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| 8-K - INDEPENDENT BANK CORP. 8-K - INDEPENDENT BANK CORP | a50138010.htm |
Exhibit 99.1
Independent Bank Corp. Reports 13% Annual Net Income Growth
Strong Results Fueled by Loan and Deposit Growth, Steady Asset Quality
ROCKLAND, Mass.--(BUSINESS WIRE)--January 19, 2012--Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced an increase in net income for the full year to $45.4 million, an improvement of 12.9% compared to the prior year. Diluted earnings per share for 2011 were $2.12, an increase of 11.6% as compared to the year ago period. Net income for the fourth quarter of 2011 was $11.2 million, or $0.52 on a diluted earnings per share basis. The results of the fourth quarter 2011 represent a decrease of $0.04, or 7.1%, on a diluted per share basis as compared to the linked quarter results. These results include a $757,000 prepayment penalty during the fourth quarter that resulted in a $0.02 per share charge arising from the Company’s use of excess cash to pay down borrowings.
Christopher Oddleifson, President and Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company, stated: “2011 was a strong year in terms of earnings, loan and deposit growth, and new customer acquisition. Rockland Trust continues to demonstrate that our focus on customer intimacy, combined with a disciplined credit culture, is a strategy that produces solid results. Consumers and businesses choose Rockland Trust for the personal service and innovative products our employees consistently provide.”
BALANCE SHEET
Total assets of $5.0 billion at December 31, 2011 are up $70.5 million from the prior quarter and $274.5 million as compared to the year ago period.
Total loans rose to $3.8 billion at December 31, 2011, an increase of 7.6% from the prior quarter, on an annualized basis, and continue to be led by strong volumes in the commercial and home equity portfolios. For the full year, loans increased $238.7 million, or 6.7%. The Company has consistently generated steady loan growth, as companies continue to realize that Rockland Trust’s high service and flexible solutions are an attractive alternative to national banks.
Deposits increased by 9.4%, on an annualized basis, to $3.9 billion at December 31, 2011, as compared to the prior quarter. For the full year, deposits increased $249.0 million, or 6.9%. Core deposits increased by $90.6 million to $3.2 billion during the linked quarter and grew to 83.5% of total deposits. The Company’s cost of deposits continued its steady decline to 0.31%, down 6 basis points for the quarter, reflecting its emphasis on low cost deposits and deeper banking relationships. The Company continues to experience robust organic household growth as evidenced by the core deposit growth of 10.3% for the year ended December 31, 2011.
The securities portfolio of $518.5 million decreased by $3.1 million during the quarter and decreased by 11.8% for the year as the Bank deployed cash flows from securities to support lending activities.
Stockholders’ equity at December 31, 2011 increased by 1.7% to $469.1 million when compared to September 30, 2011. The Tier 1 leverage capital ratio at December 31, 2011 remained strong at 8.59%, maintaining the Company’s well-capitalized position.
NET INTEREST INCOME
Net interest income of $41.9 million was up slightly as compared to the prior quarter, driven by higher loan levels. The net interest margin in the fourth quarter of 2011 declined to 3.78%, as compared to 3.84% in the linked quarter, due to the decreasing yield on earning assets resulting from the sustained low interest rate environment. Additionally, the Company’s overnight cash position was significantly higher on average during the fourth quarter, as compared to the linked quarter, further compressing the margin.
NON-INTEREST INCOME
The Company recorded non-interest income of $14.3 million during the fourth quarter of 2011 which represents a $2.0 million, or 16.2%, increase from the prior quarter. Significant changes in non-interest income included the following:
- Mortgage banking income increased by $653,000, or 72.0%, reflective of continued rising volumes of mortgage originations and refinancing activity, due to the lower rate environment.
- Other non-interest income increased by $1.5 million, due to the change in the fair value of the Company’s trading assets, which increased by $790,000 from the prior quarter, as well as increased income on loan level interest rate derivatives of $557,000.
- Investment management revenue decreased by $269,000, or 7.7%, due primarily to decreased mutual fund commissions. Assets under management in the investment management division were $1.7 billion at December 31, 2011, an increase of $89.5 million compared to the linked quarter.
NON-INTEREST EXPENSE
The Company recorded non-interest expense of $37.0 million in the fourth quarter of 2011, an increase of $1.5 million, or 4.3%, when compared to the quarter ended September 30, 2011. Significant changes in non-interest expense included the following:
- As mentioned previously, during the fourth quarter of 2011, the Company prepaid $28.0 million of borrowings, resulting in a prepayment penalty of $757,000, pre-tax.
- Other non-interest expense increased by $828,000, or 9.3%, which is primarily attributable to increases in the following; consultant fees of $260,000 primarily related to loan workouts, appraisal fees of $149,000, and contract labor of $145,000 related to increased residential mortgage originations and loan workouts.
The Company generated a return on average assets and a return on average common equity in the fourth quarter of 2011 of 0.91% and 9.45%, respectively, as compared to 0.99% and 10.28% for the quarter ended September 30, 2011.
The Company’s effective tax rate was 27.4% for the year ended December 31, 2011, an increase from 23.3% for the prior year period. The increase is due to a decrease in tax credits recognized under the New Markets Tax Credit program as well as a proportional increase in non tax-exempt income in 2011.
ASSET QUALITY
The Company continued to maintain a solid credit profile during the quarter. The provision for loan losses was $3.8 million and $2.0 million for the quarters ended December 31, 2011 and September 30, 2011, respectively, exceeding net charge-offs in both periods. For the full year, the provision for loan losses decreased by $7.2 million due to continued strong credit performance and a stabilizing economic environment. For the full year, net charge-offs declined to 0.26% of average loans from 0.43% in the prior year. For the quarter, net charge-offs increased to $2.8 million, or 0.30%, on an annualized basis of average loans compared to $1.4 million, or 0.15%, for the quarter ended September 30, 2011. Nonperforming loans increased to $29.0 million, or 0.76% of total loans at December 31, 2011, from $26.6 million, or 0.72% of total loans, at September 30, 2011. Total nonperforming assets of $37.1 million were essentially flat in the fourth quarter due to the decline in other real estate owned balances. Delinquency as a percentage of loans increased to 1.01% at December 31, 2011 compared to 0.89% at September 30, 2011.
