• Independent Bank Corporation Reports 2024 Fourth Quarter Results

    المصدر: Nasdaq GlobeNewswire / 23 يناير 2025 07:59:02   America/New_York

    Fourth Quarter Highlights

    Highlights for the fourth quarter of 2024 include:

    • An increase in net interest income of $1.0 million (2.4%) over the third quarter of 2024;
    • A net interest margin of 3.45% (eight basis point increase from the linked quarter)
    • A return on average assets and a return on average equity of 1.39% and 16.31%, respectively;
    • Net growth in loans of $96.5 million (or 9.7% annualized) from September 30, 2024; and
    • The payment of a 24 cent per share dividend on common stock on November 15, 2024.

    GRAND RAPIDS, Mich., Jan. 23, 2025 (GLOBE NEWSWIRE) -- Independent Bank Corporation (NASDAQ: IBCP) reported fourth quarter 2024 net income of $18.5 million, or $0.87 per diluted share, versus net income of $13.7 million, or $0.65 per diluted share, in the prior-year period. For the year ended December 31, 2024, the Company reported net income of $66.8 million, or $3.16 per diluted share, compared to net income of $59.1 million, or $2.79 per diluted share, in 2023.

    William B. (“Brad”) Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: “Our fourth-quarter performance marked the culmination of another remarkable year, with our organization excelling on the fundamentals. I am especially pleased to report a notable 10% annualized growth rate in our loan portfolio for the fourth quarter of 2024, driven by an impressive 24% annualized growth rate in our commercial loan portfolio. This strong performance enabled us to achieve a $1 million increase in net interest income for the linked quarter, contributing to a healthy net interest margin of 3.45%. Our credit metrics remain outstanding, with watch credits and non-performing assets near historic lows. I am incredibly proud of our team's dedication and efforts throughout 2024, which translated into exceptional full-year results. We achieved balanced growth on both sides of the balance sheet, with total loan growth of 7% and core deposit growth of 5%. For the year, we delivered a return on average assets (ROAA) of 1.27%, a return on average equity (ROAE) of 15.66%, earnings per share (EPS) growth of 13%, and 13% growth in tangible book value per share (TBVPS). Looking ahead to 2025, we remain optimistic about sustaining these growth trends. Our confidence is bolstered by a robust commercial loan pipeline, the proven track record of our core team of professionals, and our on-going strategic initiative to attract and integrate talented bankers into our organization. Additionally, I am pleased our Board of Directors approved an 8% increase in our quarterly dividend in January, 2025 marking the twelfth consecutive annual increase for our shareholders.”

    Significant items impacting comparable 2024 and 2023 results include the following:

    • Changes in the fair value due to price of capitalized mortgage loan servicing rights (the “MSR Changes”) of $6.5 million ($0.24 per diluted share, after taxes) and $4.5 million ($0.17 per diluted share, after taxes) for the three-month and full-year ended December 31, 2024, respectively, as compared to $(3.6) million ($(0.14) per diluted share, after taxes) and $(0.3) million ($(0.01) per diluted share, after taxes) for the three-months and full-year ended December 31, 2023, respectively.
    • The provision for credit losses was an expense of $2.2 million ($0.08 per diluted share, after taxes) and expense of $4.5 million ($0.17 per diluted share, after tax) in the fourth quarter and full year ended December 31, 2024, respectively, as compared to a credit of $(0.6) million ($(0.02) per diluted share, after taxes) and expense of $6.2 million ($0.23 per diluted share, after tax) in the fourth quarter and full year ended December 31, 2023, respectively.

    Operating Results

    The Company’s net interest income totaled $42.9 million during the fourth quarter of 2024, an increase of $2.7 million, or 6.8% from the year-ago period, and up $1.0 million, or 2.4%, from the third quarter of 2024. The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.45% during the fourth quarter of 2024, compared to 3.26% in the year-ago period, and 3.37% in the third quarter of 2024. The year-over-year quarterly increase in net interest income was due to an increase in the net interest margin and an increase in average earnings assets. Average interest-earning assets were $5.01 billion in the fourth quarter of 2024, compared to $4.93 billion in the year ago quarter and $4.99 billion in the third quarter of 2024.

