Exhibit 99.1
| Investor Presentation May 9, 2008 |
| Who We Are Main Sub: Rockland Trust Market: S.E. Massachusetts Loans: $2.5 B Deposits: $2.5 B $AUM: $1.3 B Market Cap: $0.5 B NASDAQ: INDB |
| Key Messages Completing our repositioning for superior risk/returns Growth reemerging in priority businesses We're more than a traditional, community bank Business platform in excellent shape and leverageable Extending our strong local market presence Extraordinary levels of customer loyalty and satisfaction - where each relationship matters Well-positioned to capitalize on exciting regional developments |
| Company Footprint 61 Branches 5 Mortgage Banking Centers 9 Commercial Banking Centers 4 Investment Management Centers Business generation extends beyond S.E. Mass. footprint Source: SNL Financial; Deposit/Market Share data as of June 30, 2007 including pending transactions. (Includes Credit Unions) * Proforma to include the acquisition of Slade's Ferry Bancorp |
| Attractive Demographics Source: SNL Financial Fastest Growing Region In The State MA Plymouth County Barnstable County Bristol County A 0.0192 B 0.0492 C 0.0222 D 0.0202 MA Plymouth County Barnstable County Bristol County A 66.046 B 73.061 C 61.707 C 55.371 Projected Population Growth 2007 - 2012 Median HH Income ($ Thou.) 2007 |
| Exciting Regional Developments Economic Stimuli and Growth From: Major commuter rail expansion Potential gaming site: 1st in state High % of undeveloped land Steady migration into Cape Cod National retailers expanding into the region INDB Well-Positioned To Capitalize |
| Growth Market Infrastructure Rail Lines Existing Opened November 2007 Proposed Highway Rt. 44 Expansion Potential Gaming Site |
| Acquisition of Slade's Ferry Bancorp (SFBC) Strategic Rationale Contiguous market expansion in S.E. Mass. - State's fastest growing region Significant share improvement in vital Providence - New Bedford corridor (23rd to 8th) Adding a solid loan and deposit base Ability to further penetrate SFBC customer base with INDB's deeper product set Accretive transaction - Closed March 1, 2008 |
| INDB/SFBC Footprint INDB: 52 Branches SFBC: 9 Branches SFBC 12/31/07 ($MM) Deposits: $390 Loans: $458 Equity: $ 52 |
| Bringing INDB's Deeper Product Set to SFBC's Customer Base Consumer Home Equity Deposit Services Marketing Programs Commercial Commercial Banking New Market Tax Credit Program IRS Sec. 1031 Services (Compass Exchange) Wealth Management Investment Management & Trust AUM: $1B+ 4 Inv. Centers SFBC Customers |
| Building Franchise Value $158mm Assets $137mm Deposits 4 Branches IRS Sec. 1031 Like-Kind Exchange Services $200mm AUM $336mm Deposits $135mm Loans 16 Branches Deal Value: $40mm 12% Dep. Premium Deal Value: $37mm 12% Dep. Premium Deal Value: N/A Cash Deal w/ Earn-Out Deal Value: N/A Cash Deal w/ Earn-Out Disciplined Acquisitions Fleet Divest. Aug '00 Falmouth Bancorp Jul '04 Compass Exchange Jan '07 O'Connell Investments Nov '07 All Acquisitions Immediately Accretive $610mm Assets $409mm Deposits 9 Branches Deal Value: N/A Cash Deal w/ Earn-Out Slade's Ferry Bancorp Mar '08 |
| Prevailing Environment - Tough One For Sure Intense competitive pricing Housing market pressures Credit markets in disarray Challenging yield curve Negative investor psychology |
| Current Tough Environment - Our Response Sitting still is not an option Sharpen the pencil on risk/returns Feed our strengths Will not reach for earnings ... retained credit discipline Employ capital judiciously Hit the ground running when conditions improve |
| Current Tough Environment - Our Gameplan Reduce below-hurdle assets Grow competitively-advantaged loan businesses Grow fee-based activities, esp. wealth management Improve funding mix Capitalize on New Market Tax Credit Program Manage expenses tightly ... fund growth initiatives Selectively consider value-added acquisitions Return excess capital to shareholders Repositioning for Superior Long-Term Performance |
| Repositioning the Balance Sheet Asset Class Securities Residential Mortgages Indirect Auto Commercial Loans Home Equity Emphasis |
