Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced net income of $8.9 million for the second quarter of 2012, or $0.41 on a diluted earnings per share basis.
The second quarter of 2012 included expenses of $672,000, pre-tax, associated with the previously announced Central Bancorp, Inc. (NASDAQ: CEBK) acquisition. When excluding these expenses, on an operating basis, net income for the quarter was $9.3 million, or $0.43 per diluted share.
The second quarter of 2012 also included a $4.0 million charge-off that reduced diluted earnings per share by approximately $0.11. The charge-off was taken in connection with a working capital loan to a commercial borrower that was unexpectedly placed into state court receivership in late June. The charge-off was taken upon receipt of information indicating material misstatements and potential borrower fraud, that included a material overstatement of accounts receivable and inventory collateral, as well as evidence of invalid and/or altered borrower records.
Christopher Oddleifson, President and Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company, stated: “Although we had an unpleasant surprise this quarter that detracted from our bottom line performance, our business momentum continues to build nicely and operating fundamentals are as strong as ever. Businesses and consumers are looking more closely at their finances and are willing to switch banks for the right reasons. Rockland Trust’s combination of convenience, breadth of products, fair pricing, and knowledgeable, committed bankers offers strong value and sets us apart from our competitors. As a result, we’ve continued to grow both deposits and loans.”
BALANCE SHEET
Total assets of $5.1 billion at June 30, 2012 are up $138.8 million from the prior quarter and $281.6 million, or 5.8%, as compared to the year ago period.
Total loans rose to $4.0 billion at June 30, 2012, an increase of 11.5%, on an annualized basis, from the prior quarter. The commercial loan portfolio continued its strong growth trend and is benefiting from recent expansion initiatives. Robust growth was also sustained in the first position home equity portfolio due to excellent customer response to the Company’s attractive product offerings and marketing efforts. The Company has consistently generated steady loan originations, 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 grew across each major account category, increasing by 13.5%, on an annualized basis, to $4.1 billion at June 30, 2012 as compared to the prior quarter. Core deposits increased by $107.8 million to $3.4 billion, during the quarter and remained consistent at 83.8% of total deposits. The Company’s cost of total deposits fell further to 0.27%, down two basis points from the prior quarter, reflecting management’s continued emphasis on core deposits and profitable relationships.
The securities portfolio of $526.8 million decreased by $36.2 million during the quarter, primarily as a result of paydowns, and represents 10.3% of total assets.
Stockholders’ equity at June 30, 2012 increased by 4.0%, on an annualized basis, to $483.6 million, when compared to March 31, 2012. The Tier 1 leverage capital ratio at June 30, 2012 remained strong at 8.69%, maintaining the Company’s well-capitalized position.
NET INTEREST INCOME
Net interest income was $42.6 million for the second quarter of 2012, a slight increase from the linked quarter. The net interest margin was fairly resilient in the second quarter of 2012, declining by a modest two basis points to 3.80%, as the Company countered the strong ongoing pressure on earning asset yields caused by the prolonged low rate environment by continuing to reduce its overall cost of funds.
NONINTEREST INCOME
The Company recorded noninterest income of $15.0 million during the second quarter of 2012 which represents a $1.1 million, or 7.7%, increase from the prior quarter. Significant changes in noninterest income included the following:
- Investment management revenue increased by $264,000, or 7.4%, driven by tax preparation fees earned during the second quarter, combined with an increase in assets under administration in the investment management business. Assets under administration reached $2.0 billion at June 30, 2012, an increase of $21.9 million, or 1.1% as compared to the linked quarter.
- Mortgage banking income increased by $133,000, or 10.0%, due to higher volumes of mortgage originations.
- Other noninterest income increased by $660,000. This was largely due to an increase in loan level derivative fees associated with the Company’s commercial borrowers, which increased by $1.0 million.
NONINTEREST EXPENSE
Inclusive of merger and integration costs, the Company recorded noninterest expense of $37.0 million during the second quarter of 2012 which represents a $359,000 or 1.0% decrease from the prior quarter. Excluding these costs, total expenses declined by $1.0 million. Significant changes in noninterest expense included the following:
- Salaries and employee benefits decreased by $1.7 million, or 7.8%, due to decreases in payroll taxes driven by the timing of incentive compensation payouts in the first quarter, as well as a decrease in accrued incentive compensation for 2012.
- Merger and acquisition expenses were $672,000 for the second quarter relating to the previously announced acquisition of Central Bancorp, Inc., which is expected to close in the fourth quarter of 2012.
- Other noninterest expense increased by $691,000, or 7.1%, due primarily to increases in advertising expenses of $734,000.
The Company generated a return on average assets and a return on average common equity in the second quarter of 2012 of 0.71% and 7.34% respectively, as compared to 1.00% and 10.31% for the quarter ended March 31, 2012. On a year to date basis, return on average assets and return on average common equity were 0.86% and 8.81%, respectively.
ASSET QUALITY
The provision for loan losses was $8.5 million for the second quarter compared to $1.6 million for the quarter ended March 31, 2012. The provision for loan loss exceeded net charge-offs in both periods. For the quarter, net charge-offs increased to $8.4 million, or 0.86%, on an annualized basis of average loans compared to $1.5 million, or 0.16%, for the quarter ended March 31, 2012. The higher net charge-offs in the second quarter included $4.0 million related to unforeseen developments in a commercial loan discussed previously. Delinquency as a percentage of loans decreased to 0.82% at June 30, 2012 compared to 0.92% at March 31, 2012. Nonperforming loans decreased to $31.3 million, or 0.79%, of total loans at June 30, 2012, from $31.6 million, or 0.82% of total loans, at March 31, 2012. Nonperforming assets totaled $43.9 million at the end of the second quarter compared to $40.7 million in the linked quarter.
The allowance for loan losses was $48.4 million at June 30, 2012, consistent with the prior quarter levels. The Company’s allowance for loan losses was 1.22% and 1.25% as a percentage of total loans at June 30, 2012 and March 31, 2012, 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 second quarter earnings at 10:00 a.m. Eastern Time on Friday, July 20, 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: 10015888. The webcast replay will be available until July 20, 2013.
