Independent Bank Corp. Reports Second Quarter Net Income of $12.8 Million

  Independent Bank Corp. Reports Second Quarter Net Income of $12.8 Million

         Strong Commercial Loan and Core Deposit Growth Drive Results

Business Wire

ROCKLAND, Mass. -- July 11, 2013

Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company,
today announced net income for the second quarter of 2013 was $12.8 million,
or $0.56 on a diluted earnings per share basis. The results of the second
quarter of 2013 represent an increase of $0.02, or 3.7%, on a diluted earnings
per share basis as compared to the first quarter of 2013. These quarters
contained various items such as merger and acquisition expenses and severance
expense, which the Company considers to be non-core in nature. When excluding
these items, net operating earnings for the second quarter were $13.2 million,
or $0.58 on a diluted earnings per share basis which were comparable to the
prior quarter’s net operating results.

Christopher Oddleifson, President and Chief Executive Officer of Independent
Bank Corp. and Rockland Trust Company, stated: “The dedicated efforts of my
colleagues and our top-notch product set ensures a high-quality banking
experience that customers appreciate, resulting in the growth of the Rockland
Trust franchise and strong earnings for the quarter. Continued household
growth fueled an increase in core deposits, and our commercial lending group
had another excellent quarter.”

BALANCE SHEET

Total assets of $5.9 billion at June 30, 2013 have increased by $131.5 million
from the prior quarter and increased by $728.0 million, or 14.2%, as compared
to the year ago period, inclusive of the acquisition of Central Bancorp, Inc.
(“Central”) in November 2012.

Total loans of $4.5 billion at June 30, 2013, have increased by $42.6 million
when compared to the prior quarter and have increased by $549.3 million, or
13.8%, when compared to June 30, 2012. The commercial loan portfolio continued
its strong growth, rising by $86.7 million, or 11.2% on an annualized basis,
during the quarter. Both the commercial and industrial and commercial real
estate sectors generated healthy growth during the quarter. Offsetting the
growth in the commercial portfolio, the residential portfolio decreased by
$41.9 million, or 30.2% on an annualized basis, due to continued high
prepayment activity combined with management’s decision to not retain long
term fixed rate mortgages on the balance sheet.

Deposit growth was strong, increasing by $125.1 million, or 11.0% on an
annualized basis, to $4.7 billion at June 30, 2013. Deposit growth occurred
within core deposits, which grew to 84.6% of total deposits as compared to
82.9% last quarter, partially offset by a reduction in time deposits. Total
cost of deposits declined slightly to 0.23% for the quarter, reflecting the
Company’s continued emphasis on lower cost funding sources.

The securities portfolio of $529.1 million, decreased by $15.7 million during
the quarter and represents 9.0% of total assets at June 30, 2013 as compared
to 9.5% of total assets at March 31, 2013.

Stockholders’ equity at June 30, 2013 rose to $543.6 million, an increase of
1.1% for the quarter. As compared to the year ago period, stockholders’ equity
has increased by $60.0 million, or 12.4%. The Tier 1 common ratio at June 30,
2013 increased to an estimated 9.06%, as compared to 8.96% in the prior
quarter. The Company’s tangible common ratio was 6.72%, representing a slight
decrease from the prior quarter’s level of 6.76% as a result of the Company’s
balance sheet growth combined with the impact of modest securities portfolio
price depreciation due to the significant change in rates.

NET INTEREST INCOME

Net interest income was $45.6 million for the second quarter of 2013, a
$753,000 increase from the linked quarter due primarily to loan growth. The
Company’s net interest margin decreased, modestly by one basis point, to
3.57%, for the second quarter of 2013. Purchase accounting adjustments
resulted in a two basis point increase in the net interest margin when
compared to the prior quarter.

NONINTEREST INCOME

The Company recorded noninterest income of $16.7 million during the second
quarter of 2013 which represents a $968,000, or 6.2%, increase from the prior
quarter. Significant changes in noninterest income included the following:

  *Interchange and ATM fees increased by $433,000, or 18.6%, mainly due to
    seasonal increases in debit card usage.
  *Investment management income increased by $473,000, or 12.2%, driven
    primarily by seasonal tax preparation fees. Assets under administration
    remained consistent at $2.3 billion at June 30, 2013, as compared to the
    linked quarter and were 12.8% above prior year levels.
  *Income from loan level derivatives associated with the Company’s
    commercial customers increased by $284,000 due to increased loan activity
    during the second quarter.
  *Mortgage banking income decreased by $612,000, or 26.8%, primarily due to
    a decrease in refinancing activity due to rising rates.

