ROCKLAND, Mass.--(BUSINESS WIRE)-- Independent Bank Corp. (NASDAQ: INDB), parent of Rockland Trust Company, today announced 2015 first quarter net income of $9.5 million, or $0.38 per diluted share as compared to $16.0 million, or $0.66 per diluted share in the prior quarter. The decrease in the Company’s earnings was largely attributable to merger and acquisition costs of $6.3 million, net of tax, recognized during the first quarter, relating to the February 20, 2015 acquisition of Peoples Federal Bancshares, Inc. (“Peoples”). When excluding these expenses and other items that the Company considers to be non-core, net operating earnings for the first quarter were $15.8 million, or $0.63 per diluted share, versus the prior quarter’s net operating earnings of $16.6 million, or $0.69 per diluted share, representing decreases of 4.5% and 8.7%, respectively.

“During the first quarter of 2015 we welcomed Peoples customers to Rockland Trust in a seamless manner due to superb teamwork on the part of many of my colleagues,” said Christopher Oddleifson, President and Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company. “Although the severe winter weather and competitive pressures made organic loan growth challenging, our asset quality remains pristine due to our credit underwriting discipline. Rockland Trust is stronger than ever and well positioned to take advantage of opportunities in Boston and the other markets we serve.”

PEOPLES ACQUISITION

The Peoples acquisition added eight full-service branches, $463.9 million in loans and $432.3 million in deposits, at fair value. Total consideration of $141.8 million was paid with stock and cash, with the Company issuing 2,052,137 shares of common stock and paying $55.4 million in cash, in the aggregate, to Peoples shareholders. The following table provides the purchase price allocation of net assets acquired for this transaction:

				Net Assets Acquired(at Fair Value)
				(Dollars in Thousands)
Assets:
Cash				$	41,957
Investments					43,585
Loans					463,927
Premises and Equipment					9,346
Goodwill					30,662
Core Deposit and Other Intangibles					3,936
Other Assets					46,920
Total Assets Acquired				$	640,333
Liabilities:
Deposits				$	432,250
Borrowings					51,209
Other Liabilities					15,054
Total Liabilities Assumed				$	498,513
Purchase Price				$	141,820

For further detail on the loans and deposits acquired, see the organic growth table provided in the financial schedules accompanying this release.

BALANCE SHEET

Total assets of $6.9 billion at March 31, 2015 increased by $546.2 million, or 8.6%, from the prior quarter and by $685.2 million, or 11.0%, as compared to the year ago period, inclusive of the acquisition of Peoples.

Inclusive of the Peoples acquisition, total loans at March 31, 2015 grew by $422.4 million, or 8.5% over the prior quarter and by $585.8 million, or 12.2% over the prior year period. On an organic basis, total loans declined slightly by $41.5 million, or 3.4% on an annualized basis in the first quarter. Growth in the commercial real estate, construction, and home equity portfolios was countered by declines in the commercial and industrial and residential loans portfolios as heightened competition and severe weather served to restrain loan closings and line utilization. Compared to a year ago, total loans grew organically by $121.9 million, or 2.5%.

Inclusive of the Peoples acquisition, total deposits at March 31, 2015 grew by $460.2 million, or 8.8% over the prior quarter and by $556.5 million, or 10.9% over the prior year period. On an organic basis, core deposits continued their steady growth with a rise of $47.0 million, or 4.2% on an annualized basis over the prior quarter and now represent 86.7% of total deposits. Total cost of deposits increased by one basis point as a result of the acquired deposit base, yet remained low at 0.21% for the quarter, reflecting the Company’s continued emphasis on lower cost funding. Compared to a year ago, total deposits grew organically by $124.2 million, or 2.4%.

The securities portfolio increased from the prior quarter to $782.3 million at March 31, 2015. The increase of $58.3 million was due primarily to the acquired Peoples portfolio of $43.6 million. The securities portfolio comprised 11.3% of total assets as of March 31, 2015.

Stockholders’ equity at March 31, 2015 rose to $732.9 million, an increase of 14.4% from the prior quarter, primarily as a result of the stock issued as consideration for the Peoples acquisition. Compared to the year ago period, stockholders’ equity has increased by $130.3 million, or 21.6%. The strong growth in capital led to an increase in the Company’s tangible book value per share, which increased by $0.64, or 3.3% during the first quarter, to $19.82. The Company’s tangible common ratio of 7.73% also reflected a strong increase from the prior quarter.

