Attached files
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| 8-K - FORM 8-K - INDEPENDENT BANK CORP | d307451d8k.htm |
 2012 Keefe, Bruyette & Woods
Community Bank Investor Conference
March 1, 2012
Christopher Oddleifson
President & Chief Executive Officer
Denis K. Sheahan
Chief Financial Officer
Exhibit 99.1 |
 •
Main Sub:
Rockland Trust
•
Market:
Eastern Massachusetts
•
Loans:
$3.8 B
•
Deposits:
$3.9 B
•
$AUM:
$1.7 B
•
Equity:
$0.5 B
•
NASDAQ:
INDB
Who We Are |
 •
Business lines generating robust volumes
•
Solid, high-quality earnings performances
•
Steadily expanding customer base
•
Investing for growth in high priority businesses
•
Aggressively promoting brand and new products
•
Disciplined risk management culture
•
Strong tangible and regulatory capital
Key Messages |
 Company Footprint
67 Branches
4 Mortgage
Banking Centers
10 Commercial
Banking Centers
4 Investment
Management
Centers
% of INDB Dep.
% of INDB Dep.
% of INDB Dep.
Rank
2011
Rank
2011
Rank
2011
1
16.7%
45%
4
10.2%
16%
7
3.6%
19%
Rank
2011
Rank
2011
Rank
2011
9
5.2%
14%
44
0.3%
1%
47
0.4%
4%
Worcester County
Market Share
MIddlesex County
Norfolk County
Barnstable County (Cape Cod)
Market Share
Market Share
Plymouth County
Bristol County
Source: SNL Financial; Deposit/Market Share data as of June 30, 2011 including
pending transactions. (Includes Credit Unions) Boston
|
 •
Operating E.P.S. up 12% in 2011 (+ 33% in 2010)
•
Excellent commercial loan and core deposit growth
•
Expanded breadth and depth of commercial franchise
•
New household acquisition grew by 51%
•
Investment Management growth: Rev.
15%, $AUM
5%
•
All capital ratios and TBV rose in 2011
•
Fitch upgrade of long-term issuer rating
•
Top Place to Work (
year) designation
2011 Accomplishments
3
rd |
 Financial Results
Fundamentals in Excellent Shape
•
Robust C&I loan growth
•
Core dep. up to 84%
•
Growing wealth mgmt.
•
Excellent asset quality
•
Strong capital
•
ROA nearing 1.0%
Diluted EPS
$1.43
$1.90
$2.12
+13%
+44%
Operating Earnings
($ Millions)
2009
2010
2011
28.0
40.3
45.5 |
 Robust Core Business Generation
($ Millions)
+11% CAGR
+8% CAGR
12/11 vs.
12/10
12/11 vs.
9/11
8%
8% annualized
20%
29% annualized
Comm’l Loan
$ Bal.
Home Equity
$ Bal.
587
428
401
617
Comm’l Loan Originations
Consumer Loan Originations
(Resi’s & Home Eq.)
2008
2011
2008
2011 |
 Strong Commercial and
Industrial Loan Growth
($
Bal.-mil.) Adding
High Quality Corporate Customers Yr. end
+29% CAGR
(25% ex acquisitions)
271
374
503
576
2008
2009
2010
2011 |
 •
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
Recent Growth Initiatives |
 Attractive Earning Asset Mix
Shift
Towards
Higher
Yielding
Assets
16%
10%
15%
1%
58%
2011
$4.5 B
Securities & ST Investments
Resi Mtges
Home Eq
Other Consumer
Comm'l Loans
27%
16%
9%
11%
37%
2005
$2.8 B |
 Improved Funding Mix
Lower Cost Deposits
Core Deposits: 84%
26%
20%
38%
16%
TOTAL DEPOSITS 4Q11
$3.9 B
AVERAGE COST -
TOTAL DEP: 0.31%
Demand Deposits
Money Market
Savings/Now
CD's
Very Focused On Containing Deposit Costs |
 Net Interest Margin
Fairly steady over various rate cycles
Current low rate environment adding pressure |
 •
Longstanding underwriting conservatism
•
Loan portfolio based within footprint
•
In-depth knowledge of local markets
•
No wholesale originations of any loan type
•
Workout team in place for 20 years
•
Expedited problem loan resolution
Disciplined Credit Culture |
 Asset Quality –
No Drama
NPL/Loan %
1.07%
0.65%
0.76% Loss Rate
38bp
43bp
26bp
Yr. end
12.0
14.8
9.5
36.2
23.1
29.0
2009
2010
2011
NPL’s
($ Millions)
2009
2010
2011
Net Chargeoffs
($ Millions) |
 Strong Loan Loss Reserves
Reserves a Healthy Multiple of Loss Rate
Reflects Ben
Franklin loans
acquired at FV
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
Reserves/Loans
Net Chargeoffs/Avg.
