Solid Asset Quality Trends and Continued Strong Loan Growth Drive
Performance
ROCKLAND, Mass.--(BUSINESS WIRE)--
Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust
Company, today announced net income of $11.2 million for the first
quarter of 2011, or $0.52 on a diluted earnings per share basis. The
results of the first quarter 2011 represent an increase of $0.08, or
18.2%, on a diluted earnings per share basis as compared to the first
quarter of 2010. As compared to the linked quarter, the diluted earnings
per share results for the first quarter declined, as is typical for the
Company, by $0.04, or 7.1%, primarily due to seasonality and the timing
of certain revenue and expense items.
Christopher Oddleifson, the President and Chief Executive Officer of
Independent Bank Corp. and Rockland Trust Company, stated: “I’m pleased
that Rockland Trust has had such a strong start to 2011. We continue to
build upon the momentum created by our extraordinary 2010. Commercial
and home equity lending continues to drive our growth, and we remain
focused on increasing our core customer base. Rockland Trust’s products,
services, and commitment to the markets we serve position us well for
another solid year.”
BALANCE SHEET
Total assets of $4.6 billion at March 31, 2011 are down slightly from
the prior quarter.
Total loans grew to $3.6 billion at March 31, 2011, an increase of $72.7
million, or 2.0%, compared with the prior quarter, or 8.3% on an
annualized basis. The Company sustained growth in its commercial and
industrial loan portfolio, which increased by $5.9 million, or 1.2%, in
the first quarter, as the Company continued to add high-quality
customers and expand existing relationships. Commercial real estate loan
generation remained healthy, as the portfolio increased by $53.2
million, or 3.1%. The home equity portfolio also exhibited continued
growth, rising $40.4 million, or 7.0%. Residential real estate loans
declined by $11.8 million, or 2.5%, as loans refinanced into
longer-term, fixed-rate loans, which are not commonly held in portfolio
by the Company.
Total deposits decreased by $42.9 million, or 1.2%, during the quarter
ended March 31, 2011. Core deposits were lower by $24.5 million, or
0.8%, driven by seasonality in the Company’s deposit base. The Company’s
emphasis on lower cost core deposits has led to a steady reduction in
time deposits which declined by $18.4 million, or 2.7%, in the first
quarter. Core deposits to total deposits rose to 81.2% and the total
cost of deposits continued to decline to 0.40% for the current quarter,
down 5 basis points from the prior period.
Securities remained relatively flat quarter over quarter at $589.2
million. The Company purchased mortgage-backed securities to replace
runoff of existing securities during the quarter.
Stockholders’ equity at March 31, 2011 increased by 2.6% to $448.0
million as compared to the level at December 31, 2010. The Tier 1
leverage capital ratio at March 31, 2011 rose to 8.5% from 8.2% in the
prior quarter, maintaining the Company’s well-capitalized position.
NET INTEREST INCOME
Net interest income of $41.5 million was up from the prior quarter. The
net interest margin in the first quarter of 2011 expanded to 4.02%,
compared to 3.91% in the linked quarter period due largely to lower
funding costs, as well as a reduction in the Company’s overnight cash
position.
NON-INTEREST INCOME
The Company recorded non-interest income of $12.6 million during the
first quarter of 2011 which represents a $1.7 million, or 11.7%,
decrease from the prior quarter. The change in non-interest income is
composed of the following:
-
Interchange and ATM fees increased by $229,000, or 15.6%, due
primarily to the reclassification of certain net interchange revenue
between interchange revenue and other non-interest expense.
Previously, the net amount was recorded in noninterest expense.
-
Wealth management revenue increased by $261,000, or 8.8%. Assets under
management in the wealth management division rose to $1.6 billion at
March 31, 2011, an increase of $74.3 million compared to December 31,
2010.
-
Mortgage banking income decreased by $903,000, due to reduced volume.
The balance of the mortgage servicing rights asset was $1.6 million
and represented 64 basis points of the servicing portfolio at March
31, 2011.
-
Other non-interest income decreased by $1.0 million, or 34.3%, mainly
due to fee revenue in the prior period associated with loan level
interest rate derivatives.
NON-INTEREST EXPENSE
The Company recorded non-interest expense of $36.5 million in the first
quarter of 2011, a decrease of $206,000, or 0.6%, when compared to the
quarter ended December 31, 2010. Significant changes of non-interest
expense included the following:
-
Occupancy and equipment increased $632,000, or 16.0% primarily due to
costs related to snow removal.
-
Other non-interest expense decreased by $816,000, or 8.6%, which is
primarily attributable to lower credit-related loan workout expenses
of $727,000.
The Company generated a return on average assets and a return on average
common equity in the first quarter of 2011 of 0.98% and 10.24%,
respectively, as compared to 1.01% and 10.85% for the quarter ended
December 31, 2010.
