Independent Bank Corp. Reports Second Quarter 2006 Earnings.ROCKLAND Rockland, industrial town (1990 pop. 16,123), Plymouth co., E Mass.; settled 1673, set off from Abington and inc. 1874. There is light manufacturing. , Mass. -- Independent Bank Corp., (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : INDB), parent of Rockland Trust Company, today announced that net income for the quarter ended June June: see month. 30, 2006 was $8.3 million, an increase of 3.1% from the $8.0 million reported in the same period last year. On a per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share basis, net income for the quarter was $0.55, an increase of $0.03, or 5.8%, when compared to $0.52 for the quarter ended June 30, 2005. For the six months ended June 30, 2006, net income was $16.2 million and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $1.06, an increase of $239,000 or $0.03 diluted earnings per share as compared to net income of $16.0 million and diluted earnings per share of $1.03 for the six months ended June 30, 2005. Certain non-core items, such as the after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. impact of gains and losses on the sale of securities and the receipt of Bank Owned Life Insurance ("BOLI BOLI Bank-Owned Life Insurance BOLI Bureau of Labor and Industries ") proceeds, effected the computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. of earnings in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ") in both 2006 and 2005 as indicated by the following chart:
Three Months Six Months
Ended Ended
-------------- ----------------
June 30, June 30,
RECONCILIATION TABLE - NON-GAAP
FINANCIAL INFORMATION 2006 2005 2006 2005
------ ------ ------- -------
NET INCOME (GAAP) $8,290 $8,041 $16,194 $15,955
Add - Net Loss on
Sale of Securities,
net of tax - - 1,150 -
Less - Net Gain on
Sale of Securities,
net of tax - (177) - (400)
Less - BOLI Benefit
Proceeds - - (1,316) -
------- ------- -------- --------
NET OPERATING EARNINGS (NON-
GAAP) $8,290 $7,864 $16,028 $15,555
======= ======= ======== ========
Diluted Operating
Earnings Per Share $ 0.55 $ 0.51 $ 1.05 $ 1.00
======= ======= ======== ========
Excluding these non-core items, net operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before for the quarter and six months ended June 30, 2006 were $8.3 million and $16.0 million, respectively, an increase of 5.4% and 3.0% from the same periods in 2005. On a per diluted share basis, excluding non-core items, operating earnings per share for the quarter and six months ending June 30, 2006 were $0.55 and $1.05, respectively, an increase of $0.04, or 7.8%, and $0.05, or 5.0%, respectively from the comparable periods last year. Comparing the three months ending June 30, 2006 to the same period last year, net interest income decreased $535,000 or (2.0%) due to a smaller balance sheet, while net interest income for the six months ended June 30, 2006 decreased $96,000, or (0.2%) from the six months ended June 30, 2005. The net interest margin for both the three and six months ended June 30, 2006 was 3.89%, respectively, as compared to 3.84% for both the three and six months ended June 30, 2005. The net interest margin in the second quarter of 2006 was negatively impacted by the Federal Home Loan Bank of Boston's ("FHLBB FHLBB abbr. Federal Home Loan Bank Board ") decision to change the timing of its dividend declarations and payments on its stock, resulting in no dividend being declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. in the second quarter. The change resulted in the Company not recognizing an anticipated FHLBB dividend of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $330,000 during the second quarter of 2006, negatively impacting net interest income and pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta earnings by this amount. The FHLBB anticipates that a dividend will be paid and grossed up during the third quarter of 2006 effectively amounting to the paying of an amount equivalent to two quarterly dividends. As a result of continued strong asset quality and slowing loan growth, the provision for loan losses decreased by $755,000, or (68.3%), for the quarter ended June 30, 2006 as compared to the same period in 2005. Provision for loan losses for the six months ending June 30, 2006 was $1.1 million, a decrease of $935,000 compared to the same period in 2005, which covered net charge-offs by 1.2 times. The Company's allowance for loan losses was maintained at 1.31%, the same as the prior quarter. Non-interest income increased by $482,000, or 7.2%, and by $283,000, or 2.1%, during the three and six months ended June 30, 2006, respectively, as compared to the same periods in the prior year. Excluding losses and gains on the sale of securities