NONINTEREST EXPENSE

The Company recorded noninterest expense of $42.2 million during the second
quarter of 2013 which represents a $756,000, or 1.8%, decrease from the prior
quarter. Significant changes in noninterest expense included the following:

  *Merger and acquisition expenses associated with the Central Bancorp., Inc.
    and Mayflower Bancorp., Inc. acquisitions were $754,000 for the second
    quarter, representing a decrease of $591,000 from the linked quarter. As
    previously announced the Company has reached a definitive agreement to
    acquire Mayflower Bancorp, Inc. which is expected to close in the fourth
    quarter of 2013.
  *Salaries and employee benefits decreased by $1.1 million, or 4.9%, largely
    as a result of a decline in salary, payroll taxes, overtime, and increased
    deferred loan origination salary costs, offset by increased incentive
    program expenses.
  *Occupancy and equipment expense decreased $330,000, or 6.3%, as a result
    of higher snow removal costs in the first quarter of 2013.
  *Other noninterest expenses increased by $1.2 million, or 10.0%, mainly due
    to an increase in advertising expense of $307,000 due to new marketing
    campaigns, mortgage operation costs of $371,000 due to the Company’s
    transition to an outsourced provider, and loan work-out costs of $264,000.

The Company generated a return on average assets and a return on average
common equity in the second quarter of 2013 of 0.89% and 9.40%, respectively,
as compared to 0.88% and 9.25% for the quarter ended March 31, 2013. On an
operating basis, the return on average assets and the return on average common
equity were 0.93% and 9.74%, respectively, in the second quarter, as compared
to 0.96% and 10.04% in the first quarter.

ASSET QUALITY

The provision for loan losses was $3.1 million for the second quarter compared
to $1.3 million for the quarter ended March 31, 2013. The provision for loan
losses exceeded net charge-offs in both periods as the Company continues to
prudently add to loan loss reserves in line with recent loan growth trends.
For the quarter, net charge-offs increased to $2.0 million, or 0.18%, on an
annualized basis of average loans as compared to $1.2 million, or 0.11%, in
the prior quarter. Nonperforming loans increased by $3.4 million to $36.5
million, or 0.81%, of total loans at June 30, 2013, from $33.1 million, or
0.74% of total loans at March 31, 2013, primarily due to higher nonaccrual
home equity loans. Nonperforming assets increased to $48.1 million at the end
of the second quarter compared to $46.8 million in the linked quarter.
Delinquency as a percentage of loans decreased to 1.03% at June 30, 2013
compared to 1.05% at March 31, 2013.

The allowance for loan losses was $53.0 million at June 30, 2013, an increase
of $1.1 million from the prior quarter levels. The Company’s allowance for
loan losses was 1.17% and 1.15% as a percentage of total loans at June 30,
2013 and December 31, 2012, respectively.

Christopher Oddleifson and Denis K. Sheahan, Chief Financial Officer of
Independent Bank Corp. and Rockland Trust Company, will host a conference call
to discuss second quarter earnings at 10:00 a.m. Eastern Time on Friday, July
12, 2013. Internet access to the call is available on the Company’s website at
www.RocklandTrust.com or via telephonic access by dial-in at 1-888-317-6016
reference: INDB. A replay of the call will be available by calling
1-877-344-7529. Replay Pass code: 10030410. The webcast replay will be
available until July 12, 2014.

Rockland Trust is a full-service commercial bank headquartered in
Massachusetts with $5.9 billion in assets. The sole bank subsidiary of
Independent Bank Corp. (NASDAQ:INDB), Rockland Trust provides a wide range of
consumer, business, investment, and insurance products and services.  Named a
Boston Globe "Best Place to Work" for four consecutive years and one of
America's "Best Banks" by Forbes for three consecutive years, Rockland Trust's
network consists of 75 retail branches, 10 commercial lending offices, four
investment management, and three residential lending centers throughout
Eastern Massachusetts and Rhode Island. To find out why Rockland Trust is the
bank "Where Each Relationship Matters®", please visit www.RocklandTrust.com.
Member FDIC. Equal Housing Lender.

This press release contains certain “forward-looking statements” with respect
to the financial condition, results of operations and business of the Company.
Actual results may differ from those contemplated by these statements. The
Company wishes to caution readers not to place undue reliance on any
forward-looking statements. The Company disclaims any intent or obligation to
update publicly any such forward-looking statements, whether in response to
new information, future events or otherwise.

This press release contains financial information determined by methods other
than in accordance with accounting principles generally accepted in the United
States of America (“GAAP”). Operating earnings, which is a non-GAAP financial
measure, excludes 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 to measure the strength of the
Company’s core banking business and to identify trends that may to some extent
be obscured by such gains or losses. The Company has included information on
operating earnings 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. Non-GAAP operating earnings 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 non-GAAP operating earnings can be of substantial importance to the
Company’s results for any particular quarter or year. The Company’s non-GAAP
operating earnings are not necessarily comparable to non-GAAP performance
measures which may be presented by other companies.

