Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Q3 2024 Earnings Presentation
16 slides from Independent Bank's earnings presentation, Oct 18, 2024
Slide 1: Independent Bank Corp. Q3 2024 Earnings Presentation
Exhibit 99.2 Independent Bank Corp. (INDB) (parent of Rockland Trust Company) Q3 2024 Earnings Presentation October 18, 2024
Slide 2: Company Overview
Company Overview Strong, Resilient Franchise; Well Positioned for Growth • Strong balance sheet • Prudent interest rate and liquidity risk management Safe & Sound • • Significant capital buffer Diversified, low-cost deposit base • Experienced commercial lender with conservative credit culture • Prov
Slide 3: Q3 2024 Financial Highlights
Q3 2024 Financial Highlights Key Metrics Highlights • Net interest margin expansion of 4 bps to $ 42.9M 3.29% Net Income • Elevated provision for loan loss driven by one $ 1.01 large office loan Diluted EPS • Robust core deposit growth; average deposits 0.88% up $330 million (8.7% annualized) ROAA •
Slide 4: Deposit Balances
Deposit Balances ($ in millions) Period Ended Deposit Composition $ Increase/ % Increase/ Municipal Deposit Product Type Sept 30, 2024 June 30, 2024 (Decrease) (Decrease) 8.3% Noninterest-bearing demand deposits $ 4,520 $ 4,419 $ 101 2.3% Savings and interest checking 5,188 5,241 (53) (1.0)% Money m
Slide 5: Loan Balances
Loan Balances ($ in millions) Period Ended $ Increase/ % Increase/ Loan Category Sept 30, 2024 June 30, 2024 (Decrease) (Decrease) Commercial and industrial $ 1,578 $ 1,603 $ (25) (1.6)% Commercial real estate* 8,162 8,152 10 0.1% Commercial construction 742 787 (45) (5.7)% Small business 270 269 1
Slide 6: Asset Quality
Asset Quality Allowance for Credit Loss & Nonperforming Loans Delinquency Trends ($ in millions) 1.14% $120 1.00% 1.03% 1.05% $104.2 0.75% 1.00% 0.73% $54.4 $56.9 $57.5 0.52% 0.50% $60 0.44% 0.50% 0.37% 0.33% 0.38% 0.40% 0.40% 0.25% $0 0.00% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2023 Q1 2024 Q2 2024 Q3
Slide 7: Loan Portfolios
Loan Portfolios CRE & Construction Portfolio C&I Portfolio $8.9 billion(1) $1.6 billion Other - 6.6% All Other (10 Multi-family - 22.2% Sectors) - 22.1% Healthcare - 2.8% Professional, Retail Trade - 21.3% Scientific, and Residential Technical Retail - 18.2% related - 12.2% Services - 4.4% Lodging -
Slide 8: Focal Point: Non-Owner Occupied CRE Office
Focal Point: Non-Owner Occupied CRE Office (inclusive of construction) Total Maturity Schedule CRE & Construction Portfolio $8.9 billion Past Due 2024 2025 2026 2027 2028+ NOO Office 3% 5% 19% 11% 16% 46% ($1.04B) - 11.7% Short Term Maturity Review ($ in millions) 2024 Q4 2025 Q1 2025 Q2 Pass Rating
Slide 9: Focal Point: Multifamily CRE
Focal Point: Multifamily CRE Multifamily Portfolio Period Ended Composition Low Income ($ in millions) Sept 30, 2024 June 30, 2024 Mixed Use, Housing Tax Primarily Credit - 8.5% Residential - Total Balances $ 1,983.8 $ 1,961.9 31.0% Residential Apart. - Total Average Loan Size 2.7 2.6 Affordable Ave
Slide 10: Net Interest Margin Analysis
Net Interest Margin Analysis Net Interest Margin Total Loan Portfolio Rate Characteristics 3.40% 3.38% 30% Fixed Rate 3.29% 3.30% Floating Rate 43% 3.25% Variable Rate 3.23% 3.20% Q4 2023 Q1 2024 Q2 2024 Q3 2024 27% Time Deposit Maturities Loan Hedging Maturities (and weighted average rate) (and wei
Slide 11: Noninterest Income/Expense
Noninterest Income/Expense Noninterest Income Noninterest Expense ($ in thousands) Q3 2024 Q2 2024 Q3 2024 Q2 2024 Salaries and employee Deposit account fees $ 6,779 $ 6,332 benefits $ 60,108 $ 57,162 Interchange and ATM Occupancy and fees 4,970 4,753 equipment expenses 12,734 12,472 Investment mana
Slide 12: Focal Point: Investment Management and Advisory
Focal Point: Investment Management and Advisory ($ in thousands) Q3 2024 Q2 2024 % Change Assets under administration $7,161,264 $6,870,636 4.2% Asset based revenue 9,408 9,016 4.3% Other revenue: Retail commission revenue 1,053 985 Insurance commission revenue 316 368 Other advisory revenue 256 618
Slide 13: Securities Portfolio
Securities Portfolio Available for Sale (AFS) Held to Maturity (HTM) Unrealized Unrealized Portfolio Composition at September 30, 2024 Book Value Fair Value Gain/(Loss) Book Value Fair Value Gain/(Loss) ($ in millions) U.S. government agency securities $ 230 $ 214 $ (16) $ 28 $ 28 $0 U.S. treasury s
Slide 14: 2024 Forward Guidance
2024 Forward Guidance • 2024 full year: low single digit percentage increase expected Loans • 2024 Q4: low single digit percentage increase expected • 2024 full year: low to mid-single digit percentage increase expected Deposits • 2024 Q4: low single digit percentage increase expected Net Interest M
Slide 15: 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 16: 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