Independent Bank Corp. · NASDAQ:INDB
Independent Bank — KBW Winter Financial Services Symposium 2020
22 slides from Independent Bank's conference presentation, Feb 13, 2020
Slide 1: KBW Winter Financial Services Symposium
Exhibit 99.1 Fe o m om iz ie) tm Z = Keefe, Bruyette and Woods, Inc. Winter Financial Services Symposium February 13, 2020 Robert Cozzone - Executive Vice President and Chief Operating Officer Mark Ruggiero - Chief Financial Officer and Chief Accounting Officer
Slide 2: Who We Are
Who We Are ¢ Main Sub: Rockland Trust ° Market: Eastern Massachusetts * Loans: $8.9B * Deposits: $9.1B ° AUA: $4.6B ° Market Cap: $2.6B ¢ Nasdaq: INDB Zz e) mm a) ez Zz ie) Mies Z a |
Slide 3: Key Messages
Key Messages ¢ Extensive history of strong financial performance Zz ie) rez ae ier Z e) mH Zi Jie | ¢ Healthy loan and core deposit originations * Growing Investment Management business ¢ Expanding footprint in growth markets * Proven integrator of acquired banks * Increased size providing scale adv
Slide 4: Recent Accomplishments
Recent Accomplishments * Seven consecutive years of record operating earnings** Zz ie) m an) m rye oO m Z asl ¢ Fully integrated Blue Hills Bancorp acquisition ¢ Increased presence in Worcester County * Capitalizing on expansion moves in vibrant Greater Boston market ¢ Assets Under Administration ro
Slide 5: Expanding Company Footprint
Expanding Company Footprint 2 | m Zi io) m 0 Z, ve 1 24.1% 33% Norfolk County / e Rank 2019 ele ohare seapaataald alld 3 6.1% 19% ~~ Bank of Cape Cod (2016) ‘Barns Teste te eae | + Edgartown National Bank (2017) ; County ‘(Cape Cod) = Miford Nationa! Bank (2018) 2019 © - Give Hits Bank (2019) 4 10.9
Slide 6: Strong Fundamentals Driving Performance
Strong Fundamentals Driving Performance Operating ROA: 1.7% (FY'19)** Operating ROE: 12.1% (FY'19)** Robust loan/deposit originations Strong core deposit base Low funding costs Powerful mortgage platform Asset management growth Low credit loss rates Strong operating efficiency Accretive acquisitions
Slide 7: Vibrant Commercial Lending Franchise
Vibrant Commercial Lending Franchise Total Loans $8.9B * 2019 Originations*: $1.5B Avg. Yield: 4.69% Zi ie} tri x) ex! Z iS) ey 4Q 2019 z * Long-term CRE/C&I lender ° Strong name recognition in local markets * Increased small business focus ° Opened LPO in Worcester ° Added senior leaders from compe
Slide 8: Commercial Diversification
Commercial Diversification Z ; m Total Commercial Real Estate Portfolio pore CST Loan Vortpolie ~~ $4.5B as of 12/31/2019 Oke ieee gy ‘Accommodation and food services: 6 3.3% ‘All Other 14.5% ‘Administrative Support/Waste ae 5 Residential - Related Mgmt/Remediation Servis: aK ie: 5 Sip Malls 728 ~ 2
Slide 9: Low Cost Deposit Base
Low Cost Deposit Base Total Deposits $9.1B ¢ Sizable demand deposit component 4Q 2019 * <1% of HH's are CD only Z o ez = zz zZ 1o) mm Z oot ¢ Valuable source of liquidity ¢ Relationship-based approach ° Expanded digital access ¢ Growing commercial base Core Deposits Cost of Deposits $ Bil. \ ) 0.50%
Slide 10: Investment Management: Transformed Into High Growth Business
Investment Management: Zz Transformed Into High Growth Business = ‘Le Bil) 5 Z — * Successful business model ° Growing source of fee revenues ° Strong feeder business from Bank 2016 2017 2018 2019 ° Expanding investment center locations ¢ Adding experienced professionals Revenues (S Mil.) * Capitali
Slide 11: Asset Quality: Well Managed