ASSET QUALITY
The Company experienced continued solid asset quality trends during the
quarter. Net charge-offs decreased to $2.0 million, or 0.23% on an
annualized basis of average loans, for the first quarter of 2011
compared to $2.9 million, or 0.33% for the quarter ended December 31,
2010. The provision for loan losses was $2.2 million and $3.6 million
for the quarters ended March 31, 2011 and December 31, 2010,
respectively. Nonperforming loans increased slightly to $23.4 million,
or 0.64% of total loans at March 31, 2011, from $23.1 million, or 0.65%
of total loans at December 31, 2010. Delinquency as a percent of loans
was 1.19% at March 31, 2011 compared to 1.11% at December 31, 2010.
The allowance for loan losses was $46.4 million at March 31, 2011,
compared with the prior quarter level of $46.3 million. The Company’s
allowance for loan losses was 1.28%, as a percentage of total loans at
March 31, 2011, compared to 1.30%, at December 31, 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 first quarter earnings at 10:00 a.m. Eastern
Time on Friday, April 15, 2011. Internet access to the call is available
on the Company’s website at www.RocklandTrust.com
or by telephonic access by dial-in at 1-877-317-6789 reference: INDB. A
replay of the call will be available by calling 1-877-344-7529, Replay
Pass code: 449867. The web cast replay will be available until April 15,
2012.
Independent Bank Corp., which has Rockland Trust Company as a
wholly-owned bank subsidiary, has $4.6 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
| | March 31, | | December 31, | | March 31, | | March 2011 vs. | | March 2011 vs. |
|
|
|
| 2011 |
|
|
| 2010 |
|
|
| 2010 |
|
| Dec. 2010 | | March 2010 |
| | | | | | | | | |
|
| Assets | | | | | | | | | | |
|
Cash and Due From Banks
| |
$
|
49,242
| | |
$
|
42,112
| | |
$
|
60,824
| | |
16.93
|
%
| |
-19.04
|
%
|
|
Interest Earning Deposits with Banks
| | |
17,042
| | | |
119,170
| | | |
158,231
| | |
-85.70
|
%
| |
-89.23
|
%
|
|
Fed Funds Sold and Short Term Investments
| | |
417
| | | |
-
| | | |
-
| | |
100.00
|
%
| |
100.00
|
%
|
|
Securities
| | | | | | | | | | |
|
Trading Assets
| | |
8,521
| | | |
7,597
| | | |
7,399
| | |
12.16
|
%
| |
15.16
|
%
|
|
Securities Available for Sale
| | |
341,362
| | | |
377,457
| | | |
473,515
| | |
-9.56
|
%
| |
-27.91
|
%
|
|
Securities Held to Maturity
| |
|
239,305
|
| |
|
202,732
|
| |
|
91,059
|
| |
18.04
|
%
| |
162.80
|
%
|
|
Total Securities
| | |
589,188
| | | |
587,786
| | | |
571,973
| | |
0.24
|
%
| |
3.01
|
%
|
| | | | | | | | | |
|
|
Loans Held for Sale
| | |
8,643
| | | |
27,917
| | | |
7,570
| | |
-69.04
|
%
| |
14.17
|
%
|
|
Loans
| | | | | | | | | | |
|
Commercial and Industrial
| | |
508,839
| | | |
502,952
| | | |
387,785
| | |
1.17
|
%
| |
31.22
|
%
|
|
Commercial Real Estate
| | |
1,770,324
| | | |
1,717,118
| | | |
1,645,251
| | |
3.10
|
%
| |
7.60
|
%
|
|
Commercial Construction
| | |
123,428
| | | |
129,421
| | | |
167,161
| | |
-4.63
|
%
| |
-26.16
|
%
|
|
Small Business
| |
|
80,817
|
| |
|
80,026
|
| |
|
81,696
|
| |
0.99
|
%
| |
-1.08
|
%
|
|
Total Commercial
| | |
2,483,408
| | | |
2,429,517
| | | |
2,281,893
| | |
2.22
|
%
| |
8.83
|
%
|
|
Residential Real Estate
| | |
462,110
| | | |
473,936
| | | |
539,709
| | |
-2.50
|
%
| |
-14.38
|
%
|
|
Residential Construction
| | |
3,256
| | | |
4,175
| | | |
7,732
| | |
-22.01
|
%
| |
-57.89
|
%
|
|
Consumer - Home Equity
