ROCKLAND, Mass. – Independent Bank Corp, the parent company for Massachusetts-based Rockland Trust Co., brought in a $165.2 million profit in 2019, a 35.8% increase, or $43.6 million, over 2018, the company reported last week.
Earnings per diluted share rose 14.3%, from $4.40 at the end of 2018 to $5.03 as of Dec. 31.
Year-end revenue reached $502.4 million, an increase of $120.5 million, or 31.6%, from the $381.9 million reported at the end of 2018. This reflected a 32% jump in net interest income – the difference between interest earned on assets like loans, mortgages and securities and interest paid out to customer deposits – from $293.4 million in 2018 to $387.1 million in 2019. Net interest margin also increased 15 basis points to 4.04% from 3.91%.
Non-interest income also rose 30.3%, from $88.5 million to $115.3 million, including major spikes in mortgage interest income (a 181.36% increase) and loan level derivative income (a 173% increase).
Non-interest expense hit $284.3 million, up 25.8% and $58.3 million over the $226.0 million at the end of 2018.
Year-end assets totaled $11.4 billion, a $2.5 billion and 28.7% increase over the $8.9 billion in assets at the end of 2018. This included a $2 billion and 28.5% increase in total loans, driven largely by the acquisition of Blue Hills Bancorp in the second quarter of 2019, the company reported. Year-end deposits reached $9.1 billion, up 23.2% and $1.7 billion over the $7.4 billion in deposits at the end of 2018.
Fourth-quarter profit increased 58.6% from $29.9 million in quarter four of 2018 to $47.5 million in the three months that ended Dec. 31. Net interest income increased 21.4%, from $79.1 million to $96.0 million, driven primarily by a 642.9% increase in interest on loans held for sale which was partially offset by a 233.3% increase in provision for loan losses.
Quarterly net interest margin decreased 15 basis points, from 3.90% to 4.05%, a function of Federal Reserve interest rate cuts, lower acquired loan accretion income and a decrease in overall earning assets, the bank reported.
Christopher Oddleifson, CEO of Independent Bank Corp. and Rockland Trust Co., called 2019 a “tremendous year” in a statement.
“We achieved record earnings, record profitability and delivered a strong return on equity to our shareholders,” Oddleifson said. “We enter 2020 with strong fundamentals, good momentum and a continuing clear, disciplined focus upon the priorities of our customers.”
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
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