Independent Bank Corporation Reports 2025 First Quarter Results

Core Points - Independent Bank Corporation reported a net income of $15.6 million, or $0.74 per diluted share, for the first quarter of 2025, a slight decrease from $16.0 million, or $0.76 per diluted share, in the same period last year [1][2] - The company experienced a 3.4% annualized increase in overall loans and a 0.8% annualized increase in core deposits [2] - Net interest income rose to $43.7 million, an increase of $3.5 million, or 8.7%, from the previous year [3] - Non-interest income decreased to $10.4 million from $12.6 million in the prior year, primarily due to variances in mortgage banking revenues [4] - The company maintained strong credit metrics, with non-performing assets at 0.14% of total assets and a low level of watch credits [10][11] Financial Performance - The net interest margin improved to 3.49% in Q1 2025 from 3.30% in Q1 2024 [3] - Average interest-earning assets increased to $5.08 billion, compared to $4.91 billion in the prior year [3] - The provision for credit losses was $0.72 million, slightly down from $0.74 million in the previous year [11] - Total non-interest expenses rose to $34.3 million from $32.2 million in the prior year [8] Asset Quality - Total non-performing loans increased to $7.086 million, with a ratio of non-performing loans to total portfolio loans at 0.17% [10] - The allowance for credit losses was 1.47% of total loans, consistent with the previous quarter [11] Balance Sheet and Capital - Total assets were $5.33 billion, a decrease of $9.7 million from the previous quarter [12] - Total shareholders' equity increased to $467.3 million, or 8.77% of total assets, compared to $454.7 million, or 8.52%, at the end of the previous quarter [14] - The tangible common equity ratio improved to 8.26% from 8.00% at the end of the previous quarter [33] Shareholder Returns - The company declared a cash dividend of $0.26 per share on February 14, 2025 [6] - A share repurchase plan was authorized to buy back up to 1,100,000 shares, with 1,093 shares repurchased in Q1 2025 [16]