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.