Strong Commercial Loan Generation Continues
Solid Credit Quality
ROCKLAND, Mass.--(BUSINESS WIRE)--
Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust
Company, today announced net income of $11.1 million for the third
quarter of 2010 compared to $8.0 million recorded in the second quarter.
On a diluted earnings per share basis, the Company reported earnings of
$0.53 for the quarter, an increase of 39.5% from $0.38 for the previous
quarter.
Christopher Oddleifson, President and Chief Executive Officer,
stated, “Our loan portfolios are weathering the difficult economic
environment extremely well, leading to a reduction in credit losses.
While overall loan growth was a challenge due to heavy commercial real
estate paydowns and payoffs, our commercial and industrial and home
equity loan portfolios both grew during the third quarter. All our loan
origination pipelines remain strong. Another indication of our health is
the growth of assets under management in our Investment Management
Group, which reached nearly $1.5 billion, 10.4% over the second quarter
level. Overall, we are very pleased with Rockland Trust’s third quarter
performance.”
BALANCE SHEET
Total assets remained at $4.7 billion at September 30, 2010, consistent
with the prior quarter ending June 30, 2010.
Total loans were $3.4 billion at September 30, 2010 and were essentially
level with the prior quarter. The Company sustained strong growth in the
commercial and industrial portfolio, which increased by $11.5 million,
or 2.7%, in the third quarter, as it continued to add high-quality
corporate customers. Commercial real estate origination volumes
maintained a healthy pace but total outstandings remained flat with the
prior quarter at $1.6 billion due to elevated levels of loan payoffs.
The Company’s commercial construction portfolio declined by $13.9
million, or 8.8%, as projects transitioned to permanent financing. The
home equity portfolio continued its steady upward trend, rising $19.2
million, or 3.8%. Residential real estate loans declined by $21.6
million, or 4.1%, as loans refinanced into longer-term, fixed-rate
loans, which are not commonly held in portfolio by the Company.
Total deposits decreased by $62.7 million, or 1.7%, during the quarter
ending September 30, 2010, primarily due to decreases in higher-cost
time deposits of $58.6 million as a result of the Company’s strategy to
create a funding mix that focuses on core deposits. Money market
deposits decreased by $29.4 million, mainly due to the seasonal cash
needs of municipalities. Partially offsetting those deposit decreases
were strong increases in demand deposits of $16.5 million, or 2.1%, and
a rise in savings and interest checking accounts of $8.8 million. Core
deposits have risen to 78.8% of total deposits at September 30, 2010,
while total cost of deposits declined further to 0.53% for the current
quarter, down 9 basis points from the prior period.
Securities balances are at $624.9 million, up $31.3 million from the
prior quarter, with purchases consisting of conservative, short duration
agency mortgage backed securities.
Stockholders’ equity at September 30, 2010 totaled $425.7 million as
compared to $422.1 million at June 30, 2010. The Tier 1 leverage capital
ratio at September 30, 2010 rose to 8.0% from 7.9% in the prior quarter,
maintaining the Company’s well-capitalized position.
NET INTEREST INCOME
Net interest income of $41.2 million was level with the prior quarter as
higher average earning asset balances were offset by a lower net
interest margin. The net interest margin in the third quarter of 2010
declined to 3.89%, compared to the linked quarter period of 3.96%. The
margin in the third quarter declined 7 basis points due to ongoing
pressure on asset yields from the low rate environment along with the
reinvestment of excess cash into liquid, short-term assets. This was
partly mitigated by the continued reduction in overall funding costs.
NON-INTEREST INCOME
The Company recorded non-interest income of $11.7 million during the
third quarter of 2010 which represents a $716,000, or 6.6%, increase
from the prior quarter. The change in non-interest income is composed of
the following:
-
Service charges on deposit accounts decreased by $74,000, or 1.6%.
-
Wealth management revenue decreased by $338,000, mainly due to
seasonal revenue associated with tax preparation and estate fees
collected during the second quarter of 2010. Assets under management
in the wealth management division rose to nearly $1.5 billion at
September 30, 2010, an increase of $138.0 million compared to June 30,
2010.
-
Mortgage banking income increased by $847,000, due to increased
originations in for sale loans as a result of the low rate
environment. The balance of the mortgage servicing asset was $1.7
million and represented 58 basis points of the servicing portfolio at
September 30, 2010.
-
Other non-interest income increased by $537,000, or 36.2%, mainly due
to market driven unrealized gains on trading assets.
NON-INTEREST EXPENSE
The Company recorded non-interest expense of $34.5 million in the third
quarter of 2010, a decrease of $389,000, or 1.1%, when compared to the
quarter ended June 30, 2010. Significant changes of non-interest expense
included the following:
-
Salaries and Employee Benefits increased by $1.4 million, or 7.5%,
mainly due to increases in incentive, sales commissions, pension, and
medical expense.
-
Occupancy and equipment decreased by $255,000, or 6.2%, in part due to
the timing of building repairs and maintenance.
-
Other non-interest expense decreased by $1.5 million, or 15.6%, which
is primarily attributable to the timing of advertising expenses of
$320,000, shareholder relations expense of $179,000, exam and audit
fees of $161,000, and decreases in legal fees of $333,000 associated
with loan work-outs, as well as prior quarter expense of $554,000 that
was recognized relating to the change in fair value of an interest
rate swap that was previously hedging borrowings.
The Company reported a return on average assets and a return on average
common equity in the third quarter of 2010 of 0.95% and 10.38%,
respectively, as compared to 0.70% and 7.60% for the quarter ended June
30, 2010.
ASSET QUALITY
Net charge-offs decreased to $3.2 million, or 0.37% on an annualized
basis of average loans, for the third quarter compared to $6.9 million,
or 0.81% for the quarter ending June 30, 2010. The provision for loan
losses was $3.5 million and $6.9 million for the quarters ended
September 30, 2010 and June 30, 2010, respectively. Nonperforming loans
increased to $24.7 million, or 0.72% of total loans, at September 30,
2010 from $23.7 million, or 0.69% of total loans, at June 30, 2010.
Delinquency levels have shown improvement with delinquencies as a
percent of loans declining to 1.11% at September 30, 2010 compared to
1.32% at June 30, 2010.
The allowance for loan losses was $45.6 million at September 30, 2010
compared with the prior quarter of $45.3 million. The Company’s
allowance for loan losses was 1.34%, as a percentage of total loans at
September 30, 2010, compared to 1.32%, at June 30, 2010.
Christopher Oddleifson and Denis K. Sheahan, Chief Financial Officer, of
Independent Bank Corp. and Rockland Trust Company, will host a
conference call to discuss third quarter earnings at 4:45 p.m. Eastern
Time on Thursday, October 21, 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: 445054. The web cast replay will be available until November
1, 2010.