                                                                     
INDEPENDENT
BANK CORP.
FINANCIAL
SUMMARY
                                                                           
                                                                           
                                                                    
                                                                % Change   % Change
CONSOLIDATED                                                    Jun 2013   Jun 2013
BALANCE         June 30,        March 31,       June 30,        vs.        vs.
SHEETS
(Unaudited
Dollars in      2013         2013         2012        Mar 2013   Jun 2012
thousands)
                                                                           
Assets
Cash and due    $ 139,672       $ 70,434        $ 65,826        98.30  %   112.18  %
from banks
Interest
earning           197,266         129,406         121,029       52.44  %   62.99   %
deposits with
banks
Fed funds         -               -               1,524         0.00   %   -100.00 %
sold
Securities
Securities
available for     303,855         335,693         338,331       -9.48  %   -10.19  %
sale
Securities
held to          225,278       209,090       188,450      7.74   %   19.54   %
maturity
Total             529,133         544,783         526,781       -2.87  %   0.45    %
securities
                                                                           
Loans held        32,497          36,790          22,310        -11.67 %   45.66   %
for sale
Loans
Commercial
and               742,343         702,486         625,695       5.67   %   18.64   %
industrial
Commercial        2,150,833       2,123,778       1,912,563     1.27   %   12.46   %
real estate
Commercial        231,719         211,984         149,990       9.31   %   54.49   %
construction
Small            77,283        77,220        79,738       0.08   %   -3.08   %
business
Total             3,202,178       3,115,468       2,767,986     2.78   %   15.69   %
commercial
Residential       509,185         547,649         389,053       -7.02  %   30.88   %
real estate
Residential       4,366           7,764           14,960        -43.77 %   -70.82  %
construction
Home equity -     481,542         481,935         466,136       -0.08  %   3.31    %
1st position
Home equity -    310,908       310,695       310,717      0.07   %   0.06    %
2nd position
Total
consumer real     1,306,001       1,348,043       1,180,866     -3.12  %   10.60   %
estate
Other            21,932        23,967        31,937       -8.49  %   -31.33  %
consumer
Total loans      4,530,111     4,487,478     3,980,789    0.95   %   13.80   %
Less -
allowance for    (52,976   )    (51,906   )    (48,403   )   2.06   %   9.45    %
loan losses
Net loans         4,477,135       4,435,572       3,932,386     0.94   %   13.85   %
Federal Home
Loan Bank         38,674          38,674          33,564        0.00   %   15.22   %
stock
Bank premises     56,344          55,160          49,384        2.15   %   14.09   %
and equipment
Goodwill and
core deposit      161,089         161,616         139,924       -0.33  %   15.13   %
intangible
Other assets     220,785       248,685       231,836      -11.22 %   -4.77   %
Total assets    $ 5,852,595    $ 5,721,120    $ 5,124,564    2.30   %   14.21   %
                                                                           
Liabilities
and
Stockholders'
Equity
Deposits
Demand          $ 1,283,301     $ 1,199,623     $ 1,070,279     6.98   %   19.90   %
deposits
Savings and
interest          1,798,495       1,711,477       1,560,523     5.08   %   15.25   %
checking
accounts
Money market      884,696         872,044         807,796       1.45   %   9.52    %
Time
certificates     709,971       768,266       639,535      -7.59  %   11.01   %
of deposit
Total             4,676,463       4,551,410       4,078,133     2.75   %   14.67   %
deposits
Borrowings
Federal Home
Loan Bank and     261,456         267,091         189,522       -2.11  %   37.96   %
other
borrowings
Wholesale
repurchase        50,000          50,000          50,000        0.00   %   0.00    %
agreements
Customer
repurchase        141,826         129,618         144,838       9.42   %   -2.08   %
agreements
Junior
subordinated      74,018          74,073          61,857        -0.07  %   19.66   %
debentures
Subordinated     30,000        30,000        30,000       0.00   %   0.00    %
debentures
Total             557,300         550,782         476,217       1.18   %   17.03   %
borrowings
Total
deposits and      5,233,763       5,102,192       4,554,350     2.58   %   14.92   %
borrowings
Other             75,227          81,353          86,622        -7.53  %   -13.15  %
liabilities
Stockholders'
equity
Common stock      226             226             214           0.00   %   5.61    %
Additional
paid in           272,165         270,927         236,279       0.46   %   15.19   %
capital
Retained          278,611         270,891         251,429       2.85   %   10.81   %
earnings
Accumulated
other
comprehensive    (7,397    )    (4,469    )    (4,330    )   65.52  %   70.83   %
loss, net of
tax
Total
stockholders'    543,605       537,575       483,592      1.12   %   12.41   %
equity
Total
liabilities
and             $ 5,852,595    $ 5,721,120    $ 5,124,564    2.30   %   14.21   %
stockholders'
equity
                                                                           

                                                                                
CONSOLIDATED           Three Months Ended
STATEMENTS OF INCOME
(Unaudited Dollars                                                        % Change    % Change
in thousands)
                       June 30,         March 31,        June 30,         Jun 2013    Jun 2013
                                                                          vs.         vs.
                        2013           2013           2012          Mar 2013    Jun 2012
                                                                                      
