PROVIDENCE – Independent Bank Corp., the parent company for Rockland Trust Co., reported a $26.8 million profit in the first quarter of 2020, 24% less than a year prior, the company announced on Thursday.
The cut to profits came primarily from a $24 million increase in the company’s provision for credit losses – bringing the total to $25 million – based on anticipated bad loans caused by the coronavirus pandemic, as well as changes to federal accounting standards, the company stated.
Earnings per diluted share decreased from $1.25 in quarter one of 2019 to 78 cents as of March 31.
Total revenue increased 16% year over year to $120.7 million. This included a 22.8% bump in noninterest income to $26.4 million, reflecting a 461% spike in loan derivative income and a 100% increase in gains on life insurance benefits.
Net interest income – the difference between interest earned on assets such as loans, mortgages and securities and interest paid out to customer deposits – was up 14.3% to $94.3 million, including a nearly $200 million increase in interest on loans held for sale, which was partially offset by a decline in interest on federal funds sold and short-term investments.
Noninterest expenses increased 18.7% to $66.8 million, including $4.2 million more in salaries and employee benefits.
Total loans grew by $1.9 billion to a total of $8.9 billion, driven primarily by a $1.2 billion bump in commercial loans.
Total assets stood at $11.5 billion compared with $9 billion in the first quarter of 2019. Total deposits reached $9.4 billion compared with $7.5 billion in the same time frame last year.
The net interest margin – the difference between interest income generated and the amount of interest paid out to lenders – declined 40 basis points to $3.74%.
“Rockland Trust is anchored by a strong capital position, ample sources of liquidity and strong core deposits,” said Christopher Oddliefson, CEO of Independent Bank Corp. and Rockland Trust Col, said in a statement. “We believe we are well-positioned as we move forward during this unprecedented time.”
Nancy Lavin is a staff writer for PBN. Contact her at Lavin@pbn.com.