    For the year ended December 31, 2024, net interest income totaled $166.2 million, an increase of $9.9 million, or 6.3% from the prior year ended December 31, 2023. The Company’s net interest margin for the year ended December 31, 2024 was 3.38% compared to 3.26% in 2023. The increase in net interest income for the year ended December 31, 2024 compared to 2023 reflects an increase in average interest- earning assets as well as an increase in the net interest margin.

    Non-interest income totaled $19.1 million and $56.4 million, respectively, for the fourth quarter and full year of 2024, compared to $9.1 million and $50.7 million in the respective, comparable year ago periods. These changes were primarily due to variances in mortgage banking related revenues.

    Net gains on mortgage loans in the fourth quarters of 2024 and 2023, were approximately $1.7 million and $2.0 million, respectively. The decrease in net gains on mortgage loans was due to lower profit margins on mortgage loan sales that was partially offset by an increase in the volume of mortgage loans sold. For the full year of 2024, net gains on mortgage loans totaled $6.6 million compared to $7.4 million in 2023. The decrease in net gains on mortgage loans was due to a combination of a lower loan sale margin on mortgage loan sales and a decrease in the volume of mortgage loans sold.

    Mortgage loan servicing, net, generated a gain of $7.8 million and a loss of $2.4 million in the fourth quarters of 2024 and 2023, respectively. For the full year of 2024 and 2023, mortgage loan servicing, net, generated income of $9.4 million and $4.6 million, respectively. The significant variances in mortgage loan servicing, net is primarily due to changes in the fair value of capitalized mortgage loan servicing rights attributed to an increase in interest rates that resulted in a decrease in prepayment speeds and a higher earnings rate on escrow deposits. Mortgage loan servicing, net activity is summarized in the following table:

     Three months ended Twelve months ended
     12/31/2024 12/31/2023 12/31/2024 12/31/2023
     (In thousands)
    Mortgage loan servicing, net:       
    Revenue, net$2,233  $2,216  $8,914  $8,828 
    Fair value change due to price 6,519   (3,644)  4,540   (280)
    Fair value change due to pay-downs (991)  (1,014)  (4,007)  (3,922)
    Total$7,761  $(2,442) $9,447  $4,626 
     

    On December 5, 2024 the company executed a letter of intent to sell approximately $971 million (27.8% of total servicing portfolio) of mortgage servicing rights to a third party. This sale represents approximately $13.5 million (27.4%) of the total capitalized mortgage loan servicing right asset. This transaction is expected to close in the first quarter of 2025. There was no financial impact in the fourth quarter of 2024 related to the execution of this letter of intent.

    Non-interest expenses totaled $37.0 million in the fourth quarter of 2024, compared to $31.9 million in the year-ago period. For the full year of 2024, non-interest expenses totaled $135.1 million versus $127.1 million in 2023. The increase is primarily due to higher incentive based compensation attributed to higher expected payout levels, salary increases related to adjustments made at the beginning of the year as well as additions to the commercial lending team. The increase in data processing is primarily due to core data processor annual asset growth and CPI related cost increases as well as new solutions implemented during this time frame. 

    The Company recorded an income tax expense of $4.3 million and $16.3 million in the fourth quarter and full year of 2024, respectively. This compares to an income tax expense of $4.2 million and $14.6 million in the fourth quarter and full year of 2023, respectively.

