exv99w1

Exhibit 99.1


Shareholder Relations		NEWS RELEASE

288 Union Street, Rockland, MA 02370		Contact:

Chris Oddleifson
President and
Chief Executive Officer
(781) 982-6660

Denis K. Sheahan
Chief Financial Officer
(781) 982-6341

INDEPENDENT BANK CORP. REPORTS 2005 EARNINGS AND ANNOUNCES STOCK REPURCHASE PROGRAM

Rockland, Massachusetts (January 19, 2006). Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced that net income for the quarter ended December 31, 2005 was $8.6 million, a decrease of (6.7%) from the $9.2 million reported in the fourth quarter of 2004. The decrease in earnings from the comparative quarter is primarily attributable to a $1.8 million gain on the sale of a branch that was recognized in the last quarter of 2004. On a per diluted share basis, net income for the quarter was $0.55, a decrease of $0.04 when compared to $0.59 for the quarter ended December 31, 2004. For the twelve months ended December 31, 2005, net income was $33.2 million, an increase of 7.9% from $30.8 million reported in 2004. On a per diluted share basis, 2005 net income was $2.14, an increase of $0.11 when compared to 2004 net income of $2.03.

Comparing the three months ending December 31, 2005 to the same period in 2004 net interest income increased $529,000, or 2.0%, while net interest income for the twelve months ended December 31, 2005 increased $8.0 million, or 8.2% from the same period in 2004. The net interest margin was 3.92% and 3.88% for the three and twelve months ended December 31, 2005, respectively, as compared to 3.96% and 3.95%¹ for the three and twelve months ended December 31, 2004, respectively.

Non-interest income decreased by $1.2 million, or (15.1%), and by $1.2 million, or (4.3%), during the three and twelve months ended December 31, 2005, respectively, as compared to the same periods in 2004. Excluding the aforementioned branch sale

gain of $1.8 million which was recognized in the quarter ended December 31, 2004, the Company experienced growth in non-interest income of $558,000, or 9.0% comparing the three months ended December 31, 2005 to the same period in 2004. Excluding the $1.8 million branch sale gain and $1.5 million of net security gains recognized during 2004 and $616,000 of net security sales gains recognized during 2005, non-interest income grew by $1.4 million, or 5.5%, for the year ended December 31, 2005 when compared to the prior year. See table below for reconciliation of non-interest income as adjusted.


	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2005		2004		2005		2004
Non-Interest Income GAAP	$	6,751	$	7,949	$	27,150	$	28,355
Less: Net Gain on Sale of Securities		—		—		616		1,458
Less: Gain on Branch Sale		—		1,756		—		1,756

Non-Interest Income as Adjusted	$	6,751	$	6,193	$	26,534	$	25,141

The Company also experienced increases in deposit service charges, investment management, and mortgage banking revenue.


Ø		Service charges on deposit accounts increased by $288,000, or 9.0%, and by $758,000, or 6.1%, for the three and twelve months ended December 31, 2005, respectively, as compared to the same periods in 2004, reflecting growth in core deposits and increased service charges on overdrafts and return check charges implemented in August of 2005.

Ø		Investment management income increased by $140,000, or 12.2%, and $604,000, or 12.9%, for the three and twelve months ended December 31, 2005, respectively, compared to the same periods in 2004 due to growth in managed assets. Assets under administration at December 31, 2005 were $680.1 million an increase of $116.1 million, or 20.6% as compared to December 31, 2004.

Ø		Mortgage banking income increased by $112,000, or 24.2%, and by $392,000, or 14.2%, for the three and twelve months ended December 31, 2005, respectively, as compared to the same periods in 2004 as a result of selling a higher percentage of loan production and changes in market rates favorably impacting servicing asset amortization. The balance of the mortgage servicing asset is $2.9 million and loans serviced amounted to $336.5 million as of December 31, 2005.

Ø		There were no gains on sale of securities in the fourth quarter of 2005 or 2004. For the twelve months ended December 31, 2005 the gain on sales of securities totaled $616,000 a decrease of $842,000, or (57.8%), from the $1.5 million recorded in 2004.

