Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Independent Bank due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Independent Bank is expected to report quarterly earnings of $0.78 per share, reflecting an 11.4% decrease year-over-year [3]. - Projected revenues are $56.3 million, down 0.4% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for Independent Bank is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.43%, suggesting a bearish sentiment among analysts [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with positive readings being more reliable [6][8]. - A positive Earnings ESP combined with a Zacks Rank of 1, 2, or 3 has shown a nearly 70% success rate in predicting earnings beats [9]. Historical Performance - In the last reported quarter, Independent Bank exceeded the expected earnings of $0.70 per share by delivering $0.74, resulting in a surprise of +5.71% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - Independent Bank does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [16].

Group 1 - Independent Bank Corporation (NASDAQ: IBCP) will release its 2025 second quarter results on July 24, 2025, at approximately 8:00 am ET [1] - A conference call for investors and analysts will be held on the same day at 11:00 am ET, featuring President and CEO Brad Kessel, CFO Gavin Mohr, and EVP Commercial Banking Joel Rahn [2] - The conference call can be accessed via phone or an audio webcast, with a playback option available until July 31, 2025 [3] Group 2 - Independent Bank Corporation is a Michigan-based bank holding company with total assets of approximately $5.3 billion [4] - The company operates a branch network across Michigan's Lower Peninsula and offers a full range of financial services, including commercial banking, mortgage lending, investments, insurance, and title services [4] - Independent Bank Corporation emphasizes exceptional personal service and value to its customers, stockholders, and communities [4]

Core Viewpoint - Independent Bank (IBCP) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for predicting near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance and Outlook - The upgrade for Independent Bank indicates a positive outlook on its earnings, suggesting potential buying pressure and an increase in stock price [3][5]. - For the fiscal year ending December 2025, Independent Bank is expected to earn $3.14 per share, reflecting a slight decrease of -0.6% from the previous year, but the Zacks Consensus Estimate has increased by 1.2% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade of Independent Bank to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Financial Performance - Net income for the first quarter of 2025 was $15.6 million, a decrease from $16.0 million in the same period of 2024, primarily due to a $2.8 million unfavorable change in the fair value of capitalized mortgage loan servicing rights[193] - Net interest income increased by $3.5 million, or 8.7%, to $43.7 million in the first quarter of 2025, driven by a $167.9 million increase in average interest-earning assets[196] - The net interest margin for the first quarter of 2025 was 3.49%, up from 3.30% in the same period of 2024, reflecting a 25 basis point decrease in the cost of funds[203] - Non-interest income totaled $10.4 million in the first quarter of 2025, down from $12.6 million in the first quarter of 2024[207] - The provision for credit losses was $0.72 million for the first quarter of 2025, a decrease from $1.87 million in the same period of 2024, reflecting improved credit quality[205] - Non-interest expense increased by $2.1 million to $34.3 million in Q1 2025 compared to Q1 2024[222] - Income tax expense was $3.5 million in Q1 2025, down from $3.8 million in Q1 2024, reflecting changes in pretax income[229] Loan and Asset Management - Mortgage loans originated increased to $107.8 million in the first quarter of 2025, compared to $94.0 million in the same period of 2024, primarily due to an increase in construction loans[210] - Average non-accrual loans increased to $6.6 million in the first quarter of 2025, compared to $3.9 million in the first quarter of 2024[199] - The total assets of the company as of March 31, 2025, were $5.38 billion, an increase from $5.20 billion as of March 31, 2024[201] - Total loans increased to $4.07 billion as of March 31, 2025, from $4.04 billion at December 31, 2024, with residential first mortgages at $1.30 billion[244] - Non-performing loans rose to $7.1 million, representing 0.17% of portfolio loans, up from 0.15% at year-end 2024[246] - The allowance for credit losses (ACL) on loans increased to $60.0 million at