INDEPENDENT BANK CORP MI
For the period ended Dec 31, 2023. Filed Mar 8, 2024.
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FY2023 · Filed Mar 8, 2024
IBCP$36.64-0.9%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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EX-13 · Item 8. Consolidated Financial Statements
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
| December 31, | ||
|---|---|---|
| 2023 | 2022 | |
| (In thousands, except shareamounts) | ||
| Assets | ||
| Cash and due from banks | $68,208 | $70,180 |
| Interest bearing deposits | 101,573 | 4,191 |
| Cash and Cash Equivalents | 169,781 | 74,371 |
| Securities available for sale | 679,350 | 779,347 |
| Securities held to maturity (fair value of $318,606 at December 31, 2023 and $335,418 at December 31, 2022) | 353,988 | 374,818 |
| Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 16,821 | 17,653 |
| Loans held for sale, carried at fair value | 12,063 | 26,518 |
| Loans held for sale, carried at lower of cost or fair value | — | 20,367 |
| Loans | ||
| Commercial | 1,679,731 | 1,466,853 |
| Mortgage | 1,485,872 | 1,368,409 |
| Installment | 625,298 | 630,090 |
| Total Loans | 3,790,901 | 3,465,352 |
| Allowance for credit losses | (54,658) | (52,435) |
| Net Loans | 3,736,243 | 3,412,917 |
| Other real estate and repossessed assets, net | 569 | 455 |
| Property and equipment, net | 35,523 | 35,893 |
| Bank-owned life insurance | 54,341 | 55,204 |
| Capitalized mortgage loan servicing rights, carried at fair value | 42,243 | 42,489 |
| Other intangibles | 2,004 | 2,551 |
| Goodwill | 28,300 | 28,300 |
| Accrued income and other assets | 132,500 | 128,904 |
| Total Assets | $5,263,726 | $4,999,787 |
| Liabilities and Shareholders’ Equity | ||
| Deposits | ||
| Non-interest bearing | $1,076,093 | $1,269,759 |
| Savings and interest-bearing checking | 1,905,701 | 1,973,308 |
| Reciprocal | 832,020 | 602,575 |
| Time | 524,325 | 321,492 |
| Brokered time | 284,740 | 211,935 |
| Total Deposits | 4,622,879 | 4,379,069 |
| Other borrowings | 50,026 | 86,006 |
| Subordinated debt | 39,510 | 39,433 |
| Subordinated debentures | 39,728 | 39,660 |
| Accrued expenses and other liabilities | 107,134 | 108,023 |
| Total Liabilities | 4,859,277 | 4,652,191 |
| Commitments and contingent liabilities | ||
| Shareholders’ Equity | ||
| Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding | — | — |
| Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 20,835,633 shares at December 31, 2023 and 21,063,971 shares at December 31, 2022 | 317,483 | 320,991 |
| Retained earnings | 159,108 | 119,368 |
| Accumulated other comprehensive loss | (72,142) | (92,763) |
| Total Shareholders’ Equity | 404,449 | 347,596 |
| Total Liabilities and Shareholders’ Equity | $5,263,726 | $4,999,787 |
CONSOLIDATED STATEMENTS OF OPERATIONS
| Year Ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| (In thousands, except per share amounts) | |||
| INTEREST INCOME | |||
| Interest and fees on loans | $197,725 | $139,057 | $116,644 |
| Interest on securities | |||
| Taxable | 23,314 | 20,676 | 14,488 |
| Tax-exempt | 13,209 | 8,391 | 6,102 |
| Other investments | 5,429 | 884 | 846 |
| Total Interest Income | 239,677 | 169,008 | 138,080 |
| INTEREST EXPENSE | |||
| Deposits | 75,075 | 14,151 | 4,465 |
| Other borrowings and subordinated debt and debentures | 8,273 | 5,296 | 3,850 |
| Total Interest Expense | 83,348 | 19,447 | 8,315 |
| Net Interest Income | 156,329 | 149,561 | 129,765 |
| Provision for credit losses | 6,210 | 5,341 | (1,928) |
| Net Interest Income After Provision for Credit Losses | 150,119 | 144,220 | 131,693 |
| NON-INTEREST INCOME | |||
| Interchange income | 13,996 | 13,955 | 14,045 |
| Service charges on deposit accounts | 12,361 | 12,288 | 10,170 |
| Net gains (losses) on assets | |||
| Mortgage loans | 7,436 | 6,431 | 35,880 |
| Securities available for sale | (222) | (275) | 1,411 |
| Mortgage loan servicing, net | 4,626 | 18,773 | 5,745 |
| Other | 12,479 | 10,737 | 9,392 |
| Total Non-interest Income | 50,676 | 61,909 | 76,643 |
| NON-INTEREST EXPENSE | |||
| Compensation and employee benefits | 78,965 | 81,007 | 79,969 |
| Data processing | 11,862 | 10,183 | 10,823 |
| Occupancy, net | 7,908 | 8,907 | 8,794 |
