Independent of Mass. Posts 6% Profit Gain Following Mayflower Deal

Independent Bank Corp. (INDB) of Rockland, Mass., reported net income Thursday of $10.6 million for the fourth quarter of 2013, a 6.2% increase from the same quarter in 2012.

The $6.1 billion-asset parent company of Rockland Trust Company met estimates of analysts polled by Bloomberg at 45 cents. Earnings dipped 27.9% from the third quarter of 2013, however, due to costs associated with its November acquisition of Mayflower Bancorp. Independent added four branches and $126.6 million in loans and $262.8 million of assets in the deal.

Net interest income jumped 3.1% from the fourth quarter of 2012, to $46.9 million. Net interest margin declined by 23 basis points, to 3.45%, year over year but jumped two basis points from the third quarter in large part due to a lower average cash position and lower borrowing costs.

Noninterest income climbed nearly 3%, to $17.5 million, due to increases in interchange and automated teller machine fees, as well as 5.8% increase in investment management income.

Weighted by $6.2 million in expenses related to the Mayflower acquisition, noninterest expense increased 6.2% from the fourth quarter of 2012, to $47.8 million. The provision for loan losses was $3.2 million, a decrease of 27.6%, though chargeoffs increased 52%, to $3.5 million.