Independent Bank Corporation Reports 2022 Fourth Quarter Results
January 26, 2023 at 01:00 pm
Share
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
Independent Bank Corporation is a bank holding company for Independent Bank (the Bank). The Bank provides a full range of financial services, including commercial banking, mortgage lending, investments, and insurance. It offers a broad range of banking services to individuals and businesses, including checking and savings accounts, commercial lending, direct and indirect consumer financing, mortgage lending, and safe deposit box services. Its principal markets are the rural and suburban communities across Lower Michigan, which are served by the bank's main office in Grand Rapids, Michigan, and a total of 56 branches, two drive-thru facilities, and five Michigan-based loan production offices. It also has one loan production facility in Ohio (Fairlawn). The bank's branches provide full-service lobby and drive-thru services, as well as automatic teller machines (ATMs). In addition, it also provides Internet and mobile banking capabilities to its customers.