Business Wire | Oct 21, 2021 04:16PM EDT

Independent Bank Corp. Reports Third Quarter Net Income of $40.0 Million

Oct. 21, 2021

ROCKLAND, Mass.--(BUSINESS WIRE)--Oct. 21, 2021--Independent Bank Corp. (Nasdaq Global Select Market: INDB), parent of Rockland Trust Company, today announced 2021 third quarter net income of $40.0 million, or $1.21 per diluted share, compared to net income of $37.6 million, or $1.14 per diluted share, reported for the second quarter of 2021. Third quarter results included merger-related costs of $1.9 million associated with the acquisition of Meridian Bancorp Inc. ("Meridian") and its subsidiary, East Boston Savings Bank, which is expected to close in the fourth quarter of 2021. Excluding merger-related costs, net of tax, operating net income was $41.4 million, or $1.25 per diluted share, for the third quarter of 2021 compared to operating net income of $38.8 million, or $1.17 per diluted share for the second quarter of 2021. Please refer to "Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP)" below for a reconciliation of net income to operating net income.

"We enjoyed another quarter of solid performance owing to our sound fundamentals," said Christopher Oddleifson, the Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company. "While remaining focused on organic growth and providing best-in-class customer services to our customers, we have been hard at work collaborating with our counterparts at East Boston Savings Bank to prepare for the anticipated fourth quarter closing of the transaction, and we continue to be excited by the prospects of the combined companies. I would like to thank each of my colleagues for their dedication and contributions toward ensuring Rockland Trust lives out its mission of being the bank Where Each Relationship Matters(r)."

BALANCE SHEET

Total assets of $14.5 billion at September 30, 2021 increased by $339.1 million, or 2.4%, from the prior quarter, and by $1.4 billion, or 10.3%, as compared to the year ago period, driven by continued significant growth in deposits and cash balances. During the third quarter of 2021, the Company accelerated its deployment of a portion of this excess cash into investment securities.

Total loans at September 30, 2021 decreased by $131.0 million, or 1.5% (5.8% annualized), when compared to the prior quarter which was primarily attributable to a net reduction in Paycheck Protection Program ("PPP") loan balances. Exclusive of PPP loan activity, total loans declined $31.9 million, (1.5% annualized) reflecting ongoing heightened payoff activity, partially offset by continued strong closing activity. Excluding PPP loan activity, commercial loans increased $3.2 million, or 0.1% (0.2% annualized) during the third quarter, primarily due to growth in construction balances of $18.9 million, or 3.8%, and commercial and industrial of $13.3 million, or 1.07%, offset by a decrease in commercial real estate balances of $30.3 million, or 0.7%, from the prior quarter. New origination activity remained well diversified across various industries for the third quarter of 2021, with the largest volume of new loans attributable to residential development properties. On the consumer side, despite strong volumes of new loan originations, the low interest-rate environment and excess consumer liquidity positions continued to drive elevated payoff activity and historically low home equity line utilization rates, which led to decreases in both residential and home equity loan balances of $17.4 million and $17.9 million, respectively, when compared to the prior quarter.

Deposit balances of $12.3 billion at September 30, 2021 increased by $273.2 million, or 2.3% (9.0% annualized), from the prior quarter, reflecting continued robust new account activity in both consumer and business product categories, as well as increases on existing balances. With continued reduction in time deposit balances, core deposits increased to 92.0% of total deposits at September 30, 2021. This reduction in higher cost time deposits, combined with further rate reductions, contributed to a total cost of deposits for the third quarter of 0.05%, representing a reduction of two basis points when compared to the prior quarter.

The securities portfolio increased by $636.0 million, or 37.8%, when compared to the prior quarter, reflecting the aforementioned strategy to deploy a portion of excess cash balances into investment securities. Total purchases for the quarter were $733.1 million, offset by paydowns, calls, and maturities.

Total borrowings decreased by $14.7 million, or 8.5% when compared to the prior quarter reflecting repayments of outstanding debt, including the maturity of a $10 million advance from the Federal Home Loan Bank.

Stockholders' equity at September 30, 2021 increased by 0.8% (3.3% annualized), as compared to the prior quarter, reflecting continued strong earnings retention. Book value per share increased by $0.42, or 0.8%, to $53.14 during the third quarter as compared to the prior quarter. The Company's ratio of common equity to assets of 12.08% decreased by 19 basis points from the prior quarter and by 75 basis points from the year ago period, reflecting the significant growth in liquid assets. The Company's tangible book value per share at September 30, 2021 rose by $0.46, or 1.3%, from the prior quarter to $37.24, representing an increase of 5.9% from the year ago period. The Company's ratio of tangible common equity to tangible assets of 8.79% at September 30, 2021 represents a decrease of 10 basis points from the prior quarter and a decrease of 38 basis points from the year ago period. Please refer to Appendix A for a detailed reconciliation of Non-GAAP metrics.

NET INTEREST INCOME

Net interest income for the third quarter decreased to $90.1 million compared to $93.4 million for the prior quarter, driven primarily by a reduction in PPP fee recognition of $5.0 million, as $2.2 million was recognized in the third quarter compared to $7.2 million for the prior quarter. The combination of lower PPP fees and increased balances in short term, lower yielding assets in the third quarter compared to the prior quarter contributed to a 23 basis point reduction in average earning asset yields. This reduction resulted in a net interest margin decline of 21 basis points from the prior quarter to 2.78%. Please refer to Appendix C for additional details regarding the net interest margin.

NONINTEREST INCOME

Noninterest income of $26.5 million for the third quarter of 2021 was $1.5 million, or 6.0%, higher than the prior quarter. Significant changes in noninterest income for the third quarter compared to the prior quarter included the following:

* Deposit account fees increased by $476,000, or 12.5%, primarily driven by overdraft fees. * Interchange and ATM fees increased by $373,000, or 12.2%, as a result of increased volume during the third quarter, reflecting a rise in customer spending. * Investment management income increased by $302,000, or 3.4%, due primarily to increased insurance commissions. Additionally, assets under management as of September 30, 2021 remained consistent with the prior quarter's record high level at $5.4 billion. * Mortgage banking income grew by $120,000, or 4.4%, reflecting continued strong volume for the quarter, offset by a reduction in gain on sale margins. * Loan level derivative income increased by $470,000, due primarily to increased customer demand. * Other noninterest income decreased by $258,000, or 5.4%, primarily attributable to decreased unrealized gains on equity securities and income from other investments, partially offset by increases in commercial loan fees and income from like-kind exchanges.

NONINTEREST EXPENSE

Noninterest expense of $72.4 million for the third quarter of 2021 was $0.9 million, or 1.2% lower than the prior quarter. Significant changes in noninterest expense for the third quarter compared to the prior quarter included the following:

* Salaries and employee benefits decreased by $400,000, or 0.9%, mainly due to decreases in payroll taxes and other commissions. * Occupancy and equipment decreased by $142,000, or 1.6%, mainly due to decreases in rent on leased property. * FDIC assessment increased by $205,000, or 26.5%, as the prior quarter benefited from a refund of prior period assessment fees of approximately $109,000, as well as an increased assessment base due to balance sheet growth. * The Company incurred merger and acquisition expenses of $1.9 million in the third quarter of 2021 and $1.7 million in the second quarter of 2021. All such costs were related to the Company's acquisition of Meridian. * Other noninterest expense decreased by 745,000, or 4.2%, primarily due to decreases in director equity compensation expense, legal fees, advertising, and provision for unfunded commitments, partially offset by increases in unrealized loss on equity securities, recruitment expense, and other miscellaneous expenses.

The Company generated a return on average assets and a return on average common equity of 1.11% and 9.04%, respectively, for the third quarter of 2021, as compared to 1.08% and 8.70%, respectively, for the prior quarter. On an operating basis, return on average assets and return on average common equity were 1.15% and 9.35%, respectively, for the third quarter of 2021 as compared to 1.12% and 8.98%, respectively for the prior quarter.

The tax rate of 26.1% for the third quarter was higher than the prior quarter rate of 24.9%, which was primarily driven by an increase in forecasted full year 2021 earnings.

ASSET QUALITY

During the third quarter, the Company recorded total net charge-offs of $111,000, which amounted to less than 0.1% of average loans on an annualized basis. Nonperforming loans decreased by 4.2% to $45.8 million, or 0.52% of total loans at September 30, 2021, as compared to $47.8 million, or 0.53% of total loans, at June 30, 2021.

In addition, total loans subject to a payment deferral remained relatively consistent with the prior quarter, amounting to $222.9 million, or 2.5% of total loans at September 30, 2021, with the highest concentration remaining in the accommodation industry portfolio. The majority of the loans subject to a payment deferral at September 30, 2021 were characterized as current loans. Delinquency as a percentage of total loans increased ten basis points from the prior quarter, yet remained low at 0.21%. Please refer to Appendix E for additional details regarding loans whose terms have been modified as a result of the COVID-19 pandemic.

The Company recorded credit reserve releases of $10.0 million during the third quarter of 2021, reflecting continued improvement in both expected asset quality metrics and overall macro-economic assumptions. The allowance for credit losses on total loans was $92.2 million at September 30, 2021, or 1.05% of total loans, as compared to $102.4 million at June 30, 2021, or 1.15% of total loans. The allowance for credit losses as a percentage of total loans, excluding PPP loans, was 1.09% and 1.21% at September 30, 2021 and June 30, 2021, respectively. Please refer to Appendix D for information regarding loan exposures within industries deemed highly impacted by the COVID-19 pandemic.

CONFERENCE CALL INFORMATION

Christopher Oddleifson, Chief Executive Officer, Robert Cozzone, Chief Operating Officer, Mark Ruggiero, Chief Financial Officer, and Gerard Nadeau, President and Chief Commercial Banking Officer will host a conference call to discuss third quarter earnings at 10:00 a.m. Eastern Time on Friday, October 22, 2021. Internet access to the call is available on the Company's website at www.RocklandTrust.com or via telephonic access by dial-in at 1-888-336-7153 reference: INDB. A replay of the call will be available by calling 1-877-344-7529, Replay Conference Number: 10159135 and will be available through October 29, 2021. Additionally, a webcast replay will be available until October 22, 2022.

