Independent Bank Corporation · NASDAQ:IBCP
Independent Bank — Shareholder Meeting (April 2014)
32 slides from Independent Bank's shareholder meeting presentation, Apr 22, 2014
Slide 1: 2014 Annual Shareholders Meeting
NDENT BANK CORPORATION 2014 ANNUAL SHAREHOLDERS MEETING April 22, 2014 V INDEPENDENT
Slide 2: Cautionary Note Regarding Forward-Looking Statements
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements of goals, intentions, and expectations as to future trends, plans, events, or results of Indepen
Slide 3: Today's Agenda
Today’s Agenda Introductions Voting upon matters listed in the Company's 2014 Proxy Statement Presentation by IBC President & CEO and CFO Question and answer session \ INDEPENDEI
Slide 4: IBC Board of Directors
IBC Board of Directors = William J. Boer = Stephen L. Gulis Jr. = Terry L. Haske ™ RobertL. Hetzler = William B. Kessel = Michael M. Magee Jr., Executive Chairman = James E. McCarty, Lead Outside Director ™ Charles A. Palmer ™ Charles C. Van Loan \ _
Slide 5: IBC Executive Management
IBC Executive Management = Michael M. Magee Jr. — Executive Chairman = William B. Kessel — President and Chief Executive Officer ™ RobertN. Shuster— EVP/Chief Financial Officer = Mark L. Collins - EVP/General Counsel = Stefanie M. Kimball — EVP/Chief Risk Officer = Dennis J. Mack — EVP/Chief Commerc
Slide 6: 2014 Annual Meeting of Shareholders
2014 Annual Meeting of Shareholders = Secretary for the meeting (Robert Shuster) = Inspectors of election (Martha Blandford/Scott Petersen) = Record date: February 21, 2014 = Approximate mailing date of Proxy Statement: March 10, 2014 = Shares entitled to vote: 23,027,092 = Determination of quorum =
Slide 7: Proposal #1: Election of Directors
Proposal #1 Election of Directors ry Stephen L.Gulis Jr. TerryL. Haske William B. Kessel Charles A. Palmer
Slide 8: Proposal #2: Ratification of Appointment of Independent Auditors
Proposal #2 Ratification of Appointment of Independent Auditors ™ Crowe Horwath LLP has served as IBC’s independent registered public accounting firm since 2005 ™ Crowe Horwath was founded in 1942 and is one of the 10 largest accounting and consulting firms in the U.S. = |BCis served primarily by Cr
Slide 9: Proposal #3: Advisory Vote on Executive Compensation
Proposal #3 Advisory Vote on Executive Compensation The Board has solicited a non-binding advisory vote from our shareholders to approve the compensation of our executives as described in our proxy materials. \ _
Slide 10: Proposal #4: Advisory Vote on Frequency of Executive Compensation Vote
10 Proposal #4 Advisory Vote on the Frequency of a Shareholder Advisory Vote on Executive Compensation The Board has solicited a non-binding advisory vote from our shareholders on how often the Company should include a “say on pay” proposal in its proxy materials.
Slide 11: Presentation by Brad Kessel, President & CEO
‘NDENT BANK CORPORATION Celebrating 150 Years Presentation by Brad Kessel, President & CEO V INDEPENDENT
Slide 12: Recent Events
12 Recent Events ArT fh Man
Slide 13: Michigan's Premier Community Bank
13 Michigan’s Premier Community Bank Working together to make a positive difference in the lives of our customers, shareholders, associates, andthe communities we serve. = Ourlegacy — Serving customers since 1864 = Our footprint — 70 branches in 22 counties in Michigan’s lower peninsula = Our founda
Slide 14: A Culture of High Performance
14 A Culture of High Performance = Accountability — best practices = Effectiveness and commitment — a professional, hardworking team = Understanding needs — helping our customers = Exceptional service — impress every customer every day, every time = Integrity — doing the right thing = Strong on cred
Slide 15: Community Banking Philosophy
15 Community Banking Philosophy = Knowyour customer = Localdecision making = Investing in community | American American Red Cross _
Slide 16: Sound Plan for Consistent Profitability
16 Sound Plan for Consistent Profitability = Revenue growth *° Primarily organic within footprint, leveraging market resources * Commercial Banking ° Mortgage Banking * Retail Banking = Operational efficiency * Process automation and waste elimination * “Making it easy for customers to bank with us”
Slide 17: Continuous Focus on Building Long-Term Franchise Value
Continuous Focus on Building Long-Term " Franchise Value = Core deposits = Assetquality = Well capitalized = Strong liquidity = Market share = Diversity = Growth in EPS and TBV VY =—