NET INTEREST INCOME

Net interest income increased to $51.2 million for the first quarter as compared to $49.8 million in the linked quarter, reflective of higher earning asset levels and a higher loan yield. During the first quarter, the Company’s net interest margin increased by eight basis points from the prior quarter to 3.50%, driven mainly by a four basis point accretion adjustment related to early payoffs on loans acquired along with lower liquid balances.

NONINTEREST INCOME

The Company recorded noninterest income of $16.6 million during the first quarter, which represents a $1.9 million, or 10.4%, decrease from the linked quarter. Significant changes in noninterest income in the first quarter compared to the prior quarter included the following:

• Deposit account fees and interchange and ATM fees decreased by $624,000, or 7.9%, mainly due to seasonal and weather related reductions in customer activity.
• Investment management income increased by $220,000, or 4.5%, and assets under administration increased by 3.4%.
• The income from the cash surrender value of life insurance policies decreased $133,000, or 14.6%, due to the timing of dividends received on certain policies which occurred during the prior quarter.
• Loan level derivative income declined $608,000 due to decreased volume.
• Other noninterest income decreased $893,000, or 32.4%, mainly due to capital gain distributions of $403,000 on the Company’s equity security portfolio during the fourth quarter of 2014 and an income decrease of $247,000 on a Community Reinvestment Act investment. Additionally, the Company recorded no gains on sale of fixed income securities during the quarter, as compared to $121,000 in the prior quarter.

NONINTEREST EXPENSE

Inclusive of merger and acquisition costs, the Company recorded noninterest expense of $55.0 million during the first quarter, a $10.6 million, or 23.9%, increase from the prior quarter. Significant changes in noninterest expense in the first quarter compared to the prior quarter included the following:

• Salaries and employee benefits increased $817,000, or 3.3%, due primarily to the addition of Peoples, as well as increases in equity compensation, medical insurance and a seasonal increase in payroll taxes. These increases were partially offset by decreases in performance based incentives and commissions.
• Occupancy and equipment expense increased $1.0 million, or 19.6%, mainly due to higher snow removal costs, as well as general expense increases due to the addition of Peoples facilities.
• The Company incurred $10.2 million in merger and acquisition costs related to the Peoples acquisition that closed on February 20, 2015.
• Other noninterest expenses decreased by $875,000, or 7.4%, as the Company experienced lower costs related to mortgage operations, loan workouts, debit cards, ATM expense, and other losses and charge-offs. These decreases were offset by an increase of $227,000 in advertising expenses due to the rollout of a spring marketing campaign.

The Company generated a return on average assets and a return on average common equity of 0.58% and 5.58%, respectively, in the first quarter, as compared to 0.99% and 9.93% in the prior quarter. On an operating basis, the return on average assets and the return on average common equity for the three months ended March 31, 2015 were 0.97% and 9.33%, respectively, as compared to 1.02% and 10.29%, respectively, for the prior quarter.

ASSET QUALITY

Asset quality metrics remained strong during the first quarter, due to the Company’s ongoing credit discipline and prudent resolution of problem loans. For the first quarter, total net charge-offs declined to $85,000, or 0.01% of average loans on an annualized basis, compared to 0.13% for the quarter ending December 31, 2014. The low charge-off levels were reflective of significant recoveries recognized by the Company during the first quarter. In light of the exceptionally low net charge-off level and an organic decline in the loan portfolio, application of current accounting guidelines resulted in a slight reduction in the allowance for loan losses in the first quarter and a corresponding negative provision for loan losses of $500,000 as compared to a provision of $1.8 million in the prior quarter. Nonperforming loans increased during the first quarter by $2.8 million to $30.3 million, and represent 0.56% of total loans at March 31, 2015, as compared to 0.55% of total loans at December 31, 2014. In addition, nonperforming assets were $40.3 million at the end of the first quarter, as compared to $38.9 million in the prior quarter. Delinquency as a percentage of loans was 0.53% at March 31, 2015, a decrease of twenty seven basis points from the prior quarter.

