Advertisement
U.S. markets closed
  • S&P 500

    5,088.80
    +1.77 (+0.03%)
     
  • Dow 30

    39,131.53
    +62.42 (+0.16%)
     
  • Nasdaq

    15,996.82
    -44.80 (-0.28%)
     
  • Russell 2000

    2,016.69
    +2.85 (+0.14%)
     
  • Crude Oil

    76.57
    -2.04 (-2.60%)
     
  • Gold

    2,045.80
    +15.10 (+0.74%)
     
  • Silver

    22.98
    +0.19 (+0.84%)
     
  • EUR/USD

    1.0823
    -0.0005 (-0.04%)
     
  • 10-Yr Bond

    4.2600
    -0.0670 (-1.55%)
     
  • GBP/USD

    1.2673
    +0.0015 (+0.12%)
     
  • USD/JPY

    150.4400
    -0.0600 (-0.04%)
     
  • Bitcoin USD

    51,101.38
    +195.62 (+0.38%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,706.28
    +21.79 (+0.28%)
     
  • Nikkei 225

    39,098.68
    +836.48 (+2.19%)
     

Independent Bank Corp (Ionia MI) (IBCP) Reports Q3 2023 Earnings with Solid Balance Sheet Growth

  • Independent Bank Corp (Ionia MI) (NASDAQ:IBCP) reported Q3 2023 net income of $17.5 million, up from $17.3 million in the prior-year period.

  • The company saw a 2.8% increase in net interest income over the second quarter of 2023.

  • Net growth in core deposits and loans were $112.6 million and $110.4 million respectively.

  • A 23 cent per share dividend on common stock was paid on August 14, 2023.


Independent Bank Corp (Ionia MI) (NASDAQ:IBCP) released its Q3 2023 earnings report on October 24, 2023. The company reported a net income of $17.5 million, or $0.83 per diluted share, compared to a net income of $17.3 million, or $0.81 per diluted share, in the prior-year period. For the nine months ended September 30, 2023, the company reported a net income of $45.3 million, or $2.14 per diluted share, compared to a net income of $48.3 million, or $2.27 per diluted share, in the prior year period.

Financial Highlights


Independent Bank Corp (Ionia MI) (NASDAQ:IBCP) reported an increase in net interest income of $1.1 million (2.8%) over the second quarter of 2023. The company also saw net growth in core deposits of $112.6 million (or 10.5% annualized) and net growth in loans of $110.4 million (or 12.1% annualized) from June 30, 2023. Furthermore, the company paid a 23 cent per share dividend on common stock on August 14, 2023.

CEO Commentary


William B. Kessel, the President and CEO of Independent Bank Corp, commented on the results:

Our team continued its positive momentum in the third quarter, achieving strong financial results with solid balance sheet growth, a stable net interest margin, disciplined expense management, and healthy asset quality. Capitalizing on the current operating environment, we gained new banking relationships with clients who appreciate our value proposition as a commercial bank with robust treasury management solutions, industry expertise, and client centric service. This success led to double-digit annualized growth in loans and deposits. Despite expecting lower loan growth in the fourth quarter due to seasonality, we have a solid pipeline of high-quality relationship opportunities.

Financial Analysis


The company's net interest income totaled $39.4 million during the third quarter of 2023, a decrease of $0.5 million, or 1.2% from the year-ago period, and an increase of $1.1 million, or 2.8%, from the second quarter of 2023. Non-interest income totaled $15.6 million and $41.6 million, respectively, for the third quarter and for the first nine months 2023, compared to $16.9 million and $50.4 million in the respective comparable prior year periods.

Balance Sheet, Capital and Liquidity


Total assets were $5.20 billion at September 30, 2023, an increase of $200.2 million from December 31, 2022. Loans, excluding loans held for sale, were $3.74 billion at September 30, 2023, compared to $3.47 billion at December 31, 2022. Deposits totaled $4.59 billion at September 30, 2023, an increase of $206.5 million from December 31, 2022.

Looking Ahead


Despite expecting lower loan growth in the fourth quarter due to seasonality, Independent Bank Corp (Ionia MI) (NASDAQ:IBCP) has a solid pipeline of high-quality relationship opportunities. The company remains significantly above well capitalized for regulatory purposes, indicating a strong financial position for the future.

This article first appeared on GuruFocus.

Advertisement