SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
Commission File Number: 1-9047
Independent Bank Corp.
(Exact name of registrant as specified in its charter)
Massachusetts 04-2870273
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
288 Union Street, Rockland, Massachusetts 02370
(Address of principal executive offices, including zip code)
(617) 878-6100
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
As of May 1,1997 there were 14,624,387 shares of the issuer's common
stock outstanding.
<PAGE>
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets - March 31, 1997 and
December 31, 1996
Consolidated Statements of Income - Three months ended March 31,
1997 and 1996
Consolidated Statements of Cash Flows - Three months ended
March 31, 1997 and 1996
Notes to Consolidated Financial Statements - March 31, 1997
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
<PAGE>
PART 1 FINANCIAL INFORMATION
Item 1. Financial Statements
- ----------------------------
INDEPENDENT BANK CORP.
CONSOLIDATED BALANCE SHEETS
(Unaudited - in thousands)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1997 1996
---------------------------------------
<S> <C> <C>
ASSETS
Cash and Due From Banks $47,867 $52,836
Federal Funds Sold and Assets Purchased Under Resale Agreements 2,911 650
Securities Held To Maturity 301,182 290,894
Securities Available For Sale 23,420 26,449
Federal Home Loan Bank Stock 8,043 7,558
Loans, Net of Unearned Discount 715,714 695,406
Less: Reserve for Possible Loan Losses (12,146) (12,221)
- -------------------------------------------------------------------------------------------------------------
Net Loans 703,568 683,185
- -------------------------------------------------------------------------------------------------------------
Bank Premises and Equipment 11,185 10,642
Other Real Estate Owned 546 271
Other Assets 20,045 20,308
- -------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $1,118,767 $1,092,793
=============================================================================================================
LIABILITIES
Deposits
Demand Deposits $164,621 $176,887
Savings and NOW Accounts 252,966 257,819
Money Market and Super NOW Accounts 101,797 107,084
Time Certificates of Deposit over $100,000 46,830 45,866
Other Time Deposits 343,156 330,916
- -------------------------------------------------------------------------------------------------------------
Total Deposits 909,370 918,572
- -------------------------------------------------------------------------------------------------------------
Federal Funds Purchased and Assets
Sold Under Repurchase Agreements 23,512 840
Federal Home Loan Bank Borrowings 83,000 78,000
Treasury Tax and Loan Notes 4,225 2,296
Other Liabilities 15,752 11,975
- -------------------------------------------------------------------------------------------------------------
Total Liabilities 1,035,859 1,011,683
- -------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY
Common Stock, $.01 par value Authorized: 30,000,000 Shares
Outstanding: 14,621,887 Shares at March 31, 1997
and 14,604,501 at December 31, 1996 146 146
Surplus 44,494 44,433
Retained Earnings 38,493 36,666
Unrealized Loss on Securities Available For Sale, Net of Tax (225) (135)
- -------------------------------------------------------------------------------------------------------------
Total Stockholders' Equity 82,908 81,110
- -------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $1,118,767 $1,092,793
=============================================================================================================
</TABLE>
<PAGE>
INDEPENDENT BANK CORP.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - in thousands)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31, MARCH 31,
1997 1996
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
INTEREST INCOME
Interest on Loans $15,230 $14,157
Interest and Dividends on Securities 5,369 4,324
Interest on Federal Funds Sold
and Repurchase Agreements 27 78
Interest on Interest Bearing Deposits 0 5
- ---------------------------------------------------------------------------------------------------
Total Interest Income 20,626 18,564
- ---------------------------------------------------------------------------------------------------
INTEREST EXPENSE
Interest on Deposits 7,383 6,879
Interest on Borrowed Funds 1,416 820
- ---------------------------------------------------------------------------------------------------
Total Interest Expense 8,799 7,699
- ---------------------------------------------------------------------------------------------------
Net Interest Income 11,827 10,865
- ---------------------------------------------------------------------------------------------------
PROVISION FOR POSSIBLE LOAN LOSSES 500 250
- ---------------------------------------------------------------------------------------------------
