Independent Bank Corp. Files 2023 Annual Report on Form 10-K

Ticker: INDB · Form: 10-K · Filed: Feb 28, 2024 · CIK: 776901

Sentiment: neutral

Topics: 10-K, Independent Bank Corp, Financial Report, Banking, SEC Filing

TL;DR

<b>Independent Bank Corp. has filed its 2023 10-K report detailing financial performance and loan portfolio segments.</b>

AI Summary

INDEPENDENT BANK CORP (INDB) filed a Annual Report (10-K) with the SEC on February 28, 2024. Independent Bank Corp. filed its 10-K report for the fiscal year ending December 31, 2023. The company is classified as a Large Accelerated Filer. The filing includes financial data for the fiscal years 2023, 2022, and 2021. Key financial statement items such as retained earnings are detailed for these periods. The report covers various loan portfolio segments including Commercial and Industrial, Commercial Real Estate, and Residential Real Estate.

Why It Matters

For investors and stakeholders tracking INDEPENDENT BANK CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Independent Bank Corp.'s financial health and operational performance for the fiscal year 2023, allowing investors to assess its stability and growth prospects. The detailed breakdown of loan portfolios and financial metrics enables stakeholders to understand the company's risk exposure and strategic focus within the banking sector.

Risk Assessment

Risk Level: — INDEPENDENT BANK CORP shows moderate risk based on this filing. The company operates in the highly regulated banking sector, which inherently carries risks related to economic downturns, interest rate fluctuations, and compliance requirements, as evidenced by the detailed risk factors typically found in 10-K filings.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Independent Bank Corp.'s performance and outlook.

Financial Highlights

total Assets
1,946,148,171
total Debt
42,445,920

Key Numbers

Key Players & Entities

FAQ

When did INDEPENDENT BANK CORP file this 10-K?

INDEPENDENT BANK CORP filed this Annual Report (10-K) with the SEC on February 28, 2024.

What is a 10-K filing?

A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by INDEPENDENT BANK CORP (INDB).

Where can I read the original 10-K filing from INDEPENDENT BANK CORP?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by INDEPENDENT BANK CORP.

What are the key takeaways from INDEPENDENT BANK CORP's 10-K?

INDEPENDENT BANK CORP filed this 10-K on February 28, 2024. Key takeaways: Independent Bank Corp. filed its 10-K report for the fiscal year ending December 31, 2023.. The company is classified as a Large Accelerated Filer.. The filing includes financial data for the fiscal years 2023, 2022, and 2021..

Is INDEPENDENT BANK CORP a risky investment based on this filing?

Based on this 10-K, INDEPENDENT BANK CORP presents a moderate-risk profile. The company operates in the highly regulated banking sector, which inherently carries risks related to economic downturns, interest rate fluctuations, and compliance requirements, as evidenced by the detailed risk factors typically found in 10-K filings.

What should investors do after reading INDEPENDENT BANK CORP's 10-K?

Investors should review the detailed financial statements and risk factors in the 10-K to assess Independent Bank Corp.'s performance and outlook. The overall sentiment from this filing is neutral.

How does INDEPENDENT BANK CORP compare to its industry peers?

Independent Bank Corp. operates within the commercial banking industry, providing a range of financial services to individuals and businesses.

Are there regulatory concerns for INDEPENDENT BANK CORP?

As a bank, the company is subject to oversight from various regulatory bodies, including the Federal Reserve and state banking authorities, impacting its operations and capital requirements.

Risk Factors

Industry Context

Independent Bank Corp. operates within the commercial banking industry, providing a range of financial services to individuals and businesses.

Regulatory Implications

As a bank, the company is subject to oversight from various regulatory bodies, including the Federal Reserve and state banking authorities, impacting its operations and capital requirements.

What Investors Should Do

  1. Analyze the detailed financial statements for revenue, net income, and asset growth.
  2. Review the breakdown of the loan portfolio to understand credit risk exposure.
  3. Examine the risk factors section for potential challenges and mitigation strategies.

Key Dates

Year-Over-Year Comparison

This filing is the 2023 annual report (10-K), following previous filings such as quarterly reports (10-Q) and prior annual reports.

Filing Stats: 4,405 words · 18 min read · ~15 pages · Grade level 16.9 · Accepted 2024-02-28 16:12:31

Key Financial Figures

Filing Documents

Business

Item 1. Business 5 General 5 Market Area and Competition 5 Lending Activities 6 Sources of Funds 9 Regulation 11 Human Capital 15 Available Information 17

Risk Factors

Item 1A. Risk Factors 18

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 28

Cybersecurity

Item 1C. Cybersecurity 28

Properties

Item 2. Properties 29

Legal Proceedings

Item 3. Legal Proceedings 29

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 29 Part II Item 5. Market for Independent Bank Corp.'s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29

[RESERVED]