Independent Bank Corp., which has Rockland Trust Company as a
wholly-owned bank subsidiary, has $4.7 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 find out
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
| | September 30, | | June 30, | | September 30, | | Sept. 2010 vs. | | Sept. 2010 vs. |
|
|
|
| 2010 |
|
|
| 2010 |
|
|
| 2009 |
|
| June 2010 | | Sept. 2009 |
| | | | | | | | | |
|
| Assets | | | | | | | | | | |
|
Cash and Due From Banks
| |
$
|
54,207
| | |
$
|
69,246
| | |
$
|
65,514
| | |
-21.72
|
%
| |
-17.26
|
%
|
|
Interest Earning Deposits with Banks
| | |
222,392
| | | |
268,162
| | | |
-
| | |
-17.07
|
%
| |
100.00
|
%
|
|
Fed Funds Sold and Short Term Investments
| | |
526
| | | |
781
| | | |
-
| | |
-32.65
|
%
| |
100.00
|
%
|
|
Securities
| | | | | | | | | | |
|
Trading Assets
| | |
7,418
| | | |
7,163
| | | |
23,090
| | |
3.56
|
%
| |
-67.87
|
%
|
|
Securities Available for Sale
| | |
436,887
| | | |
482,989
| | | |
546,125
| | |
-9.55
|
%
| |
-20.00
|
%
|
|
Securities Held to Maturity
| |
|
180,623
|
| |
|
103,463
|
| |
|
83,063
|
| |
74.58
|
%
| |
117.45
|
%
|
|
Total Securities
| | |
624,928
| | | |
593,615
| | | |
652,278
| | |
5.27
|
%
| |
-4.19
|
%
|
| | | | | | | | | |
|
|
Loans Held for Sale
| | |
21,321
| | | |
16,365
| | | |
14,160
| | |
30.28
|
%
| |
50.57
|
%
|
|
Loans
| | | | | | | | | | |
|
Commercial and Industrial
| | |
438,873
| | | |
427,398
| | | |
371,092
| | |
2.68
|
%
| |
18.27
|
%
|
|
Commercial Real Estate
| | |
1,641,356
| | | |
1,646,204
| | | |
1,546,206
| | |
-0.29
|
%
| |
6.15
|
%
|
|
Commercial Construction
| | |
144,109
| | | |
158,036
| | | |
201,196
| | |
-8.81
|
%
| |
-28.37
|
%
|
|
Small Business
| |
|
79,897
|
| |
|
80,965
|
| |
|
84,135
|
| |
-1.32
|
%
| |
-5.04
|
%
|
|
Total Commercial
| | |
2,304,235
| | | |
2,312,603
| | | |
2,202,629
| | |
-0.36
|
%
| |
4.61
|
%
|
|
Residential Real Estate
| | |
503,471
| | | |
525,062
| | | |
576,575
| | |
-4.11
|
%
| |
-12.68
|
%
|
|
Residential Construction
| | |
5,449
| | | |
4,594
| | | |
14,783
| | |
18.61
|
%
| |
-63.14
|
%
|
|
Consumer - Home Equity
| |
|
517,962
|
| |
|
498,789
|
| |
|
467,213
|
| |
3.84
|
%
| |
10.86
|
%
|
|
Total Consumer Real Estate
| |
|
1,026,882
|
| |
|
1,028,445
|
| |
|
1,058,571
|
| |
-0.15
|
%
| |
-2.99
|
%
|
|
Total Other Consumer
| |
|
76,926
|
| |
|
87,864
|
| |
|
126,339
|
| |
-12.45
|
%
| |
-39.11
|
%
|
|
Total Loans
| |
|
3,408,043
|
| |
|
3,428,912
|
| |
|
3,387,539
|
| |
-0.61
|
%
| |
0.61
|
%
|
|
Less - Allowance for Loan Losses
| |
|
(45,619
|
)
| |
|
(45,291
|
)
| |
|
(41,357
|
)
| |
0.72
|
%
| |
10.31
|
%
|
|
Net Loans
| | |
3,362,424
| | | |
3,383,621
| | | |
3,346,182
| | |
-0.63
|
%
| |
0.49
|
%
|
|
Federal Home Loan Bank Stock
| | |
35,854
| | | |
35,854
| | | |
36,357
| | |
0.00
|
%
| |
-1.38
|
%
|
|
Bank Premises and Equipment
| | |
45,420
| | | |
45,089
| | | |
41,963
| | |
0.73
|
%
| |
8.24
|
%
|
|
Goodwill and Core Deposit Intangible
| | |
142,422
| | | |
142,888
| | | |
144,152
| | |
-0.33
|
%
| |
-1.20
|
%
|
|
Other Assets
| |
|
194,297
|
| |
|
185,354
|
| |
|
133,397
|
| |
4.82
|
%
| |
45.65
|
%
|
|
Total Assets
| |
$
|
4,703,791
|
| |
$
|
4,740,975
|
| |
$
|
4,434,003
|
| |
-0.78
|
%
| |
6.08
|
%
|
| | | | | | | | | |
|
| Liabilities and Stockholders' Equity | | | | | | | | | | |
|
Deposits
| | | | | | | | | | |
|
Demand Deposits
| |
$
|
805,491
| | |
$
|
789,019
| | |
$
|
702,159
| | |
2.09
|
%
| |
14.72
|
%
|
|
Savings and Interest Checking Accounts
| | |
1,314,273
| | | |
1,305,515
| | | |
965,694
| | |
0.67
|
%
| |
36.10
|
%
|
|
Money Market
| | |
731,091
| | | |
760,471
| | | |
675,269
| | |
-3.86
|
%
| |
8.27
|
%
|
|
Time Certificates of Deposit
| |
|
766,303
|
| |
|
824,868
|
| |
|
937,854
|
| |
-7.10
|
%
| |
-18.29
|
%
|
|
Total Deposits
| | |
3,617,158
| | | |
3,679,873
| | | |
3,280,976
| | |
-1.70
|
%
| |
10.25
|
%
|
|
Borrowings
| | | | | | | | | | |
|
Federal Home Loan Bank Borrowings
| | |
302,545
| | | |
302,677
| | | |
396,218
| | |
-0.04
|
%
| |
-23.64
|
%
|
Fed Funds Purchased and Assets Sold Under Repurchase Agreements
| | |
180,326
| | | |
178,476
| | | |
188,707
| | |
1.04
|
%
| |
-4.44
|
%
|
|
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
| |
|
2,701
|
| |
|
3,136
|
| |
|
2,418
|
| |
-13.87
|
%
| |
11.70
|
%
|
|
Total Borrowings
| | |
577,429
| | | |
576,146
| | | |
679,200
| | |
0.22
|
%
| |
-14.98
|
%
|
|
Total Deposits and Borrowings
| | |
4,194,587
| | | |
4,256,019
| | | |
3,960,176
| | |
-1.44
|
%
| |
5.92
|
%
|
|
Other Liabilities
| | |
83,543
| | | |
62,894
| | | |
67,252
| | |
32.83
|
%
| |
24.22
|
%
|
|
Stockholders' Equity
| | | | | | | | | | |
|
Common Stock
| | |
210
| | | |
210
| | | |
209
| | |
0.00
|
%
| |
0.48
|
%
|
|
Additional Paid in Capital
| | |
226,255
| | | |
225,792
| | | |
224,848
| | |
0.21
|
%
| |
0.63
|
%
|
|
Retained Earnings
| | |
201,950
| | | |
194,587
| | | |
179,245
| | |
3.78
|
%
| |
12.67
|
%
|
|
Accumulated Other Comprehensive Income/(Loss), Net of Tax
| |
|
(2,754
|
)
| |
|
1,473
|
| |
|
2,273
|
| |
-286.97
|
%
| |
-221.16
|
%
|
|
Total Stockholders' Equity
| |
|
425,661
|
| |
|
