Solid Commercial Loan Growth, Strong Net Interest Margin and Stable
Credit
Quality Drive Performance
ROCKLAND, Mass.--(BUSINESS WIRE)--
Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust
Company, today announced net income of $9.1 million for the fourth
quarter of 2009. This represents an increase of 33.0% from the $6.8
million recorded in the third quarter of 2009. On a diluted earnings per
share basis, the Company reported earnings of $0.43 for the quarter as
compared to $0.33 for the previous quarter.
For the year ended December 31, 2009, net income was $23.0 million
compared to $24.0 million in prior year. Net income available to common
shareholders in 2009 was $17.3 million and included the preferred
dividends related to the Treasury's Capital Purchase Program. This
compares to net income available to common shareholders of $24.0 million
in 2008. On a diluted earnings per share basis, the Company reported
earnings of $0.88 for the year ended December 31, 2009 compared to $1.52
at December 31, 2008. On an operating basis, year-to-date net income was
$28.0 million, or $1.43 on a diluted earnings per share basis compared
to $25.3 million or $1.61 on a diluted earnings per share basis at
December 31, 2008.
Christopher Oddleifson, President and Chief Executive Officer,
stated, "I'm pleased with Rockland Trust's performance throughout 2009.
In almost every category we've managed to outperform our peer group. Our
long-term strategy of building deep relationships with customers we know
continues to pay dividends, both on the deposit and loan side. During
difficult times, consumers and businesses want to work with a bank they
can trust, and one that shares a strong bond with the community.
Rockland Trust has been here for more than 100 years, and by providing
more personalized service and access to decision makers than some of our
competitors we continue to demonstrate why we're the bank where each
relationship matters."
BALANCE SHEET
Total assets increased by $48.0 million, or 1.1%, to $4.5 billion at
December 31, 2009 as compared to September 30, 2009.
Total loans were $3.4 billion at December 31, 2009, an increase of $8.0
million, or 0.2% 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 7.9% and 4.0%,
respectively. This was offset by a decline in the residential real
estate and other consumer lending categories.
Total deposits increased by $94.3 million, or 2.9%, during the quarter
ending December 31, 2009, primarily due to increases in municipal
deposits. The Company continued its focus on core deposits, which grew
by $114.0 million or 4.9% in the fourth quarter and represented 72.8% of
total deposits at December 31, 2009.
Stockholders' equity at December 31, 2009 totaled $412.6 million as
compared to $406.6 million at September 30, 2009. The Tier 1 leverage
capital ratio at December 31, 2009 was 7.85%, indicating the Company's
maintenance of its well-capitalized position.
NET INTEREST INCOME
The net interest margin in the fourth quarter of 2009 was 4.01% compared
to 4.05% in the linked quarter period, representing a decrease of
$210,000 in net interest income.
NON-INTEREST INCOME
The Company recorded non-interest income of $10.0 million during the
fourth quarter of 2009, an increase of $5.6 million when compared to the
quarter ended September 30, 2009. The change in non-interest income is
composed of the following:
-- Service charges on deposit accounts decreased by $72,000, or (1.6%).
-- Wealth management revenue increased by $451,000, or 19.8%, due to
general market appreciation and strong sales results. Assets under
management in the wealth management division were $1.3 billion at
December 31, 2009.
-- Mortgage banking income increased by $855,000 largely due to a
revaluation of the mortgage servicing asset in the third quarter as a
result of refinancing activity. The balance of the mortgage servicing
asset was $2.2 million at December 31, 2009 and September 30, 2009,
respectively, and loans serviced amounted to $350.5 million and $366.6
million, respectively.
-- The Company recorded total credit related impairment charges on certain
pooled trust preferred securities and one private mortgage-backed
security of $2.2 million and $5.1 million, pre-tax, for the quarters
ending December 31, 2009 and September 30, 2009, respectively. The table
below shows the remaining book value of pooled and single issuer trust
preferred securities and private mortgage-backed securities as of
December 31, 2009:
Total
Cumulative
Credit
Amortized Unrealized Non-Credit Fair Related
As of December Cost* Loss OTTI Value Impairment
31, 2009
(Dollars in thousands)
Pooled Trust
Preferred
Securities
A Tranche $ 2,829 ($1,154 ) $ - $ 1,675 $ -
B Tranche 1,887 (1,228 ) - $ 659 -
C Tranche 3,989 - (3,728 ) $ 261 (5,406 )
D Tranche - - - - (4,471 )
Total Pooled
Trust Preferred 8,705 (2,382 ) (3,728 ) 2,595 (9,877 )
Securities
Single Issuer
Trust Preferred 5,000 (1,990 ) - 3,010 -
Securities -
AFS
Single Issuer
Trust Preferred 9,773 (661 ) - 9,112 -
Securities -
HTM
Private
Mortgage-Backed 15,640 (681 ) (670 ) 14,289 (317 )
Securities
$ 39,118 ($5,714 ) ($4,398 ) $ 29,006 ($10,194 )
*Amortized cost reflects all credit related impairment
through December 31, 2009.
