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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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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