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Independent Bank Corporation Reports 2024 Third Quarter Results

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Independent Bank (NASDAQ: IBCP) reported Q3 2024 net income of $13.8 million, or $0.65 per diluted share, compared to $17.5 million, or $0.83 per diluted share, in Q3 2023. The quarter saw net interest income increase by $2.4 million (6.2%) year-over-year to $41.9 million. Core deposits grew by $100.1 million (8.9% annualized) and loans increased by $90.4 million (9.3% annualized) from June 30, 2024. The company maintained strong asset quality with non-performing loans at 0.13% of total portfolio loans. Tangible book value per share increased by $3.69 (22.3%) compared to Q3 2023.

Independent Bank (NASDAQ: IBCP) ha riportato un reddito netto per il terzo trimestre del 2024 di $13,8 milioni, ovvero $0,65 per azione diluita, rispetto a $17,5 milioni, o $0,83 per azione diluita, nel terzo trimestre del 2023. Durante il trimestre, il reddito netto da interessi è aumentato di $2,4 milioni (6,2%) rispetto all'anno precedente, raggiungendo $41,9 milioni. I depositi core sono cresciuti di $100,1 milioni (8,9% annualizzato) e i prestiti sono aumentati di $90,4 milioni (9,3% annualizzato) dal 30 giugno 2024. L'azienda ha mantenuto una forte qualità degli attivi con prestiti non performanti pari allo 0,13% del portafoglio totale di prestiti. Il valore contabile tangibile per azione è aumentato di $3,69 (22,3%) rispetto al terzo trimestre del 2023.

Independent Bank (NASDAQ: IBCP) reportó un ingreso neto de $13,8 millones para el tercer trimestre de 2024, o $0,65 por acción diluida, en comparación con $17,5 millones, o $0,83 por acción diluida, en el tercer trimestre de 2023. Durante el trimestre, los ingresos netos por intereses aumentaron en $2,4 millones (6,2%) interanualmente, alcanzando los $41,9 millones. Los depósitos básicos crecieron en $100,1 millones (8,9% anualizado) y los préstamos aumentaron en $90,4 millones (9,3% anualizado) desde el 30 de junio de 2024. La empresa mantuvo una fuerte calidad de activos, con préstamos no productivos en el 0,13% del total de préstamos en cartera. El valor contable tangible por acción aumentó en $3,69 (22,3%) en comparación con el tercer trimestre de 2023.

Independent Bank (NASDAQ: IBCP)는 2024년 3분기 순이익으로 1,380만 달러, 또는 희석 주당 0.65달러를 보고하였으며, 이는 2023년 3분기의 1,750만 달러, 또는 희석 주당 0.83달러와 비교된다. 이번 분기에는 순이자 수익이 전년 대비 240만 달러(6.2%) 증가하여 4,190만 달러에 달했다. 핵심 예금은 1억 달러(연율 8.9%) 증가하였고, 대출은 9040만 달러(연율 9.3%) 증가하였다. 회사는 총 포트폴리오 대출의 0.13%에 해당하는 부실 대출을 유지하며 강력한 자산 품질을 유지하였다. 주당 유형 장부 가치는 3.69달러(22.3%) 증가하였다, 2023년 3분기 대비.

Independent Bank (NASDAQ: IBCP) a annoncé un revenu net de 13,8 millions de dollars pour le troisième trimestre de 2024, soit 0,65 dollar par action diluée, contre 17,5 millions de dollars, ou 0,83 dollar par action diluée, au troisième trimestre de 2023. Le trimestre a connu une augmentation des revenus d'intérêts nets de 2,4 millions de dollars (6,2 %) par rapport à l'année précédente, atteignant 41,9 millions de dollars. Les dépôts de base ont augmenté de 100,1 millions de dollars (8,9 % sur une base annualisée) et les prêts ont augmenté de 90,4 millions de dollars (9,3 % sur une base annualisée) depuis le 30 juin 2024. L'entreprise a maintenu une solide qualité d'actifs, avec des prêts non performants à 0,13 % du portefeuille total de prêts. La valeur comptable tangible par action a augmenté de 3,69 dollars (22,3 %) par rapport au troisième trimestre de 2023.

