Attached files
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| 8-K - INDEPENDENT BANK CORP. 8-K - INDEPENDENT BANK CORP | a6683640.htm |
Exhibit 99.1
Independent Bank Corp. Reports First Quarter Net Income of $11.2 Million
Solid Asset Quality Trends and Continued Strong Loan Growth Drive Performance
ROCKLAND, Mass.--(BUSINESS WIRE)--April 14, 2011--Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced net income of $11.2 million for the first quarter of 2011, or $0.52 on a diluted earnings per share basis. The results of the first quarter 2011 represent an increase of $0.08, or 18.2%, on a diluted earnings per share basis as compared to the first quarter of 2010. As compared to the linked quarter, the diluted earnings per share results for the first quarter declined, as is typical for the Company, by $0.04, or 7.1%, primarily due to seasonality and the timing of certain revenue and expense items.
Christopher Oddleifson, the President and Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company, stated: “I’m pleased that Rockland Trust has had such a strong start to 2011. We continue to build upon the momentum created by our extraordinary 2010. Commercial and home equity lending continues to drive our growth, and we remain focused on increasing our core customer base. Rockland Trust’s products, services, and commitment to the markets we serve position us well for another solid year.”
BALANCE SHEET
Total assets of $4.6 billion at March 31, 2011 are down slightly from the prior quarter.
Total loans grew to $3.6 billion at March 31, 2011, an increase of $72.7 million, or 2.0%, compared with the prior quarter, or 8.3% on an annualized basis. The Company sustained growth in its commercial and industrial loan portfolio, which increased by $5.9 million, or 1.2%, in the first quarter, as the Company continued to add high-quality customers and expand existing relationships. Commercial real estate loan generation remained healthy, as the portfolio increased by $53.2 million, or 3.1%. The home equity portfolio also exhibited continued growth, rising $40.4 million, or 7.0%. Residential real estate loans declined by $11.8 million, or 2.5%, as loans refinanced into longer-term, fixed-rate loans, which are not commonly held in portfolio by the Company.
Total deposits decreased by $42.9 million, or 1.2%, during the quarter ended March 31, 2011. Core deposits were lower by $24.5 million, or 0.8%, driven by seasonality in the Company’s deposit base. The Company’s emphasis on lower cost core deposits has led to a steady reduction in time deposits which declined by $18.4 million, or 2.7%, in the first quarter. Core deposits to total deposits rose to 81.2% and the total cost of deposits continued to decline to 0.40% for the current quarter, down 5 basis points from the prior period.
Securities remained relatively flat quarter over quarter at $589.2 million. The Company purchased mortgage-backed securities to replace runoff of existing securities during the quarter.
Stockholders’ equity at March 31, 2011 increased by 2.6% to $448.0 million as compared to the level at December 31, 2010. The Tier 1 leverage capital ratio at March 31, 2011 rose to 8.5% from 8.2% in the prior quarter, maintaining the Company’s well-capitalized position.
NET INTEREST INCOME
Net interest income of $41.5 million was up from the prior quarter. The net interest margin in the first quarter of 2011 expanded to 4.02%, compared to 3.91% in the linked quarter period due largely to lower funding costs, as well as a reduction in the Company’s overnight cash position.
NON-INTEREST INCOME
The Company recorded non-interest income of $12.6 million during the first quarter of 2011 which represents a $1.7 million, or 11.7%, decrease from the prior quarter. The change in non-interest income is composed of the following:
- Interchange and ATM fees increased by $229,000, or 15.6%, due primarily to the reclassification of certain net interchange revenue between interchange revenue and other non-interest expense. Previously, the net amount was recorded in noninterest expense.
- Wealth management revenue increased by $261,000, or 8.8%. Assets under management in the wealth management division rose to $1.6 billion at March 31, 2011, an increase of $74.3 million compared to December 31, 2010.
- Mortgage banking income decreased by $903,000, due to reduced volume. The balance of the mortgage servicing rights asset was $1.6 million and represented 64 basis points of the servicing portfolio at March 31, 2011.
- Other non-interest income decreased by $1.0 million, or 34.3%, mainly due to fee revenue in the prior period associated with loan level interest rate derivatives.
NON-INTEREST EXPENSE
The Company recorded non-interest expense of $36.5 million in the first quarter of 2011, a decrease of $206,000, or 0.6%, when compared to the quarter ended December 31, 2010. Significant changes of non-interest expense included the following:
- Occupancy and equipment increased $632,000, or 16.0% primarily due to costs related to snow removal.
- Other non-interest expense decreased by $816,000, or 8.6%, which is primarily attributable to lower credit-related loan workout expenses of $727,000.
