Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Sandler O'Neill + Partners 2011 East Coast Financial Services Conference
28 slides from Independent Bank's conference presentation, Nov 10, 2011
Slide 1: Sandler O'Neill 2011 East Coast Financial Services Conference
Sandler O'Neill + Partners, L.P. 2011 East Coast Financial Services Conference November 10, 2011 Christopher Oddleifson President & Chief Executive Officer Denis K. Sheahan Chief Financial Officer
Slide 2: Who We Are
2 Main Sub: Rockland Trust Market: Eastern Massachusetts Loans: $3.7 B Deposits: $3.8 B $AUM: $1.6 B Equity: $0.5 B NASDAQ: INDB Who We Are
Slide 3: Key Messages
3 Business lines generating robust volumes Solid, high-quality earnings performances Steadily expanding customer base Investing in high priority businesses Innovative new product offerings Disciplined risk management culture Strong tangible and regulatory capital Key Messages
Slide 4: Company Footprint
4 Company Footprint 67 Branches 4 Mortgage Banking Centers 10 Commercial Banking Centers 4 Investment Management Centers Boston Source: SNL Financial; Deposit/Market Share data as of June 30, 2011 including pending transactions. (Includes Credit Unions)
Slide 5: 2011 Accomplishments
5 Operating E.P.S. up 17% in 2011 Excellent commercial loan and core deposit growth Expanded commercial loan/wealth management services Launched Freeness customer acquisition campaign Introduced innovative mobile banking products Fitch upgrade of long-term issuer rating National 2010 Small 1st Mort.
Slide 6: Financial Results: Fundamentals in Excellent Shape
6 Financial Results Fundamentals in Excellent Shape (CHART) Robust C&I loan growth Core dep. up to 83% Solid net int. margin ROA of 1.0% in 3Q11 Growing wealth mgmt. Stable asset quality Strong capital Diluted EPS. $1.35 $1.58 +19%
Slide 7: Robust Core Business Generation
7 Robust Core Business Generation ($ Millions) (CHART) (CHART) +28% CAGR +22% CAGR
Slide 8: Strong Commercial and Industrial Loan Growth
8 Strong Commercial and Industrial Loan Growth ($ Bal.-mil.) (CHART) Adding High Quality Corporate Customers
Slide 9: Commercial Banking Growth Initiatives
Hired experienced team of asset-based lenders Opened new commercial office in Providence Includes wealth mgmt. services Added senior C&I lender in Boston market Expanded retirement plan service outreach to small businesses Commercial Banking Growth Initiatives 9
Slide 10: Attractive Earning Asset Mix
10 Attractive Earning Asset Mix Attractive Earning Asset Mix (CHART) Shift Towards Higher Yielding Assets
Slide 11: Improved Funding Mix
11 Improved Funding Mix Lower Cost Deposits Lower Cost Deposits Lower Cost Deposits Core Deposits: 83% Very Focused On Containing Deposit Costs
Slide 12: Solid Net Interest Margin
Solid Net Interest Margin Holding Up Despite Difficult Conditions Holding Up Despite Difficult Conditions Holding Up Despite Difficult Conditions 12
Slide 13: Disciplined Credit Culture
Longstanding underwriting conservatism Loan portfolio based within footprint In-depth knowledge of local markets No wholesale originations of any loan type Workout team in place for 19 years Expedited problem loan resolution Disciplined Credit Culture 13
Slide 14: Asset Quality - No Drama
Asset Quality - No Drama Asset Quality - No Drama (CHART) NPL/Loan % 1.02% 1.07% 0.65% 0.72% Loss Rate 25bp 38bp 43bp 24bp 14
Slide 15: Strong Loan Loss Reserves
Strong Loan Loss Reserves Strong Loan Loss Reserves Reserves a Healthy Multiple of Loss Rate Reflects Ben Franklin loans acquired at FV 15
Slide 16: Strong Capital
Strong Capital (CHART) (CHART) (1)Includes tax deductibility of certain goodwill All capital growth internally generated No external capital raising No dividend cuts 16
Slide 17: Attentive to Shareholder Returns
Attentive to Shareholder Returns 17
Slide 18: Investment Management - High Priority Growth Business
Transformed business in 2004 - tripled in size since Diversified - wealth and institutional segments Strong feeder business from bank Proprietary and 3rd party fund offerings Strong intermediary network Expanding outreach and talent Investment Management - High Priority Growth Business 18
Slide 19: Investment Management - High Priority Growth Business
Investment Management - High Priority Growth Business Growing source of fee revenues Natural fit with client base Expanded investment offerings Professionally managed 19
Slide 20: Sustaining Business Momentum
Sustaining Business Momentum Business Line Focal Points Grow C&I Client Base Continue to Take Advantage of Competitive Disruption Expand Specialty Products Commercial Expand Alternative Channels Optimize Branch Network Product Structure & Pricing Retail Delivery Capture Market Share Opportunity Targ
Slide 21: Product Innovation - Mobile Banking with MDeposit
This service allows customers to deposit checks using their Smart phones Expanded availability - iPhone, Android, Blackberry platforms Product Innovation - Mobile Banking with MDeposit Mobile Deposit 21
Slide 22: Building Franchise Value
Building Franchise Value BANK NON- BANK All Acquisitions Immediately Accretive Disciplined Acquisitions Deal Value: $40MM 12% Dep. Premium Fleet Divest. Aug '00 $336mm Deposits $135mm Loans 16 Branches Deal Value: $37MM 11% Dep. Premium Falmouth Bancorp Jul '04 $158mm Assets $137mm Deposits 4 Branch
Slide 23: 2011 Outlook - Key Expectations
2011 Outlook - Key Expectations 23
Slide 24: INDB - Investment Merits
High quality franchise in attractive markets Strong on-the-ground business volumes Operating platform that can be leveraged further Investing for growth in competitive strengths Balance sheet equipped to deal with uncertainty Grounded management team Aligned with shareholders - insider ownership 7%
Slide 25: Contact and Forward-Looking Statements
NASDAQ Ticker: INDB www.rocklandtrust.com Denis Sheahan - CFO Shareholder Relations: Jennifer Kingston (781) 878-6100 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
Slide 26: Appendix
INDEPENDENT Parent of Rockland Trust Appendix
Slide 27: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio Well Diversified Well Diversified Well Diversified Avg Loan Size: $636 thou Largest CRE Credit: $11 mil Non-Performing Loans/Loans: 0.56% Owner Occupied: 23% 27
Slide 28: Commercial & Industrial Portfolio Diversification
Commercial & Industrial Portfolio Diversification Diversification Diversification 28
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