Independent Bank Corp., which has Rockland Trust Company as a wholly-owned bank subsidiary, has approximately $5.1 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 | ||||||||||||||||||||||||||||
| CONSOLIDATED BALANCE SHEETS | June 30, | March 31, | June 30, | % Change | % Change | |||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||
| Cash and Due From Banks | $ | 65,826 | $ | 57,658 | $ | 56,679 | 14.17 | % | 16.14 | % | ||||||||||||||||||
| Interest Earning Deposits with Banks | 121,029 | 75,865 | 129,420 | 59.53 | % | -6.48 | % | |||||||||||||||||||||
| Fed Funds Sold | 1,524 | 2,269 | 1,197 | -32.83 | % | 27.32 | % | |||||||||||||||||||||
| Securities | ||||||||||||||||||||||||||||
| Trading Assets | - | - | 8,539 | n/a | -100.00 | % | ||||||||||||||||||||||
| Securities Available for Sale | 338,331 | 362,109 | 305,895 | -6.57 | % | 10.60 | % | |||||||||||||||||||||
| Securities Held to Maturity | 188,450 | 200,921 | 233,109 | -6.21 | % | -19.16 | % | |||||||||||||||||||||
| Total Securities | 526,781 | 563,030 | 547,543 | -6.44 | % | -3.79 | % | |||||||||||||||||||||
| Loans Held for Sale | 22,310 | 22,846 | 12,255 | -2.35 | % | 82.05 | % | |||||||||||||||||||||
| Loans | ||||||||||||||||||||||||||||
| Commercial and Industrial | 625,695 | 599,603 | 568,022 | 4.35 | % | 10.15 | % | |||||||||||||||||||||
| Commercial Real Estate | 1,912,563 | 1,853,711 | 1,801,026 | 3.17 | % | 6.19 | % | |||||||||||||||||||||
| Commercial Construction | 149,990 | 148,034 | 130,303 | 1.32 | % | 15.11 | % | |||||||||||||||||||||
| Small Business | 79,738 | 79,937 | 78,905 | -0.25 | % | 1.06 | % | |||||||||||||||||||||
| Total Commercial | 2,767,986 | 2,681,285 | 2,578,256 | 3.23 | % | 7.36 | % | |||||||||||||||||||||
| Residential Real Estate | 389,053 | 402,910 | 454,597 | -3.44 | % | -14.42 | % | |||||||||||||||||||||
| Residential Construction | 14,960 | 13,291 | 6,404 | 12.56 | % | 133.60 | % | |||||||||||||||||||||
| Consumer - Home Equity - 1st Position | 466,136 | 425,245 | 319,274 | 9.62 | % | 46.00 | % | |||||||||||||||||||||
| Consumer - Home Equity - 2nd Position | 310,717 | 310,578 | 313,461 | 0.04 | % | -0.88 | % | |||||||||||||||||||||
| Total Consumer Real Estate | 1,180,866 | 1,152,024 | 1,093,736 | 2.50 | % | 7.97 | % | |||||||||||||||||||||
| Total Other Consumer | 31,937 | 36,447 | 53,239 | -12.37 | % | -40.01 | % | |||||||||||||||||||||
| Total Loans | 3,980,789 | 3,869,756 | 3,725,231 | 2.87 | % | 6.86 | % | |||||||||||||||||||||
| Less - Allowance for Loan Losses | (48,403 | ) | (48,340 | ) | (46,637 | ) | 0.13 | % | 3.79 | % | ||||||||||||||||||
| Net Loans | 3,932,386 | 3,821,416 | 3,678,594 | 2.90 | % | 6.90 | % | |||||||||||||||||||||
| Federal Home Loan Bank Stock | 33,564 | 33,564 | 35,854 | 0.00 | % | -6.39 | % | |||||||||||||||||||||
| Bank Premises and Equipment | 49,384 | 49,678 | 46,368 | -0.59 | % | 6.50 | % | |||||||||||||||||||||
| Goodwill and Core Deposit Intangible | 139,924 | 140,323 | 141,489 | -0.28 | % | -1.11 | % | |||||||||||||||||||||
| Other Assets | 231,836 | 219,090 | 193,544 | 5.82 | % | 19.78 | % | |||||||||||||||||||||
| Total Assets | $ | 5,124,564 | $ | 4,985,739 | $ | 4,842,943 | 2.78 | % | 5.82 | % | ||||||||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||||||
| Demand Deposits | $ | 1,070,279 | $ | 1,015,231 | $ | 913,960 | 5.42 | % | 17.10 | % | ||||||||||||||||||
| Savings and Interest Checking Accounts | 1,560,523 | 1,501,826 | 1,479,365 | 3.91 | % | 5.49 | % | |||||||||||||||||||||
| Money Market | 807,796 | 803,744 | 722,234 | 0.50 | % | 11.85 | % | |||||||||||||||||||||
| Time Certificates of Deposit | 639,535 | 624,912 | 671,003 | 2.34 | % | -4.69 | % | |||||||||||||||||||||
| Total Deposits | 4,078,133 | 3,945,713 | 3,786,562 | 3.36 | % | 7.70 | % | |||||||||||||||||||||
| Borrowings | ||||||||||||||||||||||||||||
Federal Home Loan Bank and Other Borrowings | 189,522 | 194,580 | 260,647 | -2.60 | % | -27.29 | % | |||||||||||||||||||||
| Wholesale Repurchase Agreements | 50,000 | 50,000 | 50,000 | 0.00 | % | 0.00 | % | |||||||||||||||||||||
| Customer Repurchase Agreements | 144,838 | 147,678 | 133,166 | -1.92 | % | 8.77 | % | |||||||||||||||||||||
| 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 | 476,217 | 484,115 | 535,670 | -1.63 | % | -11.10 | % | |||||||||||||||||||||
| Total Deposits and Borrowings | 4,554,350 | 4,429,828 | 4,322,232 | 2.81 | % | 5.37 | % | |||||||||||||||||||||
| Other Liabilities | 86,622 | 77,048 | 65,009 | 12.43 | % | 33.25 | % | |||||||||||||||||||||
| Stockholders' Equity | ||||||||||||||||||||||||||||
| Common Stock | 214 | 213 | 212 | 0.47 | % | 0.94 | % | |||||||||||||||||||||
