Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Keefe, Bruyette & Woods Winter Financial Services Symposium 2022
23 slides from Independent Bank's conference presentation, Feb 17, 2022
Slide 1: KBW Winter Financial Services Symposium
Keefe, Bruyette & Woods Winter Financial Services Symposium February 17, 2022 Rob Cozzone - EVP and Chief Operating Officer Mark Ruggiero - Chief Financial Officer and Chief Accounting Officer
Slide 2: Who We Are
(2) Who We Are • Independent Bank Corp. (Nasdaq: INDB) ◦ Main Banking Sub: Rockland Trust (As of December 31, 2021) (Dollars in billions) Total Assets $20.4 Loans: $13.6 Deposits: $16.9 Wealth Management $5.7 Market Cap (as of February 11, 2022) $4.1
Slide 3: Key Messages - Core Franchise
(3) Key Messages - Core Franchise • Extensive history of strong financial performance • Expanding footprint in growth markets • Healthy loan and core deposit originations • Diversified fee income business lines • Proven integrator of acquired banks • Demonstrated resiliency in prior crises • Strong
Slide 4: Recent Accomplishments
(4) Recent Accomplishments • Record operating earnings in 2021 • Acquisition of Meridian Bancorp, Inc. and East Boston Savings Bank (EBSB) (assets $6.4B) • Strong new business generation despite pandemic • Record growth in business and consumer households • Record levels of wealth management assets
Slide 5: Expanding Company Footprint
(5) Source: SNL Financial; Deposit/Market Share data as of June 30, 2021 Expanding Company Footprint INDB Market Share* % of INDB Dep. Plymouth County Rank 2021 1 24.6% 36% Norfolk County Rank 2021 4 5.9% 18% Barnstable County (Cape Cod) Rank 2021 4 10.9% 10% Bristol County Rank 2021 5 8.3% 10.5% Mi
Slide 6: Meridian Bancorp Merger
(6) Meridian Bancorp Merger Successful Merger Completion Q4 2021 Key Deal Metrics (Dollars in billions) Total purchase price $ 1.3 Total assets acquired $ 6.4 Loans $ 4.9 Deposits $ 4.4 Cost saves achieved 45 % Tangible book value accretive 11.4 %
Slide 7: Acquisition Strategy: Driving Long Term Growth & Shareholder Value
(7) Acquisition Strategy: Driving Long Term Growth & Shareholder Value Proven Record of Value Add Transactions
Slide 8: Sustaining Business Momentum
(8) Sustaining Business Momentum Business Line • Extend Market Presence/Recruit Seasoned Lenders • Grow Client Base / Expanded Lending Capacity • Expand Specialty Products, e.g. ABL, Floorplan • Optimize Loan Origination Process • Continue to Drive Household Growth • Expand Digital Offerings • Exped
Slide 9: Financial Performance - Strong Fundamentals
(9) $129.8 $184.6 $121.7 $187.6 $4.69 $5.62 $3.66 $5.38 Operating Earnings Operating EPS 2018 2019 2020 2021 $0.0 $50.0 $100.0 $150.0 $200.0 $0 $2 $4 $6 $121.6 $165.2 $121.2 $121.0 $4.40 $5.03 $3.64 $3.47 Net Income Diluted EPS 2018 2019 2020 2021 $0.0 $25.0 $50.0 $75.0 $100.0 $125.0 $150.0 $1 $2 $3
Slide 10: Loan Commitment Originations
(10) Loan Commitment Originations * (Dollars in Millions) $2,676 $2,958 $3,494 Commercial Residential Mortgage Home Equity Business Banking 2019 2020 2021 Strong Business Volumes Despite Pandemic *Origination amounts presented above do not include loans associated with the Paycheck Protection Progra
Slide 11: Loan Portfolio - Commercial Diversification
(11) Total Commercial Real Estate Portfolio Residential - Related 29.2% Commercial Buildings 17.9%Office Buildings 15.8% Industrial Warehouse 10.3% Hotels/Motels 8.4% Strip Malls 7.5% All Other 10.9% Loan Portfolio - Commercial Diversification $9.2B as of 12/31/21 Total C&I Loan Portfolio**** Retail
Slide 12: Low Cost Deposit Base
