Independent Bank Corp. · NASDAQ:INDB
Independent Bank — IPO Roadshow (March 2025)
34 slides from Independent Bank's IPO roadshow presentation, Mar 20, 2025
Slide 1: Fixed Income Investor Presentation March 2025
Filed Pursuant to Rule 433 Registration Statement No. 333-281375 Issuer Free Writing Prospectus dated March 20, 2025 Relating to Preliminary Prospectus Supplement dated March 20, 2025 and Prospectus dated August 8, 2024 Fixed Income Investor Presentation March 2025
Slide 2: Disclaimer
Disclaimer All information in this presentation is confidential and proprietary. Any reproduction, distribution or disclosure of this presentation, in whole or in part, without the prior written consent of Independent Bank Corp. (the “Company” or “Independent”), is strictly prohibited. Independent h
Slide 3: Offering Overview
Offering Overview Issuer: Independent Bank Corp. Security Offered: Fixed-to-Floating Subordinated Notes due 2035 Offering Size: $300 Million Expected Security Rating: BBB- (stable) by Fitch Rating Agency* Format: SEC Registered Term: 10 Years Call: 5 Years General corporate purposes, which may inclu
Slide 4: Independent Bank Corp. Snapshot
Independent Bank Corp. Snapshot Corporate Info & Footprint Balance Sheet Asset Quality Capital Ratios (1) Headquarters: Rockland, MA Total Assets: $19.4bn NPA / Assets: 0.52% TCE / TA: 10.9% Ticker: INDB Gross Loans HFI: $14.5bn Reserves / Gross Loans: 1.17% Leverage Ratio: 11.3% CEO: Jeffrey Tengel
Slide 5: Investment Highlights
Investment Highlights Safe & Sound Customer Centric • Strong balance sheet • Full suite of retail banking, commercial banking, and wealth product offerings • Prudent interest rate and liquidity risk management • Relationship-oriented commercial lending with strong local market knowledge and presence
Slide 6: Financial Overview
Financial Overview INDEPENDENT BANK CORP.
Slide 7: Historical Balance Sheet
Historical Balance Sheet Total Assets ($bn) Total Loans Held-For-Investment ($bn) $14.5 $14.3 $13.9 $13.6 $20.4 $19.3 $19.3 $19.4 $9.4 $13.2 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 (1) Tangible Common Equity ($bn) Total Deposits ($bn) $16.9 $2.00 $15.9 $2.00 $15.3 $1.89 $1.88 $14.9 $11.0 $
Slide 8: Historical Profitability Metrics
Historical Profitability Metrics Return on Average Equity (%) Return on Average Assets (%) 1.33% 1.24% 9.05% 8.31% 0.99% 7.13% 0.96% (1) (1) 6.53% 6.34% 0.81% 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 (2) Tangible Book Value Per Share ($) Earnings Per Share ($) $46.96 $5.69 $44.13 $5.42 $42.
Slide 9: Historical Profitability Metrics (cont.)
Historical Profitability Metrics (cont.) Efficiency Ratio (%) Net Interest Margin (%) (1) 3.52% 65.5% 3.44% 58.9% 57.2% 53.7% 3.28% 51.3% 3.25% 3.01% 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Noninterest Inc / Operating Revenue (%) 23.3% 20.9% 18.6% 17.0% 15.8% 2020 2021 2022 2023 2024 (1) I
Slide 10: Consolidated Capital Ratios
Consolidated Capital Ratios (1) TCE / TA (%) Leverage Ratio (%) 12.0% 10.9% 11.3% 11.0% 11.0% 10.3% 10.3% 10.3% 9.6% 9.6% 9.3% 9.1% 2020 2021 2022 2023 2024 (12/31/2024) 2020 2021 2022 2023 2024 (12/31/2024) (2) (2) Pro Forma Pro Forma Common Equity Tier 1 Ratio (%) Total Risk-Based Capital Ratio (%
Slide 11: Asset Quality
Asset Quality Non-Performing Assets / Total Assets (%) Loan Loss Reserves / Loans HFI (%) 0.52% 1.21% 0.51% 1.17% 1.09% 1.08% 1.00% 0.28% 0.28% 0.14% 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Net Charge-offs / Average Loans (%) 0.24% 0.07% 0.06% 0.01% 0.01% 2020 2021 2022 2023 2024 11
Slide 12: INDB Loan Portfolio & Credit Quality
INDB Loan Portfolio & Credit Quality
Slide 13: Loan Portfolios
Loan Portfolios CRE & Construction Portfolio C&I Portfolio (1) (1) $7.5bn $3.0bn Other Healthcare All Other (11 Sectors) Educational 3% 2% 22% Services Retail 6% Multi-Family 18% Accomodation 27% and Food Services 6% Retail Trade Manufacturing 21% 7% Lodging 10% Wholesale Trade Residential 8% Relate
Slide 14: Multifamily CRE Portfolio Detail
Multifamily CRE Portfolio Detail Multifamily Composition (%) Multifamily Portfolio Period Ended Mixed use, primarily Dec 31, 2024 Sep 30, 2024 ($ in millions) Residential 31% Total Balances $ 2,016.2 $ 1,983.8 Total Average Loan Size 2.8 2.7 Low Income Housing Tax Average Loan Size - Credit 25.8 24.
