SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): April 16, 2003
|
INDEPENDENT BANK CORPORATION
(Exact name of registrant as specified in its charter) |
| Michigan
(State or Jurisdiction of Incorporation or Organization) |
|
0-7818
(Commission File Number) |
38-2032782
(I.R.S. Employer Identification No.) |
|
230 West Main Street, Ionia, Michigan 48846
(Address of principal executive offices) |
(616) 527-9450
(Registrant's telephone number, including area code)
|
NONE
Former name, address and fiscal year, if changed since last report. |
| Item 9. | Regulation FD Disclosure | |
| The
information attached at Exhibit A is supplemental data to the Registrant’s press
release dated April 16, 2003 regarding its earnings during the quarter ended
March 31, 2003. |
||
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial Condition
March 31, December 31,
2003 2002
---------------- ----------------
(unaudited)
----------------------------------
Assets (in thousands)
Cash and due from banks $ 59,798 $ 60,731
Securities available for sale 386,291 371,246
Federal Home Loan Bank stock, at cost 10,369 9,704
Loans held for sale 106,695 129,577
Loans
Commercial 561,096 536,715
Real estate mortgage 593,075 601,799
Installment 235,720 242,928
------------- --------------
Total Loans 1,389,891 1,381,442
Allowance for loan losses (17,128) (16,705)
------------- --------------
Net Loans 1,372,763 1,364,737
Property and equipment, net 40,894 40,735
Bank owned life insurance 35,800 35,415
Accrued income and other assets 48,883 45,417
------------- --------------
Total Assets $ 2,061,493 $ 2,057,562
============= ==============
Liabilities and Shareholders' Equity
Deposits
Non-interest bearing $ 184,379 $ 179,871
Savings and NOW 688,498 657,530
Time 687,468 698,202
------------- --------------
Total Deposits 1,560,345 1,535,603
Federal funds purchased 25,245 23,840
Other borrowings 225,256 310,413
Guaranteed preferred beneficial interests in Company's subordinated
debentures 67,850 17,250
Accrued expenses and other liabilities 37,404 32,409
------------- --------------
Total Liabilities 1,916,100 1,919,515
------------- --------------
Shareholders' Equity
Preferred stock, no par value--200,000 shares authorized; none
outstanding
Common stock, $1.00 par value--30,000,000 shares authorized;
issued and outstanding: 17,922,268 shares at March 31, 2003
and 17,822,090 shares at December 31, 2002 17,922 17,822
Capital surplus 75,863 75,076
Retained earnings 48,081 41,785
Accumulated other comprehensive income 3,527 3,364
------------- --------------
Total Shareholders' Equity 145,393 138,047
------------- --------------
Total Liabilities and Shareholders' Equity $ 2,061,493 $ 2,057,562
============= ==============
2
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
Three Months Ended
March 31,
2003 2002
----------- -----------
(unaudited)
-------------------------
(in thousands,
except per share amounts)
Interest Income
Interest and fees on loans $ 26,661 $ 27,054
Securities available for sale
Taxable 2,899 2,711
Tax-exempt 1,918 1,643
Other investments 142 313
----------- -----------
Total Interest Income 31,620 31,721
----------- -----------
Interest Expense
Deposits 7,171 8,626
Other borrowings 3,642 3,628
----------- -----------
Total Interest Expense 10,813 12,254
----------- -----------
Net Interest Income 20,807 19,467
Provision for loan losses 1,000 927
----------- -----------
Net Interest Income After Provision for Loan Losses 19,807 18,540
----------- -----------
Non-interest Income
Service charges on deposit accounts 3,271 2,712
Net gains (losses) on assets
Real estate mortgage loans 4,032 1,806
Securities 512 (34)
Title insurance fees 743 623
Manufactured home loan origination fees and commissions 358 434
Other income 1,499 1,584
----------- -----------
Total Non-interest Income 10,415 7,125
----------- -----------
Non-interest Expense
Compensation and employee benefits 9,641 8,788
Occupancy, net 1,598 1,306
Furniture and fixtures 1,320 1,106
Other expenses 5,496 4,542
----------- -----------
Total Non-interest Expense 18,055 15,742
----------- -----------
Income Before Federal Income Tax 12,167 9,923
Federal income tax expense 3,350 2,814
----------- -----------
Net Income $ 8,817 $ 7,109
=========== ===========
Net Income Per Share
Basic $ .49 $ .38
Diluted .49 .38
Dividends Per Common Share
Declared $ .14 $ .11
Paid .14 .11
3
Non-performing assets
March 31, December 31,
2003 2002
----------------- -----------------
(dollars in thousands)
Non-accrual loans $6,371 $5,738
Loans 90 days or more past due and
still accruing interest 2,400 3,961
Restructured loans 163 270
----------------- -----------------
Total non-performing loans 8,934 9,969
Other real estate 3,910 3,908
----------------- -----------------
Total non-performing assets $12,844 $13,877
================= =================
As a percent of Portfolio Loans
Non-performing loans 0.64 % 0.72 %
Allowance for loan losses 1.23 1.21
Non-performing assets to total assets 0.62 0.67
Allowance for loan losses as a percent of
non-performing loans 192 168
Three months ended
March 31,
2003 2002
------------- ------------
(in thousands)
Balance at beginning of period $16,705 $16,167
Additions (deduction)
Provision charged to operating expense 1,000 927
Recoveries credited to allowance 340 203
Loans charged against the allowance (917) (493)
------------- ------------
Balance at end of period $17,128 $16,804
============= ============
Net loans charged against the allowance to
average Portfolio Loans (annualized) 0.17 % 0.08 %
March 31, 2003 December 31, 2002
-------------------------------- --------------------------------
Average Average
Amount Maturity Rate Amount Maturity Rate
-------------------------------- --------------------------------
(dollars in thousands)
Brokered CDs(1) $272,284 1.5 years 2.58% $278,012 1.9 years 3.03%
Fixed rate FHLB advances(1) 75,856 6.6 years 5.16 62,861 7.9 years 5.83
Variable rate FHLB advances(1) 63,700 0.3 years 1.52 131,200 0.3 years 1.50
Securities sold under agreements to
Repurchase(1) 85,221 0.2 years 1.41 98,712 0.1 years 1.74
Federal funds purchased 25,245 1 day 1.56 23,840 1 day 1.38
-------------------------------- --------------------------------
Total $522,306 1.8 years 2.58% $594,625 1.8 years 2.71%
================================ ================================
(1) Certain of these items have had their average maturity and rate altered through the use of derivative instruments, including pay-fixed and pay-variable interest rate swaps.
