Exceptional Commercial and Home Equity Loan Growth Combined With
Solid Credit Quality
ROCKLAND, Mass.--(BUSINESS WIRE)--
Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust
Company, today announced net income of $11.8 million for the fourth
quarter of 2010, compared to $11.1 million recorded in the third
quarter. On a diluted earnings per share basis, the Company reported
earnings of $0.56 for the quarter, an increase of 5.7% from the $0.53 in
earnings recorded for the previous quarter.
For the year ended December 31, 2010, net income was $40.2 million. On a
diluted earnings per share basis, the Company reported earnings of $1.90
for the year ended December 31, 2010, compared to $0.88 for the year
ended December 31, 2009.
Christopher Oddleifson, the President and Chief Executive Officer of
Independent Bank Corp. and Rockland Trust Company, stated “Rockland
Trust had an outstanding year in 2010. Our strength and stability in the
market and the focused efforts of all my colleagues enabled us to earn
new customer relationships and expand existing relationships. We are
very pleased with our overall performance, especially during these
difficult economic times.”
BALANCE SHEET
Total assets of $4.7 billion at December 31, 2010 are consistent with
the prior quarter.
Total loans were $3.6 billion at December 31, 2010, an increase of
$147.6 million, or 4.3%, compared with the prior quarter. The Company
achieved very strong growth in its commercial and industrial loan
portfolio, which increased by $64.1 million, or 14.6%, in the fourth
quarter, as the Company continued to expand its base of high-quality
corporate relationships. Commercial real estate loan generation remained
robust, as total outstandings increased by $75.8 million, or 4.6%. The
Company’s commercial construction portfolio declined by $14.7 million,
or 10.2%, as projects transitioned to permanent financing. The home
equity portfolio continued its upward trajectory, rising $61.3 million,
or 11.8%. Residential real estate loans declined by $29.5 million, or
5.9%, as loans refinanced into longer-term, fixed-rate loans, which are
not commonly held in portfolio by the Company.
Total deposits increased by $10.6 million, or 0.3%, during the quarter
ending December 31, 2010 while core deposits (non-time deposits) grew by
$83.8 million, or 2.9% during the same period. Savings and interest
checking rose by $61.0 million, or 4.6%, and demand deposits increased
by $36.6 million, or 4.5%. Partially offsetting those deposit increases
were decreases in money market accounts of $13.8 million, or 1.9%. The
Company’s emphasis on lower cost core deposits has led to a steady
reduction in time deposits which declined by $73.1 million, or 9.5%, in
the fourth quarter. Core deposits have risen to 80.9% of total deposits
at December 31, 2010, while the total cost of deposits declined to 0.45%
for the current quarter, down 8 basis points from the prior period.
Securities were $587.8 million, down $37.1 million from the prior
quarter due to paydowns.
Stockholders’ equity at December 31, 2010 totaled $436.5 million as
compared to $425.7 million at September 30, 2010. The Tier 1 leverage
capital ratio at December 31, 2010 rose to 8.2% from 8.0% in the prior
quarter, maintaining the Company’s well-capitalized position.
NET INTEREST INCOME
Net interest income of $41.4 million was up modestly from the prior
quarter. The net interest margin in the fourth quarter of 2010 expanded
slightly to 3.91%, compared to the linked quarter period of 3.89%, as a
result of a reduction in funding costs.
NON-INTEREST INCOME
The Company recorded non-interest income of $14.3 million during the
fourth quarter of 2010 which represents a $2.6 million, or 22.4%,
increase from the prior quarter. The change in non-interest income is
composed of the following:
-
Service charges on deposit accounts increased by $1.1 million, or
24.5%, primarily due to debit card usage and overdraft privilege fees.
-
Wealth management revenue increased by $104,000. Assets under
management in the wealth management division rose to nearly $1.6
billion at December 31, 2010, an increase of $107.6 million compared
to September 30, 2010.
-
Mortgage banking income increased by $481,000, due to increased
originations in loans held for sale as a result of the low rate
environment. The balance of the mortgage servicing rights asset was
$1.6 million and represented 63 basis points of the servicing
portfolio at December 31, 2010.
-
Other non-interest income increased by $1.0 million, or 51.2%, mainly
due to fee revenue associated with loan level interest rate
derivatives.
NON-INTEREST EXPENSE
The Company recorded non-interest expense of $36.7 million in the fourth
quarter of 2010, an increase of $2.1 million, or 6.2%, when compared to
the quarter ended September 30, 2010. Significant changes of
non-interest expense included the following:
-
Salaries and Employee Benefits increased by $530,000, or 2.7%, mainly
due to increases in incentive compensation.
-
Other non-interest expense increased by $1.4 million, or 17.0%, which
is primarily attributable to increases in credit-related loan workout
expenses of $502,000, loan level derivative expenses of $168,000, and
consultant fees of $120,000, as well as a computer software write-off
of $560,000.
The Company reported a return on average assets and a return on average
common equity in the fourth quarter of 2010 of 1.01% and 10.85%,
respectively, as compared to 0.95% and 10.38% for the quarter ended
September 30, 2010.
ASSET QUALITY
Net charge-offs decreased to $2.9 million, or 0.33% on an annualized
basis of average loans, for the fourth quarter compared to $3.2 million,
or 0.37% for the quarter ending September 30, 2010. The provision for
loan losses was $3.6 million and $3.5 million for the quarters ended
December 31, 2010 and September 30, 2010, respectively. Nonperforming
loans decreased to $23.1 million, or 0.65% of total loans at December
31, 2010, from $24.7 million, or 0.72% of total loans at September 30,
2010. The amount of nonperforming loans at December 31, 2010 was 36.1%
lower than the level of non-performing loans at December 31, 2009.
Delinquency as a percent of loans remained steady with prior quarter at
1.11%.
The allowance for loan losses was $46.3 million at December 31, 2010,
compared with the prior quarter of $45.6 million. The Company’s
allowance for loan losses was 1.30%, as a percentage of total loans at
December 31, 2010, compared to 1.34%, at September 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 fourth quarter earnings at 10:00 a.m. Eastern
Time on Friday, January 21, 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: 447155. The web cast replay will be available until January
21, 2012.
