Independent Bank Corp. · NASDAQ:INDB
Independent Bank — 2025 KBW Winter Financial Services Conference
30 slides from Independent Bank's conference presentation, Feb 12, 2025
Slide 1: 2025 KBW Winter Financial Services Conference
Exhibit 99.1 Jeff Tengel Chief Executive Officer Mark Ruggiero Chief Financial Officer & EVP Consumer Lending Gerry Nadeau President, Rockland Trust Gerry Cronin Director of Investor Relations 2025 KBW Winter Financial Services Conference February 13, 2025
Slide 2: Who We Are
2 Who We Are Independent Bank Corp. (Nasdaq: INDB) • Main Banking Subsidiary: Rockland Trust • Massachusetts based; New England focused Key Metrics as of December 31, 2024 $19.4 B TOTAL ASSETS $14.5 B LOANS $15.3 B DEPOSITS $7.0 B WEALTH MANAGEMENT $2.9 B MARKET CAP* *as of February 10, 2025
Slide 3: Our Corporate Promises
3 Our Corporate Promises: We remain committed to our colleagues, customers, community and shareholders. This connects our purpose to everything we do. It transforms what banking means from a mere transaction to the chance to make a positive difference in the lives of others. This motivates our colle
Slide 4: Strong, Resilient Franchise; Well Positioned for Growth
4 Safe & Sound Customer Centric • Full suite of retail banking, commercial banking, and wealth product offerings • Relationship-oriented commercial lending with strong local market knowledge and presence • Exceptional third party customer service recognition in both commercial and retail • Strong br
Slide 5: Overview of Enterprise Bancorp Acquisition
5 Overview of Enterprise Bancorp Acquisition Source: S&P Capital IQ Pro; Preliminary financial data as of the quarter ended 9/30/2024; Market data as of 12/6/2024 Note: Estimated financial impact is presented for illustrative purposes only. Includes purchase accounting marks and transaction related
Slide 6: Near-Term Priorities
6 • Deepening of risk management infrastructure • Robust portfolio management activity in CRE office asset class • Stabilizing interest rate risk through volatile rate environment • Prioritizing liquidity and capital risk management • Focusing on deposit generation initiatives • Reducing CRE concent
Slide 7: Expanding Company Footprint
7 Expanding Company Footprint Source: S&P Capital IQ Pro Note: Deposit/Market Share data as of 6/30/2024 (1) Includes one electronic branch INDB EBTC Pro Forma Counties Branches Deposits ($bn) Market Share (%) Rank Branches Deposits ($bn) Market Share (%) Rank Branches Deposits ($bn) Market Share (%
Slide 8: Financial Performance - Most Recent Quarter (Q4'24)
8 ($ in millions, except per share) Q4’24 Q4’24 Operating(1) Q3’24 Q4’23 Net Income $50.0 $51.4 $42.9 $54.8 Diluted EPS $1.18 $1.21 $1.01 $1.26 ROAA 1.02% 1.05% 0.88% 1.13% ROACE 6.64% 6.82% 5.75% 7.51% ROATCE(3) 9.96% 10.23% 8.67% 11.50% Net Interest Margin 3.33% 3.31% 3.29% 3.38% (1) See Appendix
Slide 9: Loan Balances
9 ($ in millions) Period Ended $ Increase (Decrease) % Increase (Decrease)Loan Category Dec 31, 2024 Sep 30, 2024 Commercial and industrial* $ 3,048 $ 2,947 $ 101 3.4% Commercial real estate* 6,756 6,793 (37) (0.5)% Commercial construction 782 742 40 5.4% Small business 282 270 12 4.4% Total commerc
Slide 10: CRE & Construction, C&I and Consumer Portfolios