Net Interest Income After Provision
For Possible Loan Losses 11,327 10,615
- ---------------------------------------------------------------------------------------------------
NON-INTEREST INCOME
Service Charges on Deposit Accounts 1,426 1,389
Trust and Investment Services Income 731 623
Mortgage Banking Income 667 724
Other Non-Interest Income 333 407
- ---------------------------------------------------------------------------------------------------
Total Non-Interest Income 3,157 3,143
- ---------------------------------------------------------------------------------------------------
NON-INTEREST EXPENSES
Salaries and Employee Benefits 4,671 5,455
Occupancy Expenses 953 878
Equipment Expenses 684 644
Other Non-Interest Expenses 3,480 2,710
- ---------------------------------------------------------------------------------------------------
Total Non-Interest Expenses 9,788 9,687
- ---------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 4,696 4,071
PROVISION FOR INCOME TAXES 1,699 1,494
- ---------------------------------------------------------------------------------------------------
NET INCOME $2,997 $2,577
===================================================================================================
NET INCOME PER SHARE $0.20 $0.18
===================================================================================================
Weighted average common and common
equivalent shares outstanding 14,887,141 14,688,060
===================================================================================================
</TABLE>
<PAGE>
INDEPENDENT BANK CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - in thousands)
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31,
1997 1996
------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income 2,997 2,577
ADJUSTMENTS TO RECONCILE NET INCOME TO
NET CASH PROVIDED FROM OPERATING ACTIVITIES:
Depreciation and amortization 939 821
Provision for loan losses 500 250
Loans originated for resale (10,208) (11,104)
Proceeds from mortgage loan sales 10,213 11,118
Gain (loss) on sale of mortgages 5 (14)
Gain on origination of mortgage servicing rights FAS 122 (88) (115)
Changes in assets and liabilities:
Decrease in other assets 72 456
Increase in other liabilities 3,722 3,732
- ------------------------------------------------------------------------------------------------------------------
TOTAL ADJUSTMENTS 5,155 5,144
- ------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED FROM OPERATING ACTIVITIES 8,152 7,721
- ------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of Investment
Securities 13,631 24,833
Purchase of Investment Securities (21,788) (56,094)
Net increase in Loans (21,015) (19,175)
Proceeds from sale of OREO -- 188
Investment in Bank Premises and Equipment (1,126) (719)
- ------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED USED IN INVESTING ACTIVITIES (30,298) (50,967)
- ------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net decrease in Deposits (9,202) (40,109)
Net increase in Federal Funds Purchased
and Assets Sold Under Repurchase Agreements 22,672 27,959
Net increase in FHLB Borrowings 5,000 16,500
Net increase in TT&L Notes 1,929 124
Net decrease in Capital Notes -- (9)
Dividends Paid (1,022) (725)
Proceeds from stock issuance 61 120
- ------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED FROM FINANCING ACTIVITIES 19,438 3,860
NET DECREASE IN CASH AND CASH EQUIVALENTS (2,708) (39,386)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 53,486 80,354
- ------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AS OF MARCH 31, 50,778 40,968
==================================================================================================================
</TABLE>
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments considered
necessary for a fair presentation of the financial statements, primarily
consisting of normal recurring adjustments, have been included. Operating
results for the three month period ended March 31, 1997 are not necessarily
indicative of the results that may be expected for the year ended December 31,
1997 or any other interim period. For further information, refer to the
consolidated financial statements and footnotes thereto included in the
Company's annual report on Form 10-K for the year ended December 31, 1996.
RECENT ACCOUNTING DEVELOPMENTS
The Financial Accounting Standards Board (FASB) issued Statement 128,
Earnings per Share (EPS) in the first quarter of 1997. Statement 128 is
effective for financial statements for both interim and annual periods ending
after December 15, 1997. Statement 128 simplifies the calculation of EPS and
replaces primary EPS with basic EPS. Basic EPS is computed by dividing reported
earnings available to common stockholders by the weighted average shares
outstanding. Fully diluted EPS has been modified and replaced with diluted EPS.
