Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Sandler O'Neill + Partners, L.P. Investor Marketing (November 2014)
23 slides from Independent Bank's conference presentation, Nov 3, 2014
Slide 1: Sandler O'Neill + Partners, L.P. Investor Marketing
Sandler O’Neill + Partners, L.P. Investor Marketing November 3, 2014 Christopher Oddleifson – Chief Executive Officer Robert Cozzone – Chief Financial Officer and Treasurer Exhibit 99.1
Slide 2: Who We Are
• Main Sub: Rockland Trust • Market: Eastern Massachusetts • Loans: $5.4 B * • Deposits: $5.7 B * • $AUA: $2.4 B • Market Cap: $0.9 B • NASDAQ: INDB * proforma to include amounts related to the anticipated acquisition of Peoples Federal Bancshares, Inc. Who We Are 2
Slide 3: Key Messages
• Track record of consistent, solid performance • Expanding/strengthening footprint and market share • Growing fee revenue sources • Strong capital/TBV steadily rising • Disciplined risk management culture • Raising the bar on operational excellence • Well-positioned for rising rate environment Key
Slide 4: INDB Recent Accomplishments
• Record operating EPS performance expected in 2014 • Excellent commercial loan and core deposit growth • Very successful customer acquisition campaigns • Opened first office in downtown Boston • Announced agreement to acquire Peoples Federal Bancshares, Inc. of Boston • Fitch upgrade of ratings out
Slide 5: Strong Fundamentals Driving Performance
Strong Fundamentals Driving Performance 5 45.5 47.1 55.2 40.9 43.3 2011 2012 2013 YTD13 YTD14 Operating Earnings ($ Mil.) +17% +6% Diluted EPS $2.12 $2.16 $2.39 $1.78 $1.81 +4% • Robust comm’l loan growth • Core deposits up to 87% • Inv. mgmt. revenues rising • Solid asset quality vs. peers • TBV st
Slide 6: Robust Commercial Loan Generation
9/14 vs. 9/13 9/14 vs. 6/14 ↑ 8% ↑ 6% annualizedComm’l Loan $ Bal. Organic Growth 503 576 688 784 843 2010 2011 2012 2013 3Q14 +15% CAGR Robust Commercial Loan Generation ($ Mil.) 6 665 850 686 2010 2013 YTD14 Comm’l Loan Originations Strong C&I Loan Growth ($ Bal.-mil.) Yr. end
Slide 7: Attractive Balance Sheet Profile
Attractive Balance Sheet Profile 3Q14 Sec./ST Inv. 15% Resi Mtges 9% Home Eq 15% Comm'l Loans 61% EARNING ASSETS $5.8 B AVG. YIELD: 3.75% Very Focused On Containing Deposit Costs Shift Towards Higher Yielding Assets Demand Deposits 28% Money Market 20% Savings/Now 39% CDs 13% TOTAL DEPOSITS $5.3 B A
Slide 8: Investment Management – High Priority Growth Business
Investment Management – High Priority Growth Business 8 • Growing source of fee revenues • Strong feeder business from Bank • Expanding investment center locations • Cross-sell opportunity in acquired bank markets $ mil. 2006 3Q14 Assets under Admin. 816$ + 199% 2,440$ Revenues 6.1$ + 175% 16.8$ (20
Slide 9: Prudent Balance Sheet Management Positioned for Rising Rates
9 Prudent Balance Sheet Management Positioned for Rising Rates
Slide 10: Asset Quality – Well Managed
Asset Quality – Well Managed 29.0 28.8 34.7 26.1 2011 2012 2013 3Q14 NPLs ($ Mil.) 9.5 9.7 8.8 6.9 4.8 2011 2012 2013 YTD14 Net Chargeoffs ($ Mil.) customer fraud 14.5 customer fraud NPL/Loan % 0.76% 0.64% 0.73% 0.53% Peers 1.51%* Loss Rate 26bp 36bp 19bp 19bp Peers 15bp* * Source: FFIEC Peer Group
Slide 11: Strong Capital Position
• Strong internal capital generation • No storehousing of excess capital • No external capital raising • No dividend cuts Strong Capital Position 11 8.6% 8.7% 8.6% 8.8% 2011 2012 2013 3Q14 Tier 1 Leverage % 6.8% 6.6% 6.9% 7.2% 2011 2012 2013 3Q14 Tangible Common % $15.27 $16.12 $17.18 $18.66 2011 20
Slide 12: 2014 Outlook – Key Expectations
2014 Outlook – Key Expectations Loan Growth Slightly above 5% Led by commercial segment Deposit Growth + 5-7% Emphasis on core deposits Net Int. Margin Mid 3.40s% Pressured by low rate environment Non Int. Income + 1-2% Strong core growth/lower mort. rev. Non Int. Expense + 3-4% Includes full year o
Slide 13: Sustaining Business Momentum
Sustaining Business Momentum 13 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 14: INDB to Acquire Peoples Federal Bancshares, Inc.
• Strengthens position in coveted Boston market • Financially attractive – $0.02 – $0.03 annual accretion to earnings per share – Modestly accretive to tangible book value per share • Opportunity to acquire healthy, profitable bank with deep customer relationships • Attractive sub-markets fit within
Slide 15: Overview of Peoples Federal Bancshares, Inc.
Overview of Peoples Federal Bancshares, Inc. • Peoples Federal Bancshares Inc. – Ticker: PEOP – Founded in 1888 • Operates 8 branches in the Greater Boston area – Headquartered in Boston, MA – 4 Branches in the City of Boston Financial Highlights * Assets: $606mm Cost of Deposits: 0.42% Gross Loans:
Slide 16: PEOP Acquisition to Enhance Presence in Greater Boston
• 1st retail locations in Boston • Complements recent commercial lending and IMG office opening in downtown Boston • Solidifies prior investments North and West of the city of Boston • Capitalizes on long-established commercial lending presence in Boston • Provides access to dense small business mar
Slide 17: Building Franchise Value
Building Franchise Value 17 All Acquisitions Immediately Accretive Deal Value: $16.9MM 11% Core Dep. Premium* Falmouth Bancorp Jul ‘04 $140mm Assets $137mm Deposits 4 Branches Deal Value: $102.2 MM 17% Core Dep. Premium* Slade’s Ferry Bancorp Mar ‘08 $630mm Assets $411mm Deposits 9 Branches Deal Val
Slide 18: Major Opportunities in Acquired Bank Markets
Investment Management Commercial Banking Retail/ Consumer -$2.4 billion AUA -Wealth/Institutional -Strong referral network -Sophisticated products -Expanded presence -In depth market knowledge Acquired Bank Customer Bases -Award winning customer service -Electronic/mobile banking -Competitive home e
Slide 19: Augmenting Organic Growth
19 Augmenting Organic Growth • Streamlining of mobile banking app • Launching of a new and improved RocklandTrust.com website • Grand re-opening of modern branch in Somerville • Tax credit community lending programs • Attracting senior talent from within the region Low-Risk Growth Opportunities
Slide 20: 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 21: Attentive to Shareholder Returns
Attentive to Shareholder Returns 21 $0.76 $0.84 $0.88 $0.72 2011 2012 2013 YTD14 Cash Dividends Declared Per Share
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
Independent Bank — Sandler O'Neill + Partners, L.P. Investor Marketing (November 2014) on 6ix