Rockland Trust parent Independent Bank Corp. saw a decline in second-quarter profit driven by costs associated with an acquisition and a borrower unexpectedly being placed in receivership.
By Michael Souza PBN Staff Writer
ROCKLAND - Independent Bank Corp., parent of Rockland Trust Co., posted net income of $8.9 million, or 41 cents per diluted share, for the second quarter, a decline of 20.2 percent when compared with the year-earlier period.
The profit drop came as total revenue for the bank holding company grew 0.7 percent to $63.4 million in the quarter, driven by a $1.5 million increase in non-interest income.
The quarter included a pre-tax expense of $672,000 associated with the acquisition of Central Bancorp Inc., which the bank calculated reduced per-share earnings by 2 cents. The quarter also had a $4 million charge-off that reduced earnings by about 11 cents per share, when a commercial borrower was unexpectedly placed into state court receivership in late June. The charge-off was taken upon receipt of information indicating material misstatements and potential borrower fraud, as well as evidence of invalid and/or altered borrower records.
As a result, the provision for loan losses was $8.5 million for the second quarter compared with $1.6 million for the previous quarter.
Nonperforming loans for the quarter decreased to $31.3 million, or 0.79 percent of total loans, from $31.6 million in the first quarter. Nonperforming assets totaled $43.9 million at the end of the second quarter compared with $40.7 million in the previous-year’s quarter.
Total loans increased to $4.0 billion at June 30, 2012, growth of 11.5 percent, on an annualized basis, from the prior quarter. The securities portfolio of $526.8 million decreased by $36.2 million during the quarter, primarily as a result of paydowns, and represents 10.3 percent of total assets.
independent bank corp.,
rockland trust co.,
decline in earnings per share,
acquisition of central bancorp,
commercial borrower in state court receivership,
potential borrower fraud