Independent Bank Corporation Reports 2022 Fourth Quarter Results

Rhea-AI Summary

Independent Bank Corporation (NASDAQ: IBCP) reported a robust fourth quarter for 2022, achieving a net income of $15.1 million ($0.71 per diluted share), up 20.6% from the previous year. The company also saw a 22.4% rise in diluted EPS. Key figures include a commercial loan growth of $58.6 million (16.5% annualized) and an 18.4% increase in net interest income compared to Q4 2021. The bank declared a dividend of 22 cents per share on November 14, 2022. Despite challenges in mortgage banking, total assets grew to $5 billion, with a strong balance sheet supported by a well-capitalized subsidiary.

Positive

• Net income increased by 20.6%, reaching $15.1 million.
• Diluted EPS rose 22.4% to $0.71.
• Commercial loans grew by $58.6 million, reflecting 16.5% annualized growth.
• Net interest income surged by 18.4%, totaling $40.6 million.

Negative

• Mortgage banking revenue significantly declined.

Fourth Quarter Highlights

Highlights for the fourth quarter of 2022 include:

• Increases in net income and diluted earnings per share of 20.6% and 22.4%, respectively, over the fourth quarter of 2021;
• An increase in book value and tangible book value per share of $0.72 and $0.74, respectively;
• Net growth in commercial loans of $58.6 million (or 16.5% annualized);
• Annualized return on average assets and average equity of 1.21% and 17.94%, respectively;
• An increase in net interest income of 18.4% over the fourth quarter of 2021; and
• The payment of a 22 cent per share dividend on common stock on November 14, 2022.

GRAND RAPIDS, Mich., Jan. 26, 2023 (GLOBE NEWSWIRE) -- Independent Bank Corporation (NASDAQ: IBCP) reported fourth quarter 2022 net income of $15.1 million, or $0.71 per diluted share, versus net income of $12.5 million, or $0.58 per diluted share, in the prior-year period. For the year ended December 31, 2022, the Company reported net income of $63.4 million, or $2.97 per diluted share, compared to net income of $62.9 million, or $2.88 per diluted share, in 2021.

William B. (“Brad”) Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: “Our fourth quarter performance capped a very strong year as our entire organization executed extremely well despite a macroeconomic environment with many challenges and uncertainties. This past year with our successful expansion into new markets and addition of new banking talent, we were able to generate strong commercial loan growth and higher net interest income, which enabled us to offset a significant decline in mortgage banking revenue and deliver a higher level of earnings in 2022 than we did in 2021. These results generated a full year return on average assets and return on average equity of 1.31% and 18.41%, respectively. Importantly, we have generated significant growth in our loan portfolio while maintaining sound underwriting criteria, a low level of past dues and net recoveries credited to our allowance in 2022. We continued to see positive trends during the fourth quarter including double-digit annualized growth in our commercial loan portfolio and further expansion in our net interest margin. Given the health of our loan portfolio and our high level of liquidity and reserves, we believe we are well positioned to continue effectively managing through the challenging economic environment and delivering strong results for our shareholders as we continue to leverage the investments we have made in banking talent and technology over the past several years.”

Significant items impacting comparable 2022 and 2021 results include the following:

• Changes in the fair value due to price of capitalized mortgage loan servicing rights (the “MSR Changes”) of  $(0.5) million ($(0.02) per diluted share, after taxes) and $14.3 million ($0.53 per diluted share, after taxes) for the three-month and full-year ended December 31, 2022, respectively, as compared to $0.6 million ($0.02 per diluted share, after taxes) and $3.4 million ($0.12 per diluted share, after taxes) for the three-months and full-year ended December 31, 2021, respectively.
• The provision for credit losses was an expense of $1.4 million ($0.05 per diluted share, after taxes) and $5.3 million ($0.20 per diluted share, after tax) in the fourth quarter and full year ended December 31, 2022, respectively, as compared to an expense of $0.6 million ($0.02 per diluted share, after taxes) and credit of $1.9 million ($(0.07) per diluted share, after tax) in the fourth quarter and full year ended December 31, 2021.
• Net gain on mortgage loans was $1.5 million ($0.06 per diluted share, after taxes) and $6.4 million ($0.24 per diluted share, after tax) in the fourth quarter and full year ended December 31, 2022, respectively, compared to $5.6 million ($0.21 per diluted share, after taxes) and $35.9 million ($1.30 per diluted share, after tax) in the fourth quarter and full year ending December 31, 2021.