March 31, 2025, from $59.4 million at December 31, 2024, maintaining a ratio of 1.47% of total portfolio loans[251] - Total non-performing assets were $7.5 million as of March 31, 2025, compared to $6.9 million at December 31, 2024[246] Capital and Equity - The average shareholders' equity to average assets ratio decreased to 13.71% in the first quarter of 2025 from 15.95% in the same period of 2024[194] - Common shareholders' equity increased to $467.3 million at March 31, 2025, from $454.7 million at December 31, 2024, primarily due to earnings retention[272] - The company's tangible common equity (TCE) ratio improved to 8.26% at March 31, 2025, from 8.00% at December 31, 2024[272] Deposits and Funding - Deposits totaled $4.63 billion at March 31, 2025, a decrease of $20.2 million from December 31, 2024, due to declines in non-interest bearing and brokered time deposits[234] - Uninsured deposits totaled $1.05 billion, accounting for 23.0% of total deposits as of March 31, 2025, slightly down from 23.3% at year-end 2024[256] - The balance of the top 100 largest depositors was $1.07 billion, representing 23.5% of total deposits, excluding brokered time, as of March 31, 2025[256] - Time deposits maturing within the next 12 months totaled $776.7 million as of March 31, 2025, with a historical trend of renewal by customers[262] - As of March 31, 2025, the company utilized approximately $1.04 billion in wholesale funding, representing 22.1% of total funding[258] Securities and Investments - Securities available for sale decreased in fair value to $529.7 million at March 31, 2025, from $559.2 million at December 31, 2024[238] - Securities held to maturity reported a carrying value of $336.9 million at March 31, 2025, with an unrealized loss of $15.4 million[239] - Securities available for sale generated proceeds of $22.5 million in Q1 2025, down from $37.3 million in Q1 2024, resulting in net losses of $330,000 compared to $269,000 in the prior year[242] Risk Management and Compliance - The company has developed contingency funding plans to address potential liquidity needs arising from adverse changes in financial metrics[264] - The aggregate amount accrued for probable litigation losses is not material, with the maximum estimated additional losses considered to be insignificant[285] - There have been no material changes to critical accounting policies as disclosed in the Annual Report for the year ended December 31, 2024[292] - Disclosure controls and procedures were evaluated as effective as of March 31, 2025[298] - No changes in internal control over financial reporting that materially affected the reporting were noted during the quarter ended March 31, 2025[299] - There have been no material changes to the risk factors disclosed in the Annual Report for the year ended December 31, 2024[301] Other Financial Metrics - The company reported net recoveries of $0.11 million on unpaid interest during the first quarter of 2025, down from $0.29 million in the same period of 2024[199] - Net gains on mortgage loans increased to $2.3 million in Q1 2025 from $1.4 million in Q1 2024, primarily due to an increase in Loan Sales Margin[213] - The Loan Sales Margin, excluding fair value adjustments, rose to 1.91% in Q1 2025 from 1.21% in Q1 2024, attributed to higher primary-to-secondary market pricing spreads[214] - Mortgage loan servicing, net, reported a loss of $0.6 million in Q1 2025 compared to a profit of $2.7 million in Q1 2024, mainly due to changes in fair value of capitalized mortgage loan servicing rights[216] - The balance of capitalized mortgage loan servicing rights decreased to $32.2 million at March 31, 2025, down from $43.6 million at December 31, 2024, following the sale of $931.6 million in mortgage servicing rights[218] - The company entered into interest rate swaps with an aggregate notional amount of $67.4 million in Q1 2025, compared to $29.5 million in Q1 2024, generating fee income of $0.75 million and $0.35 million respectively[259] - The ACL related to specific loans increased by $1.4 million due to one new commercial loan and an increase in an existing reserve during Q1 2025[252]

Independent Bank Corporation (NASDAQ:IBCP) Q1 2025 Earnings Conference Call April 24, 2025 11:00 AM ET Company Participants Brad Kessel - President & Chief Executive Officer Joel Rahn - Executive President, Commercial Banking Gavin Mohr - Executive Vice President & Chief Financial Officer Conference Call Participants Brendan Nosal - Hovde Group Peter Winter - D.A. Davidson Damon DelMonte - KBW Nathan Race - Piper Sandler Operator Hello everyone and welcome to the Independent Bank Corporation Reports 2025 Fi ...

