EX-99.1 3 a2084270zex-99_1.txt EXHIBIT 99.1 Exhibit 99.1 INDEPENDENT BANK CORP. Parent of Rockland Trust Company SHAREHOLDER RELATIONS NEWS RELEASE -------------------------------------------------------------------------------- 288 Union Street, Rockland, MA 02370 Contact: Douglas H. Philipsen Chairman of the Board President and Chief Executive Officer (781) 982-6613 Denis K. Sheahan Chief Financial Officer (781) 982-6341 FOR IMMEDIATE RELEASE INDEPENDENT BANK CORP. ANNOUNCES A 30% INCREASE IN SECOND QUARTER 2002 NET OPERATING EARNINGS; ACTUAL NET INCOME DECLINES DUE TO PREVIOUSLY ANNOUNCED NON-RECURRING IMPAIRMENT CHARGE Rockland, Massachusetts (July 11, 2002). Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced that net operating earnings for the second quarter of 2002 were $6.3 million, a 29.5% increase from the operating earnings recorded in the same period last year. Diluted earnings per share on an operating basis increased by 26.5% to $0.43 for the quarter ended June 30, 2002 from the quarter ended June 30, 2001. For the six months ended June 30, 2002, operating earnings were $12.7 million, a 33.8% increase from the same six month period last year. Diluted earnings per share on an operating basis were $0.87, an increase of 31.8% for the six months ended June 30, 2002, compared to the same period last year. Net income for the quarter ended June 30, 2002 was $3.8 million, a decrease of $1.1 million (-23.1%) from the second quarter of 2001, while net income for the six months ended June 30, 2002 was $10.2 million, a decrease of $0.1 million (-1.1%) from the six months ended June 30, 2001. The decrease for the quarter and six months ended June 30, 2002 is attributable to the previously reported $4.4 million securities' impairment charge taken on an investment in corporate bonds issued by WorldCom Inc. (the "WorldCom Bonds"), which has an after tax impact of $2.5 million (or 17 cents per diluted share). Diluted earnings per share for the second quarter of 2002 were $0.21, a 38.2% decrease from the second quarter a year earlier and diluted earnings for the six months ended June 30, 2002 were $0.59, a 18.1% decrease from the same six month period last year. Stockholders' equity as of June 30, 2002 totaled $144.5 million. The Tier 1 leverage capital ratio at June 30, 2002 was 6.58%. In addition, and as previously disclosed, during the second quarter, the Company, through a subsidiary Trust, redeemed $28.8 million of 9.28% Trust Preferred Securities which were issued in May of 1997. This redemption was another step in a refinancing strategy designed to lower the Company's cost of capital that was initiated during the first quarter, when the Company refinanced its $25.0 million of 11% Trust Preferred Securities issued in January 2000. In accordance with GAAP, the unamortized portion of the issuance costs of each redeemed series of Trust Preferred Securities, $767,000 and $738,000 during the second and first quarters, respectively, in each case net of tax, were written-off during each quarter as a charge to equity and included within the calculation of earnings per share available to common shareholders. The Company reported the following financial results for the six months and three months ended June 30, 2002 and June 30, 2001 on both an operating basis and on an actual basis. These results are as follows:
NET OPERATING EARNINGS* YEAR TO DATE JUNE 30, QUARTER ENDED JUNE 30, ---------------------------------------- -------------------------------------- 2002 2001 % CHANGE 2002 2001 % CHANGE ---- ---- -------- ---- ---- -------- Net Operating Earnings $12,729 $9,515 33.8% $6,328 $4,885 29.5% Diluted EPS $0.87 $0.66 31.8% $0.43 $0.34 26.5% ROAA 1.15% 0.96% 1.13% 0.97% ROAE 18.48% 15.86% 18.13% 15.85% *EXCLUDES THE FOLLOWING ITEMS (NET OF TAX) ------------------------------------------ Securities' Gains $0 $781 $0 $34 Impairment Charge - WorldCom $2,545 $0 $2,545 $0 Trust preferred issuance costs write-off $1,505 $0 $767 $0