    Asset Quality

    A breakdown of non-performing loans by loan type is as follows:

     12/31/2024 12/31/2023 12/31/2022
    Loan Type(Dollars in thousands)
    Commercial$54  $28  $38 
    Mortgage 7,005   6,425   4,745 
    Installment 733   970   598 
    Sub total 7,792   7,423   5,381 
    Less - government guaranteed loans 1,790   2,191   1,660 
    Total non-performing loans$6,002  $5,232  $3,721 
    Ratio of non-performing loans to total portfolio loans 0.15%  0.14%  0.11%
    Ratio of non-performing assets to total assets 0.13%  0.11%  0.08%
    Ratio of allowance for credit losses to total non-performing loans 989.32%  1044.69%  1409.16%
     

    The provision for credit losses was an expense of $2.2 million and a credit of $0.6 million in the fourth quarters of 2024 and 2023, respectively. The provision for credit losses was an expense of $4.5 million and $6.2 million in the full year of 2024 and 2023, respectively. The quarterly provision for credit losses in 2024, was primarily impacted by the growth in commercial loans that was partially offset by a decrease in allocation rates due to subjective factors. The Company recorded loan net charge-offs of $0.3 million and $0.2 million in the fourth quarters of 2024 and 2023, respectively. At December 31, 2024, the allowance for credit losses totaled $59.4 million, or 1.47% of total portfolio loans compared to $54.7 million, or 1.44% of total portfolio loans at December 31, 2023.

    Balance Sheet, Liquidity and Capital

    Total assets were $5.34 billion at December 31, 2024, an increase of $74.4 million from December 31, 2023. Loans, excluding loans held for sale, were $4.04 billion at December 31, 2024, compared to $3.79 billion at December 31, 2023. This increase is primarily due to growth in commercial and mortgage loans that were partially offset by a decrease in installment loans. Deposits totaled $4.65 billion at December 31, 2024, an increase of $31.2 million from December 31, 2023. This increase is primarily due to growth in savings and interest-bearing checking, reciprocal, and time deposit account balances that were partially offset by decreases in non-interest bearing and brokered time deposits.

    Cash and cash equivalents totaled $119.9 million at December 31, 2024, versus $169.8 million at December 31, 2023. Securities available for sale (“AFS”) totaled $559.2 million at December 31, 2024, versus $679.4 million at December 31, 2023.

    Total shareholders’ equity was $454.7 million at December 31, 2024, or 8.52% of total assets compared to $404.4 million or 7.68% at December 31, 2023. Tangible common equity totaled $424.9 million at December 31, 2024, or $20.33 per share compared to $374.1 million or $17.96 per share at December 31, 2023. The increase in shareholder equity as well as tangible common equity are primarily the result of earnings retention and a decline in accumulated other comprehensive loss related to unrealized losses on securities available for sale.

    The Company’s wholly owned subsidiary, Independent Bank, remains significantly above “well capitalized” for regulatory purposes with the following ratios:

    Regulatory Capital Ratios12/31/2024 12/31/2023 Well
    Capitalized
    Minimum
          
    Tier 1 capital to average total assets9.58% 8.80% 5.00%
    Tier 1 common equity to risk-weighted assets11.74% 11.21% 6.50%
    Tier 1 capital to risk-weighted assets11.74% 11.21% 8.00%
    Total capital to risk-weighted assets12.99% 12.46% 10.00%
     

    At December 31, 2024, in addition to liquidity available from our normal operating, funding, and investing activities, we had unused credit lines with the FHLB and FRB of approximately $1.08 billion and $501.8 million, respectively. We also had approximately $517.2 million in fair value of unpledged securities AFS and HTM at December 31, 2024 which could be pledged for an estimated additional borrowing capacity at the FHLB and FRB of approximately $483.8 million.

    Share Repurchase Plan

    On December 17, 2024, the Board of Directors of the Company authorized the 2025 share repurchase plan. Under the terms of the 2025 share repurchase plan, the Company is authorized to purchase up to 1,100,000 shares, or approximately 5% of its then outstanding common stock. The repurchase plan is authorized to last through December 31, 2025. The Company did not repurchase any shares of common stock during 2024.