Early application is prohibited, although the footnote disclosure of pro forma
EPS amounts computed under the new Statement is permitted.
The pro forma impact of Statement 128 is shown below:
Quarter Ended March 31
1997 1996
Net Income
$2,997 $2,577
============== ============
Primary:
Weighted average shares (Basic) 14,614,757 14,523,073
Common stock equivalents 272,384 164,987
-------------- ------------
Primary weighted average shares 14,887,141 14,688,060
============== ============
Primary earnings per share reported $0.20 $0.18
============== ============
Proforma basic earnings per share $0.21 $0.18
============== ============
Proforma diluted earnings per share $0.20 $0.18
============== ============
<PAGE>
Item 2. Management's' Discussion and Analysis of Financial Condition and
Results of Operations
- ------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FOR THE QUARTER ENDED MARCH 31, 1997
SUMMARY
For the three months ended March 31, 1997, Independent Bank Corp. (the
Company) recorded net income of $2.99 million, or $0.20 per share, compared with
net income of $2.6 million, or $0.18 per share, for the same period last year.
This improvement in 1997 is primarily due to increased net interest income.
Interest income associated with loan growth and increased purchases of
investment securities, primarily offset by interest expense on increased
deposits , contributed to an increase in net interest income of $962,000 to
$11.8 million in 1997 from $10.9 million in 1996. The provision for loan losses
increased to $500,000 for the first three months of 1997 compared with $250,000
for the same period last year. Non-interest income and expense were relatively
unchanged.
The annualized consolidated returns on average equity and average
assets for the first three months of 1997 were 14.55% and 1.09%, respectively.
This compares to annualized consolidated returns on average equity and average
assets for the first three months of 1996 of 14.05% and 1.06%, respectively.
As of March 31, 1997, total assets amounted to $1.1 billion, an
increase of $26.0 million over the 1996 year end balance. Loans, net of unearned
discount, increased $20.3 million, or 2.9%, since year end 1996 with growth in
the real estate and installment loan categories. Deposit balances have decreased
by $9.2 million since year end 1996, reflecting normal seasonal fluctuations.
Loan demand and an increase in the investment portfolio were funded with
borrowings and repurchase agreements.
Nonperforming assets totaled $4.8 million as of March 31, 1997 compared
to $4.7 million at December 31, 1996. Nonperforming assets for both periods
represent 43 basis points of total assets.
NET INTEREST INCOME
The discussion of net interest income which follows is presented on a
fully tax-equivalent basis. Net interest income for the three months ended March
31, 1997, amounted to $11.9 million, an increase of $931,000, or 8.5%, from the
comparable 1996 time frame. The Company's interest rate spread (the difference
between the weighted average yield on interest-earning assets and the weighted
average cost of interest-bearing liabilities) decreased by 11 basis points. This
is due to the Company's decision to expand the securities portfolio in addition
to recording strong loan growth, financed by borrowings, repurchase agreements
and consumer certificates of deposit, to take advantage of a strong capital
position. While these funding and investment actions increased net interest
income, the net interest margin ( net interest income as a percent of average
interest earning assets) reflects the lower net interest spread on such
transactions.
<PAGE>
The average balance of interest-earning assets for the first three
months of 1997 was $119.1 million, or 13.0%, higher than the comparable 1996
time frame, while the average balance of interest-bearing liabilities was $113.5
million, or 15.5%, higher. The Company's net interest margin for the first three
months of 1997 was 4.60% as compared to 4.79% for the comparable 1996 time
frame.
Income from interest-earning assets amounted to $20.7 million for the
three months ended March 31, 1997, an increase of $2.0 million, or 10.9%, from
the first three months of 1996. The average balance of taxable investment
securities increased by $56.5 million and the average balance of loans, net of
unearned discount, increased $68.0 million, or 10.7% resulting from increases in
both the residential and commercial real estate portfolios and indirect
automobile lending.
