ROCKLAND, Mass.--(BUSINESS WIRE)-- Independent Bank Corp. (NASDAQ: INDB), parent of Rockland Trust Company, today announced 2015 second quarter net income of $17.5 million, or $0.67 per diluted share as compared to $9.5 million, or $0.38 per diluted share in the prior quarter. The increase in the Company’s earnings was largely attributable to merger and acquisition costs recognized during the first quarter of $6.3 million, net of tax, 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 second quarter were $17.9 million, or $0.68 per diluted share, versus $15.8 million, or $0.63 per diluted share in the prior quarter, representing an increase of 12.9% and 7.9%, respectively.

“Due to the teamwork and extraordinary efforts of my many colleagues, Rockland Trust has performed very well during the first half of 2015,” said Christopher Oddleifson, the President and Chief Executive Officer of Independent and Rockland Trust. “While loan growth remains challenging due to intense competition, our disciplined and focused approach has resulted in strong deposit growth and continued pristine asset quality. Rockland Trust is well positioned for sustained organic growth and ready to take advantage of market opportunities.”

BALANCE SHEET

Total assets of $7.2 billion at June 30, 2015 increased by $284.8 million, or 4.1%, from the prior quarter and by $847.6 million, or 13.4%, as compared to the year ago period, inclusive of the acquisition of Peoples.

The commercial loan portfolio rose by $58.0 million or 1.5% (6.1% annualized) over the prior quarter, led by growth in the commercial and industrial and small business sectors. This reflected a pick up in business activity during the second quarter and the Company’s strong market presence and origination efforts. The home equity portfolio grew as well due to sustained promotional campaigns. These increases were countered by a reduction in the residential mortgage portfolio due to higher refinancing volumes and attrition in the acquired Peoples portfolio. These factors resulted in net growth in total loans at June 30, 2015 of $41.7 million, or 0.8% (3.0% annualized) over the prior quarter. Compared to the prior year period, total loans increased by $549.3 million, or 11.2%, inclusive of the Peoples acquisition.

Total deposits at June 30, 2015 grew sharply by $299.8 million, or 5.3% over the prior quarter and by $672.4 million, or 12.7% over the prior year period, inclusive of the acquisition of Peoples. Core deposits continued their steady growth with a rise of $320.6 million, or 26.2% on an annualized basis over the prior quarter, and as of June 30, 2015 represent 87.7% of total deposits. The growth in total and core deposits for the quarter was due in part to large short-term deposits related to the Company’s tax section 1031 exchange business. The increase in these short-term deposits also contributed to the increase in the Company’s short-term investments at quarter end. Total cost of deposits decreased by one basis point during the quarter to 20 basis points, reflecting the Company’s continued emphasis on core deposit growth.

The securities portfolio increased from the prior quarter to $803.8 million at June 30, 2015. The increase of $21.6 million was due primarily to the purchase of Small Business Administration pooled securities and mortgage backed securities, offset by sales of mortgage backed securities and certain pooled trust preferred securities. The securities portfolio comprised 11.2% of total assets as of June 30, 2015.

Stockholders’ equity at June 30, 2015 rose to $743.3 million, an increase of 1.4% from March 31, 2015. Compared to the year ago period, stockholders’ equity has increased by $126.8 million, or 20.6%. The strong growth in capital led to an increase in the Company’s tangible book value per share, which increased by $0.40, or 2.0%, during the second quarter, to $20.22, which is 11.1% above the prior year level. The Company’s tangible common ratio of 7.58% represents a decrease of 15 basis points from the prior quarter, as strong deposit growth drove a corresponding increase in total assets.

NET INTEREST INCOME

Net interest income increased to $53.7 million for the second quarter as compared to $51.2 million in the linked quarter, driven primarily by higher earning asset levels and a full quarter of income from the loans acquired in the Peoples acquisition. During the second quarter, the Company’s net interest margin decreased by seven basis points from the prior quarter to 3.43%. The decrease was driven by the benefit received in the prior quarter from purchase accounting adjustments, ongoing pressure on asset yields, and increased liquid asset levels.

