NASDAQ$IBCP

Independent Bank Corporation · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Net income increased driven by strong commercial loan growth and higher net interest income.

Independent Bank Corporation reported a strong fourth quarter in 2022, with net income increasing by 20.6% to $15.1 million, or $0.71 per diluted share, compared to the prior-year period. The company's performance was driven by strong commercial loan growth and higher net interest income, which offset a decline in mortgage banking revenue.

  • Net income and diluted earnings per share increased by 20.6% and 22.4%, respectively, over the fourth quarter of 2021.
  • Book value and tangible book value per share increased by $0.72 and $0.74, respectively.
  • Net growth in commercial loans was $58.6 million, or 16.5% annualized.
  • Net interest income increased by 18.4% over the fourth quarter of 2021.

Headline financials

Total Revenue

$40.6M

Previous: $34.3M+18.4%
EPS (adj)

$0.71

Previous: $0.58+22.4%
Net Interest Margin

3.5%

Previous: 3.1%+12.5%
Return on Avg Assets

1.2%

No prior period
Return on Avg Equity

17.9%

No prior period
Capital Expenditures

$1.71M

Previous: $1.3M+31.6%
Free Cash Flow

-$2.45M

Previous: $52.9M-104.6%
Net Income

$15.1M

Previous: $12.5M+20.6%
Operating Income

$18.6M

Previous: $15.5M+20.1%
Gross Profit

$40.6M

Previous: $7.66M+430.0%
Cash & Equivalents

$74.4M

Previous: $109M-32.1%
Total Assets

$5B

Previous: $4.7B+6.3%
Stock-Based Comp

$554K

Previous: $501K+10.6%

Revenue & EPS history

Independent Bank · Revenue · Quarterly

$40.6M

Q4 2022+18.4%vs Q4 2021
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Independent Bank · $10.5M total across 2 segments · Q1 2022

  • Mortgage Servicing Net
    $9.64M
  • Net Gains on Mtg Loans
    $835K

Forward guidance

Independent Bank Corporation is well positioned to continue effectively managing through the challenging economic environment and delivering strong results for its shareholders.

Tailwinds

  • The company has generated significant growth in its loan portfolio while maintaining sound underwriting criteria.
  • The company has a low level of past dues and net recoveries credited to its allowance in 2022.
  • The company is seeing positive trends including double-digit annualized growth in its commercial loan portfolio.
  • The company is experiencing further expansion in its net interest margin.
  • The company has a high level of liquidity and reserves.

Headwinds

  • The COVID-19 pandemic is adversely affecting Independent Bank Corporation.
  • Continued deterioration in general business and economic conditions could adversely affect the company's revenues.
  • Turbulence in domestic or global financial markets could adversely affect the company's revenues.
  • Changes to statutes, regulations, or regulatory policies or practices could affect Independent Bank Corporation.
  • Increased competition from both banks and non-banks could adversely affect the company's results.

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 2022

Historical avgQ4 2022

+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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