The allowance for loan losses was $54.5 million at March 31, 2015, as compared to $55.1 million at December 31, 2014. The Company’s allowance for loan losses as a percentage of loans was 1.01% and 1.11% at March 31, 2015 and December 31, 2014, respectively. Loans acquired in connection with the Peoples acquisition have been recorded at fair value, including a reduction for estimated credit losses, and without carryover of the respective portfolio’s historical allowance for loan losses. Excluding these recently acquired loans at March 31, 2015, the allowance for loan losses would have been approximately 1.11% of total loans.

CONFERENCE CALL INFORMATION

Christopher Oddleifson, Chief Executive Officer and Robert Cozzone, Chief Financial Officer will host a conference call to discuss first quarter earnings at 10:00 a.m. Eastern Time on Friday, April 17, 2015. Internet access to the call is available on the Company’s website at www.rocklandtrust.com or via telephonic access by dial-in at 1-888-336-7153 reference: INDB. A replay of the call will be available by calling 1-877-344-7529. Replay Conference Number: 10062760 and will available through May 1, 2015. Additionally, a webcast replay will be available until April 17, 2016.

ABOUT INDEPENDENT BANK CORP.

Independent Bank Corp. has approximately $6.9 billion in assets and is the holding company for Rockland Trust Company, a full-service commercial bank headquartered in Massachusetts. Rockland Trust offers a wide range of banking, investment, and insurance services to businesses and individuals through retail branches, commercial lending offices, investment management offices, and residential lending centers located in Eastern Massachusetts and Rhode Island, as well as through telephone banking, mobile banking, and the Internet. Rockland Trust, which was named to Sandler 2014 Sm-All Stars list of top performing small-cap banks and thrifts in the country, is an FDIC Member and an Equal Housing Lender. To find out why Rockland Trust is the bank “Where Each Relationship Matters ®”, please 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. These statements may be identified by such forward-looking terminology as “expect,” “achieve,” “plan,” “believe,” “future,” “positioned,” “continued,” “will,” “would,” “potential,” or similar statements or variations of such terms. Actual results may differ from those contemplated by these forward-looking statements.

Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to:

• a weakening in the United States economy in general and the regional and local economies within the New England region and the Company’s market area;
• adverse changes in the local real estate market;
• a further deterioration of the credit rating for U.S. long-term sovereign debt;
• acquisitions may not produce results at levels or within time frames originally anticipated and may result in unforeseen integration issues or impairment of goodwill and/or other intangibles;
• changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System;
• higher than expected tax rates and any changes in and any failure by the Company to comply with tax laws generally and requirements of the federal New Markets Tax Credit program;
• unexpected changes in market interest rates for interest earning assets and/or interest bearing liabilities;
• adverse changes in asset quality including an unanticipated credit deterioration in our loan portfolio;
• unexpected increased competition in the Company’s market area;
• unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather or other external events;
• a deterioration in the conditions of the securities markets;
• our inability to adapt to changes in information technology;
• electronic fraudulent activity within the financial services industry, especially in the commercial banking sector;
• adverse changes in consumer spending and savings habits;
• the inability to realize expected revenue synergies from the Peoples Federal Bancshares merger in the amounts or in the timeframe anticipated;
• inability to retain customers and employees, including those of Peoples Federal Bancshares;
• the effect of new laws and regulations regarding the financial services industry including, but not limited to, the Dodd-Frank Wall Street Reform and Consumer Protection Act;
• changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) generally applicable to the Company’s business;
• changes in accounting policies, practices and standards, as may be adopted by the regulatory agencies as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters; and
• other unexpected material adverse changes in our operations or earnings.

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”). This information includes operating earnings and operating EPS, return on average assets and return on average common equity calculated on an operating basis, and the allowance for loan losses excluding the loans acquired from Peoples. The non-GAAP financial measures, including operating earnings and operating EPS, exclude gain or loss due to items that management believes are unrelated to its core banking business and will not have a material financial impact on operating results in future periods, such as gains or losses on the sales of securities, merger and acquisition expenses, and other items. The Company’s management uses operating earnings and operating EPS to measure the strength of the Company’s core banking business and to identify trends that may to some extent be obscured by such excluded gains or losses. The Company has included information on these non-GAAP measures 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. These non-GAAP measures 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 these non-GAAP measures can be of substantial importance to the Company’s results for any particular quarter or year. The Company’s non-GAAP performance measures, including operating earnings and operating EPS, are not necessarily comparable to non-GAAP performance measures which may be presented by other companies.