Operating Results

The Company’s net interest income totaled $40.6 million during the fourth quarter of 2022, an increase of $6.3 million, or 18.4% from the year-ago period, and up $0.7 million, or 1.8%, from the third quarter of 2022. The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.52% during the fourth quarter of 2022, compared to 3.13% in the year-ago period, and 3.49% in the third quarter of 2022. The year-over-year quarterly increase in net interest income was due to an increase in average interest-earning assets as well as an increase in the net interest margin. Average interest-earning assets were $4.64 billion in the fourth quarter of 2022, compared to $4.43 billion in the year ago quarter and $4.61 billion in the third quarter of 2022.

Non-interest income totaled $11.5 million and $61.9 million, respectively, for the fourth quarter and full year of 2022, compared to $15.8 million and $76.6 million in the respective comparable year ago periods. These changes were primarily due to variances in mortgage banking related revenues (net gains on mortgage loans and mortgage loan servicing, net).

Net gains on mortgage loans in the fourth quarters of 2022 and 2021, were approximately $1.5 million and $5.6 million, respectively. For the full year of 2022, net gains on mortgage loans totaled $6.4 million compared to $35.9 million in 2021. The decrease in net gains on mortgage loans was primarily due to a decrease in the volume of mortgage loans sold and lower profit margins on mortgage loan sales.

Mortgage loan servicing, net, generated income of $0.7 million and $1.3 million in the fourth quarters of 2022 and 2021, respectively. For the full year of 2022 and 2021, mortgage loan servicing, net, generated income of $18.8 million and $5.7 million, respectively. The significant variances in mortgage loan servicing, net is primarily due to changes in the fair value of capitalized mortgage loan servicing rights associated with changes in mortgage loan interest rates and expected future prepayment levels. Mortgage loan servicing, net activity is summarized in the following table:

	Three months ended								Twelve months ended
	12/31/2022				12/31/2021				12/31/2022				12/31/2021
	(In thousands)
Mortgage loan servicing, net:
Revenue, net	$	2,180			$	2,044			$	8,577			$	7,853
Fair value change due to price		(503	)			567				14,272				3,380
Fair value change due to pay-downs		(990	)			(1,342	)			(4,076	)			(5,488	)
Total	$	687			$	1,269			$	18,773			$	5,745

Non-interest expenses totaled $32.1 million in the fourth quarter of 2022, compared to $34.0 million in the year-ago period. For the full year of 2022, non-interest expenses totaled $128.3 million versus $131.0 million in 2021. The decrease in costs related to unfunded lending commitments is attributed to decreases in both the volume of such commitments and expected loss rates. The decrease in other expense is attributed to lower fraud related losses as well as a contract termination cost incurred during the prior year quarter.

The Company recorded an income tax expense of $3.5 million and $14.4 million in the fourth quarter and full year of 2022, respectively. This compares to an income tax expense of $3.0 million and $14.4 million in the fourth quarter and full year of 2021, respectively. The changes in income tax expense principally reflect changes in pre-tax earnings in 2022 relative to 2021.

Asset Quality

A breakdown of non-performing loans⁽¹⁾ by loan type is as follows:

	12/31/2022				12/31/2021				12/31/2020
Loan Type	(Dollars in thousands)
Commercial	$	38			$	62			$	1,440
Mortgage		4,745				4,914				6,353
Installment		598				569				519
Sub total		5,381				5,545				8,312
Less - government guaranteed loans		1,660				435				439
Total non-performing loans	$	3,721			$	5,110			$	7,873
Ratio of non-performing loans to total portfolio loans		0.11	%			0.18	%			0.29	%
Ratio of non-performing assets to total assets		0.08	%			0.11	%			0.21	%
Ratio of allowance for credit losses to total non-performing loans		1409.16	%			924.70	%			450.01	%

(1)   Excludes loans that are classified as “troubled debt restructured” that are still performing.

The provision for credit losses was an expense of $1.4 million and $0.6 million in the fourth quarters of 2022 and 2021, respectively. The provision for credit losses was an expense of $5.3 million and a credit of $1.9 million in the full year of 2022 and 2021, respectively. The quarterly increase in the provision for credit losses in 2022 compared to 2021, was primarily the result of a change in allocation rates due to subjective factors (prior year allocation rates were decreased while current year rates increased during each respective quarter). The Company recorded loan net recoveries of $0.1 million and net charge-offs of $0.2 million in the fourth quarters of 2022 and 2021, respectively. At December 31, 2022, the allowance for credit losses totaled $52.4 million, or 1.51% of total portfolio loans compared to $47.3 million, or 1.63% of total portfolio loans at December 31, 2021.