10 95% CRE & Construction Portfolio $7.5 billion Multi-Family - 26.7% Residential - Related - 14.2% Office - 14.2% Mixed-Use Office - 1.8% Industrial/ Warehouse - 10.4% Lodging - 10.4% Retail - 17.8% Healthcare - 1.6% Other - 2.9% C&I Portfolio $3.0 billion Retail Trade - 21.0% Real Estate/Rental an
Slide 11: Office Portfolio
11 Top 20 Borrowers All Others Total Portfolio ($ in millions) Total Avg Loan ($ in millions) Total Avg Loan ($ in millions) Total Avg Loan Class A $320.1 $32.0 Class A $173.8 $6.4 Class A $493.9 $13.3 Class B/C 193.3 21.5 Class B/C 269.8 1.9 Class B/C 463.1 3.1 Medical 26.5 26.5 Medical 87.1 4.0 Me
Slide 12: Multifamily Portfolio
12 Multifamily Portfolio Period Ended ($ in millions) Dec 31, 2024 Sep 30, 2024 Total Balances $ 2,016.2 $ 1,983.8 Total Average Loan Size 2.8 2.7 Average Loan Size - Top 20 25.8 24.3 Average Loan Size - All Others 2.1 2.1 Asset Quality Criticized $ 0.5 —% $ 24.5 1.2% Classified (perf) 0.9 —% 0.9 —%
Slide 13: Asset Quality
13 Nonperforming Loans ($ in millions) $56.9 $57.5 $104.2 $101.5 0.40% 0.40% 0.73% 0.70% NPLs ($Mil) NPL/Loan % Q1 2024 Q2 2024 Q3 2024 Q4 2024 0.50% $0 $60 $120 Asset Quality Nonperforming Loans (as of 12/31/2024) ($ in millions) Loan Category Industry Balance Charge-off Specific Reserve Top 5 NPLs
Slide 14: Asset Quality (continued)
14 Charge-off and Provisioning Trends ($ in millions) $0.3 $0.3 $6.7 $1.2 $5.0 $4.3 $19.5 $7.5 0.01% 0.01% 0.18% 0.03% Net Charge-offs Provision for Credit Losses Annualized Charge-off Rate Q1 2024 Q2 2024 Q3 2024 Q4 2024 $0.0 $10.0 $20.0 0.00% 0.10% 0.20% Allowance for Credit Loss & Delinquency Tre
Slide 15: Deposit Balances
15 ($ in millions) Period Ended $ Increase (Decrease % Increase (Decrease)Deposit Product Type Dec 31, 2024 Sep 30, 2024 Noninterest-bearing demand deposits $ 4,391 $ 4,520 $ (129) (2.9)% Savings and interest checking 5,208 5,188 20 0.4% Money market 2,960 2,970 (10) (0.3)% Time certificates of depo
Slide 16: Strong Capital Position
16 Tangible Book Value* $42.25 $41.12 $44.13 $46.96 10.31% 10.26% 10.31% 10.86% TBV Per Share Tangible Equity/Tangible Assets % 2021 2022 2023 2024 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 0% 2% 4% 6% 8% 10% 12% 14% * See Appendix A for reconciliation of Non-GAAP measure • Strong internal capital generati
Slide 17: Securities Portfolio
17 Available for Sale (AFS) Held to Maturity (HTM) Portfolio Composition at December 31, 2024 Book Value Fair Value Unrealized Gain/(Loss) Book Value Fair Value Unrealized Gain/(Loss) ($ in millions) U.S. government agency securities $ 230 $ 210 $ (20) $ — $ — $ — U.S. treasury securities 628 592 (3
Slide 18: Net Interest Margin Analysis
18 Net Interest Margin 3.23% 3.25% 3.29% 3.33% 3.21% 3.24% 3.29% 3.31% Reported NIM Core NIM* Q1 2024 Q2 2024 Q3 2024 Q4 2024 3.00% 3.20% 3.40% Total Loan Portfolio Rate Characteristics 43% 27% 30%Fixed Rate Floating Rate Variable Rate ($ in m ill io ns ) Time Deposit Maturities (and weighted averag
Slide 19: One Year Net Interest Margin Roadmap
19 One Year Net Interest Margin Roadmap Estimated Repricing Impact 25bp Cut Annualized Margin Impact Annualized Margin Impact Short Term (< 3 months) Cash 0bps (tied to Fed Funds) Floating loans: 27% Fixed rate hedges: (6%) (4-5bps) Net loans: 21% Core Deposits: Estimated 20% beta 4bps Time Deposits
Slide 20: Investment Management and Advisory
