EX-99.1 2 rbcmarch7.htm RBC CAPITAL MARKETS INVESTOR PRESENTATION
RBC Capital Markets Financial Institutions Conference March 7, 2017 Robert Cozzone – Chief Financial Officer and Treasurer Jonathan Nelson – SVP, Rockland Trust Exhibit 99.1

(2) Who We Are • Main Sub: Rockland Trust • Market: Eastern Massachusetts • Loans: $6.0 B • Deposits: $6.4 B • $AUA: $2.9 B • Market Cap: $1.8 B • NASDAQ: INDB

(3) Key Messages • Lengthy track record of consistent, solid performance • Robust loan and core deposit activity • Growing fee revenue sources, esp. Investment Mgmt. • Expanding footprint in growth markets • Tangible book value steadily growing * • Steadily improving operating efficiency • Disciplined risk management culture • Proven integrator of acquired banks * See appendix A for reconciliation

(4) Expanding Company Footprint Rank 2016 1 23.5% 39% Rank 2016 5 4.9% 18% Rank 2016 3 12.3% 14% Rank 2016 6 7.9% 12% Rank 2016 19 1.2% 10% Rank 2016 17 0.3% 4% Rank 2016 2 19.7% 2% Rank 2016 31 0.3% 1% Suffolk County Bristol County Worcester County Dukes County (MV) Middlesex County Norfolk County % of INDB Dep.Share Barnstable County (Cape Cod) Market Plymouth County Source: SNL Financial; Deposit/Market Share data as of October 20, 2016. *Pro forma for pending Island Bancorp, Inc. acquisition *

(5) Recent Accomplishments • Four consecutive years of record earnings • Reached agreement to acquire Island Bancorp, Inc. of Martha’s Vineyard • Finalized acquisition of New England Bancorp, Inc. of Cape Cod • Capitalizing on expansion moves in vibrant Greater Boston market • Growth initiatives – new equipment leasing product, new N. Quincy branch, expanded digital offerings • Strong household growth rate • Consistently high rankings in third party surveys

(6) $55.2 $59.9 $71.7 $80.4 2013 2014 2015 2016 Operating Earnings ($ Mil.)** Strong Fundamentals Driving Performance +13% CAGR Diluted EPS $2.18 $2.49 $2.50 $2.90 • Robust customer activity • Core deposits up to 90% • Fee revenues rising • Low funding costs • Low credit loss rates • TBV steadily growing* • Solid returns • Accretive Acquisitions Diluted EPS $2.39 $2.50 $2.76 $3.04 * See appendix A for reconciliation * *See appendix B for reconciliation $50.3 $59.8 $65.0 $76.6 2013 2014 2015 2016 Net Income ($ Mil.) +15% CAGR

(7) Vibrant Commercial Lending Franchise TOTAL LOANS $6.0 B AVG. YIELD: 3.94% 4Q 2016 Comm'l 73% Resi Mtg 11% Home Eq 16% • Long-term CRE/ C&I lender • Strong name recognition in local markets • Expanded market presence • Increased small business focus • Experienced, knowledgeable lenders • Growing in sophistication and capacity • Commercial banker development program • Disciplined underwriting

(8) Commercial Real Estate Diversification *Includes 1-4 Family, Multifamily, Condos and Approved Land Residential-Related* 31.0% Commercial Buildings 19.0% Office Buildings 10.5% Industrial / Warehouse 9.1% Hotels / Motels 8.4% Strip Malls 3.7% All Other 18.3% Total Commercial Real Estate Portfolio by Property Type Balance $3.3B as of 12/31/16

(9) C&I Diversification Retail Trade 20.1% Real Estate and Rental and Leasing 17.3% Wholesale Trade 12.6% Manufacturing 10.5% Construction 10.1% Finance and Insurance 6.4% Health Care and Social Assistance 5.9% Accommodation and Food Services 3.9% All Other (11 Sectors) 13.2% C&I Loan Portfolio Composition Balance $902.1M as of 12/31/16

(10) Low Cost Deposit Base Demand Deposits 32% Money Market 19% Savings/Now 39% CDs 10% TOTAL DEPOSITS $6.4 B AVG. COST: 0.17% 4Q 2016 • Sizable demand deposit component • Valuable source of liquidity • Relationship-based approach • Excellent household growth • Expanded digital access • Growing commercial base • Reducing higher cost deposits CORE DEPOSITS: 90%

