Continued Strong Performance Leads to 8% Increase in Earnings Per
Share
ROCKLAND, Mass.--(BUSINESS WIRE)--
Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust
Company, today announced net income of $12.0 million for the third
quarter of 2011, or $0.56 on a diluted earnings per share basis. The
results of the third quarter 2011 represent increases of $0.04 or 7.7%
on a diluted per share basis as compared to the linked quarter results
and $0.03 or 5.7% versus prior year results. Net income for the
year-to-date period improved by 20.7%, or 18.5% on a diluted earnings
per share basis as compared to the year ago period.
Christopher Oddleifson, the President and Chief Executive Officer of
Independent Bank Corp. and Rockland Trust Company, stated: “Despite the
challenging operating environment, we continue to deliver quality
results. Our strong focus on the customer is a winning strategy, as
consumers and businesses demonstrate that they value Rockland Trust’s
knowledgeable, accessible bankers; innovative products and services; and
fair, transparent pricing. Our balance sheet remains in excellent shape
with solid credit quality and capital levels, and the recent expansion
of our commercial lending and wealth management franchises will help us
sustain our momentum.”
BALANCE SHEET
Total assets of $4.9 billion at September 30, 2011 are up $56.8 million
from the prior quarter.
Total loans remained consistent at $3.7 billion at September 30, 2011,
compared with the prior quarter and have grown by 6.3% since December
31, 2010 on an annualized basis. The economic uncertainty combined with
a seasonally slow summer produced flat loan growth, but the Company’s
pipeline continues to remain robust, as companies continue to find the
value proposition of high service and flexible solutions, offered by the
Company, an attractive alternative to the national banks.
Deposits remained consistent at $3.8 billion at September 30, 2011, as
compared to the prior quarter. Core deposits increased by $30.5 million
to $3.1 billion and grew to 83.1% of total deposits. The Company’s cost
of deposits continued its steady decline to 0.37% for the quarter. The
Company is experiencing robust organic household growth as seen in the
core deposit growth of 10.4% compared to the year ago period.
The securities portfolio of $521.6 million decreased by $25.9 million
compared to the linked quarter primarily due to pay-downs and reduced
reinvestment activity due to unattractive yields.
Stockholders’ equity at September 30, 2011 increased by 1.2% to $461.1
million as compared to the balance at June 30, 2011. The Tier 1 leverage
capital ratio at September 30, 2011 increased slightly to 8.59% compared
with prior quarter at 8.54%, maintaining the Company’s well-capitalized
position.
NET INTEREST INCOME
Net interest income of $41.7 million was down slightly as compared to
the prior quarter primarily due to the impact of the prolonged low rate
environment. The net interest margin in the third quarter of 2011
declined to 3.84%, compared to 3.97%, in the linked quarter, due to the
continued reduction in interest rates driven by the global economic
conditions and a modestly asset sensitive interest rate position.
NON-INTEREST INCOME
The Company recorded non-interest income of $12.3 million during the
third quarter of 2011 which represents a $1.2 million, or 8.6%, decrease
from the prior quarter. Significant changes in non-interest income
included the following:
-
Investment management revenue decreased by $112,000, or 3.1%,
reflective of lower stock market valuations. Assets under management
in the investment management division were $1.6 billion at September
30, 2011, a decrease of $109.7 million compared to June 30, 2011.
-
Non-interest income in the second quarter benefited from the sale of
securities, resulting in a gain of $723,000. There were no gains on
sale of securities during the third quarter of the year.
-
Mortgage banking income increased by $224,000, or 32.8%, reflective of
increased volumes of mortgage originations, due to the lower rate
environment.
-
Other non-interest income decreased by $615,000, or 39.1%, mainly due
to higher unrealized losses on the Company’s trading assets of
$569,000.
NON-INTEREST EXPENSE
The Company recorded non-interest expense of $35.4 million in the third
quarter of 2011, a decrease of $1.4 million, or 3.9%, when compared to
the quarter ended June 30, 2011. Significant changes in non-interest
expense included the following:
-
Salary and employee benefits increased $806,000, or 4.1% primarily
related to incremental hiring and expansion of the commercial banking
business to support growth initiatives.
-
Other non-interest expense decreased by $2.1 million, or 19.2%, which
is primarily attributable to reductions in credit-related loan workout
expenses and OREO property write-downs of $667,000, and decreases in
advertising expense of $903,000.
The Company generated a return on average assets and a return on average
common equity in the third quarter of 2011 of 0.99% and 10.28%,
respectively, as compared to 0.95% and 9.78% for the quarter ended June
30, 2011.
ASSET QUALITY
The Company continued to maintain a solid credit profile during the
quarter. Net charge-offs decreased to $1.4 million, or 0.15%, on an
annualized basis of average loans for the third quarter of 2011 compared
to $3.3 million, or 0.36%, for the quarter ended June 30, 2011. The
provision for loan losses was $2.0 million and $3.5 million for the
quarters ended September 30, 2011 and June 30, 2011, respectively.
Nonperforming loans increased to $26.6 million, or 0.72% of total loans
at September 30, 2011, from $21.9 million, or 0.59% of total loans at
June 30, 2011. Delinquency as a percentage of loans increased to 0.89%
at September 30, 2011 compared to 0.83% at June 30, 2011.
The allowance for loan losses was $47.3 million at September 30, 2011,
compared with the prior quarter level of $46.6 million. The Company’s
allowance for loan losses was 1.27%, as a percentage of total loans at
September 30, 2011, compared to 1.25%, at June 30, 2011.
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 10:00 a.m. Eastern
Time on Friday, October 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: 10005109. The webcast replay will be available until October
21, 2012.