The allowance for loan losses was $48.3 million at December 31, 2011, compared with the prior quarter level of $47.3 million. The Company’s allowance for loan losses was 1.27% as a percentage of total loans at both December 31, 2011, and September 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 fourth quarter earnings at 10:00 a.m. Eastern Time on Friday, January 20, 2012. 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: 10008317. The webcast replay will be available until January 20, 2013.
Independent Bank Corp., which has Rockland Trust Company as a wholly-owned bank subsidiary, has approximately $5.0 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 | December 31, | September 30, | December 31, | Dec. 2011 vs. | Dec. 2011 vs. | |||||||||||||||||||
| 2011 | 2011 | 2010 | Sept. 2011 | Dec. 2010 | ||||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Cash and Due From Banks | $ | 58,301 | $ | 53,821 | $ | 42,112 | 8.32 | % | 38.44 | % | ||||||||||||||
| Interest Earning Deposits with Banks | 179,203 | 180,352 | 119,170 | -0.64 | % | 50.38 | % | |||||||||||||||||
| Fed Funds Sold | - | 667 | - | -100.00 | % | n/a | ||||||||||||||||||
| Securities | ||||||||||||||||||||||||
| Trading Assets | 8,240 | 7,984 | 7,597 | 3.21 | % | 8.46 | % | |||||||||||||||||
| Securities Available for Sale | 305,332 | 293,073 | 377,457 | 4.18 | % | -19.11 | % | |||||||||||||||||
| Securities Held to Maturity | 204,956 | 220,552 | 202,732 | -7.07 | % | 1.10 | % | |||||||||||||||||
| Total Securities | 518,528 | 521,609 | 587,786 | -0.59 | % | -11.78 | % | |||||||||||||||||
| Loans Held for Sale | 20,500 | 22,156 | 27,917 | -7.47 | % | -26.57 | % | |||||||||||||||||
| Loans | ||||||||||||||||||||||||
| Commercial and Industrial | 575,716 | 567,552 | 502,952 | 1.44 | % | 14.47 | % | |||||||||||||||||
| Commercial Real Estate | 1,847,654 | 1,815,063 | 1,717,118 | 1.80 | % | 7.60 | % | |||||||||||||||||
| Commercial Construction | 128,904 | 119,309 | 129,421 | 8.04 | % | -0.40 | % | |||||||||||||||||
| Small Business | 78,509 | 77,230 | 80,026 | 1.66 | % | -1.90 | % | |||||||||||||||||
| Total Commercial | 2,630,783 | 2,579,154 | 2,429,517 | 2.00 | % | 8.28 | % | |||||||||||||||||
| Residential Real Estate | 416,570 | 441,600 | 473,936 | -5.67 | % | -12.10 | % | |||||||||||||||||
| Residential Construction | 9,631 | 6,306 | 4,175 | 52.73 | % | 130.68 | % | |||||||||||||||||
| Consumer - Home Equity | 696,063 | 648,475 | 579,278 | 7.34 | % | 20.16 | % | |||||||||||||||||
| Total Consumer Real Estate | 1,122,264 | 1,096,381 | 1,057,389 | 2.36 | % | 6.14 | % | |||||||||||||||||
| Total Other Consumer | 41,343 | 47,590 | 68,773 | -13.13 | % | -39.88 | % | |||||||||||||||||
| Total Loans | 3,794,390 | 3,723,125 | 3,555,679 | 1.91 | % | 6.71 | % | |||||||||||||||||
| Less - Allowance for Loan Losses | (48,260 | ) | (47,278 | ) | (46,255 | ) | 2.08 | % | 4.33 | % | ||||||||||||||
| Net Loans | 3,746,130 | 3,675,847 | 3,509,424 | 1.91 | % | 6.74 | % | |||||||||||||||||
| Federal Home Loan Bank Stock | 35,854 | 35,854 | 35,854 | 0.00 | % | 0.00 | % | |||||||||||||||||
| Bank Premises and Equipment | 48,252 | 47,646 | 45,712 | 1.27 | % | 5.56 | % | |||||||||||||||||
| Goodwill and Core Deposit Intangible | 140,722 | 141,103 | 141,956 | -0.27 | % | -0.87 | % | |||||||||||||||||
| Other Assets | 222,750 | 220,711 | 185,807 | 0.92 | % | 19.88 | % | |||||||||||||||||
| Total Assets | $ | 4,970,240 | $ | 4,899,766 | $ | 4,695,738 | 1.44 | % | 5.85 | % | ||||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||
| Demand Deposits | $ | 992,418 | $ | 977,323 | $ | 842,067 | 1.54 | % | 17.85 | % | ||||||||||||||
| Savings and Interest Checking Accounts | 1,473,812 | 1,424,060 | 1,375,254 | 3.49 | % | 7.17 | % | |||||||||||||||||
| Money Market | 780,437 | 744,682 | 717,286 | 4.80 | % | 8.80 | % | |||||||||||||||||
| Time Certificates of Deposit | 630,162 | 641,468 | 693,176 | -1.76 | % | -9.09 | % | |||||||||||||||||
| Total Deposits | 3,876,829 | 3,787,533 | 3,627,783 | 2.36 | % | 6.86 | % | |||||||||||||||||
| Borrowings | ||||||||||||||||||||||||
| Federal Home Loan Bank and Other Borrowings | 229,701 | 260,076 | 305,458 | -11.68 | % | -24.80 | % | |||||||||||||||||
| Federal Funds Purchased and Assets Sold Under Repurchase Agreements | 216,128 | 216,331 | 168,119 | -0.09 | % | 28.56 | % | |||||||||||||||||
| 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 | % | |||||||||||||||||
| Total Borrowings | 537,686 | 568,264 | 565,434 | -5.38 | % | -4.91 | % | |||||||||||||||||
| Total Deposits and Borrowings | 4,414,515 | 4,355,797 | 4,193,217 | 1.35 | % | 5.28 | % | |||||||||||||||||