| Interchange expense | 4,332 | 4,242 | 4,434 |
| Furniture, fixtures and equipment | 3,756 | 4,007 | 4,172 |
| FDIC deposit insurance | 3,005 | 2,142 | 1,396 |
| Communications | 2,406 | 2,871 | 3,080 |
| Legal and professional | 2,208 | 2,133 | 2,068 |
| Loan and collection | 2,174 | 2,657 | 3,172 |
| Advertising | 2,165 | 2,074 | 1,918 |
| Costs related to unfunded lending commitments | 424 | 599 | 1,207 |
| Conversion related expense | — | 50 | 1,827 |
| Other | 7,914 | 7,469 | 8,163 |
| Total Non-interest Expense | 127,119 | 128,341 | 131,023 |
| Income Before Income Tax | 73,676 | 77,788 | 77,313 |
| Income tax expense | 14,609 | 14,437 | 14,418 |
| Net Income | $59,067 | $63,351 | $62,895 |
| Net income per common share | |||
| Basic | $2.82 | $3.00 | $2.91 |
| Diluted | $2.79 | $2.97 | $2.88 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
| Year Ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| (In thousands) | |||
| Net income | $59,067 | $63,351 | $62,895 |
| Other comprehensive income (loss) | |||
| Securities available for sale | |||
| Unrealized gain (loss) arising during period | 22,094 | (95,263) | (10,644) |
| Net unrealized loss at time of transfer on securities available for sale transferred to held to maturity | — | (26,479) | — |
| Accretion of net unrealized losses on securities transferred to held to maturity | 3,563 | 3,413 | — |
| Reclassification adjustments for (gains) losses included in earnings | 222 | 275 | (1,411) |
| Unrealized gains (losses) recognized in other comprehensive income (loss) on securities available for sale | 25,879 | (118,054) | (12,055) |
| Income tax expense (benefit) | 5,435 | (24,790) | (2,532) |
| Unrealized gains (losses) recognized in other comprehensive income (loss) on securities available for sale, net of tax | 20,444 | (93,264) | (9,523) |
| Derivative instruments | |||
| Unrealized losses arising during period | (213) | — | — |
| Reclassification adjustment for expense recognized in earnings | 437 | — | — |
| Unrealized gains recognized in other comprehensive income (loss) on derivative instruments | 224 | — | — |
| Income tax expense | 47 | — | — |
| Unrealized gains recognized in other comprehensive income (loss) on derivative instruments, net of tax | 177 | — | — |
| Other comprehensive income (loss) | 20,621 | (93,264) | (9,523) |
| Comprehensive income (loss) | $79,688 | $(29,913) | $53,372 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
| CommonStock | RetainedEarnings | AccumulatedOtherComprehensiveIncome (Loss) | TotalShareholders’Equity | |
|---|---|---|---|---|
| (Dollars in thousands, except per share amounts) | ||||
| Balances at December 31, 2020 | $339,353 | $40,145 | $10,024 | $389,522 |
| Adoption of ASU 2016-13 | — | (10,303) | — | (10,303) |
| Balances at December 31, 2020, as adjusted | 339,353 | 29,842 | 10,024 | 379,219 |
| Net income for 2021 | — | 62,895 | — | 62,895 |
| Cash dividends declared, $0.84 per share | — | (18,155) | — | (18,155) |
| Repurchase of 814,910 shares of common stock | (17,269) | — | — | (17,269) |
| Issuance of 40,350 shares of common stock | 61 | — | — | 61 |
| Share based compensation (issuance of 128,018 shares of common stock) | 1,947 | — | — | 1,947 |
| Share based compensation withholding obligation (withholding of 36,222 shares of common stock) | (691) | — | — | (691) |
| Other comprehensive loss | — | — | (9,523) | (9,523) |
| Balances at December 31, 2021 | 323,401 | 74,582 | 501 | 398,484 |
| Net income for 2022 | — | 63,351 | — | 63,351 |
| Cash dividends declared, $0.88 per share | — | (18,565) | — | (18,565) |
| Repurchase of 181,586 shares of common stock | (4,010) | — | — | (4,010) |
| Issuance of 40,532 shares of common stock | 77 | — | — | 77 |
| Share based compensation (issuance of 62,114 shares of common stock) | 2,143 | — | — | 2,143 |
| Share based compensation withholding obligation (withholding of 28,125 shares of common stock) | (620) | — | — | (620) |
| Other comprehensive loss | — | — | (93,264) | (93,264) |
| Balances at December 31, 2022 | 320,991 | 119,368 | (92,763) | 347,596 |
| Net income for 2023 | — | 59,067 | — | 59,067 |
| Cash dividends declared, $0.92 per share | — | (19,327) | — | (19,327) |
| Repurchase of 298,601 shares of common stock | (5,157) | — | — | (5,157) |