| Additional Paid in Capital | 236,279 | 235,381 | 231,987 | 0.38 | % | 1.85 | % | |||||||||||||||||||||
| Retained Earnings | 251,429 | 247,097 | 224,488 | 1.75 | % | 12.00 | % | |||||||||||||||||||||
| Accumulated Other Comprehensive Loss, Net of Tax | (4,330 | ) | (3,828 | ) | (985 | ) | 13.11 | % | 339.59 | % | ||||||||||||||||||
| Total Stockholders' Equity | 483,592 | 478,863 | 455,702 | 0.99 | % | 6.12 | % | |||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 5,124,564 | $ | 4,985,739 | $ | 4,842,943 | 2.78 | % | 5.82 | % | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | |||||||||||||||||||||||||||
June 30, | March 31, | June 30, | % Change | % Change | ||||||||||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||||||||||
| Interest on Fed Funds Sold and Short Term Investments | $ | 19 | $ | 33 | $ | 14 | -42.42 | % | 35.71 | % | ||||||||||||||||||
| Interest and Dividends on Securities | 4,438 | 4,556 | 5,452 | -2.59 | % | -18.60 | % | |||||||||||||||||||||
| Interest on Loans | 43,813 | 43,077 | 43,938 | 1.71 | % | -0.28 | % | |||||||||||||||||||||
| Interest on Loans Held for Sale | 156 | 130 | 70 | 20.00 | % | 122.86 | % | |||||||||||||||||||||
| Total Interest Income | 48,426 | 47,796 | 49,474 | 1.32 | % | -2.12 | % | |||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||||
| Interest on Deposits | 2,687 | 2,739 | 3,544 | -1.90 | % | -24.18 | % | |||||||||||||||||||||
| Interest on Borrowed Funds | 3,111 | 3,204 | 3,854 | -2.90 | % | -19.28 | % | |||||||||||||||||||||
| Total Interest Expense | 5,798 | 5,943 | 7,398 | -2.44 | % | -21.63 | % | |||||||||||||||||||||
| Net Interest Income | 42,628 | 41,853 | 42,076 | 1.85 | % | 1.31 | % | |||||||||||||||||||||
| Less - Provision for Loan Losses | 8,500 | 1,600 | 3,482 | 431.25 | % | 144.11 | % | |||||||||||||||||||||
| Net Interest Income after Provision for Loan Losses | 34,128 | 40,253 | 38,594 | -15.22 | % | -11.57 | % | |||||||||||||||||||||
| NONINTEREST INCOME | ||||||||||||||||||||||||||||
| Service Charges on Deposit Accounts | 3,923 | 3,889 | 4,192 | 0.87 | % | -6.42 | % | |||||||||||||||||||||
| Interchange and ATM Fees | 2,399 | 2,368 | 1,974 | 1.31 | % | 21.53 | % | |||||||||||||||||||||
| Investment Management | 3,827 | 3,563 | 3,603 | 7.41 | % | 6.22 | % | |||||||||||||||||||||
| Mortgage Banking Income | 1,463 | 1,330 | 683 | 10.00 | % | 114.20 | % | |||||||||||||||||||||
| Increase in Cash Surrender Value of Life Insurance Policies | 741 | 713 | 860 | 3.93 | % | -13.84 | % | |||||||||||||||||||||
| Net Gain on Sale of Securities | - | - | 723 | n/a | -100.00 | % | ||||||||||||||||||||||
| Gross Change on Write-Down of Certain Investments to Fair Value | (106 | ) | 274 | 170 | -138.69 | % | -162.35 | % | ||||||||||||||||||||
| Less: Portion of Other-Than-Temporary Impairment Losses Recognized in OCI | 30 | (274 | ) | (306 | ) | -110.95 | % | -109.80 | % | |||||||||||||||||||
| Net Loss on Write-Down of Certain Investments to Fair Value | (76 | ) | - | (136 | ) | -100.00 | % | -44.12 | % | |||||||||||||||||||
| Other Noninterest Income | 2,706 | 2,046 | 1,575 | 32.26 | % | 71.81 | % | |||||||||||||||||||||
| Total Noninterest Income | 14,983 | 13,909 | 13,474 | 7.72 | % | 11.20 | % | |||||||||||||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||||||||||||||
| Salaries and Employee Benefits | 19,775 | 21,436 | 19,762 | -7.75 | % | 0.07 | % | |||||||||||||||||||||
| Occupancy and Equipment Expenses | 4,234 | 4,300 | 4,263 | -1.53 | % | -0.68 | % | |||||||||||||||||||||
| Data Processing and Facilities Management | 1,099 | 1,175 | 1,038 | -6.47 | % | 5.88 | % | |||||||||||||||||||||
| FDIC Assessment | 830 | 749 | 778 | 10.81 | % | 6.68 | % | |||||||||||||||||||||
Merger and Acquisition Expenses | 672 | - | - | 100.00 | % | 100.00 | % | |||||||||||||||||||||
| Other Noninterest Expense | 10,389 | 9,698 | 11,015 | 7.13 | % | -5.68 | % | |||||||||||||||||||||
| Total Noninterest Expense | 36,999 | 37,358 | 36,856 | -0.96 | % | 0.39 | % | |||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | 12,112 | 16,804 | 15,212 | -27.92 | % | -20.38 | % | |||||||||||||||||||||
| PROVISION FOR INCOME TAXES | 3,238 | 4,621 | 4,092 | -29.93 | % | -20.87 | % | |||||||||||||||||||||
| NET INCOME | $ | 8,874 | $ | 12,183 | $ | 11,120 | -27.16 | % | -20.20 | % | ||||||||||||||||||
| BASIC EARNINGS PER SHARE | $ | 0.41 | $ | 0.57 | $ | 0.52 | -28.07 | % | -21.15 | % | ||||||||||||||||||
| DILUTED EARNINGS PER SHARE | $ | 0.41 | $ | 0.56 | $ | 0.52 | -26.79 | % | -21.15 | % | ||||||||||||||||||
| BASIC AVERAGE SHARES | 21,623,827 | 21,561,006 | 21,441,864 | |||||||||||||||||||||||||
| DILUTED AVERAGE SHARES | 21,644,204 | 21,585,487 | 21,481,023 | |||||||||||||||||||||||||
