Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Sandler O'Neill + Partners Eastern Massachusetts Bus Tour (September 2015)
22 slides from Independent Bank's conference presentation, Sep 24, 2015
Slide 1: Sandler O'Neill + Partners Eastern Massachusetts Bus Tour
Sandler O’Neill + Partners, L.P. Eastern Massachusetts Bus Tour September 24, 2015 Exhibit 99.1
Slide 2: Executive Leadership Team
(2) Edward H. Seksay General Counsel & New Markets Tax Credit Program Manger Jane Lundquist Executive Vice President & Director of Retail Banking, Residential Lending, Corporate Marketing David Smith Senior Vice President & Chief Investment Officer Gerry F. Nadeau Executive Vice President Commercial
Slide 3: Who We Are
(3) Who We Are • Main Sub: Rockland Trust • Market: Eastern Massachusetts • Loans: $5.4 B • Deposits: $6.0 B • $AUA: $2.6 B • Market Cap: $1.3 B • NASDAQ: INDB
Slide 4: Key Messages
(4) Key Messages • Track record of consistent, solid performance • Robust core deposit and deal flow activity • Growing fee revenue sources, esp. Investment Mgmt. • Expanding footprint in growth markets • Well-positioned for rising rate environment • Tangible book value steadily rising • Disciplined
Slide 5: Expanding Company Footprint
(5) Expanding Company Footprint Rank 2014 1 25.2% 41% Rank 2014 5 5.0% 19% Rank 2014 3 10.4% 12% Rank 2014 6 7.8% 12% Rank 2014 19 1.2% 10% Rank 2014 15 0.3% 5% Rank 2014 32 0.3% 1% Plymouth County Bristol County Worcester County Suffolk County Middlesex County Norfolk County % of INDB Dep.Share Bar
Slide 6: Recent Accomplishments
(6) Recent Accomplishments • Record operating EPS performance in 2014 • Fully integrated Peoples Federal Bancshares – first retail presence in Boston • Capitalizing on expansion moves in Greater Boston • Strong household growth rate • Keeping pace with digital trend, esp. mobile banking
Slide 7: Strong Fundamentals Driving Performance
(7) Strong Fundamentals Driving Performance 47.1 55.2 59.9 27.2 33.7 2012 2013 2014 1H14 1H15 Operating Earnings ($ Mil.) +24% +12% CAGR Diluted EPS $2.16 $2.39 $2.50 $1.14 $1.31 • Strong customer volumes • Core deposits up to 88% • Inv. mgmt. revenues rising • Low funding costs • Solid asset qualit
Slide 8: Robust Commercial Lending Franchise
(8) Robust Commercial Lending Franchise TOTAL LOANS $5.4 B AVG. YIELD: 4.02% 2Q 2015 Comm'l 71% Resi Mtg 13% Home Eq 16% • Long-term CRE/ C&I lender • Strong name recognition in local markets • Growing in sophistication and capacity • Expanded market presence • Disciplined underwriting
Slide 9: Low Cost Deposit Base
(9) Low Cost Deposit Base Demand Deposits 31% Money Market 19% Savings/Now 38% CDs 12% TOTAL DEPOSITS $6.0 B AVG. COST: 0.20% 2Q 2015 • Valuable source of liquidity • Sizable demand deposit component • Relationship-based approach • Excellent household growth • Growing commercial base CORE DEPOSITS:
Slide 10: Investment Management: Transformed Into High Growth Business
(10) 6.1 19.6 10.6 2006 2014 1H15 Revenues ($ Mil.) 816 2,578 2006 2Q15 AUAs ($ Mil.) Investment Management : Transformed Into High Growth Business +216% +221% • Successful business model • Growing source of fee revenues • Strong feeder business from Bank • Expanding investment center locations • Cr
Slide 11: Well-Positioned for Rising Rates: Prudent Balance Sheet Management
(11) Well-Positioned for Rising Rates: Prudent Balance Sheet Management -5% 0% 5% 10% 15% 20% 25% Year 0 Year 1 Year 2 % In cr e ase o n N e t In te re st In co m e Interest Rate Sensitivity Down 100 Up 200 Up 400 Flat Up 200
