EX-99.1 2 a50235886ex99_1.htm EXHIBIT 99.1

Exhibit 99.1

Independent Bank Corp. Reports First Quarter Net Income of $12.2 Million

Strong Fundamentals Drive 8% Increase in Earnings Per Share

ROCKLAND, Mass.--(BUSINESS WIRE)--April 12, 2012--Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced net income of $12.2 million for the first quarter of 2012, or $0.56 on a diluted earnings per share basis. The results of the first quarter 2012 represent an increase of $0.04, or 7.7%, on a diluted earnings per share basis as compared to the fourth quarter of 2011. The Company’s organic customer growth continues to be strong, fueling deposit, loan and fee income growth.

Christopher Oddleifson, President and Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company, stated: “Starting the year with a terrific quarter provides momentum for the rest of 2012. While the current interest rate environment remains challenging, we’re running on all cylinders right now to counter its impact - with customer growth driving strong business volumes and profitability.”

BALANCE SHEET

Total assets of $5.0 billion at March 31, 2012 are up $15.5 million from the prior quarter and $340.0 million, or 7.3%, as compared to the year ago period.

Total loans rose to $3.9 billion at March 31, 2012, an increase of 8.0% from the prior quarter, on an annualized basis, and continue to be led by robust volumes in the commercial loan and first position home equity loan portfolios. The Company has consistently generated steady loan growth, as customers continue to realize that Rockland Trust’s high level of service, industry expertise, and flexible lending solutions are an attractive alternative to national banks.

Deposits increased by 7.1%, on an annualized basis, to $3.9 billion at March 31, 2012, as compared to the prior quarter. Core deposits increased by $74.1 million to $3.3 billion during the quarter and grew to 83.9% of total deposits. The Company’s cost of total deposits continued its steady decline to 0.29%, down 2 basis points from the prior quarter, reflecting management’s emphasis on core deposits, as new core relationships replace single service certificates of deposits.

The securities portfolio of $563.0 million increased by $44.5 million during the quarter as a result of purchases made to increase securities available for collateral purposes.

Stockholders’ equity at March 31, 2012 increased by 2.1% to $478.9 million as compared to December 31, 2011. The Tier 1 leverage capital ratio at March 31, 2012 remained strong at 8.77%, maintaining the Company’s well-capitalized position.


NET INTEREST INCOME

Net interest income of $41.9 million remained consistent when compared to the prior quarter. The net interest margin in the first quarter of 2012 increased to 3.82%, as compared to 3.78% in the linked quarter, as excess liquidity was largely deployed into higher yielding loans and securities. The margin also benefited from the prepayment of higher cost wholesale borrowings in the prior quarter.

NONINTEREST INCOME

The Company recorded noninterest income of $13.9 million during the first quarter of 2012 which represents a $406,000, or 2.8%, decrease from the prior quarter. Significant changes in noninterest income included the following:

  • Service charges on deposit accounts decreased by $365,000, or 8.6%, due to lower overdraft fees.
  • Interchange and ATM fees increased by $316,000, or 15.4%, due to strong debit card income growth related to successful sales and marketing programs.
  • Investment management revenue increased by $341,000, or 10.6%. Assets under administration in the investment management division were $2.0 billion at March 31, 2012, an increase of $328.3 million, or 19.9% as compared to the linked quarter.
  • Mortgage banking income decreased by $230,000, or 14.7%, due to lower volumes of mortgage originations.
  • Other noninterest income decreased by $373,000. This was largely due to reduced loan level interest rate swap activity in the quarter, resulting in a revenue decline of $524,000 partially offset by a gain on the purchase of Massachusetts historical tax credit certificates of $176,000.

NONINTEREST EXPENSE

The Company recorded noninterest expense of $37.4 million during the first quarter of 2012 which represents a $406,000, or 1.1% increase from the prior quarter. Significant changes in noninterest expense included the following:

  • Salaries and employee benefits increased by $743,000, or 3.6%, due to increases in payroll taxes and stock compensation, partially offset by a decrease in incentive program accruals.
  • Occupancy and equipment expense increased by $330,000, or 8.3%, due primarily to increases in winter-related costs of $115,000 and added equipment depreciation expense of $79,000, due to the installation of new image-enabled ATMs.
  • Noninterest expense in the prior quarter was impacted by the prepayment of $28.0 million of borrowings, resulting in a prepayment penalty of $757,000, pre-tax. There were no prepayment penalties on borrowings in the first quarter of 2012.

