Business Description

5 Market Area and Competition 5 Lending Activities 6 Sources of Funds 9 Regulation 10 Human Capital 14 Available Information 16 Item 1A. Risk Factors 16 Item 1B. Unresolved Staff Comments 28 Item 1C. Cybersecurity 28 Item 2. Properties 30 Item 3. Legal Proceedings 30 Item 4. Mine Safety Disclosures 30 Part II Item 5. Market for Independent Bank Corp.’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 30 Item 6. [RESERVED] 32 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 32 Table 1 - Selected Financial Data 42 Table 2 - Securities Portfolio Composition 43 Table 3 - Securities Portfolio, Weighted Average Yields 44 Table 4 - Aggregate Book Value and Market Value of Select Securities 44 Table 5 - Closed Residential Real Estate Loans 45 Table 6 - Residential Mortgage Loan Sales 45 Table 7 - Mortgage Servicing Asset 46 Table 8- Compone n ts of Lo an Growth/(Decline) 46 Table 9 - Loan Portfolio Composition 47 Table 10 - Scheduled Contractual Loan Amortization 47 Table 11 - Non-performing Assets 49 Table 12 - Activity in Non-performing Assets 49 Table 1 3 - Summary Net Charge-Offs to Average Loans Outstanding 51 Table 1 4 - Summary of Allocation of Allowance for Credit Losses 52 Table 15- Components of Deposit Growth/(Decline) 53 Table 1 6 - Maturities of Uninsured Time Deposits 54 Table 1 7 - Assets Under Administration 54 Table 1 8 - Summary of Results of Operations 55 Table 1 9 - Average Balance, Interest Earned/Paid & Average Yields 56 Table 20 - Volume Rate Analysis 58 Table 21 - Non-interest Income 59 Table 22 - Non-interest Expense 60 Table 2 3 - Tax Provision and Applicable Tax Rates 61 Table 2 4 - Sources of Liquidity 63 1 INDEPENDENT BANK CORP. Table 2 5 - Interest Rate Sensitivity 64 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 68 Item 8. Financial Statements and Supplementary Data 69 Report of Independent Registered Public Accounting Firm 69 Consolidated Balance Sheets 72 Consolidated Statements of Income 73 Consolidated Statements of Comprehensive Income 74 Consolidated Statements of Stockholders’ Equity 75 Consolidated Statements of Cash Flows 76 Note 1 - Summary of Significant Accounting Policies 78 Note 2 - Acquisitions 90 Note 3 - Securities 92 Note 4 - Loans, Allowance for Credit Losses and Credit Quality 97 Note 5 - Bank Premises and Equipment 107 Note 6 - Goodwill and Other Intangible Assets 107 Note 7 - Deposits 109 Note 8 - Borrowings 109 Note 9 - Stock Based Compensation 111 Note 10 - Derivatives and Hedging Activities 114 Note 1 1 - Income Taxes 121 Note 1 2 - Low Income Housing Project Investments 125 Note 1 3 - Employee Benefit Plans 125 Note 1 4 - Fair Value Measurements 129 Note 1 5 - Revenue Recognition 136 Note 1 6 - Other Comprehensive Income (Loss) 137 Note 1 7 - Leases 139 Note 1 8 - Commitments and Contingencies 140 Note 1 9 - Regulatory Matters 140 Note 20 - Parent Company Financial Statements 142 Note 2 1 - Transactions with Related Parties 145 Note 2 2 - Segment Information 145 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 146 Item 9A. Controls and Procedures 146 Item 9B. Other Information 148 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 148 Part III Item 10. Directors, Executive Officers and Corporate Governance 148 Item 11. Executive Compensation 148 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 148 Item 13. Certain Relationships and Related Transactions, and Director Independence 149 Item 14. Principal Accounting Fees and Services 149 Part IV Item 15. Exhibits, Financial Statement Schedules 149 Item 16. Form 10-K Summary 152 Signatures 153 2 3 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.…