    Earnings Conference Call

    Brad Kessel, President and CEO, Gavin A. Mohr, CFO and Joel Rahn, EVP – Commercial Banking will review the quarterly results in a conference call for investors and analysts beginning at 11:00 am ET on Thursday, January 23, 2025.

    To participate in the live conference call, please dial 1-833-470-1428 (Access Code # 213949). Also, the conference call will be accessible through an audio webcast with user-controlled slides via the following site/URL: https://events.q4inc.com/attendee/519785754.

    A playback of the call can be accessed by dialing 1-866-813-9403 (Access Code # 178534). The replay will be available through January 30, 2025.

    About Independent Bank Corporation

    Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of $5.3 billion. Founded as First National Bank of Ionia in 1864, Independent Bank Corporation operates a branch network across Michigan's Lower Peninsula through one state-chartered bank subsidiary. This subsidiary (Independent Bank) provides a full range of financial services, including commercial banking, mortgage lending, investments and insurance. Independent Bank Corporation is committed to providing exceptional personal service and value to its customers, stockholders and the communities it serves.

    For more information, please visit our Web site at: IndependentBank.com.

    Forward-Looking Statements

    This presentation contains forward-looking statements, which are any statements or information that are not historical facts. These forward-looking statements include statements about our anticipated future revenue and expenses and our future plans and prospects.

    Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. For example, deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding to us, lead to a tightening of credit, and increase stock price volatility. Our results could also be adversely affected by changes in interest rates; increases in unemployment rates; deterioration in the credit quality of our loan portfolios or in the value of the collateral securing those loans; deterioration in the value of our investment securities; legal and regulatory developments; changes in customer behavior and preferences; breaches in data security; and management’s ability to effectively manage the multitude of risks facing our business. Key risk factors that could affect our future results are described in more detail in our Annual Report on Form 10-K for the year ended December 31, 2023 and the other reports we file with the SEC, including under the heading “Risk Factors.” Investors should not place undue reliance on forward-looking statements as a prediction of our future results.

    Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.


    INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
    Consolidated Statements of Financial Condition
     
      December 31,
       2024   2023 
      (unaudited)
      (In thousands, except share
    amounts)
    Assets    
    Cash and due from banks $56,984  $68,208 
    Interest bearing deposits  62,898   101,573 
    Cash and Cash Equivalents  119,882   169,781 
    Securities available for sale  559,182   679,350 
    Securities held to maturity (fair value of $301,860 at December 31, 2024 and $318,606 at December 31, 2023)  339,436   353,988 
    Federal Home Loan Bank and Federal Reserve Bank stock, at cost  16,099   16,821 
    Loans held for sale, carried at fair value  7,643   12,063 
    Loans    
    Commercial  1,937,364   1,679,731 
    Mortgage  1,516,726   1,485,872 
    Installment  584,735   625,298 
    Total Loans  4,038,825   3,790,901 
    Allowance for credit losses  (59,379)  (54,658)
    Net Loans  3,979,446   3,736,243 
    Other real estate and repossessed assets, net  938   569 
    Property and equipment, net  37,492   35,523 
    Bank-owned life insurance  53,855   54,341 
    Capitalized mortgage loan servicing rights, carried at fair value  46,796   42,243 
    Other intangibles  1,488   2,004 
    Goodwill  28,300   28,300 
    Accrued income and other assets  147,547   132,500 
    Total Assets $5,338,104  $5,263,726 
    Liabilities and Shareholders’ Equity    
    Deposits    
    Non-interest bearing $1,013,647  $1,076,093 
    Savings and interest-bearing checking  1,995,314   1,905,701 
    Reciprocal  907,031   832,020 
    Time  628,285   524,325 
    Brokered time  109,811   284,740 
    Total Deposits  4,654,088   4,622,879 
    Other borrowings  45,009   50,026 
    Subordinated debt  39,586   39,510 
    Subordinated debentures  39,796   39,728 
    Accrued expenses and other liabilities  104,939   107,134 
    Total Liabilities  4,883,418   4,859,277 
    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: 20,895,714 shares at December 31, 2024 and 20,835,633 shares at December 31, 2023  318,777   317,483 
    Retained earnings  205,853   159,108 
    Accumulated other comprehensive loss  (69,944)  (72,142)
    Total Shareholders’ Equity  454,686   404,449 
    Total Liabilities and Shareholders’ Equity $5,338,104  $5,263,726 
     


    INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
    Consolidated Statements of Operations
     
     
      Three Months Ended Twelve Months Ended 
       December 31,
    2024
       September 30,
    2024
       December 31,
    2023
       December 31,  
                2024   2023  
      (unaudited) 
    INTEREST INCOME (In thousands, except per share amounts) 
    Interest and fees on loans $58,346  $58,410  $54,333  $228,585  $197,725  
    Interest on securities           
    Taxable  4,417   4,502   5,646   18,883   23,314  
    Tax-exempt  2,905   3,404   3,434   13,100   13,209  
    Other investments  1,310   2,018   1,948   6,208   5,429  
    Total Interest Income  66,978   68,334   65,361   266,776   239,677  
    INTEREST EXPENSE           
    Deposits  22,546   24,462   23,111   92,694   75,075  
    Other borrowings and subordinated debt and debentures  1,581   2,018   2,139   7,834   8,273  
    Total Interest Expense  24,127   26,480   25,250   100,528   83,348  
    Net Interest Income  42,851   41,854   40,111   166,248   156,329  
    Provision for credit losses  2,217   1,488   (617)  4,468   6,210  
    Net Interest Income After Provision for Credit Losses  40,634   40,366   40,728   161,780   150,119  
    NON-INTEREST INCOME           
    Interchange income  3,294   4,146   3,336   13,992   13,996  
    Service charges on deposit accounts  2,976   3,085   3,061   11,870   12,361  
    Net gains (losses) on assets           
    Mortgage loans  1,705   2,177   1,961   6,579   7,436  
    Equity securities at fair value     (8)     2,685     
    Securities available for sale  (14)  (145)     (428)  (222) 
    Mortgage loan servicing, net  7,761   (3,130)  (2,442)  9,447   4,626  
    Other  3,399   3,383   3,181   12,217   12,479  
    Total Non-interest Income  19,121   9,508   9,097   56,362   50,676  
    NON-INTEREST EXPENSE           
    Compensation and employee benefits  22,886   20,048   19,049   84,955   78,965  
    Data processing  3,688   3,379   2,909   13,579   11,862  
    Occupancy, net  1,953   1,893   1,933   7,806   7,908  
    Interchange expense  1,131   1,149   1,110   4,504   4,332  
    Furniture, fixtures and equipment  928   932   974   3,762   3,756  
    Advertising  1,198   581   879   3,058   2,165  
    FDIC deposit insurance  729   664   796   2,870   3,005  
    Legal and professional  849   687   585   2,566   2,208  
    Loan and collection  606   657   456   2,474   2,174  
    Communications  462   519   535   2,095   2,406  
    Costs (recoveries) related to unfunded lending commitments  303   113   348   (373)  424  
    Other  2,254   1,961   2,304   7,800   7,914  
    Total Non-interest Expense  36,987   32,583   31,878   135,096   127,119  
    Income Before Income Tax  22,768   17,291   17,947   83,046   73,676  
    Income tax expense  4,307   3,481   4,204   16,256   14,609  
    Net Income $18,461  $13,810  $13,743  $66,790  $59,067  
    Net income per common share           
    Basic $0.88  $0.66  $0.66  $3.20  $2.82  
    Diluted $0.87  $0.65  $0.65  $3.16  $2.79  
     


    INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
    Selected Financial Data
     
