ROCKLAND, Mass.--(BUSINESS WIRE)--Jan. 8, 2004--Independent Bank
Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today
announced that net income for the quarter ended December 31, 2003, was
$7.3 million, an increase of $288,000 from the quarter ended December
31, 2002. Diluted earnings per share were $0.49, a 2.1% increase
compared to the same three month period last year. Comparing the year
ended December 31, 2003 to the same period last year, net income was
$26.4 million, representing a 5.5% increase, while diluted earnings
per share were $1.79, representing an increase of 11.2%.
Comparing fourth quarter 2003 to the fourth quarter 2002, net
interest income decreased $1.6 million, or (6.3)%, and net interest
income for the twelve months ended December 31, 2003 decreased $4.3
million or (4.3)% from the twelve months ended December 31, 2002. The
net interest margin for the three month and twelve month periods ended
December 31, 2003 was 4.26% and 4.40%, respectively. The Company's
continued ability to generate strong loan growth has served to
somewhat mitigate the effects of a declining net interest margin. The
net interest margin for the three and the twelve month periods ended
December 31, 2002 was 4.83% and 4.88%, respectively.
Non-interest income improved by $58,000, or 0.9%, for the quarter
and by $5.2 million, or 22.7%, during the twelve months ended December
31, 2003 proving to be the leading contributor to the Company's core
business growth year over year. Deposit service charge revenue
increased by $291,000, or 11.0%, and $1.4 million, or 13.9%, for the
three and twelve months ended December 31, 2003, respectively, as
compared to the same periods in 2002, reflecting growth in core
deposits and lower earnings credit rates. Investment Management
revenue decreased $109,000, or (9.3)%, and $913,000, or (17.4)%, for
the three and twelve months ended December 31, 2003, respectively, due
to the general performance of the equities market over the past few
years shifting customers' bias towards fixed income products which
generate lower fees, as well as higher estate and trust distribution
fees in the quarter ending March 31, 2002. Mortgage Banking Income was
down by $465,000, or (40.0)%, at $699,000 for the three months ended
December 31, 2003 as compared to the three months ended December 31,
2002 attributable to the decline in the refinancing market beginning
in the second half of 2003, where as year over year, mortgage banking
income increased by $1.4 million, or 44.1% as the refinancing boom was
at its strongest during the first half of 2003. The balance of the
mortgage servicing asset is $3.2 million and loans serviced amounted
to $398.9 million as of December 31, 2003. Security gains were
$302,000 in the fourth quarter of 2003, and $2.6 million for the
twelve months ended December 31, 2003. In an effort to improve the
Company's overall interest rate risk position as well as to improve
the net interest margin, the Company prepaid $31.5 million of fixed,
high rate borrowings and sold $20.0 million of investment securities
during the second quarter of 2003. The prepayment penalty on the
borrowings totaled $1.9 million and is recorded in non-interest
expense, while the gain on the sale of the securities was $2.0
million. Other non-interest income increased $111,000 and $675,000 for
the three and twelve months ending December 31, 2003, respectively,
mainly due to prepayment penalties received on loan payoffs.
Non-interest expense decreased by $1.1 million, or (5.7)%, and
decreased $1.8 million, or (2.4)% for the three and twelve months
ended December 31, 2003, as compared to the same periods in the prior
year. Salaries and employee benefits decreased by $505,000, or (4.7)%,
for the three months ended December 31, 2003 due to decreases in
commissions and incentive programs. On a year over year basis salaries
and employee benefits increased by $1.9 million, or 4.9%, due to
additions to staff needed to support continued growth, merit
increases, and pension expense, offset by lower executive retirement
costs. As previously disclosed, Rockland Trust is a member of the
Financial Institutions Retirement Fund, a defined benefit pension
plan. Management has been notified by the administrator that,
primarily due to the poor performance of the equities markets in the
last several years, a contribution of $1.7 million will be required
for the plan year beginning July 1, 2003 and ending June 30, 2004. The
Company has therefore accrued $841,000 for pension expense during the
second half of 2003. No pension expense was recorded in the
comparative periods.
Occupancy and equipment related expense decreased by $187,000, or
(8.6)%, for the three months ended December 31, 2003 and increased
$47,000, or 0.5%, for the twelve months ended December 31, 2003.
During the twelve months ending December 31, 2002, the Company
recognized an impairment charge of $4.4 million, pre-tax, on an
investment in corporate bonds issued by WorldCom, which is a
significant factor in the decrease in non-interest expense when
comparing this period to the twelve months ending December 31, 2003.
