1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 24, 2001
Independent Bank Corporation
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(Exact Name of Registrant as Specified in its Charter)
Michigan
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(State or Other Jurisdiction of Incorporation)
0-7818 38-2032782
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(Commission File Number) (IRS Employer Identification No.)
230 West Main Street, Ionia, Michigan 48846
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(Address of Principal Executive Offices) (Zip Code)
(616) 527-9450
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(Registrant's Telephone Number, Including Area Code)
N/A
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(Former Name or Former Address, if Changed Since Last Report)
2
ITEM 1. CHANGES IN CONTROL OF REGISTRANT.
Not Applicable
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
Not Applicable
ITEM 3. BANKRUPTCY OR RECEIVERSHIP.
Not Applicable
ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT.
Not Applicable
ITEM 5. OTHER EVENTS.
Not Applicable
ITEM 6. RESIGNATIONS OF REGISTRANT'S DIRECTORS.
Not Applicable
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
Not Applicable
ITEM 8. CHANGE IN FISCAL YEAR.
Not Applicable
ITEM 9. REGULATION FD DISCLOSURE.
The information attached at Exhibit A is supplemental data to the Registrant's
press release dated July 24, 2001 regarding its earnings during the quarter
ended June 30, 2001.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Independent Bank Corporation
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(Registrant)
Date: July 25, 2001 By: s/ Robert N. Shuster
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Robert N. Shuster
Chief Financial Officer
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INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial Condition
June 30, December 31,
2001 2000
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(unaudited)
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Assets (in thousands)
Cash and due from banks $ 42,116 $ 58,149
Securities available for sale 239,889 217,447
Securities held to maturity 20,098
Federal Home Loan Bank stock, at cost 19,627 19,612
Loans held for sale 39,270 20,817
Loans
Commercial 424,363 381,066
Real estate mortgage 758,111 772,223
Installment 239,467 226,375
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Total Loans 1,421,941 1,379,664
Allowance for loan losses (15,149) (13,982)
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Net Loans 1,406,792 1,365,682
Property and equipment, net 34,187 34,757
Accrued income and other assets 47,840 47,229
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Total Assets $ 1,829,721 $ 1,783,791
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Liabilities and Shareholders' Equity
Deposits
Non-interest bearing $ 143,694 $ 140,945
Savings and NOW 574,512 576,621
Time 583,626 672,334
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Total Deposits 1,301,832 1,389,900
Federal funds purchased 13,850 27,550
Other borrowings 337,765 196,032
Guaranteed preferred beneficial interests in Company's subordinated
debentures 17,250 17,250
Accrued expenses and other liabilities 27,602 24,723
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Total Liabilities 1,698,299 1,655,455
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Shareholders' Equity
Preferred stock, no par value--200,000 shares authorized; none
Outstanding
Common stock, $1.00 par value--30,000,000 shares authorized;
issued and outstanding: 11,497,110 shares at June 30, 2001
and 11,609,524 shares at December 31, 2000 11,497 11,610
Capital surplus 74,209 77,255
Retained earnings 45,372 37,544
Accumulated other comprehensive income 344 1,927
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Total Shareholders' Equity 131,422 128,336
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Total Liabilities and Shareholders' Equity $ 1,829,721 $ 1,783,791
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INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
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(unaudited) (unaudited)
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Interest Income (in thousands, except per share amounts)
Interest and fees on loans $ 31,502 $ 29,624 $ 62,690 $ 58,110
Securities available for sale