Item 6. [RESERVED] 31

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Table 1 - Selected Financial Data 41 Table 2 - Securities Portfolio Composition 42 Table 3 - Securities Portfolio, Weighted Average Yields 43 Table 4 - Aggregate Book Value and Market Value of Select Securities 43 Table 5 - Closed Residential Real Estate Loans 44 Table 6 - Residential Mortgage Loan Sales 44 Table 7 - Mortgage Servicing Asset 45 Table 8 - Loan Portfolio Composition 45 Table 9 - Scheduled Contractual Loan Amortization 46 Table 10 - Nonperforming Assets 48 Table 11 - Activity in Nonperforming Assets 48 Table 12 - Summary Net Charge-Offs to Average Loans Outstanding 50 Table 13 - Summary of Allocation of Allowance for Credit Losses 51 Table 14 - Maturities of Uninsured Time Deposits 53 Table 15 - Assets Under Administration 53 Table 16 - Summary of Results of Operation 54 Table 17 - Average Balance, Interest Earned/Paid & Average Yields 55 Table 18 - Volume Rate Analysis 57 Table 19 - Noninterest Income 58 Table 2 0 - Noninterest Expense 59 Table 2 1 - Tax Provision and Applicable Tax Rates 60 Table 22 - Sources of Liquidity 62 Table 23 - Interest Rate Sensitivity 63

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 67

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 68 Report of Independent Registered Public Accounting Firm 68 1 Table of Contents INDEPENDENT BANK CORP. Consolidated Balance Sheets 71 Consolidated Statements of Income 72 Consolidated Statements of Comprehensive Income 73 Consolidated Statements of Stockholders' Equity 74 Consolidated Statements of Cash Flows 75 Note 1 - Summary of Significant Accounting Policies 77 Note 2 - Securities 87 Note 3 - Loans, Allowance for Credit Losses and Credit Quality 92 Note 4 - Bank Premises and Equipment 102 Note 5 - Goodwill and Other Intangible Assets 102 Note 6 - Deposits 104 Note 7 - Borrowings 104 Note 8 - Stock Based Compensation 106 Note 9 - Derivatives and Hedging Activities 109 Note 10 - Income Taxes 116 Note 11 - Low Income Housing Project Investments 119 Note 12 - Employee Benefit Plans 119 Note 13 - Fair Value Measurements 124 Note 14 - Revenue Recognition 131 Note 15 - Other Comprehensive Income (Loss) 134 Note 1 6 - Leases 136 Note 1 7 - Commitments and Contingencies 137 Note 1 8 - Regulatory Matters 137 Note 19 - Parent Company Financial Statements 139 Note 20 - Transactions with Related Parties 142

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 142

Controls and Procedures

Item 9A. Controls and Procedures 142

Other Information

Item 9B. Other Information 145

Disclosure R egarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure R egarding Foreign Jurisdictions that Prevent Inspections 145 Part III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 145

Executive Compensation

Item 11. Executive Compensation 145

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 145

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 146

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 146 Part IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 146

Form 10-K Summary

Item 16. Form 10-K Summary 148

Signatures

Signatures 149 2 Table of Contents 3 Table of Contents Cautionary Statement Regarding Forward-Looking Statements This Annual Report on Form 10-K (this "Report"), including Management's Discussion and Analysis of Financial Condition and Results of Operations and elsewhere, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management's confidence and strategies and management's expectations about new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by forward-looking terminology such as "should," "could," "will," "may," "expect," "believe," "forecast," "view," "opportunity," "allow," "continues," "reflects," "typically," "usually," "anticipate," "estimate," "intend," or similar statements or variations of such terms. Such forward-looking statements involve risks and uncertainties and our actual results may differ from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to, the following: adverse economic conditions in the regional and local economies within the New England region and the Company's market area; events impacting the financial services industry, including high profile bank failures, and any resulting decreased confidence in banks among depositors, investors, and other counterparties, as well as competition for deposits, significant disruption, volatility and depressed valuations of equity and other securities of banks in the capital markets; the effects to the Company of an increasingly competitive labor market, including the possibility that the Company will have to devote significant resources to attract and retain qualified personnel; the instabil

BUSINESS

ITEM 1. BUSINESS General Independent Bank Corp. (the "Company") is a state chartered, federally registered bank holding company headquartered in Rockland, Massachusetts that was incorporated under Massachusetts law in 1985. The Company is the sole stockholder of Rockland Trust Company ("Rockland Trust" or the "Bank"), a Massachusetts trust company chartered in 1907. The Bank provides a wide range of banking, investment and financial services, operating with over 120 retail branches, as well as a network of commercial and residential lending centers, and investment management offices primarily in Eastern Massachusetts, Worcester County, and Rhode Island. Rockland Trust also offers a full suite of mobile, online, and telephone banking services. At December 31, 2023, the Company had total assets of $19.3 billion, total deposits of $14.9 billion, and stockholders' equity of $2.9 billion. Subsidiaries At December 31, 2023, Independent Bank Corp.'s consolidated subsidiaries included the Company's banking subsidiary, Rockland Trust, which is the Company's only reportable operating segment. Rockland Trust had the following wholly-owned corporate subsidiaries: Six Massachusetts security corporations, namely Rockland Borrowing Collateral Securities Corp., Rockland Deposit Collateral Securities Corp., Taunton Avenue Securities Corp., Goddard Ave Securities Corp., MFLR Securities Corporation, and B.H. Security Corporation; RTC LIHTC Investments LLC and Rockland MHEF Fund LLC, established to invest primarily in Massachusetts-based low-income housing tax credit projects; Rockland Trust Phoenix LLC, formed for the purpose of holding, maintaining, and disposing of certain foreclosed properties; Bright Rock Capital Management LLC, which was established to act as a registered investment advisor under the Investment Advisors Act of 1940; and Compass Exchange Advisors LLC, which was established to provide like-kind exchange services pursuant to section 1031 of the Interna

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