The Company generated a return on average assets and a return on average common equity in the first quarter of 2011 of 0.98% and 10.24%, respectively, as compared to 1.01% and 10.85% for the quarter ended December 31, 2010.
ASSET QUALITY
The Company experienced continued solid asset quality trends during the quarter. Net charge-offs decreased to $2.0 million, or 0.23% on an annualized basis of average loans, for the first quarter of 2011 compared to $2.9 million, or 0.33% for the quarter ended December 31, 2010. The provision for loan losses was $2.2 million and $3.6 million for the quarters ended March 31, 2011 and December 31, 2010, respectively. Nonperforming loans increased slightly to $23.4 million, or 0.64% of total loans at March 31, 2011, from $23.1 million, or 0.65% of total loans at December 31, 2010. Delinquency as a percent of loans was 1.19% at March 31, 2011 compared to 1.11% at December 31, 2010.
The allowance for loan losses was $46.4 million at March 31, 2011, compared with the prior quarter level of $46.3 million. The Company’s allowance for loan losses was 1.28%, as a percentage of total loans at March 31, 2011, compared to 1.30%, at December 31, 2010.
Christopher Oddleifson and Denis K. Sheahan, Chief Financial Officer, of Independent Bank Corp. and Rockland Trust Company, will host a conference call to discuss first quarter earnings at 10:00 a.m. Eastern Time on Friday, April 15, 2011. Internet access to the call is available on the Company’s website at www.RocklandTrust.com or by telephonic access by dial-in at 1-877-317-6789 reference: INDB. A replay of the call will be available by calling 1-877-344-7529, Replay Pass code: 449867. The web cast replay will be available until April 15, 2012.
Independent Bank Corp., which has Rockland Trust Company as a wholly-owned bank subsidiary, has $4.6 billion in assets. Rockland Trust offers a wide range of commercial banking products and services, retail banking products and services, business and consumer loans, insurance products and services, and investment management services. To find out why Rockland Trust is the bank Where Each Relationship Matters®, visit www.RocklandTrust.com.
This press release contains certain “forward-looking statements” with respect to the financial condition, results of operations and business of the Company. Actual results may differ from those contemplated by these statements. The Company wishes to caution readers not to place undue reliance on any forward-looking statements. The Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise.
This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Operating earnings, which is a non-GAAP financial measure, excludes gain or loss due to items that management does not believe are related to its core banking business, such as gains or losses on the sales of securities, merger and acquisition expenses, and other items. The Company’s management uses operating earnings to measure the strength of the Company’s core banking business and to identify trends that may to some extent be obscured by gains or losses which management deems not to be core to the Company’s operations. The Company has included information on operating earnings because management believes that investors may find it useful to have access to the same analytical tool used by management and may also find that it facilitates the comparison of the Company to other companies in the financial services industry. Non-GAAP operating earnings should not be viewed as a substitute for operating results determined in accordance with GAAP. An item which management deems to be non-core and excludes when computing non-GAAP operating earnings can be of substantial importance to the Company’s results for any particular quarter or year. The Company’s non-GAAP operating earnings are not necessarily comparable to non-GAAP performance measures which may be presented by other companies.
