Independent Bank Corp. has reported higher second quarter earnings with a larger reserve to cover loan losses.
The Grand Rapids-based Independent Bank (Nasdaq: IBCP) reported quarterly net income of $14.7 million, or 67 cents per diluted share. That compares with $10.7 million, or 46 cents per diluted share, in net income for the second quarter of 2019.
The bank’s April-to-June period included a higher quarterly loan-loss provision of $5.2 million, up from $700,000 for the second quarter a year earlier. The increase “principally reflects the unique challenges and economic uncertainty resulting from the COVID-19 pandemic and the potential impact on the loan portfolio,” the bank said in an earnings release.
“As we look ahead to the last half of 2020 and beyond, we are mindful of the ongoing challenges from the COVID-19 pandemic, but we are confident of our continued ability to effectively respond to these challenges and remain optimistic about our future,” said Independent Bank President and CEO Brad Kessel.
At the end of the quarter, Independent Bank had total assets of $4.04 billion, an increase of $410 million at the end of the first quarter. Total loans grew by $147 million to $2.91 billion at the end of the quarter.
Net income through the first half of 2020 totaled $19.5 million, or 88 cents per diluted share, which compares to $20.1 million, or 85 cents per diluted share, midway through 2019.