PARENT COMPANY FINANCIALS ONLY

12 Months Ended

Dec. 31, 2020

Condensed Financial Information Disclosure [Abstract]

PARENT COMPANY FINANCIAL STATEMENTS

PARENT COMPANY FINANCIAL STATEMENTS

Condensed financial information relative to the balance sheets of Independent Bank Corp., as the parent company, at December 31, 2020 and 2019 and the related statements of income and cash flows for the years ended December 31, 2020, 2019, and 2018 are presented below. The statement of stockholders’ equity is not presented below as the parent company’s stockholders’ equity is that of the consolidated Company.

BALANCE SHEETS

	December 31
	2020		2019
	(Dollars in thousands)
Assets
Cash (1)	$	100,604	$	135,688
Investments in subsidiaries (2)	1,761,383		1,743,435
Prepaid income taxes	1,927		31,586
Deferred tax asset	642		612
Derivative instruments (1)	—		290
Total assets	$	1,864,556	$	1,911,611
Liabilities and stockholders’ equity
Dividends payable	$	15,164	$	15,126
Long-term borrowings (less unamortized debt issuance costs of $40 and $94)	32,773		74,906
Junior subordinated debentures (less unamortized debt issuance costs of $37 and $40)	62,851		62,848
Subordinated debentures (less unamortized debt issuance costs of $304 and $399)	49,696		49,601
Derivative instruments (1)	569		—
Other liabilities	818		987
Total liabilities	161,871		203,468
Stockholders’ equity	1,702,685		1,708,143
Total liabilities and stockholders’ equity	$	1,864,556	$	1,911,611

(1)Entire balance eliminates in consolidation.

(2)Majority of balance eliminates in consolidation.

STATEMENTS OF INCOME

	Years Ended December 31
	2020		2019		2018
	(Dollars in thousands)
Income
Dividends received from subsidiaries (1)	$	166,033	$	181,790	$	71,255
Total income	166,033		181,790		71,255
Expenses
Interest expense	5,432		8,236		4,234
Total expenses	5,432		8,236		4,234
Income before income taxes and equity in undistributed income of subsidiaries	160,601		173,554		67,021
Income tax benefit	(1,499)		(2,262)		(1,151)
Income of parent company	162,100		175,816		68,172
Equity (deficit) in undistributed income of subsidiaries	(40,933)		(10,641)		53,450
Net income	$	121,167	$	165,175	$	121,622

(1)Majority of balance eliminates in consolidation.

STATEMENTS OF CASH FLOWS

	Years Ended December 31
	2020		2019		2018
	(Dollars in thousands)
Cash flows from operating activities
Net income	$	121,167	$	165,175	$	121,622
Adjustments to reconcile net income to cash provided by operating activities
Amortization	152		157		54
Deferred income tax expense	284		1,021		49
Change in prepaid income taxes and other assets (1)	(475)		20,556		135
Change in other liabilities	(169)		(4,613)		6
Deficit (equity) in undistributed income of subsidiaries	40,933		10,641		(53,450)
Net cash provided by operating activities	161,892		192,937		68,416
Cash flows used in investing activities
Cash paid for acquisitions, net of cash acquired (2)	—		(148,297)		(13,649)
Net cash used in investing activities	—		(148,297)		(13,649)
Cash flows provided by (used in) financing activities
Proceeds from line of credit, net of issuance costs	—		49,980		—
Repayment of line of credit, net of issuance costs	—		(49,980)		—
Proceeds from (repayments of) long-term debt, net of issuance costs	(42,187)		74,867		—
Repayments of junior subordinated debentures, net of issuance costs	—		(13,329)		—
Proceeds from issuance of subordinated debentures, net of issuance costs	—		49,526		—
Repayments of subordinated debentures, net of issuance costs	—		(34,767)		—
Restricted stock awards issued, net of awards surrendered	(1,187)		(1,463)		(1,371)
Net proceeds from exercise of stock options	197		281		184
Proceeds from shares issued under the direct stock purchase plan	2,132		4,951		2,712
Payments for shares repurchased under share repurchase program	(95,091)		—		—
Common dividends paid	(60,840)		(53,274)		(40,167)
Net cash provided by (used in) financing activities	(196,976)		26,792		(38,642)
Net increase (decrease) in cash and cash equivalents	(35,084)		71,432		16,125
Cash and cash equivalents at the beginning of the year	135,688		64,256		48,131
Cash and cash equivalents at the end of the year	$	100,604	$	135,688	$	64,256

(1)Reflected in this line for the year ended December 31, 2020 is a noncash adjustment which decreased prepaid income taxes and increased investment in subsidiary by $30.1 million, which represents a reallocation of a tax asset from the parent to the bank subsidiary.

(2)The majority of the net assets acquired at the parent company level represent each of the acquired companies' investments in their wholly owned subsidiaries, which were eliminated in consolidation