EX-99.1 2 a6250257_ex991.htm EXHIBIT 99.1

Exhibit 99.1

Independent Bank Corp. Reports First Quarter Net Income of $9.2 Million

Solid Commercial Loan and Core Deposit Growth and Strong Net Interest Margin Drive Performance

ROCKLAND, Mass.--(BUSINESS WIRE)--April 15, 2010--Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced net income of $9.2 million for the first quarter of 2010. This represents an increase of 1.4% from the $9.1 million recorded in the fourth quarter of 2009. On a diluted earnings per share basis, the Company reported earnings of $0.44 for the quarter as compared to $0.43 for the previous quarter.

Christopher Oddleifson, President and Chief Executive Officer, stated, “It’s always nice to report a good start to the year. Our first quarter results reflect how we continue to meet the needs of our customers as indicated by the growth in our commercial loan and home equity portfolios. We also remained focused on core deposit growth, and we’re pleased with our deposit-gathering results. Customers that are looking for long-term relationships understand the value they get from Rockland Trust, and we continue to earn their trust and business.”

BALANCE SHEET

Total assets increased by $65.2 million, or 1.5%, to $4.5 billion at March 31, 2010 as compared to December 31, 2009.

Total loans were $3.4 billion at March 31, 2010, an increase of $16.3 million, or 0.5% from the prior quarter. The Company continued to generate solid growth during the quarter in the commercial and home equity loan portfolios with annualized growth of 6.5% and 10.8%, respectively. This was partially offset by a continued decline in the residential real estate and other consumer lending categories.

Total deposits increased by $98.6 million, or 2.9%, during the quarter ending March 31, 2010, primarily as a result of a strategy to increase core municipal deposits. Time deposits decreased by $54.1 million due to the Company’s strategy to focus on lower-cost core deposits, which grew by $152.7 million or 6.2% in the first quarter and represented 75.1% of total deposits at March 31, 2010.

Stockholders’ equity at March 31, 2010 totaled $418.2 million as compared to $412.6 million at December 31, 2009. The Tier 1 leverage capital ratio at March 31, 2010 further strengthened to 8.04%, maintaining the Company’s well-capitalized position.

NET INTEREST INCOME

The net interest margin in the first quarter of 2010 grew to 4.08%, compared to the linked quarter period of 3.98%. Net interest income of $40.2 million was down very slightly from the prior period in part due to the fewer number of days in the first quarter.

NON-INTEREST INCOME

The Company recorded non-interest income of $10.1 million during the first quarter of 2010 which represents a slight increase from the prior quarter. The change in non-interest income is composed of the following:

  • Service charges on deposit accounts decreased by $320,000, or 7.1%.
  • Wealth management revenue remained consistent with the prior quarter at $2.7 million. Assets under management in the wealth management division were $1.3 billion at March 31, 2010.
  • Mortgage banking income decreased by $280,000 largely due to a decrease in originations. The balance of the mortgage servicing asset was $2.2 million at both March 31, 2010 and December 31, 2009, and loans serviced amounted to $341.7 million and $350.5 million, respectively.
  • The Company recorded de minimis credit related impairment charges in the first quarter compared to the $2.2 million of charges in the linked quarter on certain pooled trust preferred and private mortgage backed securities.
  • Other non-interest income decreased by $1.3 million or 45.0% due primarily to the inclusion of large items in the linked quarter which resulted in decreases on the gain on the sale of other real estate owned of $573,000, a decrease on loan swap income of $300,000, and $413,000 related to tax credits purchased during the fourth quarter of 2009.

NON-INTEREST EXPENSE

The Company recorded non-interest expense of $33.6 million in the first quarter of 2010, a decrease of $1.1 million, or 3.1%, when compared to the quarter ended December 31, 2009. Significant changes of non-interest expense include the following:

  • Occupancy and equipment expense increased by $287,000, or 7.5% due primarily to increases in snow removal and sanding of $216,000.
  • Other non-interest expense decreased by $1.4 million, or 14.2%, which is primarily attributable to decreases in advertising of $330,000, other real estate owned valuation write-off of $315,000, telephone of $270,000, legal fees of $252,000, and consultant fees of $221,000, offset by branch closing expenses incurred in the first quarter of 2010 of $266,000.