Ø		Other non-interest income increased by $60,000, or 6.9%, and decreased by $290,000, or (8.4%), for the three and twelve months ended December 31, 2005, respectively, as compared to the same periods in 2004. The


		decrease in the twelve month comparison is primarily due to a decrease in commercial loan prepayment fees.

Non-interest expense decreased by $658,000, or (3.2%), and increased by $2.8 million, or 3.6%, for the three and twelve months ended December 31, 2005, respectively, as compared to the same periods in 2004.


Ø		Salaries and employee benefits decreased by $589,000, or (4.6%), and increased by $3.0 million, or 6.7%, for the three and twelve months ended December 31, 2005, respectively, as compared to the same periods in 2004. The decrease from the comparative quarter is largely the result of performance based incentive compensation accrued in the fourth quarter of 2004. The year-over-year increase is the result of annual merit increases for employees, select additions to staff to support strategic initiatives, severance expense due to position eliminations of $333,000 recognized during the quarter ended December 31, 2005, an annual increase in performance based incentive compensation of $399,000 as well as increases in pension costs of $634,000 and medical insurance of $303,000.

Ø		Occupancy and equipment related expense increased by $301,000, or 13.1%, and by $1.2 million, or 13.2% for the three and twelve months ended December 31, 2005, respectively, as compared to the same periods in 2004. The increase in this expense is primarily driven by facilities rent associated with the Falmouth Bancorp, Inc. acquisition which closed in mid 2004, closed branch lease buyout expense and the accelerated write-off of assets associated with these branch closings, two de novo branches, and increased depreciation expense related to a new phone system installed in 2004. Snow removal cost also increased by $165,000 on a year-over-year basis due to the inclement weather experienced in early 2005.

Ø		Data processing and facilities management expense has decreased $17,000 or (1.6%), and $383,000, or (8.6%), for the three and twelve months ended December 31, 2005, respectively, compared to the same periods in 2004, as a result of a new data processing contract finalized in the latter part of 2004.

Ø		Merger and acquisition expense of $684,000 related to the purchase of Falmouth Bancorp was recognized in the twelve months ended December 31, 2004. No merger and acquisition expense was recognized in 2005.

Ø		Other non-interest expenses decreased by $353,000, or (7.5%), and by $321,000, or (1.7%), for the three and twelve months ended December 31, 2005, respectively, as compared to the same periods in the prior year. The decrease in other non-interest expenses for the three month period is primarily attributable to decreases in consultant fees of $359,000, computer software depreciation of $146,000, business development fees of $62,000 and contract labor expense of $58,000. Those decreases


		were offset by a software maintenance increase of $260,000. The decrease in the twelve month period is due to lower consultant fees of $906,000, an advertising expense decrease of $488,000, a telephone expense decrease of $392,000, and a $325,000 decrease in business development fees. These charges were offset by increases in software maintenance fees of $564,000, ATM and debit card services of $316,000 related primarily to conversion charges, and internet banking expense of $215,000.

Total assets increased by $97.8 million, or 3.3%, from December 31, 2004 to $3.0 billion at December 31, 2005. Management is focusing on earning asset growth in the high value segments of commercial lending and variable rate home equity lines of credit, while placing less emphasis on indirect auto and portfolio residential lending and the securities portfolio. While this strategy has slowed balance sheet growth, management believes it is prudent in the current interest rate environment.


Ø		Securities decreased by $101.6 million, or (12.4%), during the twelve months ending December 31, 2005. This resulted mainly from the sale of $62.9 million in longer duration securities for the twelve months ended December 31, 2005, of which $53.3 million was sold in the second quarter of 2005 and $9.6 was sold in the first quarter of 2005, in addition to a decision not to purchase securities in the current rate environment. The ratio of securities to total assets as of December 31, 2005 was 23.6% as compared to 27.8% at December 31, 2004.

