Independent Bank Corporation Reports 2024 Third Quarter Results
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.
- 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%
- 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
Third Quarter Highlights
Highlights for the third quarter of 2024 include:
- Increases in net interest income of
$0.5 million (or4.9% 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 (or8.9% annualized) from June 30, 2024; - Net growth in loans of
$90.4 million (or9.3% 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
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
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
Non-interest income totaled
Net gains on mortgage loans in the third quarters of 2024 and 2023, were approximately
Mortgage loan servicing, net, generated income (expense) of
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
The Company recorded income tax expense of
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
Balance Sheet, Capital and Liquidity
Total assets were
Cash and cash equivalents totaled
Total shareholders’ equity was
The Company’s wholly owned subsidiary, Independent Bank, remains significantly above “well capitalized” for regulatory purposes with the following ratios:
Regulatory Capital Ratios | 9/30/2024 | 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
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
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
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 | 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
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?
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