and BOLI benefit proceeds, non-interest income grew by $1.4 million, or 10.6%, for the six months ended June 30, 2006, as compared to the same period in the prior year. --Service charges on deposit accounts increased by $387,000, or 12.2%, and by $834,000, or 13.6%, for the three and six months ended June 30, 2006, as compared to the same periods in 2005, primarily reflecting increased overdraft A check that is drawn on an account containing less money than the amount stated on the check. The term overdraft is also used in reference to the condition that exists when vouchers fees and debit card debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. interchange An interchange is a location where two things meet, usually perform some kind of exchange, and possibly go on their ways again. It is most commonly used in four contexts:
--Investment management revenue increased by $291,000, or 20.6%, and $408,000, or 15.4%, for the three and six months ended June 30, 2006, compared to the same periods in 2005 due to growth in managed assets. Assets under administration at June 30, 2006 were $715.8 million, an increase of $112.8 million, or 18.7%, as compared to June 30, 2005. --Mortgage banking income increased by $67,000, or 11.5%, and decreased by $44,000, or (2.9%), for the three and six months ended June 30, 2006, as compared to the same periods in 2005. The increase in the three month period ending June 30, 2006 is due to decreased prepayment speeds Prepayment speed Also called speed, the estimated rate at which mortgagors pay off their loans ahead of schedule, critical in assessing the value of mortgage pass-through securities. resulting in less amortization of the mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. asset. The decrease in the six month period is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to lower mortgage sales in 2006 as compared to 2005. The balance of the mortgage servicing asset is $2.7 million and loans serviced amounted to $314.8 million as of June 30, 2006. --There were no gains or losses on the sale of securities in the second quarter of 2006. There were, however, gains of $273,000 recorded in the second quarter of 2005. Net losses were recorded in the six months ended June 30, 2006 on the sale of securities of $1.8 million, and a gain of $616,000 was recorded in the six months ended June 30, 2005. --Other non-interest income decreased by $22,000, or (2.7%), and increased by $117,000, or 7.6%, for the three and six months ended June 30, 2006, as compared to the same periods in 2005. The year to date increase is primarily a result of improved checkbook revenue. Non-interest expense increased by $279,000, or 1.4%, and by $929,000, or 2.3%, for the three and six months ended June 30, 2006, as compared to the same periods in 2005. --Salaries and employee benefits decreased by $90,000, or (0.7%), and by $16,000, or (0.1%), for the three and six months ended June 30, 2006, as compared to the same periods in 2005. The decreases are largely attributable to reductions in staffing levels year over year of approximately 30 full time employees, partially offset by increases in pension expense. --Occupancy and equipment related expense decreased by $71,000, or (2.7%), and increased by $47,000, or 0.9%, for the quarter and year to date ending June 30, 2006, as compared to the same periods in 2005. The quarterly decrease in this expense is driven by decreased rent on leased property. The year to date increase is driven by the timing of equipment maintenance and repairs offset by a decrease in snow removal expense and decreased rent on leased property. --Data processing and facilities management The management of a user's computer installation by an outside organization. All operations including systems, programming and the datacenter can be performed by the facilities management organization on the user's premises. expense has increased $45,000, or 4.5%, and by $143,000, or 7.3%, for the three and six months ended June 30, 2006, compared to the same periods in 2005, largely as a result of contractual increases. --Other non-interest expenses increased by $395,000, or 8.6%, and by $755,000, or 8.3%, for the three and six months ended June 30, 2006, as compared to the same periods in the prior year. The increases are primarily attributable to increases in debit card and ATM processing expense attributable to increased transaction volume and new fraud detection services, as well as increased examination and audit fees, which are partially offset by lower advertising costs. Total assets decreased by $119.8 million, or (3.9%), from December December: see month. 