     December 31,
    2024
     September 30,
    2024
     June 30,
    2024
     March 31,
    2024
     December 31,
    2023
     (unaudited)
     (Dollars in thousands except per share data)
    Three Months Ended         
    Net interest income$42,851  $41,854  $41,346  $40,197  $40,111 
    Provision for credit losses 2,217   1,488   19   744   (617)
    Non-interest income 19,121   9,508   15,172   12,561   9,097 
    Non-interest expense 36,987   32,583   33,333   32,193   31,878 
    Income before income tax 22,768   17,291   23,166   19,821   17,947 
    Income tax expense 4,307   3,481   4,638   3,830   4,204 
    Net income$18,461  $13,810  $18,528  $15,991  $13,743 
              
    Basic earnings per share$0.88  $0.66  $0.89  $0.77  $0.66 
    Diluted earnings per share 0.87   0.65   0.88   0.76   0.65 
    Cash dividend per share 0.24   0.24   0.24   0.24   0.23 
              
    Average shares outstanding 20,893,820   20,896,019   20,901,741   20,877,067   20,840,680 
    Average diluted shares outstanding 21,122,096   21,115,273   21,105,387   21,079,607   21,049,030 
              
    Performance Ratios         
    Return on average assets 1.39%  1.04%  1.44%  1.24%  1.04%
    Return on average equity 16.31   12.54   17.98   15.95   14.36 
    Efficiency ratio (1) 59.09   62.82   61.49   60.26   64.27 
              
    As a Percent of Average Interest-Earning Assets (1)         
    Interest income 5.37%  5.48%  5.45%  5.34%  5.29%
    Interest expense 1.92   2.11   2.05   2.04   2.03 
    Net interest income 3.45   3.37   3.40   3.30   3.26 
              
    Average Balances         
    Loans$3,994,661  $3,909,954  $3,849,199  $3,810,526  $3,764,752 
    Securities 912,073   933,750   944,435   999,140   1,027,240 
    Total earning assets 5,007,566   4,985,842   4,893,367   4,910,669   4,928,697 
    Total assets 5,300,368   5,275,623   5,181,317   5,201,452   5,233,666 
    Deposits 4,655,091   4,616,119   4,531,917   4,561,645   4,612,797 
    Interest bearing liabilities 3,717,483   3,689,684   3,611,972   3,627,446   3,635,771 
    Shareholders' equity 450,214   438,077   414,549   403,225   379,614 

    (1) Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.

    INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
    Selected Financial Data (continued)
     
     December 31,
    2024
     September 30,
    2024
     June 30,
    2024
     March 31,
    2024
     December 31,
    2023
     (unaudited)
     (Dollars in thousands except per share data)
    End of Period         
    Capital         
    Tangible common equity ratio 8.00%  8.08%  7.63%  7.41%  7.15%
    Tangible common equity ratio excluding accumulated other comprehensive loss 9.10   8.99   8.76   8.57   8.31 
    Average equity to average assets 8.49   8.30   8.00   7.75   7.25 
    Total capital to risk-weighted assets (2) 14.24   14.25   14.21   13.85   13.71 
    Tier 1 capital to risk-weighted assets (2) 12.07   12.06   12.01   11.65   11.50 
    Common equity tier 1 capital to risk-weighted assets (2) 11.19   11.16   11.09   10.73   10.58 
    Tier 1 capital to average assets (2) 9.86   9.63   9.59   9.29   9.03 
    Common shareholders' equity per share of common stock$21.76  $21.65  $20.60  $19.88  $19.41 
    Tangible common equity per share of common stock 20.33   20.22   19.16   18.44   17.96 
    Total shares outstanding 20,895,714   20,893,800   20,899,358   20,903,677   20,835,633 
              
    Selected Balances         
    Loans$4,038,825  $3,942,287  $3,851,889  $3,839,965  $3,790,901 
    Securities 898,618   932,312   936,194   963,577   1,033,338 
    Total earning assets 5,024,083   4,964,784   4,979,555   4,949,496   4,954,696 
    Total assets 5,338,104   5,259,268   5,277,500   5,231,255   5,263,726 
    Deposits 4,654,088   4,626,875   4,614,328   4,582,414   4,622,879 
    Interest bearing liabilities 3,764,832   3,682,482   3,694,025   3,677,060   3,676,050 
    Shareholders' equity 454,686   452,369   430,459   415,570   404,449 

    (2) December 31, 2024 are Preliminary.

