Independent Bank Corp. · NASDAQ:INDB
Independent Bank — KBW 2010 Regional Banking Conference
26 slides from Independent Bank's conference presentation, Feb 24, 2010
Slide 1: Investor Presentation KBW 2010 Regional Banking Conference
Investor Presentation KBW 2010 Regional Banking Conference February 24, 2010
Slide 2: Who We Are
Who We Are Main Sub: Rockland Trust Market: Eastern Massachusetts Loans: $3.4 B Deposits: $3.4 B $AUM: $1.3 B Equity: $0.4 B NASDAQ: INDB 2
Slide 3: Key Messages
Key Messages Business lines performing well - robust volumes Consistently profitable - avoided industry problems Gaining customers from industry fallout We're more than a traditional community bank Building franchise value via market extension Disciplined risk management culture Strong tangible and
Slide 4: Company Footprint
Company Footprint 4 70 Branches 3 Mortgage Banking Centers 11 Commercial Banking Centers 4 Investment Management Centers Business generation extends beyond S.E. Mass. footprint Source: SNL Financial; Deposit/Market Share data as of June 30, 2009 including pending transactions. (Includes Credit Union
Slide 5: 2009 Accomplishments
2009 Accomplishments Fundamentally sound financial performance Favorable peer comparisons -credit quality and capital Fully integrated Ben Franklin franchise Among the 1st to pay back CPP Awarded New Market tax credits for 3rd time Top Place to Work and Most Trustworthy designations 5
Slide 6: 2009 Financial Results
2009 Financial Results Fundamentals in Excellent Shape 6 Includes (-$0.44 EPS in '09) Special FDIC Assessment Securities impairment (OTTI) - - Accrued CPP preferred div. Excludes M&A charges CPP repayment charge - - Security and derivative gains Robust comm'l loan growth Core dep. up to 73% Strong n
Slide 7: Strong Organic Growth in Priority Portfolios
Strong Organic Growth in Priority Portfolios ($ Millions) 7 +25% CAGR +22% CAGR
Slide 8: Reducing Below-Hurdle Assets
Reducing Below - Hurdle Assets ($ Millions) 8 Shedding Non-Relationship Assets Accounted for 13% of net chargeoffs in 2009
Slide 9: Attractive Earning Asset Mix
Attractive Earning Asset Mix 9 Shift Towards Higher Yielding Assets
Slide 10: Improved Funding Mix - Lower Cost Deposits
Improved Funding Mix - Lower Cost Deposits 10 Core Deposits: 73% No broker CD's Very Focused On Containing Deposit Costs
Slide 11: Strong Net Interest Margin
11 Strong Net Interest Margin Holding Up Despite Difficult Conditions
Slide 12: Fee Based Revenues - Steady and Growing
12 Fee Based Revenues - Steady and Growing Source Wealth Management - Strategic Priority Natural Fit with Client Base $ AUM holding up comparatively well in very weak markets # of Accounts 1,342 1,528 2,501 2,756 2,922
Slide 13: Disciplined Credit Culture
Disciplined Credit Culture Longstanding underwriting conservatism Loan portfolio based within footprint In-depth knowledge of local markets No wholesale originations of any loan type Workout team in place for 18 years 13
Slide 14: Asset Quality - No Drama
Asset Quality - No Drama 14 NPL % 0.38% 1.02% 1.09% 1.07% Loss Rate 16bp 25bp 38bp
Slide 15: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio 15
Slide 16: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio 16
Slide 17: Strong Loan Loss Reserves
Strong Loan Loss Reserves 17 Reserves a Healthy Multiple of Loss Rate Reflects Ben Franklin loans acquired at FV
Slide 18: Strong Capital
Strong Capital 18 (1)Includes tax deductibility of certain goodwill All capital growth internally generated No external capital raising Includes full payout of CPP No dividend cuts
Slide 19: Attentive to Shareholder Returns
Attentive to Shareholder Returns 19 *declared
Slide 20: Acquisition Criteria
Acquisition Criteria Strategic Fit Low Risk Accretive to Earnings Opportunistic/Targeted Complementary Products 20
Slide 21: Building Franchise Value
Building Franchise Value 21 BANK NON- BANK All Acquisitions Immediately Accretive Disciplined Acquisitions Deal Value: $40mm 12% Dep. Premium Fleet Divest. Aug '00 $336mm Deposits $135mm Loans 16 Branches Deal Value: $37mm 11% Dep. Premium Falmouth Bancorp Jul '04 $158mm Assets $137mm Deposits 4 Bra
Slide 22: Sustaining Business Momentum
Sustaining Business Momentum 22 Grow C&I Client Base Continue to Take Advantage of Competitive Disruption Expand Specialty Products Commercial Expand Alternative Channels Optimize Branch Network Product Structure & Pricing Retail Delivery Capture Market Share Opportunity Target Intelligent Loan Grow
Slide 23: Other Important Priorities
Other Important Priorities Continue to capitalize on industry fallout Maintain risk management rigor, esp. Interest rate risk Classified exposures Achieve potential of Ben Franklin market Invest in Branding, Target Marketing and CRM Analytics Attract and retain key talent Carefully evaluate M&A oppo
Slide 24: 2010 Outlook - Key Expectations
2010 Outlook - Key Expectations Commercial Loan Growth Core Deposit Growth Net Interest Margin Loss Rate Provision/Loans + 7-10% (Total Loans: 4-7%) + 6-8% (Total Dep. 2-5%) ^ 4.0% 45-55 bp 50-65 bp 24
Slide 25: INDB - Investment Merits
INDB - Investment Merits Building franchise value in attractive markets Strong on-the-ground business volumes Operating platform that can be leveraged further Balance sheet equipped to deal with severe environment Grounded management team - does not "reach for earnings" Aligned with shareholders - i
Slide 26: Contact and Forward-Looking Statements
NASDAQ Ticker: INDB www.rocklandtrust.com Denis Sheahan - CFO Shareholder Relations: Jennifer Kingston (781) 878-6100 Statements contained in this presentation that are not historical facts are "forward- looking statements" that are subject to risks and uncertainties which could cause actual results
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