The Company generated a return on average assets and a return on average common equity in the first quarter of 2012 of 1.00% and 10.31% respectively, as compared to 0.91% and 9.45% for the quarter ended December 31, 2011.

ASSET QUALITY

The Company continued to maintain a solid credit profile during the quarter. The provision for loan losses was $1.6 million for the first quarter compared to $3.8 million for the quarter ended December 31, 2011. The provision for loan loss exceeded net charge-offs in both periods. For the quarter, net charge-offs decreased to $1.5 million, or 0.16%, on an annualized basis of average loans compared to $2.8 million, or 0.30%, for the quarter ended December 31, 2011. Nonperforming loans increased to $31.6 million, or 0.82% of total loans at March 31, 2012, from $29.0 million, or 0.76% of total loans, at December 31, 2011. Nonperforming assets totaled $40.7 million at the end of the first quarter compared to $37.1 million in the linked quarter. Delinquency as a percentage of loans decreased to 0.92% at March 31, 2012 compared to 1.01% at December 31, 2011.

The allowance for loan losses was $48.3 million at March 31, 2012, slightly above the prior quarter levels. The Company’s allowance for loan losses was 1.25% and 1.27% as a percentage of total loans at March 31, 2012 and December 31, 2011, respectively.

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 13, 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: 10012384. The webcast replay will be available until April 13, 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

                         
     
 
                                   
% Change % Change

CONSOLIDATED BALANCE SHEETS

        March 31,
2012
       

December 31,
2011

      March 31,
2011
     

Mar. 2012 vs.
Dec. 2011

      Mar. 2012 vs.
Mar. 2011
 
Assets
Cash and Due From Banks $ 57,658 $ 58,301 $ 49,242 -1.10 % 17.09 %
Interest Earning Deposits with Banks 75,865 179,203 17,042 -57.67 % 345.16 %
Fed Funds Sold 2,269 - 417 100.00 % 444.12 %
Securities
Trading Assets - 8,240 8,521 -100.00 % -100.00 %
Securities Available for Sale 362,109 305,332 341,362 18.60 % 6.08 %
Securities Held to Maturity   200,921     204,956     239,305   -1.97 % -16.04 %
Total Securities 563,030 518,528 589,188 8.58 % -4.44 %
 
Loans Held for Sale 22,846 20,500 8,643 11.44 % 164.33 %
Loans
Commercial and Industrial 599,603 575,716 508,839 4.15 % 17.84 %
Commercial Real Estate 1,853,711 1,847,654 1,770,324 0.33 % 4.71 %
Commercial Construction 148,034 128,904 123,428 14.84 % 19.94 %
Small Business   79,937     78,509     80,817   1.82 % -1.09 %
Total Commercial 2,681,285 2,630,783 2,483,408 1.92 % 7.97 %
Residential Real Estate 402,910 416,570 462,110 -3.28 % -12.81 %
Residential Construction 13,291 9,631 3,256 38.00 % 308.20 %
Consumer - Home Equity - 1st Position 425,245 381,766 305,715 11.39 % 39.10 %
Consumer - Home Equity - 2nd Position   310,578     314,297     314,012   -1.18 % -1.09 %
Total Consumer Real Estate 1,152,024 1,122,264 1,085,093 2.65 % 6.17 %
Total Other Consumer   36,447     41,343     59,873   -11.84 % -39.13 %
Total Loans   3,869,756     3,794,390     3,628,374   1.99 % 6.65 %
Less - Allowance for Loan Losses   (48,340 )   (48,260 )   (46,444 ) 0.17 % 4.08 %
Net Loans 3,821,416 3,746,130 3,581,930 2.01 % 6.69 %
Federal Home Loan Bank Stock 33,564 35,854 35,854 -6.39 % -6.39 %
Bank Premises and Equipment 49,678 48,252 46,481 2.96 % 6.88 %
Goodwill and Core Deposit Intangible 140,323 140,722 141,951 -0.28 % -1.15 %
Other Assets   219,090     222,750     175,035   -1.64 % 25.17 %
Total Assets $ 4,985,739   $ 4,970,240   $ 4,645,783   0.31 % 7.32 %
 
