INDEPENDENT BANK CORP
For the period ended Dec 31, 2023. Filed Feb 28, 2024.
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FY2023 · Filed Feb 28, 2024
Contents
Table - Volume Rate Analysis
The following table presents certain information on a fully-tax equivalent basis regarding changes in the Company’s interest income and interest expense for the periods indicated. For each category of interest-earning assets and interest-bearing liabilities, information is provided with respect to changes attributable to (1) changes in rate (change in rate multiplied by prior year volume), (2) changes in volume (change in volume multiplied by prior year rate) and (3) changes in volume/rate (change in rate multiplied by change in volume) which is allocated to the change due to rate column:
Table 18 - Volume Rate Analysis
| Years Ended December 31 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 Compared To 2022 · 2022 Compared To 2021 · 2021 Compared To 2020 | |||||||||||
| ChangeDue toRate · ChangeDue toVolume · TotalChange · ChangeDue toRate · ChangeDue toVolume · TotalChange · ChangeDue toRate · ChangeDue toVolume · TotalChange | |||||||||||
| (Dollars in thousands) | |||||||||||
| Income on interest-earning assets | |||||||||||
| Interest-earning deposits, federal funds sold and short term investments | $3,788 | $(12,987) | $(9,199) | $12,750 | $(859) | $11,891 | $384 | $1,263 | $1,647 | ||
| Securities | |||||||||||
| Taxable securities | 8,626 | 1,356 | 9,982 | 300 | 19,577 | 19,877 | (15,979) | 16,323 | 344 | ||
| Nontaxable securities (1) | — | — | — | (1) | (12) | (13) | 2 | (26) | (24) | ||
| Total securities | 9,982 | 19,864 | 320 | ||||||||
| Loans held for sale | 72 | (54) | 18 | 52 | (736) | (684) | (76) | (286) | (362) | ||
| Loans | |||||||||||
| Commercial and industrial | 33,264 | 5,414 | 38,678 | 9,787 | (12,465) | (2,678) | 10,743 | (1,326) | 9,417 | ||
| Commercial real estate | 48,652 | 1,341 | 49,993 | 17,925 | 122,760 | 140,685 | (11,652) | 26,547 | 14,895 | ||
| Commercial construction | 16,958 | (8,322) | 8,636 | 10,043 | 23,065 | 33,108 | (486) | 2,232 | 1,746 | ||
| Small business | 1,942 | 1,600 | 3,542 | 350 | 1,260 | 1,610 | (732) | 479 | (253) | ||
| Total commercial | 100,849 | 172,725 | 25,805 | ||||||||
| Residential real estate | 11,379 | 13,388 | 24,767 | (2,442) | 19,606 | 17,164 | (1,999) | (5,598) | (7,597) | ||
| Home equity | 25,309 | 1,341 | 26,650 | 7,674 | 1,214 | 8,888 | (2,523) | (3,313) | (5,836) | ||
| Total consumer real estate | 51,417 | 26,052 | (13,433) | ||||||||
| Total other consumer | 356 | (52) | 304 | (120) | 566 | 446 | (280) | (107) | (387) | ||
| Loans (1) | 152,570 | 199,223 | 11,985 | ||||||||
| Total | $153,371 | $230,294 | $13,590 | ||||||||
| Expense of interest-bearing liabilities | |||||||||||
| Deposits | |||||||||||
| Savings and interest checking accounts | $35,640 | $(906) | $34,734 | $6,179 | $550 | $6,729 | $(3,882) | $1,079 | $(2,803) | ||
| Money market | 41,513 | (1,566) | 39,947 | 9,007 | 746 | 9,753 | (5,670) | 1,434 | (4,236) | ||
| Time certificates of deposits | 43,957 | 1,463 | 45,420 | (2,072) | 1,915 | (157) | (8,786) | (3,181) | (11,967) | ||
| Total interest-bearing deposits | 120,101 | 16,325 | (19,006) | ||||||||
| Borrowings | |||||||||||
| Federal Home Loan Bank borrowings | 22,455 | 14,856 | 37,311 | (35) | (549) | (584) | 498 | (1,165) | (667) | ||
| Line of credit | — | ||||||||||
| Long-term borrowings | — | (31) | (31) | (4) | (296) | (300) | (127) | (718) | (845) | ||
| Junior subordinated debentures | 2,234 | — | 2,234 | 433 | — | 433 | (106) | — | (106) | ||
| Subordinated debt | (5) | 5 | — | (5) | 5 | — | (5) | 5 | — | ||
| Total borrowings | 39,514 | (451) | (1,618) | ||||||||
| Total | $159,615 | $15,874 | $(20,624) | ||||||||
| Change in net interest income | $(6,244) | $214,420 | $34,214 | ||||||||
(1)The table above reflects income determined on a fully tax equivalent basis. See footnotes to Table 17 above for the related adjustments.
Provision For Credit Losses The provision for credit losses represents the charge to expense that is required to maintain an adequate level of allowance for credit losses. The Company's provision for credit losses totaled $23.3 million, $6.5 million and $18.2 million for the years ended December 31, 2023, 2022, and 2021, respectively. The provision for credit losses for the years ended December 31, 2023, 2022, and 2021, respectively has been driven primarily by idiosyncratic events within the commercial portfolios.
The Company’s allowance for credit losses, as a percentage of total loans, was 1.00%, 1.09% and 1.08% at December 31, 2023, 2022 and 2021, respectively. See Note 3, "Loans, Allowance for Credit Losses and Credit Quality" within the Notes to Consolidated Financial Statements included in Item 8 of this Report, for further details surrounding the primary drivers of the provision for credit losses during the period.
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