While Independent Bank Corp. posted strong results coming out of 2014, executives sought to temper investor expectations for the first quarter and emphasized their preparedness for the $10 billion threshold in a recent earnings call discussing their fourth quarter results.
The parent company for Rockland Trust posted net income of $16 million for the period ended Dec. 31, a little more than a 50 percent increase over $10.6 million posted in the fourth quarter of 2013. Net income for the entire year totaled $59.9 million, 19 percent greater than $50.3 million in 2013.
The company’s fourth quarter results also contained $586,000 in expenses related to its recent acquisition of People’s Federal Bancshares, which has received all the necessary regulatory blessings and is expected to close on Feb. 20.
Total assets increased $265.7 million, or 4.4. percent, year-over-year to $6.4 billion at 2014’s end. During the earnings call, President and CEO Christopher Oddleifson said the company has been incrementally preparing to hit the $10 billion mark that will subject it to greater regulatory scrutiny. Even a smaller acquisition could bump it up into that range, he said.
But while the parent company of Rockland Trust would consider a deal of any size, Oddleifson also said, “I think of bank sales in our region almost as a random event now, since there’s so few banks really that are even capable of selling themselves from an ownership perspective.”
Still, in anticipation of the $10 billion mark, Oddleifson noted that the company had in recent years built out its compliance, internal audit and BSA functions and more recently, had made several “very qualified” hires to handle cybersecurity. CFO Robert Cozzone added that the company will likely hire an additional person to help with capital stress testing.
Total loans increased year-over-year by $252.4 million, or 5.4 percent, to $5 billion at year-end 2014, boosted in particular by growth in the commercial loan portfolio. Year-over-year, Independent Bank Corp. increased commercial construction almost 19 percent to $266 million and commercial real estate 4.4 percent to $2.3 billion. Total commercial loans increased 6.7 percent from the same period in 2013.
Looking ahead, Cozzone cautioned investors on the call that the first quarter would likely result in lower loan production. While the company has had “a lot of success” in the Boston market, Cozzone also said 2015 could bring with it an elevated level of paydowns.
Investment management income for the full year increased 16.7 percent to $19.6 million in 2014. The company also increased its assets under administration 9.4 percent to $2.5 billion.