Independent Bank (NASDAQ: IBCP) berichtete im dritten Quartal 2024 einen Nettogewinn von 13,8 Millionen Dollar, oder 0,65 Dollar pro verwässerter Aktie, im Vergleich zu 17,5 Millionen Dollar, oder 0,83 Dollar pro verwässerter Aktie, im dritten Quartal 2023. Im Laufe des Quartals stiegen die Nettozinseinnahmen um 2,4 Millionen Dollar (6,2%) im Jahresvergleich auf 41,9 Millionen Dollar. Die Kern-Depositen wuchsen um 100,1 Millionen Dollar (annualisiert 8,9%) und die Kredite erhöhten sich um 90,4 Millionen Dollar (annualisiert 9,3%) seit dem 30. Juni 2024. Das Unternehmen hielt eine starke Vermögensqualität mit notleidenden Krediten bei 0,13% des Gesamtportfolios. Der greifbare Buchwert pro Aktie stieg um 3,69 Dollar (22,3%) im Vergleich zum dritten Quartal 2023.

Positive
  • Net interest income increased by $2.4 million (6.2%) year-over-year
  • Core deposits grew by $100.1 million (8.9% annualized)
  • Loan portfolio expanded by $90.4 million (9.3% annualized)
  • Tangible book value per share increased 22.3% year-over-year
  • Strong capital ratios with Tier 1 capital at 11.74%
  • Excellent credit metrics with non-performing loans at just 0.13%
Negative
  • Net income decreased from $17.5 million to $13.8 million year-over-year
  • Earnings per share declined from $0.83 to $0.65 compared to Q3 2023
  • $4.2 million negative MSR fair value adjustment
  • Non-interest income decreased from $15.6 million to $9.5 million year-over-year

Insights

Independent Bank delivered a mixed Q3 2024 performance with net income of $13.8 million ($0.65 per share), down from $17.5 million ($0.83 per share) year-over-year. Key positives include solid loan growth at 9.3% annualized and core deposit growth of 8.9% annualized. Net interest income increased by 6.2% year-over-year to $41.9 million, with net interest margin improving to 3.37% from 3.23%. However, non-interest income declined significantly due to a $4.2 million negative MSR valuation adjustment. Credit quality remains strong with non-performing loans at just 0.13% of total portfolio loans. The bank maintains robust capital ratios well above regulatory requirements and has ample liquidity with $1.58 billion in unused credit lines.

Third Quarter Highlights

Highlights for the third quarter of 2024 include:

  • Increases in net interest income of $0.5 million (or 4.9% annualized) from June 30, 2024;
  • An increase in tangible book value per share of $3.69 (22.3%) over the third quarter of 2023;
  • Net growth in core deposits of $100.1 million (or 8.9% annualized) from June 30, 2024;
  • Net growth in loans of $90.4 million (or 9.3% annualized) from June 30, 2024; and
  • The payment of a 24 cent per share dividend on common stock on August 15, 2024.

GRAND RAPIDS, Mich., Oct. 24, 2024 (GLOBE NEWSWIRE) -- Independent Bank Corporation (NASDAQ: IBCP) reported third quarter 2024 net income of $13.8 million, or $0.65 per diluted share, versus net income of $17.5 million, or $0.83 per diluted share, in the prior-year period.

William B. (“Brad”) Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: “I am proud of our team and very pleased with our third quarter 2024 results, driving organic growth on both sides of the balance sheet. Overall loans increased 9.3% (annualized), while core deposits are up 8.9% (annualized). We were able to generate net interest income growth on both a linked quarter basis and on a year over year quarterly basis. We believe that our expenses continue to be well managed, and we continue to see improved operational scale from strategic investments we have made in recent years. Our credit metrics continue to be excellent, with watch credits and non-performing assets near historic lows. These fundamentals continue to drive good growth in tangible book value per share (22%) compared to the prior year quarter. Based on a robust commercial loan pipeline, the past record of our core group of professionals and the on-going strategic initiative to add talented bankers to our team, we are optimistic about continuing these growth trends for the remainder of the year and into 2025.”