Interest income
Interest on fed
funds sold and short   $ 21             $ 34             $ 19             -38.24  %   10.53   %
term investments
Interest and
dividends on             3,517            3,540            4,438          -0.65   %   -20.75  %
securities
Interest on loans        47,720           46,978           43,813         1.58    %   8.92    %
Interest on loans       237            268            156           -11.57  %   51.92   %
held for sale
Total interest           51,495           50,820           48,426         1.33    %   6.34    %
income
Interest expense
Interest on deposits     2,543            2,665            2,687          -4.58   %   -5.36   %
Interest on borrowed    3,337          3,293          3,111         1.34    %   7.26    %
funds
Total interest          5,880          5,958          5,798         -1.31   %   1.41    %
expense
Net interest income      45,615           44,862           42,628         1.68    %   7.01    %
Less - provision for    3,100          1,300          8,500         138.46  %   -63.53  %
loan losses
Net interest income
after provision for      42,515           43,562           34,128         -2.40   %   24.58   %
loan losses
Noninterest income
Deposit account fees     4,343            4,217            3,923          2.99    %   10.71   %
Interchange and ATM      2,761            2,328            2,399          18.60   %   15.09   %
fees
Investment               4,357            3,884            3,827          12.18   %   13.85   %
management
Mortgage banking         1,669            2,281            1,463          -26.83  %   14.08   %
income
Increase in cash
surrender value of       786              746              741            5.36    %   6.07    %
life insurance
policies
Loan level               816              532              1,371          53.38   %   -40.48  %
derivative income
Gross Change on
Write-Down of            90               (281       )     (106       )   -132.03 %   -184.91 %
Certain Investments
to Fair Value
Less: Portion of
Other-Than-Temporary    (90        )    281            30            -132.03 %   -400.00 %
Impairment Losses
Recognized in OCI
Net Loss on
Write-Down of            -                -                (76        )   n/a         -100.00 %
Certain Investments
to Fair Value
Other noninterest       1,960          1,736          1,335         12.90   %   46.82   %
income
Total noninterest        16,692           15,724           14,983         6.16    %   11.41   %
income
Noninterest expense
Salaries and             21,594           22,715           19,775         -4.94   %   9.20    %
employee benefits
Occupancy and            4,919            5,249            4,234          -6.29   %   16.18   %
equipment expenses
Data processing and
facilities               1,201            1,184            1,099          1.44    %   9.28    %
management
FDIC assessment          934              821              830            13.76   %   12.53   %
Merger and               754              1,345            672            -43.94  %   12.20   %
acquisition expenses
Other noninterest       12,762         11,606         10,389        9.96    %   22.84   %
expense
Total noninterest        42,164           42,920           36,999         -1.76   %   13.96   %
expense
Income before income    17,043         16,366         12,112        4.14    %   40.71   %
taxes
Provision for income    4,285          4,114          3,238         4.16    %   32.33   %
taxes
Net income             $ 12,758        $ 12,252        $ 8,874         4.13    %   43.77   %
                                                                                      
Basic earnings per     $ 0.56           $ 0.54           $ 0.41           3.70    %   36.59   %
share
Diluted earnings per   $ 0.56           $ 0.54           $ 0.41           3.70    %   36.59   %
share
Basic average shares     22,888,155       22,823,753       21,623,827
Diluted average          22,940,299       22,869,793       21,644,204
shares
                                                                                      
Performance ratios
Net interest margin      3.57       %     3.58       %     3.80       %
(FTE)
Return on average        0.89       %     0.88       %     0.71       %
assets
Return on average        9.40       %     9.25       %     7.34       %
common equity
                                                                                      
Reconciliation table
- non-GAAP financial
information
Net income             $ 12,758         $ 12,252         $ 8,874          4.13    %   43.77   %
Noninterest expense
components
Add - severance, net     -                192              -
of tax
Add - merger &
acquisition             458            856            397                      
expenses, net of tax
Net operating          $ 13,216        $ 13,300        $ 9,271         -0.63   %   42.55   %
earnings
                                                                                      
Diluted earnings per
share, on an           $ 0.58          $ 0.58          $ 0.43          0.00    %   34.88   %
operating basis
                                                                                              


CONSOLIDATED STATEMENTS OF INCOME
                               Six Months Ended                 % Change
                                June 30,        June 30,         Jun 2013 vs.
                                 2013           2012          Jun 2012
                                                                  
