IONIA, Mich., Oct. 30, 2012 /PRNewswire/ -- Independent
Bank Corporation (Nasdaq: IBCP) reported third quarter 2012 net
income applicable to common stock of $5.4
million, or $0.16 per diluted
share, versus a net loss applicable to common stock of $5.2 million, or $0.61 per share, in the prior-year period.
For the nine months ended Sept. 30,
2012, the Company reported net income applicable to common
stock of $11.0 million, or
$0.36 per diluted share, compared to
a net loss applicable to common stock of $14.6 million, or $1.78 per share, in the prior-year period.
For periods where the Company is reporting a profit, the diluted
earnings per share calculation includes, among other things, the
assumed conversion of mandatorily convertible preferred stock using
a five-day average price per common share based on the applicable
period end.
The Company's third consecutive profitable quarter was
highlighted by:
- Additional improvement in asset quality, with non-performing
assets down 7% during the quarter and 26% since the end of
2011.
- A $5.9 million, or 96%,
year-over-year decline in the quarterly provision for loan
losses.
- Strong mortgage-banking results with a $2.6 million, or 127%, year-over-year increase in
quarterly net gains on mortgage loans.
- Year-over-year growth in core deposits (excluding the pending
impact of a branch sale).
- Regulatory capital ratios that increased and remain above
minimum requirements for "well-capitalized" institutions.
The previously announced sale of 21 branches to Chemical Bank
(the "Branch Sale") did not close in the third quarter of
2012. The Branch Sale is now expected to close prior to year
end 2012.
Michael M. Magee, the Chief
Executive Officer of Independent Bank Corporation, commented: "We
are very pleased to report our third consecutive quarter of
profitability in 2012 as well as further progress in improving
asset quality, as evidenced by a reduction in our non-performing
loans, loan net charge-offs and the provision for loan losses as
compared to the year ago quarter. We remain focused on
building consistent profitability. Our capital initiatives
remain centered on strategies to convert the preferred stock owned
by the U.S. Treasury into common stock and exiting TARP, while
still preserving the potential future use of our net deferred tax
asset, which totaled approximately $69.2
million at Sept. 30, 2012 and
on which we have established a full valuation allowance. The
potential future recovery of this valuation allowance represents a
source of capital that would be of substantial value to our
shareholders. Also, the Branch Sale is expected to have a
significant positive impact on our regulatory capital ratios."
Operating Results
The Company's net interest income totaled $21.5 million during the third quarter of 2012, a
decrease of $2.3 million, or 9.8%
from the year-ago period, and a decrease of $0.4 million, or 1.7% from the second quarter of
2012. The Company's net interest income as a percent of
average interest-earning assets (the "net interest margin") was
3.92% during the third quarter of 2012, compared to 4.59% in the
year-ago period, and 4.02% in the second quarter of 2012. The net
interest margin decreased due primarily to a change in asset mix,
as higher yielding loans declined and lower yielding short-term
investments increased. The increase in lower yielding
interest-bearing cash balances and other short-term investments, in
part, reflects the Company's efforts to increase liquidity in order
to provide the future funding needed for the pending Branch Sale.
The year-over-year decrease in net interest income was partially
offset by an increase in average interest-earning assets, which
rose to $2.18 billion in the third
quarter of 2012 compared to $2.06
billion in the year-ago quarter and $2.18 billion in the second quarter of
2012. The increase in average interest-earning assets in 2012
primarily reflects a rise in securities available for sale and
overnight interest-bearing balances at the Federal Reserve Bank
that were partially offset by a decline in loans.
For the first nine months of 2012, net interest income totaled
$65.4 million, a decrease of
$6.2 million, or 8.7% from
2011. The Company's net interest margin for the first nine
months of 2012 decreased to 4.03% compared to 4.43% in 2011.
The reasons for the decline in net interest income for the first
nine months of 2012 are generally consistent with those described
above for the comparative quarterly periods.
Service charges on deposits totaled $4.7
million and $13.5 million,
respectively, for the third quarter and first nine months of 2012,
relatively unchanged when compared to $4.6
million and $13.7 million,
respectively, in the year ago periods. Interchange income was
also relatively unchanged and totaled $2.3
million and $7.1 million for
the third quarter and first nine months of 2012, respectively,
compared to $2.4 million and
$6.8 million, respectively, in the
year ago periods.
