Independent Bank reports Q3 earnings growth

Independent Bank reports Q3 earnings growth
President and CEO Brad Kessel

Independent Bank Corp. grew earnings in the third quarter against the “many challenges” of the COVID-19 pandemic.

Grand Rapids-based Independent Bank (Nasdaq: IBCP) today reported $19.5 million in net income for the quarter ended Sept. 30, or 89 cents per diluted share. That compares to net income of $14.7 million, or 67 cents per diluted share, in the third quarter of 2019.

The quarterly results included $20.2 million on mortgage loans. Mortgage loan originations during the quarter grew 55.9 percent over 2019 to total $536.5 million, the bank said.

“As we look ahead to the last quarter 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,” President and CEO Brad Kessel said.

Independent Bank did record a higher third quarter loan-loss provision of $1.0 million, versus a $300,000 credit for the same period in 2019. As well, the amount of loans in forbearance declined 80 percent in the third quarter after peaking in mid-June “as many customers’ economic situations have improved, allowing them to pay their loans current or return to their original payment terms,” the bank said.

Year-to-date net income totaled $39.1 million, or $1.76 per diluted share, compared to $32.5 million, or $1.40 per diluted share, in the first three quarters of 2019.