Independent Bank Corporation · NASDAQ:IBCP
Independent Bank — Shareholder Meeting (April 2024)
25 slides from Independent Bank's shareholder meeting presentation, Apr 23, 2024
Slide 1: 2024 Annual Shareholder Meeting
April 23, 2024 2024 Annual Shareholder Meeting Independent Bank Corporation
Slide 2: Cautionary note regarding forward-looking statements
2Cautionary note regarding forward-looking statements This presentation contains forward-looking statements, which are any statements or information that are not historical facts. These forward-looking statements include statements about our anticipated future revenue and expenses and our future pla
Slide 3: Today's Agenda
3Today’s Agenda • Welcome and Call to Order – IBC Chairman • Voting upon matters listed in the Company’s 2024 Proxy Statement – IBC Chairman • Business Update - IBC President & CEO • Question and answer session – IBC President & CEO and IBC EVP & CFO • Adjournment
Slide 4: IBC Board of Directors
4IBC Board of Directors • Director Since: 2013 • President & CEO of IBC and Independent Bank • Director Since: 2019 • Founder & CEO of OpTech, LLC and OpTech Solutions • Member of the Audit Committee • Director Since: 2016 • President & CEO of Cascade Engineering • Member of the Compensation Committ
Slide 5: IBC Executive Management Team
5IBC Executive Management Team • CEO of IBC and Independent Bank since 2013 • Joined Independent Bank in 1994 • Began career with Crowe William B. Kessel President, CEO & Director • Joined Independent Bank in 2020 as EVP and Chief Financial Officer • Previously SVP, Chief Financial Officer of STAR F
Slide 6: 2024 Annual Meeting of Shareholders
62024 Annual Meeting of Shareholders • Secretary for the meeting (Gavin A. Mohr) • Record date: February 23, 2024 • Approximate distribution date of Proxy Statement: March 11, 2024 • Shares entitled to vote: 21,082,873 • Determination of quorum • Voting on proposals
Slide 7: Proposal #1 - Election of Directors
7Proposal #1 - Election of Directors Nominees for a three-year term expiring 2027 Christina L. Keller Ronia F. Kruse Michael M. Magee, Jr.
Slide 8: Proposal #2 - Ratification of the Appointment of Independent Auditors
8Proposal #2 - Ratification of the Appointment of Independent Auditors • Crowe, LLP has served as IBC’s independent registered public accounting firm since 2005. • Crowe, LLP was founded in 1942 and is one of the 10 largest accounting and consulting firms in the U.S. • IBC is served primarily by Cro
Slide 9: Proposal #3 - Advisory Vote on Executive Compensation
9Proposal #3 - Advisory (Non-Binding) Vote on Executive Compensation The Board has solicited a non-binding advisory vote from our shareholders to approve the compensation of our executives as described in our proxy materials.