PERFORMANCE RATIOS: | ||||||||||||||||||||||||||||
| Net Interest Margin (FTE) | 3.80 | % | 3.82 | % | 3.97 | % | ||||||||||||||||||||||
| Return on Average Assets | 0.71 | % | 1.00 | % | 0.95 | % | ||||||||||||||||||||||
| Return on Average Common Equity | 7.34 | % | 10.31 | % | 9.78 | % | ||||||||||||||||||||||
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||
| NET INCOME | $ | 8,874 | $ | 12,183 | $ | 11,120 | -27.16 | % | -20.20 | % | ||||||||||||||||||
| NonInterest Income Components | ||||||||||||||||||||||||||||
| Less - Gain on Sale of Securities, net of tax | - | - | (428 | ) | ||||||||||||||||||||||||
| Noninterest Expense Components | ||||||||||||||||||||||||||||
| Add - Merger & Acquisition Expenses, net of tax | 397 | - | - | |||||||||||||||||||||||||
| NET OPERATING EARNINGS | $ | 9,271 | $ | 12,183 | $ | 10,692 | -23.90 | % | -13.29 | % | ||||||||||||||||||
| Diluted Earnings Per Share, on an Operating Basis | $ | 0.43 | $ | 0.56 | $ | 0.50 | -23.21 | % | -14.00 | % | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||
| Six Months Ended | |||||||||||||||||
June 30, | June 30, 2011 | % Change | |||||||||||||||
| INTEREST INCOME | |||||||||||||||||
| Interest on Fed Funds Sold and Short Term Investments | $ | 51 | $ | 31 | 64.52 | % | |||||||||||
| Interest and Dividends on Securities | 8,994 | 11,058 | -18.67 | % | |||||||||||||
| Interest on Loans | 86,891 | 87,154 | -0.30 | % | |||||||||||||
| Interest on Loans Held for Sale | 286 | 189 | 51.32 | % | |||||||||||||
| Total Interest Income | 96,222 | 98,432 | -2.25 | % | |||||||||||||
| INTEREST EXPENSE | |||||||||||||||||
| Interest on Deposits | 5,426 | 7,029 | -22.81 | % | |||||||||||||
| Interest on Borrowed Funds | 6,316 | 7,854 | -19.58 | % | |||||||||||||
| Total Interest Expense | 11,742 | 14,883 | -21.10 | % | |||||||||||||
| Net Interest Income | 84,480 | 83,549 | 1.11 | % | |||||||||||||
| Less - Provision for Loan Losses | 10,100 | 5,682 | 77.75 | % | |||||||||||||
| Net Interest Income after Provision for Loan Losses | 74,380 | 77,867 | -4.48 | % | |||||||||||||
| NONINTEREST INCOME | |||||||||||||||||
| Service Charges on Deposit Accounts | 7,812 | 8,151 | -4.16 | % | |||||||||||||
| Interchange and ATM Fees | 4,767 | 3,676 | 29.68 | % | |||||||||||||
| Investment Management | 7,390 | 6,819 | 8.37 | % | |||||||||||||
| Mortgage Banking Income | 2,793 | 1,730 | 61.45 | % | |||||||||||||
| Increase in Cash Surrender Value of Life Insurance Policies | 1,454 | 1,566 | -7.15 | % | |||||||||||||
| Net Gain on Sale of Securities | - | 723 | -100.00 | % | |||||||||||||
| Gross Change on Write-Down of Certain Investments to Fair Value | 168 | 419 | -59.90 | % | |||||||||||||
| Less: Portion of Other-Than-Temporary Impairment Losses Recognize in OCI | (244 | ) | (595 | ) | -58.99 | % | |||||||||||
| Net Loss on Write-Down of Certain Investments to Fair Value | (76 | ) | (176 | ) | -56.82 | % | |||||||||||
| Other Noninterest Income | 4,753 | 3,583 | 32.65 | % | |||||||||||||
| Total Noninterest Income | 28,893 | 26,072 | 10.82 | % | |||||||||||||
| NONINTEREST EXPENSE | |||||||||||||||||
| Salaries and Employee Benefits | 41,211 | 40,014 | 2.99 | % | |||||||||||||
| Occupancy and Equipment Expenses | 8,534 | 8,838 | -3.44 | % | |||||||||||||
| Data Processing and Facilities Management | 2,274 | 2,676 | -15.02 | % | |||||||||||||
| FDIC Assessment | 1,579 | 2,069 | -23.68 | % | |||||||||||||
| Merger and Acquision Expenses | 672 | - | 100.00 | % | |||||||||||||
| Other Noninterest Expense | 20,086 | 19,741 | 1.75 | % | |||||||||||||
| Total Noninterest Expense | 74,356 | 73,338 | 1.39 | % | |||||||||||||
| INCOME BEFORE INCOME TAXES | 28,917 | 30,601 | -5.50 | % | |||||||||||||
| PROVISION FOR INCOME TAXES | 7,860 | 8,293 | -5.22 | % | |||||||||||||
| NET INCOME | $ | 21,057 | $ | 22,308 | -5.61 | % | |||||||||||
| BASIC EARNINGS PER SHARE | $ | 0.98 | $ | 1.04 | -5.77 | % | |||||||||||
| DILUTED EARNINGS PER SHARE | $ | 0.97 | $ | 1.04 | -6.73 | % | |||||||||||
| BASIC AVERAGE SHARES | 21,592,416 | 21,370,457 | |||||||||||||||
| DILUTED AVERAGE SHARES | 21,614,667 | 21,414,232 | |||||||||||||||
| Net Interest Margin (FTE) | 3.81 | % | 3.99 | % | |||||||||||||
| Return on Average Assets | 0.86 | % | 0.96 | % | |||||||||||||
| Return on Average Common Equity | 8.81 | % | 10.01 | % | |||||||||||||
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION | |||||||||||||||||
| NET INCOME | $ | 21,057 | $ | 22,308 | -5.61 | % | |||||||||||
| Noninterest Income Components | |||||||||||||||||
| Less - Net Gain on Sale of Securities, net of tax | - | (428 | ) | ||||||||||||||
| Noninterest Expense Components | |||||||||||||||||