NONINTEREST INCOME

The Company recorded noninterest income of $20.3 million during the second quarter, which represents a $3.7 million, or 22.4%, increase from the linked quarter. Significant changes in noninterest income in the second quarter compared to the prior quarter included the following:

• Deposit account fees and interchange and ATM fees increased by $966,000, or 13.3%, mainly due to the resumption of normal activity after the prior quarter’s seasonal and weather-related reductions in customer activity.
• Investment management income increased by $421,000, or 8.2%, primarily driven by seasonal tax preparation fees and continued growth in assets under administration, which increased by 1.3% to $2.6 billion.
• Loan level derivative income increased $1.0 million due to increased volume based on customer demand.
• Income from the cash surrender value of life insurance policies increased $171,000, or 22.0%, due primarily to the additional policies acquired from Peoples.
• The Company recorded gains on sale of fixed income securities during the quarter of $798,000. There were no such gains in the prior quarter.
• Other noninterest income increased $217,000, or 11.7%, mainly due to increases in asset based lending fee income, foreign currency exchange fees and affordable housing tax credits.

NONINTEREST EXPENSE

The Company recorded noninterest expense of $48.6 million during the second quarter, a $6.3 million, or 11.5%, decrease from the prior quarter. Significant changes in noninterest expense in the second quarter compared to the prior quarter included the following:

• Salaries and employee benefits increased $1.0 million, or 4.1%, due primarily to the full quarter’s impact of the Peoples acquisition along with increases in performance-based incentive compensation. These increases were partially offset by decreases in payroll taxes.
• Occupancy and equipment expense decreased $722,000, or 11.3%, mainly due to high snow removal costs incurred in the first quarter, partially offset by increases stemming from the addition of Peoples facilities as well as an impairment charge of $109,000 relating to an acquired facility.
• The Company incurred $271,000 and $10.2 million in merger and acquisition costs during the second and first quarter of 2015, respectively, related to the Peoples acquisition.
• The Company incurred a loss of $1.1 million on the sale of pooled trust preferred and mortgage backed securities during the second quarter. There was no such loss during the prior quarter.
• Other noninterest expenses increased by $2.0 million, or 18.4%, driven primarily by increased advertising costs, other losses and charge-offs, mortgage operations expenses, debit card expenses, and shareholder relations. These increases were partially offset by a decrease of $420,000 in loan workout costs.

The Company generated a return on average assets and a return on average common equity of 1.00% and 9.43%, respectively, in the second quarter, as compared to 0.58% and 5.58%, respectively, for the prior quarter. On an operating basis, the return on average assets and the return on average common equity for the three months ended June 30, 2015 were 1.03% and 9.65%, respectively, as compared to 0.97% and 9.33%, respectively, for the prior quarter.

ASSET QUALITY

Asset quality metrics remained strong during the second quarter with total net charge-offs totaling $220,000, or 0.02% of average loans on an annualized basis, compared to 0.01% for the quarter ending March 31, 2015. The provision for loan losses was $700,000 for the second quarter as compared to a negative provision of $500,000 in the first quarter. Nonperforming loans decreased during the second quarter by $4.2 million to $26.2 million, and represent 0.48% of total loans at June 30, 2015, as compared to 0.56% of total loans at March 31, 2015. In total, nonperforming assets declined to $31.3 million at the end of the second quarter, from $40.3 million at the end of the prior quarter, reflecting the aforementioned reduction in nonperforming loans, as well as the sale of the Company’s nonaccruing pooled trust preferred securities and a reduction in other real estate owned. Delinquency as a percentage of loans was 0.49% at June 30, 2015, a decrease of four basis points from the prior quarter.

The allowance for loan losses was $55.0 million at June 30, 2015, as compared to $54.5 million at March 31, 2015. The Company’s allowance for loan losses as a percentage of loans was 1.01% at both June 30, 2015 and March 31, 2015, inclusive of the recently acquired Peoples portfolio.

CONFERENCE CALL INFORMATION

Christopher Oddleifson, Chief Executive Officer and Robert Cozzone, Chief Financial Officer will host a conference call to discuss second quarter earnings at 10:00 a.m. Eastern Time on Friday, July 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: 10067941 and will available through July 31, 2015. Additionally, a webcast replay will be available until July 17, 2016.

ABOUT INDEPENDENT BANK CORP.

Independent Bank Corp. has approximately $7.2 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;
• 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.

The Company wishes to caution readers not to place undue reliance on any forward-looking statements as the Company’s business and its forward-looking statements involve substantial known and unknown risks and uncertainties included in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q (“Risk Factors”). Except as required by law, 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. Any public statements or disclosures by the Company following this release which modify or impact any of the forward-looking statements contained in this release will be deemed to modify or supersede such statements in this release. In addition to the information set forth in this press release, you should carefully consider the Risk Factors.