Interest income is impacted by changes in market rates of interest due
to variable and floating rate loans in the Company's portfolio. At March 31,
1997, loans having interest rates which adjust in accordance with changes in the
Company's base lending rate or other market indices amounted to approximately
$243.6 million, or 34.0% of loans, net of unearned discount.
Interest income is also impacted by the amount of non-performing loans.
The amount of interest due, but not recognized, on non-performing loans amounted
to approximately $81,000 for the three months ended March 31, 1997, compared to
$126,000 for the three months ended March 31, 1996.
Average interest bearing deposits increased by $62.8 million, or 9.3%,
for the first three months of 1997 over the same period last year, primarily in
the consumer certificate of deposit category. For the three months ended March
31, 1997, average borrowings were $50.7 million, or 93.0%, higher than the first
three months of 1996. Interest expense on deposits and borrowings increased by
$1.1 million, or 14.3%, to $8.8 million in the first quarter of 1997 as compared
to the same period last year.
PROVISION FOR POSSIBLE LOAN LOSSES
The provision for possible loan losses represents the charge to expense
that is required to fund the reserve for possible loan losses. The level of the
reserve for possible loan losses is determined by management of the Company
based upon known and anticipated circumstances and conditions. An analysis of
individual loans and the overall risk characteristics and size of the different
loan portfolios is conducted on an ongoing basis. In addition, the Company
considers industry trends, regional and national economic conditions, past
estimates of possible losses as compared to actual losses, and historical loss
patterns. Management assesses the adequacy of the reserve for possible loan
losses and reviews that assessment quarterly with the Board of Directors.
For the three months ended March 31, 1997, Management increased the
provision for possible loan losses, consistent with the level of loan growth
experienced, to $500,000 as compared to $250,000 for the same period last year.
For the first three months of 1997, loans charged-off, net of recoveries of
loans previously charged-off, amounted to $574,000 as compared to $360,000 for
the comparable 1996 time frame.
As of March 31, 1997, the ratio of the reserve for possible loan losses
to loans, net of unearned discount, was 1.70%, as compared to the 1996 year-end
level of 1.76%. The ratio of the reserve for possible loan losses to
non-performing loans was 283.3% at March 31, 1997, higher than the 273.9%
coverage recorded at year end.
<PAGE>
NON-INTEREST INCOME
Non-interest income for the three months ended March 31, 1997 was $3.2
million, compared to $3.1 million for the same period in 1996. Income from Trust
and Financial Services increased by $108,000, or 17.3%, due to an increase in
funds under management and a strong securities market. The March 1996 quarter
included a non-recurring recovery of $95,000 associated with a former real
estate owned property.
NON-INTEREST EXPENSES
Non-interest expenses totaled $9.8 million for the three months ended
March 31, 1997, a $101,000 increase from the comparable 1996 period. Salaries
and employee benefits decreased by $784,000, or 14.4%. As previously reported,
in connection with a change in the Bank's pension plan which was effective
January 1, 1997, the Corporation recognized $394,000 of previously accrued
pension liability as a credit to salaries and benefits during the quarter. As a
result of this change in the Bank's pension plan to a defined contribution plan,
no pension expense was recognized in the first quarter of 1997. The remainder of
the decrease in salaries and employee benefits is due to the transfer of
sixty-nine employees to the Company's third party data processing provider, as a
result of a facilities management agreement enacted in the first quarter last
year.
Other non-interest expenses for the first three months of 1997
increased $770,000 to $3.5 million from $2.7 million in the first quarter of
1996. This increase is associated with the data processing conversion completed
in the first quarter of 1997 and is due to a combination of conversion costs and
a full quarter of the data processing facilities management fee in 1997.
INCOME TAXES
The Company records income tax expense pursuant to Statement of
Financial Accounting Standards No. 109, "Accounting For Income Taxes". The
Company evaluates the deferred tax asset and the valuation reserve on a
quarterly basis. The Company's effective tax rates for the three months ended
March 31, 1997 and 1996 were 36.2% and 36.7% respectively.
