Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - INDEPENDENT BANK CORP | b88882e8vk.htm |
Exhibit 99.1
| Sandler O'Neill + Partners, L.P. 2011 East Coast Financial Services Conference November 10, 2011 Christopher Oddleifson President & Chief Executive Officer Denis K. Sheahan Chief Financial Officer |
| 2 Main Sub: Rockland Trust Market: Eastern Massachusetts Loans: $3.7 B Deposits: $3.8 B $AUM: $1.6 B Equity: $0.5 B NASDAQ: INDB Who We Are |
| 3 Business lines generating robust volumes Solid, high-quality earnings performances Steadily expanding customer base Investing in high priority businesses Innovative new product offerings Disciplined risk management culture Strong tangible and regulatory capital Key Messages |
| 4 Company Footprint 67 Branches 4 Mortgage Banking Centers 10 Commercial Banking Centers 4 Investment Management Centers Boston Source: SNL Financial; Deposit/Market Share data as of June 30, 2011 including pending transactions. (Includes Credit Unions) |
| 5 Operating E.P.S. up 17% in 2011 Excellent commercial loan and core deposit growth Expanded commercial loan/wealth management services Launched Freeness customer acquisition campaign Introduced innovative mobile banking products Fitch upgrade of long-term issuer rating National 2010 Small 1st Mort. Lender (SBA) Top Place to Work (2nd year) and Most Trustworthy (5th year) designations 2011 Accomplishments |
| 6 Financial Results Fundamentals in Excellent Shape (CHART) Robust C&I loan growth Core dep. up to 83% Solid net int. margin ROA of 1.0% in 3Q11 Growing wealth mgmt. Stable asset quality Strong capital Diluted EPS. $1.35 $1.58 +19% |
| 7 Robust Core Business Generation ($ Millions) (CHART) (CHART) +28% CAGR +22% CAGR |
| 8 Strong Commercial and Industrial Loan Growth ($ Bal.-mil.) (CHART) Adding High Quality Corporate Customers |
| Hired experienced team of asset-based lenders Opened new commercial office in Providence Includes wealth mgmt. services Added senior C&I lender in Boston market Expanded retirement plan service outreach to small businesses Commercial Banking Growth Initiatives 9 |
| 10 Attractive Earning Asset Mix Attractive Earning Asset Mix (CHART) Shift Towards Higher Yielding Assets |
| 11 Improved Funding Mix Lower Cost Deposits Lower Cost Deposits Lower Cost Deposits Core Deposits: 83% Very Focused On Containing Deposit Costs |
| Solid Net Interest Margin Holding Up Despite Difficult Conditions Holding Up Despite Difficult Conditions Holding Up Despite Difficult Conditions 12 |
| 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 Disciplined Credit Culture 13 |
| Asset Quality - No Drama Asset Quality - No Drama (CHART) NPL/Loan % 1.02% 1.07% 0.65% 0.72% Loss Rate 25bp 38bp 43bp 24bp 14 |
| Strong Loan Loss Reserves Strong Loan Loss Reserves Reserves a Healthy Multiple of Loss Rate Reflects Ben Franklin loans acquired at FV 15 |
| Strong Capital (CHART) (CHART) (1)Includes tax deductibility of certain goodwill All capital growth internally generated No external capital raising No dividend cuts 16 |
| Attentive to Shareholder Returns 17 |
| Transformed business in 2004 - tripled in size since Diversified - wealth and institutional segments Strong feeder business from bank Proprietary and 3rd party fund offerings Strong intermediary network Expanding outreach and talent Investment Management - High Priority Growth Business 18 |
| Investment Management - High Priority Growth Business Growing source of fee revenues Natural fit with client base Expanded investment offerings Professionally managed 19 |
| Sustaining Business Momentum Business Line Focal Points 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 Growth Business Banking Exploit Ben Franklin Footprint Opportunity Leverage Small/Mid-Cap Capability Exploit COI Opportunity Investment Management Continue Aggressive H.E. Direct Mail Campaign Focus on Jumbo Mort. Segment Home Equity/Res. Mort. 20 |
| This service allows customers to deposit checks using their Smart phones Expanded availability - iPhone, Android, Blackberry platforms Product Innovation - Mobile Banking with MDeposit Mobile Deposit 21 |
| 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 Branches Deal Value: $105MM 17% Dep. Premium Slade's Ferry Bancorp Mar '08 $610mm Assets $409mm Deposits 9 Branches Deal Value: $84.5MM 2% Dep. Premium Benjamin Franklin Bancorp. Apr '09 $998mm Assets $653mm Deposits 11 Branches Deal Value: N/A Cash Deal w/ Earn-Out Compass Exchange Jan '07 IRS Sec. 1031 Like-Kind Exchange Services Deal Value: N/A Cash Deal w/ Earn-Out O'Connell Investments Nov '07 $200mm AUM 22 |
| 2011 Outlook - Key Expectations 23 |
| High quality franchise in attractive markets Strong on-the-ground business volumes Operating platform that can be leveraged further Investing for growth in competitive strengths Balance sheet equipped to deal with uncertainty Grounded management team Aligned with shareholders - insider ownership 7% Positioned to grow, build, and acquire to drive long- term value creation INDB - Investment Merits 24 |
| 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 to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. |
| Appendix |
| Commercial Real Estate Portfolio Well Diversified Well Diversified Well Diversified Avg Loan Size: $636 thou Largest CRE Credit: $11 mil Non-Performing Loans/Loans: 0.56% Owner Occupied: 23% 27 |
| Commercial & Industrial Portfolio Diversification Diversification Diversification 28 |