Independent Bank Corp., which has Rockland Trust Company as a
wholly-owned bank subsidiary, has $4.9 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. 2011 vs. | | Sept. 2011 vs. |
|
|
| 2011 |
| 2011 |
| 2010 |
| June 2011 | | Sept. 2010 |
| | | | | | | | | | | | | | | | | |
|
| Assets | | | | | | | | | | | | | | | | | | |
|
Cash and Due From Banks
| |
$
|
53,821
| | |
$
|
56,679
| | |
$
|
54,207
| | |
-5.04
|
%
| |
-0.71
|
%
|
|
Interest Earning Deposits with Banks
| | |
180,352
| | | |
129,420
| | | |
222,392
| | |
39.35
|
%
| |
-18.90
|
%
|
|
Fed Funds Sold
| | |
667
| | | |
1,197
| | | |
526
| | |
-44.28
|
%
| |
26.81
|
%
|
|
Securities
| | | | | | | | | | | | | | | | | | |
|
Trading Assets
| | |
7,984
| | | |
8,539
| | | |
7,418
| | |
-6.50
|
%
| |
7.63
|
%
|
|
Securities Available for Sale
| | |
293,073
| | | |
305,895
| | | |
436,887
| | |
-4.19
|
%
| |
-32.92
|
%
|
|
Securities Held to Maturity
| |
|
220,552
|
| |
|
233,109
|
| |
|
180,623
|
| |
-5.39
|
%
| |
22.11
|
%
|
| Total Securities | | |
521,609
| | | |
547,543
| | | |
624,928
| | |
-4.74
|
%
| |
-16.53
|
%
|
| | | | | | | | | | | | | | | | | |
|
|
Loans Held for Sale
| | |
22,156
| | | |
12,255
| | | |
21,321
| | |
80.79
|
%
| |
3.92
|
%
|
|
Loans
| | | | | | | | | | | | | | | | | | |
|
Commercial and Industrial
| | |
567,552
| | | |
568,022
| | | |
438,873
| | |
-0.08
|
%
| |
29.32
|
%
|
| Commercial Real Estate | | |
1,815,063
| | | |
1,801,026
| | | |
1,641,356
| | |
0.78
|
%
| |
10.58
|
%
|
| Commercial Construction | | |
119,309
| | | |
130,303
| | | |
144,109
| | |
-8.44
|
%
| |
-17.21
|
%
|
|
Small Business
| |
|
77,230
|
| |
|
78,905
|
| |
|
79,897
|
| |
-2.12
|
%
| |
-3.34
|
%
|
|
Total Commercial
| | |
2,579,154
| | | |
2,578,256
| | | |
2,304,235
| | |
0.03
|
%
| |
11.93
|
%
|
| Residential Real Estate | | |
441,600
| | | |
454,597
| | | |
503,471
| | |
-2.86
|
%
| |
-12.29
|
%
|
| Residential Construction | | |
6,306
| | | |
6,404
| | | |
5,449
| | |
-1.53
|
%
| |
15.73
|
%
|
|
Consumer - Home Equity
| |
|
648,475
|
| |
|
632,735
|
| |
|
517,962
|
| |
2.49
|
%
| |
25.20
|
%
|
| Total Consumer Real Estate | |
|
1,096,381
|
| |
|
1,093,736
|
| |
|
1,026,882
|
| |
0.24
|
%
| |
6.77
|
%
|
|
Total Other Consumer
| |
|
47,590
|
| |
|
53,239
|
| |
|
76,926
|
| |
-10.61
|
%
| |
-38.14
|
%
|
|
Total Loans
| |
|
3,723,125
|
| |
|
3,725,231
|
| |
|
3,408,043
|
| |
-0.06
|
%
| |
9.25
|
%
|
|
Less - Allowance for Loan Losses
| |
|
(47,278
|
)
| |
|
(46,637
|
)
| |
|
(45,619
|
)
| |
1.37
|
%
| |
3.64
|
%
|
|
Net Loans
| | |
3,675,847
| | | |
3,678,594
| | | |
3,362,424
| | |
-0.07
|
%
| |
9.32
|
%
|
|
Federal Home Loan Bank Stock
| | |
35,854
| | | |
35,854
| | | |
35,854
| | |
0.00
|
%
| |
0.00
|
%
|
|
Bank Premises and Equipment
| | |
47,646
| | | |
46,368
| | | |
45,420
| | |
2.76
|
%
| |
4.90
|
%
|
|
Goodwill and Core Deposit Intangible
| | |
141,103
| | | |
141,489
| | | |
142,422
| | |
-0.27
|
%
| |
-0.93
|
%
|
|
Other Assets
| |
|
220,711
|
| |
|
193,544
|
| |
|
194,297
|
| |
14.04
|
%
| |
13.59
|
%
|
|
Total Assets
| |
$
|
4,899,766
|
| |
$
|
4,842,943
|
| |
$
|
4,703,791
|
| |
1.17
|
%
| |
4.17
|
%
|
| | | | | | | | | | | | | | | | | |
|
| Liabilities and Stockholders' Equity | | | | | | | | | | | | | | | | | | |
|
Deposits
| | | | | | | | | | | | | | | | | | |
|
Demand Deposits
| |
$
|
977,323
| | |
$
|
913,960
| | |
$
|
805,491
| | |
6.93
|
%
| |
21.33
|
%
|
|
Savings and Interest Checking Accounts
| | |
1,424,060
| | | |
1,479,365
| | | |
1,314,273
| | |
-3.74
|
%
| |
8.35
|
%
|
|
Money Market
| | |
744,682
| | | |
722,234
| | | |
731,091
| | |
3.11
|
%
| |
1.86
|
%
|
|
Time Certificates of Deposit
| |
|
641,468
|
| |
|
671,003
|
| |
|
766,303
|
| |
-4.40
|
%
| |
-16.29
|
%
|
|
Total Deposits
| | |
3,787,533
| | | |
3,786,562
| | | |
3,617,158
| | |
0.03
|
%
| |
4.71
|
%
|
|
Borrowings
| | | | | | | | | | | | | | | | | | |
|
Federal Home Loan Bank Borrowings
| | |
257,873
| | | |
258,012
| | | |
302,545
| | |
-0.05
|
%
| |
-14.77
|
%
|
|
Fed Funds Purchased and Assets Sold
| | | | | | | | | | | | | | | | | | |
|
Under Repurchase Agreements
| | |
216,331
| | | |
183,166
| | | |
180,326
| | |
18.11
|
%
| |
19.97
|
%
|
|
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
| |
|
2,203
|
| |
|
2,635
|
| |
|
2,701
|
| |
-16.39
|
%
| |
-18.44
|
%
|
|
Total Borrowings
| | |
568,264
| | | |
535,670
| | | |
577,429
| | |
6.08
|
%
| |
-1.59
|
%
|
|
Total Deposits and Borrowings
| | |
4,355,797
| | | |
4,322,232
| | | |
4,194,587
| | |
0.78
|
%
| |
3.84
|
%
|
|
Other Liabilities
| | |
82,903
| | | |
65,009
| | | |
83,543
| | |
27.53
|
%
| |
-0.77
|
%
|
|
Stockholders' Equity
| | | | | | | | | | | | | | | | | | |
|
Common Stock
| | |
212
| | | |
212
| | | |
210
| | |
0.00
|
%
| |
0.95
|
%
|
|
Additional Paid in Capital
| | |
232,845
| | | |
231,987
| | | |
226,255
| | |
0.37
|
%
| |
2.91
|
%
|
|
Retained Earnings
| | |
232,369
| | | |
224,488
| | | |
201,950
| | |
3.51
|
%
| |
15.06
|
%
|
|