Significant items impacting comparable third quarter 2024 and 2023 results include the following:

  • Changes in the fair value due to price of capitalized mortgage loan servicing rights (the “MSR Changes”) of  $(4.2) million ($(0.16) per diluted share, after taxes) for the three-month period ended September 30, 2024, as compared to $1.6 million ($0.06 per diluted share, after taxes) for the three-months ended September 30, 2023.

Operating Results

The Company’s net interest income totaled $41.9 million during the third quarter of 2024, an increase of $2.4 million, or 6.2% from the year-ago period, and an increase of $0.5 million, or 1.2%, from the second quarter of 2024. The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.37% during the third quarter of 2024, compared to 3.23% in the year-ago period, and 3.40% in the second quarter of 2024. The year-over-year quarterly increase in net interest income was due to an increase in average interest-earning assets and the net interest margin. The increase in net interest income compared to the linked quarter was due to an increase in average interest earning assets that was partially offset by a decrease in the net interest margin. Average interest-earning assets were $4.99 billion in the third quarter of 2024, compared to $4.89 billion in the year ago quarter and $4.89 billion in the second quarter of 2024.

Non-interest income totaled $9.5 million for the third quarter of 2024, compared to $15.6 million in the comparable prior year period. This change was primarily due to variances in mortgage banking related revenues.

Net gains on mortgage loans in the third quarters of 2024 and 2023, were approximately $2.2 million and $2.1 million, respectively. The comparative quarterly increase in net gains on mortgage loans was primarily due to an increase in both gain on sale margin on mortgage loans sold and a increase in the volume of mortgage loans sold.

Mortgage loan servicing, net, generated income (expense) of $(3.1) million and $2.7 million in the third quarters of 2024 and 2023, respectively. The significant variance in mortgage loan servicing, net is primarily due to changes in the fair value of capitalized mortgage loan servicing rights associated with changes in interest rates and the associated expected future prepayment levels and expected float rates. Mortgage loan servicing, net activity is summarized in the following table:

 Three months ended Nine months ended
 9/30/2024 9/30/2023 9/30/2024 9/30/2023
 (In thousands)
Mortgage loan servicing, net:       
Revenue, net$2,248  $2,197  $6,681  $6,612 
Fair value change due to price (4,155)  1,556   (1,979)  3,364 
Fair value change due to pay-downs (1,223)  (1,085)  (3,016)  (2,908)
Total$(3,130) $2,668  $1,686  $7,068 
 

Non-interest expenses totaled $32.6 million in the third quarter of 2024, compared to $32.0 million in the year-ago period.

The Company recorded income tax expense of $3.5 million in the third quarter of 2024. This compares to an income tax expense of $4.1 million in the third quarter of 2023. The changes in income tax expense principally reflect changes in pre-tax earnings in 2024 relative to 2023.

Asset Quality

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

 9/30/2024 12/31/2023 9/30/2023
Loan Type(Dollars in thousands)
Commercial$59  $28  $31 
Mortgage 6,525   6,425   6,137 
Installment 666   970   801 
Sub total 7,250   7,423   6,969 
Less - government guaranteed loans 2,102   2,191   2,254 
Total non-performing loans$5,148  $5,232  $4,715 
Ratio of non-performing loans to total portfolio loans 0.13%  0.14%  0.13%
Ratio of non-performing assets to total assets 0.11%  0.11%  0.10%
Ratio of allowance for credit losses to total non-performing loans 1115.85%  1044.69%  1176.99%
            

The provision for credit losses was an expense of $1.49 million and $1.35 million in the third quarters of 2024 and 2023, respectively. We recorded loan net charge offs (recoveries) of $0.31 million and $(0.18) million in the third quarters of 2024 and 2023, respectively. At September 30, 2024, the allowance for credit losses for loans totaled $57.4 million, or 1.46% of total portfolio loans compared to $54.7 million, or 1.44% of total portfolio loans at December 31, 2023.

