Independent Bank Corporation · Q2 2020 earnings

Briefing

Reported net income and diluted earnings per share increased compared to the prior year, driven by growth in non-interest income, despite challenges from the COVID-19 pandemic.

Independent Bank Corporation reported a strong financial performance in Q2 2020, with net income of $14.8 million, or $0.67 per diluted share, compared to $10.7 million, or $0.46 per diluted share, in Q2 2019. The results were driven by increases in non-interest income, particularly net gains on mortgage loans, which offset a decline in net interest income and increases in provision for loan losses, non-interest expense, and income tax expense.

• Net income increased by 37.7% and diluted earnings per share increased by 45.7% compared to 2019.
• Net gains on mortgage loans increased by 310.1% over 2019, with a total mortgage loan origination volume of $470.6 million.
• Total portfolio loan net growth was $148.5 million and deposit net growth was $401.6 million.
• The company issued $40.0 million of subordinated debt in May 2020 and maintained strong asset quality metrics.

Headline financials

Revenue & EPS history

Independent Bank Corporation is mindful of the ongoing challenges from the COVID-19 pandemic, but is confident of its continued ability to effectively respond to these challenges and remain optimistic about its future.