Asset Quality: Well Managed NPLs heal y tania * Disciplined underwriter ‘Small Business 0.7% | | ° Low loss rates Home Equity 14.3% NY ¢ High average FICOs and low Z S) a ce Z c) tm Z = average LTVs in consumer book Residential 29.1% NPLs Net Charge-offs (SMil.) (SMil.) $57.4 $60.0 $49.6 $480 [ 1.00
Slide 12: Strong Capital Position
Strong Capital Position Cash Dividends Declared Per Share SZ.08! $1.76 $1.52 $1.50 $1.16 $138 $1.00 $0.50 $0.00 2016 2017 2018 2019 Book Value $49.69 14.99% 12.1 10.69 2016 2017 2018 2019 ME Book Value Per Share —-Equity/Assets % —a— Tier | Leverage * See appendix A for reconciliation ¢ Strong inter
Slide 13: 2020 Headwinds
2020 Headwinds Z Headwinds Line of Defense se * Opportunities to lower cost of ee ¢ Margin pressure funds 0 + Hedge Strategy 3 — * Impact of refinancing & * Robust originations volumes and paydowns on loan growth pipelines * Strong core fee sources, e.g., ¢ Incurring of Durbin amendment investment m
Slide 14: Blue Hills Bancorp Acquisition - April 1, 2019
Blue Hills Bancorp Acquisition - April 1, 2019 * Combines two profitable, growing banks * Expands presence in attractive Greater Boston and Nantucket markets * Provides #1 deposit share in MA of any bank HQ‘d in the state * Accretive to both earnings and TBV per share Z i) m =~] m Za o mi Zz = * Ful
Slide 15: Building Franchise Value
Building Franchise Value Z gz Disciplined Acquisitions Sm 4 ae Ae) te} ez a ZL i Slade’s Ferry Benjamin Mayflower Peoples Federal Bancorp Franklin Bancorp Bancorp Bancshares Mar '08 Apr '09 Nov '13 Feb '15 $243mm As S $640 mm Assets $219mm Deposits im Deposits $994mm Assets $701mm De $630mm Assets $
Slide 16: Major Opportunities in Acquired Bank Markets
Major Opportunities in Acquired Bank Markets: Capitalizing on Rockland Trust Brand Investment Management Commercial Banking * Sophisticated products ° Expanded capacity + In-depth market knowledge * $4.6 billion AUA * Wealth/Institutional * Strong referral 4 network Acquired Bank Customer Bases Reta
Slide 17: Sustaining Business Momentum
Sustaining Business Momentum Business Line Focal Points Zi o mH a mn Zz 0 m Zz = Expand Market Presence/Recruit Seasoned Lenders Grow Client Base Expand Specialty Products, e.g. ABL Increased Lending Capacity Continue to Drive Household Growth Expand Digital Offerings Optimize Branch Network Capital
Slide 18: Optimizing Retail Delivery Network
Optimizing Retail Delivery Network Recent optimization decisions include: ¢ Shifting branch distribution ° Close/consolidate 4 Z cS) m™ ac) m Z S) lev! Z 3 ° Open 1 ° Added 11: Blue Hills Acquisition (April 2019) ° Added 2 Drive Up ATMs and 2 walk-up ATMs ¢ Expanded use of cash recyclers for more ef
Slide 19: INDB Investments Merits
INDB Investments Merits ¢ High quality franchise in attractive markets 2, o eri s om Zz g mH Zi — * Consistent, strong financial performance * Strong organic business volumes * Growing brand recognition. ° Leverageable operating platform ¢ Capitalizing on in-market consolidation opportunities * Dili
Slide 20: Appendix A
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 measur
Slide 21: Appendix B
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: open ning 2016 2017 2018 2019 (@ollars in thousands, except per share data) ‘Net
Slide 22: isa
Z i) isa de:) mH Z ao) m 4 = 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 uncertain
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