Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Sandler O'Neill + Partners 2010 East Coast Financial Services Conference
24 slides from Independent Bank's conference presentation, Nov 12, 2010
Slide 1: Sandler O'Neill 2010 East Coast Financial Services Conference
Investor Presentation Sandler O'Neill + Partners, L.P. 2010 East Coast Financial Services Conference November 11, 2010
Slide 2: Who We Are
Who We Are Main Sub: Rockland Trust Market: Eastern Massachusetts Loans: $3.4 B Deposits: $3.6 B $AUM: $1.5 B Equity: $0.4 B NASDAQ: INDB
Slide 3: Key Messages
Key Messages Business lines performing well - robust volumes Consistently profitable - avoided industry problems Steadily expanding customer base We're more than a traditional community bank Building franchise value via market extension Disciplined risk management culture Strong tangible and regulat
Slide 4: Company Footprint
Company Footprint 70 Branches 4 Mortgage Banking Centers 8 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, 2010 Boston
Slide 5: Accomplishments: 2009-10
Accomplishments: 2009-10 Fundamentally sound financial performance Awarded New Market tax credits for 3rd time Launched Bright Rock Capital Management Introduced first two mutual funds National 2010 Small 1st Mort. Lender (SBA) Fully integrated Ben Franklin franchise Among the 1st to pay back CPP
Slide 6: Financial Results
Financial Results Fundamentals in Excellent Shape Includes (-$0.44 EPS in FY'09) Special FDIC Assessment Securities impairment (OTTI) - - Accrued CPP preferred div. Excludes M&A charges CPP repayment charge - - Security and derivative related gains/losses Robust C&I loan growth Core dep. up to 79% S
Slide 7: Robust Core Business Generation
Robust Core Business Generation ($ Millions) +25% CAGR +22% CAGR
Slide 8: Strong Commercial and Industrial Loan Growth
Strong Commercial and Industrial Loan Growth ($ Millions) Adding High Quality Corporate Customers
Slide 9: Reducing Below-Hurdle Assets
Reducing Below - Hurdle Assets ($ Millions) Shedding Non-Relationship Assets
Slide 10: Attractive Earning Asset Mix
Attractive Earning Asset Mix Shift Towards Higher Yielding Assets
Slide 11: Improved Funding Mix - Lower Cost Deposits
Improved Funding Mix - Lower Cost Deposits Core Deposits: 79% No broker CD's Very Focused On Containing Deposit Costs
Slide 12: Strong Net Interest Margin
Strong Net Interest Margin Holding Up Despite Difficult Conditions
Slide 13: Fee Based Revenues - Steady and Growing
Fee Based Revenues - Steady and Growing Source Wealth Management - Strategic Priority Natural Fit with Client Base Expanded investment offerings # of Accounts:
Slide 14: 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 Expedited problem loan resolution
Slide 15: Asset Quality - No Drama
Asset Quality - No Drama NPL % Loss Rate
Slide 16: Strong Loan Loss Reserves
Strong Loan Loss Reserves Reserves a Healthy Multiple of Loss Rate Reflects Ben Franklin loans acquired at FV
Slide 17: Strong Capital
Strong Capital (1)Includes tax deductibility of certain goodwill All capital growth internally generated No external capital raising Includes full payout of CPP No dividend cuts 2010 ratios reflect growth in near-cash assets
Slide 18: Attentive to Shareholder Returns
Attentive to Shareholder Returns
Slide 19: Acquisition Criteria
Acquisition Criteria Strategic Fit Low Risk Accretive to Earnings Opportunistic/Targeted Complementary Products
Slide 20: Building Franchise Value
Building Franchise Value 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 Branch
Slide 21: Sustaining Business Momentum
Sustaining Business Momentum 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 Growth
Slide 22: Other Important Priorities
Other Important Priorities Sustain high visibility in the marketplace Maintain risk management rigor Invest in Branding, Target Marketing and CRM Analytics Achieve potential of Ben Franklin market Attract and retain key talent Carefully evaluate M&A opportunities
Slide 23: INDB - Investment Merits
INDB - Investment Merits High quality franchise in attractive markets Strong on-the-ground business volumes Operating platform that can be leveraged further Balance sheet equipped to deal with current uncertainty Grounded management team - does not "reach for earnings" Aligned with shareholders - in
Slide 24: NASDAQ Ticker: INDB
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
Independent Bank — Sandler O'Neill + Partners 2010 East Coast Financial Services Conference on 6ix