Independent Bank (US:IBCP)2025-11-05 15:44Financial Performance - Net income for Q3 2025 was $17.5 million, up from $13.8 million in Q3 2024, reflecting a 27% increase[204]. - Year-to-date net income for the first nine months of 2025 was $50.0 million, compared to $48.3 million in the same period of 2024, representing a 3.5% increase[205]. - Basic net income per common share for Q3 2025 was $0.85, compared to $0.66 in Q3 2024, a 28.8% increase[206]. - Non-interest income totaled $11.9 million in Q3 2025, up from $9.5 million in Q3 2024, while year-to-date non-interest income decreased to $33.7 million from $37.2 million[224]. - The company recorded a net loss of $0.36 million on the sale of securities AFS for the first nine months of 2025, compared to a loss of $0.41 million in 2024[233]. Interest Income and Margin - Net interest income for Q3 2025 totaled $45.4 million, an increase of $3.5 million or 8.4% from Q3 2024[208]. - For the first nine months of 2025, net interest income was $133.7 million, up $10.3 million or 8.3% from the same period in 2024[209]. - The net interest margin for Q3 2025 was 3.54%, compared to 3.37% in Q3 2024, indicating improved efficiency[214]. - The net interest margin (Non-GAAP FTE) for the nine months ended September 30, 2025, was 3.54%, compared to 3.35% in 2024[218]. Asset and Equity Growth - Total assets increased to $5,385,238 thousand in 2025 from $5,219,668 thousand in 2024, reflecting growth in the company's balance sheet[216]. - Shareholders' equity rose to $466,533 thousand in 2025, up from $418,688 thousand in 2024, indicating improved financial stability[216]. - Total shareholders' equity grew to $490.7 million at September 30, 2025, from $454.7 million at December 31, 2024, primarily due to earnings retention[293]. Loan and Credit Quality - Non-accrual loans averaged $10.8 million in Q3 2025, up from $4.5 million in Q3 2024[212]. - The provision for credit losses increased by $2.0 million in the first nine months of 2025 compared to the same period in 2024[205]. - The total loans increased to $4,198,283,000 as of September 30, 2025, compared to $4,038,825,000 at December 31, 2024, reflecting a growth of approximately 3.95%[265]. - Non-performing loans rose to $20,355,000, representing 0.48% of total portfolio loans, up from 0.15% at December 31, 2024[267]. - The allowance for credit losses (ACL) on loans increased to $62,459,000 at September 30, 2025, from $59,379,000 at December 31, 2024, equating to 1.49% of total portfolio loans[272]. Deposits and Funding - Deposits totaled $4.86 billion at September 30, 2025, an increase of $205.1 million from December 31, 2024[254]. - Core deposits increased to $4.86 billion as of September 30, 2025, from $4.65 billion at December 31, 2024, driven by growth in savings and interest-bearing checking accounts[275]. - Uninsured deposits rose to $1,139,186 thousand, representing 24.3% of total deposits as of September 30, 2025, compared to 23.3% at December 31, 2024[277]. Expenses and Cost Management - Total non-interest expense increased by $1.5 million to $34.1 million in Q3 2025 and by $4.0 million to $102.2 million for the first nine months of 2025 compared to the same periods in 2024[240]. - Compensation and employee benefits expenses increased by $1.1 million in Q3 2025 and by $0.6 million for the first nine months of 2025 compared to the same periods in 2024[242]. Securities and Investments - Securities available for sale had a fair value of $502.6 million as of September 30, 2025, down from $559.2 million at December 31, 2024[257]. - As of September 30, 2025, the carrying value of securities held to maturity is $321,450,000, with unrealized losses of $13,766,000[258]. - The company recorded net losses of $36,000 on sales of securities available for sale during the three months ended September 30, 2025[261]. Risk Management and Controls - The maximum estimated additional losses from litigation matters are considered insignificant, although outcomes remain uncertain[306]. - The company has not experienced material changes in its critical accounting policies since the last annual report[313]. - There were no changes in internal controls over financial reporting that materially affected the company's reporting during the quarter ended September 30, 2025[319]. - The company’s disclosure controls and procedures were evaluated as effective as of September 30, 2025[318].