Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Investor Presentation (May 2012)
27 slides from Independent Bank's investor presentation, May 7, 2012
Slide 1: May 7, 2012
May 7, 2012 Christopher Oddleifson President & Chief Executive Officer Denis K. Sheahan Chief Financial Officer
Slide 2: Who We Are
Who We Are • Main Sub: Rockland Trust • Market: Eastern Massachusetts • Loans: $3.9 B • Deposits: $3.9 B • $AUA: $2.0 B • Equity: $0.5 M • NASDAQ: INDB
Slide 3: Key Messages
Key Messages • Business lines generating robust volumes • Solid, high-quality earnings performances • Steadily expanding market presence • Aggressively promoting brand and new products • Investing for growth in high priority businesses • Disciplined risk management culture • Strong tangible and regu
Slide 4: Company Footprint
Company Footprint 67 Branches Mortgage Banking Centers 10 Commercial Banking Centers Investment Management Centers Market Share % of INDB Dep. Market Share % of INDB Dep. Market Share % of INDB Dep. Plymouth County Barnstable County (Cape Cod) Norfolk County Rank 2011 Rank 2011 Rank 2011 16.7% 45% 1
Slide 5: 2011 Accomplishments
2011 Accomplishments • Operating E.P.S. up 12% in 2011 (+ 33% in 2010) • Excellent commercial loan and core deposit growth • Expanded breadth and depth of commercial franchise • New household acquisition grew by 51% • Investment Management growth: Rev. ? 15%, $AUA ? 5% • All capital ratios and TBV r
Slide 6: Financial Results
Financial Results Fundamentals in Excellent Shape • Robust C&I loan growth • Core dep. up to 84% • Growing wealth mgmt. • Excellent asset quality • Strong capital • ROA 1.0% Diluted EPS $1.43 $1.90 $2.12 $0.52 $0.56
Slide 7: Robust Core Business Generation
Robust Core Business Generation ($ Millions) Comm’l Loan Originations Consumer Loan Originations (Resi’s & Home Eq.)
Slide 8: Strong Commercial and Industrial Loan Growth
Strong Commercial and Industrial Loan Growth Adding High Quality Corporate Customers
Slide 9: Commercial Banking Recent Growth Initiatives
Commercial Banking Recent Growth Initiatives • Hired experienced team of asset-based lenders • Opened new commercial office in Providence – Includes wealth mgmt. services • Added senior C&I lender in Boston market • Expanded retirement plan service outreach to small businesses
Slide 10: Attractive Earning Asset Mix
Attractive Earning Asset Mix Securities & ST Investments Resi Mtges Home Eq Other Consumer Comm'l Loans Shift Towards Higher Yielding Assets 10
Slide 11: Improved Funding Mix Lower Cost Deposits
Improved Funding Mix Lower Cost Deposits TOTAL DEPOSITS 1Q12 $3.9 B AVERAGE COST—TOTAL DEP: 0.29% Very Focused On Containing Deposit Costs
Slide 12: Net Interest Margin
Net Interest Margin Fairly steady over various rate cycles Current low rate environment adding pressure
Slide 13: Disciplined Credit Culture
Disciplined Credit Culture • Longstanding underwriting conservatism • Loan portfolio based within footprint • In-depth knowledge of local markets • No wholesale originations of any loan type • Workout team in place for 20 years • Expedited problem loan resolution
Slide 14: Asset Quality – No Drama
Asset Quality – No Drama NPL’s Net Chargeoffs ($ Millions) ($ Millions)
Slide 15: Strong Loan Loss Reserves
Strong Loan Loss Reserves Reserves a Healthy Multiple of Loss Rate
Slide 16: Strong Capital
Strong Capital Tier 1 Leverage % (Year end) Tangible Common % (1) Tangible Book Value (1) • All capital growth internally generated • No external capital raising • No dividend cuts (1) 16 Includes tax deductibility of certain goodwill
Slide 17: Attentive to Shareholder Returns
Attentive to Shareholder Returns Cash Dividends Per Share
Slide 18: Investment Management – High Priority Growth Business
Investment Management – High Priority Growth Business • Transformed business in 2004 – tripled in size since • Strong feeder business from bank • Proprietary and 3rd party fund offerings • Strong intermediary network • Expanding outreach and talent
Slide 19: Investment Management – High Priority Growth Business
PAGE 19 NOT PASTE Investment Management – High Priority Growth Business • Growing source of fee revenues • Natural fit with client base • Expanded investment offerings • Professionally managed
Slide 20: Sustaining Business Momentum
Sustaining Business Momentum Business Line Focal Points • Expand Market Presence • Grow C&I Client Base • Expand Specialty Products, e.g. ABL • Continue to Drive Household Growth • Expand Electronic Banking Platform • Optimize Branch Network • Capitalize on Strong Market Demographics • Target COI Op
Slide 21: Building Franchise Value
Building Franchise Value Disciplined Acquisitions Fleet Falmouth Slade’s Ferry Benjamin BANK Divest. Bancorp Bancorp Franklin Bancorp. Aug ‘00 Jul ‘04 Mar ‘08 Apr ‘09 $336mm Deposits $158mm Assets $610mm Assets $998mm Assets $135mm Loans $137mm Deposits $409mm Deposits $653mm Deposits 16 Branches 4
Slide 22: 2012 Outlook – Key Expectations
2012 Outlook – Key Expectations Loan Growth +6 – 7% Led by commercial and home equity Deposits +4 – 6% Continued core deposit growth Net Chargeoffs $9 – 12 MM Provision $10 – 14 MM Net Int. Margin FY: Mid 3.70s% Q1 margin of 3.82% Q4 3.70% Non-Interest Inc. Flattish Invest. mgmt. ?, Mort. rev. ? NIE
Slide 23: INDB – Investment Merits
INDB – Investment Merits • High quality franchise in attractive markets • Strong on-the-ground business volumes • Operating platform that can be leveraged further • Investing for growth in competitive strengths • Balance sheet equipped to deal with uncertainty • Grounded management team • Aligned wi
Slide 24: NASDAQ Ticker: INDB
NASDAQ Ticker: INDB www.rocklandtrust.com Denis Sheahan—CFO Shareholder Relations: Jennifer Kingston (781) 878-6100 Statements contained in this presentation that are not historical facts are “forward-looking statements” that are subject to risks and uncertainties which could cause actual results to
Slide 25: Appendix
INDEPENDENT Parent of Rockland Trust Appendix
Slide 26: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio Well Diversified Avg Loan Size: $650 thou Largest CRE Credit: $13 mil Non-Construction Related $2.0 Billion as of 3/31/12 Non-Performing
Slide 27: Commercial & Industrial Portfolio
Commercial & Industrial Portfolio Diversification $0.6 Billion as of 3/31/12