| |
|
619,727
|
| |
|
579,278
|
| |
|
484,413
|
| |
6.98
|
%
| |
27.93
|
%
|
|
Total Consumer Real Estate
| |
|
1,085,093
|
| |
|
1,057,389
|
| |
|
1,031,854
|
| |
2.62
|
%
| |
5.16
|
%
|
|
Total Other Consumer
| |
|
59,873
|
| |
|
68,773
|
| |
|
98,045
|
| |
-12.94
|
%
| |
-38.93
|
%
|
|
Total Loans
| |
|
3,628,374
|
| |
|
3,555,679
|
| |
|
3,411,792
|
| |
2.04
|
%
| |
6.35
|
%
|
|
Less - Allowance for Loan Losses
| |
|
(46,444
|
)
| |
|
(46,255
|
)
| |
|
(45,278
|
)
| |
0.41
|
%
| |
2.58
|
%
|
|
Net Loans
| | |
3,581,930
| | | |
3,509,424
| | | |
3,366,514
| | |
2.07
|
%
| |
6.40
|
%
|
|
Federal Home Loan Bank Stock
| | |
35,854
| | | |
35,854
| | | |
35,854
| | |
0.00
|
%
| |
0.00
|
%
|
|
Bank Premises and Equipment
| | |
46,481
| | | |
45,712
| | | |
44,850
| | |
1.68
|
%
| |
3.64
|
%
|
|
Goodwill and Core Deposit Intangible
| | |
141,951
| | | |
141,956
| | | |
143,371
| | |
0.00
|
%
| |
-0.99
|
%
|
|
Other Assets
| |
|
175,035
|
| |
|
185,807
|
| |
|
158,020
|
| |
-5.80
|
%
| |
10.77
|
%
|
|
Total Assets
| |
$
|
4,645,783
|
| |
$
|
4,695,738
|
| |
$
|
4,547,207
|
| |
-1.06
|
%
| |
2.17
|
%
|
| | | | | | | | | |
|
| Liabilities and Stockholders' Equity | | | | | | | | | | |
|
Deposits
| | | | | | | | | | |
|
Demand Deposits
| |
$
|
837,705
| | |
$
|
842,067
| | |
$
|
720,246
| | |
-0.52
|
%
| |
16.31
|
%
|
|
Savings and Interest Checking Accounts
| | |
1,348,242
| | | |
1,375,254
| | | |
1,170,194
| | |
-1.96
|
%
| |
15.22
|
%
|
|
Money Market
| | |
724,203
| | | |
717,286
| | | |
719,761
| | |
0.96
|
%
| |
0.62
|
%
|
|
Time Certificates of Deposit
| |
|
674,776
|
| |
|
693,176
|
| |
|
863,652
|
| |
-2.65
|
%
| |
-21.87
|
%
|
|
Total Deposits
| | |
3,584,926
| | | |
3,627,783
| | | |
3,473,853
| | |
-1.18
|
%
| |
3.20
|
%
|
|
Borrowings
| | | | | | | | | | |
|
Federal Home Loan Bank Borrowings
| | |
277,285
| | | |
302,414
| | | |
327,807
| | |
-8.31
|
%
| |
-15.41
|
%
|
|
Fed Funds Purchased and Assets Sold
| | | | | | | | | | |
|
Under Repurchase Agreements
| | |
184,738
| | | |
168,119
| | | |
184,436
| | |
9.89
|
%
| |
0.16
|
%
|
|
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
| |
|
2,838
|
| |
|
3,044
|
| |
|
2,873
|
| |
-6.77
|
%
| |
-1.22
|
%
|
|
Total Borrowings
| | |
556,718
| | | |
565,434
| | | |
606,973
| | |
-1.54
|
%
| |
-8.28
|
%
|
|
Total Deposits and Borrowings
| | |
4,141,644
| | | |
4,193,217
| | | |
4,080,826
| | |
-1.23
|
%
| |
1.49
|
%
|
|
Other Liabilities
| | |
56,154
| | | |
66,049
| | | |
48,157
| | |
-14.98
|
%
| |
16.61
|
%
|
|
Stockholders' Equity
| | | | | | | | | | |
|
Common Stock
| | |
212
| | | |
210
| | | |
209
| | |
0.95
|
%
| |
1.44
|
%
|
|
Additional Paid in Capital
| | |
230,581
| | | |
226,708
| | | |
225,373
| | |
1.71
|
%
| |
2.31
|
%
|
|
Retained Earnings
| | |
217,443
| | | |
210,320
| | | |
190,064
| | |
3.39
|
%
| |
14.41
|
%
|
|
Accumulated Other Comprehensive Income/(Loss), Net of Tax
| |
|
(251
|
)
| |
|
(766
|
)
| |
|
2,578
|
| |
-67.23
|
%
| |
-109.74
|
%
|
|
Total Stockholders' Equity
| |
|
447,985
|
| |
|
436,472
|
| |
|
418,224
|
| |
2.64
|
%
| |
7.12
|
%
|
|
Total Liabilities and Stockholders' Equity
| |
$
|
4,645,783
|
| |
$
|
4,695,738
|
| |
$
|
4,547,207
|
| |
-1.06
|
%
| |
2.17
|
%
|
|
|
|
|
INDEPENDENT BANK CORP. FINANCIAL SUMMARY |
|
(Unaudited - Dollars in Thousands, Except Per Share Data)
|
|
| |
| |
| |
| |
| |
| | | | | | | | | |
|
|
CONSOLIDATED STATEMENTS OF INCOME