31, 2005 to $2.9 billion at June 30, 2006. This decrease is due, in part, to fluctuations in cash levels as well as the impact of a flat treasury yield curve environment. As a result of this environment, management continues to decrease the Company's securities portfolio while focusing on the commercial and home equity lending categories. --Fed funds sold and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments decreased by $48.6 million, or (76.4%), during the six months ending June 30, 2006. --Securities decreased by $89.0 million, or (12.4%), during the six months ending June 30, 2006. This resulted mainly from the sale of $31.4 million in lower coupon A certificate evidencing the obligation to pay an installment of interest or a dividend that must be cut and presented to its issuer for payment when it is due. Coupons are usually attached to a document, such as a promissory note, bond, share of stock, or a bearer securities in the first quarter of 2006 and the decision not to reinvest re·in·vest tr.v. re·in·vest·ed, re·in·vest·ing, re·in·vests To invest (capital or earnings) again, especially to invest (income from securities or funds) in additional shares. $43.6 million of normal amortization on the portfolio year to date in the current rate environment. The ratio of securities to total assets as of June 30, 2006 was 21.5%, as compared to 23.6% at December 31, 2005 and 25.2% at June 30, 2005. --Total loans increased by $6.4 million, or 0.3%, during the six months ended June 30, 2006. Total commercial loans increased by $24.1 million, or 2.5%, as a result of a $26.0 million, or 3.8%, increase in commercial real estate loans. Consumer loans decreased $8.2 million, or (1.4%), with a decrease in the auto loan portfolio of $29.2 million, or (11.1%), offset by a $21.9 million, or 8.7%, increase in home equity lending. Business banking loans totaled $56.3 million, an increase of $4.9 million, representing growth of 9.6%, and residential loans decreased $14.5 million, or (3.3%), during the six months ended 2006. Total deposits of $2.2 billion at June 30, 2006 decreased $28.1 million, or (1.3%), compared to December 31, 2005, due to the competitive pricing environment. For the quarter ending June 30, 2006 deposits increased $57.7 million, or 2.7%. Borrowings decreased by $78.7 million, or (13.4%), during the six months ending June 30, 2006. Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. at June 30, 2006 totaled $216.2 million, as compared to $228.2 million at December 31, 2005. The Tier 1 leverage capital ratio at June 30, 2006 was 7.67%, maintaining the Company's well-capitalized position. As previously announced on January January: see month. 19, 2006 the Company's Board of Directors approved a common stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program. Under the program, the Company is authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. up to 800,000 shares of the Company's outstanding common stock. As of June 30, 2006 the Company had repurchased 711,836 shares of common stock at a weighted average share price of $30.94. Nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. totaled $4.9 million at June 30, 2006 (0.17% of total assets), as compared to $3.3 million (0.11% of total assets) reported at December 31, 2005. The allowance for loan losses increased to $26.8 million at June 30, 2006 compared to $26.6 million at December 31, 2005. The Company's allowance for loan losses covers non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. 5.4 times at June 30, 2006 and 8.0 times at December 31, 2005. On June 1, 2006, Rockland Trust Community Development Corporation II, a subsidiary of the Bank, was awarded $45 million of tax credit allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as authority under the federal New Markets Tax Credit Program. The award significantly enhances Rockland Trust's ability to make loans and provide financial assistance to qualified businesses and individuals in low-income low-in·come adj. Of or relating to individuals or households supported by an income that is below average. communities throughout southeastern Massachusetts Southeastern Massachusetts is a term that refers to those portions of Massachusetts which are, by their proximity, economically and culturally linked to Providence, Rhode Island as well as Boston. , Cape Cod Cape Cod, narrow peninsula of glacial origin, 399 sq mi (1,033 sq km), SE Mass., extending 65 mi (105 km) E and N into the Atlantic Ocean. It is generally flat, with sand dunes, low hills, and numerous lakes. , and Rhode Island Rhode Island, island, United States Rhode Island, island, 15 mi (24 km) long and 5 mi (8 km) wide, S R.I., at the entrance to Narragansett Bay. It is the largest island in the state, with steep cliffs and excellent beaches. . The award enables Independent Bank Corp. to acquire federal tax credits for capital