422,062
|
| |
|
406,575
|
| |
0.85
|
%
| |
4.69
|
%
|
|
Total Liabilities and Stockholders' Equity
| |
$
|
4,703,791
|
| |
$
|
4,740,975
|
| |
$
|
4,434,003
|
| |
-0.78
|
%
| |
6.08
|
%
|
|
|
INDEPENDENT BANK CORP. FINANCIAL SUMMARY |
|
(Unaudited - Dollars in Thousands, Except Per Share Data)
|
|
| |
| |
| |
| |
| |
| | | | | | | | | |
|
| | | | | | | | | |
|
|
CONSOLIDATED STATEMENTS OF INCOME
| | Three Months Ended |
| | | | | | | | % Change | | | % Change | |
| | September 30, | | June 30, | | September 30, | | Sept. 2010 vs. | | Sept. 2010 vs. |
| |
| 2010 |
| |
| 2010 |
| |
| 2009 |
| | June 2010 | | Sept. 2009 |
| | | | | | | | | |
|
| INTEREST INCOME | | | | | | | | | | |
|
Interest on Fed Funds Sold and Short Term Investments
| |
$
|
135
| | |
$
|
108
| | |
$
|
4
| | |
25.00
|
%
| |
3275.00
|
%
|
|
Interest and Dividends on Securities
| | |
5,843
| | | |
6,316
| | | |
7,644
| | |
-7.49
|
%
| |
-23.56
|
%
|
|
Interest on Loans
| | |
44,436
| | | |
44,785
| | | |
45,773
| | |
-0.78
|
%
| |
-2.92
|
%
|
|
Interest on Loans Held for Sale
| |
|
174
|
| |
|
110
|
| |
|
169
|
| |
58.18
|
%
| |
2.96
|
%
|
|
Total Interest Income
| | |
50,588
| | | |
51,319
| | | |
53,590
| | |
-1.42
|
%
| |
-5.60
|
%
|
| INTEREST EXPENSE | | | | | | | | | | |
|
Interest on Deposits
| | |
4,801
| | | |
5,485
| | | |
7,446
| | |
-12.47
|
%
| |
-35.52
|
%
|
|
Interest on Borrowed Funds
| |
|
4,590
|
| |
|
4,667
|
| |
|
5,236
|
| |
-1.65
|
%
| |
-12.34
|
%
|
|
Total Interest Expense
| |
|
9,391
|
| |
|
10,152
|
| |
|
12,682
|
| |
-7.50
|
%
| |
-25.95
|
%
|
|
Net Interest Income
| | |
41,197
| | | |
41,167
| | | |
40,908
| | |
0.07
|
%
| |
0.71
|
%
|
|
Less - Provision for Loan Losses
| |
|
3,500
|
| |
|
6,931
|
| |
|
4,443
|
| |
-49.50
|
%
| |
-21.22
|
%
|
|
Net Interest Income after Provision for Loan Losses
| | |
37,697
| | | |
34,236
| | | |
36,465
| | |
10.11
|
%
| |
3.38
|
%
|
| NON-INTEREST INCOME | | | | | | | | | | |
|
Service Charges on Deposit Accounts
| | |
4,441
| | | |
4,515
| | | |
4,613
| | |
-1.64
|
%
| |
-3.73
|
%
|
|
Wealth Management
| | |
2,851
| | | |
3,189
| | | |
2,278
| | |
-10.60
|
%
| |
25.15
|
%
|
|
Mortgage Banking Income
| | |
1,469
| | | |
622
| | | |
425
| | |
136.17
|
%
| |
245.65
|
%
|
|
BOLI Income
| | |
901
| | | |
731
| | | |
713
| | |
23.26
|
%
| |
26.37
|
%
|
|
Net Gain/(Loss) on Sale of Securities
| | |
(22
|
)
| | |
481
| | | |
-
| | |
-104.57
|
%
| |
n/a
| |
|
Gain Resulting From Early Termination of Hedging Relationship
| | |
-
| | | |
-
| | | |
-
| | |
n/a
| | |
n/a
| |
Other-Than-Temporary Impairment Losses on Available-for-Sale Debt
Securities:
| | | | | | | | | | |
|
Gross Change on Write-Down of Certain Investments to Fair Value
| | |
207
| | | |
(63
|
)
| | |
(5,108
|
)
| |
-428.57
|
%
| |
-104.05
|
%
|
|
Less: Portion of Other-Than-Temporary Impairment Recognized in Other
Comprehensive Income
| |
|
(214
|
)
| |
|
(21
|
)
| |
|
(33
|
)
| |
919.05
|
%
| |
548.48
|
%
|
|
Net Impairment Losses Recognized in Earnings on Available-for-Sale
Debt Securities
| | |
(7
|
)
| | |
(84
|
)
| | |
(5,141
|
)
| |
-91.67
|
%
| |
-99.86
|
%
|
|
Other Non-Interest /Income
| |
|
2,021
|
| |
|
1,484
|
| |
|
1,578
|
| |
36.19
|
%
| |
28.07
|
%
|
|
Total Non-Interest Income
| | |
11,654
| | | |
10,938
| | | |
4,466
| | |
6.55
|
%
| |
160.95
|
%
|
| NON-INTEREST EXPENSE | | | | | | | | | | |
|
Salaries and Employee Benefits
| | |
19,792
| | | |
18,406
| | | |
17,727
| | |
7.53
|
%
| |
11.65
|
%
|
|
Occupancy and Equipment Expenses
| | |
3,839
| | | |
4,094
| | | |
3,985
| | |
-6.23
|
%
| |
-3.66
|
%
|
|
Data Processing and Facilities Management
| | |
1,404
| | | |
1,497
| | | |
1,580
| | |
-6.21
|
%
| |
-11.14
|
%
|
|
Merger & Acquisition Expense
| | |
-
| | | |
-
| | | |
41
| | |
n/a
| | |
n/a
| |
|
FDIC Assessment
| | |
1,352
| | | |
1,271
| | | |
1,267
| | |
6.37
|
%
| |
6.71
|
%
|
|
Other Non-Interest Expense
| |
|
8,153
|
| |
|
9,661
|
| |
|
7,704
|
| |
-15.61
|
%
| |
5.83
|
%
|
|
Total Non-Interest Expense
| | |
34,540
| | | |
34,929
| | | |
32,304
| | |
-1.11
|
%
| |
6.92
|
%
|
|
INCOME BEFORE INCOME TAXES
| |
|
14,811
|
| |
|
10,245
|
| |
|
8,627
|
| |
44.57
|
%
| |
71.68
|
%
|
|
PROVISION FOR INCOME TAXES
| |
|
3,666
|
| |
|
2,215
|
| |
|
1,786
|
| |
65.51
|
%
| |
105.26
|
%
|
| NET INCOME | |
$
|
11,145
|
| |
$
|
8,030
|
| |
$
|
6,841
|
| |
38.79
|
%
| |
62.91
|
%
|
| | | | | | | | | |
|
|
PREFERRED STOCK DIVIDEND
| |
$
|
-
| | |
$
|
-
| | |
$
|
-
| | | | | |
| | | | | | | | | |
|
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | |
$
|
11,145
|
| |
$
|
8,030
|
| |
$
|
6,841
|
| |
38.79
|
%
| |
62.91
|
%
|
| | | | | | | | | |
|
|
BASIC EARNINGS PER SHARE
| |
$
|
0.53
| | |
$
|
0.38
| | |
$
|
0.33
| | |
39.47
|
%
| |
60.61
|
%
|
|
DILUTED EARNINGS PER SHARE
| |
$
|
0.53
| | |
$
|
0.38
| | |
$
|
0.33
| | |
39.47
|
%
| |
60.61
|
%
|
|
BASIC AVERAGE SHARES
| | |
20,981,372
| | | |
20,964,706
| | | |
20,921,635
| | | | | |
|
DILUTED AVERAGE SHARES
| | |
21,034,165
| | | |
21,055,645
| | | |
20,969,889
| | | | | |
| | | | | | | | | |
|
PERFORMANCE RATIOS: | | | | | | | | | | |
|
Net Interest Margin (FTE)
