Independent Bank Corporation (NASDAQ: IBCP) has reported its fourth-quarter 2024 results, showing an increase in net interest income of $1.0 million (2.4%) over the third quarter of 2024. The net interest margin also increased by eight basis points from the linked quarter to 3.45%. The company's return on average assets and return on average equity reached 1.39% and 16.31%, respectively.
The net growth in loans was reported as $96.5 million, representing a 9.7% annualized increase from September 30, 2024. Additionally, the company paid a dividend of 24 cents per share on common stock on November 15, 2024.
For the fourth quarter of 2024, Independent Bank Corporation reported net income of $18.5 million, or $0.87 per diluted share, compared to net income of $13.7 million, or $0.65 per diluted share, in the prior-year period. For the full year ended December 31, 2024, the company reported net income of $66.8 million, or $3.16 per diluted share, compared to net income of $59.1 million, or $2.79 per diluted share, in 2023.
The company achieved a 10% annualized growth rate in its loan portfolio for the fourth quarter of 2024, driven by a 24% annualized growth rate in its commercial loan portfolio. Independent Bank Corporation's credit metrics remain strong, with watch credits and non-performing assets near historic lows.
In terms of non-interest income, the company reported $19.1 million and $56.4 million for the fourth quarter and full year of 2024, respectively, compared to $9.1 million and $50.7 million in the respective, comparable year-ago periods. The changes were primarily due to variances in mortgage banking-related revenues.
Non-interest expenses totaled $37.0 million in the fourth quarter of 2024, compared to $31.9 million in the year-ago period. For the full year of 2024, non-interest expenses totaled $135.1 million versus $127.1 million in 2023.
The provision for credit losses was an expense of $2.2 million and $4.5 million in the fourth quarter and full year ended December 31, 2024, respectively, compared to a credit of $(0.6) million and an expense of $6.2 million in the fourth quarter and full year ended December 31, 2023, respectively.
Total assets were $5.34 billion at December 31, 2024, an increase of $74.4 million from December 31, 2023. Loans, excluding loans held for sale, were $4.04 billion at December 31, 2024, compared to $3.79 billion at December 31, 2023. Deposits totaled $4.65 billion at December 31, 2024, an increase of $31.2 million from December 31, 2023.
Regarding liquidity and capital, the company's total shareholders' equity was $454.7 million at December 31, 2024, or 8.52% of total assets, compared to $404.4 million or 7.68% at December 31, 2023. Tangible common equity totaled $424.9 million at December 31, 2024, or $20.33 per share, compared to $374.1 million or $17.96 per share at December 31, 2023.
The company's wholly owned subsidiary, Independent Bank, remains significantly above "well capitalized" for regulatory purposes with various strong regulatory capital ratios.
As of December 31, 2024, the company had unused credit lines with the FHLB and FRB of approximately $1.08 billion and $501.8 million, respectively.
The board of directors of Independent Bank Corporation authorized the 2025 share repurchase plan, allowing the company to purchase up to 1,100,000 shares, or approximately 5% of its then outstanding common stock, through December 31, 2025.
Independent Bank Corporation is a Michigan-based bank holding company with total assets of $5.3 billion, operating a branch network across Michigan's lower peninsula through one state-chartered bank subsidiary. Today the company's shares have moved 1.9% to a price of $35.45. For more information, read the company's full 8-K submission here.
