ROCKLAND, Massachusetts – Independent Bank Corp. (Nasdaq: INDB), parent of Rockland Trust Co., says it finished the first quarter with a profit of $9.23 million, up 44.4 percent from the $6.39 million in the same period a year earlier.
Earnings totaled 44 cents per diluted share, up 12 cents from the first quarter of 2009. The result beat the consensus estimate of 43 cents from analysts who follow Independent Bank, according to Yahoo! Finance.
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“It’s always nice to report a good start to the year,” Christopher Oddleifson, president and CEO of Independent Bank, said in a statement.
Independent, which has Rockland Trust branches in Massachusetts but also does business in Rhode Island, posted $60.9 million in revenue from Jan. 1 to March 31, up 13 percent from the first quarter of 2009.
The increase was due largely to an $8.27 million year-over-year increase in interest income on loans to $44.05 million, thanks in part to a 4.08 percent interest margin that widened from 3.62 percent a year earlier.
Non-interest income declined 4 percent from the first quarter of 2009 to $10.05 million in part because of a $358,000 other-than-temporary-impairment charge.
The bank – as many financial institutions are doing – continued to brace for a deterioration in its loan portfolio.
The bank’s loan-loss provision – funds set aside for anticipated bad loans – climbed to $4.65 million for the first quarter, up from a set-aside of $4 million a year earlier.
Nonperforming assets – typically loans and leases that are more than 90 days overdue – totaled $41.84 million as of March 31, up from $36.18 million three months ago and from $28.96 million a year ago.
The nonperforming assets totaled 1.23 percent of gross loans, compared with 1.07 percent on Jan. 1 and 1.09 percent a year earlier.
Net charge-offs – loans that the bank has determined are uncollectible – for the first quarter totaled $1.73 million, nearly half of the $3.42 million of charge-offs recorded in the previous quarter.
Additional information is available at rocklandtrust.com.
