Independent Bank Corporation · NASDAQ:IBCP
Independent Bank — Shareholder Meeting (April 2011)
20 slides from Independent Bank's shareholder meeting presentation, Apr 26, 2011
Slide 1: Today's Agenda
2 3 4 5 Today’s Agenda Introductions Voting upon the matters listed in the Company’s 2011 Proxy Statement Presentation by IBC CEO and CFO Question and answer session IBC Board of Directors Jeffrey A. Bratsburg, Chairman Donna J. Banks, Ph.D. Stephen L. Gulis Jr. Terry L. Haske Robert L. Hetzler Mich
Slide 2: Proposal #2 Ratification of Auditors
6 Charles A. Palmer Terry L. Haske Stephen L. Gulis Jr. Proposal #2 Ratification of Auditors Crowe Horwath LLP has served as IBC’s independent registered public accounting firm since 2005 Crowe Horwath was founded in 1942 and is one of the ten largest accounting and consulting firms in the U.S. IBC
Slide 3: Proposals #3-5 and Management Transition Plan
7 8 9 10 11 Proposal #3 Advisory 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. Proposal #4 Amend Long-term Incentive Plan Our shareholders are being asked to
Slide 4: Safe Harbor Statement
13 14 15 Safe Harbor Statement This presentation may contain certain forward-looking statements within the meaning of the Private Securities Reform Act of 1995. Forward- looking statements include expressions such as “expects,” “intends,” “believes” and “should” which are statements of belief as to
Slide 5: Core deposits have grown by $94 million or 5% since the end of 2008
16 Core deposits have grown by $94 million or 5% since the end of 2008 Checking, savings and money market accounts have grown by 19% since 2008 For two consecutive years, we have earned a perfect “five” Power Circle ™ Rating for customer service in J.D. Power and Associates Retail Banking Satisfacti
Slide 6: Bank Regulatory Capital Ratios
17 The publisher of this graph is J.D. Power and Associates and the source is J.D. Power and Associates 2011 U.S. Retail Banking Satisfaction Study SM . Rankings are based on numerical scores, and not necessarily on statistical significance. JDPower.com Power Circle Ratings TM are derived from consu
Slide 7: Capital Plan Update
18 19 20 2 1 Capital Plan Update Major accomplishments in 2010: April 2010 – completed an exchange agreement with U.S. Treasury to exchange 72,000 shares of Series A preferred stock and $2.4 million of accrued and unpaid dividends into 74,426 shares of Series B cumulative mandatorily convertible pre
Slide 8: Net Income (Loss) Applicable to Common Stock
Net Income (Loss) Applicable to Common Stock
Slide 9: Net Income (Loss) Per Share Applicable to Common Stock
2 3 Net Income (Loss) Per Share Applicable to Common Stock
Slide 10: Select Components of Total Assets
2 4 Select Components of Total Assets
Slide 11: Although total loans have been declining
Although total loans have been declining $2.800 over the past three years, during 2010, the Bank made new loans or renewed 8 existing loans totaling $800 million. (s § 81.500 Includes $336 million of deposits at the Federal Reserve Bank earning 0.25% $1.000 3 o 8 g said $0.500 geeges & g BEES u ‘$0.
Slide 12: Analysis of Net Interest Income
2 6 Note: 2007 and 2006 data is presented on a tax equivalent basis. Analysis of Net Interest Income
Slide 13: Net interest income decline in 2010
$160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 go The decline in net interest income during 2010 was driven by the decrease in interest earning assets and a drop in the het interest margin. $123,197 $120,591 $138,523 $130,149 $111,653 em 52.580 2006 2007 == Net Interest Income (
Slide 14: Provision for Loan Losses
2 8 *Excludes loans classified as “troubled debt restructurings” that are still performing. Provision for Loan Losses
Slide 15: Dollars in 00's
Dollars in 00's $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 55% decline. w ¥ Ni 2007 2008 2009 2010
Slide 16: s 24% decline
$120,000 $100,000 s 24% decline $80,000 $ $60,000 Dollars in 000's $40,000 ra $20,000 se $0 2006 2009 2010
Slide 17: Allowance for Loan Losses
$90,000 $80,000 $70,000 $60,000 $50,000 $40,000 Dollars in 00's $30,000 $20,000 $10,000 $0 $26,879 2006 o 2007 2008 lEAllowance for Loan Losses $81,717 $67,915 2009 2010 =SALLat a% of Loans 4.00% 3.60% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00%
Slide 18: Tangible Common Equity
$250,000 $200,000 $150,000 $100,000 Dollars in 00's $50,000 $0 20.0095 78.66% = 80.00% 7 S713, Tangible book value per share of — 75 99, $4.38 as of 12/31/10. Valuation allowance on DTA is $8.37 per > 60.00% share as of 12/31/10. .. + 50.00% 37.35% » 40.00% $201,604 ‘ 30.00% 51584065 ‘ 20. ze 20.00%
Slide 19: Voting Results
34 Voting Results Shares entitled to vote: 7,860,849 Proposal #1 – Election of Directors Proposal #2 – Ratification of Auditors Proposal #3 – Advisory (Non-Binding) Vote on Executive Compensation Proposal #4 – Amendment of Long-term Incentive Plan Proposal #5 – Authorize 2,500,000 Additional Shares
Slide 20: Thank you
Thank you for attending. few Gx29 Independent Bank IndependentBank.com