| Other Liabilities | 86,668 | 82,903 | 66,049 | 4.54 | % | 31.22 | % | |||||||||||||||||
| Stockholders' Equity | ||||||||||||||||||||||||
| Common Stock | 213 | 212 | 210 | 0.47 | % | 1.43 | % | |||||||||||||||||
| Additional Paid in Capital | 233,878 | 232,845 | 226,708 | 0.44 | % | 3.16 | % | |||||||||||||||||
| Retained Earnings | 239,452 | 232,369 | 210,320 | 3.05 | % | 13.85 | % | |||||||||||||||||
| Accumulated Other Comprehensive Income/(Loss), Net of Tax | (4,486 | ) | (4,360 | ) | (766 | ) | 2.89 | % | 485.64 | % | ||||||||||||||
| Total Stockholders' Equity | 469,057 | 461,066 | 436,472 | 1.73 | % | 7.47 | % | |||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 4,970,240 | $ | 4,899,766 | $ | 4,695,738 | 1.44 | % | 5.85 | % | ||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | |||||||||||||||||||||||
| % Change | % Change | |||||||||||||||||||||||
| December 31, | September 30, | December 31, | Dec. 2011 vs. | Dec. 2011 vs. | ||||||||||||||||||||
| 2011 | 2011 | 2010 | Sept. 2011 | Dec. 2010 | ||||||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||||||
| Interest on Fed Funds Sold and Short Term Investments | $ | 81 | $ | 49 | $ | 71 | 65.31 | % | 14.08 | % | ||||||||||||||
| Interest and Dividends on Securities | 4,592 | 5,007 | 5,827 | -8.29 | % | -21.19 | % | |||||||||||||||||
| Interest on Loans | 43,533 | 43,763 | 43,797 | -0.53 | % | -0.60 | % | |||||||||||||||||
| Interest on Loans Held for Sale | 176 | 116 | 276 | 51.72 | % | -36.23 | % | |||||||||||||||||
| Total Interest Income | 48,382 | 48,935 | 49,971 | -1.13 | % | -3.18 | % | |||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||
| Interest on Deposits | 2,907 | 3,419 | 4,029 | -14.98 | % | -27.85 | % | |||||||||||||||||
| Interest on Borrowed Funds | 3,621 | 3,842 | 4,553 | -5.75 | % | -20.47 | % | |||||||||||||||||
| Total Interest Expense | 6,528 | 7,261 | 8,582 | -10.10 | % | -23.93 | % | |||||||||||||||||
| Net Interest Income | 41,854 | 41,674 | 41,389 | 0.43 | % | 1.12 | % | |||||||||||||||||
| Less - Provision for Loan Losses | 3,800 | 2,000 | 3,575 | 90.00 | % | 6.29 | % | |||||||||||||||||
| Net Interest Income after Provision for Loan Losses | 38,054 | 39,674 | 37,814 | -4.08 | % | 0.63 | % | |||||||||||||||||
| NON-INTEREST INCOME | ||||||||||||||||||||||||
| Service Charges on Deposit Accounts | 4,254 | 4,223 | 4,057 | 0.73 | % | 4.86 | % | |||||||||||||||||
| Interchange and ATM Fees | 2,052 | 2,005 | 1,473 | 2.34 | % | 39.31 | % | |||||||||||||||||
| Investment Management | 3,222 | 3,491 | 2,955 | -7.71 | % | 9.04 | % | |||||||||||||||||
| Mortgage Banking Income | 1,560 | 907 | 1,950 | 72.00 | % | -20.00 | % | |||||||||||||||||
| BOLI Income | 847 | 757 | 839 | 11.89 | % | 0.95 | % | |||||||||||||||||
| Gross Change on Write-Down of Certain Investments to Fair Value | (48 | ) | (318 | ) | 172 | -84.91 | % | -127.91 | % | |||||||||||||||
| Less: Portion of Other-Than-Temporary Impairment Losses Recognized in OCI | 9 | 290 | (238 | ) | -96.90 | % | -103.78 | % | ||||||||||||||||
| Net Loss on Write-Down of Certain Investments to Fair Value | (39 | ) | (28 | ) | (66 | ) | 39.29 | % | -40.91 | % | ||||||||||||||
| Other Non-Interest Income | 2,419 | 960 | 3,055 | 151.98 | % | -20.82 | % | |||||||||||||||||
| Total Non-Interest Income | 14,315 | 12,315 | 14,263 | 16.24 | % | 0.36 | % | |||||||||||||||||
| NON-INTEREST EXPENSE | ||||||||||||||||||||||||
| Salaries and Employee Benefits | 20,693 | 20,568 | 20,322 | 0.61 | % | 1.83 | % | |||||||||||||||||
| Occupancy and Equipment Expenses | 3,970 | 4,107 | 3,943 | -3.34 | % | 0.68 | % | |||||||||||||||||
| Data Processing and Facilities Management | 1,063 | 1,152 | 1,578 | -7.73 | % | -32.64 | % | |||||||||||||||||
| FDIC Assessment | 736 | 691 | 1,303 | 6.51 | % | -43.51 | % | |||||||||||||||||
| Prepayment Fee on Borrowings | 757 | - | - | 100.00 | % | |||||||||||||||||||
| Other Non-Interest Expense | 9,733 | 8,905 | 9,542 | 9.30 | % | 2.00 | % | |||||||||||||||||
| Total Non-Interest Expense | 36,952 | 35,423 | 36,688 | 4.32 | % | 0.72 | % | |||||||||||||||||
| INCOME BEFORE INCOME TAXES | 15,417 | 16,566 | 15,389 | -6.94 | % | 0.18 | % | |||||||||||||||||
| PROVISION FOR INCOME TAXES | 4,248 | 4,607 | 3,551 | -7.79 | % | 19.63 | % | |||||||||||||||||
| NET INCOME | $ | 11,169 | $ | 11,959 | $ | 11,838 | -6.61 | % | -5.65 | % | ||||||||||||||
| BASIC EARNINGS PER SHARE | $ | 0.52 | $ | 0.56 | $ | 0.56 | -7.14 | % | -7.14 | % | ||||||||||||||
| DILUTED EARNINGS PER SHARE | $ | 0.52 | $ | 0.56 | $ | 0.56 | -7.14 | % | -7.14 | % | ||||||||||||||
| BASIC AVERAGE SHARES | 21,484,695 | 21,463,714 | 21,208,509 | |||||||||||||||||||||