NET INCOME, AS REPORTED YEAR TO DATE JUNE 30, QUARTER ENDED JUNE 30, ---------------------------------------- -------------------------------------- 2002 2001 % CHANGE 2002 2001 % CHANGE ---- ---- -------- ---- ---- -------- Net Income $10,184 $10,296 -1.1% $3,783 $4,919 -23.1% Trust Preferred Issuance costs write-off $1,505 $0 $767 $0 Net Income Available to Common Shareholders $8,679 $10,296 -15.7% $3,016 $4,919 -38.7% Diluted EPS $0.59 $0.72 -18.1% $0.21 $0.34 -38.2% ROAA 0.92% 1.04% 0.67% 0.98% ROAE 14.78% 17.16% 10.84% 15.96%
Comparing second quarter 2002 to second quarter 2001, net interest income increased $3.5 million (+16.2%) while the net interest margin increased to 4.90% for both the three month and the six month periods ended June 30, 2002. The net interest margin for the three month and the six month periods ended June 30, 2001 were 4.75% and 4.68%, respectively. Year to date net interest income increased $7.5 million (+17.8%), compared to the six months ended June 30, 2001. The increase in the net interest margin for both the quarter and year to date is due to a lower cost of funds and a balance sheet that was well positioned to benefit from the Federal Reserve's easing of interest rates over the past 18 months. Non-interest income, excluding securities' gains in 2001, improved by $0.4 million (+7.0%), for the quarter ended June 30, 2002, as compared to the same period last year. Deposit service charge revenue increased by $0.3 million (+11.7%), reflecting growth in core deposits and lower earnings credit rates. Investment Management revenue increased $0.1 million (+7.5%), for the quarter ended June 30, 2002, as compared to the same period last year. Non-interest expense, excluding the securities' impairment charge, increased by $1.0 million (+6.0%) and $3.0 million (+8.9%) for the three and six month periods ended June 30, 2002, respectively as compared to the same periods in the prior year. For the three and six month periods ended June 30, 2002, salaries and employee benefits increased by $0.8 million (+9.5%) and $1.6 million (+9.2%), respectively, due to additions to staff needed to support continued growth, employees' merit increases, an increase in performance based incentive compensation, and commissions related to mortgage originations. Occupancy and equipment-related expense decreased by $0.3 million (-13.5%) and $0.5 million (-10.1%), for the three and six months period ended June 30, 2002, respectively, largely attributable to branch relocation costs in the second quarter of 2001. Other non-interest expenses increased by $0.5 million (+11.3%) and $1.8 million (+21.7%) for the three and six month periods ended June 30, 2002, respectively, mainly due to increased costs associated with information technology consulting, executive recruitment costs and an unrealized loss recorded on a CRA equity investment. Total assets increased by $61.0 million (+2.8%) from year-end 2001 to a total of $2.3 billion at June 30, 2002. Total loans increased by $45.0 million (+3.5%) during the six months ended June 30, 2002 as compared to total loans at December 31, 2001. The increases were mainly in commercial real estate, residential and real estate construction loans which increased $11.6 million, $10.2 million and $11.4 million, respectively, and consumer loans which increased $15.7 million (+3.9%) which is primarily attributable to an increase in home equity loans. Total deposits increased by $92.1 million (+5.8%) since year-end 2001. Core deposits increased by $139.1 million (+13.4%), particularly in the relationship deposit products, which enabled the Company to manage down the balance of the more expensive time deposits by $47.0 million (-8.7%). Non-performing assets totaled $3.9 million at June 30, 2002 (0.17% of total assets), as compared to the $3.0 million (0.14% of total assets) reported at December 31, 2001. The increase in non-performing assets is due to the inclusion of the WorldCom Bonds, which had a fair value of $900,000 as of June 