ROCKLAND, Mass. – Independent Bank Corp. (Nasdaq: INDB), the parent of Rockland Trust Co., reported a profit of $28.38 million for the year ended Dec. 31, a decline of 13.6 percent from the $32.85 million it posted for 2006. Earnings per diluted share shrank to $2.13 per diluted share from the previous year’s $2.19 per share, the bank said in its after-market statement.
Total loans on Dec. 31 amounted to $2.04 billion, an increase of $18.04 million or 0.89 percent from the end of 2006. Growth in business banking, commercial construction loans and other business lending, and home equity lines outweighed declines in residential construction and purchase loans and auto and other consumer loans.
“Business loans increased by $96.8 million, or 8.8 percent, with commercial real estate comprising most of the change .... Business banking loans totaled $70.0 million at Dec. 31, 2007, an increase of $10.1 million or 16.8 percent from Dec. 31, 2006,” the bank said.
“Home equity loans increased $31.7 million or 11.5 percent. Consumer auto loans decreased $50.8 million or 24.6 percent, and total residential real estate loans decreased $56.4 million or 14.2 percent during the 12 months of 2007, consistent with strategic positioning.”
Meanwhile, Independent Bank said it increased its allowance for loan losses to $3.13 million, a 34.06-percent increase from 2006, “consistent with robust loan growth in the company’s commercial loan portfolio.”
The bank’s net interest margin increased to 3.90 percent from the previous year’s 3.85 percent.
Total deposits shrank to $2.03 billion, reflecting “a managed decrease of $63.7 million or 3.1 percent” from their year-ago level, the bank said. A slight increase in savings and checking account deposits was more than offset by declines in certificates of deposit, money market accounts and demand deposits.
Return on average assets fell to 1.05 percent last year from 1.12 percent in 2006, while return on equity fell to 12.93 percent in 2007 from 14.60 percent the year before.
Total assets on Dec. 31 amounted to $2.77 billion, a decline of $60.65 million or 2.1 percent from a year earlier. The company cited “intentional decreases in the company’s security portfolio and certain loan categories,” spurred by “a combination of the flat yield curve environment and the profitability characteristics of these asset classes.”
The bank’s borrowings from the Federal Home Loan Bank edged up 1.97 percent over the year to $311.12 million on Dec. 31 from the year-ago $305.13 million.
Fourth-quarter profit was $7.73 million, a decline of 4.58 percent compared with the year-ago period, Independent Bank said. (Compared with the third quarter’s $8.31 million, net earnings shrank 7.00 percent.) Earnings per diluted share shrank 1 cent compared with the year-ago period, to 56 cents per diluted share.
“During the fourth quarter, the company experienced robust loan growth,” at an annualized rate of 11 percent per year, “of which $61.1 million was in the commercial and commercial real estate category,” Independent Bank said.
Return on average assets increased to 1.13 percent in the quarter just ended from 1.12 percent in the 2006 fourth quarter. But return on average equity shrank to 14.08 percent from the year-ago period’s 14.25 percent.
A regular quarterly dividend of 17 cents per share – payable Jan. 4 to shareholders of record on Dec. 24 – had been announced on Dec. 13 by the Independent Bank board of directors.
Independence Bank Corp.’s acquisition of Somerset-based Slade’s Ferry Bancorp (Nasdaq: SFBC), the parent of the nine-branch Slades Bank, was approved by Slade’s Ferry stockholders, the companies said last night. The deal is now expected to close on or about March 1. (READ MORE.)
Independent Bank Corp. (Nasdaq: INDB) is the parent of Rockland Trust Co., a community bank with more than 50 retail banking branches, nine commercial lending centers and five mortgage origination offices in southeastern Massachusetts and Cape Cod, plus four investment management offices in Massachusetts and Rhode Island. Additional information is available at www.RocklandTrust.com.