| Add - Merger & Acquisition Expenses, net of tax | 397 | - | |||||||||||||||
| NET OPERATING EARNINGS | $ | 21,454 | $ | 21,880 | -1.95 | % | |||||||||||
| Diluted Earnings Per Share, on an Operating Basis | $ | 0.99 | $ | 1.02 | -2.94 | % | |||||||||||
| RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
June 30, | March 31, | June 30, | % Change | % Change | June 30, | June 30, | % Change | |||||||||||||||||||||||||||||||||||||||||
| Noninterest Income GAAP | $ | 14,983 | $ | 13,909 | $ | 13,474 | 7.72 | % | 11.20 | % | $ | 28,893 | $ | 26,072 | 10.82 | % | ||||||||||||||||||||||||||||||||
| Less - Net Gain on Sale of Securities | - | - | (723 | ) | n/a | 100.00 | % | - | (723 | ) | -100.00 | % | ||||||||||||||||||||||||||||||||||||
| Add - Other-Than-Temporary-Impairment on Securities | 76 | - | 136 | 100.00 | % | -44.12 | % | 76 | 176 | -56.82 | % | |||||||||||||||||||||||||||||||||||||
| Noninterest Income as Adjusted | $ | 15,059 | $ | 13,909 | $ | 12,887 | 8.27 | % | 16.85 | % | $ | 28,969 | $ | 25,525 | 13.49 | % | ||||||||||||||||||||||||||||||||
| Noninterest Expense GAAP | $ | 36,999 | $ | 37,358 | $ | 36,856 | -0.96 | % | 0.39 | % | $ | 74,356 | $ | 73,338 | 1.39 | % | ||||||||||||||||||||||||||||||||
Less - Merger and Acquisition Expenses | (672 | ) | - | - | 100.00 | % | 100.00 | % | (672 | ) | - | 100.00 | % | |||||||||||||||||||||||||||||||||||
| Noninterest Expense as Adjusted | $ | 36,327 | $ | 37,358 | $ | 36,856 | -2.76 | % | -1.44 | % | $ | 73,684 | $ | 73,338 | 0.47 | % | ||||||||||||||||||||||||||||||||
ASSET QUALITY | Nonperforming Assets At | Net Charge-Offs | Net Charge-Offs For the Six Months Ending | |||||||||||||||||||||||||||||||||||||||||||||
June 30, | March 31, 2012 | June 30, 2011 | June 30, 2012 | March 31, 2012 | June 30, 2011 | June 30, 2012 | June 30, 2011 | |||||||||||||||||||||||||||||||||||||||||
| Nonperforming Loans | ||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial & Industrial Loans | $ | 4,404 | $ | 2,429 | $ | 2,674 | $ | 4,594 | ($185 | ) | $ | 749 | $ | 4,409 | $ | 1,435 | ||||||||||||||||||||||||||||||||
| Small Business Loans | 588 | 544 | 1,130 | 90 | 118 | 292 | 208 | 530 | ||||||||||||||||||||||||||||||||||||||||
| Commercial Real Estate Loans | 9,371 | 15,015 | 7,007 | 2,133 | 604 | 1,236 | 2,737 | 1,838 | ||||||||||||||||||||||||||||||||||||||||
| Residential Real Estate Loans | 9,939 | 10,465 | 8,546 | 105 | 109 | 280 | 214 | 402 | ||||||||||||||||||||||||||||||||||||||||
| Installment Loans - Home Equity | 6,768 | 2,773 | 1,977 | 1,373 | 737 | 488 | 2,110 | 562 | ||||||||||||||||||||||||||||||||||||||||
| Installment Loans - Other | 252 | 420 | 592 | 142 | 137 | 244 | 279 | 533 | ||||||||||||||||||||||||||||||||||||||||
| Total Nonperforming Loans / Total Net Charge-offs | $ | 31,322 | $ | 31,646 | $ | 21,926 | $ | 8,437 | $ | 1,520 | $ | 3,289 | $ | 9,957 | $ | 5,300 | ||||||||||||||||||||||||||||||||
| Nonaccrual Securities | 1,259 | 1,400 | 1,587 | |||||||||||||||||||||||||||||||||||||||||||||
| Other Assets in Possession | 1 | 92 | 40 | |||||||||||||||||||||||||||||||||||||||||||||
| Other Real Estate Owned | 11,275 | 7,598 | 7,410 | |||||||||||||||||||||||||||||||||||||||||||||
| Nonperforming Assets | $ | 43,857 | $ | 40,736 | $ | 30,963 | ||||||||||||||||||||||||||||||||||||||||||
| Nonperforming Loans/Gross Loans | 0.79 | % | 0.82 | % | 0.59 | % | ||||||||||||||||||||||||||||||||||||||||||
| Allowance for Loan Losses/Nonperforming Loans | 154.53 | % | 152.75 | % | 212.70 | % | ||||||||||||||||||||||||||||||||||||||||||
| Gross Loans/Total Deposits | 97.61 | % | 98.07 | % | 98.38 | % | ||||||||||||||||||||||||||||||||||||||||||
| Allowance for Loan Losses/Total Loans | 1.22 | % | 1.25 | % | 1.25 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net charge-offs to average loans (quarter annualized) | 0.86 | % | 0.16 | % | 0.36 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net charge-offs to average loans (year-to-date) | 0.52 | % | 0.29 | % | ||||||||||||||||||||||||||||||||||||||||||||
Nonperforming Assets Reconciliation | Three Months Ending June 30, 2012 | Three Months Ending March 31, 2012 | Three Months Ending June 30, 2011 | |||||||||||||||
| Nonperforming Assets Beginning Balance | $ | 40,736 | $ | 37,149 | $ | 33,856 | ||||||||||||
| New to Nonperforming | 18,895 | 8,803 | 9,085 | |||||||||||||||
| Loans Charged-Off | (8,768 | ) | (1,944 | ) | (3,587 | ) | ||||||||||||
| Loans Paid-Off | (2,934 | ) | (1,172 | ) | (5,130 | ) | ||||||||||||
| Loans Transferred to Other Real Estate Owned/Other Assets | (3,579 | ) | (1,503 | ) | (1,172 | ) | ||||||||||||
| Loans Restored to Accrual Status | (3,946 | ) | (1,870 | ) | (638 | ) | ||||||||||||
