GRAND RAPIDS — Independent Bank Corp. this week reported net income of $9.9 million, or 41 cents per diluted share, for the fourth quarter of 2018.
That compares with net income of $1.7 million, or 8 cents per diluted share, in the same period a year earlier.
The quarterly results reflect a $7.4 million increase in net interest income for the Grand Rapids-based Independent Bank (Nasdaq: IBCP) and a $7.3 million reduction in quarterly federal income tax expense following tax reform in late 2017.
Those gains were partially offset by a decrease in non-interest income and $3.7 million in higher non-interest expenses.
The bank grew loans by $19.9 million during the quarter, or an annualized rate of 3.3 percent.
“We continue to execute on our operating plan, delivering strong growth in our core earnings, growth in our funding and growth in loans while (maintaining) excellent asset quality and effectively managing our capital,” President and CEO Brad Kessel said during a conference with brokerage analysts to discuss quarterly results.
Full-year net income grew to $39.8 million, or $1.68 per share, from $20.4 million, or 95 cents per diluted share, in 2017. The annual result includes $3.5 million in merger-related expenses from the $63.2 million acquisition of TCSB Bancorp in Traverse City that closed in April.
The bank grew total portfolio loans by $269.2 million, or 13.3 percent, excluding loans acquired in the TCSB merger. Independent ended 2018 with $2.58 billion in total loans, including the $295.8 million acquired in the merger.
The bank targets total loan growth of 8 percent to 9 percent in 2019, presuming Michigan’s economy remain stable.
Independent Bank has 68 branches in the Lower Peninsula with total assets as of Dec. 21, 2018, of $3.35 billion.