Independent Bank Corp (Mass) (NASDAQ:INDB) Q3 2019 Earnings Conference Call - Final Transcript

Oct 18, 2019 • 10:00 am ET

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Independent Bank Corp (Mass) (NASDAQ:INDB) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Independent Bank Corp's Third Quarter 2019 Earnings Call and Webcast. [Operator Instructions]

After today's presentation, there will be an opportunity to ask questions. [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 include those identified in our Annual Report on Form 10-K and 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 measures and additional information regarding our non-GAAP measures. Also, please note that the event is being recorded.

I would now like to turn the conference over to Chris Oddleifson, President and CEO. Please go ahead.

Executive
Christopher Oddleifson

Thank you, Andrea. And good morning everyone and thank you for joining us today. I'm accompanied today by Rob Cozzone, our Chief Operating Officer and Mark Ruggiero, our Chief Financial Officer. Our string of record quarterly performance continued in the third quarter, excluding M&A related charges, and a loan sale gain operating net income grew to $51.7 million or $1.50 per share, which was above both prior quarter and prior year results by a healthy margin. On a year-to-date basis, operating EPS is up 24% over the prior year. The stars align this quarter as we benefit from several advantageous items Mark will cover shortly.

The strength of our underlying fundamentals remains very much intact. The quarter is marked by solid loan generation, which was masked by ongoing run off in various acquired Blue Hill portfolios, along with elevated pay downs induced by the low rate environment. Continued strength in our demand deposit generation, across the board growth in all major fee income categories, continued investment management success with assets under administration rising nicely to $4.5 billion, lower expense levels, benign credit quality trends, strong operating ROAs and ROEs and ample capital levels with tangible book value per share rising another 4% in the past quarter alone.

So another solid quarterly performance. Our simulation of our largest acquisition to-date Blue Hills Bank has proceeded well. Integrating acquired banks is a competence of ours is borne out by our proven track record over the years. Our combined revenue generators are now hard at work pursuing the added business opportunities presented by this merger. The more expensive mortgage platform brought over by Blue Hills has been a home run