Independent Bank Corporation Reports 18% Increase in Earnings Per Share

Apr 17, 2001, 01:00 ET from Independent Bank Corporation

    IONIA, Mich., April 17 /PRNewswire/ -- Independent Bank Corporation
 (Nasdaq: IBCP), a Michigan-based bank holding company, reported that its net
 income totaled $5,258,000 during the three months ended March 31, 2001.  A
 year earlier, the Company's net income totaled $4,486,000.  Diluted earnings
 per share were $0.45 in 2001 and $0.38 in 2000.
     The increase in net income reflects increases in net interest income and
 non-interest income.  These increases in revenues were partially offset by
 increases in non-interest expense and the provision for loan losses.
     Tax equivalent net interest income totaled $19.0 million during the three
 months ended March 31, 2001.  The increase from $18.1 million during the
 comparable period of 2000 principally reflects an increase in average earning
 assets.  Increases in loans as a percent of average earning assets also
 contributed to the increase in tax equivalent net interest income.
     The Company implemented Statement of Financial Accounting Standards, No.
 133, "Accounting for Derivative Instruments and Hedging Activities," ("SFAS
 #133") on January 1, 2001.  Pursuant to SFAS #133, the Company recorded
 certain charges, which are the result of accounting for derivatives at fair
 value.  These net charges reduced the Company's net interest income and its
 net gains on the sale of real estate mortgage loans by approximately $225,000
 and $50,000 respectively.  An additional $35,000, net of taxes, has been
 recorded as a cumulative effect of change in accounting principle.  These
 charges generally represent timing differences in the recognition of revenues
 and expenses.
     Non-interest income, including net gains on the sale of real estate
 mortgage loans, grew to $5.0 million during the three months ended March 31,
 2001.  The increase from $4.1 million during the comparable period of 2000
 principally reflects a $615,000 increase in net gains on the sale of real
 estate mortgage loans.  A $317,000 increase in service charges on deposit
 accounts also contributed to the increase in non-interest income.
     Non-interest expense totaled $15.1 million during the three months ended
 March 31, 2001.  Increases in salaries and employee benefits accounted for
 $230,000 of the $412,000 increase in non-interest expense from $14.7 million
 during the comparable period in 2000.
     Independent Bank Corporation had assets totaling nearly $1.8 billion at
 March 31, 2001.  Its subsidiaries operate 89 offices across Michigan's Lower
 Peninsula.  The Company's common stock trades on the Nasdaq Stock Market under
 the symbol IBCP.
     This release may contain certain forward-looking statements within the
 meaning of the Private Securities Litigation Reform Act of 1995.  Actual
 results could differ materially from those projected in such forward-looking
 statements.
 
     Independent Bank Corporation                        Three Months Ended
     ($ in thousands, except per share data)                  March 31,
                                                         2001          2000
                                                              unaudited
     SUMMARY OF OPERATIONS
     Interest income                                  $35,252        $33,005
     Interest expense                                  17,116         15,847
       Net interest income                             18,136         17,158
     Provision for loan losses                            633            557
     Net gains on the sale of
      real estate mortgage loans                          995            380
     Other non-interest income                          4,011          3,764
     Non-interest expense                              15,123         14,711
       Income before federal income tax                 7,386          6,034
     Federal income tax expense                         2,093          1,548
       Net income before cumulative effect
        of change in accounting principle               5,293          4,486
     Cumulative effect of change
      in accounting principle, net of tax                 (35)
       Net income                                      $5,258         $4,486
 
     PER SHARE DATA (A)
     Net income
       Basic                                            $0.46          $0.38
       Diluted                                           0.45           0.38
     Cash dividends declared                             0.16           0.14
 
     SELECTED RATIOS
     As a percent of average earning assets
       Tax equivalent interest income                    8.78%          8.50%
       Interest expense                                  4.18           3.98
       Tax equivalent net interest income                4.60           4.52
 
