NASDAQ$IBCP

Independent Bank Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported net income for the fourth quarter of 2023, showing a slight decrease compared to the previous year, but highlighted by growth in net interest income and loans.

Independent Bank Corporation reported a net income of $13.7 million for Q4 2023, a decrease from $15.1 million in the prior-year period. The results were impacted by changes in the fair value of capitalized mortgage servicing rights. However, the company saw an increase in net interest income and loan growth.

  • Net interest income increased by $0.7 million (1.7%) over the third quarter of 2023.
  • Book value and tangible book value per share increased by $1.42 and $1.43, respectively.
  • Net growth in loans reached $49.4 million (5.2% annualized) from September 30, 2023.
  • A dividend of 23 cents per share on common stock was paid on November 13, 2023.

Headline financials

Total Revenue

$40.1M

Previous: $40.6M-1.2%
EPS (adj)

$0.79

Previous: $0.71+11.3%
Net Interest Margin

3.3%

Previous: 3.5%-7.4%
NPA to Total Assets

0.1%

No prior period
Allowance to NPLs

1044.7%

No prior period
Capital Expenditures

$1.51M

Previous: $1.71M-11.5%
Net Income

$13.7M

Previous: $15.1M-8.9%
Operating Income

$17.9M

Previous: $18.6M-3.5%
Gross Profit

$8.16M

Previous: $40.6M-79.9%
Stock-Based Comp

$559K

Previous: $554K+0.9%

Revenue & EPS history

Independent Bank · Revenue · Quarterly

$40.1M

Q4 2023-1.2%vs Q4 2022
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 did not provide specific forward guidance in the earnings report. However, the CEO indicated that the company's investments in talent and technology are expected to drive future growth and market share gains.

Tailwinds

  • Investments in talent and technology are expected to drive future growth.
  • The company aims to consistently add new customers.
  • The company plans to grow its market share.
  • The company intends to generate profitable growth.
  • The company seeks to further increase the value of its franchise in 2024 and beyond.

Headwinds

  • The report mentions continued challenges in the macroeconomic environment.
  • Changes in interest rates could adversely affect the company's results.
  • Increases in unemployment rates could negatively impact performance.
  • Deterioration in the credit quality of loan portfolios could pose a risk.
  • Management's ability to manage risks effectively is crucial for future 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 2023

Historical avgQ4 2023

+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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