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Independent Bank (IBCP) in Ionia, Mich., attributed a significant plunge in quarterly profits to a slump in mortgage refinancing activity.
April 21 -
Nearly a year after calling off a stock sale that would have sharply diluted the value of its shares, Independent Bank in Ionia, Mich., said it would instead raise capital by selling off a batch of branches.
May 23 -
Independent Bank in Ionia, Mich., is back on track with payments on its trust preferred stock.
August 30 -
Independent Bank (IBCP) in Ionia, Mich., has raised $89 million as part of a plan to exit the Troubled Asset Relief Program.
August 28
Independent Bank Corp. in Ionia, Mich., reported lower second quarter earnings as income related to mortgages fell dramatically.
The $2.3 billion-asset company reported Monday net income of $6.1 million, a 90% decline from a year earlier. The second quarter 2013 results included a $57.6 million gain associated with the reversal of the company's valuation allowance against its deferred tax asset. On a pre-tax basis, the second quarter earnings of $7.9 million were up nearly 14.5% from a year earlier.
Still, the earnings fell short of analysts expectations. Earnings per share of 26 cents were 7 cents lower than the estimates of analysts polled by Bloomberg.
An 88% drop in
Net interest income decreased 5%, to $18.5 million. The company's net interest margin compressed 42 basis points, to 3.74%, as higher yielding loans declined in the second quarter and lower yielding investment securities rose compared to a year earlier.
The income decline was partially offset by the
Credit related costs, which includes loan and collection expenses, net gains or losses on other real estate and repossessed assets, the provision for loss reimbursement on sold loans, and vehicle service contract counterparty contingencies, was down year over year by 73%, a total decline of $4 million.
"We remain focused on the long-term improvement in our profitability, primarily through organic growth with a particular emphasis on commercial and consumer lending as well as core deposits," said William Kessel, chief executive of Independent Bank Corporation, in an earnings release. "During the second quarter, our commercial loans and consumer installment loans grew by $25.1 million, or 12% annualized."