     Net income to
       Average equity                                   16.45%         15.74%
       Average assets                                    1.21           1.05
 
     CASH BASIS FINANCIAL DATA (B)
     Income per share (A)
       Basic                                            $0.49          $0.41
       Diluted                                           0.48           0.41
     Income to
       Average tangible equity                          19.85%         19.89%
       Average tangible assets                           1.30           1.15
 
     AVERAGE SHARES (A)
       Basic                                       11,548,172     11,750,755
       Diluted                                     11,685,922     11,835,707
 
                                                    March 31,     December 31,
                                                      2001           2000
     CONDENSED BALANCE SHEET                               Unaudited
     Assets
       Securities                                    $233,858       $237,545
       Portfolio loans                              1,376,430      1,379,664
       Allowance for loan losses                      (14,322)       (13,982)
       Other interest earning assets                   60,692         40,429
       Intangible assets                               14,846         15,274
       Other non-interest earning assets              116,849        124,861
         Total assets                              $1,788,353     $1,783,791
     Liabilities and shareholders' equity
       Deposits                                    $1,353,792     $1,389,900
       Other borrowings and federal funds purchased   258,394        223,582
       Guaranteed preferred beneficial interests
        in Company's subordinated debentures           17,250         17,250
       Other non-interest bearing liabilities          30,540         24,723
         Total liabilities                          1,659,976      1,655,455
     Shareholders' equity                             128,377        128,336
         Total liabilities and
          shareholders' equity                     $1,788,353     $1,783,791
 
     Book value per share                              $11.17         $11.05
     Non-performing assets as a percent of total loans   0.73%          0.67%
 
     (A)  Restated to give effect to a 5% stock dividend.  Average shares of
 common stock for Basic net income per share includes shares issued and
 outstanding during the period.  Average shares of common stock for Diluted net
 income per share include shares to be issued upon exercise of stock options.
     (B)  Cash basis financial data exclude intangible assets and the related
 amortization expense.
 
 

SOURCE Independent Bank Corporation
    IONIA, Mich., April 17 /PRNewswire/ -- Independent Bank Corporation
 (Nasdaq: IBCP), a Michigan-based bank holding company, reported that its net
 income totaled $5,258,000 during the three months ended March 31, 2001.  A
 year earlier, the Company's net income totaled $4,486,000.  Diluted earnings
 per share were $0.45 in 2001 and $0.38 in 2000.
     The increase in net income reflects increases in net interest income and
 non-interest income.  These increases in revenues were partially offset by
 increases in non-interest expense and the provision for loan losses.
     Tax equivalent net interest income totaled $19.0 million during the three
 months ended March 31, 2001.  The increase from $18.1 million during the
 comparable period of 2000 principally reflects an increase in average earning
 assets.  Increases in loans as a percent of average earning assets also
 contributed to the increase in tax equivalent net interest income.
     The Company implemented Statement of Financial Accounting Standards, No.
 133, "Accounting for Derivative Instruments and Hedging Activities," ("SFAS
 #133") on January 1, 2001.  Pursuant to SFAS #133, the Company recorded
 certain charges, which are the result of accounting for derivatives at fair
 value.  These net charges reduced the Company's net interest income and its
 net gains on the sale of real estate mortgage loans by approximately $225,000
 and $50,000 respectively.  An additional $35,000, net of taxes, has been
 recorded as a cumulative effect of change in accounting principle.  These
 charges generally represent timing differences in the recognition of revenues
 and expenses.
     Non-interest income, including net gains on the sale of real estate
 mortgage loans, grew to $5.0 million during the three months ended March 31,
 2001.  The increase from $4.1 million during the comparable period of 2000
 principally reflects a $615,000 increase in net gains on the sale of real
 estate mortgage loans.  A $317,000 increase in service charges on deposit
 accounts also contributed to the increase in non-interest income.
     Non-interest expense totaled $15.1 million during the three months ended
 March 31, 2001.  Increases in salaries and employee benefits accounted for
 $230,000 of the $412,000 increase in non-interest expense from $14.7 million
 during the comparable period in 2000.
     Independent Bank Corporation had assets totaling nearly $1.8 billion at
 March 31, 2001.  Its subsidiaries operate 89 offices across Michigan's Lower
 Peninsula.  The Company's common stock trades on the Nasdaq Stock Market under
 the symbol IBCP.
     This release may contain certain forward-looking statements within the
 meaning of the Private Securities Litigation Reform Act of 1995.  Actual
 results could differ materially from those projected in such forward-looking
 statements.
 