As mentioned above the Company incurred a prepayment penalty on
borrowings of $1.9 million in the second quarter of 2003 which is
recorded in non-interest expense. Other non-interest expenses
decreased by $388,000, or (8.4)%, and decreased $1.6 million or
(8.4)%, for the three and twelve months ended December 31, 2003,
respectively, mainly due to decreases in costs associated with a lower
loss on a CRA equity investment, information technology consulting,
office supplies, and executive recruitment.
For the twelve month period ending December 31, 2003, the
provision for income taxes reflects the previously disclosed
settlement of a state tax dispute with the Massachusetts Department of
Revenue ("DOR") resulting in an after tax charge of $2.0 million, or
$0.14 per share.
Total assets increased by $151.4 million, or 6.6%, from fiscal
year-end 2002 to a total of $2.4 billion at December 31, 2003. Total
loans increased by $149.5 million, or 10.5%, during the twelve months
ended December 31, 2003. The increases were mainly in commercial real
estate, residential real estate, and commercial construction, which
increased $53.8 million, or 10.5%, $53.9 million, or 20.0%, and $26.3
million, or 53.5%, respectively. Consumer loans increased $6.4
million, or 1.5%, primarily due to an increase in home equity lines.
Residential loans held for sale decreased $9.8 million. Investments
increased by $3.5 million, or 0.5%, during the twelve months ended
December 31, 2003.
Total deposits of $1.8 billion at December 31, 2003 increased
$94.6 million, or 5.6%, compared to December 31, 2002. The increase is
attributable to a $117.7 million, or 9.7%, growth in core deposits.
Borrowings increased by $53.2 million, or 14.7%, during the twelve
months ended December 31, 2003.
Stockholders' equity as of December 31, 2003 totaled $171.8
million, as compared to $161.2 million at December 31, 2002. The Tier
1 leverage capital ratio at December 31, 2003 was 7.60%, maintaining
the Company's well capitalized position.
Non-performing assets totaled $3.5 million at December 31, 2003
(0.14% of total assets), as compared to the $3.1 million (0.13% of
total assets) reported at December 31, 2002. The provision for loan
losses decreased to $630,000 from $1.1 million in the fourth quarter
of 2003 and decreased to $3.4 million from $4.7 million for the year,
reflecting the Company's strong asset quality and the prospects of an
improving economy. The Company's total allowances for loan losses
(which included a credit quality discount of $0.5 million at December
31, 2002), as a percentage of the loan portfolio was 1.46% at December
31, 2003 and 1.53% at December 31, 2002.
In comparing the results for 2003 to 2002 please note the
following:
-- In the third quarter of 2002 the Company adopted the Statement
of Financial Accounting Standards No. 147, "Acquisition of
Certain Financial Institutions." This accounting standard
provided for the nonamortization of goodwill effective January
1, 2002 and requires that prior periods be adjusted to reflect
the new standard. The impact of this adjustment is an increase
of $443,000, or $0.03 per diluted share, and $444,000, or
$0.03 per diluted share to net income in the first and second
quarters of 2002, respectively.
-- In addition the Company wrote off $738,000, and $767,000, net
of tax, of unamortized issuance costs related to the
redemption of trust preferred securities as a direct charge to
equity in the first and second quarters of 2002, respectively,
in accordance with Generally Accepted Accounting Principles
("GAAP"). This charge is included in the calculation of
earnings per share.
Chris Oddleifson, Chief Executive Officer and President of
Independent Bank Corp. and Rockland Trust Company, stated that: "I am
pleased with our fourth quarter and 2003 performance because we were
able to overcome the decline in net interest income by growing assets
and controlling expenses. Moreover, the Rockland Team worked hard in
2003 to enhance our businesses to foster growth and improved
performance in the future."
Christopher Oddleifson, and Denis K. Sheahan, Chief Executive
Officer and President, and Chief Financial Officer, respectively, of
Independent Bank Corp., will host a conference call to discuss fourth
quarter earnings at 9:00 a.m. Eastern Daylight Time on Friday, January
9, 2004. Internet access to the call is available by going to the
Company's website at http://www.rocklandtrust.com or by telephonic
access by dial-in at 1-800-901-5213 (password - INDB). A replay of the
call will be available on Monday at 10:00 a.m. on January 12, 2004
until 11:59 p.m. on January 14, 2004 by calling 1-888-286-8010
(Passcode 54395915).
