Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Q1 2024 Earnings Presentation
16 slides from Independent Bank's earnings presentation, Apr 19, 2024
Slide 1: Independent Bank Corp. Q1 2024 Earnings Presentation
Exhibit 99.2 Independent Bank Corp. (INDB) (parent of Rockland Trust Company) Q1 2024 Earnings Presentation April 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: Q1 2024 Financial Highlights
Q1 2024 Financial Highlights Key Metrics Highlights $ 47.8M • Disciplined loan growth and solid pipelines Strong deposit growth with steady core household Net Income • formation $ 1.12 • Net interest margin of 3.23%, within expectations Diluted EPS • Stable nonperforming asset levels; minimal charge
Slide 4: Deposit Balances
Deposit Balances ($ in millions) Period Ended Deposit Composition March 31, December 31, $ Increase/ % Increase/ Municipal Deposit Product Type 2024 2023 (Decrease) (Decrease) 8.4% Noninterest-bearing demand deposits $ 4,470 $ 4,567 $ (97) (2.1)% Savings and interest checking 5,196 5,299 (103) (1.9)
Slide 5: Loan Balances
Loan Balances ($ in millions) Period Ended March 31, December 31, $ Increase/ % Increase/ Loan Category 2024 2023 (Decrease) (Decrease) Commercial and industrial $ 1,580 $ 1,580 $— —% Commercial real estate 8,109 8,041 68 0.8% Commercial construction 829 850 (21) (2.5)% Small business 262 252 10 4.0
Slide 6: Asset Quality
Asset Quality Nonperforming Loans Net Charge-offs ($ in millions) ($ in millions) $54.4 $56.9 $60 $30 0.70% 0.67% $45.7 0.40% 0.60% 0.40% $39.2 0.38% $23.5 0.50% $20 $30 0.40% 0.30% 0.28% $10 0.16% 0.30% 0.32% 0.11% 0.20% 0.01% 0.10% $0 $5.6 $0 $3.8 $0.3 0.00% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2023
Slide 7: Loan Portfolios
Loan Portfolios CRE & Construction Portfolio C&I Portfolio $8.9 billion $1.6 billion All Other (11 Other - 4.1% Sectors) - 21.3% Owner Healthcare - 1.7% occupied - 12.3% Educational Retail Trade - 22.8% Retail - 17.0% Services - 4.5% Multi-family - 21.1% Professional, Lodging - 8.2% Scientific, and
Slide 8: Focal Point: Non-Owner Occupied CRE Office
Focal Point: Non-Owner Occupied CRE Office (inclusive of construction) Total Maturity Schedule CRE & Construction Portfolio $8.9 billion Past Due 2024 2025 2026 2027 2028+ NOO Office 3% 8% 20% 9% 14% 46% ($1.05B) - 11.7% Short Term Maturity Review ($ in millions) 2024 Q2 2024 Q3 2024 Q4 Pass Rating
Slide 9: Focal Point: Multifamily CRE
Focal Point: Multifamily CRE Multifamily Portfolio Period Ended Composition March 31, December 31, Low Income 2024 2023 Housing Tax ($ in millions) Credit - 8.8% Total Balances $ 1,880 $ 1,880 Mixed Use, Residential Primarily Apart. - Residential - Affordable Total Average Loan Size 2.5 2.4 26.6% Ho
Slide 10: Net Interest Margin Analysis
Net Interest Margin Analysis Net Interest Margin Total Loan Portfolio Rate Characteristics 3.60% 3.54% 3.47% 29% 3.38% Fixed Rate 3.40% Floating Rate 43% Variable Rate 3.23% 3.20% Q2 2023 Q3 2023 Q4 2023 Q1 2024 28% Time Deposit Maturities Loan Hedging Maturities (and weighted average rate) (and wei
Slide 11: Noninterest Income/Expense
Noninterest Income/Expense Noninterest Income Noninterest Expense ($ in thousands) Q1 2024 Q4 2023 Q1 2024 Q4 2023 Salaries and employee Deposit account fees $ 6,228 $ 6,126 benefits $ 57,174 $ 56,388 Interchange and ATM Occupancy and fees 4,452 4,638 equipment expenses 13,467 13,054 Data processing
Slide 12: Focal Point: Investment Management and Advisory
Focal Point: Investment Management and Advisory ($ in thousands) Q1 2024 Q4 2023 % Change Assets under administration $6,804,032 $6,537,905 4.1% Asset based revenue 8,894 8,617 3.2% Other revenue: Retail commission revenue 806 883 Insurance commission revenue 55 65 Other advisory revenue 186 253 Tot
Slide 13: Securities Portfolio
Securities Portfolio Available for Sale (AFS) Held to Maturity (HTM) Unrealized Unrealized Portfolio Composition at March 31, 2024 Book Value Fair Value Gain/(Loss) Book Value Fair Value Gain/(Loss) ($ in millions) U.S. government agency securities $ 230 $ 206 $ (24) $ 29 $ 28 $ (1) U.S. treasury se
Slide 14: 2024 Forward Guidance
2024 Forward Guidance • 2024 full year - low single digit percentage increase expected Loans/ Deposits • 2024 Q2: flat to low single digit percentage increase expected • Balances expected to fluctuate based on loan, deposit and securities Borrowings cash flows Net Interest Margin • 2024 Q2: margin p
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