Independent Bank Corp. grew earnings in the third quarter against the “many challenges” of the COVID-19 pandemic.
Grand Rapids-based Independent Bank (Nasdaq: IBCP) today reported $19.5 million in net income for the quarter ended Sept. 30, or 89 cents per diluted share. That compares to net income of $14.7 million, or 67 cents per diluted share, in the third quarter of 2019.
The quarterly results included $20.2 million on mortgage loans. Mortgage loan originations during the quarter grew 55.9 percent over 2019 to total $536.5 million, the bank said.
“As we look ahead to the last quarter of 2020 and beyond, we are mindful of the ongoing challenges from the COVID-19 pandemic, but we are confident of our continued ability to effectively respond to these challenges and remain optimistic about our future,” President and CEO Brad Kessel said.
Independent Bank did record a higher third quarter loan-loss provision of $1.0 million, versus a $300,000 credit for the same period in 2019. As well, the amount of loans in forbearance declined 80 percent in the third quarter after peaking in mid-June “as many customers’ economic situations have improved, allowing them to pay their loans current or return to their original payment terms,” the bank said.
Year-to-date net income totaled $39.1 million, or $1.76 per diluted share, compared to $32.5 million, or $1.40 per diluted share, in the first three quarters of 2019.