Accumulated Other Comprehensive Income/(Loss), Net of Tax
| |
|
(4,360
|
)
| |
|
(985
|
)
| |
|
(2,754
|
)
| |
342.64
|
%
| |
58.32
|
%
|
|
Total Stockholders' Equity
| |
|
461,066
|
| |
|
455,702
|
| |
|
425,661
|
| |
1.18
|
%
| |
8.32
|
%
|
|
Total Liabilities and Stockholders' Equity
| |
$
|
4,899,766
|
| |
$
|
4,842,943
|
| |
$
|
4,703,791
|
| |
1.17
|
%
| |
4.17
|
%
|
|
| | | |
| | | |
| | | |
| | |
| | |
| | | | | | | | | | | | | | | | | |
|
|
CONSOLIDATED STATEMENTS OF INCOME
| | Three Months Ended |
| | | | | | | | | | | | | | % Change | | % Change |
| | September 30, | | June 30, | | September 30, | | Sept. 2011 vs. | | Sept. 2011 vs. |
| | 2011 | | 2011 | | 2010 | | June 2011 | | Sept. 2010 |
| | | | | | | | | | | | | | | | | |
|
| INTEREST INCOME | | | | | | | | | | | | | | | | | | |
|
Interest on Fed Funds Sold and Short Term Investments
| |
$
|
49
| | |
$
|
14
| | |
$
|
135
| | |
250.00
|
%
| |
-63.70
|
%
|
|
Interest and Dividends on Securities
| | |
5,007
| | | |
5,452
| | | |
5,843
| | |
-8.16
|
%
| |
-14.31
|
%
|
|
Interest on Loans
| | |
43,763
| | | |
43,938
| | | |
44,436
| | |
-0.40
|
%
| |
-1.51
|
%
|
|
Interest on Loans Held for Sale
| |
|
116
|
| |
|
70
|
| |
|
174
|
| |
65.71
|
%
| |
-33.33
|
%
|
|
Total Interest Income
| | |
48,935
| | | |
49,474
| | | |
50,588
| | |
-1.09
|
%
| |
-3.27
|
%
|
| INTEREST EXPENSE | | | | | | | | | | | | | | | | | | |
|
Interest on Deposits
| | |
3,419
| | | |
3,544
| | | |
4,801
| | |
-3.53
|
%
| |
-28.79
|
%
|
|
Interest on Borrowed Funds
| |
|
3,842
|
| |
|
3,854
|
| |
|
4,590
|
| |
-0.31
|
%
| |
-16.30
|
%
|
|
Total Interest Expense
| |
|
7,261
|
| |
|
7,398
|
| |
|
9,391
|
| |
-1.85
|
%
| |
-22.68
|
%
|
|
Net Interest Income
| | |
41,674
| | | |
42,076
| | | |
41,197
| | |
-0.96
|
%
| |
1.16
|
%
|
|
Less - Provision for Loan Losses
| |
|
2,000
|
| |
|
3,482
|
| |
|
3,500
|
| |
-42.56
|
%
| |
-42.86
|
%
|
|
Net Interest Income after Provision for Loan Losses
| | |
39,674
| | | |
38,594
| | | |
37,697
| | |
2.80
|
%
| |
5.24
|
%
|
| NON-INTEREST INCOME | | | | | | | | | | | | | | | | | | |
|
Service Charges on Deposit Accounts
| | |
4,223
| | | |
4,192
| | | |
3,178
| | |
0.74
|
%
| |
32.88
|
%
|
|
Interchange and ATM Fees
| | |
2,005
| | | |
1,974
| | | |
1,263
| | |
1.57
|
%
| |
58.75
|
%
|
|
Investment Management
| | |
3,491
| | | |
3,603
| | | |
2,851
| | |
-3.11
|
%
| |
22.45
|
%
|
|
Mortgage Banking Income
| | |
907
| | | |
683
| | | |
1,469
| | |
32.80
|
%
| |
-38.26
|
%
|
|
BOLI Income
| | |
757
| | | |
860
| | | |
901
| | |
-11.98
|
%
| |
-15.98
|
%
|
|
Net Gain/(Loss) on Sale of Securities
| | |
-
| | | |
723
| | | |
(22
|
)
| |
100.00
|
%
| |
-100.00
|
%
|
|
Gross Change on Write-Down of Certain Investments to Fair Value
| | |
(318
|
)
| | |
170
| | | |
207
| | |
-287.06
|
%
| |
-253.62
|
%
|
|
Less: Portion of Other-Than-Temporary Impairment Losses Recognized
in Other Comprehensive Income
| |
|
290
|
| |
|
(306
|
)
| |
|
(214
|
)
| |
-194.77
|
%
| |
-235.51
|
%
|
|
Net Loss on Write-Down of Certain Investments to Fair Value
| | |
(28
|
)
| | |
(136
|
)
| | |
(7
|
)
| |
-79.41
|
%
| |
300.00
|
%
|
|
Other Non-Interest Income
| |
|
960
|
| |
|
1,575
|
| |
|
2,021
|
| |
-39.05
|
%
| |
-52.50
|
%
|
|
Total Non-Interest Income
| | |
12,315
| | | |
13,474
| | | |
11,654
| | |
-8.60
|
%
| |
5.67
|
%
|
| NON-INTEREST EXPENSE | | | | | | | | | | | | | | | | | | |
|
Salaries and Employee Benefits
| | |
20,568
| | | |
19,762
| | | |
19,792
| | |
4.08
|
%
| |
3.92
|
%
|
|
Occupancy and Equipment Expenses
| | |
4,107
| | | |
4,263
| | | |
3,839
| | |
-3.66
|
%
| |
6.98
|
%
|
|
Data Processing and Facilities Management
| | |
1,152
| | | |
1,038
| | | |
1,404
| | |
10.98
|
%
| |
-17.95
|
%
|
|
FDIC Assessment
| | |
691
| | | |
778
| | | |
1,352
| | |
-11.18
|
%
| |
-48.89
|
%
|
|
Other Non-Interest Expense
| |
|
8,905
|
| |
|
11,015
|
| |
|
8,153
|
| |
-19.16
|
%
| |
9.22
|
%
|
|
Total Non-Interest Expense
| | |
35,423
| | | |
36,856
| | | |
34,540
| | |
-3.89
|
%
| |
2.56
|
%
|
|
INCOME BEFORE INCOME TAXES
| |
|
16,566
|
| |
|
15,212
|
| |
|
14,811
|
| |
8.90
|
%
| |
11.85
|
%
|
|
PROVISION FOR INCOME TAXES
| |
|
4,607
|
| |
|
4,092
|
| |
|
3,666
|
| |
12.59
|
%
| |
25.67
|
%
|
| NET INCOME | |
$
|
11,959
|
| |
$
|
11,120
|
| |
$
|
11,145
|
| |
7.54
|
%
| |
7.30
|
%
|
| | | | | | | | | | | | | | | | | |
|
|
BASIC EARNINGS PER SHARE
| |
$
|
0.56
| | |
$
|
0.52
| | |
$
|
0.53
| | |
7.69
|
%
| |
5.66
|
%
|
|
DILUTED EARNINGS PER SHARE
| |
$
|
0.56
| | |
$
|
0.52
| | |
$
|
0.53
| | |
7.69
|
%
| |
5.66
|
%
|
|
BASIC AVERAGE SHARES
| | |
21,463,714
| | | |
21,441,864
| | | |
20,981,372
| | | | | | | |
|
DILUTED AVERAGE SHARES
| | |
21,476,791
| | | |
21,481,023
| | | |
21,034,165
| | | | | | | |
| | | | | | | | | | | | | | | | | |
|
PERFORMANCE RATIOS: | | | | | | | | | | | | | | | | | | |
|
Net Interest Margin (FTE)
| | |
3.84
|
%
| | |
3.97
|
%
| | |
3.89
|
%
| | | | | | |
|
Return on Average Assets
| | |
0.99
|
%
| | |
0.95
|
