REGULATORY CAPITAL REQUIREMENTS

12 Months Ended

Dec. 31, 2015

Banking and Thrift [Abstract]

REGULATORY CAPITAL REQUIREMENTS

REGULATORY MATTERS

Regulatory Capital Requirements

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of Total, Tier 1 Capital and Common Equity Tier 1 Capital (as defined for regulatory purposes) to risk weighted assets (as defined for regulatory purposes) and Tier 1 Capital to average assets (as defined for regulatory purposes). Management believes, as of December 31, 2015 and 2014 that the Company and the Bank met all capital adequacy requirements to which they are subject.

At December 31, 2015 the most recent notification from the Federal Deposit Insurance Corporation indicated that the Bank's capital levels met or exceeded the minimum levels to be considered "well capitalized" for bank regulatory purposes. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, Common equity Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following tables. There are no conditions or events since the notification that management believes have changed the Bank’s category. The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2015 and 2014 are also presented in the table that follows:

	Actual				For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount			Ratio		Amount			Ratio
	December 31, 2015
	(Dollars in thousands)
Independent Bank Corp.
Total capital (to risk weighted assets)	$	747,372	13.36	%	$	447,664	≥	8.0	%	N/A			N/A
Common equity tier 1 capital (to risk weighted assets)	$	584,378	10.44	%	$	251,811	≥	4.5	%	N/A			N/A
Tier 1 capital (to risk weighted assets)	$	655,154	11.71	%	$	335,748	≥	6.0	%	N/A			N/A
Tier 1 capital (to average assets)	$	655,154	9.33	%	$	280,889	≥	4.0	%	N/A			N/A
Rockland Trust Company
Total capital (to risk weighted assets)	$	718,197	12.84	%	$	447,334	≥	8.0	%	$	559,167	≥	10.0	%
Common equity tier 1 capital (to risk weighted assets)	$	660,979	11.82	%	$	251,625	≥	4.5	%	$	363,459	≥	6.5	%
Tier 1 capital (to risk weighted assets)	$	660,979	11.82	%	$	335,500	≥	6.0	%	$	447,334	≥	8.0	%
Tier 1 capital (to average assets)	$	660,979	9.42	%	$	280,653	≥	4.0	%	$	350,816	≥	5.0	%
	December 31, 2014
	(Dollars in thousands)
Independent Bank Corp.
Total capital (to risk weighted assets)	$	666,898	13.15	%	$	405,650	≥	8.0	%	N/A			N/A
Tier 1 capital (to risk weighted assets)	$	551,836	10.88	%	$	202,825	≥	4.0	%	N/A			N/A
Tier 1 capital (to average assets)	$	551,836	8.84	%	$	249,825	≥	4.0	%	N/A			N/A
Rockland Trust Company
Total capital (to risk weighted assets)	$	607,100	11.98	%	$	405,465	≥	8.0	%	$	506,831	≥	10.0	%
Tier 1 capital (to risk weighted assets)	$	527,038	10.40	%	$	202,732	≥	4.0	%	$	304,099	≥	6.0	%
Tier 1 capital (to average assets)	$	527,038	8.44	%	$	249,788	≥	4.0	%	$	312,235	≥	5.0	%

Dividend Restrictions

In the ordinary course of business, the Company is dependent upon dividends from the Bank to provide funds for the payment of dividends to shareholders and to provide for other cash requirements. Banking regulations may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels. Approval is also required if dividends declared exceed the net profits for that year combined with the retained net profits for the preceding two years. Under the foregoing dividend restrictions and while maintaining its "well capitalized" status, dividends paid by the Bank to the Company for the year ended December 31, 2015 and 2014 totaled $38.1 million and $40.1 million, respectively.

Trust Preferred Securities

In accordance with the applicable accounting standard related to variable interest entities, the common stock of trusts which have issued trust preferred securities have not been included in the consolidated financial statements. At December 31, 2015 and 2014, $71.0 million in trust preferred securities have been included in the Tier 1 capital of the Company for regulatory reporting purposes pursuant to the Federal Reserve's capital adequacy guidelines.