Independent Bank Corporation Reports 2014 First Quarter Results

The Company recorded an income tax expense of $1.5 million and $0.035 million in the first quarters of 2014 and 2013, respectively. Prior to the second quarter of 2013, the Company had established a deferred tax asset valuation allowance against all of its net deferred tax assets.  Accordingly, in the first quarter of 2013, the income tax expense related to pre-tax earnings was largely offset by the change in the deferred tax valuation allowance. 

In determining net income applicable to common stock, the first quarter of 2013 included $1.1 million of preferred stock dividends and discount accretion.  This preferred stock, which had been issued to the U.S. Treasury, was redeemed and retired in Aug. 2013. 

Asset Quality

Commenting on asset quality, President and CEO Kessel added:  "Non-performing loans increased by $2.9 million during the first quarter of 2014, due primarily to two commercial loan relationships moving into non-accrual.  Both of these relationships had been classified as substandard accruing watch credits at year end 2013.  Thus, the migration to non-accrual represents our ongoing collection and resolution efforts rather than a newly developed problem credit situation.  We remain confident about the long-term continued improvement in our asset quality metrics.  Our provision for loan losses totaled $0.4 million in the first quarter of 2014 as compared to a credit of $0.7 million in the year-ago quarter.  However, overall credit costs declined by approximately $0.4 million year-over year, when considering the provision for loan losses, loan and collection expenses and the gain or loss on other real estate.  Since Mar. 31, 2013, non-performing loans and commercial loan watch credits have declined by approximately 25% and 34%, respectively.  In addition, thirty- to eighty-nine day delinquency rates at Mar. 31, 2014 were 0.36% for commercial loans and 1.10% for mortgage and consumer loans. These delinquency rates continue to be well managed as we strive to further improve asset quality and reduce credit related costs."

A breakdown of non-performing loans⁽¹⁾ by loan type is as follows:

Non-performing loans increased by $2.9 million, or 16.3%, since year-end 2013, but have declined by $7.1 million, or 25.3%, since Mar. 31, 2013.  Non-performing commercial loans increased $2.4 million since year-end 2013, representing 83.7% of the total increase.  The increase in non-performing commercial loans was due principally to two relationships that moved into non-accrual in the first quarter of 2014, which had been categorized as substandard accruing watch credits at year-end 2013.  Other real estate and repossessed assets totaled $18.0 million at Mar. 31, 2014, compared to $18.3 million at Dec. 31, 2013.

The provision for loan losses was an expense of $0.4 million and a credit of $0.7 million in the first quarters of 2014 and 2013, respectively.  The level of the provision for loan losses in each period reflects the Company's overall assessment of the allowance for loan losses, taking into consideration factors such as loan mix, levels of non-performing and classified loans and loan net charge-offs.  Loan net charge-offs were $2.3 million (0.69% annualized of average loans) in the first quarter of 2014, compared to $2.8 million (0.82% annualized of average loans) in the first quarter of 2013.  The decline in first quarter 2014 loan net charge-offs compared to year ago levels is primarily due to a $1.0 million decline in mortgage and consumer/installment loan net charge-offs that was partially offset by a $0.5 million increase in commercial loan net charge-offs.  At Mar. 31, 2014, the allowance for loan losses totaled $30.4 million, or 2.24% of portfolio loans, compared to $32.3 million, or 2.35% of portfolio loans, at Dec. 31, 2013.

Balance Sheet, Liquidity and Capital

Total assets were $2.26 billion at Mar. 31, 2014, an increase of $49.7 million from Dec. 31, 2013.  Loans, excluding loans held for sale, were $1.36 billion at Mar. 31, 2014, compared to $1.37 billion at Dec. 31, 2013.  Deposits totaled $1.94 billion at Mar. 31, 2014, an increase of $53.9 million from Dec. 31, 2013.  The increase in deposits is primarily due to growth in checking and savings account balances. 

