Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Investor Presentation (June 2013)
24 slides from Independent Bank's investor presentation, Jun 5, 2013
Slide 1: Investor Presentation, June 5, 2013
June 5, 2013 Christopher Oddleifson President & Chief Executive Officer Denis K. Sheahan Chief Financial Officer Exhibit 99.1
Slide 2: Who We Are
• Main Sub: Rockland Trust • Market: Eastern Massachusetts • Loans: $4.5 B • Deposits: $4.6 B • $AUA: $2.3 B • Market Cap: $0.7 B • NASDAQ: INDB Who We Are 2
Slide 3: Key Messages
• Strong fundamentals driving solid performance • Robust growth from new and existing customers • Expanding/strengthening footprint and share • Rockland Trust brand gaining increased traction • Investing for growth while controlling costs • Disciplined risk management culture • Strong capital positi
Slide 4: Company Footprint
Company Footprint* 4 Rank 2012 1 17.5% 42% Rank 2012 7 3.9% 18% Rank 2012 4 9.8% 14% Rank 2012 9 5.4% 13% Rank 2012 23 1.0% 12% Rank 2012 44 0.3% 1% Worcester County Middlesex County Norfolk County % of INDB Dep.Share Barnstable County (Cape Cod) Market Plymouth County Bristol County Source: SNL Fin
Slide 5: Recent Accomplishments
• Excellent organic loan and core deposit growth • Capitalized on commercial banking expansion • Very successful customer acquisition campaigns • Double digit growth in core fee income in 2012 • Building franchise value via in-market acquisitions • TBV steady rising – up 13% in past 2 years • Multip
Slide 6: Strong Fundamentals Driving Performance
Strong Fundamentals Driving Performance 6 40.3 45.5 47.1 12.2 13.3 2010 2011 2012 1Q12 1Q13 Operating Earnings ($ Mil.) +9% Diluted EPS $1.90 $2.12 $2.16 $0.56 $0.58 +13% +4% • Excellent comm’l loan growth • Core deposits at 83% • Growing wealth mgmt. • Solid asset quality vs. peers • Strong capital
Slide 7: Robust Core Business Generation
Robust Core Business Generation ($ Mil.) 7 497 897 2009 2012 Comm’l Loan Originations 541 668 2009 2012 Consumer Loan Originations (Resi’s & Home Eq.) +22% CAGR +7% CAGR 3/13 vs. 3/12 3/13 vs. 12/12 ↑ 16% ↑ 5% annualized ↑ 8% ↓ 5% annualized Comm’l Loan $ Bal. Home Equity $ Growth
Slide 8: Strong Commercial and Industrial Loan Growth
Strong Commercial and Industrial Loan Growth ($ Bal.-mil.) 8 374 503 576 688 702 2009 2010 2011 2012 1Q13 +21% CAGR Adding High Quality Corporate Customers Yr. end
Slide 9: Attractive Balance Sheet Profile
Attractive Balance Sheet Profile (1Q13) Sec./ST Inv. 13% Resi Mtges 11% Home Eq 15% Other 1% Comm'l Loans 60% EARNING ASSETS $5.2 B AVG. YIELD: 4.05% Very Focused On Containing Deposit Costs Shift Towards Higher Yielding Assets Demand Deposits 26% Money Market 19% Savings/Now 38% CD's 17% TOTAL DEPO
Slide 10: Investment Management – High Priority Growth Business
Investment Management – High Priority Growth Business 10 • Growing source of fee revenues • Strong feeder business from bank • Expanding investment center locations • Cross-sell opportunity in acquired bank markets $ mil. 2006 1Q13 Assets under Admin. 816$ + 177% 2,261$ Revenues 6.1$ + 143% 14.8$ (2
Slide 11: Investing for Future Growth
Business Opportunities • Expanded Commercial Presence (Providence, Waltham, Boston) • Asset-Based Lending • Investment Management • On-Line/Mobile Banking • Smart ATMs Investing for Future Growth 11
Slide 12: Sustaining Business Momentum
Sustaining Business Momentum 12 Business Line Focal Points •Expand Market Presence •Grow C&I Client Base •Expand Specialty Products, e.g. ABL Commercial •Continue to Drive Household Growth •Expand Electronic Banking Platform •Optimize Branch Network Retail Delivery •Capitalize on Strong Market Demog