30, 2002. On June 26, 2002, upon impairment, the Bonds were reclassified from held to maturity to available for sale and were recorded at their fair value of $750,000. The Bonds are marked to fair value through equity and any changes to fair value are reflected in the value of the investment included in non-performing assets. The Company's total reserves for loan losses (including the credit quality discount of $0.7 million at June 30, 2002 and $0.8 million at December 31, 2001), as a percentage of the loan portfolio was 1.54% at June 30, 2002 and 1.46% at December 31, 2001. The percentage of total reserves for loan losses (including the credit quality discount) to non-performing loans was 696.02% at June 30, 2002 compared to 630.18% at December 31, 2001. The provision for loan losses was $1.2 million for the quarter ended June 30, 2002, compared to $0.9 million for the same period last year and $2.4 million for the six months ended June 30, 2002, compared to $1.5 million for the same period in 2001. These increases are commensurate with loan growth and prevailing economic conditions. On December 11, 2001, the Company issued, through a subsidiary Trust, 1,000,000 shares of 8.625% Trust Preferred Securities, $25 face value, due December 31, 2031 but callable at the option of the Company on or after December 31, 2006. On January 31, 2002, the Company used the net proceeds from the transaction to call the 1,000,000 shares of 11% Trust Preferred Securities issued by the Company on January 31, 2000. On April 12, 2002, the Company issued an additional 1,000,000 shares of 8.375% Trust Preferred Securities, $25 face value, due April 30, 2032, but callable at the option of the Company on or after April 30, 2007. The Company used the net proceeds from the transaction to call on May 20, 2002, the 1,150,000 shares of 9.28% Trust Preferred Securities issued by the Company in May of 1997. The Company expects the refinancing of the 11% and 9.28% Trust Preferred Security issuances to reduce the Company's annual pre-tax minority interest expense by approximately $1.2 million. Management is aware that the Massachusetts Department of Revenue ("DOR") has issued Notices of Intent to Assess additional state excise taxes to several financial institutions in the Commonwealth that have established real estate investment trusts ("REIT") in their corporate structure. The institutions which have received these notices have indicated that they intend to contest the assessment. Rockland Trust formed a REIT subsidiary in 1997. The Company has not yet received a notice from the DOR, and there can be no assurance that the Company will receive such a notice. Notices that have been issued to other financial institutions have assessed additional excise taxes for the tax years ending December 31, 1999 and December 31, 2000. Should the DOR issue a similar notice to the Company for its 1999 and 2000 tax years, management estimates the impact would be approximately $2.4 million (prior to federal deduction), excluding interest and penalties. No provision has been made in the Company's financial statements with respect to this issue. If such a notice were issued to it, the Company would also intend to vigorously appeal any such assessment. In April of 2002, Rockland Trust opened its 52nd branch located at 100 Belmont Street in downtown Brockton that accommodates a bank branch, a commercial lending center, a residential mortgage origination office, and an investment management office. Douglas H. Philipsen, Chief Executive Officer, stated that he is very pleased with the Company's operating financial performance in the second quarter of 2002. "The net interest margin continued to be strong in the second quarter of 2002 and asset quality remains excellent." Douglas H. Philipsen and Denis K. Sheahan, Chief Financial Officer of Independent Bank Corp., will host a conference call to discuss second quarter earnings at 10:00 a.m. Eastern Daylight Time on Monday, July 15, 2002. Internet