The Company reported a return on average assets and a return on average common equity in the first quarter of 2010 of 0.84% and 8.95%, respectively, as compared to 0.81% and 8.75% for the quarter ended December 31, 2009.

ASSET QUALITY

The allowance for loan losses increased to $45.3 million at March 31, 2010 as compared to $42.4 million at December 31, 2009. Nonperforming loans increased to $41.8 million, or 1.23% of total loans at March 31, 2010, from $36.2 million, or 1.07% of total loans at December 31, 2009. The Company’s allowance for loan losses as a percentage of loans were 1.33% and 1.25% at March 31, 2010 and December 31, 2009, respectively.

The provision for loan losses was $4.7 million and $4.4 million for the quarters ended March 31, 2010 and December 31, 2009. Net charge-offs declined to $1.7 million, or 0.21% annualized of average loans for the quarter ending March 31, 2010 compared to $3.4 million or 0.40% for the quarter ending December 31, 2009.

Christopher Oddleifson and Denis K. Sheahan, Chief Financial Officer, of Independent Bank Corp. and Rockland Trust Company, will host a conference call to discuss first quarter earnings at 10:00 a.m. Eastern Time on Friday, April 16, 2010. Internet access to the call is available on the Company’s website at www.RocklandTrust.com or by telephonic access by dial-in at 1-800-860-2442 reference: INDB. A replay of the call will be available by calling 1-877-344-7529, Replay Pass code: 439101. The web cast replay will be available until May 3, 2010.

Independent Bank Corp., which has Rockland Trust Company as a wholly-owned bank subsidiary, has $4.5 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 discover 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 March 31, December 31, March 31, Mar. 2010 vs. Mar. 2010 vs.
      2010       2009       2009     Dec. 2009 Mar. 2009
 
Assets
Cash and Due From Banks $ 219,055 $ 121,905 $ 70,554 79.69 % 210.48 %
Fed Funds Sold and Short Term Investments - - 149,729 n/a -100.00 %
Securities
Trading Assets 7,399 6,171 2,580 19.90 % 186.78 %
Securities Available for Sale 473,515 508,650 558,541 -6.91 % -15.22 %
Securities Held to Maturity   91,059     93,410     30,804   -2.52 % 195.61 %
Total Securities 571,973 608,231 591,925 -5.96 % -3.37 %
 
Loans Held for Sale 7,570 13,466 22,412 -43.78 % -66.22 %
Loans
Commercial and Industrial 387,785 373,531 286,178 3.82 % 35.50 %
Commercial Real Estate 1,645,251 1,614,474 1,136,411 1.91 % 44.78 %
Commercial Construction 167,161 175,312 166,272 -4.65 % 0.53 %
Small Business   81,696     82,569     87,137   -1.06 % -6.24 %
Total Commercial 2,281,893 2,245,886 1,675,998 1.60 % 36.15 %
Residential Real Estate 539,709 555,306 406,119 -2.81 % 32.89 %
Residential Construction 7,732 10,736 9,727 -27.98 % -20.51 %
Consumer - Home Equity   484,413     471,862     411,097   2.66 % 17.83 %
Total Consumer Real Estate 1,031,854 1,037,904 826,943 -0.58 % 24.78 %
Consumer - Auto 67,807 79,273 116,375 -14.46 % -41.73 %
Consumer - Other   30,238     32,452     35,847   -6.82 % -15.65 %
Total Other Consumer   98,045     111,725     152,222   -12.24 % -35.59 %
Total Loans   3,411,792     3,395,515     2,655,163   0.48 % 28.50 %
Less - Allowance for Loan Losses   (45,278 )   (42,361 )   (37,488 ) 6.89 % 20.78 %
Net Loans 3,366,514 3,353,154 2,617,675 0.40 % 28.61 %
Federal Home Loan Bank Stock 35,854 35,854 24,603 0.00 % 45.73 %
Bank Premises and Equipment 44,850 44,235 36,733 1.39 % 22.10 %
Goodwill and Core Deposit Intangible 143,371 143,730 125,726 -0.25 % 14.03 %
Other Assets   158,020     161,446     127,082   -2.12 % 24.34 %
Total Assets $ 4,547,207   $ 4,482,021   $ 3,766,439   1.45 % 20.73 %
 
