Independent Bank Corp (Ionia MI) (IBCP, Financial) 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) (IBCP, Financial) 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) (IBCP, Financial) 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.