Independent Bank Corp.'s sole bank subsidiary, Rockland Trust
Company, currently has $2.4 billion in assets, 52 retail branches,
seven 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 December 31, December 31, Percent
2003 2002 Change
Assets
Cash and Due From Banks $ 75,495 $ 71,317 5.86%
Fed Funds Sold & Short Term
Investments - 3,169 -100.00%
Investments
Trading Assets 1,171 1,075 8.93%
Investments Available for Sale 527,507 501,828 5.12%
Investments Held to Maturity 121,894 149,071 -18.23%
Federal Home Loan Bank Stock 21,907 17,036 28.59%
Total Investments 672,479 669,010 0.52%
Loans
Commercial & Industrial 171,230 151,591 12.96%
Commercial Real Estate 564,890 511,102 10.52%
Residential Real Estate 324,052 270,161 19.95%
Residential Loans Held for Sale 1,471 11,291 -86.97%
Commercial Construction 75,380 49,113 53.48%
Residential Construction 9,633 10,258 -6.09%
Consumer - Installment 301,801 323,501 -6.71%
Consumer - Other 132,678 104,585 26.86%
Total Loans 1,581,135 1,431,602 10.45%
Less - Allowance for Loan Losses (23,163) (21,387) 8.30%
Net Loans 1,557,972 1,410,215 10.48%
Bank Premises and Equipment 32,477 30,872 5.20%
Goodwill 36,236 36,236 0.00%
Other Assets 62,096 64,553 -3.81%
Total Assets $2,436,755 $2,285,372 6.62%
Liabilities and Stockholders' Equity
Deposits
Demand Deposits $ 448,452 $ 429,042 4.52%
Savings and Interest Checking
Accounts 535,870 464,318 15.41%
Money Market and Super Interest
Checking Accounts 347,530 320,819 8.33%
Time Certificates of Deposit 451,486 474,553 -4.86%
Total Deposits 1,783,338 1,688,732 5.60%
Fed Funds Purchased and Assets Sold
Under Repurchase Agreements 39,425 58,092 -32.13%
Federal Home Loan Bank Borrowings 371,136 297,592 24.71%
Treasury Tax and Loan Notes 4,808 6,471 -25.70%
Total Borrowings 415,369 362,155 14.69%
Total Deposits and
Borrowings 2,198,707 2,050,887 7.21%
Other Liabilities 18,344 25,469 -27.98%
Company-Obligated Mandatory
Redeemable Securities of
Subsidiary Holding Solely
Parent Company Debenture
of the Corporation 47,857 47,774 0.17%
Stockholders' Equity 171,847 161,242 6.58%
Total Liabilities and
Stockholders' Equity $2,436,755 $2,285,372 6.62%
INDEPENDENT BANK CORP. FINANCIAL SUMMARY
(Dollars in Thousands - Unaudited)
CONSOLIDATED STATEMENTS OF INCOME Three Months Ended
December 31, Percent
2003 2002 Change
INTEREST INCOME
Interest on Fed Funds Sold & Short
Term Investments $ - $ 48 -100.00%
Interest and Dividends on Securities 7,835 10,056 -22.09%
Interest on Loans 23,464 24,361 -3.68%
Total Interest Income 31,299 34,465 -9.19%
INTEREST EXPENSE
Interest on Deposits 4,339 5,260 -17.51%
Interest on Borrowed Funds 3,269 3,924 -16.69%
Total Interest Expense 7,608 9,184 -17.16%
Net Interest Income 23,691 25,281 -6.29%
Less - Provision for Loan Losses 630 1,050 -40.00%
Net Interest Income after Provision
for Loan Losses 23,061 24,231 -4.83%
NON-INTEREST INCOME
Service Charges on Deposit Accounts 2,936 2,645 11.00%
Investment Management Services Income 1,065 1,174 -9.28%
Mortgage Banking Income 699 1,164 -39.95%
BOLI Income 452 486 -7.00%
Net Gain/(Loss) on Sale of Securities 302 38 694.74%
Other Non-Interest Income 775 664 16.72%
