Independent Bank Corporation Reports 2015 First Quarter Results
2015 highlights include:
- Net income increased
$0.6 million , or 20.5%, over 2014; - A sequential quarterly increase in net interest income;
- Strong mortgage-banking activity with quarterly year-over-year gains on mortgage loans up
$1.0 million , or 87.0%; - First quarter net growth in commercial loans of
$19.4 million , or 11.4% annualized; - Continued improvement in asset quality metrics with a
$1.2 million , or 5.7%, decline in non-performing assets during the first quarter; - Growth in tangible book value per share to
$10.94 atMarch 31, 2015 compared to$10.79 atDecember 31, 2014 .
William B. ("Brad") Kessel, the President and Chief Executive Officer of
Operating Results
The Company's net interest income totaled
Non-interest income totaled
Gains on mortgage loans increased
Non-interest expense totaled
The Company recorded an income tax expense of
Asset Quality
Commenting on asset quality, President and CEO Kessel added: "We continue to make progress in further improving asset quality, as evidenced by declines in non-performing assets, loan net charge-offs, and credit related expenses. In addition, thirty- to eighty-nine day delinquency rates at
A breakdown of non-performing loans(1) by loan type is as follows:
Loan Type |
|
|
|
(Dollars in Thousands) |
|||
Commercial |
$ 4,705 |
$ 4,573 |
$ 7,813 |
Consumer/installment |
1,388 |
1,595 |
1,804 |
Mortgage |
8,683 |
9,056 |
11,203 |
Payment plan receivables(2) |
11 |
14 |
6 |
Total |
|
|
|
Ratio of non-performing loans to total portfolio loans |
1.04% |
<span class="prnews_span">1.08% |
1.53% |
Ratio of non-performing assets to total assets |
0.88% |
0.96% |
1.72% |
Ratio of the allowance for loan losses to non-performing loans |
166.90% |
170.56% |
146.15% |
(1) |
Excludes loans that are classified as "troubled debt restructured" that are still performing. |
(2) |
Represents payment plans for which no payments have been received for 90 days or more and for which Mepco has not yet completed the process to charge the applicable counterparty for the balance due. These balances exclude receivables due from Mepco counterparties related to the cancellation of payment plan receivables. |
Non-performing loans decreased by
The provision for loan losses was a credit of
Balance Sheet, Liquidity and Capital
Total assets were
Cash and cash equivalents totaled
Total shareholders' equity was
Regulatory Capital Ratios |
|
|
Well |
Tier 1 capital to average total assets |
9.70% |
10.46% |
5.00% |
Tier 1 common equity to risk-weighted assets |
14.26% |
n/a |
6.50% |
Tier 1 capital to risk-weighted assets |
14.26% |
15.63% |
8.00% |
Total capital to risk-weighted assets |
15.53% |
16.90% |
10.00% |
Share Repurchase Plan
As previously announced, on
Thus far in 2015 (through
Earnings Conference Call
To participate in the live conference call, please dial 1-866-200-8394. Also the conference call will be accessible through an audio webcast with user-controlled slides via the following event site/URL: http://services.choruscall.com/links/ibcp150420.html.
A playback of the call can be accessed by dialing 1-877-344-7529 (Conference ID # 10062166). The replay will be available through
Annual Shareholders Meeting
The Company's 2015 Annual Meeting of Shareholders is being held at
About
For more information, please visit our Web site at: www.IndependentBank.com.