Balance Sheet, Liquidity and Capital

Total assets were $5.00 billion at December 31, 2022, an increase of $295.0 million from December 31, 2021. Loans, excluding loans held for sale, were $3.47 billion at December 31, 2022, compared to $2.91 billion at December 31, 2021.  Deposits totaled $4.38 billion at December 31, 2022, an increase of $262.0 million from December 31, 2021. This increase is primarily due to growth in savings and interest-bearing checking, reciprocal, time and brokered time deposit account balances that were partially offset by non-interest bearing deposit account balances.

Cash and cash equivalents totaled $74.4 million at December 31, 2022, versus $109.5 million at December 31, 2021. Securities available for sale (“AFS”) totaled $779.3 million at December 31, 2022, versus $1.41 billion at December 31, 2021. The decrease in securities AFS is primarily due to the transfer of $391.6 million of securities AFS to held to maturity on April 1, 2022.

Accrued income and other assets were $128.9 million at December 31, 2022, an increase of $62.8 million from December 31, 2021. The increase is primarily due to the increases in the fair value of certain pay-fixed derivative instruments due to an increase in interest rates and deferred tax assets related to unrealized losses on securities available for sale.

Accrued expenses and other liabilities totaled $108.0 million at December 31, 2022, versus $80.2 million at December 31, 2021. The increase is primarily due to a decrease in the fair value of certain receive-fixed derivative instruments due to an increase in interest rates and an increase in income taxes payable.

Total shareholders’ equity was $347.6 million at December 31, 2022, or 6.95% of total assets compared to $398.5 million or 8.47% at December 31, 2021. Tangible common equity totaled $316.7 million at December 31, 2022, or $15.04 per share compared to $366.8 million or $17.33 per share at December 31, 2021. The decrease in shareholder equity as well as tangible common equity are primarily the result of a decline in accumulated other comprehensive income (loss) related to unrealized losses on securities available for sale due to a rise in interest rates. The Company’s wholly owned subsidiary, Independent Bank, remains significantly above “well capitalized” for regulatory purposes with the following ratios:

Regulatory Capital Ratios	12/31/2022			12/31/2021			Well Capitalized Minimum
Tier 1 capital to average total assets	8.56	%		8.57	%		5.00	%
Tier 1 common equity  to risk-weighted assets	10.97	%		11.80	%		6.50	%
Tier 1 capital to risk-weighted assets	10.97	%		11.80	%		8.00	%
Total capital to risk-weighted assets	12.22	%		13.05	%		10.00	%

Share Repurchase Plan

On December 20, 2022, the Board of Directors of the Company authorized the 2023 share repurchase plan. Under the terms of the 2023 share repurchase plan, the Company is authorized to purchase up to 1,100,000 shares, or approximately 5% of its then outstanding common stock. The repurchase plan is authorized to last through December 31, 2023. For the full year of 2022, the Company repurchased 181,586 shares at a weighted average price of $22.08 per share.

Earnings Conference Call

Brad Kessel, President and CEO, Gavin A. Mohr, CFO and Joel Rahn, EVP – Commercial Banking will review the quarterly results in a conference call for investors and analysts beginning at 11:00 am ET on Thursday, January 26, 2023.

To participate in the live conference call, please dial 1-844-200-6205 (Access Code # 132616). Also, the conference call will be accessible through an audio webcast with user-controlled slides via the following site/URL: https://events.q4inc.com/attendee/209715358.

A playback of the call can be accessed by dialing 1-866-813-9403 (Access Code # 314361). The replay will be available through February 2, 2023.

About Independent Bank Corporation

Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately $5.0 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 and insurance. 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.

Forward-Looking Statements

This press release contains forward-looking statements about Independent Bank Corporation. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date hereof. These forward-looking statements cover, among other things, anticipated future revenue and expenses and the future plans and prospects of Independent Bank Corporation. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. The COVID-19 pandemic is adversely affecting Independent Bank Corporation, its customers, counterparties, employees, and second-party service providers, and the ultimate extent of the impacts on its business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect Independent Bank Corporation’s revenues and the values of its assets and liabilities, reduce the availability of funding from certain financial institutions, lead to a tightening of credit, and increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices could affect Independent Bank Corporation in substantial and unpredictable ways. Independent Bank Corporation’s results could also be adversely affected by changes in interest rates; further increases in unemployment rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans; deterioration in the value of its investment securities; legal and regulatory developments; litigation; increased competition from both banks and non-banks; changes in the level of tariffs and other trade policies of the United States and its global trading partners; changes in customer behavior and preferences; breaches in data security; failures to safeguard personal information; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; and management’s ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputation risk.

