Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Q3 2022 Earnings Presentation
14 slides from Independent Bank's earnings presentation, Oct 21, 2022
Slide 1: Q3 2022 Earnings Presentation
Exhibit 99.2 Q3 2022 Earnings Presentation October 21, 2022
Slide 2: Forward Looking Statements
Forward Looking Statements 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
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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 includes operating net income and operating earnings per share ("EPS"),
Slide 4: Highlights
Highlights Key Drivers of Q3 2022: Key Operating Metrics Q3 2022 • Core NIM** expansion of 36 basis points from Q2 2022 Net Income (in millions) $ 71.9 • 1.3% annualized net loan growth, Diluted Earnings Per Share $ 1.57 excluding PPP runoff Return on Average Assets 1.43% • Continued modest cash dep
Slide 5: Loan Portfolio
Loan Portfolio Period Ended $ Increase % Increase Loan Category 9/30/2022 6/30/2022 (Decrease) (Decrease) ($ in millions) Commercial and industrial $ 1,537 $ 1,511 $ 26 1.7 % Paycheck Protection Program ("PPP") loans 11 30 (19) (63.3)% Commercial real estate 7,678 7,792 (114) (1.5) % Commercial cons
Slide 6: Loan Highlights
Loan Highlights Commercial Loans (1) ($ in millions) Residential & Home Equity Closings ($ in millions) Q3 2022 commitments closed $522 Residential real estate $186 Approved pipeline $383 (1) Amounts shown above exclude small business category Home equity 112 Total $298 PPP Loan Summary ($ in millio
Slide 7: Deposit Balances
Deposit Balances Period Ended $ Increase % Increase Deposit Product Type 9/30/2022 6/30/2022 (Decrease) (Decrease) ($ in millions) Noninterest-bearing demand deposits $ 5,622 $ 5,562 $ 60 1.1 % Savings and interest checking accounts 6,094 6,348 (254) (4.0) % Money market deposits 3,444 3,419 25 0.7
Slide 8: Net Interest Margin Analysis
Net Interest Margin Analysis Q3 2022 Q2 2022 Volume Interest Margin Volume Interest Margin Impact Impact ($ in millions) Reported Total $ 17,852.9 $ 163.6 3.64 % $ 17,877.5 $ 145.8 3.27 % Core adjustments: PPP volume @1% (20.1) — (61.0) (0.1) PPP fee amort (0.4) (1.8) Total PPP impact (20.1) (0.4) (
Slide 9: Asset Quality
Asset Quality COVID-19 Deferrals by Modification Type Deferral of Total % Principal Only Portfolio Deferral ($ in millions) Commercial real estate (1) $ 193 $ 8,863 2.2 % Other portfolios — 4,837 —% Total active deferrals as of September 30, 2022 $ 193 $ 13,700 1.4 % COVID-19 Deferrals Maturity Sche
Slide 10: Noninterest Income
Noninterest Income Three Months Ended Investment management: Focal Point September 30 June 30 Noninterest Income 2022 2022 ($ in thousands) Deposit account fees $6,261 $5,828 Interchange and ATM fees 4,331 4,027 Investment management 8,436 9,329 Mortgage banking income 585 1,042 Increase in cash sur
Slide 11: Noninterest Expense
Noninterest Expense Three Months Ended September 30 June 30 Noninterest Expense 2022 2022 ($ in thousands) Salaries and employee benefits $52,708 $49,538 Occupancy and equipment expenses 12,316 11,637 Data processing and facilities management 2,259 2,247 FDIC assessment 1,677 1,743 Other noninterest
Slide 12: 2022 Fourth Quarter Guidance
2022 Fourth Quarter Guidance • Total loans are expected to stay relatively flat Loan Growth • Core deposits are expected to stay relatively flat Deposit Growth • Time deposits are expected to decrease modestly • Asset sensitivity is expected to benefit net interest income and margin due to recent an
Slide 13: Appendix A: Non-GAAP Reconciliation of Earnings Metrics
Appendix A: Non-GAAP Reconciliation of Earnings Metrics The following table reconciles net income and diluted EPS, which are GAAP measures, to operating earnings and diluted EPS on an operating basis, which are Non-GAAP measures, as well as the average tangible common equity used to calculate return
Slide 14: Appendix B: Non-GAAP Reconciliation of Earnings Metrics
Appendix B: Non-GAAP Reconciliation of Earnings Metrics The following table summarizes the impact of noncore items on the Company's calculation of noninterest income and noninterest expense, as well as the impact of noncore items on interest income as a percentage to total revenue and the efficiency