Taxable 2,086 1,823 4,358 3,493
Tax-exempt 1,438 1,446 2,841 2,946
Securities held to maturity
Taxable 710 1,505
Tax-exempt 144 307
Other investments 379 389 768 780
----------- ------------ ------------ -----------
Total Interest Income 35,405 34,136 70,657 67,141
----------- ------------ ------------ -----------
Interest Expense
Deposits 11,428 12,482 24,359 24,223
Other borrowings 4,788 4,098 8,973 8,204
----------- ------------ ------------ -----------
Total Interest Expense 16,216 16,580 33,332 32,427
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Net Interest Income 19,189 17,556 37,325 34,714
Provision for loan losses 1,261 1,392 1,894 1,949
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Net Interest Income After Provision for Loan Losses 17,928 16,164 35,431 32,765
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Non-interest Income
Service charges on deposit accounts 2,265 1,710 4,083 3,211
Net gains (losses) on asset sales
Real estate mortgage loans 2,052 534 3,047 914
Securities 123 158 (16)
Other income 2,898 2,580 5,056 4,859
----------- ------------ ------------ -----------
Total Non-interest Income 7,338 4,824 12,344 8,968
----------- ------------ ------------ -----------
Non-interest Expense
Salaries and employee benefits 9,791 8,297 18,413 16,689
Occupancy, net 1,183 1,119 2,473 2,297
Furniture and fixtures 1,109 1,092 2,167 2,233
Other expenses 4,964 4,253 9,117 8,253
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Total Non-interest Expense 17,047 14,761 32,170 29,472
----------- ------------ ------------ -----------
Income Before Federal Income Tax 8,219 6,227 15,605 12,261
Federal income tax expense 1,970 1,591 4,063 3,139
----------- ------------ ------------ -----------
Net Income Before Cumulative Effect of Change
in Accounting Principle 6,249 4,636 11,542 9,122
Cumulative effect of change in accounting
principle, net of tax (35)
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Net Income $ 6,249 $ 4,636 $ 11,507 $ 9,122
=========== ============ ============ ===========
Net Income Per Share Before Cumulative
Effect of Change in Accounting Principle
Basic $ .54 $ .39 $ 1.00 $ .78
Diluted .54 .39 .99 .77
Net Income Per Share
Basic $ .54 $ .39 $ 1.00 $ .78
Diluted .54 .39 .99 .77
Dividends Per Common Share
Declared $ .16 $ .14 $ .32 $ .29
Paid .16 .14 $ .31 .28
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NON-PERFORMING ASSETS
June 30, December 31,
2001 2000
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(dollars in thousands)
Non-accrual loans $5,368 $5,200
Loans 90 days or more past due and
still accruing interest 1,748 1,571
Restructured loans 251 260
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Total non-performing loans 7,367 7,031
Other real estate 2,369 2,174
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Total non-performing assets $9,736 $9,205
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As a percent of Portfolio Loans
Non-performing loans 0.52 % 0.51 %
Non-performing assets 0.68 0.67
Allowance for loan losses 1.07 1.01
Allowance for loan losses as a percent of
non-performing loans 206 199
ALLOWANCE FOR LOAN LOSSES
Six months ended
June 30,
2001 2000
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(in thousands)
Balance at beginning of period $13,982 $12,985
Additions (deduction)
Provision charged to operating expense 1,894 1,949
Recoveries credited to allowance 302 355
Loans charged against the allowance (1,029) (1,883)
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Balance at end of period $15,149 $13,406
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Net loans charged against the allowance to
average Portfolio Loans (annualized) 0.10% 0.23%
June 30, 2001 December 31, 2000
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Average Average
Amount Maturity Rate Amount Maturity Rate
------ -------- ---- ------ -------- ----
(dollars in thousands)
Brokered CDs $104,192 3.4 years 6.15% $212,010 3.5 years 6.73%
Fixed rate FHLB advances 182,191 3.2 years 5.12 68,743 7.9 years 6.33
Variable rate FHLB advances 144,000 0.3 years 4.53 114,345 0.2 years 6.69
Federal Funds purchased 13,850 1 day 4.27 27,550 1 day 6.85
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Total $444,233 2.2 years 5.14% $422,648 3.1 years 6.67%
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CAPITALIZATION
June 30, December 31,
2001 2000
