Independent Bank Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013
January 30, 2014 at 08:00 am
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Independent Bank Corporation announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2013. For the quarter, the company reported total interest income of $21,525,000 against $23,714,000 a year ago. Net interest income was $19,351,000 against $20,874,000 a year ago. The decrease in net interest income is primarily due to a decline in average interest-earning assets resulting from the 2012 branch sale. Income before income tax was $6,130,000 against $11,915,000 a year ago. Net income applicable to common stock was $4,809,000 or $0.21 per diluted share against $10,809,000 or $0.36 per diluted share a year ago. Net interest income after provision for loan losses was $20,186,000 against $20,425,000 a year ago. The company's eighth consecutive profitable quarter was highlighted by: Further growth in commercial loan balances, which grew at a 6.2% annualized rate in the fourth quarter of 2013. Continued progress in improving asset quality, with non-performing assets down 2.2% since Sept. 30, 2013 and loan net charge-offs down by 69.6% compared to the fourth quarter of 2012. The October 2013 redemption of the $9.2 million of 8.25% trust preferred securities issued by IBC Capital Finance II which will result in annual interest expense savings of approximately $0.8 million.
For the year, the company reported total interest income of $87,121,000 against $99,398,000 a year ago. Net interest income was $77,959,000 against $86,255,000 a year ago. The decrease in net interest income is primarily due to a decline in average interest-earning assets resulting from the 2012 branch sale. Income before income tax was $22,658,000 against $26,198,000 a year ago. Net income applicable to common stock was $82,062,000 or $3.55 per diluted share against $21,851,000 or $0.80 per diluted share a year ago. Net interest income after provision for loan losses was $81,947,000 against $79,368,000 a year ago. Full year 2013 results include an income tax benefit of $54.9 million ($2.51 per diluted share) that is primarily the result of the company reversing substantially all of its valuation allowance on deferred tax assets in the second quarter of 2013.
Independent Bank Corporation is a bank holding company for Independent Bank (the Bank). The Bank provides a full range of financial services, including commercial banking, mortgage lending, investments, and insurance. It offers a broad range of banking services to individuals and businesses, including checking and savings accounts, commercial lending, direct and indirect consumer financing, mortgage lending, and safe deposit box services. Its principal markets are the rural and suburban communities across Lower Michigan, which are served by the bank's main office in Grand Rapids, Michigan, and a total of 56 branches, two drive-thru facilities, and five Michigan-based loan production offices. It also has one loan production facility in Ohio (Fairlawn). The bank's branches provide full-service lobby and drive-thru services, as well as automatic teller machines (ATMs). In addition, it also provides Internet and mobile banking capabilities to its customers.