-- Other non-interest income increased by $1.3 million or 79.8%. The
increase is due to fee revenue associated with loan level derivatives of
$305,000, a gain on the disposition of other real estate owned of
$586,000, and tax credits resulting in income of $413,000.
NON-INTEREST EXPENSE
The Company recorded non-interest expense of $34.6 million in the fourth
quarter of 2009, an increase of $2.3 million, or 7.3%, when compared to
the quarter ended September 30, 2009. Significant changes of
non-interest expense include the following:
-- Salaries and employee benefits increased by $810,000, or 4.6%, primarily
attributable to incentive compensation and sales commissions.
-- Occupancy and equipment expense decreased by $137,000, or (3.5%).
-- Data processing and facilities management decreased by $402,000, or
(25.4%), due to timing differences.
-- Other non-interest expense increased by $2.1 million, or 26.8%, which is
primarily attributable to increases in loan work out costs of $591,000,
advertising of $540,000, other losses and charge-offs of $366,000, OREO
valuation adjustments of $147,000, and Federal Home Loan Bank borrowing
prepayment fee of $144,000.
The Company reported a return on average assets and a return on average
common equity in the fourth quarter of 2009 of 0.82% and 8.82%,
respectively, as compared to 0.62% and 6.73% for the quarter ended
September 30, 2009.
ASSET QUALITY
The allowance for loan losses increased to $42.4 million at December 31,
2009 as compared to $41.4 million at September 30, 2009. Nonperforming
loans declined slightly to $36.2 million, or 1.07% of total loans at
December 31, 2009, from $36.9 million, or 1.09% of total loans at
September 30, 2009. The Company's allowance for loan losses as a
percentage of loans were 1.25% and 1.22% at December 31, 2009 and
September 30, 2009, respectively. These ratios are inclusive of loans
acquired at fair value.
The provision for loan losses was $4.4 million for the quarters ended
December 31, 2009 and September 30, 2009. Net charge-offs were $3.4
million, or 0.40% annualized of average loans for the quarter ending
December 31, 2009 compared to $3.2 million or 0.37% for the quarter
ending September 30, 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 fourth quarter earnings at 10:00 a.m. Eastern
Time on Friday, January 22, 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: 436609. The web cast replay will be available until January
22, 2011 and the telephone replay will be available until February 8,
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(R),
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 Dec. 2009 Dec. 2009
BALANCE December 31, September 30, December 31, vs. vs.