ABOUT INDEPENDENT BANK CORP.

Independent Bank Corp. (NASDAQ Global Select Market: INDB) is the holding company for Rockland Trust Company, a full-service commercial bank headquartered in Massachusetts. Rockland Trust was named to The Boston Globe's "Top Places to Work" 2020 list, an honor earned for the 12th consecutive year. In 2021, Rockland Trust was ranked the #1 Bank in Massachusetts according to Forbes World's Best Banks list for the second year in a row. Rockland Trust has a longstanding commitment to equity and inclusion. This commitment is underscored by initiatives such as Diversity and Inclusion leadership training, a colleague Allyship mentoring program, and numerous Employee Resource Groups focused on providing colleague support and education, reinforcing a culture of mutual respect and advancing professional development, and Rockland Trust's sponsorship of diverse community organizations through charitable giving and employee-based volunteerism. In addition, Rockland Trust is deeply committed to the communities it serves, as reflected in the overall "Outstanding" rating in its most recent Community Reinvestment Act performance evaluation. Rockland Trust offers a wide range of banking, investment, and insurance services. The Bank serves businesses and individuals through approximately 100 retail branches, commercial and residential lending centers, and investment management offices in eastern Massachusetts, including Greater Boston, the South Shore, Cape Cod and Islands, Worcester County, and Rhode Island. Rockland Trust also offers a full suite of mobile, online, and telephone banking services. Rockland Trust is an FDIC member and an Equal Housing Lender. To find out why Rockland Trust is the bank "Where Each Relationship Matters(r)," please visit RocklandTrust.com.

This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations and business of the Company. These statements may be identified by such forward-looking terminology as "expect," "achieve," "plan," "believe," "future," "positioned," "continued," "will," "would," "potential," or similar statements or variations of such terms. Actual results may differ from those contemplated by these forward-looking statements.

Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to:

* further weakening in the United States economy in general and the regional and local economies within the New England region and the Company's market area, including future weakening caused by the COVID-19 pandemic; * the length and extent of economic contraction as a result of the COVID-19 pandemic; * unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather, pandemics or other external events; * adverse changes or volatility in the local real estate market; * adverse changes in asset quality and any unanticipated credit deterioration in our loan portfolio including those related to one or more large commercial relationships; * failure to consummate or a delay in consummating the acquisition of Meridian, which is subject to standard closing conditions, including the receipt of regulatory approvals; * acquisitions, including the acquisition of Meridian, may not produce results at levels or within time frames originally anticipated and may result in unforeseen integration issues or impairment of goodwill and/or other intangibles; * additional regulatory oversight and related compliance costs, including the additional costs associated with the Company's increase in assets to over $10 billion; * changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; * higher than expected tax expense, resulting from failure to comply with general tax laws and changes in tax laws; * changes in market interest rates for interest earning assets and/or interest bearing liabilities and changes related to the phase-out of LIBOR; * increased competition in the Company's market areas; * adverse weather, changes in climate, natural disasters, the emergence of widespread health emergencies or pandemics, including the magnitude and duration of the COVID-19 pandemic, other public health crises or man-made events could negatively affect our local economies or disrupt our operations, which would have an adverse effect on our business or results of operations; * a deterioration in the conditions of the securities markets; * a deterioration of the credit rating for U.S. long-term sovereign debt; * inability to adapt to changes in information technology, including changes to industry accepted delivery models driven by a migration to the internet as a means of service delivery; * electronic fraudulent activity within the financial services industry, especially in the commercial banking sector; * adverse changes in consumer spending and savings habits; * the effect of laws and regulations regarding the financial services industry; * changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) generally applicable to the Company's business; * the Company's potential judgments, claims, damages, penalties, fines and reputational damage resulting from pending or future litigation and regulatory and government actions, including as a result of our participation in and execution of government programs related to the COVID-19 pandemic; * changes in accounting policies, practices and standards, as may be adopted by the regulatory agencies as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters including, but not limited to, changes to how the Company accounts for credit losses; * cyber security attacks or intrusions that could adversely impact our businesses; and * other unexpected material adverse changes in our operations or earnings.

Further, the foregoing factors may be exacerbated by the ultimate impact of the COVID-19 pandemic, which is unknown at this time. Statements about the COVID-19 pandemic and its potential impact on our business, financial condition, liquidity and results of operations may constitute forward-looking statements and are subject to the risk that actual results may differ, possibly materially, from what is reflected in such statements due to factors and future developments that are uncertain, unpredictable and, in many cases, beyond our control, including the scope, duration and extent of the pandemic and any resurgences, actions taken by governmental authorities in response to the pandemic and the direct and indirect impact on the Company's employees, customers, business and third-parties with which the Company conducts business.

The Company wishes to caution readers not to place undue reliance on any forward-looking statements as the Company's business and its forward-looking statements involve substantial known and unknown risks and uncertainties described in the Company's Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q ("Risk Factors"). Except as required by law, the Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise. Any public statements or disclosures by the Company following this release which modify or impact any of the forward-looking statements contained in this release will be deemed to modify or supersede such statements in this release. In addition to the information set forth in this press release, you should carefully consider the Risk Factors.

This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). This information includes operating net income and operating earnings per share ("EPS"), operating return on average assets, operating return on average common equity, core net interest margin ("core margin"), tangible book value per share and the tangible common equity ratio.

Operating net income, operating EPS, operating return on average assets and operating return on average common equity exclude items that management believes are unrelated to the Company's core banking business such as merger and acquisition expenses, and other items, if applicable. Management uses operating net income and related ratios and operating EPS to measure the strength of the Company's core banking business and to identify trends that may to some extent be obscured by such items. Management reviews its core margin to determine any items that may impact the net interest margin that may be one-time in nature or not reflective of its core operating environment, such as out-sized cash balances, unique low-yielding loans originated through government programs in response to the pandemic, or significant purchase accounting adjustments. Management believes that adjusting for these items to arrive at a core margin provides additional insight into the operating environment and how management decisions impact the net interest margin. Similarly, management reviews certain loan metrics such as growth rates and allowance as a percentage of total loans, adjusted to exclude loans that are not considered part of its core portfolio, which includes loans originated in association with government sponsored and guaranteed programs in response to the pandemic, to arrive at adjusted numbers more representative of the core growth of the portfolio and core reserve to loan ratio.

Management also supplements its evaluation of financial performance with analysis of tangible book value per share (which is computed by dividing stockholders' equity less goodwill and identifiable intangible assets, or "tangible common equity", by common shares outstanding), the tangible common equity ratio (which is computed by dividing tangible common equity by "tangible assets", defined as total assets less goodwill and other intangibles). The Company has included information on tangible book value per share and the tangible common equity ratio because management believes that investors may find it useful to have access to the same analytical tools used by management. As a result of merger and acquisition activity, the Company has recognized goodwill and other intangible assets in conjunction with business combination accounting principles. Excluding the impact of goodwill and other intangibles in measuring asset and capital values for the ratios provided, along with other bank standard capital ratios, provides a framework to compare the capital adequacy of the Company to other companies in the financial services industry.

These non-GAAP measures should not be viewed as a substitute for operating results and other financial measures determined in accordance with GAAP. An item which management deems to be noncore and excludes when computing these non-GAAP measures can be of substantial importance to the Company's results for any particular quarter or year. The Company's non-GAAP performance measures, including operating net income, operating EPS, operating return on average assets, operating return on average common equity, core margin, tangible book value per share and the tangible common equity ratio, are not necessarily comparable to non-GAAP performance measures which may be presented by other companies.

Category Earnings Releases

INDEPENDENT BANK CORP. FINANCIAL SUMMARY

CONSOLIDATED BALANCE SHEETS

(Unaudited, dollars % Change % Changein thousands)

Sept Sept September 30 June 30 September 30 2021 vs. 2021 vs. 2021 2021 2020 Jun 2021 Sept 2020

Assets

Cash and due from $ 138,148 $ 141,953 $ 125,103 (2.68 ) 10.43 %banks %

Interest-earning 1,869,683 2,114,477 1,142,934 (11.58 ) 63.59 %deposits with banks %

Securities

Trading 3,504 3,439 2,612 1.89 % 34.15 %

Equities 22,794 22,975 21,119 (0.79 ) 7.93 % %

Available for sale 1,427,210 794,516 423,478 79.63 % 237.02 %

Held to maturity 865,249 861,821 659,573 0.40 % 31.18 %

Total securities 2,318,757 1,682,751 1,106,782 37.80 % 109.50 %

Loans held for sale 33,553 25,561 54,713 31.27 % (38.67 ) %

Loans

Commercial and 1,640,709 1,726,498 2,062,345 (4.97 ) (20.44 )industrial % %

Commercial real 4,221,259 4,251,543 4,125,464 (0.71 ) 2.32 %estate %

Commercial 515,415 496,539 573,334 3.80 % (10.10 )construction %

Small business 184,138 182,863 167,632 0.70 % 9.85 %

Total commercial 6,561,521 6,657,443 6,928,775 (1.44 ) (5.30 ) % %

Residential real 1,222,849 1,240,279 1,352,305 (1.41 ) (9.57 )estate % %

Home equity - first 592,564 606,332 643,187 (2.27 ) (7.87 )position % %

Home equity - ) )subordinate 407,904 412,076 457,867 (1.01 % (10.91 %positions

Total consumer real 2,223,317 2,258,687 2,453,359 (1.57 ) (9.38 )estate % %

Other consumer 23,175 22,858 23,059 1.39 % 0.50 %

Total loans 8,808,013 8,938,988 9,405,193 (1.47 ) (6.35 ) % %

Less: allowance for (92,246 ) (102,357 ) (115,625 ) (9.88 ) (20.22 )credit losses % %

Net loans 8,715,767 8,836,631 9,289,568 (1.37 ) (6.18 ) % %

Federal Home Loan 8,666 9,079 15,090 (4.55 ) (42.57 )Bank stock % %

Bank premises and 123,528 117,435 121,816 5.19 % 1.41 %equipment, net

Goodwill 506,206 506,206 506,206 - % - %

Other intangible 19,055 20,370 24,543 (6.46 ) (22.36 )assets % %

Cash surrendervalue of life 244,573 242,963 199,453 0.66 % 22.62 %insurance policies