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
| | December 31, | | September 30, | | December 31, | | Dec 2010 vs. | | Dec. 2010 vs. |
|
|
| 2010 |
| 2010 |
| 2009 |
| Sept. 2010 | | Dec. 2009 |
| | | | | | | | | | | | | | | | | |
|
| Assets | | | | | | | | | | | | | | | | | | |
|
Cash and Due From Banks
| |
$
|
42,112
| | |
$
|
54,207
| | |
$
|
66,724
| | |
-22.31
|
%
| |
-36.89
|
%
|
|
Interest Earning Deposits with Banks
| | |
119,170
| | | |
222,392
| | | |
55,181
| | |
-46.41
|
%
| |
115.96
|
%
|
|
Fed Funds Sold and Short Term Investments
| | |
-
| | | |
526
| | | |
-
| | |
-100.00
|
%
| |
n/a
| |
|
Securities
| | | | | | | | | | | | | | | | | | |
|
Trading Assets
| | |
7,597
| | | |
7,418
| | | |
6,171
| | |
2.41
|
%
| |
23.11
|
%
|
|
Securities Available for Sale
| | |
377,457
| | | |
436,887
| | | |
508,650
| | |
-13.60
|
%
| |
-25.79
|
%
|
|
Securities Held to Maturity
| |
|
202,732
|
| |
|
180,623
|
| |
|
93,410
|
| |
12.24
|
%
| |
117.03
|
%
|
|
Total Securities
| | |
587,786
| | | |
624,928
| | | |
608,231
| | |
-5.94
|
%
| |
-3.36
|
%
|
| | | | | | | | | | | | | | | | | |
|
|
Loans Held for Sale
| | |
27,917
| | | |
21,321
| | | |
13,466
| | |
30.94
|
%
| |
107.31
|
%
|
|
Loans
| | | | | | | | | | | | | | | | | | |
|
Commercial and Industrial
| | |
502,952
| | | |
438,873
| | | |
373,531
| | |
14.60
|
%
| |
34.65
|
%
|
|
Commercial Real Estate
| | |
1,717,118
| | | |
1,641,356
| | | |
1,614,474
| | |
4.62
|
%
| |
6.36
|
%
|
|
Commercial Construction
| | |
129,421
| | | |
144,109
| | | |
175,312
| | |
-10.19
|
%
| |
-26.18
|
%
|
|
Small Business
| |
|
80,026
|
| |
|
79,897
|
| |
|
82,569
|
| |
0.16
|
%
| |
-3.08
|
%
|
|
Total Commercial
| | |
2,429,517
| | | |
2,304,235
| | | |
2,245,886
| | |
5.44
|
%
| |
8.18
|
%
|
|
Residential Real Estate
| | |
473,936
| | | |
503,471
| | | |
555,306
| | |
-5.87
|
%
| |
-14.65
|
%
|
|
Residential Construction
| | |
4,175
| | | |
5,449
| | | |
10,736
| | |
-23.38
|
%
| |
-61.11
|
%
|
|
Consumer - Home Equity
| |
|
579,278
|
| |
|
517,962
|
| |
|
471,862
|
| |
11.84
|
%
| |
22.76
|
%
|
|
Total Consumer Real Estate
| |
|
1,057,389
|
| |
|
1,026,882
|
| |
|
1,037,904
|
| |
2.97
|
%
| |
1.88
|
%
|
|
Total Other Consumer
| |
|
68,773
|
| |
|
76,926
|
| |
|
111,725
|
| |
-10.60
|
%
| |
-38.44
|
%
|
|
Total Loans
| |
|
3,555,679
|
| |
|
3,408,043
|
| |
|
3,395,515
|
| |
4.33
|
%
| |
4.72
|
%
|
|
Less - Allowance for Loan Losses
| |
|
(46,255
|
)
| |
|
(45,619
|
)
| |
|
(42,361
|
)
| |
1.39
|
%
| |
9.19
|
%
|
|
Net Loans
| | |
3,509,424
| | | |
3,362,424
| | | |
3,353,154
| | |
4.37
|
%
| |
4.66
|
%
|
|
Federal Home Loan Bank Stock
| | |
35,854
| | | |
35,854
| | | |
35,854
| | |
0.00
|
%
| |
0.00
|
%
|
|
Bank Premises and Equipment
| | |
45,712
| | | |
45,420
| | | |
44,235
| | |
0.64
|
%
| |
3.34
|
%
|
|
Goodwill and Core Deposit Intangible
| | |
141,956
| | | |
142,422
| | | |
143,730
| | |
-0.33
|
%
| |
-1.23
|
%
|
|
Other Assets
| |
|
185,807
|
| |
|
194,297
|
| |
|
161,446
|
| |
-4.37
|
%
| |
15.09
|
%
|
|
Total Assets
| |
$
|
4,695,738
|
| |
$
|
4,703,791
|
| |
$
|
4,482,021
|
| |
-0.17
|
%
| |
4.77
|
%
|
| | | | | | | | | | | | | | | | | |
|
| Liabilities and Stockholders' Equity | | | | | | | | | | | | | | | | | | |
|
Deposits
| | | | | | | | | | | | | | | | | | |
|
Demand Deposits
| |
$
|
842,067
| | |
$
|
805,491
| | |
$
|
721,792
| | |
4.54
|
%
| |
16.66
|
%
|
|
Savings and Interest Checking Accounts
| | |
1,375,254
| | | |
1,314,273
| | | |
1,073,990
| | |
4.64
|
%
| |
28.05
|
%
|
|
Money Market
| | |
717,286
| | | |
731,091
| | | |
661,731
| | |
-1.89
|
%
| |
8.40
|
%
|
|
Time Certificates of Deposit
| |
|
693,176
|
| |
|
766,303
|
| |
|
917,781
|
| |
-9.54
|
%
| |
-24.47
|
%
|
|
Total Deposits
| | |
3,627,783
| | | |
3,617,158
| | | |
3,375,294
| | |
0.29
|
%
| |
7.48
|
%
|
|
Borrowings
| | | | | | | | | | | | | | | | | | |
|
Federal Home Loan Bank Borrowings
| | |
302,414
| | | |
302,545
| | | |
362,936
| | |
-0.04
|
%
| |
-16.68
|
%
|
|
Fed Funds Purchased and Assets Sold
| | | | | | | | | | | | | | | | | | |
|
Under Repurchase Agreements
| | |
168,119
| | | |
180,326
| | | |
190,452
| | |
-6.77
|
%
| |
-11.73
|
%
|
|
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
| |
|
3,044
|
| |
|
2,701
|
| |
|
2,152
|
| |
12.70
|
%
| |
41.45
|
%
|
|
Total Borrowings
| | |
565,434
| | | |
577,429
| | | |
647,397
| | |
-2.08
|
%
| |
-12.66
|
%
|
|
Total Deposits and Borrowings
| | |
4,193,217
| | | |
4,194,587
| | | |
4,022,691
| | |
-0.03
|
%
| |
4.24
|
%
|
|
Other Liabilities
| | |
66,049
| | | |
83,543
| | | |
46,681
| | |
-20.94
|
%
| |
41.49
|
%
|
|
Stockholders' Equity
| | | | | | | | | | | | | | | | | | |
|
Common Stock
| | |
210
| | | |
210
| | | |
209
| | |
0.00
|
%
| |
0.48
|
%
|
|
Additional Paid in Capital
| | |
226,708
| | | |
226,255
| | | |
225,088
| | |
0.20
|
%
| |
0.72
|
%
|
|
Retained Earnings
| | |
210,320
| | | |
201,950
| | | |
184,599
| | |
4.14
|
%
| |
13.93
|
%
|
|
Accumulated Other Comprehensive Income/(Loss), Net of Tax
| |
|
(766
|
)
| |
|
(2,754
|
)
| |
|
2,753
|
| |
-72.19
|
%
| |
