Independent Bank Corp. IBC Capital Finan (IBCPO, Financial) filed Quarterly Report for the period ended 2009-06-30.
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We incurred a net loss of $23.8 million and a net loss applicable to common stock of $25.9 million during the six months ended June 30, 2009, compared to net income of $3.7 million during the comparable period in 2008. The reasons for the changes in the year-to-date comparative periods are generally commensurate with the quarterly comparative periods.
Tax equivalent net interest income increased by 4.6% to $36.1 million and by 7.3% to $71.2 million, respectively, during the three- and six-month periods in 2009 compared to 2008. These increases reflect a rise in our tax equivalent net interest income as a percent of average interest-earning assets (Net Yield) that was partially offset by a decrease in average interest-earning assets.
We review yields on certain asset categories and our net interest margin on a fully taxable equivalent basis. This presentation is not in accordance with generally accepted accounting principles (GAAP) but is customary in the banking industry. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. The adjustments to determine tax equivalent net interest income were $0.6 million and $1.3 million for the second quarters of 2009 and 2008, respectively, and were $1.3 million and $2.7 million for the first six months of 2009 and 2008, respectively. These adjustments were computed using a 35% tax rate.
Our tax equivalent net interest income is also adversely impacted by our level of non-accrual loans. In the second quarter and first six months of 2009 non-accrual loans averaged $121.5 million and $124.4 million, respectively compared to $104.4 million and $93.6 million, respectively for the same periods in 2008. In addition, in the second quarter and first six months of 2009 we reversed $0.8 million and $1.7 million, respectively, of accrued and unpaid interest on loans placed on non-accrual during each period compared to $0.6 million and $1.4 million, respectively during the same periods in 2008.
Non-interest income totaled $21.0 million during the three months ended June 30, 2009, a $6.9 million increase from the comparable period in 2008. This increase was primarily due to increases in gains on mortgage loans and securities and in mortgage loan servicing income. For the first six months of 2009 non-interest income totaled $32.6 million, a $9.0 million increase from the comparable period in 2008. The year to date changes are generally commensurate with the quarterly changes.
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Highlight of Business Operations:
Summary We incurred a net loss of $5.2 million and a net loss applicable to common stock of $6.2 million during the three months ended June 30, 2009, compared to net income of $3.3 million during the comparable period in 2008. The 2009 loss is primarily due to increases in the provision for loan losses and non-interest expenses. These changes were partially offset by increases in net interest income and non-interest income.We incurred a net loss of $23.8 million and a net loss applicable to common stock of $25.9 million during the six months ended June 30, 2009, compared to net income of $3.7 million during the comparable period in 2008. The reasons for the changes in the year-to-date comparative periods are generally commensurate with the quarterly comparative periods.
Tax equivalent net interest income increased by 4.6% to $36.1 million and by 7.3% to $71.2 million, respectively, during the three- and six-month periods in 2009 compared to 2008. These increases reflect a rise in our tax equivalent net interest income as a percent of average interest-earning assets (Net Yield) that was partially offset by a decrease in average interest-earning assets.
We review yields on certain asset categories and our net interest margin on a fully taxable equivalent basis. This presentation is not in accordance with generally accepted accounting principles (GAAP) but is customary in the banking industry. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. The adjustments to determine tax equivalent net interest income were $0.6 million and $1.3 million for the second quarters of 2009 and 2008, respectively, and were $1.3 million and $2.7 million for the first six months of 2009 and 2008, respectively. These adjustments were computed using a 35% tax rate.
Our tax equivalent net interest income is also adversely impacted by our level of non-accrual loans. In the second quarter and first six months of 2009 non-accrual loans averaged $121.5 million and $124.4 million, respectively compared to $104.4 million and $93.6 million, respectively for the same periods in 2008. In addition, in the second quarter and first six months of 2009 we reversed $0.8 million and $1.7 million, respectively, of accrued and unpaid interest on loans placed on non-accrual during each period compared to $0.6 million and $1.4 million, respectively during the same periods in 2008.
Non-interest income totaled $21.0 million during the three months ended June 30, 2009, a $6.9 million increase from the comparable period in 2008. This increase was primarily due to increases in gains on mortgage loans and securities and in mortgage loan servicing income. For the first six months of 2009 non-interest income totaled $32.6 million, a $9.0 million increase from the comparable period in 2008. The year to date changes are generally commensurate with the quarterly changes.
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