Other assets 555,375 496,781 587,457 11.79 % (5.46 ) %

Total assets $ 14,533,311 $ 14,194,207 $ 13,173,665 2.39 % 10.32 %

Liabilities andStockholders' Equity

Deposits

Noninterest-bearing $ 4,590,492 $ 4,370,852 $ 3,715,528 5.03 % 23.55 %demand deposits

Savings andinterest checking 4,484,208 4,445,903 3,912,703 0.86 % 14.61 %accounts

Money market 2,399,878 2,352,897 2,164,436 2.00 % 10.88 %

Time certificates 785,562 817,319 1,058,641 (3.89 ) (25.80 )of deposit % %

Total deposits 12,260,140 11,986,971 10,851,308 2.28 % 12.98 %

Borrowings

Federal Home Loan 25,675 35,693 145,765 (28.07 ) (82.39 )Bank borrowings % %

Long-term 18,750 23,425 37,447 (19.96 ) (49.93 )borrowings, net % %

Junior subordinated 62,853 62,852 62,850 - % - %debentures, net

Subordinated 49,767 49,743 49,672 0.05 % 0.19 %debentures, net

Total borrowings 157,045 171,713 295,734 (8.54 ) (46.90 ) % %

Total deposits and 12,417,185 12,158,684 11,147,042 2.13 % 11.39 %borrowings

Other liabilities 360,172 293,901 336,899 22.55 % 6.91 %

Total liabilities 12,777,357 12,452,585 11,483,941 2.61 % 11.26 %

Stockholders' equity

Common stock 329 329 328 - % 0.30 %

Additional paid in 949,316 948,130 944,218 0.13 % 0.54 %capital

Retained earnings 787,742 763,596 696,546 3.16 % 13.09 %

Accumulated other ) )comprehensive 18,567 29,567 48,632 (37.20 % (61.82 %income, net of tax

Total stockholders' 1,755,954 1,741,622 1,689,724 0.82 % 3.92 %equity

Total liabilitiesand stockholders' $ 14,533,311 $ 14,194,207 $ 13,173,665 2.39 % 10.32 %equity

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited, dollars in thousands, except per share data)

Three Months Ended

% Change

% Change

September 302021

June 302021

September 302020

Sept 2021 vs.

Sept 2021 vs.

Jun 2021

Sept 2020

Interest income

Interest on federal funds sold and short-term investments

$

815

$

513

$

254

58.87

%

220.87

%

Interest and dividends on securities

7,796

7,189

7,227

8.44

%

7.87

%

Interest and fees on loans

84,212

88,814

90,112

(5.18

)%

(6.55

)%

Interest on loans held for sale

193

186

326

3.76

%

(40.80

)%

Total interest income

93,016

96,702

97,919

(3.81

)%

(5.01

)%

Interest expense

Interest on deposits

1,633

2,017

5,432

(19.04

)%

(69.94

)%

Interest on borrowings

1,292

1,331

1,604

(2.93

)%

(19.45

)%

Total interest expense

2,925

3,348

7,036

(12.63

)%

(58.43

)%

Net interest income

90,091

93,354

90,883

(3.50

)%

(0.87

)%

Provision for credit losses

(10,000

)

(5,000

)

7,500

100.00

%

(233.33

)%

Net interest income after provision for credit losses

100,091

98,354

83,383

1.77

%

20.04

%

Noninterest income

Deposit account fees

4,298

3,822

3,428

12.45

%

25.38

%

Interchange and ATM fees

3,441

3,068

3,044

12.16

%

13.04

%

Investment management

9,174

8,872

7,571

3.40

%

21.17

%

Mortgage banking income

2,825

2,705

7,704

4.44

%

(63.33

)%

Increase in cash surrender value of life insurance policies

1,596

1,589

1,314

0.44

%

21.46

%

Loan level derivative income

586

116

2,457

405.17

%

(76.15

)%

Other noninterest income

4,537

4,795

3,829

(5.38

)%

18.49

%

Total noninterest income

26,457

24,967

29,347

5.97

%

(9.85

)%

Noninterest expenses

Salaries and employee benefits

42,235

42,635

38,409

(0.94

)%

9.96

%

Occupancy and equipment expenses

8,564

8,706

9,273

(1.63

)%

(7.65

)%

Data processing and facilities management

1,673

1,686

1,567

(0.77

)%

6.76

%

FDIC assessment

980

775

1,034

26.45

%

(5.22

)%

Merger and acquisition expense

1,943

1,731

-

12.25

100.00

%

Loss on termination of derivatives

-

-

684

n/a

(100.00

)

Other noninterest expenses

17,024

17,769

15,691

(4.19

)%

8.50

%

Total noninterest expenses

72,419

73,302

66,658

(1.20

)%

8.64

%

Income before income taxes

54,129

50,019

46,072

8.22

%

17.49

%

Provision for income taxes

14,122

12,447

11,199

13.46

%

26.10

%

Net Income

$

40,007

$

37,572

$

34,873

6.48

%

14.72

%

Weighted average common shares (basic)

33,043,716

33,033,578

32,951,918

Common share equivalents

15,554

21,270

24,758

Weighted average common shares (diluted)

33,059,270

33,054,848

32,976,676

Basic earnings per share

$

1.21

$

1.14

$

1.06

6.14

%

14.15

%

Diluted earnings per share

$

1.21

$

1.14

$

1.06

6.14

%

14.15

%

Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):

Net income

$

40,007

$

37,572

$

34,873

Noninterest expense components

Add - loss on termination of derivatives

-

-

684

Add - merger and acquisition expenses

1,943

1,731

-

Noncore increases to income before taxes

1,943

1,731

684

Net tax benefit associated with noncore items (1)

(546

)

(487

)

(192

)

Noncore increases to net income

1,397

1,244

492

Operating net income (Non-GAAP)

$

41,404

$

38,816

$

35,365

6.67

%

17.08

%

Diluted earnings per share, on an operating basis

$

1.25

$

1.17

$

1.07

6.84

%

16.82

%

(1) The net tax benefit associated with noncore items is determined by assessing whether each noncore item is included or excluded from net taxable income and applying the Company's combined marginal tax rate to only those items included in net taxable income.

Performance ratios

Net interest margin (FTE)

2.78

%

2.99

%

3.13

%

Return on average assets (GAAP) (calculated by dividing net income by average assets)

1.11

%

1.08

%

1.07

%

Return on average assets on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average assets)

1.15

%

1.12

%

1.08

%

Return on average common equity (GAAP) (calculated by dividing net income by average common equity)

9.04

%

8.70

%

8.21

%

Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average common equity)

9.35

%

8.98

%

8.32

%

CONSOLIDATEDSTATEMENTS OF INCOME

(Unaudited,dollars inthousands, except pershare data)

Three Months Ended

% Change % Change

Sept Sept 2021 September 30 June 30 September 30 2021 vs. vs. 2021 2021 2020 Jun 2021 Sept 2020

Interest income

Interest onfederalfunds sold $ 815 $ 513 $ 254 58.87 % 220.87 %and short-terminvestments

Interest anddividends on 7,796 7,189 7,227 8.44 % 7.87 %securities

Interest and ) )fees on 84,212 88,814 90,112 (5.18 % (6.55 %loans

Interest on )loans held 193 186 326 3.76 % (40.80 %for sale

Total ) )interest 93,016 96,702 97,919 (3.81 % (5.01 %income

Interest expense

Interest on 1,633 2,017 5,432 (19.04 ) (69.94 )deposits % %

Interest on 1,292 1,331 1,604 (2.93 ) (19.45 )borrowings % %

Total ) )interest 2,925 3,348 7,036 (12.63 % (58.43 %expense

Net interest 90,091 93,354 90,883 (3.50 ) (0.87 )income % %

Provision )for credit (10,000 ) (5,000 ) 7,500 100.00 % (233.33 %losses

Net interestincome afterprovision 100,091 98,354 83,383 1.77 % 20.04 %for creditlosses

Noninterest income

Deposit 4,298 3,822 3,428 12.45 % 25.38 %account fees

Interchange 3,441 3,068 3,044 12.16 % 13.04 %and ATM fees

Investment 9,174 8,872 7,571 3.40 % 21.17 %management

Mortgage )banking 2,825 2,705 7,704 4.44 % (63.33 %income

Increase incashsurrendervalue of 1,596 1,589 1,314 0.44 % 21.46 %lifeinsurancepolicies

Loan level )derivative 586 116 2,457 405.17 % (76.15 %income

Other )noninterest 4,537 4,795 3,829 (5.38 % 18.49 %income

Total )noninterest 26,457 24,967 29,347 5.97 % (9.85 %income

Noninterest expenses

Salaries and )employee 42,235 42,635 38,409 (0.94 % 9.96 %benefits

Occupancyand 8,564 8,706 9,273 (1.63 ) (7.65 )equipment % %expenses

Dataprocessing )and 1,673 1,686 1,567 (0.77 % 6.76 %facilitiesmanagement

FDIC 980 775 1,034 26.45 % (5.22 )assessment %

Merger andacquisition 1,943 1,731 - 12.25 100.00 %expense

Loss ontermination - - 684 n/a (100.00 )of derivatives

Other )noninterest 17,024 17,769 15,691 (4.19 % 8.50 %expenses

Total )noninterest 72,419 73,302 66,658 (1.20 % 8.64 %expenses

Incomebefore 54,129 50,019 46,072 8.22 % 17.49 %income taxes

Provisionfor income 14,122 12,447 11,199 13.46 % 26.10 %taxes

Net Income $ 40,007 $ 37,572 $ 34,873 6.48 % 14.72 %



Weightedaveragecommon 33,043,716 33,033,578 32,951,918 shares(basic)

Common share 15,554 21,270 24,758 equivalents

Weightedaveragecommon 33,059,270 33,054,848 32,976,676 shares(diluted)



Basicearnings per $ 1.21 $ 1.14 $ 1.06 6.14 % 14.15 %share

Dilutedearnings per $ 1.21 $ 1.14 $ 1.06 6.14 % 14.15 %share



Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):

Net income $ 40,007 $ 37,572 $ 34,873

Noninterestexpense components

Add - lossontermination - - 684 ofderivatives

Add - mergerand 1,943 1,731 - acquisition expenses

Noncoreincreases to 1,943 1,731 684 income before taxes

Net taxbenefitassociated (546 ) (487 ) (192 ) with noncoreitems (1)

Noncoreincreases to 1,397 1,244 492 net income

Operatingnet income $ 41,404 $ 38,816 $ 35,365 6.67 % 17.08 %(Non-GAAP)



Dilutedearnings pershare, on an $ 1.25 $ 1.17 $ 1.07 6.84 % 16.82 %operatingbasis



(1) The net tax benefit associated with noncore items is determined byassessing whether each noncore item is included or excluded from net taxableincome and applying the Company's combined marginal tax rate to only thoseitems included in net taxable income.