access to the call is available by going to the Company's website at HTTP://WWW.ROCKLANDTRUST.COM or telephonic access by dial-in at 888-753-5327 (password - INDB). A replay of the call will be available two hours after the completion of the conference call from July 15, 2002 to July 17, 2002 at midnight by calling 1-800-642-1687 (Conference ID 4784270). Independent Bank Corp.'s sole bank subsidiary, Rockland Trust Company, currently has $2.3 billion in assets, 52 retail branches, eight commercial lending centers and three Investment Management offices located in the Plymouth, Barnstable, Norfolk and Bristol counties of Southeastern Massachusetts. To find out more about Rockland Trust Company and its products visit our web site at 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. INDEPENDENT BANK CORP. FINANCIAL SUMMARY ---------------------------------------- (Dollars in Thousands - Unaudited) CONSOLIDATED BALANCE SHEETS
---------------------------------------- JUNE 30, DECEMBER 31, 2002 2001 ------------------- ------------------- ASSETS Cash and Due From Banks $ 70,529 $ 66,967 Fed Funds Sold & Short Term Investments 11,500 6,000 Trading Assets 1,106 1,150 Investments Available for Sale 549,259 569,288 Investments Held to Maturity 159,064 132,754 Federal Home Loan Bank Stock 17,036 17,036 Loans Commercial & Industrial 147,383 151,287 Commercial Real Estate 474,609 463,052 Residential Real Estate 239,351 229,123 Real Estate Construction 58,594 47,208 Consumer - Installment 329,902 324,271 Consumer - Other 94,093 83,997 ------------------- ------------------- Total Loans 1,343,932 1,298,938 Less - Reserve for Loan Losses (19,953) (18,190) ------------------- ------------------- Net Loans 1,323,979 1,280,748 ------------------- ------------------- Bank Premises and Equipment 31,019 29,919 Intangible Assets 34,906 36,236 Other Assets 61,742 59,090 ------------------- ------------------- Total Assets $ 2,260,140 $ 2,199,188 =================== =================== LIABILITIES AND STOCKHOLDERS' EQUITY Deposits Demand Deposits $ 406,776 $ 378,663 Savings and Interest Checking Accounts 432,050 413,198 Money Market and Super Interest Checking Accounts 341,487 249,328 Time Certificates of Deposit 493,453 540,429 ------------------- ------------------- Total Deposits 1,673,766 1,581,618 Fed Funds Purchased and Assets Sold Under Repurchase Agreements 67,092 66,176 Federal Home Loan Bank Borrowings 295,415 313,934 Treasury Tax and Loan Notes 6,235 6,967 ------------------- ------------------- Total Borrowings 368,742 387,077 ------------------- ------------------- Total Deposits and Borrowings 2,042,508 1,968,695 Other Liabilities 25,328 21,903 Company-Obligated Mandatory Redeemable Securities of Subsidiary Holding Solely Parent Company Debenture of the Corporation 47,798 75,329 Stockholders' Equity 144,506 133,261 ------------------- ------------------- Total Liabilities and Stockholders' Equity $ 2,260,140 $ 2,199,188 =================== =================== CREDIT QUALITY RATIOS: Non-performing Loans 2,968 3,015 Non-performing Assets 3,868 3,015 Non-performing Loans/Gross Loans 0.22% 0.23% Reserve for Loan Losses/Non-performing Loans 672.27% 603.32% Loans/Total Deposits 80.29% 82.13% Reserve/Total Loans 1.48% 1.40% Total Reserves for Loan Losses (including Credit Quality Discount)/Non-performing Loans 696.02% 630.18% Total Reserve (including Credit Quality Discount)/Total Loans 1.54% 1.46% FINANCIAL RATIOS: Tier 1 Leverage Capital Ratio 6.58% 6.31% Book Value per Share $10.01 $9.30 Tangible Equity/Tangible Assets 4.93% 4.49% Tangible Book Value per Share $7.59 $6.77 Tangible Book Value per Share (proforma to include the deductibility of goodwill) $8.43 $7.66 ------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BANK CORP. FINANCIAL SUMMARY ---------------------------------------- (Dollars in Thousands - Unaudited)