Net gains on mortgage loans were $4.6
million in the third quarter of 2012, compared to
$2.0 million in the year-ago
quarter. For the first nine months of 2012, net gains on
mortgage loans totaled $12.0 million
compared to $5.8 million in 2011. The
increase in net gains relates primarily to a rise in mortgage loan
sales volume associated with increased origination volume driven by
record low interest rates.
Mortgage loan servicing generated a loss of $0.4 million and $2.7
million in the third quarters of 2012 and 2011,
respectively. This decreased loss was due to the change in the
impairment reserve (a $0.4 million
impairment charge in the third quarter of 2012 compared to a
$3.1 million impairment charge in the
year-ago quarter) that was partially offset by a $0.4 million increase in the amortization of
capitalized mortgage loan servicing rights. The impairment
charge in the third quarter of 2012 primarily reflects lower
mortgage loan interest rates resulting in higher estimated future
prepayment rates. For the first nine months of 2012 and 2011,
mortgage loan servicing generated a loss of $0.7 million and $1.9
million, respectively. The first nine months
comparative variance is primarily due to the change in the
impairment reserve (a $0.6 million
impairment charge in 2012 compared to a $3.2
million impairment charge in 2011) that was partially offset
by a $1.3 million increase in the
amortization of capitalized mortgage loan servicing rights.
Capitalized mortgage loan servicing rights totaled $10.2 million at Sept. 30,
2012 compared to $11.2 million
at Dec. 31, 2011. As of
Sept. 30, 2012, the Company serviced
approximately $1.76 billion in
mortgage loans for others on which servicing rights have been
capitalized.
Non-interest expenses totaled $29.3
million in the third quarter of 2012, compared to
$31.5 million in the year-ago
period. The quarterly year-over-year decline in non-interest
expenses was primarily due to decreases in net losses on other real
estate and repossessed assets (down $1.6
million), credit card and bank service fees (down
$0.4 million), and vehicle service
contract counterparty contingencies (down $1.1 million). These declines were
partially offset by an increase in compensation and benefits (up
$1.0 million) as well as a
$0.9 million write down of property
and equipment related to branches that will be closed in the fourth
quarter of 2012. For the first nine months of 2012,
non-interest expenses totaled $86.8
million versus $97.2 million
in 2011. This decline in non-interest expenses was primarily
due to decreases in loan and collection costs (down $2.0 million), occupancy costs (down $0.7 million), net losses on other real estate
and repossessed assets (down $2.2
million), vehicle service contract counterparty
contingencies expense (down $3.9
million), credit card and bank service fees (down
$1.2 million), and other non-interest
expenses (down $2.0 million).
These year-to-date declines were partially offset by an increase in
compensation and benefits (up $1.6
million) as well as the aforementioned $0.9 million write down of property and
equipment. Credit related costs (loan and collection, net
losses on other real estate and repossessed assets, and vehicle
service contract counterparty contingencies) have declined
significantly in 2012, which primarily reflects the overall
decrease in the volume of problem credits (non-performing loans and
"watch" credits), stabilization in collateral values, and lower
expected incurred losses and reduced levels of payment plan
receivables. The increase in compensation and benefits
primarily reflects expenses associated with reinstating certain
employee incentive programs (including the Company's employee stock
ownership plan) that had been suspended or reduced in prior
years. This increase was partially offset by a 5.8%
decline in full time equivalent employees in the first nine months
of 2012 as compared to the prior year period.
Asset Quality
Commenting on asset quality, CEO Magee added: "Our
provision for loan losses decreased by $5.9
million, or 95.9%, in the third quarter of 2012 compared to
the year-ago amount, primarily reflecting a reduction in
non-performing loans, a lower level of watch credits, reduced loan
net charge-offs, and an overall decline in total loan
balances. Since the start of this year, non-performing loans
and commercial loan watch credits have declined by approximately
35% and 21%, respectively. In addition, thirty- to
eighty-nine day delinquency rates at Sept.
30, 2012 were 0.92% for commercial loans and 1.16% for
mortgage and consumer loans. These are near to the lowest levels
that we have seen in several years. Nonetheless, we continue
to focus on further improving asset quality and reducing credit
related costs."