SHEETS
2009 2009 2008 Sept. Dec. 2008
2009
Assets
Cash and Due $ 121,905 $ 65,514 $ 50,007 86.07 % 143.78 %
From Banks
Fed Funds
Sold and - - 100 n/a -100.00 %
Short Term
Investments
Securities
Trading 6,171 23,090 2,701 -73.27 % 128.47 %
Assets
Securities
Available for 508,650 546,125 600,291 -6.86 % -15.27 %
Sale
Securities
Held to 93,410 83,063 32,789 12.46 % 184.88 %
Maturity
Total 608,231 652,278 635,781 -6.75 % -4.33 %
Securities
Loans Held 13,466 14,160 8,351 -4.90 % 61.25 %
for Sale
Loans
Commercial
and 373,531 371,092 270,832 0.66 % 37.92 %
Industrial
Commercial 1,614,474 1,546,206 1,126,295 4.42 % 43.34 %
Real Estate
Commercial 175,312 201,196 171,955 -12.87 % 1.95 %
Construction
Small 82,569 84,135 86,670 -1.86 % -4.73 %
Business
Total 2,245,886 2,202,629 1,655,752 1.96 % 35.64 %
Commercial
Residential 555,306 576,575 413,024 -3.69 % 34.45 %
Real Estate
Residential 10,736 14,783 10,950 -27.38 % -1.95 %
Construction
Total 566,042 591,358 423,974 -4.28 % 33.51 %
Residential
Consumer - 471,862 467,213 406,240 1.00 % 16.15 %
Home Equity
Consumer - 79,273 92,093 127,956 -13.92 % -38.05 %
Auto
Consumer - 32,452 34,246 38,614 -5.24 % -15.96 %
Other
Total 583,587 593,552 572,810 -1.68 % 1.88 %
Consumer
Total Loans 3,395,515 3,387,539 2,652,536 0.24 % 28.01 %
Less -
Allowance for (42,361 ) (41,357 ) (37,049 ) 2.43 % 14.34 %
Loan Losses
Net Loans 3,353,154 3,346,182 2,615,487 0.21 % 28.20 %
Federal Home
Loan Bank 35,854 36,357 24,603 -1.38 % 45.73 %
Stock
Bank Premises 44,235 41,963 36,429 5.41 % 21.43 %
and Equipment
Goodwill and
Core Deposit 143,730 144,152 125,710 -0.29 % 14.33 %
Intangible
Other Assets 161,446 133,397 132,001 21.03 % 22.31 %
Total Assets $ 4,482,021 $ 4,434,003 $ 3,628,469 1.08 % 23.52 %
Liabilities
and
Stockholders'
Equity
Deposits
Demand $ 721,792 $ 702,159 $ 519,326 2.80 % 38.99 %
Deposits
Savings and
Interest 1,073,990 965,694 725,313 11.21 % 48.07 %
Checking
Accounts
Money Market 661,731 675,269 488,345 -2.00 % 35.50 %
Time
Certificates 917,781 937,854 846,096 -2.14 % 8.47 %
of Deposit
Total 3,375,294 3,280,976 2,579,080 2.87 % 30.87 %
Deposits
Borrowings
Federal Home
Loan Bank 362,936 396,218 429,634 -8.40 % -15.52 %
Borrowings
Fed Funds
Purchased and
Assets Sold
Under
Repurchase 190,452 188,707 170,880 0.92 % 11.45 %
Agreements
Junior
Subordinated 61,857 61,857 61,857 0.00 % 0.00 %
Debentures
Subordinated 30,000 30,000 30,000 0.00 % 0.00 %
Debentures
Other 2,152 2,418 2,946 -11.00 % -26.95 %
Borrowings
Total 647,397 679,200 695,317 -4.68 % -6.89 %
Borrowings
Total
Deposits and 4,022,691 3,960,176 3,274,397 1.58 % 22.85 %
Borrowings
Other 46,681 67,252 48,798 -30.59 % -4.34 %
Liabilities
Stockholders'
Equity
Common Stock 209 209 163 0.00 % 28.22 %
Additional
Paid in 225,088 224,848 137,488 0.11 % 63.71 %
Capital
Retained 184,599 179,245 177,493 2.99 % 4.00 %
Earnings
Accumulated
Other
Comprehensive 2,753 2,273 (9,870 ) 21.12 % -127.89 %
Income/
(Loss), Net
of Tax
Total
Stockholders' 412,649 406,575 305,274 1.49 % 35.17 %
Equity
Total
Liabilities
and $ 4,482,021 $ 4,434,003 $ 3,628,469 1.08 % 23.52 %
Stockholders'
Equity
INDEPENDENT BANK CORP. FINANCIAL SUMMARY
(Unaudited - Dollars in Thousands, Except Per Share Data)
CONSOLIDATED Three Months Ended
STATEMENTS OF INCOME
% Change % Change
December 31, September 30, December 31, Dec. 2009 Dec. 2009
vs. vs.
