Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Q1 2022 Earnings Presentation
14 slides from Independent Bank's earnings presentation, Apr 22, 2022
Slide 1: Q1 2022 Earnings Presentation
Exhibit 99.2 Q1 2022 Earnings Presentation April 22, 2022
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations and business of the Company. These statements may be identified by such
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). This information includes operating net income and operating earnings per share ("EPS"),
Slide 4: Highlights
Highlights Key Drivers of Q1 2022: Key Operating Metrics Q1 2022 • Reflects first full quarter of Meridian acquisition • 3.3% annualized net loan growth, GAAP Net Income (in millions) $ 53.1 excluding PPP runoff GAAP Diluted Earnings Per Share $ 1.12 • Modest cash deployment into the Return on Avera
Slide 5: Loan Portfolio
Loan Portfolio $13,587 $191 $4 $13,580 $517 $ in millions $13,000 $(602) $(117) Balance Amortization/Attrition PPP Loan New Funding Line Utilization Other Balance 12/31/2021 Paydowns Change 3/31/2022 Period Ended $ Increase % Increase Loan Category 3/31/2022 12/31/2021 (Decrease) (Decrease) ($ in mi
Slide 6: Loan Highlights
Loan Highlights Commercial Loans (1) ($ in millions) Residential & Home Equity Closings ($ in millions) Q1 2022 commitments closed $392 Residential real estate $218 Approved pipeline $307 (1) Amounts shown above exclude small business category Home equity 93 Total $311 PPP Loan Summary ($ in million
Slide 7: Deposit Balances
Deposit Balances Period Ended $ Increase % Increase Deposit Product Type 3/31/2022 12/31/2021 (Decrease) (Decrease) ($ in millions) Noninterest-bearing demand deposits $ 5,537 $ 5,480 $ 57 1.0 % Savings and interest checking accounts 6,248 6,350 (102) (1.6)% Money market deposits 3,580 3,556 24 0.7
Slide 8: Net Interest Margin Analysis
Net Interest Margin Analysis Q1 2022 Q4 2021 Margin Margin Volume Interest Volume Interest Impact Impact ($ in millions) Reported Total $ 18,189.6 $ 138.4 3.09 % $ 16,004.2 $ 123.6 3.05 % Core adjustments: PPP volume @1% (148.4) (0.4) (315.4) (0.8) PPP fee amort (3.4) (7.5) Total PPP impact (148.4)
Slide 9: Asset Quality
Asset Quality Nonperforming Loans Net Charge-offs/(Recoveries) ($ in millions) ($ in millions) 0.80% $56.6 $60 $10 0.20% $47.8 $45.8 $5 0.10% 0.40% 0.53% 0.52% $27.8 $30 0.42% 0.01% 0.01% 0.00% $0 0.00% 0.20% $0.2 $0.1 $0.4 $(2.4) 0.00% $0 Q2 2021 Q3 2021 Q4 2021 Q1 2022 $(5) (0.09)% (0.10)% NPLs ($
Slide 10: Noninterest Income
Noninterest Income Three Months Ended Investment management: Focal Point March 31 December 31 Assets Under Administration Noninterst Income 2022 2021 ($ in thousands) $5,726 $5,725 $5,750 $ in millions Deposit account fees $5,493 $5,041 Interchange and ATM $5,500 fees 3,609 3,758 Investment $5,407 $
Slide 11: Noninterest Expense
Noninterest Expense Three Months Ended Efficiency Ratio - GAAP Basis March 31 December 31 80.00% 77.20% Noninterest Expenses 2022 2021 ($ in thousands) 70.00% Salaries and employee 61.95% benefits $48,711 $47,827 60.00% 62.14% Occupancy and equipment 58.34% expenses 13,302 9,722 50.00% Data processi
Slide 12: Full Year 2022 Guidance
Full Year 2022 Guidance Note: items denoted in bold below represent updates from prior guidance • Flat total loan balances over first half of 2022 due to PPP reductions Loan Growth and attrition of Meridian balances; • Modest net growth anticipated for late 2022 and early 2023 • Core household growt
Slide 13: Appendix A: Non-GAAP Reconciliation of Earnings Metrics
Appendix A: Non-GAAP Reconciliation of Earnings Metrics 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 will as the average tangible common equity used to calculate return
Slide 14: Appendix B: Non-GAAP Reconciliation of Earnings Metrics
Appendix B: Non-GAAP Reconciliation of Earnings Metrics The following table summarizes the impact of noncore items on the Company's calculation of noninterest income and noninterest expense, as well as the impact of noncore items on interest income as a percentage to total revenue and the efficiency