Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Q4 2024 Earnings Presentation
23 slides from Independent Bank's earnings presentation, Jan 17, 2025
Slide 1: Q4 2024 Earnings Presentation
Q4 2024 Earnings Presentation January 17, 2025 Exhibit 99.2
Slide 2: Company Overview
Company Overview Strong, Resilient Franchise; Well Positioned for Growth Safe & Sound Customer Centric • Strong balance sheet • Full suite of retail banking, commercial banking, • Prudent interest rate and liquidity risk and wealth product offerings management • Relationship-oriented commercial lend
Slide 3: Q4 2024 Financial Highlights
Q4 2024 Financial Highlights Key Metrics Highlights ($ in millions, except per share) • Solid loan growth (4.1% annualized) Q4’24 Q4’24 Q3’24 Q4’23 Operating(1) • Core net interest margin expansion of Net Income $50.0 $51.4 $42.9 $54.8 2 bps to 3.31%(2) Diluted EPS $1.18 $1.21 $1.01 $1.26 • Stable n
Slide 4: Deposit Balances
Deposit Balances ($ in millions) Period Ended Deposit Composition $ Increase % Increase Deposit Product Type Dec 31, 2024 Sep 30, 2024 (Decrease (Decrease) Municipal Noninterest-bearing demand 7.8% $ 4,391 $ 4,520 $ (129) (2.9)% deposits Savings and interest checking 5,208 5,188 20 0.4% Money market
Slide 5: Loan Balances
Loan Balances ($ in millions) Period Ended $ Increase % Increase Loan Category Dec 31, 2024 Sep 30, 2024 (Decrease) (Decrease) Commercial and industrial* $ 3,048 $ 2,947 $ 101 3.4% Commercial real estate* 6,756 6,793 (37) (0.5)% Commercial construction 782 742 40 5.4% Small business 282 270 12 4.4%
Slide 6: Asset Quality
Asset Quality Asset Quality Nonperforming Loans Commercial ($ in millions) Criticized & Classified Loans $104.2 $101.5 $120 ($ in millions) 6.00% 0.73% 0.70% $600.0 $578.1 $56.9 $57.5 $567.4 $60 $558.3 0.50% 5.36% $502.9 5.00% 0.40% 0.40% $500.0 5.21% 5.25% $486.3 $0 Q1 2024 Q2 2024 Q3 2024 Q4 2024
Slide 7: Asset Quality (continued)
Asset Quality (continued) Allowance for Credit Loss & Delinquency Trends 1.14% 1.17% 1.03% 1.05% 1.00% 0.60% 0.52% 0.50% 0.37% 0.33% 0.00% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Allowance for Credit Losses/Total Loans Delinquent Loans/Total Loans Charge-off and Provisioning Trends ($ in millions) $19.5 $20
Slide 8: Loan Portfolios
Loan Portfolios CRE & Construction Portfolio C&I Portfolio $7.5 billion $3.0 billion Other - 2.9% All Other (11 Sectors) - 22.3% Healthcare - 1.6% Retail Trade - 21.0% Multi-Family - 26.7% Educational Services - 5.5% Retail - 17.8% Real Estate/Rental Accommodation and and Leasing - 12.6% Lodging - 1
Slide 9: Focal Point | CRE Office (inclusive of construction)
Focal Point | CRE Office (inclusive of construction) CRE & Construction Maturity Schedule Portfolio Past ($ in millions) 2025 Q1 2025 Q2 2025 Q3 2025 Q4 2026 2027 2028+ Total $7.5 billion Due Other CRE & Construction - 85.8% Pass Rating $— $37.0 $22.0 $72.6 $12.4 $91.5 $157.9 $490.3 $883.7 Criticize
Slide 10: Focal Point | Multifamily CRE
Focal Point | Multifamily CRE Multifamily Portfolio Period Ended Composition Mixed Use, Low Income Primarily Housing Tax ($ in millions) Dec 31, 2024 Sep 30, 2024 Residential - Credit - 9.1% 30.6% Total Balances $ 2,016.2 $ 1,983.8 Residential Apart. - Affordable Total Average Loan Size 2.8 2.7 Hous
Slide 11: Net Interest Margin Analysis
Net Interest Margin Analysis Net Interest Margin Total Loan Portfolio Rate Characteristics 3.40% 3.33% 3.29% 3.23% 3.25% 3.31% Fixed Rate 30% 3.20% 3.29% 3.21% 3.24% Floating Rate 43% 3.00% Variable Rate Q1 2024 Q2 2024 Q3 2024 Q4 2024 Reported NIM Core NIM* 27% Time Deposit Maturities Loan Hedging