| DILUTED AVERAGE SHARES | 21,504,053 | 21,476,791 | 21,238,482 | |||||||||||||||||||||
|
PERFORMANCE RATIOS: |
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| Net Interest Margin (FTE) | 3.78 | % | 3.84 | % | 3.91 | % | ||||||||||||||||||
| Return on Average Assets | 0.91 | % | 0.99 | % | 1.01 | % | ||||||||||||||||||
| Return on Average Common Equity | 9.45 | % | 10.28 | % | 10.85 | % | ||||||||||||||||||
|
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION |
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| NET INCOME | $ | 11,169 | $ | 11,959 | $ | 11,838 | -6.61 | % | -5.65 | % | ||||||||||||||
| Non-Interest Expense Components, net of tax | ||||||||||||||||||||||||
| Add - Prepayment Fees on Borrowings | 448 | - | - | |||||||||||||||||||||
| NET OPERATING EARNINGS | $ | 11,617 | $ | 11,959 | $ | 11,838 | -2.86 | % | -1.87 | % | ||||||||||||||
| Diluted Earnings Per Share, on an Operating Basis | $ | 0.54 | $ | 0.56 | $ | 0.56 | -3.57 | % | -3.57 | % | ||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||
| Twelve Months Ended | % Change | ||||||||||||||||
| December 31, | December 31, | Dec. 2011 vs. | |||||||||||||||
| 2011 | 2010 | Dec. 2010 | |||||||||||||||
| INTEREST INCOME | |||||||||||||||||
| Interest on Fed Funds Sold and Short Term Investments | $ | 162 | $ | 337 | -51.93 | % | |||||||||||
| Interest and Dividends on Securities | 20,657 | 24,657 | -16.22 | % | |||||||||||||
| Interest on Loans | 174,450 | 177,064 | -1.48 | % | |||||||||||||
| Interest on Loans Held for Sale | 482 | 666 | -27.63 | % | |||||||||||||
| Total Interest Income | 195,751 | 202,724 | -3.44 | % | |||||||||||||
| INTEREST EXPENSE | |||||||||||||||||
| Interest on Deposits | 13,355 | 20,254 | -34.06 | % | |||||||||||||
| Interest on Borrowed Funds | 15,317 | 18,509 | -17.25 | % | |||||||||||||
| Total Interest Expense | 28,672 | 38,763 | -26.03 | % | |||||||||||||
| Net Interest Income | 167,079 | 163,961 | 1.90 | % | |||||||||||||
| Less - Provision for Loan Losses | 11,482 | 18,655 | -38.45 | % | |||||||||||||
| Net Interest Income after Provision for Loan Losses | 155,597 | 145,306 | 7.08 | % | |||||||||||||
| NON-INTEREST INCOME | |||||||||||||||||
| Service Charges on Deposit Accounts | 16,628 | 13,624 | 22.05 | % | |||||||||||||
| Interchange and ATM Fees | 7,733 | 5,084 | 52.10 | % | |||||||||||||
| Investment Management | 13,532 | 11,723 | 15.43 | % | |||||||||||||
| Mortgage Banking Income | 4,197 | 5,041 | -16.74 | % | |||||||||||||
| BOLI Income | 3,170 | 3,192 | -0.69 | % | |||||||||||||
| Net Gain on Sale of Securities | 723 | 458 | 57.86 | % | |||||||||||||
| Gross Change on Write-Down of Certain Investments to Fair Value | 53 | 497 | -89.34 | % | |||||||||||||
| Less: Portion of Other-Than-Temporary Impairment Losses Recognize in OCI | (296 | ) | (831 | ) | -64.38 | % | |||||||||||
| Net Loss on Write-Down of Certain Investments to Fair Value | (243 | ) | (334 | ) | -27.25 | % | |||||||||||
| Other Non-Interest Income | 6,960 | 8,118 | -14.26 | % | |||||||||||||
| Total Non-Interest Income | 52,700 | 46,906 | 12.35 | % | |||||||||||||
| NON-INTEREST EXPENSE | |||||||||||||||||
| Salaries and Employee Benefits | 81,275 | 76,983 | 5.58 | % | |||||||||||||
| Occupancy and Equipment Expenses | 16,916 | 16,011 | 5.65 | % | |||||||||||||
| Data Processing and Facilities Management | 4,891 | 5,773 | -15.28 | % | |||||||||||||
| FDIC Assessment | 3,496 | 5,247 | -33.37 | % | |||||||||||||
| Prepayment Fee on Borrowings | 757 | - | 100.00 | % | |||||||||||||
| Other Non-Interest Expense | 38,378 | 35,731 | 7.41 | % | |||||||||||||
| Total Non-Interest Expense | 145,713 | 139,745 | 4.27 | % | |||||||||||||
| INCOME BEFORE INCOME TAXES | 62,584 | 52,467 | 19.28 | % | |||||||||||||
| PROVISION FOR INCOME TAXES | 17,148 | 12,227 | 40.25 | % | |||||||||||||
| NET INCOME | $ | 45,436 | $ | 40,240 | 12.91 | % | |||||||||||
| BASIC EARNINGS PER SHARE | $ | 2.12 | $ | 1.90 | 11.58 | % | |||||||||||
| DILUTED EARNINGS PER SHARE | $ | 2.12 | $ | 1.90 | 11.58 | % | |||||||||||
| BASIC AVERAGE SHARES | 21,422,757 | 21,178,117 | |||||||||||||||
| DILUTED AVERAGE SHARES | 21,451,587 | 21,203,915 | |||||||||||||||
| Net Interest Margin (FTE) | 3.90 | % | 3.95 | % | |||||||||||||
| Return on Average Assets | 0.96 | % | 0.88 | % | |||||||||||||
| Return on Average Common Equity | 9.93 | % | 9.46 | % | |||||||||||||
| RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION | |||||||||||||||||
| NET INCOME | $ | 45,436 | $ | 40,240 | 12.91 | % | |||||||||||
| Non-Interest Income Components, net of tax | |||||||||||||||||
| Less - Net Gain on Sale of Securities | (428 | ) | (271 | ) | |||||||||||||
