Independent Bank Corp (Mass) (NASDAQ:INDB) Q2 2019 Earnings Conference Call - Final Transcript

Jul 19, 2019 • 10:00 am ET

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Independent Bank Corp (Mass) (NASDAQ:INDB) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, and welcome to the Independent Bank Corp. Second Quarter 2019 Earnings Conference Call. [Operator Instructions] Before proceeding, let me mention that this call may contain forward-looking statements with respect to the financial condition, results of operations and business of Independent Bank Corp. Actual results may be different. Factors that may cause actual results to differ may include those identified in our annual report on Form 10-K and on our earnings press release. Independent Bank Corp cautions you against unduly relying upon any forward-looking statements and disclaims any intent to update publicly any forward looking statements, whether in response to new information, future events or otherwise. Please note that during this call we will also discuss certain non-GAAP financial measures as we review Independent Bank Corp's performance. These non-GAAP financial measures should not be considered replacements for and should be read together with GAAP results.

Please refer to the Investor Relations section of our website to obtain a copy of our earnings press release, which contains reconciliations of these non-GAAP measures to the most directly comparable GAAP measure and additional information regarding our non-GAAP measures. Please note that today's event is being recorded. At this time. I would like to turn the conference over to Chris Oddleifson, President and CEO. Please proceed.

Executive
Christopher Oddleifson

Thank you, and good morning, everyone, and thank you for joining us today. I am accompanied today by Rob Cozzone, our Chief Operating Officer and Mark Ruggieroare, our Chief Financial Officer. We continued our earnings momentum with yet another record quarterly financial performance. Excluding M&A-related charges, operating net income rose to $48.8 million or $1.42 per share, significantly above both prior quarter and prior year's results. On a year-to-date basis, operating EPS is up 28% over the prior year.

Our core fundamentals remain strong with organic loan and core deposit generation, solid fee income, continued growth in assets under management, benign credit trends, improved operating efficiency and healthy returns. Most notably, tangible book value per share grew 8% in the last quarter alone and now sits just about 20% above its level of a year ago. The major milestone in the second quarter, of course, was the bringing of Blue Hills into the fold as of April 1, which bolted us to a bank with over $11 billion in assets. Rob will take you through some of the integration details and progress points, while Mark will cover the impact on key financial categories.

But suffice it to say, we're very happy with how things have gone thus far. The talent of Blue Hills' colleagues who joined our ranks have settled in nicely and already contributing to our overall success. Our three new board members who came over from Blue Hills have been very helpful in providing continuity and achieving a smooth assimilation. Very noteworthy is that during a quarter when we were focused on a successful integration of Blue Hills, our organic growth engines were running very well. During the second quarter, we had record new investment management