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Dec 31, 2022
Independent Bank Q4 2022 Earnings Report
Net income increased driven by strong commercial loan growth and higher net interest income.
Key Takeaways
Independent Bank Corporation reported a strong fourth quarter in 2022, with net income increasing by 20.6% to $15.1 million, or $0.71 per diluted share, compared to the prior-year period. The company's performance was driven by strong commercial loan growth and higher net interest income, which offset a decline in mortgage banking revenue.
Net income and diluted earnings per share increased by 20.6% and 22.4%, respectively, over the fourth quarter of 2021.
Book value and tangible book value per share increased by $0.72 and $0.74, respectively.
Net growth in commercial loans was $58.6 million, or 16.5% annualized.
Net interest income increased by 18.4% over the fourth quarter of 2021.
Independent Bank
Independent Bank
Forward Guidance
Independent Bank Corporation is well positioned to continue effectively managing through the challenging economic environment and delivering strong results for its shareholders.
Positive Outlook
- The company has generated significant growth in its loan portfolio while maintaining sound underwriting criteria.
- The company has a low level of past dues and net recoveries credited to its allowance in 2022.
- The company is seeing positive trends including double-digit annualized growth in its commercial loan portfolio.
- The company is experiencing further expansion in its net interest margin.
- The company has a high level of liquidity and reserves.
Challenges Ahead
- The COVID-19 pandemic is adversely affecting Independent Bank Corporation.
- Continued deterioration in general business and economic conditions could adversely affect the company's revenues.
- Turbulence in domestic or global financial markets could adversely affect the company's revenues.
- Changes to statutes, regulations, or regulatory policies or practices could affect Independent Bank Corporation.
- Increased competition from both banks and non-banks could adversely affect the company's results.