Independent Bank (US:IBCP)2026-01-22 13:17Financial Performance - Fourth quarter 2025 net income was $18.6 million, or $0.89 per diluted share, compared to $18.5 million, or $0.87 per diluted share in the prior-year period[1]. - Net income for the twelve months ended December 31, 2025, was $68.54 million, up from $66.79 million in 2024, indicating a growth of about 2.6%[31]. - Basic net income per common share increased to $3.30 in 2025 from $3.20 in 2024, a rise of 3.1%[31]. - Net income for Q4 2025 was $18,572,000, up 6.1% from $17,502,000 in Q3 2025[33]. Revenue and Income Sources - Net interest income for the fourth quarter increased by $3.5 million (8.2%) year-over-year to $46.4 million, with a net interest margin of 3.62%, up from 3.45% in the prior year[4]. - Non-interest income for the fourth quarter was $12.0 million, down from $19.1 million in the prior year, primarily due to variances in mortgage banking revenues[6]. - Non-interest income totaled $45.64 million for the twelve months ended December 31, 2025, down from $56.36 million in 2024, a decrease of approximately 19.1%[31]. - Net interest income after provision for credit losses was $173.88 million for the twelve months ended December 31, 2025, compared to $161.78 million in 2024, reflecting a year-over-year increase of approximately 7.5%[31]. Asset and Loan Growth - Total assets increased to $5.51 billion at December 31, 2025, up $167.6 million from the previous year, with loans totaling $4.28 billion[14]. - Total loans grew by $78.0 million (7.4% annualized) from September 30, 2025, while total deposits increased by $57.1 million (4.8% annualized) over the same period[3]. - Net loans increased to $4.21 billion in 2025, up from $3.98 billion in 2024, representing a growth of approximately 5.8%[28]. - Loans increased to $4,249,389,000 in Q4 2025, up from $4,201,557,000 in Q3 2025, showing growth in lending activities[33]. Credit Quality and Loss Provisions - The provision for credit losses was $6.1 million for the full year 2025, compared to $4.5 million in 2024, reflecting growth in commercial loans[9]. - The allowance for credit losses was $63.45 million as of December 31, 2025, compared to $59.38 million in 2024, reflecting a 6.5% increase[28]. - Provision for credit losses decreased to $1,923,000 in Q4 2025 from $1,991,000 in Q3 2025, indicating improved credit quality[33]. - The ratio of non-performing loans to total portfolio loans was 0.54% at December 31, 2025, compared to 0.15% a year earlier[12]. Shareholder Returns and Equity - The company’s dividend payout ratio was 32% for the year, with a dividend payment of $0.26 per share on November 14, 2025[3]. - The tangible common equity ratio improved to 8.65% in Q4 2025 from 8.44% in Q3 2025, indicating stronger capital position[35]. - Tangible common equity rose to $473.7 million, or $23.05 per share, compared to $424.9 million, or $20.33 per share at December 31, 2024[17]. - Cash dividend per share remained stable at $0.26 for both Q4 2025 and Q3 2025, reflecting consistent shareholder returns[33]. Expense Management - Total non-interest expense increased to $138.23 million in 2025, compared to $135.10 million in 2024, representing a rise of about 2.4%[31]. - The company reported a provision for credit losses of $6.14 million for the twelve months ended December 31, 2025, compared to $4.47 million in 2024, indicating an increase of approximately 37.4%[31].