contributions made to the community development subsidiary, for a period of at least seven years, up to the full amount of the award. Independent Bank Corp.'s overall tax credit will be equal to 39% of its total investment in the community development subsidiary, credited at a rate of 5% in each of the first 3 years and 6% in each of the final 4 years. Management has not yet determined when Rockland Trust will begin to make capital contributions to its community development subsidiary and consequently when the tax credits will be recognized. Christopher Oddleifson, President and Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company, stated, "I am pleased with our second quarter results. The 5.8% quarterly growth in diluted earnings per share is a testament to our continued focus on disciplined asset generation, rational deposit pricing and sound capital management. Our recently announced $45 million New Markets Tax Credit award will help Rockland Trust continue to strengthen the communities it serves and help increase lending opportunities in markets such as New Bedford, Massachusetts New Bedford is a city in Bristol County, Massachusetts, located about 51 miles (82 kilometers) south of Boston, 28 miles (45 kilometers) southeast of Providence, Rhode Island, and about 12 miles (19 kilometers) east of Fall River. and Rhode Island." Christopher Oddleifson, Denis Denis, king of Portugal: see Diniz. K. Sheahan Sheahan may refer to:
This page or section lists people with the surname , Chief Financial Officer, and Ferdinand Ferdinand, Prussian field marshal Ferdinand, 1721–92, Prussian field marshal, a prince of the house of Brunswick, known as Ferdinand, duke of Brunswick. T. Kelley Kelley may refer to any of the following: People
Independent Bank Corp.'s sole bank subsidiary, Rockland Trust Company, currently has $2.9 billion in assets. Rockland Trust Company is a full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " 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 UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, ("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 a 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.
INDEPENDENT BANK CORP. FINANCIAL SUMMARY
-----------------------------------------
(Unaudited - Dollars in Thousands)
CONSOLIDATED BALANCE SHEETS June 30, Dec. 31, $ %
2006 2005 Variance Change
----------------------------------------------------------------------
Assets
Cash and Due From Banks $ 75,337 $ 66,289 9,048 13.65%
Fed Funds Sold and Short Term
Investments 15,045 63,662 (48,617)-76.37%
Securities
Trading Assets 1,533 1,557 (24) -1.54%
Securities Available for
Sale 503,417 581,516 (78,099)-13.43%
Securities Held to Maturity 99,998 104,268 (4,270) -4.10%
Federal Home Loan Bank Stock 22,634 29,287 (6,653)-22.72%
--------------------------------------
Total Securities 627,582 716,628 (89,046)-12.43%
--------------------------------------
Loans
Commercial and Industrial 165,976 155,081 10,895 7.03%
Commercial Real Estate 709,230 683,240 25,990 3.80%
Commercial Construction 127,891 140,643 (12,752) -9.07%
Business Banking 56,288 51,373 4,915 9.57%
Residential Real Estate 410,468 428,343 (17,875) -4.17%
Residential Construction 8,038 8,316 (278) -3.34%
Residential Loans Held for
Sale 8,690 5,021 3,669 73.07%
Consumer - Home Equity 273,752 251,852 21,900 8.70%
Consumer - Auto 233,955 263,179 (29,224)-11.10%
Consumer - Other 52,913 53,760 (847) -1.58%
--------------------------------------
Total Loans 2,047,201 2,040,808 6,393 0.31%
Less - Allowance for Loan
Losses (26,811) (26,639) (172) 0.65%
--------------------------------------
Net Loans 2,020,390 2,014,169 6,221 0.31%
--------------------------------------
Bank Premises and Equipment 37,157 37,431 (274) -0.73%
Goodwill and Core Deposit
Intangible 56,697 56,858 (161) -0.28%
Other Assets 89,719 86,648 3,071 3.54%
--------------------------------------
Total Assets $2,921,927 $3,041,685 (119,758) -3.94%
======================================
Liabilities and Stockholders' Equity
Deposits
Demand Deposits $ 516,644 $ 511,920 4,724 0.92%
Savings and Interest
Checking Accounts 565,201 613,840 (48,639) -7.92%
Money Market 526,429 550,677 (24,248) -4.40%
Time Certificates of
Deposit 569,087 529,057 40,030 7.57%
--------------------------------------
Total Deposits 2,177,361 2,205,494 (28,133) -1.28%
--------------------------------------
Borrowings
Federal Home Loan Bank
Borrowings 340,419 417,477 (77,058)-18.46%
Fed Funds Purchased and
Assets Sold
Under Repurchase
Agreements 114,767 113,335 1,432 1.26%
Junior Subordinated
Debentures 51,546 51,546 - 0.00%
Treasury Tax and Loan
Notes 2,344 5,452 (3,108)-57.01%
--------------------------------------
Total Borrowings 509,076 587,810 (78,734)-13.39%
--------------------------------------
