Independent Bank Corp. · NASDAQ:INDB
Independent Bank — 2011 Keefe, Bruyette & Woods Community Bank Investor Conference
25 slides from Independent Bank's conference presentation, Aug 2, 2011
Slide 1: 2011 Keefe, Bruyette & Woods Community Bank Investor Conference
2011 Keefe, Bruyette & Woods Community Bank Investor Conference August 2, 2011 Christopher Oddleifson President & Chief Executive Officer Denis K. Sheahan Chief Financial Officer
Slide 2: Who We Are
2 Main Sub: Rockland Trust Market: Eastern Massachusetts Loans: $3.7 B Deposits: $3.8 B $AUM: $1.7 B Equity: $0.5 B NASDAQ: INDB Who We Are
Slide 3: Key Messages
3 Business lines generating robust volumes Solid earnings performance - avoided industry problems Steadily expanding customer base We're more than a traditional community bank Innovative new product offerings Disciplined risk management culture Strong tangible and regulatory capital Key Messages
Slide 4: Company Footprint
4 Company Footprint 67 Branches 4 Mortgage Banking Centers 9 Commercial Banking Centers 4 Investment Management Centers Boston Source: SNL Financial; Deposit/Market Share data as of June 30, 2010 including pending transactions. (Includes Credit Unions)
Slide 5: Recent Accomplishments
5 Operating E.P.S. grew by 24% in 1H11 Exceptional commercial loan activity Excellent deposit growth across franchise Launched Bright Rock Capital Management Created innovative mobile banking products Fitch upgrade of long-term issuer rating National 2010 Small 1st Mort. Lender (SBA) Top Place to Wo
Slide 6: Financial Results Fundamentals in Excellent Shape
6 Financial Results Fundamentals in Excellent Shape Robust C&I loan growth Core dep. up to 82% Strong net int. margin ROA of 0.96% in 1H11 Growing wealth mgmt. Stable asset quality Strong capital Diluted EPS. $0.82 $1.02 +27%
Slide 7: Robust Core Business Generation
7 Robust Core Business Generation ($ Millions) +28% CAGR +22% CAGR
Slide 8: Strong Commercial and Industrial Loan Growth
8 Strong Commercial and Industrial Loan Growth ($ Bal.-mil.) Adding High Quality Corporate Customers
Slide 9: Attractive Earning Asset Mix
9 Attractive Earning Asset Mix Shift Towards Higher Yielding Assets
Slide 10: Improved Funding Mix Lower Cost Deposits
10 Improved Funding Mix Lower Cost Deposits Core Deposits: 82% Very Focused On Containing Deposit Costs
Slide 11: Strong Net Interest Margin Holding Up Despite Difficult Conditions
Strong Net Interest Margin Holding Up Despite Difficult Conditions 11
Slide 12: Disciplined Credit Culture
Longstanding underwriting conservatism Loan portfolio based within footprint In-depth knowledge of local markets No wholesale originations of any loan type Workout team in place for 19 years Expedited problem loan resolution Disciplined Credit Culture 12
Slide 13: Asset Quality - No Drama
Asset Quality - No Drama NPL/Loan % 1.02% 1.07% 0.65% 0.59% Loss Rate 25bp 38bp 43bp 29bp 13
Slide 14: Strong Loan Loss Reserves
Strong Loan Loss Reserves Reserves a Healthy Multiple of Loss Rate Reflects Ben Franklin loans acquired at FV 14
Slide 15: Strong Capital
Strong Capital (1)Includes tax deductibility of certain goodwill All capital growth internally generated No external capital raising No dividend cuts 15 *Estimate
Slide 16: Attentive to Shareholder Returns
Attentive to Shareholder Returns 16
Slide 17: Investment Management - High Priority Growth Business
Transformed business in 2004 - tripled in size since Diversified - wealth and institutional segments Average account size growing Strong feeder business from bank Proprietary and 3rd party fund offerings Strong intermediary network Attracting market professionals Investment Management - High Priorit
Slide 18: Investment Management - High Priority Growth Business
Investment Management - High Priority Growth Business Growing source of fee revenues Natural fit with client base Expanded investment offerings Professionally managed 18
Slide 19: Sustaining Business Momentum
Sustaining Business Momentum Business Line Focal Points Grow C&I Client Base Continue to Take Advantage of Competitive Disruption Expand Specialty Products Commercial Expand Alternative Channels Optimize Branch Network Product Structure & Pricing Retail Delivery Capture Market Share Opportunity Targ
Slide 20: Product Innovation - Mobile Banking with MDeposit
This service allows customers to deposit checks using their Smart phones Product Innovation - Mobile Banking with MDeposit Mobile Deposit 20
Slide 21: Other Important Priorities
Sustain high visibility in the marketplace Expand customer relationships with attractive product offerings Maintain risk management rigor Invest in Branding, Target Marketing and CRM Analytics Attract and retain key talent Carefully evaluate M&A opportunities Other Important Priorities 21
Slide 22: Building Franchise Value
Building Franchise Value BANK NON-BANK All Acquisitions Immediately Accretive Disciplined Acquisitions Deal Value: $40MM 12% Dep. Premium Fleet Divest. Aug '00 $336mm Deposits $135mm Loans 16 Branches Deal Value: $37MM 11% Dep. Premium Falmouth Bancorp Jul '04 $158mm Assets $137mm Deposits 4 Branche
Slide 23: 2011 Outlook - Key Expectations
Diluted Earnings per Share Total Loan Growth Net Interest Margin Net Chgoffs.& Provision Tax Rate 2011 Outlook - Key Expectations $2.07 - $2.17 +6 - 7% 3.90% - 3.95% 30 - 40 bp ^ 27% 23
Slide 24: INDB - Investment Merits
High quality franchise in attractive markets Strong on-the-ground business volumes Operating platform that can be leveraged further Balance sheet equipped to deal with current uncertainty Grounded management team - does not "reach for earnings" Aligned with shareholders - insider ownership 7% Positi
Slide 25: NASDAQ Ticker: INDB
NASDAQ Ticker: INDB www.rocklandtrust.com Denis Sheahan - CFO Shareholder Relations: Jennifer Kingston (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
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