GRAND RAPIDS, Mich., March 28, 2025 (GLOBE NEWSWIRE) -- Independent Bank Corporation (NASDAQ: IBCP), the holding company of Independent Bank, a Michigan-based community bank, announced that it expects to issue its 2025 first quarter results on Thursday, April 24, 2025, at approximately 8:00 am ET. The release will be available on the Internet at IndependentBank.com within the “News” section of the “Investor Relations” area of the Company’s website. Brad Kessel, President and CEO, Gavin Mohr, CFO and Joel Ra ...

Financial Performance - As of December 31, 2024, total loans amounted to $4.039 billion and total deposits reached $4.654 billion[15] - Interest and fees on loans represented 70.7% of total revenue in 2024, up from 68.1% in 2023 and 60.2% in 2022[18] - Other interest income accounted for 11.8% of total revenue in 2024, a decrease from 14.4% in 2023[18] - Non-interest income was 17.4% of total revenue in 2024, slightly down from 17.5% in 2023[18] - The company reported non-performing loans of $6.0 million and $5.2 million as of December 31, 2024, and December 31, 2023, respectively, with a coverage ratio of 989.32% and 1,044.69%[90] - Net gains on mortgage loans were $6.6 million in 2024, down from $7.4 million in 2023 and $6.4 million in 2022[93] Capital and Liquidity - The bank's capital ratios exceeded minimum requirements for the well-capitalized category as of December 31, 2024[32] - Tier 1 capital included $39.6 million of trust preferred securities as of December 31, 2024[34] - Tier 2 capital included $40.0 million of subordinated notes issued in 2020, maturing in May 2030[35] - The bank's ability to pay dividends is indirectly limited by restrictions on the bank's capacity to return capital[36] - The company relies on retail deposit growth and earnings retention for liquidity, which is essential for funding various obligations[78] - The company faces potential liquidity pressures and reduced net interest margins due to adverse developments in the financial services industry[73] Regulatory Environment - The bank is subject to various consumer protection laws, including the Dodd-Frank Act, which has increased compliance costs[56][57] - The Federal Reserve mandates a minimum common equity Tier 1 capital ratio of 4.5%, Tier 1 capital ratio of 6%, and total capital ratio of 8%[44] - The company is subject to extensive regulation, and any changes in regulation could materially affect its business and financial condition[76] - Future legislative changes could significantly alter the banking environment, impacting costs and permissible activities[65] Economic and Market Conditions - Economic uncertainties, including inflation and geopolitical conflicts, may adversely affect the bank's financial condition and performance[67][68] - Changes in governmental monetary and fiscal policies could materially impact the bank's financial condition and results of operations[70] - Volatility in global capital and credit markets may limit the bank's access to capital and affect liquidity[71] - Changes in financial market conditions, including interest rate fluctuations, could adversely impact the company's net interest income[86] - Difficult economic conditions could lead to decreased consumer confidence, further aggravating adverse market effects on the company and its customers[102] Operational and Strategic Challenges - The bank closely monitors higher risk segments within its loan portfolio due to potential economic downturns[69] - Cybersecurity risks remain high, with potential significant impacts on financial condition and operations due to data breaches[80] - The company faces competitive pressures from large national and regional financial institutions, smaller institutions, and fintech companies, which could adversely affect its business and financial condition[100] - The company may face challenges in capitalizing on future acquisitions, which could adversely affect its business operations[95] - Retaining key officers and employees is critical for future operating results, and competition for qualified personnel is intense[104] Corporate Governance and Compensation - The company has established detailed policies and control procedures to ensure critical accounting estimates and judgments are applied consistently[108] - The company has a comprehensive approach to governance and compensation, as evidenced by the various agreements and plans referenced in the filings[10.1] - The 2021 Long-Term Incentive Plan was effective from April 20, 2021, aimed at aligning executive compensation with company performance[10.3] - The company has a Clawback Policy in place, which was referenced in the annual report filed on March 8, 2024[97] - The TSR Performance Share Award Agreement is part of the compensation strategy for certain executive officers, aligning their interests with shareholder value[10.5] - The company has a summary of its Management Incentive Compensation Plan, which is aimed at incentivizing performance among management[10.6] Shareholder and Stock Information - In Q4 2024, the company issued 278 shares of common stock to non-employee directors and 1,459 shares to a trust for deferred distribution, totaling $0.05 million in fees[137] - The shares issued on a current basis were priced at $33.35 per share, while deferred shares were priced at $30.02 per share, representing 90% of the fair value on the issuance date[137] - For the three months ended December 31, 2024, the company purchased a total of 1,040 shares at an average price of $37.37 per share[139] - The share repurchase plan authorized the repurchase of up to 1,100,000 shares during 2024, which was announced on December 19, 2023[140] - As of December 31, 2024, there were 375,171 shares available for future issuance under equity compensation plans approved by security holders[163] - The company maintains a Deferred Compensation and Stock Purchase Plan for Non-Employee Directors, allowing them to defer fees and receive shares instead of cash[163]

