Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Q4 2023 Earnings Presentation
16 slides from Independent Bank's earnings presentation, Jan 19, 2024
Slide 1: Independent Bank Corp. Q4 2023 Earnings Presentation
Exhibit 99.2 Independent Bank Corp. (INDB) (parent of Rockland Trust Company) Q4 2023 Earnings Presentation January 19, 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: Q4 2023 Financial Highlights
Q4 2023 Financial Highlights Key Metrics Highlights $ 54.8M • Disciplined loan growth Seasonal business deposit impact, stable consumer Net Income • balances $ 1.26 • Core NIM at 3.35% Diluted EPS • Nonperforming asset increase; minimal charge-offs/ loss exposure 1.13% • Solid fee income ROAA • Expe
Slide 4: Deposit Balances
Deposit Balances ($ in millions) Period Ended $ Increase % Increase Deposit Product Type 12/31/2023 9/30/2023 (Decrease) (Decrease) Noninterest-bearing demand deposits $ 4,567 $ 4,796 $ (229) (4.8)% Savings and interest checking deposits 5,299 5,398 (99) (1.8)% Primarily business Money market deposi
Slide 5: Liquidity
Liquidity Additional Borrowing Capacity ($ in millions) Period Ended Off Balance Sheet Liquidity 12/31/2023 9/30/2023 Federal Home Loan Bank ("FHLB") $ 1,578 $ 1,789 Federal Reserve 3,078 3,074 Unpledged securites 1,188 1,188 Lines of credit 85 85 Total borrowing capacity $ 5,929 $ 6,136 Estimated u
Slide 6: Securities Portfolio
Securities Portfolio Available for Sale (AFS) Held to Maturity (HTM) Unrealized Unrealized Portfolio Composition at December 31, 2023 Book Value Fair Value Gain/(Loss) Book Value Fair Value Gain/(Loss) ($ in millions) U.S. government agency securities $ 230 $ 207 $ (23) $ 30 $ 29 $ (1) U.S. treasury
Slide 7: Loan Balances
Loan Balances ($ in millions) Period Ended $ Increase % Increase Loan Category 12/31/2023 9/30/2023 (Decrease) (Decrease) Commercial and industrial $ 1,580 $ 1,653 $ (73) (4.4)% Commercial real estate 8,041 7,896 145 1.8 % Commercial construction 850 965 (115) (11.9)% Small business 252 245 7 2.9 %
Slide 8: Loan Portfolios
Loan Portfolios CRE & Construction Portfolio C&I Portfolio $8.9 billion $1.6 billion All Other (11 All Other - 6.7% Sectors) - 22.3% Healthcare - 2.7% Retail Trade - 22.1% Hotels/Motels - 8.1% Educational Residential - Services - 4.5% Industrial Related - 34.0% Warehouse - 12.6% Finance and Insuranc
Slide 9: Focal Point: Non-Owner Occupied CRE Office
Focal Point: Non-Owner Occupied CRE Office (inclusive of construction) CRE Office - Total Portfolio December 31, September 30, Key Portfolio Characteristics ($ in millions) 2023 2023 • Primarily Massachusetts based CRE - Mixed use, primarily office* $ 219 $ 219 • "Barbell" portfolio CRE - Office: ow
Slide 10: Asset Quality
Asset Quality Nonperforming Loans Net Charge-offs/(Recoveries) ($ in millions) ($ in millions) $56.2 $54.4 $60 $30 0.70% 0.67% $45.7 0.60% 0.40% $39.2 0.38% $23.5 0.50% 0.40% $20 $30 0.40% 0.30% 0.30% 0.28% $10 0.16% 0.32% 0.11% 0.20% $0 $0.5 0.10% $5.6 $3.8 Q1 2023 Q2 2023 Q3 2023 Q4 2023 $0 0.02%
Slide 11: Net Interest Margin Analysis
Net Interest Margin Analysis Net Interest Margin 12 Month Margin Outlook* 4.00% Positives 3.79% • Loan maturities/repricing - proceeds redeployed into higher 3.80% rate environment 3.78% • Securities maturities - proceeds redeployed into higher rate 3.54% assets or borrowings paydowns 3.60% 3.47% •
Slide 12: Noninterest Income
Noninterest Income Investment management: Focal Point ($ in thousands) Three Months Ended December 31 September 30 Assets Under Administration Noninterest Income 2023 2023 $7,000 $6,538 Deposit account fees $ 6,126 $ 5,936 $6,304 $6,145 $6,120 $ in millions Interchange and ATM $6,000 fees 4,638 4,80
Slide 13: Noninterest Expense
Noninterest Expense ($ in thousands) Three Months Ended December 31 September 30 Noninterest Expense 2023 2023 Salaries and employee Efficiency Ratio - GAAP Basis benefits $ 56,388 $ 54,797 70.00% Occupancy and equipment expenses 13,054 12,321 60.00% 56.87% 52.69% 53.31% Data processing and 50.00% f
Slide 14: 2024 Forward Guidance
2024 Forward Guidance • 2024 full year - low single digit percentage increase Loans • 2024 Q1: relatively flat balances • 2024 full year - low single digit percentage increase Deposits • 2024 Q1: low single digit percentage decrease • Balances expected to fluctuate based on loan, deposit and Borrowi
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