Independent Bank Corporation Announces Quarterly Dividend
IONIA, Mich., March 19 /PRNewswire-FirstCall/ -- Independent Bank Corporation (NASDAQ:IBCP), a Michigan-based bank holding company, today announced that its Board of Directors approved a quarterly dividend of $0.11 per share on the Company's common stock. The dividend will be payable on April 30, 2008 to all shareholders of record as of April 4, 2008. This compares to a quarterly dividend of $0.21 per share that was paid on January 31, 2008.
As previously disclosed, the Company stated that it would review the quarterly dividend and consider a number of internal and external market factors, while remaining focused on improving shareholder value. Independent Bank Corporation said the dividend reduction reflects the unsettled current market conditions, the need to preserve capital, and continued weak economic conditions in Michigan resulting in elevated credit costs. The Company has four issues of trust preferred securities outstanding, including a $50.6 million issue that is publicly traded on the NASDAQ. Based upon current conditions, the company has no intention to modify or discontinue the payment of quarterly dividends on any of its trust preferred securities.
Michael M. Magee, President and CEO of Independent Bank Corporation, commented: "The decision to reduce the common stock cash dividend was very difficult. The Board of Directors evaluated several factors including, capital levels, industry regulatory guidance, and both the near-term and longer-term outlook for operating results and credit costs. Based on this evaluation, the Board determined that it would be most prudent, particularly given the extraordinary conditions currently impacting the financial markets, to reduce the common stock cash dividend level. Maintaining an appropriate level of capital and allowance for loan losses will better position the Company to weather a difficult economic and credit environment."
About Independent Bank Corporation
Independent Bank Corporation (NASDAQ:IBCP) is a Michigan-based bank holding company with total assets of over $3 billion. Founded as First National Bank of Ionia in 1864, Independent Bank Corporation now operates over 100 offices across Michigan's Lower Peninsula through one state-chartered bank subsidiary. This subsidiary (Independent Bank) provides a full range of financial services, including commercial banking, mortgage lending, investments and title services. Payment plans to purchase vehicle service contracts are also available through Mepco Finance Corporation, a wholly owned subsidiary of Independent Bank. Independent Bank Corporation is committed to providing exceptional personal service and value to its customers, stockholders and the communities it serves. For more information, please visit our website at: www.ibcp.com .
Any statements in this news release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as "expect," "believe," "intend," "estimate," "project," "may" and similar expressions are intended to identify forward- looking statements. These forward-looking statements are predicated on management's beliefs and assumptions based on information known to Independent Bank Corporation's management as of the date of this news release and do not purport to speak as of any other date. Forward-looking statements may include descriptions of plans and objectives of Independent Bank Corporation's management for future or past operations, products or services, and forecasts of the Company's revenue, earnings or other measures of economic performance, including statements of profitability, business segments and subsidiaries, and estimates of credit quality trends. Such statements reflect the view of Independent Bank Corporation's management as of this date with respect to future events and are not guarantees of future performance, involve assumptions and are subject to substantial risks and uncertainties, such as the changes in Independent Bank Corporation's plans, objectives, expectations and intentions. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company's actual results could differ materially from those discussed. Factors that could cause or contribute to such differences are changes in interest rates, changes in the accounting treatment of any particular item, the results of regulatory examinations, changes in industries where the Company has a concentration of loans, changes in the level of fee income, changes in general economic conditions and related credit and market conditions, and the impact of regulatory responses to any of the foregoing. Forward-looking statements speak only as of the date they are made. Independent Bank Corporation does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward- looking statements are made. For any forward-looking statements made in this news release or in any documents, Independent Bank Corporation claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
Source: Independent Bank Corporation
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