Independent Bank (IBCP) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by ...

Core Insights - The individual has a strong interest in financial markets, particularly in fundamental analysis, which evaluates actual company performance rather than stock price movements [1] - The focus is primarily on long-term investments in stocks and ETFs, with a preference for US companies, while also analyzing European and Chinese firms [1] - The banking sector is highlighted as a key area of interest, viewed as essential for understanding economic health [1] Investment Approach - The investment strategy is characterized by a contrarian view, indicating a willingness to go against prevailing market trends [1] - A long-term investment horizon is emphasized, reflecting a strategy that seeks to capitalize on fundamental company performance over time [1] Sector Focus - The banking sector is identified as fundamental for economic analysis, suggesting that insights into this industry can provide a broader understanding of economic conditions [1] - There is an expressed interest in macroeconomics, indicating a holistic approach to investment that considers broader economic indicators [1]

Financial Data and Key Metrics Changes - Independent Bank Corporation reported Q4 2024 net income of $18.5 million or $0.87 per diluted share, compared to $13.7 million or $0.65 per diluted share in the prior year period, reflecting a significant increase in profitability [4] - For the year ended December 31, 2024, net income was $66.8 million or $3.16 per diluted share, up from $59.1 million or $2.79 per diluted share in 2023, indicating overall growth in annual earnings [4] Business Line Data and Key Metrics Changes - Specific details regarding individual business line performance were not provided in the available content, thus this section remains unaddressed Market Data and Key Metrics Changes - No specific market data or key metrics changes were mentioned in the provided content, thus this section remains unaddressed Company Strategy and Development Direction and Industry Competition - The company is focused on enhancing its commercial banking operations, as indicated by the presence of the Executive President of Commercial Banking during the call, suggesting a strategic emphasis on this area [2] Management's Comments on Operating Environment and Future Outlook - Management has not provided detailed comments on the operating environment or future outlook in the available content, thus this section remains unaddressed Other Important Information - The call included a cautionary note regarding forward-looking statements, emphasizing the importance of considering potential risks and uncertainties in the company's future performance [3] Q&A Session Summary - The content does not provide specific details regarding the Q&A session, thus this section remains unaddressed