Performance ratios

Net interest 2.78 % 2.99 % 3.13 % margin (FTE)

Return onaverageassets(GAAP)(calculated 1.11 % 1.08 % 1.07 % by dividingnet incomeby averageassets)

Return onaverageassets on anoperatingbasis(Non-GAAP)(calculated 1.15 % 1.12 % 1.08 % by dividingnetoperatingnet incomeby averageassets)

Return onaveragecommonequity(GAAP)(calculated 9.04 % 8.70 % 8.21 % by dividingnet incomeby averagecommonequity)

Return onaveragecommonequity on anoperatingbasis(Non-GAAP)(calculated 9.35 % 8.98 % 8.32 % by dividingnetoperatingnet incomeby averagecommonequity)

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited, dollars in thousands, except per share data)

Nine Months Ended

% Change

September 302021

September 302020

Sept 2021 vs.

Sept 2020

Interest income

Interest on federal funds sold and short-term investments

$

1,654

$

546

202.93

%

Interest and dividends on securities

21,617

23,033

(6.15

)%

Interest and fees on loans

265,409

280,768

(5.47

)%

Interest on loans held for sale

675

917

(26.39

)%

Total interest income

289,355

305,264

(5.21

)%

Interest expense

Interest on deposits

6,361

23,351

(72.76

)%

Interest on borrowings

3,965

5,628

(29.55

)%

Total interest expense

10,326

28,979

(64.37

)%

Net interest income

279,029

276,285

0.99

%

Provision for credit losses

(17,500

)

52,500

(133.33

)%

Net interest income after provision for credit losses

296,529

223,785

32.51

%

Noninterest income

Deposit account fees

11,704

11,227

4.25

%

Interchange and ATM fees

9,229

13,154

(29.84

)%

Investment management

26,350

21,696

21.45

%

Mortgage banking income

11,270

13,570

(16.95

)%

Increase in cash surrender value of life insurance policies

4,508

3,902

15.53

%

Gain on life insurance benefits

258

692

(62.72

)%

Loan level derivative income

875

8,918

(90.19

)%

Other noninterest income

12,476

10,813

15.38

%

Total noninterest income

76,670

83,972

(8.70

)%

Noninterest expenses

Salaries and employee benefits

124,759

113,027

10.38

%

Occupancy and equipment expenses

26,543

27,863

(4.74

)%

Data processing and facilities management

5,024

4,684

7.26

%

FDIC assessment

2,805

1,537

82.50

%

Loss on termination of derivatives

-

684

(100.00

)%

Merger and acquisition expense

3,674

-

100.00

%

Other noninterest expenses

52,598

52,310

0.55

%

Total noninterest expenses

215,403

200,105

7.64

%

Income before income taxes

157,796

107,652

46.58

%

Provision for income taxes

38,506

21,126

82.27

%

Net Income

$

119,290

$

86,526

37.87

%

Weighted average common shares (basic)

33,024,386

33,358,879

Common share equivalents

18,238

27,871

Weighted average common shares (diluted)

33,042,624

33,386,750

Basic earnings per share

$

3.61

$

2.59

39.38

%

Diluted earnings per share

$

3.61

$

2.59

39.38

%

Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):

Net Income

$

119,290

$

86,526

Noninterest expense components

Add - loss on termination of derivatives

-

684

Add - merger and acquisition expenses

3,674

-

Noncore increases to income before taxes

3,674

684

Net tax benefit associated with noncore items (1)

(1,033

)

(192

)

Noncore increases to net income

$

2,641

$

492

Operating net income (Non-GAAP)

$

121,931

$

87,018

40.12

%

Diluted earnings per share, on an operating basis

$

3.69

$

2.61

41.38

%

(1) The net tax benefit associated with noncore items is determined by assessing whether each noncore item is included or excluded from net taxable income and applying the Company's combined marginal tax rate to only those items included in net taxable income.

Performance ratios

Net interest margin (FTE)

3.00

%

3.36

%

Return on average assets (GAAP) (calculated by dividing net income by average assets)

1.15

%

0.93

%

Return on average assets on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average assets)

1.17

%

0.94

%

Return on average common equity (GAAP) (calculated by dividing net income by average common equity)

9.20

%

6.80

%

Return on average common equity on an operating basis (Non-GAAP) (calculated by dividing net operating net income by average common equity)

9.40

%

6.84

%

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited, dollars in thousands, except per share data)

Nine Months Ended

% Change

Sept 2021 September 30 September 30 vs. 2021 2020 Sept 2020



Interest income

Interest on federal funds sold and $ 1,654 $ 546 202.93 %short-term investments

Interest and dividends on securities 21,617 23,033 (6.15 ) %

Interest and fees on loans 265,409 280,768 (5.47 ) %

Interest on loans held for sale 675 917 (26.39 ) %

Total interest income 289,355 305,264 (5.21 ) %

Interest expense

Interest on deposits 6,361 23,351 (72.76 ) %

Interest on borrowings 3,965 5,628 (29.55 ) %

Total interest expense 10,326 28,979 (64.37 ) %

Net interest income 279,029 276,285 0.99 %

Provision for credit losses (17,500 ) 52,500 (133.33 ) %

Net interest income after provision 296,529 223,785 32.51 %for credit losses

Noninterest income

Deposit account fees 11,704 11,227 4.25 %

Interchange and ATM fees 9,229 13,154 (29.84 ) %

Investment management 26,350 21,696 21.45 %

Mortgage banking income 11,270 13,570 (16.95 ) %

Increase in cash surrender value of 4,508 3,902 15.53 %life insurance policies

Gain on life insurance benefits 258 692 (62.72 ) %

Loan level derivative income 875 8,918 (90.19 ) %

Other noninterest income 12,476 10,813 15.38 %

Total noninterest income 76,670 83,972 (8.70 ) %

Noninterest expenses

Salaries and employee benefits 124,759 113,027 10.38 %

Occupancy and equipment expenses 26,543 27,863 (4.74 ) %

Data processing and facilities 5,024 4,684 7.26 %management

FDIC assessment 2,805 1,537 82.50 %

Loss on termination of derivatives - 684 (100.00 ) %

Merger and acquisition expense 3,674 - 100.00 %

Other noninterest expenses 52,598 52,310 0.55 %

Total noninterest expenses 215,403 200,105 7.64 %

Income before income taxes 157,796 107,652 46.58 %

Provision for income taxes 38,506 21,126 82.27 %

Net Income $ 119,290 $ 86,526 37.87 %



Weighted average common shares 33,024,386 33,358,879 (basic)

Common share equivalents 18,238 27,871

Weighted average common shares 33,042,624 33,386,750 (diluted)



Basic earnings per share $ 3.61 $ 2.59 39.38 %

Diluted earnings per share $ 3.61 $ 2.59 39.38 %



Reconciliation of Net Income (GAAP) to Operating Net Income (Non-GAAP):

Net Income $ 119,290 $ 86,526

Noninterest expense components

Add - loss on termination of - 684 derivatives

Add - merger and acquisition expenses 3,674 -

Noncore increases to income before 3,674 684 taxes

Net tax benefit associated with (1,033 ) (192 ) noncore items (1)

Noncore increases to net income $ 2,641 $ 492

Operating net income (Non-GAAP) $ 121,931 $ 87,018 40.12 %



Diluted earnings per share, on an $ 3.69 $ 2.61 41.38 %operating basis



(1) The net tax benefit associated with noncore items is determined byassessing whether each noncore item is included or excluded from net taxableincome and applying the Company's combined marginal tax rate to only thoseitems included in net taxable income.



Performance ratios

Net interest margin (FTE) 3.00 % 3.36 %

Return on average assets (GAAP)(calculated by dividing net income by 1.15 % 0.93 % average assets)

Return on average assets on anoperating basis (Non-GAAP) 1.17 % 0.94 % (calculated by dividing net operatingnet income by average assets)

Return on average common equity(GAAP) (calculated by dividing net 9.20 % 6.80 % income by average common equity)

Return on average common equity on anoperating basis (Non-GAAP) 9.40 % 6.84 % (calculated by dividing net operatingnet income by average common equity)

ASSET QUALITY

(Unaudited, dollars in thousands)

Nonperforming Assets At

September 302021

June 302021

September 302020

Nonperforming loans

Commercial & industrial loans

$

19,275

$

20,831

$

36,851

Commercial real estate loans

11,788

9,031

38,164

Small business loans

46

558

542

Residential real estate loans

10,872

12,786

16,229

Home equity

3,746

4,517

6,159

Other consumer

83

95

80

Total nonperforming loans

45,810

47,818

98,025

Total nonperforming assets

$

45,810

$

47,818

$

98,025

Nonperforming loans/gross loans

0.52

%

0.53

%

1.04

%

Nonperforming assets/total assets

0.32

%

0.34

%

0.74

%

Allowance for credit losses/nonperforming loans

201.37

%

214.06

%

117.95

%

Allowance for credit losses/total loans

1.05

%

1.15

%

1.23

%

Delinquent loans/total loans

0.21

%

0.11

%

0.31

%

Nonperforming Assets Reconciliation for the Three Months Ended

September 302021

June 302021

September 302020

Nonperforming assets beginning balance

$

47,818

$

59,201

$

48,814

New to nonperforming

4,613

2,233

60,850

Loans charged-off

(332

)