Slide 12: One Year Net Interest Margin Roadmap
One Year Net Interest Margin Roadmap 25bp Cut Annualized Estimated Repricing Impact Annualized Margin Impact Margin Impact Short Term (< 3 months) Cash 0bps (tied to Fed Funds) } Floating loans: 27% Fixed rate hedges: (6%) (4-5bps) Net loans: 21% Core Deposits: Estimated 20% beta 4bps Time Deposits
Slide 13: Noninterest Income/Expense
Noninterest Income/Expense Noninterest Income Noninterest Expense ($ in thousands) ($ in thousands) Q4 2024 Q3 2024 Q4 2024 Q3 2024 Deposit account fees $ 7,116 $ 6,779 Salaries and employee benefits $ 59,209 $ 60,108 Occupancy and equipment Interchange and ATM fees 4,880 4,970 13,399 12,734 expense
Slide 14: Focal Point | Investment Management and Advisory
Focal Point | Investment Management and Advisory ($ in thousands) Q4 2024 Q3 2024 % Change Assets under administration $7,035,315 $7,161,264 (1.8)% Asset based revenue 9,607 9,408 2.1% Other revenue: Retail commission revenue 760 1,053 Insurance commission revenue 90 316 Other advisory revenue 326 2
Slide 15: Securities Portfolio
Securities Portfolio Available for Sale (AFS) Held to Maturity (HTM) Unrealized Unrealized Portfolio Composition at December 31, 2024 Book Value Fair Value Book Value Fair Value Gain/(Loss) Gain/(Loss) ($ in millions) U.S. government agency securities $ 230 $ 210 $ (20) $— $— $— U.S. treasury securi
Slide 16: Overview of Enterprise Bancorp Acquisition
Overview of Enterprise Bancorp Acquisition Pro Forma Combined Company $25Bn $20Bn $19Bn $8.7Bn 151 $3.6Bn in Assets in Deposits in Loans of Wealth AUM Branches Market Cap Financially Attractive Acquisition Enterprise is a key addition to attractive Boston area franchise 16.2% GAAP EPS Accretion (202
Slide 17: 2025 Forward Guidance
2025 Forward Guidance The following guidance excludes the anticipated impact of the Enterprise acquisition: Loans • Low to mid-single digit percentage increase expected Deposits • Low to mid-single digit percentage increase expected • Expected margin expansion through 2025 of approximately 15 Net In
Slide 18: 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 19: 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
Slide 20: Additional Information
Additional Information ADDITIONAL INFORMATION AND WHERE TO FIND IT This communication is being made with respect to the proposed transaction involving Independent and Enterprise. This material is not a solicitation of any vote or approval of the Enterprise shareholders and is not a substitute for th
Slide 21: Appendix A - Reconciliation of Non-GAAP Earnings Metrics
Appendix A - Reconciliation of Non-GAAP Earnings Metrics (Unaudited, dollars in thousands) Three Months Ended December 31 September 30 December 31 2024 2024 2023 Net interest income (GAAP) $144,661 $141,703 $145,096 Noninterest income (GAAP) $32,191 $33,549 $32,067 Noninterest expense (GAAP) $106,42
Slide 22: Appendix B - Non-GAAP Reconciliation of Core Margin
Appendix B - Non-GAAP Reconciliation of Core Margin Three Months Ended December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 Margin Margin Margin Margin Margin Volume Interest Impact Volume Interest Impact Volume Interest Impact Volume Interest Impact Volume Interest Im
Slide 23: Appendix C - Reconciliation of Non-GAAP Capital Metrics
Appendix C - Reconciliation of Non-GAAP Capital Metrics December 31 September 30 December 31 (Unaudited, dollars in thousands, except per share data) 2024 2024 2023 Tangible common equity Stockholders’ equity (GAAP) $ 2,993,120 $ 2,977,148 $ 2,895,251 (a) Less: Goodwill and other intangibles 997,356