Independent Bank Corporation Announces the Adoption of its 2025 Share Repurchase Plan

Rhea-AI Summary

Independent Bank (NASDAQ: IBCP) has announced its 2025 share repurchase plan, authorized by the Board of Directors on December 17, 2024. The plan allows the company to repurchase up to 1,100,000 shares, approximately 5% of its common stock, through December 31, 2025.

The repurchases will primarily be conducted through open market transactions, with timing and volume depending on factors including stock price, regulatory requirements, and financial performance. The company plans to fund repurchases from cash on hand. Notably, under its 2024 repurchase plan, which expires December 31, 2024, no shares had been repurchased as of December 17, 2024.

Positive

• Authorization to repurchase 5% of common stock (1,100,000 shares)
• Company has sufficient cash on hand to fund repurchases
• Strong asset base of $5.3 billion

Negative

• No shares repurchased under the 2024 plan indicates potential execution risks
• Share repurchases may reduce cash available for other strategic initiatives

Insights

Financial Analyst

The announced 5% share repurchase authorization of 1,100,000 shares represents a significant capital return initiative for IBCP shareholders. With a market cap of $795 million, this buyback could amount to roughly $40 million at current prices. Notably, the company's decision to fund repurchases from cash on hand demonstrates strong liquidity position. However, it's worth highlighting that IBCP hasn't repurchased any shares under its 2024 program, which raises questions about execution commitment. The flexibility in timing and amount of repurchases suggests a cautious approach to capital management, allowing the bank to balance shareholder returns with maintaining strong capital ratios. For a regional bank with $5.3 billion in assets, this program provides a reasonable balance between growth capital and shareholder returns.

Market Research Analyst

The stock buyback announcement comes at a strategic time when regional bank valuations remain under pressure. The discretionary nature of the program gives IBCP flexibility to be opportunistic in repurchasing shares, potentially taking advantage of market volatility. While the authorization through 2025 signals long-term confidence, the lack of repurchases in 2024 suggests management may be prioritizing capital preservation in the current banking environment. The 5% reduction in share count, if fully executed, could provide meaningful support to earnings per share metrics. However, investors should note that authorization doesn't guarantee execution, as evidenced by the unused 2024 program. The bank's strong asset base and Michigan market presence provide fundamental support for this capital return initiative.

GRAND RAPIDS, Mich., Dec. 17, 2024 (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 2025 share repurchase plan on December 17, 2024. Under the terms of the 2025 share repurchase plan, the Company is authorized to buy back up to 1,100,000 shares, representing approximately 5% of its common stock. The 2025 share repurchase plan is authorized to last through December 31, 2025.

The Company intends to accomplish 2025 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 2025 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 2024 share repurchase plan will expire on December 31, 2024. Through December 17, 2024, the Company had not repurchased any shares of its common stock.

About Independent Bank Corporation

Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately $5.3 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

How many shares is IBCP authorized to repurchase under its 2025 plan?

IBCP is authorized to repurchase up to 1,100,000 shares, representing approximately 5% of its common stock.

When does Independent Bank's 2025 share repurchase plan expire?

The 2025 share repurchase plan expires on December 31, 2025.

How will IBCP fund its 2025 share repurchase program?

The company plans to fund the share repurchases from cash on hand.

How many shares did IBCP repurchase under its 2024 plan?

As of December 17, 2024, the company had not repurchased any shares under its 2024 share repurchase plan.

What is the total asset value of Independent Bank ?

Independent Bank has total assets of approximately $5.3 billion.