(481

)

(4,304

)

Loans paid-off

(3,488

)

(10,364

)

(5,050

)

Loans restored to performing status

(2,813

)

(2,771

)

(2,229

)

Other

12

-

(56

)

Nonperforming assets ending balance

$

45,810

$

47,818

$

98,025

ASSET QUALITY

(Unaudited, dollars in Nonperforming Assets Atthousands)

September June 30 September 30 2021 30 2021 2020

Nonperforming loans

Commercial & industrial loans $ 19,275 $ 20,831 $ 36,851

Commercial real estate loans 11,788 9,031 38,164

Small business loans 46 558 542

Residential real estate loans 10,872 12,786 16,229

Home equity 3,746 4,517 6,159

Other consumer 83 95 80

Total nonperforming loans 45,810 47,818 98,025

Total nonperforming assets $ 45,810 $ 47,818 $ 98,025



Nonperforming loans/gross loans 0.52 % 0.53 % 1.04 %

Nonperforming assets/total 0.32 % 0.34 % 0.74 %assets

Allowance for credit losses/ 201.37 % 214.06 % 117.95 %nonperforming loans

Allowance for credit losses/ 1.05 % 1.15 % 1.23 %total loans

Delinquent loans/total loans 0.21 % 0.11 % 0.31 %



Nonperforming Assets Reconciliation for the Three Months Ended

September June 30 September 30 2021 30 2021 2020



Nonperforming assets beginning $ 47,818 $ 59,201 $ 48,814 balance

New to nonperforming 4,613 2,233 60,850

Loans charged-off (332 ) (481 ) (4,304 )

Loans paid-off (3,488 ) (10,364 ) (5,050 )

Loans restored to performing (2,813 ) (2,771 ) (2,229 )status

Other 12 - (56 )

Nonperforming assets ending $ 45,810 $ 47,818 $ 98,025 balance

Net Charge-Offs (Recoveries)

Three Months Ended

Nine Months Ended

September 302021

June 302021

September 302020

September 302021

September 302020

Net charge-offs (recoveries)

Commercial and industrial loans

$

-

$

107

$

184

$

3,374

$

138

Commercial real estate loans

-

-

3,876

(57

)

3,876

Small business loans

33

31

47

119

186

Residential real estate loans

-

-

(1

)

(1

)

(2

)

Home equity

(49

)

24

(21

)

(38

)

(32

)

Other consumer

127

30

(34

)

249

469

Total net charge-offs

$

111

$

192

$

4,051

$

3,646

$

4,635

Net charge-offs to average loans (annualized)

0.00

%

0.01

%

0.17

%

0.05

%

0.07

%

Net Charge-Offs (Recoveries)

Three Months Ended Nine Months Ended

September June 30 September September September 30 2021 30 30 30 2021 2020 2021 2020

Net charge-offs (recoveries)

Commercial and $ - $ 107 $ 184 $ 3,374 $ 138 industrial loans

Commercial real - - 3,876 (57 ) 3,876 estate loans

Small business loans 33 31 47 119 186

Residential real - - (1 ) (1 ) (2 )estate loans

Home equity (49 ) 24 (21 ) (38 ) (32 )

Other consumer 127 30 (34 ) 249 469

Total net charge-offs $ 111 $ 192 $ 4,051 $ 3,646 $ 4,635



Net charge-offs toaverage loans 0.00 % 0.01 % 0.17 % 0.05 % 0.07 %(annualized)

Troubled Debt Restructurings At

September 302021

June 302021

September 302020

Troubled debt restructurings on accrual status

$

15,950

$

19,495

$

17,521

Troubled debt restructurings on nonaccrual status

21,104

20,212

23,810

Total troubled debt restructurings

$

37,054

$

39,707

$

41,331

BALANCE SHEET AND CAPITAL RATIOS

September 302021

June 302021

September 302020

Gross loans/total deposits

71.84

%

74.57

%

86.67

%

Common equity tier 1 capital ratio (1)

13.46

%

13.31

%

12.41

%

Tier 1 leverage capital ratio (1)

9.36

%

9.41

%

9.52

%

Common equity to assets ratio GAAP

12.08

%

12.27

%

12.83

%

Tangible common equity to tangible assets ratio (2)

8.79

%

8.89

%

9.17

%

Book value per share GAAP

$

53.14

$

52.72

$

51.27

Tangible book value per share (2)

$

37.24

$

36.78

$

35.17

(1) Estimated number for September 30, 2021.

(2) See Appendix A for detailed reconciliation from GAAP to Non-GAAP ratios.

Troubled Debt Restructurings At

September June 30 September 30 2021 30 2021 2020

Troubled debt restructurings on accrual $ 15,950 $ 19,495 $ 17,521 status

Troubled debt restructurings on 21,104 20,212 23,810 nonaccrual status

Total troubled debt restructurings $ 37,054 $ 39,707 $ 41,331



BALANCE SHEET AND CAPITAL RATIOS

September June 30 September 30 2021 30 2021 2020

Gross loans/total deposits 71.84 % 74.57 % 86.67 %

Common equity tier 1 capital ratio (1) 13.46 % 13.31 % 12.41 %

Tier 1 leverage capital ratio (1) 9.36 % 9.41 % 9.52 %

Common equity to assets ratio GAAP 12.08 % 12.27 % 12.83 %

Tangible common equity to tangible assets 8.79 % 8.89 % 9.17 %ratio (2)

Book value per share GAAP $ 53.14 $ 52.72 $ 51.27

Tangible book value per share (2) $ 37.24 $ 36.78 $ 35.17

(1) Estimated number for September 30, 2021.

(2) See Appendix A for detailed reconciliation from GAAP to Non-GAAP ratios.

INDEPENDENT BANK CORP. SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited, dollars in thousands)

Three Months Ended

September 30, 2021

June 30, 2021

September 30, 2020

Interest

Interest

Interest

Average

Earned/

Yield/

Average

Earned/

Yield/

Average

Earned/

Yield/

Balance

Paid (1)

Rate

Balance

Paid (1)

Rate

Balance

Paid (1)

Rate

Interest-earning assets

Interest-earning deposits with banks, federal funds sold, and short term investments

$

2,135,031

$

815

0.15

%

$

1,882,285

$

513

0.11

%

$

997,921

$

254

0.10

%

Securities

Securities - trading

3,498

-

-

%

3,359

-

-

%

2,607

-

-

%

Securities - taxable investments

1,880,863

7,792

1.64

%

1,514,336

7,184

1.90

%

1,139,843

7,218

2.52

%

Securities - nontaxable investments (1)

468

5

4.24

%

555

6

4.34

%

1,146

11

3.82

%

Total securities

$

1,884,829

$

7,797

1.64

%

$

1,518,250

$

7,190

1.90

%

$

1,143,596

$

7,229

2.51

%

Loans held for sale

30,143

193

2.54

%

28,279

186

2.64

%

50,709

326

2.56

%

Loans

Commercial and industrial (1)

1,640,422

15,309

3.70

%

1,944,026

20,351

4.20

%

2,033,385

17,724

3.47

%

Commercial real estate (1)

4,232,575

41,469

3.89

%

4,196,171

41,532

3.97

%

4,086,594

41,578

4.05

%

Commercial construction

507,393

4,916

3.84

%

514,935

4,777

3.72

%

568,007

5,126

3.59

%

Small business

181,953

2,341

5.10

%

178,525

2,302

5.17

%

168,662

2,303

5.43

%

Total commercial

6,562,343

64,035

3.87

%

6,833,657

68,962

4.05

%

6,856,648

66,731

3.87

%

Residential real estate

1,231,606

10,955

3.53

%

1,226,520

11,058

3.62

%

1,387,055

13,436

3.85

%

Home equity

1,007,371

9,043

3.56

%

1,024,798

8,591

3.36

%

1,107,685

9,658

3.47

%

Total consumer real estate

2,238,977

19,998

3.54

%

2,251,318

19,649

3.50

%

2,494,740

23,094

3.68

%

Other consumer

25,929

398

6.09

%

22,471

411

7.34

%

24,134

515

8.49

%

Total loans

$

8,827,249

$

84,431

3.79

%

$

9,107,446

$

89,022

3.92

%

$

9,375,522

$

90,340

3.83

%

Total interest-earning assets

$

12,877,252

$

93,236

2.87

%

$

12,536,260

$

96,911

3.10

%

$

11,567,748

$

98,149

3.38

%

Cash and due from banks

144,556

142,198

124,482

Federal Home Loan Bank stock

8,904

9,410

15,090

Other assets

1,268,199

1,258,056

1,313,194

Total assets

$

14,298,911

$

13,945,924

$

13,020,514

Interest-bearing liabilities

Deposits

Savings and interest checking accounts

$

4,426,106

$

338

0.03

%

$

4,339,645

$

384

0.04

%

$

3,836,488

$

838

0.09

%

Money market

2,375,492

443

0.07

%

2,347,852

429

0.07

%

2,087,822

945

0.18

%

Time deposits

795,943

852

0.42

%

843,090

1,204

0.57

%

1,076,546

3,649

1.35

%

Total interest-bearing deposits

$

7,597,541

$

1,633

0.09

%

$

7,530,587

$

2,017

0.11

%

$

7,000,856

$

5,432

0.31

%

Borrowings

Federal Home Loan Bank borrowings

31,118

165

2.10

%

35,704

191

2.15

%

145,766

408

1.11

%

Long-term borrowings

18,742

77

1.63

%

23,417

94

1.61

%

37,439

141

1.50

%

Junior subordinated debentures

62,852

432

2.73

%

62,852

429

2.74

%

62,850

438

2.77

%

Subordinated debentures

49,753

617

4.92

%

49,730

618

4.98

%

49,659

617

4.94

%

Total borrowings

$

162,465

$

1,291

3.15

%

$

171,703

$

1,332

3.11

%

$

295,714

$

1,604

2.16

%

Total interest-bearing liabilities

$

7,760,006

$

2,924

0.15

%

$

7,702,290

$

3,349

0.17

%

$

7,296,570

$

7,036

0.38

%

Noninterest-bearing demand deposits

4,502,045

4,237,135

3,700,902

Other liabilities

280,754

273,449

332,937

Total liabilities

$

12,542,805

$

12,212,874

$

11,330,409

Stockholders' equity

1,756,106

1,733,050

1,690,105

Total liabilities and stockholders' equity

$

14,298,911

$

13,945,924

$

13,020,514

Net interest income

$

90,312

$

93,562

$

91,113

Interest rate spread (2)