Ø		Total loans increased by $124.5 million, or 6.5%, during the twelve months ended December 31, 2005. Commercial loans increased by $82.8 million, or 9.2%. Consumer loans increased $38.1 million, or 7.2%, primarily due to growth in variable home equity lines of credit. The consumer — auto loan portfolio decreased by $20.8 million, or (7.3%), during the twelve months as production in this segment of the loan portfolio was de-emphasized due to narrowing spreads. Business banking loans totaled $51.4 million, representing growth of 17.6% and residential loans decreased $4.1 million, or (0.9%), during the twelve months of 2005. On a linked quarter basis the loan portfolio was essentially flat. Growth came from the commercial lending portfolio with modest growth in the variable rate residential real estate portfolio and in the home equity portfolio.

Total deposits of $2.2 billion at December 31, 2005 increased $145.3 million, or 7.1%, compared to December 31, 2004. The Company experienced growth in core deposits of $65.4 million, or 4.1%. Time deposits increased by $79.9 million, or 17.8%, due to promotional certificate offerings. On a linked quarter basis deposits grew by 1.5%. While core consumer households have grown at an annualized rate of 8% during 2005, aggressive competition in the retail and municipal deposit businesses have offset core consumer household growth. Borrowings decreased by $67.4 million, or (10.3%), during the twelve months ended December 31, 2005.

Stockholders’ equity at December 31, 2005 totaled $228.2 million, as compared to $210.7 million at December 31, 2004. The Tier 1 leverage capital ratio at December 31, 2005 was 7.71%, maintaining the Company’s well-capitalized position.

Nonperforming assets totaled $3.3 million at December 31, 2005 (0.11% of total assets), as compared to $2.7 million (0.09% of total assets) reported at December 31,

2004. The allowance for loan losses increased to $26.6 million at December 31, 2005 compared to $25.2 million at December 31, 2004. The Company’s allowance for loan losses covered nonperforming loans 8.0 times at December 31, 2005 compared to 9.3 times coverage at December 31, 2004. The provision for loan losses increased by $1.2 million, or 38.3%, for fiscal year 2005 as compared to 2004 commensurate with loan growth. The Company maintained an allowance to loan ratio of 1.31% at December 31, 2005. The Company’s net charge-offs increased in the second half of 2005 primarily due to the change in the bankruptcy law. Net charge-offs in the fourth quarter of 2005 and full year 2005 amounted to $886,000 and $2.7 million, respectively, equating to 0.18% and 0.14% of average loans respectively.

Today the Company’s Board of Directors approved a common stock repurchase program. Under the program, which is effective immediately, the Company is authorized to repurchase up to 800,000 shares, or approximately 5% of the Company’s outstanding common stock. The Company placed no deadline on the repurchase program, but expects to make open market or privately negotiated purchases from time to time. The timing and amount of stock repurchases will depend upon market conditions, securities law limitations, and other corporate considerations. The repurchase program may be modified, suspended, or terminated by the Board of Directors at any time.

Chris Oddleifson, President and Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company, stated that; “I am pleased with our 2005 results. Our focus on the creation of long-term shareholder value through the origination of high value earning assets and the execution of our strategic initiatives have resulted in the solid earnings results experienced in 2005 and will contribute to quality earnings growth in future periods.”

Christopher Oddleifson, President and Chief Executive Officer, and Denis K. Sheahan, Chief Financial Officer, of Independent Bank Corp., will host a conference call to discuss fourth quarter earnings at 10:00 a.m. Eastern Time on Friday, January 20, 2006. Internet access to the call is available on the Company’s website at http://www.RocklandTrust.com or by telephonic access by dial-in at 1-877-407-9205 reference: INDB. A replay of the call will be available until 11:59 p.m. on January 25, 2006 by calling 1-877-660-6853 Account Number: 286, Conference ID: 184030. The webcast replay will be available until April 20, 2006.