| | Three Months Ended |
| | | | | | | | % Change | | % Change |
| | March 31, | | December 31, | | March 31, | | March 2011 vs. | | March 2011 vs. |
| |
| 2011 |
| |
| 2010 |
| |
| 2010 |
| | Dec. 2010 | | March 2010 |
| | | | | | | | | |
|
| INTEREST INCOME | | | | | | | | | | |
|
Interest on Fed Funds Sold and Short Term Investments
| |
$
|
17
| | |
$
|
71
| | |
$
|
24
| | |
-76.06
|
%
| |
-29.17
|
%
|
|
Interest and Dividends on Securities
| | |
5,606
| | | |
5,827
| | | |
6,671
| | |
-3.79
|
%
| |
-15.96
|
%
|
|
Interest on Loans
| | |
43,216
| | | |
43,797
| | | |
44,047
| | |
-1.33
|
%
| |
-1.89
|
%
|
|
Interest on Loans Held for Sale
| |
|
119
|
| |
|
276
|
| |
|
106
|
| |
-56.88
|
%
| |
12.26
|
%
|
|
Total Interest Income
| | |
48,958
| | | |
49,971
| | | |
50,848
| | |
-2.03
|
%
| |
-3.72
|
%
|
| INTEREST EXPENSE | | | | | | | | | | |
|
Interest on Deposits
| | |
3,485
| | | |
4,029
| | | |
5,939
| | |
-13.50
|
%
| |
-41.32
|
%
|
|
Interest on Borrowed Funds
| |
|
4,000
|
| |
|
4,553
|
| |
|
4,699
|
| |
-12.15
|
%
| |
-14.88
|
%
|
|
Total Interest Expense
| |
|
7,485
|
| |
|
8,582
|
| |
|
10,638
|
| |
-12.78
|
%
| |
-29.64
|
%
|
|
Net Interest Income
| | |
41,473
| | | |
41,389
| | | |
40,210
| | |
0.20
|
%
| |
3.14
|
%
|
|
Less - Provision for Loan Losses
| |
|
2,200
|
| |
|
3,575
|
| |
|
4,650
|
| |
-38.46
|
%
| |
-52.69
|
%
|
|
Net Interest Income after Provision for Loan Losses
| | |
39,273
| | | |
37,814
| | | |
35,560
| | |
3.86
|
%
| |
10.44
|
%
|
| NON-INTEREST INCOME | | | | | | | | | | |
|
Service Charges on Deposit Accounts
| | |
3,959
| | | |
4,057
| | | |
3,131
| | |
-2.42
|
%
| |
26.45
|
%
|
|
Interchange and ATM Fees
| | |
1,702
| | | |
1,473
| | | |
1,090
| | |
15.55
|
%
| |
56.15
|
%
|
|
Wealth Management
| | |
3,216
| | | |
2,955
| | | |
2,728
| | |
8.83
|
%
| |
17.89
|
%
|
|
Mortgage Banking Income
| | |
1,047
| | | |
1,950
| | | |
1,000
| | |
-46.31
|
%
| |
4.70
|
%
|
|
BOLI Income
| | |
706
| | | |
839
| | | |
721
| | |
-15.85
|
%
| |
-2.08
|
%
|
|
Other-Than-Temporary Impairment Losses on Available-for-Sale Debt
Securities:
| | | | | | | | | | |
|
Gross Change on Write-Down of Certain Investments to Fair Value
| | |
249
| | | |
172
| | | |
180
| | |
44.77
|
%
| |
38.33
|
%
|
|
Less: Portion of Other-Than-Temporary Impairment Recognized in Other
Comprehensive Income
| |
|
(289
|
)
| |
|
(238
|
)
| |
|
(358
|
)
| |
21.43
|
%
| |
-19.27
|
%
|
|
Net Impairment Losses Recognized in Earnings on Available-for-Sale
Debt Securities
| | |
(40
|
)
| | |
(66
|
)
| | |
(178
|
)
| |
-39.39
|
%
| |
-77.53
|
%
|
|
Other Non-Interest /Income
| |
|
2,008
|
| |
|
3,055
|
| |
|
1,558
|
| |
-34.27
|
%
| |
28.88
|
%
|
|
Total Non-Interest Income
| | |
12,598
| | | |
14,263
| | | |
10,050
| | |
-11.67
|
%
| |
25.35
|
%
|
| NON-INTEREST EXPENSE | | | | | | | | | | |
|
Salaries and Employee Benefits
| | |
20,252
| | | |
20,322
| | | |
18,464
| | |
-0.34
|
%
| |
9.68
|
%
|
|
Occupancy and Equipment Expenses
| | |
4,575
| | | |
3,943
| | | |
4,135
| | |
16.03
|
%
| |
10.64
|
%
|
|
Data Processing and Facilities Management
| | |
1,638
| | | |
1,578
| | | |
1,294
| | |
3.80
|
%
| |
26.58
|
%
|
|
FDIC Assessment
| | |
1,291
| | | |
1,303
| | | |
1,321
| | |
-0.92
|
%
| |
-2.27
|
%
|
|
Other Non-Interest Expense
| |
|
8,726
|
| |
|
9,542
|
| |
|
8,374
|
| |
-8.55
|
%
| |
4.20
|
%
|
|
Total Non-Interest Expense
| | |
36,482
| | | |
36,688
| | | |
33,588
| | |