Slide 15: Office CRE Portfolio Detail
Office CRE Portfolio Detail CRE and Construction Portfolio Maturity Schedule Past 2025 2025 2025 2025 ($ in millions) Other CRE & 2026 2027 2028+ Total Due Q1 Q2 Q3 Q4 Construction Pass Rating $— $37.0 $22.0 $72.6 $12.4 $91.5 $157.9 $490.3 $883.7 85.8% Criticized — 3.2 — — 15.7 14.3 11.0 10.1 54.3 C
Slide 16: Asset Quality
Asset Quality Nonperforming Loans Commercial Criticized & Classified Loans ($ in millions) $120.0 0.9% $104.2 $101.5 $600 6.00% 0.8% $578.1 $100.0 $567.4 $558.3 0.7% 0.7% 0.7% $80.0 $550 5.50% 0.6% $502.9 $57.5 5.36% $56.9 $60.0 5.25% $486.3 $500 5.21% 5.00% 0.5% $40.0 0.4% 0.4% 0.4% $450 4.50% 4.68
Slide 17: INDB Funding and Liquidity
INDB Funding and _—s Liquidity INDEPENDENT BANK CORP.
Slide 18: Securities Portfolio Overview
Securities Portfolio Overview Available for Sale (AFS) Held to Maturity (HTM) Unrealized Unrealized Gain/(Loss) Gain/(Loss) Portfolio Composition at December 31, 2024 Book Value Fair Value Book Value Fair Value ($ in millions) U.S. government agency securities $230 $210 ($20) $ — $ — $ — U.S. treasu
Slide 19: Deposit Portfolio
Deposit Portfolio (1) Deposit Composition (%) Core Deposits / Total Deposits (%) Municipal 8% 92% 91% 90% 85% 82% Business Consumer 37% 55% 2020Y 2021Y 2022Y 2023Y 2024Y Cost of Deposits (%) 5.33% 5.33% 5.33% 5.33% 5.12% INDB 4.83% 4.83% 4.33% Fed Funds 3.08% 1.68% 1.55% 1.75% 1.64% 1.66% 1.47% 0.28
Slide 20: Enterprise Bancorp, Inc. Merger Transaction Details
Enterprise Bancorp, Inc. Merger Transaction Details
Slide 21: Enterprise Bancorp, Inc. Snapshot
Enterprise Bancorp, Inc. Snapshot 27 Branches 576 • Founded by Chairman George Duncan in 1989 FTE Employees • Operate in vibrant economic markets with attractive demographics • Consistent, 35-year history of strong organic market expansion, growth, 1989 and profitability Year Founded • Strong balanc
Slide 22: Overview of Enterprise Bancorp Acquisition
Overview of Enterprise Bancorp Acquisition Standalone Balance Sheet Highlights Enterprise is a key addition to attractive Boston area franchise New Hampshire Total $19.4bn $4.8bn Assets: Gross $14.5bn $4.0bn Massachusetts Loans: Boston Total $15.3bn $4.2bn Deposits: Total Equity: $3.0bn $361mm (1) I
Slide 23: Strategic Rationale
Strategic Rationale Continued Market Expansion Balance Sheet Strength ◼ Continuation of INDB’s successful long-term ◼ Low-cost deposit base comprised of over 83% core (1) acquisition strategy of gradual geographic expansion deposits ◼ Expected to add over $4 billion of deposits in demographically at
Slide 24: Strategic Market Share Positioning
INDB Standalone County EBTC Standalone County Strategic Market Share Positioning Pro Forma County Merger Expected to Create Top 10 Market Share in all Counties of Operation INDB EBTC Pro Forma Market Market Market Deposits Share Deposits Share Deposits Share Counties Branches ($bn) (%) Rank Branches
