Independent Bank (IBCP) Reports Strong Financial Growth

By Bobby Samwell • Thursday, October 24 10:30 • Permanent Link

Independent Bank Corporation (NASDAQ: IBCP) has reported its third-quarter 2024 results, revealing several key financial highlights and operational metrics. Net interest income increased by $0.5 million (or 4.9% annualized) from the previous quarter. Tangible book value per share also saw a significant increase of $3.69 (22.3%) over the third quarter of 2023. Core deposits experienced a net growth of $100.1 million (or 8.9% annualized) from June 30, 2024, while loans grew by $90.4 million (or 9.3% annualized) over the same period.

The company's net income for the third quarter of 2024 was reported at $13.8 million, or $0.65 per diluted share, compared to $17.5 million, or $0.83 per diluted share, in the prior-year period. Despite a decrease in net income, the company's president and CEO, William B. Kessel, expressed satisfaction with the results, emphasizing organic growth in loans and core deposits.

In terms of operating results, net interest income totaled $41.9 million during the third quarter of 2024, representing an increase of $2.4 million, or 6.2%, from the year-ago period. Non-interest income, however, decreased to $9.5 million from $15.6 million in the comparable prior year period, primarily due to variances in mortgage banking related revenues.

The company's balance sheet also saw changes, with total assets amounting to $5.26 billion at September 30, 2024, a decrease of $4.5 million from December 31, 2023. Loans, excluding those held for sale, increased to $3.94 billion at September 30, 2024, from $3.79 billion at December 31, 2023. Additionally, deposits grew to $4.63 billion at September 30, 2024, an increase of $4.0 million from December 31, 2023.

Regarding asset quality, non-performing loans decreased to $5.148 million at September 30, 2024, from $5.232 million at December 31, 2023.

The company's wholly-owned subsidiary, Independent Bank, remains significantly above "well capitalized" for regulatory purposes, with tier 1 capital to average total assets at 9.36% as of September 30, 2024, compared to 8.80% at December 31, 2023.

As a result of these announcements, the company's shares have moved -3.7% on the market, and are now trading at a price of $32.01. For the full picture, make sure to review Independent Bank's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.