Total Deposits and Borrowings 2,686,437 2,793,304 (106,867) -3.83%
Other Liabilities 19,255 20,229 (974) -4.81%
Stockholders' Equity 216,235 228,152 (11,917) -5.22%
--------------------------------------
Total Liabilities and
Stockholders' Equity $2,921,927 $3,041,685 (119,758) -3.94%
======================================
INDEPENDENT BANK CORP. FINANCIAL SUMMARY
----------------------------------------
(Unaudited - Dollars in Thousands)
June 30,
2006 vs.
CONSOLIDATED BALANCE SHEETS March 31,
March 31, 2006 %
2006 Variance Change
------------------------------
Assets
Cash and Due From Banks $ 59,011 16,326 27.67%
Fed Funds Sold and Short Term
Investments 12,000 3,045 25.38%
Securities
Trading Assets 1,598 (65) -4.07%
Securities Available for Sale 523,315 (19,898) -3.80%
Securities Held to Maturity 103,818 (3,820) -3.68%
Federal Home Loan Bank Stock 29,287 (6,653) -22.72%
---------- --------- ---------
Total Securities 658,018 (30,436) -4.63%
---------- --------- ---------
Loans
Commercial and Industrial 163,024 2,952 1.81%
Commercial Real Estate 681,025 28,205 4.14%
Commercial Construction 139,557 (11,666) -8.36%
Business Banking 54,188 2,100 3.88%
Residential Real Estate 419,732 (9,264) -2.21%
Residential Construction 7,460 578 7.75%
Residential Loans Held for Sale 8,831 (141) -1.60%
Consumer - Home Equity 262,931 10,821 4.12%
Consumer - Auto 251,025 (17,070) -6.80%
Consumer - Other 52,819 94 0.18%
---------- --------- ---------
Total Loans 2,040,592 6,609 0.32%
Less - Allowance for Loan Losses (26,746) (65) 0.24%
---------- --------- ---------
Net Loans 2,013,846 6,544 0.32%
---------- --------- ---------
Bank Premises and Equipment 36,955 202 0.55%
Goodwill and Core Deposit Intangible 56,778 (81) -0.14%
Other Assets 87,375 2,344 2.68%
---------- --------- ---------
Total Assets $2,923,983 (2,056) -0.07%
========== ========= =========
Liabilities and Stockholders' Equity
Deposits
Demand Deposits $ 485,283 31,361 6.46%
Savings and Interest Checking
Accounts 576,126 (10,925) -1.90%
Money Market 532,007 (5,578) -1.05%
Time Certificates of Deposit 526,247 42,840 8.14%
---------- --------- ---------
Total Deposits 2,119,663 57,698 2.72%
---------- --------- ---------
Borrowings
Federal Home Loan Bank Borrowings 392,448 (52,029) -13.26%
Fed Funds Purchased and Assets
Sold
Under Repurchase Agreements 112,484 2,283 2.03%
Junior Subordinated Debentures 51,546 - 0.00%
Treasury Tax and Loan Notes 225 2,119 941.78%
---------- --------- ---------
Total Borrowings 556,703 (47,627) -8.56%
---------- --------- ---------
Total Deposits and Borrowings 2,676,366 10,071 0.38%
Other Liabilities 20,610 (1,355) -6.57%
Stockholders' Equity 227,007 (10,772) -4.75%
---------- --------- ---------
Total Liabilities and
Stockholders' Equity $2,923,983 (2,056) -0.07%
========== ========= =========
INDEPENDENT BANK CORP. FINANCIAL SUMMARY
----------------------------------------
(Unaudited - Dollars in Thousands,
Except Per Share Data)
CONSOLIDATED STATEMENTS OF INCOME Three Months Ended
--------------------------
June 30, Percent
2006 2005 Variance Change
------------------------------------------------------------- --------
INTEREST INCOME
Interest on Fed Funds Sold
and Short Term Investments $ 52 $ 36 16 44.44%
Interest and Dividends on
Securities 7,073 8,821 (1,748) -19.82%
Interest on Loans 34,082 29,769 4,313 14.49%
-------------------------------- --------
Total Interest Income 41,207 38,626 2,581 6.68%
-------------------------------- --------
INTEREST EXPENSE
Interest on Deposits 9,404 6,080 3,324 54.67%
Interest on Borrowed Funds 5,994 6,202 (208) -3.35%
-------------------------------- --------
Total Interest Expense 15,398 12,282 3,116 25.37%
-------------------------------- --------
Net Interest Income 25,809 26,344 (535) -2.03%
Less - Provision for
Loan Losses 350 1,105 (755) -68.33%
-------------------------------- --------
Net Interest Income after
Provision for Loan Losses 25,459 25,239 220 0.87%
-------------------------------- --------
NON-INTEREST INCOME
Service Charges on Deposit
Accounts 3,565 3,178 387 12.18%
Investment Management
Services Income 1,704 1,413 291 20.59%
Mortgage Banking Income 650 583 67 11.49%
BOLI Income 506 474 32 6.75%
Net Loss/Gain on Sale of
Securities - 273 (273) -100.00%
Other Non-Interest Income 797 819 (22) -2.69%
-------------------------------- --------
Total Non-Interest
Income 7,222 6,740 482 7.15%
-------------------------------- --------
NON-INTEREST EXPENSE
Salaries and Employee
Benefits 12,072 12,162 (90) -0.74%
Occupancy and Equipment
Expenses 2,526 2,597 (71) -2.73%
Data Processing and
Facilities Management 1,036 991 45 4.54%
Other Non-Interest Expense 5,012 4,617 395 8.56%
-------------------------------- --------
Total Non-Interest
Expense 20,646 20,367 279 1.37%