INDEPENDENT BANK CORP. FINANCIAL SUMMARY
																						% Change					% Change
CONSOLIDATED BALANCE SHEETS				March 31,						December 31,						March 31,						Mar 2015 vs.					Mar 2015 vs.
(Unaudited dollars in thousands)					2015						2014						2014					Dec 2014					Mar 2014
Assets
Cash and due from banks				$	108,804					$	143,342					$	142,349					-24.09	%				-23.57	%
Interest-earning deposits with banks					47,470						34,912						74,934					35.97	%				-36.65	%
Securities
Securities - trading					494						-						-					100.00	%				100.00	%
Securities - available for sale					387,038						348,554						348,258					11.04	%				11.14	%
Securities - held to maturity					394,745						375,453						375,556					5.14	%				5.11	%
Total securities					782,277						724,007						723,814					8.05	%				8.08	%
Loans held for sale					9,507						6,888						6,788					38.02	%				40.06	%
Loans
Commercial and industrial					829,380						860,839						822,509					-3.65	%				0.84	%
Commercial real estate					2,606,444						2,347,323						2,282,939					11.04	%				14.17	%
Commercial construction					291,666						265,994						239,536					9.65	%				21.76	%
Small business					87,709						85,247						78,147					2.89	%				12.24	%
Total commercial					3,815,199						3,559,403						3,423,131					7.19	%				11.45	%
Residential real estate					681,379						530,259						538,626					28.50	%				26.50	%
Home equity - 1st position					519,978						513,518						499,095					1.26	%				4.18	%
Home equity - subordinate positions					356,938						350,345						328,190					1.88	%				8.76	%
Total consumer real estate					1,558,295						1,394,122						1,365,911					11.78	%				14.08	%
Other consumer					19,624						17,208						18,227					14.04	%				7.66	%
Total loans					5,393,118						4,970,733						4,807,269					8.50	%				12.19	%
Less - allowance for loan losses					(54,515	)					(55,100	)					(53,629	)				-1.06	%				1.65	%
Net loans					5,338,603						4,915,633						4,753,640					8.60	%				12.31	%
Federal Home Loan Bank stock					37,485						33,233						39,926					12.79	%				-6.11	%
Bank premises and equipment					73,315						64,074						64,433					14.42	%				13.78	%
Goodwill and core deposit intangible					215,058						180,306						182,051					19.27	%				18.13	%
Other assets					298,566						262,517						237,985					13.73	%				25.46	%
Total assets				$	6,911,085					$	6,364,912					$	6,225,920					8.58	%				11.01	%
Liabilities and Stockholders' Equity
Deposits
Demand deposits				$	1,603,124					$	1,462,200					$	1,399,717					9.64	%				14.53	%
Savings and interest checking accounts					2,232,832						2,108,486						2,032,204					5.90	%				9.87	%
Money market					1,088,223						990,160						957,052					9.90	%				13.71	%
Time certificates of deposit					746,533						649,620						725,286					14.92	%				2.93	%
Total deposits					5,670,712						5,210,466						5,114,259					8.83	%				10.88	%
Borrowings
Federal Home Loan Bank borrowings					108,246						70,080						140,228					54.46	%				-22.81	%
Customer repurchase agreements and other short-term borrowings					128,138						147,890						128,485					-13.36	%				-0.27	%
Wholesale repurchase agreements					50,000						50,000						50,000					0.00	%				0.00	%
Junior subordinated debentures					73,631						73,685						73,852					-0.07	%				-0.30	%
Subordinated debentures					35,000						65,000						30,000					-46.15	%				16.67	%
Total borrowings					395,015						406,655						422,565					-2.86	%				-6.52	%
Total deposits and borrowings					6,065,727						5,617,121						5,536,824					7.99	%				9.55	%
Other liabilities					112,472						107,264						86,540					4.86	%				29.97	%
Stockholders' equity
Common stock					259						237						236					9.28	%				9.75	%
Additional paid in capital					399,936						311,978						306,156					28.19	%				30.63	%
Retained earnings					333,104						330,444						301,218					0.80	%				10.59	%
Accumulated other comprehensive loss, net of tax					(413	)					(2,132	)					(5,054	)				-80.63	%				-91.83	%
Total stockholders' equity					732,886						640,527						602,556					14.42	%				21.63	%
Total liabilities and stockholders' equity				$	6,911,085					$	6,364,912					$	6,225,920					8.58	%				11.01	%