Liabilities and Stockholders' Equity
Deposits
Demand Deposits $ 720,246 $ 721,792 $ 541,038 -0.21 % 33.12 %
Savings and Interest Checking Accounts 1,170,194 1,073,990 765,258 8.96 % 52.91 %
Money Market 719,761 661,731 536,808 8.77 % 34.08 %
Time Certificates of Deposit   863,652     917,781     810,637   -5.90 % 6.54 %
Total Deposits 3,473,853 3,375,294 2,653,741 2.92 % 30.90 %
Borrowings
Federal Home Loan Bank Borrowings 327,807 362,936 408,480 -9.68 % -19.75 %
Fed Funds Purchased and Assets Sold
Under Repurchase Agreements 184,436 190,452 169,616 -3.16 % 8.74 %
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   2,873     2,152     2,442   33.50 % 17.65 %
Total Borrowings 606,973 647,397 672,395 -6.24 % -9.73 %
Total Deposits and Borrowings 4,080,826 4,022,691 3,326,136 1.45 % 22.69 %
Other Liabilities 48,157 46,681 46,780 3.16 % 2.94 %
Stockholders' Equity
Preferred Stock - - 73,578 n/a n/a
Common Stock 209 209 163 0.00 % 28.22 %
Additional Paid in Capital 225,373 225,088 142,140 0.13 % 58.56 %
Retained Earnings 190,064 184,599 184,387 2.96 % 3.08 %

Accumulated Other Comprehensive Income/(Loss), Net of Tax

  2,578     2,753     (6,745 ) -6.36 % -138.22 %
Total Stockholders' Equity   418,224     412,649     393,523   1.35 % 6.28 %
Total Liabilities and Stockholders' Equity $ 4,547,207   $ 4,482,021   $ 3,766,439   1.45 % 20.73 %
 

INDEPENDENT BANK CORP. FINANCIAL SUMMARY

(Unaudited - Dollars in Thousands, Except Per Share Data)
         
 
 
CONSOLIDATED STATEMENTS OF INCOME Three Months Ended
% Change % Change
March 31, December 31, March 31, Mar. 2010 vs. Mar. 2010 vs.
  2010     2009     2009   Dec. 2009 Mar. 2009
 
INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments $ 24 $ 18 $ 198 33.33 % -87.88 %
Interest and Dividends on Securities 6,671 7,096 7,267 -5.99 % -8.20 %
Interest on Loans 44,047 45,637 35,779 -3.48 % 23.11 %
Interest on Loans Held for Sale   106     132     167   -19.70 % -36.53 %
Total Interest Income 50,848 52,883 43,411 -3.85 % 17.13 %
INTEREST EXPENSE
Interest on Deposits 5,939 6,869 8,407 -13.54 % -29.36 %
Interest on Borrowed Funds   4,699     5,316     5,015   -11.61 % -6.30 %
Total Interest Expense   10,638     12,185     13,422   -12.70 % -20.74 %
Net Interest Income 40,210 40,698 29,989 -1.20 % 34.08 %
Less - Provision for Loan Losses   4,650     4,424     4,000   5.11 % 16.25 %
Net Interest Income after Provision for Loan Losses 35,560 36,274 25,989 -1.97 % 36.83 %
NON-INTEREST INCOME
Service Charges on Deposit Accounts 4,221 4,541 3,648 -7.05 % 15.71 %
Wealth Management 2,728 2,729 2,330 -0.04 % 17.08 %
Mortgage Banking Income 1,000 1,280 1,156 -21.88 % -13.49 %
BOLI Income 721 813 729 -11.32 % -1.10 %
Net Gain/(Loss) on Sale of Securities - - 1,379 n/a -100.00 %
Gross Loss on Write-Down of certain Investments to Fair Value 180 2 - 8900.00 % n/a
Less: Non-Credit Related Other-Than-Temporary Impairment   (358 )   (2,167 )   -   -83.48 % n/a  
Net Loss on Write-Down of Certain Investments to Fair Value (178 ) (2,165 ) - -91.78 % n/a
Other Non-Interest /Income   1,558     2,831     1,231   -44.97 % 26.56 %
Total Non-Interest Income 10,050 10,029 10,473 0.21 % -4.04 %
NON-INTEREST EXPENSE
Salaries and Employee Benefits 18,464 18,537 14,859 -0.39 % 24.26 %
Occupancy and Equipment Expenses 4,135 3,848 3,705 7.46 % 11.61 %
Data Processing and Facilities Management 1,294 1,178 1,416 9.85 % -8.62 %
Merger & Acquisition Expense - - 1,538 n/a n/a

