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REGULATORY CAPITAL REQUIREMENTS
12 Months Ended
Dec. 31, 2014
Banking and Thrift [Abstract]  
REGULATORY CAPITAL REQUIREMENTS
REGULATORY MATTERS
Regulatory Capital Requirements
The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of Total and Tier 1 Capital (as defined for regulatory purposes) to average assets (as defined for regulatory purposes) and Tier 1 Capital to risk weighted assets (as defined for regulatory purposes). Management believes, as of December 31, 2014 and 2013 that the Company and the Bank met all capital adequacy requirements to which they are subject.
At December 31, 2014 the most recent notification from the Federal Deposit Insurance Corporation indicated that the Bank's capital levels met or exceeded the minimum levels to be considered "well capitalized" for bank regulatory purposes. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following tables. There are no conditions or events since the notification that management believes have changed the Bank’s category. The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2014 and 2013 are also presented in the table that follows:
 
Actual
 
For Capital
Adequacy Purposes
 
To Be Well Capitalized
Under Prompt
Corrective Action
Provisions
 
Amount
 
Ratio
 
Amount
 
 
 
Ratio
 
Amount
 
 
 
Ratio
 
December 31, 2014
 
(Dollars in thousands)
Independent Bank Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total capital (to risk weighted assets)
$
666,898

 
13.15
%
 
$
405,650

 
 
8.0
%
 
N/A

 
 
 
N/A

Tier 1 capital (to risk weighted assets)
551,836

 
10.88

 
202,825

 
 
4.0

 
N/A

 
 
 
N/A

Tier 1 capital (to average assets)
551,836

 
8.84

 
249,825

 
 
4.0

 
N/A

 
 
 
N/A

Rockland Trust Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total capital (to risk weighted assets)
$
607,100

 
11.98
%
 
$
405,465

 
 
8.0
%
 
$
506,831

 
 
10.0
%
Tier 1 capital (to risk weighted assets)
527,038

 
10.40

 
202,732

 
 
4.0

 
304,099

 
 
6.0

Tier 1 capital (to average assets)
527,038

 
8.44

 
249,788

 
 
4.0

 
312,235

 
 
5.0

 
December 31, 2013
 
(Dollars in thousands)
Independent Bank Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total capital (to risk weighted assets)
$
589,811

 
12.58
%
 
$
375,117

 
 
8.0
%
 
N/A

 
 
 
N/A

Tier 1 capital (to risk weighted assets)
505,646

 
10.78

 
187,558

 
 
4.0

 
N/A

 
 
 
N/A

Tier 1 capital (to average assets)
505,646

 
8.64

 
234,153

 
 
4.0

 
N/A

 
 
 
N/A

Rockland Trust Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total capital (to risk weighted assets)
$
582,599

 
12.42
%
 
$
375,205

 
 
8.0
%
 
$
469,006

 
 
10.0
%
Tier 1 capital (to risk weighted assets)
498,434

 
10.63

 
187,603

 
 
4.0

 
281,404

 
 
6.0

Tier 1 capital (to average assets)
498,434

 
8.51

 
234,154

 
 
4.0

 
292,692

 
 
5.0


Dividend Restrictions
In the ordinary course of business, the Company is dependent upon dividends from the Bank to provide funds for the payment of dividends to shareholders and to provide for other cash requirements. Banking regulations may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels. Approval is also required if dividends declared exceed the net profits for that year combined with the retained net profits for the preceding two years. Under the foregoing dividend restrictions and while maintaining its "well capitalized" status, dividends paid by the Bank to the Company for the year ended December 31, 2014 and 2013 totaled $40.1 million and $30.6 million, respectively.
Trust Preferred Securities
In accordance with the applicable accounting standard related to variable interest entities, the common stock of trusts which have issued trust preferred securities have not been included in the consolidated financial statements. At December 31, 2014 and 2013, $71.0 million in trust preferred securities have been included in the Tier 1 capital of the Company for regulatory reporting purposes pursuant to the Federal Reserve's capital adequacy guidelines.