2.72

%

2.93

%

3.00

%

Net interest margin (3)

2.78

%

2.99

%

3.13

%

Supplemental Information

Total deposits, including demand deposits

$

12,099,586

$

1,633

$

11,767,722

$

2,017

$

10,701,758

$

5,432

Cost of total deposits

0.05

%

0.07

%

0.20

%

Total funding liabilities, including demand deposits

$

12,262,051

$

2,924

$

11,939,425

$

3,349

$

10,997,472

$

7,036

Cost of total funding liabilities

0.09

%

0.11

%

0.25

%

INDEPENDENT BANK CORP. SUPPLEMENTAL FINANCIAL INFORMATION



(Unaudited, dollars in Three Months Endedthousands)

September 30, 2021 June 30, 2021 September 30, 2020

Interest Interest Interest

Average Earned/ Yield/ Average Earned/ Yield/ Average Earned/ Yield/

Balance Paid (1) Rate Balance Paid (1) Rate Balance Paid (1) Rate

Interest-earning assets

Interest-earning depositswith banks, federal funds $ 2,135,031 $ 815 0.15 % $ 1,882,285 $ 513 0.11 % $ 997,921 $ 254 0.10 %sold, and short terminvestments

Securities

Securities - trading 3,498 - - % 3,359 - - % 2,607 - - %

Securities - taxable 1,880,863 7,792 1.64 % 1,514,336 7,184 1.90 % 1,139,843 7,218 2.52 %investments

Securities - nontaxable 468 5 4.24 % 555 6 4.34 % 1,146 11 3.82 %investments (1)

Total securities $ 1,884,829 $ 7,797 1.64 % $ 1,518,250 $ 7,190 1.90 % $ 1,143,596 $ 7,229 2.51 %

Loans held for sale 30,143 193 2.54 % 28,279 186 2.64 % 50,709 326 2.56 %

Loans

Commercial and industrial 1,640,422 15,309 3.70 % 1,944,026 20,351 4.20 % 2,033,385 17,724 3.47 %(1)

Commercial real estate (1) 4,232,575 41,469 3.89 % 4,196,171 41,532 3.97 % 4,086,594 41,578 4.05 %

Commercial construction 507,393 4,916 3.84 % 514,935 4,777 3.72 % 568,007 5,126 3.59 %

Small business 181,953 2,341 5.10 % 178,525 2,302 5.17 % 168,662 2,303 5.43 %

Total commercial 6,562,343 64,035 3.87 % 6,833,657 68,962 4.05 % 6,856,648 66,731 3.87 %

Residential real estate 1,231,606 10,955 3.53 % 1,226,520 11,058 3.62 % 1,387,055 13,436 3.85 %

Home equity 1,007,371 9,043 3.56 % 1,024,798 8,591 3.36 % 1,107,685 9,658 3.47 %

Total consumer real estate 2,238,977 19,998 3.54 % 2,251,318 19,649 3.50 % 2,494,740 23,094 3.68 %

Other consumer 25,929 398 6.09 % 22,471 411 7.34 % 24,134 515 8.49 %

Total loans $ 8,827,249 $ 84,431 3.79 % $ 9,107,446 $ 89,022 3.92 % $ 9,375,522 $ 90,340 3.83 %

Total interest-earning $ 12,877,252 $ 93,236 2.87 % $ 12,536,260 $ 96,911 3.10 % $ 11,567,748 $ 98,149 3.38 %assets

Cash and due from banks 144,556 142,198 124,482

Federal Home Loan Bank 8,904 9,410 15,090 stock

Other assets 1,268,199 1,258,056 1,313,194

Total assets $ 14,298,911 $ 13,945,924 $ 13,020,514

Interest-bearing liabilities

Deposits

Savings and interest $ 4,426,106 $ 338 0.03 % $ 4,339,645 $ 384 0.04 % $ 3,836,488 $ 838 0.09 %checking accounts

Money market 2,375,492 443 0.07 % 2,347,852 429 0.07 % 2,087,822 945 0.18 %

Time deposits 795,943 852 0.42 % 843,090 1,204 0.57 % 1,076,546 3,649 1.35 %

Total interest-bearing $ 7,597,541 $ 1,633 0.09 % $ 7,530,587 $ 2,017 0.11 % $ 7,000,856 $ 5,432 0.31 %deposits

Borrowings

Federal Home Loan Bank 31,118 165 2.10 % 35,704 191 2.15 % 145,766 408 1.11 %borrowings

Long-term borrowings 18,742 77 1.63 % 23,417 94 1.61 % 37,439 141 1.50 %

Junior subordinated 62,852 432 2.73 % 62,852 429 2.74 % 62,850 438 2.77 %debentures

Subordinated debentures 49,753 617 4.92 % 49,730 618 4.98 % 49,659 617 4.94 %

Total borrowings $ 162,465 $ 1,291 3.15 % $ 171,703 $ 1,332 3.11 % $ 295,714 $ 1,604 2.16 %

Total interest-bearing $ 7,760,006 $ 2,924 0.15 % $ 7,702,290 $ 3,349 0.17 % $ 7,296,570 $ 7,036 0.38 %liabilities

Noninterest-bearing demand 4,502,045 4,237,135 3,700,902 deposits

Other liabilities 280,754 273,449 332,937

Total liabilities $ 12,542,805 $ 12,212,874 $ 11,330,409

Stockholders' equity 1,756,106 1,733,050 1,690,105

Total liabilities and $ 14,298,911 $ 13,945,924 $ 13,020,514 stockholders' equity



Net interest income $ 90,312 $ 93,562 $ 91,113



Interest rate spread (2) 2.72 % 2.93 % 3.00 %



Net interest margin (3) 2.78 % 2.99 % 3.13 %



Supplemental Information

Total deposits, including $ 12,099,586 $ 1,633 $ 11,767,722 $ 2,017 $ 10,701,758 $ 5,432 demand deposits

Cost of total deposits 0.05 % 0.07 % 0.20 %

Total funding liabilities, $ 12,262,051 $ 2,924 $ 11,939,425 $ 3,349 $ 10,997,472 $ 7,036 including demand deposits

Cost of total funding 0.09 % 0.11 % 0.25 %liabilities

(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $220,000, $209,000, and $230,000 for the three months ended September 30, 2021, June 30, 2021, and September 30, 2020, respectively, determined by applying the Company's marginal tax rates in effect during each respective quarter.

(2) Interest rate spread represents the difference between weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(3) Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

(1) The total amount of adjustment to present interest income and yield on afully tax-equivalent basis is $220,000, $209,000, and $230,000 for the threemonths ended September 30, 2021, June 30, 2021, and September 30, 2020,respectively, determined by applying the Company's marginal tax rates in effectduring each respective quarter.

(2) Interest rate spread represents the difference between weighted averageyield on interest-earning assets and the weighted average cost ofinterest-bearing liabilities.

(3) Net interest margin represents annualized net interest income as apercentage of average interest-earning assets.

Nine Months Ended

September 30, 2021

September 30, 2020

Interest

Interest

Average

Earned/

Yield/

Average

Earned/

Yield/

Balance

Paid

Rate

Balance

Paid

Rate

Interest-earning assets

Interest earning deposits with banks, federal funds sold, and short term investments

$

1,782,463

$

1,654

0.12

%

$

599,827

$

546

0.12

%

Securities

Securities - trading

3,267

-

-

%

2,421

-

-

%

Securities - taxable investments

1,550,859

21,603

1.86

%

1,178,671

23,006

2.61

%

Securities - nontaxable investments (1)

555

17

4.10

%

1,176

34

3.86

%

Total securities

$

1,554,681

$

21,620

1.86

%

$

1,182,268

$

23,040

2.60

%

Loans held for sale

35,953

675

2.51

%

43,150

917

2.84

%

Loans

Commercial and industrial (1)

1,898,100

58,706

4.14

%

1,784,715

52,027

3.89

%

Commercial real estate (1)

4,195,200

123,377

3.93

%

4,050,154

129,800

4.28

%

Commercial construction

525,652

14,976

3.81

%

554,222

17,341

4.18

%

Small business

178,294

6,924

5.19

%

172,575

7,253

5.61

%

Total commercial

6,797,246

203,983

4.01

%

6,561,666

206,421

4.20

%

Residential real estate

1,242,991

34,449

3.71

%

1,473,812

41,856

3.79

%

Home equity

1,027,311

26,391

3.43

%

1,125,817

31,617

3.75

%

Total consumer real estate

2,270,302

60,840

3.58

%

2,599,629

73,473

3.78

%

Other consumer

23,382

1,241

7.10

%

25,643

1,587

8.27

%

Total loans

$

9,090,930

$

266,064

3.91

%

$

9,186,938

$

281,481

4.09

%

Total interest-earning assets

$

12,464,027

$

290,013

3.11

%

$

11,012,183

$

305,984

3.71

%

Cash and due from banks

147,269

122,302

Federal Home Loan Bank stock

9,516

17,645

Other assets

1,256,066

1,256,074

Total assets

$

13,876,878

$

12,408,204

Interest-bearing liabilities

Deposits

Savings and interest checking accounts

$

4,292,992

$

1,145

0.04

%

$

3,592,069

$

3,873

0.14

%

Money market

2,337,445

1,393

0.08

%

1,978,006

5,495

0.37

%

Time deposits

848,143

3,823

0.60

%

1,202,746

13,983

1.55

%

Total interest-bearing deposits

$

7,478,580

$

6,361

0.11

%

$

6,772,821

$

23,351

0.46

%

Borrowings

Federal Home Loan Bank borrowings

34,185

544

2.13

%

205,244

1,369

0.89

%

Long-term borrowings

23,434

282

1.61

%

61,240

1,045

2.28

%

Junior subordinated debentures

62,852

1,287

2.74

%

62,849

1,362

2.89

%

Subordinated debentures

49,729

1,852

4.98

%

49,635

1,852

4.98

%

Total borrowings

$

170,200

$

3,965

3.11

%

$

378,968

$

5,628

1.98

%

Total interest-bearing liabilities

$

7,648,780

$

10,326

0.18

%

$

7,151,789

$

28,979

0.54

%

Noninterest-bearing demand deposits

4,213,764

3,257,058

Other liabilities

280,002

300,248

Total liabilities

$

12,142,546

$

10,709,095

Stockholders' equity

1,734,332

1,699,109

Total liabilities and stockholders' equity

$

13,876,878

$

12,408,204

Net interest income

$

279,687

$

277,005

Interest rate spread (2)