|
INDEPENDENT BANK CORP. FINANCIAL SUMMARY |
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| (Unaudited - Dollars in Thousands) | ||||||||||||||||||
| % Change | % Change | |||||||||||||||||
| CONSOLIDATED BALANCE SHEETS | March 31, | December 31, | March 31, | March 2011 vs. | March 2011 vs. | |||||||||||||
| 2011 | 2010 | 2010 | Dec. 2010 | March 2010 | ||||||||||||||
| Assets | ||||||||||||||||||
| Cash and Due From Banks | $ | 49,242 | $ | 42,112 | $ | 60,824 | 16.93 | % | -19.04 | % | ||||||||
| Interest Earning Deposits with Banks | 17,042 | 119,170 | 158,231 | -85.70 | % | -89.23 | % | |||||||||||
| Fed Funds Sold and Short Term Investments | 417 | - | - | 100.00 | % | 100.00 | % | |||||||||||
| Securities | ||||||||||||||||||
| Trading Assets | 8,521 | 7,597 | 7,399 | 12.16 | % | 15.16 | % | |||||||||||
| Securities Available for Sale | 341,362 | 377,457 | 473,515 | -9.56 | % | -27.91 | % | |||||||||||
| Securities Held to Maturity | 239,305 | 202,732 | 91,059 | 18.04 | % | 162.80 | % | |||||||||||
| Total Securities | 589,188 | 587,786 | 571,973 | 0.24 | % | 3.01 | % | |||||||||||
| Loans Held for Sale | 8,643 | 27,917 | 7,570 | -69.04 | % | 14.17 | % | |||||||||||
| Loans | ||||||||||||||||||
| Commercial and Industrial | 508,839 | 502,952 | 387,785 | 1.17 | % | 31.22 | % | |||||||||||
| Commercial Real Estate | 1,770,324 | 1,717,118 | 1,645,251 | 3.10 | % | 7.60 | % | |||||||||||
| Commercial Construction | 123,428 | 129,421 | 167,161 | -4.63 | % | -26.16 | % | |||||||||||
| Small Business | 80,817 | 80,026 | 81,696 | 0.99 | % | -1.08 | % | |||||||||||
| Total Commercial | 2,483,408 | 2,429,517 | 2,281,893 | 2.22 | % | 8.83 | % | |||||||||||
| Residential Real Estate | 462,110 | 473,936 | 539,709 | -2.50 | % | -14.38 | % | |||||||||||
| Residential Construction | 3,256 | 4,175 | 7,732 | -22.01 | % | -57.89 | % | |||||||||||
| Consumer - Home Equity | 619,727 | 579,278 | 484,413 | 6.98 | % | 27.93 | % | |||||||||||
| Total Consumer Real Estate | 1,085,093 | 1,057,389 | 1,031,854 | 2.62 | % | 5.16 | % | |||||||||||
| Total Other Consumer | 59,873 | 68,773 | 98,045 | -12.94 | % | -38.93 | % | |||||||||||
| Total Loans | 3,628,374 | 3,555,679 | 3,411,792 | 2.04 | % | 6.35 | % | |||||||||||
| Less - Allowance for Loan Losses | (46,444 | ) | (46,255 | ) | (45,278 | ) | 0.41 | % | 2.58 | % | ||||||||
| Net Loans | 3,581,930 | 3,509,424 | 3,366,514 | 2.07 | % | 6.40 | % | |||||||||||
| Federal Home Loan Bank Stock | 35,854 | 35,854 | 35,854 | 0.00 | % | 0.00 | % | |||||||||||
| Bank Premises and Equipment | 46,481 | 45,712 | 44,850 | 1.68 | % | 3.64 | % | |||||||||||
| Goodwill and Core Deposit Intangible | 141,951 | 141,956 | 143,371 | 0.00 | % | -0.99 | % | |||||||||||
| Other Assets | 175,035 | 185,807 | 158,020 | -5.80 | % | 10.77 | % | |||||||||||
| Total Assets | $ | 4,645,783 | $ | 4,695,738 | $ | 4,547,207 | -1.06 | % | 2.17 | % | ||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||
| Deposits | ||||||||||||||||||
| Demand Deposits | $ | 837,705 | $ | 842,067 | $ | 720,246 | -0.52 | % | 16.31 | % | ||||||||
| Savings and Interest Checking Accounts | 1,348,242 | 1,375,254 | 1,170,194 | -1.96 | % | 15.22 | % | |||||||||||
| Money Market | 724,203 | 717,286 | 719,761 | 0.96 | % | 0.62 | % | |||||||||||
| Time Certificates of Deposit | 674,776 | 693,176 | 863,652 | -2.65 | % | -21.87 | % | |||||||||||
| Total Deposits | 3,584,926 | 3,627,783 | 3,473,853 | -1.18 | % | 3.20 | % | |||||||||||