%
| | |
0.95
|
%
| | | | | | |
|
Return on Average Common Equity
| | |
10.28
|
%
| | |
9.78
|
%
| | |
10.38
|
%
| | | | | | |
| | | | | | | | | | | | | | | | | |
|
RECONCILIATION TABLE - NON-GAAP FINANCIAL
INFORMATION | | | | | | | | | | | | | | | | | | |
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP) | |
$
|
11,959
| | |
$
|
11,120
| | |
$
|
11,145
| | |
7.54
|
%
| |
7.30
|
%
|
| Non-Interest Income Components | | | | | | | | | | | | | | | | | | |
|
(Less)/Add - (Gain)/Loss on Sale of Securities, net of tax
| | |
-
| | | |
(428
|
)
| | |
13
| | | | | | | |
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
|
|
| NET OPERATING EARNINGS | |
$
|
11,959
|
| |
$
|
10,692
|
| |
$
|
11,158
|
| |
11.85
|
%
| |
7.18
|
%
|
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
| Diluted Earnings Per Share, on an Operating Basis | |
$
|
0.56
|
| |
$
|
0.50
|
| |
$
|
0.53
|
| |
12.00
|
%
| |
5.66
|
%
|
|
| | | |
| | | |
| | |
|
CONSOLIDATED STATEMENTS OF INCOME
| | | | | | | | | | | |
| | Nine Months Ended | | % Change |
| | September 30, | | September 30, | | Sept. 2011 vs. |
| | 2011 | | 2010 | | Sept. 2010 |
| | | | | | | | | | |
|
| INTEREST INCOME | | | | | | | | | | | |
|
Interest on Fed Funds Sold and Short Term Investments
| |
$
|
80
| | |
$
|
267
| | |
-70.04
|
%
|
|
Interest and Dividends on Securities
| | |
16,065
| | | |
18,830
| | |
-14.68
|
%
|
|
Interest on Loans
| | |
130,917
| | | |
133,267
| | |
-1.76
|
%
|
|
Interest on Loans Held for Sale
| |
|
305
|
| |
|
390
|
| |
-21.79
|
%
|
|
Total Interest Income
| | |
147,367
| | | |
152,754
| | |
-3.53
|
%
|
| INTEREST EXPENSE | | | | | | | | | | | |
|
Interest on Deposits
| | |
10,448
| | | |
16,225
| | |
-35.61
|
%
|
|
Interest on Borrowed Funds
| |
|
11,696
|
| |
|
13,955
|
| |
-16.19
|
%
|
|
Total Interest Expense
| |
|
22,144
|
| |
|
30,180
|
| |
-26.63
|
%
|
|
Net Interest Income
| | |
125,223
| | | |
122,574
| | |
2.16
|
%
|
|
Less - Provision for Loan Losses
| |
|
7,682
|
| |
|
15,081
|
| |
-49.06
|
%
|
|
Net Interest Income after Provision for Loan Losses
| | |
117,541
| | | |
107,493
| | |
9.35
|
%
|
| NON-INTEREST INCOME | | | | | | | | | | | |
|
Service Charges on Deposit Accounts
| | |
12,374
| | | |
9,566
| | |
29.35
|
%
|
|
Interchange and ATM Fees
| | |
5,681
| | | |
3,611
| | |
57.32
|
%
|
|
Investment Management
| | |
10,310
| | | |
8,768
| | |
17.59
|
%
|
|
Mortgage Banking Income
| | |
2,637
| | | |
3,091
| | |
-14.69
|
%
|
|
BOLI Income
| | |
2,323
| | | |
2,353
| | |
-1.27
|
%
|
|
Net Gain on Sale of Securities
| | |
723
| | | |
458
| | |
57.86
|
%
|
|
Gross Change on Write-Down of Certain Investments to Fair Value
| | |
101
| | | |
325
| | |
-68.92
|
%
|
|
Less: Portion of Other-Than-Temporary Impairment Losses Recognized
in Other Comprehensive Income
| |
|
(305
|
)
| |
|
(594
|
)
| |
-48.65
|
%
|
|
Net Loss on Write-Down of Certain Investments to Fair Value
| | |
(204
|
)
| | |
(269
|
)
| |
-24.16
|
%
|
|
Other Non-Interest Income
| |
|
4,542
|
| |
|
5,065
|
| |
-10.33
|
%
|
|
Total Non-Interest Income
| | |
38,386
| | | |
32,643
| | |
17.59
|
%
|
| NON-INTEREST EXPENSE | | | | | | | | | | | |
|
Salaries and Employee Benefits
| | |
60,582
| | | |
56,662
| | |
6.92
|
%
|
|
Occupancy and Equipment Expenses
| | |
12,946
| | | |
12,068
| | |
7.28
|
%
|
|
Data Processing and Facilities Management
| | |
3,828
| | | |
4,195
| | |
-8.75
|
%
|
|
FDIC Assessment
| | |
2,760
| | | |
3,944
| | |
-30.02
|
%
|
|
Other Non-Interest Expense
| |
|
28,644
|
| |
|
26,189
|
| |
9.37
|
%
|
|
Total Non-Interest Expense
| | |
108,760
| | | |
103,058
| | |
5.53
|
%
|
|
INCOME BEFORE INCOME TAXES
| |
|
47,167
|
| |
|
37,078
|
| |
27.21
|
%
|
|
PROVISION FOR INCOME TAXES
| |
|
12,900
|
| |
|
8,676
|
| |
48.69
|
%
|
| NET INCOME | |
$
|
34,267
|
| |
$
|
28,402
|
| |
20.65
|
%
|
| | | | | | | | | | |
|
|
BASIC EARNINGS PER SHARE
| |
$
|
1.60
| | |
$
|
1.35
| | |
18.52
|
%
|
|
DILUTED EARNINGS PER SHARE
| |
$
|
1.60
| | |
$
|
1.35
| | |
18.52
|
%
|
|
BASIC AVERAGE SHARES
| | |
21,401,885
| | | |
20,961,378
| | | | |
|
DILUTED AVERAGE SHARES
| | |
21,434,337
| | | |
21,035,914
| | | | |
| | | | | | | | | | |
|
PERFORMANCE RATIOS: | | | | | | | | | | | |
|
Net Interest Margin (FTE)
| | |
3.94
|
%
| | |
3.97
|
%
| | | |
|
Return on Average Assets
| | |
0.97
|
%
| | |
0.83
|
%
| | | |
|
Return on Average Common Equity
| | |
10.10
|
%
| | |
8.98
|
%
| | | |
| | | | | | | | | | |
|
RECONCILIATION TABLE - NON-GAAP FINANCIAL
INFORMATION | | | | | | | | | | | |
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP) | |
$
|
34,267
| | |
$
|
28,402
| | |
20.65
|
%
|
| Non-Interest Income Components | | | | | | | | | | | |
|
Less - Net Gain on Sale of Securities, net of tax
| | |
(428
|
)
| | |
(271
|
)
| | | |
| Non-Interest Expense Components | | | | | | | | | | | |
|
Add - Fair Value Mark on a Terminated Hedging Relationship
| |
|
-
|
| |
|
328
|
| |
|
|
| NET OPERATING EARNINGS | |
$
|
33,839
|
| |
$
|
28,459
|
| |
18.91
|
