||||
| Commercial & Industrial Loans | $ | 2,674 | $ | 3,011 | $ | 5,083 | $ | 749 | $ | 686 | $ | 1,816 | $ | 1,435 | $ | 2,343 | |||||||||||||||||||||||||
| Small Business Loans | 1,130 | 617 | 728 |
|
292 | 238 | 801 | 530 | 1,052 | ||||||||||||||||||||||||||||||||
| Commercial Real Estate Loans | 7,007 | 9,229 | 8,007 |
|
1,236 | 602 | 3,520 | 1,838 | 3,718 | ||||||||||||||||||||||||||||||||
| Residential Real Estate Loans | 8,546 | 7,299 | 8,012 |
|
280 | 122 | 293 | 402 | 428 | ||||||||||||||||||||||||||||||||
| Installment Loans - Home Equity | 1,977 | 2,589 | 1,218 |
|
488 | 74 | 234 | 562 | 468 | ||||||||||||||||||||||||||||||||
| Installment Loans - Other | 592 | 652 | 630 |
|
244 | 289 | 254 | 533 | 642 | ||||||||||||||||||||||||||||||||
| Total Nonperforming Loans / Total Net Charge-offs | $ | 21,926 | $ | 23,397 | $ | 23,678 | $ | 3,289 | $ | 2,011 | $ | 6,918 | $ | 5,300 | $ | 8,651 | |||||||||||||||||||||||||
| Non-Accrual Securities | 1,587 | 1,054 | 969 | ||||||||||||||||||||||||||||||||||||||
| Other Assets in Possession | 40 | 59 | 79 | ||||||||||||||||||||||||||||||||||||||
| Other Real Estate Owned | 7,410 | 9,346 | 7,357 | ||||||||||||||||||||||||||||||||||||||
| Nonperforming Assets | $ | 30,963 | $ | 33,856 | $ | 32,083 | |||||||||||||||||||||||||||||||||||
| Nonperforming Loans/Gross Loans | 0.59 | % | 0.64 | % | 0.69 | % | |||||||||||||||||||||||||||||||||||
| Allowance for Loan Losses/Nonperforming Loans | 212.70 | % | 198.50 | % | 191.28 | % | |||||||||||||||||||||||||||||||||||
| Gross Loans/Total Deposits | 98.38 | % | 101.21 | % | 93.18 | % | |||||||||||||||||||||||||||||||||||
| Allowance for Loan Losses/Total Loans | 1.25 | % | 1.28 | % | 1.32 | % | |||||||||||||||||||||||||||||||||||
| Net charge-offs to average loans (quarter annualized) | 0.36 | % | 0.23 | % | 0.81 | % | |||||||||||||||||||||||||||||||||||
| Net charge-offs to average loans (year-to-date annualized) | 0.29 | % | 0.51 | % | |||||||||||||||||||||||||||||||||||||
| For the | For the | ||||||||||||||
| Three Months Ending | Three Months Ending | ||||||||||||||
| June 30, | March 31, | ||||||||||||||
|
Nonperforming Assets Reconciliation |
2011 | 2011 | |||||||||||||
| Nonperforming Assets Beginning Balance | $ | 33,856 | $ | 31,493 | |||||||||||
| New to Nonperforming | 9,085 | 9,046 | |||||||||||||
| Loans Charged-Off | (3,587 | ) | (2,484 | ) | |||||||||||
| Loans Paid-Off | (5,130 | ) | (1,934 | ) | |||||||||||
| Loans Transferred to Other Real Estate Owned/Other Assets |
(1,172 |
) | (3,061 | ) | |||||||||||
| Loans Restored to Accrual Status | (638 | ) | (1,116 | ) | |||||||||||
| New to Other Real Estate Owned |
1,172 |
3,061 | |||||||||||||
| Sale of Other Real Estate Owned |
(3,214 |
) | (457 | ) | |||||||||||
| Other |
591 |
(692 | ) | ||||||||||||
| Nonperforming Assets Ending Balance | $ | 30,963 | $ | 33,856 | |||||||||||
| June 30, | March 31, | June 30, | |||||||||||||
|
Financial Ratios |
2011 | 2010 | 2010 | ||||||||||||
| Book Value per Common Share | $ | 21.24 | $ | 20.93 | $ | 19.91 | |||||||||
|
Tangible Common Book Value per Share (proforma to include the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP |
$ | 15.60 | $ | 15.26 | $ | 14.14 | |||||||||
| Tangible Common Capital/Tangible Assets | 6.68 | % | 6.79 | % | 6.07 | % | |||||||||
|
Tangible Common Capital/Tangible Asset (proforma to include the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP |
7.09 | % | 7.22 | % | 6.49 | % | |||||||||
|
Capital Adequacy |
|||||||||||||||
| Tier one leverage capital ratio (1) | 8.54 | % | 8.48 | % | 7.86 | % | |||||||||
| Tier one common ratio (1) | 8.87 | % | 8.83 | % | 8.24 | % | |||||||||
| (1) Estimated number for June 30, 2011 | |||||||||||||||
| INDEPENDENT BANK CORP. | |||||||||||||||||||||||||||||||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION | |||||||||||||||||||||||||||||||||||||
| CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA | Three Months Ended | ||||||||||||||||||||||||||||||||||||
| June 30, 2011 | March 31, 2011 |
June 30, 2010 |
|||||||||||||||||||||||||||||||||||
| 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 | $ | 23,049 | $ | 14 | 0.24 | % | $ | 27,652 | $ | 17 | 0.25 | % | $ | 188,998 | $ | 108 | 0.23 | % | |||||||||||||||||||
| Securities: | |||||||||||||||||||||||||||||||||||||
| Trading Assets | 8,600 | 71 | 3.31 | % | 8,124 | 63 | 3.15 | % | 7,367 | 62 | 3.38 | % | |||||||||||||||||||||||||
| Taxable Investment Securities | 556,301 | 5,286 | 3.81 | % | 568,933 | 5,430 | 3.87 | % | 557,554 | 6,067 | 4.36 | % | |||||||||||||||||||||||||
| Non-taxable Investment Securities (1) | 8,610 | 161 | 7.50 | % | 10,175 | 191 | 7.61 | % | 17,718 | 316 | 7.15 | % | |||||||||||||||||||||||||
| Total Securities: | 573,511 | 5,518 | 3.86 | % | 587,232 | 5,684 | 3.93 | % | 582,639 | 6,445 | 4.44 | % | |||||||||||||||||||||||||
| Loans Held for Sale | 8,659 | 70 | 3.24 | % | 14,190 | 119 | 3.40 | % | 7,656 | 110 | 5.76 | % | |||||||||||||||||||||||||
| Loans | |||||||||||||||||||||||||||||||||||||
| Commercial and Industrial | 535,764 | 5,710 | 4.27 | % | 500,202 | 5,401 | 4.38 | % | 401,430 | 4,726 | 4.72 | % | |||||||||||||||||||||||||
| Commercial Real Estate | 1,787,364 | 23,618 | 5.30 | % | 1,749,292 | 23,197 | 5.38 | % | 1,645,452 | 23,839 | 5.81 | % | |||||||||||||||||||||||||
| Commercial Construction | 128,747 | 1,482 | 4.62 | % | 123,501 | 1,410 | 4.63 | % | 166,040 | 2,098 | 5.07 | % | |||||||||||||||||||||||||
| Small Business | 79,834 | 1,151 | 5.78 | % | 80,286 | 1,179 | 5.96 | % | 81,319 | 1,202 | 5.93 | % | |||||||||||||||||||||||||
| Total Commercial | 2,531,709 | 31,961 | 5.06 | % | 2,453,281 | 31,187 | 5.16 | % | 2,294,241 | 31,865 | 5.57 | % | |||||||||||||||||||||||||
| Residential Real Estate | 457,651 | 5,167 | 4.53 | % | 468,146 | 5,399 | 4.68 | % | 537,475 | 6,485 | 4.84 | % | |||||||||||||||||||||||||
| Residential Construction | 4,535 | 55 | 4.86 | % | 3,712 | 44 | 4.81 | % | 7,507 | 95 | 5.08 | % | |||||||||||||||||||||||||
| Consumer - Home Equity | 627,832 | 5,920 | 3.78 | % | 601,624 | 5,622 | 3.79 | % | 490,197 | 4,704 | 3.85 | % | |||||||||||||||||||||||||
| Total Consumer Real Estate | 1,090,018 | 11,142 | 4.10 | % | 1,073,482 | 11,065 | 4.18 | % | 1,035,179 | 11,284 | 4.37 | % | |||||||||||||||||||||||||
