Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Piper Jaffray Financial Institutions Conference 2017
25 slides from Independent Bank's conference presentation, May 16, 2017
Slide 1: Piper Jaffray Financial Institutions Conference
Piper Jaffray Financial Institutions Conference May 16, 2017 Robert Cozzone – Chief Financial Officer and Treasurer Exhibit 99.1
Slide 2: Who We Are
(2) Who We Are • Main Sub: Rockland Trust • Market: Eastern Massachusetts • Loans: $6.1 B • Deposits: $6.5 B • $AUA: $3.0 B • Market Cap: $1.7 B • 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 Rank 2016 1 23.5% 39% Rank 2016 5 4.9% 18% Rank 2016 3 12.3% 14% Rank 2016 6 7.9% 12% Rank 2016 19 1.2% 10% Rank 2016 17 0.3% 4% Rank 2016 2 19.7% 2% Rank 2016 31 0.3% 1% Suffolk County Bristol County Worcester County Dukes County (MV) Middlesex County Norfolk County
Slide 5: Recent Accomplishments
(5) Recent Accomplishments • Four consecutive years of record earnings • Finalized acquisition of Island Bancorp, Inc. of Martha’s Vineyard • Finalized acquisition of New England Bancorp, Inc. of Cape Cod • Capitalizing on expansion moves in vibrant Greater Boston market • Growth initiatives – new c
Slide 6: Strong Fundamentals Driving Performance
(6) $59.9 $71.7 $80.4 $21.1 2014 2015 2016 1Q17 Operating Earnings ($ Mil.)** Strong Fundamentals Driving Performance +16% CAGR Diluted EPS $2.49 $2.50 $2.90 $0.76 • Robust customer activity • Core deposits up to 90% • Fee revenues rising • Low funding costs • Low credit loss rates • TBV steadily gr
Slide 7: Vibrant Commercial Lending Franchise
(7) Vibrant Commercial Lending Franchise TOTAL LOANS $6.1 B AVG. YIELD: 3.99% 1Q 2017 Comm'l 72% Resi Mtg 11% Home Eq 17% • Long-term CRE/ C&I lender • Increased small business focus • Strong name recognition in local markets • Expanded market presence • Experienced, knowledgeable lenders • Growing
Slide 8: Commercial Real Estate Diversification
(8) Commercial Real Estate Diversification *Includes 1-4 Family, Multifamily, Condos and Approved Land Residential-Related* 30.6% Commercial Buildings 18.9% Office Buildings 11.4% Industrial / Warehouse 8.6% Hotels / Motels 8.6% Strip Malls 3.9% All Other 18.0% Total Commercial Real Estate Portfolio
Slide 9: C&I Diversification
(9) C&I Diversification Real Estate and Rental and Leasing 16.6% Retail Trade 21.3%Construction 10.1% Wholesale Trade 12.4% Manufacturing 9.6% Finance and Insurance 7.9% Health Care and Social Assistance 5.3% All Other (12 Sectors) 16.8% C&I Loan Portfolio Composition Balance $881.3M as of 3/31/17
Slide 10: Low Cost Deposit Base
(10) Low Cost Deposit Base Demand Deposits 32% Money Market 20% Savings/Now 38% CDs 10% TOTAL DEPOSITS $6.5 B AVG. COST: 0.18% 1Q 2017 • Sizable demand deposit component • Valuable source of liquidity • Relationship-based approach • Excellent household growth • Expanded digital access • Growing comm
Slide 11: Investment Management: Transformed Into High Growth Business
(11) 816 1,651 2,919 3,040 2006 2011 2016 1Q17 AUAs ($ Mil.) Investment Management : Transformed Into High Growth Business +273% +257% • Successful business model • Growing source of fee revenues • Strong feeder business from Bank • Expanding investment center locations • Cross-sell opportunity in a
Slide 12: Well-Positioned for Rising Rates: Prudent Balance Sheet Management
(12) Well-Positioned for Rising Rates: Prudent Balance Sheet Management -15% -10% -5% 0% 5% 10% 15% 20% 25% Year 0 Year 1 Year 2 % In cr ease o n N et In te re st In co m e Interest Rate Sensitivity Down 100 Up 200 Up 400 Flat Up 200
Slide 13: Asset Quality: Well Managed
(13) Asset Quality: Well Managed $27.5 $27.7 $57.4 $55.1 2014 2015 2016 1Q17 NPLs ($ Mil.) NPL/Loan % 0.55% 0.50% 0.96% 0.91% Peers 0.64%* * Source: FFIEC Peer Group 2; $3-10 Billion in Assets, December 31, 2016 Incl. 90 days + overdue $8.5 $0.8 $0.3 ($0.2) 2014 2015 2016 1Q17 Net Chargeoffs ($ Mil.