(11) 6.1 13.5 21.8 2006 2011 2016 Revenues ($ Mil.) 816 1,651 2,919 2006 2011 2016 AUAs ($ Mil.) Investment Management : Transformed Into High Growth Business +258% +257% • Successful business model • Growing source of fee revenues • Strong feeder business from Bank • Expanding investment center locations • Cross-sell opportunity in acquired bank markets • Adding experienced professionals

(12) Well-Positioned for Rising Rates: Prudent Balance Sheet Management -10% -5% 0% 5% 10% 15% 20% 25% Year 0 Year 1 Year 2 % In cr ease o n N et In te re st In co m e Interest Rate Sensitivity Down 100 Up 200 Up 400 Flat Up 200

(13) Asset Quality: Well Managed $34.7 $27.5 $27.7 $57.4 2013 2014 2015 2016 NPLs ($ Mil.) NPL/Loan % 0.73% 0.55% 0.50% 0.96% Peers 0.64%* * Source: FFIEC Peer Group 2; $3-10 Billion in Assets, September 30, 2016 Incl. 90 days + overdue $8.8 $8.5 $0.8 $0.3 2013 2014 2015 2016 Net Chargeoffs ($ Mil.) customer fraud Loss Rate 19bp 18bp 1bp 1bp Peers 10bp*

(14) Strong Capital Position (period end) $17.18 $19.18 $21.29 $23.45 2013 2014 2015 3Q16 Tangible Book Value* +34% * See appendix A for reconciliation $24.85 $26.69 $29.40 $32.02 2013 2014 2015 3Q16 Book Value Per Share +25% • Strong internal capital generation • No storehousing of excess capital • No external equity raising • No dividend cuts

(15) Attentive to Shareholder Returns $0.88 $0.96 $1.04 $1.16 2013 2014 2015 2016 Cash Dividends Declared Per Share

(16) Sustaining Business Momentum Business Line • Expand Market Presence/Recruit Seasoned Lenders • Grow Client Base • Expand Specialty Products, e.g. ABL, Leasing • Lender Development Programs Commercial • Continue to Drive Household Growth • Expand Digital Offerings • Optimize Branch Network Retail Delivery • Capitalize on Strong Market Demographics • Continue Strong Branch/Commercial Referrals • Expand COI Relationships Investment Management • Continue Aggressive H.E. Marketing • Scalable Resi Mortgage Origination Platform Consumer Lending Focal Points

(17) Expanded Presence in Vibrant Greater Boston Long-Term Commercial Lender in Greater Boston Central Bancorp $357MM Deposits 10 Branches – Nov. 2012 Investment Management and Commercial Lending Center October 2013 Peoples Federal Bancshares $432MM Deposits 8 Branches – Feb. 2015

(18) Island Bancorp Acquisition Edgartown National Bank • Profitable, well-managed community bank • Provides first retail presence on M.V. • Excellent complement to growing Cape Cod presence • Financially attractive • $0.03 - $0.04 EPS accretion expected in 2018 • Neutral to TBV • Modest, low-risk deal • Asset size: $194MM • Transaction value: $24.5MM • Expected to close in 2Q ‘17 INDB: A Proven Integrator

(19) Building Franchise Value Disciplined Acquisitions Deal Value: $84.5MM 2% Core Dep. Premium* Benjamin Franklin Bancorp Apr ‘09 $994mm Assets $701mm Deposits 11 Branches Deal Value: $52.0MM 8% Core Dep. Premium* Central Bancorp Nov ‘12 $537mm Assets $357mm Deposits 10 Branches Deal Value: $40.3MM 8% Core Dep. Premium* Mayflower Bancorp Nov’13 $243mm Assets $219mm Deposits 8 Branches $276 mm Assets $176mm Deposits Net 1 Branch Deal Value: $41.7MM 12% Core Dep. Premium* All Acquisitions Immediately Accretive *Incl. CDs <$100k Deal metrics based on closing price and actual acquired assets New England Bancorp Nov ‘16 Deal Value: $102.2 MM 17% Core Dep. Premium* Slade’s Ferry Bancorp Mar ‘08 $630mm Assets $411mm Deposits 9 Branches Peoples Federal Bancshares Feb ’15 $640 mm Assets $432mm Deposits 8 Branches Deal Value: $141.8MM 10% Core Dep. Premium* Island Bancorp Q2 ‘17 (est.) $194 mm Assets $171mm Deposits Net 4 Branches Deal Value: $24.5MM 6% Core Dep. Premium*