Independent Bank Corp.’s sole bank subsidiary, Rockland Trust Company, currently has $3.0 billion in assets. Rockland Trust Company is a full-service community bank serving southeastern Massachusetts and Cape Cod. To find out more about the products and services available at Rockland Trust Company, please visit our website at 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”). The Company’s management uses these non-GAAP measures in its analysis of the Company’s performance. These non-GAAP measures may exclude significant gains or losses that are unusual in nature, such as securities gains. These disclosures should not be viewed as substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.

Footnote:

1. A contributing factor for the variance in the net interest margin between the twelve months ended December 31, 2005 and December 31, 2004 was the implementation, during the first quarter of 2004, of FIN 46R: Financial Accounting Standards Board (“FASB”) Interpretation (“FIN”) No. 46 Revised, “Consolidation of Variable Interest Entities — an Interpretation of Accounting Research Bulletin No. 51”. FIN 46R addresses limited purpose trusts formed to issue trust preferred securities. FIN 46R required the Company to deconsolidate its two subsidiary trusts (Independent Capital Trust III and Independent Capital Trust IV) on March 31, 2004. The result of deconsolidating these subsidiary trusts is that trust preferred securities of the trusts, which were classified between liabilities and equity on the balance sheet (mezzanine section), no longer appear on the consolidated balance sheet of the Company. The related minority interest expense also is no longer included in the consolidated statement of income. Due to FIN 46R, the junior subordinated debentures of the parent company that were previously eliminated in consolidation are now included on the consolidated balance sheet within total borrowings. The interest expense on the junior subordinated debentures is included in the calculation of net interest margin of the consolidated company, negatively impacting the net interest margin by approximately 0.16% and 0.13% for the twelve months ending December 31, 2005 and 2004, respectively, on an annualized basis. There is no impact on net income as the amount of interest previously recognized as minority interest is equal to the amount of interest expense that is recognized currently in the net interest margin offset by the dividend income on the subsidiary trusts common stock recognized in other non-interest income.

INDEPENDENT BANK CORP. FINANCIAL SUMMARY
(Unaudited — Dollars in Thousands)



CONSOLIDATED BALANCE SHEETS	December 31,			December 31,			$			%			September 30,			QTD $			%
	2005			2004			Variance			Change			2005			Variance			Change
Assets
Cash and Due From Banks	$	66,289		$	62,961			3,328			5.29	%	$	71,487			(5,198	)		-7.27	%
Fed Funds Sold and Short Term Investments		63,662			2,735			60,927			2227.68	%		1,203			62,459			5191.94	%
Securities
Trading Assets		1,557			1,572			(15	)		-0.95	%		1,556			1			0.06	%
Securities Available for Sale		581,516			680,286			(98,770	)		-14.52	%		604,878			(23,362	)		-3.86	%
Securities Held to Maturity		104,268			107,967			(3,699	)		-3.43	%		104,831			(563	)		-0.54	%
Federal Home Loan Bank Stock		29,287			28,413			874			3.08	%		29,287			0			0.00	%

Total Securities		716,628			818,238			(101,610	)		-12.42	%		740,552			(23,924	)		-3.23	%

Loans
Commercial and Industrial		155,081			156,260			(1,179	)		-0.75	%		163,276			(8,195	)		-5.02	%
Commercial Real Estate		683,240			613,300			69,940			11.40	%		662,383			20,857			3.15	%
Commercial Construction		140,643			126,632			14,011			11.06	%		127,936			12,707			9.93	%
Business Banking		51,373			43,673			7,700			17.63	%		50,080			1,293			2.58	%
Residential Real Estate		428,343			427,556			787			0.18	%		419,713			8,630			2.06	%
Residential Construction		8,316			7,316			1,000			13.67	%		11,392			(3,076	)		-27.00	%
Residential Loans Held for Sale		5,021			10,933			(5,912	)		-54.07	%		7,216			(2,195	)		-30.42	%
Consumer — Home Equity		251,852			194,647			57,205			29.39	%		245,293			6,559			2.67	%
Consumer — Auto		263,179			283,964			(20,785	)		-7.32	%		275,776			(12,597	)		-4.57	%
Consumer — Other		53,760			52,077			1,683			3.23	%		56,055			(2,295	)		-4.09	%