--------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF INCOME SIX MONTHS ENDED QUARTER ENDED JUNE 30, JUNE 30, 2002 2001 2002 2001 ----------------------------------------------------------------------------------------------------------------------------------- INTEREST INCOME Interest on Fed Funds Sold & Short Term Investments $ 141 $ 440 $ 96 $ 290 Interest and Dividends on Securities 21,280 20,534 10,794 10,201 Interest on Loans 49,399 50,403 24,878 25,178 --------------- -------------- --------------- ------------- Total Interest Income 70,820 71,377 35,768 35,669 --------------- -------------- --------------- ------------- INTEREST EXPENSE Interest on Deposits 13,553 21,450 6,688 10,132 Interest on Borrowed Funds 7,944 8,055 4,010 3,963 --------------- -------------- --------------- ------------- Total Interest Expense 21,497 29,505 10,698 14,095 --------------- -------------- --------------- ------------- Net Interest Income 49,323 41,872 25,070 21,574 Less - Provision for Loan Losses 2,400 1,514 1,200 864 --------------- -------------- --------------- ------------- Net Interest Income after Provision for Loan Losses 46,923 40,358 23,870 20,710 --------------- -------------- --------------- ------------- NON-INTEREST INCOME Service Charges on Deposit Accounts 4,806 4,165 2,471 2,213 Investment Management Services Income 2,946 2,357 1,371 1,275 Mortgage Banking Income 1,640 1,195 680 720 BOLI Income 908 887 450 444 Net Gain on Sale of Securities 0 1,202 0 53 Other Non-Interest Income 1,260 1,052 609 563 --------------- -------------- --------------- ------------- Total Non-Interest Income 11,560 10,858 5,581 5,268 --------------- -------------- --------------- ------------- NON-INTEREST EXPENSE Salaries and Employee Benefits 18,682 17,102 9,651 8,813 Occupancy and Equipment Expenses 4,319 4,806 2,071 2,393 Data Processing & Facilities Management 2,174 1,976 1,093 1,031 Intangible Assets Amortization 1,331 1,416 666 708 Impairment Charge 4,372 0 4,372 0 Other Non Interest Expense 9,911 8,143 4,984 4,480 --------------- -------------- --------------- ------------- Total Non-Interest Expense 40,789 33,443 22,837 17,425 --------------- -------------- --------------- ------------- Minority Interest 2,868 2,766 1,399 1,383 --------------- -------------- --------------- ------------- INCOME BEFORE INCOME TAXES 14,826 15,007 5,215 7,170 PROVISION FOR INCOME TAXES 4,642 4,711 1,432 2,251 --------------- -------------- --------------- ------------- NET INCOME $ 10,184 $ 10,296 $ 3,783 $ 4,919 =============== ============== =============== ============= Less: Trust Preferred Issuance Costs Write-off (net of tax) $ 1,505 $ 0 $ 767 $ 0 --------------- -------------- --------------- ------------- Net Income Available to Common Shareholders $ 8,679 $ 10,296 $ 3,016 $ 4,919 =============== ============== =============== ============= BASIC EARNINGS PER SHARE $ 0.60 $ 0.72 $ 0.21 $ 0.34 --------------- -------------- --------------- ------------- DILUTED EARNINGS PER SHARE $ 0.59 $ 0.72 $ 0.21 $ 0.34 =============== ============== =============== ============= BASIC AVERAGE SHARES 14,383,385 14,266,634 14,414,068 14,272,386 DILUTED AVERAGE SHARES 14,618,891 14,396,474 14,638,737 14,420,941 PERFORMANCE RATIOS: Net Interest Margin (FTE) 4.90% 4.68% 4.90% 4.75% Return on Average Assets 0.92% 1.04% 0.67% 0.98% Return on Average Equity 14.78% 17.16% 10.84% 15.96% EXCLUDING SECURITIES GAINS, IMPAIRMENT CHARGE AND TRUST PREFERRED ISSUANCE COSTS WRITE-OFF, (NET OF TAX) Net Operating Earnings $12,729 $9,515 $6,328 $4,885 Diluted Operating Earnings Per Share $0.87 $0.66 $0.43 $0.34 Return on Average Assets 1.15% 0.96% 1.13% 0.97% Return on Average Equity 18.48% 15.86% 18.13% 15.85% OPERATING CASH EARNINGS (1) Net Operating Cash Earnings $13,594 $10,435 $6,760 $5,345 Diluted Operating Cash Earnings Per Share $0.93 $0.72 $0.46 $0.37
(1) Operating Earnings before amortization of intangible assets. INDEPENDENT BANK CORP. SUPPLEMENTAL FINANCIAL INFORMATION CONSOLIDATED AVERAGE BALANCE SHEET AND AVERAGE RATE DATA (Unaudited - Dollars in Thousands)