Cash and cash equivalents totaled $131.9 million at Mar. 31, 2014, versus $119.1 million at Dec. 31, 2013. Securities available for sale totaled $522.9 million at Mar. 31, 2014, versus $462.5 million at Dec. 31, 2013.  This $60.5 million increase is primarily due to the purchase of residential mortgage-backed securities, asset-backed securities, municipal securities and corporate securities during the first quarter of 2014.

Total shareholders' equity was $236.6 million at Mar. 31, 2014, or 10.47% of total assets.  Tangible common equity totaled $233.6 million at Mar. 31, 2014, or $10.19 per share.  The Company's wholly owned subsidiary, Independent Bank, remains significantly above "well capitalized" for regulatory purposes with the following ratios:

About Independent Bank Corporation

Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately $2.3 billion.  Founded as First National Bank of Ionia in 1864, Independent Bank Corporation operates a branch network across Michigan's Lower Peninsula through one state-chartered bank subsidiary.  This subsidiary (Independent Bank) provides a full range of financial services, including commercial banking, mortgage lending, investments and title services.  Independent Bank Corporation is committed to providing exceptional personal service and value to its customers, stockholders and the communities it serves. 

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 or its management, are intended to identify forward-looking statements. These forward-looking statements are predicated on the beliefs and assumptions of Independent Bank Corporation's management based on information known to Independent Bank Corporation's management as of the date of this news release and do not purport to speak as of any other date. Forward looking statements may include descriptions of plans and objectives of Independent Bank Corporation's management for future or past operations, products or services, and forecasts of Independent Bank Corporation's revenue, earnings or other measures of economic performance, including statements of profitability, business segments and subsidiaries, and estimates of credit trends. Such statements reflect the view of Independent Bank Corporation's management as of this date with respect to future events and are subject to risks and uncertainties. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Independent Bank Corporation's actual results could differ materially from those discussed. Factors that could cause or contribute to such differences are changes in general economic, political or industry conditions; changes in monetary and fiscal policies, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in capital and credit markets; the interdependence of financial service companies; changes in regulation or oversight; unfavorable developments concerning credit quality; any future acquisitions or divestitures; the effects of more stringent capital or liquidity requirements; declines or other changes in the businesses or industries of Independent Bank Corporation's customers; the implementation of Independent Bank Corporation's strategies and business models; Independent Bank Corporation's ability to utilize technology to efficiently and effectively develop, market and deliver new products and services; operational difficulties, failure of technology infrastructure or information security incidents; changes in the financial markets, including fluctuations in interest rates and their impact on deposit pricing; competitive product and pricing pressures among financial institutions within Independent Bank Corporation's markets; changes in customer behavior; management's ability to maintain and expand customer relationships; management's ability to retain key officers and employees; the impact of legal and regulatory proceedings or determinations; the effectiveness of methods of reducing risk exposures; the effects of terrorist activities and other hostilities; the effects of catastrophic events; changes in accounting standards and the critical nature of Independent Bank Corporation's accounting policies. Independent Bank Corporation cautions that the foregoing list of factors is not exclusive. For discussion of factors that may cause actual results to differ from expectations, please refer to our filings with the Securities and Exchange Commission. In particular, please refer to "Item 1A. Risk Factors" in Independent Bank Corporation's Annual Report on Form 10-K for the year ended December 31, 2013. Forward-looking statements speak only as of the date they are made. Independent Bank Corporation does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward looking statements are made. For any forward-looking statements made in this news release or in any documents, Independent Bank Corporation claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial Condition
		March 31,		December 31,
		2014		2013
		(unaudited) Werbung Mehr Nachrichten zur INDEP. BK CORP.(MI.) NEW Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 13:22 - ARIVA.DE Redaktion Airbus-Aktie verliert 2,38 Prozent (158,30 €) 13:17 - ARIVA.DE Redaktion Infineon-Aktie mit Kursgewinnen (32,10 €) 02:00 - PR Newswire International Business Machines Corp - 1st Quarter Results SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59