| | |
3.89
|
%
| | |
3.96
|
%
| | |
4.02
|
%
| | | | |
|
Return on Average Assets
| | |
0.95
|
%
| | |
0.70
|
%
| | |
0.61
|
%
| | | | |
|
Return on Average Common Equity
| | |
10.38
|
%
| | |
7.60
|
%
| | |
6.68
|
%
| | | | |
| | | | | | | | | |
|
RECONCILIATION TABLE - NON-GAAP FINANCIAL
INFORMATION | | | | | | | | | | |
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP) | |
$
|
11,145
| | |
$
|
8,030
| | |
$
|
6,841
| | |
38.79
|
%
| |
62.91
|
%
|
| Non-Interest Income Components | | | | | | | | | | |
|
(Less)/Add - Net (Gain)/Loss on Sale of Securities, net of tax
| | |
13
| | | |
(285
|
)
| | |
-
| | | | | |
|
Less - Gain Resulting From early Termination of Hedging Relationship
| | |
-
| | | |
-
| | | |
-
| | | | | |
| Non-Interest Expense Components | | | | | | | | | | |
|
Add - Merger and Acquisition Expenses, net of tax
| | |
-
| | | |
-
| | | |
27
| | | | | |
|
Add - Fair Value Mark on a Terminated Hedging Relationship
| | |
-
| | | |
328
| | | |
-
| | | | | |
| Deemed Preferred Stock Dividend | |
|
-
|
| |
|
-
|
| |
|
-
|
| |
| |
|
| NET OPERATING EARNINGS | |
$
|
11,158
|
| |
$
|
8,073
|
| |
$
|
6,868
|
| |
38.21
|
%
| |
62.47
|
%
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| Diluted Earnings Per Share, on an Operating Basis | |
$
|
0.53
|
| |
$
|
0.38
|
| |
$
|
0.33
|
| |
39.47
|
%
| |
60.61
|
%
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
| Nine Months |
| % Change | |
| | September 30, |
| September 30, | | Sept. 2010 vs. |
| |
| 2010 |
| |
| 2009 |
| | Sept. 2009 |
| | | | | |
|
| INTEREST INCOME | | | | | | |
|
Interest on Fed Funds Sold and Short Term Investments
| |
$
|
267
| | |
$
|
272
| | |
-1.84
|
%
|
|
Interest and Dividends on Securities
| | |
18,830
| | | |
22,546
| | |
-16.48
|
%
|
|
Interest on Loans
| | |
133,267
| | | |
126,491
| | |
5.36
|
%
|
|
Interest on Loans Held for Sale
| |
|
390
|
| |
|
497
|
| |
-21.53
|
%
|
|
Total Interest Income
| | |
152,754
| | | |
149,806
| | |
1.97
|
%
|
| INTEREST EXPENSE | | | | | | |
|
Interest on Deposits
| | |
16,225
| | | |
24,293
| | |
-33.21
|
%
|
|
Interest on Borrowed Funds
| |
|
13,955
|
| |
|
15,517
|
| |
-10.07
|
%
|
|
Total Interest Expense
| |
|
30,180
|
| |
|
39,810
|
| |
-24.19
|
%
|
|
Net Interest Income
| | |
122,574
| | | |
109,996
| | |
11.43
|
%
|
|
Less - Provision for Loan Losses
| |
|
15,081
|
| |
|
12,911
|
| |
16.81
|
%
|
|
Net Interest Income after Provision for Loan Losses
| | |
107,493
| | | |
97,085
| | |
10.72
|
%
|
| NON-INTEREST INCOME | | | | | | |
|
Service Charges on Deposit Accounts
| | |
13,177
| | | |
12,518
| | |
5.26
|
%
|
|
Wealth Management
| | |
8,768
| | | |
7,318
| | |
19.81
|
%
|
|
Mortgage Banking Income
| | |
3,091
| | | |
3,578
| | |
-13.61
|
%
|
|
BOLI Income
| | |
2,353
| | | |
2,126
| | |
10.68
|
%
|
|
Net Gain on Sale of Securities
| | |
458
| | | |
1,355
| | |
-66.20
|
%
|
|
Gain Resulting From early Termination of Hedging Relationship
| | |
-
| | | |
3,778
| | |
-100.00
|
%
|
|
Gross Change on Write-Down of Certain Investments to Fair Value
| | |
325
| | | |
(7,384
|
)
| |
-104.40
|
%
|
|
Less: Non-Credit Related Other-Than-Temporary Impairment
| |
|
(594
|
)
| |
|
590
|
| |
-200.68
|
%
|
|
Net Loss on Write-Down of Certain Investments to Fair Value
| | |
(269
|
)
| | |
(6,794
|
)
| |
-96.04
|
%
|
|
Other Non-Interest Income
| |
|
5,065
|
| |
|
4,283
|
| |
18.26
|
%
|
|
Total Non-Interest Income
| | |
32,643
| | | |
28,162
| | |
15.91
|
%
|
| NON-INTEREST EXPENSE | | | | | | |
|
Salaries and Employee Benefits
| | |
56,662
| | | |
49,720
| | |
13.96
|
%
|
|
Occupancy and Equipment Expenses
| | |
12,068
| | | |
11,826
| | |
2.05
|
%
|
|
Data Processing and Facilities Management
| | |
4,195
| | | |
4,600
| | |
-8.80
|
%
|
|
Merger & Acquisition Expense
| | |
-
| | | |
12,423
| | |
-100.00
|
%
|
|
FDIC assessment
| | |
3,944
| | | |
5,655
| | |
-30.26
|
%
|
|
Other Non-Interest Expense
| |
|
26,189
|
| |
|
22,943
|
| |
14.15
|
%
|
|
Total Non-Interest Expense
| | |
103,058
| | | |
107,167
| | |
-3.83
|
%
|
|
INCOME BEFORE INCOME TAXES
| |
|
37,078
|
| |
|
18,080
|
| |
105.08
|
%
|
|
PROVISION FOR INCOME TAXES
| |
|
8,676
|
| |
|
4,192
|
| |
106.97
|
%
|
| NET INCOME | |
$
|
28,402
|
| |
$
|
13,888
|
| |
104.51
|
%
|
| | | | | |
|
|
PREFERRED STOCK DIVIDEND
| |
$
|
-
|
| |
$
|
5,698
|
| |
-
|
|
| | | | | |
|
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | |
$
|
28,402
|
| |
$
|
8,190
|
| |
246.79
|
%
|
| | | | | |
|
|
BASIC EARNINGS PER SHARE
| |
$
|
1.35
| | |
$
|
0.43
| | |
213.95
|
%
|
|
DILUTED EARNINGS PER SHARE
| |
$
|
1.35
| | |
$
|
0.43
| | |
213.95
|
%
|
|
BASIC AVERAGE SHARES
| | |
20,961,378
| | | |
19,210,431
| | | |
|
DILUTED AVERAGE SHARES
| | |
21,035,914
| | | |
19,236,612
| | | |
| | | | | |
|
PERFORMANCE RATIOS: | | | | | | |
|
Net Interest Margin (FTE)
| | |
3.97
|
%
| | |
3.86
|
%
| | |
|
Return on Average Assets
| | |
0.83
|
%
| | |
0.26
|
%
| | |
|
Return on Average Common Equity
| | |
8.98
|
%
| | |
2.74
|
%
| | |
| | | | | |
|
RECONCILIATION TABLE - NON-GAAP FINANCIAL
INFORMATION | | | | | | |
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP) | |