Certain risks and important factors that could affect Independent Bank Corporation's future results are identified in its Annual Report on Form 10-K for the year ended December 31, 2021 and other reports filed with the SEC, including among other things under the heading “Risk Factors” in such Annual Report on Form 10-K. Any forward- looking statement speaks only as of the date on which it is made, and Independent Bank Corporation undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances, after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise.

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial Condition

		December 31,
			2022				2021
		(unaudited)
		(In thousands, except share amounts)
Assets
Cash and due from banks		$	70,180			$	51,069
Interest bearing deposits			4,191				58,404
Cash and Cash Equivalents			74,371				109,473
Securities available for sale			779,347				1,412,830
Securities held to maturity (fair value of $335,418 at December 31, 2022 and $0 at December 31, 2021)			374,818				—
Federal Home Loan Bank and Federal Reserve Bank stock, at cost			17,653				18,427
Loans held for sale, carried at fair value			26,518				55,470
Loans held for sale, carried at lower of cost or fair value			20,367				34,811
Loans
Commercial			1,466,853				1,203,581
Mortgage			1,368,409				1,139,659
Installment			630,090				561,805
Total Loans			3,465,352				2,905,045
Allowance for credit losses			(52,435	)			(47,252	)
Net Loans			3,412,917				2,857,793
Other real estate and repossessed assets, net			455				245
Property and equipment, net			35,893				36,404
Bank-owned life insurance			55,204				55,279
Capitalized mortgage loan servicing rights, carried at fair value			42,489				26,232
Other intangibles			2,551				3,336
Goodwill			28,300				28,300
Accrued income and other assets			128,904				66,140
Total Assets		$	4,999,787			$	4,704,740
Liabilities and Shareholders’ Equity
Deposits
Non-interest bearing		$	1,269,759			$	1,321,601
Savings and interest-bearing checking			1,973,308				1,897,487
Reciprocal			602,575				586,626
Time			321,492				308,438
Brokered time			211,935				2,938
Total Deposits			4,379,069				4,117,090
Other borrowings			86,006				30,009
Subordinated debt			39,433				39,357
Subordinated debentures			39,660				39,592
Accrued expenses and other liabilities			108,023				80,208
Total Liabilities			4,652,191				4,306,256
Shareholders’ Equity
Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding			—				—
Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 21,063,971 shares at December 31, 2022 and 21,171,036 shares at December 31, 2021			320,991				323,401
Retained earnings			119,368				74,582
Accumulated other comprehensive income (loss)			(92,763	)			501
Total Shareholders’ Equity			347,596				398,484
Total Liabilities and Shareholders’ Equity		$	4,999,787			$	4,704,740