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. 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
																		% ChangeJun 2015 vs.Mar 2015				% ChangeJun 2015 vs.Jun 2014
CONSOLIDATED BALANCE SHEETS(Unaudited dollars in thousands)			June 30,2015					March 31,2015					June 30,2014
Assets
Cash and due from banks			$	100,054				$	108,804				$	119,326				-8.04	%			-16.15	%
Interest-earning deposits with banks				295,722					47,470					151,538				522.97	%			95.15	%
Securities
Securities - trading				489					494					-				-1.01	%			100.00	%
Securities - available for sale				375,001					387,038					340,081				-3.11	%			10.27	%
Securities - held to maturity				428,339					394,745					373,888				8.51	%			14.56	%
Total securities				803,829					782,277					713,969				2.76	%			12.59	%
Loans held for sale				10,728					9,507					16,125				12.84	%			-33.47	%
Loans
Commercial and industrial				873,105					829,380					853,327				5.27	%			2.32	%
Commercial real estate				2,630,062					2,606,444					2,300,633				0.91	%			14.32	%
Commercial construction				278,692					291,666					252,222				-4.45	%			10.49	%
Small business				91,367					87,709					78,955				4.17	%			15.72	%
Total commercial				3,873,226					3,815,199					3,485,137				1.52	%			11.14	%
Residential real estate				653,370					681,379					541,601				-4.11	%			20.64	%
Home equity - 1st position				526,370					519,978					503,149				1.23	%			4.62	%
Home equity - subordinate positions				364,523					356,938					337,666				2.13	%			7.95	%
Total consumer real estate				1,544,263					1,558,295					1,382,416				-0.90	%			11.71	%
Other consumer				17,293					19,624					17,947				-11.88	%			-3.64	%
Total loans				5,434,782					5,393,118					4,885,500				0.77	%			11.24	%
Less - allowance for loan losses				(54,995	)				(54,515	)				(54,538	)			0.88	%			0.84	%
Net loans				5,379,787					5,338,603					4,830,962				0.77	%			11.36	%
Federal Home Loan Bank stock				37,485					37,485					37,350				0.00	%			0.36	%
Bank premises and equipment				74,143					73,315					64,166				1.13	%			15.55	%
Goodwill and core deposit intangible				214,331					215,058					181,460				-0.34	%			18.11	%
Other assets				279,842					298,566					233,422				-6.27	%			19.89	%
Total assets			$	7,195,921				$	6,911,085				$	6,348,318				4.12	%			13.35	%
Liabilities and Stockholders' Equity
Deposits
Demand deposits			$	1,832,971				$	1,603,124				$	1,462,761				14.34	%			25.31	%
Savings and interest checking accounts				2,285,968					2,232,832					2,096,029				2.38	%			9.06	%
Money market				1,125,888					1,088,223					1,036,513				3.46	%			8.62	%
Time certificates of deposit				725,703					746,533					702,858				-2.79	%			3.25	%
Total deposits				5,970,530					5,670,712					5,298,161				5.29	%			12.69	%
Borrowings
Federal Home Loan Bank borrowings				108,190					108,246					60,174				-0.05	%			79.80	%
Customer repurchase agreements and other short-term borrowings				119,439					128,138					131,766				-6.79	%			-9.36	%
Wholesale repurchase agreements				50,000					50,000					50,000				0.00	%			0.00	%
Junior subordinated debentures				73,576					73,631					73,797				-0.07	%			-0.30	%
Subordinated debentures				35,000					35,000					30,000				0.00	%			16.67	%
Total borrowings				386,205					395,015					345,737				-2.23	%			11.70	%
Total deposits and borrowings				6,356,735					6,065,727					5,643,898				4.80	%			12.63	%
Other liabilities				95,869					112,472					87,931				-14.76	%			9.03	%
Stockholders' equity
Common stock				259					259					236				0.00	%			9.75	%
Additional paid in capital				401,437					399,936					307,720				0.38	%			30.46	%
Retained earnings				343,757					333,104					310,226				3.20	%			10.81	%
Accumulated other comprehensive loss, net of tax				(2,136	)				(413	)				(1,693	)			417.19	%			26.17	%
Total stockholders' equity				743,317					732,886					616,489				1.42	%			20.57	%
Total liabilities and stockholders' equity			$	7,195,921				$	6,911,085				$	6,348,318				4.12	%			13.35	%