%
|
| | | | | | | | | | |
|
| | | | | | | | | | |
|
| Diluted Earnings Per Share, on an Operating Basis | |
$
|
1.58
|
| |
$
|
1.35
|
| |
17.04
|
%
|
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION |
| | Three Months Ended | | Nine Months Ended |
| | | | | | | | | | | | | | % Change | | % Change | | | | | | | | | | % Change |
| | September 30, | | June 30, | | September 30, | | Sept. 2011 vs. | | Sept. 2011 vs. | | September 30, | | September 30, | | Sept. 2011 vs. |
| | 2011 | | 2011 | | 2010 | | June 2011 |
| Sept. 2010 |
| 2011 | | 2010 | | Sept. 2010 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Non-Interest Income GAAP | |
$
|
12,315
| | |
$
|
13,474
| | |
$
|
11,654
| | | |
-8.60
|
%
| | |
5.67
|
%
| |
$
|
38,386
| | |
$
|
32,643
| | | |
17.59
|
%
|
|
(Less)/Add - Net (Gain)/Loss on Sale of Securities
| | |
-
| | | |
(723
|
)
| | |
22
| | | |
-100.00
|
%
| | |
-100.00
|
%
| | |
(723
|
)
| | |
(458
|
)
| | |
57.86
|
%
|
|
Add - Other-Than-Temporary-Impairment on Securities
| |
|
28
|
| |
|
136
|
| |
|
7
|
| |
|
-79.41
|
%
| |
|
300.00
|
%
| |
|
204
|
| |
|
269
|
| |
|
-24.16
|
%
|
| Non-Interest Income as Adjusted | |
$
|
12,343
|
| |
$
|
12,887
|
| |
$
|
11,683
|
| |
|
-4.22
|
%
| |
|
5.65
|
%
| |
$
|
37,867
|
| |
$
|
32,454
|
| |
|
16.68
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Non-Interest Expense GAAP | |
$
|
35,423
| | |
$
|
36,856
| | |
$
|
34,540
| | | |
-3.89
|
%
| | |
2.56
|
%
| |
$
|
108,760
| | |
$
|
103,058
| | | |
5.53
|
%
|
|
Less - Fair Value Mark on a Terminated Hedging Relationship
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
n/a
|
| |
|
n/a
|
| |
|
-
|
| |
|
(554
|
)
| |
|
-100.00
|
%
|
| Non-Interest Expense as Adjusted | |
$
|
35,423
|
| |
$
|
36,856
|
| |
$
|
34,540
|
| |
|
-3.89
|
%
| |
|
2.56
|
%
| |
$
|
108,760
|
| |
$
|
102,504
|
| |
|
6.10
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
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 | | Net Charge-Offs |
| | At | | 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, |
| | 2011 | | 2011 | | 2010 | | 2011 |
| 2011 | | 2010 | | 2011 | | 2010 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Nonperforming Loans
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Commercial & Industrial Loans
| |
$
|
1,836
| | |
$
|
2,674
| | |
$
|
4,417
| | |
$
|
672
| | |
$
|
749
| | |
$
|
1,429
| | |
$
|
2,107
| | |
$
|
3,772
| |
|
Small Business Loans
| | |
1,032
| | | |
1,130
| | | |
909
| | | |
368
| | | |
292
| | | |
515
| | | |
898
| | | |
1,567
| |
|
Commercial Real Estate Loans
| | |
10,673
| | | |
7,007
| | | |
8,966
| | | |
(281
|
)
| | |
1,236
| | | |
851
| | | |
1,557
| | | |
4,569
| |
|
Residential Real Estate Loans
| | |
10,420
| | | |
8,546
| | | |
7,863
| | | |
88
| | | |
280
| | | |
24
| | | |
490
| | | |
452
| |
|
Installment Loans - Home Equity
| | |
2,009
| | | |
1,977
| | | |
1,881
| | | |
320
| | | |
488
| | | |
(38
|
)
| | |
882
| | | |
430
| |
|
Installment Loans - Other
| |
|
655
|
| |
|
592
|
| |
|
651
|
| |
|
192
|
| |
|
244
|
| |
|
391
|
| |
|
725
|
|
|
|
1,033
|
|
|
Total Nonperforming Loans / Total Net Charge-offs
| |
$
|
26,625
|
| |
$
|
21,926
|
| |
$
|
24,687
|
| |
$
|
1,359
|
| |
$
|
3,289
|
| |
$
|
3,172
|
| |
$
|
6,659
|
|
|
$
|
11,823
|
|
| Non-Accrual Securities | | |
1,255
| | | |
1,587
| | | |
1,017
| | | | | | | | | | | | | | | | | | | | | |
|
Other Assets in Possession
| | |
270
| | | |
40
| | | |
74
| | | | | | | | | | | | | | | | | | | | | |
|
Other Real Estate Owned
| |
|
8,497
|
| |
|
7,410
|
| |
|
9,011
|
| | | | | | | | | | | | | | | | | | | | |
|
Nonperforming Assets
| |
$
|
36,647
|
| |
$
|
30,963
|
| |
$
|
34,789
|
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Nonperforming Loans/Gross Loans
| | |
0.72
|
%
| | |
0.59
|
%
| | |
0.72
|
%
| | | | | | | | | | | | | | | | | | | | |
|
Allowance for Loan Losses/Nonperforming Loans
| | |
177.57
|
%
| | |
212.70
|
%
| | |
184.79
|
%
| | | | | | | | | | | | | | | | | | | | |
|
Gross Loans/Total Deposits
| | |
98.30
|
%
| | |
98.38
|
%
| | |
94.22
|
%
| | | | | | | | | | | | | | | | | | | | |
|
Allowance for Loan Losses/Total Loans
| | |
1.27
|
%
| | |
1.25
|
%
| | |
1.34
|
%
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Net charge-offs to average loans (quarter annualized)
| | | | | | | | | | | | | | |
0.15
|
%
| | |
0.36
|
%
| | |
0.37
|
%
| | | | | | | | |
|
Net charge-offs to average loans (year-to-date annualized)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
0.24
|
%
| | |
0.46
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | For the | | For the | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ending | | Three Months Ending | | | | | | | | | | | | | | | | | | | | | | | | |
| | September 30, | | June 30, | | | | | | | | | | | | | | | | | | | | | | | | |
Nonperforming Assets Reconciliation | | 2011 | | 2011 | | | | | | | | | | | | | | | | | | | | | | | | |
|
Nonperforming Assets Beginning Balance
| |
$
|
30,963
| | |
$
|
33,856