ASSET/LIABILITY MANAGEMENT
The principal objective of the Company's asset/liability management
strategy is to reduce the vulnerability of the Company to changes in interest
rates. This is accomplished by managing the volume of assets and liabilities
maturing, or subject to repricing, and by adjusting rates in relation to market
conditions to influence volumes and spreads.
The effect of interest rate volatility on net interest income is
minimized when the interest sensitivity gap (the difference between assets and
liabilities that reprice within a given time period) is the smallest. Given the
inherent uncertainty of future interest rates, Rockland Trust Company's (the
Bank or Rockland) Asset/Liability Management Committee evaluates the interest
sensitivity gap and executes strategies, which may include off-balance sheet
activities, in an effort to minimize the Company's exposure to interest rate
movements while providing adequate earnings in the most plausible future
interest rate environments.
<PAGE>
Beginning in 1992, Rockland entered into interest rate swap agreements
as a hedge against stable or declining interest rates. As of March 31, 1997, the
Bank had interest rate swap agreements with a total notional value of $90
million. These swaps were arranged through two international banking
institutions and have initial maturities ranging from three to five years. The
Bank receives fixed rate payments and pays a variable rate of interest tied to
3-month LIBOR.
In May 1995, Rockland also purchased two 2-year interest rate caps with
a total notional value of $70 million. The caps will pay the Bank the difference
between LIBOR and the cap level if LIBOR exceeds the cap level at any of the
quarterly reset dates. If LIBOR remains below the cap level, no payment is made
to the Bank.
LIQUIDITY AND CAPITAL
Liquidity, as it pertains to the Company, is the ability to generate
cash in the most economical way, in order to meet ongoing obligations to pay
deposit withdrawals and to fund loan commitments. The Company's primary sources
of funds are deposits, borrowings, and the amortization, prepayment, and
maturities of loans and investments.
A strong source of liquidity is the Company's core deposits, those
deposits which management considers, based on experience, not likely to be
withdrawn in the near term. The Company utilizes its extensive branch banking
network to attract retail customers who provide a stable source of core
deposits. The Company has established five repurchase agreements with major
brokerage firms as potential sources of liquidity. On March 31, 1997 the Company
had $23.5 million outstanding under such lines. In addition, as a member of the
Federal Home Loan Bank, Rockland has access to approximately $400 million of
borrowing capacity. At March 31, 1997, the Company had $83 million outstanding
under such lines. The Company actively manages its liquidity position under the
direction of the Bank's Asset/Liability Management Committee. Periodic review
under formal policies and procedures is intended to ensure that the Company will
maintain access to adequate levels of available funds. At March 31, 1997, the
Company's liquidity position was well above policy guidelines.
CAPITAL RESOURCES AND DIVIDENDS
The Company and Rockland are subject to capital requirements
established by the Federal Reserve Board and the FDIC, respectively. One key
measure of capital adequacy is the risk-based ratio for which the regulatory
agencies have established minimum requirements of 4.00% and 8.00% for Tier 1
risk-based capital and total risk-based capital, respectively. As of March 31,
1997, the Company had a Tier 1 risked-based capital ratio of 10.83% and a total
risked-based capital ratio of 12.08%. Rockland had a Tier 1 risked-based capital
ratio of 10.65% and a total risked-based capital ratio of 11.90% as of the same
date.
An additional capital requirement of a minimum 4.00% Tier 1 leverage
capital is mandated by the regulatory agencies. As of March 31, 1997, the
Company and the Bank had Tier 1 leverage capital ratios of 7.33% and 7.20%,
respectively.