Total Loans		2,040,808			1,916,358			124,450			6.49	%		2,019,120			21,688			1.07	%
Less — Allowance for Loan Losses		(26,639	)		(25,197	)		(1,442	)		5.72	%		(26,455	)		(184	)		0.70	%

Net Loans		2,014,169			1,891,161			123,008			6.50	%		1,992,665			21,504			1.08	%

Bank Premises and Equipment		37,431			36,449			982			2.69	%		36,670			761			2.08	%
Goodwill and Core Deposit Intangible		56,858			57,288			(430	)		-0.75	%		56,939			(81	)		-0.14	%
Other Assets		86,648			75,094			11,554			15.39	%		84,107			2,541			3.02	%

Total Assets	$	3,041,685		$	2,943,926			97,759			3.32	%	$	2,983,623			58,062			1.95	%


Liabilities and Stockholders’ Equity
Deposits
Demand Deposits	$	511,920		$	495,500			16,420			3.31	%	$	529,820			(17,900	)		-3.38	%
Savings and Interest Checking Accounts		613,840			614,481			(641	)		-0.10	%		617,437			(3,597	)		-0.58	%
Money Market		550,677			501,065			49,612			9.90	%		504,038			46,639			9.25	%
Time Certificates of Deposit		529,057			449,189			79,868			17.78	%		521,195			7,862			1.51	%

Total Deposits		2,205,494			2,060,235			145,259			7.05	%		2,172,490			33,004			1.52	%

Federal Home Loan Bank Borrowings		417,477			537,919			(120,442	)		-22.39	%		423,505			(6,028	)		-1.42	%
Fed Funds Purchased and Assets Sold
Under Repurchase Agreements		113,335			61,533			51,802			84.19	%		90,349			22,986			25.44	%
Junior Subordinated Debentures		51,546			51,546			0			0.00	%		51,546			—			0.00	%
Treasury Tax and Loan Notes		5,452			4,163			1,289			30.96	%		1,443			4,009			277.82	%

Total Borrowings		587,810			655,161			(67,351	)		-10.28	%		566,843			20,967			3.70	%

Total Deposits and Borrowings		2,793,304			2,715,396			77,908			2.87	%		2,739,333			53,971			1.97	%
Other Liabilities		20,229			17,787			2,442			13.73	%		20,985			(756	)		-3.60	%
Stockholders’ Equity		228,152			210,743			17,409			8.26	%		223,305			4,847			2.17	%

Total Liabilities and Stockholders’ Equity	$	3,041,685		$	2,943,926			97,759			3.32	%	$	2,983,623			58,062			1.95	%

INDEPENDENT BANK CORP. FINANCIAL SUMMARY
(Unaudited - Dollars in Thousands)


CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended												Twelve Months Ended
	December 31,									Percent			December 31,									Percent
	2005			2004			Variance			Change			2005			2004			Variance			Change

INTEREST INCOME
Interest on Fed Funds Sold and Short Term Investments	$	378		$	8			370			4625.00	%	$	515		$	17			498			2929.41	%
Interest and Dividends on Securities		8,106			8,968			(862	)		-9.61	%		33,905			34,366			(461	)		-1.34	%
Interest on Loans		32,350			27,480			4,870			17.72	%		121,241			100,230			21,011			20.96	%

Total Interest Income		40,834			36,456			4,378			12.01	%		155,661			134,613			21,048			15.64	%

INTEREST EXPENSE
Interest on Deposits		7,809			4,833			2,976			61.58	%		25,758			18,925			6,833			36.11	%
Interest on Borrowed Funds		6,114			5,241			873			16.66	%		24,060			17,872			6,188			34.62	%

Total Interest Expense		13,923			10,074			3,849			38.21	%		49,818			36,797			13,021			35.39	%

Net Interest Income		26,911			26,382			529			2.01	%		105,843			97,816			8,027			8.21	%
Less — Provision for Loan Losses		1,070			769			301			39.14	%		4,175			3,018			1,157			38.34	%

