NASDAQ$IBCP

Independent Bank Corporation · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Independent Bank Corporation reported an increase in net income and diluted earnings per share compared to the prior year, driven by strong mortgage banking revenues and loan growth.

Independent Bank Corporation reported a strong fourth quarter and full year 2019, with net income for Q4 2019 reaching $13.9 million, or $0.61 per diluted share, compared to $9.9 million, or $0.41 per diluted share, in the prior-year period. The company's performance was driven by increased non-interest income and a decrease in the provision for loan losses, offsetting increases in non-interest expense and income tax expense. The company recently announced an eleven percent increase in their quarterly common stock cash dividend to 20 cents per share, to be paid on Feb. 14, 2020.

  • Net income increased by 39.7% and diluted earnings per share increased by 48.8% compared to the previous year.
  • Net gains on mortgage loans increased by $4.4 million, or 215.3%, compared to the year-ago quarter.
  • Annualized return on average assets was 1.56% and return on average equity was 15.92%.
  • The company announced an 11% increase in the quarterly common stock cash dividend to 20 cents per share.

Headline financials

Total Revenue

$30.7M

Previous: $30.7M+0.1%
EPS (adj)

$0.60

Previous: $0.41+46.3%
Net Interest Margin

3.7%

No prior period
NPA to Total Assets

0.3%

Previous: 0.3%+10.3%
Capital Expenditures

$2.35M

Previous: $1.05M+123.7%
Free Cash Flow

$25.6M

Previous: $23.2M+10.0%
Net Income

$13.9M

Previous: $9.94M+39.7%
Operating Income

$17.2M

No prior period
Gross Profit

$6.61M

Previous: $7.13M-7.3%
Cash & Equivalents

$65.3M

Previous: $70.2M-7.0%
Total Assets

$3.56B

Previous: $3.35B+6.3%
Stock-Based Comp

$506K

Previous: $438K+15.5%

Revenue & EPS history

Independent Bank · Revenue · Quarterly

$30.7M

Q4 2019+0.1%vs Q4 2018
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Independent Bank · $1.35M total across 1 segment · Q4 2019

  • Mortgage Servicing Net
    $1.35M

Forward guidance

Independent Bank Corporation announced an 11% increase in their quarterly common stock cash dividend to 20 cents per share, reflecting their success and optimism about the future. As they look ahead to 2020 and beyond, they will continue to focus on their key strategic initiatives, including growth, process improvement, and effective risk management.

Tailwinds

  • Focus on growth initiatives to expand market presence and customer base.
  • Commitment to process improvement to enhance operational efficiency and productivity.
  • Emphasis on effective risk management to safeguard assets and maintain financial stability.
  • Optimism about future prospects, driven by recent successes and strategic focus.
  • Planned investments in technology and infrastructure to support long-term growth and innovation.

Headwinds

  • Potential for changes in general economic, political, or industry conditions to impact performance.
  • Risk of changes in monetary and fiscal policies, including interest rate policies, affecting profitability.
  • Exposure to volatility and disruptions in capital and credit markets.
  • Interdependence of financial service companies posing systemic risks.
  • Possibility of changes in regulation or oversight affecting business operations and compliance costs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

+1.3%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+2.4%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+13.3%

Q4 2010

Best reaction

-7.8%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.9%+1.6%+0.7%
Q4 2025+1.0%-0.3%+5.5%
Q3 2025-0.7%-5.2%+2.6%
Q2 2025-1.4%-2.2%-1.1%
Q1 2025-1.2%-0.7%+0.5%
Q4 2024+1.3%+4.2%-3.8%
Q3 2024-2.0%-0.1%+15.9%
Q2 2024+3.2%+4.7%+3.2%
Q1 2024-0.5%-1.2%+1.1%
Q4 2023-3.0%+1.3%-9.2%
Q3 2023+3.5%+5.6%+20.0%
Q2 2023+4.8%+4.4%-4.7%
Q1 2023+4.3%-6.7%+0.1%
Q4 2022-5.8%-3.4%-3.1%
Q3 2022+5.8%+11.1%+17.1%
Q2 2022+0.0%+2.5%+4.8%
Q1 2022-4.0%-7.6%-10.0%
Q4 2021-4.7%-4.4%-6.0%
Q3 2021+0.3%+2.5%+8.0%
Q2 2021+1.0%+2.4%+1.8%
Q1 2021+1.3%+2.3%+1.0%
Q4 2020-1.4%+5.4%+11.0%
Q3 2020-1.4%+0.6%+21.8%
Q2 2020+8.4%+6.9%+13.7%
Q1 2020-7.8%-15.2%-15.0%
Q4 2019-0.7%-2.0%-1.8%
Q3 2019+2.8%+2.8%+0.7%
Q2 2019-1.9%-1.8%-12.6%
Q1 2019-2.9%-2.8%-1.3%
Q4 2018-1.0%-0.5%+3.7%
Q3 2018-1.8%+3.3%+3.7%
Q2 2018-0.8%-2.8%-0.2%
Q1 2018+5.4%+2.1%+5.2%
Q4 2017+1.5%+2.9%+0.2%
Q3 2017+4.0%+1.1%-1.6%
Q2 2017-2.8%+0.2%-2.1%
Q1 2017+8.5%+4.7%-2.1%
Q4 2016+0.5%+0.0%+4.7%
Q3 2016+1.3%+1.0%+12.7%
Q2 2016+2.1%+4.0%+9.0%
Q1 2016+0.7%
Q4 2015+2.2%
Q3 2015-3.0%
Q2 2015+1.2%
Q1 2015+1.2%
Q4 2014+1.5%
Q3 2014-2.5%
Q2 2014+6.8%
Q1 2014-5.2%
Q4 2013-0.4%
Q3 2013+0.3%
Q2 2013-3.4%
Q1 2013-3.0%
Q4 2012+0.3%
Q4 2011+0.3%
Q3 2012-0.9%
Q2 2012+10.2%
Q1 2011-4.1%
Q1 2012+3.6%
Q4 2009+4.2%
Q3 2010+10.7%
Q3 2011+10.7%
Q2 2011+13.3%
Q2 2010+13.3%
Q4 2010+13.3%

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