INTEREST INCOME
Interest on Fed Funds Sold      $ 55             $ 51             7.84      %
and Short Term Investments
Interest and Dividends on         7,057            8,994          -21.54    %
Securities
Interest on Loans                 94,699           86,891         8.99      %
Interest on Loans Held for       505            286           76.57     %
Sale
Total Interest Income             102,316          96,222         6.33      %
INTEREST EXPENSE
Interest on Deposits              5,208            5,426          -4.02     %
Interest on Borrowed Funds       6,630          6,316         4.97      %
Total Interest Expense           11,838         11,742        0.82      %
Net Interest Income               90,478           84,480         7.10      %
Less - Provision for Loan        4,400          10,100        -56.44    %
Losses
Net Interest Income after         86,078           74,380         15.73     %
Provision for Loan Losses
NONINTEREST INCOME
Deposit Account Fees              8,559            7,812          9.56      %
Interchange and ATM Fees          5,089            4,767          6.75      %
Investment Management             8,242            7,390          11.53     %
Mortgage Banking Income           3,951            2,793          41.46     %
Increase in Cash Surrender
Value of Life Insurance           1,531            1,454          5.30      %
Policies
Loan Level Derivative Income      1,348            1,699          -20.66    %
Gross Change on Write-Down of
Certain Investments to Fair       372              168            121.43    %
Value
Less: Portion of
Other-Than-Temporary             (372       )    (244       )   52.46     %
Impairment Losses Recognized
in OCI
Net Loss on Write-Down of
Certain Investments to Fair       -                (76        )   -100.00   %
Value
Other Noninterest Income         3,694          3,054         20.96     %
Total Noninterest Income          32,414           28,893         12.19     %
NONINTEREST EXPENSE
Salaries and Employee             44,309           41,211         7.52      %
Benefits
Occupancy and Equipment           10,169           8,534          19.16     %
Expenses
Data Processing and               2,385            2,274          4.88      %
Facilities Management
FDIC Assessment                   1,755            1,579          11.15     %
Merger and acquisition            2,099            672            212.35    %
expenses
Other Noninterest Expense        24,366         20,086        21.31     %
Total Noninterest Expense         85,083           74,356         14.43     %
INCOME BEFORE INCOME TAXES       33,409         28,917        15.53     %
PROVISION FOR INCOME TAXES       8,399          7,860         6.86      %
NET INCOME                      $ 25,010        $ 21,057        18.77     %
                                                                  
BASIC EARNINGS PER SHARE        $ 1.09           $ 0.98           11.22     %
DILUTED EARNINGS PER SHARE      $ 1.09           $ 0.97           12.37     %
BASIC AVERAGE SHARES              22,856,132       21,592,416
DILUTED AVERAGE SHARES            22,905,236       21,614,667
                                                                  
PERFORMANCE RATIOS
Net Interest Margin (FTE)         3.58       %     3.81       %
Return on Average Assets          0.89       %     0.86       %
Return on Average Common          9.33       %     8.81       %
Equity
                                                                  
RECONCILIATION TABLE -
NON-GAAP FINANCIAL
INFORMATION
NET INCOME                      $ 25,010         $ 21,057         18.77     %
Noninterest Expense
Components
Add - severance, net of tax       192              -
Add - merger & acquisition       1,314          397           
expenses, net of tax
NET OPERATING EARNINGS          $ 26,516        $ 21,454        23.59     %
                                                                  
Diluted Earnings Per Share,     $ 1.16          $ 0.99          17.17     %
on an Operating Basis
                                                                            

                                                                                                                   
Reconciliation table
- non-GAAP financial
information
(Unaudited Dollars     Three Months Ended                                                          Six Months Ended
in thousands)
                                                                % Change     %                                               % Change
                                                                             Change
                       June 30,     March 31,    June 30,     Jun 2013     Jun 2013                June 30,     June 30,     Jun 2013
                                                              vs.          vs.                                               vs.
                        2013       2013       2012      Mar 2013     Jun 2012                 2013       2012      Jun 2012
                                                                                                                             
                                                                                                                             
Noninterest expense    $ 42,164     $ 42,920     $ 36,999       -1.76  %     13.96 %               $ 85,083     $ 74,356     14.43   %
GAAP
Less - severance         -            (325   )     -            100.00 %     n/a                     (325   )     -          -100.00 %
Less - merger and       (754   )    (1,345 )    (672   )    -43.94 %    12.20 %                (2,099 )    (672   )   212.35  %
acquisition expenses
Total noninterest      $ 41,410    $ 41,250    $ 36,327     0.39   %    13.99 %               $ 82,659    $ 73,684    12.18   %
expense as adjusted
                                                                                                                             
                                                                                                                             
                                                                                                                             
                                                                                                                             
Asset quality          Nonperforming Assets                   Net Charge-Offs                      Net Charge-Offs
                       At                                     For the Three Months Ending          For the Six Months
                                                                                                   Ending
                       June 30,     March 31,    June 30,     June 30,     March 31,   June 30,    June 30,     June 30,
                        2013       2013       2012       2013      2013      2012      2013       2012   
                                                                                                                             