Total Non-Interest Income 6,229 6,171 0.94%
NON-INTEREST EXPENSE
Salaries and Employee Benefits 10,264 10,769 -4.69%
Occupancy and Equipment Expenses 1,985 2,172 -8.61%
Data Processing & Facilities
Management 1,130 1,110 1.80%
Pre-payment Penalty on Borrowings - - -
Impairment Charge - - -
Other Non-Interest Expense 4,231 4,619 -8.40%
Total Non-Interest Expense 17,610 18,670 -5.68%
Minority Interest 1,084 1,091 -0.64%
INCOME BEFORE INCOME TAXES 10,596 10,641 -0.42%
PROVISION FOR INCOME TAXES 3,285 3,618 -9.20%
NET INCOME $ 7,311 $ 7,023 4.10%
Less: Trust Preferred Issuance
Costs Write-off (net of tax) $ - $ - -
Net Income Available
to Common
Shareholders $ 7,311 $ 7,023 4.10%
BASIC EARNINGS PER SHARE $ 0.50 $ 0.49 2.04%
DILUTED EARNINGS PER SHARE $ 0.49 $ 0.48 2.08%
BASIC AVERAGE SHARES 14,622,273 14,456,521 1.15%
DILUTED AVERAGE SHARES 14,834,854 14,639,323 1.34%
PERFORMANCE RATIOS:
Net Interest Margin (FTE) 4.26% 4.83% -11.80%
Return on Average Assets 1.20% 1.23% -2.44%
Return on Average Equity 17.35% 17.95% -3.34%
Twelve Months Ended
December 31, Percent
2003 2002(1) Change
INTEREST INCOME
Interest on Fed Funds Sold & Short
Term Investments $ - $ 378 -100.00%
Interest and Dividends on Securities 32,640 41,780 -21.88%
Interest on Loans 95,666 98,667 -3.04%
Total Interest Income 128,306 140,825 -8.89%
INTEREST EXPENSE
Interest on Deposits 17,801 24,869 -28.42%
Interest on Borrowed Funds 14,732 15,925 -7.49%
Total Interest Expense 32,533 40,794 -20.25%
Net Interest Income 95,773 100,031 -4.26%
Less - Provision for Loan Losses 3,420 4,650 -26.45%
Net Interest Income after Provision
for Loan Losses 92,353 95,381 -3.17%
NON-INTEREST INCOME
Service Charges on Deposit Accounts 11,409 10,013 13.94%
Investment Management Services Income 4,340 5,253 -17.38%
Mortgage Banking Income 4,451 3,088 44.14%
BOLI Income 1,862 1,862 0.00%
Net Gain/(Loss) on Sale of Securities 2,629 - 100.00%
Other Non-Interest Income 3,103 2,428 27.80%
Total Non-Interest Income 27,794 22,644 22.74%
NON-INTEREST EXPENSE
Salaries and Employee Benefits 41,508 39,561 4.92%
Occupancy and Equipment Expenses 8,692 8,645 0.54%
Data Processing & Facilities
Management 4,517 4,295 5.17%
Pre-payment Penalty on Borrowings 1,941 - 100.00%
Impairment Charge - 4,372 -100.00%
Other Non-Interest Expense 17,169 18,752 -8.44%
Total Non-Interest Expense 73,827 75,625 -2.38%
Minority Interest 4,353 5,041 -13.65%
INCOME BEFORE INCOME TAXES 41,967 37,359 12.33%
PROVISION FOR INCOME TAXES 15,536 12,293 26.38%
NET INCOME $ 26,431 $ 25,066 5.45%
Less: Trust Preferred Issuance
Costs Write-off (net of tax) $ - $ 1,505 -100.00%
Net Income Available
to Common
Shareholders $ 26,431 $ 23,561 12.18%
BASIC EARNINGS PER SHARE $ 1.82 $ 1.63 11.66%
DILUTED EARNINGS PER SHARE $ 1.79 $ 1.61 11.18%
BASIC AVERAGE SHARES 14,558,031 14,415,570 0.99%
DILUTED AVERAGE SHARES 14,738,078 14,619,560 0.81%
PERFORMANCE RATIOS:
Net Interest Margin (FTE) 4.40% 4.88% -9.84%
Return on Average Assets 1.11% 1.12% -0.89%
Return on Average Equity 15.89% 17.26% -7.94%
(1) Reflects the restatement of the six months ended June 30, 2002 for
the nonamortization of goodwill in accordance with SFAS No. 147.
INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEET AND AVERAGE RATE DATA
(Unaudited - Dollars in Thousands)
Three Months Ended December 31,
2003
Interest
Ending Average Earned/ Yield/
Balance Balance Paid Rate
Interest-earning Assets:
Federal Funds Sold and Assets
Purchased
Under Resale Agreement $ - $ 0 - -
Trading Assets 1,171 1,146 4 1.40%
Taxable Investment Securities 603,095 634,316 7,106 4.48%
Non-taxable Investment
Securities (1) 68,213 68,065 1,115 6.55%
Loans (1) 1,581,135 1,562,790 23,546 6.03%
Total Interest-Earning Assets $2,253,614 $2,266,317 31,771 5.61%
Cash and Due from Banks 75,495 62,721
Other Assets 107,646 103,206
Total Assets $2,436,755 $2,432,244
Interest-bearing Liabilities:
Savings and Interest Checking
Accounts $ 535,870 $ 539,447 762 0.57%
Money Market & Super Interest
Checking Accounts 347,530 359,603 1,079 1.20%
Time Deposits 451,486 455,758 2,498 2.19%
Federal Funds Sold and Assets
Purchased
Under Resale Agreement 39,425 46,540 102 0.88%
Treasury Tax and Loan Notes 4,808 2,915 3 0.41%
Federal Home Loan Bank borrowings 371,136 344,047 3,164 3.68%
Total Interest-Bearing Liabilities$1,750,255 $1,748,310 7,608 1.74%
Demand Deposits 448,452 449,200
Company-Obligated Mandatorily
Redeemable Securities of Subsidiary
Holding Solely Parent Company
Debentures of the Corporation 47,857 47,843
Other Liabilities 18,344 18,351
Total Liabilities $2,264,908 $2,263,704
Stockholders' Equity 171,847 168,540
Total Liabilities and
Stockholders' Equity $2,436,755 $2,432,244
Net Interest Income $24,163
Interest Rate Spread (2) 3.87%
Net Interest Margin 4.26%
Three Months Ended
December 31,
2002
Interest
Average Earned/ Yield/
Balance Paid Rate
Interest-earning Assets:
Federal Funds Sold and Assets Purchased
Under Resale Agreement $ 11,986 $ 48 1.60%
Trading Assets 1,052 5 1.90%
Taxable Investment Securities 662,061 9,418 5.69%
Non-taxable Investment Securities (1) 54,940 959 6.98%
Loans (1) 1,395,325 24,436 7.01%
Total Interest-Earning Assets $2,125,364 $ 34,866 6.56%
Cash and Due from Banks 59,529
Other Assets 95,588
Total Assets $2,280,481
Interest-bearing Liabilities:
Savings and Interest Checking Accounts $ 446,424 $ 570 0.51%
Money Market & Super Interest Checking
Accounts 338,324 1,172 1.39%
Time Deposits 475,725 3,518 2.96%
Federal Funds Sold and Assets Purchased
Under Resale Agreement 66,280 189 1.14%
Treasury Tax and Loan Notes 4,227 9 0.85%
Federal Home Loan Bank borrowings 291,063 3,726 5.12%
Total Interest-Bearing Liabilities $1,622,043 $ 9,184 2.26%
Demand Deposits 420,207
Company-Obligated Mandatorily
Redeemable Securities of Subsidiary
Holding Solely Parent Company
Debentures of the Corporation 47,756
Other Liabilities 34,011
Total Liabilities $2,124,017
Stockholders' Equity 156,464
Total Liabilities and Stockholders'
Equity $2,280,481
Net Interest Income $25,682
Interest Rate Spread (2) 4.30%
Net Interest Margin 4.83%
(1) The total amount of adjustment to present interest income and
yield on a fully tax-equivalent basis is $473 for the three months
ended December 31, 2003 and $401 for the three months ended
December 31, 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 percentage of
average interest-earning assets.
INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEET AND AVERAGE RATE DATA
(Unaudited - Dollars in Thousands)
Twelve Months Ended December 31,
2003
Interest
Ending Average Earned/ Yield/
Balance Balance Paid Rate
Interest-earning Assets:
Federal Funds Sold and Assets
Purchased
Under Resale Agreement $ - $ 34 - -
Trading Assets 1,171 1,116 36 3.23%
Taxable Investment Securities 603,095 639,361 29,724 4.65%
Non-taxable Investment Securities
(1) 68,213 64,967 4,416 6.80%
Loans (1) 1,581,135 1,512,997 95,994 6.34%
Total Interest-Earning Assets $2,253,614 $2,218,475 130,170 5.87%
Cash and Due from Banks 75,495 64,529
Other Assets 107,646 100,618
Total Assets $2,436,755 $2,383,622
Interest-bearing Liabilities:
Savings and Interest Checking
Accounts $ 535,870 $ 494,498 2,302 0.47%
Money Market & Super Interest
Checking Accounts 347,530 350,118 4,278 1.22%
Time Deposits 451,486 462,453 11,222 2.43%
Federal Funds Sold and Assets
Purchased
Under Resale Agreement 39,425 51,803 482 0.93%
Treasury Tax and Loan Notes 4,808 2,764 13 0.47%
Federal Home Loan Bank borrowings 371,136 356,152 14,237 4.00%
Total Interest-Bearing Liabilities$1,750,255 $1,717,788 32,534 1.89%
Demand Deposits 448,452 428,396
Company-Obligated Mandatorily
Redeemable Securities of Subsidiary
Holding Solely Parent Company
Debentures of the Corporation 47,857 47,814
Other Liabilities 18,344 23,256
Total Liabilities $2,264,908 $2,217,254
Stockholders' Equity 171,847 166,368
Total Liabilities and
Stockholders' Equity $2,436,755 $2,383,622
Net Interest Income $97,636
Interest Rate Spread (2) 3.98%
Net Interest Margin 4.40%
Twelve Months Ended
December 31,
2002
Interest
Average Earned/ Yield/
Balance Paid Rate
Interest-earning Assets:
Federal Funds Sold and Assets Purchased
Under Resale Agreement $ 20,692 $ 378 1.83%
Trading Assets 1,115 26 2.33%
Taxable Investment Securities 658,272 39,191 5.95%
Non-taxable Investment Securities (1) 55,396 3,884 7.01%
Loans (1) 1,345,720 98,950 7.35%
Total Interest-Earning Assets $2,081,195 $ 142,429 6.84%
Cash and Due from Banks 59,631
Other Assets 102,075
Total Assets $2,242,901 $
Interest-bearing Liabilities:
Savings and Interest Checking Accounts $ 426,104 $ 2,994 0.70%
Money Market & Super Interest Checking
Accounts 322,539 5,594 1.73%
Time Deposits 499,475 16,282 3.26%
Federal Funds Sold and Assets Purchased
Under Resale Agreement 68,796 795 1.16%
Treasury Tax and Loan Notes 4,267 44 1.03%
Federal Home Loan Bank borrowings 297,813 15,085 5.07%
Total Interest-Bearing Liabilities $1,618,994 $ 40,794 2.52%
Demand Deposits 398,901
Company-Obligated Mandatorily
Redeemable Securities of Subsidiary
Holding Solely Parent Company
Debentures of the Corporation 53,608
Other Liabilities 26,182
Total Liabilities $2,097,685
Stockholders' Equity 145,216
Total Liabilities and Stockholders'
Equity $2,242,901
Net Interest Income $101,635
Interest Rate Spread (2) 4.32%
Net Interest Margin 4.88%
(1) The total amount of adjustment to present interest income and
yield on a fully tax-equivalent basis is $1.864 for the twelve
months ended December 31, 2003 and $1,604 for the twelve months
ended December 31, 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 percentage of
average interest-earning assets.
As Of
December 31, December 31,
Asset Quality 2003 2002
Non-performing Loans 3,514 3,077
Non-performing Assets 3,514 3,077
Net charge-offs (year to date) 1,645 1,453
Net charge-offs to average loans
(annualized) 0.11% 0.11%
Loans 90 days past due & still accruing 156 261
Non-performing Loans/Gross Loans 0.22% 0.21%
Allowance for Loan Loss/Non-performing
Loans 659.16% 695.06%
Loans/Total Deposits 88.66% 84.77%
Allowance for Loan Loss/Total Loans 1.46% 1.49%
Total Allowances for Loan Loss (including
Credit Quality
Discount)/Non-performing Loans 659.16% 711.89%
Total Allowances for Loan Loss (including
Credit Quality Discount)/Total Loans 1.46% 1.53%
Financial Ratios
Book Value per Share $11.75 $11.15
Tangible Capital/Tangible Asset 5.65% 5.56%
Tangible Book Value per Share $9.27 $8.64
Tangible Book Value per Share
(proforma to include
the deductibility of goodwill) $10.14 $9.52
Capital Adequacy
Tier one leverage capital ratio (1) 7.60% 7.10%
(1) Estimated number for December 31, 2003.
CONTACT: Independent Bank Corp.
Chris Oddleifson, 781-982-6660
or
Denis K. Sheahan, 781-982-6341
SOURCE: Independent Bank Corp.