-127.82
|
%
|
|
Total Stockholders' Equity
| |
|
436,472
|
| |
|
425,661
|
| |
|
412,649
|
| |
2.54
|
%
| |
5.77
|
%
|
|
Total Liabilities and Stockholders' Equity
| |
$
|
4,695,738
|
| |
$
|
4,703,791
|
| |
$
|
4,482,021
|
| |
-0.17
|
%
| |
4.77
|
%
|
| | | | | | | | | | | | | | | | | |
|
|
|
INDEPENDENT BANK CORP. FINANCIAL SUMMARY |
|
(Unaudited - Dollars in Thousands, Except Per Share Data)
|
|
| | | |
| | | |
| | | |
| | |
| | |
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
|
CONSOLIDATED STATEMENTS OF INCOME
| | Three Months Ended |
| | | | | | | | | | | | | | % Change | | % Change |
| | December 31, | | September 30, | | December 31, | | Dec 2010 vs. | | Dec. 2010 vs. |
| | 2010 | | 2010 | | 2009 | | Sept. 2010 | | Dec. 2009 |
| | | | | | | | | | | | | | | | | |
|
| INTEREST INCOME | | | | | | | | | | | | | | | | | | |
|
Interest on Fed Funds Sold and Short Term Investments
| |
$
|
71
| | |
$
|
135
| | |
$
|
18
| | |
-47.41
|
%
| |
294.44
|
%
|
|
Interest and Dividends on Securities
| | |
5,827
| | | |
5,843
| | | |
7,096
| | |
-0.27
|
%
| |
-17.88
|
%
|
|
Interest on Loans
| | |
43,797
| | | |
44,436
| | | |
45,637
| | |
-1.44
|
%
| |
-4.03
|
%
|
|
Interest on Loans Held for Sale
| |
|
276
|
| |
|
174
|
| |
|
132
|
| |
58.62
|
%
| |
109.09
|
%
|
|
Total Interest Income
| | |
49,971
| | | |
50,588
| | | |
52,883
| | |
-1.22
|
%
| |
-5.51
|
%
|
| INTEREST EXPENSE | | | | | | | | | | | | | | | | | | |
|
Interest on Deposits
| | |
4,029
| | | |
4,801
| | | |
6,869
| | |
-16.08
|
%
| |
-41.35
|
%
|
|
Interest on Borrowed Funds
| |
|
4,553
|
| |
|
4,590
|
| |
|
5,316
|
| |
-0.81
|
%
| |
-14.35
|
%
|
|
Total Interest Expense
| |
|
8,582
|
| |
|
9,391
|
| |
|
12,185
|
| |
-8.61
|
%
| |
-29.57
|
%
|
|
Net Interest Income
| | |
41,389
| | | |
41,197
| | | |
40,698
| | |
0.47
|
%
| |
1.70
|
%
|
|
Less - Provision for Loan Losses
| |
|
3,575
|
| |
|
3,500
|
| |
|
4,424
|
| |
2.14
|
%
| |
-19.19
|
%
|
|
Net Interest Income after Provision for Loan Losses
| | |
37,814
| | | |
37,697
| | | |
36,274
| | |
0.31
|
%
| |
4.25
|
%
|
| NON-INTEREST INCOME | | | | | | | | | | | | | | | | | | |
|
Service Charges on Deposit Accounts
| | |
5,530
| | | |
4,441
| | | |
4,541
| | |
24.52
|
%
| |
21.78
|
%
|
|
Wealth Management
| | |
2,955
| | | |
2,851
| | | |
2,729
| | |
3.65
|
%
| |
8.28
|
%
|
|
Mortgage Banking Income
| | |
1,950
| | | |
1,469
| | | |
1,280
| | |
32.74
|
%
| |
52.34
|
%
|
|
BOLI Income
| | |
839
| | | |
901
| | | |
813
| | |
-6.88
|
%
| |
3.20
|
%
|
|
Net Gain/(Loss) on Sale of Securities
| | |
-
| | | |
(22
|
)
| | |
-
| | |
-100.00
|
%
| |
n/a
| |
Other-Than-Temporary Impairment Losses on Available-for-Sale Debt
Securities:
| | | | | | | | | | | | | | | | | | |
|
Gross Change on Write-Down of Certain Investments to Fair Value
| | |
172
| | | |
207
| | | |
2
| | |
-16.91
|
%
| |
8500.00
|
%
|
|
Less: Portion of Other-Than-Temporary Impairment Recognized in Other
Comprehensive Income
| |
|
(238
|
)
| |
|
(214
|
)
| |
|
(2,167
|
)
| |
11.21
|
%
| |
-89.02
|
%
|
|
Net Impairment Losses Recognized in Earnings on Available-for-Sale
Debt Securities
| | |
(66
|
)
| | |
(7
|
)
| | |
(2,165
|
)
| |
842.86
|
%
| |
-96.95
|
%
|
|
Other Non-Interest /Income
| |
|
3,055
|
| |
|
2,021
|
| |
|
2,831
|
| |
51.16
|
%
| |
7.91
|
%
|
|
Total Non-Interest Income
| | |
14,263
| | | |
11,654
| | | |
10,029
| | |
22.39
|
%
| |
42.22
|
%
|
| NON-INTEREST EXPENSE | | | | | | | | | | | | | | | | | | |
|
Salaries and Employee Benefits
| | |
20,322
| | | |
19,792
| | | |
18,537
| | |
2.68
|
%
| |
9.63
|
%
|
|
Occupancy and Equipment Expenses
| | |
3,943
| | | |
3,839
| | | |
3,848
| | |
2.71
|
%
| |
2.47
|
%
|
|
Data Processing and Facilities Management
| | |
1,578
| | | |
1,404
| | | |
1,178
| | |
12.39
|
%
| |
33.96
|
%
|
|
FDIC Assessment
| | |
1,303
| | | |
1,352
| | | |
1,320
| | |
-3.62
|
%
| |
-1.29
|
%
|
|
Other Non-Interest Expense
| |
|
9,542
|
| |
|
8,153
|
| |
|
9,765
|
| |
17.04
|
%
| |
-2.28
|
%
|
|
Total Non-Interest Expense
| | |
36,688
| | | |
34,540
| | | |
34,648
| | |
6.22
|
%
| |
5.89
|
%
|
|
INCOME BEFORE INCOME TAXES
| |
|
15,389
|
| |
|
14,811
|
| |
|
11,655
|
| |
3.90
|
%
| |
32.04
|
%
|
|
PROVISION FOR INCOME TAXES
| |
|
3,551
|
| |
|
3,666
|
| |
|
2,555
|
| |
-3.14
|
%
| |
38.98
|
%
|
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | |
$
|
11,838
|
| |
$
|
11,145
|
| |
$
|
9,100
|
| |
6.22
|
%
| |
30.09
|
%
|
| | | | | | | | | | | | | | | | | |
|
|
BASIC EARNINGS PER SHARE
| |
$
|
0.56
| | |
$
|
0.53
| | |
$
|
0.43
| | |
5.66
|
%
| |
30.23
|
%
|
|
DILUTED EARNINGS PER SHARE
| |
$
|
0.56
| | |
$
|
0.53
| | |
$
|
0.43
| | |
5.66
|
%
| |
30.23
|
%
|
|
BASIC AVERAGE SHARES
| | |
21,208,509
| | | |
20,981,372
| | | |
20,931,154
| | | | | | | |
|
DILUTED AVERAGE SHARES
| | |
21,238,482
| | | |
21,034,165
| | | |
20,975,807
| | | | | | | |
| | | | | | | | | | | | | | | | | |
|
PERFORMANCE RATIOS: | | | | | | | | | | | | | | | | | | |
|
Net Interest Margin (FTE)
| | |
3.91
|
%
| | |
3.89
|
%
| | |
3.98
|
%
| | | | | | |
|
Return on Average Assets
| | |
1.01
|
%