CONSOLIDATED STATEMENTS OF INCOME				Three Months Ended
(Unaudited dollars in thousands)																				% Change						% Change
				March 31,					December 31,					March 31,						Mar 2015 vs.						Mar 2015 vs.
					2015					2014					2014					Dec 2014						Mar 2014
Interest income
Interest on fed funds sold and short term investments				$	30				$	76				$	38					-60.53	%					-21.05	%
Interest and dividends on securities					4,661					4,741					4,687					-1.69	%					-0.55	%
Interest on loans					51,687					49,911					48,204					3.56	%					7.23	%
Interest on loans held for sale					51					99					51					-48.48	%					0.00	%
Total interest income					56,429					54,827					52,980					2.92	%					6.51	%
Interest expense
Interest on deposits					2,763					2,725					2,791					1.39	%					-1.00	%
Interest on borrowed funds					2,417					2,282					2,583					5.92	%					-6.43	%
Total interest expense					5,180					5,007					5,374					3.46	%					-3.61	%
Net interest income					51,249					49,820					47,606					2.87	%					7.65	%
Less - provision for loan (benefit) losses					(500	)				1,750					4,502					-128.57	%					-111.11	%
Net interest income after provision for loan losses					51,749					48,070					43,104					7.65	%					20.06	%
Noninterest income
Deposit account fees					4,166					4,587					4,359					-9.18	%					-4.43	%
Interchange and ATM fees					3,100					3,303					2,975					-6.15	%					4.20	%
Investment management					5,107					4,887					4,603					4.50	%					10.95	%
Mortgage banking income					1,126					1,004					487					12.15	%					131.21	%
Increase in cash surrender value of life insurance policies					778					911					722					-14.60	%					7.76	%
Gain on life insurance benefits					-					-					1,627					n/a						-100.00	%
Loan level derivative income					418					1,026					746					-59.26	%					-43.97	%
Other noninterest income					1,862					2,755					1,997					-32.41	%					-6.76	%
Total noninterest income					16,557					18,473					17,516					-10.37	%					-5.47	%
Noninterest expense
Salaries and employee benefits					25,288					24,471					23,080					3.34	%					9.57	%
Occupancy and equipment					6,394					5,347					6,146					19.58	%					4.04	%
Data processing and facilities management					1,122					1,156					1,253					-2.94	%					-10.45	%
FDIC assessment					956					942					905					1.49	%					5.64	%
Merger and acquisition					10,230					586					77					1645.73	%					13185.71	%
Other noninterest expense					10,987					11,862					10,426					-7.38	%					5.38	%
Total noninterest expense					54,977					44,364					41,887					23.92	%					31.25	%
Income before income taxes					13,329					22,179					18,733					-39.90	%					-28.85	%
Provision for income taxes					3,869					6,201					5,350					-37.61	%					-27.68	%
Net income				$	9,460				$	15,978				$	13,383					-40.79	%					-29.31	%
Basic earnings per share				$	0.38				$	0.67				$	0.56					-43.28	%					-32.14	%
Diluted earnings per share				$	0.38				$	0.66				$	0.56					-42.42	%					-32.14	%
Basic average shares					24,959,865					23,968,320					23,819,065
Diluted average shares					25,040,080					24,055,132					23,919,238
Performance ratios
Net interest margin (FTE)					3.50	%				3.42	%				3.49	%
Return on average assets					0.58	%				0.99	%				0.88	%
Return on average common equity					5.58	%				9.93	%				9.02	%
Reconciliation table - non-GAAP financial information
Net income				$	9,460				$	15,978				$	13,383					-40.79	%					-29.31	%
Noninterest income components
Less - gain on sale of fixed income securities, net of tax					-					(72	)				-
Less - gain on life insurance benefits (tax exempt)					-					-					(1,627	)
Noninterest expense components
Add - loss on extinguishmnet of debt					72					-					-
Add - loss on sale of fixed income securities					-					13					-
Add - merger & acquisition expenses, net of tax					6,287					404					66
Add - impairment on acquired facilities, net of tax					-					-					298
Other components:
Add - Adjustment for tax effect of previously incurred merger and acquisition expenses					-					235					-
Net operating earnings				$	15,819				$	16,558				$	12,120					-4.47	%					30.52	%
Diluted earnings per share, on an operating basis				$	0.63				$	0.69				$	0.51					-8.70	%					23.53	%