Liabilities and Stockholders' Equity
Deposits
Demand Deposits $ 1,015,231 $ 992,418 $ 837,705 2.30 % 21.19 %
Savings and Interest Checking Accounts 1,501,826 1,473,812 1,348,242 1.90 % 11.39 %
Money Market 803,744 780,437 724,203 2.99 % 10.98 %
Time Certificates of Deposit   624,912     630,162     674,776   -0.83 % -7.39 %
Total Deposits 3,945,713 3,876,829 3,584,926 1.78 % 10.06 %
Borrowings
Federal Home Loan Bank and Other Borrowings 194,580 229,701 280,123 -15.29 % -30.54 %
Wholesale Repurchase Agreements 50,000 50,000 50,000 0.00 % 0.00 %
Customer Repurchase Agreements 147,678 166,128 134,738 -11.11 % 9.60 %
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 484,115 537,686 556,718 -9.96 % -13.04 %
Total Deposits and Borrowings 4,429,828 4,414,515 4,141,644 0.35 % 6.96 %
Other Liabilities 77,048 86,668 56,154 -11.10 % 37.21 %
Stockholders' Equity
Common Stock 213 213 212 0.00 % 0.47 %
Additional Paid in Capital 235,381 233,878 230,581 0.64 % 2.08 %
Retained Earnings 247,097 239,452 217,443 3.19 % 13.64 %
Accumulated Other Comprehensive Loss, Net of Tax   (3,828 )   (4,486 )   (251 ) -14.67 % 1425.10 %
Total Stockholders' Equity   478,863     469,057     447,985   2.09 % 6.89 %
Total Liabilities and Stockholders' Equity $ 4,985,739   $ 4,970,240   $ 4,645,783   0.31 % 7.32 %

                             
 
CONSOLIDATED STATEMENTS OF INCOME Three Months Ended
% Change % Change
March 31,
2012
December 31,
2011
March 31,
2011

Mar. 2012 vs.
Dec. 2011

Mar. 2012 vs.
Mar. 2011
 
INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments $ 33 $ 81 $ 17 -59.26 % 94.12 %
Interest and Dividends on Securities 4,556 4,592 5,606 -0.78 % -18.73 %
Interest on Loans 43,077 43,533 43,216 -1.05 % -0.32 %
Interest on Loans Held for Sale   130     176     119   -26.14 % 9.24 %
Total Interest Income 47,796 48,382 48,958 -1.21 % -2.37 %
INTEREST EXPENSE
Interest on Deposits 2,739 2,907 3,485 -5.78 % -21.41 %
Interest on Borrowed Funds   3,204     3,621     4,000   -11.52 % -19.90 %
Total Interest Expense   5,943     6,528     7,485   -8.96 % -20.60 %
Net Interest Income 41,853 41,854 41,473 0.00 % 0.92 %
Less - Provision for Loan Losses   1,600     3,800     2,200   -57.89 % -27.27 %
Net Interest Income after Provision for Loan Losses 40,253 38,054 39,273 5.78 % 2.50 %
NONINTEREST INCOME
Service Charges on Deposit Accounts 3,889 4,254 3,959 -8.58 % -1.77 %
Interchange and ATM Fees 2,368 2,052 1,702 15.40 % 39.13 %
Investment Management 3,563 3,222 3,216 10.58 % 10.79 %
Mortgage Banking Income 1,330 1,560 1,047 -14.74 % 27.03 %
Increase in Cash Surrender Value of Life Insurance Policies 713 847 706 -15.82 % 0.99 %
Gross Change on Write-Down of Certain Investments to Fair Value 274 (48 ) 249 -670.83 % 10.04 %