Slide 12: Asset Quality: Well Managed
(12) Asset Quality: Well Managed 28.8 34.7 27.5 26.2 2012 2013 2014 2Q15 NPLs ($ Mil.) 9.7 8.8 8.5 0.3 4.8 2012 2013 2014 1H15 Net Chargeoffs ($ Mil.) customer fraud 14.5 customer fraud NPL/Loan % 0.64% 0.73% 0.55% 0.48% Peers 0.97%* Loss Rate 36bp 19bp 18bp 1bp Peers 9bp* * Source: FFIEC Peer Group
Slide 13: Strong Capital Position
(13) Strong Capital Position (period end) 8.7% 8.6% 8.8% 9.2% 2012 2013 2014 2Q15 6.6% 6.9% 7.4% 7.6% 2012 2013 2014 2Q15 Tier 1 Leverage % Tangible Common % $16.12 $17.18 $19.18 $20.22 2012 2013 2014 2Q15 Tangible Book Value +25% • Strong internal capital generation • No storehousing of excess capi
Slide 14: 2015 Outlook: Key Expectations
(14) 2015 Outlook: Key Expectations Loans + 1-2% organic Led by commercial segment Deposits + 3-4% organic Emphasis on core deposits Net Int. Mar. % Low 3.40s% Continued pressure on loan yields Non Int. Inc. + 3-4% organic Ongoing core customer growth Non Int. Exp. + 3-4% organic Selective franchise
Slide 15: Sustaining Business Momentum
(15) Sustaining Business Momentum Business Line • Expand Market Presence/Recruit Seasoned Lenders • 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 o
Slide 16: Expanded Presence in Vibrant Greater Boston
(16) Expanded Presence in Vibrant Greater Boston Long-Term Commercial Lender in Greater Boston Central Bancorp $357MM Deposits 10 Branches – Nov. 2012 Investment Management and Commercial Lending Center October 2013 Peoples Federal Bancshares $432MM Deposits 8 Branches – Feb. 2015
Slide 17: Building Franchise Value: Disciplined Acquisitions
(17) Building Franchise Value Disciplined Acquisitions Deal Value: $16.9MM 11% Core Dep. Premium* Falmouth Bancorp Jul ‘04 $140mm Assets $137mm Deposits 4 Branches Deal Value: $102.2 MM 17% Core Dep. Premium* Slade’s Ferry Bancorp Mar ‘08 $630mm Assets $411mm Deposits 9 Branches Deal Value: $84.5MM
Slide 18: Major Opportunities in Acquired Bank Markets
(18) Major Opportunities in Acquired Bank Markets: Capitalizing on Rockland Trust Brand Investment Management Commercial Banking Retail/ Consumer & Small Business • $2.6 billion AUA • Wealth/Institutional • Strong referral network • Sophisticated products • Expanded presence • In depth market knowle
Slide 19: Augmenting Organic Growth
(19) Augmenting Organic Growth • Expanding asset-based lending capability • Streamlining of mobile banking app • Launching of a new and improved RocklandTrust.com website • Tax credit community lending programs • Attracting senior talent from within the region • Process Improvement/ Business Intelli
Slide 20: Attentive to Shareholder Returns
(20) Attentive to Shareholder Returns $0.84 $0.88 $0.96 $0.52 2012 2013 2014 1H15 Cash Dividends Declared Per Share
Slide 21: INDB Investment Merits
(21) INDB Investment Merits • High quality franchise in attractive markets • Strong organic business volumes • Operating platform that can be leveraged further • Capitalizing on in-market consolidation opportunities • Diligent stewards of shareholder capital • Grounded management team • Positioned t
Slide 22: NASDAQ Ticker: INDB
(22) NASDAQ Ticker: INDB www.rocklandtrust.com Robert Cozzone – CFO & Treasurer Shareholder Relations: (781) 982-6737 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
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