Net Interest Income after Provision for Loan Losses		25,841			25,613			228			0.89	%		101,668			94,798			6,870			7.25	%

NON-INTEREST INCOME
Service Charges on Deposit Accounts		3,492			3,204			288			8.99	%		13,103			12,345			758			6.14	%
Investment Management Services Income		1,288			1,148			140			12.20	%		5,287			4,683			604			12.90	%
Mortgage Banking Income		575			463			112			24.19	%		3,155			2,763			392			14.19	%
BOLI Income		472			514			(42	)		-8.17	%		1,831			1,902			(71	)		-3.73	%
Net Gain on Sale of Securities		—			—			—			0.00	%		616			1,458			(842	)		-57.75	%
Gain on Branch Sale		—			1,756			(1,756	)		-100.00	%		—			1,756			(1,756	)		-100.00	%
Other Non-Interest Income		924			864			60			6.94	%		3,158			3,448			(290	)		-8.41	%

Total Non-Interest Income		6,751			7,949			(1,198	)		-15.07	%		27,150			28,355			(1,205	)		-4.25	%

NON-INTEREST EXPENSE
Salaries and Employee Benefits		12,154			12,743			(589	)		-4.62	%		47,912			44,899			3,013			6.71	%
Occupancy and Equipment Expenses		2,604			2,303			301			13.07	%		10,070			8,894			1,176			13.22	%
Data Processing and Facilities Management		1,068			1,085			(17	)		-1.57	%		4,091			4,474			(383	)		-8.56	%
Merger and Acquisition Expense		—			—			—			0.00	%		—			684			(684	)		-100.00	%
Other Non-Interest Expense		4,330			4,683			(353	)		-7.54	%		18,419			18,740			(321	)		-1.71	%

Total Non-Interest Expense		20,156			20,814			(658	)		-3.16	%		80,492			77,691			2,801			3.61	%

Minority Interest		—			—			0			0.00	%		—			1,072			(1,072	)		-100.00	%

INCOME BEFORE INCOME TAXES		12,436			12,748			(312	)		-2.45	%		48,326			44,390			3,936			8.87	%

PROVISION FOR INCOME TAXES		3,872			3,565			307			8.61	%		15,121			13,623			1,498			11.00	%

NET INCOME	$	8,564		$	9,183			(619	)		-6.74	%	$	33,205		$	30,767			2,438			7.92	%


BASIC EARNINGS PER SHARE	$	0.56		$	0.60						-6.67	%	$	2.16		$	2.06						4.85	%
DILUTED EARNINGS PER SHARE	$	0.55		$	0.59						-6.78	%	$	2.14		$	2.03						5.42	%
BASIC AVERAGE SHARES		15,402,690			15,311,051						0.60	%		15,378,187			14,963,155						2.77	%
DILUTED AVERAGE SHARES		15,534,090			15,531,126						0.02	%		15,521,915			15,154,428						2.42	%

PERFORMANCE RATIOS:
Net Interest Margin (FTE)		3.92	%		3.96	%					-1.01	%		3.88	%		3.95	%					-1.77	%
Return on Average Assets		1.14	%		1.26	%					-9.52	%		1.11	%		1.13	%					-1.77	%
Return on Average Equity		15.17	%		17.69	%					-14.25	%		15.10	%		16.27	%					-7.19	%

INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA
(Unaudited — Dollars in Thousands)


			Three Months Ended December 31,
			2005						2004
					Interest							Interest
	Ending		Average		Earned/		Yield/			Average		Earned/		Yield/
	Balance		Balance		Paid		Rate			Balance		Paid		Rate

Interest-Earning Assets:

Federal Funds Sold and Short Term
Investments	$	63,662	$	37,445	$	378		4.04	%	$	1,630	$	8		1.96	%
Securities:
Trading Assets		1,557		1,556		8		2.06	%		1,494		16		4.28	%
Taxable Investment Securities		651,034		663,568		7,423		4.47	%		748,175		8,289		4.43	%
Non-taxable Investment Securities (1)		64,037		64,053		1,038		6.48	%		62,788		1,020		6.50	%