2.93

%

3.17

%

Net interest margin (3)

3.00

%

3.36

%

Supplemental Information

Total deposits, including demand deposits

$

11,692,344

$

6,361

$

10,029,879

$

23,351

Cost of total deposits

0.07

%

0.31

%

Total funding liabilities, including demand deposits

$

11,862,544

$

10,326

$

10,408,847

$

28,979

Cost of total funding liabilities

0.12

%

0.37

%

Nine Months Ended

September 30, 2021 September 30, 2020

Interest Interest

Average Earned/ Yield/ Average Earned/ Yield/

Balance Paid Rate Balance Paid Rate

Interest-earning assets

Interest earningdeposits withbanks, federal $ 1,782,463 $ 1,654 0.12 % $ 599,827 $ 546 0.12 %funds sold, andshort terminvestments

Securities

Securities - 3,267 - - % 2,421 - - %trading

Securities - 1,550,859 21,603 1.86 % 1,178,671 23,006 2.61 %taxable investments

Securities -nontaxable 555 17 4.10 % 1,176 34 3.86 %investments (1)

Total securities $ 1,554,681 $ 21,620 1.86 % $ 1,182,268 $ 23,040 2.60 %

Loans held for sale 35,953 675 2.51 % 43,150 917 2.84 %

Loans

Commercial and 1,898,100 58,706 4.14 % 1,784,715 52,027 3.89 %industrial (1)

Commercial real 4,195,200 123,377 3.93 % 4,050,154 129,800 4.28 %estate (1)

Commercial 525,652 14,976 3.81 % 554,222 17,341 4.18 %construction

Small business 178,294 6,924 5.19 % 172,575 7,253 5.61 %

Total commercial 6,797,246 203,983 4.01 % 6,561,666 206,421 4.20 %

Residential real 1,242,991 34,449 3.71 % 1,473,812 41,856 3.79 %estate

Home equity 1,027,311 26,391 3.43 % 1,125,817 31,617 3.75 %

Total consumer real 2,270,302 60,840 3.58 % 2,599,629 73,473 3.78 %estate

Other consumer 23,382 1,241 7.10 % 25,643 1,587 8.27 %

Total loans $ 9,090,930 $ 266,064 3.91 % $ 9,186,938 $ 281,481 4.09 %

Totalinterest-earning $ 12,464,027 $ 290,013 3.11 % $ 11,012,183 $ 305,984 3.71 %assets

Cash and due from 147,269 122,302 banks

Federal Home Loan 9,516 17,645 Bank stock

Other assets 1,256,066 1,256,074

Total assets $ 13,876,878 $ 12,408,204

Interest-bearing liabilities

Deposits

Savings andinterest checking $ 4,292,992 $ 1,145 0.04 % $ 3,592,069 $ 3,873 0.14 %accounts

Money market 2,337,445 1,393 0.08 % 1,978,006 5,495 0.37 %

Time deposits 848,143 3,823 0.60 % 1,202,746 13,983 1.55 %

Totalinterest-bearing $ 7,478,580 $ 6,361 0.11 % $ 6,772,821 $ 23,351 0.46 %deposits

Borrowings

Federal Home Loan 34,185 544 2.13 % 205,244 1,369 0.89 %Bank borrowings

Long-term 23,434 282 1.61 % 61,240 1,045 2.28 %borrowings

Junior subordinated 62,852 1,287 2.74 % 62,849 1,362 2.89 %debentures

Subordinated 49,729 1,852 4.98 % 49,635 1,852 4.98 %debentures

Total borrowings $ 170,200 $ 3,965 3.11 % $ 378,968 $ 5,628 1.98 %

Totalinterest-bearing $ 7,648,780 $ 10,326 0.18 % $ 7,151,789 $ 28,979 0.54 %liabilities

Noninterest-bearing 4,213,764 3,257,058 demand deposits

Other liabilities 280,002 300,248

Total liabilities $ 12,142,546 $ 10,709,095

Stockholders' 1,734,332 1,699,109 equity

Total liabilitiesand stockholders' $ 13,876,878 $ 12,408,204 equity



Net interest income $ 279,687 $ 277,005



Interest rate 2.93 % 3.17 %spread (2)



Net interest margin 3.00 % 3.36 %(3)



Supplemental Information

Total deposits,including demand $ 11,692,344 $ 6,361 $ 10,029,879 $ 23,351 deposits

Cost of total 0.07 % 0.31 %deposits

Total fundingliabilities, $ 11,862,544 $ 10,326 $ 10,408,847 $ 28,979 including demanddeposits

Cost of total 0.12 % 0.37 %funding liabilities

(1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $658,000 and $720,000 for the nine months ended September 30, 2021 and 2020, respectively.

(2) Interest rate spread represents the difference between weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(3) Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

APPENDIX A: NON-GAAP Reconciliation of Balance Sheet Metrics

(Unaudited, dollars in thousands, except per share data)

The following table summarizes the calculation of the Company's tangible common equity to tangible assets ratio, tangible book value per share, and loan and allowance metrics, exclusive of PPP loan balances at the dates indicated:

(1) The total amount of adjustment to present interest income and yield on afully tax-equivalent basis is $658,000 and $720,000 for the nine months endedSeptember 30, 2021 and 2020, respectively.

(2) Interest rate spread represents the difference between weighted averageyield on interest-earning assets and the weighted average cost ofinterest-bearing liabilities.

(3) Net interest margin represents annualized net interest income as apercentage of average interest-earning assets.

APPENDIX A: NON-GAAP Reconciliation of Balance Sheet Metrics

(Unaudited, dollars in thousands, except per share data)

The following table summarizes the calculation of the Company's tangible common equity to tangible assets ratio, tangible book value per share, and loan and allowance metrics, exclusive of PPP loan balances at the dates indicated:

September 30 June 30 September 30 2021 2021 2020

Tangible common equity (Dollars in thousands, except per share data)

Stockholders' equity $ 1,755,954 $ 1,741,622 $ 1,689,724 (a)(GAAP)

Less: Goodwill and other 525,261 526,576 530,749 intangibles

Tangible common equity $ 1,230,693 $ 1,215,046 $ 1,158,975 (b)

Tangible assets

Assets (GAAP) $ 14,533,311 $ 14,194,207 $ 13,173,665 (c)

Less: Goodwill and other 525,261 526,576 530,749 intangibles

Tangible assets $ 14,008,050 $ 13,667,631 $ 12,642,916 (d)



Common Shares 33,043,812 33,037,859 32,955,547 (e)



Common equity to assets 12.08 % 12.27 % 12.83 % (a/ratio (GAAP) c)

Tangible common equity (b/to tangible assets ratio 8.79 % 8.89 % 9.17 % d)(Non-GAAP)

Book value per share $ 53.14 $ 52.72 $ 51.27 (a/(GAAP) e)

Tangible book value per $ 37.24 $ 36.78 $ 35.17 (b/share (Non-GAAP) e)



Total loans (GAAP) $ 8,808,013 $ 8,938,988 $ 9,405,193

Total loans, excluding $ 8,424,442 $ 8,456,338 $ 8,593,470 PPP (Non-GAAP)



Allowance as a % of 1.05 % 1.15 % 1.23 % total loans (GAAP)

Allowance as a % oftotal loans, excluding 1.09 % 1.21 % 1.35 % PPP (Non-GAAP)

APPENDIX B: Non-GAAP Reconciliation of Earnings Metrics

(Unaudited, dollars in thousands)

The following table summarizes the impact of noncore items on the Company's calculation of noninterest income and noninterest expense, as well as the impact of noncore items on noninterest income as a percentage of total revenue and the efficiency ratio for the periods indicated:

Three Months Ended Nine Months Ended

September June 30 September September September 30 2021 30 30 30 2021 2020 2021 2020

Netinterest $ 90,091 $ 93,354 $ 90,883 $ 279,029 $ 276,285 (a)income (GAAP)



Noninterestincome $ 26,457 $ 24,967 $ 29,347 $ 76,670 $ 83,972 (b)(GAAP)

Noninterestincome onan $ 26,457 $ 24,967 $ 29,347 $ 76,670 $ 83,972 (c)operating basis(Non-GAAP)



Noninterestexpense $ 72,419 $ 73,302 $ 66,658 $ 215,403 $ 200,105 (d)(GAAP)

Less:

Merger andacquisition 1,943 1,731 - 3,674 - expense

Loss ontermination - - 684 - 684 of derivatives

Noninterestexpense onan $ 70,476 $ 71,571 $ 65,974 $ 211,729 $ 199,421 (e)operating basis(Non-GAAP)



Totalrevenue $ 116,548 $ 118,321 $ 120,230 $ 355,699 $ 360,257 (a+b)(GAAP)

Totaloperating $ 116,548 $ 118,321 $ 120,230 $ 355,699 $ 360,257 (a+c)revenue (Non-GAAP)



Ratios

Noninterestincome as a% of total 22.70 % 21.10 % 24.41 % 21.55 % 23.31 % (b/revenue (a+b))(GAAPbased)

Noninterestincome as a% of totalrevenue on 22.70 % 21.10 % 24.41 % 21.55 % 23.31 % (c/an (a+c))operatingbasis(Non-GAAP)