Loans (annualized) |
 Strong Capital
(1)
Includes tax deductibility of certain goodwill
•
All capital growth internally generated
•
No external capital raising
•
No dividend cuts |
 Attentive to Shareholder Returns |
 •
Transformed business in 2004 –
tripled in size
since
•
Strong feeder business from bank
•
Proprietary and 3
rd
party fund offerings
•
Strong intermediary network
•
Expanding outreach and talent
Investment Management –
High Priority Growth Business |
 Investment Management –
High Priority Growth Business
•
Growing source of fee revenues
•
Natural fit with client base
•
Expanded investment offerings
•
Professionally managed
$ mil.
2006
2011
Assets under Mgmt.
816
$
+
102%
1,651
$
Revenues
6.1
$
+
121%
13.5
$ |
 Sustaining Business Momentum
Business Line
Focal Points
•
Expand Market Presence
•
Grow C&I Client Base
•
Expand Specialty Products, e.g. ABL
•
Continue to Drive Household Growth
•
Expand Electronic Banking Platform
•
Optimize Branch Network
•
Capitalize on Strong Market Demographics
•
Target COI Opportunity
•
Continue Strong Branch/Commercial Referrals
•
Continue Aggressive H.E. Marketing
Commercial
Retail Delivery
Investment Management
Home Equity |
 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 |
 2012 Outlook –
Key Expectations
Loan Growth
+6 – 8%
Led by commercial and home equity
Deposits
+4 – 6%
Continued core deposit growth
Net Chargeoffs
$9 – 12 MM
Provision $10 – 14 MM
Q1 3.80%
Q4 3.65%
Non-Interest Inc.
Flattish
Invest. mgmt.
, Mort. rev.
NIE
+ 2 – 3%
Selective growth investing
Tax Rate
29%
vs. 27% in 2010
Net Int. Margin
FY: Mid 3.70s% |
 •
High quality franchise in attractive markets
•
Strong on-the-ground business volumes
•
Investing for growth in competitive strengths
•
Operating platform that can be leveraged further
•
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 |
 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
Avg Loan Size: $641 thou
Largest CRE Credit: $11 mil
Non-Performing
Loans/Loans: 0.70%
Owner Occupied: 22%
Commercial/
Retail
19%
Industrial/
Warehouse
15%
All Other
14%
Apartment -
Multifamily
14%
Office
11%
1 to 4 Family
Residential
8%
Special Use
6%
Hotel/ Motel
6%
Strip Malls -
Local
Tenants/
Franchises
4%
Medical Office
3%
Non
Construction Related
$1.8 Billion as of 12/31/11
- |
 Commercial & Industrial Portfolio
Diversification
Retail Trade
19%
Real Estate
and Rental
and Leasing
18%
Wholesale
Trade
14%
Manufacturing
11%
Construction
9%
Accommodation
and Food
Services
5%
Health Care
5%
Professional,
Scientific, and
Technical
Services
4%
All Other (12
Additional
Sectors)
15%
$0.6 Billion as of 12/31/11 |