-0.56
|
%
| |
8.62
|
%
|
|
INCOME BEFORE INCOME TAXES
| |
|
15,389
|
| |
|
15,389
|
| |
|
12,022
|
| |
0.00
|
%
| |
28.01
|
%
|
|
PROVISION FOR INCOME TAXES
| |
|
4,201
|
| |
|
3,551
|
| |
|
2,795
|
| |
18.30
|
%
| |
50.30
|
%
|
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | |
$
|
11,188
|
| |
$
|
11,838
|
| |
$
|
9,227
|
| |
-5.49
|
%
| |
21.25
|
%
|
| | | | | | | | | |
|
|
BASIC EARNINGS PER SHARE
| |
$
|
0.53
| | |
$
|
0.56
| | |
$
|
0.44
| | |
-5.36
|
%
| |
20.45
|
%
|
|
DILUTED EARNINGS PER SHARE
| |
$
|
0.52
| | |
$
|
0.56
| | |
$
|
0.44
| | |
-7.14
|
%
| |
18.18
|
%
|
|
BASIC AVERAGE SHARES
| | |
21,298,257
| | | |
21,208,509
| | | |
20,937,589
| | | | | |
|
DILUTED AVERAGE SHARES
| | |
21,344,339
| | | |
21,238,482
| | | |
21,008,422
| | | | | |
| | | | | | | | | |
|
PERFORMANCE RATIOS: | | | | | | | | | | |
|
Net Interest Margin (FTE)
| | |
4.02
|
%
| | |
3.91
|
%
| | |
4.08
|
%
| | | | |
|
Return on Average Assets
| | |
0.98
|
%
| | |
1.01
|
%
| | |
0.84
|
%
| | | | |
|
Return on Average Common Equity
| | |
10.24
|
%
| | |
10.85
|
%
| | |
8.95
|
%
| | | | |
| | | | | | | | | |
|
RECONCILIATION TABLE - NON-GAAP FINANCIAL
INFORMATION | | | | | | | | | | |
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP) | |
$
|
11,188
| | |
$
|
11,838
| | |
$
|
9,227
| | |
-5.49
|
%
| |
21.25
|
%
|
| |
| |
| |
| |
| |
|
| NET OPERATING EARNINGS | |
$
|
11,188
|
| |
$
|
11,838
|
| |
$
|
9,227
|
| |
-5.49
|
%
| |
21.25
|
%
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| Diluted Earnings Per Share, on an Operating Basis | |
$
|
0.52
|
| |
$
|
0.56
|
| |
$
|
0.44
|
| |
-7.14
|
%
| |
18.18
|
%
|
|
|
|
|
INDEPENDENT BANK CORP. FINANCIAL SUMMARY |
|
(Unaudited - Dollars in Thousands, Except Per Share Data)
|
|
| |
| |
| |
| |
| |
| |
| RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION |
| | Three Months Ended | | |
| | | | | | | | % Change | | % Change | | |
| | March 31, | | December 31, | | March 31, | | March 2011 vs. | | March 2011 vs. | | |
| |
| 2011 |
| |
| 2010 |
| |
| 2010 |
| | Dec. 2010 |
| March 2010 | | |
| | | | | | | | | | | |
|
| Non-Interest Income GAAP | |
$
|
12,598
| | |
$
|
14,263
| | |
$
|
10,050
| | | |
-11.67
|
%
| | |
25.35
|
%
| | |
|
Add - Other-Than-Temporary-Impairment on Securities
| |
|
40
|
| |
|
66
|
| |
|
178
|
| |
|
-39.39
|
%
| |
|
-77.53
|
%
| | |
| Non-Interest Income as Adjusted | |
$
|
12,638
|
| |
$
|
14,329
|
| |
$
|
10,228
|
| |
|
-11.80
|
%
| |
|
23.56
|
%
| | |
| | | | | | | | | | | |
|
|
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 2011 and 2010 as indicated by
the table above. 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 |
| | For the Period Ending | | For the Three Months Ending |
| | March 31, | | December 31, | | March 31, | | March 31, | | December 31, | | March 31, |
| |
| 2011 |
| |
| 2010 |
| |
| 2010 |
| |
| 2011 |
| |
| 2010 |
| |
| 2010 |
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
|
Nonperforming Loans
| | | | | | | | | | | | |
|
Commercial & Industrial Loans
| |
$
|
3,011
| | |
$
|
3,123
| | |
$
|
7,252
| | |
$
|
686
| | |
$
|
1,037
| | |
$
|
527
| |
|
Small Business Loans
| | |
617
| | | |
887
| | | |
1,294
| | | |
238
| | | |
495
| | | |
251
| |
|
Commercial Real Estate Loans
| | |
9,229
| | | |
9,836
| | | |
23,645
| | | |
602
| | | |
594
| | | |
198
| |
|
Residential Real Estate Loans
| | |
7,299
| | | |
6,728
| | | |
8,092
| | | |
122
| | | |
46
| | | |
