Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Q4 2022 Earnings Presentation
14 slides from Independent Bank's earnings presentation, Jan 20, 2023
Slide 1: Q4 2022 Earnings Presentation
Exhibit 99.2 Q4 2022 Earnings Presentation January 20, 2023
Slide 2: 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 3: 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 includes operating net income and operating earnings per share ("EPS"),
Slide 4: Highlights
Highlights Key Drivers of Q4 2022: Key Operating Metrics Q4 2022 • Core NIM** expansion of 23 basis points from Q3 2022 Net Income (in millions) $ 77.0 • 6.6% annualized net loan growth Diluted Earnings Per Share $ 1.69 • Deposit outflow; reduced cash balances Return on Average Assets 1.56% • Low de
Slide 5: Loan Portfolio
Loan Portfolio Period Ended $ Increase % Increase Loan Category 12/31/2022 9/30/2022 (Decrease) (Decrease) ($ in millions) Commercial and industrial $ 1,626 $ 1,537 $ 89 5.8 % Paycheck Protection Program ("PPP") loans 9 11 (2) (18.2)% Commercial real estate 7,760 7,678 82 1.1 % Commercial constructi
Slide 6: Loan Highlights
Loan Highlights Commercial Loans (1) ($ in millions) Residential & Home Equity Closings ($ in millions) Q4 2022 commitments closed $636 Residential real estate $125 Approved pipeline $317 (1) Amounts shown above exclude small business category Home equity 95 Total $220 PPP Loan Summary ($ in million
Slide 7: Deposit Balances
Deposit Balances Period Ended $ Increase % Increase Deposit Product Type 12/31/2022 9/30/2022 (Decrease) (Decrease) ($ in millions) Noninterest-bearing demand deposits $ 5,441 $ 5,622 $ (181) (3.2)% Savings and interest checking accounts 5,898 6,094 (196) (3.2)% Money market deposits 3,344 3,444 (10
Slide 8: Net Interest Margin Analysis
Net Interest Margin Analysis Q4 2022 Q3 2022 Margin Margin Volume Interest Volume Interest Impact Impact ($ in millions) Reported Total $ 17,475.3 $ 169.4 3.85 % $ 17,852.9 $ 163.6 3.64 % Core adjustments: PPP volume @1% (9.9) — (20.1) — PPP fee amort (0.1) (0.4) Total PPP impact (9.9) (0.1) —% (20.
Slide 9: Asset Quality
Asset Quality Nonperforming Loans Net Charge-offs/(Recoveries) ($ in millions) ($ in millions) 0.45% $56.6 $55.9 $56.0 $54.9 $60 0.20% $1 $0.4 $0.4 0.42% 0.10% 0.40% 0.41% 0.41% $30 $0.2 0.39% 0.01% 0.01% 0.01% $— $0 0.00% 0.00% 0.35% $0 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 202
Slide 10: Noninterest Income
Noninterest Income Three Months Ended Investment management: Focal Point December 31 September 30 Assets Under Administration Noninterest Income 2022 2022 $5,793 ($ in thousands) $5,725 $ in millions $5,500 Deposit account fees $5,788 $6,261 Interchange and ATM fees 4,282 4,331 $5,000 $5,157 $5,092
Slide 11: Noninterest Expense
Noninterest Expense Efficiency Ratio - GAAP Basis Three Months Ended 60.00% December 31 September 30 58.34% Noninterest Expense 2022 2022 ($ in thousands) 50.00% 52.42% Salaries and employee 48.60% 47.28% benefits $53,754 $52,708 40.00% Occupancy and equipment Q1 2022 Q2 2022 Q3 2022 Q4 2022 expense
Slide 12: 2023 Forward Guidance
2023 Forward Guidance • 2023 full year - total loan growth expected to be in the low single digit Loan Growth percentage range • 2023 full year - deposit pressure and balance volatility expected to persist Deposit Growth • 2023 Q1 - low single percentage decrease expected compared to 2022 Q4 • Loan
Slide 13: Appendix A: Non-GAAP Reconciliation of Earnings Metrics
Appendix A: 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 well as the average tangible common equity used to calculate return
Slide 14: Appendix B: Non-GAAP Reconciliation of Earnings Metrics
Appendix B: Non-GAAP Reconciliation of Earnings Metrics The following table summarizes the impact of noncore items on the Company's calculation of noninterest income and noninterest expense, as well as the impact of noncore items on interest income as a percentage to total revenue and the efficiency