Total Securities:		716,628		729,177		8,469		4.65	%		812,457		9,325		4.59	%
Loans (1)		2,040,808		2,028,820		32,450		6.40	%		1,898,874		27,567		5.81	%

Total Interest-Earning Assets	$	2,821,098	$	2,795,442	$	41,297		5.91	%	$	2,712,961	$	36,900		5.44	%

Cash and Due from Banks		66,289		67,357							70,701
Other Assets		154,298		149,964							137,050

Total Assets	$	3,041,685	$	3,012,763						$	2,920,712

Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	613,840	$	609,707	$	1,005		0.66	%	$	611,090	$	691		0.45	%
Money Market		550,677		530,849		2,953		2.23	%		522,479		1,761		1.35	%
Time Deposits		529,057		529,907		3,851		2.91	%		465,799		2,381		2.04	%

Total interest-bearing deposits:		1,693,574		1,670,463		7,809		1.87	%		1,599,368		4,833		1.21	%
Borrowings:
Federal Home Loan Bank Borrowings	$	417,477	$	419,572	$	4,458		4.25	%	$	458,475	$	3,930		3.43	%
Federal Funds Purchased and Assets Sold
Under Repurchase Agreement		113,335		98,388		527		2.14	%		69,150		186		1.08	%
Junior Subordinated Debentures		51,546		51,546		1,117		8.67	%		51,546		1,117		8.67	%
Treasury Tax and Loan Notes		5,452		1,471		12		3.26	%		3,230		8		0.99	%

Total Borrowings:		587,810		570,977		6,114		4.28	%		582,401		5,241		3.60	%

Total Interest-Bearing Liabilities	$	2,281,384	$	2,241,440	$	13,923		2.48	%	$	2,181,769	$	10,074		1.85	%

Demand Deposits		511,920		525,807							514,194

Other Liabilities		20,229		19,766							17,144

Total Liabilities	$	2,813,533	$	2,787,013						$	2,713,107
Stockholders’ Equity		228,152		225,750							207,605

Total Liabilities and Stockholders’ Equity	$	3,041,685	$	3,012,763						$	2,920,712


Net Interest Income					$	27,374						$	26,826


Interest Rate Spread (2)								3.43	%						3.59	%


Net Interest Margin (2)								3.92	%						3.96	%


Supplemental Information:
Total Deposits, including Demand Deposits	$	2,205,494	$	2,196,270	$	7,809				$	2,113,562	$	4,833
Cost of Total Deposits								1.42	%						0.91	%
Total Funding Liabilities, including Demand Deposits	$	2,793,304	$	2,767,247	$	13,923				$	2,695,963	$	10,074
Cost of Total Funding Liabilities								2.01	%						1.49	%


(1)		The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $463 for the three months ended December 31, 2005 and $444 for the three months ended December 31, 2004.

(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. Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA
(Unaudited — Dollars in Thousands)


			Twelve Months Ended December 31,
			2005						2004
					Interest							Interest
	Ending		Average		Earned/		Yield/			Average		Earned/		Yield/
	Balance		Balance		Paid		Rate			Balance		Paid		Rate

Interest-earning Assets:

Federal Funds Sold and Short Term
Investments	$	63,662	$	14,023	$	515		3.67	%	$	750	$	17		2.27	%
Securities:
Trading Assets		1,557		1,548		36		2.33	%		1,507		48		3.19	%
Taxable Investment Securities		651,034		708,043		31,188		4.40	%		712,663		31,549		4.43	%
Non-taxable Investment Securities (1)		64,037		62,771		4,126		6.57	%		64,215		4,261		6.64	%

Total Securities:		716,628		772,362		35,350		4.58	%		778,385		35,858		4.61	%
Loans (1)		2,040,808		1,987,591		121,605		6.12	%		1,743,844		100,560		5.77	%