A breakdown of non-performing loans(1) by loan type
is as follows:
Loan
Type
|
9/30/2012
|
12/31/2011
|
9/30/2011
|
|
(Dollars
in Millions)
|
Commercial
|
$
19.5
|
$
29.3
|
$
22.3
|
Consumer/installment
|
2.5
|
3.5
|
3.1
|
Mortgage
|
16.6
|
26.2
|
24.2
|
Payment
plan receivables(2)
|
0.2
|
0.9
|
1.3
|
Total
|
$
38.8
|
$
59.9
|
$
50.9
|
Ratio of
non-performing loans to total portfolio loans
|
2.71%
|
3.80%
|
3.13%
|
Ratio of
non-performing assets to total assets
|
2.88%
|
4.07%
|
3.66%
|
Ratio of
the allowance for loan losses to non-performing loans
|
123.62%
|
98.33%
|
115.56%
|
(1) Excludes loans that are classified
as "troubled debt restructured" that are still performing.
(2) Represents payment plans for which no
payments have been received for 90 days or more and for which Mepco
has not yet completed the process to charge the applicable
counterparty for the balance due. These balances exclude
receivables due from Mepco counterparties related to the
cancellation of payment plan receivables.
Non-performing loans have declined by $21.0 million, or 35.1%, since year-end
2011. All categories of non-performing loans declined, but
the principal decreases since year-end 2011 were in commercial
loans and residential mortgage loans. The decline in non-performing
loans primarily reflects loan net charge-offs, pay-offs, negotiated
transactions and the migration of loans into ORE during 2012.
Non-performing commercial loans have declined by $58.5 million, or 75.0%, since they peaked in
2008. Non-performing retail (residential mortgage and
consumer/installment) loans have declined by $40.1 million, or 67.7%, since they peaked in
2009. Other real estate and repossessed assets totaled
$30.3 million at Sept. 30, 2012, compared to $34.0 million at Dec.
31, 2011.
The provision for loan losses was $0.3
million and $6.2 million in
the third quarters of 2012 and 2011, respectively. For the
first nine months of 2012, the provision for loan losses totaled
$6.4 million versus $21.0 million in 2011. The level of the
provision for loan losses in each period reflects the Company's
overall assessment of the allowance for loan losses, taking into
consideration factors such as loan mix, levels of non-performing
and classified loans, and loan net charge-offs. Loan net
charge-offs were $3.7 million (1.00%
annualized of average loans) in the third quarter of 2012, compared
to $7.9 million (1.89% annualized of
average loans) in the third quarter of 2011. Loan net
charge-offs were $16.7 million (1.46%
of average loans) and $30.1 million
(2.35% of average loans) for the first nine months of 2012 and
2011, respectively. The year to date declines in 2012 loan
net charge-offs by category were: commercial loans $9.2 million; mortgage loans $3.2 million; and consumer/installment loans
$0.9 million. At Sept. 30, 2012, the allowance for loan losses
totaled $48.0 million, or 3.35% of
portfolio loans, compared to $58.9
million, or 3.73% of portfolio loans, at Dec. 31, 2011.
Balance Sheet, Liquidity and Capital
Total assets were $2.40 billion at
Sept. 30, 2012, an increase of
$93.4 million, or 4.0%, from
Dec. 31, 2011. Loans, excluding
loans held for sale, were $1.43
billion at Sept. 30, 2012,
compared to $1.58 billion at
Dec. 31, 2011. Deposits
(including $405.9 million related to
the aforementioned pending Branch Sale) totaled $2.17 billion at Sept. 30,
2012, an increase of $84.4
million from Dec. 31,
2011. The increase in deposits is primarily due to growth in
checking and savings.
Cash and cash equivalents totaled $460.5
million at Sept. 30, 2012,
versus $341.1 million at Dec. 31, 2011. Securities available for sale
totaled $230.2 million at
Sept. 30, 2012, versus $157.4 million at Dec.
31, 2011. This $72.7
million increase is primarily due to the purchase of
residential mortgage-backed and U.S. government agency securities
during the first nine months of 2012.