FDIC Assessment

1,321 1,320 536 0.08 % 146.46 %
Other Non-Interest Expense   8,374     9,765     6,253   -14.24 % 33.92 %
Total Non-Interest Expense 33,588 34,648 28,307 -3.06 % 18.66 %
INCOME BEFORE INCOME TAXES   12,022     11,655     8,155   3.15 % 47.42 %
PROVISION FOR INCOME TAXES   2,795     2,555     1,767   9.39 % 58.18 %
NET INCOME $ 9,227   $ 9,100   $ 6,388   1.40 % 44.44 %
 
PREFERRED STOCK DIVIDEND $ - $ - $ 1,173
 

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$ 9,227   $ 9,100   $ 5,215   1.40 % 76.93 %
 
BASIC EARNINGS PER SHARE $ 0.44 $ 0.43 $ 0.32 2.33 % 37.50 %
DILUTED EARNINGS PER SHARE $ 0.44 $ 0.43 $ 0.32 2.33 % 37.50 %
BASIC AVERAGE SHARES 20,937,589 20,931,154 16,285,955
DILUTED AVERAGE SHARES 21,008,422 20,975,807 16,303,836
 

PERFORMANCE RATIOS:

Net Interest Margin (FTE) 4.08 % 3.98 % 3.62 %
Return on Average Assets 0.84 % 0.81 % 0.57 %
Return on Average Common Equity 8.95 % 8.75 % 6.68 %
 

RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP) $ 9,227 $ 9,100 $ 5,215 1.40 % 76.93 %
Non-Interest Income Components
Less - Net Gain on Sale of Securities, net of tax - - (896 )
Non-Interest Expense Components
Add - Merger and Acquisition Expenses, net of tax   -     -     1,000      
NET OPERATING EARNINGS $ 9,227   $ 9,100   $ 5,319   1.40 % 73.46 %
 
 
Diluted Earnings Per Share, on an Operating Basis $ 0.44   $ 0.43   $ 0.33   2.33 % 33.33 %
         

INDEPENDENT BANK CORP. FINANCIAL SUMMARY

(Unaudited - Dollars in Thousands, Except Per Share Data)
 
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
 
Three Months Ended
% Change % Change
March 31, December 31, March 31, Mar. 2010 vs. Mar. 2010 vs.
  2010   2009   2009   Dec. 2009 Mar. 2009
 
Non-Interest Income GAAP $ 10,050 $ 10,029 $ 10,473 0.21 % -4.04 %

Less - Net Gain on Sale of Securities

- - (1,379 ) n/a n/a
Add - Other-Than-Temporary-Impairment on Securities   178   2,165   -   -91.78 % n/a  
Non-Interest Income as Adjusted $ 10,228 $ 12,194 $ 9,094   -16.12 % 12.47 %
 
Non-Interest Expense GAAP $ 33,588 $ 34,648 $ 28,307 -3.06 % 18.66 %
Less - Merger & Acquisition Expenses   -   -   (1,538 ) n/a   -100.00 %
Non-Interest Expense as Adjusted $ 33,588 $ 34,648 $ 26,769   -3.06 % 25.47 %
 

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 tables above. In an effort to provide investors with information regarding the Company's results, the Company has disclosed the above 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
For the Period Ending For the Three Months Ending
March 31,   December 31,   March 31, March 31,   December 31,   March 31,
2010   2009   2009   2010   2009   2009  
 