$
|
28,402
| | |
$
|
8,190
| | |
246.79
|
%
|
| Non-Interest Income Components | | | | | | |
|
Less - Net Gain on Sale of Securities, net of tax
| | |
(271
|
)
| | |
(880
|
)
| | |
|
Less - Gain Resulting From early Termination of Hedging Relationship
| | |
-
| | | |
(2,456
|
)
| | |
| Non-Interest Expense Components | | | | | | |
|
Add - Merger and Acquisition Expenses, net of tax
| | |
-
| | | |
9,706
| | | |
|
Add - Fair Value Mark on a Terminated Hedging Relationship
| | |
328
| | | |
-
| | | |
| Deemed Preferred Stock Dividend | |
|
-
|
| |
|
4,384
|
| |
|
| NET OPERATING EARNINGS | |
$
|
28,459
|
| |
$
|
18,944
|
| |
50.22
|
%
|
| | | | | |
|
| | | | | |
|
| Diluted Earnings Per Share, on an Operating Basis | |
$
|
1.35
|
| |
$
|
0.98
|
| |
37.76
|
%
|
|
|
INDEPENDENT BANK CORP. FINANCIAL SUMMARY |
|
(Unaudited - Dollars in Thousands, Except Per Share Data)
|
|
| |
| |
| |
| |
| |
| |
| |
| |
| RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION |
| | Three Months Ended | | Nine Months Ended |
| | | | | | | | % Change | | | % Change | | | | | | | % Change | |
| | September 30, | | June 30, | | September 30, | | Sept. 2010 vs. | | Sept. 2010 vs. | | September 30, | | September 30, | | Sept. 2010 vs. |
| |
| 2010 | |
| 2010 |
| |
| 2009 |
| | June 2010 |
| Sept. 2009 | |
| 2010 |
| |
| 2009 |
| | Sept. 2009 |
| | | | | | | | | | | | | | | |
|
| Non-Interest Income GAAP | |
$
|
11,654
| |
$
|
10,938
| | |
$
|
4,466
| | |
6.55
|
%
| |
160.95
|
%
| |
$
|
32,643
| | |
$
|
28,162
| | |
15.91
|
%
|
|
Add/(less) - Net Loss/(Gain) on Sale of Securities
| | |
22
| | |
(481
|
)
| | |
-
| | |
-104.57
|
%
| |
n/a
| | | |
(458
|
)
| | |
(1,355
|
)
| |
-66.20
|
%
|
|
Less - Gain Resulting From Early Termination of Hedging Relationship
| | |
-
| | |
-
| | | |
-
| | |
n/a
| | |
n/a
| | | |
-
| | | |
(3,778
|
)
| |
-100.00
|
%
|
|
Add - Other-Than-Temporary-Impairment on Securities
| |
|
7
| |
|
84
|
| |
|
5,141
|
| |
-91.67
|
%
| |
-99.86
|
%
| |
|
269
|
| |
|
6,794
|
| |
-96.04
|
%
|
| Non-Interest Income as Adjusted | |
$
|
11,683
| |
$
|
10,541
|
| |
$
|
9,607
|
| |
10.83
|
%
| |
21.61
|
%
| |
$
|
32,454
|
| |
$
|
29,823
|
| |
8.82
|
%
|
| | | | | | | | | | | | | | | |
|
| Non-Interest Expense GAAP | |
$
|
34,540
| |
$
|
34,929
| | |
$
|
32,304
| | |
-1.11
|
%
| |
6.92
|
%
| |
$
|
103,058
| | |
$
|
107,167
| | |
-3.83
|
%
|
|
Less - Merger & Acquisition Expenses
| | |
-
| | |
-
| | | |
(41
|
)
| |
n/a
| | |
-100.00
|
%
| | |
-
| | | |
(12,423
|
)
| |
-100.00
|
%
|
|
Less - Fair Value Mark on a Terminated Hedging Relationship
| |
|
-
| |
|
(554
|
)
| |
|
-
|
| |
100.00
|
%
| |
n/a
|
| |
|
(554
|
)
| |
|
-
|
| |
100.00
|
%
|
| Non-Interest Expense as Adjusted | |
$
|
34,540
| |
$
|
34,375
|
| |
$
|
32,263
|
| |
0.48
|
%
| |
7.06
|
%
| |
$
|
102,504
|
| |
$
|
94,744
|
| |
8.19
|
%
|
| | | | | | | | | | | | | | | |
|
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 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.
|
|
| |
| |
| |
ASSET QUALITY | | Nonperforming Assets | | Net Charge-Offs | | Net Charge-Offs |
| | For the Period Ending | | For the Three Months Ending | | For the Nine Months Ending |
| | September 30, |
| June 30, |
| September 30, | | September 30, |
| June 30, |
| September 30, | | September 30, |
| September 30, |
| |
| 2010 |
| |
| 2010 |
| |
| 2009 |
| |
| 2010 |
| |
| 2010 |
| |
| 2009 |
| |
| 2010 |
| |
| 2009 |
|
| | | | | | | | | | | | | | | |
|
| |
(Dollars in Thousands, Except Per Share Data)
| |
(Dollars in Thousands, Except Per Share Data)
| |
(Dollars in Thousands, Except Per Share Data)
|
|
Nonperforming Loans
| | | | | | | | | | | | | | | | |
|
Commercial & Industrial Loans
| |
$
|
4,417
| | |
$
|
5,083
| | |
$
|
3,744
| | |
$
|
1,429
| | |
$
|
1,816
| | |
$
|
1,241
| | |
$
|
3,772
| | |
$
|
1,284
| |
|
Small Business Loans
| | |
909
| | | |
728
| | | |
969
| | | |
515
| | | |
801
| | | |
762
| | | |
1,567
| | | |
1,517
| |
|
Commercial Real Estate Loans
| | |
8,966
| | | |
8,007
| | | |
18,511
| | | |
851
| | | |
3,520
| | | |
-
| | | |
4,569
| | | |
2,131
| |
|
Residential Real Estate Loans
| | |
7,863
| | | |
8,012
| | | |
11,625
| | | |
24
| | | |
293
| | | |
379
| | | |
452
| | | |
575
| |
|
Installment Loans - Home Equity
| | |
1,881
| | | |
1,218
| | | |
1,237
| | | |
(38
|
)
| | |
234
| | | |
298
| | | |
430
| | | |
1,158
| |
|
Installment Loans - Other
| |
|
651
|
| |
|
630
|
| |
|
851
|
| |
|
391
|
| |
|
254
|
| |
|
474
|
| |
|
1,033
|
| |
|
1,938
|
|
|
Total Nonperforming Loans / Total Net Charge-offs
| |
$
|
24,687
|
| |
$
|
23,678
|
| |
$
|
36,937
|
| |
$
|
3,172
|
| |
$
|
6,918
|
| |
$
|
3,154
|
| |
$
|
11,823
|
| |
$
|
8,603
|
|
|
Non-Accrual Securities
| | |
1,017
| | | |
969
| | | |
1,134
| | | | | | | | | | | |
|
Other Assets in Possession
| | |
74
| | | |
79
| | | |
255
| | | | | | | | | | | |
|
Other Real Estate Owned
| |
|
9,011
|
| |
|
7,357
|
| |
|
6,491
|
| | | | | | | | | | |
|
Nonperforming Assets
| |
$
|
34,789
|
| |
$
|
32,083
|
| |
$
|
44,817
|
| | | | | | | | | | |
| | | | | | | | | | | | | | | |
|
|
Nonperforming Loans/Gross Loans