| Borrowings | ||||||||||||||||||
| Federal Home Loan Bank Borrowings | 277,285 | 302,414 | 327,807 | -8.31 | % | -15.41 | % | |||||||||||
| Fed Funds Purchased and Assets Sold | ||||||||||||||||||
| Under Repurchase Agreements | 184,738 | 168,119 | 184,436 | 9.89 | % | 0.16 | % | |||||||||||
| Junior Subordinated Debentures | 61,857 | 61,857 | 61,857 | 0.00 | % | 0.00 | % | |||||||||||
| Subordinated Debentures | 30,000 | 30,000 | 30,000 | 0.00 | % | 0.00 | % | |||||||||||
| Other Borrowings | 2,838 | 3,044 | 2,873 | -6.77 | % | -1.22 | % | |||||||||||
| Total Borrowings | 556,718 | 565,434 | 606,973 | -1.54 | % | -8.28 | % | |||||||||||
| Total Deposits and Borrowings | 4,141,644 | 4,193,217 | 4,080,826 | -1.23 | % | 1.49 | % | |||||||||||
| Other Liabilities | 56,154 | 66,049 | 48,157 | -14.98 | % | 16.61 | % | |||||||||||
| Stockholders' Equity | ||||||||||||||||||
| Common Stock | 212 | 210 | 209 | 0.95 | % | 1.44 | % | |||||||||||
| Additional Paid in Capital | 230,581 | 226,708 | 225,373 | 1.71 | % | 2.31 | % | |||||||||||
| Retained Earnings | 217,443 | 210,320 | 190,064 | 3.39 | % | 14.41 | % | |||||||||||
| Accumulated Other Comprehensive Income/(Loss), Net of Tax | (251 | ) | (766 | ) | 2,578 | -67.23 | % | -109.74 | % | |||||||||
| Total Stockholders' Equity | 447,985 | 436,472 | 418,224 | 2.64 | % | 7.12 | % | |||||||||||
| Total Liabilities and Stockholders' Equity | $ | 4,645,783 | $ | 4,695,738 | $ | 4,547,207 | -1.06 | % | 2.17 | % | ||||||||
|
INDEPENDENT BANK CORP. FINANCIAL SUMMARY |
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| (Unaudited - Dollars in Thousands, Except Per Share Data) | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | |||||||||||||||||
| % Change | % Change | |||||||||||||||||
| March 31, | December 31, | March 31, | March 2011 vs. | March 2011 vs. | ||||||||||||||
| 2011 | 2010 | 2010 | Dec. 2010 | March 2010 | ||||||||||||||
| INTEREST INCOME | ||||||||||||||||||
| Interest on Fed Funds Sold and Short Term Investments | $ | 17 | $ | 71 | $ | 24 | -76.06 | % | -29.17 | % | ||||||||
| Interest and Dividends on Securities | 5,606 | 5,827 | 6,671 | -3.79 | % | -15.96 | % | |||||||||||
| Interest on Loans | 43,216 | 43,797 | 44,047 | -1.33 | % | -1.89 | % | |||||||||||
| Interest on Loans Held for Sale | 119 | 276 | 106 | -56.88 | % | 12.26 | % | |||||||||||
| Total Interest Income | 48,958 | 49,971 | 50,848 | -2.03 | % | -3.72 | % | |||||||||||
| INTEREST EXPENSE | ||||||||||||||||||
| Interest on Deposits | 3,485 | 4,029 | 5,939 | -13.50 | % | -41.32 | % | |||||||||||
| Interest on Borrowed Funds | 4,000 | 4,553 | 4,699 | -12.15 | % | -14.88 | % | |||||||||||
| Total Interest Expense | 7,485 | 8,582 | 10,638 | -12.78 | % | -29.64 | % | |||||||||||
| Net Interest Income | 41,473 | 41,389 | 40,210 | 0.20 | % | 3.14 | % | |||||||||||
| Less - Provision for Loan Losses | 2,200 | 3,575 | 4,650 | -38.46 | % | -52.69 | % | |||||||||||
| Net Interest Income after Provision for Loan Losses | 39,273 | 37,814 | 35,560 | 3.86 | % | 10.44 | % | |||||||||||
| NON-INTEREST INCOME | ||||||||||||||||||
| Service Charges on Deposit Accounts | 3,959 | 4,057 | 3,131 | -2.42 | % | 26.45 | % | |||||||||||
| Interchange and ATM Fees | 1,702 | 1,473 | 1,090 | 15.55 | % | 56.15 | % | |||||||||||
| Wealth Management | 3,216 | 2,955 | 2,728 | 8.83 | % | 17.89 | % | |||||||||||
| Mortgage Banking Income | 1,047 | 1,950 | 1,000 | -46.31 | % | 4.70 | % | |||||||||||
| BOLI Income | 706 | 839 | 721 | -15.85 | % | -2.08 | % | |||||||||||
| Other-Than-Temporary Impairment Losses on Available-for-Sale Debt Securities: | ||||||||||||||||||
| Gross Change on Write-Down of Certain Investments to Fair Value | 249 | 172 | 180 | 44.77 | % | 38.33 | % | |||||||||||