2009 2009 2008 Sept. Dec. 2008
2009
INTEREST INCOME
Interest on Fed
Funds Sold and Short $ 18 $ 4 $ 51 350.00 % -64.71 %
Term Investments
Interest and
Dividends on 7,096 7,644 7,196 -7.17 % -1.39 %
Securities
Interest on Loans 45,637 45,773 38,048 -0.30 % 19.95 %
Interest on Loans 132 169 32 -21.89 % 312.50 %
Held for Sale
Total Interest 52,883 53,590 45,327 -1.32 % 16.67 %
Income
INTEREST EXPENSE
Interest on Deposits 6,869 7,446 9,964 -7.75 % -31.06 %
Interest on Borrowed 5,316 5,236 5,023 1.53 % 5.83 %
Funds
Total Interest 12,185 12,682 14,987 -3.92 % -18.70 %
Expense
Net Interest Income 40,698 40,908 30,340 -0.51 % 34.14 %
Less - Provision for 4,424 4,443 5,575 -0.43 % -20.65 %
Loan Losses
Net Interest Income
after Provision for 36,274 36,465 24,765 -0.52 % 46.47 %
Loan Losses
NON-INTEREST INCOME
Service Charges on 4,541 4,613 3,914 -1.56 % 16.02 %
Deposit Accounts
Wealth Management 2,729 2,278 2,580 19.80 % 5.78 %
Mortgage Banking 1,280 425 497 201.18 % 157.55 %
Income
BOLI Income 813 713 739 14.03 % 10.01 %
Gross Loss on
Write-Down of 2 (5,103 ) (4,646 ) -100.04 % -100.04 %
certain Investments
to Fair Value
Less: Non-Credit
Related (2,167 ) (33 ) - 6466.67 % n/a
Other-Than-Temporary
Impairment
Net Loss on
Write-Down of (2,165 ) (5,136 ) (4,646 ) -57.85 % -53.40 %
Certain Investments
to Fair Value
Other Non-Interest 2,831 1,573 723 79.97 % 291.56 %
/Income
Total Non-Interest 10,029 4,466 3,807 124.56 % 163.44 %
Income
NON-INTEREST EXPENSE
Salaries and 18,537 17,727 14,468 4.57 % 28.12 %
Employee Benefits
Occupancy and 3,848 3,985 3,419 -3.44 % 12.55 %
Equipment Expenses
Data Processing and
Facilities 1,178 1,580 1,403 -25.44 % -16.04 %
Management
Merger & Acquisition - 41 - -100.00 % n/a
Expense
FDIC assessment 1,320 1,267 559 4.18 % 136.14 %
Other Non-Interest 9,765 7,704 6,741 26.75 % 44.86 %
Expense
Total Non-Interest 34,648 32,304 26,590 7.26 % 30.30 %
Expense
INCOME BEFORE INCOME 11,655 8,627 1,982 35.10 % 488.04 %
TAXES
PROVISION FOR INCOME 2,555 1,786 (1,039 ) 43.06 % -345.91 %
TAXES
NET INCOME $ 9,100 $ 6,841 $ 3,021 33.02 % 201.22 %
NET (LOSS)/INCOME
AVAILABLE TO COMMON $ 9,100 $ 6,841 $ 3,021 33.02 % 201.22 %
SHAREHOLDERS
BASIC EARNINGS PER $ 0.43 $ 0.33 $ 0.19 30.30 % 126.32 %
SHARE
DILUTED EARNINGS PER $ 0.43 $ 0.33 $ 0.18 30.30 % 138.89 %
SHARE
BASIC AVERAGE SHARES 20,931,154 20,921,635 16,280,552
DILUTED AVERAGE 20,975,807 20,969,889 16,331,118
SHARES
PERFORMANCE RATIOS:
Net Interest Margin 4.01 % 4.05 % 3.82 %
(FTE)
Return on Average 0.82 % 0.62 % 0.34 %
Assets
Return on Average 8.82 % 6.73 % 3.92 %
Common Equity
RECONCILIATION TABLE
- NON-GAAP FINANCIAL
INFORMATION
NET INCOME AVAILABLE
TO COMMON $ 9,100 $ 6,841 $ 3,021 33.02 % 201.22 %
SHAREHOLDERS (GAAP)
Non-Interest Expense
Components
Add - Merger and
Acquisition - 27 -
Expenses, net of tax
Add - Litigation - - -
Reserve, net of tax
Deemed Preferred - - -
Stock Dividend
NET OPERATING $ 9,100 $ 6,868 $ 3,021 32.52 % 201.22 %
EARNINGS
Diluted Earnings Per
Share, on an $ 0.43 $ 0.33 $ 0.18 30.30 % 138.89 %
Operating Basis
CONSOLIDATED STATEMENTS OF INCOME
Twelve Months % Change
December 31, December 31, Dec. 2009 vs.