CONSOLIDATED STATEMENTS OF INCOME(Unaudited dollars in thousands)			Three Months Ended
															% ChangeJun 2015 vs.Mar 2015			% ChangeJun 2015 vs.Jun 2014
			June 30,2015				March 31,2015				June 30,2014
Interest income
Interest on fed funds sold and short term investments			$	60			$	30			$	69			100.00%			-13.04%
Interest and dividends on securities				4,882				4,661				4,727			4.74%			3.28%
Interest on loans				54,016				51,687				49,393			4.51%			9.36%
Interest on loans held for sale				58				51				96			13.73%			-39.58%
Total interest income				59,016				56,429				54,285			4.58%			8.72%
Interest expense
Interest on deposits				2,922				2,763				2,789			5.75%			4.77%
Interest on borrowed funds				2,347				2,417				2,443			-2.90%			-3.93%
Total interest expense				5,269				5,180				5,232			1.72%			0.71%
Net interest income				53,747				51,249				49,053			4.87%			9.57%
Less - provision (benefit) for loan losses				700				(500)				2,250			-240.00%			-68.89%
Net interest income after provision (benefit) for loan losses				53,047				51,749				46,803			2.51%			13.34%
Noninterest income
Deposit account fees				4,465				4,166				4,463			7.18%			0.04%
Interchange and ATM fees				3,767				3,100				3,322			21.52%			13.40%
Investment management				5,528				5,107				5,136			8.24%			7.63%
Mortgage banking income				1,226				1,126				877			8.88%			39.79%
Increase in cash surrender value of life insurance policies				949				778				721			21.98%			31.62%
Gain on life insurance benefits				-				-				337			n/a			-100.00%
Gain on sale of fixed income securities				798				-				-			100.00%			100.00%
Gain (loss) on sale of equity securities				19				-				(20)			100.00%			-195.00%
Loan level derivative income				1,430				418				324			242.11%			341.36%
Other noninterest income				2,079				1,862				1,697			11.65%			22.51%
Total noninterest income				20,261				16,557				16,857			22.37%			20.19%
Noninterest expense
Salaries and employee benefits				26,318				25,288				22,843			4.07%			15.21%
Occupancy and equipment				5,672				6,394				5,301			-11.29%			7.00%
Data processing and facilities management				1,228				1,122				1,179			9.45%			4.16%
FDIC assessment				1,017				956				966			6.38%			5.28%
Merger and acquisition				271				10,230				-			-97.35%			100.00%
Loss on sale of fixed income securities				1,124				-				-			100.00%			100.00%
Loss on sale of equity securities				8				-				-			100.00%			100.00%
Loss on termination of derivatives				-				-				1,122			-n/a			-100.00%
Other noninterest expense				13,006				10,987				11,569			18.37%			12.41%
Total noninterest expense				48,644				54,977				42,980			-11.52%			13.18%
Income before income taxes				24,664				13,329				20,680			85.04%			19.26%
Provision for income taxes				7,213				3,869				5,934			86.43%			21.55%
Net income			$	17,451			$	9,460			$	14,746			84.47%			18.34%
Basic earnings per share			$	0.67			$	0.38			$	0.62			76.32%			8.06%
Diluted earnings per share			$	0.67			$	0.38			$	0.61			76.32%			9.84%
Basic average shares				26,149,593				24,959,865				23,897,413
Diluted average shares				26,221,412				25,040,080				23,991,973
Performance ratios
Net interest margin (FTE)				3.43%				3.50%				3.48%
Return on average assets				1.00%				0.58%				0.94%
Return on average common equity				9.43%				5.58%				9.65%
Reconciliation table - non-GAAP financial information
Net income			$	17,451			$	9,460			$	14,746			84.47%			18.34%
Noninterest income components
Less - gain on sale of fixed income securities, net of tax				(473)				-				-
Less - gain on life insurance benefits (tax exempt)				-				-				(337)
Noninterest expense components
Add - loss on termination of derivatives, net of tax				-				-				663
Add - loss on extinguishmnet of debt, net of tax				-				72				-
Add - loss on sale of fixed income securities, net of tax				667				-				-
Add - merger & acquisition expenses, net of tax				155				6,287				-
Add - impairment on acquired facilities, net of tax				65				-				-
Net operating earnings			$	17,865			$	15,819			$	15,072			12.94%			18.53%
Diluted earnings per share, on an operating basis			$	0.68			$	0.63			$	0.63			7.94%			7.94%