| | |
0.95
|
%
| | |
0.81
|
%
| | | | | | |
|
Return on Average Common Equity
| | |
10.85
|
%
| | |
10.38
|
%
| | |
8.75
|
%
| | | | | | |
| | | | | | | | | | | | | | | | | |
|
RECONCILIATION TABLE - NON-GAAP FINANCIAL
INFORMATION | | | | | | | | | | | | | | | | | | |
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP) | |
$
|
11,838
| | |
$
|
11,145
| | |
$
|
9,100
| | |
6.22
|
%
| |
30.09
|
%
|
| Non-Interest Income Components | | | | | | | | | | | | | | | | | | |
|
(Less)/Add - Net (Gain)/Loss on Sale of Securities, net of tax
| |
|
-
|
| |
|
13
|
| |
|
-
|
| |
|
| |
|
|
| NET OPERATING EARNINGS | |
$
|
11,838
|
| |
$
|
11,158
|
| |
$
|
9,100
|
| |
6.09
|
%
| |
30.09
|
%
|
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
| Diluted Earnings Per Share, on an Operating Basis | |
$
|
0.56
|
| |
$
|
0.53
|
| |
$
|
0.43
|
| |
5.66
|
%
| |
30.23
|
%
|
| | | | | | | | | | | | | | | | | |
|
|
| | | |
| | | |
| | |
|
CONSOLIDATED STATEMENTS OF INCOME
| | | | | | | | | | | |
| | Twelve Months Ended | | % Change |
| | December 31, | | | December 31, | | Dec. 2010 vs. |
| | 2010 | | 2009 | | Dec. 2009 |
| | | | | | | | | | |
|
| INTEREST INCOME | | | | | | | | | | | |
|
Interest on Fed Funds Sold and Short Term Investments
| |
$
|
337
| | |
$
|
290
| | |
16.21
|
%
|
|
Interest and Dividends on Securities
| | |
24,657
| | | |
29,642
| | |
-16.82
|
%
|
|
Interest on Loans
| | |
177,064
| | | |
172,128
| | |
2.87
|
%
|
|
Interest on Loans Held for Sale
| |
|
666
|
| |
|
629
|
| |
5.88
|
%
|
|
Total Interest Income
| | |
202,724
| | | |
202,689
| | |
0.02
|
%
|
| INTEREST EXPENSE | | | | | | | | | | | |
|
Interest on Deposits
| | |
20,254
| | | |
31,163
| | |
-35.01
|
%
|
|
Interest on Borrowed Funds
| |
|
18,509
|
| |
|
20,832
|
| |
-11.15
|
%
|
|
Total Interest Expense
| |
|
38,763
|
| |
|
51,995
|
| |
-25.45
|
%
|
|
Net Interest Income
| | |
163,961
| | | |
150,694
| | |
8.80
|
%
|
|
Less - Provision for Loan Losses
| |
|
18,655
|
| |
|
17,335
|
| |
7.61
|
%
|
|
Net Interest Income after Provision for Loan Losses
| | |
145,306
| | | |
133,359
| | |
8.96
|
%
|
| NON-INTEREST INCOME | | | | | | | | | | | |
|
Service Charges on Deposit Accounts
| | |
18,708
| | | |
17,060
| | |
9.66
|
%
|
|
Wealth Management
| | |
11,723
| | | |
10,047
| | |
16.68
|
%
|
|
Mortgage Banking Income
| | |
5,041
| | | |
4,857
| | |
3.79
|
%
|
|
BOLI Income
| | |
3,192
| | | |
2,939
| | |
8.61
|
%
|
|
Net Gain on Sale of Securities
| | |
458
| | | |
1,354
| | |
-66.17
|
%
|
|
Gain Resulting From early Termination of Hedging Relationship
| | |
-
| | | |
3,778
| | |
-100.00
|
%
|
|
Gross Change on Write-Down of Certain Investments to Fair Value
| | |
497
| | | |
(7,382
|
)
| |
-106.73
|
%
|
|
Less: Non-Credit Related Other-Than-Temporary Impairment
| |
|
(831
|
)
| |
|
(1,576
|
)
| |
-47.27
|
%
|
|
Net Loss on Write-Down of Certain Investments to Fair Value
| | |
(334
|
)
| | |
(8,958
|
)
| |
-96.27
|
%
|
|
Other Non-Interest Income
| |
|
8,118
|
| |
|
7,115
|
| |
14.10
|
%
|
|
Total Non-Interest Income
| | |
46,906
| | | |
38,192
| | |
22.82
|
%
|
| NON-INTEREST EXPENSE | | | | | | | | | | | |
|
Salaries and Employee Benefits
| | |
76,983
| | | |
68,257
| | |
12.78
|
%
|
|
Occupancy and Equipment Expenses
| | |
16,011
| | | |
15,673
| | |
2.16
|
%
|
|
Data Processing and Facilities Management
| | |
5,773
| | | |
5,779
| | |
-0.10
|
%
|
|
Merger & Acquisition Expense
| | |
-
| | | |
12,423
| | |
-100.00
|
%
|
|
FDIC assessment
| | |
5,247
| | | |
6,975
| | |
-24.77
|
%
|
|
Other Non-Interest Expense
| |
|
35,731
|
| |
|
32,708
|
| |
9.24
|
%
|
|
Total Non-Interest Expense
| | |
139,745
| | | |
141,815
| | |
-1.46
|
%
|
|
INCOME BEFORE INCOME TAXES
| |
|
52,467
|
| |
|
29,736
|
| |
76.44
|
%
|
|
PROVISION FOR INCOME TAXES
| |
|
12,227
|
| |
|
6,747
|
| |
81.22
|
%
|
| NET INCOME | |
$
|
40,240
|
| |
$
|
22,989
|
| |
75.04
|
%
|
| | | | | | | | | | |
|
|
PREFERRED STOCK DIVIDEND
| |
$
|
-
|
| |
$
|
5,698
|
| |
-
|
|
| | | | | | | | | | |
|
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | |
$
|
40,240
|
| |
$
|
17,291
|
| |
132.72
|
%
|
| | | | | | | | | | |
|
|
BASIC EARNINGS PER SHARE
| |
$
|
1.90
| | |
$
|
0.88
| | |
115.91
|
%
|
|
DILUTED EARNINGS PER SHARE
| |
$
|
1.90
| | |
$
|
0.88
| | |
115.91
|
%
|
|
BASIC AVERAGE SHARES
| | |
21,178,117
| | | |
19,642,965
| | | | |
|
DILUTED AVERAGE SHARES
| | |
21,203,915
| | | |
19,673,156
| | | | |
| | | | | | | | | | |
|
PERFORMANCE RATIOS: | | | | | | | | | | | |
|
Net Interest Margin (FTE)
| | |
3.95
|
%
| | |
3.89
|
%
| | | |
|
Return on Average Assets
| | |
0.88
|
%
| | |
0.40
|
%
| | | |
|
Return on Average Common Equity
| | |
9.46
|
%
| | |
4.29
|
%
| | | |
| | | | | | | | | | |
|
RECONCILIATION TABLE - NON-GAAP FINANCIAL
INFORMATION | | | | | | | | | | | |
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP) | |
$
|
40,240
| | |
$
|
17,291
| | |
132.72
|
%
|
| 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 | |
$
|
40,297
|
| |
$
|
28,045
|
| |
43.69
|
%
|
| | | | | | | | | | |
|
| | | | | | | | | | |
|
| Diluted Earnings Per Share, on an Operating Basis | |