Any statements in this news release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as "anticipates," "believes," "contemplates," "feels," "expects," "estimates," "seeks," "strives," "plans," "intends," "outlook," "forecast," "position," "target," "mission," "assume," "achievable," "potential," "strategy," "goal," "aspiration," "opportunity," "initiative," "outcome," "continue," "remain," "maintain," "on course," "trend," "objective," "looks forward" and variations of such words and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "might," "can," "may" or similar expressions, as they relate to
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES |
||||
|
|
|||
2015 |
2014 |
|||
(unaudited) |
||||
(In thousands, except share |
||||
amounts) |
||||
Assets |
||||
Cash and due from banks |
$ 46,435 |
$ 48,326 |
||
Interest bearing deposits |
55,117 |
25,690 |
||
Cash and Cash Equivalents |
101,552 |
74,016 |
||
Interest bearing deposits - time |
11,575 |
13,561 |
||
Trading securities |
213 |
203 |
||
Securities available for sale |
571,762 |
533,178 |
|
20,051 |
19,919 |
Loans held for sale, carried at fair value |
30,932 |
23,662 |
||
Loans |
||||
Commercial |
710,323 |
690,955 |
||
Mortgage |
465,907 |
472,628 |
||
Installment |
207,962 |
206,378 |
||
Payment plan receivables |
38,767 |
40,001 |
||
Total Loans |
1,422,959 |
1,409,962 |
||
Allowance for loan losses |
(24,679) |
(25,990) |
||
Net Loans |
1,398,280 |
1,383,972 |
||
Other real estate and repossessed assets |
5,662 |
6,454 |
||
Property and equipment, net |
45,220 |
45,948 |
||
Bank-owned life insurance |
53,975 |
53,625 |
||
Deferred tax assets, net |
46,190 |
48,632 |
||
Capitalized mortgage loan servicing rights |
11,318 |
12,106 |
||
Vehicle service contract counterparty receivables, net |
7,229 |
7,237 |
||
Other intangibles |
2,540 |
2,627 |
||
Accrued income and other assets |
22,797 |
23,590 |
||
Total Assets |
$ 2,329,296 |
$ 2,248,730 |
||
Liabilities and Shareholders' Equity |
||||
Deposits |
||||
Non-interest bearing |
$ 620,598 |
$ 576,882 |
||
Savings and interest-bearing checking |
988,776 |
943,734 |
||
Reciprocal |
58,705 |
53,668 |
||
Retail time |
331,095 |
338,720 |
||
Brokered time |
1,299 |
11,298 |
||
Total Deposits |
2,000,473 |
1,924,302 |
||
Other borrowings |
12,468 |
12,470 |
||
Subordinated debentures |
35,569 |
35,569 |
||
Vehicle service contract counterparty payables |
2,312 |
1,977 |
||
Accrued expenses and other liabilities |
24,849 |
24,041 |
||
Total Liabilities |
2,075,671 |
1,998,359 |
||
Shareholders' Equity |
||||
Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding |
- |
- |
||
Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: |
||||
22,958,316 shares at |
351,881 |
352,462 |
||
Accumulated deficit |
(94,054) |
(96,455) |
||
Accumulated other comprehensive loss |
(4,202) |
(5,636) |
||
Total Shareholders' Equity |
253,625 |
250,371 |
||
Total Liabilities and Shareholders' Equity |
$ 2,248,730 |
|||
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES |
||||||
Consolidated Statements of Operations |
||||||
Three Months Ended |
||||||
|
|
|
||||
2015 |
2014 |
2014 |
||||
(unaudited) |
||||||
(In thousands) |
||||||
Interest Income |
||||||
Interest and fees on loans |
$ 17,239 |
$ 17,644 |
$ 18,215 |
|||
Interest on securities |
||||||
Taxable |
1,758 |
1,718 |
1,383 |
|||
Tax-exempt |
217 |
161 |
262 |
|||
Other investments |
338 |
324 |
423 |
|||
Total Interest Income |
19,552 |
19,847 |
20,283 |
|||
Interest Expense |
||||||
Deposits |
1,007 |
