Financial Position - Total assets increased to 19,408,117thousandasofSeptember30,2024,comparedto19,347,373 thousand on December 31, 2023, reflecting a growth of approximately 0.31%[10] - Total deposits rose to 15,441,023thousand,upfrom14,865,547 thousand, marking an increase of about 3.86%[10] - Net loans reached 14,197,111thousand,aslightincreasefrom14,135,848 thousand, representing a growth of approximately 0.43%[10] - Total liabilities decreased slightly to 16,430,969thousandfrom16,452,122 thousand, a decline of approximately 0.13%[12] - Stockholders' equity increased to 2,977,148thousandfrom2,895,251 thousand, reflecting a growth of about 2.83%[12] - The company reported a total of 2,765,575thousandinsecurities,downfrom2,930,860 thousand, indicating a decrease of approximately 5.63%[10] - Federal Home Loan Bank borrowings decreased significantly to 600,521thousandfrom1,105,541 thousand, a reduction of about 45.40%[12] - The company’s cash and due from banks increased to 198,987thousandfrom178,861 thousand, representing an increase of approximately 11.83%[10] - The total noninterest-bearing demand deposits decreased to 4,519,492thousandfrom4,567,083 thousand, a decline of about 1.04%[12] Income and Earnings - Net income for the three months ended September 30, 2024, was 42,947,000,adecreaseof29.560,808,000 in the same period of 2023[17] - Net interest income after provision for credit losses was 122,203,000forthethreemonthsendedSeptember30,2024,comparedto144,380,000 for the same period in 2023, reflecting a decrease of 15.4%[15] - Total noninterest income for the nine months ended September 30, 2024, was 95,822,000,anincreaseof3.592,542,000 in the same period of 2023[15] - Basic earnings per share for the three months ended September 30, 2024, was 1.01,downfrom1.38 in the same period of 2023, representing a decline of 26.8%[15] - Total noninterest expenses for the three months ended September 30, 2024, were 100,443,000,anincreaseof2.797,782,000 in the same period of 2023[15] Credit Losses and Provisions - The allowance for credit losses increased to 163,696thousandfrom142,222 thousand, indicating a rise of about 15.16%[10] - Provision for credit losses increased to 19,500,000forthethreemonthsendedSeptember30,2024,comparedto5,500,000 in the same period of 2023, indicating a significant rise in credit loss expectations[15] - The provision for credit losses increased to 28,750in2024from17,750 in 2023, indicating a rise of 62%[23] - Charge-offs for the three months ended September 30, 2024, totaled 6.018million,withrecoveriesamountingto440, resulting in a net charge-off of 5.578million[50]SecuritiesandInvestments−Thetotalavailableforsalesecuritiesamountedto1.334 billion as of September 30, 2024, with gross unrealized losses of 87.590million[34]−U.S.Treasurysecuritiesheldbythecompanywerevaluedat640.913 million as of September 30, 2024, reflecting a gross unrealized loss of 34.007million[34]−Thecompanyreportednetgainsof685,000 on equity securities for the three months ended September 30, 2024, compared to a loss of 363,000forthesameperiodin2023[32]−ThecompanyhadnosalesofsecuritiesavailableforsaleduringthethreeandninemonthsendedSeptember30,2024,and2023,resultinginnorealizedgainsorlosses[35]LoanPortfolioandQuality−Thecompanymonitorsassetqualityusingvariousindicators,categorizingloansbasedonpaymentissuesandriskratings[57]−Thecommercialloanportfolio′spassratingincreasedto282,973,000 in 2024 from 188,687,000in2023,reflectingagrowthof49.9296,851,000 in 2024, compared to 189,042,000in2023,indicatingasignificantincreaseinlosses[65]−Thecompanyemploysa10−pointcreditrisk−ratingsystemtoassesstheriskassociatedwithcommercialloans,enhancingitsriskmanagementframework[58]FutureStrategiesandDevelopments−Thecompanyindicatedafocusonmarketexpansionandnewproductdevelopmentaspartofitsfuturestrategy[67]−Thecompanyplanstoenhanceitstechnologyresearchanddevelopmenteffortstodrivegrowth[67]−Thecompanyisexploringpotentialmergersandacquisitionstostrengthenitsmarketposition[67]DerivativesandRiskManagement−TheCompanyhasatotalnotionalamountof1,400,000,000 in interest rate derivatives, with a fair value loss of (17,106,000)asofSeptember30,2024[102]−TheCompanyutilizesinterestratederivativestomanageinterestrateriskassociatedwithitsborrowingsandloanportfolios[100]−ThefairvalueoftheCompany′sderivativevaluationsisclassifiedasLevel2,indicatingthatthemajorityofinputsusedareobservableinthemarket[132]OtherComprehensiveIncome−Thetotalothercomprehensiveincome(loss)forthethreemonthsendedSeptember30,2024,was48,704, with an after-tax amount of 37,023[166]−Thetotalaccumulatedothercomprehensiveincome(loss)asofSeptember30,2024,was(77,202), compared to $(160,746) as of September 30, 2023[168]
Independent Bank (INDB)2024-11-07 21:15