Reconciliation table - non-GAAP financial information
(Unaudited dollars in thousands)					Three Months Ended
																							% Change
					March 31,						December 31,						March 31,						Mar 2015 vs.						Mar 2015 vs.
						2015						2014						2014					Dec 2014						Mar 2014
Noninterest income GAAP					$	16,557					$	18,473					$	17,516						-10.37	%					-5.47	%
Less - net gain on sale of fixed income securities						-						(121	)					-						-100.00	%					n/a
Less - gain on life insurance benefits						-						-						(1,627	)					n/a						-100.00	%
Total noninterest income as adjusted					$	16,557					$	18,352					$	15,889						-9.78	%					4.20	%
Noninterest expense GAAP					$	54,977					$	44,364					$	41,887						23.92	%					31.25	%
Less - loss on sale of fixed income securities						-						(21	)					-						-100.00	%					n/a
Less - loss on extinguishment of debt						(122	)					-						-						100.00	%					100.00	%
Less - merger and acquisition expenses						(10,230	)					(586	)					(77	)					1645.73	%					13185.71	%
Less - impairment on acquired facilities						-						-						(503	)					n/a						-100.00	%
Total noninterest expense as adjusted					$	44,625					$	43,757					$	41,307						1.98	%					8.03	%
Asset quality					Nonperforming Assets																		Net Charge-Offs
					At																		For the Three Months Ended
					March 31,						December 31,						March 31,						March 31,						December 31,				March 31,
						2015						2014						2014						2015						2014				2014
Nonperforming loans
Commercial & industrial loans					$	4,542					$	2,822					$	3,299					$	182					$	91			$	704
Commercial real estate loans						8,770						7,590						13,970						(544	)					1,099				2,854
Small business loans						267						246						788						83						29				221
Residential real estate loans						8,693						8,803						11,000						140						117				128
Home equity						8,015						8,038						7,062						89						154				1
Other consumer						53						13						52						135						165				204
Total nonperforming loans / total net charge-offs					$	30,340					$	27,512					$	36,171					$	85					$	1,655			$	4,112
Nonaccrual securities						3,723						3,640						2,353
Other assets in possession						-						-						167
Other real estate owned						6,285						7,742						7,830
Total nonperforming assets					$	40,348					$	38,894					$	46,521
Nonperforming loans/gross loans						0.56	%					0.55	%					0.75	%
Nonperforming assets/total assets						0.58	%					0.61	%					0.75	%
Allowance for loan losses/nonperforming loans						179.68	%					200.28	%					148.27	%
Gross loans/total deposits						95.10	%					95.40	%					94.00	%
Allowance for loan losses/total loans						1.01	%					1.11	%					1.12	%
Net charge-offs to average loans (quarter annualized)																								0.01	%					0.13	%			0.35	%
					Three Months Ended
					March 31,						December 31,						March 31,
Nonperforming assets reconciliation						2015						2014						2014
Nonperforming assets beginning balance					$	38,894					$	38,557					$	43,833
New to Nonperforming						11,523						9,287						10,369
Loans charged-off						(1,525	)					(2,325	)					(4,566	)
Loans paid-off						(5,923	)					(4,119	)					(1,367	)
Loans transferred to other real estate owned/other assets						(354	)					(209	)					(746	)
Loans restored to performing status						(891	)					(1,230	)					(2,062	)
New to other real estate owned						354						209						746
Sale of other real estate owned						(1,633	)					(3,206	)					(590	)
Capital improvements to other real estate owned						665						1,483						444
Other						(762	)					447						460
Nonperforming assets ending balance					$	40,348					$	38,894					$	46,521
					Troubled Debt Restructurings
					At
					March 31,						December 31,						March 31,
						2015						2014						2014
Troubled debt restructurings on accrual status					$	36,887					$	38,382					$	40,329
Troubled debt restructurings on nonaccrual status						4,899						5,248						6,998
Total troubled debt restructurings					$	41,786					$	43,630					$	47,327
					March 31,						December 31,						March 31,
Financial ratios						2015						2014						2014
Book value per common share					$	28.05					$	26.69					$	25.23
Tangible book value per share					$	19.82					$	19.18					$	17.61
Tangible common capital/tangible assets						7.73	%					7.44	%					6.96	%
Capital adequacy
Common equity tier 1 capital ratio (1)						9.97	%					n/a						n/a
Tier one leverage capital ratio (1)						9.52	%					8.84	%					8.60	%
(1) Estimated number for March 31, 2015.