Slide 14: Strong Capital Position
(14) Strong Capital Position (period end) $19.18 $21.29 $23.45 $23.92 2014 2015 2016 1Q17 Tangible Book Value* +25% * See appendix A for reconciliation $26.69 $29.40 $32.02 $32.44 2014 2015 2016 1Q17 Book Value Per Share +22% • Strong internal capital generation • No storehousing of excess capital •
Slide 15: Attentive to Shareholder Returns
(15) Attentive to Shareholder Returns $0.96 $1.04 $1.16 $0.32 2014 2015 2016 1Q17 Cash Dividends Declared Per Share
Slide 16: Sustaining Business Momentum
(16) Sustaining Business Momentum Business Line • Expand Market Presence/Recruit Seasoned Lenders • Grow Client Base • Expand Specialty Products, e.g. ABL, Leasing • Lender Development Programs Commercial • Continue to Drive Household Growth • Expand Digital Offerings • Optimize Branch Network Retai
Slide 17: Expanded Presence in Vibrant Greater Boston
(17) Expanded Presence in Vibrant Greater Boston Long-Term Commercial Lender in 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
Slide 18: Island Bancorp Acquisition
(18) 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 19: Building Franchise Value: Disciplined Acquisitions
(19) 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 20: Major Opportunities in Acquired Bank Markets
(20) Major Opportunities in Acquired Bank Markets: Capitalizing on Rockland Trust Brand Investment Management Commercial Banking Retail/ Consumer • $3.0 billion AUA • Wealth/Institutional • Strong referral network • Sophisticated products • Expanded capacity • In depth market knowledge • Award winni
Slide 21: Optimizing Retail Delivery Network
(21) 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 • Redesigned 4 • Transitioned to instant-issue debit cards • Introduced SecurLOCK feature , allowing cu
Slide 22: INDB Investment Merits
(22) INDB Investment Merits • High quality franchise in attractive markets • Strong organic business volumes • Growing brand recognition • Operating platform that can be leveraged further • Capitalizing on in-market consolidation opportunities • Diligent stewards of shareholder capital • Grounded ma
Slide 23: Appendix A
Appendix A ‘The following ‘Value per share, Tangible Book Value per share, whichis a ‘based measure. vhich based measure, to Tangible ena to Tangible Assets, a non-GAAP measure, for the dates indicated: 2014 2015 2016 1Q17 (Colla excep sansa pr shar dat) ‘Tangible common equity Stockholders’ equity
Slide 24: Appendix B
Appendix B Z ie) m a m Z 9 m Z =| ‘operating basis, 2014 2015 QU 2017, (Dollars in thousands, maapioe per = data) Prbiorrnirry eae $ 59845 $ 249 $ 64,960 $ 25 $ 76648 $ 290 $ 20,725 $ 0.76 Non-GAAP adjustments Noninterest income components co eo eH ae ae on as Gain on life insrance benefits (x se) o
Slide 25: NASDAQ Ticker: INDB
(25) NASDAQ Ticker: INDB www.rocklandtrust.com Robert Cozzone – CFO & Treasurer 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 could cause actual results
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