| Less: Portion of Other-Than-Temporary Impairment Recognized in Other Comprehensive Income | (289 | ) | (238 | ) | (358 | ) | 21.43 | % | -19.27 | % | ||||||||
| Net Impairment Losses Recognized in Earnings on Available-for-Sale Debt Securities | (40 | ) | (66 | ) | (178 | ) | -39.39 | % | -77.53 | % | ||||||||
| Other Non-Interest /Income | 2,008 | 3,055 | 1,558 | -34.27 | % | 28.88 | % | |||||||||||
| Total Non-Interest Income | 12,598 | 14,263 | 10,050 | -11.67 | % | 25.35 | % | |||||||||||
| NON-INTEREST EXPENSE | ||||||||||||||||||
| Salaries and Employee Benefits | 20,252 | 20,322 | 18,464 | -0.34 | % | 9.68 | % | |||||||||||
| Occupancy and Equipment Expenses | 4,575 | 3,943 | 4,135 | 16.03 | % | 10.64 | % | |||||||||||
| Data Processing and Facilities Management | 1,638 | 1,578 | 1,294 | 3.80 | % | 26.58 | % | |||||||||||
| FDIC Assessment | 1,291 | 1,303 | 1,321 | -0.92 | % | -2.27 | % | |||||||||||
| Other Non-Interest Expense | 8,726 | 9,542 | 8,374 | -8.55 | % | 4.20 | % | |||||||||||
| Total Non-Interest Expense | 36,482 | 36,688 | 33,588 | -0.56 | % | 8.62 | % | |||||||||||
| INCOME BEFORE INCOME TAXES | 15,389 | 15,389 | 12,022 | 0.00 | % | 28.01 | % | |||||||||||
| PROVISION FOR INCOME TAXES | 4,201 | 3,551 | 2,795 | 18.30 | % | 50.30 | % | |||||||||||
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ | 11,188 | $ | 11,838 | $ | 9,227 | -5.49 | % | 21.25 | % | ||||||||
| BASIC EARNINGS PER SHARE | $ | 0.53 | $ | 0.56 | $ | 0.44 | -5.36 | % | 20.45 | % | ||||||||
| DILUTED EARNINGS PER SHARE | $ | 0.52 | $ | 0.56 | $ | 0.44 | -7.14 | % | 18.18 | % | ||||||||
| BASIC AVERAGE SHARES | 21,298,257 | 21,208,509 | 20,937,589 | |||||||||||||||
| DILUTED AVERAGE SHARES | 21,344,339 | 21,238,482 | 21,008,422 | |||||||||||||||
|
PERFORMANCE RATIOS: |
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| Net Interest Margin (FTE) | 4.02 | % | 3.91 | % | 4.08 | % | ||||||||||||
| Return on Average Assets | 0.98 | % | 1.01 | % | 0.84 | % | ||||||||||||
| Return on Average Common Equity | 10.24 | % | 10.85 | % | 8.95 | % | ||||||||||||
|
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION |
||||||||||||||||||
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS (GAAP) | $ | 11,188 | $ | 11,838 | $ | 9,227 | -5.49 | % | 21.25 | % | ||||||||
| NET OPERATING EARNINGS | $ | 11,188 | $ | 11,838 | $ | 9,227 | -5.49 | % | 21.25 | % | ||||||||
| Diluted Earnings Per Share, on an Operating Basis | $ | 0.52 | $ | 0.56 | $ | 0.44 | -7.14 | % | 18.18 | % | ||||||||
|
INDEPENDENT BANK CORP. FINANCIAL SUMMARY |
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| (Unaudited - Dollars in Thousands, Except Per Share Data) | ||||||||||||||||||||||||
| RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||
| % Change | % Change | |||||||||||||||||||||||
| March 31, | December 31, | March 31, | March 2011 vs. | March 2011 vs. | ||||||||||||||||||||
| 2011 | 2010 | 2010 | Dec. 2010 | March 2010 | ||||||||||||||||||||
| Non-Interest Income GAAP | $ | 12,598 | $ | 14,263 | $ | 10,050 | -11.67 | % | 25.35 | % | ||||||||||||||
| Add - Other-Than-Temporary-Impairment on Securities | 40 | 66 | 178 | -39.39 | % | -77.53 | % | |||||||||||||||||
| Non-Interest Income as Adjusted | $ | 12,638 | $ | 14,329 | $ | 10,228 | -11.80 | % | 23.56 | % | ||||||||||||||
| Certain non-core items are included in the computation of earnings in accordance with United States of America generally accepted accounting principles (“GAAP”) in both 2011 and 2010 as indicated by the table above. In an effort to provide investors with information regarding the Company's results, the Company has disclosed the following non-GAAP information, which management believes provides useful information to the investor. This information should not be viewed as a substitute for operating results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP information which may be presented by other companies. | ||||||||||||||||||||||||
