Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Sandler O'Neill + Partners 2009 East Coast Financial Services Conference
28 slides from Independent Bank's conference presentation, Nov 12, 2009
Slide 1: Investor Presentation – Sandler O'Neill 2009 East Coast Financial Services Conference
Investor Presentation Sandler O'Neill + Partners, L.P. 2009 East Coast Financial Services Conference November 12, 2009
Slide 2: Who We Are
Who We Are Main Sub: Rockland TrustMarket: Eastern MassachusettsLoans: $3.4 BDeposits: $3.3 B$AUM: $1.2 BEquity: $0.4 BNASDAQ: INDB
Slide 3: Key Messages
Key Messages Business lines performing wellGenerating robust loan/core deposit volumesGaining customers from industry falloutBuilding franchise value via market extensionWe're more than a traditional community bankDisciplined risk management cultureStrong tangible and regulatory capital
Slide 4: Company Footprint
Company Footprint 71 Branches 3 Mortgage Banking Centers 12 Commercial Banking Centers 4 Investment Management CentersBusiness generation extends beyond S.E. Mass. footprint Source: SNL Financial; Deposit/Market Share data as of June 30, 2009 including pending transactions. (Includes Credit Unions)
Slide 5: Strong Organic Growth in Priority Portfolios
Strong Organic Growth in Priority Portfolios (Millions) (CHART) (CHART) Comm'l Loan Originations Consumer Loan Originations(Resi's & Home Eq.) +26% +18%
Slide 6: Shift Towards Higher Yielding Assets
(CHART) (CHART) 2005 $2.8 B 3Q 2009 $4.0 B Shift Towards Higher Yielding Assets Attractive Earning Asset Mix
Slide 7: Improved Funding Mix - Lower Cost Deposits
Improved Funding Mix - Lower Cost Deposits (CHART) TOTAL DEPOSITS 3Q 2009$3.3 BAVERAGE COST - TOTAL DEP: 0.90% Very Focused On Containing Deposit Costs Core Deposits: 71%No broker CD's
Slide 8: Reducing Below-Hurdle Assets
Reducing Below - Hurdle Assets Indirect Consumer Loans $ Millions (CHART) Shedding Non-Relationship Assets Accounted for 30% of total 2008 net chargeoffs
Slide 9: Avoided Industry Pitfalls
Avoided Industry Pitfalls No outsized credit chargesNo subprime exposureNo Fannie or Freddie exposureNo loss ($P&L) quartersNo dilutive common equity raisingNo dividend cutsModest trust preferred exposure
Slide 10: Disciplined Credit Culture
Disciplined Credit Culture Longstanding underwriting conservatismLoan portfolio based within footprintIn-depth knowledge of local marketsNo wholesale originations of any loan typeWorkout team in place for 16 years
Slide 11: Asset Quality - No Drama
(CHART) Asset Quality - No Drama Net Charge Offs ($ Millions) NPL's ($ Millions) (CHART) 0.37% 1.01% 0.93% 1.09% Loss Rate NPL % Rising with weakening economy Losses well-contained 16bp 24bp 37bp annualized
Slide 12: Commercial Real Estate Portfolio: Non-Construction
Commercial Real Estate Portfolio ($1.7 Bill) Non-Construction Related $1.5 Billion as of 09/30/09 (CHART)
Slide 13: Commercial Real Estate Portfolio: Construction Related
Commercial Real Estate Portfolio Construction Related $0.2 Billion as of 09/30/09 (CHART)
Slide 14: Strong Loan Loss Reserves
Reserves a Healthy Multiple of Loss Rate * Excludes loans acquired at fair value in 2Q09 and 3Q09 (CHART) Strong Loan Loss Reserves
Slide 15: Strong Capital
Strong Capital Total Risk-Based % Tier 1 Leverage % (CHART) (CHART) Tangible Capital % (CHART) (1) Includes tax deductibility of certain goodwill (1)
Slide 16: Attentive to Shareholder Returns
Attentive to Shareholder Returns (CHART) *declared Cash Dividends* Per Share
Slide 17: 2009 Financial Results
Diluted EPS. $0.32 $(0.19) $0.33 $0.33 $0.33 $0.33 2009 Financial Results Fundamentals in Excellent Shape Reported Earnings Operating Earnings $Mil .......Operating Earnings...... Includes Special FDIC Assessment Securities impairment (OTTI)- Accrued CPP preferred div. Excludes M&A charges CPP repay
Slide 18: Net Interest Margin Holding Up Despite Difficult Conditions
Net Interest Margin Holding Up Despite Difficult Conditions
Slide 19: Fee Based Revenues - Steady and Growing
(CHART) (CHART) Fee Based Revenues - Steady and Growing Source 109% Assets Under Management($ Millions) Wealth Management Revenue($ Millions) Wealth Management - Strategic Priority Natural Fit with Client Base Change in Retail Origination Model Paying Off Recent O'Connell Acquisition Extends Reach $
Slide 20: Acquisition Criteria
Acquisition Criteria Strategic FitLow RiskAccretive to EarningsOpportunistic/TargetedComplementary Products
Slide 21: Acquisition of Benjamin Franklin Bancorp
Acquisition of Benjamin Franklin Bancorp. (BFBC) Apr '09 Strategic Rationale Contiguous expansion into highly attractive marketsGreater access to Boston's western suburbsExcellent demographics and higher densityAcquiring a healthy, well-run, growing community bankBuilding franchise value - solid loa
Slide 22: INDB/BFBC Footprint
INDB/BFBC Footprint INDB: 60 Branches BFBC: 11 Branches BFBC 12/31/08 ($MM)Deposits: $653Loans: $689Equity: $110
Slide 23: Attractive Demographics
Attractive Demographics Source: SNL Financial (CHART) Median HH Income ($ Thou.)2008 Total Population (Thou.)2008 (CHART)
Slide 24: Building Franchise Value - Disciplined Acquisitions
Building Franchise Value Disciplined Acquisitions $336mm Deposits$135mm Loans16 Branches Deal Value: $40mm12% Dep. Premium FleetDivest. Aug '00 $158mm Assets$137mm Deposits4 Branches Deal Value: $37mm11% Dep. Premium FalmouthBancorpJul '04 IRS Sec. 1031Like-Kind ExchangeServices Deal Value: N/ACash
Slide 25: Recent Positive Developments
Recent Positive Developments Ben Franklin integration completedSystems convertedFrontline staff retainedBalance sheet de-leveredTreasury CPP funds fully repaid in Apr '09 ($78MM)Among 1st in country to do soDid not need to raise replacement equityAwarded $50MM in federal tax creditsNew Markets Tax C
Slide 26: Our GamePlan in Very Challenging Environment
Our GamePlan in Very Challenging Environment Expand business with new and existing customersHit the ground running with Ben Franklin customersFulfill local credit needs while maintaining disciplineCultivate strong deposit base with rational pricingContinue to capitalize on competitive dislocationsEx
Slide 27: INDB - Investment Merits
INDB - Investment Merits Building franchise value in attractive marketsStrong on-the-ground business volumesOperating platform that can be leveraged furtherBalance sheet equipped to deal with severe environmentGrounded management team - does not "reach for earnings"Aligned with shareholders - inside
Slide 28: Forward-looking statements and contact
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 materially from those currently anticipated due to a number of factors, which include, but are not limited
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