Total shareholders' equity was $121.5
million at Sept. 30, 2012, or
5.1% of total assets. Tangible common equity totaled
$31.6 million at Sept. 30, 2012, or $3.59 per share. The Company's wholly owned
subsidiary, Independent Bank, remains "well capitalized" for
regulatory purposes with the following ratios:
Regulatory
Capital Ratio
|
9/30/2012
|
12/31/2011
|
Well
Capitalized Minimum
|
Tier 1
capital to average total assets
|
7.29%
|
6.77%
|
5.00%
|
Tier 1
capital to risk-weighted assets
|
11.94%
|
10.13%
|
6.00%
|
Total
capital to risk-weighted assets
|
13.22%
|
11.41%
|
10.00%
|
About Independent Bank Corporation
Independent Bank Corporation (Nasdaq Symbol: IBCP) is a
Michigan-based bank holding
company with total assets of approximately $2.4 billion. Founded as First National Bank of
Ionia in 1864, Independent Bank
Corporation now operates convenient locations across Michigan's Lower Peninsula through one
state-chartered bank subsidiary. This subsidiary (Independent Bank)
provides a full range of financial services, including commercial
banking, mortgage lending, investments and title services.
Independent Bank has received the "Highest Customer Satisfaction
with Retail Banking in the North Central Region" from the J.D.
Power and Associates 2012 Retail Banking Satisfaction
StudySM. The J.D. Power and Associates study
results are based on experiences and perceptions of consumers
surveyed January-February, 2012. Independent Bank Corporation is
committed to providing exceptional personal service and value to
its customers, stockholders and the communities it
serves.
For more information, please visit our website at:
www.IndependentBank.com.
Any statements in this news release that are not historical
facts are forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. Words such as "expect,"
"believe," "intend," "estimate," "project," "may" and similar
expressions are intended to identify forward-looking statements.
These forward-looking statements are predicated on management's
beliefs and assumptions based on information known to Independent
Bank Corporation's management as of the date of this news release
and do not purport to speak as of any other date. Forward-looking
statements may include descriptions of plans and objectives of
Independent Bank Corporation's management for future
operations, products or services, and forecasts of the Company's
revenue, earnings or other measures of economic performance,
including statements of profitability, estimates of credit quality
trends, and statements about the potential value of our deferred
tax assets. Such statements reflect the view of Independent Bank
Corporation's management as of this date with respect to future
events and are not guarantees of future performance. These
forward-looking statements involve assumptions and are subject to
substantial risks and uncertainties, such as changes in Independent
Bank Corporation's plans, objectives, expectations and intentions.
Should one or more of these risks materialize or should underlying
beliefs or assumptions prove incorrect, the Company's actual
results could differ materially from those discussed. Factors that
could cause or contribute to such differences include the ability
of Independent Bank Corporation to meet the objectives of its
capital restoration plan, the ability of Independent Bank to remain
well-capitalized under federal regulatory standards, the pace of
economic recovery within Michigan
and beyond, our ability to collect receivables from Mepco Finance
Corporation's counterparties related to cancellations of payment
plans, changes in interest rates, changes in the accounting
treatment of any particular item, the results of regulatory
examinations, changes in industries where the Company has a
concentration of loans, changes in the level of fee income, changes
in general economic conditions and related credit and market
conditions, and the impact of regulatory responses to any of the
foregoing. Forward-looking statements speak only as of the date
they are made. Independent Bank Corporation does not undertake to
update forward-looking statements to reflect facts, circumstances,
assumptions or events that occur after the date the forward-looking
statements are made. For any forward-looking statements made in
this news release or in any documents, Independent Bank Corporation
claims the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995.