Less: Portion of Other-Than-Temporary Impairment Losses
   Recognized in OCI

  (274 )   9     (289 ) -3144.44 % -5.19 %
Net Loss on Write-Down of Certain Investments to Fair Value - (39 ) (40 ) -100.00 % -100.00 %
Other Noninterest Income   2,046     2,419     2,008   -15.42 % 1.89 %
Total Noninterest Income 13,909 14,315 12,598 -2.84 % 10.41 %
NONINTEREST EXPENSE
Salaries and Employee Benefits 21,436 20,693 20,252 3.59 % 5.85 %
Occupancy and Equipment Expenses 4,300 3,970 4,575 8.31 % -6.01 %
Data Processing and Facilities Management 1,175 1,063 1,638 10.54 % -28.27 %
FDIC Assessment 749 736 1,291 1.77 % -41.98 %
Prepayment Fee on Borrowings - 757 - -100.00 % n/a
Other Noninterest Expense   9,698     9,733     8,726   -0.36 % 11.14 %
Total Noninterest Expense 37,358 36,952 36,482 1.10 % 2.40 %
INCOME BEFORE INCOME TAXES   16,804     15,417     15,389   9.00 % 9.19 %
PROVISION FOR INCOME TAXES   4,621     4,248     4,201   8.78 % 10.00 %
NET INCOME $ 12,183   $ 11,169   $ 11,188   9.08 % 8.89 %
 
BASIC EARNINGS PER SHARE $ 0.57 $ 0.52 $ 0.53 9.62 % 7.55 %
DILUTED EARNINGS PER SHARE $ 0.56 $ 0.52 $ 0.52 7.69 % 7.69 %
BASIC AVERAGE SHARES 21,561,006 21,484,695 21,298,257
DILUTED AVERAGE SHARES 21,585,487 21,504,053 21,344,339
 

PERFORMANCE RATIOS:

Net Interest Margin (FTE) 3.82 % 3.78 % 4.02 %
Return on Average Assets 1.00 % 0.91 % 0.98 %
Return on Average Common Equity 10.31 % 9.45 % 10.24 %
 

RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION

NET INCOME $ 12,183 $ 11,169 $ 11,188 9.08 % 8.89 %
Noninterest Expense Components, net of tax

Add - Prepayment Fees on Borrowings

- 448 -
         
NET OPERATING EARNINGS $ 12,183   $ 11,617   $ 11,188   4.87 % 8.89 %
 
Diluted Earnings Per Share, on an Operating Basis $ 0.56   $ 0.54   $ 0.52   3.70 % 7.69 %

                                   
 
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
Three Months Ended
% Change % Change
March 31,
2012
December 31,
2011
March 31,
2011
Mar. 2012 vs.
Dec. 2011
Mar. 2012 vs.
Mar. 2011
 
Noninterest Income GAAP $ 13,909 $ 14,315 $ 12,598 -2.84 % 10.41 %
Add - Other-Than-Temporary-Impairment on Securities   -     39     40     -100.00 %   -100.00 %
Noninterest Income as Adjusted $ 13,909   $ 14,354   $ 12,638     -3.10 %   10.06 %
 
Noninterest Expense GAAP $ 37,358 $ 36,952 $ 36,482 1.10 % 2.40 %

Less - Prepayment Fee on Borrowings

  -     (757 )   -     -100.00 %   n/a  
Noninterest Expense as Adjusted $ 37,358   $ 36,195   $ 36,482     3.21 %   2.40 %
 
 
 
 

ASSET QUALITY

Nonperforming Assets
At
Net Charge-Offs
For the Three Months Ending
March 31,
2012
December 31,
2011
March 31,
2011
March 31,
2012
December 31,
2011
March 31,
2011
 
Nonperforming Loans
Commercial & Industrial Loans $ 2,429 $ 1,883 $ 3,011 ($185 ) $ 361 $ 686
Small Business Loans 544 542 617 118 132 238
Commercial Real Estate Loans 15,015 13,109 9,229 604 1,246 602
Residential Real Estate Loans 10,465 9,867 7,299 109 69 122
Installment Loans - Home Equity 2,773 3,130 2,589 737 692 74
Installment Loans - Other   420     422     652     137     318     289  
Total Nonperforming Loans / Total Net Charge-offs $ 31,646   $ 28,953   $ 23,397   $ 1,520   $ 2,818   $ 2,011  

Nonaccrual Securities

1,400 1,272 1,054
Other Assets in Possession 92 266 59
Other Real Estate Owned   7,598     6,658     9,346  
Nonperforming Assets $ 40,736   $ 37,149   $ 33,856  
 