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations

		Three Months Ended											Twelve Months Ended
			December 31,				September 30,			December 31,			December 31,
			2022				2022			2021				2022				2021
		(unaudited)
INTEREST INCOME		(In thousands, except per share amounts)
Interest and fees on loans		$	42,093			$	37,092		$	30,316			$	139,057			$	116,644
Interest on securities
Taxable			5,845				5,329			4,114				20,676				14,488
Tax-exempt			2,807				2,284			1,577				8,391				6,102
Other investments			233				220			217				884				846
Total Interest Income			50,978				44,925			36,224				169,008				138,080
INTEREST EXPENSE
Deposits			8,543				3,625			977				14,151				4,465
Other borrowings and subordinated debt and debentures			1,833				1,403			962				5,296				3,850
Total Interest Expense			10,376				5,028			1,939				19,447				8,315
Net Interest Income			40,602				39,897			34,285				149,561				129,765
Provision for credit losses			1,390				3,145			630				5,341				(1,928	)
Net Interest Income After Provision for Credit Losses			39,212				36,752			33,655				144,220				131,693
NON-INTEREST INCOME
Interchange income			3,402				4,049			3,306				13,955				14,045
Service charges on deposit accounts			3,153				3,082			2,992				12,288				10,170
Net gains (losses) on assets
Mortgage loans			1,486				2,857			5,600				6,431				35,880
Securities available for sale			—				—			(10	)			(275	)			1,411
Mortgage loan servicing, net			687				4,283			1,269				18,773				5,745
Other			2,740				2,590			2,614				10,737				9,392
Total Non-interest Income			11,468				16,861			15,771				61,909				76,643
NON-INTEREST EXPENSE
Compensation and employee benefits			20,394				20,601			19,905				81,007				79,969
Data processing			2,670				2,653			2,851				10,183				10,823
Occupancy, net			2,225				2,062			2,216				8,907				8,794
Interchange expense			1,042				927			1,083				4,242				4,434
Furniture, fixtures and equipment			933				987			1,060				4,007				4,172
Communications			629				723			739				2,871				3,080
Loan and collection			679				772			819				2,657				3,172
FDIC deposit insurance			572				591			413				2,142				1,396
Legal and professional			588				573			534				2,133				2,068
Advertising			489				345			599				2,074				1,918
Conversion related expense			—				—			191				50				1,827
Costs (recoveries) related to unfunded lending commitments			(77	)			382			844				599				1,207
Other			1,947				1,750			2,700				7,469				8,163
Total Non-interest Expense			32,091				32,366			33,954				128,341				131,023
Income Before Income Tax			18,589				21,247			15,472				77,788				77,313
Income tax expense			3,503				3,950			2,964				14,437				14,418
Net Income		$	15,086			$	17,297		$	12,508			$	63,351			$	62,895
Net income per common share
Basic		$	0.72			$	0.82		$	0.59			$	3.00			$	2.91
Diluted		$	0.71			$	0.81		$	0.58			$	2.97			$	2.88

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Selected Financial Data

	December 31, 2022				September 30, 2022				June 30, 2022				March 31, 2022				December 31, 2021
	(unaudited)
	(Dollars in thousands except per share data)
Three Months Ended
Net interest income	$	40,602			$	39,897			$	36,061			$	33,001			$	34,285
Provision for credit losses		1,390				3,145				2,379				(1,573	)			630
Non-interest income		11,468				16,861				14,632				18,948				15,771
Non-interest expense		32,091				32,366				32,434				31,450				33,954
Income before income tax		18,589				21,247				15,880				22,072				15,472
Income tax expense		3,503				3,950				2,879				4,105				2,964
Net income	$	15,086			$	17,297			$	13,001			$	17,967			$	12,508
Basic earnings per share	$	0.72			$	0.82			$	0.62			$	0.85			$	0.59
Diluted earnings per share		0.71				0.81				0.61				0.84				0.58
Cash dividend per share		0.22				0.22				0.22				0.22				0.21
Average shares outstanding		21,064,556				21,057,673				21,070,266				21,191,860				21,256,367
Average diluted shares outstanding		21,266,876				21,251,933				21,266,476				21,398,128				21,473,963
Performance Ratios
Return on average assets		1.21	%			1.40	%			1.10	%			1.54	%			1.07	%
Return on average equity		17.94				20.48				15.68				19.38				12.61
Efficiency ratio (1)		60.82				56.26				62.50				59.62				66.68
As a Percent of Average Interest-Earning Assets (1)
Interest income		4.41	%			3.92	%			3.47	%			3.16	%			3.30	%
Interest expense		0.89				0.43				0.21				0.16				0.17
Net interest income		3.52				3.49				3.26				3.00				3.13
Average Balances
Loans	$	3,449,944			$	3,360,621			$	3,145,095			$	2,980,098			$	2,957,985
Securities		1,164,809				1,226,203				1,312,934				1,407,225				1,367,038
Total earning assets		4,637,475				4,610,307				4,493,714				4,492,757				4,433,400
Total assets		4,934,859				4,884,841				4,758,960				4,721,205				4,654,491
Deposits		4,350,748				4,326,958				4,221,047				4,158,528				4,069,901
Interest bearing liabilities		3,159,374				3,075,210				3,005,103				2,950,337				2,863,057
Shareholders' equity		333,610				335,120				332,610				376,010				393,477
End of Period
Capital
Tangible common equity ratio		6.37	%			6.15	%			6.26	%			6.85	%			7.85	%
Average equity to average assets		6.76				6.86				6.99				7.96				8.45
Common shareholders' equity per share of common stock	$	16.50			$	15.78			$	15.73			$	16.79			$	18.82
Tangible common equity per share of common stock		15.04				14.30				14.25				15.31				17.33
Total shares outstanding		21,063,971				21,063,954				21,049,218				21,168,230				21,171,036
Selected Balances
Loans	$	3,465,352			$	3,409,858			$	3,258,850			$	3,004,065			$	2,905,045
Securities		1,154,165				1,183,701				1,241,312				1,400,137				1,412,830
Total earning assets		4,688,246				4,633,876				4,552,185				4,514,590				4,484,987
Total assets		4,999,787				4,931,377				4,826,209				4,761,983				4,704,740
Deposits		4,379,069				4,327,028				4,290,574				4,205,498				4,117,090
Interest bearing liabilities		3,274,409				3,116,027				3,037,278				2,996,112				2,904,447
Shareholders' equity		347,596				332,308				331,134				355,449				398,484

(1)   Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.  