| Total Other Consumer | 56,292 | 1,098 | 7.82 | % | 64,066 | 1,229 | 7.78 | % | 92,681 | 1,784 | 7.72 | % | |||||||||||||||||||||||||
| Total Loans | 3,678,019 | 44,201 | 4.82 | % | 3,590,829 | 43,481 | 4.91 | % | 3,422,101 | 44,933 | 5.27 | % | |||||||||||||||||||||||||
| Total Interest-Earning Assets | $ | 4,283,238 | $ | 49,803 | 4.66 | % | $ | 4,219,903 | $ | 49,301 | 4.74 | % | $ | 4,201,394 | $ | 51,596 | 4.93 | % | |||||||||||||||||||
| Cash and Due from Banks | 56,122 | 52,023 | 71,300 | ||||||||||||||||||||||||||||||||||
| Federal Home Loan Bank Stock | 35,854 | 35,854 | 35,854 | ||||||||||||||||||||||||||||||||||
| Other Assets | 322,033 | 320,658 | 305,041 | ||||||||||||||||||||||||||||||||||
| Total Assets | $ | 4,697,247 | $ | 4,628,438 | $ | 4,613,589 | |||||||||||||||||||||||||||||||
| Interest-bearing Liabilities: | |||||||||||||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||||||||||
| Savings and Interest Checking Accounts | $ | 1,365,892 | $ | 850 | 0.25 | % | $ | 1,289,201 | $ | 760 | 0.24 | % | $ | 1,182,343 | $ | 1,297 | 0.44 | % | |||||||||||||||||||
| Money Market | 723,345 | 815 | 0.45 | % | 723,946 | 785 | 0.44 | % | 760,240 | 1,320 | 0.70 | % | |||||||||||||||||||||||||
| Time Deposits | 669,941 | 1,879 | 1.12 | % | 672,893 | 1,940 | 1.17 | % | 842,539 | 2,868 | 1.37 | % | |||||||||||||||||||||||||
| Total interest-bearing deposits: | $ | 2,759,178 | $ | 3,544 | 0.52 | % | $ | 2,686,040 | $ | 3,485 | 0.53 | % | $ | 2,785,122 | $ | 5,485 | 0.79 | % | |||||||||||||||||||
| Borrowings: | |||||||||||||||||||||||||||||||||||||
| Federal Home Loan Bank Borrowings | $ | 276,984 | $ | 1,743 | 2.52 | % | $ | 335,457 | $ | 1,910 | 2.31 | % | $ | 324,168 | $ | 2,392 | 2.96 | % | |||||||||||||||||||
| Federal Funds Purchased and Assets Sold | |||||||||||||||||||||||||||||||||||||
| Under Repurchase Agreement | 181,631 | 657 | 1.45 | % | 178,185 | 651 | 1.48 | % | 182,810 | 821 | 1.80 | % | |||||||||||||||||||||||||
| Junior Subordinated Debentures | 61,857 | 913 | 5.92 | % | 61,857 | 904 | 5.93 | % | 61,857 | 913 | 5.92 | % | |||||||||||||||||||||||||
| Subordinated Debentures | 30,000 | 541 | 7.23 | % | 30,000 | 535 | 7.23 | % | 30,000 | 541 | 7.23 | % | |||||||||||||||||||||||||
| Other Borrowings | 2,541 | - | 0.00 | % | 2,761 | - | 0.00 | % | 3,148 | - | 0.00 | % | |||||||||||||||||||||||||
| Total Borrowings: | 553,013 | 3,854 | 2.80 | % | 608,260 | 4,000 | 2.67 | % | 601,983 | 4,667 | 3.11 | % | |||||||||||||||||||||||||
| Total Interest-Bearing Liabilities | $ | 3,312,191 | $ | 7,398 | 0.90 | % | $ | 3,294,300 | $ | 7,485 | 0.92 | % | $ | 3,387,105 | $ | 10,152 | 1.20 | % | |||||||||||||||||||
| Demand Deposits | 870,585 | 831,032 | 752,622 | ||||||||||||||||||||||||||||||||||
| Other Liabilities | 58,621 | 59,791 | 49,870 | ||||||||||||||||||||||||||||||||||
| Total Liabilities | $ | 4,241,397 | $ | 4,185,123 | $ | 4,189,597 | |||||||||||||||||||||||||||||||
| Stockholders' Equity | 455,850 | 443,315 | 423,992 | ||||||||||||||||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 4,697,247 | $ | 4,628,438 | $ | 4,613,589 | |||||||||||||||||||||||||||||||
| Net Interest Income | $ | 42,405 | $ | 41,816 | $ | 41,444 | |||||||||||||||||||||||||||||||
