Independent Bank Corp. in Ionia, Mich., reported a third-quarter loss of $5.2 million, showing some improvement from a year earlier.
Michael M. Magee, the company's chief executive, said in a press release Monday that asset quality continued to improve but net interest income declined compared to a year earlier. Independent lost $7.7 million in the third quarter of 2010.
The $2.32 billion-asset company's net interest income fell almost 12% from a year earlier, to $23.8 million. "This decline in net interest income has been driven by our maintenance of high levels of liquidity and our need to reduce total loans in order to preserve our regulatory capital ratios," Magee said.
The reduction of earnings assets offset a net interest margin that expanded by 33 basis points from a year earlier, 4.59%.
The loan-loss provision fell about 35% from a year earlier, to $6.2 million. This was due to a reduction in nonperforming loans, reduced net chargeoffs and an overall decline in total loan balances, the company said.
