PARENT COMPANY FINANCIALS ONLY

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Condensed financial information relative to the balance sheets of Independent Bank Corp., as the parent company, at December 31, 2021 and 2020 and the related statements of income and cash flows for the years ended December 31, 2021, 2020, and 2019 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
	2021		2020
	(Dollars in thousands)
Assets
Cash (1)	$	212,119	$	100,604
Investments in subsidiaries (2)	2,952,089		1,761,383
Prepaid income taxes	3,973		1,927
Deferred tax asset	472		642


Total assets	$	3,168,653	$	1,864,556
Liabilities and stockholders’ equity
Dividends payable	$	22,728	$	15,164

Long-term borrowings (less unamortized debt issuance costs of $0 and $40)	14,063		32,773
Junior subordinated debentures (less unamortized debt issuance costs of $35 and $37)	62,853		62,851
Subordinated debentures (less unamortized debt issuance costs of $209 and $304)	49,791		49,696

Derivative instruments (1)	—		569
Other liabilities	769		818
Total liabilities	150,204		161,871
Stockholders’ equity	3,018,449		1,702,685
Total liabilities and stockholders’ equity	$	3,168,653	$	1,864,556

(1)Entire balance eliminates in consolidation.

(2)Majority of balance eliminates in consolidation.

STATEMENTS OF INCOME


	Years Ended December 31
	2021		2020		2019
	(Dollars in thousands)
Income
Dividends received from subsidiaries (1)	$	77,673	$	166,033	$	181,790

Total income	77,673		166,033		181,790
Expenses
Interest expense	4,493		5,432		8,236

Total expenses	4,493		5,432		8,236
Income before income taxes and equity in undistributed income of subsidiaries	73,180		160,601		173,554
Income tax benefit	(1,241)		(1,499)		(2,262)
Income of parent company	74,421		162,100		175,816
Equity (deficit) in undistributed income of subsidiaries	46,571		(40,933)		(10,641)
Net income	$	120,992	$	121,167	$	165,175

(1)Majority of balance eliminates in consolidation.

STATEMENTS OF CASH FLOWS


	Years Ended December 31
	2021		2020		2019
	(Dollars in thousands)
Cash flows from operating activities
Net income	$	120,992	$	121,167	$	165,175
Adjustments to reconcile net income to cash provided by operating activities
Amortization	137		152		157
Deferred income tax expense	12		284		1,021
Change in prepaid income taxes and other assets (1)	(229)		(475)		20,556
Change in other liabilities	(1,873)		(169)		(4,613)
Deficit (equity) in undistributed income of subsidiaries	(46,571)		40,933		10,641
Net cash provided by operating activities	72,468		161,892		192,937
Cash flows provided by (used in) investing activities
Net cash acquired (paid) in business combinations	119,816		—		(148,297)
Net cash provided by (used) in investing activities	119,816		—		(148,297)
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	(18,750)		(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	(1,249)		(1,187)		(1,463)
Net proceeds from exercise of stock options	(57)		197		281
Proceeds from shares issued under the direct stock purchase plan	2,023		2,132		4,951
Payments for shares repurchased under share repurchase program	—		(95,091)		—
Common dividends paid	(62,736)		(60,840)		(53,274)
Net cash provided by (used in) financing activities	(80,769)		(196,976)		26,792
Net increase (decrease) in cash and cash equivalents	111,515		(35,084)		71,432
Cash and cash equivalents at the beginning of the year	100,604		135,688		64,256
Cash and cash equivalents at the end of the year	$	212,119	$	100,604	$	135,688

(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.