Balance Sheet, Capital and Liquidity

Total assets were $5.26 billion at September 30, 2024, a decrease of $4.5 million from December 31, 2023. Loans, excluding loans held for sale, were $3.94 billion at September 30, 2024, compared to $3.79 billion at December 31, 2023.  Deposits totaled $4.63 billion at September 30, 2024, an increase of $4.0 million from December 31, 2023. This increase is primarily due to increases in savings and interest-bearing checking, reciprocal and time deposits that were partially offset by a decrease in non-interest bearings deposits and brokered time deposits.

Cash and cash equivalents totaled $121.6 million at September 30, 2024, versus $169.8 million at December 31, 2023. Securities available for sale (“AFS”) totaled $589.0 million at September 30, 2024, versus $679.4 million at December 31, 2023.

Total shareholders’ equity was $452.4 million at September 30, 2024, or 8.60% of total assets compared to $404.4 million or 7.68% at December 31, 2023. Tangible common equity totaled $422.5 million at September 30, 2024, or $20.22 per share compared to $374.1 million or $17.96 per share at December 31, 2023. The increase in shareholder equity as well as tangible common equity are primarily the result of earnings retention and a decrease in accumulated other comprehensive loss.

The Company’s wholly owned subsidiary, Independent Bank, remains significantly above “well capitalized” for regulatory purposes with the following ratios:

Regulatory Capital Ratios9/30/2024 12/31/2023 Well
Capitalized
Minimum
      
Tier 1 capital to average total assets 9.36%  8.80%  5.00%
Tier 1 common equity  to risk-weighted assets 11.74%  11.21%  6.50%
Tier 1 capital to risk-weighted assets 11.74%  11.21%  8.00%
Total capital to risk-weighted assets 13.00%  12.46%  10.00%
            

At September 30, 2024, in addition to liquidity available from our normal operating, funding, and investing activities, we had unused credit lines with the FHLB and FRB of approximately $1.11 billion and $471.7 million, respectively. We also had approximately $771.3 million in fair value of unpledged securities AFS and HTM at September 30, 2024 which could be pledged for an estimated additional borrowing capacity at the FHLB and FRB of approximately $718.0 million.

Share Repurchase Plan

On December 19, 2023, the Board of Directors of the Company authorized the 2024 share repurchase plan. Under the terms of the 2024 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, 2024. The Company did not repurchase any shares of common stock during the first nine months of 2024.

Earnings Conference Call

Brad Kessel, President and CEO, Gavin 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, October 24, 2024.

To participate in the live conference call, please dial 1-833-470-1428 (Access Code # 957797). 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/824908063.

A playback of the call can be accessed by dialing 1-866-813-9403 (Access Code # 159381). The replay will be available through October 31, 2024.

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, consumer banking, 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 presentation contains forward-looking statements, which are any statements or information that are not historical facts. These forward-looking statements include statements about our anticipated future revenue and expenses and our future plans and prospects.

Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. For example, deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding to us, lead to a tightening of credit, and increase stock price volatility. Our results could also be adversely affected by changes in interest rates; increases in unemployment rates; deterioration in the credit quality of our loan portfolios or in the value of the collateral securing those loans; deterioration in the value of our investment securities; legal and regulatory developments; changes in customer behavior and preferences; breaches in data security; and management’s ability to effectively manage the multitude of risks facing our business. Key risk factors that could affect our future results are described in more detail in our Annual Report on Form 10-K for the year ended December 31, 2023 and the other reports we file with the SEC, including under the heading “Risk Factors.” Investors should not place undue reliance on forward-looking statements as a prediction of our future results.

Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.


INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial Condition
 
 September 30, 2024 December 31, 2023
 (Unaudited)
 (In thousands, except share
amounts)
Assets   
Cash and due from banks$61,503  $68,208 
Interest bearing deposits 60,057   101,573 
Cash and Cash Equivalents 121,560   169,781 
Securities available for sale 588,950   679,350 
Securities held to maturity (fair value of $314,638 at September 30, 2024 and $318,606 at December 31, 2023) 343,362   353,988 
Federal Home Loan Bank and Federal Reserve Bank stock, at cost 16,099   16,821 
Loans held for sale, carried at fair value 14,029   12,063 
Loans   
Commercial 1,825,247   1,679,731 
Mortgage 1,511,400   1,485,872 
Installment 605,640   625,298 
Total Loans 3,942,287   3,790,901 
Allowance for credit losses (57,444)  (54,658)
Net Loans 3,884,843   3,736,243 
Other real estate and repossessed assets, net 781   569 
Property and equipment, net 35,250   35,523 
Bank-owned life insurance 54,017   54,341 
Capitalized mortgage loan servicing rights, carried at fair value 40,204   42,243 
Other intangibles 1,617   2,004 
Goodwill 28,300   28,300 
Accrued income and other assets 130,256   132,500 
Total Assets$5,259,268  $5,263,726 
Liabilities and Shareholders' Equity   
Deposits   
Non-interest bearing$1,023,739  $1,076,093 
Savings and interest-bearing checking 1,947,571   1,905,701 
Reciprocal 995,469   832,020 
Time 620,446   524,325 
Brokered time 39,650   284,740 
Total Deposits 4,626,875   4,622,879 
Other borrowings    50,026 
Subordinated debt 39,567   39,510 
Subordinated debentures 39,779   39,728 
Accrued expenses and other liabilities 100,678   107,134 
Total Liabilities 4,806,899   4,859,277 
    
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: 20,893,800 shares at September 30, 2024 and 20,835,633 shares at December 31, 2023 318,216   317,483 
Retained earnings 192,405   159,108 
Accumulated other comprehensive loss (58,252)  (72,142)
Total Shareholders’ Equity 452,369   404,449 
Total Liabilities and Shareholders’ Equity$5,259,268  $5,263,726 



INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
 
 Three Months Ended Nine Months Ended
 September 30, June 30, September 30, September 30,
 2024 2024 2023 2024 2023
 (Unaudited)
 (In thousands, except per share amounts)
Interest Income                   
Interest and fees on loans$58,410  $56,786  $51,419  $170,239  $143,392 
Interest on securities         
Taxable 4,502   4,713   5,865   14,466   17,668 
Tax-exempt 3,404   3,400   3,409   10,195   9,775 
Other investments 2,018   1,439   1,739   4,898   3,481 
Total Interest Income 68,334   66,338   62,432   199,798   174,316 
Interest Expense         
Deposits 24,462   22,876   20,743   70,148   51,964 
Other borrowings and subordinated debt and debentures 2,018   2,116   2,262   6,253   6,134 
Total Interest Expense 26,480   24,992   23,005   76,401   58,098 
Net Interest Income 41,854   41,346   39,427   123,397   116,218 
Provision for credit losses 1,488   19   1,350   2,251   6,827 
Net Interest Income After Provision for Credit Losses 40,366   41,327   38,077   121,146   109,391 
Non-interest Income         
Interchange income 4,146   3,401   4,100   10,698   10,660 
Service charges on deposit accounts 3,085   2,937   3,309   8,894   9,300 
Net gains (losses) on assets         
Mortgage loans 2,177   1,333   2,099   4,874   5,475 
Equity securities at fair value (8)  2,693      2,685    
Securities available for sale (145)        (414)  (222)
Mortgage loan servicing, net (3,130)  2,091   2,668   1,686   7,068 
Other 3,383   2,717   3,435   8,818   9,298 
Total Non-interest Income 9,508   15,172   15,611   37,241   41,579 
Non-interest Expense         
Compensation and employee benefits 20,048   21,251   19,975   62,069   59,916 
Data processing 3,379   3,257   3,071   9,891   8,953 
Occupancy, net 1,893   1,886   1,971   5,853   5,975 
Interchange expense 1,149   1,127   1,119   3,373   3,222 
Furniture, fixtures and equipment 932   948   927   2,834   2,782 
FDIC deposit insurance 664   695   677   2,141   2,209 
Loan and collection 657   699   520   1,868   1,718 
Advertising 581   788   360   1,860   1,286 
Legal and professional 687   544   543   1,717   1,623 
Communications 519   499   568   1,633   1,871 
Costs (recoveries) related to unfunded lending commitments 113   (137)  451   (676)  76 
Other 1,961   1,776   1,854   5,546   5,610 
Total Non-interest Expense 32,583   33,333   32,036   98,109   95,241 
Income Before Income Tax 17,291   23,166   21,652   60,278   55,729 
Income tax expense 3,481   4,638   4,109   11,949   10,405 
Net Income$13,810  $18,528  $17,543  $48,329  $45,324 
Net Income Per Common Share         
Basic$0.66  $0.89  $0.84  $2.31  $2.16 
Diluted$0.65  $0.88  $0.83  $2.29  $2.14 



INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Selected Financial Data
 
 September 30,
2024
 June 30,
2024
 March 31,
2024
 December 31,
2023
 September 30,
2023
 (unaudited)
 (Dollars in thousands except per share data)
Three Months Ended         
Net interest income$41,854  $41,346  $40,197  $40,111  $39,427 
Provision for credit losses 1,488   19   744   (617)  1,350 
Non-interest income 9,508   15,172   12,561   9,097   15,611 
Non-interest expense 32,583   33,333   32,193   31,878   32,036 
Income before income tax 17,291   23,166   19,821   17,947   21,652 
Income tax expense 3,481   4,638   3,830   4,204   4,109 
Net income$13,810  $18,528  $15,991  $13,743  $17,543 
          
Basic earnings per share$0.66  $0.89  $0.77  $0.66  $0.84 
Diluted earnings per share 0.65   0.88   0.76   0.65   0.83 
Cash dividend per share 0.24   0.24   0.24   0.23   0.23 
          
Average shares outstanding 20,896,019   20,901,741   20,877,067   20,840,680   20,922,431 
Average diluted shares outstanding 21,115,273   21,105,387   21,079,607   21,049,030   21,114,445 
          
Performance Ratios         
Return on average assets 1.04%  1.44%  1.24%  1.04%  1.34%
Return on average equity 12.54   17.98   15.95   14.36   18.68 
Efficiency ratio (1) 62.82   61.49   60.26   64.27   57.52 
          
As a Percent of Average Interest-Earning Assets (1)        
Interest income 5.48%  5.45%  5.34%  5.29%  5.10%
Interest expense 2.11   2.05   2.04   2.03   1.87 
Net interest income 3.37   3.40   3.30   3.26   3.23 
          
Average Balances         
Loans$3,909,954  $3,849,199  $3,810,526  $3,764,752  $3,694,534 
Securities 933,750   944,435   999,140   1,027,240   1,071,211 
Total earning assets 4,985,842   4,893,367   4,910,669   4,928,697   4,892,208 
Total assets 5,275,623   5,181,317   5,201,452   5,233,666   5,192,114 
Deposits 4,616,119   4,531,917   4,561,645   4,612,797   4,577,796 
Interest bearing liabilities 3,689,684   3,611,972   3,627,446   3,635,771   3,554,179 
Shareholders' equity 438,077   414,549   403,225   379,614   372,667 

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


INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Selected Financial Data (continued)
 
 September 30,
2024
 June 30,
2024
 March 31,
2024
 December 31,
2023
 September 30,
2023
 (unaudited)
 (Dollars in thousands except per share data)
End of Period         
Capital         
Tangible common equity ratio 8.08%  7.63%  7.41%  7.15%  6.67%
Tangible common equity ratio excluding accumulated other comprehensive loss 8.99   8.76   8.57   8.31   8.20 
Average equity to average assets 8.30   8.00   7.75   7.25   7.18 
Total capital to risk-weighted assets (2) 14.25
   14.21   13.85   13.71   13.58 
Tier 1 capital to risk-weighted assets (2) 12.06
   12.01   11.65   11.50   11.37 
Common equity tier 1 capital to risk-weighted assets (2) 11.16
   11.09   10.73   10.58   10.44 
Tier 1 capital to average assets (2) 9.63
   9.59   9.29   9.03   8.94 
Common shareholders' equity per share of common stock$21.65  $20.60  $19.88  $19.41  $17.99 
Tangible common equity per share of common stock 20.22   19.16   18.44   17.96   16.53 
Total shares outstanding 20,893,800   20,899,358   20,903,677   20,835,633   20,850,455 
          
Selected Balances         
Loans$3,942,287  $3,851,889  $3,839,965  $3,790,901  $3,741,486 
Securities 932,312   936,194   963,577   1,033,338   1,043,540 
Total earning assets 4,964,784   4,979,555   4,949,496   4,954,696   4,884,720 
Total assets 5,259,268   5,277,500   5,231,255   5,263,726   5,200,018 
Deposits 4,626,875   4,614,328   4,582,414   4,622,879   4,585,612 
Interest bearing liabilities 3,682,482   3,694,025   3,677,060   3,676,050   3,573,187 
Shareholders' equity 452,369   430,459   415,570   404,449   374,998 

(2) September 30, 2024 are Preliminary.