Efficiency (d/ratio (GAAP 62.14 % 61.95 % 55.44 % 60.56 % 55.55 % (a+b))based)

Efficiencyratio on an (e/operating 60.47 % 60.49 % 54.87 % 59.52 % 55.36 % (a+c))basis(Non-GAAP)

APPENDIX C: Net Interest Margin Analysis & Non-GAAP Reconciliation of Core Margin

Three Months Ended

September 30, 2021 June 30, 2021

Volume Interest Margin Volume Interest Margin Impact Impact

(Dollars in thousands)

Reportedtotalinterest $ 12,877,252 $ 90,247 2.78 % $ 12,535,962 $ 93,564 2.99 %earningassets

Core adjustments:

PPP volume @ (418,645 ) (1,064 ) (717,847 ) (1,794 ) 1%

PPP fee (2,242 ) (7,217 ) amortization

Total PPP (418,645 ) (3,306 ) (0.01 ) (717,847 ) (9,011 ) (0.12 )impact % %

Acquisition ) )fair value (1,927 ) (0.06 % (1,664 ) (0.06 %accretion

Nonaccrual 163 - % 33 - %interest

Other ) )noncore (415 ) (0.01 % (410 ) (0.01 %adjustments

Core margin $ 12,458,607 $ 84,762 2.70 % $ 11,818,115 $ 82,512 2.80 %(Non-GAAP)

APPENDIX D: Commercial Loan Portfolio Characteristics

Commercial Industries Highly Impacted by COVID-19 Pandemic

While Rockland Trust is unable to know with certainty the direct, indirect, and likely far-reaching impacts of the COVID-19 pandemic, the Company continues to monitor daily the loan balances and the loan exposures for commercial loan categories deemed to be highly impacted by the pandemic (i.e., Accommodations, Food Services, Retail Trade, Other Services (except Public Administration) and Arts, Entertainments & Recreation). The Company does not have any material loan exposure to the Oil & Gas, Casino & Gambling, Aviation, or Cruise Line industries.

The table below provides total outstanding balances of commercial loans as of September 30, 2021, within industries that the Company has deemed to be highly impacted by the COVID-19 pandemic:

Highly Impacted COVID-19 Industries - Balances



September 30, 2021

(Dollars in thousands)

Accommodations $ 388,083

Food Services 142,059

Retail Trade 527,957

Other Services (except Public Administration) 139,679

Arts, Entertainment, and Recreation 99,699

Total (1) $ 1,297,477

(1) Amounts presented above exclude $122.7 million of outstanding PPP loans.Highly Impacted COVID-19 Industries - Details

September 30, 2021

(Dollars in thousands)

Accommodations

Balance

$

388,083

Average borrower loan size

$

4,283

% secured by real estate

99.8

%

Weighted average loan to value

54.0

%

Other information:

- The accommodation portfolio consists of 65 properties representing a combination of flagged (61%) and non-flagged (39%) hotels, motels and inns.

- Loans secured by hotel properties deemed to be located in areas of leisure comprise $146.6 million, or 38% of the hotel portfolio.

- Approximately 89% of the balances outstanding are secured by properties located within the six New England states with the largest concentration in Massachusetts (60%).

Food Services

Balance

$

142,059

Average borrower loan size

$

384

% secured by real estate

67.7

%

Weighted average loan to value

50.5

%

Other information:

- The food services portfolio includes full-service restaurants (55%), limited service restaurants and fast food (43%), and other types of food service (caterers, bars, mobile food service 2%).

Retail Trade

Balance

$

527,957

Average borrower loan size

$

499

% secured by real estate

43.3

%

Weighted average loan to value

57.4

%

Other information:

- The retail trade portfolio consists broadly of food and beverage stores (47%), motor vehicle and parts dealers (24%), gasoline stations (14%). All other retailers account for 15% of the current outstanding balance.

- Collateral for these loans varies and may consist of real estate, motor vehicles inventories, other types of inventories and general business assets.

Other Services (except Public Administration)

Balance

$

139,679

Average borrower loan size

$

250

% secured by real estate

51.6

%

Weighted average loan to value

48.8

%

Other information:

- The other services portfolio consists of various for-profit and not-for-profit services diversified across religious, civic and social service organizations (43%), repair and maintenance businesses (31%) and other personal services, including beauty salons, laundry services, pet care and other types of services (26%).

Arts, Entertainment, and Recreation

Balance

$

99,699

Average borrower loan size

$

793

% secured by real estate

85.5

%

Weighted average loan to value

52.3

%

Other information:

- Amusement, gambling and recreational industries make up a majority of this category (95%) and include amusement/theme parks, bowling centers, fitness centers, golf courses, marinas, and other recreational industries. Other industries including museums, performing arts, and spectator sports account for the remaining outstanding balances (5%).

Other Commercial Loan Portfolio Characteristics

Average total loan size varies across the commercial portfolio with commercial real estate loans having an average size of $1.1 million, commercial and industrial loans having an average loan size of $140,000 and small business loans, which are each under $5.0 million, having an average loan size of $33,000. Additional details are provided below regarding loan sizes of the commercial real estate and commercial and industrial portfolios as of September 30, 2021:

Highly Impacted COVID-19 Industries - Details

September 30, 2021

(Dollars in thousands)

Accommodations

Balance $ 388,083

Average borrower loan size $ 4,283

% secured by real estate 99.8 %

Weighted average loan to value 54.0 %

Other information:

- The accommodation portfolio consists of 65 properties representing acombination of flagged (61%) and non-flagged (39%) hotels, motels and inns.

- Loans secured by hotel properties deemed to be located in areas of leisurecomprise $146.6 million, or 38% of the hotel portfolio.

- Approximately 89% of the balances outstanding are secured by propertieslocated within the six New England states with the largest concentration inMassachusetts (60%).



Food Services

Balance $ 142,059

Average borrower loan size $ 384

% secured by real estate 67.7 %

Weighted average loan to value 50.5 %

Other information:

- The food services portfolio includes full-service restaurants (55%), limitedservice restaurants and fast food (43%), and other types of food service(caterers, bars, mobile food service 2%).



Retail Trade

Balance $ 527,957

Average borrower loan size $ 499

% secured by real estate 43.3 %

Weighted average loan to value 57.4 %

Other information:

- The retail trade portfolio consists broadly of food and beverage stores(47%), motor vehicle and parts dealers (24%), gasoline stations (14%). Allother retailers account for 15% of the current outstanding balance.

- Collateral for these loans varies and may consist of real estate, motorvehicles inventories, other types of inventories and general business assets.



Other Services (except Public Administration)

Balance $ 139,679

Average borrower loan size $ 250

% secured by real estate 51.6 %

Weighted average loan to value 48.8 %

Other information:

- The other services portfolio consists of various for-profit andnot-for-profit services diversified across religious, civic and social serviceorganizations (43%), repair and maintenance businesses (31%) and other personalservices, including beauty salons, laundry services, pet care and other typesof services (26%).



Arts, Entertainment, and Recreation

Balance $ 99,699

Average borrower loan size $ 793

% secured by real estate 85.5 %

Weighted average loan to value 52.3 %

Other information:

- Amusement, gambling and recreational industries make up a majority of thiscategory (95%) and include amusement/theme parks, bowling centers, fitnesscenters, golf courses, marinas, and other recreational industries. Otherindustries including museums, performing arts, and spectator sports account forthe remaining outstanding balances (5%).

Other Commercial Loan Portfolio Characteristics

Average total loan size varies across the commercial portfolio with commercial real estate loans having an average size of $1.1 million, commercial and industrial loans having an average loan size of $140,000 and small business loans, which are each under $5.0 million, having an average loan size of $33,000. Additional details are provided below regarding loan sizes of the commercial real estate and commercial and industrial portfolios as of September 30, 2021:

Commercial Real Estate (Including Construction)

<$5M $5-10M $10-20M >$20M Total

DollarAmount $ 2,662,491 $ 922,711 $ 754,931 $ 396,541 $ 4,736,674 (in '000s)

# of 4,052 131 56 16 4,255 loans

Commercial and Industrial (Including PPP)

<$5M

$5-10M

$10-20M

>$20M

Total

Dollar Amount (in '000s)

$

1,094,040

$

219,766

$

301,941

$

24,962

$

1,640,709

# of loans

11,649

33

22

1

11,705

APPENDIX E: COVID-19 Related Modifications Details

Commercial and Industrial (Including PPP)

<$5M $5-10M $10-20M >$20M Total

DollarAmount $ 1,094,040 $ 219,766 $ 301,941 $ 24,962 $ 1,640,709 (in '000s)

# of 11,649 33 22 1 11,705 loans

APPENDIX E: COVID-19 Related Modifications Details

Deferrals by Modification Type

Deferral Deferral of Deferral of of Total Total % Principal Principal Interest Deferrals Portfolio Deferral and Only Only Interest

(Dollars in thousands)

Commercialand $ 2,300 $ 560 $ 1,165 $ 4,025 $ 1,640,709 0.2 %industrial

Commercialreal estate 7,950 210,335 - 218,285 4,736,674 4.6 %(1)

Business - 588 - 588 184,138 0.3 %banking

Residential - - - - 1,222,849 - %real estate

Home equity - - - - 1,000,468 - %

Consumer - - - - 23,175 - %

Totalactivedeferrals $ 10,250 $ 211,483 $ 1,165 $ 222,898 $ 8,808,013 2.5 %as of September30, 2021

(1) Balances include commercial construction deferrals.

Deferrals by Industry

September 30, 2021

(Dollars in thousands)

Highly Impacted Industries

Accommodation

$

167,685

Arts, Entertainment, and Recreation

14,964

Total Highly Impacted Industries

182,649

Other Industries

Real Estate and Leasing

39,661

Transportation and Warehousing

588

Total Other Industries

40,249

Grand Total

$

222,898

View source version on businesswire.com: https://www.businesswire.com/news/home/20211021006037/en/

CONTACT: Chris Oddleifson President and Chief Executive Officer (781) 982-6660

CONTACT: Mark J. Ruggiero Chief Financial Officer and Chief Accounting Officer (781) 982-6281