| Non-Interest Expense Components, net of tax | |||||||||||||||||
| Add - Prepayment Fees on Borrowings | 448 | - | |||||||||||||||
| Add - Fair Value Mark on a Terminated Hedging Relationship | - | 328 | |||||||||||||||
| NET OPERATING EARNINGS | $ | 45,456 | $ | 40,297 | 12.80 | % | |||||||||||
| Diluted Earnings Per Share, on an Operating Basis | $ | 2.12 | $ | 1.90 | 11.58 | % | |||||||||||
| RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||||||||||||
| % Change | % Change | % Change | ||||||||||||||||||||||||||||||||||||||||
| December 31, | September 30, | December 31, | Dec. 2011 vs. | Dec. 2011 vs. | December 31, | December 31, | Dec. 2011 vs. | |||||||||||||||||||||||||||||||||||
| 2011 | 2011 | 2010 | Sept. 2011 | Dec. 2010 | 2011 | 2010 | Dec. 2010 | |||||||||||||||||||||||||||||||||||
| Non-Interest Income GAAP | $ | 14,315 | $ | 12,315 | $ | 14,263 | 16.24 | % | 0.36 | % | $ | 52,700 | $ | 46,906 | 12.35 | % | ||||||||||||||||||||||||||
|
Less - Net Gain on Sale of Securities |
- | - | - | n/a | n/a | (723 | ) | (458 | ) | 57.86 | % | |||||||||||||||||||||||||||||||
| Add - Other-Than-Temporary-Impairment on Securities | 39 | 28 | 66 | 39.29 | % | -40.91 | % | 243 | 334 | -27.25 | % | |||||||||||||||||||||||||||||||
| Non-Interest Income as Adjusted | $ | 14,354 | $ | 12,343 | $ | 14,329 | 16.29 | % | 0.17 | % | $ | 52,220 | $ | 46,782 | 11.62 | % | ||||||||||||||||||||||||||
| Non-Interest Expense GAAP | $ | 36,952 | $ | 35,423 | $ | 36,688 | 4.32 | % | 0.72 | % | $ | 145,713 | $ | 139,745 | 4.27 | % | ||||||||||||||||||||||||||
| Less - Fair Value Mark on a Terminated Hedging Relationship | - | - | - | n/a | n/a | - | (554 | ) | -100.00 | % | ||||||||||||||||||||||||||||||||
| Add - Prepayment Fee on Borrowings | 757 | - | - | n/a | n/a | 757 | - | n/a | ||||||||||||||||||||||||||||||||||
| Non-Interest Expense as Adjusted | $ | 37,709 | $ | 35,423 | $ | 36,688 | 6.45 | % | 2.78 | % | $ | 146,470 | $ | 139,191 | 5.23 | % | ||||||||||||||||||||||||||
|
ASSET QUALITY |
Nonperforming Assets | Net Charge-Offs | Net Charge-Offs | |||||||||||||||||||||||||||||||||||||||
| At | 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, | |||||||||||||||||||||||||||||||||||
| 2011 | 2011 | 2010 | 2011 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||||||||||||
| Nonperforming Loans | ||||||||||||||||||||||||||||||||||||||||||
| Commercial & Industrial Loans | $ | 1,883 | $ | 1,836 | $ | 3,123 | $ | 361 | $ | 672 | $ | 1,037 | $ | 2,468 | $ | 4,809 | ||||||||||||||||||||||||||
| Small Business Loans | 542 | 1,032 | 887 | 132 | 368 | 495 | 1,030 | 2,062 | ||||||||||||||||||||||||||||||||||
| Commercial Real Estate Loans | 13,109 | 10,673 | 9,836 | 1,246 | (281 | ) | 594 | 2,803 | 5,163 | |||||||||||||||||||||||||||||||||
| Residential Real Estate Loans | 9,867 | 10,420 | 6,728 | 69 | 88 | 46 | 559 | 498 | ||||||||||||||||||||||||||||||||||
| Installment Loans - Home Equity | 3,130 | 2,009 | 1,756 | 692 | 320 | 378 | 1,574 | 808 | ||||||||||||||||||||||||||||||||||
| Installment Loans - Other | 422 | 655 | 778 | 318 | 192 | 388 | 1,043 | 1,421 | ||||||||||||||||||||||||||||||||||
| Total Nonperforming Loans / Total Net Charge-offs | $ | 28,953 | $ | 26,625 | $ | 23,108 | $ | 2,818 | $ | 1,359 | $ | 2,938 | $ | 9,477 | $ | 14,761 | ||||||||||||||||||||||||||
| Non-Accrual Securities | 1,272 | 1,255 | 1,051 | |||||||||||||||||||||||||||||||||||||||
| Other Assets in Possession | 266 | 270 | 61 | |||||||||||||||||||||||||||||||||||||||
| Other Real Estate Owned | 6,658 | 8,497 | 7,273 | |||||||||||||||||||||||||||||||||||||||
| Nonperforming Assets | $ | 37,149 | $ | 36,647 | $ | 31,493 | ||||||||||||||||||||||||||||||||||||
| Nonperforming Loans/Gross Loans | 0.76 | % | 0.72 | % | 0.65 | % | ||||||||||||||||||||||||||||||||||||
| Allowance for Loan Losses/Nonperforming Loans | 166.68 | % | 177.57 | % | 200.17 | % | ||||||||||||||||||||||||||||||||||||
| Gross Loans/Total Deposits | 97.87 | % | 98.30 | % | 98.01 | % | ||||||||||||||||||||||||||||||||||||
| Allowance for Loan Losses/Total Loans | 1.27 | % | 1.27 | % | 1.30 | % | ||||||||||||||||||||||||||||||||||||
| Net charge-offs to average loans (quarter annualized) | 0.30 | % | 0.15 | % | 0.33 | % | ||||||||||||||||||||||||||||||||||||
|
Net charge-offs to average loans (year-to-date) |
0.26 | % | 0.43 | % | ||||||||||||||||||||||||||||||||||||||
|
Three Months |
Three Months |
|||||||||||||||||||||||||||||||||||||||||
| December 31, | September 30, | |||||||||||||||||||||||||||||||||||||||||
|
Nonperforming Assets Reconciliation |
2011 | 2011 | ||||||||||||||||||||||||||||||||||||||||
