Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Sandler O'Neill & Partners East Coast Financial Services Conference 2013
23 slides from Independent Bank's conference presentation, Nov 14, 2013
Slide 1: Sandler O'Neill & Partners East Coast Financial Services Conference
Sandler O’Neill & Partners East Coast Financial Services Conference November 13-14, 2013 Chris Oddleifson President and Chief Executive Officer Denis Sheahan Chief Operating Officer Robert Cozzone Chief Financial Officer and Treasurer Exhibit 99.1
Slide 2: Who We Are
• Main Sub: Rockland Trust • Market: Eastern Massachusetts • Loans: $4.7 B* • Deposits: $5.0 B* • $AUA: $2.2 B • Market Cap: $0.8 B* • NASDAQ: INDB Who We Are 2 *proforma to include amounts relating to the anticipated acquisition of Mayflower Bancorp, Inc.
Slide 3: Key Messages
• Track record of consistent, solid performance • Robust growth from new and existing customers • Expanding/strengthening footprint and share • Rockland Trust brand resonating in local markets • Disciplined risk management culture • Strong capital position • Raising the bar on operational excellence
Slide 4: Company Footprint
Company Footprint 4 Rank 2013 1 19.7% 44% Rank 2013 6 3.9% 18% Rank 2013 4 9.9% 14% Rank 2013 9 5.9% 12% Rank 2013 23 1.0% 11% Rank 2013 45 0.3% 1% Worcester County Middlesex County Norfolk County % of INDB Dep.Share Barnstable County (Cape Cod) Market Plymouth County Bristol County Source: SNL Fina
Slide 5: Recent Accomplishments
• Excellent organic loan and core deposit growth • Very successful customer acquisition campaigns • Growing franchise value via sensible acquisitions • Expanded presence in the Boston market • TBV steadily rising – up 14% in past 2 years • Multiple 3rd party recognition of excellence Recent Accompli
Slide 6: Strong Fundamentals Driving Performance
Strong Fundamentals Driving Performance 6 40.3 45.5 47.1 33.4 40.9 2010 2011 2012 YTD 12 YTD 13 Operating Earnings ($ Mil.) +23% Diluted EPS $1.90 $2.12 $2.16 $1.54 $1.78 +13% +4% • Healthy comm’l loan growth • Core deposits up to 85% • Growing wealth mgmt. • Double digit fee income growth • Solid a
Slide 7: Robust Core Business Generation
Robust Core Business Generation ($ 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 9/13 vs. 9/12 9/13 vs. 6/13 ↑ 14% ↑ 4% annualized ↑ 1% ↑ 6% annualized Comm’l Loan $ Bal. Home Equity $ Bal. Growth
Slide 8: Strong Commercial and Industrial Loan Growth
Strong Commercial and Industrial Loan Growth ($ Bal.-mil.) 8 374 503 576 688 756 2009 2010 2011 2012 3Q 13 +21% CAGR Adding High Quality Corporate Customers Yr. end
Slide 9: Attractive Balance Sheet Profile (3Q13)
Attractive Balance Sheet Profile (3Q13) Sec./ST Inv. 14% Resi Mtges 10% Home Eq 15% Comm'l Loans 61% EARNING ASSETS $5.3 B AVG. YIELD: 3.88% Very Focused On Containing Deposit Costs Shift Towards Higher Yielding Assets Demand Deposits 28% Money Market 19% Savings/Now 38% CD's 15% TOTAL DEPOSITS $4.8
Slide 10: Investment Management – High Priority Growth Business
Investment Management – High Priority Growth Business 10 • Growing source of fee revenues • Expanding investment center locations • Strong feeder business from Bank • Cross-sell opportunity in acquired bank markets $ mil. 2006 3Q 13 Assets under Admin. 816$ + 164% 2,156$ Revenues 6.1$ + 143% 14.8$ (
Slide 11: Sustaining Business Momentum
