Independent Bank Corp. · NASDAQ:INDB
Independent Bank — KBW Eastern Regional Bank Symposium 2004
26 slides from Independent Bank's conference presentation, Mar 3, 2004
Slide 1: KBW Eastern Regional Bank Symposium, Boston, March 3, 2004
Parent of Rockland Trust Company KBW Eastern Regional Bank Symposium Boston March 3, 2004
Slide 2: Forward Looking Information
Forward Looking Information Statements contained in this presentation that are not historical facts are “forward-looking statements” as that phrase is defined in the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” are subject to risks and uncertainties which could caus
Slide 3: INDB Stock Performance
INDB Stock Performance INDB 140% 2 50 2 0 0 NASDAQ Bank Index 52% 150 S&P 500 Index 10 0 (14%) 50 0 1/1/01 4/1/01 7/1/01 10/1/01 1/1/02 4/1/02 7/1/02 10/1/02 1/1/03 4/1/03 7/1/03 10/1/03 1/1/04 1/1/2001 through 2/24/04 Source: SNL Interactive – index = 100 on 1/1/2001 NASDAQ: INDB Slide Number: 3
Slide 4: Investment Summary
Investment Summary Established Regional Brand in a Growth Market Superb Asset Quality and Significant Reserve Coverage Strong Net Interest Margin Well Balanced Traditional Banking Balance Sheet Consistent Balance Sheet and Earnings Growth Disciplined Plan for Growth NASDAQ: INDB Slide Number: 4
Slide 5: Profile
Profile Leading financial institution in Plymouth County; Strong presence in Barnstable County 52 Banking offices, 7 Commercial Lending Centers, 3 Mortgage Banking Offices & 3 Investment Management Offices 793 Employees The largest commercial bank headquartered in Massachusetts with $2.4 billion in
Slide 6: Rockland Trust's "Fly Away" Promotion
Rockland Trust’s “Fly Away” Promotion NASDAQ: INDB Slide Number: 6
Slide 7: Business Lines
Business Lines Commercial Banking Commercial & Industrial Commercial Real Estate Cash Management Small Business Consumer Banking Consumer Lending Residential Mortgage Deposit Services Phone and Web Banking Investment Management Managed Personal Trust Investment Advice and Services Mutual Funds & Ann
Slide 8: Company Footprint
Company Footprint Boston Quincy Hingham Massachusetts Hull Cohasset Atlantic Ocean Braintree Weymouth Scituate Norwell Randolph Rockland Hanover Stoughton Brockton Whitman Marshfield Pembroke Hanson Duxbury North Attleboro Bridgewater Kingston Halifax Attleboro Plymouth Raynham Middleboro North Carv
Slide 9: Recognized Regional Brand
Recognized Regional Brand Plymouth County Market Rank Institution Deposits Branches Share 1 Independent Bank Corp. 1,259,371 31 20.4 % 2 Royal Bank of Scotland Group 1,052,530 19 17.0 3 Sovereign Bancorp Inc. 963,224 25 15.6 4 Plymouth Bancorp Inc. 730,602 11 11.8 5 Bank of America Corp. 355,081 10
Slide 10: Growth Market
Growth Market % Total Growth in Employment Population Growth (1990-2000) 16 (between 1996-2002) 25% 13.9 14 20% 19.1% 12 10.4 15% 10 8.1 10% 8.6% 8 5.5% 6 5% 4 0% % Homeownership Rate (2002) % Total Growth in businesses $100 14 (between 1996-2002) 77.8 12.3 75.6 $80 12 11.2 61.7 9.9 $60 10 $40 8 $20
Slide 11: Growth Market — Infrastructure Improvements
Growth Market — Infrastructure Improvements Greenbush Li ne Rt. 3 Expansion Rt .. 44 Expansion NASDAQ: INDB Slide Number: 11
Slide 12: Strong Asset Quality
Strong Asset Quality ($in millions) 2,000 Reserve/Loans 1,581 1,432 1,500 1,299 1,185 1,029 1,000 1.40% 1.49% 1.46% 1.45% 1.31% 500 0 1999 2000 2001 2002 2003 Loans Reserve for Loan Loss/Loans 17,183 18,000 Delinquency/Loans 5 NPA’s/Assets 4.4 15,000 11,358 4 3.7 10,814 10,321 3.5 12,000 3.0 3.1 7,9
Slide 13: Net Interest Margin (FTE)
Net Interest Margin (FTE) 5.00% 4.88% 4.84% 4.60% 4.50% 4.40% 4.30% 4.29% 4.00% 4.17% 4.06% 3.99% 3.84% 3.50% 3.00% 1999 2000 2001 2002 2003 NIM (FTE) Peer NIM (FTE) Peer data source: SNL Datasource for publicly traded banks with assets between $1 — $3 billion NASDAQ: INDB Slide Number: 13
Slide 14: Strong Core Funding
