Independent Bank Corporation Announces the Adoption of its 2021 Share Repurchase Plan

Rhea-AI Summary

Independent Bank Corporation (NASDAQ: IBCP) announced a share repurchase plan on December 18, 2020, authorizing the buyback of up to 1,100,000 shares, approximately 5% of its common stock. This plan is set to last until December 31, 2021, and will primarily be executed through open market transactions. The company will use cash on hand for funding. As of December 18, 2020, they had already repurchased 708,956 shares at an average price of $20.07 per share under the previous plan.

Positive

• Authorization of share repurchase plan up to 1,100,000 shares, which could enhance shareholder value.
• Previous successful buyback of 708,956 shares demonstrates effective capital management.

Negative

• None.

GRAND RAPIDS, Mich., Dec. 22, 2020 (GLOBE NEWSWIRE) -- Independent Bank Corporation (NASDAQ: IBCP), the holding company of Independent Bank, a Michigan-based community bank, announced that its Board of Directors authorized a 2021 share repurchase plan on December 18, 2020. Under the terms of the 2021 share repurchase plan, the Company is authorized to buy back up to 1,100,000 shares, representing approximately 5%, of its common stock. The 2021 share repurchase plan is authorized to last through December 31, 2021.

The Company intends to accomplish 2021 share repurchases through open market transactions, though the Company could accomplish repurchases through other means, such as privately negotiated transactions. The timing and amount of any share repurchases will depend on a variety of factors, including, among others, securities law restrictions, the trading price of the Company's common stock, regulatory requirements, potential alternative uses for capital, and the Company's financial performance. The 2021 share repurchase plan does not obligate the Company to acquire any particular amount of common stock, and it may be modified or suspended at any time at the Company's discretion. The Company expects to fund any repurchases from cash on hand.

The Company’s 2020 share repurchase plan will expire on December 31, 2020. Through December 18, 2020, the Company had repurchased 708,956 shares of its common stock at an average price (including commissions) of $20.07 per share.

About Independent Bank Corporation

Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately $4.2 billion. Founded as First National Bank of Ionia in 1864, Independent Bank Corporation operates a branch network across Michigan's Lower Peninsula through one state-chartered bank subsidiary. This subsidiary (Independent Bank) provides a full range of financial services, including commercial banking, mortgage lending, investments, insurance and title services. Independent Bank Corporation is committed to providing exceptional personal service and value to its customers, stockholders and the communities it serves.

For more information, please visit our Web site at: IndependentBank.com.

Contact:		William B. Kessel, President and CEO, 616.447.3933
		Gavin A. Mohr, Chief Financial Officer, 616.447.3929

FAQ

What is the share repurchase plan authorized by Independent Bank Corporation?

Independent Bank Corporation has authorized a share repurchase plan to buy back up to 1,100,000 shares, representing about 5% of its common stock, effective through December 31, 2021.

How many shares did Independent Bank Corporation repurchase in 2020?

As of December 18, 2020, Independent Bank Corporation repurchased 708,956 shares at an average price of $20.07 per share.

How is Independent Bank Corporation funding its share repurchase plan?

The company expects to fund its share repurchase plan using cash on hand.

What are the factors affecting the share repurchase timing for IBCP?

The timing and amount of share repurchases for IBCP will depend on securities laws, stock trading prices, regulatory requirements, and the company's financial performance.