Independent Bank says not to pay stock dividend in 2007

Aug 3 (Reuters) - Independent Bank Corp. (IBCP.O) said it would not be paying a 5 percent stock dividend in 2007, as such a dividend results in a large transfer out of retained earnings and into common stock.

A stock dividend results in higher Nasdaq listing fees, because of more shares outstanding, and one-time expenses with stock transfer agent, it added.

The company said given its operating results over the past three quarters, such a transfer would not be in the best interest of the company or its shareholders. (Reporting by Bijoy Koyitty in Bangalore)