$
|
1.90
|
| |
$
|
1.43
|
| |
32.87
|
%
|
| | | | | | | | | | |
|
|
|
INDEPENDENT BANK CORP. FINANCIAL SUMMARY |
|
(Unaudited - Dollars in Thousands, Except Per Share Data)
|
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION |
| | Three Months Ended | | Twelve Months Ended |
| | | | | | | | | | | | | | % Change | | % Change | | | | | | | | | | % Change |
| | December 31, | | September 30, | | December 31, | | Dec 2010 vs. | | Dec. 2010 vs. | | December 31, | | December 31, | | Dec. 2010 vs. |
| | 2010 | | 2010 | | 2009 | | Sept. 2010 | | Dec. 2009 | | 2010 | | 2009 | | Dec. 2009 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Non-Interest Income GAAP | |
$
|
14,263
| | |
$
|
11,654
| | |
$
|
10,029
| | | |
22.39
|
%
| | |
42.22
|
%
| |
$
|
46,906
| | |
$
|
38,192
| | | |
22.82
|
%
|
|
Add/(less) - Net Loss/(Gain) on Sale of Securities
| | |
-
| | | |
22
| | | |
-
| | | |
-100.00
|
%
| | |
n/a
| | | |
(458
|
)
| | |
(1,354
|
)
| | |
-66.17
|
%
|
|
Less - Gain Resulting From Early Termination of Hedging Relationship
| | |
-
| | | |
-
| | | |
-
| | | |
n/a
| | | |
n/a
| | | |
-
| | | |
(3,778
|
)
| | |
-100.00
|
%
|
|
Add - Other-Than-Temporary-Impairment on Securities
| |
|
66
|
| |
|
7
|
| |
|
2,165
|
| |
|
842.86
|
%
| |
|
-96.95
|
%
| |
|
334
|
| |
|
8,958
|
| |
|
-96.27
|
%
|
| Non-Interest Income as Adjusted | |
$
|
14,329
|
| |
$
|
11,683
|
| |
$
|
12,194
|
| |
|
22.65
|
%
| |
|
17.51
|
%
| |
$
|
46,782
|
| |
$
|
42,018
|
| |
|
11.34
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Non-Interest Expense GAAP | |
$
|
36,688
| | |
$
|
34,540
| | |
$
|
34,648
| | | |
6.22
|
%
| | |
5.89
|
%
| |
$
|
139,745
| | |
$
|
141,815
| | | |
-1.46
|
%
|
|
Less - Merger & Acquisition Expenses
| | |
-
| | | |
-
| | | |
-
| | | |
n/a
| | | |
n/a
| | | |
-
| | | |
(12,423
|
)
| | |
-100.00
|
%
|
|
Less - Fair Value Mark on a Terminated Hedging Relationship
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
n/a
|
| |
|
n/a
|
| |
|
(554
|
)
| |
|
-
|
| |
|
100.00
|
%
|
| Non-Interest Expense as Adjusted | |
$
|
36,688
|
| |
$
|
34,540
|
| |
$
|
34,648
|
| |
|
6.22
|
%
| |
|
5.89
|
%
| |
$
|
139,191
|
| |
$
|
129,392
|
| |
|
7.57
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
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 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 | | Net Charge-Offs |
| | For the Period Ending | | For the Three Months Ending | | For the Twelve Months Ending |
| | December 31, | | September 30, | | December 31, | | December 31, | | September 30, | | December 31, | | December 31, | | December 31, |
| | 2010 | | 2010 | | 2009 | | 2010 | | 2010 | | 2009 | | 2010 | | 2009 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
| |
| |
|
|
Nonperforming Loans
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Commercial & Industrial Loans
| |
$
|
3,123
| | |
$
|
4,417
| | |
$
|
4,205
| | |
$
|
1,037
| | |
$
|
1,429
| | |
$
|
1,705
| | |
$
|
4,809
| | |
$
|
2,989
| |
|
Small Business Loans
| | |
887
| | | |
909
| | | |
793
| | | |
495
| | | |
515
| | | |
327
| | | |
2,062
| | | |
1,844
| |
|
Commercial Real Estate Loans
| | |
9,836
| | | |
8,966
| | | |
18,525
| | | |
594
| | | |
851
| | | |
29
| | | |
5,163
| | | |
2,160
| |
|
Residential Real Estate Loans
| | |
6,728
| | | |
7,863
| | | |
10,829
| | | |
46
| | | |
24
| | | |
150
| | | |
498
| | | |
725
| |
|
Installment Loans - Home Equity
| | |
1,756
| | | |
1,881
| | | |
1,166
| | | |
378
| | | |
(38
|
)
| | |
600
| | | |
808
| | | |
1,758
| |
|
Installment Loans - Other
| |
|
778
|
| |
|
651
|
| |
|
665
|
| |
|
388
|
| |
|
391
|
| |
|
608
|
| |
|
1,421
|
| |
|
2,547
|
|
|
Total Nonperforming Loans / Total Net Charge-offs
| |
$
|
23,108
|
| |
$
|
24,687
|
| |
$
|
36,183
|
| |
$
|
2,938
|
| |
$
|
3,172
|
| |
$
|
3,419
|
| |
$
|
14,761
|
| |
$
|
12,023
|
|
|
Non-Accrual Securities
| | |
1,051
| | | |
1,017
| | | |
920
| | | | | | | | | | | | | | | | | | | | | |
|
Other Assets in Possession
| | |
61
| | | |
74
| | | |
148
| | | | | | | | | | | | | | | | | | | | | |
|
Other Real Estate Owned
| |
|
7,273
|
| |
|
9,011
|
| |
|
3,994
|
| | | | | | | | | | | | | | | | | | | | |
|
Nonperforming Assets
| |
$
|
31,493
|
| |
$
|
34,789
|
| |
$
|
41,245
|
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Nonperforming Loans/Gross Loans
| | |
0.65
|
%
| | |
0.72
|
%
| | |
1.07
|
%
| | | | | | | | | | | | | | | | | | | | |
|
Allowance for Loan Losses/Nonperforming Loans
| | |
200.17
|
%
| | |
184.79
|
%
| | |
117.07
|
%
| | | | | | | | | | | | | | | | | | | | |
|
Gross Loans/Total Deposits
| | |
98.01
|
%
| | |
94.22
|
%
| | |
100.60
|
%
| | | | | | | | | | | | | | | | | | | | |
|
Allowance for Loan Losses/Total Loans
| | |
1.30
|
%
| | |
1.34
|
%
| | |
1.25
|
%
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Net charge-offs to average loans (quarter annualized)
| | | | | | | | | | | | | | |
0.33
|
%
| | |
0.37
|
%
| | |
0.40
|
%
| | | | | | | | |
|
Net charge-offs to average loans (year-to-date annualized)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
