Peoples Federal Bancshares Inc
Peoples Federal Bancshares — Merger or Acquisition (August 2014)
13 slides from Peoples Federal Bancshares's merger presentation, Aug 5, 2014
Slide 1: Acquisition of Peoples Federal Bancshares, Inc.
Acquisition of Peoples Federal Bancshares, Inc. (NASDAQ: PEOP) 1 Exhibit 99.1
Slide 2: Strategic Rationale
Strategic Rationale • Strengthens position in coveted Boston market • Financially attractive – $0.02 – $0.03 annual accretion to earnings per share – Modestly accretive to tangible book value per share • Opportunity to acquire healthy, profitable bank with deep customer relationships • Attractive su
Slide 3: Overview of Peoples Federal Bancshares, Inc.
Overview of Peoples Federal Bancshares, Inc. • Peoples Federal Bancshares Inc. – Ticker: PEOP – Founded in 1888 • Operates 8 branches in the Greater Boston area – Headquartered in Boston, MA – 4 Branches in the City of Boston Financial Highlights Assets: $606mm Cost of Deposits: 0.42% Gross Loans: $
Slide 4: Enhanced Presence in Greater Boston
• 1st retail locations in Boston • Complements recent commercial lending and IMG office opening in downtown Boston • Solidifies prior investments North and West of the city of Boston • Capitalizes on long-established commercial lending presence in Boston • Provides access to dense small business mar
Slide 5: Attractive Markets
Attractive Markets 5 Source: Nielsen, 2013 Note: RTC= Rockland Trust Company Demographics support penetration in business banking and investment management Average RTC Town Average Peoples Town Total Households 12,269 19,378 Median Household Income $69,575 $79,959 Five Year Proj. Household Growth 2.
Slide 6: INDB Winning Businesses – Opportunities
INDB Winning Businesses – Opportunities Investment Management Commercial Banking Retail and Consumer PEOP Customer Base -Almost $2.5 billion AUA -Wealth/Institutional -Strong referral network -Sophisticated products -Expanded presence -In depth market knowledge -Award winning customer service -Elect
Slide 7: PEOP Loan & Deposit Mix
PEOP Loan & Deposit Mix Loan Portfolio Deposit Base 7 Yield on Loans: 3.95% Construction 4.7% Residential R.E. 64.6% Commercial R.E. 25.9% Commercial & Industrial 1.8% Consumer & Other 3.0% Loan Portfolio ($000) Amount % of Total Construction $22,970 4.7% Residential R.E. 318,969 64.6% Commercial R.
Slide 8: Multiple Levers to Enhance Performance
Multiple Levers to Enhance Performance • Greater efficiency ‒ PEOP LTM Efficiency Ratio 80%+ • Lowering usage of costlier wholesale funds • Employ INDB’s strong business banking platform • Enhance fee revenue ‒ Investment management ‒ Cash Management ‒ Merchant Services 8
Slide 9: Summary of Transaction Terms
Multiples: Core Deposit Premium 7.2% Price / Tangible Book Value 1.23x (1) Based on INDB closing price of $36.17 on 8/4/2014 9 Target: PEOP Implied Transaction Value(1): $130.6 million Implied Transaction Value Per Share(1): $20.39 Form of Consideration: 60% Stock / 40% Cash Per Share Consideration:
Slide 10: Attractive Financial Impact
10 Financial Impact: EPS Accretion: Est. 1% EPS accretion ($0.02 - $0.03) IRR: 16% Effect on Tangible Book Value: Modestly Accretive Attractive Financial Impact Key Assumptions: Cost Saves: 45% 1x After Tax Restructuring Charges: $8.8 MM Loan Credit Mark: 1% Core Deposit Intangibles: $5.5 MM (1.75%)
Slide 11: Appendix
INDEPENDENT BANK CORP. Parent of Rockland Trust Appendix
Slide 12: Loan Mix
Loan Mix 12 Source: SNL Financial INDB loan data per GAAP filings as of 3/31/2014 PEOP loan data per regulatory filings as of 3/31/2014 Yield on Loans: 4.05% Yield on Loans: 3.95% INDB PEOP Pro Forma Construction 5.0% Residential R.E. 11.2% Commercial R.E. 47.5% Commercial & Industrial 18.7% Consume
Slide 13: Deposit Mix
Deposit Mix 13 Source: SNL Financial Note: Jumbo time deposits are defined as time deposits larger than $100,000 INDB deposit data per regulatory filings as of 3/31/2014 PEOP deposit data per GAAP filings as of 3/31/2014 Cost of Total Deposits: 0.22% Cost of Total Deposits: 0.41% INDB PEOP Pro Forma
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