KBW maintains 'Market Perform' on Independent Bank
By
Associated Press
August 28, 2008
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Keefe, Bruyette & Woods analyst Damon DelMonte on Thursday reiterated a "Market Perform" rating on Independent Bank Corp., after the bank announced that it had issued $30 million of subordinated debt in a private placement.
Late Wednesday, Rockland Trust Co., Independent's bank subsidiary, said it sold the $30 million of debt to a subsidiary of U.S. Bank N.A. The Rockland, Mass. company plans to use proceeds from the sale to support growth and for general corporate purposes.
"Our initial take on this announcement is that Independent Bank took advantage of the opportunity to solidify its balance sheet by boosting its total capital ratio without materially diluting shareholders," wrote DelMonte in a note to clients. "While we do not see an immediate need for capital being driven by deteriorating credit, this move may have been a proactive response to the uncertainty surrounding its exposure to trust preferred securities."
Shares rose 43 cents to $27.99 in afternoon trading.
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