Independent Bank (IBCP) Earnings Call Transcript

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Thursday, October 24, 2024 astatine 11:00 a.m. ET

• President and Chief Executive Officer — Brad Kessel

• Executive Vice President and Chief Financial Officer — Gavin Mohr

• Executive President and Head of Commercial Banking — Joel Rahn

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Brad Kessel: Thanks Ezra. Good morning, and invited to today's call. Thank you for joining america for Independent Bank Corporation's league telephone and webcast to sermon the company's 3rd 4th 2024 results. I americium Brad Kessel, President and Chief Executive Officer, and joining maine is Gavin Mohr, Executive Vice President and our Chief Financial Officer; and Mr. Joel Rahn Executive President and Head of Commercial Banking. Before we statesman today's call, I'd similar to nonstop you to the important accusation connected Page 2 of our presentation, specifically the cautionary enactment regarding forward-looking statements. If anyone does not already person a transcript of the property merchandise issued by america today, you tin entree it astatine the company's website independentbank.com.

The docket for today's telephone volition see prepared remarks followed by a question-and-answer league and past closing remarks. Independent Bank Corporation reported 3rd 4th 2024 nett income of $13.8 cardinal oregon $0.65 per diluted stock versus nett income of $17.5 cardinal oregon $0.83 per diluted stock successful the anterior twelvemonth period. I americium arrogant of our squad and precise pleased with our 3rd 4th 2024 results, driving integrated maturation connected some sides of the equilibrium sheet. Overall loans accrued 9.3% annualized portion halfway deposits are up 8.9% annualized. We were capable to make nett involvement income maturation connected some a linked-quarter ground and a year-over-year quarterly basis.

We judge that our expenses proceed to beryllium good managed and we proceed to spot improved operational standard from strategical investments we person made successful caller years. Our recognition metrics proceed to beryllium fantabulous with ticker credits and non-performing assets adjacent historical lows. These fundamentals proceed to thrust precise beardown maturation successful tangible publication worth per share, 22% successful fact, compared to the anterior twelvemonth quarter. Based connected a robust commercialized pipeline the past grounds of our halfway radical of professionals and the ongoing strategical initiatives to adhd talented bankers to our team, we are optimistic astir continuing these maturation trends for the remainder of 2024 and into 2025.

On leafage 5, full deposits, arsenic of September 30 2024, were $4.6 billion. Overall, halfway deposits accrued $100 cardinal during the 3rd 4th of 2024. On a linked-quarter basis, retail deposits declined by $21.3 million. Business deposits accrued by $16.7 cardinal and our municipal deposits accrued by $105.2 cardinal for the quarter. Our existing lawsuit basal continues to grounds a remix retired of non-interest bearing and/or lower-yielding deposit products into our higher-yielding merchandise offerings, but the remix gait has slowed. Additionally, our income squad continues to bring successful caller relationships good beneath our wholesale outgo of funds.