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
New to Nonperforming
| | |
12,937
| | | |
9,085
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
Loans Charged-Off
| | |
(2,171
|
)
| | |
(3,587
|
)
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Loans Paid-Off
| | |
(2,708
|
)
| | |
(5,130
|
)
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Loans Transferred to Other Real Estate Owned/Other Assets
| | |
(1,458
|
)
| | |
(1,172
|
)
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Loans Restored to Accrual Status
| | |
(1,415
|
)
| | |
(638
|
)
| | | | | | | | | | | | | | | | | | | | | | | | |
|
New to Other Real Estate Owned
| | |
1,458
| | | |
1,172
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
Sale of Other Real Estate Owned
| | |
(300
|
)
| | |
(3,214
|
)
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Other
| |
|
(659
|
)
| |
|
591
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Nonperforming Assets Ending Balance
| |
$
|
36,647
|
| |
$
|
30,963
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | September 30, | | June 30, | | September 30, | | | | | | | | | | | | | | | | | | | |
Financial Ratios | | 2011 | | 2011 | | 2010 | | | | | | | | | | | | | | | | | | | | |
|
Book Value per Common Share
| |
$
|
21.48
| | |
$
|
21.24
| | |
$
|
20.08
| | | | | | | | | | | | | | | | | | | | | |
|
Tangible Common Book Value per Share (proforma to include
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
the tax deductibility of goodwill and exclude impact of CPP) -
Non-GAAP
| |
$
|
15.85
| | |
$
|
15.60
| | |
$
|
14.34
| | | | | | | | | | | | | | | | | | | | | |
| Tangible Common Capital/Tangible Assets
| | |
6.72
|
%
| | |
6.68
|
%
| | |
6.21
|
%
| | | | | | | | | | | | | | | | | | | | |
| Tangible Common Capital/Tangible Asset (proforma to include
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
the tax deductibility of goodwill and exclude impact of CPP) -
Non-GAAP
| | |
7.12
|
%
| | |
7.09
|
%
| | |
6.64
|
%
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Capital Adequacy | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Tier one leverage capital ratio (1)
| | |
8.59
|
%
| | |
8.54
|
%
| | |
7.99
|
%
| | | | | | | | | | | | | | | | | | | | |
|
Tier one common ratio (1)
| | |
9.03
|
%
| | |
8.85
|
%
| | |
8.63
|
%
| | | | | | | | | | | | | | | | | | | | |
|
|
INDEPENDENT BANK CORP. SUPPLEMENTAL
FINANCIAL INFORMATION |
|
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA
|
(Unaudited - Dollars in Thousands)
|
| Three Months Ended |
| | September 30, 2011 |
| June 30, 2011 | September 30, 2010 |
| | | |
| Interest |
| | |
| | |
| Interest | | |
| | |
| Interest |
| | |
|
| | Average | | Earned/ | | Yield/ | | Average | | Earned/ | Yield/ | | Average | | Earned/ | | Yield/ |
| | Balance |
| Paid |
| Rate |
| Balance |
| Paid | Rate |
| Balance |
| Paid |
| Rate |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Interest-Earning Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Interest Earning Deposits with Banks, Federal Funds Sold, and Short
Term Investments
| |
$
|
78,285
| |
$
|
49
| |
0.25
|
%
| |
$
|
23,049
| |
$
|
14
| |
0.24
|
%
| |
$
|
200,862
| |
$
|
135
| |
0.27
|
%
|
|
Securities:
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Trading Assets
| | |
8,437
| | |
72
| |
3.39
|
%
| | |
8,600
| | |
71
| |
3.31
|
%
| | |
7,257
| | |
61
| |
3.33
|
%
|
| Taxable Investment Securities | | |
526,509
| | |
4,856
| |
3.66
|
%
| | |
556,301
| | |
5,286
| |
3.81
|
%
| | |
561,240
| | |
5,618
| |
3.97
|
%
|
| Non-taxable Investment Securities (1)
| |
|
7,104
|
|
|
133
|
|
7.43
|
%
| |
|
8,610
|
|
|
161
|
|
7.50
|
%
| |
|
15,953
|
|
|
277
|
|
6.89
|
%
|
| Total Securities:
| |
|
542,050
|
|
|
5,061
|
|
3.70
|
%
| |
|
573,511
|
|
|
5,518
|
|
3.86
|
%
| |
|
584,450
|
|
|
5,956
|
|
4.04
|
%
|
|
Loans Held for Sale
| | |
12,422
| | |
116
| |
3.70
|
%
| | |
8,659
| | |
70
| |
3.24
|
%
| | |
15,738
| | |
174
| |
4.39
|
%
|
|
Loans
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Commercial and Industrial
| | |
555,745
| | |
5,840
| |
4.17
|
%
| | |
535,764
| | |
5,710
| |
4.27
|
%
| | |
440,539
| | |
5,077
| |
4.57
|
%
|
| Commercial Real Estate | | |
1,800,914
| | |
23,496
| |
5.18
|
%
| | |
1,787,364
| | |
23,618
| |
5.30
|
%
| | |
1,641,627
| | |
23,736
| |
5.74
|
%
|
| Commercial Construction | | |
129,540
| | |
1,495
| |
4.58
|
%
| | |
128,747
| | |
1,482
| |
4.62
|
%
| | |
148,151
| | |
1,792
| |
4.80
|
%
|
|
Small Business
| |
|
77,850
| |
|
1,141
|
|
5.81
|
%
| |
|
79,834
| |
|
1,151
|
|
5.78
|
%
| |
|
80,740
| |
|
1,221
| |
6.00
|
%
|
|
Total Commercial
| | |
2,564,049
| | |
31,972
| |
4.95
|
%
| | |
2,531,709
| | |
31,961
| |
5.06
|
%
| | |
2,311,057
| | |
31,826
| |
5.46
|
%
|
| Residential Real Estate | | |
450,225
| | |
4,915
| |
4.33
|
%
| | |
457,651
| | |
5,167
| |
4.53
|
%
| | |
525,003
| | |
6,174
| |
4.67
|
%
|
| Residential Construction | | |
6,735
| | |
73
| |
4.30
|
%
| | |
4,535
| | |
55
| |
