Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Piper Jaffray Financial Services Conference 2018
22 slides from Independent Bank's conference presentation, May 15, 2018
Slide 1: Piper Jaffray Financial Services Conference
Exhibit 99.1 Piper Jaffray Financial Services Conference May 15, 2018 Robert Cozzone - Chief Financial Officer Mark Ruggiero - Controller and Principal Accounting Officer
Slide 2: Who We Are
Who We Are • Main Sub: Rockland Trust • Market: Eastern Massachusetts • Loans: $6.4B • Deposits: $6.8B • $AUA: $3.5B • Market Cap: $2.0B • NASDAQ: INDB (2)
Slide 3: Key Messages
Key Messages • Lengthy track record of consistent, solid performance • Healthy loan and core deposit originations • Growing fee revenue sources, esp. Investment Mgmt. • Expanding footprint in growth markets • Tangible book value steadily growing * • Steadily improving operating efficiency • Discipli
Slide 4: Expanding Company Footprint
Expanding Company Footprint % of Market Share INDB Dep. Plymouth County Rank 2017 1 22.9% 39% Norfolk County Rank 2017 5 4.8% 19% Barnstable County (Cape Cod) Rank 2017 4 11.2% 13% Bristol County Rank 2017 6 7.8% 12% Middlesex County Rank 2017 19 1.1% 10% Suffolk County Rank 2017 18 0.3% 4% Dukes Co
Slide 5: Recent Accomplishments
Recent Accomplishments • Five consecutive years of record operating earnings** • Capitalizing on expansion moves in vibrant Greater Boston market • Reached $3.5B in Assets Under Administration • Growth initiatives – new commercial products, new revitalized branches, expanded digital offerings, senio
Slide 6: Strong Fundamentals Driving Performance
Strong Fundamentals Driving Performance • Robust customer activity +16% CAGR • Core deposits at 90% • Fee revenues rising • Low funding costs • Low credit loss rates • Operating ROA at 1.4% • Accretive acquisitions +13% CAGR • TBV steadily growing* (6) * See appendix A for reconciliation **See appen
Slide 7: Vibrant Commercial Lending Franchise
Vibrant Commercial Lending Franchise Total Loans $6.4B Avg. Yield: 4.31% • Long-term CRE/C&I lender 1Q 2018 • Increased small business focus • Strong name recognition in local markets • Expanded market presence • New loans generated: $1B+ in '17 • Added senior leaders from competitors • Growing in s
Slide 8: Commercial Diversification
Commercial Diversification $3.5B as of 3/31/2018 $903M as of 3/31/2018 *Includes 1-4 Family, multifamily, Condos and Approved Land (8) **Non-Owner Occupied Commercial Real Estate divided by Total Capital
Slide 9: Low Cost Deposit Base
Low Cost Deposit Base Total Deposits $6.8B • Sizable demand deposit component 1Q 2018 • Valuable source of liquidity • Relationship-based approach • Expanded digital access • Growing commercial base (9)
Slide 10: Investment Management: Transformed Into High Growth Business
Investment Management: Transformed Into High Growth Business CAGR +12% • Successful business model • Growing source of fee revenues • Strong feeder business from Bank • Expanding investment center locations • Adding experienced professionals • Cross-sell opportunity in acquired bank CAGR markets +7%
Slide 11: Asset Quality: Well Managed
Asset Quality: Well Managed • Disciplined underwriter • Low loss rates • High average FICOs and low average LTVs in consumer book 6bps bps 2bps 1bps 1bps 0.8 0.3 0.3 (11)
Slide 12: Strong Capital Position
Strong Capital Position • Strong internal capital generation • No storehousing of excess capital • No external equity raising • No dividend cuts (12) * See appendix A for reconciliation
Slide 13: Well-Positioned for Rising Rates: Prudent Balance Sheet Management
Well-Positioned for Rising Rates: Prudent Balance Sheet Management (13)
Slide 14: Sustaining Business Momentum
Sustaining Business Momentum Business Line Focal Points • Expand Market Presence/Recruit Seasoned Lenders • Grow Client Base • Expand Specialty Products, e.g. ABL, Leasing • Lender Development Programs • Continue to Drive Household Growth • Expand Digital Offerings • Optimize Branch Network • Capita
Slide 15: Optimizing Retail Delivery Network
Optimizing Retail Delivery Network Recent optimization decisions include: • Utilize specialized analytics software/location model • Shift branch distribution • Close/consolidate 3 • Open 1 • Relocate 2 • Redesign 1 • Add 4 locations from Island Bancorp acquisition • Add 3 off-site ATMs and 1 branch
Slide 16: Expanded Presence in Vibrant Greater Boston
Expanded Presence in Vibrant Greater Boston Central Bancorp $357MM Deposits 10 Branches – Nov. 2012 Investment Management and Commercial Lending Center October 2013 Newton Branch January 2018 Peoples Federal Bancshares $432MM Deposits 8 Branches – Feb. 2015 (16) Long-Term Commercial Lender in Greate
Slide 17: Building Franchise Value: Disciplined Acquisitions
Building Franchise Value Disciplined Acquisitions Slade’s Ferry Benjamin Central Mayflower Peoples Federal Bancorp Franklin Bancorp Bancorp Bancorp Bancshares Mar '08 Apr '09 Nov '12 Nov '13 Feb '15 $630mm Assets $994mm Assets $537mm Assets $243mm Assets $640 mm Assets $411mm Deposits $701mm Deposit
Slide 18: Major Opportunities in Acquired Bank Markets
Major Opportunities in Acquired Bank Markets: Capitalizing on Rockland Trust Brand Commercial Banking Investment Management • Sophisticated products • $3.5 billion AUA • Extended capacity • Wealth/Institutional • In-depth market • Strong referral network knowledge Acquired Bank Customer Bases Retail
Slide 19: INDB Investments Merits
INDB Investments Merits • High quality franchise in attractive markets • Consistent, strong financial performance • Strong organic business volumes • Growing brand recognition • Operating platform that can be leveraged further • Capitalizing on in-market consolidation opportunities • Diligent stewar
Slide 20: Appendix A
Appendix A The following table reconciles Book Value per share, which is a GAAP based measure to Tangible Book Value per share, which is a non-GAAP based measure. It also reconciles the ratio of Equity to Assets, which is a GAAP based measure, to Tangible Equity to Tangible Assets, a non-GAAP measur
Slide 21: Appendix B
Appendix B 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 of the time periods indicated: 2015 2016 2017 Q1 2018 (Dollars in thousands, except per share data) Net income av
Slide 22: NASDAQ Ticker: INDB
NASDAQ Ticker: INDB www.rocklandtrust.com Robert Cozzone – CFO & EVP Consumer and Business Banking Shareholder Relations: (781) 982-6737 Statements contained in this presentation that are not historical facts are “forward-looking statements” that are subject to risks and uncertainties which could ca
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