-------------------------------- --------
INCOME BEFORE INCOME TAXES 12,035 11,612 423 3.64%
-------------------------------- --------
PROVISION FOR INCOME TAXES 3,745 3,571 174 4.87%
-------------------------------- --------
NET INCOME $ 8,290 $ 8,041 249 3.10%
================================ ========
BASIC EARNINGS PER SHARE $ 0.55 $ 0.52 5.77%
DILUTED EARNINGS PER SHARE $ 0.55 $ 0.52 5.77%
BASIC AVERAGE SHARES 14,999,127 15,372,253 -2.43%
DILUTED AVERAGE SHARES 15,161,874 15,504,976 -2.21%
PERFORMANCE RATIOS:
------------------
Net Interest Margin (FTE) 3.89% 3.84% 1.30%
Return on Average Assets 1.14% 1.07% 6.54%
Return on Average Equity 14.90% 14.85% 0.34%
RECONCILIATION TABLE - NON-
GAAP FINANCIAL INFORMATION
----------------------------
NET INCOME (GAAP) $ 8,290 $ 8,041 249 3.10%
Add - Net
Loss on Sale
of
Securities,
net of tax - - - 0.00%
Less - Net
Gain on Sale
of
Securities,
net of tax - (177) 177 100.00%
Less - BOLI
Benefit
Proceeds - - - 0.00%
----------- ----------- --------
NET OPERATING
EARNINGS $ 8,290 $ 7,864 426 5.42%
=========== =========== ========
Diluted Earnings Per
Share (GAAP) $ 0.55 $ 0.52 5.77%
Add -
Effects of
Net Loss on
Sale of
Securities,
net of tax - -
Less -
Effects of
Net Gain on
Sale of
Securities,
net of tax - (0.01)
Less -
Effects of
BOLI Benefit
Proceeds - -
----------- -----------
Diluted Earnings Per
Share, on an
Operating Basis $ 0.55 $ 0.51 7.84%
=========== ===========
INDEPENDENT BANK CORP. FINANCIAL SUMMARY
----------------------------------------
(Unaudited - Dollars in Thousands,
Except Per Share Data)
CONSOLIDATED STATEMENTS OF INCOME Six Months Ended
--------------------------
June 30, Percent
2006 2005 Variance Change
-------------------------- --------
INTEREST INCOME
Interest on Fed Funds Sold
and Short Term Investments $ 152 $ 66 86 130.30%
Interest and Dividends on
Securities 14,971 17,638 (2,667) -15.12%
Interest on Loans 66,786 57,897 8,889 15.35%
-------------------------------- --------
Total Interest Income 81,909 75,601 6,308 8.34%
-------------------------------- --------
INTEREST EXPENSE
Interest on Deposits 17,864 11,333 6,531 57.63%
Interest on Borrowed Funds 11,929 12,056 (127) -1.05%
-------------------------------- --------
Total Interest Expense 29,793 23,389 6,404 27.38%
-------------------------------- --------
Net Interest Income 52,116 52,212 (96) -0.18%
Less - Provision for
Loan Losses 1,100 2,035 (935) -45.95%
-------------------------------- --------
Net Interest Income after
Provision for Loan Losses 51,016 50,177 839 1.67%
-------------------------------- --------
NON-INTEREST INCOME
Service Charges on Deposit
Accounts 6,983 6,149 834 13.56%
Investment Management
Services Income 3,059 2,651 408 15.39%
Mortgage Banking Income 1,468 1,512 (44) -2.91%
BOLI Income 2,250 897 1,353 150.84%
Net Loss/Gain on Sale of
Securities (1,769) 616 (2,385) -387.18%
Other Non-Interest Income 1,651 1,534 117 7.63%
-------------------------------- --------
Total Non-Interest
Income 13,642 13,359 283 2.12%
-------------------------------- --------
NON-INTEREST EXPENSE
Salaries and Employee
Benefits 23,937 23,953 (16) -0.07%
Occupancy and Equipment
Expenses 5,239 5,192 47 0.91%
Data Processing and
Facilities Management 2,096 1,953 143 7.32%
Other Non-Interest Expense 9,846 9,091 755 8.30%
-------------------------------- --------
Total Non-Interest
Expense 41,118 40,189 929 2.31%
-------------------------------- --------
INCOME BEFORE INCOME TAXES 23,540 23,347 193 0.83%
-------------------------------- --------
PROVISION FOR INCOME TAXES 7,346 7,392 (46) -0.62%
-------------------------------- --------
NET INCOME $ 16,194 $ 15,955 239 1.50%
================================ ========
BASIC EARNINGS PER SHARE $ 1.07 $ 1.04 2.88%
DILUTED EARNINGS PER SHARE $ 1.06 $ 1.03 2.91%
BASIC AVERAGE SHARES 15,159,252 15,359,374 -1.30%
DILUTED AVERAGE SHARES 15,318,724 15,508,024 -1.22%
PERFORMANCE RATIOS:
------------------
Net Interest Margin (FTE) 3.89% 3.84% 1.30%
Return on Average Assets 1.10% 1.07% 2.80%
Return on Average Equity 14.31% 14.86% -3.70%
RECONCILIATION TABLE - NON-
GAAP FINANCIAL INFORMATION
----------------------------
NET INCOME (GAAP) $ 16,194 $ 15,955 239 1.50%
Add - Net
Loss on Sale
of
Securities,
net of tax 1,150 - 1,150 100.00%
Less - Net
Gain on Sale
of
Securities,
net of tax - (400) 400 100.00%
Less - BOLI
Benefit
Proceeds (1,316) - (1,316) -100.00%
----------- ----------- --------
NET OPERATING
EARNINGS $ 16,028 $ 15,555 473 3.04%
=========== =========== ========
Diluted Earnings Per
Share (GAAP) $ 1.06 $ 1.03 2.91%
Add -
Effects of
Net Loss on
Sale of
Securities,
net of tax 0.08 -
Less -
Effects of
Net Gain on
Sale of
Securities,
net of tax - (0.03)
Less -
Effects of
BOLI Benefit
Proceeds (0.09) -
----------- -----------
Diluted Earnings Per