| Nonperforming Assets Beginning Balance | $ | 36,647 | $ | 30,963 | ||||||||||||||||||||||||||||||||||||||
| New to Nonperforming | 9,279 | 12,937 | ||||||||||||||||||||||||||||||||||||||||
| Loans Charged-Off | (3,155 | ) | (2,171 | ) | ||||||||||||||||||||||||||||||||||||||
| Loans Paid-Off | (821 | ) | (2,708 | ) | ||||||||||||||||||||||||||||||||||||||
| Loans Transferred to Other Real Estate Owned/Other Assets | (650 | ) | (1,458 | ) | ||||||||||||||||||||||||||||||||||||||
| Loans Restored to Accrual Status | (2,296 | ) | (1,415 | ) | ||||||||||||||||||||||||||||||||||||||
| New to Other Real Estate Owned | 650 | 1,458 | ||||||||||||||||||||||||||||||||||||||||
| Sale of Other Real Estate Owned | (2,508 | ) | (300 | ) | ||||||||||||||||||||||||||||||||||||||
| Other | 3 | (659 | ) | |||||||||||||||||||||||||||||||||||||||
| Nonperforming Assets Ending Balance | $ | 37,149 | $ | 36,647 | ||||||||||||||||||||||||||||||||||||||
| December 31, | September 30, | December 31, | ||||||||||||||||||||||||||||||||||||||||
|
Financial Ratios |
2011 | 2011 | 2010 | |||||||||||||||||||||||||||||||||||||||
| Book Value per Common Share | $ | 21.82 | 21.48 | $ | 20.57 | |||||||||||||||||||||||||||||||||||||
|
Tangible Common Book Value per Share (proforma to include the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP |
$ | 16.21 | $ | 15.85 | $ | 14.86 | ||||||||||||||||||||||||||||||||||||
| Tangible Common Capital/Tangible Assets | 6.80 | % | 6.72 | % | 6.47 | % | ||||||||||||||||||||||||||||||||||||
|
Tangible Common Capital/Tangible Asset (proforma to include the tax deductibility of goodwill and exclude impact of CPP) - Non-GAAP |
7.18 | % | 7.12 | % | 6.89 | % | ||||||||||||||||||||||||||||||||||||
|
Capital Adequacy |
||||||||||||||||||||||||||||||||||||||||||
| Tier one leverage capital ratio (1) | 8.59 | % | 8.59 | % | 8.19 | % | ||||||||||||||||||||||||||||||||||||
| Tier one common ratio (1) | 9.10 | % | 9.02 | % | 8.61 | % | ||||||||||||||||||||||||||||||||||||
| (1) Estimated number for December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||||
|
INDEPENDENT BANK CORP. SUPPLEMENTAL FINANCIAL INFORMATION |
||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA | ||||||||||||||||||||||||||||||||||||||||
| (Unaudited - Dollars in Thousands) | Three Months Ended | |||||||||||||||||||||||||||||||||||||||
| December 31, 2011 | September 30, 2011 | December 31, 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 | $ | 129,956 | $ | 81 | 0.25 | % | $ | 78,285 | $ | 49 | 0.25 | % | $ | 113,325 | $ | 71 | 0.25 | % | ||||||||||||||||||||||
| Securities | ||||||||||||||||||||||||||||||||||||||||
| Trading Assets | 8,152 | 80 | 3.89 | % | 8,437 | 72 | 3.39 | % | 7,469 | 80 | 4.25 | % | ||||||||||||||||||||||||||||
| Taxable Investment Securities | 511,302 | 4,467 | 3.47 | % | 526,509 | 4,856 | 3.66 | % | 588,797 | 5,627 | 3.79 | % | ||||||||||||||||||||||||||||
| Non-taxable Investment Securities (1) | 4,066 | 76 | 7.42 | % | 7,104 | 133 | 7.43 | % | 10,816 | 203 | 7.45 | % | ||||||||||||||||||||||||||||
| Total Securities: | 523,520 | 4,623 | 3.50 | % | 542,050 | 5,061 | 3.70 | % | 607,082 | 5,910 | 3.86 | % | ||||||||||||||||||||||||||||
| Loans Held for Sale | 23,237 | 176 | 3.00 | % | 12,422 | 116 | 3.70 | % | 34,252 | 276 | 3.20 | % | ||||||||||||||||||||||||||||
| Loans | ||||||||||||||||||||||||||||||||||||||||
| Commercial and Industrial | 562,638 | 5,917 | 4.17 | % | 555,745 | 5,840 | 4.17 | % | 486,845 | 5,405 | 4.40 | % | ||||||||||||||||||||||||||||
| Commercial Real Estate | 1,830,429 | 23,294 | 5.05 | % | 1,800,914 | 23,496 | 5.18 | % | 1,667,304 | 23,384 | 5.56 | % | ||||||||||||||||||||||||||||
| Commercial Construction | 122,518 | 1,417 | 4.59 | % | 129,540 | 1,495 | 4.58 | % | 136,831 | 1,540 | 4.47 | % | ||||||||||||||||||||||||||||
| Small Business | 77,477 | 1,136 | 5.82 | % | 77,850 | 1,141 | 5.81 | % | 79,863 | 1,190 | 5.91 | % | ||||||||||||||||||||||||||||
| Total Commercial | 2,593,062 | 31,764 | 4.86 | % | 2,564,049 | 31,972 | 4.95 | % | 2,370,843 | 31,519 | 5.27 | % | ||||||||||||||||||||||||||||
| Residential Real Estate | 426,442 | 4,721 | 4.39 | % | 450,225 | 4,915 | 4.33 | % | 490,439 | 5,810 | 4.70 | % | ||||||||||||||||||||||||||||
| Residential Construction | 7,703 | 88 | 4.53 | % | 6,735 | 73 | 4.30 | % | 4,842 | 59 | 4.83 | % | ||||||||||||||||||||||||||||
| Consumer - Home Equity | 673,509 | 6,370 | 3.75 | % | 638,991 | 6,103 | 3.79 | % | 542,979 | 5,229 | 3.82 | % | ||||||||||||||||||||||||||||
| Total Consumer Real Estate | 1,107,654 | 11,179 | 4.00 | % | 1,095,951 | 11,091 | 4.01 | % | 1,038,260 | 11,098 | 4.24 | % | ||||||||||||||||||||||||||||