Nonperforming Loans/Gross Loans 0.82 % 0.76 % 0.64 %
Allowance for Loan Losses/Nonperforming Loans 152.75 % 166.68 % 198.50 %
Gross Loans/Total Deposits 98.07 % 97.87 % 101.21 %
Allowance for Loan Losses/Total Loans 1.25 % 1.27 % 1.28 %
 
Net charge-offs to average loans (quarter annualized) 0.16 % 0.30 % 0.23 %
 
 

Nonperforming Assets Reconciliation

Three Months Ending
March 31,
2012

Three Months Ending
December 31,
2011
Three Months Ending
March 31,
2011
Nonperforming Assets Beginning Balance $ 37,149 $ 36,647 $ 31,493
New to Nonperforming 8,803 9,279 9,046
Loans Charged-Off (1,944 ) (3,155 ) (2,484 )
Loans Paid-Off (1,172 ) (821 ) (1,934 )
Loans Transferred to Other Real Estate Owned/Other Assets (1,503 ) (650 ) (3,061 )
Loans Restored to Accrual Status (1,870 ) (2,296 ) (1,116 )
New to Other Real Estate Owned 1,503 650 3,061
Sale of Other Real Estate Owned (1,587 ) (2,508 ) (457 )
Other   1,357     3     (692 )
Nonperforming Assets Ending Balance $ 40,736   $ 37,149   $ 33,856  
 
 
 

Financial Ratios

March 31,
2012

December 31,
2012
March 31,
2011
Book Value per Common Share $ 22.16 21.82 $ 20.93

Tangible Common Book Value per Share (proforma
   to include the tax deductibility of goodwill) - Non-GAAP

$ 16.59 $ 16.21 $ 15.26
Tangible Common Capital/Tangible Assets 6.99 % 6.80 % 6.79 %

Tangible Common Capital/Tangible Asset (proforma
   to include the tax deductibility of goodwill) - Non-GAAP

7.37 % 7.18 % 7.22 %
 

Capital Adequacy

Tier one leverage capital ratio (1) 8.77 % 8.61 % 8.48 %
Tier one common ratio (1) 9.17 % 9.16 % 8.83 %
(1) Estimated number for March 31, 2012

 
 
 

INDEPENDENT BANK CORP. SUPPLEMENTAL FINANCIAL INFORMATION

                                     
(Unaudited - Dollars in Thousands) Three Months Ended
March 31, 2012       December 31, 2011    

 

March 31, 2011

Interest Interest Interest
  Average
Balance
    Earned/
Paid
    Yield/
Rate
      Average
Balance
    Earned/
Paid
    Yield/
Rate
      Average
Balance
    Earned/
Paid
    Yield/
Rate
 
 
Interest-Earning Assets:
Interest Earning Deposits with Banks, Federal Funds Sold, and Short Term Investments $ 53,228 $ 33 0.25 % $ 129,956 $ 81 0.25 % $ 27,652 $ 17 0.25 %

Securities:

Trading Assets 5,490 38 2.78 % 8,152 80 3.89 % 8,124 63 3.15 %
Taxable Investment Securities 530,323 4,489 3.40 % 511,302 4,467 3.47 % 568,933 5,430 3.87 %
Non-taxable Investment Securities (1)   2,493   49 7.91 %   4,066   76 7.42 %   10,175   191 7.61 %

Total Securities

538,306 4,576 3.42 % 523,520 4,623 3.50 % 587,232 5,684 3.93 %
Loans Held for Sale 17,189 130 3.04 % 23,237 176 3.00 % 14,190 119 3.40 %

Loans:

Commercial and Industrial 579,087 5,901 4.10 % 562,638 5,917 4.17 % 500,202 5,401 4.38 %
Commercial Real Estate 1,848,121 22,734 4.95 % 1,830,429 23,294 5.05 % 1,749,292 23,197 5.38 %
Commercial Construction 142,729 1,543 4.35 % 122,518 1,417 4.59 % 123,501 1,410 4.63 %
Small Business   78,706   1,137     5.81 %   77,477   1,136     5.82 %   80,286   1,179 5.96 %
Total Commercial 2,648,643 31,315 4.76 % 2,593,062 31,764 4.86 % 2,453,281 31,187 5.16 %
Residential Real Estate 410,604 4,466 4.37 % 426,442 4,721 4.39 % 468,146 5,399 4.68 %
Residential Construction 11,622 130 4.50 % 7,703 88 4.53 % 3,712 44 4.81 %
Consumer - Home Equity   717,620   6,660     3.73 %   673,509   6,370     3.75 %   601,624   5,622 3.79 %
Total Consumer Real Estate 1,139,846 11,256 3.97 % 1,107,654 11,179 4.00 % 1,073,482 11,065 4.18 %
Total Other Consumer   38,698   771 8.01 %   44,242   865 7.76 %   64,066   1,229 7.78 %