(Dollars in Thousands, Except Per Share Data) (Dollars in Thousands, Except Per Share Data)
Nonperforming Loans
Commercial & Industrial Loans $7,252 $4,205 $3,884 $527 $1,705 $18

Small Business Loans

1,294 793 1,638 251 325 280
Commercial Real Estate Loans 23,645 18,525 10,833 198 29 2,059
Residential Real Estate Loans 8,092 10,829 8,521 135 150 (10 )
Installment Loans - Home Equity 948 1,166 2,940 234 599 251
Installment Loans - Auto 438 242 665 - - -
Installment Loans - Other 171   423   479   388   611   963  
Total Nonperforming Loans / Total Net Charge-offs $41,840   $36,183   28,960   $1,733   $3,419   $3,561  
Non-Accrual Securities 899 920 1,698
Other Assets in Possession 98 148 224
Other Real Estate Owned 5,990   3,994   1,764  
Nonperforming Assets 48,827   41,245   32,646  
 
Nonperforming Loans/Gross Loans 1.23 % 1.07 % 1.09 %
Allowance for Loan Losses/Nonperforming Loans 108.22 % 117.07 % 129.45 %
Gross Loans/Total Deposits 98.21 % 100.60 % 100.05 %
Allowance for Loan Losses/Total Loans 1.33 % 1.25 % 1.41 %
 
Net charge-offs (quarter-to-date) $1,733 $3,419 $3,561
Net charge-offs to average loans ( quarter annualized) 0.21 % 0.40 % 0.54 %
Net charge-offs to average loans (year-to-date annualized) 0.21 % 0.38 % 0.54 %
 

Financial Ratios

Book Value per Common Share $19.76 $19.58 $19.60
Tangible Equity Ratio:
Tangible Common Capital/Tangible Assets 6.24 % 6.20 % 5.33 %
Tangible Common Capital/Tangible Asset (proforma to include
the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP 6.68 % 6.65 % 5.83 %
Tangible Common Book Value per Share (proforma to include
the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP $13.97 $13.76 $12.81
 

Capital Adequacy

Tier one leverage capital ratio (1) 8.04 % 7.87 % 9.77 %
(1) Estimated number for March 31, 2010
                 
INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA Three Months Ended
(Unaudited - Dollars in Thousands) March 31, 2010   December 31, 2009

 

March 31, 2009

Interest Interest Interest
  Average Earned/ Yield/ Average Earned/ Yield/ Average Earned/ Yield/
Balance   Paid   Rate   Balance   Paid   Rate   Balance   Paid   Rate
Interest-Earning Assets:
 
 