| Total Other Consumer | 44,242 | 865 | 7.76 | % | 49,864 | 978 | 7.78 | % | 72,781 | 1,412 | 7.70 | % | ||||||||||||||||||||||||||||
| Total Loans: | 3,744,958 | 43,808 | 4.64 | % | 3,709,864 | 44,041 | 4.71 | % | 3,481,884 | 44,029 | 5.02 | % | ||||||||||||||||||||||||||||
| Total Interest-Earning Assets | $ | 4,421,671 | $ | 48,688 | 4.37 | % | $ | 4,342,621 | $ | 49,267 | 4.50 | % | $ | 4,236,543 | $ | 50,286 | 4.71 | % | ||||||||||||||||||||||
| Cash and Due from Banks | 58,257 | 57,103 | 55,541 | |||||||||||||||||||||||||||||||||||||
| Federal Home Loan Bank Stock | 35,854 | 35,854 | 35,854 | |||||||||||||||||||||||||||||||||||||
| Other Assets | 357,871 | 345,400 | 331,791 | |||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 4,873,653 | $ | 4,780,978 | $ | 4,659,729 | ||||||||||||||||||||||||||||||||||
| Interest-bearing Liabilities: | ||||||||||||||||||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||||||||||||||||
| Savings and Interest Checking Accounts | $ | 1,401,182 | $ | 768 | 0.22 | % | $ | 1,364,307 | $ | 839 | 0.24 | % | $ | 1,271,639 | $ | 876 | 0.27 | % | ||||||||||||||||||||||
| Money Market | 742,344 | 687 | 0.37 | % | 723,736 | 763 | 0.42 | % | 736,700 | 866 | 0.47 | % | ||||||||||||||||||||||||||||
| Time Deposits | 624,458 | 1,453 | 0.92 | % | 659,154 | 1,817 | 1.09 | % | 721,970 | 2,287 | 1.26 | % | ||||||||||||||||||||||||||||
| Total interest-bearing deposits: | $ | 2,767,984 | $ | 2,908 | 0.42 | % | $ | 2,747,197 | $ | 3,419 | 0.49 | % | $ | 2,730,309 | $ | 4,029 | 0.59 | % | ||||||||||||||||||||||
| Borrowings: | ||||||||||||||||||||||||||||||||||||||||
| Federal Home Loan Bank and Other Borrowings | $ | 256,907 | $ | 1,731 | 2.67 | % | $ | 264,066 | $ | 1,814 | 2.73 | % | $ | 309,168 | $ | 2,391 | 3.07 | % | ||||||||||||||||||||||
| Federal Funds Purchased and Assets Sold | ||||||||||||||||||||||||||||||||||||||||
| Under Repurchase Agreement | 213,738 | 417 | 0.77 | % | 201,588 | 559 | 1.10 | % | 182,501 | 693 | 1.51 | % | ||||||||||||||||||||||||||||
| Junior Subordinated Debentures | 61,857 | 925 | 5.93 | % | 61,857 | 922 | 5.91 | % | 61,857 | 922 | 5.91 | % | ||||||||||||||||||||||||||||
| Subordinated Debentures | 30,000 | 547 | 7.23 | % | 30,000 | 547 | 7.23 | % | 30,000 | 547 | 7.23 | % | ||||||||||||||||||||||||||||
| Total Borrowings | 562,502 | 3,620 | 2.55 | % | 557,511 | 3,842 | 2.73 | % | 583,526 | 4,553 | 3.10 | % | ||||||||||||||||||||||||||||
| Total Interest-Bearing Liabilities | $ | 3,330,486 | $ | 6,528 | 0.78 | % | $ | 3,304,708 | $ | 7,261 | 0.87 | % | $ | 3,313,835 | $ | 8,582 | 1.03 | % | ||||||||||||||||||||||
| Demand Deposits | 994,500 | 944,518 | 841,440 | |||||||||||||||||||||||||||||||||||||
| Other Liabilities | 79,842 | 70,380 | 71,785 | |||||||||||||||||||||||||||||||||||||
| Total Liabilities | $ | 4,404,828 | $ | 4,319,606 | $ | 4,227,060 | ||||||||||||||||||||||||||||||||||
| Stockholders' Equity | 468,825 | 461,372 | 432,669 | |||||||||||||||||||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 4,873,653 | $ | 4,780,978 | $ | 4,659,729 | ||||||||||||||||||||||||||||||||||
| Net Interest Income | $ | 42,160 | $ | 42,006 | $ | 41,704 | ||||||||||||||||||||||||||||||||||
| Interest Rate Spread (2) | 3.59 | % | 3.63 | % | 3.68 | % | ||||||||||||||||||||||||||||||||||
| Net Interest Margin (3) | 3.78 | % | 3.84 | % | 3.91 | % | ||||||||||||||||||||||||||||||||||
| Supplemental Information: | ||||||||||||||||||||||||||||||||||||||||
| Total Deposits, including Demand Deposits | $ | 3,762,484 | $ | 2,908 | $ | 3,691,715 | $ | 3,419 | $ | 3,571,749 | $ | 4,029 | ||||||||||||||||||||||||||||
| Cost of Total Deposits | 0.31 | % | 0.37 | % | 0.45 | % | ||||||||||||||||||||||||||||||||||
| Total Funding Liabilities, including Demand Deposits | $ | 4,324,986 | $ | 6,528 | $ | 4,249,226 | $ | 7,261 | $ | 4,155,275 | $ | 8,582 | ||||||||||||||||||||||||||||
| Cost of Total Funding Liabilities | 0.60 | % | 0.68 | % | 0.82 | % | ||||||||||||||||||||||||||||||||||
|
(1) |
The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $306, $332, and $315 for the three months ended December 31, 2011. September 30, 2011, and December 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. |
|
| Twelve Months Ended | |||||||||||||||||||||||||
| December 31, 2011 | December 31, 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 | $ | 65,053 | $ | 162 | 0.25 | % | $ | 132,019 | $ | 337 | 0.26 | % | |||||||||||||
| Securities | |||||||||||||||||||||||||
| Trading Assets | 8,329 | 285 | 3.42 | % | 7,225 | 262 | 3.63 | % | |||||||||||||||||
| Taxable Investment Securities | 540,564 | 20,041 | 3.71 | % | 569,069 | 23,722 | 4.17 | % | |||||||||||||||||