Total Loans

  3,827,187       43,342     4.55 %   3,744,958       43,808     4.64 %   3,590,829       43,481     4.91 %
Total Interest-Earning Assets $ 4,435,910     $ 48,081     4.36 % $ 4,421,671     $ 48,688     4.37 % $ 4,219,903     $ 49,301     4.74 %
Cash and Due from Banks 58,226 58,257 52,023
Federal Home Loan Bank Stock 35,275 35,854 35,854
Other Assets   367,401   357,871   320,658
Total Assets $ 4,896,812 $ 4,873,653 $ 4,628,438
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts $ 1,424,455 $ 697 0.20 % $ 1,401,182 $ 768 0.22 % $ 1,289,201 $ 760 0.24 %
Money Market 769,891 639 0.33 % 742,344 687 0.37 % 723,946 785 0.44 %
Time Deposits   626,478       1,403     0.90 %   624,458       1,453     0.92 %   672,893       1,940     1.17 %
Total interest-bearing deposits: $ 2,820,824 $ 2,739 0.39 % $ 2,767,984 $ 2,908 0.42 % $ 2,686,040 $ 3,485 0.53 %
Borrowings:
Federal Home Loan Bank and Other Borrowings $ 226,365 $ 1,344 2.39 % $ 256,907 $ 1,731 2.67 % $ 338,218 $ 1,910 2.29 %
Wholesale Repurchase Agreements 50,000 289 2.32 % 50,000 292 2.32 % 50,000 519 4.21 %
Customer Repurchase Agreements 158,489 110 0.28 % 163,738 125 0.30 % 128,185 132 0.42 %
Junior Subordinated Debentures 61,857 920 5.98 % 61,857 925 5.93 % 61,857 904 5.93 %
Subordinated Debentures   30,000       541     7.25 %   30,000       547     7.23 %   30,000       535     7.23 %
Total Borrowings   526,711       3,204     2.45 %   562,502       3,620     2.55 %   608,260       4,000     2.67 %
Total Interest-Bearing Liabilities $ 3,347,535     $ 5,943     0.71 % $ 3,330,486     $ 6,528     0.78 % $ 3,294,300     $ 7,485     0.92 %
Demand Deposits 985,455 994,500 831,032
Other Liabilities   88,598   79,842   59,791
Total Liabilities $ 4,421,588 $ 4,404,828 $ 4,185,123
Stockholders' Equity   475,224   468,825   443,315
Total Liabilities and Stockholders' Equity $ 4,896,812 $ 4,873,653 $ 4,628,438
 
Net Interest Income $ 42,138 $ 42,160 $ 41,816
 
Interest Rate Spread (2) 3.65 % 3.59 % 3.82 %
 
Net Interest Margin (3) 3.82 % 3.78 % 4.02 %
 
Supplemental Information:
Total Deposits, including Demand Deposits $ 3,806,279 $ 2,739 $ 3,762,484 $ 2,908 $ 3,517,072 $ 3,485
Cost of Total Deposits 0.29 % 0.31 % 0.40 %
Total Funding Liabilities, including Demand Deposits $ 4,332,990 $ 5,943 $ 4,324,986 $ 6,528 $ 4,125,332 $ 7,485
Cost of Total Funding Liabilities 0.55 % 0.60 % 0.74 %

(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $285, $306, and $343 for the three months ended March 31, 2012, December 31, 2011, and March 31, 2011, 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.

CONTACT:
Independent Bank Corp.
Chris Oddleifson, 781-982-6660
President and Chief Executive Officer
or
Denis K. Sheahan, 781-982-6341
Chief Financial Officer