0.43
|
%
| | |
0.38
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | QTD | | YTD | | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, | | December 31, | | | | | | | | | | | | | | | | | | | | | | | | |
Nonperforming Loans Reconciliation | | 2010 | | 2010 | | | | | | | | | | | | | | | | | | | | | | | | |
|
Nonperforming Loans Beginning Balance
| |
$
|
24,687
| | |
$
|
36,183
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
New to Nonperforming
| | |
10,569
| | | |
46,699
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
Loans Charged-Off
| | |
(3,231
|
)
| | |
(15,054
|
)
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Loans Paid-Off
| | |
(2,735
|
)
| | |
(20,484
|
)
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Loans Transferred to Other Real Estate Owned/Other Assets
| | |
(1,482
|
)
| | |
(11,461
|
)
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Loans Restored to Accrual Status
| | |
(3,875
|
)
| | |
(11,878
|
)
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Other
| |
|
(825
|
)
| |
|
(897
|
)
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Nonperforming Loans Ending Balance
| |
$
|
23,108
|
| |
$
|
23,108
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | December 31, | | September 30, | | December 31, | | | | | | | | | | | | | | | | | | | | |
Financial Ratios | | 2010 | | 2010 | | 2009 | | | | | | | | | | | | | | | | | | | | |
|
Book Value per Common Share
| |
$
|
20.57
| | |
$
|
20.08
| | |
$
|
19.58
| | | | | | | | | | | | | | | | | | | | | |
|
Tangible Common Book Value per Share (proforma to include
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
the tax deductibility of goodwill and exclude impact of CPP) -
Non-GAAP
| |
$
|
14.86
| | |
$
|
14.34
| | |
$
|
13.85
| | | | | | | | | | | | | | | | | | | | | |
|
Tangible Common Capital/Tangible Assets
| | |
6.47
|
%
| | |
6.21
|
%
| | |
6.20
|
%
| | | | | | | | | | | | | | | | | | | | |
|
Tangible Common Capital/Tangible Asset (proforma to include
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
the tax deductibility of goodwill and exclude impact of CPP) -
Non-GAAP
| | |
6.89
|
%
| | |
6.64
|
%
| | |
6.65
|
%
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Capital Adequacy | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Tier one leverage capital ratio (1)
| | |
8.16
|
%
| | |
7.99
|
%
| | |
7.87
|
%
| | | | | | | | | | | | | | | | | | | | |
|
Tier one common ratio (1)
| | |
8.54
|
%
| | |
8.63
|
%
| | |
8.09
|
%
| | | | | | | | | | | | | | | | | | | | |
| (1) Estimated number for December 31, 2010 |
|
|
|
|
| INDEPENDENT BANK CORP. |
|
SUPPLEMENTAL FINANCIAL INFORMATION
|
|
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA
|
| Three Months Ended |
| | December 31, 2010 |
| September 30, 2010 |
| December 31, 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
| |
$
|
113,325
| |
$
|
71
| |
0.25
|
%
| |
$
|
200,862
| |
$
|
135
| |
0.27
|
%
| |
$
|
50,983
| |
$
|
18
| |
0.14
|
%
|
|
Securities:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Trading Assets
| | |
7,469
| | |
80
| |
4.25
|
%
| | |
7,257
| | |
61
| |
3.33
|
%
| | |
8,706
| | |
61
| |
2.78
|
%
|
|
Taxable Investment Securities
| | |
588,797
| | |
5,627
| |
3.79
|
%
| | |
561,240
| | |
5,618
| |
3.97
|
%
| | |
602,679
| | |
6,833
| |
4.50
|
%
|
|
Non-taxable Investment Securities (1)
| |
|
10,816
|
|
|
203
|
|
7.45
|
%
| |
|
15,953
|
|
|
277
|
|
6.89
|
%
| |
|
19,343
|
|
|
311
|
|
6.38
|
%
|
|
Total Securities:
| |
|
607,082
|
|
|
5,910
|
|
3.86
|
%
| |
|
584,450
|
|
|
5,956
|
|
4.04
|
%
| |
|
630,728
|
|
|
7,205
|
|
4.53
|
%
|
|
Loans Held for Sale
| | |
34,252
| | |
276
| |
3.20
|
%
| | |
15,738
| | |
174
| |
4.39
|
%
| | |
10,961
| | |
132
| |
4.78
|
%
|
|
Loans
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Commercial and Industrial
| | |
486,845
| | |
5,405
| |
4.40
|
%
| | |
440,539
| | |
5,077
| |
4.57
|
%
| | |
372,174
| | |
4,647
| |
4.95
|
%
|
|
Commercial Real Estate
| | |
1,667,304
| | |
23,384
| |
5.56
|
%
| | |
1,641,627
| | |
23,736
| |
5.74
|
%
| | |
1,572,599
| | |
23,421
| |
5.91
|
%
|
|
Commercial Construction
| | |
136,831
| | |
1,540
| |
4.47
|
%
| | |
148,151
| | |
1,792
| |
4.80
|
%
| | |
190,354
| | |
2,389
| |
4.98
|
%
|
|
Small Business
| |
|
79,863
| |
|
1,190
| |
5.91
|
%
| |
|
80,740
| |
|
1,221
| |
6.00
|
%
| |
|
82,568
| |
|
1,250
| |
6.01
|
%
|
|
Total Commercial
| | |
2,370,843
| | |
31,519
| |
5.27
|
%
| | |
2,311,057
| | |
31,826
| |
5.46
|
%
| | |
2,217,695
| | |
31,707
| |
5.67
|
%
|
|
Residential Real Estate
| | |
490,439
| | |
5,810
| |
4.70
|
%
| | |
525,003
| | |
6,174
| |
4.67
|
%
| | |
570,546
| | |
7,045
| |
4.90
|
%
|
|
Residential Construction
| | |
4,842
| | |
59
| |
4.83
|
%
| | |
4,874
| | |
63
| |
5.13
|
%
| | |
12,309
| | |
172
| |
5.54
|
%
|
|
Consumer - Home Equity
| |
|
542,979
| |
|
5,229
| |
3.82
|
%
| |
|
507,308
| |
|
4,914
| |
3.84
|
%
| |
|
470,121
| |
|
4,576
| |
3.86
|
%
|
|
Total Consumer Real Estate
| |
|
1,038,260
| |
|
11,098
| |
4.24
|
%
| |
|
1,037,185
| |
|
11,151
| |
4.27
|
%
| |
|
1,052,976
| |
