By 288 Union Street, Rockland, MA 02370
INDEPENDENT BANK CORP. REPORTS 13% ANNUAL NET INCOME GROWTH Strong Results Fueled by Loan and Deposit Growth, Steady Asset QualityRockland, Massachusetts (January 19, 2012). Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced an increase in net income for the full year to
$45.4 million, an improvement of 12.9% compared to the prior year. Diluted earnings per share for
2011 were $2.12, an increase of 11.6% as compared to the year ago period. Net income for the fourth quarter of 2011 was $11.2 million, or $0.52 on a diluted earnings per share basis. The results of the fourth quarter 2011 represent a decrease of $0.04, or 7.1%, on a diluted per share basis as compared to the linked quarter results. These results include a $757,000 prepayment penalty during the fourth quarter that resulted in a $0.02 per share charge arising from the Company's use of excess cash to pay down borrowings.
Christopher Oddleifson, President and Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company, stated: "2011 was a strong year in terms of earnings, loan and deposit growth, and new customer acquisition. Rockland Trust continues to demonstrate that our focus on customer intimacy, combined with a disciplined credit culture, is a strategy that produces solid results. Consumers and businesses choose Rockland Trust for the personal service and innovative products our employees consistently provide."
BALANCE SHEET
Total assets of $5.0 billion at December 31, 2011 are up $70.5 million from the prior quarter and $274.5 million as compared to the year ago period.
Total loans rose to $3.8 billion at December 31, 2011, an increase of 7.6% from the prior quarter, on an annualized basis, and continue to be led by strong volumes in the commercial and home equity portfolios. For the full year, loans increased $238.7 million, or 6.7%. The Company has consistently generated steady loan growth, as companies continue to realize that Rockland Trust's high service and flexible solutions are an attractive alternative to national banks.
Deposits increased by 9.4%, on an annualized basis, to $3.9 billion at December 31, 2011, as compared to the prior quarter. For the full year, deposits increased $249.0 million, or 6.9%. Core deposits increased by $90.6 million to $3.2 billion during the linked quarter and grew to 83.5% of total deposits. The Company's cost of deposits continued its steady decline to 0.31%, down 6 basis points for the quarter, reflecting its emphasis on low cost deposits and deeper banking relationships. The Company continues to experience robust organic household growth as evidenced by the core deposit growth of 10.3% for the year ended December 31, 2011.
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The securities portfolio of $518.5 million decreased by $3.1 million during the quarter and decreased by 11.8% for the year as the Bank deployed cash flows from securities to support lending activities.
Stockholders' equity at December 31, 2011 increased by 1.7% to $469.1 million when compared to September 30, 2011. The Tier 1 leverage capital ratio at December 31, 2011 remained strong at 8.59%, maintaining the Company's well-capitalized position.
NET INTEREST INCOMENet interest income of $41.9 million was up slightly as compared to the prior quarter, driven by higher loan levels. The net interest margin in the fourth quarter of 2011 declined to 3.78%, as compared to 3.84% in the linked quarter, due to the decreasing yield on earning assets resulting from the sustained low interest rate environment. Additionally, the Company's overnight cash position was significantly higher on average during the fourth quarter, as compared to the linked quarter, further compressing the margin.
NON-INTEREST INCOMEThe Company recorded non-interest income of $14.3 million during the fourth quarter of 2011 which represents a $2.0 million, or 16.2%, increase from the prior quarter. Significant changes in non-interest income included the following:
