Independent Bank Corp. has a market cap of $7.9 million; its shares were traded at around $0.33 .
Highlight of Business Operations:Summary. We recorded net income of $7.9 million and net income applicable to common stock of $6.8 million during the three months ended June 30, 2010 compared to a net loss of $5.2 million and a net loss applicable to common stock of $6.2 million during the comparable period in 2009. The improvement in 2010 is primarily due to a significant gain on the extinguishment of debt and a decrease in the provision for loan losses that were partially offset by decreases in net interest income and mortgage loan servicing income.
We incurred a net loss of $6.0 million and $23.8 million and a net loss applicable to common stock of $8.1 million and $25.9 million during the six months ended June 30, 2010 and 2009, respectively. The reasons for the changes in the year-to-date comparative periods are generally commensurate with the quarterly comparative periods.
Net interest income decreased by 19.6% to $28.6 million and by 16.1% to $58.6 million, respectively, during the three- and six-month periods in 2010 compared to 2009. These decreases
Our net interest income is also adversely impacted by our level of non-accrual loans. In the second quarter and first six months of 2010 non-accrual loans averaged $91.6 million and $97.5 million, respectively compared to $121.5 million and $124.5 million, respectively for the same periods in 2009. In addition, in the second quarter and first six months of 2010 we reversed $0.2 million and $0.5 million, respectively, of accrued and unpaid interest on loans placed on non-accrual during each period compared to $0.8 million and $1.7 million, respectively during the same periods in 2009.
Provision for loan losses. The provision for loan losses was $12.7 million and $25.7 million during the three months ended June 30, 2010 and 2009, respectively. During the six-month periods ended June 30, 2010 and 2009, the provision was $29.7 million and $55.8 million, respectively. The provision reflects our assessment of the allowance for loan losses taking into consideration factors such as loan mix, levels of non-performing and classified loans and loan net charge-offs. While we use relevant information to recognize losses on loans, additional provisions for related losses may be necessary based on changes in economic conditions, customer circumstances and other credit risk factors. The decrease in the provision for loan losses in the second quarter and first half of 2010 primarily reflects reduced levels of non-performing loans, lower total loan balances and a decline in loan net charge-offs. See Portfolio Loans and asset quality for a discussion of the various components of the allowance for loan
Non-interest income totaled $29.3 million during the three months ended June 30, 2010, an $8.3 million increase from the comparable period in 2009. This increase was primarily due to a significant gain from the extinguishment of debt that was partially offset by decreases in service charges on deposit accounts, mortgage loan servicing income, title insurance fees and other non-interest income as well as a decline in gains on mortgage loans and securities. For the first six months of 2010 non-interest income totaled $41.3 million, an $8.7 million increase from the comparable period in 2009. The year to date changes are generally commensurate with the quarterly changes.
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