Total Interest-Earning Assets	$	2,821,098	$	2,773,976	$	157,470		5.68	%	$	2,522,979	$	136,435		5.41	%

Cash and Due from Banks		66,289		65,703							68,024
Other Assets		154,298		144,747							120,550

Total Assets	$	3,041,685	$	2,984,426						$	2,711,553	$

Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts	$	613,840	$	599,797		3,037		0.51	%	$	570,661	$	2,800		0.49	%
Money Market		550,677		519,461		9,549		1.84	%		456,970		5,871		1.28	%
Time Deposits		529,057		510,611		13,172		2.58	%		478,037		10,254		2.15	%

Total interest-bearing deposits:		1,693,574		1,629,869		25,758		1.58	%		1,505,668		18,925		1.26	%
Borrowings:
Federal Home Loan Bank borrowings	$	417,477	$	468,821	$	18,162		3.87	%	$	407,836	$	13,900		3.41	%
Federal Funds Purchased and Assets Sold
Under Repurchase Agreement		113,335		80,074		1,389		1.73	%		61,199		589		0.96	%
Junior Subordinated Debentures		51,546		51,546		4,469		8.67	%		38,871		3,364		8.65	%
Treasury Tax and Loan Notes		5,452		1,653		40		2.42	%		3,154		19		0.60	%

Total borrowings:		587,810		602,094		24,060		4.00	%		511,060		17,872		3.50	%

Total Interest-Bearing Liabilities	$	2,281,384	$	2,231,963	$	49,818		2.23	%	$	2,016,728	$	36,797		1.82	%

Demand Deposits		511,920		514,611							478,073

Company-Obligated Mandatorily Redeemable
Securities of Subsidiary Holding Solely Parent
Company Debentures of the Corporation		—		—							11,769
Other Liabilities		20,229		17,897							15,849

Total Liabilities	$	2,813,533	$	2,764,471						$	2,522,419
Stockholders’ Equity		228,152		219,955							189,134

Total Liabilities and Stockholders’ Equity	$	3,041,685	$	2,984,426						$	2,711,553


Net Interest Income					$	107,652						$	99,638


Interest Rate Spread (2)								3.45	%						3.59	%


Net Interest Margin (2)								3.88	%						3.95	%


Supplemental Information:
Total Deposits, including Demand Deposits	$	2,205,494	$	2,144,480	$	25,758				$	1,983,741	$	18,925
Cost of Total Deposits								1.20	%						0.95	%
Total Funding Liabilities, including Demand Deposits	$	2,793,304	$	2,746,574	$	49,818				$	2,494,801	$	36,797
Cost of Total Funding Liabilities								1.81	%						1.47	%


(1)		The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $1,809 for the twelve months ended December 31, 2005 and $1,822 for the twelve months ended December 31, 2004.

(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. Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.


	As Of
	December 31,			December 31,
Asset Quality	2005			2004

Nonperforming Loans		3,339			2,702
Nonperforming Assets		3,339			2,702
Net charge-offs (year to date)		2,733			1,853
Net charge-offs to average loans (annualized)		0.14	%		0.11	%
Loans 90 days past due & still accruing		227			245
Nonperforming Loans/Gross Loans		0.16	%		0.14	%
Allowance for Loan Losses/Nonperforming Loans		797.81	%		932.53	%
Loans/Total Deposits		92.53	%		93.02	%
Allowance for Loan Losses/Total Loans		1.31	%		1.31	%

Financial Ratios
Book Value per Share	$	14.80		$	13.75
Tangible Capital/Tangible Asset		5.74	%		5.32	%
Tangible Capital/Tangible Asset (proforma to include the deductibility of goodwill)		6.23	%		5.82	%
Tangible Book Value per Share	$	11.11		$	10.01
Tangible Book Value per Share (proforma to include the deductibility of goodwill)	$	12.05		$	10.96

Capital Adequacy
Tier one leverage capital ratio (1)		7.71	%		7.06	%
(1) Estimated number for December 31, 2005