Strong Core Funding 1999 2003 Demand Deposits Demand Deposits 21% 25% Savings/NOWs/ MMAs 36% Time Deposits Savings/NOWs/ 25% MMAs Time Deposits 50% 43% CAGR Deposits ($ in millions) 1999 2000 2001 2002 2003 ‘98 base yr Demand Deposits 226,044 336,755 378,663 429,042 448,452 15.4% Savings/NOWs/MMAs 3
Slide 15: Balanced Loan Portfolio
Balanced Loan Portfolio 1999 2003 Commercial Commercial Commercial RE Commercial RE 12% 11% 34 % 41% Consumer Consumer 27% 37% Residential 17% Residential 21% CAGR Portfolio ($ in millions) 1999 2000 2001 2002 2003 ‘98 base yr Commercial 126,815 134,227 151,287 151,591 171,230 7.4% Commercial RE 344
Slide 16: INDB Financial Summary
INDB Financial Summary 1999 2000 2001 2002 2003 CAGR Per Share Data Net income — Diluted 1.19 1.06 1.53 1.61 1.79 11% Cash dividend Declared 0.40 0.40 0.44 0.48 0.52 7% Book value 6.92 8.05 9.30 11.15 11.75 14% Tangible book value 6.77 5.31 6.77 8.64 9.27 8% Operating Ratios Net Interest Margin 4.30
Slide 17: Philosophy & Promises
Philosophy & Promises People Do Business with Peoplesm To our Shareholders: We will meet or exceed your financial and ethical expectations. To our Customers: You will receive exemplary customer service from our team of professionals who will work with you to fulfill your financial needs. To our Comm
Slide 18: 2004 Strategic Goals
2004 Strategic Goals Expand Commercial Lending business development capabilities and invest in process improvement Establish a new Business Banking Division Core Deposit Generation # 2 de novo branches # Invest in retail sales coaching/training and scorecard # New product set introduction # Take adv
Slide 19: Governance
Governance Chairman/CEO roles separated Majority of current Directors (11 of 12) are ‘independent’ in accordance with NASDAQ rules Board has adopted written statements of Governance Principles and written Charters for each of its committees Company has had a written Code Of Ethics for many years NAS
Slide 20: Acquisition Strategy
Acquisition Strategy Strategic Fit Low Risk Accretive to earnings Opportunistic Compliments Product Mix NASDAQ: INDB Slide Number: 20
Slide 21: Acquisition History
Acquisition History 2004 Falmouth Bancorp, Inc. $166MM in Assets & 4 Branches 2000 Sovereign Bancorp, Inc. $67MM in Deposits & 4 Branches 2000 Fleet Financial Group $269MM in Deposits & 12 Branches $134MM in Loans 1994 Pawtucket Trust Co. $50MM in Trust Assets 1994 Plymouth FSB $21MM in Deposits & 3
Slide 22: Falmouth Bancorp, Inc. Acquisition
Falmouth Bancorp, Inc. Acquisition $166.1 million in assets $145.5 million in deposits (63% Core) Cash and stock transaction valued at $36.9 million: # Price/Book 193% # Deposit premium of 11.4% # Price/Trailing EPS 40.0x Cost saves estimated at 40% Net 2 new branches Closing expected mid 2004 Expec
Slide 23: Enhancing Shareholder Value
Enhancing Shareholder Value 5 yr CAGR Diluted EPS Growth 10.6% Loan Growth 10.9% Core Deposit Growth 16.8% Dividend Growth 5.4% Leading to stock price appreciation 10 yr CAGR 23.6% 5 yr CAGR 10.0% NASDAQ: INDB Slide Number: 23
Slide 24: INDB Stock Performance
INDB Stock Performance INDB 140% 2 50 2 0 0 NASDAQ Bank Index 52% 150 S&P 500 Index 10 0 (14%) 50 0 1/1/01 4/1/01 7/1/01 10/1/01 1/1/02 4/1/02 7/1/02 10/1/02 1/1/03 4/1/03 7/1/03 10/1/03 1/1/04 1/1/2001 through 2/24/04 Source: SNL Interactive – index = 100 on 1/1/2001 NASDAQ: INDB Slide Number: 24
Slide 25: Proven Strategy
Proven Strategy A true community bank – the remaining local option People Do Business with Peoplesm Focused on executing core competencies # Commercial Lending – One good lender at a time # Consumer Lending – Full product array # Retail Deposits – Stable, low cost core deposit growth # Investment Ma
Slide 26: Parent of Rockland Trust Company
Investor Presentation Parent of Rockland Trust Company NASDAQ Ticker: INDB www.rocklandtrust.com Denis Sheahan — CFO Shareholder Relations: Michelle Newcomb (781) 878-6100 NASDAQ: INDB Slide Number: 26
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