Financial Performance - Net income was $15.6 million, or $0.74 per diluted share[9] - Net interest income increased by $3.5 million year-over-year and $0.8 million compared to the previous quarter[9] - ROAA was 1.18% and ROAE was 13.71%[9] Balance Sheet & Capital - Tangible book value per share increased 13.2% year-over-year and 2.7% from the end of the prior quarter[9] - Total loans increased 3.4% annualized[9] - Total core deposits (excluding brokered time deposits) grew by $9.1 million[9] - The loan-to-deposit ratio is 88%[9] Loan Portfolio - Commercial loans increased $54.8 million in 1Q'25, with an average new origination yield of 6.97%[20] - Mortgage loans decreased $3.9 million, with an average new origination yield of 7.02%[20] - Installment loans decreased $17.0 million, with an average new origination yield of 7.52%[20] Deposits - Core deposits represent 84.6% of total deposits, amounting to $3.92 billion[11, 12] - Total deposits decreased by $20.2 million since December 31, 2024[12] Net Interest Margin - Net interest margin was 3.49% in 1Q'25, compared to 3.45% in the linked quarter[9] - Net interest income was $43.7 million in 1Q'25, compared to $42.9 million in the prior year quarter[38, 42] Non-Interest Income & Expenses - Non-interest income totaled $10.4 million in 1Q'25[51, 63] - Non-interest expense was $34.3 million in 1Q'25[63]

Core Insights - Independent Bank (IBCP) reported revenue of $54.11 million for Q1 2025, a year-over-year increase of 2.6% [1] - The earnings per share (EPS) for the same period was $0.74, down from $0.76 a year ago, but exceeded the consensus estimate of $0.70 by 5.71% [1] - The reported revenue fell short of the Zacks Consensus Estimate of $54.7 million by 1.08% [1] Financial Performance Metrics - Net Interest Margin (GAAP) stood at 3.5%, matching the average estimate from two analysts [4] - The Efficiency Ratio was reported at 62.2%, slightly better than the average estimate of 63% [4] - Total non-interest income was $10.42 million, below the average estimate of $11.36 million [4] - Net Interest Income was $43.69 million, exceeding the average estimate of $43.23 million [4] Stock Performance - Shares of Independent Bank have returned -1% over the past month, outperforming the Zacks S&P 500 composite, which declined by 5.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Financial Data and Key Metrics Changes - The company reported a net income of $15.6 million or $0.74 per diluted share for Q1 2025, compared to $16 million or $0.76 per diluted share in the prior year period, indicating a slight decrease in earnings [4] - Overall loans increased by 3.4% annualized, while core deposits rose by 0.8% annualized [4] - Tangible book value per share grew by 13.2% compared to the prior year quarter [5] Business Line Data and Key Metrics Changes - Total loans grew by $34 million, with commercial loan generation strong at $54.8 million, representing an 11% annualized rate [8][9] - The residential mortgage portfolio saw a slight decline of $3.9 million, while the installment loan portfolio decreased by $17 million [9] - Nonperforming loans were $7.1 million or 17 basis points of total loans, up slightly from 15 basis points at year-end 2024 [11] Market Data and Key Metrics Changes - Total deposits as of March 31, 2025, were $4.63 billion, with retail deposits increasing by $34.2 million and business deposits declining by $44 million [6] - The total cost of funds decreased by 12 basis points to 1.8% [7] Company Strategy and Development Direction - The company aims to be Michigan's most people-focused bank, continuing to invest in its team and technology while supporting communities [3][22] - The management is optimistic about the long-term future of the franchise despite current market uncertainties [5] Management Comments on Operating Environment and Future Outlook - Management noted that while there is cautiousness among business owners regarding expansion, they are maintaining close contact with clients to monitor their situations [5][36] - The company is prepared for various economic scenarios, including potential Fed rate cuts, and believes it can maintain consistent earnings [29][30] Other Important Information - Non-interest income totaled $10.4 million in Q1 2025, down from $12.6 million in the year-ago quarter [17] - Non-interest expense was $34.3 million, slightly lower than the forecasted range [21] Q&A Session Summary Question: Potential for Outperformance in Guidance - Management indicated that there may be opportunities to outperform guidance, particularly in provisions, depending on deposit trends and potential rate cuts [28][29] Question: Client Conversations Amid Uncertainty - Management reported that while there is uncertainty, they are not seeing immediate impacts on credit quality, although they are monitoring the automotive sector closely [35][39] Question: Stock Buybacks - Management confirmed that share repurchases are part of their capital management strategy, and they will continue to evaluate market conditions for potential buybacks [45][46] Question: Loan Growth Outlook - Management expressed that uncertainties have made borrowers cautious, but there could be pent-up demand if economic conditions stabilize [50][51] Question: Capital Management and M&A Considerations - Management stated they are open to M&A opportunities, emphasizing their strong community bank franchise and recent technology investments [52][54]