INDEPENDENT BANK CORPORATION AND
SUBSIDIARIES
Consolidated Statements of Financial Condition
|
|
September
30,
|
December
31,
|
|
2012
|
2011
|
|
(unaudited)
|
Assets
|
(In
thousands, except share amounts)
|
Cash and
due from banks
|
$
|
56,911
|
$
|
62,777
|
Interest
bearing deposits
|
|
403,633
|
|
278,331
|
Cash
and Cash Equivalents
|
|
460,544
|
|
341,108
|
Trading
securities
|
|
38
|
|
77
|
Securities
available for sale
|
|
230,186
|
|
157,444
|
Federal
Home Loan Bank and Federal Reserve Bank stock, at cost
|
|
20,494
|
|
20,828
|
Loans held
for sale, carried at fair value
|
|
41,969
|
|
44,801
|
Loans held
for sale, carried at lower of cost or fair value
|
|
52,280
|
|
-
|
Loans
|
|
|
|
|
Commercial
|
|
603,538
|
|
651,155
|
Mortgage
|
|
537,107
|
|
590,876
|
Installment
|
|
197,736
|
|
219,559
|
Payment plan receivables
|
|
93,608
|
|
115,018
|
Total
Loans
|
|
1,431,989
|
|
1,576,608
|
Allowance for loan losses
|
|
(48,021)
|
|
(58,884)
|
Net
Loans
|
|
1,383,968
|
|
1,517,724
|
Other real
estate and repossessed assets
|
|
30,347
|
|
34,042
|
Property
and equipment, net
|
|
47,062
|
|
62,548
|
Bank-owned
life insurance
|
|
50,493
|
|
49,271
|
Other
intangibles
|
|
6,793
|
|
7,609
|
Capitalized mortgage loan servicing rights
|
|
10,205
|
|
11,229
|
Prepaid
FDIC deposit insurance assessment
|
|
10,229
|
|
12,609
|
Vehicle
service contract counterparty receivables, net
|
|
18,773
|
|
29,298
|
Property
and equipment held for sale
|
|
10,148
|
|
-
|
Accrued
income and other assets
|
|
27,303
|
|
18,818
|
Total
Assets
|
$
|
2,400,832
|
$
|
2,307,406
|
Liabilities and Shareholders' Equity
|
|
|
|
|
Deposits
|
|
|
|
|
Non-interest bearing
|
$
|
485,109
|
$
|
497,718
|
Savings and interest-bearing checking
|
|
853,603
|
|
1,019,603
|
Retail time
|
|
377,085
|
|
526,525
|
Brokered time
|
|
48,859
|
|
42,279
|
Total
Deposits
|
|
1,764,656
|
|
2,086,125
|
Deposits
held for sale relating to branch sale
|
|
405,850
|
|
-
|
Other
borrowings
|
|
17,720
|
|
33,387
|
Subordinated debentures
|
|
50,175
|
|
50,175
|
Vehicle
service contract counterparty payables
|
|
8,414
|
|
6,633
|
Accrued
expenses and other liabilities
|
|
32,489
|
|
28,459
|
Total
Liabilities
|
|
2,279,304
|
|
2,204,779
|
Shareholders' Equity
|
|
|
|
|
Preferred stock, no par value, 200,000 shares authorized; 74,426
shares
|
|
|
|
|
issued and outstanding at
September 30, 2012 and December 31, 2011;
|
|
|
|
|
liquidation preference: $84,099 at
September 30, 2012 and
|
|
|
|
|
$81,023 at December 31,
2011
|
|
83,097
|
|
79,857
|
Common stock, no par value, 500,000,000 shares
authorized;
|
|
|
|
|
issued and
outstanding: 8,804,415 shares at September 30,
2012
|
|
|
|
|
and 8,491,526 shares at
December 31, 2011
|
|
250,080
|
|
248,950
|
Accumulated deficit
|
|
(203,217)
|
|
(214,259)
|
Accumulated other comprehensive loss
|
|
(8,432)
|
|
(11,921)
|
Total
Shareholders' Equity
|
|
121,528
|
|
102,627
|
Total
Liabilities and Shareholders' Equity
|
$
|
2,400,832
|
$
|
2,307,406
|
|
|
|
|
|
INDEPENDENT BANK CORPORATION AND
SUBSIDIARIES
Consolidated Statements of Operations
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
|
2012
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
(unaudited)
|
|
|
(In
thousands)
|
|
|
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans
|
$
|
23,385
|
$
|
