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)

Core Points - Independent Bank Corporation reported a net income of $15.6 million, or $0.74 per diluted share, for the first quarter of 2025, a slight decrease from $16.0 million, or $0.76 per diluted share, in the same period last year [1][2] - The company experienced a 3.4% annualized increase in overall loans and a 0.8% annualized increase in core deposits [2] - Net interest income rose to $43.7 million, an increase of $3.5 million, or 8.7%, from the previous year [3] - Non-interest income decreased to $10.4 million from $12.6 million in the prior year, primarily due to variances in mortgage banking revenues [4] - The company maintained strong credit metrics, with non-performing assets at 0.14% of total assets and a low level of watch credits [10][11] Financial Performance - The net interest margin improved to 3.49% in Q1 2025 from 3.30% in Q1 2024 [3] - Average interest-earning assets increased to $5.08 billion, compared to $4.91 billion in the prior year [3] - The provision for credit losses was $0.72 million, slightly down from $0.74 million in the previous year [11] - Total non-interest expenses rose to $34.3 million from $32.2 million in the prior year [8] Asset Quality - Total non-performing loans increased to $7.086 million, with a ratio of non-performing loans to total portfolio loans at 0.17% [10] - The allowance for credit losses was 1.47% of total loans, consistent with the previous quarter [11] Balance Sheet and Capital - Total assets were $5.33 billion, a decrease of $9.7 million from the previous quarter [12] - Total shareholders' equity increased to $467.3 million, or 8.77% of total assets, compared to $454.7 million, or 8.52%, at the end of the previous quarter [14] - The tangible common equity ratio improved to 8.26% from 8.00% at the end of the previous quarter [33] Shareholder Returns - The company declared a cash dividend of $0.26 per share on February 14, 2025 [6] - A share repurchase plan was authorized to buy back up to 1,100,000 shares, with 1,093 shares repurchased in Q1 2025 [16]

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 ...