Independent Bank Q1 Profit Rises

(RTTNews) - Independent Bank Corp. (IBCP) reported first quarter 2018 net income of $9.2 million, or $0.42 per share, up from $6.0 million, or $0.28 per share, in the prior-year period. The first quarter of 2018, included a $1.5 million fair value increase due to price for capitalized mortgage loan servicing rights, $0.2 million in net securities losses and $0.2 million of merger related expenses. Collectively, these items increased net income by $0.9 million, or $0.04 per share.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.37 per share fr the quarter. Analysts' estimates typically exclude special items.

Additionally, the reduction in the federal corporate income tax rate to 21% (that was effective Jan. 1, 2018) increased net income by approximately $0.07 per share compared to the year ago period.

The Company's net interest income totaled $23.9 million during the first quarter of 2018, an increase of $2.5 million, or 11.5%, from the year-ago period, and an increase of $0.6 million, or 2.7% from the fourth quarter of 2017.

Non-interest income totaled $11.5 million and $10.3 million in the first quarters of 2018 and 2017, respectively. This increase is primarily due to an increase in mortgage loan servicing income.