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Sep 30, 2022
Independent Bank Q3 2022 Earnings Report
Reported net income of $17.3 million for the third quarter of 2022
Key Takeaways
Independent Bank Corporation reported a strong third quarter in 2022, marked by an increase in net income and diluted earnings per share compared to the previous year. The company saw substantial growth in net interest income, driven by an expansion of the net interest margin and an increase in average interest-earning assets. Additionally, asset quality remained high, with low levels of past due loans and non-performing assets.
Net income and diluted earnings per share increased by 8.4% and 11.0%, respectively, over the third quarter of 2021.
Portfolio loans experienced net growth of $151.0 million, or 18.4% annualized.
Annualized return on average assets and average equity were 1.40% and 20.48%, respectively.
Net interest income increased by 18.0% over the third quarter of 2021.
Independent Bank
Independent Bank
Forward Guidance
Independent Bank Corporation's focus for the fourth quarter of 2022 includes rotating earning assets into higher yielding loans, growing the deposit base while managing funding costs, and controlling non-interest expenses. Despite increasing concerns about a potential economic slowdown, the company continues to observe healthy economic conditions and loan demand in Michigan and anticipates continued growth trends into 2023.
Positive Outlook
- Rotation of earning asset mix out of lower yielding investments into higher yielding loans
- Growing deposit base while managing cost of funds
- Controlling non-interest expenses
- Healthy economic conditions in Michigan
- Strong loan demand in Michigan
Challenges Ahead
- Increasing concern about a potential economic slowdown
- Potential economic slowdown could impact loan demand
- Economic slowdown could impact asset quality
- Economic slowdown could impact profitability
- Economic slowdown could impact growth trends