23,696
|
$
|
27,222
|
$
|
71,427
|
$
|
84,808
|
|
Interest on securities
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
655
|
|
933
|
|
297
|
|
2,246
|
|
1,108
|
|
Tax-exempt
|
|
261
|
|
244
|
|
301
|
|
801
|
|
931
|
|
Other investments
|
|
432
|
|
382
|
|
367
|
|
1,210
|
|
1,185
|
|
Total
Interest Income
|
|
24,733
|
|
25,255
|
|
28,187
|
|
75,684
|
|
88,032
|
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
2,223
|
|
2,305
|
|
3,230
|
|
6,952
|
|
12,686
|
|
Other borrowings
|
|
1,059
|
|
1,120
|
|
1,183
|
|
3,351
|
|
3,738
|
|
Total
Interest Expense
|
|
3,282
|
|
3,425
|
|
4,413
|
|
10,303
|
|
16,424
|
|
Net
Interest Income
|
|
21,451
|
|
21,830
|
|
23,774
|
|
65,381
|
|
71,608
|
|
Provision
for loan losses
|
|
251
|
|
1,056
|
|
6,171
|
|
6,438
|
|
21,029
|
|
Net
Interest Income After Provision for Loan Losses
|
|
21,200
|
|
20,774
|
|
17,603
|
|
58,943
|
|
50,579
|
|
Non-interest Income
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
4,739
|
|
4,552
|
|
4,623
|
|
13,492
|
|
13,689
|
|
Interchange income
|
|
2,324
|
|
2,407
|
|
2,356
|
|
7,053
|
|
6,832
|
|
Net
gains (losses) on assets
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans
|
|
4,602
|
|
3,579
|
|
2,025
|
|
12,041
|
|
5,753
|
|
Securities
|
|
301
|
|
169
|
|
(57)
|
|
1,154
|
|
271
|
|
Other than temporary impairment
loss on securities
|
|
|
|
|
|
|
|
|
|
|
|
Total impairment
loss
|
|
(70)
|
|
(85)
|
|
(4)
|
|
(332)
|
|
(146)
|
|
Loss recognized in
other comprehensive loss
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Net
impairment loss recognized in earnings
|
|
(70)
|
|
(85)
|
|
(4)
|
|
(332)
|
|
(146)
|
|
Mortgage loan servicing
|
|
(364)
|
|
(1,088)
|
|
(2,655)
|
|
(716)
|
|
(1,885)
|
|
Title insurance fees
|
|
482
|
|
489
|
|
299
|
|
1,479
|
|
1,090
|
|
(Increase) decrease in fair value of U.S. Treasury
warrant
|
|
(32)
|
|
(25)
|
|
29
|
|
(211)
|
|
1,025
|
|
Other
|
|
2,560
|
|
3,044
|
|
2,639
|
|
8,208
|
|
7,793
|
|
Total
Non-interest Income
|
|
14,542
|
|
13,042
|
|
9,255
|
|
42,168
|
|
34,422
|
|
Non-interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and employee benefits
|
|
13,610
|
|
13,506
|
|
12,654
|
|
39,598
|
|
38,032
|
|
Loan and collection
|
|
2,832
|
|
2,407
|
|
2,658
|
|
8,129
|
|
10,105
|
|
Occupancy, net
|
|
2,482
|
|
2,490
|
|
2,651
|
|
7,688
|
|
8,415
|
|
Data processing
|
|
2,492
|
|
2,450
|
|
2,502
|
|
7,281
|
|
7,227
|
|
Furniture, fixtures and equipment
|
|
1,194
|
|
1,307
|
|
1,308
|
|
3,795
|
|
4,228
|
|
Legal and professional
|
|
952
|
|
1,268
|
|
751
|
|
3,117
|
|
2,330
|
|
FDIC deposit insurance
|
|
816
|
|
816
|
|
885
|
|
2,489
|
|
2,772
|
|
Communications
|
|
785
|
|
826
|
|
863
|
|
2,486
|
|
2,700
|
|
Net
losses on other real estate and repossessed assets
|
|
291
|
|
633
|
|
1,931
|
|
1,911
|
|
4,114
|
|
Advertising
|
|
647
|
|
639
|
|
740
|
|
1,842
|
|
1,964
|
|
Credit card and bank service fees
|
|
433
|
|
624
|
|
869
|
|
1,708
|
|
2,929
|
|
Vehicle service contract counterparty contingencies
|
|
281
|
|
326
|
|
1,345
|
|
1,078
|
|
5,002
|
|
Write-down of property and equipment held for sale
|
|
860
|
|
-
|
|
-
|
|
860
|
|
-
|
|
Provision for loss reimbursement on sold loans
|
|
193
|
|
126
|
|
251
|
|
751
|
|
1,020
|
|
Costs (recoveries) related to unfunded lending
commitments
|
|
(538)
|
|
(12)
|
|
(172)
|