INDEPENDENT BANK CORP. SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited - dollars in thousands)				Three Months Ended
				March 31, 2015														December 31, 2014															March 31, 2014
									Interest															Interest															Interest
				Average					Earned/					Yield/					Average					Earned/					Yield/					Average					Earned/					Yield/
				Balance					Paid					Rate					Balance					Paid					Rate					Balance					Paid					Rate
Interest-earning assets
Interest-earning deposits with banks, federal funds sold, and short term investments				$	48,698				$	30				0.25	%				$	120,647				$	76				0.25	%				$	61,356				$	38				0.25	%
Securities
Securities - trading					179					-				0.00	%					-					-				-						-					-				-
Securities - taxable investments					745,242					4,627				2.52	%					726,417					4,708				2.57	%					706,355					4,650				2.67	%
Securities - nontaxable investments (1)					5,585					52				3.78	%					5,670					51				3.57	%					6,143					63				4.16	%
Total securities					751,006					4,679				2.53	%					732,088					4,759				2.58	%					712,498					4,713				2.68	%
Loans held for sale					7,603					51				2.72	%					11,972					99				3.28	%					6,041					51				3.42	%
Loans
Commercial and industrial					855,462					8,207				3.89	%					845,113					8,207				3.85	%					816,467					7,941				3.94	%
Commercial real estate (1)					2,454,630					25,720				4.25	%					2,358,236					24,689				4.15	%					2,281,778					24,205				4.30	%
Commercial construction					280,049					2,900				4.20	%					259,218					2,895				4.43	%					228,818					2,346				4.16	%
Small business					86,498					1,172				5.50	%					82,417					1,143				5.50	%					77,503					1,069				5.59	%
Total commercial					3,676,639					37,999				4.19	%					3,544,984					36,934				4.13	%					3,404,566					35,561				4.24	%
Residential real estate					602,490					6,211				4.18	%					534,527					5,465				4.06	%					540,382					5,166				3.88	%
Home equity					869,688					7,419				3.46	%					859,994					7,507				3.46	%					823,890					7,258				3.57	%
Total consumer real estate					1,472,178					13,630				3.75	%					1,394,521					12,972				3.69	%					1,364,272					12,424				3.69	%
Other consumer					17,893					412				9.34	%					16,534					387				9.29	%					19,226					485				10.23	%
Total loans					5,166,710					52,041				4.08	%					4,956,039					50,293				4.03	%					4,788,064					48,470				4.11	%
Total interest-earning assets				$	5,974,017				$	56,801				3.86	%				$	5,820,745				$	55,227				3.76	%				$	5,567,959				$	53,272				3.88	%
Cash and due from banks					114,974															120,228															140,788
Federal Home Loan Bank stock					35,076															33,233															39,926
Other assets					494,042															435,254															405,367
Total assets				$	6,618,109														$	6,409,460														$	6,154,040
Interest-bearing liabilities
Deposits
Savings and interest checking accounts				$	2,134,044				$	862				0.16	%				$	2,129,340				$	871				0.16	%				$	1,962,983				$	889				0.18	%
Money market					1,049,472					676				0.26	%					1,010,401					653				0.26	%					997,817					619				0.25	%
Time deposits					689,530					1,225				0.72	%					658,533					1,201				0.72	%					733,018					1,281				0.71	%
Total interest-bearing deposits				$	3,873,046				$	2,763				0.29	%				$	3,798,274				$	2,725				0.28	%				$	3,693,818				$	2,789				0.31	%
Borrowings
Federal Home Loan Bank borrowings				$	97,596				$	502				2.09	%				$	60,974				$	456				2.97	%				$	151,273				$	1,002				2.69	%
Customer repurchase agreements and other short-term borrowings					138,836					63				0.18	%					156,041					52				0.13	%					138,536					55				0.16	%
Wholesale repurchase agreements					50,000					286				2.32	%					50,000					292				2.32	%					50,000					286				2.32	%
Junior subordinated debentures					73,661					992				5.46	%					73,712					1,012				5.45	%					73,884					992				5.45	%
Subordinated debentures					51,667					574				4.51	%					47,120					470				3.96	%					30,000					248				3.35	%
Total borrowings				$	411,760				$	2,417				2.38	%				$	387,847				$	2,282				2.33	%				$	443,693				$	2,583				2.36	%
Total interest-bearing liabilities				$	4,284,806				$	5,180				0.49	%				$	4,186,121				$	5,007				0.47	%				$	4,137,511				$	5,372				0.53	%
Demand deposits					1,536,919															1,493,464															1,347,559
Other liabilities					108,855															91,726															67,259
Total liabilities				$	5,930,580														$	5,771,311														$	5,552,329
Stockholders' equity					687,529															638,149															601,711
Total liabilities and stockholders' equity				$	6,618,109														$	6,409,460														$	6,154,040
Net interest income									$	51,621														$	50,220														$	47,900
Interest rate spread (2)														3.37	%														3.29	%														3.35	%
Net interest margin (3)														3.50	%														3.42	%														3.49	%
Supplemental Information
Total deposits, including demand deposits				$	5,409,965				$	2,763									$	5,291,738				$	2,725									$	5,041,377				$	2,789
Cost of total deposits														0.21	%														0.20	%														0.22	%
Total funding liabilities, including demand deposits				$	5,821,725				$	5,180									$	5,679,585				$	5,007									$	5,485,070				$	5,372
Cost of total funding liabilities														0.36	%														0.35	%														0.40	%