2009 2008 Dec. 2008
INTEREST INCOME
Interest on Fed Funds Sold and $ 290 $ 148 95.95 %
Short Term Investments
Interest and Dividends on 29,642 24,187 22.55 %
Securities
Interest on Loans 172,128 150,780 14.16 %
Interest on Loans Held for Sale 629 325 93.54 %
Total Interest Income 202,689 175,440 15.53 %
INTEREST EXPENSE
Interest on Deposits 31,163 38,896 -19.88 %
Interest on Borrowed Funds 20,832 20,030 4.00 %
Total Interest Expense 51,995 58,926 -11.76 %
Net Interest Income 150,694 116,514 29.34 %
Less - Provision for Loan Losses 17,335 10,888 59.21 %
Net Interest Income after 133,359 105,626 26.26 %
Provision for Loan Losses
NON-INTEREST INCOME
Service Charges on Deposit 17,060 15,595 9.39 %
Accounts
Wealth Management 10,047 11,133 -9.75 %
Mortgage Banking Income 4,857 3,072 58.11 %
BOLI Income 2,939 2,555 15.03 %
Net Gain/(Loss) on Sale of 1,354 (609 ) -322.33 %
Securities and Derivatives
Gain Resulting From early
Termination of Hedging 3,778 - n/a
Relationship
Gross Loss on Write-Down of (7,382 ) (7,211 ) 2.37 %
certain Investments to Fair Value
Less: Non-Credit Related (1,576 ) - n/a
Other-Than-Temporary Impairment
Net Loss on Write-Down of Certain (8,958 ) (7,211 ) 24.23 %
Investments to Fair Value
Other Non-Interest (Loss)/Income 7,115 4,497 58.22 %
Total Non-Interest Income 38,192 29,032 31.55 %
NON-INTEREST EXPENSE
Salaries and Employee Benefits 68,257 58,275 17.13 %
Occupancy and Equipment Expenses 15,673 12,757 22.86 %
Data Processing and Facilities 5,779 5,574 3.68 %
Management
Merger & Acquisition Expense 12,423 1,120 1009.20 %
WorldCom Bond Loss Recovery - (418 ) -100.00 %
FDIC assessment 6,975 1,388 402.52 %
Other Non-Interest Expense 32,708 25,447 28.53 %
Total Non-Interest Expense 141,815 104,143 36.17 %
INCOME BEFORE INCOME TAXES 29,736 30,515 -2.55 %
PROVISION FOR INCOME TAXES 6,747 6,551 2.99 %
NET INCOME $ 22,989 $ 23,964 -4.07 %
PREFERRED STOCK DIVIDEND $ 5,698 $ - -
NET INCOME AVAILABLE TO COMMON $ 17,291 $ 23,964 -27.85 %
SHAREHOLDERS
BASIC EARNINGS PER SHARE $ 0.88 $ 1.53 -42.48 %
DILUTED EARNINGS PER SHARE $ 0.88 $ 1.52 -42.11 %
BASIC AVERAGE SHARES 19,642,965 15,694,555
DILUTED AVERAGE SHARES 19,673,156 15,759,482
PERFORMANCE RATIOS:
Net Interest Margin (FTE) 3.89 % 3.95 %
Return on Average Assets 0.40 % 0.73 %
Return on Average Common Equity 4.29 % 8.20 %
RECONCILIATION TABLE - NON-GAAP
FINANCIAL INFORMATION
NET INCOME AVAILABLE TO COMMON $ 17,291 $ 23,964 -27.85 %
SHAREHOLDERS (GAAP)
Non-Interest Income Components
(Less)/Add - Net (Gain)/ Loss on (880 ) 396
Sale of Securities, net of tax
Less - Gain Resulting From early
Termination of Hedging (2,456 ) -
Relationship
Non-Interest Expense Components
Add - Merger and Acquisition 9,706 728
Expenses, net of tax
Add - Litigation Reserve, net of - 488
tax
Less - WorldCom Bond Loss - (272 )
Recovery, net of tax
Deemed Preferred Stock Dividend 4,384 -
NET OPERATING EARNINGS $ 28,045 $ 25,304 10.83 %
Diluted Earnings Per Share, on an $ 1.43 $ 1.61 -11.18 %
Operating Basis
INDEPENDENT BANK CORP. FINANCIAL SUMMARY
(Unaudited - Dollars in Thousands, Except Per Share Data)
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
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 2009 and 2008 as indicated by the table below. 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.
