Independent Posts Net Loss
Independent Bank Corp. reported a third quarter 2008 net loss of $5.3 million, or 23 cents per share, versus net income of $3.7 million, or 16 cents per diluted share, in the prior-year’s third quarter.
Return on average equity and return on average were 8.97 percent and 66 percent, respectively, in the third quarter of 2008, compared to 6.01 percent and 46 percent, respectively, in the year ago quarter.
Independent’s net loss for the nine months ended Sept. 30 was $1.6 million, or 7 cents per share, compared to net income of $7.9 million, or $0.35 per diluted share, in the prior-year nine-month period.
The company said the year-on-year decrease in third quarter 2008 results was primarily attributable to securities losses (19 cents per share after tax) and an increase in the provision for loan losses (26 cents per share after tax). These changes were partially offset by higher net interest income and lower income taxes
“Our third quarter results were impacted by securities losses and an increase in the provision for loan losses. The conservatorship of Fannie Mae and Freddie Mac, along with extraordinary market conditions, led to a decline in the value of preferred stock securities that we own,” said President and CEO Michael M. Magee. “Despite the loss, there were several positives during the quarter, including continued growth in our net interest margin and the improvement of certain key credit metrics. Our bank remains well capitalized, and we are optimistic that we will return to profitability in the fourth quarter.”