| New to Other Real Estate Owned | 3,579 | 1,503 | 1,172 | |||||||||||||||
| Sale of Other Real Estate Owned | (383 | ) | (1,587 | ) | (3,214 | ) | ||||||||||||
| Other | 257 | 1,357 | 591 | |||||||||||||||
| Nonperforming Assets Ending Balance | $ | 43,857 | $ | 40,736 | $ | 30,963 | ||||||||||||
Financial Ratios | June 30, 2012 | March 31, 2012 | June 30, 2011 | |||||||||||||||
| Book Value per Common Share | $ | 22.36 | $ | 22.16 | $ | 21.24 | ||||||||||||
| Tangible Common Book Value per Share (proforma to include | ||||||||||||||||||
| the tax deductibility of goodwill) - Non-GAAP | $ | 16.80 | $ | 16.59 | $ | 15.60 | ||||||||||||
| Tangible Common Capital/Tangible Assets | 6.89 | % | 6.99 | % | 6.68 | % | ||||||||||||
| Tangible Common Capital/Tangible Asset (proforma to include | ||||||||||||||||||
| the tax deductibility of goodwill) - Non-GAAP | 7.26 | % | 7.37 | % | 7.09 | % | ||||||||||||
Capital Adequacy | ||||||||||||||||||
| Tier one leverage capital ratio (1) | 8.69 | % | 8.77 | % | 8.54 | % | ||||||||||||
| Tier one common ratio (1) | 9.03 | % | 9.18 | % | 8.85 | % | ||||||||||||
| (1) Estimated number for June 30, 2012 | ||||||||||||||||||
INDEPENDENT BANK CORP. SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited - Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2012 | March 31, 2012 | June 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||
Average | Interest | Yield/ | Average | Interest | Yield/ | Average | Interest | Yield/ | ||||||||||||||||||||||||||||||||||||||
| Interest-Earning Assets: | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest Earning Deposits with Banks, Federal Funds Sold, and Short Term Investments | $ | 30,890 | $ | 19 | 0.25 | % | $ | 53,228 | $ | 33 | 0.25 | % | $ | 23,049 | $ | 14 | 0.24 | % | ||||||||||||||||||||||||||||
| Securities: | ||||||||||||||||||||||||||||||||||||||||||||||
| Trading Assets | - | - | n/a | 5,490 | 38 | 2.78 | % | 8,600 | 71 | 3.31 | % | |||||||||||||||||||||||||||||||||||
| Taxable Investment Securities | 544,822 | 4,415 | 3.26 | % | 530,323 | 4,489 | 3.40 | % | 556,301 | 5,286 | 3.81 | % | ||||||||||||||||||||||||||||||||||
| Nontaxable Investment Securities (1) | 1,938 | 39 | 8.09 | % | 2,493 | 49 | 7.91 | % | 8,610 | 161 | 7.50 | % | ||||||||||||||||||||||||||||||||||
| Total Securities: | 546,760 | 4,454 | 3.28 | % | 538,306 | 4,576 | 3.42 | % | 573,511 | 5,518 | 3.86 | % | ||||||||||||||||||||||||||||||||||
| Loans Held for Sale | 20,079 | 156 | 3.12 | % | 17,189 | 130 | 3.04 | % | 8,659 | 70 | 3.24 | % | ||||||||||||||||||||||||||||||||||
| Loans: | ||||||||||||||||||||||||||||||||||||||||||||||
| Commercial and Industrial | 620,364 | 6,294 | 4.08 | % | 579,087 | 5,901 | 4.10 | % | 535,764 | 5,710 | 4.27 | % | ||||||||||||||||||||||||||||||||||
Commercial Real Estate (1) | 1,896,941 | 22,973 | 4.87 | % | 1,848,121 | 22,734 | 4.95 | % | 1,787,364 | 23,618 | 5.30 | % | ||||||||||||||||||||||||||||||||||
| Commercial Construction | 149,627 | 1,578 | 4.24 | % | 142,729 | 1,543 | 4.35 | % | 128,747 | 1,482 | 4.62 | % | ||||||||||||||||||||||||||||||||||
| Small Business | 80,324 | 1,132 | 5.67 | % | 78,706 | 1,137 | 5.81 | % | 79,834 | 1,151 | 5.78 | % | ||||||||||||||||||||||||||||||||||
| Total Commercial | 2,747,256 | 31,977 | 4.68 | % | 2,648,643 | 31,315 | 4.76 | % | 2,531,709 | 31,961 | 5.06 | % | ||||||||||||||||||||||||||||||||||
| Residential Real Estate | 393,377 | 4,267 | 4.36 | % | 410,604 | 4,466 | 4.37 | % | 457,651 | 5,167 | 4.53 | % | ||||||||||||||||||||||||||||||||||
| Residential Construction | 15,041 | 161 | 4.31 | % | 11,622 | 130 | 4.50 | % | 4,535 | 55 | 4.86 | % | ||||||||||||||||||||||||||||||||||
| Consumer - Home Equity | 757,850 | 6,939 | 3.68 | % | 717,620 | 6,660 | 3.73 | % | 627,832 | 5,920 | 3.78 | % | ||||||||||||||||||||||||||||||||||
| Total Consumer Real Estate | 1,166,268 | 11,367 | 3.92 | % | 1,139,846 | 11,256 | 3.97 | % | 1,090,018 | 11,142 | 4.10 | % | ||||||||||||||||||||||||||||||||||
| Total Other Consumer | 34,261 | 728 | 8.55 | % | 38,698 | 771 | 8.01 | % | 56,292 | 1,098 | 7.82 | % | ||||||||||||||||||||||||||||||||||
| Total Loans | 3,947,785 | 44,072 | 4.49 | % | 3,827,187 | 43,342 | 4.55 | % | 3,678,019 | 44,201 | 4.82 | % | ||||||||||||||||||||||||||||||||||
| Total Interest-Earning Assets | $ | 4,545,514 | $ | 48,701 | 4.31 | % | $ | 4,435,910 | $ | 48,081 | 4.36 | % | $ | 4,283,238 | $ | 49,803 | 4.66 | % | ||||||||||||||||||||||||||||
| Cash and Due from Banks | 63,703 | 58,226 | 56,122 | |||||||||||||||||||||||||||||||||||||||||||
| Federal Home Loan Bank Stock | 33,564 | 35,275 | 35,854 | |||||||||||||||||||||||||||||||||||||||||||