Nonperforming loans
Commercial &           $ 3,009      $ 3,188      $ 4,404      $ 1,199      $ 287       $ 4,594     $ 1,486      $ 4,409
industrial loans
Commercial real          10,134       9,355        9,371      $ 188          407         2,133       595          2,737
estate loans
Small business loans     698          680          588        $ 239          106         90          345          208
Residential real         12,496       11,950       9,939      $ 100          61          105         161          214
estate loans
Home equity              10,024       7,687        6,768      $ 227          256         1,373       483          2,110
Other consumer          188        231        252       $ 78         111       142       189       279    
Total Nonperforming
Loans / Total Net      $ 36,549    $ 33,091    $ 31,322    $ 2,031     $ 1,228    $ 8,437    $ 3,259    $ 9,957  
Charge-offs
Nonaccrual               2,169        1,903        1,259
securities
Other assets in          176          176          1
possession
Other real estate       9,211      11,645     11,275 
owned
Total nonperforming    $ 48,105    $ 46,815    $ 43,857 
assets
                                                                                                                             
Nonperforming            0.81   %     0.74   %     0.79   %
loans/gross loans
Allowance for loan
losses/nonperforming     144.95 %     156.86 %     154.53 %
loans
Gross loans/total        96.87  %     98.60  %     97.61  %
deposits
Allowance for loan       1.17   %     1.16   %     1.22   %
losses/total loans
                                                                                                                             
Net charge-offs to
average loans                                                   0.18   %     0.11  %     0.86  %
(quarter annualized)
Net charge-offs to
average loans                                                                                        0.15   %     0.52   %
(year-to-date)
                       Troubled Debt Restructurings
                       At
                       June 30,     March 31,    June 30,
                        2013       2013       2012   
Troubled debt
restructurings on      $ 38,898     $ 41,682     $ 40,184
accrual status
Troubled debt
restructurings on       9,777     8,748     4,561  
nonaccrual status
Total troubled debt    $ 48,675   $ 50,430   $ 44,745 
restructurings
                                                                                                                             
                       Three        Three        Three
                       Months       Months       Months
                       Ending       Ending       Ending
                       June 30,     March 31,    June 30,
Nonperforming assets    2013       2013       2012   
reconciliation
Nonperforming assets   $ 46,815     $ 42,427     $ 40,736
beginning balance
New to Nonperforming     11,907       10,243       18,895
Loans charged-off        (2,479 )     (1,574 )     (8,768 )
Loans paid-off           (4,543 )     (2,402 )     (2,934 )
Loans transferred to
other real estate        (368   )     (771   )     (3,579 )
owned/other assets
Loans restored to        (1,087 )     (1,096 )     (3,946 )
accrual status
New to other real        368          771          3,579
estate owned
Sale of other real       (3,793 )     (918   )     (383   )
estate owned
Other                   1,285      135        257    
Nonperforming assets   $ 48,105    $ 46,815    $ 43,857 
ending balance
                                                                                                                             
                                                                                                                             
                                                                                                                             
                       June 30,     March 31,    June 30,
Financial ratios        2013       2013       2012   
Book value per         $ 23.73      $ 23.50      $ 22.36
common share
Tangible common book
value per share
(proforma to include   $ 17.56      $ 17.31      $ 16.80
the tax
deductibility of
goodwill) - non-GAAP
Tangible common
capital/tangible         6.72   %     6.76   %     6.89   %
assets
Tangible common
capital/tangible
asset (proforma to       7.04   %     7.09   %     7.26   %
include the tax
deductibility of
goodwill) - non-GAAP
                                                                                                                             
Capital adequacy
Tier one leverage        8.56   %     8.51   %     8.68   %
capital ratio (1)
Tier one common          9.06   %     8.96   %     9.13   %
ratio (1)
(1) Estimated number
for June 30, 2013
                                                                                                                             