|
11,793
| |
4.44
|
%
|
|
Total Other Consumer
| |
|
72,781
| |
|
1,412
| |
7.70
|
%
| |
|
82,130
| |
|
1,593
| |
7.70
|
%
| |
|
118,548
| |
|
2,259
| |
7.56
|
%
|
|
Total Loans
| |
|
3,481,884
| |
|
44,029
| |
5.02
|
%
| |
|
3,430,372
| |
|
44,570
| |
5.15
|
%
| |
|
3,389,219
| |
|
45,759
| |
5.36
|
%
|
| Total Interest-Earning Assets | |
$
|
4,236,543
|
|
$
|
50,286
|
|
4.71
|
%
| |
$
|
4,231,422
|
|
$
|
50,835
|
|
4.77
|
%
| |
$
|
4,081,891
|
|
$
|
53,114
|
|
5.16
|
%
|
|
Cash and Due from Banks
| | |
55,541
| | | | | | | |
55,357
| | | | | | | | |
64,799
| | | | | | |
|
Federal Home Loan Bank Stock
| | |
35,854
| | | | | | | |
35,854
| | | | | | | | |
36,351
| | | | | | |
|
Other Assets
| |
|
331,791
| | | | | | |
|
323,523
| | | | | | | |
|
281,314
| | | | | | |
| Total Assets | |
$
|
4,659,729
| | | | | | |
$
|
4,646,156
| | | | | | | |
$
|
4,464,355
| | | | | | |
| Interest-bearing Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Deposits:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Savings and Interest Checking Accounts
| |
$
|
1,271,639
| |
$
|
876
| |
0.27
|
%
| |
$
|
1,220,073
| |
$
|
1,040
| |
0.34
|
%
| |
$
|
977,673
| |
$
|
1,185
| |
0.48
|
%
|
|
Money Market
| | |
736,700
| | |
866
| |
0.47
|
%
| | |
757,154
| | |
1,058
| |
0.55
|
%
| | |
692,072
| | |
1,539
| |
0.88
|
%
|
|
Time Deposits
| |
|
721,970
|
|
|
2,287
|
|
1.26
|
%
| |
|
805,825
|
|
|
2,703
|
|
1.33
|
%
| |
|
931,510
|
|
|
4,145
|
|
1.77
|
%
|
|
Total interest-bearing deposits:
| |
$
|
2,730,309
| |
$
|
4,029
| |
0.59
|
%
| |
$
|
2,783,052
| |
$
|
4,801
| |
0.68
|
%
| |
$
|
2,601,255
| |
$
|
6,869
| |
1.05
|
%
|
|
Borrowings:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Federal Home Loan Bank Borrowings
| |
$
|
306,075
| |
$
|
2,391
| |
3.10
|
%
| |
$
|
302,610
| |
$
|
2,372
| |
3.11
|
%
| |
$
|
383,331
| |
$
|
2,971
| |
3.07
|
%
|
|
Federal Funds Purchased and Assets Sold
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Under Repurchase Agreement
| | |
182,501
| | |
693
| |
1.51
|
%
| | |
179,983
| | |
740
| |
1.63
|
%
| | |
191,229
| | |
871
| |
1.81
|
%
|
|
Junior Subordinated Debentures
| | |
61,857
| | |
922
| |
5.91
|
%
| | |
61,857
| | |
931
| |
5.97
|
%
| | |
61,857
| | |
921
| |
5.91
|
%
|
|
Subordinated Debentures
| | |
30,000
| | |
547
| |
7.23
|
%
| | |
30,000
| | |
547
| |
7.23
|
%
| | |
30,000
| | |
553
| |
7.31
|
%
|
|
Other Borrowings
| |
|
3,093
|
|
|
-
|
|
0.00
|
%
| |
|
2,602
|
|
|
-
|
|
0.00
|
%
| |
|
2,227
|
|
|
-
|
|
0.00
|
%
|
|
Total Borrowings:
| |
|
583,526
|
|
|
4,553
|
|
3.10
|
%
| |
|
577,052
|
|
|
4,590
|
|
3.16
|
%
| |
|
668,644
|
|
|
5,316
|
|
3.15
|
%
|
| Total Interest-Bearing Liabilities | |
$
|
3,313,835
|
|
$
|
8,582
|
|
1.03
|
%
| |
$
|
3,360,104
|
|
$
|
9,391
|
|
1.11
|
%
| |
$
|
3,269,899
|
|
$
|
12,185
|
|
1.48
|
%
|
|
Demand Deposits
| | |
841,440
| | | | | | | |
796,205
| | | | | | | | |
731,053
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Other Liabilities
| |
|
71,785
| | | | | | |
|
63,790
| | | | | | | |
|
50,791
| | | | | | |
|
Total Liabilities
| |
$
|
4,227,060
| | | | | | |
$
|
4,220,099
| | | | | | | |
$
|
4,051,743
| | | | | | |
|
Stockholders' Equity
| |
|
432,669
| | | | | | |
|
426,057
| | | | | | | |
|
412,612
| | | | | | |
| Total Liabilities and Stockholders' Equity | |
$
|
4,659,729
| | | | | | |
$
|
4,646,156
| | | | | | | |
$
|
4,464,355
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Net Interest Income
| | | | |
$
|
41,704
| | | | | | |
$
|
41,444
| | | | | | | |
$
|
40,929
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Interest Rate Spread (2)
| | | | | | | |
3.68
|
%
| | | | | | | |
3.66
|
%
| | | | | | | |
3.68
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Net Interest Margin (3)
| | | | | | | |
3.91
|
%
| | | | | | | |
3.89
|
%
| | | | | | | |
3.98
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Supplemental Information: | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total Deposits, including Demand Deposits
| |
$
|
3,571,749
| |
$
|
4,029
| | | |
$
|
3,579,257
| |
$
|
4,801
| | | | |
$
|
3,332,308
| |
$
|
6,869
| | | |
|
Cost of Total Deposits
| | | | | | | |
0.45
|
%
| | | | | | | |
0.53
|
%
| | | | | | | |
0.82
|
%
|
|
Total Funding Liabilities, including Demand Deposits
| |
$
|
4,155,275
| |
$
|
8,582
| | | |
$
|
4,156,309
| |
$
|
9,391
| | | | |
$
|
4,000,952
| |
$
|
12,185
| | | |
|
Cost of Total Funding Liabilities
| | | | | | | |
0.82
|
%
| | | | | | | |
0.90
|
%
| | | | | | | |
1.21
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
(1) The total amount of adjustment to present interest income and
yield on a fully tax-equivalent basis is $315, $247, and $231 for
the three months ended December 31, 2010, September 30, 2010, and
December 31, 2009, respectively.
|
|
(2) Interest rate spread represents the difference between the
weighted average yield on interest-earning assets and the weighted
average cost of interest-bearing liabilities.
|
|
(3) Net interest margin represents annualized net interest income as
a percentage of average interest-earning assets.