Slide 10: Business Update
10 Brad Kessel President & CEO Business Update
Slide 11: Mission, Vision, Values
Mission VISION Values Working together to make a positive difference Our vision is to guide, to serve and Character, Commitment, Continuous Learning, in the lives of our customers, associates, empower people to improve lives Courage, Excellence, Generosity, Inclusion & shareholders and the communiti
Slide 12: 2023 Full Year Financial Highlights
122023 Full Year Financial Highlights • Net income and diluted earnings per share of $59.1 million and $2.79 • Annualized return on average assets and on average equity of 1.2% and 16.0%, compared to 1.3% and 18.4% respectively in the prior year • Paid cash dividends of $0.92 per share, a 5% increas
Slide 13: Track Record of Consistent Growth & Profitability
13Track Record of Consistent Growth & Profitability BALANCE SHEET 2018 2019 2020 2021 2022 2023 5 Year CAGR Total Assets $3,353 $3,565 $4,204 $4,705 $5,000 $5,264 9.4% Portfolio Loans $2,583 $2,725 $2,734 $2,905 $3,465 $3,791 8.0% Deposits $2,913 $3,037 $3,637 $4,117 $4,379 $4,623 9.7% Tangible Comm
Slide 14: Strong Balance Sheet and Liquidity
14Strong Balance Sheet and Liquidity • Loan growth of $325.5 million, a 9.4% increase from the prior year • Commercial loan growth of $212.9 million (14.5%) • Mortgage loan growth of $117.5 million (8.6%) • Consumer loans decreased $4.8 million (0.8%) • Deposit growth (excluding brokered time deposi
Slide 15: Strong Credit Quality
15Strong Credit Quality Asset Quality: 2018 2019 2020 2021 2022 2023 NPAs / Assets 0.29% 0.32% 0.21% 0.11% 0.08% 0.11% NPAs / Loans + OREO 0.38% 0.42% 0.32% 0.18% 0.12% 0.15% Reserves / Total Loans 0.96% 0.96% 1.30% 1.63% 1.51% 1.44% NCOs / Avg. Loans (0.03%) (0.02%) 0.11% (0.07%) 0.00% 0.01% For th
Slide 16: Strong Capital Position
16Strong Capital Position TCE / TA (%) Leverage Ratio (%) CET1 Ratio (%) Total RBC Ratio (%) Tier 1 Capital Ratio (%) 9.4 9.2 9.0 8.6 7.9 6.4 7.2 0 5 10 15 2017 2018 2019 2020 2021 2022 2023 10.6 10.5 10.1 9.2 8.8 8.9 9.0 0 5 10 15 2017 2018 2019 2020 2021 2022 2023 14.0 13.3 12.7 13.3 12.1 11.4 11.
Slide 17: Recognized for our Efforts
17Recognized for our Efforts Independent Bank Awarded the Spirit of Achievement Award from Junior Achievement! Independent Bank Named One of the Best-in-State Banks By Forbes 2023 Independent Bank Named a Certified Great Place to Work in 2023!
Slide 18: A Look Forward
A Look Forward 18 29 O@ Growth Process Improvement Talent Risk & Cost Controls Management Management Bie Be Independent >”
Slide 19: Independent Bank Corporation Voting Results
19Independent Bank Corporation Voting Results • Shares entitled to vote: 21,082,873 • Proposal #1 – Election of Directors • Proposal #2 – Ratification of Auditors • Proposal #3 – Advisory (Non-Binding) Vote on Executive Compensation 2024 Annual Shareholders Meeting
Slide 20: Thank you for attending!
Thank you for attending! Be Independent
Slide 21: Appendix
21 Appendix
Slide 22: Reconciliation of Non-GAAP Financial Measures
22Reconciliation of Non-GAAP Financial Measures 2023 2022 2021 2020 2019 2018 Net interest income $ 156,329 $ 149,561 $ 129,765 $ 123,612 $ 122,581 $ 113,282 Non-interest income 50,676 61,909 76,643 80,745 47,736 44,815 Non-interest expense 127,119 128,341 131,023 122,413 111,733 107,461 Pre-Tax, Pr
Slide 23: Reconciliation of Non-GAAP Financial Measures
23 Reconciliation of Non-GAAP Financial Measures 2023 2022 2021 2020 2019 2018 Net Interest Margin, Fully Taxable Equivalent ("FTE") Net interest income 156,329$ 149,561$ 129,765$ 123,612$ 122,581$ 113,282$ Add: taxable equivalent adjustment 900 1,878 1,866 823 423 510 Net interest income - taxable
Slide 24: Reconciliation of Non-GAAP Financial Measures: Tangible Common Equity
24Reconciliation of Non-GAAP Financial Measures Tangible Common Equity 2023 2022 2021 # 2020 2019 2018 Common shareholders' equity 404,449$ 347,596$ 398,484$ 389,522$ 350,169$ 338,994$ Less: Goodwill 28,300 28,300 28,300 28,300 28,300 28,300 Other intangibles 2,004 2,551 3,336 4,306 5,326 6,415 Tang
Slide 25: Be Independent
Be Independent”