|
(597)
|
|
12
|
|
Other
|
|
1,966
|
|
2,077
|
|
2,226
|
|
4,692
|
|
6,385
|
|
Total
Non-interest Expense
|
|
29,296
|
|
29,483
|
|
31,462
|
|
86,828
|
|
97,235
|
|
Income
(Loss) Before Income Tax
|
|
6,446
|
|
4,333
|
|
(4,604)
|
|
14,283
|
|
(12,234)
|
|
Income tax
benefit
|
|
-
|
|
-
|
|
(482)
|
|
-
|
|
(748)
|
|
Net Income (Loss)
|
$
|
6,446
|
$
|
4,333
|
$
|
(4,122)
|
$
|
14,283
|
$
|
(11,486)
|
|
Preferred
stock dividends and discount accretion
|
|
1,093
|
|
1,092
|
|
1,043
|
|
3,241
|
|
3,102
|
|
Net Income
(Loss) Applicable to Common Stock
|
$
|
5,353
|
$
|
3,241
|
$
|
(5,165)
|
$
|
11,042
|
$
|
(14,588)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INDEPENDENT BANK CORPORATION AND
SUBSIDIARIES
Selected Financial Data
|
|
|
Three
Months Ended
|
Nine
Months Ended
|
|
September
30,
|
June
30,
|
September
30,
|
September 30,
|
|
2012
|
2012
|
2011
|
2012
|
2011
|
|
(unaudited)
|
Per Common
Share Data
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss) Per Common Share (A)
|
|
|
|
|
|
|
|
|
|
|
|
Basic (B)
|
$
|
.61
|
$
|
.38
|
$
|
(.61)
|
$
|
1.28
|
$
|
(1.78)
|
|
Diluted (C)
|
|
.16
|
|
.11
|
|
(.61)
|
|
.36
|
|
(1.78)
|
|
Cash
dividends declared per common share
|
|
.00
|
|
.00
|
|
.00
|
|
.00
|
|
.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Ratios (D)
|
|
|
|
|
|
|
|
|
|
|
|
As a
Percent of Average Interest-Earning Assets
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
4.52
|
%
|
4.65
|
%
|
5.44
|
%
|
4.67
|
%
|
5.45
|
%
|
Interest expense
|
|
0.60
|
|
0.63
|
|
0.85
|
|
0.64
|
|
1.02
|
|
Net
interest income
|
|
3.92
|
|
4.02
|
|
4.59
|
|
4.03
|
|
4.43
|
|
Net Income
(Loss) to (A)
|
|
|
|
|
|
|
|
|
|
|
|
Average common shareholders' equity
|
|
62.71
|
%
|
47.96
|
%
|
(56.07)
|
%
|
52.38
|
%
|
(52.57)
|
%
|
Average assets
|
|
0.89
|
|
0.54
|
|
(0.89)
|
|
0.62
|
|
(0.81)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Shares
|
|
|
|
|
|
|
|
|
|
|
|
Basic (B)
|
|
8,778,899
|
|
8,607,382
|
|
8,400,950
|
|
8,637,176
|
|
8,208,793
|
|
Diluted (C)
|
|
39,674,719
|
|
40,798,694
|
|
50,999,510
|
|
39,402,803
|
|
50,783,918
|
|
(A) These amounts are calculated using net income (loss)
applicable to common stock. For any period in which net
income is recorded, dividends on convertible preferred stock are
added back in the diluted per share calculation.
(B) Average shares of common stock for basic net income (loss)
per common share include shares issued and outstanding during the
period and participating share awards.
(C) Average shares of common stock for diluted net income per
common share include shares to be issued upon conversion of
convertible preferred stock, shares to be issued upon exercise of
common stock warrants, shares to be issued upon exercise of stock
options, restricted stock units and stock units for a deferred
compensation plan for non-employee directors. For any period
in which a loss is recorded, the assumed conversion of convertible
preferred stock, assumed exercise of common stock warrants, assumed
exercise of stock options, restricted stock units and stock units
for a deferred compensation plan for non-employee directors would
have an anti-dilutive impact on the loss per share and are thus
ignored in the diluted per share calculation.
(D) Ratios have been annualized.
SOURCE Independent Bank Corporation