Sustaining Business Momentum 11 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 12: Net Interest Margin
Net Interest Margin Fairly steady over various rate cycles Current low rate environment adding pressure 12 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 3Q06 3Q07 3Q08 3Q09 3Q10 3Q11 3Q12 3Q13 Fed Funds NIM (FTE) 5 yr SWAP
Slide 13: Prudent Balance Sheet Management Positioned for Rising Rates
Prudent Balance Sheet Management Positioned for Rising Rates 13 -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% Year 0 Year 1 Year 2 % I n c rea s e o n Net I n te rest In com e Interest Rate Sensitivity Down 100 Up 200 Up 400 Flat Up 500
Slide 14: Asset Quality – Well Managed
Asset Quality – Well Managed 23.1 29.0 28.8 37.9 2010 2011 2012 3Q 13 NPL’s ($ Mil.) 14.8 9.5 9.7 4.8 5.3 2010 2011 2012 YTD 13 Net Chargeoffs ($ Mil.) customer fraud 14.5 NPL/Loan % 0.65% 0.76% 0.64% 0.83% Peers 2.13%* Loss Rate 43bp 26bp 36bp 16bp Peers 31bp* * Source: FFIEC Peer Group 2; $3-10 Bi
Slide 15: Strong Capital
Strong Capital 15 8.2% 8.6% 8.7% 8.6% 2010 2011 2012 3Q13 Tier 1 Leverage % 6.9% 7.2% 6.9% 7.2% 2010 2011 2012 3Q13 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 $18.06
Slide 16: Attentive to Shareholder Returns
Attentive to Shareholder Returns 16 $0.68 $0.72 $0.72 $0.72 $0.76 $0.84 $0.66 2007 2008 2009 2010 2011 2012 YTD 13 Cash Dividends Declared Per Share
Slide 17: Mayflower Bancorp. (MFLR) Acquisition
Mayflower Bancorp. (MFLR) Acquisition Strategic Rationale • Attractive financial return: 1-2% EPS accretive • Strengthens #1 share in a key market • Valuable source of liquidity: $200+MM deposits • Excellent fit with Rockland brand • Low risk transaction to create future value 17
Slide 18: Winning Businesses – Major Opportunities
Investment Management Commercial Banking Retail/ Consumer • $2.2 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 • Electr
Slide 19: Building Franchise Value
Building Franchise Value 19 All Acquisitions Immediately Accretive Deal Value: $17MM 11% Core Dep. Premium* Falmouth Bancorp Jul ‘04 $158mm Assets $137mm Deposits 4 Branches Deal Value: $102MM 17% Core Dep. Premium* Slade’s Ferry Bancorp Mar ‘08 $630mm Assets $411mm Deposits 9 Branches Deal Value: $
Slide 20: 2013 Outlook – Key Expectations
2013 Outlook – Key Expectations Original (Jan ‘13) Current (YTD ‘13) E.P.S. (Operating) $2.28 - $2.38 Upper end of range expected Loan Growth + 4 - 5% +1% Deposit Growth +3 - 4% +5% Net Int. Margin FY: Mid 3.50s% YTD: 3.53% (3Q: 3.43%) Non Int. Income +6 - 8% +16% Net Chargeoffs $10 - 14 MM $5.3 MM
Slide 21: Raising the Bar on Operational Excellence
Business Intelligence/Knowledge Management • Further leverage analytics to drive business results • Grow and deepen quality customer relationships • Better align sales, marketing, and relationship management Process Improvement • Focused on cost and quality of delivery • Elevate the customer experie
Slide 22: 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 to grow, build, and acquire t
Slide 23: NASDAQ Ticker: INDB www.rocklandtrust.com Robert Cozzone – CFO & Treasurer Shareholder Relations: (781) 878-6100
NASDAQ Ticker: INDB www.rocklandtrust.com Robert Cozzone – CFO & Treasurer 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 di
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