|
ASSET QUALITY |
Nonperforming Assets | Net Charge-Offs | ||||||||||||||||||||||
| For the Period Ending | For the Three Months Ending | |||||||||||||||||||||||
| March 31, | December 31, | March 31, | March 31, | December 31, | March 31, | |||||||||||||||||||
| 2011 | 2010 | 2010 | 2011 | 2010 | 2010 | |||||||||||||||||||
| Nonperforming Loans | ||||||||||||||||||||||||
| Commercial & Industrial Loans | $ | 3,011 | $ | 3,123 | $ | 7,252 | $ | 686 | $ | 1,037 | $ | 527 | ||||||||||||
| Small Business Loans | 617 | 887 | 1,294 | 238 | 495 | 251 | ||||||||||||||||||
| Commercial Real Estate Loans | 9,229 | 9,836 | 23,645 | 602 | 594 | 198 | ||||||||||||||||||
| Residential Real Estate Loans | 7,299 | 6,728 | 8,092 | 122 | 46 | 135 | ||||||||||||||||||
| Installment Loans - Home Equity | 2,589 | 1,756 | 948 | 74 | 378 | 234 | ||||||||||||||||||
| Installment Loans - Other | 652 | 778 | 609 | 289 | 388 | 388 | ||||||||||||||||||
| Total Nonperforming Loans / Total Net Charge-offs | $ | 23,397 | $ | 23,108 | $ | 41,840 | $ | 2,011 | $ | 2,938 | $ | 1,733 | ||||||||||||
| Non-Accrual Securities | 1,054 | 1,051 | 899 | |||||||||||||||||||||
| Other Assets in Possession | 59 | 61 | 98 | |||||||||||||||||||||
| Other Real Estate Owned | 9,346 | 7,273 | 5,990 | |||||||||||||||||||||
| Nonperforming Assets | $ | 33,856 | $ | 31,493 | $ | 48,827 | ||||||||||||||||||
| Nonperforming Loans/Gross Loans | 0.64 | % | 0.65 | % | 1.23 | % | ||||||||||||||||||
| Allowance for Loan Losses/Nonperforming Loans | 198.50 | % | 200.17 | % | 108.22 | % | ||||||||||||||||||
| Gross Loans/Total Deposits | 101.21 | % | 98.01 | % | 98.21 | % | ||||||||||||||||||
| Allowance for Loan Losses/Total Loans | 1.28 | % | 1.30 | % | 1.33 | % | ||||||||||||||||||
| Net charge-offs to average loans (quarter annualized) | 0.23 | % | 0.33 | % | 0.21 | % | ||||||||||||||||||
| QTD | ||||||||||||||||||||||||
| March 31, | ||||||||||||||||||||||||
|
Nonperforming Assets Reconciliation |
2011 | |||||||||||||||||||||||
| Nonperforming Assets Beginning Balance | $ | 31,493 | ||||||||||||||||||||||
| New to Nonperforming | 9,046 | |||||||||||||||||||||||
| Loans Charged-Off | (2,484 | ) | ||||||||||||||||||||||
| Loans Paid-Off | (1,934 | ) | ||||||||||||||||||||||
| Loans Transferred to Other Real Estate Owned/Other Assets | (3,061 | ) | ||||||||||||||||||||||
| Loans Restored to Accrual Status | (1,116 | ) | ||||||||||||||||||||||
| New to Other Real Estate Owned | 3,061 | |||||||||||||||||||||||
| Sale of Other Real Estate Owned | (457 | ) | ||||||||||||||||||||||
| Other | (692 | ) | ||||||||||||||||||||||
| Nonperforming Assets Ending Balance | $ | 33,856 | ||||||||||||||||||||||
| March 31, | December 31, | March 31, | ||||||||||||||||||||||
|
Financial Ratios |
2011 | 2010 | 2010 | |||||||||||||||||||||
| Book Value per Common Share | $ | 20.93 | $ | 20.57 | $ | 19.76 | ||||||||||||||||||
|
Tangible Common Book Value per Share (proforma to include the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP |
$ | 15.26 | $ | 14.86 | $ | 13.97 | ||||||||||||||||||
| Tangible Common Capital/Tangible Assets | 6.79 | % | 6.47 | % | 6.24 | % | ||||||||||||||||||
|
Tangible Common Capital/Tangible Asset (proforma to include the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP |
7.22 | % | 6.89 | % | 6.68 | % | ||||||||||||||||||
|
Capital Adequacy |
||||||||||||||||||||||||