Core Insights - Independent Bank (IBCP) reported a revenue of $61.97 million for the quarter ended December 2024, reflecting a year-over-year increase of 25.9% [1] - Earnings per share (EPS) for the quarter was $0.87, up from $0.79 in the same quarter last year, representing a surprise of +14.47% over the consensus estimate of $0.76 [1] - The reported revenue exceeded the Zacks Consensus Estimate by +13.50% [1] Financial Performance Metrics - Net Interest Margin (GAAP) was reported at 3.4%, matching the average estimate from two analysts [4] - The Efficiency Ratio was 59.1%, better than the estimated 60.5% by two analysts [4] - Total non-interest income reached $19.12 million, significantly higher than the estimated $12.02 million [4] - Net Interest Income was reported at $42.85 million, slightly above the estimated $42.64 million [4] Stock Performance - Over the past month, shares of Independent Bank have returned -1.4%, while the Zacks S&P 500 composite increased by +2.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Independent Bank (IBCP) reported quarterly earnings of $0.87 per share, exceeding the Zacks Consensus Estimate of $0.76 per share, and showing an increase from $0.79 per share a year ago, resulting in an earnings surprise of 14.47% [1] - The bank's revenues for the quarter ended December 2024 were $61.97 million, surpassing the Zacks Consensus Estimate by 13.50%, compared to $49.21 million in the same quarter last year [2] - The stock has underperformed the market, losing about 0.1% since the beginning of the year, while the S&P 500 gained 3.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.70 on revenues of $54.4 million, and for the current fiscal year, it is $3.03 on revenues of $225 million [7] - The estimate revisions trend for Independent Bank is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Banks - Midwest industry, to which Independent Bank belongs, is currently in the top 12% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Net Income and Earnings Per Share - Q4 2024 net income of $18.5 million, or $0.87 per diluted share, compared to $13.7 million, or $0.65 per diluted share, in the prior-year period[1] - Full-year 2024 net income of $66.8 million, or $3.16 per diluted share, compared to $59.1 million, or $2.79 per diluted share, in 2023[1] - Net income for the twelve months ended December 31, 2024, was $66.79 million, up from $59.07 million in 2023[29] - Net income per common share (diluted) for the twelve months ended December 31, 2024, was $3.16, up from $2.79 in 2023[29] - Net income for Q4 2024 reached $18.461 million, up from $13.743 million in Q4 2023[31] Loan Portfolio Growth - Loan portfolio grew by 10% annualized in Q4 2024, with commercial loan portfolio growing by 24% annualized[2] - Total loan growth of 7% and core deposit growth of 5% for the full year 2024[2] - Total loans grew to $4.04 billion in 2024 from $3.79 billion in 2023[26] - Total loans at the end of Q4 2024 increased to $4.038 billion, up from $3.790 billion in Q4 2023[33] Net Interest Income and Margin - Net interest income increased by $1.0 million (2.4%) in Q4 2024, with a net interest margin of 3.45%[2][3] - Net interest income for Q4 2024 totaled $42.9 million, up 6.8% year-over-year and 2.4% quarter-over-quarter[3] - Full-year 2024 net interest income of $166.2 million, up 6.3% from 2023[4] - Net interest income for the twelve months ended December 31, 2024, was $166.25 million, compared to $156.33 million in 2023[29] - Net interest income for Q4 2024 increased to $42.851 million, up from $40.111 million in Q4 2023[31] - Net interest margin (FTE) for Q4 2024 was 3.45%, up from 3.26% in Q4 2023[37] Non-Interest Income - Non-interest income for Q4 2024 totaled $19.1 million, compared to $9.1 million in the year-ago period[5] - Non-interest income for the twelve months ended December 31, 2024, was $56.36 million, up from $50.68 million in 2023[29] - Non-interest income for Q4 2024 rose to $19.121 million, compared to $9.097 million in Q4 2023[31] Total Assets and Deposits - Total assets increased to $5.34 billion at December 31, 2024, up $74.4 million from December 31, 2023[12] - Total assets increased to $5.34 billion in 2024 from $5.26 billion in 2023[26] - Total deposits increased to $4.65 billion in 2024 from $4.62 billion in 2023[26] - Total deposits at the end of Q4 2024 stood at $4.654 billion, slightly up from $4.622 billion in Q4 2023[33] - Total assets grew to $5,338,104 thousand in December 2024, up from $5,263,726 thousand in December 2023[39] - Tangible assets excluding other comprehensive loss adjustments reached $5,372,462 thousand in December 2024, compared to $5,299,766 thousand in December 2023[39] Shareholders' Equity and Capital Ratios - Total shareholders' equity was $454.7 million at December 31, 2024, or 8.52% of total assets[14] - Total shareholders' equity rose to $454.69 million in 2024 from $404.45 million in 2023[26] - Tangible common equity ratio at the end of Q4 2024 was 8.00%, compared to 7.15% in Q4 2023[33] - Total capital to risk-weighted assets at the end of Q4 2024 was 14.24%, compared to 13.71% in Q4 2023[33] - Common equity tier 1 capital to risk-weighted assets at the end of Q4 2024 was 11.19%, up from 10.58% in Q4 2023[33] - Tangible common equity ratio increased to 8.00% as of December 31, 2024, up from 7.15% in December 2023[39] - Tangible common equity excluding other comprehensive loss adjustments reached $489,044 thousand in December 2024, compared to $440,489 thousand in December 2023[39] - Tangible common equity per share of common stock rose to $20.33 in December 2024, compared to $17.96 in December 2023[39] - Common shareholders' equity increased to $454,686 thousand in December 2024, up from $404,449 thousand in December 2023[39] - Common equity ratio improved to 8.52% in December 2024, up from 7.68% in December 2023[39] - Tangible common equity ratio excluding other comprehensive loss adjustments increased to 9.10% in December 2024, compared to 8.31% in December 2023[39] Non-Interest Expense - Total non-interest expense for the twelve months ended December 31, 2024, was $135.10 million, compared to $127.12 million in 2023[29] Retained Earnings - Retained earnings increased to $205.85 million in 2024 from $159.11 million in 2023[26] Return on Assets - Return on average assets for Q4 2024 improved to 1.39%, compared to 1.04% in Q4 2023[31] Shares Outstanding - Shares of common stock outstanding remained stable at approximately 20,896 thousand in December 2024[39] Accumulated Other Comprehensive Loss - Accumulated other comprehensive loss for regulatory purposes increased to $64,146 thousand in December 2024, up from $66,344 thousand in December 2023[39]