4.86
|
%
| | |
4,874
| | |
63
| |
5.13
|
%
|
|
Consumer - Home Equity
| |
|
638,991
| |
|
6,103
|
|
3.79
|
%
| |
|
627,832
| |
|
5,920
|
|
3.78
|
%
| |
|
507,308
| |
|
4,914
| |
3.84
|
%
|
| Total Consumer Real Estate | |
|
1,095,951
| |
|
11,091
|
|
4.01
|
%
| |
|
1,090,018
| |
|
11,142
|
|
4.10
|
%
| |
|
1,037,185
| |
|
11,151
| |
4.27
|
%
|
|
Total Other Consumer
| |
|
49,864
|
|
|
978
|
|
7.78
|
%
| |
|
56,292
|
|
|
1,098
|
|
7.82
|
%
| |
|
82,130
|
|
|
1,593
|
|
7.70
|
%
|
|
Total Loans:
| |
|
3,709,864
|
|
|
44,041
|
|
4.71
|
%
| |
|
3,678,019
|
|
|
44,201
|
|
4.82
|
%
| |
|
3,430,372
|
|
|
44,570
|
|
5.15
|
%
|
| Total Interest-Earning Assets | |
$
|
4,342,621
|
|
$
|
49,267
|
|
4.50
|
%
| |
$
|
4,283,238
|
|
$
|
49,803
|
|
4.66
|
%
| |
$
|
4,231,422
|
|
$
|
50,835
|
|
4.77
|
%
|
|
Cash and Due from Banks
| | |
57,103
| | | | | | | | |
56,122
| | | | | | | | |
55,357
| | | | | | |
|
Federal Home Loan Bank Stock
| | |
35,854
| | | | | | | | |
35,854
| | | | | | | | |
35,854
| | | | | | |
|
Other Assets
| |
|
345,400
| | | | | | | |
|
322,033
| | | | | | | |
|
323,523
| | | | | | |
| Total Assets | |
$
|
4,780,978
| | | | | | | |
$
|
4,697,247
| | | | | | | |
$
|
4,646,156
| | | | | | |
| Interest-bearing Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Deposits:
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Savings and Interest Checking Accounts
| |
$
|
1,364,307
| |
$
|
839
| |
0.24
|
%
| |
$
|
1,365,892
| |
$
|
850
| |
0.25
|
%
| |
$
|
1,220,073
| |
$
|
1,040
| |
0.34
|
%
|
|
Money Market
| | |
723,736
| | |
763
| |
0.42
|
%
| | |
723,345
| | |
815
| |
0.45
|
%
| | |
757,154
| | |
1,058
| |
0.55
|
%
|
|
Time Deposits
| |
|
659,154
|
|
|
1,817
|
|
1.09
|
%
| |
|
669,941
|
|
|
1,879
|
|
1.12
|
%
| |
|
805,825
|
|
|
2,703
|
|
1.33
|
%
|
|
Total interest-bearing deposits:
| |
$
|
2,747,197
| |
$
|
3,419
| |
0.49
|
%
| |
$
|
2,759,178
| |
$
|
3,544
| |
0.52
|
%
| |
$
|
2,783,052
| |
$
|
4,801
| |
0.68
|
%
|
|
Borrowings:
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Federal Home Loan Bank Borrowings
| |
$
|
261,681
| |
$
|
1,814
| |
2.75
|
%
| |
$
|
276,984
| |
$
|
1,743
| |
2.52
|
%
| |
$
|
302,610
| |
$
|
2,372
| |
3.11
|
%
|
|
Federal Funds Purchased and Assets Sold
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Under Repurchase Agreement
| | |
201,588
| | |
559
| |
1.10
|
%
| | |
181,631
| | |
657
| |
1.45
|
%
| | |
179,983
| | |
740
| |
1.63
|
%
|
|
Junior Subordinated Debentures
| | |
61,857
| | |
922
| |
5.91
|
%
| | |
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
| |
|
2,385
|
|
|
-
|
|
0.00
|
%
| |
|
2,541
|
|
|
-
|
|
0.00
|
%
| |
|
2,602
|
|
|
-
|
|
0.00
|
%
|
|
Total Borrowings:
| |
|
557,511
|
|
|
3,842
|
|
2.73
|
%
| |
|
553,013
|
|
|
3,854
|
|
2.80
|
%
| |
|
577,052
|
|
|
4,590
|
|
3.16
|
%
|
| Total Interest-Bearing Liabilities | |
$
|
3,304,708
|
|
$
|
7,261
|
|
0.87
|
%
| |
$
|
3,312,191
|
|
$
|
7,398
|
|
0.90
|
%
| |
$
|
3,360,104
|
|
$
|
9,391
|
|
1.11
|
%
|
|
Demand Deposits
| | |
944,518
| | | | | | | | |
870,585
| | | | | | | | |
796,205
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Other Liabilities
| |
|
70,380
| | | | | | | |
|
58,621
| | | | | | | |
|
63,790
| | | | | | |
|
Total Liabilities
| |
$
|
4,319,606
| | | | | | | |
$
|
4,241,397
| | | | | | | |
$
|
4,220,099
| | | | | | |
|
Stockholders' Equity
| |
|
461,372
| | | | | | | |
|
455,850
| | | | | | | |
|
426,057
| | | | | | |
| Total Liabilities and Stockholders' Equity | |
$
|
4,780,978
| | | | | | | |
$
|
4,697,247
| | | | | | | |
$
|
4,646,156
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Net Interest Income
| | | | |
$
|
42,006
| | | | | | | |
$
|
42,405
| | | | | | | |
$
|
41,444
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Interest Rate Spread (2)
| | | | | | | |
3.63
|
%
| | | | | | | |
3.76
|
%
| | | | | | | |
3.66
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Net Interest Margin (3)
| | | | | | | |
3.84
|
%
| | | | | | | |
3.97
|
%
| | | | | | | |
3.89
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Supplemental Information: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total Deposits, including Demand Deposits
| |
$
|
3,691,715
| |
$
|
3,419
| | | | |
$
|
3,629,763
| |
$
|
3,544
| | | |
|
$
|
3,579,257
| |
$
|
4,801
| | | |
|
Cost of Total Deposits
| | | | | | | |
0.37
|
%
| | | | | | | |
0.39
|
%
| | | | | | | |
0.53
|
%
|
|
Total Funding Liabilities, including Demand Deposits
| |
$
|
4,249,226
| |
$
|
7,261
| | | | |
$
|
4,182,776
| |
$
|
7,398
| | | | |
$
|
4,156,309
| |
$
|
9,391
| | | |
|
Cost of Total Funding Liabilities
| | | | | | | |
0.68
|
%
| | | | | | | |
0.71
|
%
| | | | | | | |
0.90
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
(1) The total amount of adjustment to present interest income and
yield on a fully tax-equivalent basis is $332, 329, and $247 for the
three months ended September 30, 2011, June 30, 2011, and September
30, 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.