    Reconciliation of Non-GAAP Financial Measures
    Independent Bank Corporation

    Independent Bank Corporation believes non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate the adequacy of common equity and performance trends. Tangible common equity is used by the Company to measure the quality of capital.

    Reconciliation of Non-GAAP Financial Measures

     Three Months Ended
    December 31,
     Twelve Months Ended
    December 31,
      2024   2023   2024   2023 
     (Dollars in thousands)
    Net Interest Margin, Fully Taxable Equivalent ("FTE")       
            
    Net interest income$42,851  $40,111  $166,248  $156,329 
    Add: taxable equivalent adjustment 389   178   902   900 
    Net interest income - taxable equivalent$43,240  $40,289  $167,150  $157,229 
    Net interest margin (GAAP) (1) 3.42%  3.25%  3.36%  3.24%
    Net interest margin (FTE) (1) 3.45%  3.26%  3.38%  3.26%

    (1) Quarter to date are Annualized.

    Tangible Common Equity Ratio

     December 31,
    2024
     September 30,
    2024
     June 30,
    2024
     March 31,
    2024
     December 31,
    2023
     (Dollars in thousands)
    Common shareholders' equity$454,686  $452,369  $430,459  $415,570  $404,449 
    Less:         
    Goodwill 28,300   28,300   28,300   28,300   28,300 
    Other intangibles 1,488   1,617   1,746   1,875   2,004 
    Tangible common equity 424,898   422,452   400,413   385,395   374,145 
    Addition:         
    Accumulated other comprehensive loss for regulatory purposes 64,146   52,454   65,030   65,831   66,344 
    Tangible common equity excluding other comprehensive loss adjustments$489,044  $474,906  $465,443  $451,226  $440,489 
              
    Total assets$5,338,104  $5,259,268  $5,277,500  $5,231,255  $5,263,726 
    Less:         
    Goodwill 28,300   28,300   28,300   28,300   28,300 
    Other intangibles 1,488   1,617   1,746   1,875   2,004 
    Tangible assets 5,308,316   5,229,351   5,247,454   5,201,080   5,233,422 
    Addition:         
    Net unrealized losses on available for sale securities and derivatives, net of tax 64,146   52,454   65,030   65,831   66,344 
    Tangible assets excluding other comprehensive loss adjustments$5,372,462  $5,281,805  $5,312,484  $5,266,911  $5,299,766 
              
    Common equity ratio 8.52%  8.60%  8.16%  7.94%  7.68%
    Tangible common equity ratio 8.00%  8.08%  7.63%  7.41%  7.15%
    Tangible common equity ratio excluding other comprehensive loss 9.10%  8.99%  8.76%  8.57%  8.31%
              
    Tangible Common Equity per Share of Common Stock:
              
    Common shareholders' equity$454,686  $452,369  $430,459  $415,570  $404,449 
    Tangible common equity$424,898  $422,452  $400,413  $385,395  $374,145 
    Shares of common stock outstanding (in thousands) 20,896   20,894   20,899   20,904   20,836 
              
    Common shareholders' equity per share of common stock$21.76  $21.65  $20.60  $19.88  $19.41 
    Tangible common equity per share of common stock$20.33  $20.22  $19.16  $18.44  $17.96 
     

    The tangible common equity ratio removes the effect of goodwill and other intangible assets from capital and total assets. Tangible common equity per share of common stock removes the effect of goodwill and other intangible assets from common shareholders’ equity per share of common stock.

    Contact:William B. Kessel, President and CEO, 616.447.3933
    Gavin A. Mohr, Chief Financial Officer, 616.447.3929

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