Slide 25: Pro Forma Loan & Deposit Distribution
Pro Forma Loan & Deposit Distribution PRO FORMA Commercial Non-Owner Commercial & Industrial Occupied Commercial & & Industrial 14% Industrial Non-Owner CRE Consumer & 13% 12% Occupied 26% Other Non-Owner CRE Consumer 3% Occupied CRE Consumer & 33% & Other 35% Other 8% 7% $14.5B $4.0B $18.5B Constru
Slide 26: Historical Interest Coverage and Debt Schedule
Historical Interest Coverage and Debt Schedule
Slide 27: Historical Double Leverage and Interest Coverage
HISTORICAL DOUBLE LEVERAGE AND INTEREST COVERAGE Pro Forma Pro Forma EBTC + (1) (2) Fiscal Year Ended, EBTC Offering ($ in millions) 2021 2022 2023 2024 2024 2024 Double Leverage Bank-Level Equity $2,950 $2,849 $2,921 $2,966 3,435 $3,672 Consolidated Equity 3,018 2,887 2,895 2,993 3,377 3,377 Double
Slide 28: Current Outstanding Debt Schedule
CURRENT OUTSTANDING DEBT SCHEDULE Term / Maturity Amount Front-End Back-End Current Company Rank Call Date Structure Date ($000) Coupon Coupon Coupon Trust Junior — — — INDB 3/15/2037 50,000 6.10% Preferred Subordinated Trust Junior Currently — — 7.06% Preferred INDB Subordinated 9/16/2034 5,100 Cal
Slide 29: Appendix
Appendix INDEPENDENT BANK CORP.
Slide 30: EBTC Transaction Assumptions
EBTC Transaction Assumptions ◼ INDB Earnings per Street Consensus Earnings ◼ EBTC Earnings per INDB Management ◼ Estimated cost savings of approximately 30% of Enterprise’s annual operating expense Cost Savings & Merger ▪ 50% phase-in during 2025 and 100% in 2026 and thereafter Costs ◼ $61.2 million
Slide 31: Comprehensive Due Diligence Conducted
Comprehensive Due Diligence Conducted Due Diligence Scope of Review ◼ Comprehensive due diligence review of EBTC completed over a three-month period ◼ Diligence review covered all functional areas, in addition to business strategies, clients, associates, and culture ◼ Heightened diligence focus surr
Slide 32: INDB Financials
INDB Financials (Dollars in Thousands) At or for the year ended, 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 Balance Sheet Total Assets 13,204,301 20,423,405 19,294,174 19,347,373 19,373,565 Total Net Loans 9,337,578 13,465,043 13,779,059 14,142,216 14,345,665 Total Deposits 10,993,170 16,917,044 1
Slide 33: EBTC Financials
EBTC Financials (Dollars in Thousands) At or for the year ended, 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 Balance Sheet Total Assets 4,014,324 4,447,819 4,438,333 4,466,034 4,827,726 Total Net Loans 3,029,666 2,872,980 3,127,878 3,508,836 3,919,920 Total Deposits 3,551,263 3,980,239 4,035,806 3,
Slide 34: Non-GAAP Reconciliation
Non-GAAP Reconciliation Tangible Common Equity and Tangible Book Value Per Share Years Ended December 31, 2020 2021 2022 2023 2024 ($ in thousands except for per share figures) Tangible Common Equity Stockholders' Equity $ 1,702,685 $ 3,018,449 $ 2,886,701 $ 2,895,251 $ 2,993,120 Less: Goodwill and