Three Months Ended Twelve Months Ended
% Change % Change % Change
December September December Dec. 2009 Dec. December December Dec. 2009
31, 30, 31, vs. 2009 vs. 31, 31, vs.
2009 2009 2008 Sept. Dec. 2009 2008 Dec. 2008
2009 2008
Non-Interest Income GAAP $ 10,029 $ 4,466 $ 3,807 124.56 % 163.44 % $ 38,192 $ 29,032 31.55 %
(Less)/Add - Net (Gain)/ Loss - - - n/a n/a (1,354 ) 609 -322.33 %
on Sale of Securities
(Less) Gain Resulting From
early Termination of Hedging - - - n/a n/a (3,778 ) - n/a
Relationship
Add -
Other-Than-Temporary-Impairment 2,165 5,136 4,646 -57.85 % -53.40 % 8,958 7,211 24.23 %
on Securities
Non-Interest Income as Adjusted $ 12,194 $ 9,602 $ 8,453 26.99 % 44.26 % $ 42,018 $ 36,852 14.02 %
Non-Interest Expense GAAP $ 34,648 $ 32,304 $ 26,590 7.26 % 30.30 % $ 141,815 $ 104,143 36.17 %
Less - Merger & Acquisition - (41 ) - -100.00 % n/a (12,423 ) (1,120 ) 1009.20 %
Expenses
Less/Add - Litigation Reserve - - - n/a n/a - 750 -100.00 %
Add - WorldCom Bond Loss - - - n/a n/a - 418 -100.00 %
Recovery
Non-Interest Expense as $ 34,648 $ 32,263 $ 26,590 7.39 % 30.30 % $ 129,392 $ 104,191 24.19 %
Adjusted
ASSET QUALITY
For the Period Ending
December September December
31, 30, 31,
2009 2009 2008
(Dollars in Thousands, Except Per
Share Data)
Nonperforming Loans
Commercial & Industrial Loans $ 4,205 $ 3,744 $ 1,942
Small Business Loans 793 969 1,111
Commercial Real Estate Loans 18,525 18,511 12,370
Residential Real Estate Loans 10,829 11,625 9,394
Installment Loans - Home Equity 1,166 1,237 1,090
Installment Loans - Auto 242 504 813
Installment Loans - Other 423 347 213
Total Nonperforming Loans $ 36,183 $ 36,937 26,933
Non-Accrual Securities 920 1,134 910
Other Assets in Possession 148 255 231
Other Real Estate Owned 3,994 6,491 1,809
Nonperforming Assets 41,245 44,817 29,883
Nonperforming Loans/Gross Loans 1.07 % 1.09 % 1.02 %
Allowance for Loan 117.07 % 111.97 % 137.56 %
Losses/Nonperforming Loans
Gross Loans/Total Deposits 100.60 % 103.25 % 102.85 %
Allowance for Loan Losses/Total 1.25 % 1.22 % 1.40 %
Loans
Net charge-offs $ 3,419 $ 3,154 $ 1,813
(quarter-to-date)
Net charge-offs to average 0.40 % 0.37 % 0.28 %
loans ( quarter annualized)
Net charge-off (year-to-date) $ 12,023 $ 8,603 $ 6,194
Net charge-offs to average 0.38 % 0.28 % 0.25 %
loans
Financial Ratios
Book Value per Common Share $ 19.71 $ 19.43 $ 18.75
Tangible Equity Ratio:
Tangible Common 6.20 % 6.12 % 5.13 %
Capital/Tangible Assets
Tangible Common
Capital/Tangible Asset
(proforma to include
the tax deductibility of
goodwill and exclude impact of 6.65 % 6.58 % 5.67 %
CPP) - Non-GAAP
Tangible Common Book Value per
Share (proforma to include
the tax deductibility of
goodwill and exclude impact of $ 13.85 $ 13.56 $ 12.19
CPP) - Non-GAAP
Capital Adequacy
Tier one leverage capital ratio 7.85 % 7.74 % 7.55 %
(1)
(1) Estimated number for December 31, 2009
INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED
AVERAGE BALANCE
SHEETS AND Three Months Ended
AVERAGE RATE
DATA
(Unaudited -
Dollars in December 31, 2009 September 30, 2009 December 31, 2008
Thousands)
Interest Interest Interest