| Repositioning the Balance Sheet - Net Result Improved Earning Asset and Funding Mix Improvement / Sustenance of Interest Margin Freeing-Up of Capital Improvement in Expected Returns Sacrifice of Near-Term Earnings |
| 2005 2006 2007 Q1 '08 442 398 341 450 114 2005 2006 2007 Q1 '08 717 517 507 487 37 Reducing Below - Hurdle Assets Securities Residential R.E. Loans Auto Loans 47% $ Mil 2% 2005 2006 2007 Q1 '08 263 207 156 147 56% Shedding Non-Relationship Assets Slade's Ferry $37 Slade's Ferry $114 |
| 2005 2006 2007 Q1 '08 51 60 70 74 206 234 260 333 57 2005 2006 2007 Q1 '08 2005 2006 2007 Q1 '08 824 860 931 1194 264 Lending Businesses - Areas of Emphasis Commercial Commercial R.E. Strong Pipeline Adding Experienced Lenders Highly Diversified New Market Tax Credit Program Home Equity Generates New Customers High Credit Standards 45% 41% 62% Business Banking $ Mil Slade's Ferry $56 Slade's Ferry $260 Slade's Ferry $39 |
| Repositioning the Balance Sheet Home Eq/Oth. Consumer Loans Consumer-Resi's & Auto Loans Securities & ST Investments Commercial Loans 0.11 0.25 0.28 0.36 Home Eq./Oth. Consumer Loans Consumer - Resi's & Auto Loans Securities & ST Investments Commercial Loans 0.13 0.2 0.16 0.51 2005 $2.8 B Q1 2008 $3.0 B More Attractive Earning Asset Mix Shift In Composition Expected to Continue |
| Improved Funding Mix - Lower Wholesale Borrowings FHLB Borrowings Reduced % of Assets 2005 2006 2007 Q1 '08 0.19 0.17 0.18 0.16 |
| Improved Funding Mix - Lower Cost Deposits Savings/ Now C/D's Money Market Demand Deposits 0.28 0.3 0.2 0.22 TOTAL DEPOSITS Q1 2008 $2.5 B AVG. COST - TOTAL DEP: 2.32% Very Focused On Containing Deposit Costs |
| Q1 '07 Q1 '08 6.9 6.9 2005 2006 2007 Q1 '08 2.8 2.6 2.6 3 0.462 Repositioning the Balance Sheet 7% 2% Earning Assets ($ Bil) Net Operating Results Earnings Earnings per ($Mil) Share ($) Recent Earnings Trends Reflect Shrinking of the Balance Sheet Q1 '07 Q1 '08 0.47 0.48 Slade's Ferry $0.5 |
| Net Interest Margin Holding Up Despite Difficult Conditions |
| Q1 '06 Q1 '07 Q1 '08 6.8 7.8 8.8 Fee Based Revenues - Steady and Growing Source * Excluding Securities G/L's and BOLI Benefit Proceeds in 2006 29% % of Operating Revenues Operating Non-Interest Income* ($ Mil) Q1 '06 Q1 '07 Q1 '08 0.21 0.25 0.26 |
| 2005 2006 2007 Q1 '08 5.3 6.1 8.1 2.7 Q4 '06 Q3 '07 Q4 '07 Q1 '08 816 1106 1289 1297 Fee Based Revenues - Steady and Growing Source 53% Assets Under Management ($ Mil) Wealth Mgmt. Revenue ($ Mil) Wealth Management - Strategic Priority Natural Fit with Client Base Change in Retail Origination Model Paying Off Recent O'Connell Acquisition Extends Reach 59% # of Accounts 1,528 1,786 2,500 2,552 |
| New Market Tax Credit Program Federal program incenting community business lending Awards tax credits to selected institutions Tax credits extend over multi-year period INDB: has the only Mass. bank sub to receive award in '06 |
| 2006 2007 Q1 '08 2.2 3.1 1.1 Strong Asset Quality Net Charge Offs ($ Mil) NPA's ($ Mil) 30% of chargeoffs from a shrinking auto loan portfolio Dec '06 Dec '07 Q1 '08 7.2 8.3 11.9 NPA % 0.25% 0.30% 0.36% Loss Rate 11bp 16bp 20bp |
| Strong Loan Loss Reserves Reserves / Non- Performing Loans Reserves / Loans Dec '06 Dec '07 Q1 '08 0.0132 0.0131 0.0129 Dec '06 Dec '07 Q1 '08 3.84 3.51 2.99 |
| Mortgage Lending - High Credit Standards |
| Strong Capital - Returning Excess to Shareholders Tangible % Tier 1 Leverage % ---------------------------- Since YE '05 --------------------------- Repurchased 1.8 million shares = 12% of total shares Q4 '05 Q4 '06 Q4 '07 Q1 '08 0.0771 0.0805 0.0802 0.0855 Q4 '05 Q4 '06 Q4 '07 Q1 '08 0.057 0.063 0.059 0.0541 |
| Better Positioned for the Turn Balance Sheet Growth Expected to Resume in 2008 Fee-Based Revenues Growing Nicely Net Interest Margin Maintaining Strength Excellent Shape Creditwise Accretive Deals Being Implemented Adding Talent in the Right Places Creative Info-Based Sales/Marketing Programs Underway Regional Growth Dynamics Gaining Traction Management Excited and Determined to Perform |
| 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. NASDAQ Ticker: INDB www.rocklandtrust.com Denis Sheahan - CFO Shareholder Relations: Jennifer Kingston (781) 878-6100 |