Independent Bank Q2 2020 Earnings Report
Key Takeaways
Independent Bank Corp. reported a net income of $24.9 million for Q2 2020, which was negatively impacted by the Coronavirus pandemic and elevated provision for credit losses. Total assets increased by $1.0 billion from the prior quarter, primarily due to participation in the Paycheck Protection Program.
Net income for the second quarter of 2020 was $24.9 million, or $0.76 per diluted share.
Elevated provision for credit losses of $20.0 million negatively impacted the results.
Total assets increased by $1.0 billion, or 8.7%, from the prior quarter, primarily due to the Paycheck Protection Program.
Deposit balances increased by $1.3 billion, or 13.8%, from the prior quarter.
Independent Bank
Independent Bank
Independent Bank Revenue by Segment
Forward Guidance
The company did not provide specific forward guidance, but they expressed confidence in their financial position and ability to navigate the current environment.
Positive Outlook
- Company helped over 5,600 borrowers obtain Paycheck Protection Program (PPP) loans, with a total principal amount of approximately $800 million.
- Investments in a sophisticated suite of digital and online capabilities enabled customers to seamlessly access banking services when branch activity was reduced.
- Strong earnings retention.
- Increase in accumulated other comprehensive income.
- Book value per share increased by $0.25, or 0.5%, to $50.75 during the second quarter as compared to the linked quarter.
Challenges Ahead
- Further weakening in the United States economy in general and the regional and local economies within the New England region and the Company’s market area, including future weakening caused by the COVID-19 pandemic.
- The length and extent of economic contraction as a result of the COVID-19 pandemic.
- Adverse changes or volatility in the local real estate market.
- Changes in market interest rates for interest earning assets and/or interest bearing liabilities and changes related to the phase-out of LIBOR.
- Adverse weather, changes in climate, natural disasters, the emergence of widespread health emergencies or pandemics, including the magnitude and duration of the COVID-19 pandemic, other public health crises or man-made events could negatively affect our local economies or disrupt our operations, which would have an adverse effect on our business or results of operations.