Share, on an
Operating Basis $ 1.05 $ 1.00 5.00%
=========== ===========
INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE Three Months Ended
SHEETS AND AVERAGE RATE DATA June 30,
---------------------------
(Unaudited - Dollars in Thousands) 2006
---------------------------
Interest
Ending Average Earned/ Yield/
Balance Balance Paid Rate
----------- ---------------------------
Interest-Earning Assets:
Federal Funds
Sold and Short
Term Investments$ 15,045 $ 4,005 $ 52 5.19%
Securities:
Trading Assets 1,533 1,597 6 1.50%
Taxable
Investment
Securities 569,129 582,922 6,405 4.40%
Non-taxable
Investment
Securities (1) 56,920 58,036 1,018 7.02%
---------- ----------------------------
Total
Securities: 627,582 642,555 7,429 4.62%
Loans (1) 2,047,201 2,051,032 34,177 6.67%
---------- ----------------------------
Total Interest-
Earning Assets $2,689,828 $2,697,592 $ 41,658 6.18%
---------- ----------------------------
Cash and Due from
Banks 75,337 58,671
Other Assets 156,762 152,569
---------- ----------
Total Assets $2,921,927 $2,908,832
========== ==========
Interest-bearing Liabilities:
Deposits:
Savings and
Interest
Checking
Accounts $ 565,201 $ 560,402 $ 999 0.71%
Money Market 526,429 520,827 3,505 2.69%
Time Deposits 569,087 549,066 4,900 3.57%
---------- ----------------------------
Total
interest-
bearing
deposits: 1,660,717 1,630,295 9,404 2.31%
Borrowings:
Federal Home Loan
Bank Borrowings $ 340,419 $ 383,200 $ 4,165 4.35%
Federal Funds
Purchased and
Assets Sold
Under
Repurchase
Agreement 114,767 107,927 699 2.59%
Junior
Subordinated
Debentures 51,546 51,546 1,117 8.67%
Treasury Tax and
Loan Notes 2,344 1,216 13 4.28%
---------- ----------------------------
Total
Borrowings: 509,076 543,889 5,994 4.41%
---------- ----------------------------
Total Interest-
Bearing Liabilities $2,169,793 $2,174,184 $ 15,398 2.83%
---------- ----------------------------
Demand Deposits 516,644 492,945
Other Liabilities 19,255 19,131
---------- ----------
Total
Liabilities $2,705,692 $2,686,260
Stockholders' Equity 216,235 222,572
---------- ----------
Total
Liabilities and
Stockholders'
Equity $2,921,927 $2,908,832
========== ==========
Net Interest Income $26,260
========
Interest Rate Spread (2) 3.35%
======
Net Interest Margin (2) 3.89%
======
Supplemental Information:
Total Deposits,
including Demand
Deposits $2,177,361 $2,123,240 $ 9,404
Cost of Total
Deposits 1.77%
Total Funding
Liabilities,
including Demand
Deposits $2,686,437 $2,667,129 $ 15,398
Cost of Total Funding
Liabilities 2.31%
INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE Three Months Ended
SHEETS AND AVERAGE RATE DATA June 30,
(Unaudited - Dollars ---------------------------
in Thousands) 2005
---------------------------
Interest
Average Earned/ Yield/
Balance Paid Rate
---------------------------
Interest-Earning Assets:
Federal Funds
Sold and Short
Term Investments $ 5,028 $ 36 2.86%
Securities:
Trading Assets 1,527 5 1.31%
Taxable
Investment
Securities 741,518 8,142 4.39%
Non-taxable
Investment
Securities (1) 62,444 1,037 6.64%
---------------------------
Total Securities: 805,489 9,184 4.56%
Loans (1) 1,983,148 29,855 6.02%
---------------------------
Total Interest-
Earning Assets $2,793,665 $ 39,075 5.59%
---------------------------
Cash and Due from Banks 65,267
Other Assets 144,838
----------
Total Assets $3,003,770
==========
Interest-bearing Liabilities:
Deposits:
Savings and Interest
Checking Accounts $ 597,232 $ 662 0.44%
Money Market 533,563 2,334 1.75%
Time Deposits 502,743 3,084 2.45%
---------------------------
Total
interest-bearing
deposits: 1,633,538 6,080 1.49%
Borrowings:
Federal Home Loan
Bank Borrowings $ 502,255 $ 4,804 3.83%
Federal Funds
Purchased and
Assets Sold
Under Repurchase
Agreement 69,992 270 1.54%
Junior
Subordinated
Debentures 51,546 1,118 8.68%
Treasury Tax and
Loan Notes 1,681 10 2.38%
---------------------------
Total Borrowings: 625,474 6,202 3.97%
---------------------------
Total Interest-
Bearing Liabilities $2,259,012 $ 12,282 2.17%
---------------------------
Demand Deposits 510,879
Other Liabilities 17,230
----------
Total Liabilities $2,787,121
Stockholders' Equity 216,649
----------
Total
Liabilities and
Stockholders'
Equity $3,003,770
==========
Net Interest Income $26,793
========
Interest Rate Spread (2) 3.42%
======
Net Interest Margin (2) 3.84%
======
Supplemental Information:
Total Deposits, including Demand
Deposits $2,144,417 $ 6,080
Cost of Total Deposits 1.13%
Total Funding Liabilities,
including Demand Deposits $2,769,891 $ 12,282
Cost of Total Funding Liabilities 1.77%
(1) The total amount of adjustment to present interest income and
yield on a fully tax-equivalent basis is $451 for the three
months ended June 30, 2006 and $449 for the three months ended
June 30, 2005.