| | |
0.72
|
%
| | |
0.69
|
%
| | |
1.09
|
%
| | | | | | | | | | |
|
Allowance for Loan Losses/Nonperforming Loans
| | |
184.79
|
%
| | |
191.28
|
%
| | |
111.97
|
%
| | | | | | | | | | |
|
Gross Loans/Total Deposits
| | |
94.22
|
%
| | |
93.18
|
%
| | |
103.25
|
%
| | | | | | | | | | |
|
Allowance for Loan Losses/Total Loans
| | |
1.34
|
%
| | |
1.32
|
%
| | |
1.22
|
%
| | | | | | | | | | |
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
|
Net charge-offs to average loans (quarter annualized)
| | | | | | | | |
0.37
|
%
| | |
0.81
|
%
| | |
0.37
|
%
| | | | |
|
Net charge-offs to average loans (year-to-date annualized)
| | | | | | | | | | | | | | |
0.46
|
%
| | |
0.37
|
%
|
| | | | | | | | | | | | | | | |
|
| | QTD | | YTD | | | | | | | | | | | | |
| | September 30, | | September 30, | | | | | | | | | | | | |
Nonperforming Loans Reconciliation | |
| 2010 |
| |
| 2010 |
| | | | | | | | | | | | |
|
Nonperforming Loans Beginning Balance
| |
$
|
23,678
| | |
$
|
36,183
| | | | | | | | | | | | | |
|
New to Nonperforming
| | |
12,910
| | | |
36,130
| | | | | | | | | | | | | |
|
Loans Charged-Off
| | |
(3,172
|
)
| | |
(11,823
|
)
| | | | | | | | | | | | |
|
Loans Paid-Off
| | |
(3,803
|
)
| | |
(17,749
|
)
| | | | | | | | | | | | |
|
Loans Transferred to Other Real Estate Owned/Other Assets
| | |
(2,514
|
)
| | |
(9,979
|
)
| | | | | | | | | | | | |
|
Loans Restored to Accrual Status
| | |
(2,496
|
)
| | |
(8,003
|
)
| | | | | | | | | | | | |
|
Other
| |
|
84
|
| |
|
(72
|
)
| | | | | | | | | | | | |
|
Nonperforming Loans Ending Balance
| |
$
|
24,687
|
| |
$
|
24,687
|
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
| | September 30, | | June 30, | | September 30, | | | | | | | | | | |
Financial Ratios | |
| 2010 |
| |
| 2010 |
| |
| 2009 |
| | | | | | | | | | |
|
Book Value per Common Share
| |
$
|
20.08
| | |
$
|
19.91
| | |
$
|
19.43
| | | | | | | | | | | |
Tangible Common Book Value per Share (proforma to include the tax
deductibility of goodwill and exclude impact of CPP) - Non-GAAP
| |
$
|
14.34
| | |
$
|
14.14
| | |
$
|
13.56
| | | | | | | | | | | |
|
Tangible Common Capital/Tangible Assets
| | |
6.21
|
%
| | |
6.07
|
%
| | |
6.12
|
%
| | | | | | | | | | |
Tangible Common Capital/Tangible Asset (proforma to include the
tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP
| | |
6.64
|
%
| | |
6.49
|
%
| | |
6.58
|
%
| | | | | | | | | | |
| | | | | | | | | | | | | | | |
|
Capital Adequacy | | | | | | | | | | | | | | | | |
|
Tier one leverage capital ratio (1)
| | |
7.96
|
%
| | |
7.86
|
%
| | |
7.74
|
%
| | | | | | | | | | |
|
Tier one common ratio (1)
| | |
8.55
|
%
| | |
8.15
|
%
| | |
7.90
|
%
| | | | | | | | | | |
| (1) Estimated number for September 30, 2010 | | | | | | | | | | | | | | | | |
|
|
| INDEPENDENT BANK CORP. |
|
SUPPLEMENTAL FINANCIAL INFORMATION
|
|
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA
|
| Three Months Ended |
| | September 30, 2010 |
| June 30, 2010 |
| September 30, 2009 |
| | |
| Interest |
| |
| |
| Interest |
| | | |
| Interest |
| |
| | Average | | Earned/ | | Yield/ | | Average | | Earned/ | | Yield/ | | Average | | Earned/ | | Yield/ |
| | Balance |
| Paid |
| Rate |
| Balance |
| Paid |
| Rate |
| Balance |
| Paid |
| Rate |
| |
(Unaudited - Dollars in Thousands)
|
| | | | | | | | | | | | | | | | | |
|
| Interest-Earning Assets: | | | | | | | | | | | | | | | | | | |
|
Interest Earning Deposits with Banks, Federal Funds Sold, and Short
Term Investments
| |
$
|
200,862
| |
$
|
135
| |
0.27
|
%
| |
$
|
188,976
| |
$
|
108
| |
0.23
|
%
| |
$
|
4,060
| |
$
|
4
| |
0.39
|
%
|
|
Securities:
| | | | | | | | | | | | | | | | | | |
|
Trading Assets
| | |
7,257
| | |
61
| |
3.33
|
%
| | |
7,367
| | |
62
| |
3.38
|
%
| | |
22,941
| | |
109
| |
1.89
|
%
|
|
Taxable Investment Securities
| | |
561,240
| | |
5,618
| |
3.97
|
%
| | |
557,554
| | |
6,067
| |
4.36
|
%
| | |
620,183
| | |
7,317
| |
4.68
|
%
|
|
Non-taxable Investment Securities (1)
| |
|
15,953
|
|
|
277
|
|
6.89
|
%
| |
|
17,718
|
|
|
316
|
|
7.15
|
%
| |
|
20,373
|
|
|
336
|
|
6.54
|
%
|
|
Total Securities:
| |
|
584,450
|
|
|
5,956
|
|
4.04
|
%
| |
|
582,639
|
|
|
6,445
|
|
4.44
|
%
| |
|
663,497
|
|
|
7,762
|
|
4.64
|
%
|
|
Loans Held for Sale
| | |
15,738
| | |
174
| |
4.39
|
%
| | |
7,656
| | |
110
| |
5.76
|
%
| | |
15,831
| | |
169
| |
4.24
|
%
|
|
Loans
| | | | | | | | | | | | | | | | | | |
|
Commercial and Industrial
| | |
440,539
| | |
5,211
| |
4.69
|
%
| | |
401,430
| | |
4,874
| |
4.87
|
%
| | |
361,809
| | |
4,395
| |
4.82
|
%
|
|
Commercial Real Estate
| | |
1,641,627
| | |
23,602
| |
5.70
|
%
| | |
1,645,452
| | |
23,691
| |
5.77
|
%
| | |
1,524,246
| | |
23,083
| |
6.01
|
%
|
|
Commercial Construction
| | |
148,151
| | |
1,792
| |
4.80
|
%
| | |
166,040
| | |
2,098
| |
5.07
|
%
| | |
205,653
| | |
2,537
| |
4.89
|
%
|
|
Small Business
| |
|
80,740
| |
|
1,221
| |
6.00
|
%
| |
|
81,319
| |
|
1,202
| |
5.93
|
%
| |
|
85,370
| |
|
1,305
| |
6.06
|
%
|
|
Total Commercial
| | |
2,311,057
| | |
31,826
| |
5.46
|
%
| | |
2,294,241
| | |
31,865
| |
5.57
|
%
| | |
2,177,078
| | |
31,320
| |
5.71