| Tier one leverage capital ratio (1) | 8.48 | % | 8.19 | % | 8.06 | % | ||||||||||||||||||
| Tier one common ratio (1) | 8.81 | % | 8.61 | % | 8.29 | % | ||||||||||||||||||
| (1) Estimated number for March 31, 2011 | ||||||||||||||||||||||||
| INDEPENDENT BANK CORP. | |||||||||||||||||||||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION | |||||||||||||||||||||||||||
| CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA | Three Months Ended | ||||||||||||||||||||||||||
| March 31, 2011 | December 31, 2010 |
|
March 31, 2010 |
||||||||||||||||||||||||
| Interest | Interest | Interest | |||||||||||||||||||||||||
| Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | |||||||||||||||||||
| Balance | Paid | Rate | Balance | Paid | Rate | Balance | Paid | Rate | |||||||||||||||||||
| (Unaudited - Dollars in Thousands) | |||||||||||||||||||||||||||
| Interest-Earning Assets: | |||||||||||||||||||||||||||
| Interest Earning Deposits with Banks, Federal Funds Sold, and Short Term Investments | $ | 27,652 | $ | 17 | 0.25 | % | $ | 113,325 | $ | 71 | 0.25 | % | $ | 23,144 | $ | 24 | 0.42 | % | |||||||||
| Securities: | |||||||||||||||||||||||||||
| Trading Assets | 8,124 | 63 | 3.15 | % | 7,469 | 80 | 4.25 | % | 6,800 | 60 | 3.58 | % | |||||||||||||||
| Taxable Investment Securities | 568,933 | 5,430 | 3.87 | % | 588,797 | 5,627 | 3.79 | % | 568,550 | 6,409 | 4.57 | % | |||||||||||||||
| Non-taxable Investment Securities (1) | 10,175 | 191 | 7.61 | % | 10,816 | 203 | 7.45 | % | 19,111 | 342 | 7.26 | % | |||||||||||||||
| Total Securities: | 587,232 | 5,684 | 3.93 | % | 607,082 | 5,910 | 3.86 | % | 594,461 | 6,811 | 4.65 | % | |||||||||||||||
| Loans Held for Sale | 14,190 | 119 | 3.40 | % | 34,252 | 276 | 3.20 | % | 7,125 | 106 | 6.03 | % | |||||||||||||||
| Loans | |||||||||||||||||||||||||||
| Commercial and Industrial | 500,202 | 5,401 | 4.38 | % | 486,845 | 5,405 | 4.40 | % | 377,855 | 4,248 | 4.56 | % | |||||||||||||||
| Commercial Real Estate | 1,749,292 | 23,197 | 5.38 | % | 1,667,304 | 23,384 | 5.56 | % | 1,630,944 | 23,258 | 5.78 | % | |||||||||||||||
| Commercial Construction | 123,501 | 1,410 | 4.63 | % | 136,831 | 1,540 | 4.47 | % | 171,535 | 2,076 | 4.91 | % | |||||||||||||||
| Small Business | 80,286 | 1,179 | 5.96 | % | 79,863 | 1,190 | 5.91 | % | 82,476 | 1,217 | 5.98 | % | |||||||||||||||
| Total Commercial | 2,453,281 | 31,187 | 5.16 | % | 2,370,843 | 31,519 | 5.27 | % | 2,262,810 | 30,799 | 5.52 | % | |||||||||||||||
| Residential Real Estate | 468,146 | 5,399 | 4.68 | % | 490,439 | 5,810 | 4.70 | % | 548,533 | 6,765 | 5.00 | % | |||||||||||||||
| Residential Construction | 3,712 | 44 | 4.81 | % | 4,842 | 59 | 4.83 | % | 9,102 | 118 | 5.26 | % | |||||||||||||||
| Consumer - Home Equity | 601,624 | 5,622 | 3.79 | % | 542,979 | 5,229 | 3.82 | % | 478,324 | 4,522 | 3.83 | % | |||||||||||||||
| Total Consumer Real Estate | 1,073,482 | 11,065 | 4.18 | % | 1,038,260 | 11,098 | 4.24 | % | 1,035,959 | 11,405 | 4.46 | % | |||||||||||||||
| Total Other Consumer | 64,066 | 1,229 | 7.78 | % | 72,781 | 1,412 | 7.70 | % | 105,140 | 2,012 | 7.76 | % | |||||||||||||||
| Total Loans | 3,590,829 | 43,481 | 4.91 | % | 3,481,884 | 44,029 | 5.02 | % | 3,403,909 | 44,216 | 5.27 | % | |||||||||||||||
| Total Interest-Earning Assets | $ | 4,219,903 | $ | 49,301 | 4.74 | % | $ | 4,236,543 | $ | 50,286 | 4.71 | % | $ | 4,028,639 | $ | 51,157 | 5.15 | % | |||||||||
| Cash and Due from Banks | 52,023 | 55,541 | 66,405 | ||||||||||||||||||||||||
| Federal Home Loan Bank Stock | 35,854 | 35,854 | 35,854 | ||||||||||||||||||||||||
| Other Assets | 320,658 | 331,791 | 304,200 | ||||||||||||||||||||||||
| Total Assets | $ | 4,628,438 | $ | 4,659,729 | $ | 4,435,098 | |||||||||||||||||||||