In March, the Company's Board of Directors declared a cash dividend of
$.08 per share to shareholders of record as of March 28, 1997. This dividend was
paid on April 11, 1997. On an annualized basis, the dividend payout ratio
amounted to 40.3% of the trailing four quarters earnings.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information
The financial information detailed below is included
hereafter in this report:
Consolidated Statements of Changes in Stockholders' Equity
Three months ended March 31, 1997 and the year ended
December 31, 1996
Consolidated Average Balance Sheet and Average Rate Data
Three months ended March 31, 1997 and 1996.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
No Page
-- ----
27 Financial Data Schedule E-1
(b) Reports on Form 8-K
The Company did not file any reports on Form 8-K
during the quarter ended March 31, 1997.
<PAGE>
INDEPENDENT BANK CORP.
CONSOLIDATED STATEMENTS OF CHANGES
IN STOCKHOLDERS' EQUITY
(Unaudited - in thousands)
<TABLE>
<CAPTION>
UNREALIZED
GAIN (LOSS)
COMMON RETAINED INVESTMENTS
STOCK SURPLUS EARNINGS AVAILABLE TOTAL
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balance, January 1, 1996 145 43,777 28,710 (60) 72,572
Net Income 11,597 11,597
Dividends Declared (3,641) (3,641)
Common Stock Sold Under Dividend
Reinvestment & Stock Purchase Plan 1 497 498
Stock options Exercised 10,000 shares 105 105
Effect of sold options 54 54
Unrealized Gain (Loss) on Investments
Available for Sale (75) (75)
- --------------------------------------------------------------------------------------------------------------------------
Balance, December 31, 1996 146 44,433 36,666 (135) 81,110
==========================================================================================================================
Balance, January 1, 1997 146 44,433 36,666 (135) 81,110
Net Income 2,997 2,997
Dividends Declared (1,170) (1,170)
Stock Options Exercised 31,734 shares 61 61
Unrealized Gain (loss) on Investments
Available for Sale (90) (90)
- --------------------------------------------------------------------------------------------------------------------------
Balance, March 31, 1997 146 44,494 38,493 (225) 82,908
==========================================================================================================================
</TABLE>
<PAGE>
INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEET AND AVERAGE RATE DATA
(Unaudited - in thousands)
<TABLE>
<CAPTION>
AVERAGE INTEREST
OUTSTANDING EARNED/ AVERAGE
BALANCE PAID YIELD
FOR THE THREE MONTHS ENDED MARCH 31, 1997 1997 1997
------------ ------------ ------------
<S> <C> <C> <C>
Interest-Earning Assets
Taxable Investment Securities $323,950 $5,311 6.56%
Non-taxable Investment Securities 6,029 86 5.71%
Loans, net of Unearned Discount 703,318 15,282 8.69%
Federal Funds Sold and Assets
Purchased Under Resale Agreements 2,114 27 5.11%
Interest Bearing Deposits -- -- 0.00%
------------ --------- ---------
Total Interest-Earning Assets 1,035,411 $20,706 8.00%
========= =========
Cash and Due From Banks 44,451
Other Assets 18,284
------------
Total Assets 1,098,146
============
Interest-Bearing Liabilities
Savings and NOW Accounts $252,474 $1,343 2.13%
Money Market & Super NOW Accounts 104,716 710 2.71%
Other Time Deposits 382,626 5,330 5.57%
Federal Funds Purchased and Assets
Sold Under Repurchase Agreements 31,751 424 5.34%
Federal Home Loan Bank Borrowings 69,944 957 5.47%
Treasury Tax and Loan Notes 3,544 35 3.95%
Subordinated Capital Notes -- -- 0.00%
------------ --------- ---------
Total Interest-Bearing Liabilities 845,055 $8,799 4.16%
========= =========
Demand Deposits 157,649
Other Liabilities 13,028
Total Liabilities 1,015,732
------------
Stockholders' Equity $82,414
------------
Total Liabilities and Stockholders'
Equity $1,098,146
============
Net Interest Income $11,907
=========
Interest Rate Spread 3.83%
==========
Net Interest Margin 4.60%
==========
Interest income and yield are stated on a fully tax-equivalent basis.
The total amount of adjustment is $80 in 1997.