|
%
|
|
Residential Real Estate
| | |
525,003
| | |
6,174
| |
4.67
|
%
| | |
537,475
| | |
6,485
| |
4.84
|
%
| | |
589,702
| | |
7,319
| |
4.92
|
%
|
|
Residential Construction
| | |
4,874
| | |
63
| |
5.13
|
%
| | |
7,507
| | |
95
| |
5.08
|
%
| | |
15,077
| | |
228
| |
6.00
|
%
|
|
Consumer - Home Equity
| |
|
507,308
| |
|
4,914
| |
3.84
|
%
| |
|
490,197
| |
|
4,704
| |
3.85
|
%
| |
|
460,500
| |
|
4,510
| |
3.89
|
%
|
|
Total Consumer Real Estate
| |
|
1,037,185
| |
|
11,151
| |
4.27
|
%
| |
|
1,035,179
| |
|
11,284
| |
4.37
|
%
| |
|
1,065,279
| | |
12,057
| |
4.49
|
%
|
|
Total Other Consumer
| |
|
82,130
| |
|
1,593
| |
7.70
|
%
| |
|
92,681
| |
|
1,784
| |
7.72
|
%
| |
|
133,224
| |
|
2,513
| |
7.48
|
%
|
|
Total Loans
| |
|
3,430,372
| |
|
44,570
| |
5.15
|
%
| |
|
3,422,101
| |
|
44,933
| |
5.27
|
%
| |
|
3,375,581
| |
|
45,890
| |
5.39
|
%
|
| Total Interest-Earning Assets | |
$
|
4,231,422
|
|
$
|
50,835
|
|
4.77
|
%
| |
$
|
4,201,372
|
|
$
|
51,596
|
|
4.93
|
%
| |
$
|
4,058,969
|
|
$
|
53,825
|
|
5.26
|
%
|
|
Cash and Due from Banks
| | |
55,357
| | | | | | |
71,322
| | | | | | |
67,156
| | | | |
|
Federal Home Loan Bank Stock
| | |
35,854
| | | | | | |
35,854
| | | | | | |
36,357
| | | | |
|
Other Assets
| |
|
323,523
| | | | | |
|
305,041
| | | | | |
|
280,147
| | | | |
| Total Assets | |
$
|
4,646,156
| | | | | |
$
|
4,613,589
| | | | | |
$
|
4,442,629
| | | | |
| Interest-bearing Liabilities: | | | | | | | | | | | | | | | | | | |
|
Deposits:
| | | | | | | | | | | | | | | | | | |
|
Savings and Interest Checking Accounts
| |
$
|
1,220,073
| |
$
|
1,040
| |
0.34
|
%
| |
$
|
1,182,343
| |
$
|
1,297
| |
0.44
|
%
| |
$
|
969,676
| |
$
|
1,246
| |
0.51
|
%
|
|
Money Market
| | |
757,154
| | |
1,058
| |
0.55
|
%
| | |
760,240
| | |
1,320
| |
0.70
|
%
| | |
677,851
| | |
1,597
| |
0.93
|
%
|
|
Time Deposits
| |
|
805,825
|
|
|
2,703
|
|
1.33
|
%
| |
|
842,539
|
|
|
2,868
|
|
1.37
|
%
| |
|
948,596
|
|
|
4,603
|
|
1.93
|
%
|
|
Total interest-bearing deposits:
| |
$
|
2,783,052
| |
$
|
4,801
| |
0.68
|
%
| |
$
|
2,785,122
| |
$
|
5,485
| |
0.79
|
%
| |
$
|
2,596,123
| |
$
|
7,446
| |
1.14
|
%
|
|
Borrowings:
| | | | | | | | | | | | | | | | | | |
|
Federal Home Loan Bank Borrowings
| |
$
|
302,610
| |
$
|
2,372
| |
3.11
|
%
| |
$
|
324,168
| |
$
|
2,392
| |
2.96
|
%
| |
$
|
395,878
| |
$
|
2,901
| |
2.91
|
%
|
Federal Funds Purchased and Assets Sold Under Repurchase Agreement
| | |
179,983
| | |
740
| |
1.63
|
%
| | |
182,810
| | |
821
| |
1.80
|
%
| | |
184,181
| | |
857
| |
1.85
|
%
|
|
Junior Subordinated Debentures
| | |
61,857
| | |
931
| |
5.97
|
%
| | |
61,857
| | |
913
| |
5.92
|
%
| | |
61,857
| | |
931
| |
5.97
|
%
|
|
Subordinated Debentures
| | |
30,000
| | |
547
| |
7.23
|
%
| | |
30,000
| | |
541
| |
7.23
|
%
| | |
30,000
| | |
547
| |
7.23
|
%
|
|
Other Borrowings
| |
|
2,602
|
|
|
-
|
|
0.00
|
%
| |
|
3,148
|
|
|
-
|
|
0.00
|
%
| |
|
2,108
|
|
|
-
|
|
0.00
|
%
|
|
Total Borrowings:
| |
|
577,052
|
|
|
4,590
|
|
3.16
|
%
| |
|
601,983
|
|
|
4,667
|
|
3.11
|
%
| |
|
674,024
|
|
|
5,236
|
|
3.08
|
%
|
| Total Interest-Bearing Liabilities | |
$
|
3,360,104
|
|
$
|
9,391
|
|
1.11
|
%
| |
$
|
3,387,105
|
|
$
|
10,152
|
|
1.20
|
%
| |
$
|
3,270,147
|
|
$
|
12,682
|
|
1.54
|
%
|
|
Demand Deposits
| | |
796,205
| | | | | | |
752,622
| | | | | | |
702,071
| | | | |
| | | | | | | | | | | | | | | | | |
|
|
Other Liabilities
| |
|
63,790
| | | | | |
|
49,870
| | | | | |
|
63,821
| | | | |
|
Total Liabilities
| |
$
|
4,220,099
| | | | | |
$
|
4,189,597
| | | | | |
$
|
4,036,039
| | | | |
|
Stockholders' Equity
| |
|
426,057
| | | | | |
|
423,992
| | | | | |
|
406,590
| | | | |
| Total Liabilities and Stockholders' Equity | |
$
|
4,646,156
| | | | | |
$
|
4,613,589
| | | | | |
$
|
4,442,629
| | | | |
| | | | | | | | | | | | | | | | | |
|
|
Net Interest Income
| | | |
$
|
41,444
| | | | | |
$
|
41,444
| | | | | |
$
|
41,143
| | |
| | | | | | | | | | | | | | | | | |
|
|
Interest Rate Spread (2)
| | | | | |
3.66
|
%
| | | | | |
3.72
|
%
| | | | | |
3.72
|
%
|
| | | | | | | | | | | | | | | | | |
|
|
Net Interest Margin (3)
| | | | | |
3.89
|
%
| | | | | |
3.96
|
%
| | | | | |
4.02
|
%
|
| | | | | | | | | | | | | | | | | |
|
| Supplemental Information: | | | | | | | | | | | | | | | | | | |
|
Total Deposits, including Demand Deposits
| |
$
|
3,579,257
| |
$
|
4,801
| | | |
$
|
3,537,744
| |
$
|
5,485
| | | |
$
|
3,298,194
| |
$
|
7,446
| | |
|
Cost of Total Deposits
| | | | | |
0.53
|
%
| | | | | |
0.62
|
%
| | | | | |
0.90
|
%
|
|
Total Funding Liabilities, including Demand Deposits
| |
$
|
4,156,309
| |
$
|
9,391
| | | |
$
|
4,139,727
| |
$
|
10,152
| | | |
$
|
3,972,218
| |
$
|
12,682
| | |
|
Cost of Total Funding Liabilities
| | | | | |
0.90
|
%
| | | | | |
0.98
|
%
| | | | | |
1.27
|
%
|
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
|
(1) The total amount of adjustment to present interest income and
yield on a fully tax-equivalent basis is $247, $277, and $235 for
the three months ended September 30, 2010, June 30, 2010, and
September 30, 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.