| Other Assets | 362,746 | 367,401 | 322,033 | |||||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 5,005,527 | $ | 4,896,812 | $ | 4,697,247 | ||||||||||||||||||||||||||||||||||||||||
| Interest-bearing Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||||||||||||||||||||||
| Savings and Interest Checking Accounts | $ | 1,482,889 | $ | 687 | 0.19 | % | $ | 1,424,455 | $ | 697 | 0.20 | % | $ | 1,365,892 | $ | 850 | 0.25 | % | ||||||||||||||||||||||||||||
| Money Market | 799,831 | 621 | 0.31 | % | 769,891 | 639 | 0.33 | % | 723,345 | 815 | 0.45 | % | ||||||||||||||||||||||||||||||||||
| Time Deposits | 627,250 | 1,379 | 0.88 | % | 626,478 | 1,403 | 0.90 | % | 669,941 | 1,879 | 1.12 | % | ||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits: | $ | 2,909,970 | $ | 2,687 | 0.37 | % | $ | 2,820,824 | $ | 2,739 | 0.39 | % | $ | 2,759,178 | $ | 3,544 | 0.52 | % | ||||||||||||||||||||||||||||
| Borrowings: | ||||||||||||||||||||||||||||||||||||||||||||||
| Federal Home Loan Bank and Other Borrowings | $ | 219,846 | $ | 1,280 | 2.34 | % | $ | 226,365 | $ | 1,344 | 2.39 | % | $ | 279,525 | $ | 1,743 | 2.50 | % | ||||||||||||||||||||||||||||
| Wholesale Repurchase Agreements | 50,000 | 289 | 2.32 | % | 50,000 | 289 | 2.32 | % | 50,000 | 525 | 4.21 | % | ||||||||||||||||||||||||||||||||||
| Customer Repurchase Agreements | 145,963 | 83 | 0.23 | % | 158,489 | 110 | 0.28 | % | 131,631 | 132 | 0.40 | % | ||||||||||||||||||||||||||||||||||
| Junior Subordinated Debentures | 61,857 | 918 | 5.97 | % | 61,857 | 920 | 5.98 | % | 61,857 | 913 | 5.92 | % | ||||||||||||||||||||||||||||||||||
| Subordinated Debentures | 30,000 | 541 | 7.25 | % | 30,000 | 541 | 7.25 | % | 30,000 | 541 | 7.23 | % | ||||||||||||||||||||||||||||||||||
| Total Borrowings | $ | 507,666 | $ | 3,111 | 2.46 | % | $ | 526,711 | $ | 3,204 | 2.45 | % | $ | 553,013 | $ | 3,854 | 2.80 | % | ||||||||||||||||||||||||||||
| Total Interest-Bearing Liabilities | $ | 3,417,636 | $ | 5,798 | 0.68 | % | $ | 3,347,535 | $ | 5,943 | 0.71 | % | $ | 3,312,191 | $ | 7,398 | 0.90 | % | ||||||||||||||||||||||||||||
| Demand Deposits | 1,023,048 | 985,455 | 870,585 | |||||||||||||||||||||||||||||||||||||||||||
| Other Liabilities | 78,430 | 88,598 | 58,621 | |||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities | $ | 4,519,114 | $ | 4,421,588 | $ | 4,241,397 | ||||||||||||||||||||||||||||||||||||||||
| Stockholders' Equity | 486,413 | 475,224 | 455,850 | |||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 5,005,527 | $ | 4,896,812 | $ | 4,697,247 | ||||||||||||||||||||||||||||||||||||||||
| Net Interest Income | $ | 42,903 | $ | 42,138 | $ | 42,405 | ||||||||||||||||||||||||||||||||||||||||
| Interest Rate Spread (2) | 3.63 | % | 3.65 | % | 3.76 | % | ||||||||||||||||||||||||||||||||||||||||
| Net Interest Margin (3) | 3.80 | % | 3.82 | % | 3.97 | % | ||||||||||||||||||||||||||||||||||||||||
| Supplemental Information: | ||||||||||||||||||||||||||||||||||||||||||||||
| Total Deposits, including Demand Deposits | $ | 3,933,018 | $ | 2,687 | $ | 3,806,279 | $ | 2,739 | $ | 3,629,763 | $ | 3,544 | ||||||||||||||||||||||||||||||||||
| Cost of Total Deposits | 0.27 | % | 0.29 | % | 0.39 | % | ||||||||||||||||||||||||||||||||||||||||
| Total Funding Liabilities, including Demand Deposits | $ | 4,440,684 | $ | 5,798 | $ | 4,332,990 | $ | 5,943 | $ | 4,182,776 | $ | 7,398 | ||||||||||||||||||||||||||||||||||
| Cost of Total Funding Liabilities | 0.53 | % | 0.55 | % | 0.71 | % | ||||||||||||||||||||||||||||||||||||||||
| (1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $275, $285, and $329 for the three months ended June 30, 2012, March 31, 2012, and June 30, 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. | |
| Six Months Ended | ||||||||||||||||||||||||||||||
June 30, 2012 | June 30, 2011 | |||||||||||||||||||||||||||||
Average | Interest | Yield/ Rate | Average Balance | Interest Earned/ Paid | Yield/ Rate | |||||||||||||||||||||||||
| Interest-Earning Assets: | ||||||||||||||||||||||||||||||
| Interest Earning Deposits with Banks, Federal Funds Sold, and Short Term Investments | $ | 42,059 | $ | 51 | 0.24 | % | $ | 25,338 | $ | 31 | 0.25 | % | ||||||||||||||||||
| Securities: | ||||||||||||||||||||||||||||||
| Trading Assets | 2,745 | 38 | 2.78 | % | 8,363 | 134 | 3.23 | % | ||||||||||||||||||||||
| Taxable Investment Securities | 537,572 | 8,904 | 3.33 | % | 562,582 | 10,717 | 3.84 | % | ||||||||||||||||||||||
| Nontaxable Investment Securities (1) | 2,216 | 88 | 7.99 | % | 9,388 | 351 | 7.54 | % | ||||||||||||||||||||||
| Total Securities: | 542,533 | 9,030 | 3.35 | % | 580,333 | 11,202 | 3.89 | % | ||||||||||||||||||||||
| Loans Held for Sale | 18,634 | 286 | 3.09 | % | 11,409 | 189 | 3.34 | % | ||||||||||||||||||||||