Average Earned/ Yield/ Average Earned/ Yield/ Average Earned/ Yield/
Balance Paid Rate Balance Paid Rate Balance Paid Rate
Interest-Earning
Assets:
Intereset
Bearing Cash,
Federal Funds $ 50,983 $ 18 0.14 % $ 4,060 $ 4 0.39 % $ 19,979 $ 51 1.02 %
Sold,and Short
Term Investments
Securities:
Trading Assets 8,706 61 2.80 % 22,941 109 1.90 % 3,036 45 5.93 %
Taxable
Investment 602,679 6,833 4.54 % 620,183 7,317 4.72 % 533,742 6,782 5.08 %
Securities
Non-taxable
Investment 19,343 311 6.43 % 20,373 336 6.60 % 38,461 568 5.91 %
Securities (1)
Total 630,728 7,205 4.57 % 663,497 7,762 4.68 % 575,239 7,395 5.14 %
Securities:
Loans (1) 3,389,219 45,759 5.40 % 3,375,581 45,890 5.44 % 2,614,797 38,168 5.84 %
Loans Held for 10,961 132 4.82 % 15,831 169 4.27 % 3,141 32 4.08 %
Sale
Total
Interest-Earning $ 4,081,891 $ 53,114 5.20 % $ 4,058,969 $ 53,825 5.30 % $ 3,213,156 $ 45,646 5.68 %
Assets
Cash and Due 64,799 67,156 65,772
from Banks
Federal Home 36,351 36,357 24,603
Loan Bank Stock
Other Assets 281,314 280,147 244,772
Total Assets $ 4,464,355 $ 4,442,629 $ 3,548,303
Interest-bearing
Liabilities:
Deposits:
Savings and
Interest $ 977,673 $ 1,185 0.48 % $ 969,676 $ 1,246 0.51 % $ 720,695 $ 1,490 0.83 %
Checking
Accounts
Money Market 692,072 1,539 0.89 % 677,851 1,597 0.94 % 498,845 2,356 1.89 %
Time Deposits 931,510 4,145 1.78 % 948,596 4,603 1.94 % 859,894 6,118 2.85 %
Total
interest-bearing $ 2,601,255 $ 6,869 1.06 % $ 2,596,123 $ 7,446 1.15 % $ 2,079,434 $ 9,964 1.92 %
deposits:
Borrowings:
Federal Home
Loan Bank $ 383,331 $ 2,971 3.10 % $ 395,878 $ 2,901 2.93 % $ 309,653 $ 2,335 3.02 %
Borrowings
Federal Funds
Purchased and
Assets Sold
Under Repurchase 191,229 871 1.82 % 184,181 857 1.86 % 168,343 1,144 2.72 %
Agreement
Junior
Subordinated 61,857 921 5.96 % 61,857 931 6.02 % 61,857 995 6.43 %
Debentures
Subordinated 30,000 553 7.37 % 30,000 547 7.29 % 30,000 546 7.28 %
Debentures
Other Borrowings 2,227 - 0.00 % 2,108 - 0.00 % 2,736 3 0.44 %
Total 668,644 5,316 3.18 % 674,024 5,236 3.11 % 572,589 5,023 3.51 %
Borrowings:
Total
Interest-Bearing $ 3,269,899 $ 12,185 1.49 % $ 3,270,147 $ 12,682 1.55 % $ 2,652,023 $ 14,987 2.26 %
Liabilities
Demand Deposits 731,053 702,071 550,073
Other 50,791 63,821 38,261
Liabilities
Total $ 4,051,743 $ 4,036,039 $ 3,240,357
Liabilities
Stockholders' 412,612 406,590 307,946
Equity
Total
Liabilities and $ 4,464,355 $ 4,442,629 $ 3,548,303
Stockholders'
Equity
Net Interest $ 40,929 $ 41,143 $ 30,659
Income
Interest Rate 3.71 % 3.75 % 3.42 %
Spread (2)
Net Interest 4.01 % 4.05 % 3.82 %
Margin (3)
Supplemental
Information:
Total Deposits,
including Demand $ 3,332,308 $ 6,869 $ 3,298,194 $ 7,446 $ 2,629,507 $ 9,964
Deposits
Cost of Total 0.82 % 0.90 % 1.52 %
Deposits
Total Funding
Liabilities, $ 4,000,952 $ 12,185 $ 3,972,218 $ 12,682 $ 3,202,096 $ 14,987
including Demand
Deposits
Cost of Total
Funding 1.22 % 1.28 % 1.87 %
Liabilities
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is
$231, $235, and $319 for the three months ended December 31, 2009, September 30, 2009, and December 31, 2008,
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.
