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EX - 99.1 2 brhc10023526_ex99-1.htm EXHIBIT 99.1 INDEPENDENT BANK NEWS RELEASE Exhibit 99.1 Independent Bank Corporation 4200 East Beltline Grand Rapids , MI 49525 616.527.5820 For Release : Contact : Immediately William B. Kessel , President and CEO , 616.447.3933 Gavin A. Mohr , Chief Financial Officer , 616.447.3929 INDEPENDENT BANK CORPORATION REPORTS 2021 FIRST QUARTER RESULTS GRAND RAPIDS , Mich . , April . 27 , 2021 - Independent Bank Corporation ( NASDAQ : IBCP ) reported first quarter 2021 net income of $ 22.0 million , or $ 1.00 per diluted share , versus net income of $ 4.8 million , or $ 0.21 per diluted share , in the prior - year period . The increase in 2021 first quarter earnings as compared to 2020 primarily reflects increases in net interest income , non - interest income as well as a decrease in the provision for credit losses that were partially offset by an increase in non - interest expense . First quarter 2021 highlights include : • • • Increases in net income and diluted earnings per share of 358.2 % and 376.2 % , respectively , compared to 2020 ; Return on average assets and return on average equity of 2.10 % and 23.51 % , respectively ; Net gains on mortgage loans of $ 12.8 million ( up 45.1 % over 2020 ) and total mortgage loan origination volume of $ 509.0 million ; • Deposit net growth of $ 221.2 million ( or 6.1 % ) ; Continued strong asset quality metrics as evidenced by net loan recoveries during the quarter , a low level of non - performing loans and non - performing assets ; The adoption of Financial Accounting Standards Board Accounting Standards Update 2016-13 , Financial Instruments - Credit Losses ( Topic 326 ) , Measurement of Credit Losses on Financial Instruments ( “ CECL ” ) on January 1 , 2021. The adoption of CECL increased beginning of year allowance for credit losses , allowance for losses related to unfunded lending commitments and deferred tax assets $ 11.7 million , $ 1.5 million and $ 2.7 million , respectively and decreased retained earnings $ 10.3 million ; COVID related forbearances declined to 0.62 % of total loans ; and The payment of a 21 cent per share dividend on common stock on February 16 , 2021 . Significant items impacting comparable first quarter 2021 and 2020 results include the following : Net gains on sale of securities equal to $ 1.4 million ( $ 0.05 per diluted share , after tax ) in the first quarter of 2021 related to the divestiture of certain securities . A change in the fair value due to price of capitalized mortgage loan servicing rights ( the “ MSR Change ” ) of a positive $ 4.6 million ( $ 0.17 per diluted share , after taxes ) as compared to a negative MSR change of $ 5.9 million ( $ 0.21 per diluted share , after taxes ) for the first quarters of 2021 and 2020 , respectively . 1