Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Q2 2024 Earnings Presentation
16 slides from Independent Bank's earnings presentation, Jul 19, 2024
Slide 1: Independent Bank Corp. Q2 2024 Earnings Presentation
Exhibit 99.2 Independent Bank Corp. (INDB) (parent of Rockland Trust Company) Q2 2024 Earnings Presentation July 19, 2024
Slide 2: Company Overview
Company Overview Strong, Resilient Franchise; Well Positioned for Growth • Strong balance sheet • Prudent interest rate and liquidity risk management Safe & Sound • • Significant capital buffer Diversified, low-cost deposit base • Experienced commercial lender with conservative credit culture • Prov
Slide 3: Q2 2024 Financial Highlights
Q2 2024 Financial Highlights Key Metrics Highlights $ 51.3M • Disciplined growth: ◦ Loans - 2.0% annualized Net Income ◦ Deposits - 9.8% annualized $ 1.21 • Net interest margin expansion to 3.25% Diluted EPS • Stable nonperforming asset levels, 1.07% minimal charge-offs ROAA • Strong fee income ◦ We
Slide 4: Deposit Balances
Deposit Balances ($ in millions) Period Ended Deposit Composition June 30, March 31, $ Increase/ % Increase/ Municipal Deposit Product Type 2024 2024 (Decrease) (Decrease) 9.7% Noninterest-bearing demand deposits $ 4,419 $ 4,470 $ (51) (1.1)% Savings and interest checking 5,241 5,196 45 0.9% Money m
Slide 5: Loan Balances
Loan Balances ($ in millions) Period Ended June 30, March 31, $ Increase/ % Increase/ Loan Category 2024 2024 (Decrease) (Decrease) Commercial and industrial $ 1,603 $ 1,580 $ 23 1.5% Commercial real estate* 8,152 8,109 43 0.5% Commercial construction 787 829 (42) (5.1)% Small business 269 262 7 2.7
Slide 6: Asset Quality
Asset Quality Allowance for Credit Loss & Nonperforming Loans Delinquency Trends ($ in millions) 0.50% $80 1.00% 1.03% 1.05% 0.99% $56.9 $57.5 1.00% $54.4 0.40% $39.2 0.52% 0.40% 0.40% $40 0.44% 0.38% 0.50% 0.37% 0.28% 0.22% 0.30% $0 0.00% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2023 Q4 2023 Q1 2024 Q2 2
Slide 7: Loan Portfolios
Loan Portfolios CRE & Construction Portfolio C&I Portfolio $8.9 billion(1) $1.6 billion Other - 6.7% All Other (10 Multi-family - 21.9% Sectors) - 21.5% Healthcare - 2.8% Educational Services - 4.3% Retail Trade - 21.6% Residential Retail - 18.2% related - 13.2% Professional, Scientific, and Lodging
Slide 8: Focal Point: Non-Owner Occupied CRE Office
Focal Point: Non-Owner Occupied CRE Office (inclusive of construction) Total Maturity Schedule CRE & Construction Portfolio $8.9 billion Past Due 2024 2025 2026 2027 2028+ NOO Office 2% 7% 21% 9% 16% 45% ($1.04B) - 11.7% Short Term Maturity Review ($ in millions) 2024 Q3 2024 Q4 2025 Q1 Pass Rating
Slide 9: Focal Point: Multifamily CRE
Focal Point: Multifamily CRE Multifamily Portfolio Period Ended Composition Low Income June 30, 2024 March 31, 2024 Mixed Use, Housing Tax ($ in millions) Primarily Credit - 8.2% Residential - 31.2% Total Balances $ 1,961.9 $ 1,880.4 Residential Apart. - Total Average Loan Size 2.6 2.5 Affordable Ho
Slide 10: Net Interest Margin Analysis
Net Interest Margin Analysis Net Interest Margin Total Loan Portfolio Rate Characteristics 3.60% 3.47% 30% 3.38% Fixed Rate 3.40% Floating Rate 43% Variable Rate 3.23% 3.25% 3.20% Q3 2023 Q4 2023 Q1 2024 Q2 2024 27% Time Deposit Maturities Loan Hedging Maturities (and weighted average rate) (and wei
Slide 11: Noninterest Income/Expense
Noninterest Income/Expense Noninterest Income Noninterest Expense ($ in thousands) Q2 2024 Q1 2024 Q2 2024 Q1 2024 Salaries and employee Deposit account fees $ 6,332 $ 6,228 benefits $ 57,162 $ 57,174 Interchange and ATM Occupancy and fees 4,753 4,452 equipment expenses 12,472 13,467 Investment mana
Slide 12: Focal Point: Investment Management and Advisory
Focal Point: Investment Management and Advisory ($ in thousands) Q2 2024 Q1 2024 % Change Assets under administration $6,870,636 $6,804,032 1.0% Asset based revenue 9,016 8,894 1.4% Other revenue: Retail commission revenue 985 806 Insurance commission revenue 368 55 Other advisory revenue 618 186 To
Slide 13: Securities Portfolio
Securities Portfolio Available for Sale (AFS) Held to Maturity (HTM) Unrealized Unrealized Portfolio Composition at June 30, 2024 Book Value Fair Value Gain/(Loss) Book Value Fair Value Gain/(Loss) ($ in millions) U.S. government agency securities $ 230 $ 207 $ (23) $ 29 $ 28 $ (1) U.S. treasury sec
Slide 14: 2024 Forward Guidance
2024 Forward Guidance • 2024 full year: low single digit percentage increase expected Loans • 2024 Q3: low single digit percentage increase expected • 2024 full year: low single digit percentage increase expected Deposits • 2024 Q3: flat (EOP) to low single digit percentage increase (Avg.) expected
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