Twelve Months Ended
(Unaudited -
Dollars in December 31, 2009 December 31, 2008
Thousands)
Interest Interest
Average Earned/ Yield/ Average Earned/ Yield/
Balance Paid Rate Balance Paid Rate
Interest-Earning
Assets:
Interest Bearing
Cash, Federal
Funds Sold, and $ 67,296 $ 290 0.43 % $ 5,908 $ 148 2.51 %
Short Term
Investments
Securities:
Trading Assets 12,126 239 1.97 % 3,060 140 4.58 %
Taxable
Investment 605,453 28,456 4.70 % 447,343 22,359 5.00 %
Securities
Non-taxable
Investment 22,671 1,457 6.43 % 41,203 2,597 6.30 %
Securities (1)
Total 640,250 30,152 4.71 % 491,606 25,096 5.10 %
Securities:
Loans (1) 3,177,949 172,615 5.43 % 2,482,786 151,247 6.09 %
Loans Held for 14,320 629 4.39 % 6,242 325 5.21 %
Sale
Total
Interest-Earning $ 3,899,815 $ 203,686 5.22 % $ 2,986,542 $ 176,816 5.92 %
Assets
Cash and Due 65,509 65,992
from Banks
Federal Home 33,135 23,325
Loan Bank Stock
Other Assets 278,057 219,517
Total Assets $ 4,276,516 $ 3,295,376
Interest-bearing
Liabilities:
Deposits:
Savings and
Interest $ 913,881 $ 4,753 0.52 % $ 688,336 $ 6,229 0.90 %
Checking
Accounts
Money Market 639,231 6,545 1.02 % 472,065 9,182 1.95 %
Time Deposits 921,787 19,865 2.16 % 740,779 23,485 3.17 %
Total
interest-bearing $ 2,474,899 $ 31,163 1.26 % $ 1,901,180 $ 38,896 2.05 %
deposits:
Borrowings:
Federal Home
Loan Bank $ 409,551 $ 11,519 2.81 % $ 312,451 $ 10,714 3.43 %
Borrowings
Federal Funds
Purchased and
Assets Sold
Under Repurchase 180,632 3,396 1.88 % 154,440 4,663 3.02 %
Agreement
Junior
Subordinated 61,857 3,739 6.04 % 60,166 3,842 6.39 %
Debentures
Subordinated 30,000 2,178 7.26 % 10,410 750 7.20 %
Debentures
Other Borrowings 2,054 - 0.00 % 2,381 61 2.56 %
Total 684,094 20,832 3.05 % 539,848 20,030 3.71 %
Borrowings:
Total
Interest-Bearing $ 3,158,993 $ 51,995 1.65 % $ 2,441,028 $ 58,926 2.41 %
Liabilities
Demand Deposits 659,916 533,543
Other 54,697 28,692
Liabilities
Total $ 3,873,606 $ 3,003,263
Liabilities
Stockholders' 402,910 292,113
Equity
Total
Liabilities and $ 4,276,516 $ 3,295,376
Stockholders'
Equity
Net Interest $ 151,691 $ 117,890
Income
Interest Rate 3.58 % 3.51 %
Spread (2)
Net Interest 3.89 % 3.95 %
Margin (3)
Supplemental
Information:
Total Deposits,
including Demand $ 3,134,815 $ 31,163 $ 2,434,723 $ 38,896
Deposits
Cost of Total 0.99 % 1.60 %
Deposits
Total Funding
Liabilities, $ 3,818,909 $ 51,995 $ 2,974,571 $ 58,926
including Demand
Deposits
Cost of Total
Funding 1.36 % 1.98 %
Liabilities
(1) The total amount of adjustment to present interest income and yield on a
fully tax-equivalent basis is $997 and $1,376 for the twelve months ended
December 31, 2009, and December 31, 2008, 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.
Source: Independent Bank Corp.
Contact: Independent Bank Corp.
Chris Oddleifson, 781-982-6660
President and
Chief Executive Officer
or
Denis K. Sheahan, 781-982-6341
Chief Financial Officer