</TABLE>
<PAGE>
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEET AND AVERAGE RATE DATA
(Unaudited - in thousands)
<TABLE>
<CAPTION>
AVERAGE INTEREST
OUTSTANDING EARNED/ AVERAGE
BALANCE PAID YIELD
FOR THE THREE MONTHS ENDED MARCH 31, 1996 1996 1996
----------- -------- --------
<S> <C> <C> <C>
Interest-Earning Assets
Taxable Investment Securities $267,492 $4,245 6.35%
Non-taxable Investment Securities 7,686 114 5.93%
Loans, net of Unearned Discount 635,272 14,233 8.96%
Federal Funds Sold and Assets
Purchased Under Resale Agreements 5,539 78 5.63%
Interest Bearing Deposits 296 5 6.76%
----------- -------- --------
Total Interest-Earning Assets 916,285 $18,675 8.15%
======== ========
Cash and Due From Banks 44,016
Other Assets 14,133
------------
Total Assets 974,434
============
Interest-Bearing Liabilities
Savings and NOW Accounts $257,080 $1,385 2.15%
Money Market & Super NOW Accounts 102,628 706 2.75%
Other Time Deposits 317,357 4,788 6.03%
Federal Funds Purchased and Assets
Sold Under Repurchase Agreements 20,523 284 5.54%
Federal Home Loan Bank Borrowings 26,038 383 5.88%
Treasury Tax and Loan Notes 3,119 34 4.36%
Subordinated Capital Notes 4,840 119 9.83%
----------- -------- --------
Total Interest-Bearing Liabilities 731,585 $7,699 4.21%
=========== ======== ========
Demand Deposits 156,253
Other Liabilities 13,219
Total Liabilities 901,057
------------
Stockholders' Equity $73,377
------------
Total Liabilities and Stockholders' Equity $974,434
============
Net Interest Income $10,976
========
Interest Rate Spread 3.94%
========
Net Interest Margin 4.79%
========
</TABLE>
Interest income and yield are stated on a fully tax-equivalent basis. The
total amount of adjustment is $111 in 1996.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
INDEPENDENT BANK CORP.
(registrant)
Date: May 14, 1997 /s/ John F. Spence, Jr.
John F. Spence, Jr.
Chairman of the Board and
Chief Executive Officer
Date: May 14, 1997 /s/ Richard J. Seaman
Richard J. Seaman
Chief Financial Officer
and Treasurer
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SEC FORM
10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<EXCHANGE-RATE> 1
<CASH> 47,867
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 2,911
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 23,420
<INVESTMENTS-CARRYING> 301,182
<INVESTMENTS-MARKET> 296,118
<LOANS> 715,714
<ALLOWANCE> (12,146)
<TOTAL-ASSETS> 1,118,767
<DEPOSITS> 909,370
<SHORT-TERM> 110,737
<LIABILITIES-OTHER> 15,752
<LONG-TERM> 0
0
0
<COMMON> 146
<OTHER-SE> 82,762
<TOTAL-LIABILITIES-AND-EQUITY> 1,118,767
<INTEREST-LOAN> 15,230
<INTEREST-INVEST> 5,369
<INTEREST-OTHER> 27
<INTEREST-TOTAL> 20,626
<INTEREST-DEPOSIT> 7,383
<INTEREST-EXPENSE> 8,799
<INTEREST-INCOME-NET> 11,827
<LOAN-LOSSES> 500
<SECURITIES-GAINS> (8)
<EXPENSE-OTHER> 9,780
<INCOME-PRETAX> 4,696
<INCOME-PRE-EXTRAORDINARY> 4,696
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,997
<EPS-PRIMARY> .20
<EPS-DILUTED> .20
<YIELD-ACTUAL> 8.00
<LOANS-NON> 3,730
<LOANS-PAST> 557
<LOANS-TROUBLED> 1,401
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 12,221
<CHARGE-OFFS> 749
<RECOVERIES> 175
<ALLOWANCE-CLOSE> 12,146
<ALLOWANCE-DOMESTIC> 12,146
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