20 A U A ($ B il) R evenue ($ M il) AUA & Revenue $5.7 $5.8 $6.5 $7.0 $35.3 $36.8 $40.2 $42.7 Assets Under Administration Revenues 2021 2022 2023 2024 $0.0 $4.0 $8.0 0.0 25.0 50.0 Investment Management (2021-2024) | AUA CAGR +7% | Revenue CAGR +7% ($ in thousands) Q4 2024 Q3 2024 % Change Q4 2023 %
Slide 21: Sustaining Business Momentum
21 Business Line • Extend market presence and recruiting efforts • Expand and strengthen customer relationships • Focus on product and industry diversification • Optimize loan/deposit origination process • Continue to drive household growth • Expand digital offerings • Expedite new account openings
Slide 22: INDB Investment Merits
22 • High quality franchise in attractive MA and Southern NH markets • Consistent, strong financial performance with long term value focus • Diligent stewards of shareholder capital • Prioritization of organic growth from relationship based customers • History of successful merger activity; strong r
Slide 23: Forward-Looking Statements
23 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 forward-looking termino
Slide 24: Non-GAAP Financial Measures
24 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”), operating return on a
Slide 25: Additional Information and Where to Find It
25 ADDITIONAL INFORMATION AND WHERE TO FIND IT This communication is being made with respect to the proposed transaction involving Independent and Enterprise. This material is not a solicitation of any vote or approval of the Enterprise shareholders and is not a substitute for the proxy statement/pr
Slide 26: Appendix A: Non-GAAP Reconciliation of Balance Sheet Metrics
26 (Dollars in thousands) As of December 31, 2024 2023 2022 2021 Tangible common equity Stockholders' equity (GAAP) $2,993,120 $2,895,251 $2,886,701 $3,018,449 (a) Less: Goodwill and other intangibles 997,356 1,003,262 1,010,140 1,017,844 Tangible common equity $1,995,764 $1,891,989 $1,876,561 $2,00
Slide 27: Appendix A (cont.): Balance Sheet Metrics
27 (Dollars in thousands) Period Ended September 30, 2024 June 30, 2024 March 31, 2024 Tangible common equity Stockholders' equity (GAAP) $2,977,148 $2,919,249 $2,884,208 (a) Less: Goodwill and other intangibles 998,773 1,000,233 1,001,698 Tangible common equity $1,978,375 $1,919,016 $1,882,510 (b)
Slide 28: Appendix B: Non-GAAP Reconciliation of Earnings Metrics
28 Appendix B: Non-GAAP Reconciliation of Earnings Metrics For the Year Ended (Dollars in thousands, except per share data) 2024 2023 2022 2021 Net income available to common shareholders (GAAP) $192,081 $4.52 $239,502 $5.42 $263,813 $5.69 $120,992 $3.47 Non-GAAP adjustments Provision for non-PCD ac
Slide 29: Appendix B (cont.): Earnings Metrics
29 Appendix B (cont.): Non-GAAP Reconciliation of Earnings Metrics (Unaudited, dollars in thousands) Three Months Ended December 31 2024 September 30 2024 December 31 2023 Net interest income (GAAP) $144,661 $141,703 $145,096 Noninterest income (GAAP) $32,191 $33,549 $32,067 Noninterest expense (GAA
Slide 30: Appendix C: Non-GAAP Reconciliation of Core Margin
30 Three Months Ended December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 Volume Interest Margin Impact Volume Interest Margin Impact Volume Interest Margin Impact Volume Interest Margin Impact (Unaudited, dollars in thousands) Reported total interest earning assets $17,423,492 $145,84
Independent Bank — 2025 KBW Winter Financial Services Conference on 6ix