Independent Bank Corporation · NASDAQ:IBCP
Independent Bank — Shareholder Meeting (April 2023)
24 slides from Independent Bank's shareholder meeting presentation, Apr 25, 2023
Slide 1: Independent Bank Corporation 2023 Annual Shareholder Meeting
Independent Bank Corporation 2023 Annual Shareholder Meeting April 25, 2023
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements This presentation contains forward-looking statements, which are any statements or information that are not historical facts. These forward-looking statements include statements about our anticipated future revenue and expenses and our future plan
Slide 3: Today's Agenda
Today’s Agenda • Welcome and Call to Order – IBC Chairman • Voting upon matters listed in the Company’s 2023 Proxy Statement – IBC Chairman • Business Update - IBC President & CEO • Question and answer session – IBC President & CEO and IBC EVP & CFO • Adjournment 3
Slide 4: IBC Board of Directors
IBC Board of Directors 4 • Director Since: 2013 • President & CEO of IBC and Independent Bank • Director Since: 2019 • Founder & CEO of OpTech, LLC and OpTech Solutions • Member of the Audit Committee • Director Since: 2014 • CEO of UFP Industries, Inc. (NASDAQ: UFPI) • Member of the Compensation Co
Slide 5: IBC Executive Management Team
IBC Executive Management Team 5 • CEO of IBC and Independent Bank since 2013 • Joined Independent Bank in 1994 • Began career with Crowe William B. Kessel President, CEO & Director • Joined Independent Bank in 2020 as EVP and Chief Financial Officer • Previously SVP, Chief Financial Officer of STAR
Slide 6: 2023 Annual Meeting of Shareholders
2023 Annual Meeting of Shareholders • Secretary for the meeting (Gavin A. Mohr) • Record date: February 24, 2023 • Approximate distribution date of Proxy Statement: March 6, 2023 • Shares entitled to vote: 21,280,992 • Determination of quorum • Voting on proposals 6
Slide 7: Proposal #1 - Election of Directors
2 Proposal #1 - Election of Directors – Nominees for a three-year term expiring 2026 7 Stephen L. Gulis Jr. William B. Kessel Terance L. Beia
Slide 8: Proposal #2 - Ratification of the Appointment of Independent Auditors
Proposal #2 - Ratification of the Appointment of Independent Auditors • Crowe, LLP has served as IBC’s independent registered public accounting firm since 2005. • Crowe, LLP was founded in 1942 and is one of the 10 largest accounting and consulting firms in the U.S. • IBC is served primarily by Crow
Slide 9: Proposal #3 - Advisory Vote on Executive Compensation
Proposal #3 - Advisory (Non-Binding) 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. 9
Slide 10: Business Update
Brad Kessel President & CEO Business Update
Slide 11: 2022 Full Year Financial Highlights
2022 Full Year Financial Highlights 11 • Record pre-tax earnings of $77.8 million • Net income and diluted earnings per share of $63.4 million and $2.97 • Annualized return on average assets and on average equity of 1.31% and 18.41%. • Paid cash dividends of $0.88 per share, a 5% increase over prior
Slide 12: Track Record of Consistent Growth & Profitability
Track Record of Consistent Growth & Profitability 12
Slide 13: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity 13 • Loan growth of $560.3 million, a 19.3% increase from the prior year –Commercial loan growth of $263.3 million (21.9%) –Mortgage loan growth of $228.8 million (20.1%) –Consumer loan growth of $68.3 million (12.2%) • Deposit growth (excluding brokered time depos
Slide 14: Strong Credit Quality
Strong Credit Quality 14 For the Year Ended December 31, 2022 ($M except per share data) Asset Quality 2017 2018 2019 2020 2021 2022 NPAs/Assets 0.35% 0.29% 0.32% 0.21% 0.11% 0.08% NPAs/Loans + OREO 0.49% 0.38% 0.42% 0.32% 0.18% 0.11% Reserves/Total Loans 1.12% 0.96% 0.96% 1.3% 1.63% 1.51% NCOs/Avg.
Slide 15: Strong Capital Position
Strong Capital Position Strong Capital Position 15 Independent Bank Corporation
Slide 16: Digital Transformation Continues
Digital Transformation Continues 16
Slide 17: Market Expansion
17Market Expansion The Holland Commercial Team
Slide 18: A Look Forward
A Look Forward 18 Growth Process Improvement Talent Risk & Cost Controls Management Management
Slide 19: Voting Results
Voting Results • Shares entitled to vote: 21,280,992 • Proposal #1 – Election of Directors • Proposal #2 – Ratification of Auditors • Proposal #3 – Advisory (Non-Binding) Vote on Executive Compensation 19Independent Bank Corporation - 2023 Annual Shareholders Meeting
Slide 20: Thank you for attending!
Thank you for attending!
Slide 21: Appendix Non-GAAP Reconciliations
21Appendix Non-GAAP Reconciliations
Slide 22: Pre-Tax, Pre-Provision Income and Performance Ratios
22 2022 2021 2020 2019 2018 2017 Net interest income $ 149,561 $ 129,765 $ 123,612 $ 122,581 $ 113,282 $ 89,186 Non-interest income 61,909 76,643 80,745 47,736 44,815 42,533 Non-interest expense 128,341 131,023 122,413 111,733 107,461 92,082 Pre-Tax, Pre-Provision Income 83,129 75,385 81,944 58,584
Slide 23: Reconciliation of Non-GAAP Financial Measures
23 Reconciliation of Non-GAAP Financial Measures 2022 2021 2020 2019 2018 2017 Net Interest Margin, Fully Taxable Equivalent ("FTE") Net interest income 149,561$ 129,765$ 123,612$ 122,581$ 113,282$ 89,186$ Add: taxable equivalent adjustment 1,878 1,866 823 423 510 1,123 Net interest income - taxable
Slide 24: Reconciliation of Non-GAAP Financial Measures (continued)
24 Reconciliation of Non-GAAP Financial Measures (continued) Independent Bank Corporation Tangible Common Equity 2022 2021 2020 2019 2018 2017 Common shareholders' equity 347,596$ 398,484$ 389,522$ 350,169$ 338,994$ 264,933$ Less: Goodwill 28,300 28,300 28,300 28,300 28,300 - Other intangibles 2,551