|
|
|
|
| Nine Months Ended |
| | September 30, 2010 |
| September 30, 2009 |
| | |
| Interest |
| | | |
| Interest |
| |
| | Average | | Earned/ | | Yield/ | | Average | | Earned/ | | Yield/ |
| | Balance |
| Paid |
| Rate | | Balance |
| Paid |
| Rate |
| |
(Unaudited - Dollars in Thousands)
|
| | | | | | | | | | | |
|
| Interest-Earning Assets: | | | | | | | | | | | | |
|
Interest Earning Deposits with Banks, Federal Funds Sold, and Short
Term Investments
| |
$
|
138,319
| |
$
|
267
| |
0.26
|
%
| |
$
|
70,349
| |
$
|
272
| |
0.52
|
%
|
|
Securities:
| | | | | | | | | | | | |
|
Trading Assets
| | |
7,143
| | |
183
| |
3.43
|
%
| | |
13,278
| | |
178
| |
1.79
|
%
|
|
Taxable Investment Securities
| | |
562,422
| | |
18,093
| |
4.30
|
%
| | |
606,388
| | |
21,624
| |
4.77
|
%
|
|
Non-taxable Investment Securities (1)
| |
|
17,582
|
|
|
936
|
|
7.12
|
%
| |
|
23,792
|
|
|
1,145
|
|
6.43
|
%
|
|
Total Securities:
| |
|
587,147
|
|
|
19,212
|
|
4.37
|
%
| |
|
643,458
|
|
|
22,947
|
|
4.77
|
%
|
|
Loans Held for Sale
| | |
10,204
| | |
390
| |
5.11
|
%
| | |
15,453
| | |
497
| |
4.30
|
%
|
|
Loans
| | | | | | | | | | | | |
|
Commercial and Industrial
| | |
406,838
| | |
14,502
| |
4.77
|
%
| | |
324,847
| | |
11,673
| |
4.80
|
%
|
|
Commercial Real Estate
| | |
1,639,380
| | |
70,382
| |
5.74
|
%
| | |
1,367,234
| | |
62,230
| |
6.09
|
%
|
|
Commercial Construction
| | |
161,823
| | |
5,967
| |
4.93
|
%
| | |
194,558
| | |
7,113
| |
4.89
|
%
|
|
Small Business
| |
|
81,506
| |
|
3,639
| |
5.97
|
%
| |
|
86,577
| |
|
3,893
|
|
6.01
|
%
|
|
Total Commercial
| | |
2,289,547
| | |
94,490
| |
5.52
|
%
| | |
1,973,216
| | |
84,909
| |
5.75
|
%
|
|
Residential Real Estate
| | |
536,918
| | |
19,424
| |
4.84
|
%
| | |
533,394
| | |
20,288
| |
5.09
|
%
|
|
Residential Construction
| | |
7,146
| | |
276
| |
5.16
|
%
| | |
12,963
| | |
633
| |
6.53
|
%
|
|
Consumer - Home Equity
| |
|
492,048
| |
|
14,140
| |
3.84
|
%
| |
|
440,398
| |
|
12,947
|
|
3.93
|
%
|
|
Total Consumer Real Estate
| |
|
1,036,112
| |
|
33,840
| |
4.37
|
%
| |
|
986,755
| |
|
33,868
|
|
4.59
|
%
|
|
Total Other Consumer
| |
|
93,232
| |
|
5,388
| |
7.73
|
%
| |
|
146,781
| |
|
8,079
|
|
7.36
|
%
|
|
Total Loans
| |
|
3,418,891
| |
|
133,718
| |
5.23
|
%
| |
|
3,106,752
| |
|
126,856
|
|
5.46
|
%
|
| Total Interest-Earning Assets | |
$
|
4,154,561
|
|
$
|
153,587
|
|
4.94
|
%
| |
$
|
3,836,012
|
|
$
|
150,572
|
|
5.25
|
%
|
|
Cash and Due from Banks
| | |
64,314
| | | | | | |
68,192
| | | | |
|
Federal Home Loan Bank Stock
| | |
35,854
| | | | | | |
32,051
| | | | |
|
Other Assets
| |
|
310,992
| | | | | |
|
276,960
| | | | |
| Total Assets | |
$
|
4,565,721
| | | | | |
$
|
4,213,215
| | | | |
| Interest-bearing Liabilities: | | | | | | | | | | | | |
|
Deposits:
| | | | | | | | | | | | |
|
Savings and Interest Checking Accounts
| |
$
|
1,153,459
| |
$
|
3,521
| |
0.41
|
%
| |
$
|
892,383
| |
$
|
3,567
| |
0.53
|
%
|
|
Money Market
| | |
740,128
| | |
3,699
| |
0.67
|
%
| | |
621,424
| | |
5,006
| |
1.08
|
%
|
|
Time Deposits
| |
|
845,631
|
|
|
9,005
|
|
1.42
|
%
| |
|
918,510
|
|
|
15,720
|
|
2.29
|
%
|
|
Total interest-bearing deposits:
| |
$
|
2,739,218
| |
$
|
16,225
| |
0.79
|
%
| |
$
|
2,432,317
| |
$
|
24,293
| |
1.34
|
%
|
|
Borrowings:
| | | | | | | | | | | | |
|
Federal Home Loan Bank Borrowings
| |
$
|
322,221
| |
$
|
7,196
| |
2.99
|
%
| |
$
|
418,386
| |
$
|
8,548
| |
2.73
|
%
|
Federal Funds Purchased and Assets Sold Under Repurchase Agreement
| | |
182,456
| | |
2,391
| |
1.75
|
%
| | |
177,061
| | |
2,525
| |
1.91
|
%
|
|
Junior Subordinated Debentures
| | |
61,857
| | |
2,744
| |
5.93
|
%
| | |
61,857
| | |
2,819
| |
6.09
|
%
|
|
Subordinated Debentures
| | |
30,000
| | |
1,624
| |
7.24
|
%
| | |
30,000
| | |
1,625
| |
7.24
|
%
|
|
Other Borrowings
| |
|
2,704
|
|
|
-
|
|
0.00
|
%
| |
|
1,996
|
|
|
-
|
|
0.00
|
%
|
|
Total Borrowings:
| |
|
599,238
|
|
|
13,955
|
|
3.11
|
%
| |
|
689,300
|
|
|
15,517
|
|
3.01
|
%
|
| Total Interest-Bearing Liabilities | |
$
|
3,338,456
|
|
$
|
30,180
|
|
1.21
|
%
| |
$
|
3,121,617
|
|
$
|
39,810
|
|
1.71
|
%
|
|
Demand Deposits
| | |
750,895
| | | | | | |
635,943
| | | | |
| | | | | | | | | | | |
|
|
Other Liabilities
| |
|
53,622
| | | | | |
|
56,015
| | | | |
|
Total Liabilities
| |
$
|
4,142,973
| | | | | |
$
|
3,813,575
| | | | |
|
Stockholders' Equity
| |
|
422,748
| | | | | |
|
399,640
| | | | |
| Total Liabilities and Stockholders' Equity | |
$
|
4,565,721
| | | | | |
$
|
4,213,215
| | | | |
| | | | | | | | | | | |
|
|
Net Interest Income
| | | |
$
|
123,407
| | | | | |
$
|
110,762
| | |
| | | | | | | | | | | |
|
|
Interest Rate Spread (2)
| | | | | |
3.73
|
%
| | | | | |
3.54
|
%
|
| | | | | | | | | | | |
|
|
Net Interest Margin (3)
| | | | | |
3.97
|
%
| | | | | |
3.86
|
%
|
| | | | | | | | | | | |
|
| Supplemental Information: | | | | | | | | | | | | |
|
Total Deposits, including Demand Deposits
| |
$
|
3,490,113
| |
$
|
16,225
| | | |
$
|
3,068,260
| |
$
|
24,293
| | |
|
Cost of Total Deposits
| | | | | |
0.62
|
%
| | | | | |
1.06
|
%
|
|
Total Funding Liabilities, including Demand Deposits
| |
$
|
4,089,351
| |
$
|
30,180
| | | |
$
|
3,757,560
| |
$
|
39,810
| | |
|
Cost of Total Funding Liabilities
| | | | | |
0.99
|
%
| | | | | |
1.42
|
%
|
| | | | | | | | | | | |
|
|
(1) The total amount of adjustment to present interest income and
yield on a fully tax-equivalent basis is $833 and $766 for the nine
months ended September 30, 2010, and June 30, 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. |
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