Independent Bank Corp., parent of Rockland Trust Co., has reported net income of $8.9 million for the second quarter of 2012, a 20 percent drop from $11.1 million in net income for the same period in 2011.

The second quarter of 2012 included expenses of $672,000, pre-tax, associated with the previously announced Central Bancorp Inc. acquisition. When excluding these expenses, on an operating basis, net income for the quarter was $9.3 million, according to a statement.

The second quarter of 2012 also included a $4 million charge-off that reduced diluted earnings per share by approximately 11 cents. The charge-off was taken in connection with a working capital loan to a commercial borrower that was unexpectedly placed into state court receivership in late June. The charge-off was taken upon receipt of information indicating material misstatements and potential borrower fraud that included a material overstatement of accounts receivable and inventory collateral, as well as evidence of invalid and/or altered borrower records.

"Although we had an unpleasant surprise this quarter that detracted from our bottom line performance, our business momentum continues to build nicely and operating fundamentals are as strong as ever," said Christopher Oddleifson, president and chief executive officer of Independent Bank Corp. and Rockland Trust Co. "Businesses and consumers are looking more closely at their finances and are willing to switch banks for the right reasons. Rockland Trust’s combination of convenience, breadth of products, fair pricing, and knowledgeable, committed bankers offers strong value and sets us apart from our competitors. As a result, we’ve continued to grow both deposits and loans."