Independent Bank Corp. · NASDAQ:INDB
Independent Bank — Investor Presentation (March 2011)
28 slides from Independent Bank's investor presentation, Mar 8, 2011
Slide 1: March 2011 Investor Presentation
March 2011 Christopher Oddleifson President & Chief Executive Officer Denis K. Sheahan Chief Financial Officer
Slide 2: Who We Are
2 Who We Are Main Sub: Rockland Trust Market: Eastern Massachusetts Loans: $3.6 B Deposits: $3.6 B $AUM: $1.6 B Equity: $0.4 B NASDAQ: INDB
Slide 3: Key Messages
Business lines generating robust volumes Solid earnings performance - avoided industry problems Steadily expanding customer base We're more than a traditional community bank Innovative new product offerings Disciplined risk management culture Strong tangible and regulatory capital 3 Key Messages
Slide 4: Company Footprint
Company Footprint 69 Branches 4 Mortgage Banking Centers 11 Commercial Banking Centers 4 Investment Management Centers Business generation extends beyond S.E. Mass. footprint Boston Source: SNL Financial; Deposit/Market Share data as of June 30, 2010 including pending transactions. (Includes Credit
Slide 5: Accomplishments: 2010
Operating E.P.S. grew by 33% Exceptional commercial loan activity Launched Bright Rock Capital Management Introduced first two mutual funds National 2010 Small 1st Mort. Lender (SBA) Top Place to Work (2nd year) and Most Trustworthy (5th year) designations 5 Accomplishments: 2010
Slide 6: Financial Results: Fundamentals in Excellent Shape
6 Financial Results Fundamentals in Excellent Shape (CHART) Robust C&I loan growth Core dep. up to 81% Strong net int. margin ROA of 1.0% in 4Q10 Growing wealth mgmt. Stable asset quality Strong capital Diluted EPS. Diluted EPS.
Slide 7: Robust Core Business Generation
7 Robust Core Business Generation ($ Millions) (CHART) (CHART) +28% CAGR +22% CAGR
Slide 8: Strong Commercial and Industrial Loan Growth
8 Strong Commercial and Industrial Loan Growth ($ Millions) (CHART) Adding High Quality Corporate Customers
Slide 9: Attractive Earning Asset Mix
9 Attractive Earning Asset Mix (CHART) Shift Towards Higher Yielding Assets Shift Towards Higher Yielding Assets
Slide 10: Core Deposits: 81%
10 Core Deposits: 81% No broker CD's Very Focused On Containing Deposit Costs Improved Funding Mix - Lower Cost Deposits
Slide 11: Strong Net Interest Margin Holding Up Despite Difficult Conditions
11 Strong Net Interest Margin Holding Up Despite Difficult Conditions
Slide 12: 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 19 years Expedited problem loan resolution 12 Disciplined Credit Culture
Slide 13: Asset Quality - No Drama
13 Asset Quality - No Drama (CHART) NPL/Loan % Loss Rate
Slide 14: Strong Loan Loss Reserves
14 Strong Loan Loss Reserves Reserves a Healthy Multiple of Loss Rate Reflects Ben Franklin loans acquired at FV
Slide 15: Strong Capital
15 Strong Capital (CHART) (CHART) (1)Includes tax deductibility of certain goodwill All capital growth internally generated No external capital raising Includes full payout of CPP No dividend cuts
Slide 16: Attentive to Shareholder Returns
16 Attentive to Shareholder Returns
Slide 17: Investment Management - High Priority Growth Business
Investment Management - High Priority Growth Business Transformed business in 2004 - tripled in size since Diversified - wealth and institutional segments Average account size growing Strong feeder business from bank Proprietary and 3rd party fund offerings Strong intermediary network Attracting mar
Slide 18: Investment Management - High Priority Growth Business
Investment Management - High Priority Growth Business 18 Growing source of fee revenues Natural fit with client base Expanded investment offerings Professionally managed
Slide 19: Sustaining Business Momentum
19 Sustaining Business Momentum Grow C&I Client Base Continue to Take Advantage of Competitive Disruption Expand Specialty Products Commercial Expand Alternative Channels Optimize Branch Network Product Structure & Pricing Retail Delivery Capture Market Share Opportunity Target Intelligent Loan Grow
Slide 20: Product Innovation - Mobile Banking with MDeposit
This service allows customers to deposit checks using their Smart phones 20 Product Innovation - Mobile Banking with MDeposit Mobile Deposit
Slide 21: Other Important Priorities
Sustain high visibility in the marketplace Expand customer relationships with attractive product offerings Maintain risk management rigor Invest in Branding, Target Marketing and CRM Analytics Attract and retain key talent Carefully evaluate M&A opportunities 21 Other Important Priorities
Slide 22: Building Franchise Value
22 Building Franchise Value BANK NON- BANK All Acquisitions Immediately Accretive Disciplined Acquisitions Deal Value: $40mm 12% Dep. Premium Fleet Divest. Aug '00 $336mm Deposits $135mm Loans 16 Branches Deal Value: $37mm 11% Dep. Premium Falmouth Bancorp Jul '04 $158mm Assets $137mm Deposits 4 Bra
Slide 23: 2011 Outlook - Key Expectations
23 2011 Outlook - Key Expectations Commercial Loan Growth Net Interest Margin Net Chgoffs.& Provision NIE Tax Rate +6 - 8% (Total Loans: +2 - 3%) High 3.80s - low 3.90s % 30 - 50 bp +2 - 3% ^ 27%
Slide 24: INDB - Investment Merits
High quality franchise in attractive markets Strong on-the-ground business volumes Operating platform that can be leveraged further Balance sheet equipped to deal with current uncertainty Grounded management team - does not "reach for earnings" Aligned with shareholders - insider ownership 8% Positi
Slide 25: NASDAQ Ticker: INDB www.rocklandtrust.com Denis Sheahan - CFO Shareholder Relations: Jennifer Kingston (781) 878-6100
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 26: Independent
INDEPENDENT
Slide 27: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio Well Diversified Well Diversified Well Diversified 27
Slide 28: Commercial & Industrial Portfolio
Commercial & Industrial Portfolio Commercial & Industrial Portfolio 28
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