| Loans: | ||||||||||||||||||||||||||||||
| Commercial and Industrial | 599,726 | 12,196 | 4.09 | % | 518,081 | 11,111 | 4.32 | % | ||||||||||||||||||||||
Commercial Real Estate (1) | 1,872,531 | 45,706 | 4.91 | % | 1,768,433 | 46,815 | 5.34 | % | ||||||||||||||||||||||
| Commercial Construction | 146,178 | 3,121 | 4.29 | % | 126,139 | 2,892 | 4.62 | % | ||||||||||||||||||||||
| Small Business | 79,515 | 2,268 | 5.74 | % | 80,058 | 2,329 | 5.87 | % | ||||||||||||||||||||||
| Total Commercial | 2,697,950 | 63,291 | 4.72 | % | 2,492,711 | 63,147 | 5.11 | % | ||||||||||||||||||||||
| Residential Real Estate | 401,991 | 8,733 | 4.37 | % | 462,870 | 10,567 | 4.60 | % | ||||||||||||||||||||||
| Residential Construction | 13,331 | 291 | 4.39 | % | 4,126 | 98 | 4.79 | % | ||||||||||||||||||||||
| Consumer - Home Equity | 737,735 | 13,599 | 3.71 | % | 614,800 | 11,542 | 3.79 | % | ||||||||||||||||||||||
| Total Consumer Real Estate | 1,153,057 | 22,623 | 3.95 | % | 1,081,796 | 22,207 | 4.14 | % | ||||||||||||||||||||||
| Total Other Consumer | 36,479 | 1,500 | 8.27 | % | 60,157 | 2,328 | 7.80 | % | ||||||||||||||||||||||
| Total Loans | 3,887,486 | 87,414 | 4.52 | % | 3,634,664 | 87,682 | 4.86 | % | ||||||||||||||||||||||
| Total Interest-Earning Assets | $ | 4,490,712 | $ | 96,781 | 4.33 | % | $ | 4,251,744 | $ | 99,104 | 4.70 | % | ||||||||||||||||||
| Cash and Due from Banks | 60,965 | 54,084 | ||||||||||||||||||||||||||||
| Federal Home Loan Bank Stock | 34,420 | 35,854 | ||||||||||||||||||||||||||||
| Other Assets | 365,073 | 321,350 | ||||||||||||||||||||||||||||
| Total Assets | $ | 4,951,170 | $ | 4,663,032 | ||||||||||||||||||||||||||
| Interest-bearing Liabilities: | ||||||||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||||||
| Savings and Interest Checking Accounts | $ | 1,453,672 | $ | 1,384 | 0.19 | % | $ | 1,327,759 | $ | 1,610 | 0.24 | % | ||||||||||||||||||
| Money Market | 784,861 | 1,260 | 0.32 | % | 723,644 | 1,600 | 0.45 | % | ||||||||||||||||||||||
| Time Deposits | 626,864 | 2,782 | 0.89 | % | 671,409 | 3,819 | 1.15 | % | ||||||||||||||||||||||
| Total interest-bearing deposits: | $ | 2,865,397 | $ | 5,426 | 0.38 | % | $ | 2,722,812 | $ | 7,029 | 0.52 | % | ||||||||||||||||||
| Borrowings: | ||||||||||||||||||||||||||||||
| Federal Home Loan Bank and Other Borrowings | $ | 223,105 | $ | 2,624 | 2.37 | % | $ | 308,709 | $ | 3,653 | 2.39 | % | ||||||||||||||||||
| Wholesale Repurchase Agreements | 50,000 | 578 | 2.32 | % | 50,000 | 1,043 | 4.21 | % | ||||||||||||||||||||||
| Customer Repurchase Agreements | 152,226 | 193 | 0.25 | % | 129,918 | 265 | 0.41 | % | ||||||||||||||||||||||
| Junior Subordinated Debentures | 61,857 | 1,838 | 5.98 | % | 61,857 | 1,816 | 5.92 | % | ||||||||||||||||||||||
| Subordinated Debentures | 30,000 | 1,083 | 7.26 | % | 30,000 | 1,077 | 7.24 | % | ||||||||||||||||||||||
| Total Borrowings | $ | 517,188 | $ | 6,316 | 2.46 | % | $ | 580,484 | $ | 7,854 | 2.73 | % | ||||||||||||||||||
| Total Interest-Bearing Liabilities | $ | 3,382,585 | $ | 11,742 | 0.70 | % | $ | 3,303,296 | $ | 14,883 | 0.91 | % | ||||||||||||||||||
| Demand Deposits | 1,004,251 | 850,918 | ||||||||||||||||||||||||||||
| Other Liabilities | 83,516 | 59,201 | ||||||||||||||||||||||||||||
| Total Liabilities | $ | 4,470,352 | $ | 4,213,415 | ||||||||||||||||||||||||||
| Stockholders' Equity | 480,818 | 449,617 | ||||||||||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 4,951,170 | $ | 4,663,032 | ||||||||||||||||||||||||||
| Net Interest Income | $ | 85,039 | $ | 84,221 | ||||||||||||||||||||||||||
| Interest Rate Spread (2) | 3.64 | % | 3.79 | % | ||||||||||||||||||||||||||
| Net Interest Margin (3) | 3.81 | % | 3.99 | % | ||||||||||||||||||||||||||
| Supplemental Information: | ||||||||||||||||||||||||||||||
| Total Deposits, including Demand Deposits | $ | 3,869,648 | $ | 5,426 | $ | 3,573,730 | $ | 7,029 | ||||||||||||||||||||||
| Cost of Total Deposits | 0.28 | % | 0.40 | % | ||||||||||||||||||||||||||
| Total Funding Liabilities, including Demand Deposits | $ | 4,386,836 | $ | 11,742 | $ | 4,154,214 | $ | 14,883 | ||||||||||||||||||||||
| Cost of Total Funding Liabilities | 0.54 | % | 0.72 | % | ||||||||||||||||||||||||||
| (1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $559 and $672 for the six months ended June 30, 2012 and 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. | |
| Certain amounts in prior year financial statement have been reclassified to conform to the current year's presentation. | |
Contacts:
Chris Oddleifson, 781-982-6660
President
and Chief Executive Officer
or
Denis K. Sheahan,
781-982-6341
Chief Financial Officer