CONSOLIDATED STATEMENTS OF INCOME
			Six Months Ended						% Change
			June 30,2015			June 30,2014			Jun 2015 vs.Jun 2014
Interest income
Interest on fed funds sold and short term investments			$	91		$	106		-14.15%
Interest and dividends on securities				9,543			9,414		1.37%
Interest on loans				105,704			97,597		8.31%
Interest on loans held for sale				109			147		-25.85%
Total interest income				115,447			107,264		7.63%
Interest expense
Interest on deposits				5,685			5,579		1.90%
Interest on borrowed funds				4,765			5,026		-5.19%
Total interest expense				10,450			10,605		-1.46%
Net interest income				104,997			96,659		8.63%
Less - provision for loan losses				200			6,752		-97.04%
Net interest income after provision for loan losses				104,797			89,907		16.56%
Noninterest income
Deposit account fees				8,631			8,821		-2.15%
Interchange and ATM fees				6,868			6,298		9.05%
Investment management				10,635			9,739		9.20%
Mortgage banking income				2,352			1,364		72.43%
Increase in cash surrender value of life insurance policies				1,727			1,443		19.68%
Gain on life insurance benefits				-			1,964		-100.00%
Gain on sale of fixed income securities				798			-		100.00%
Gain on sale of equity securities				19			71		-73.24%
Loan level derivative income				1,848			1,070		72.71%
Other noninterest income				3,939			3,602		9.36%
Total noninterest income				36,817			34,372		7.11%
Noninterest expense
Salaries and employee benefits				51,606			45,923		12.38%
Occupancy and equipment expenses				12,066			11,447		5.41%
Data processing and facilities management				2,350			2,432		-3.37%
FDIC assessment				1,973			1,871		5.45%
Merger and acquisition expenses				10,501			77		13537.66%
Loss on sale of fixed income securities				1,124			-		100.00%
Loss on sale of equity securities				8			-		100.00%
Loss on termination of derivatives				-			1,122		-100.00%
Other noninterest expense				23,994			21,994		9.09%
Total noninterest expense				103,622			84,866		22.10%
Income before income taxes				37,992			39,413		-3.61%
Provision for income taxes				11,082			11,284		-1.79%
Net income			$	26,910		$	28,129		-4.33%
Basic earnings per share			$	1.05		$	1.18		-11.02%
Diluted earnings per share			$	1.05		$	1.17		-10.26%
Basic average shares				25,558,016			23,858,456
Diluted average shares				25,634,642			23,956,000
Performance ratios
Net interest margin (FTE)				3.47%			3.48%
Return on average assets				0.80%			0.91%
Return on average common equity				7.59%			9.34%
Reconciliation table - non-GAAP financial information
Net income			$	26,910		$	28,129		-4.33%
Noninterest income components
Less - gain on sale of fixed income securities, net of tax				(473)			-
Less - gain on life insurance benefits, tax exempt				-			(1,964)
Noninterest expense components
Add - loss on extinguishment of debt, net of tax				72			-
Add - loss on termination of derivatives, net of tax				-			663
Add - loss on sale of fixed income securities, net of tax				667			-
Add - merger & acquisition expenses, net of tax				6,442			66
Add - impairment on acquired facilities, net of tax				65			298
Net operating earnings			$	33,683		$	27,192		23.87%
Diluted earnings per share, on an operating basis			$	1.31		$	1.14		14.91%