Interest Bearing Cash, Federal Funds Sold, and Short Term Investments

$ 23,125 $ 24 0.42 % $ 50,983 $ 18 0.14 % $ 121,394 $ 198 0.66 %
Securities:
Trading Assets 6,800 60 3.58 % 8,706 61 2.78 % 2,706 25 3.75 %
Taxable Investment Securities 568,550 6,409 4.57 % 602,679 6,833 4.50 % 565,797 6,937 4.97 %
Non-taxable Investment Securities (1)   19,111     342   7.26 %     19,343     311   6.38 %     30,161     469   6.31 %
Total Securities:   594,461     6,811   4.65 %     630,728     7,205   4.53 %     598,664     7,431   5.03 %
Loans
Commercial and Industrial 377,855 4,417 4.74 % 372,174 4,769 5.08 % 274,480 3,303 4.88 %
Commercial Real Estate 1,630,944 23,089 5.74 % 1,572,599 23,300 5.88 % 1,129,022 17,067 6.13 %
Commercial Construction 171,535 2,076 4.91 % 190,354 2,389 4.98 % 174,507 1,915 4.45 %
Small Business   82,476   1,217 5.98 %   82,568   1,250 6.01 %   87,181   1,289 6.00 %
Total Commercial 2,262,810 30,799 5.52 % 2,217,695 31,708 5.67 % 1,665,190 23,574 5.74 %
Residential Real Estate 548,533 6,765 5.00 % 570,546 7,045 4.90 % 408,250 5,296 5.26 %
Residential Construction 9,102 118 5.26 % 12,309 172 5.54 % 10,924 172 6.39 %
Consumer - Home Equity   478,324   4,522 3.83 %   470,121   4,575 3.86 %   407,860   4,010 3.99 %
Total Consumer Real Estate 1,035,959 11,405 4.46 % 1,052,976 11,792 4.44 % 827,034 9,478 4.65 %
Consumer - Auto 73,656 1,278 7.04 % 85,445 1,501 6.97 % 122,247 2,044 6.78 %
Consumer - Other   31,484   734 9.45 %   33,103   758 9.08 %   37,488   801 8.67 %
Total Other Consumer   105,140   2,012 7.76 %   118,548   2,259 7.56 %   159,735   2,845 7.22 %
Total Loans   3,403,909   44,216 5.27 %   3,389,219   45,759 5.36 %   2,651,959   35,897 5.49 %
Loans Held for Sale 7,125 106 6.03 % 10,961 132 4.78 % 15,114 168 4.51 %
Total Interest-Earning Assets $ 4,028,620   $ 51,157   5.15 %   $ 4,081,891   $ 53,114   5.16 %   $ 3,387,131   $ 43,694   5.23 %
Cash and Due from Banks 66,424 64,799 60,079
Federal Home Loan Bank Stock 35,854 36,351 24,603
Other Assets   304,200   281,314   251,307
Total Assets $ 4,435,098 $ 4,464,355 $ 3,723,120
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts $ 1,056,156 $ 1,184 0.45 % $ 977,673 $ 1,185 0.48 % $ 740,020 $ 996 0.55 %
Money Market 702,390 1,320 0.76 % 692,072 1,539 0.88 % 518,438 1,696 1.33 %
Time Deposits   889,449     3,435   1.57 %     931,510     4,145   1.77 %     831,196     5,715   2.79 %
Total interest-bearing deposits: $ 2,647,995 $ 5,939 0.91 % $ 2,601,255 $ 6,869 1.05 % $ 2,089,654 $ 8,407 1.63 %
Borrowings:
Federal Home Loan Bank Borrowings $ 340,301 $ 2,432 2.90 % $ 383,331 $ 2,971 3.07 % $ 410,126 $ 2,675 2.65 %
Federal Funds Purchased and Assets Sold
Under Repurchase Agreement 184,624 830 1.82 % 191,229 871 1.81 % 172,884 856 2.01 %
Junior Subordinated Debentures 61,857 902 5.91 % 61,857 921 5.91 % 61,857 947 6.21 %
Subordinated Debentures 30,000 535 7.23 % 30,000 553 7.31 % 30,000 537 7.26 %
Other Borrowings   2,360     -   0.00 %     2,227     -   0.00 %     1,772     -   0.00 %
Total Borrowings:   619,142     4,699   3.08 %     668,644     5,316   3.15 %     676,639     5,015   3.01 %
Total Interest-Bearing Liabilities $ 3,267,137   $ 10,638   1.32 %   $ 3,269,899   $ 12,185   1.48 %   $ 2,766,293   $ 13,422   1.97 %
Demand Deposits 702,833 731,053 530,425
 
Other Liabilities   47,020   50,791   42,405
Total Liabilities $ 4,016,990 $ 4,051,743 $ 3,339,123
Stockholders' Equity   418,108   412,612   383,997
Total Liabilities and Stockholders' Equity $ 4,435,098 $ 4,464,355 $ 3,723,120
 
Net Interest Income $ 40,519 $ 40,929 $ 30,272
 
Interest Rate Spread (2) 3.83 % 3.68 % 3.26 %
 
Net Interest Margin (3) 4.08 % 3.98 % 3.62 %
 
Supplemental Information:
Total Deposits, including Demand Deposits $ 3,350,828 $ 5,939 $ 3,332,308 $ 6,869 $ 2,620,079 $ 8,407
Cost of Total Deposits 0.72 % 0.82 % 1.30 %
Total Funding Liabilities, including Demand Deposits $ 3,969,970 $ 10,638 $ 4,000,952 $ 12,185 $ 3,296,718 $ 13,422
Cost of Total Funding Liabilities 1.09 % 1.21 % 1.65 %
 
 
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $309, $231, and $283 for the three months ended March 31, 2010, December 31, 2009, and March 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