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(in thousands)
Unsecured debt $ 10,500 $ 11,500
Preferred Securities 17,250 17,250
Shareholders' Equity
Preferred stock, no par value
Common Stock, par value $1.00 per share 11,497 11,610
Capital surplus 74,209 77,255
Retained earnings 45,372 37,544
Accumulated other comprehensive income 344 1,927
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Total shareholders' equity 131,422 128,336
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Total capitalization $159,172 $157,086
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NET INTEREST INCOME AND SELECTED RATIOS
Three months Six months
ended June 30, ended June 30,
2001 2000 2001 2000
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Average earning assets (in thousands) $1,670,563 $1,626,282 $1,664,557 $1,614,544
Tax equivalent net interest income 20,128 18,494 39,168 36,605
As a percent of average earning assets
Tax equivalent interest income 8.72% 8.64% 8.75% 8.58%
Interest expense 3.89 4.09 4.04 4.04
Tax equivalent net interest income 4.82 4.55 4.71 4.54
Average earning assets as a
percent of average assets 93.86% 93.71% 93.97% 93.58%
Free-funds ratio 11.01% 9.23% 10.74% 8.91%
Three months ended Six months ended
June 30, June 30,
2001 2000 2001 2000
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(in thousands)
Real estate mortgage loans originated $192,081 $96,618 $308,052 $163,572
Real estate mortgage loan sales 128,073 41,115 194,587 68,890
Net gains on the sale of real estate mortgage loans 2,052 534 3,047 914
Net gains as a percent of real
estate mortgage loans sold 1.60% 1.30% 1.57% 1.33%
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NON-INTEREST INCOME
Three months ended Six months ended
June 30, June 30,
2001 2000 2001 2000
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(in thousands)
Service charges on deposit accounts $2,265 $1,710 $4,083 $3,211
Net gains on asset sales
Real estate mortgage loans 2,052 534 3,047 914
Securities 123 158 (16)
Manufactured home loan origination fees
and commissions 676 514 1,029 1,022
Title insurance fees 562 242 848 402
Real estate mortgage loan servicing fees 165 372 556 748
Mutual fund and annuity commissions 218 337 390 742
Other 1,277 1,115 2,233 1,945
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Total non-interest income $7,338 $4,824 $12,344 $8,968
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NON-INTEREST EXPENSE
Three months ended Six months ended
June 30, June 30,
2001 2000 2001 2000
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(in thousands)
Salaries $ 6,519 $ 5,717 $ 12,699 $ 11,541
Performance-based compensation
and benefits 1,857 1,310 2,942 2,511
Other benefits 1,415 1,270 2,772 2,637
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Salaries and benefits 9,791 8,297 18,413 16,689
Occupancy, net 1,183 1,119 2,473 2,297
Furniture and fixtures 1,109 1,092 2,167 2,233
Communications 577 529 1,165 1,094
Data processing 583 664 1,137 1,357
Advertising 633 587 1,134 1,044
Loan and collection 608 336 1,073 643
Amortization of intangible assets 425 432 852 864
Supplies 460 368 883 763
Other 1,678 1,337 2,873 2,488
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Total non-interest expense $17,047 $14,761 $32,170 $29,472
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INDEPENDENT BANK CORPORATION Three months ended Six months ended
AVERAGE BALANCE SHEET (IN THOUSANDS) June 30, June 30,
2001 2001
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Loans and loans held for sale $ 1,419,416 $ 1,411,600
Other interest bearing assets 251,147 252,957
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Total interest earning assets 1,670,563 1,664,557
Non interest earning assets 109,216 106,774
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Total assets $ 1,779,779 $ 1,771,331
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Deposits $ 1,051,320 $ 1,047,190
Brokered CD's 130,968 160,080
Other borrowings 304,310 278,436
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Interest bearing liabilities $ 1,486,598 $ 1,485,706
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Demand deposits $ 136,953 $ 131,942
Other liabilities 27,495 24,846
Shareholders' equity 128,733 128,837
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Total liabilities and shareholder's equity $ 1,779,779 $ 1,771,331
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