Reconciliation table - non-GAAP financial information
(Unaudited dollars in thousands)					Three Months Ended																										Six Months Ended
																				% Change																					% Change
					June 30,2015					March 31,2015					June 30,2014					Jun 2015 vs.Mar 2015					Jun 2015 vs.Jun 2014						June 30,2015					June 30,2014					Jun 2015 vs.Jun 2014
Noninterest income GAAP					$	20,261				$	16,557				$	16,857					22.37	%				20.19	%				$	36,817				$	34,372					7.11	%
Less - gain on sale of fixed income securities						(798	)				-					-					100.00	%				100.00	%					(798	)				-					100.00	%
Less - gain on life insurance benefits						-					-					(337	)				n/a					-100.00	%					-					(1,964	)				-100.00	%
Total noninterest income as adjusted					$	19,463				$	16,557				$	16,520					17.55	%				17.81	%				$	36,019				$	32,408					11.14	%
Noninterest expense GAAP					$	48,644				$	54,977				$	42,980					-11.52	%				13.18	%				$	103,622				$	84,866					22.10	%
Less - loss on extinguishment of debt						-					(122	)				-					-100.00	%				n/a						(122	)				-					100.00	%
Less - loss on termination of derivatives						-					-					(1,122	)				n/a					-100.00	%					-					(1,122	)				-100.00	%
Less - loss on sale of fixed income securities						(1,124	)				-					-					100.00	%				100.00	%					(1,124	)				-					100.00	%
Less - merger and acquisition expenses						(271	)				(10,230	)				-					-97.35	%				100.00	%					(10,501	)				(77	)				13537.66	%
Less - impairment on acquired facilities						(109	)				-					-					100.00	%				100.00	%					(109	)				(503	)				-78.33	%
Total noninterest expense as adjusted					$	47,140				$	44,625				$	41,858					5.63	%				12.62	%				$	91,766				$	83,164					10.34	%
Asset quality					Nonperforming AssetsAt															Net Charge-OffsFor the Three Months Ended																Net Charge-OffsFor the Six Months Ended
					June 30,					March 31,					June 30,					June 30,					March 31,						June 30,					June 30,					June 30,
						2015					2015					2014					2015					2015						2014					2015					2014
Nonperforming loans
Commercial & industrial loans					$	3,767				$	4,542				$	2,368				$	(29	)			$	182					$	342				$	153				$	1,046
Commercial real estate loans						6,824					8,770					6,586					(102	)				(544	)					463					(646	)				3,317
Small business loans						198					267					433					(19	)				83						36					64					257
Residential real estate loans						8,086					8,693					10,812					16					140						136					156					264
Home equity						7,238					8,015					7,151					217					89						253					306					254
Other consumer						37					53					66					137					135						111					272					315
Total nonperforming loans / total net charge-offs					$	26,150				$	30,340				$	27,416				$	220				$	85					$	1,341				$	305				$	5,453
Nonaccrual securities						-					3,723					2,570
Other assets in possession						-					-					163
Other real estate owned						5,124					6,285					9,512
Total nonperforming assets					$	31,274				$	40,348				$	39,661
Nonperforming loans/gross loans						0.48	%				0.56	%				0.56	%
Nonperforming assets/total assets						0.43	%				0.58	%				0.62	%
Allowance for loan losses/nonperforming loans						210.31	%				179.68	%				198.93	%
Gross loans/total deposits						91.03	%				95.10	%				92.21	%
Allowance for loan losses/total loans						1.01	%				1.01	%				1.12	%
Net charge-offs to average loans (quarter annualized)																					0.02	%				0.01	%					0.11	%
Net charge-offs to average loans (year-to-date)																																					0.01	%				0.23	%
					Three Months Ended
					June 30,2015					March 31,2015					June 30,2014
Nonperforming assets reconciliation
Nonperforming assets beginning balance					$	40,348				$	38,894				$	46,521
New to Nonperforming						4,326					11,523					5,109
Loans charged-off						(1,099	)				(1,525	)				(2,150	)
Loans paid-off						(4,264	)				(5,923	)				(7,615	)
Loans transferred to other real estate owned/other assets						(629	)				(354	)				(3,509	)
Loans restored to performing status						(2,566	)				(891	)				(491	)
New to other real estate owned						941					354					3,511
Sale of other real estate owned						(2,153	)				(1,633	)				(2,169	)
Capital improvements to other real estate owned						100					665					432
Net change in nonaccrual securities						(3,723	)				-					-
Other						(7	)				(762	)				22
Nonperforming assets ending balance					$	31,274				$	40,348				$	39,661
					Troubled Debt RestructuringsAt
					June 30,2015					March 31,2015					June 30,2014
Troubled debt restructurings on accrual status					$	36,750				$	36,887				$	38,925
Troubled debt restructurings on nonaccrual status						5,623					4,899					7,499
Total troubled debt restructurings					$	42,373				$	41,786				$	46,424
					June 30,2015					March 31,2015					June 30,2014
Financial ratios
Book value per common share					$	28.42				$	28.05				$	25.79
Tangible book value per share					$	20.22				$	19.82				$	18.20
Tangible common capital/tangible assets						7.58	%				7.73	%				7.05	%
Capital adequacy
Common equity tier 1 capital ratio (1)						10.24	%				10.08	%				n/a
Tier one leverage capital ratio (1)						9.21	%				9.53	%				8.62	%
(1) Estimated number for June 30, 2015.