Slide 18: 24/7 Banking to Serve our Customers
18 24/7 Banking to Serve our Customers Customers can bank with us their own way — internet, mobile, ATM New website design Mobile & tablet app -_
Slide 19: 150th Anniversary
150 Anniversary “150 Ways in 150 Days” — Giving back to ourcommunities ° Each department and branch is selecting two days through the year to serve their communities (collecting for the needy, participating in a non-profit event, etc.) Charity donations * Employees are donating $1.50 every Friday to
Slide 20: 2013-2014 Financial Review
ENDENT BANK CORPORATION 2013-2014 Financial Review Presentation by Rob Shuster, Chief Financial Officer A INDEPENDENT
Slide 21: 2013 Financial Summary
2013 Financial Summary EE Diluted EPS Net income Nl available to common Total assets Total loans Total deposits ‘Shareholders’ equity Tangible BV per share TCE to tangible assets Note: Dollars in000s, except per share dat, 0.21 4,809 4,809 2,209,943 4,374,570 1,884,806 231,581 10.01 10.35% 0.17 3,50
Slide 22: 2013 Financial Highlights
22 2013 Financial Highlights 4Q 2013 Results Eighth consecutive profitable quarter Net income of $4.8 million, or $0.21 per diluted share Commercial loans grew 6.2% (annualized rate) NPA’s declined to $36.2 million (1.64% of total assets) Loan net charge-offs of $1.3 million (70% decline from 4Q’12)
Slide 23: 2013 Net Interest Margin/Income
23 2013 Net Interest Margin/Income Net Interest Margin (TE) (%) Highlights Interest rate sensitivity profile of the loan and securities portfolios, in combination with a low cost core deposit base, positions us to benefitfrom a rising interest rate environment ™ Net interest income has shrunk along
Slide 24: 2013 Non-Interest Income
2013 Non-Interest Income “ YTD Non-Interest Income Breakout —_ Highlights = Diverse sources of non-interestincome, which totaled $10.9 million in 4Q 13 and $44.8 million forall of 2013 = 2013total non-interest income represents approximately 37% of total revenue (net interest income and non-interest
Slide 25: 2013 Non-Interest Expense
25 2013 Non-Interest Expense Highlights Non-Interest Expense ($ in Millions) 5350 908 S50 s109 350 s00 riz ari qsi2 ger aris aris arts “Qe1s ee comensatin and ene Cre Related Note: Efciency ratio is defined as non intrest expense, exuding amotization of intangibles and non securing expense, as 2 per
Slide 26: Credit Quality Summary
26 Credit Quality Summary Non-performing Loans ($ in Millions) ORE/ORA ($ in Millions) 32 y m0 BR RRR RE 200920201 “aziz Gsi2 GETZ OFS GzIS GEIS ETS OTe mmecncetering Lous A) Nets Tal toe 9 sr 3% stan oly ax 81200 wo ie s1000 28 sms a 30.0 3692 oe x 1 1 : $594 srs = Se 1% yyy 10 2 3379 5370 53625305
Slide 27: Credit Cost Summary
27 Credit Cost Summary Provision for LoanLosses LoanNet Charge-Offs = 2 506 Allowance for Loan Losses ra oy ca ax ‘00 vo a so 306 ca = 0 = so 106 = ce om 2 x s04 = vo wo x 1% 2 om were athig Ponte Lame weno ating Ponte Lanes woes otrentns ae Note: Dollars allin millions
Slide 28: 1Q'14 Financial Summary
1Q’14 Financial Summary * Diluted EPS‘) 0.13 0.21 0.17 2.64 0.27 Net income 3,138 4,809 3,505 63,388 5,807 Nl available to common 3,138 4,809 10,310 62,231 4,712 Total assets 2,259,639 2,209,943 2,183,504 2,134,674 2,105,347 Total portfolio loans 1,360,512 1,374,570 1,379,983 1,386,082 1,390,862 Tot
Slide 29: 1Q'14 Financial Highlights
29 1Q’14 Financial Highlights Income Statement Ninth consecutive profitable quarter Net income of $3.1 million, or $0.13 per diluted share Results generally in-line with our expectations Non-interest expenses reduced by $3.1 million, or 12.1% Optimistic for prospect of improved eamings during remain
Slide 30: Question and Answer Session
30 Independent Bank Corporation 2014 Annual Shareholders Meeting Question and Answer Session = Brad Kessel, President & CEO = Rob Shuster, Chief Financial Officer
Slide 31: Voting Results
31 Independent Bank Corporation 2014 Annual Shareholders Meeting Voting Results Shares entitled to vote: 23,027,092 Proposal #1 — Election of Directors Proposal #2 — Ratification of Auditors Proposal #3 — Advisory (Non-Binding) Vote on Executive Compensation Proposal #4 — Advisory (Non-Binding) Vote
Slide 32: Closing Remarks
32 Independent Bank Corporation 2014 Annual Shareholders Meeting Closing Remarks Thank you for attending! NASDAQ: IBCP Celebrating our 150" year in 2014! \ _——