(12) Low Cost Deposit Base Demand Deposits 32% Money Market 21% Savings/Now 38% CDs 9% Total Deposits $16.9B 4Q 2021 Core Deposits ($ Bil.) $6.6 $7.6 $9.8 $14.3 88.7% 79.9% 89.6% 84.5% Core Deposits Core to Total 2018 2019 2020 2021 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 0.0% 20.0% 40.0% 60.0% 8
Slide 13: Asset Sensitivity
(13) Asset Sensitivity Balance Sheet Position to benefit from rising rate environment
Slide 14: Investment Management: Transformed Into High Growth Business
(14) Investment Management: Transformed Into High Growth Business Longer Term Trends • Successful business model • Growing source of fee revenues • Strong feeder business from Bank AUAs ($ Bil.) $3.6 $4.6 $4.9 $5.7 2018 2019 2020 2021 • Expanding investment center locations • Adding experienced prof
Slide 15: Asset Quality: Well Managed
(15) • Disciplined underwriter • Low loss rates • High average FICOs and low average LTVs in consumer book • Proactive identification and resolution of problem loans C&I 12.4% Home Equity 13.6% CRE 39.1% Residential 33.0% Small Business 0.2% Other Consumer 1.8% Asset Quality: Well Managed NPLs ($Mil
Slide 16: Asset Quality: A Look Back
(16) Asset Quality: A Look Back • Strong credit results through prior financial crisis • Experienced management and loan workout team • Consistent and conservative credit philosophy
Slide 17: Credit Review - Loan Deferrals
(17) Credit Review - Loan Deferrals Deferrals by Modification Type: Deferral of Principal Only Total Portfolio % Deferral Commercial and industrial $ 560 $ 1,563,279 — % Commercial real estate (1) 382,535 9,157,801 4.2 % Business Banking — 193,189 — % Residential real estate — 1,604,686 — % Home equ
Slide 18: Strong Capital Position
(18) Book Value $38.23 $49.69 $51.65 $63.75 12.13% 14.99% 12.89% 14.78% 10.69% 11.28% 9.56% 12.40% Book Value Per Share Equity/Assets % Tier 1 Leverage 2018 2019 2020 2021 $0 $10 $20 $30 $40 $50 $60 0% 5% 10% 15% 20% 25% Strong Capital Position Tangible Book Value* $28.57 $34.11 $35.59 $42.25 9.35%
Slide 19: Near-Term Priorities
(19) Near-Term Priorities • EBSB integration and revenue opportunities • Liquidity/Capital Management • Balance sheet management - rising rate environment • Extending our presence in attractive Worcester market • Implementing nCino loan origination system • Maximizing use of Salesforce platform • Br
Slide 20: INDB Investment Merits
(20) INDB Investment Merits • High quality franchise in attractive markets • Consistent, strong financial performance • Strong organic business volumes • Growing brand recognition • Leverageable operating platform • Capitalizing on in-market consolidation opportunities • Diligent stewards of shareho
Slide 21: Appendix A: Non-GAAP Reconciliation of Capital Metrics
(21) Appendix A: Non-GAAP Reconciliation of Capital Metrics The following table reconciles Book Value per share, which is a GAAP based measure to Tangible Book Value per share, which is a non-GAAP based measure. It also reconciles the ratio of Equity to Assets, which is a GAAP based measure, to Tang
Slide 22: Appendix B: Non-GAAP Reconciliation of Earnings Metrics
(22) Appendix B: Non-GAAP Reconciliation of Earnings Metrics The following table reconciles net income and diluted EPS, which are GAAP measures, to operating earnings and diluted EPS on an operating basis, which are Non-GAAP Measures as of the time periods indicated: 2018 2019 2020 2021 (Dollars in
Slide 23: NASDAQ Ticker: INDB
(23) NASDAQ Ticker: INDB www.rocklandtrust.com Mark Ruggiero – CFO & Chief Accounting Officer Shareholder Relations: (781) 982-6737 Statements contained in this presentation that are not historical facts are “forward-looking statements” that are subject to risks and uncertainties which could cause a
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