                                                                                                      
INDEPENDENT BANK
CORP.
SUPPLEMENTAL
FINANCIAL
INFORMATION
                                                                                                                
(Unaudited -
Dollars in         Three Months Ended
thousands)
                   June 30, 2013                    March 31, 2013                   June 30, 2012
                                 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     $ 34,379      $ 21       0.25 %   $ 53,149      $ 34       0.26 %   $ 30,890      $ 19       0.25 %
funds sold, and
short term
investments
Securities
Taxable
investment           533,823       3,506    2.63 %     523,550       3,529    2.73 %     544,822       4,415    3.26 %
securities
Nontaxable
investment          916          18       7.88 %    916          18       7.97 %    1,938        39       8.09 %
securities (1)
Total securities     534,739       3,524    2.64 %     524,466       3,547    2.74 %     546,760       4,454    3.28 %
Loans held for       35,945        237      2.64 %     41,890        268      2.59 %     20,079        156      3.12 %
sale
Loans
Commercial and       735,517       7,338    4.00 %     693,284       6,838    4.00 %     620,364       6,294    4.08 %
industrial
Commercial real      2,149,662     24,242   4.52 %     2,121,824     23,729   4.54 %     1,896,941     22,973   4.87 %
estate (1)
Commercial           224,453       2,307    4.12 %     199,303       2,016    4.10 %     149,627       1,578    4.24 %
construction
Small business      77,747       1,092   5.63 %    77,688       1,060   5.53 %    80,324       1,132    5.67 %
Total commercial     3,187,379     34,979   4.40 %     3,092,099     33,643   4.41 %     2,747,256     31,977   4.68 %
Residential real     531,322       5,338    4.03 %     572,715       5,837    4.13 %     393,377       4,267    4.36 %
estate
Residential          5,816         51       3.52 %     7,902         81       4.16 %     15,041        161      4.31 %
construction
Home equity         793,381      7,069   3.57 %    797,204      7,094   3.61 %    757,850      6,939    3.68 %
Total consumer       1,330,519     12,458   3.76 %     1,377,821     13,012   3.83 %     1,166,268     11,367   3.92 %
real estate
Other consumer      23,099       517      8.98 %    25,884       561      8.79 %    34,261       728      8.55 %
Total loans         4,540,997   47,954  4.24 %    4,495,804   47,216  4.26 %    3,947,785   44,072  4.49 %
Total
interest-earning   $ 5,146,060  $ 51,736  4.03 %   $ 5,115,309  $ 51,065  4.05 %   $ 4,545,514  $ 48,701  4.31 %
assets
Cash and due         131,214                           68,653                            63,703
from banks
Federal Home         38,674                            41,045                            33,564
Loan Bank stock
Other assets        405,721                          420,470                          362,746
Total assets       $ 5,721,669                       $ 5,645,477                       $ 5,005,527
Interest-bearing
liabilities
Deposits
Savings and
interest           $ 1,681,666   $ 674      0.16 %   $ 1,612,395   $ 707      0.18 %   $ 1,482,889   $ 687      0.19 %
checking
accounts
Money market         873,412       550      0.25 %     868,405       578      0.27 %     799,831       621      0.31 %
Time deposits       722,486     1,319   0.73 %    758,504     1,380   0.74 %    627,250     1,379   0.88 %
Total
interest-bearing   $ 3,277,564   $ 2,543    0.31 %   $ 3,239,304   $ 2,665    0.33 %   $ 2,909,970   $ 2,687    0.37 %
deposits
Borrowings
Federal Home
Loan Bank and      $ 306,291     $ 1,453    1.90 %   $ 279,258     $ 1,420    2.06 %   $ 219,846     $ 1,280    2.34 %
other borrowings
Wholesale
repurchase           50,000        289      2.32 %     50,000        286      2.32 %     50,000        289      2.32 %
agreements
Customer
repurchase           135,107       45       0.13 %     147,966       49       0.13 %     145,963       83       0.23 %
agreements
Junior
subordinated         74,045        1,009    5.47 %     74,104        999      5.47 %     61,857        918      5.97 %
debentures
Subordinated        30,000      541     7.23 %    30,000      539     7.29 %    30,000      541     7.25 %
debentures
Total borrowings   $ 595,443    $ 3,337   2.25 %   $ 581,328    $ 3,293   2.30 %   $ 507,666    $ 3,111   2.46 %
Total
interest-bearing   $ 3,873,007  $ 5,880   0.61 %   $ 3,820,632  $ 5,958   0.63 %   $ 3,417,636  $ 5,798   0.68 %
liabilities
Demand deposits      1,227,294                         1,200,810                         1,023,048
Other               77,177                           86,769                           78,430
liabilities
Total              $ 5,177,478                       $ 5,108,211                       $ 4,519,114
liabilities
Stockholders'       544,191                          537,266                          486,413
equity
Total
liabilities and    $ 5,721,669                       $ 5,645,477                       $ 5,005,527
stockholders'
equity
                                                                                                                
Net interest                     $ 45,856                          $ 45,107                          $ 42,903
income
                                                                                                                
Interest rate                               3.42 %                            3.42 %                            3.63 %
spread (2)
                                                                                                                
Net interest                                3.57 %                            3.58 %                            3.80 %
margin (3)
                                                                                                                
Supplemental
Information
Total deposits,
including demand   $ 4,504,858   $ 2,543             $ 4,440,114   $ 2,665             $ 3,933,018   $ 2,687
deposits
Cost of total                               0.23 %                            0.24 %                            0.27 %
deposits
Total funding
liabilities,       $ 5,100,301   $ 5,880             $ 5,021,442   $ 5,958             $ 4,440,684   $ 5,798
including demand
deposits
Cost of total
funding                                     0.46 %                            0.48 %                            0.53 %
liabilities
                                                                                                                
                                                                                                                

(1) The total amount of adjustment to present interest income and yield on a
fully tax-equivalent basis is $241,000, $245,000, and $275,000 for the three
months ended June 30, 2013, March 31, 2013, and June 30, 2012, 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, 2013                      June 30, 2012
                                 Interest                           Interest
                   Average       Earned/     Yield/   Average       Earned/    Yield/
                   Balance      Paid       Rate     Balance      Paid      Rate
                                                                               