Core Insights - Independent Bank Corporation reported a net income of $18.5 million for Q4 2024, an increase from $13.7 million in Q4 2023, resulting in earnings per diluted share of $0.87 compared to $0.65 in the prior year [1][30] - For the full year 2024, net income reached $66.8 million, up from $59.1 million in 2023, with earnings per diluted share increasing from $2.79 to $3.16 [1][30] Financial Performance - The company achieved a 10% annualized growth rate in its loan portfolio for Q4 2024, with a remarkable 24% growth in the commercial loan segment [2] - Net interest income for Q4 2024 was $42.9 million, a 6.8% increase from the previous year, and a 2.4% increase from Q3 2024 [3][4] - The net interest margin improved to 3.45% in Q4 2024, up from 3.26% in Q4 2023 [3][6] - For the full year, net interest income totaled $166.2 million, reflecting a 6.3% increase from 2023 [4] Asset Quality - Total non-performing loans increased to $6.0 million as of December 31, 2024, compared to $5.2 million in 2023, with a non-performing loans ratio of 0.15% [12][13] - The provision for credit losses was $2.2 million in Q4 2024, compared to a credit of $(0.6) million in Q4 2023 [12][5] Balance Sheet and Capital - Total assets grew to $5.34 billion as of December 31, 2024, an increase of $74.4 million from the previous year [14] - Loans, excluding those held for sale, reached $4.04 billion, up from $3.79 billion in 2023 [14] - Total shareholders' equity increased to $454.7 million, representing 8.52% of total assets, compared to $404.4 million or 7.68% in 2023 [16] Dividends and Share Repurchase - The Board of Directors approved an 8% increase in the quarterly dividend, marking the twelfth consecutive annual increase [2] - A share repurchase plan was authorized to buy back up to 1,100,000 shares, approximately 5% of outstanding common stock, effective through December 31, 2025 [18]

Core Insights - Independent Bank (IBCP) is expected to report quarterly earnings of $0.76 per share, reflecting a decline of 3.8% year over year, while revenues are forecasted to be $54.6 million, an increase of 11% year over year [1] - There have been no revisions in the consensus EPS estimate over the last 30 days, indicating stability in analysts' forecasts [1][2] - The consensus among analysts suggests that key metrics such as 'Net Interest Margin' and 'Efficiency Ratio' will show improvements compared to the previous year [4] Financial Metrics - 'Net Interest Margin (GAAP)' is estimated to reach 3.4%, up from 3.3% in the same quarter last year [4] - The 'Efficiency Ratio' is projected to be 60.5%, a significant improvement from 64.3% year over year [4] - 'Total non-interest income' is expected to be $12.02 million, compared to $9.10 million in the previous year [4] - 'Net Interest Income' is forecasted to be $42.64 million, an increase from $40.11 million reported in the same quarter last year [5] Market Performance - Over the past month, Independent Bank shares have declined by 2.1%, while the Zacks S&P 500 composite has decreased by 0.4% [5] - Based on its Zacks Rank 3 (Hold), IBCP is expected to perform in line with the overall market in the near term [5]