Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Q3 2023 Earnings Presentation
16 slides from Independent Bank's earnings presentation, Oct 20, 2023
Slide 1: Independent Bank Corp. Q3 2023 Earnings Presentation
Exhibit 99.2 Independent Bank Corp. (INDB) (parent of Rockland Trust Company) Q3 2023 Earnings Presentation October 20, 2023
Slide 2: Company Overview
Company Overview Strong, Resilient Franchise; Well Positioned for Growth • Strong, liquid balance sheet • Significant capital buffer Safe & Sound • • Diversified, low-cost deposit base Experienced commercial lender with conservative credit culture • Proven operator and acquiror • Full suite of retai
Slide 3: Q3 2023 Financial Highlights
Q3 2023 Financial Highlights Key Metrics Highlights $ 60.8M • Disciplined loan growth Net Income • Seasonal deposit declines; stable product mix $ 1.38 • Core NIM at 3.47%, down 5 basis points Diluted EPS • Solid fee income growth 1.25% • Nonperforming asset decrease; stable asset quality ROAA • Pru
Slide 4: Deposit Balances
Deposit Balances ($ in millions) Period Ended $ Increase % Increase Deposit Product Type 9/30/2023 6/30/2023 (Decrease) (Decrease) Noninterest-bearing demand deposits $ 4,796 $ 4,861 $ (65) (1.3)% • Municipal - $240M decrease; Savings and interest checking deposits 5,398 5,525 (127) (2.3)% seasonali
Slide 5: Liquidity
Liquidity Additional Borrowing Capacity ($ in millions) Period Ended Off Balance Sheet Liquidity 9/30/2023 6/30/2023 Federal Home Loan Bank ("FHLB") $ 1,789 $ 1,811 Federal Reserve 3,074 2,993 Unpledged securites 1,188 1,156 Lines of credit 85 85 Total borrowing capacity $ 6,136 $ 6,045 Estimated un
Slide 6: Securities Portfolio
Securities Portfolio Available for Sale (AFS) Held to Maturity (HTM) Unrealized Unrealized Portfolio Composition at September 30, 2023 Book Value Fair Value Gain/(Loss) Book Value Fair Value Gain/(Loss) ($ in millions) U.S. government agency securities $ 231 $ 200 $ (31) $ 30 $ 28 $ (2) U.S. treasur
Slide 7: Loan Balances
Loan Balances ($ in millions) Period Ended $ Increase % Increase Loan Category 9/30/2023 6/30/2023 (Decrease) (Decrease) Commercial and industrial $ 1,653 $ 1,723 $ (70) (4.1)% Commercial real estate 7,896 7,813 83 1.1 % Commercial construction 965 1,023 (58) (5.7)% Small business 245 237 8 3.4 % To
Slide 8: Loan Portfolios
Loan Portfolios CRE & Construction Portfolio C&I Portfolio $8.9 billion $1.7 billion All Other (11 Healthcare - 2.7% All Other - 6.5% Sectors) - 21.0% Retail Trade - 22.4% Hotels/Motels - 8.1% Residential - Professional, Related - 34.7% Scientific, and Industrial Technical Warehouse - Services - 5.1
Slide 9: Focal Point: Non-Owner Occupied CRE Office
Focal Point: Non-Owner Occupied CRE Office (inclusive of construction) CRE Office - Total Portfolio September 30, Key Portfolio Characteristics June 30, 2023 ($ in millions) 2023 • 33% is set to mature or reprice in the next 2 years CRE - Mixed use, primarily office* $ 269 $ 269 ◦ Current Wtd Avg Ra
Slide 10: Asset Quality
Asset Quality Nonperforming Loans Net Charge-offs/(Recoveries) ($ in millions) ($ in millions) $54.9 $56.2 $60 $30 0.70% 0.67% $45.7 0.60% 0.40% $39.2 $23.5 0.50% 0.40% $20 0.39% 0.40% $30 0.30% 0.30% 0.28% $10 0.16% 0.32% 0.20% $0 $0.4 $0.5 0.10% $5.6 Q4 2022 Q1 2023 Q2 2023 Q3 2023 $0 0.01% 0.02%
Slide 11: Net Interest Margin Analysis
Net Interest Margin Analysis Net Interest Margin 12 Month Margin Outlook* 4.00% Positives 3.85% • Loan maturities/repricing - proceeds redeployed into higher 3.79% rate environment 3.80% • Securities maturities - proceeds redeployed into higher rate 3.82% 3.78% assets or borrowings paydowns • Fixed
Slide 12: Noninterest Income
Noninterest Income Investment management: Focal Point ($ in thousands) Three Months Ended September 30 June 30 Assets Under Administration Noninterest Income 2023 2023 $6,304 $6,145 $6,120 Deposit account fees $ 5,936 $ 5,508 $6,000 $5,793 $ in millions Interchange and ATM fees 4,808 4,478 Investmen
Slide 13: Noninterest Expense
Noninterest Expense ($ in thousands) Three Months Ended September 30 June 30 Noninterest Expense 2023 2023 Salaries and employee Efficiency Ratio - GAAP Basis benefits $ 54,797 $ 53,975 70.00% Occupancy and equipment expenses 12,321 12,385 60.00% 52.69% 53.31% Data processing and 50.00% facilities m
Slide 14: 2023 Forward Guidance
2023 Forward Guidance Loans • Overall loan balances expected to increase modestly in 2023 Q4 Deposits • Deposit balances expected to remain flat or decrease slightly due to seasonality • Balances expected to fluctuate based on loan, deposit and Borrowings securities cash flows Net Interest Margin •
Slide 15: 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 16: 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 may include operating net income and operating earnings per share ("EPS