Independent Bank (US:IBCP)2025-10-28 12:12Financial Performance - Net income for Q3 2025 was $17.5 million, or $0.84 per diluted share, compared to $13.8 million, or $0.65 per diluted share in Q3 2024, representing a year-over-year increase of 26.8% in net income[1] - Net income for the three months ended September 30, 2025, was $17,502 thousand, an increase of 3.7% from $16,877 thousand in the previous quarter[29] - Net income for Q3 2025 reached $17,502,000, up 26.3% from $13,810,000 in Q3 2024[31] - Basic net income per common share increased to $0.85 for the three months ended September 30, 2025, compared to $0.81 in the previous quarter, reflecting a growth of 4.9%[29] - Basic earnings per share increased to $0.85 in Q3 2025, compared to $0.66 in Q3 2024, reflecting a growth of 28.8%[31] Income and Revenue - Net interest income totaled $45.4 million, an increase of $3.5 million (or 8.4%) from the prior year, and $0.7 million (or 1.7%) from Q2 2025[5] - Non-interest income increased to $11.9 million in Q3 2025 from $9.5 million in Q3 2024, primarily due to variances in mortgage banking revenues[6] - Non-interest income totaled $11,937 thousand for the three months ended September 30, 2025, compared to $11,325 thousand in the previous quarter, indicating a rise of 5.4%[29] - Net interest income for Q3 2025 was $45,361,000, an increase of 8.6% from $41,854,000 in Q3 2024[31] - Net interest income after provision for credit losses was $129,449 thousand for the nine months ended September 30, 2025, compared to $121,146 thousand for the same period in 2024, representing a growth of 6.9%[29] Assets and Deposits - Total assets reached $5.49 billion at September 30, 2025, an increase of $155.0 million from December 31, 2024[13] - Total assets increased to $5,493,113 thousand as of September 30, 2025, compared to $5,338,104 thousand at December 31, 2024, reflecting a growth of 2.9%[27] - Total deposits were $4.86 billion at September 30, 2025, reflecting an increase of $205.1 million from December 31, 2024[13] - Total deposits reached $4,859,155 thousand, a 4.4% increase from $4,654,088 thousand at the end of 2024[27] - Deposits increased to $4,786,408,000 in Q3 2025 from $4,616,119,000 in Q3 2024, marking a rise of 3.7%[31] Credit and Losses - The allowance for credit losses stood at 1.49% of total loans, with net charge-offs of $0.73 million in Q3 2025 compared to $0.31 million in Q3 2024[12] - Provision for credit losses was $1,991 thousand for the three months ended September 30, 2025, compared to $1,500 thousand in the previous quarter, showing an increase of 32.7%[29] - Provision for credit losses increased to $1,991,000 in Q3 2025 from $721,000 in Q3 2024, indicating a rise in expected credit losses[31] Efficiency and Management - The efficiency ratio for Q3 2025 was 58.86%, indicating effective expense management and strategic investments[2] - The efficiency ratio improved to 58.86% in Q3 2025 from 62.82% in Q3 2024, indicating better cost management[31] - Total non-interest expense increased to $34,131 thousand for the three months ended September 30, 2025, compared to $33,762 thousand in the previous quarter, a rise of 1.1%[29] Shareholder Equity and Capital - The company repurchased 266,008 shares of common stock for an aggregate purchase price of $7.77 million during the nine months ended September 30, 2025[18] - The company reported an increase in retained earnings to $239,602 thousand as of September 30, 2025, up from $205,853 thousand at December 31, 2024, reflecting a growth of 16.4%[27] - Common shareholders' equity increased to $490,742 thousand as of September 30, 2025, up from $469,250 thousand in the previous quarter[38] - Tangible common equity reached $461,319 thousand, reflecting an increase from $439,706 thousand in the prior quarter[38] - The tangible common equity ratio improved to 8.44% as of September 30, 2025, compared to 8.16% in the previous quarter[38] Capital Ratios - The tangible common equity ratio increased to 8.44% in Q3 2025 from 8.08% in Q3 2024, showing enhanced capital strength[32] - Total capital to risk-weighted assets ratio was 13.67% as of September 30, 2025, down from 14.25% a year earlier, indicating a slight decrease in capital adequacy[32] - The common equity ratio was reported at 8.93%, up from 8.66% in the prior quarter[38] Other Financial Metrics - The net interest margin was 3.54% in Q3 2025, up from 3.37% in Q3 2024, but down from 3.58% in Q2 2025[5] - The net interest margin (FTE) for Q3 2025 was 3.54%, up from 3.37% in Q3 2024, reflecting improved profitability on earning assets[37] - The number of shares of common stock outstanding was 20,692 thousand, slightly down from 20,716 thousand in the previous quarter[38] - Tangible assets excluding accumulated other comprehensive loss adjustments totaled $5,518,523 thousand, up from $5,453,064 thousand in the previous quarter[38] - The accumulated other comprehensive loss for regulatory purposes was $54,833 thousand, down from $64,089 thousand in the previous quarter[38]