| Issuance of 28,583 shares of common stock | 70 | — | — | 70 |
| Share based compensation (issuance of 77,211 shares of common stock) | 2,229 | — | — | 2,229 |
| Share based compensation withholding obligation (withholding of 35,531 shares of common stock) | (650) | — | — | (650) |
| Other comprehensive loss | — | — | 20,621 | 20,621 |
| Balances at December 31, 2023 | $317,483 | $159,108 | $(72,142) | $404,449 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Year Ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| (In thousands) | |||
| Net Income | $59,067 | $63,351 | $62,895 |
| ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM OPERATING ACTIVITIES | |||
| Proceeds from sales of loans held for sale | 356,207 | 549,079 | 1,283,741 |
| Disbursements for loans held for sale | (334,174) | (514,244) | (1,210,897) |
| Provision for credit losses | 6,210 | 5,341 | (1,928) |
| Deferred income tax (benefit) expense | 215 | (359) | 1,912 |
| Net deferred loan fees (costs) | 1,244 | (4,155) | (7,857) |
| Net depreciation, amortization of intangible assets and premiums and accretion of discounts on securities, loans and interest bearing deposits - time | 10,019 | 10,827 | 12,130 |
| Net gains on mortgage loans | (7,436) | (6,431) | (35,880) |
| Net (gains) losses on securities available for sale | 222 | 275 | (1,411) |
| Share based compensation | 2,229 | 2,143 | 1,947 |
| Increase in accrued income and other assets | (14,617) | (25,843) | (11,669) |
| Increase (decrease) in accrued expenses and other liabilities | (3,597) | 14,648 | 17,171 |
| Total Adjustments | 16,522 | 31,281 | 47,259 |
| Net Cash From Operating Activities | 75,589 | 94,632 | 110,154 |
| CASH FLOW USED IN INVESTING ACTIVITIES | |||
| Proceeds from the sale of securities available for sale | 278 | 70,523 | 85,371 |
| Proceeds from maturities, prepayments and calls of securities available for sale | 122,806 | 167,550 | 375,723 |
| Proceeds from maturities, prepayments and calls of securities held to maturity | 22,317 | 21,964 | — |
| Purchases of securities available for sale | — | (137,550) | (824,348) |
| Purchases of securities held to maturity | (1,740) | (2,658) | — |
| Proceeds from the redemption of Federal Home Loan Bank stock | 1,310 | 774 | — |
| Purchase of Federal Home Loan Bank stock | (478) | — | — |
| Net increase in portfolio loans (loans originated, net of principal payments) | (361,609) | (606,069) | (205,539) |
| Proceeds from the sale of portfolio loans | 56,561 | 63,564 | 10,032 |
| Proceeds from the sale of other real estate and repossessed assets | 650 | 723 | 1,004 |
| Proceeds from bank-owned life insurance | 1,336 | 433 | 467 |
| Proceeds from the sale of property and equipment | 1,648 | 1,833 | 63 |
| Capital expenditures | (6,024) | (5,679) | (5,837) |
| Net Cash Used in Investing Activities | (162,945) | (424,592) | (563,064) |
| CASH FLOW FROM FINANCING ACTIVITIES | |||
| Net increase in total deposits | 243,810 | 261,979 | 479,735 |
| Net increase (decrease) in other borrowings | (60,980) | 60,997 | (3) |
| Proceeds from Federal Home Loan Bank advances | 135,000 | 290,000 | 100,000 |
| Payments of Federal Home Loan Bank advances | (110,000) | (295,000) | (100,000) |
| Dividends paid | (19,327) | (18,565) | (18,155) |
| Proceeds from issuance of common stock | 70 | 77 | 61 |
| Repurchase of common stock | (5,157) | (4,010) | (17,269) |
| Share based compensation withholding obligation | (650) | (620) | (691) |
| Net Cash From Financing Activities | 182,766 | 294,858 | 443,678 |
| Net Increase (Decrease) in Cash and Cash Equivalents | 95,410 | (35,102) | (9,232) |
| Cash and Cash Equivalents at Beginning of Year | 74,371 | 109,473 | 118,705 |
| Cash and Cash Equivalents at End of Year | $169,781 | $74,371 | $109,473 |
| Cash paid during the year for | |||
| Interest | $79,101 | $17,657 | $8,419 |
| Income taxes | 16,100 | 10,040 | 14,059 |
| Transfers to other real estate and repossessed assets | 783 | 719 | 253 |
| Right of use assets obtained in exchange for lease obligations | 865 | 791 | 283 |
| Transfer of securities available for sale to held to maturity | — | 391,618 | — |
| Transfer of mortgage loans to held for sale | — | 20,367 | 34,811 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.