Reconciliation of Non-GAAP Financial Measures
Independent Bank Corporation

Independent Bank Corporation believes non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate the adequacy of common equity and performance trends.  Tangible common equity is used by the Company to measure the quality of capital.

Reconciliation of Non-GAAP Financial Measures

	Three Months Ended December 31,								Twelve Months Ended December 31,
		2022				2021				2022				2021
	(Dollars in thousands)
Net Interest Margin, Fully Taxable Equivalent ("FTE")
Net interest income	$	40,602			$	34,285			$	149,561			$	129,765
Add:  taxable equivalent adjustment		453				492				1,878				1,866
Net interest income - taxable equivalent	$	41,055			$	34,777			$	151,439			$	131,631
Net interest margin (GAAP) (1)		3.48	%			3.08	%			3.28	%			3.06	%
Net interest margin (FTE) (1)		3.52	%			3.13	%			3.32	%			3.10	%

(1)   Annualized.  

Tangible Common Equity Ratio

	December 31, 2022				September 30, 2022				June 30, 2022				March 31, 2022				December 31, 2021
	(Dollars in thousands)
Common shareholders' equity	$	347,596			$	332,308			$	331,134			$	355,449			$	398,484
Less:
Goodwill		28,300				28,300				28,300				28,300				28,300
Other intangibles		2,551				2,697				2,871				3,104				3,336
Tangible common equity	$	316,745			$	301,311			$	299,963			$	324,045			$	366,848
Total assets	$	4,999,787			$	4,931,377			$	4,826,209			$	4,761,983			$	4,704,740
Less:
Goodwill		28,300				28,300				28,300				28,300				28,300
Other intangibles		2,551				2,697				2,871				3,104				3,336
Tangible assets	$	4,968,936			$	4,900,380			$	4,795,038			$	4,730,579			$	4,673,104
Common equity ratio		6.95	%			6.74	%			6.86	%			7.46	%			8.47	%
Tangible common equity ratio		6.37	%			6.15	%			6.26	%			6.85	%			7.85	%
Tangible Common Equity per Share of Common Stock:
Common shareholders' equity	$	347,596			$	332,308			$	331,134			$	355,449			$	398,484
Tangible common equity	$	316,745			$	301,311			$	299,963			$	324,045			$	366,848
Shares of common stock outstanding (in thousands)		21,064				21,064				21,049				21,168				21,171
Common shareholders' equity per share of common stock	$	16.50			$	15.78			$	15.73			$	16.79			$	18.82
Tangible common equity per share of common stock	$	15.04			$	14.30			$	14.25			$	15.31			$	17.33

The tangible common equity ratio removes the effect of goodwill and other intangible assets from capital and total assets.  Tangible common equity per share of common stock removes the effect of goodwill and other intangible assets from common shareholders’ equity per share of common stock.

 

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

 

FAQ

What were Independent Bank Corporation's fourth quarter 2022 earnings results for IBCP?

For Q4 2022, Independent Bank Corporation reported a net income of $15.1 million, or $0.71 per diluted share, compared to $12.5 million, or $0.58 per diluted share in Q4 2021.

How much did IBCP's commercial loans grow in the fourth quarter of 2022?

In Q4 2022, IBCP experienced a net growth in commercial loans of $58.6 million, equivalent to 16.5% annualized growth.

What was the net interest income for IBCP in the fourth quarter of 2022?

Independent Bank Corporation reported a net interest income of $40.6 million in Q4 2022, representing an increase of 18.4% from the prior year.

Did Independent Bank Corporation declare any dividends in 2022?

Yes, IBCP declared a dividend of 22 cents per share on November 14, 2022.

What is the current asset value of Independent Bank Corporation as of December 31, 2022?

As of December 31, 2022, Independent Bank Corporation's total assets stood at $5 billion.