INDEPENDENT BANK CORP. SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited - dollars in thousands)			Three Months Ended
			June 30, 2015												March 31, 2015											June 30, 2014
							InterestEarned/Paid												InterestEarned/Paid												InterestEarned/Paid
			AverageBalance								Yield/Rate				AverageBalance								Yield/Rate				AverageBalance								Yield/Rate
Interest-earning assets
Interest-earning deposits with banks, federal funds sold, and short term investments			$	97,274			$	60			0.25	%			$	48,698			$	30			0.25	%			$	110,631			$	69			0.25	%
Securities
Securities - trading				500				-			0.00	%				179				-			0.00	%				-				-			-
Securities - taxable investments				787,023				4,852			2.47	%				745,242				4,627			2.52	%				718,971				4,690			2.62	%
Securities - nontaxable investments (1)				5,044				47			3.74	%				5,585				52			3.78	%				6,107				63			4.14	%
Total securities				792,567				4,899			2.48	%				751,006				4,679			2.53	%				725,078				4,753			2.63	%
Loans held for sale				9,726				58			2.39	%				7,603				51			2.72	%				9,548				96			4.03	%
Loans
Commercial and industrial				860,242				8,499			3.96	%				855,462				8,207			3.89	%				845,848				8,140			3.86	%
Commercial real estate (1)				2,613,347				26,762			4.11	%				2,454,630				25,720			4.25	%				2,284,621				24,723			4.34	%
Commercial construction				291,658				3,204			4.41	%				280,049				2,900			4.20	%				242,465				2,617			4.33	%
Small business				88,884				1,219			5.50	%				86,498				1,172			5.50	%				78,852				1,087			5.53	%
Total commercial				3,854,131				39,684			4.13	%				3,676,639				37,999			4.19	%				3,451,786				36,567			4.25	%
Residential real estate				666,325				6,750			4.06	%				602,490				6,211			4.18	%				540,178				5,320			3.95	%
Home equity				885,618				7,541			3.42	%				869,688				7,419			3.46	%				835,134				7,345			3.53	%
Total consumer real estate				1,551,943				14,291			3.69	%				1,472,178				13,630			3.75	%				1,375,312				12,665			3.69	%
Other consumer				18,016				399			8.88	%				17,893				412			9.34	%				17,819				449			10.11	%
Total loans				5,424,090				54,374			4.02	%				5,166,710				52,041			4.08	%				4,844,917				49,681			4.11	%
Total interest-earning assets			$	6,323,657			$	59,391			3.77	%			$	5,974,017			$	56,801			3.86	%			$	5,690,174			$	54,599			3.85	%
Cash and due from banks				91,479												114,974												114,797
Federal Home Loan Bank stock				37,485												35,076												38,228
Other assets				525,239												494,042												422,739
Total assets			$	6,977,860											$	6,618,109											$	6,265,938
Interest-bearing liabilities
Deposits
Savings and interest checking accounts			$	2,232,790			$	883			0.16	%			$	2,134,044			$	862			0.16	%			$	2,041,213			$	918			0.18	%
Money market				1,113,748				742			0.27	%				1,049,472				676			0.26	%				1,003,485				607			0.24	%
Time deposits				730,825				1,297			0.71	%				689,530				1,225			0.72	%				715,481				1,264			0.71	%
Total interest-bearing deposits			$	4,077,363			$	2,922			0.29	%			$	3,873,046			$	2,763			0.29	%			$	3,760,179			$	2,789			0.30	%
Borrowings
Federal Home Loan Bank borrowings			$	117,557			$	565			1.93	%			$	97,596			$	502			2.09	%			$	131,561			$	862			2.63	%
Customer repurchase agreements and other short-term borrowings				125,495				50			0.16	%				138,836				63			0.18	%				135,831				44			0.13	%
Wholesale repurchase agreements				50,000				298			2.39	%				50,000				286			2.32	%				50,000				289			2.32	%
Junior subordinated debentures				73,604				1,003			5.47	%				73,661				992			5.46	%				73,824				994			5.40	%
Subordinated debentures				35,000				431			4.94	%				51,667				574			4.51	%				30,000				254			3.40	%
Total borrowings			$	401,656			$	2,347			2.34	%			$	411,760			$	2,417			2.38	%			$	421,216			$	2,443			2.33	%
Total interest-bearing liabilities			$	4,479,019			$	5,269			0.47	%			$	4,284,806			$	5,180			0.49	%			$	4,181,395			$	5,232			0.50	%
Demand deposits				1,653,485												1,536,919												1,387,906
Other liabilities				102,901												108,855												83,903
Total liabilities			$	6,235,405											$	5,930,580											$	5,653,204
Stockholders' equity				742,455												687,529												612,734
Total liabilities and stockholders' equity			$	6,977,860											$	6,618,109											$	6,265,938
Net interest income							$	54,122											$	51,621											$	49,367
Interest rate spread (2)											3.30	%											3.37	%											3.35	%
Net interest margin (3)											3.43	%											3.50	%											3.48	%
Supplemental Information
Total deposits, including demand deposits			$	5,730,848			$	2,922							$	5,409,965			$	2,763							$	5,148,085			$	2,789
Cost of total deposits											0.20	%											0.21	%											0.22	%
Total funding liabilities, including demand deposits			$	6,132,504			$	5,269							$	5,821,725			$	5,180							$	5,569,301			$	5,232
Cost of total funding liabilities											0.34	%											0.36	%											0.38	%
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $375,000, $372,000, and $314,000 for the three months ended June 30, 2015, March 31, 2015, and June 30, 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.

