Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Q1 2025 Earnings Presentation
23 slides from Independent Bank's earnings presentation, Apr 17, 2025
Slide 1: Q1 2025 Earnings Presentation
Q1 2025 Earnings Presentation April 17, 2025 Exhibit 99.2
Slide 2: Company Overview
Company Overview Strong, Resilient Franchise; Well Positioned for Growth Safe & Sound Customer Centric • Strong balance sheet • Full suite of retail banking, commercial banking, • Prudent interest rate and liquidity risk and wealth product offerings management • Relationship-oriented commercial lend
Slide 3: Q1 2025 Financial Highlights
Q1 2025 Financial Highlights Key Metrics Highlights ($ in millions, except per share) • Core net interest margin expansion of Q1’25 Q4’24 6 bps to 3.37%(2) Q1’25 Q4’24 Q1’24 Operating(1) Operating(1) • Strong fee income Net Income $44.4 $45.3 $50.0 $51.4 $47.8 • Focused expense management Diluted EP
Slide 4: Deposit Balances
Deposit Balances ($ in millions) Period Ended Deposit Composition $ Increase % Increase Deposit Product Type March 31, 2025 Dec 31, 2024 (Decrease (Decrease) Municipal Noninterest-bearing demand 8.4% $ 4,410 $ 4,391 $ 19 0.4% deposits Savings and interest checking 5,280 5,208 72 1.4% Money market 3,
Slide 5: Loan Balances
Loan Balances ($ in millions) Period Ended $ Increase % Increase Loan Category March 31, 2025 Dec 31, 2024 (Decrease) (Decrease) Commercial and industrial $ 3,110 $ 3,048 $ 62 2.0% Commercial real estate 6,652 6,756 (104) (1.5)% Commercial construction 796 782 14 1.8% Small business 289 282 7 2.5% T
Slide 6: Asset Quality
Asset Quality Nonperforming Loans Commercial ($ in millions) Criticized & Classified Loans $120 ($ in millions) 0.75% $104.2 $101.5 $578.1 $567.4 $89.5 $600.0 $502.9 6.00% 0.73% $486.3 0.70% $417.7 $450.0 4.50% $57.5 0.62% 5.36% 5.25% $60 $300.0 4.68% 4.47% 0.50% 3.85% 3.00% $150.0 1.50% 0.40% $— —%
Slide 7: Asset Quality (continued)
Asset Quality (continued) Allowance for Credit Loss & Delinquency Trends 1.14% 1.17% 1.05% 0.99% 1.00% 0.60% 0.47% 0.50% 0.37% 0.33% 0.00% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Allowance for Credit Losses/Total Loans Delinquent Loans/Total Loans Charge-off and Provisioning Trends ($ in millions) $40.9 1.6
Slide 8: Loan Portfolios
Loan Portfolios CRE & Construction Portfolio C&I Portfolio $7.4 billion $3.1 billion Other - 2.9% All Other - 22.1% Healthcare - 1.7% Retail Trade - 21.2% Multi-Family - 27.1% Educational Services - 5.4% Retail - 17.5% Accommodation Real Estate/Rental and Food Services - and Leasing - 12.2% Lodging
Slide 9: Focal Point | CRE Office (inclusive of construction)
Focal Point | CRE Office (inclusive of construction) CRE & Construction Maturity Schedule Portfolio ($ in millions) Matured 2025 Q2 2025 Q3 2025 Q4 2026 2027 2028+ Total $7.4 billion Other CRE & Construction - 86.4% Pass Rating $— $30.3 $72.0 $12.9 $91.6 $157.3 $491.7 $855.8 Criticized — 13.6 — 16.3
Slide 10: Focal Point | Multifamily CRE
Focal Point | Multifamily CRE Multifamily Portfolio Period Ended Composition Mixed Use, Low Income Primarily Housing Tax ($ in millions) March 31, 2025 Dec 31, 2024 Residential - Credit - 8.6% 31.0% Total Balances $ 2,020.5 $ 2,016.2 Residential Apart. - Affordable Total Average Loan Size 2.8 2.8 Ho
Slide 11: Net Interest Margin Analysis
Net Interest Margin Analysis Net Interest Margin Total Loan Portfolio Rate Characteristics 3.42% 3.40% 3.33% 3.29% 3.37% 3.25% Fixed Rate 31% 3.20% 3.29% 3.31% 41% 3.24% Floating Rate 3.00% Variable Rate Q2 2024 Q3 2024 Q4 2024 Q1 2025 Reported NIM Core NIM* 28% Time Deposit of Maturities Loan Hedgi