135
| |
|
Installment Loans - Home Equity
| | |
2,589
| | | |
1,756
| | | |
948
| | | |
74
| | | |
378
| | | |
234
| |
|
Installment Loans - Other
| |
|
652
|
| |
|
778
|
| |
|
609
|
| |
|
289
|
| |
|
388
|
| |
|
388
|
|
|
Total Nonperforming Loans / Total Net Charge-offs
| |
$
|
23,397
|
| |
$
|
23,108
|
| |
$
|
41,840
|
| |
$
|
2,011
|
| |
$
|
2,938
|
| |
$
|
1,733
|
|
|
Non-Accrual Securities
| | |
1,054
| | | |
1,051
| | | |
899
| | | | | | | |
|
Other Assets in Possession
| | |
59
| | | |
61
| | | |
98
| | | | | | | |
|
Other Real Estate Owned
| |
|
9,346
|
| |
|
7,273
|
| |
|
5,990
|
| | | | | | |
|
Nonperforming Assets
| |
$
|
33,856
|
| |
$
|
31,493
|
| |
$
|
48,827
|
| | | | | | |
| | | | | | | | | | | |
|
|
Nonperforming Loans/Gross Loans
| | |
0.64
|
%
| | |
0.65
|
%
| | |
1.23
|
%
| | | | | | |
|
Allowance for Loan Losses/Nonperforming Loans
| | |
198.50
|
%
| | |
200.17
|
%
| | |
108.22
|
%
| | | | | | |
|
Gross Loans/Total Deposits
| | |
101.21
|
%
| | |
98.01
|
%
| | |
98.21
|
%
| | | | | | |
|
Allowance for Loan Losses/Total Loans
| | |
1.28
|
%
| | |
1.30
|
%
| | |
1.33
|
%
| | | | | | |
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
|
Net charge-offs to average loans (quarter annualized)
| | | | | | | | |
0.23
|
%
| | |
0.33
|
%
| | |
0.21
|
%
|
| | | | | | | | | | | |
|
| | QTD | | | | | | | | | | |
| | March 31, | | | | | | | | | | |
Nonperforming Assets Reconciliation | |
| 2011 |
| | | | | | | | | | |
|
Nonperforming Assets Beginning Balance
| |
$
|
31,493
| | | | | | | | | | | |
|
New to Nonperforming
| | |
9,046
| | | | | | | | | | | |
|
Loans Charged-Off
| | |
(2,484
|
)
| | | | | | | | | | |
|
Loans Paid-Off
| | |
(1,934
|
)
| | | | | | | | | | |
|
Loans Transferred to Other Real Estate Owned/Other Assets
| | |
(3,061
|
)
| | | | | | | | | | |
|
Loans Restored to Accrual Status
| | |
(1,116
|
)
| | | | | | | | | | |
|
New to Other Real Estate Owned
| | |
3,061
| | | | | | | | | | | |
|
Sale of Other Real Estate Owned
| | |
(457
|
)
| | | | | | | | | | |
|
Other
| |
|
(692
|
)
| | | | | | | | | | |
|
Nonperforming Assets Ending Balance
| |
$
|
33,856
|
| | | | | | | | | | |
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| | March 31, | | December 31, | | March 31, | | | | | | |
Financial Ratios | |
| 2011 |
| |
| 2010 |
| |
| 2010 |
| | | | | | |
|
Book Value per Common Share
| |
$
|
20.93
| | |
$
|
20.57
| | |
$
|
19.76
| | | | | | | |
Tangible Common Book Value per Share (proforma to include the tax
deductibility of goodwill and exclude impact of CPP) - Non-GAAP
| |
$
|
15.26
| | |
$
|
14.86
| | |
$
|
13.97
| | | | | | | |
|
Tangible Common Capital/Tangible Assets
| | |
6.79
|
%
| | |
6.47
|
%
| | |
6.24
|
%
| | | | | | |
Tangible Common Capital/Tangible Asset (proforma to include the
tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP
| | |
7.22
|
%
| | |
6.89
|
%
| | |
6.68
|
%
| | | | | | |
| | | | | | | | | | | |
|
Capital Adequacy | | | | | | | | | | | | |
|
Tier one leverage capital ratio (1)
| | |
8.48
|
%
| | |
8.19
|
%
| | |
8.06
|
%
| | | | | | |
|
Tier one common ratio (1)
| | |
8.81
|
%
| | |
8.61
|
%
| | |
8.29
|
%
| | | | | | |
| (1) Estimated number for March 31, 2011 | | | | | | | | | | | | |
|
|
|
|
| INDEPENDENT BANK CORP. |
|
SUPPLEMENTAL FINANCIAL INFORMATION
|
|
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA
|
| Three Months Ended |
| | March 31, 2011 |
| December 31, 2010 |