     Independent Bank Corporation                        Three Months Ended
     ($ in thousands, except per share data)                  March 31,
                                                         2001          2000
                                                              unaudited
     SUMMARY OF OPERATIONS
     Interest income                                  $35,252        $33,005
     Interest expense                                  17,116         15,847
       Net interest income                             18,136         17,158
     Provision for loan losses                            633            557
     Net gains on the sale of
      real estate mortgage loans                          995            380
     Other non-interest income                          4,011          3,764
     Non-interest expense                              15,123         14,711
       Income before federal income tax                 7,386          6,034
     Federal income tax expense                         2,093          1,548
       Net income before cumulative effect
        of change in accounting principle               5,293          4,486
     Cumulative effect of change
      in accounting principle, net of tax                 (35)
       Net income                                      $5,258         $4,486
 
     PER SHARE DATA (A)
     Net income
       Basic                                            $0.46          $0.38
       Diluted                                           0.45           0.38
     Cash dividends declared                             0.16           0.14
 
     SELECTED RATIOS
     As a percent of average earning assets
       Tax equivalent interest income                    8.78%          8.50%
       Interest expense                                  4.18           3.98
       Tax equivalent net interest income                4.60           4.52
 
     Net income to
       Average equity                                   16.45%         15.74%
       Average assets                                    1.21           1.05
 
     CASH BASIS FINANCIAL DATA (B)
     Income per share (A)
       Basic                                            $0.49          $0.41
       Diluted                                           0.48           0.41
     Income to
       Average tangible equity                          19.85%         19.89%
       Average tangible assets                           1.30           1.15
 
     AVERAGE SHARES (A)
       Basic                                       11,548,172     11,750,755
       Diluted                                     11,685,922     11,835,707
 
                                                    March 31,     December 31,
                                                      2001           2000
     CONDENSED BALANCE SHEET                               Unaudited
     Assets
       Securities                                    $233,858       $237,545
       Portfolio loans                              1,376,430      1,379,664
       Allowance for loan losses                      (14,322)       (13,982)
       Other interest earning assets                   60,692         40,429
       Intangible assets                               14,846         15,274
       Other non-interest earning assets              116,849        124,861
         Total assets                              $1,788,353     $1,783,791
     Liabilities and shareholders' equity
       Deposits                                    $1,353,792     $1,389,900
       Other borrowings and federal funds purchased   258,394        223,582
       Guaranteed preferred beneficial interests
        in Company's subordinated debentures           17,250         17,250
       Other non-interest bearing liabilities          30,540         24,723
         Total liabilities                          1,659,976      1,655,455
     Shareholders' equity                             128,377        128,336
         Total liabilities and
          shareholders' equity                     $1,788,353     $1,783,791
 
     Book value per share                              $11.17         $11.05
     Non-performing assets as a percent of total loans   0.73%          0.67%
 
     (A)  Restated to give effect to a 5% stock dividend.  Average shares of
 common stock for Basic net income per share includes shares issued and
 outstanding during the period.  Average shares of common stock for Diluted net
 income per share include shares to be issued upon exercise of stock options.
     (B)  Cash basis financial data exclude intangible assets and the related
 amortization expense.
 
 SOURCE  Independent Bank Corporation