Independent Bank Corp. · NASDAQ:INDB
Independent Bank — 2012 Keefe, Bruyette & Woods Community Bank Investor Conference
27 slides from Independent Bank's conference presentation, Mar 1, 2012
Slide 1: 2012 Keefe, Bruyette & Woods Community Bank Investor Conference
Exhibit 99.1 2012 Keefe, Bruyette & Woods Community Bank Investor Conference March 1, 2012 Christopher Oddleifson President & Chief Executive Officer Denis K. Sheahan Chief Financial Officer
Slide 2: Who We Are
• Main Sub: Rockland Trust • Market: Eastern Massachusetts • Loans: $3.8 B • Deposits: $3.9 B • $AUM: $1.7 B • Equity: $0.5 B • NASDAQ: INDB Who We Are
Slide 3: Key Messages
• Business lines generating robust volumes • Solid, high-quality earnings performances • Steadily expanding customer base • Investing for growth in high priority businesses • Aggressively promoting brand and new products • Disciplined risk management culture • Strong tangible and regulatory capital
Slide 4: Company Footprint
Company Footprint 67 Branches 4 Mortgage Banking Centers 10 Commercial Banking Centers 4 Investment Management Centers % of INDB Dep. % of INDB Dep. % of INDB Dep. Rank 2011 Rank 2011 Rank 2011 16.7% 45% 10.2% 16% 3.6% 19% Rank 2011 Rank 2011 Rank 2011 5.2% 14% 0.3% 1% 0.4% 4% Worcester County Marke
Slide 5: 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%, $AUM 5% • All capital ratios and TBV rose in 2011 • Fitch upgra
Slide 6: Financial Results
28.0 40.3 45.5 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 nearing 1.0% Diluted EPS $1.43 $1.90 $2.12 +13% +44% Operating Earnings ($ Millions) 2009 2010 2011
Slide 7: Robust Core Business Generation
587 428 401 617 Robust Core Business Generation ($ Millions) +11% CAGR +8% CAGR 12/11 vs. 12/11 vs. 8% 8% annualized 20% 29% annualized Comm’l Loan $ Bal. Home Equity $ Bal. Comm’l Loan Originations Consumer Loan Originations (Resi’s & Home Eq.) 2008 2011 2008 2011
Slide 8: Strong Commercial and Industrial Loan Growth
271 374 503 576 Strong Commercial and Industrial Loan Growth ( $ Bal. - mil. ) Adding High Quality Corporate Customers Yr. end +29% CAGR (25% ex acquisitions) 2008 2009 2010 2011
Slide 9: 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 Commercial Banking Recent Growth Initiatives
Slide 10: Attractive Earning Asset Mix
16% 10% 15% 1% 58% 27% 16% 9% 11% 37 % Attractive Earning Asset Mix Shift Towards Higher Yielding Assets 2011 $4.5 B Securities & ST Investments Resi Mtges Home Eq Other Consumer Comm'l Loans 2005 $2.8 B
Slide 11: Improved Funding Mix
26% 20% 38% 16% Improved Funding Mix Lower Cost Deposits Core Deposits: 84% TOTAL DEPOSITS 4Q11 $3.9 B AVERAGE COST - TOTAL DEP: 0.31% Demand Deposits Money Market Savings/Now CD's Very Focused On Containing Deposit Costs
Slide 12: Net Interest Margin
Net Interest Margin Fairly steady over various rate cycles Current low rate environment adding pressure
Slide 13: Disciplined Credit Culture
• Longstanding underwriting conservatism • Loan portfolio based within footprint • In-depth knowledge of local markets • No wholesale originations of any loan type • Workout team in place for 20 years • Expedited problem loan resolution Disciplined Credit Culture
Slide 14: Asset Quality – No Drama
12.0 14.8 9.5 36.2 23.1 29.0 Asset Quality – No Drama NPL/Loan % 1.07% 0.65% 0.76% Loss Rate 38bp 43bp 26bp Yr. end 2009 2010 2011 NPL’s ($ Millions) 2009 2010 2011 Net Chargeoffs ($ Millions)
Slide 15: Strong Loan Loss Reserves
Strong Loan Loss Reserves Reserves a Healthy Multiple of Loss Rate Reflects Ben Franklin loans acquired at FV 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% Reserves/Loans Net Chargeoffs/Avg. Loans (annualized)
Slide 16: Strong Capital
Strong Capital (1) Includes tax deductibility of certain goodwill • All capital growth internally generated • No external capital raising • No dividend cuts
Slide 17: Attentive to Shareholder Returns
Attentive to Shareholder Returns
Slide 18: Investment Management – High Priority Growth Business
• Transformed business in 2004 – tripled in size since • Strong feeder business from bank • Proprietary and 3 rd party fund offerings • Strong intermediary network • Expanding outreach and talent Investment Management – High Priority Growth Business
Slide 19: Investment Management – High Priority Growth Business
Investment Management – High Priority Growth Business • Growing source of fee revenues • Natural fit with client base • Expanded investment offerings • Professionally managed $ mil. 2006 2011 Assets under Mgmt. $ + 102% 1,651 $ Revenues 6.1 $ + 121% 13.5 $
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
Disciplined Acquisitions $336mm Deposits $135mm Loans 16 Branches $158mm Assets $137mm Deposits 4 Branches $610mm Assets $409mm Deposits 9 Branches $998mm Assets $653mm Deposits 11 Branches IRS Sec. 1031 Like-Kind Exchange Services $200mm AUM Building Franchise Value BANK NON- BANK All Acquisitions
Slide 22: 2012 Outlook – Key Expectations
2012 Outlook – Key Expectations Loan Growth +6 – 8% Led by commercial and home equity Deposits +4 – 6% Continued core deposit growth Net Chargeoffs $9 – 12 MM Provision $10 – 14 MM Q1 3.80% Q4 3.65% Non-Interest Inc. Flattish Invest. mgmt. , Mort. rev. NIE + 2 – 3% Selective growth investing Tax Rat
Slide 23: INDB – Investment Merits
• High quality franchise in attractive markets • Strong on-the-ground business volumes • Investing for growth in competitive strengths • Operating platform that can be leveraged further • Balance sheet equipped to deal with uncertainty • Grounded management team • Aligned with shareholders – insider
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
Slide 25: Independent Bank Corp.
INDEPENDENT BANK CORP. Parent of Rockland Trust
Slide 26: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio Well Diversified Avg Loan Size: $641 thou Largest CRE Credit: $11 mil Non-Performing Loans/Loans: 0.70% Owner Occupied: 22% Commercial/ Retail 19% Industrial/ Warehouse 15% All Other 14% Apartment - Multifamily 14% Office 11% 1 to 4 Family Residential 8% Special Use
Slide 27: Commercial & Industrial Portfolio
Commercial & Industrial Portfolio Diversification Retail Trade 19% Real Estate and Rental and Leasing 18% Wholesale Trade 14% Manufacturing 11% Construction 9% Accommodation and Food Services 5% Health Care 5% Professional, Scientific, and Technical Services 4% All Other (12 Additional Sectors) 15%
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