Slide 13: Net Interest Margin
Net Interest Margin Fairly steady over various rate cycles Current low rate environment adding pressure 13 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13 Fed Funds NIM (FTE) 5 yr SWAP
Slide 14: Prudent Balance Sheet Management Positioned for Rising Rates
Prudent Balance Sheet Management Positioned for Rising Rates 14
Slide 15: Asset Quality – Well Managed
Asset Quality – Well Managed 23.1 29.0 28.8 33.1 2010 2011 2012 1Q13 NPL’s ($ Mil.) 14.8 9.5 4.8 9.7 1.2 2010 2011 2012 1Q13 Net Chargeoffs ($ Mil.) customer fraud 14.5 NPL/Loan % 0.65% 0.76% 0.64% 0.74% Peers 2.55%* Loss Rate 43bp 26bp 36bp 11bp Peers 64bp* Yr. end * Source: FFIEC Peer Group 2; $3-
Slide 16: Strong Capital
Strong Capital 16 8.2% 8.6% 8.7% 8.5% 2010 2011 2012 1Q13 Tier 1 Leverage % 6.9% 7.2% 6.9% 7.1% 2010 2011 2012 1Q13 Tangible Common %(1) (1)Includes tax deductibility of certain goodwill • Strong internal capital generation • No external capital raising • No dividend cuts $14.86 $16.21 $17.00 $17.31
Slide 17: Mayflower Bancorp. (MFLR) Acquisition Strategic Rationale
Mayflower Bancorp. (MFLR) Acquisition Strategic Rationale • Attractive financial return – Efficiency / Cost savings opportunity – 1.5% - 2.0% EPS accretion in years 1-3 – IRR of 15% – Modest TBV and TCE/TA dilution w/ short earn-back period • Strengthens #1 share in a key market • Valuable source of
Slide 18: Mayflower Profile
Mayflower Profile • Mayflower Bancorp Inc (MFLR), founded in 1889, is a $261 million asset bank headquartered in Middleboro, MA • MFLR operates 8 branches in Plymouth County • Financial Highlights (1): – Total Deposits: $236mm – Gross Loans: $141mm – Tang. Comm. Equity: $23mm – Cost of Total Deposit
Slide 19: INDB Winning Businesses – Major Opportunities
Investment Management Commercial Banking Retail/ Consumer • $2 Bil. AUA • Wealth/Institutional • Sophisticated Products • Expanded presence • Knowledgeable bankers Central Bancorp. & Mayflower Bancorp. Customer Base Capitalizing on Rockland Trust Brand • Highly-rated customer satisfaction • Electron
Slide 20: Building Franchise Value
Building Franchise Value 20 All Acquisitions Immediately Accretive Deal Value: $37MM 11% Core Dep. Premium* Falmouth Bancorp Jul ‘04 $158mm Assets $137mm Deposits 4 Branches Deal Value: $105MM 17% Core Dep. Premium* Slade’s Ferry Bancorp Mar ‘08 $610mm Assets $409mm Deposits 9 Branches Deal Value: $
Slide 21: 2013 Outlook
2013 Outlook Key Expectations* 21 Loan Growth +4 – 5% Led by commercial segment Deposits +3 – 4% Continued core deposit growth Net Chargeoffs $10 – 14 MM Provision $12 – 16 MM Net Int. Margin FY: Mid 3.50s% ≈ 3.6% beg. of yr. ≈ 3.5% towards yr. end Non-Interest Inc. +6 – 8% Growth from multiple sour
Slide 22: Attentive to Shareholder Returns
Attentive to Shareholder Returns 22 $0.68 $0.72 $0.72 $0.72 $0.76 $0.84 $0.22 2007 2008 2009 2010 2011 2012 1Q13 Cash Dividends Declared Per Share
Slide 23: INDB – Investment Merits
• High quality franchise in attractive markets • Strong organic business volumes • Capacity to feed growth businesses • Operating platform that can be leveraged further • Capitalizing on in-market consolidation opportunities • Diligent stewards of shareholder capital • Grounded management team • Pos
Slide 24: NASDAQ Ticker: INDB www.rocklandtrust.com Denis Sheahan - CFO Shareholder Relations: (781) 878-6100 Statements contained
NASDAQ Ticker: INDB www.rocklandtrust.com Denis Sheahan - CFO Shareholder Relations: (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 to differ material