| Interest-bearing Liabilities: | |||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||
| Savings and Interest Checking Accounts | $ | 1,289,201 | $ | 760 | 0.24 | % | $ | 1,271,639 | $ | 876 | 0.27 | % | $ | 1,056,156 | $ | 1,184 | 0.45 | % | |||||||||
| Money Market | 723,946 | 785 | 0.44 | % | 736,700 | 866 | 0.47 | % | 702,390 | 1,320 | 0.76 | % | |||||||||||||||
| Time Deposits | 672,893 | 1,940 | 1.17 | % | 721,970 | 2,287 | 1.26 | % | 889,449 | 3,435 | 1.57 | % | |||||||||||||||
| Total interest-bearing deposits: | $ | 2,686,040 | $ | 3,485 | 0.53 | % | $ | 2,730,309 | $ | 4,029 | 0.59 | % | $ | 2,647,995 | $ | 5,939 | 0.91 | % | |||||||||
| Borrowings: | |||||||||||||||||||||||||||
| Federal Home Loan Bank Borrowings | $ | 335,457 | $ | 1,910 | 2.31 | % | $ | 306,075 | $ | 2,391 | 3.10 | % | $ | 340,301 | $ | 2,432 | 2.90 | % | |||||||||
| Federal Funds Purchased and Assets Sold | |||||||||||||||||||||||||||
| Under Repurchase Agreement | 178,185 | 651 | 1.48 | % | 182,501 | 693 | 1.51 | % | 184,624 | 830 | 1.82 | % | |||||||||||||||
| Junior Subordinated Debentures | 61,857 | 904 | 5.93 | % | 61,857 | 922 | 5.91 | % | 61,857 | 902 | 5.91 | % | |||||||||||||||
| Subordinated Debentures | 30,000 | 535 | 7.23 | % | 30,000 | 547 | 7.23 | % | 30,000 | 535 | 7.23 | % | |||||||||||||||
| Other Borrowings | 2,761 | - | 0.00 | % | 3,093 | - | 0.00 | % | 2,360 | - | 0.00 | % | |||||||||||||||
| Total Borrowings: | 608,260 | 4,000 | 2.67 | % | 583,526 | 4,553 | 3.10 | % | 619,142 | 4,699 | 3.08 | % | |||||||||||||||
| Total Interest-Bearing Liabilities | $ | 3,294,300 | $ | 7,485 | 0.92 | % | $ | 3,313,835 | $ | 8,582 | 1.03 | % | $ | 3,267,137 | $ | 10,638 | 1.32 | % | |||||||||
| Demand Deposits | 831,032 | 841,440 | 702,833 | ||||||||||||||||||||||||
| Other Liabilities | 59,791 | 71,785 | 47,020 | ||||||||||||||||||||||||
| Total Liabilities | $ | 4,185,123 | $ | 4,227,060 | $ | 4,016,990 | |||||||||||||||||||||
| Stockholders' Equity | 443,315 | 432,669 | 418,108 | ||||||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 4,628,438 | $ | 4,659,729 | $ | 4,435,098 | |||||||||||||||||||||
| Net Interest Income | $ | 41,816 | $ | 41,704 | $ | 40,519 | |||||||||||||||||||||
| Interest Rate Spread (2) | 3.82 | % | 3.68 | % | 3.83 | % | |||||||||||||||||||||
| Net Interest Margin (3) | 4.02 | % | 3.91 | % | 4.08 | % | |||||||||||||||||||||
| Supplemental Information: | |||||||||||||||||||||||||||
| Total Deposits, including Demand Deposits | $ | 3,517,072 | $ | 3,485 | $ | 3,571,749 | $ | 4,029 | $ | 3,350,828 | $ | 5,939 | |||||||||||||||
| Cost of Total Deposits | 0.40 | % | 0.45 | % | 0.72 | % | |||||||||||||||||||||
| Total Funding Liabilities, including Demand Deposits | $ | 4,125,332 | $ | 7,485 | $ | 4,155,275 | $ | 8,582 | $ | 3,969,970 | $ | 10,638 | |||||||||||||||
| Cost of Total Funding Liabilities | 0.74 | % | 0.82 | % | 1.09 | % | |||||||||||||||||||||
| (1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $343, 315, and $309 for the three months ended March 31, 2011, December 31, 2010, and March 31, 2010, respectively. | |||||||||||||||||||||||||||
| (2) Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. | |||||||||||||||||||||||||||
|
(3) Net interest margin represents annualized net interest income as a percentage of average interest-earning assets. |
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| Certain amounts in prior year financial statement have been reclassified to conform to the current year's presentation. | |||||||||||||||||||||||||||
CONTACT:
Independent Bank Corp.
Chris Oddleifson,
781-982-6660
President and
Chief Executive Officer
or
Denis
K. Sheahan, 781-982-6341
Chief Financial Officer