Independent Bank (IBCP) reported first quarter earnings of 42 cents a share today. That’s up from 28 cents a share in the first quarter of 2017. Special items added 4 cents a share to earnings. The reduction in the bank’s tax rate thanks to the Tax Cuts and Jobs Act of December added 7 cents a share to earnings.
Aside from these events, the bank’s core business did well in the quarter. Net interest income totaled $23.9 million in the quarter, an increase of 11.5% from the first quarter of 2017. The growth was a result of an increase in average interest-earning assets and in the net interest margin in the bank’s business. Total average interest-earning assets climbed to $2.61 billion in the quarter, up from $2.37 billion in the first quarter of 2017.
The total loan portfolio grew to $52.6 million, a 10.6% annualized growth rate. Non-performing assets fell to $1.6 million for a 15.8% drop.
The yield on these shares is now 2.51%. They’re up 2.92% since I added them to my Dividend Portfolio on March 20, 2018. Please note that at today’s closing price of $24.15 the shares are trading near the 52-week high at $24.80. I’m not looking for a huge move up in price from these shares but small banks like this one are the biggest beneficiary of looser regulation from Washington. In addition, the Federal Reserve’s gradual increase in interest rates should add to the net interest margin at the bank.