INTEREST AVERAGE EARNED/ AVERAGE BALANCE PAID YIELD FOR THE SIX MONTHS ENDED JUNE 30, 2002 2002 2002 -------------- ------------- ----------- INTEREST-EARNING ASSETS: Federal Funds Sold and Assets Purchased Under Resale Agreement $14,638 $141 1.93% Trading Assets 1,152 7 1.22% Taxable Investment Securities 656,944 19,993 6.09% Non-taxable Investment Securities (1) 55,401 1,939 7.00% Loans (1) 1,316,890 49,535 7.52% -------------- ------------- ----------- Total Interest-Earning Assets $2,045,025 $71,615 7.00% -------------- ------------- ----------- Cash and Due from Banks 59,448 Other Assets 103,578 -------------- Total Assets $2,208,051 ============== INTEREST-BEARING LIABILITIES: Savings and Interest Checking Accounts $414,784 $1,691 0.82% Money Market & Super Interest Checking Accounts 301,066 2,917 1.94% Time Deposits 518,628 8,945 3.45% Federal Funds Sold and Assets Purchased Under Resale Agreement 68,488 393 1.15% Treasury Tax and Loan Notes 4,092 22 1.08% Federal Home Loan Bank borrowings 303,020 7,529 4.97% -------------- ------------- ----------- Total Interest-Bearing Liabilities $1,610,078 $21,497 2.67% -------------- ------------- ----------- Demand Deposits 378,730 Company-Obligated Mandatorily Redeemable Securities of Subsidiary Holding Solely Parent Company Debentures of the Corporation 59,572 Other Liabilities 21,892 -------------- Total Liabilities $2,070,272 Stockholders' Equity 137,779 -------------- Total Liabilities and Stockholders' Equity $2,208,051 ============== Net Interest Income $50,118 ============= Interest Rate Spread (2) 4.33% =========== Net Interest Margin (2) 4.90% ===========
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $795 for the six months ended June 30, 2002 (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. Net interest margin represents annualized net interest income as a percent of average interest-earning assets. INDEPENDENT BANK CORP. SUPPLEMENTAL FINANCIAL INFORMATION CONSOLIDATED AVERAGE BALANCE SHEET AND AVERAGE RATE DATA (Unaudited - Dollars in Thousands)
INTEREST AVERAGE EARNED/ AVERAGE BALANCE PAID YIELD FOR THE SIX MONTHS ENDED JUNE 30, 2001 2001 2001 -------------- ------------- ----------- INTEREST-EARNING ASSETS: Federal Funds Sold and Assets Purchased Under Resale Agreement $18,363 $440 4.79% Trading Assets 459 3 1.31% Taxable Investment Securities 560,158 19,564 6.99% Non-taxable Investment Securities (1) 38,686 1,465 7.57% Loans (1) 1,198,891 50,521 8.43% -------------- ------------- ----------- Total Interest-Earning Assets $1,816,557 $71,993 7.93% -------------- ------------- ----------- Cash and Due from Banks 66,742 Other Assets 105,913 -------------- Total Assets $1,989,212 ============== INTEREST-BEARING LIABILITIES: Savings and Interest Checking Accounts $371,932 $4,017 2.16% Money Market & Super Interest Checking Accounts 207,975 1,955 1.88% Time Deposits 569,489 15,478 5.44% Federal Funds Sold and Assets Purchased Under Resale Agreement 66,417 1,318 3.97% Treasury Tax and Loan Notes 4,031 72 3.57% Federal Home Loan Bank borrowings 245,995 6,665 5.42% -------------- ------------- ----------- Total Interest-Bearing Liabilities $1,465,839 $29,505 4.03% -------------- ------------- ----------- Demand Deposits 330,421 Company-Obligated Mandatorily Redeemable Securities of Subsidiary Holding Solely Parent Company Debentures of the Corporation 51,358 Other Liabilities 21,581 -------------- Total Liabilities $1,869,199 Stockholders' Equity 120,013 -------------- Total Liabilities and Stockholders' Equity $1,989,212 ============== Net Interest Income $42,488 ============= Interest Rate Spread (2) 3.90% =========== Net Interest Margin (2) 4.68% ===========
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $616 for the six months ended June 30, 2001 (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. Net interest margin represents annualized net interest income as a percent of average interest-earning assets. INDEPENDENT BANK CORP. SUPPLEMENTAL FINANCIAL INFORMATION CONSOLIDATED AVERAGE BALANCE SHEET AND AVERAGE RATE DATA (Unaudited - Dollars in Thousands)
