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Jun 30, 2021
Independent Bank Q2 2021 Earnings Report
Independent Bank’s second quarter earnings decreased compared to the prior year, reflecting a decrease in non-interest income and an increase in non-interest expense, partially offset by an increase in net interest income and decreases in the provision for credit losses and income tax expense.
Key Takeaways
Independent Bank Corporation reported a solid financial performance for Q2 2021, with net income of $12.4 million, or $0.56 per diluted share. The company saw an increase in net interest income and strong mortgage loan origination activity. Asset quality metrics were exceptional, with a decline in non-performing assets to total assets.
Annualized return on average assets and on average equity of 1.12% and 12.78%, respectively.
Net interest income increased by 3.1% over the second quarter of 2020.
Net gains on mortgage loans were $9.1 million with a total mortgage loan origination volume of $473.7 million.
Net growth in portfolio loans was $30.3 million, or 4.4% annualized.
Independent Bank
Independent Bank
Independent Bank Revenue by Segment
Revenue by Segment
Net Gains on Mortgage Loans Revenue
CapyFin.com Forward Guidance
Independent Bank Corporation is confident in its ability to effectively respond to the challenges from the pandemic and remains optimistic about its future.
Positive Outlook
- Economic conditions have improved.
- Earning asset growth has resulted in an increase in net interest income.
- Mortgage loan origination activity continues to be strong.
- Asset quality metrics have been exceptional.
- Completed conversion to a new modern core platform.
Challenges Ahead
- Challenges from the pandemic remain.
- Decrease in non-interest income.
- Increase in non-interest expense.
- Lower interest rates combined with a higher allocation to lower yielding securities available for sale has placed continued pressure on the Company’s net interest margin.
- Commercial loan balances, interest income and yields have been impacted by Paycheck Protection Program lending activity.