Core Insights - Independent Bank (IBCP) reported quarterly earnings of $0.74 per share, exceeding the Zacks Consensus Estimate of $0.70 per share, but down from $0.76 per share a year ago, representing an earnings surprise of 5.71% [1] - The bank's revenues for the quarter were $54.11 million, slightly missing the Zacks Consensus Estimate by 1.08%, but up from $52.76 million year-over-year [2] - The stock has underperformed the market, losing about 10.2% since the beginning of the year compared to the S&P 500's decline of 8.6% [3] Earnings Performance - Over the last four quarters, Independent Bank has surpassed consensus EPS estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is $0.75, with expected revenues of $56.3 million, and for the current fiscal year, the estimate is $3.10 on revenues of $226.7 million [7] Industry Outlook - The Zacks Industry Rank for Banks - Midwest is currently in the top 10% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5] Future Expectations - The estimate revisions trend for Independent Bank is mixed, leading to a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] - UMB Financial, another company in the same industry, is expected to report quarterly earnings of $2.21 per share, reflecting a year-over-year decline of 10.5% [9]

[First Quarter 2025 Highlights](index=1&type=section&id=First%20Quarter%202025%20Highlights) Independent Bank Corporation reported Q1 2025 net income of $15.6 million, reflecting positive operational trends and strong capital Q1 2025 Key Financial Results | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $15.6 million | $16.0 million | | Diluted EPS | $0.74 | $0.76 | - CEO Commentary Highlights: Overall loans increased by **3.4%** (annualized) and core deposits grew by **0.8%** (annualized)[2](index=2&type=chunk) - Net interest income grew on both a linked quarter and year-over-year basis, with a **4 basis point** margin expansion[2](index=2&type=chunk) - Credit metrics remain strong, with non-performing assets at **0.14%** of total assets and net charge-offs at **0.01%** of average loans[2](index=2&type=chunk) - Tangible book value per share grew **13.2%** compared to the prior year quarter[2](index=2&type=chunk) - Key achievements in Q1 2025 include a **$0.8 million** (**1.9%**) increase in net interest income over Q4 2024[3](index=3&type=chunk) - Tangible book value per share increased **13.2%** from March 31, 2024, and a **$0.26** per share dividend was paid[3](index=3&type=chunk) [Operating Results](index=2&type=section&id=Operating%20Results) Net interest income rose to $43.7 million, an 8.7% increase, while non-interest income decreased due to mortgage servicing Net Interest Income and Margin Performance | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income ($M) | $43.7 | $42.9 | $40.2 | | Net Interest Margin | 3.49% | 3.45% | 3.30% | - Non-interest income decreased to **$10.4 million** in Q1 2025 from **$12.6 million** in Q1 2024, mainly due to variances in mortgage banking revenues[6](index=6&type=chunk) - Mortgage loan servicing generated a net expense of **$0.6 million** in Q1 2025, a sharp contrast to the **$2.7 million** income in Q1 2024[8](index=8&type=chunk)[9](index=9&type=chunk) - This was driven by a **$(1.5) million** negative fair value change and a decline in servicing revenue following the sale of **$931 million** in mortgage servicing rights on January 31, 2025[8](index=8&type=chunk)[9](index=9&type=chunk) - Non-interest expenses increased to **$34.3 million** in Q1 2025 from **$32.2 million** in the prior-year period[9](index=9&type=chunk) [Asset Quality](index=3&type=section&id=Asset%20Quality) The bank maintained robust asset quality in Q1 2025, with low non-performing loans and stable credit loss allowance Non-Performing Assets (NPA) Trend | Metric | 3/31/2025 | 12/31/2024 | 3/31/2024 | | :--- | :--- | :--- | :--- | | Total non-performing loans (Thousands) | $7,086 | $6,002 | $3,690 | | Ratio of NPLs to total loans | 0.17% | 0.15% | 0.10% | | Ratio of NPAs to total assets | 0.14% | 0.13% | 0.09% | Credit Loss Metrics (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Provision for credit losses (Millions) | $0.72 | $0.74 | | Net charge-offs (Millions) | $0.07 | $0.22 | | Allowance for credit losses (% of total loans) | 1.47% | N/A | [Balance Sheet, Capital, and Liquidity](index=3&type=section&id=Balance%20Sheet%2C%20Capital%20and%20Liquidity) As of March 31, 2025, total assets were $5.33 billion, with strong capital ratios and substantial liquidity - At March 31, 2025, total assets were **$5.33 billion**, loans were **$4.07 billion** (up from **$4.04 billion** at year-end 2024), and deposits were **$4.63 billion** (down from **$4.65 billion**)[13](index=13&type=chunk) - Total shareholders' equity increased to **$467.3 million** from **$454.7 million** at year-end 2024, primarily due to earnings retention and a decrease in accumulated other comprehensive loss[15](index=15&type=chunk) - Tangible common equity per share rose to **$20.87** from **$20.33**[15](index=15&type=chunk) Regulatory Capital Ratios (as of 3/31/2025) | Ratio | 3/31/2025 | Well Capitalized Minimum | | :--- | :--- | :--- | | Tier 1 capital to average total assets | 9.56% | 5.00% | | Tier 1 capital to risk-weighted assets | 11.93% | 8.00% | | Total capital to risk-weighted assets | 13.19% | 10.00% | - The company had significant available liquidity at quarter-end, including unused credit lines of approximately **$1.10 billion** with the FHLB and **$486.1 million** with the FRB[16](index=16&type=chunk) [Share Repurchase Plan](index=5&type=section&id=Share%20Repurchase%20Plan) The company's 2025 share repurchase plan authorized up to 1.1 million shares, with significant activity post-Q1 2025 - The 2025 share repurchase plan authorizes the purchase of up to **1,100,000 shares**, or approximately **5%** of outstanding common stock, through December 31, 2025[17](index=17&type=chunk) - Repurchase activity: - **During Q1 2025:** **1,093 shares** for **$0.03 million**[17](index=17&type=chunk) - **Post-Q1 (Apr 3 - Apr 22, 2025):** **249,482 shares** for **$7.2 million**[17](index=17&type=chunk) [Financial Statements and Non-GAAP Reconciliations](index=6&type=section&id=Financial%20Statements%20and%20Non-GAAP%20Reconciliations) This section presents consolidated financial statements, selected data, and reconciliations of non-GAAP financial measures [Consolidated Statements of Financial Condition](index=6&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) As of March 31, 2025, total assets were $5.33 billion, with $4.01 billion in net loans and $4.63 billion in deposits Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | $128,145 | $119,882 | | Net Loans | $4,012,656 | $3,979,446 | | Total Assets | $5,328,428 | $5,338,104 | | Total Deposits | $4,633,931 | $4,654,088 | | Total Liabilities | $4,861,151 | $4,883,418 | | Total Shareholders' Equity | $467,277 | $454,686 | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2025, the company reported $43.7 million in net interest income, resulting in a net income of $15.6 million Income Statement Summary (Q1 2025, in thousands) | Account | Amount | | :--- | :--- | | Net Interest Income | $43,685 | | Provision for credit losses | $721 | | Total Non-interest Income | $10,424 | | Total Non-interest Expense | $34,262 | | Income Before Income Tax | $19,126 | | **Net Income** | **$15,590** | | **Diluted EPS** | **$0.74** | [Selected Financial Data](index=8&type=section&id=Selected%20Financial%20Data) Five-quarter trend data shows consistent performance with increasing net interest income and growing tangible common equity Five-Quarter Performance Trend | Metric | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income ($k) | $15,590 | $18,461 | $13,810 | $18,528 | $15,991 | | Diluted EPS | $0.74 | $0.87 | $0.65 | $0.88 | $0.76 | | Net Interest Income ($k) | $43,685 | $42,851 | $41,854 | $41,346 | $40,197 | | Tangible common equity per share | $20.87 | $20.33 | $20.22 | $19.16 | $18.44 | [Reconciliation of Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) The company provides reconciliations for non-GAAP metrics, including Net Interest Margin (FTE) and Tangible Common Equity per share Net Interest Margin (FTE) Reconciliation | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net interest margin (GAAP) | 3.46% | 3.28% | | Net interest margin (FTE) | 3.49% | 3.30% | Tangible Common Equity per Share | Metric | 3/31/2025 | 3/31/2024 | | :--- | :--- | :--- | | Common shareholders' equity per share | $22.28 | $19.88 | | Tangible common equity per share | $20.87 | $18.44 | [Company and Conference Call Information](index=5&type=section&id=Company%20and%20Conference%20Call%20Information) Independent Bank Corporation, a Michigan-based bank holding company, scheduled a conference call to review its first-quarter results - Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with approximately **$5.3 billion** in assets, operating a branch network across Michigan's Lower Peninsula[20](index=20&type=chunk) - An earnings conference call to review the quarterly results was scheduled for 11:00 am ET on Thursday, April 24, 2025[18](index=18&type=chunk)