| March 31, 2010 |
| | |
| 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
| |
$
|
27,652
| |
$
|
17
| |
0.25
|
%
| |
$
|
113,325
| |
$
|
71
| |
0.25
|
%
| |
$
|
23,144
| |
$
|
24
| |
0.42
|
%
|
|
Securities:
| | | | | | | | | | | | | | | | | | |
|
Trading Assets
| | |
8,124
| | |
63
| |
3.15
|
%
| | |
7,469
| | |
80
| |
4.25
|
%
| | |
6,800
| | |
60
| |
3.58
|
%
|
|
Taxable Investment Securities
| | |
568,933
| | |
5,430
| |
3.87
|
%
| | |
588,797
| | |
5,627
| |
3.79
|
%
| | |
568,550
| | |
6,409
| |
4.57
|
%
|
|
Non-taxable Investment Securities (1)
| |
|
10,175
|
|
|
191
|
|
7.61
|
%
| |
|
10,816
|
|
|
203
|
|
7.45
|
%
| |
|
19,111
|
|
|
342
|
|
7.26
|
%
|
|
Total Securities:
| |
|
587,232
|
|
|
5,684
|
|
3.93
|
%
| |
|
607,082
|
|
|
5,910
|
|
3.86
|
%
| |
|
594,461
|
|
|
6,811
|
|
4.65
|
%
|
|
Loans Held for Sale
| | |
14,190
| | |
119
| |
3.40
|
%
| | |
34,252
| | |
276
| |
3.20
|
%
| | |
7,125
| | |
106
| |
6.03
|
%
|
|
Loans
| | | | | | | | | | | | | | | | | | |
|
Commercial and Industrial
| | |
500,202
| | |
5,401
| |
4.38
|
%
| | |
486,845
| | |
5,405
| |
4.40
|
%
| | |
377,855
| | |
4,248
| |
4.56
|
%
|
|
Commercial Real Estate
| | |
1,749,292
| | |
23,197
| |
5.38
|
%
| | |
1,667,304
| | |
23,384
| |
5.56
|
%
| | |
1,630,944
| | |
23,258
| |
5.78
|
%
|
|
Commercial Construction
| | |
123,501
| | |
1,410
| |
4.63
|
%
| | |
136,831
| | |
1,540
| |
4.47
|
%
| | |
171,535
| | |
2,076
| |
4.91
|
%
|
|
Small Business
| |
|
80,286
| |
|
1,179
|
|
5.96
|
%
| |
|
79,863
| |
|
1,190
|
|
5.91
|
%
| |
|
82,476
| |
|
1,217
| |
5.98
|
%
|
|
Total Commercial
| | |
2,453,281
| | |
31,187
| |
5.16
|
%
| | |
2,370,843
| | |
31,519
| |
5.27
|
%
| | |
2,262,810
| | |
30,799
| |
5.52
|
%
|
|
Residential Real Estate
| | |
468,146
| | |
5,399
| |
4.68
|
%
| | |
490,439
| | |
5,810
| |
4.70
|
%
| | |
548,533
| | |
6,765
| |
5.00
|
%
|
|
Residential Construction
| | |
3,712
| | |
44
| |
4.81
|
%
| | |
4,842
| | |
59
| |
4.83
|
%
| | |
9,102
| | |
118
| |
5.26
|
%
|
|
Consumer - Home Equity
| |
|
601,624
| |
|
5,622
|
|
3.79
|
%
| |
|
542,979
| |
|
5,229
|
|
3.82
|
%
| |
|
478,324
| |
|
4,522
| |
3.83
|
%
|
|
Total Consumer Real Estate
| |
|
1,073,482
| |
|
11,065
|
|
4.18
|
%
| |
|
1,038,260
| |
|
11,098
|
|
4.24
|
%
| |
|
1,035,959
| |
|
11,405
| |
4.46
|
%
|
|
Total Other Consumer
| |
|
64,066
| |
|
1,229
|
|
7.78
|
%
| |
|
72,781
| |
|
1,412
|
|
7.70
|
%
| |
|
105,140
| |
|
2,012
| |
7.76
|
%
|
|
Total Loans
| |
|
3,590,829
| |
|
43,481
|
|
4.91
|
%
| |
|
3,481,884
| |
|
44,029
|
|
5.02
|
%
| |
|
3,403,909
| |
|
44,216
| |
5.27
|
%
|
| Total Interest-Earning Assets | |
$
|
4,219,903
|
|
$
|
49,301
|
|
4.74
|
%
| |
$
|
4,236,543
|
|
$
|
50,286
|
|
4.71
|
%
| |
$
|
4,028,639
|
|
$
|
51,157
|
|
5.15
|
%
|
|
Cash and Due from Banks
| | |
52,023
| | | | | | |
55,541
| | | | | | |
66,405
| | | | |
|
Federal Home Loan Bank Stock
| | |
35,854
| | | | | | |
35,854
| | | | | | |
35,854
| | | | |
|
Other Assets
| |
|
320,658
| | | | | |
|
331,791
| | | | | |
|
304,200
| | | | |
| Total Assets | |
$
|
4,628,438
| | | | | |
$
|
4,659,729
| | | | | |
$
|
4,435,098
| | | | |
| Interest-bearing Liabilities: | | | | | | | | | | | | | | | | | | |
|
Deposits:
| | | | | | | | | | | | | | | | | | |
|
Savings and Interest Checking Accounts
| |
$
|
1,289,201
| |
$
|
760
| |
0.24
|
%
| |
$
|
1,271,639
| |
$
|
876
| |
0.27
|
%
| |
$
|
1,056,156
| |
$
|
1,184
| |
0.45
|
%
|
|
Money Market
| | |