(20) Major Opportunities in Acquired Bank Markets: Capitalizing on Rockland Trust Brand Investment Management Commercial Banking Retail/ Consumer • $2.9 billion AUA • Wealth/Institutional • Strong referral network • Sophisticated products • Expanded capacity • In depth market knowledge • Award winning customer service • Electronic/mobile banking • Competitive home equity products Acquired Bank Customer Bases

(21) Optimizing Retail Delivery Network In the past twelve months we have: • Acquired specialized analytics software/location model • Shifted branch distribution • Closed/consolidated 4 • Opened 1 • Redesigned 3 • Contracted ATM site in downtown Boston • Implemented in-branch transaction balancing • Transitioned to instant-issue debit cards • Introduced SecurLOCK feature for misplaced cards • Implemented Apple, Android and Samsung Pay • Allowed for electronic scans of customer identification

(22) INDB Investment Merits • High quality franchise in attractive markets • Strong organic business volumes • Growing brand recognition • Operating platform that can be leveraged further • Capitalizing on in-market consolidation opportunities • Diligent stewards of shareholder capital • Grounded management team • Positioned to grow, build, and acquire to drive long-term value creation

(23) Appendix A The following table reconciles Book Value per share, which is a GAAP based measure to Tangible Book Value per share, which is a non-GAAP based measure. It also reconciles the ratio of Equity to Assets, which is a GAAP based measure, to Tangible Equity to Tangible Assets, a non-GAAP measure, for the dates indicated: 2013 2014 2015 2016 (Dollars in thousands, except share and per share data) Tangible common equity Stockholders' equity (GAAP) $ 591,540 $ 640,527 $ 771,463 $ 864,690 (a) Less: Goodwill and other intangibles 182,642 180,306 212,909 231,374 Tangible common equity 408,898 460,221 558,554 633,316 (b) Tangible assets Assets (GAAP) 6,098,869 6,364,318 7,209,469 7,709,375 (c) Less: Goodwill and other intangibles 182,642 180,306 212,909 231,374 Tangible assets 5,916,227 6,184,012 6,996,560 7,478,001 (d) Common shares 23,805,984 23,998,738 26,236,352 27,005,813 (e) Common equity to assets ratio (GAAP) 9.70 % 10.06 % 10.70 % 11.22 % (a/c) Tangible common equity to tangible assets ratio (Non-GAAP) 6.91 % 7.44 % 7.98 % 8.47 % (b/d) Book Value per share (GAAP) $ 24.85 $ 26.69 $ 29.40 $ 32.02 (a/e) Tangible book value per share (Non-GAAP) $ 17.18 $ 19.18 $ 21.29 $ 23.45 (b/e)

(24) Appendix B 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 of the time periods indicated: 2013 2014 2015 2016 (Dollars in thousands, except per share data) Net income available to common shareholders (GAAP) $ 50,254 $ 2.18 $ 59,845 $ 2.49 $ 64,960 $ 2.50 $ 76,648 $ 2.90 Non-GAAP adjustments Noninterest income components Gain on extinguishment of debt (763 ) (0.03 ) — — — — — — Gain on life insurance benefits (tax exempt) (227 ) (0.01 ) (1,964 ) (0.08 ) — — — — Gain on sale of fixed income securities (258 ) (0.01 ) (121 ) (0.01 ) (798 ) (0.03 ) — — Noninterest expense components Impairment on acquired facilities — — 524 0.02 109 — — — Loss on extinguishment of debt — — — — 122 0.01 437 0.02 Loss on sale of fixed income securities — — 21 — 1,124 0.04 — — Loss on termination of derivatives — — 1,122 0.05 — — — — Merger and acquisition expenses 8,685 0.35 1,339 0.06 10,501 0.40 5,455 0.20 Severance 325 0.01 — — — — — — Total impact of noncore items 7,762 0.31 921 0.04 11,058 0.42 5,892 0.22 Net tax benefit associated with noncore items (2,837 ) (0.10 ) (866 ) (0.03 ) (4,285 ) (0.16 ) (2,163 ) (0.08 ) Net operating earnings (Non- GAAP) $ 55,179 $ 2.39 $ 59,900 $ 2.50 $ 71,733 $ 2.76 $ 80,377 $ 3.04

(25) NASDAQ Ticker: INDB www.rocklandtrust.com Robert Cozzone – CFO & Treasurer Shareholder Relations: (781) 982-6737 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.