			Six Months Ended
			June 30, 2015									June 30, 2014
							InterestEarned/Paid								InterestEarned/Paid
			AverageBalance							Yield/Rate		AverageBalance						Yield/Rate
Interest-earning assets
Interest earning deposits with banks, federal funds sold, and short term investments			$	73,120			$	91		0.25%		$	86,130		$	106		0.25%
Securities
Securities - trading				340				-		0.00%			-			-		-
Securities - taxable investments				766,248				9,479		2.49%			712,698			9,340		2.64%
Securities - nontaxable investments (1)				5,313				99		3.76%			6,125			126		4.15%
Total securities				771,901				9,578		2.50%			718,823			9,466		2.66%
Loans held for sale				8,670				109		2.54%			7,805			147		3.80%
Loans
Commercial and industrial				857,865				16,707		3.93%			831,239			16,083		3.90%
Commercial real estate (1)				2,534,427				52,481		4.18%			2,283,207			48,925		4.32%
Commercial construction				285,886				6,104		4.31%			235,679			4,963		4.25%
Small business				87,698				2,391		5.50%			78,181			2,156		5.56%
Total commercial				3,765,876				77,683		4.16%			3,428,306			72,127		4.24%
Residential real estate				634,583				12,962		4.12%			540,280			10,486		3.91%
Home equity				877,697				14,960		3.44%			829,543			14,603		3.55%
Total consumer real estate				1,512,280				27,922		3.72%			1,369,823			25,089		3.69%
Other consumer				17,955				811		9.11%			18,519			934		10.17%
Total loans				5,296,111				106,416		4.05%			4,816,648			98,150		4.11%
Total interest-earning assets			$	6,149,802			$	116,194		3.81%		$	5,629,406		$	107,869		3.86%
Cash and due from banks				103,161									127,721
Federal Home Loan Bank stock				36,287									39,072
Other assets				509,728									414,099
Total assets			$	6,798,978								$	6,210,298
Interest-bearing liabilities
Deposits
Savings and interest checking accounts			$	2,183,690			$	1,744		0.16%		$	2,002,314		$	1,808		0.18%
Money market				1,081,788				1,418		0.26%			1,000,667			1,226		0.25%
Time deposits				710,292				2,523		0.72%			724,201			2,546		0.71%
Total interest-bearing deposits			$	3,975,770			$	5,685		0.29%		$	3,727,182		$	5,580		0.30%
Borrowings
Federal Home Loan Bank borrowings			$	107,632			$	1,066		2.00%		$	141,362		$	1,864		2.66%
Customer repurchase agreements and other short-term borrowings				132,129				113		0.17%			137,176			99		0.15%
Wholesale repurchase agreements				50,000				584		2.36%			50,000			574		2.32%
Junior subordinated debentures				73,632				1,996		5.47%			73,854			1,986		5.42%
Subordinated debentures				43,287				1,006		4.69%			30,000			502		3.37%
Total borrowings			$	406,680			$	4,765		2.36%		$	432,392		$	5,025		2.34%
Total interest-bearing liabilities			$	4,382,450			$	10,450		0.48%		$	4,159,574		$	10,605		0.51%
Demand deposits				1,595,523									1,367,844
Other liabilities				105,862									75,627
Total liabilities			$	6,083,835								$	5,603,045
Stockholders' equity				715,143									607,253
Total liabilities and stockholders' equity			$	6,798,978								$	6,210,298
Net interest income							$	105,744							$	97,264
Interest rate spread (2)										3.33%								3.35%
Net interest margin (3)										3.47%								3.48%
Supplemental Information
Total deposits, including demand deposits			$	5,571,293			$	5,685				$	5,095,026		$	5,580
Cost of total deposits										0.21%								0.22%
Total funding liabilities, including demand deposits			$	5,977,973			$	10,450				$	5,527,418		$	10,605
Cost of total funding liabilities										0.35%								0.39%
(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $747,000 and $605,000 for the six months ended June 30, 2015 and 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.
Certain amounts in prior year financial statement have been reclassified to conform to the current year's presentation.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150716006501/en/

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.