| Non-taxable Investment Securities (1) | 7,471 | 560 | 7.50 | % | 15,877 | 1,138 | 7.17 | % | |||||||||||||||||
| Total Securities: | 556,364 | 20,886 | 3.75 | % | 592,171 | 25,122 | 4.24 | % | |||||||||||||||||
| Loans Held for Sale | 14,646 | 482 | 3.29 | % | 16,266 | 666 | 4.09 | % | |||||||||||||||||
| Loans | |||||||||||||||||||||||||
| Commercial and Industrial | 538,805 | 22,867 | 4.24 | % | 427,004 | 19,457 | 4.56 | % | |||||||||||||||||
| Commercial Real Estate | 1,792,247 | 93,604 | 5.22 | % | 1,646,419 | 94,217 | 5.72 | % | |||||||||||||||||
| Commercial Construction | 126,083 | 5,805 | 4.60 | % | 155,524 | 7,507 | 4.83 | % | |||||||||||||||||
| Small Business | 78,851 | 4,606 | 5.84 | % | 81,091 | 4,829 | 5.96 | % | |||||||||||||||||
| Total Commercial | 2,535,986 | 126,882 | 5.00 | % | 2,310,038 | 126,010 | 5.45 | % | |||||||||||||||||
| Residential Real Estate | 450,501 | 20,203 | 4.48 | % | 525,203 | 25,235 | 4.80 | % | |||||||||||||||||
| Residential Construction | 5,685 | 260 | 4.57 | % | 6,565 | 334 | 5.09 | % | |||||||||||||||||
| Consumer - Home Equity | 635,695 | 24,015 | 3.78 | % | 504,886 | 19,369 | 3.84 | % | |||||||||||||||||
| Total Consumer Real Estate | 1,091,881 | 44,478 | 4.07 | % | 1,036,654 | 44,938 | 4.33 | % | |||||||||||||||||
| Total Other Consumer | 53,551 | 4,171 | 7.79 | % | 88,077 | 6,799 | 7.72 | % | |||||||||||||||||
| Total Loans: | 3,681,418 | 175,531 | 4.77 | % | 3,434,769 | 177,747 | 5.17 | % | |||||||||||||||||
| Total Interest-Earning Assets | $ | 4,317,481 | $ | 197,061 | 4.56 | % | $ | 4,175,225 | $ | 203,872 | 4.88 | % | |||||||||||||
| Cash and Due from Banks | 55,897 | 62,103 | |||||||||||||||||||||||
| Federal Home Loan Bank Stock | 35,854 | 35,854 | |||||||||||||||||||||||
| Other Assets | 336,617 | 316,234 | |||||||||||||||||||||||
| Total Assets | $ | 4,745,849 | $ | 4,589,416 | |||||||||||||||||||||
| Interest-bearing Liabilities: | |||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||
| Savings and Interest Checking Accounts | $ | 1,355,478 | $ | 3,216 | 0.24 | % | $ | 1,183,247 | $ | 4,397 | 0.37 | % | |||||||||||||
| Money Market | 728,380 | 3,050 | 0.42 | % | 739,264 | 4,565 | 0.62 | % | |||||||||||||||||
| Time Deposits | 656,486 | 7,089 | 1.08 | % | 814,462 | 11,292 | 1.39 | % | |||||||||||||||||
| Total interest-bearing deposits: | $ | 2,740,344 | $ | 13,355 | 0.49 | % | $ | 2,736,973 | $ | 20,254 | 0.74 | % | |||||||||||||
| Borrowings: | |||||||||||||||||||||||||
| Federal Home Loan Bank and Other Borrowings | $ | 284,400 | $ | 7,199 | 2.53 | % | $ | 320,953 | $ | 9,589 | 2.99 | % | |||||||||||||
| Federal Funds Purchased and Assets Sold | |||||||||||||||||||||||||
| Under Repurchase Agreement | 193,904 | 2,284 | 1.18 | % | 182,467 | 3,084 | 1.69 | % | |||||||||||||||||
| Junior Subordinated Debentures | 61,857 | 3,663 | 5.92 | % | 61,857 | 3,666 | 5.93 | % | |||||||||||||||||
| Subordinated Debentures | 30,000 | 2,171 | 7.24 | % | 30,000 | 2,170 | 7.23 | % | |||||||||||||||||
| Total Borrowings | 570,161 | 15,317 | 2.69 | % | 595,277 | 18,509 | 3.11 | % | |||||||||||||||||
| Total Interest-Bearing Liabilities | $ | 3,310,505 | $ | 28,672 | 0.87 | % | $ | 3,332,250 | $ | 38,763 | 1.16 | % | |||||||||||||
| Demand Deposits | 910,701 | 773,718 | |||||||||||||||||||||||
| Other Liabilities | 67,221 | 58,199 | |||||||||||||||||||||||
| Total Liabilities | $ | 4,288,427 | $ | 4,164,167 | |||||||||||||||||||||
| Stockholders' Equity | 457,422 | 425,249 | |||||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 4,745,849 | $ | 4,589,416 | |||||||||||||||||||||
| Net Interest Income | $ | 168,389 | $ | 165,109 | |||||||||||||||||||||
| Interest Rate Spread (2) | 3.70 | % | 3.72 | % | |||||||||||||||||||||
| Net Interest Margin (3) | 3.90 | % | 3.95 | % | |||||||||||||||||||||
| Supplemental Information: | |||||||||||||||||||||||||
| Total Deposits, including Demand Deposits | $ | 3,651,045 | $ | 13,355 | $ | 3,510,691 | $ | 20,254 | |||||||||||||||||
| Cost of Total Deposits | 0.37 | % | 0.58 | % | |||||||||||||||||||||
| Total Funding Liabilities, including Demand Deposits | $ | 4,221,206 | $ | 28,672 | $ | 4,105,968 | $ | 38,763 | |||||||||||||||||
| Cost of Total Funding Liabilities | 0.68 | % | 0.94 | % | |||||||||||||||||||||
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(1) |
The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $1,310 and $1,148 for the twelve months ended December 31, 2011, and December 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. |
|
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(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