 
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
September 30,
 Nine Months Ended
September 30,
  2024   2023   2024   2023 
 (Dollars in thousands)
Net Interest Margin, Fully Taxable Equivalent ("FTE")       
        
Net interest income$41,854  $39,427  $123,397  $116,218 
Add:  taxable equivalent adjustment 158   202   513   722 
Net interest income - taxable equivalent$42,012  $39,629  $123,910  $116,940 
Net interest margin (GAAP) (1) 3.35%  3.21%  3.34%  3.25%
Net interest margin (FTE) (1) 3.37%  3.23%  3.35%  3.26%

(1) Annualized.


Tangible Common Equity Ratio

 September 30,
2024
 June 30,
2024
 March 31,
2024
 December 31,
2023
 September 30,
2023
 (Dollars in thousands)
Common shareholders' equity$452,369  $430,459  $415,570  $404,449  $374,998 
Less:         
Goodwill 28,300   28,300   28,300   28,300   28,300 
Other intangibles 1,617   1,746   1,875   2,004   2,141 
Tangible common equity 422,452   400,413   385,395   374,145   344,557 
Addition:         
Accumulated other comprehensive loss for regulatory purposes 52,454   65,030   65,831   66,344   86,507 
Tangible common equity excluding other comprehensive loss adjustments$474,906  $465,443  $451,226  $440,489  $431,064 
          
Total assets$5,259,268  $5,277,500  $5,231,255  $5,263,726  $5,200,018 
Less:         
Goodwill 28,300   28,300   28,300   28,300   28,300 
Other intangibles 1,617   1,746   1,875   2,004   2,141 
Tangible assets 5,229,351   5,247,454   5,201,080   5,233,422   5,169,577 
Addition:         
Net unrealized losses on available for sale securities and derivatives, net of tax 52,454   65,030   65,831   66,344   86,507 
Tangible assets excluding other comprehensive loss adjustments$5,281,805  $5,312,484  $5,266,911  $5,299,766  $5,256,084 
          
Common equity ratio 8.60%  8.16%  7.94%  7.68%  7.21%
Tangible common equity ratio 8.08%  7.63%  7.41%  7.15%  6.67%
Tangible common equity ratio excluding other comprehensive loss 8.99%  8.76%  8.57%  8.31%  8.20%
          
Tangible Common Equity per Share of Common Stock:
          
Common shareholders' equity$452,369  $430,459  $415,570  $404,449  $374,998 
Tangible common equity$422,452  $400,413  $385,395  $374,145  $344,557 
Shares of common stock outstanding (in thousands) 20,894   20,899   20,904   20,836   20,850 
          
Common shareholders' equity per share of common stock$21.65  $20.60  $19.88  $19.41  $17.99 
Tangible common equity per share of common stock$20.22  $19.16  $18.44  $17.96  $16.53 
 

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 was Independent Bank 's (IBCP) earnings per share in Q3 2024?

Independent Bank reported earnings of $0.65 per diluted share in Q3 2024.

How much did IBCP's loan portfolio grow in Q3 2024?

IBCP's loan portfolio grew by $90.4 million, representing a 9.3% annualized growth rate from June 30, 2024.

What was IBCP's net interest income for Q3 2024?

IBCP's net interest income was $41.9 million in Q3 2024, an increase of $2.4 million or 6.2% from the year-ago period.

How much did IBCP's tangible book value per share increase in Q3 2024?

IBCP's tangible book value per share increased by $3.69, or 22.3%, compared to Q3 2023.

Independent Bank Corp.

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