INTEREST AVERAGE EARNED/ AVERAGE BALANCE PAID YIELD FOR THE THREE MONTHS ENDED JUNE 30, 2002 2002 2002 -------------- ------------- ----------- INTEREST-EARNING ASSETS: Federal Funds Sold and Assets Purchased Under Resale Agreement $20,151 $96 1.91% Trading Assets 1,153 5 1.73% Taxable Investment Securities 670,605 10,136 6.05% Non-taxable Investment Securities (1) 56,305 991 7.04% Loans (1) 1,329,834 24,952 7.51% -------------- ------------- ----------- Total Interest-Earning Assets $2,078,048 $36,180 6.96% -------------- ------------- ----------- Cash and Due from Banks 60,366 Other Assets 104,217 -------------- Total Assets $2,242,631 ============== INTEREST-BEARING LIABILITIES: Savings and Interest Checking Accounts $420,045 $863 0.82% Money Market & Super Interest Checking Accounts 329,992 1,602 1.94% Time Deposits 509,415 4,223 3.32% Federal Funds Sold and Assets Purchased Under Resale Agreement 69,290 201 1.16% Treasury Tax and Loan Notes 2,949 6 0.81% Federal Home Loan Bank borrowings 296,731 3,804 5.13% -------------- ------------- ----------- Total Interest-Bearing Liabilities $1,628,422 $10,699 2.63% -------------- ------------- ----------- Demand Deposits 392,773 Company-Obligated Mandatorily Redeemable Securities of Subsidiary Holding Solely Parent Company Debentures of the Corporation 59,747 Other Liabilities 22,074 -------------- Total Liabilities $2,103,016 Stockholders' Equity 139,615 -------------- Total Liabilities and Stockholders' Equity $2,242,631 ============== Net Interest Income $25,481 ============= Interest Rate Spread (2) 4.33% =========== Net Interest Margin (2) 4.90% ===========
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $411 for the three months ended June 30, 2002 (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. Net interest margin represents annualized net interest income as a percent of average interest-earning assets. INDEPENDENT BANK CORP. SUPPLEMENTAL FINANCIAL INFORMATION CONSOLIDATED AVERAGE BALANCE SHEET AND AVERAGE RATE DATA (Unaudited - Dollars in Thousands)
INTEREST AVERAGE EARNED/ AVERAGE BALANCE PAID YIELD FOR THE THREE MONTHS ENDED JUNE 30, 2001 2001 2001 -------------- ------------- ----------- INTEREST-EARNING ASSETS: Federal Funds Sold and Assets Purchased Under Resale Agreement $25,750 $290 4.50% Trading Assets 438 1 0.91% Taxable Investment Securities 564,808 9,712 6.88% Non-taxable Investment Securities (1) 39,270 739 7.53% Loans (1) 1,212,045 25,242 8.33% -------------- ------------- ----------- Total Interest-Earning Assets $1,842,311 $35,984 7.81% -------------- ------------- ----------- Cash and Due from Banks 66,929 Other Assets 106,582 -------------- Total Assets $2,015,822 ============== INTEREST-BEARING LIABILITIES: Savings and Interest Checking Accounts $379,948 $2,009 2.12% Money Market & Super Interest Checking Accounts 222,657 1,016 1.83% Time Deposits 552,162 7,106 5.15% Federal Funds Sold and Assets Purchased Under Resale Agreement 62,653 520 3.32% Treasury Tax and Loan Notes 3,868 26 2.69% Federal Home Loan Bank borrowings 258,587 3,418 5.29% -------------- ------------- ----------- Total Interest-Bearing Liabilities $1,479,875 $14,095 3.81% -------------- ------------- ----------- Demand Deposits 339,457 Company-Obligated Mandatorily Redeemable Securities of Subsidiary Holding Solely Parent Company Debentures of the Corporation 51,386 Other Liabilities 21,822 -------------- Total Liabilities $1,892,540 Stockholders' Equity 123,282 -------------- Total Liabilities and Stockholders' Equity $2,015,822 ============== Net Interest Income $21,889 ============= Interest Rate Spread (2) 4.00% =========== Net Interest Margin (2) 4.75% ===========
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $315 for the six months ended June 30, 2001 (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. Net interest margin represents annualized net interest income as a percent of average interest-earning assets.