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | Nine Months Ended |
| | September 30, 2011 | | September 30, 2010 |
| | | | | Interest | | | | | | | | Interest | | | |
| | Average | | Earned/ | | Yield/ | | Average | | Earned/ | | Yield/ |
| | Balance |
| Paid |
| Rate | | Balance |
| Paid |
| Rate |
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
| Interest-Earning Assets: | | | | | | | | | | | | | | | | | | |
|
Interest Earning Deposits with Banks, Federal Funds Sold, and Short
Term Investments
| |
$
|
43,181
| |
$
|
80
| |
0.25
|
%
| |
$
|
138,319
| |
$
|
267
| |
0.26
|
%
|
|
Securities:
| | | | | | | | | | | | | | | | | | |
|
Trading Assets
| | |
8,388
| | |
206
| |
3.28
|
%
| | |
7,143
| | |
183
| |
3.43
|
%
|
| Taxable Investment Securities | | |
550,425
| | |
15,573
| |
3.78
|
%
| | |
562,422
| | |
18,093
| |
4.30
|
%
|
| Non-taxable Investment Securities (1)
| |
|
8,619
|
|
|
484
|
|
7.50
|
%
| |
|
17,582
|
|
|
936
|
|
7.12
|
%
|
| Total Securities:
| |
|
567,432
|
|
|
16,263
|
|
3.83
|
%
| |
|
587,147
|
|
|
19,212
|
|
4.37
|
%
|
|
Loans Held for Sale
| | |
11,750
| | |
305
| |
3.47
|
%
| | |
10,204
| | |
390
| |
5.11
|
%
|
|
Loans
| | | | | | | | | | | | | | | | | | |
|
Commercial and Industrial
| | |
530,774
| | |
16,951
| |
4.27
|
%
| | |
406,838
| | |
14,051
| |
4.62
|
%
|
| Commercial Real Estate | | |
1,779,379
| | |
70,310
| |
5.28
|
%
| | |
1,639,380
| | |
70,833
| |
5.78
|
%
|
| Commercial Construction | | |
127,285
| | |
4,388
| |
4.61
|
%
| | |
161,823
| | |
5,967
| |
4.93
|
%
|
|
Small Business
| |
|
79,314
| |
|
3,471
| |
5.85
|
%
| |
|
81,506
| |
|
3,639
|
|
5.97
|
%
|
|
Total Commercial
| | |
2,516,752
| | |
95,120
| |
5.05
|
%
| | |
2,289,547
| | |
94,490
| |
5.52
|
%
|
| Residential Real Estate | | |
458,609
| | |
15,481
| |
4.51
|
%
| | |
536,918
| | |
19,424
| |
4.84
|
%
|
| Residential Construction | | |
5,005
| | |
172
| |
4.59
|
%
| | |
7,146
| | |
276
| |
5.16
|
%
|
|
Consumer - Home Equity
| |
|
622,952
| |
|
17,645
| |
3.79
|
%
| |
|
492,048
| |
|
14,140
|
|
3.84
|
%
|
| Total Consumer Real Estate | |
|
1,086,566
| |
|
33,298
| |
4.10
|
%
| |
|
1,036,112
| |
|
33,840
|
|
4.37
|
%
|
|
Total Other Consumer
| |
|
56,688
|
|
|
3,305
|
|
7.79
|
%
| |
|
93,232
|
|
|
5,388
|
|
7.73
|
%
|
|
Total Loans:
| |
|
3,660,006
|
|
|
131,723
|
|
4.81
|
%
| |
|
3,418,891
|
|
|
133,718
|
|
5.23
|
%
|
| Total Interest-Earning Assets | |
$
|
4,282,369
|
|
$
|
148,371
|
|
4.63
|
%
| |
$
|
4,154,561
|
|
$
|
153,587
|
|
4.94
|
%
|
|
Cash and Due from Banks
| | |
55,101
| | | | | | | | |
64,314
| | | | | | |
|
Federal Home Loan Bank Stock
| | |
35,854
| | | | | | | | |
35,854
| | | | | | |
|
Other Assets
| |
|
329,456
| | | | | | | |
|
310,992
| | | | | | |
| Total Assets | |
$
|
4,702,780
| | | | | | | |
$
|
4,565,721
| | | | | | |
| Interest-bearing Liabilities: | | | | | | | | | | | | | | | | | | |
|
Deposits:
| | | | | | | | | | | | | | | | | | |
|
Savings and Interest Checking Accounts
| |
$
|
1,340,077
| |
$
|
2,449
| |
0.24
|
%
| |
$
|
1,153,459
| |
$
|
3,521
| |
0.41
|
%
|
|
Money Market
| | |
723,675
| | |
2,362
| |
0.44
|
%
| | |
740,128
| | |
3,699
| |
0.67
|
%
|
|
Time Deposits
| |
|
667,279
|
|
|
5,636
|
|
1.13
|
%
| |
|
845,631
|
|
|
9,005
|
|
1.42
|
%
|
|
Total interest-bearing deposits:
| |
$
|
2,731,031
| |
$
|
10,447
| |
0.51
|
%
| |
$
|
2,739,218
| |
$
|
16,225
| |
0.79
|
%
|
|
Borrowings:
| | | | | | | | | | | | | | | | | | |
|
Federal Home Loan Bank Borrowings
| |
$
|
291,103
| |
$
|
5,468
| |
2.51
|
%
| |
$
|
322,221
| |
$
|
7,196
| |
2.99
|
%
|
|
Federal Funds Purchased and Assets Sold
| | | | | | | | | | | | | | | | | | |
|
Under Repurchase Agreement
| | |
187,221
| | |
1,867
| |
1.33
|
%
| | |
182,456
| | |
2,391
| |
1.75
|
%
|
|
Junior Subordinated Debentures
| | |
61,857
| | |
2,738
| |
5.92
|
%
| | |
61,857
| | |
2,744
| |
5.93
|
%
|
|
Subordinated Debentures
| | |
30,000
| | |
1,624
| |
7.24
|
%
| | |
30,000
| | |
1,624
| |
7.24
|
%
|
|
Other Borrowings
| |
|
2,561
|
|
|
-
|
|
0.00
|
%
| |
|
2,704
|
|
|
-
|
|
0.00
|
%
|
|
Total Borrowings:
| |
|
572,742
|
|
|
11,697
|
|
2.73
|
%
| |
|
599,238
|
|
|
13,955
|
|
3.11
|
%
|
| Total Interest-Bearing Liabilities | |
$
|
3,303,773
|
|
$
|
22,144
|
|
0.90
|
%
| |
$
|
3,338,456
|
|
$
|
30,180
|
|
1.21
|
%
|
|
Demand Deposits
| | |
882,460
| | | | | | | | |
750,895
| | | | | | |
| | | | | | | | | | | | | | | | | |
|
|
Other Liabilities
| |
|
62,968
| | | | | | | |
|
53,622
| | | | | | |
|
Total Liabilities
| |
$
|
4,249,201
| | | | | | | |
$
|
4,142,973
| | | | | | |
|
Stockholders' Equity
| |
|
453,579
| | | | | | | |
|
422,748
| | | | | | |
| Total Liabilities and Stockholders' Equity | |
$
|
4,702,780
| | | | | | | |
$
|
4,565,721
| | | | | | |
| | | | | | | | | | | | | | | | | |
|
|
Net Interest Income
| | | | |
$
|
126,227
| | | | | | | |
$
|
123,407
| | | |
| | | | | | | | | | | | | | | | | |
|
|
Interest Rate Spread (2)
| | | | | | | |
3.73
|
%
| | | | | | | |
3.73
|
%
|
| | | | | | | | | | | | | | | | | |
|
|
Net Interest Margin (3)
| | | | | | | |
3.94
|
%
| | | | | | | |
3.97
|
%
|
| | | | | | | | | | | | | | | | | |
|
| Supplemental Information: | | | | | | | | | | | | | | | | | | |
|
Total Deposits, including Demand Deposits
| |
$
|
3,613,491
| |
$
|
10,447
| | | | |
$
|
3,490,113
| |
$
|
16,225
| | | |
|
Cost of Total Deposits
| | | | | | | |
0.39
|
%
| | | | | | | |
0.62
|
%
|
|
Total Funding Liabilities, including Demand Deposits
| |
$
|
4,186,233
| |
$
|
22,144
| | | | |
$
|
4,089,351
| |
$
|
30,180
| | | |
|
Cost of Total Funding Liabilities
| | | | | | | |
0.71
|
%
| | | | | | | |
0.99
|
%
|
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
|
(1) The total amount of adjustment to present interest income and
yield on a fully tax-equivalent basis is $1,004 and $833 for the
nine months ended September 30, 2011, and September 30, 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. |
Independent Bank Corp.
Chris Oddleifson, 781-982-6660
President
and
Chief Executive Officer
or
Denis
K. Sheahan, 781-982-6341
Chief Financial Officer
Source: Independent Bank Corp.