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March 31, December 31,
2003 2002
------------------- ------------------
(in thousands)
Unsecured debt $ 12,600
-------
Preferred Securities $67,850 17,250
------ -------
Shareholders' Equity
Preferred stock, no par value
Common Stock, par value $1.00 per share 17,922 17,822
Capital surplus 75,863 75,076
Retained earnings 48,081 41,785
Accumulated other comprehensive income (loss) 3,527 3,364
------- -------
Total shareholders' equity 145,393 138,047
------- -------
Total capitalization $213,243 $167,897
======= =======
Three months ended
March 31,
2003 2002
------------ ------------
(in thousands)
Service charges on deposit
accounts $3,271 $2,712
Net gains (losses) on assets
Real estate mortgage loans 4,032 1,806
Securities 512 (34)
Title insurance fees 743 623
Bank owned life insurance 378
Manufactured home loan origination fees
and commissions 358 434
Mutual fund and annuity commissions 256 229
Real estate mortgage loan servicing fees (350) 295
Other 1,215 1,060
------------ ------------
Total non-interest income $10,415 $7,125
============ ============
5
Three months ended
March 31,
2003 2002
------------- -------------
(in thousands)
Real estate mortgage loans originated $262,128 $140,720
Real estate mortgage loans sold 229,744 147,312
Real estate mortgage loans sold with servicing rights released 16,757 12,337
Net gains on the sale of real estate mortgage loans 4,032 1,806
Net gains as a percent of real estate mortgage loans sold
("Loans Sale Margin") 1.75% 1.23%
Impact of SFAS #133 adjustments on the Loan Sale Margin
Three months ended
March 31,
2003 2002
------------ ------------
(in thousands)
Salaries $ 6,291 $ 5,818
Performance-based compensation and benefits 1,304 1,190
Other benefits 2,046 1,780
------------ ------------
Compensation and employee benefits 9,641 8,788
Occupancy, net 1,598 1,306
Furniture and fixtures 1,320 1,106
Data processing 923 713
Communications 684 646
Advertising 769 612
Loan and collection 942 505
Supplies 464 333
Amortization of intangible assets 276 246
Other 1,438 1,487
------------ ------------
Total non-interest expense $18,055 $15,742
============ ============
6
Three Months Ended
March 31,
2003 2002
------------------------------------ ------------------------------------------
Average Average
Balance Interest Rate Balance Interest Rate
----------- ---------- -------- ------------ ---------- --------
Assets (dollars in thousands)
Taxable loans (1) $ 1,467,558 $ 26,504 7.28 % $ 1,405,750 $ 26,897 7.71 %
Tax-exempt loans (1,2) 11,988 242 8.19 11,625 241 8.41
Taxable securities 210,108 2,899 5.60 181,543 2,711 6.06
Tax-exempt securities (2) 165,236 3,037 7.45 133,043 2,590 7.90
Other investments 10,111 142 5.70 21,599 313 5.88
---------- --------- ---------- ---------
Interest Earning Assets 1,865,001 32,824 7.10 1,753,560 32,752 7.53
--------- ---------
Cash and due from banks 41,139 37,992
Other assets, net 104,742 65,698
---------- ----------
Total Assets $ 2,010,882 $ 1,857,250
========== ==========
Liabilities
Savings and NOW $ 679,372 1,420 0.85 $ 623,813 1,964 1.28
Time deposits 662,630 5,751 3.52 640,053 6,662 4.22
Other borrowings 336,681 3,642 4.39 288,388 3,628 5.10
---------- --------- ---------- ---------
Interest Bearing Liabilities 1,678,683 10,813 2.61 1,552,254 12,254 3.20
--------- ---------
Demand deposits 160,241 142,863
Other liabilities 29,994 27,058
Shareholders' equity 141,964 135,075
---------- ----------
Total liabilities and shareholders' equity $ 2,010,882 $ 1,857,250
========== ==========
Tax Equivalent Net Interest Income $ 22,011 $ 20,498
========= =========
Tax Equivalent Net Interest Income
as a Percent of Earning Assets 4.75 % 4.70 %
======= =======
| (1) | All domestic |
| (2) | Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 35% |
7
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Date |
April 16, 2003
|
By |
s/ Robert N. Shuster
Robert N. Shuster, Principal Financial Officer |
|
| Date |
April 16, 2003
|
By |
s/ James J. Twarozynski
James J. Twarozynski, Principal Accounting Officer |
8