Independent Bank (US:INDB)2024-11-07 21:15Financial Position - Total assets increased to $19,408,117 thousand as of September 30, 2024, compared to $19,347,373 thousand on December 31, 2023, reflecting a growth of approximately 0.31%[10] - Total deposits rose to $15,441,023 thousand, up from $14,865,547 thousand, marking an increase of about 3.86%[10] - Net loans reached $14,197,111 thousand, a slight increase from $14,135,848 thousand, representing a growth of approximately 0.43%[10] - Total liabilities decreased slightly to $16,430,969 thousand from $16,452,122 thousand, a decline of approximately 0.13%[12] - Stockholders' equity increased to $2,977,148 thousand from $2,895,251 thousand, reflecting a growth of about 2.83%[12] - The company reported a total of $2,765,575 thousand in securities, down from $2,930,860 thousand, indicating a decrease of approximately 5.63%[10] - Federal Home Loan Bank borrowings decreased significantly to $600,521 thousand from $1,105,541 thousand, a reduction of about 45.40%[12] - The company’s cash and due from banks increased to $198,987 thousand from $178,861 thousand, representing an increase of approximately 11.83%[10] - The total noninterest-bearing demand deposits decreased to $4,519,492 thousand from $4,567,083 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, a decrease of 29.5% from $60,808,000 in the same period of 2023[17] - Net interest income after provision for credit losses was $122,203,000 for the three months ended September 30, 2024, compared to $144,380,000 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, an increase of 3.5% from $92,542,000 in the same period of 2023[15] - Basic earnings per share for the three months ended September 30, 2024, was $1.01, down from $1.38 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, an increase of 2.7% from $97,782,000 in the same period of 2023[15] Credit Losses and Provisions - The allowance for credit losses increased to $163,696 thousand from $142,222 thousand, indicating a rise of about 15.16%[10] - Provision for credit losses increased to $19,500,000 for the three months ended September 30, 2024, compared to $5,500,000 in the same period of 2023, indicating a significant rise in credit loss expectations[15] - The provision for credit losses increased to $28,750 in 2024 from $17,750 in 2023, indicating a rise of 62%[23] - Charge-offs for the three months ended September 30, 2024, totaled $6.018 million, with recoveries amounting to $440, resulting in a net charge-off of $5.578 million[50] Securities and Investments - The total available for sale securities amounted to $1.334 billion as of September 30, 2024, with gross unrealized losses of $87.590 million[34] - U.S. Treasury securities held by the company were valued at $640.913 million as of September 30, 2024, reflecting a gross unrealized loss of $34.007 million[34] - The company reported net gains of $685,000 on equity securities for the three months ended September 30, 2024, compared to a loss of $363,000 for the same period in 2023[32] - The company had no sales of securities available for sale during the three and nine months ended September 30, 2024, and 2023, resulting in no realized gains or losses[35] Loan Portfolio and Quality - The company monitors asset quality using various indicators, categorizing loans based on payment issues and risk ratings[57] - The commercial loan portfolio's pass rating increased to $282,973,000 in 2024 from $188,687,000 in 2023, reflecting a growth of 49.9%[65] - The total commercial and industrial loans reported a loss of $296,851,000 in 2024, compared to $189,042,000 in 2023, indicating a significant increase in losses[65] - The company employs a 10-point credit risk-rating system to assess the risk associated with commercial loans, enhancing its risk management framework[58] Future Strategies and Developments - The company indicated a focus on market expansion and new product development as part of its future strategy[67] - The company plans to enhance its technology research and development efforts to drive growth[67] - The company is exploring potential mergers and acquisitions to strengthen its market position[67] Derivatives and Risk Management - The Company has a total notional amount of $1,400,000,000 in interest rate derivatives, with a fair value loss of $(17,106,000) as of September 30, 2024[102] - The Company utilizes interest rate derivatives to manage interest rate risk associated with its borrowings and loan portfolios[100] - The fair value of the Company's derivative valuations is classified as Level 2, indicating that the majority of inputs used are observable in the market[132] Other Comprehensive Income - The total other comprehensive income (loss) for the three months ended September 30, 2024, was $48,704, with an after-tax amount of $37,023[166] - The total accumulated other comprehensive income (loss) as of September 30, 2024, was $(77,202), compared to $(160,746) as of September 30, 2023[168]