Slide 12: Noninterest Income/Expense
Noninterest Income/Expense Noninterest Income Noninterest Expense ($ in thousands) ($ in thousands) Q1 2025 Q4 2024 Q1 2025 Q4 2024 Deposit account fees $ 7,053 $ 7,116 Salaries and employee benefits $ 61,931 $ 59,209 Occupancy and equipment Interchange and ATM fees 4,622 4,880 13,859 13,399 expense
Slide 13: Focal Point | Investment Management and Advisory
Focal Point | Investment Management and Advisory ($ in thousands) Q1 2025 Q4 2024 % Change Assets under administration $7,098,961 $7,035,315 0.9% Asset based revenue 9,841 9,607 2.4% Other revenue: Retail commission revenue 957 760 Insurance commission revenue 241 90 Other advisory revenue 181 326 T
Slide 14: Securities Portfolio
Securities Portfolio Available for Sale (AFS) Held to Maturity (HTM) Unrealized Unrealized Portfolio Composition at March 31, 2025 Book Value Fair Value Book Value Fair Value Gain/(Loss) Gain/(Loss) ($ in millions) U.S. government agency securities $ 230 $ 214 $ (16) $— $— $— U.S. treasury securitie
Slide 15: Overview of Enterprise Bancorp Acquisition
Overview of Enterprise Bancorp Acquisition Pro Forma Combined Company $25Bn $20Bn $19Bn $8.7Bn 151 $3.6Bn in Assets in Deposits in Loans of Wealth AUM Branches Market Cap Financially Attractive Acquisition Enterprise is a key addition to attractive Boston area franchise 16.2% GAAP EPS Accretion (202
Slide 16: 2025 Forward Guidance
2025 Forward Guidance The following guidance excludes the anticipated impact of the Enterprise acquisition: Loans • Low single digit percentage increase expected Deposits • Low to mid single digit percentage increase expected Net Interest Margin • See slide 17 Asset Quality • Provision driven by eme
Slide 17: 2025 Forward Guidance (cont.)
2025 Forward Guidance (cont.) Net Interest Margin Guidance Sub-Debt Reaffirm Prior Proceeds Interest INDB Impact Margin Guidance 2025 Q1 Core Estimated Expense Pre- Excluding Sub- ($ in thousands) 2025 Q1 Reported Adjustments* (Non-GAAP)* @ 4.00% @ 7.25% acquisition Debt Interest earning assets $17,
Slide 18: 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 19: 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
Slide 20: Additional Information
Additional Information ADDITIONAL INFORMATION AND WHERE TO FIND IT This communication is being made with respect to the proposed transaction involving Independent and Enterprise. In connection with the proposed transaction, on January 27, 2025, Independent filed with the SEC a Registration Statement
Slide 21: Appendix A - Reconciliation of Non-GAAP Earnings Metrics
Appendix A - Reconciliation of Non-GAAP Earnings Metrics (Unaudited, dollars in thousands) Three Months Ended March 31 December 31 March 31 2025 2024 2024 Net interest income (GAAP) $145,505 $144,661 $137,439 Noninterest income (GAAP) $32,539 $32,191 $29,943 Noninterest expense (GAAP) $105,878 $106,
Slide 22: Appendix B - Non-GAAP Reconciliation of Core Margin
Appendix B - Non-GAAP Reconciliation of Core Margin Three Months Ended March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 Margin Margin Margin Margin Margin Volume Interest Impact Volume Interest Impact Volume Interest Impact Volume Interest Impact Volume Interest Impac
Slide 23: Appendix C - Reconciliation of Non-GAAP Capital Metrics
Appendix C - Reconciliation of Non-GAAP Capital Metrics March 31 December 31 March 31 (Unaudited, dollars in thousands, except per share data) 2025 2024 2024 Tangible common equity Stockholders’ equity (GAAP) $ 3,033,392 $ 2,993,120 $ 2,884,208 (a) Less: Goodwill and other intangibles 996,013 997,35