| Interest Rate Spread (2) | 3.76 | % | 3.82 | % | 3.72 | % | |||||||||||||||||||||||||||||||
| Net Interest Margin (3) | 3.97 | % | 4.02 | % | 3.96 | % | |||||||||||||||||||||||||||||||
| Supplemental Information: | |||||||||||||||||||||||||||||||||||||
| Total Deposits, including Demand Deposits | $ | 3,629,763 | $ | 3,544 | $ | 3,517,072 | $ | 3,485 | $ | 3,537,744 | $ | 5,485 | |||||||||||||||||||||||||
| Cost of Total Deposits | 0.39 | % | 0.40 | % | 0.62 | % | |||||||||||||||||||||||||||||||
| Total Funding Liabilities, including Demand Deposits | $ | 4,182,776 | $ | 7,398 | $ | 4,125,332 | $ | 7,485 | $ | 4,139,727 | $ | 10,152 | |||||||||||||||||||||||||
| Cost of Total Funding Liabilities | 0.71 | % | 0.74 | % | 0.98 | % | |||||||||||||||||||||||||||||||
|
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $329, 343, and $277 for the three months ended June 30, 2011, March 31, 2011, and June 30, 2010, 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, 2011 | June 30, 2010 | ||||||||||||||||||||||||
| 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 | $ | 25,338 | $ | 31 | 0.25 | % | $ | 106,529 | $ | 132 | 0.25 | % | |||||||||||||
| Securities: | |||||||||||||||||||||||||
| Trading Assets | 8,363 | 134 | 3.23 | % | 7,085 | 122 | 3.47 | % | |||||||||||||||||
| Taxable Investment Securities | 562,582 | 10,717 | 3.84 | % | 563,021 | 12,476 | 4.47 | % | |||||||||||||||||
| Non-taxable Investment Securities (1) | 9,388 | 351 | 7.53 | % | 18,411 | 658 | 7.21 | % | |||||||||||||||||
| Total Securities: | 580,333 | 11,202 | 3.89 | % | 588,517 | 13,256 | 4.54 | % | |||||||||||||||||
| Loans Held for Sale | 11,409 | 189 | 3.34 | % | 7,392 | 216 | 5.89 | % | |||||||||||||||||
| Loans | |||||||||||||||||||||||||
| Commercial and Industrial | 518,081 | 11,111 | 4.32 | % | 389,708 | 8,974 | 4.64 | % | |||||||||||||||||
| Commercial Real Estate | 1,768,433 | 46,815 | 5.34 | % | 1,638,238 | 47,097 | 5.80 | % | |||||||||||||||||
| Commercial Construction | 126,139 | 2,892 | 4.62 | % | 168,773 | 4,174 | 4.99 | % | |||||||||||||||||
| Small Business | 80,058 | 2,329 | 5.87 | % | 81,894 | 2,419 | 5.96 | % | |||||||||||||||||
| Total Commercial | 2,492,711 | 63,147 | 5.11 | % | 2,278,613 | 62,664 | 5.55 | % | |||||||||||||||||
| Residential Real Estate | 462,870 | 10,567 | 4.60 | % | 542,974 | 13,250 | 4.92 | % | |||||||||||||||||
| Residential Construction | 4,126 | 98 | 4.79 | % | 8,300 | 213 | 5.18 | % | |||||||||||||||||
| Consumer - Home Equity | 614,800 | 11,542 | 3.79 | % | 484,293 | 9,226 | 3.84 | % | |||||||||||||||||
| Total Consumer Real Estate | 1,081,796 | 22,207 | 4.14 | % | 1,035,567 | 22,689 | 4.42 | % | |||||||||||||||||
| Total Other Consumer | 60,157 | 2,328 | 7.80 | % | 98,875 | 3,796 | 7.74 | % | |||||||||||||||||
| Total Loans | 3,634,664 | 87,682 | 4.86 | % | 3,413,055 | 89,149 | 5.27 | % | |||||||||||||||||
| Total Interest-Earning Assets | $ | 4,251,744 | $ | 99,104 | 4.70 | % | $ | 4,115,493 | $ | 102,753 | 5.03 | % | |||||||||||||
| Cash and Due from Banks | 54,084 | 68,867 | |||||||||||||||||||||||
| Federal Home Loan Bank Stock | 35,854 | 35,854 | |||||||||||||||||||||||
