Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Investor Presentation (November 2022)
22 slides from Independent Bank's investor presentation, Nov 28, 2022
Slide 1: Independent Bank Corp. - Investor Meetings
Independent Bank Corp. - Investor Meetings November 28, 2022 Christopher Oddleifson - Chief Executive Officer Rob Cozzone - EVP and Chief Operating Officer Mark Ruggiero - Chief Financial Officer and Chief Accounting Officer
Slide 2: Who We Are
(2) Who We Are • Independent Bank Corp. (Nasdaq: INDB) ◦ Main Banking Sub: Rockland Trust ◦ Massachusetts based; New England focused (As of September 30, 2022) (Dollars in billions) Total assets $19.7 Loans $13.7 Deposits $16.3 Wealth management $5.1 Market Cap (as of November 4, 2022) $4.0
Slide 3: Key Messages - Core Franchise
(3) Key Messages - Core Franchise • Extensive history of strong financial performance • Expanding footprint in growth markets • Healthy loan and core deposit originations • Diversified fee income business lines • Well-positioned for rising rate environment • Demonstrated resiliency in prior crises •
Slide 4: Recent Accomplishments
(4) Recent Accomplishments • YTD 2022 operating EPS up 11% • November 2021 Acquisition of Meridian Bancorp, Inc. and East Boston Savings Bank (EBSB) (assets $6.4B) • Strong margin expansion in 2022 • Robust new business generation • Record growth in business and consumer households • Strong net infl
Slide 5: Acquisition Strategy: Driving Long Term Growth & Shareholder Value
(5) Acquisition Strategy: Driving Long Term Growth & Shareholder Value Proven Record of Value Add Transactions
Slide 6: Expanding Company Footprint
(6) Source: SNL Financial; Deposit/Market Share data as of June 30, 2022 Expanding Company Footprint INDB Market Share* % of INDB Dep. Plymouth County Rank 2022 1 26.2% 29% Norfolk County Rank 2022 3 6.3% 14% Barnstable County (Cape Cod) Rank 2022 3 12.2% 8% Bristol County Rank 2022 5 8.9% 9% Middle
Slide 7: Sustaining Business Momentum
(7) Sustaining Business Momentum Business Line • Extend Market Presence/Recruit Seasoned Lenders • Grow Client Base / Expanded Lending Capacity • Expand Specialty Products, e.g. ABL, Floorplan • Optimize Loan Origination Process • Continue to Drive Household Growth • Expand Digital Offerings • Exped
Slide 8: Financial Performance - Strong Fundamentals
(8) Financial Performance - Strong Fundamentals **See appendix B for reconciliation Longer Term Trends • Robust loan/deposit originations • Strong core deposit base • Low funding costs • Asset management growth • Powerful mortgage platform • Low credit loss rates • Strong operating efficiency • Accr
Slide 9: Strong Business Volumes Despite Pandemic
(9) Strong Business Volumes Despite Pandemic *Origination amounts presented above do not include loans associated with the Paycheck Protection Program (PPP). Through December 31, 2021 the Company extended approximately 10,000 loans totaling $1.2 billion.
Slide 10: Loan Portfolio/Asset Sensitivity
(10) Loan Portfolio/Asset Sensitivity Balance sheet position to benefit from rising rate environment *See appendix C for reconciliation $13.7B as of 9/30/22 Asset Sensitivity: Balances Subject to Reprice Interest earning cash 100% Loans 30-35% Less: Loan hedges (10-11%) Strong core deposit funding s
Slide 11: Loan Portfolio - Commercial Diversification
(11) Loan Portfolio - Commercial Diversification $8.9B as of 9/30/22 $1.5B as of 9/30/22 *Includes 1-4 Family, multifamily, Condos and Approved Land Note - Percentage based on Rockland Trust bank capital **Non-Owner Occupied Commercial Real Estate divided by Total Capital ***2021 growth reflects acq
Slide 12: Low Cost Deposit Base
(12) Low Cost Deposit Base Total Deposits $16.3B as of 9/30/22 • Sizable demand deposit component • Robust new checking account openings • <1% of HH's are CD only • Valuable source of liquidity • Relationship-based approach • Expanded digital access • Growing commercial base
Slide 13: Investment Management: Transformed Into High Growth Business
(13) Investment Management: Transformed Into High Growth Business Longer Term Trends • Successful business model • Growing source of fee revenues • Strong feeder business from Bank • Expanding investment center locations • Adding experienced professionals • Capitalizing on cross-sell opportunity in
Slide 14: Asset Quality
(14) • Disciplined underwriter • Low loss rates • High average FICOs and low average LTVs in consumer book • Proactive identification and resolution of problem loans Asset Quality
Slide 15: Asset Quality: A Look Back
(15) Asset Quality: A Look Back • Strong credit results through prior financial crisis • Experienced management and loan workout team • Consistent and conservative credit philosophy
Slide 16: Strong Capital Position
(16) Strong Capital Position * See appendix A for reconciliation • Strong internal capital generation • History of healthy dividend increases • TBV rose for 32 consecutive quarters until very recently despite 6 acquisitions over this period • Completed 1.8 million share repurchase for $140MM during
Slide 17: Near-Term Priorities
(17) Near-Term Priorities • Capitalizing on EBSB revenue opportunities • Liquidity/Capital Management • Taking disciplined approach to economic uncertainty • Balance sheet management - rising rate environment • Extending our presence in attractive Worcester market • Implementing nCino loan originati
Slide 18: INDB Investment Merits
(18) INDB Investment Merits • High quality franchise in attractive markets • Consistent, strong financial performance • Strong organic business volumes • Growing brand recognition • Leverageable operating platform • Capitalizing on in-market consolidation opportunities • Diligent stewards of shareho
Slide 19: Appendix A: Non-GAAP Reconciliation of Capital Metrics
(19) Appendix A: Non-GAAP Reconciliation of Capital Metrics 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 Tan
Slide 20: Appendix B: Non-GAAP Reconciliation of Earnings Metrics
(20) Appendix B: 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 of the time periods indicated: YTD22 2021 2020 2019 (Dollars in
Slide 21: Appendix C: Non-GAAP Reconciliation of Core Net Interest Margin
(21) Appendix C: Non-GAAP Reconciliation of Core Net Interest Margin The following table reconciles net interest margin which is a GAAP measure, to core net interest margin, which is a Non-GAAP measure, for the periods indicated: Three Months Ended September 30, 2022 June 30, 2022 March 31, 2022 Dec
Slide 22: NASDAQ Ticker: INDB
(22) NASDAQ Ticker: INDB www.rocklandtrust.com Mark Ruggiero – CFO & Chief Accounting Officer 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 a
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