Independent Bank Corp. · NASDAQ:INDB
Independent Bank — KBW Winter Financial Services Symposium 2018
23 slides from Independent Bank's conference presentation, Feb 8, 2018
Slide 1: KBW Winter Financial Services Symposium
Keefe, Bruyette & Woods, Inc. Winter Financial Services Symposium February 8, 2018 Christopher Oddleifson – Chief Executive Officer Robert Cozzone – Chief Financial Officer & EVP Consumer and Business Banking Exhibit 99.1
Slide 2: Who We Are
(2) Who We Are •Main Sub: Rockland Trust • Market: Eastern Massachusetts • Loans: $6.4B • Deposits: $6.7B • $AUA: $3.5B • Market Cap: $1.9B • NASDAQ: INDB
Slide 3: Key Messages
(3) Key Messages • Lengthy track record of consistent, solid performance • Robust loan and core deposit activity • Growing fee revenue sources, esp. Investment Mgmt. • Expanding footprint in growth markets • Tangible book value steadily growing * • Steadily improving operating efficiency • Disciplin
Slide 4: Expanding Company Footprint
(4) Expanding Company Footprint Source: SNL Financial; Deposit/Market Share data as of June 30, 2017 Market Share % of INDB Dep. Plymouth County Rank 2017 1 22.9% 39% Norfolk County Rank 2017 5 5 4.8% 19% Barnstable County (Cape Cod) Rank 2017 4 11.2% 13% Bristol County Rank 2017 6 7.8% 12% Middlese
Slide 5: Recent Accomplishments
(5) Recent Accomplishments • Five consecutive years of record operating earnings** • Finalized acquisition of Island Bancorp, Inc. of Martha's Vineyard • Capitalizing on expansion moves in vibrant Greater Boston market • Growth initiatives – new commercial products, new revitalized branches, expande
Slide 6: Strong Fundamentals Driving Performance
(6) Strong Fundamentals Driving Performance • Robust customer activity • Core deposits at 90% • Fee revenues rising • Low funding costs • Low credit loss rates • TBV steadily growing* • Operating ROA at 1.2% • Accretive acquisitions * See appendix A for reconciliation **See appendix B for reconcilia
Slide 7: Vibrant Commercial Lending Franchise
(7) Vibrant Commercial Lending Franchise • Long-term CRE/C&I lender • Increased small business focus • Strong name recognition in local markets • Expanded market presence • New loans generated: $1B+ in '17 • Added senior leaders from competitors • Growing in sophistication and capacity • Commercial
Slide 8: Commercial Diversification
(8) Commercial Diversification $3.5B as of 12/31/2017 $889M as of 12/31/2017 *Includes 1-4 Family, multifamily, Condos and Approved Land **Non-Owner Occupied Commercial Real Estate divided by Total Capital
Slide 9: Low Cost Deposit Base
(9) Low Cost Deposit Base • Sizable demand deposit component • Valuable source of liquidity • Relationship-based approach • Expanded digital access • Growing commercial base Total Deposits $6.7B 4Q 2017
Slide 10: Investment Management: Transformed Into High Growth Business
(10) Investment Management : Transformed Into High Growth Business • Successful business model • Growing source of fee revenues • Strong feeder business from Bank • Expanding investment center locations • Adding experienced professionals • Cross-sell opportunity in acquired bank markets CAGR +109% C
Slide 11: Asset Quality: Well Managed
(11) Asset Quality: Well Managed • Disciplined underwriter • Low loss rates • High average FICOs and low average LTVs in consumer book bps bps 1bps 1bps
Slide 12: Strong Capital Position
(12) Strong Capital Position * See appendix A for reconciliation • Strong internal capital generation • No storehousing of excess capital • No external equity raising • No dividend cuts
Slide 13: Well-Positioned for Rising Rates: Prudent Balance Sheet Management
(13) Well-Positioned for Rising Rates: Prudent Balance Sheet Management
Slide 14: Sustaining Business Momentum
(14) Sustaining Business Momentum Business Line • Expand Market Presence/Recruit Seasoned Lenders • Grow Client Base • Expand Specialty Products, e.g. ABL, Leasing • Lender Development Programs • Continue to Drive Household Growth • Expand Digital Offerings • Optimize Branch Network • Capitalize on
Slide 15: Optimizing Retail Delivery Network
(15) Optimizing Retail Delivery Network In the past twelve months we have: • Utilized specialized analytics software/location model • Shifted branch distribution • Closed/consolidated 1 • Opened 1 (Newton - Jan. 2018) • Relocated 1 • Redesigned 1 • Added 4 locations from Island Bancorp acquisition •
Slide 16: Expanded Presence in Vibrant Greater Boston
(16) Expanded Presence in Vibrant Greater Boston Central Bancorp $357MM Deposits 10 Branches – Nov. 2012 Investment Management and Commercial Lending Center October 2013 Peoples Federal Bancshares $432MM Deposits 8 Branches – Feb. 2015 Long-Term Commercial Lender in Greater Boston
Slide 17: Island Bancorp Acquisition
(17) Island Bancorp Acquisition Edgartown National Bank • Profitable, well-managed community bank • Provides first retail presence on M.V. • Excellent complement to growing Cape Cod presence • Financially attractive • $0.03 - $0.04 EPS accretion expected in 2018 • Neutral to TBV • Modest, low-risk d
Slide 18: Building Franchise Value: Disciplined Acquisitions
(18) Building Franchise Value Disciplined Acquisitions Deal Value: $84.5MM 2% Core Dep. Premium* Benjamin Franklin Bancorp Apr '09 $994mm Assets $701mm Deposits 11 Branches Deal Value: $52.0MM 8% Core Dep. Premium* Central Bancorp Nov '12 $537mm Assets $357mm Deposits 10 Branches Deal Value: $40.3MM
Slide 19: Major Opportunities in Acquired Bank Markets
(19) Major Opportunities in Acquired Bank Markets: Capitalizing on Rockland Trust Brand Acquired Bank Customer Bases Investment Management • $3.5 billion AUA • Wealth/Institutional • Strong referral network Commercial Banking • Sophisticated products • Extended capacity • In-depth market knowledge R
Slide 20: INDB Investments Merits
(20) INDB Investments Merits • High quality franchise in attractive markets • Consistent, strong financial performance • Strong organic business volumes • Growing brand recognition • Operating platform that can be leveraged further • Capitalizing on in-market consolidation opportunities • Diligent s
Slide 21: Appendix A
(21) Appendix A The following table reconciles Book Value per share, which is a GAAP based measure to Tangible Book Value per share, which is a non-GAAP based measure. It also reconciles the ratio of Equity to Assets, which is a GAAP based measure, to Tangible Equity to Tangible Assets, a non-GAAP m
Slide 22: Appendix B
(22) Appendix B The following table reconciles net income and diluted EPS, which are GAAP measures, to operating earnings and diluted EPS on an operating basis, which are Non-GAAP Measures as of the time periods indicated: 2014 2015 2016 YTD 2017 (Dollars in thousands, except per share data) Net inc
Slide 23: NASDAQ Ticker: INDB
(23) NASDAQ Ticker: INDB www.rocklandtrust.com Robert Cozzone – CFO & EVP Consumer and Business Banking Shareholder Relations: (781) 982-6737 Statements contained in this presentation that are not historical facts are ―forward-looking statements‖ that are subject to risks and uncertainties which cou
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