Independent Bank Corporation has reported its first quarter 2025 results, showcasing several key highlights. Net interest income increased by $0.8 million (or 1.9%) compared to the fourth quarter of 2024. Additionally, tangible book value per share rose by $2.43 (13.2%) from March 31, 2024. There was also a net growth in core deposits of $9.1 million (or 0.8% annualized) from December 31, 2024, and a net growth in loans of $33.9 million (or 3.4% annualized) from the same period. The company also paid a 26 cent per share dividend on common stock on February 14, 2025.
The net income for the first quarter of 2025 was reported at $15.6 million, or $0.74 per diluted share, compared to a net income of $16.0 million, or $0.76 per diluted share, in the prior-year period.
In terms of net interest income, the company's total reached $43.7 million during the first quarter of 2025, marking an increase of $3.5 million, or 8.7%, from the year-ago period, and a rise of $0.8 million, or 1.9%, from the fourth quarter of 2024. The net interest margin was at 3.49% during the first quarter of 2025, compared to 3.30% in the year-ago period.
Non-interest income totaled $10.4 million for the first quarter of 2025, down from $12.6 million in the comparable prior year period, primarily due to variances in mortgage banking-related revenues. Net gains on mortgage loans in the first quarters of 2025 and 2024 were approximately $2.3 million and $1.4 million, respectively.
The non-interest expenses totaled $34.3 million in the first quarter of 2025, compared to $32.2 million in the year-ago period. The company recorded income tax expense of $3.5 million in the first quarter of 2025, down from $3.8 million in the first quarter of 2024.
The provision for credit losses was an expense of $0.72 million and $0.74 million in the first quarters of 2025 and 2024, respectively. The company recorded loan net charge offs of $0.07 million and $0.22 million in the first quarters of 2025 and 2024, respectively.
Total assets were reported at $5.33 billion at March 31, 2025, a decrease of $9.7 million from December 31, 2024. Loans, excluding loans held for sale, were $4.07 billion at March 31, 2025, compared to $4.04 billion at December 31, 2024.
Shareholders' equity was $467.3 million at March 31, 2025, or 8.77% of total assets, compared to $454.7 million or 8.52% at December 31, 2024. Tangible common equity totaled $437.6 million at March 31, 2025, or $20.87 per share, compared to $424.9 million or $20.33 per share at December 31, 2024.
The company's wholly owned subsidiary, Independent Bank, remains significantly above "well capitalized" for regulatory purposes with various ratios exceeding regulatory minimums.
Additionally, on December 17, 2024, the board of directors of the company authorized the 2025 share repurchase plan. Under the terms of the plan, the company is authorized to purchase up to 1,100,000 shares, or approximately 5% of its then outstanding common stock. During the three-month period ended March 31, 2025, there were 1,093 shares of common stock repurchased, for an aggregate purchase price of $0.03 million. Subsequent to quarter end, from April 3, 2025 through April 22, 2025, there were 249,482 additional shares of common stock repurchased, for an aggregate purchase price of $7.2 million.
Independent Bank Corporation is a Michigan-based bank holding company with total assets of approximately $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 -1.0% to a price of $30.97. Check out the company's full 8-K submission here.
