IBC Quarterly Income Slides
IONIA — Independent Bank Corp. posted first quarter 2008 net income of $0.3 million, or 1 cent per diluted share, versus net income or $4.2 million, or 18 cents per share, in 2007’s first quarter.
President and CEO Michael Magee said first quarter results were primarily impacted by an increase in the loan loss provision and loan and collection expenses as several commercial real estate loans shifted from “watch credit” to non-performing status due to soft residential real estate values in some regions of the state.
According to the company, the increase in non-performing commercial loans was primarily attributable to the addition of several large credits with real estate developers that became past due in 2008. The delinquencies generally reflect the cash flow difficulties many real estate developers are experiencing as they confront a significant decline in sales of real estate.
“Despite these issues, we remained profitable during the first quarter, increased our net interest margin and continued to grow some categories of non-interest income,” Magee noted.
As of March 31, loans, excluding loans held for sale, were $2.54 billion and deposits totaled $2.25 billion. At the close of the first quarter, total assets were $3.25 billion, compared with $3.28 billion at year end 2007.