1,178 |
1,293 |
|||
Other borrowings |
454 |
612 |
512 |
|||
Total Interest Expense |
1,461 |
1,790 |
1,805 |
|||
Net Interest Income |
18,091 |
18,057 |
18,478 |
|||
Provision for loan losses |
(659) |
(1,087) |
428 |
|||
Net Interest Income After Provision for Loan Losses |
18,750 |
19,144 |
18,050 |
|||
Non-interest Income |
||||||
Service charges on deposit accounts |
2,850 |
3,280 |
3,055 |
|||
Interchange income |
2,142 |
2,172 |
1,941 |
|||
Net gains (losses) on assets |
||||||
Mortgage loans |
2,139 |
1,489 |
1,144 |
|||
Securities |
85 |
(5) |
112 |
|||
Mortgage loan servicing |
(420) |
(598) |
264 |
|||
Title insurance fees |
256 |
261 |
274 |
|||
Gain on extinguishment of debt |
- |
500 |
- |
|||
Other |
1,910 |
2,102 |
2,165 |
|||
Total Non-interest Income |
8,962 |
9,201 |
8,955 |
|||
Non-Interest Expense |
||||||
Compensation and employee benefits |
11,785 |
12,447 |
11,238 |
|||
Occupancy, net |
2,419 |
2,197 |
2,483 |
|||
Data processing |
1,930 |
1,879 |
2,086 |
|||
Loan and collection |
1,155 |
1,109 |
1,465 |
|||
Furniture, fixtures and equipment |
952 |
1,010 |
1,069 |
|||
Communications |
736 |
714 |
789 |
|||
Advertising |
484 |
646 |
519 |
|||
Legal and professional |
380 |
589 |
401 |
|||
|
343 |
332 |
417 |
|||
Interchange expense |
291 |
179 |
402 |
|||
Credit card and bank service fees |
202 |
212 |
263 |
|||
Vehicle service contract counterparty contingencies |
29 |
30 |
68 |
|||
Costs related to unfunded lending commitments |
16 |
4 |
10 |
|||
Provision for loss reimbursement on sold loans |
(69) |
- |
(481) |
|||
Net gains on other real estate and repossessed assets |
(39) |
(90) |
(87) |
|||
Other |
1,537 |
1,649 |
1,758 |
|||
Total Non-interest Expense |
22,151 |
22,907 |
22,400 |
|||
Income Before Income Tax |
5,561 |
5,438 |
4,605 |
|||
Income tax expense |
1,780 |
1,536 |
1,467 |
|||
Net Income |
$ 3,781 |
$ 3,902 |
|
|||
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES |
||||||
Selected Financial Data |
||||||
Three Months Ended |
||||||
|
|
|
||||
2015 |
2014 |
2014 |
||||
(unaudited) |
||||||
Per Common Share Data |
||||||
Net Income Per Common Share |
||||||
Basic (A) |
$ 0.16 |
$ 0.17 |
$ 0.14 |
|||
Diluted (B) |
0.16 |
0.17 |
0.13 |
|||
Cash dividends declared per common share |
0.06 |
0.06 |
- |
|||
<br /> | ||||||
Selected Ratios (C) |
||||||
As a Percent of Average Interest-Earning Assets |
||||||
Interest income |
3.86 |
% |
3.91 |
% |
4.16 |
% |
Interest expense |
0.29 |
0.35 |
0.37 |
|||
Net interest income |
3.57 |
3.56 |
3.79 |
|||
Net Income to |
||||||
Average common shareholders' equity |
6.05 |
% |
6.19 |
% |
5.41 |
% |
Average assets |
0.67 |
0.69 |
0.57 |
|||
Average Shares |
||||||
Basic (A) |
22,996,621 |
22,952,610 |
22,887,502 |
|||
Diluted (B) |
23,537,629 |
23,491,133 |
23,436,228 |
|||
(A) Average shares of common stock for basic net income per common share include shares issued and outstanding during the period and participating share awards. |
||||||
(B) Average shares of common stock for diluted net income per common share include shares to be issued upon exercise of stock options, restricted stock units and stock units for a deferred compensation plan for non-employee directors. |
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(C) Ratios have been annualized. |
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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/independent-bank-corporation-reports-2015-first-quarter-results-300068370.html
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