723,946
| | |
785
| |
0.44
|
%
| | |
736,700
| | |
866
| |
0.47
|
%
| | |
702,390
| | |
1,320
| |
0.76
|
%
|
|
Time Deposits
| |
|
672,893
|
|
|
1,940
|
|
1.17
|
%
| |
|
721,970
|
|
|
2,287
|
|
1.26
|
%
| |
|
889,449
|
|
|
3,435
|
|
1.57
|
%
|
|
Total interest-bearing deposits:
| |
$
|
2,686,040
| |
$
|
3,485
| |
0.53
|
%
| |
$
|
2,730,309
| |
$
|
4,029
| |
0.59
|
%
| |
$
|
2,647,995
| |
$
|
5,939
| |
0.91
|
%
|
|
Borrowings:
| | | | | | | | | | | | | | | | | | |
|
Federal Home Loan Bank Borrowings
| |
$
|
335,457
| |
$
|
1,910
| |
2.31
|
%
| |
$
|
306,075
| |
$
|
2,391
| |
3.10
|
%
| |
$
|
340,301
| |
$
|
2,432
| |
2.90
|
%
|
|
Federal Funds Purchased and Assets Sold
| | | | | | | | | | | | | | | | | | |
|
Under Repurchase Agreement
| | |
178,185
| | |
651
| |
1.48
|
%
| | |
182,501
| | |
693
| |
1.51
|
%
| | |
184,624
| | |
830
| |
1.82
|
%
|
|
Junior Subordinated Debentures
| | |
61,857
| | |
904
| |
5.93
|
%
| | |
61,857
| | |
922
| |
5.91
|
%
| | |
61,857
| | |
902
| |
5.91
|
%
|
|
Subordinated Debentures
| | |
30,000
| | |
535
| |
7.23
|
%
| | |
30,000
| | |
547
| |
7.23
|
%
| | |
30,000
| | |
535
| |
7.23
|
%
|
|
Other Borrowings
| |
|
2,761
|
|
|
-
|
|
0.00
|
%
| |
|
3,093
|
|
|
-
|
|
0.00
|
%
| |
|
2,360
|
|
|
-
|
|
0.00
|
%
|
|
Total Borrowings:
| |
|
608,260
|
|
|
4,000
|
|
2.67
|
%
| |
|
583,526
|
|
|
4,553
|
|
3.10
|
%
| |
|
619,142
|
|
|
4,699
|
|
3.08
|
%
|
| Total Interest-Bearing Liabilities | |
$
|
3,294,300
|
|
$
|
7,485
|
|
0.92
|
%
| |
$
|
3,313,835
|
|
$
|
8,582
|
|
1.03
|
%
| |
$
|
3,267,137
|
|
$
|
10,638
|
|
1.32
|
%
|
|
Demand Deposits
| | |
831,032
| | | | | | |
841,440
| | | | | | |
702,833
| | | | |
| | | | | | | | | | | | | | | | | |
|
|
Other Liabilities
| |
|
59,791
| | | | | |
|
71,785
| | | | | |
|
47,020
| | | | |
|
Total Liabilities
| |
$
|
4,185,123
| | | | | |
$
|
4,227,060
| | | | | |
$
|
4,016,990
| | | | |
|
Stockholders' Equity
| |
|
443,315
| | | | | |
|
432,669
| | | | | |
|
418,108
| | | | |
| Total Liabilities and Stockholders' Equity | |
$
|
4,628,438
| | | | | |
$
|
4,659,729
| | | | | |
$
|
4,435,098
| | | | |
| | | | | | | | | | | | | | | | | |
|
|
Net Interest Income
| | | |
$
|
41,816
| | | | | |
$
|
41,704
| | | | | |
$
|
40,519
| | |
| | | | | | | | | | | | | | | | | |
|
|
Interest Rate Spread (2)
| | | | | |
3.82
|
%
| | | | | |
3.68
|
%
| | | | | |
3.83
|
%
|
| | | | | | | | | | | | | | | | | |
|
|
Net Interest Margin (3)
| | | | | |
4.02
|
%
| | | | | |
3.91
|
%
| | | | | |
4.08
|
%
|
| | | | | | | | | | | | | | | | | |
|
| Supplemental Information: | | | | | | | | | | | | | | | | | | |
|
Total Deposits, including Demand Deposits
| |
$
|
3,517,072
| |
$
|
3,485
| | | |
$
|
3,571,749
| |
$
|
4,029
| | | |
$
|
3,350,828
| |
$
|
5,939
| | |
|
Cost of Total Deposits
| | | | | |
0.40
|
%
| | | | | |
0.45
|
%
| | | | | |
0.72
|
%
|
|
Total Funding Liabilities, including Demand Deposits
| |
$
|
4,125,332
| |
$
|
7,485
| | | |
$
|
4,155,275
| |
$
|
8,582
| | | |
$
|
3,969,970
| |
$
|
10,638
| | |
|
Cost of Total Funding Liabilities
| | | | | |
0.74
|
%
| | | | | |
0.82
|
%
| | | | | |
1.09
|
%
|
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
|
(1) The total amount of adjustment to present interest income and
yield on a fully tax-equivalent basis is $343, 315, and $309 for the
three months ended March 31, 2011, December 31, 2010, and March 31,
2010, 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