                                                                               
Interest-Earning
Assets
Interest Earning
Deposits with
Banks, Federal     $ 43,712      $ 55        0.25 %   $ 42,059      $ 51       0.24 %
Funds Sold, and
Short Term
Investments
Securities
Trading Assets       0             -         0.00 %     2,745         38       2.78 %
Taxable
Investment           528,715       7,035     2.68 %     537,572       8,904    3.33 %
Securities
Nontaxable
Investment          916          37        8.15 %    2,216        88       7.99 %
Securities (1)
Total                529,631       7,072     2.69 %     542,533       9,030    3.35 %
Securities:
Loans Held for       38,901        505       2.62 %     18,634        286      3.09 %
Sale
Loans
Commercial and       714,517       14,176    4.00 %     599,726       12,196   4.09 %
Industrial
Commercial Real      2,135,820     47,968    4.53 %     1,872,531     45,706   4.91 %
Estate (1)
Commercial           211,947       4,323     4.11 %     146,178       3,121    4.29 %
Construction
Small Business      77,717       2,152     5.58 %    79,515       2,268   5.74 %
Total Commercial     3,140,001     68,619    4.41 %     2,697,950     63,291   4.72 %
Residential Real     551,904       11,175    4.08 %     401,991       8,733    4.37 %
Estate
Residential          6,853         132       3.88 %     13,331        291      4.39 %
Construction
Home Equity         795,282      14,163    3.59 %    737,735      13,599  3.71 %
Total Consumer       1,354,039     25,470    3.79 %     1,153,057     22,623   3.95 %
Real Estate
Total Other         24,485       1,081     8.90 %    36,479       1,500    8.27 %
Consumer
Total Loans         4,518,525   95,170   4.25 %    3,887,486   87,414  4.52 %
Total
Interest-Earning   $ 5,130,769  $ 102,802  4.04 %   $ 4,490,712  $ 96,781  4.33 %
Assets
Cash and Due         100,106                            60,965
from Banks
Federal Home         39,853                             34,420
Loan Bank Stock
Other Assets        413,055                           365,073
Total Assets       $ 5,683,783                        $ 4,951,170
Interest-Bearing
Liabilities
Deposits
Savings and
Interest           $ 1,647,222   $ 1,380     0.17 %   $ 1,453,672   $ 1,384    0.19 %
Checking
Accounts
Money Market         870,922       1,129     0.26 %     784,861       1,260    0.32 %
Time Deposits       740,396     2,700    0.74 %    626,864     2,782   0.89 %
Total
Interest-Bearing   $ 3,258,540   $ 5,209     0.32 %   $ 2,865,397   $ 5,426    0.38 %
Deposits
Borrowings
Federal Home
Loan Bank and      $ 292,849     $ 2,872     1.98 %   $ 223,105     $ 2,624    2.37 %
Other Borrowings
Wholesale
Repurchase           50,000        574       2.32 %     50,000        578      2.32 %
Agreements
Customer
Repurchase           141,501       94        0.13 %     152,226       193      0.25 %
Agreements
Junior
Subordinated         74,074        2,009     5.47 %     61,857        1,838    5.98 %
Debentures
Subordinated        30,000      1,080    7.26 %    30,000      1,083   7.26 %
Debentures
Total Borrowings   $ 588,424    $ 6,629    2.27 %   $ 517,188    $ 6,316   2.46 %
Total
Interest-Bearing   $ 3,846,964  $ 11,838   0.62 %   $ 3,382,585  $ 11,742  0.70 %
Liabilities
Demand Deposits      1,214,126                          1,004,251
Other               81,945                            83,516
Liabilities
Total              $ 5,143,035                        $ 4,470,352
Liabilities
Stockholders'       540,748                           480,818
Equity
Total
Liabilities and    $ 5,683,783                        $ 4,951,170
Stockholders'
Equity
                                                                               
Net Interest                     $ 90,964                           $ 85,039
Income
                                                                               
Interest Rate                                3.42 %                            3.64 %
Spread (2)
                                                                               
Net Interest                                 3.58 %                            3.81 %
Margin (3)
                                                                               
Supplemental
Information:
Total Deposits,
including Demand   $ 4,472,666   $ 5,209              $ 3,869,648   $ 5,426
Deposits
Cost of Total                                0.23 %                            0.28 %
Deposits
Total Funding
Liabilities,       $ 5,061,090   $ 11,838             $ 4,386,836   $ 11,743
including Demand
Deposits
Cost of Total
Funding                                      0.47 %                            0.54 %
Liabilities
                                                                               
                                                                               

(1) The total amount of adjustment to present interest income and yield on a
fully tax-equivalent basis is $486,000 and $559,000 for the six months ended
June 30, 2013 and 2012, 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.

Contact:

Independent Bank Corp.
Chris Oddleifson, 781-982-6660
President and
Chief Executive Officer
or
Denis K. Sheahan, 781-982-6341
Chief Financial Officer