Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Q2 2023 Earnings Presentation
17 slides from Independent Bank's earnings presentation, Jul 21, 2023
Slide 1: Independent Bank Corp. Q2 2023 Earnings Presentation
Exhibit 99.2 Independent Bank Corp. (INDB) (parent of Rockland Trust Company) Q2 2023 Earnings Presentation July 21, 2023
Slide 2: Company Overview
Company Overview Strong, Resilient Franchise; Well Positioned for Growth • Strong, liquid balance sheet • Significant capital buffer Safe & Sound • • Diversified, low-cost deposit base Experienced commercial lender with conservative credit culture • Proven operator and acquiror • Full suite of retai
Slide 3: Q2 2023 Financial Highlights
Q2 2023 Financial Highlights Key Metrics Highlights $ 62.6M • Disciplined loan growth Net Income • Stabilizing deposit balances $ 1.42 • Core NIM* at 3.52%, down 26 basis points Diluted EPS • Wealth AUA increased to $6.3 billion 1.29% • Solid fee income growth ROAA • Asset quality remains solid 8.78
Slide 4: Deposit Balances
Deposit Balances ($ in millions) Period Ended $ Increase % Increase Deposit Product Type 6/30/2023 3/31/2023 (Decrease) (Decrease) Noninterest-bearing demand deposits $ 4,861 $ 5,084 $ (223) (4.4)% Savings and interest checking deposits 5,525 5,639 (114) (2.0)% Money market deposits 3,066 3,094 (28)
Slide 5: Uninsured Deposits
Uninsured Deposits Period Ended 6/30/2023 3/31/2023 $ % of $ % of Amount Deposits Amount Deposits ($ in millions) Rockland Trust Bank deposits* $ 15,658 $ 15,570 Deposits > $250,000 $ 6,802 43.4 % $ 6,913 44.4 % Estimated insured > $250,000 (2,189) (2,230) Estimated uninsured before collateralized d
Slide 6: Liquidity
Liquidity ($ in millions) Interest Earning Cash On Balance Sheet Liquidity Q2 2023 Q1 2023 Beginning Balance $ 322 $ 177 Major Sources Proactive borrowing (200) 300 Share repurchase funding — 120 Other borrowings 200 459 Securities cash flow 74 44 Major Uses Increase in loans (192) (19) Decrease in
Slide 7: Securities Portfolio
Securities Portfolio Available for Sale (AFS) Held to Maturity (HTM) Unrealized Unrealized Portfolio Composition as of June 30, 2023 Book Value Fair Value Gain/(Loss) Book Value Fair Value Gain/(Loss) ($ in millions) U.S. government agency securities $ 231 $ 202 $ (28) $ 30 $ 28 $ (2) U.S. treasury
Slide 8: Loan Balances
Loan Balances ($ in millions) Period Ended $ Increase % Increase Loan Category 6/30/2023 3/31/2023 (Decrease) (Decrease) Commercial and industrial $ 1,723 $ 1,650 $ 73 4.4 % Commercial real estate 7,813 7,820 (7) (0.1)% Commercial construction 1,023 1,046 (23) (2.2)% Small business 237 226 11 4.9 %
Slide 9: Loan Portfolios
Loan Portfolios C&I Portfolio CRE & Construction Portfolio $1.7 billion $8.8 billion All Other (11 All Other - 6.8% Sectors) - 20.4% Healthcare - 2.8% Retail Trade - 21.6% Hotels/Motels - 8.1% Professional, Residential - Scientific, and Related - 37.5% Technical Industrial Services - 4.6% Warehouse
Slide 10: Focal Point: Non-Owner Occupied CRE Office
Focal Point: Non-Owner Occupied CRE Office (inclusive of construction) CRE Office - Total Portfolio ($ in millions) June 30, 2023 March 31, 2023 CRE - Mixed use $ 401 $ 387 CRE - Office: owner occupied 201 218 CRE - Office: non-owner occupied 1,068 1,057 Focus Point: Non-owner Occupied CRE Office As
Slide 11: Asset Quality
Asset Quality Nonperforming Loans Net Charge-offs/(Recoveries) ($ in millions) ($ in millions) 0.67% $56.0 $54.9 $56.2 $60 $30 0.70% $45.7 0.60% 0.40% 0.41% $23.5 0.50% 0.40% $20 0.39% 0.40% $30 0.30% 0.30% $10 0.32% 0.20% $0.4 $0.5 0.10% $0 $0.0 $0 0.00% 0.01% 0.02% 0.00% Q3 2022 Q4 2022 Q1 2023 Q2
Slide 12: Net Interest Margin Analysis
Net Interest Margin Analysis Q2 2023 Q1 2023 Net Interest Margin Volume Interest Margin Volume Interest Margin 3.90% 3.85% Impact Impact 3.79% ($ in millions) 3.80% 3.82% Reported Total $ 17,391.7 $ 153.7 3.54% $ 17,124.1 $ 160.1 3.79% 3.78% Acquisition fair value 3.70% marks: 3.64% Loan accretion (
Slide 13: Noninterest Income
Noninterest Income Investment management: Focal Point ($ in thousands) Three Months Ended June 30 March 31 Assets Under Administration Noninterest Income 2023 2023 $6,304 $6,145 Deposit account fees $ 5,508 $ 5,916 $6,000 $5,793 $ in millions Interchange and ATM fees 4,478 4,184 $5,092 Investment ma
Slide 14: Noninterest Expense
Noninterest Expense ($ in thousands) Three Months Ended June 30 March 31 Noninterest Expense 2023 2023 Salaries and employee Efficiency Ratio - GAAP Basis benefits $ 53,975 $ 56,975 60.00% Occupancy and equipment expenses 12,385 12,822 52.13% 50.00% 52.69% Data processing and 48.60% facilities manag
Slide 15: 2023 Forward Guidance
2023 Forward Guidance Loans • Flat overall loan balances expected for second half 2023 • Deposit pricing expected to remain elevated; • Composition: expected continued migration from noninterest- Deposits bearing to interest-bearing • Total deposit balances expected to stabilize Borrowings • Balance
Slide 16: 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 17: 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 may include operating net income and operating earnings per share ("EPS