(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 Six Months Ended
AVERAGE RATE DATA June 30,
--------------------------
(Unaudited - Dollars in Thousands) 2006
--------------------------
Interest
Ending Average Earned/ Yield/
Balance Balance Paid Rate
---------- --------------------------
Interest-Earning Assets:
Federal Funds Sold and Short
Term Investments $ 15,045 $ 6,914 $ 152 4.40%
Securities:
Trading Assets 1,533 1,576 19 2.41%
Taxable Investment
Securities 569,129 611,327 13,620 4.46%
Non-taxable Investment
Securities (1) 56,920 59,777 2,049 6.86%
---------- --------------------------
Total Securities: 627,582 672,680 15,688 4.66%
Loans (1) 2,047,201 2,047,030 66,975 6.54%
---------- --------------------------
Total Interest-Earning Assets $2,689,828 $2,726,624 $ 82,815 6.07%
---------- --------------------------
Cash and Due from Banks 75,337 59,840
Other Assets 156,762 151,456
---------- ----------
Total Assets $2,921,927 $2,937,920
========== ==========
Interest-bearing Liabilities:
Deposits:
Savings and Interest
Checking Accounts $ 565,201 $ 567,135 $ 1,908 0.67%
Money Market 526,429 533,091 6,852 2.57%
Time Deposits 569,087 543,292 9,104 3.35%
---------- --------------------------
Total interest-bearing
deposits: 1,660,717 1,643,518 17,864 2.17%
Borrowings:
Federal Home Loan Bank
Borrowings $ 340,419 $ 399,551 $ 8,331 4.17%
Federal Funds Purchased and
Assets Sold
Under Repurchase
Agreement 114,767 107,589 1,335 2.48%
Junior Subordinated
Debentures 51,546 51,546 2,235 8.67%
Treasury Tax and Loan Notes 2,344 1,329 28 4.21%
---------- --------------------------
Total Borrowings: 509,076 560,015 11,929 4.26%
---------- --------------------------
Total Interest-Bearing
Liabilities $2,169,793 $2,203,533 $ 29,793 2.70%
---------- --------------------------
Demand Deposits 516,644 489,490
Other Liabilities 19,255 18,544
---------- ----------
Total Liabilities $2,705,692 $2,711,567
Stockholders' Equity 216,235 226,353
---------- ----------
Total Liabilities and
Stockholders' Equity $2,921,927 $2,937,920
========== ==========
Net Interest Income $53,022
========
Interest Rate Spread (2) 3.37%
======
Net Interest Margin (2) 3.89%
======
Supplemental Information:
Total Deposits, including Demand
Deposits $2,177,361 $2,133,008 $ 17,864
Cost of Total Deposits 1.68%
Total Funding Liabilities,
including Demand Deposits $2,686,437 $2,693,023 $ 29,793
Cost of Total Funding
Liabilities 2.21%
INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEETS AND Six Months Ended
AVERAGE RATE DATA June 30,
---------------------------
(Unaudited - Dollars in Thousands) 2005
---------------------------
Interest
Average Earned/ Yield/
Balance Paid Rate
---------------------------
Interest-Earning Assets:
Federal Funds Sold and Short Term
Investments $ 4,957 $ 66 2.66%
Securities:
Trading Assets 1,549 16 2.07%
Taxable Investment Securities 740,721 16,283 4.40%
Non-taxable Investment Securities (1) 62,549 2,059 6.58%
---------------------------
Total Securities: 804,819 18,358 4.56%
Loans (1) 1,958,097 58,070 5.93%
---------------------------
Total Interest-Earning Assets $2,767,873 $ 76,494 5.53%
---------------------------
Cash and Due from Banks 63,450
Other Assets 142,710
----------
Total Assets $2,974,033
==========
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking
Accounts $ 597,979 $ 1,320 0.44%
Money Market 516,610 4,164 1.61%
Time Deposits 500,050 5,849 2.34%
---------------------------
Total interest-bearing deposits: 1,614,639 11,333 1.40%
Borrowings:
Federal Home Loan Bank Borrowings $ 505,597 $ 9,342 3.70%
Federal Funds Purchased and Assets
Sold
Under Repurchase Agreement 67,372 464 1.38%
Junior Subordinated Debentures 51,546 2,235 8.67%
Treasury Tax and Loan Notes 1,848 15 1.62%
---------------------------
Total Borrowings: 626,363 12,056 3.85%
---------------------------
Total Interest-Bearing Liabilities $2,241,002 $ 23,389 2.09%
---------------------------
Demand Deposits 501,041
Other Liabilities 17,217
----------
Total Liabilities $2,759,260
Stockholders' Equity 214,773
----------
Total Liabilities and Stockholders'
Equity $2,974,033
==========
Net Interest Income $53,105
========
Interest Rate Spread (2) 3.44%
======
Net Interest Margin (2) 3.84%
======
Supplemental Information:
Total Deposits, including Demand Deposits$2,115,680 $ 11,333
Cost of Total Deposits 1.07%
Total Funding Liabilities, including
Demand Deposits $2,742,043 $ 23,389
Cost of Total Funding Liabilities 1.71%
(1) The total amount of adjustment to present interest income and
yield on a fully tax-equivalent basis is $906 for the six
months ended June 30, 2006 and $893 for the six months ended
June 30, 2005.
(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
June 30, December 31,
Asset Quality 2006 2005
-------------- -------------------------
(Dollars in Thousands,
Except Per Share Data)
Nonperforming Loans $4,927 $3,339
Nonperforming Assets $4,927 $3,339
Net charge-offs (year to date) $927 $2,733
Net charge-offs to average loans
(annualized) 0.09% 0.14%
Loans 90 days past due & still accruing $383 $227
Nonperforming Loans/Gross Loans 0.24% 0.16%
Allowance for Loan Losses/Nonperforming
Loans 544.16% 797.81%
Loans/Total Deposits 94.02% 92.53%
Allowance for Loan Losses/Total Loans 1.31% 1.31%
Financial Ratios
----------------
Book Value per Share $14.65 $14.81
Tangible Capital/Tangible Asset 5.57% 5.74%
Tangible Capital/Tangible Asset
(proforma to include
the deductibility of goodwill) 6.07% 6.23%
Tangible Book Value per Share $10.81 $11.12
Tangible Book Value per Share
(proforma to include
the deductibility of goodwill) $11.80 $12.06
Capital Adequacy
----------------
Tier one leverage capital ratio (1) 7.67% 7.71%
(1) Estimated number for June 30, 2006
Certain amounts in prior year financial statement have been
reclassified to conform to the current year's presentation.
----------------------------------------------------------------------
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