Independent Bank Corp. has a market cap of $12.1 million; its shares were traded at around $1.6501 .
Highlight of Business Operations:institutions with less than $15 billion in assets as of December 31, 2009; and new restrictions on how mortgage brokers and loan originators may be compensated. Certain provisions of the Dodd-Frank Act only apply to institutions with more than $10 billion in assets. We expect that the Dodd-Frank Act will have a significant impact on the banking industry, including our organization.
Summary. We recorded a net loss of $6.6 million and $18.3 million and a net loss applicable to common stock of $7.7 million and $19.4 million during the three months ended September 30, 2010 and 2009, respectively. The improvement in 2010 is primarily due to a decrease in the provision for loan losses and non-interest expenses that were partially offset by decreases in net interest income and mortgage loan servicing income.
We incurred a net loss of $12.6 million and $42.1 million and a net loss applicable to common stock of $15.9 million and $45.3 million during the nine months ended September 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 and in addition, the first nine months of 2010 included an $18.1 million gain on the extinguishment of debt that was recorded in June 2010.
Net interest income decreased by 23.5% to $27.0 million and by 18.6% to $85.6 million, respectively, during the three- and nine-month periods in 2010 compared to 2009. These decreases reflect declines in our net interest income as a percent of average interest-earning assets (the net interest margin) as well as in our average interest-earning assets. The decline in the net interest margin primarily reflects a decrease in the yield on interest earning assets principally due to a change in the mix of interest-earning assets with a declining level of higher yielding loans and an increasing level of lower yielding short-term investments, as described in more detail below. The change in asset mix reflects our strategy to preserve our regulatory capital levels by reducing loan balances that have higher risk weightings for regulatory capital purposes.
Our net interest income is also impacted by our level of non-accrual loans. In the third quarter and first nine months of 2010 non-accrual loans averaged $80.8 million and $91.9 million, respectively, compared to $119.5 million and $122.8 million, respectively, for the same periods in 2009. In the third quarter of 2010 we recorded a net recovery of $0.1 million of interest income related to non-accrual loans as interest recovered on such loans exceeded interest reversed during the quarter on loans placed on non-accrual. We reversed a net of $0.4 million of interest income in the third quarter of 2009. We reversed a net of $0.1 million and $2.0 million, respectively, of interest income related to non-accrual loans during the first nine months of 2010 and 2009, respectively.
Non-interest income totaled $12.0 million during the three months ended September 30, 2010, a $0.8 million decrease from the comparable period in 2009. This decrease was primarily due to declines in service charges on deposit accounts and other non-interest income as well as an increased loss from mortgage loan servicing. These changes were partially offset by increases in net gains on mortgage loans as well as income from VISA check card interchange and bank owned life insurance. For the first nine months of 2010 non-interest income totaled $53.4 million, an $8.0 million increase from the comparable period in 2009. The year to date increase is primarily due to an $18.1 million gain on the extinguishment of debt recorded in June 2010. This change was partially offset by declines in service charges on deposit accounts, net gains on mortgage loan sales and other non-interest income as well as a loss recorded on mortgage loan servicing in 2010 due to impairment charges on capitalized mortgage loan servicing rights.
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