(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $372,000, $400,000, and $291,000 for the three months ended March 31, 2015, December 31, 2014, and March 31, 2014, 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.

Organic Loan and Deposit Growth
				Quarter over Quarter																											Year over Year
																									Organic																	Organic
				March 31,					December 31,					Balance					Organic						Growth/(Loss)						March 31,					Organic						Growth/(Loss)
					2015					2014				Acquired					Growth/(Loss)						%							2014				Growth/(Loss)						%
Loans
Commercial and Industrial				$	829,380				$	860,839				$	11,268				$	(42,727	)				-5.0	%					$	822,509				$	(4,397	)				-0.53	%
Commercial Real Estate					2,606,444					2,347,323					249,383					9,738					0.4	%						2,282,939					74,122					3.25	%
Commercial Construction					291,666					265,994					15,299					10,373					3.9	%						239,536					36,831					15.38	%
Small Business					87,709					85,247					120					2,342					2.7	%						78,147					9,442					12.08	%
Total Commercial					3,815,199					3,559,403					276,070					(20,274	)				-0.6	%						3,423,131					115,998					3.39	%
Residential Real Estate					681,379					530,259					175,323					(24,203	)				-4.6	%						538,626					(32,570	)				-6.05	%
Home Equity					876,916					863,863					9,072					3,981					0.5	%						827,285					40,559					4.90	%
Total Consumer Real Estate					1,558,295					1,394,122					184,395					(20,222	)				-1.5	%						1,365,911					7,989					0.58	%
Total Other Consumer					19,624					17,208					3,462					(1,046	)				-6.1	%						18,227					(2,065	)				-11.33	%
Total Loans				$	5,393,118				$	4,970,733				$	463,927				$	(41,542	)				-0.8	%					$	4,807,269				$	121,922					2.54	%
Deposits
Demand Deposits				$	1,603,124				$	1,462,200				$	71,362				$	69,562					4.8	%					$	1,399,717				$	132,045					9.43	%
Savings and Interest Checking Accounts					2,232,832					2,108,486					168,228					(43,882	)				-2.1	%						2,032,204					32,400					1.59	%
Money Market					1,088,223					990,160					76,724					21,339					2.2	%						957,052					54,447					5.69	%
Time Certificates of Deposit					746,533					649,620					115,936					(19,023	)				-2.9	%						725,286					(94,689	)				-13.06	%
Total Deposits				$	5,670,712				$	5,210,466				$	432,250				$	27,996					0.5	%					$	5,114,259				$	124,203					2.43	%

Independent Bank Corp.

Chris Oddleifson, 781-982-6660

President and Chief Executive Officer

or

Robert Cozzone, 781-982-6723

Chief Financial Officer and Treasurer

Source: Independent Bank Corp.