Independent Bank Corp (Mass) (NASDAQ:INDB) Q2 2019 Earnings Conference Call - Final Transcript
Jul 19, 2019 • 10:00 am ET
economic conditions here in Massachusetts remain favorable with state unemployment of only 3% at the end of May and real GDP growth of 4.6% on an annual basis at the end of Q1. So, looking ahead, as now a bigger bank, we believe we are creating the foundation needed for a sustainable future and at the same time preserves our all-important culture of Rockland Trust, one that sets us on a path constant improvement and superior performance.
The expression where each relationship matters is well known to all my colleagues, and that expression is a living breathing call to action that recognizes our need to work hard to gain our customer's trust and added business. It's a seemingly simple idea, but there is a complex to put into action and deliver on a continual basis. My Rockland colleagues have taken this to heart and exhibit the passion and dedication to continually exceed expectations, which has led to recognition of our service actions by the reputable third-parties. We remain disciplined and have an unwavering focus on our competitive advantages. We continue to take nothing for granted and expect that competitive challenge and external uncertainly will persist. Yes, we feel confident in our ability to sustain our track record of growth and performance.
That's it from me. Rob?
Robert D. Cozzone
Thank you, Chris. Good morning. I'll provide some additional color on the Blue Hills front before turning it over to Mark. Following the closing of the acquisition on April 1, we converted all systems and facilities over the weekend of June 7. I can't say enough about the combined efforts of the conversion teams on both the Rockland and Blue Hill sides. Despite the stress associated with learning all new systems and transitioning approximately 30,000 households, our new Rockland colleagues continue to serve their customers with care, further solidifying already strong relationships.
As part of the combination, we closed three overlapping branches in West Roxbury, Norwood and Westwood, and uniquely, we decided to maintain the Nantucket Bank brand on the island of Nantucket, a brand that dates back to the mid 1800s. Even with 10 successful acquisitions under our belt, I never cease to be amazed by the talented colleagues we have working on our integrations, and I can't thank them enough. With the Blue Hills acquisition, we added $2.1 billion of loans, $1.9 billion of deposits, $197 million of securities and $125 million of borrowings. As previously discussed, some balance sheet delivering had been performed prior to the closing with more anticipated afterwards. Since closing, we have sold $47 million of securities and have identified an additional $86 million of residential loans to be sold in the third quarter, loans which have been reclassified to held for sale.
In addition, we have allowed for accelerated loan run-off for segments of the Blue Hills portfolio that don't line up well with ours. While we do not anticipate further loan or security sales, we will continue to allow certain loan portfolios to rundown. On the