|
|
|
|
| |
| | Twelve Months Ended |
| | December 31, 2010 |
| December 31, 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
| |
$
|
132,019
| |
$
|
337
| |
0.26
|
%
| |
$
|
67,296
| |
$
|
290
| |
0.43
|
%
|
|
Securities:
| | | | | | | | | | | | | | | | | | |
|
Trading Assets
| | |
7,225
| | |
262
| |
3.63
|
%
| | |
12,126
| | |
239
| |
1.97
|
%
|
|
Taxable Investment Securities
| | |
569,069
| | |
23,722
| |
4.17
|
%
| | |
605,453
| | |
28,456
| |
4.70
|
%
|
|
Non-taxable Investment Securities (1)
| |
|
15,877
|
|
|
1,138
|
|
7.17
|
%
| |
|
22,671
|
|
|
1,457
|
|
6.43
|
%
|
|
Total Securities:
| |
|
592,171
|
|
|
25,122
|
|
4.24
|
%
| |
|
640,250
|
|
|
30,152
|
|
4.71
|
%
|
|
Loans Held for Sale
| | |
16,266
| | |
666
| |
4.09
|
%
| | |
14,320
| | |
629
| |
4.39
|
%
|
|
Loans
| | | | | | | | | | | | | | | | | | |
|
Commercial and Industrial
| | |
427,004
| | |
19,457
| |
4.56
|
%
| | |
336,776
| | |
15,955
| |
4.74
|
%
|
|
Commercial Real Estate
| | |
1,646,419
| | |
94,217
| |
5.72
|
%
| | |
1,418,997
| | |
86,016
| |
6.06
|
%
|
|
Commercial Construction
| | |
155,524
| | |
7,507
| |
4.83
|
%
| | |
193,498
| | |
9,502
| |
4.91
|
%
|
|
Small Business
| |
|
81,091
| |
|
4,829
| |
5.96
|
%
| |
|
85,567
| |
|
5,143
|
|
6.01
|
%
|
|
Total Commercial
| | |
2,310,038
| | |
126,010
| |
5.45
|
%
| | |
2,034,838
| | |
116,616
| |
5.73
|
%
|
|
Residential Real Estate
| | |
525,203
| | |
25,235
| |
4.80
|
%
| | |
542,758
| | |
27,333
| |
5.04
|
%
|
|
Residential Construction
| | |
6,565
| | |
334
| |
5.09
|
%
| | |
12,798
| | |
805
| |
6.29
|
%
|
|
Consumer - Home Equity
| |
|
504,886
| |
|
19,369
| |
3.84
|
%
| |
|
447,890
| |
|
17,523
|
|
3.91
|
%
|
|
Total Consumer Real Estate
| |
|
1,036,654
| |
|
44,938
| |
4.33
|
%
| |
|
1,003,446
| |
|
45,661
|
|
4.55
|
%
|
|
Total Other Consumer
| |
|
88,077
| |
|
6,799
| |
7.72
|
%
| |
|
139,665
| |
|
10,338
|
|
7.40
|
%
|
|
Total Loans
| |
|
3,434,769
| |
|
177,747
| |
5.17
|
%
| |
|
3,177,949
| |
|
172,615
|
|
5.43
|
%
|
| Total Interest-Earning Assets | |
$
|
4,175,225
|
|
$
|
203,872
|
|
4.88
|
%
| |
$
|
3,899,815
|
|
$
|
203,686
|
|
5.22
|
%
|
|
Cash and Due from Banks
| | |
62,103
| | | | | | | | |
65,509
| | | | | | |
|
Federal Home Loan Bank Stock
| | |
35,854
| | | | | | | | |
33,135
| | | | | | |
|
Other Assets
| |
|
316,234
| | | | | | | |
|
278,057
| | | | | | |
| Total Assets | |
$
|
4,589,416
| | | | | | | |
$
|
4,276,516
| | | | | | |
| Interest-bearing Liabilities: | | | | | | | | | | | | | | | | | | |
|
Deposits:
| | | | | | | | | | | | | | | | | | |
|
Savings and Interest Checking Accounts
| |
$
|
1,183,247
| |
$
|
4,397
| |
0.37
|
%
| |
$
|
913,881
| |
$
|
4,753
| |
0.52
|
%
|
|
Money Market
| | |
739,264
| | |
4,565
| |
0.62
|
%
| | |
639,231
| | |
6,545
| |
1.02
|
%
|
|
Time Deposits
| |
|
814,462
|
|
|
11,292
|
|
1.39
|
%
| |
|
921,787
|
|
|
19,865
|
|
2.16
|
%
|
|
Total interest-bearing deposits:
| |
$
|
2,736,973
| |
$
|
20,254
| |
0.74
|
%
| |
$
|
2,474,899
| |
$
|
31,163
| |
1.26
|
%
|
|
Borrowings:
| | | | | | | | | | | | | | | | | | |
|
Federal Home Loan Bank Borrowings
| |
$
|
318,151
| |
$
|
9,589
| |
3.01
|
%
| |
$
|
409,551
| |
$
|
11,519
| |
2.81
|
%
|
|
Federal Funds Purchased and Assets Sold
| | | | | | | | | | | | | | | | | | |
|
Under Repurchase Agreement
| | |
182,467
| | |
3,084
| |
1.69
|
%
| | |
180,632
| | |
3,396
| |
1.88
|
%
|
|
Junior Subordinated Debentures
| | |
61,857
| | |
3,666
| |
5.93
|
%
| | |
61,857
| | |
3,739
| |
6.04
|
%
|
|
Subordinated Debentures
| | |
30,000
| | |
2,170
| |
7.23
|
%
| | |
30,000
| | |
2,178
| |
7.26
|
%
|
|
Other Borrowings
| |
|
2,802
|
|
|
-
|
|
0.00
|
%
| |
|
2,054
|
|
|
-
|
|
0.00
|
%
|
|
Total Borrowings:
| |
|
595,277
|
|
|
18,509
|
|
3.11
|
%
| |
|
684,094
|
|
|
20,832
|
|
3.05
|
%
|
| Total Interest-Bearing Liabilities | |
$
|
3,332,250
|
|
$
|
38,763
|
|
1.16
|
%
| |
$
|
3,158,993
|
|
$
|
51,995
|
|
1.65
|
%
|
|
Demand Deposits
| | |
773,718
| | | | | | | | |
659,916
| | | | | | |
| | | | | | | | | | | | | | | | | |
|
|
Other Liabilities
| |
|
58,199
| | | | | | | |
|
54,697
| | | | | | |
|
Total Liabilities
| |
$
|
4,164,167
| | | | | | | |
$
|
3,873,606
| | | | | | |
|
Stockholders' Equity
| |
|
425,249
| | | | | | | |
|
402,910
| | | | | | |
| Total Liabilities and Stockholders' Equity | |
$
|
4,589,416
| | | | | | | |
$
|
4,276,516
| | | | | | |
| | | | | | | | | | | | | | | | | |
|
|
Net Interest Income
| | | | |
$
|
165,109
| | | | | | | |
$
|
151,691
| | | |
| | | | | | | | | | | | | | | | | |
|
|
Interest Rate Spread (2)
| | | | | | | |
3.72
|
%
| | | | | | | |
3.58
|
%
|
| | | | | | | | | | | | | | | | | |
|
|
Net Interest Margin (3)
| | | | | | | |
3.95
|
%
| | | | | | | |
3.89
|
%
|
| | | | | | | | | | | | | | | | | |
|
| Supplemental Information: | | | | | | | | | | | | | | | | | | |
|
Total Deposits, including Demand Deposits
| |
$
|
3,510,691
| |
$
|
20,254
| | | | |
$
|
3,134,815
| |
$
|
31,163
| | | |
|
Cost of Total Deposits
| | | | | | | |
0.58
|
%
| | | | | | | |
0.99
|
%
|
|
Total Funding Liabilities, including Demand Deposits
| |
$
|
4,105,968
| |
$
|
38,763
| | | | |
$
|
3,818,909
| |
$
|
51,995
| | | |
|
Cost of Total Funding Liabilities
| | | | | | | |
0.94
|
%
| | | | | | | |
1.36
|
%
|
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
|
(1) The total amount of adjustment to present interest income and
yield on a fully tax-equivalent basis is $1,148 and $997 for the
twelve months ended December 31, 2010, and December 31, 2009,
respectively.
|
|
(2) Interest rate spread represents the difference between the
weighted average yield on interest-earning assets and the weighted
average cost of interest-bearing liabilities.
|
|
(3) Net interest margin represents annualized net interest income as
a percentage of average interest-earning assets.
|
| | | | | | | | | | | | | | | | | |
|
| Certain amounts in prior year financial statement have been
reclassified to conform to the current year's presentation. |
|
|
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