Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Q2 2022 Earnings Presentation
14 slides from Independent Bank's earnings presentation, Jul 22, 2022
Slide 1: Q2 2022 Earnings Presentation
Exhibit 99.2 Q2 2022 Earnings Presentation July 22, 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 Q2 2022: Key Operating Metrics Q2 2022 • 4.9% annualized net loan growth, excluding PPP runoff Net Income (in millions) $ 61.8 • Improved core NIM** when excluding Diluted Earnings Per Share $ 1.32 purchase accounting and PPP related impact Return on Average Assets 1.24% •
Slide 5: Loan Portfolio
Loan Portfolio $181 $13,676 $13,580 $607 $(13) $ in millions $13,000 $(610) $(69) Balance Amortization/Attrition PPP Loan New Funding Line Utilization Other Balance 3/31/2022 Paydowns Change 6/30/2022 Period Ended $ Increase % Increase Loan Category 6/30/2022 3/31/2022 (Decrease) (Decrease) ($ in mi
Slide 6: Loan Highlights
Loan Highlights Commercial Loans (1) ($ in millions) Residential & Home Equity Closings ($ in millions) Q2 2022 commitments closed $557 Residential real estate $244 Approved pipeline $372 (1) Amounts shown above exclude small business category Home equity 154 Total $398 PPP Loan Summary ($ in millio
Slide 7: Deposit Balances
Deposit Balances Period Ended $ Increase % Increase Deposit Product Type 6/30/2022 3/31/2022 (Decrease) (Decrease) ($ in millions) Noninterest-bearing demand deposits $ 5,562 $ 5,537 $ 25 0.5 % Savings and interest checking accounts 6,348 6,248 100 1.6 % Money market deposits 3,419 3,580 (161) (4.5)
Slide 8: Net Interest Margin Analysis
Net Interest Margin Analysis Q2 2022 Q1 2022 Margin Margin Volume Interest Volume Interest Impact Impact ($ in millions) Reported Total $ 17,877.5 $ 145.8 3.27 % $ 18,189.6 $ 138.4 3.09 % Core adjustments: PPP volume @1% (61.0) (0.1) (148.4) (0.4) PPP fee amort (1.8) (3.4) Total PPP impact (61.0) (1
Slide 9: Asset Quality
Asset Quality Nonperforming Loans Net Charge-offs/(Recoveries) ($ in millions) ($ in millions) 0.80% $56.6 $55.9 $60 $10 0.20% $45.8 $27.8 $5 0.10% 0.40% 0.52% $30 0.42% 0.41% 0.01% 0.01% 0.00% $0 0.00% 0.20% $0.1 $(2.4) $0.4 $0.2 0.00% $0 Q3 2021 Q4 2021 Q1 2022 Q2 2022 $(5) (0.09)% (0.10)% NPLs ($
Slide 10: Noninterest Income
Noninterest Income Three Months Ended Investment management: Focal Point June 30 March 31 Assets Under Administration Noninterst Income 2022 2022 $5,726 $5,725 ($ in thousands) $ in millions Deposit account fees $5,828 $5,493 $5,435 $5,000 $5,157 Interchange and ATM fees 4,027 3,609 Investment manag
Slide 11: Noninterest Expense
Noninterest Expense Three Months Ended Efficiency Ratio - GAAP Basis 77.20% June 30 March 31 80.00% Noninterest Expenses 2022 2022 ($ in thousands) 70.00% Salaries and employee 62.14% benefits $49,538 $48,711 60.00% 58.34% Occupancy and equipment 52.42% expenses 11,637 13,302 50.00% Data processing
Slide 12: Full Year 2022 Guidance
Full Year 2022 Guidance • Total commercial: Flat to low single digit % growth expected in the 2nd half 2022, resulting in a relatively flat to low single digit % decrease in balances for the full year including attrition of Meridian balances and PPP runoff; Loan Growth • Residential real estate: mid
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