| Other Assets | 321,350 | 304,622 | |||||||||||||||||||||||
| Total Assets | $ | 4,663,032 | $ | 4,524,836 | |||||||||||||||||||||
| Interest-bearing Liabilities: | |||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||
| Savings and Interest Checking Accounts | $ | 1,327,759 | $ | 1,610 | 0.24 | % | $ | 1,119,598 | $ | 2,481 | 0.45 | % | |||||||||||||
| Money Market | 723,644 |
|
1,600 | 0.45 | % | 731,475 |
|
2,641 |
0.73 | % | |||||||||||||||
| Time Deposits | 671,409 |
|
3,819 | 1.15 | % | 865,864 |
|
6,302 | 1.47 | % | |||||||||||||||
| Total interest-bearing deposits: | $ | 2,722,812 | $ | 7,029 | 0.52 | % | $ | 2,716,937 | $ | 11,424 | 0.85 | % | |||||||||||||
| Borrowings: | |||||||||||||||||||||||||
| Federal Home Loan Bank Borrowings | $ | 306,059 | $ | 3,653 | 2.41 | % | $ | 332,190 | $ | 4,823 | 2.93 | % | |||||||||||||
| Federal Funds Purchased and Assets Sold | |||||||||||||||||||||||||
| Under Repurchase Agreement | 179,918 | 1,308 | 1.47 | % | 183,712 | 1,651 | 1.81 | % | |||||||||||||||||
| Junior Subordinated Debentures | 61,857 | 1,816 | 5.92 | % | 61,857 | 1,815 | 5.92 | % | |||||||||||||||||
| Subordinated Debentures | 30,000 | 1,077 | 7.24 | % | 30,000 | 1,077 | 7.24 | % | |||||||||||||||||
| Other Borrowings | 2,650 | - | 0.00 | % | 2,756 | - | 0.00 | % | |||||||||||||||||
| Total Borrowings: | 580,484 | 7,854 | 2.73 | % | 610,515 | 9,366 | 3.09 | % | |||||||||||||||||
| Total Interest-Bearing Liabilities | $ | 3,303,296 | $ | 14,883 | 0.91 | % | $ | 3,327,452 | $ | 20,790 | 1.26 | % | |||||||||||||
| Demand Deposits | 850,918 | 727,865 | |||||||||||||||||||||||
| Other Liabilities | 59,201 | 48,453 | |||||||||||||||||||||||
| Total Liabilities | $ | 4,213,415 | $ | 4,103,770 | |||||||||||||||||||||
| Stockholders' Equity | 449,617 | 421,066 | |||||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 4,663,032 | $ | 4,524,836 | |||||||||||||||||||||
| Net Interest Income | $ | 84,221 | $ | 81,963 | |||||||||||||||||||||
| Interest Rate Spread (2) | 3.79 | % | 3.77 | % | |||||||||||||||||||||
| Net Interest Margin (3) | 3.99 | % | 4.02 | % | |||||||||||||||||||||
| Supplemental Information: | |||||||||||||||||||||||||
| Total Deposits, including Demand Deposits | $ | 3,573,730 | $ | 7,029 | $ | 3,444,802 | $ | 11,424 | |||||||||||||||||
| Cost of Total Deposits | 0.40 | % | 0.67 | % | |||||||||||||||||||||
| Total Funding Liabilities, including Demand Deposits | $ | 4,154,214 | $ | 14,883 | $ | 4,055,317 | $ | 20,790 | |||||||||||||||||
| Cost of Total Funding Liabilities | 0.72 | % | 1.03 | % | |||||||||||||||||||||
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(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $672 and $586 for the six months ended June 30, 2011, and June 30, 2010, respectively. |
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(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. |
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(3) Net interest margin represents annualized net interest income as a percentage of average interest-earning assets. |
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| 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