Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Sandler O'Neill East Coast Financial Services Conference 2017
23 slides from Independent Bank's conference presentation, Nov 16, 2017
Slide 1: Sandler O'Neill East Coast Financial Services Conference
Sandler O'Neill East Coast Financial Services Conference November 16, 2017 Robert Cozzone – Chief Financial Officer Exhibit 99.1
Slide 2: Who We Are
(2) Who We Are •Main Sub: Rockland Trust • Market: Eastern Massachusetts • Loans: $6.3B • Deposits: $6.7B • $AUA: $3.3B • 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 • Four consecutive years of record operating earnings** • Finalized acquisition of New England Bancorp, Inc. of Cape Cod and Island Bancorp, Inc. of Martha's Vineyard • Capitalizing on expansion moves in vibrant Greater Boston market • Growth initiatives – new commercial p
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* • Solid returns • Accretive acquisitions * See appendix A for reconciliation **See appendix B for reconciliation +13
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 • Experienced, knowledgeable lenders • Growing in sophistication and capacity • Commercial banker development program • Discipli
Slide 8: Commercial Diversification
(8) Commercial Diversification $3.5B as of 9/30/17 $859M as of 9/30/17 *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 3Q 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 +83% +154%
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 $1.04 $1.16
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 2 • Opened 1 • Relocated 1 • Redesigned 4 • Added 3 off-site ATMs • Introduced SecurLOCK feature that provides the c
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 • $3.3 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 • 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 m
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 & 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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